TN 24 (09-02)

A. POLICY - REQUIREMENTS

1. Date of Birth 1/2/1928 or Later

• For NH's born 1/2/1928 or later, where RIB follows WIB, the RIB is reduced under the normal age reduction provisions without regard to the reduced WIB (Method I).

• The carry-over reduction in RIB (Method II) does not apply.

2. Date of Birth Prior to 1/2/1928

• For NH's born prior to 1/2/1928, where RIB follows WIB, the RIB may be reduced under the normal age reduction provisions or because of prior WIB. Prior WIB entitlement can cause a reduction in a RIB, even if elected at FRA or later. This occurs if the beneficiary was entitled to a reduced WIB which began before age 62 and which was reduced for age in the month of attainment of age 62.

• The amount of reduction in the RIB because of prior entitlement to a reduced WIB is whichever of Method I or Method II yields the lower RIB.

• Entitlement to a reduced WIB before age 62 that terminates for any reason before attainment of age 62 causes a reduction in a subsequent RIB. Compute the money amount of reduction as though the WIB had not terminated and the months of nonentitlement before age 62 will be eliminated from the reduction factor by the ARF.

• Nonpayment of a WIB in the month of attainment of age 62 or termination of WIB before age 62 is immaterial.

• In addition, a WIB in nonpayment status because of entitlement to another WIB on some other record requires reduction of a subsequent RIB if entitlement to a reduced WIB on either record existed in any month before the month of attainment of age 62.

• For processing cases with initial entitlement to WIB and RIB prior to 1/73, see RS 00630.300; RS 00630.310; RS 00615.005; and RS 00630.110.

3. Exceptions

• Prior WIB entitlement does not reduce RIB if an ARF has reduced the WIB RF at age 62 to 36.

• Entitlement to remarried widow(er)'s benefits in the month of attainment of age 62, where the benefit is based on 50 percent of the DNH' PIA (under pre-1977 amendment provisions) is considered to be WIB not subject to reduction for age. This is so whether or not there was entitlement to reduced WIB on that SSN before or after attainment of age 62.

4. Reduction Amount

a. Method I

Reduce the RIB (widow(er)'s own PIA) in the normal manner, based on the number of months of entitlement to that benefit before FRA without regard to the reduced WIB.

b. Method II

Reduce the widow(er)'s own PIA by the total of:

• The money amount of reduction (MAR) in the WIB for the month she/he attained age 62 determined as if benefits had been reduced only for months before age 62 (II.a.), plus

• The MAR by which any excess of the widow(er)'s own PIA over the unreduced WIB would be reduced for the months (if any) of RIB entitlement before FRA (II.b.).

NOTE: Once established for purposes of Method II, both the MAR determined at age 62 and the PIA on which the unreduced WIB is based become fixed amounts and do not change with any subsequent increases in the unreduced WIB. That is: The MAR under Method II a. is based on the unreduced WIB at age 62. The MAR under Method II b. is based on the unreduced WIB at the time of entitlement to RIB.

B. POLICY — SPECIAL CONSIDERATIONS

When the WIB and RIB both occur after 1977 the following special considerations apply:

1. Method I Applies

Where Method I yields the greater amount of reduction initially, it will continue to do so for subsequent RIB rates unless an ARF is given. This is so because under the 1977 amendments, for initial entitlements after December 1977, the original reduction factor is applied to all subsequent PIAs. Therefore, when Method I applies, it will not be necessary to compare Method II results for subsequent RIB rates except as noted in the case of an ARF on the RIB.

2. Method II Applies

• Where RIB was initially established under Method II a. and b. it can again be assumed that the same method (II. a. and b.) will continue to apply for subsequent RIB rates. This is so because each time the RIB PIA is increased, the unreduced excess in Method II b. is also increased resulting in a similarly increased MAR under Methods I and II a. and b.

• However, if the RIB is initially established under Method II. a. only, both methods will have to be compared each time there is an increase due to a recomputation, COL or general benefit increase because the MAR under Method II. a. remains constant. Therefore, since the Method I reduction amount will increase, it could become larger than the reduction in Method II. a. If this occurs, we would then switch to Method I. Once Method I applies it continues to apply for subsequent months as explained above.

• Where Method II. a. initially applies, it is also possible for subsequent increases in the RIB PIA to bring Method II. b. into play. The appropriate reduction factor for Method II. b. is the constant RIB reduction factor applicable for Method I. This is true even where Method II. b. first comes into play for a month after the first month of RIB entitlement. Once Method II. a. and b. applies, it continues to apply for subsequent increases, as explained above.

C. PROCEDURE

The following assumes a MOET of 1/78 or later and FRA is age 65. If the MOET is prior to 1/78, separate reduction of increases applies.

1. Method I

Calculate the initial reduced RIB:

2. Method II. a. MAR

Calculate the WIB MAR for the month of age 62 attainment.

a. If initial WIB MOET is after 12/83 or if initial WIB is age 60-62:

b. If any DWB is payable before 1/84:

Age 62 determines rounding.

3. Method II. b.

Calculate the Method II.b. MAR—(Compute only if RIB PIA exceeds WIB PIA)

4. Method II RIB

a. Calculate amount of RIB reduction

b. Calculate Method II RIB

5. Choose the RIB Rate

6. Special Considerations

a. NH Entitled to More Than One WIB Prior to Age 62

Where the NH was entitled to more than one WIB prior to age 62, the amount of reduction for purposes of Method II a. is equal to the largest amount of reduction computed by considering each WIB entitlement separately. Then compare this amount to the reduction under Method I. The larger reduction amount is used to calculate the RIB. In determining the largest reduction under Method II, both the amount of reduction of the WIB at age 62 and the amount of reduction of the excess RIB PIA must be computed.

b. WIB-Method II a.

For purposes of Method II a., WIB is whichever of the following is actually applied as the unreduced WIB in the month of attainment of age 62; or where entitlement to reduced age WIB did not exist for that month whichever of the following would have applied for that month of attainment of age 62 had entitlement continued into that month:

• Unreduced WIB

• Minimum sole survivor rate (MSSR)

• Proportionate share of the maximum

• WIB including DRCs.

c. Reduction-Method II b.

For purposes of Method II b. reduction, the unreduced WIB is the PIA at initial RIB MOET unless the WIB in that month is calculated under the MSSR provisions (or would have been had WIB entitlement continued). In that event, use the unreduced MSSR and the fixed WIB PIA for Method II b. purposes. If the widow(er)'s benefit used for Method II a. is based on proportionate share of the maximum, the unreduced WIB for Method II b. is the proportionate share of the maximum in effect at the initial RIB MOET. If the maximum does not apply at the initial RIB MOET, the proportionate share of the maximum is computed as though the configuration of survivor beneficiaries in effect at age 62 continued through the initial RIB MOET.

D. EXAMPLE

Wilma Reed is in the FO to file for RIB, effective 10/88. She was previously entitled to WIB at age 60. Her DOB is 7/16/25. Her 12/87 RIB PIA is $511.70. The 1/85 WIB PIA was $350.50; this increased to $361.30 (12/85), $365.90 (12/86), and $381.20 (12/87). She has specified that she wants her RIB MOET reduced RIB.

1. Method I RIB

2. Method II. a. MAR

3. Method II. b.

4. Method II RIB

a. Method II MAR

b. Method II RIB

5. Comparison

Pay the lower of Method I RIB $452.00 or Method II RIB $454.60