TN 26 (01-04)

A. Policy

1. Who is affected

Consider the RIB LIM when the WIB is effective beginning 01/73 or later if the deceased NH was ever entitled to a reduced RIB or reduced DIB.

2. What is the limit

A widow(er)'s benefit is limited to the larger of:

• 82 1/2 percent of the NH's death PIA, or

• the reduced RIB or DIB amount to which the NH would have been entitled if he/she had lived (RIB LIM).

3. When RIB LIM applies

The RIB LIM will apply when the WIB after adjustment for the family maximum and reduction for age is more than BOTH 82 1/2 percent of the NH's death PIA and the RIB or DIB if he/she were alive. NOTE: If the RIB LIM is considered but does not apply at the MOET, it must be considered at any subsequent time when the widow(er)'s benefit after adjustment for the family maximum and reduction for age is more than both 82 1/2 percent of the NH's death PIA and the RIB or DIB if he/she were alive.

B. Procedure

1. What PIA is used to compute the RIB LIM

a. Entitlement 1/73-5/78

Use the true life PIA.

b. Entitlement 6/78 and later

Use a fictitious life PIA that may include:

• a recomputation to remove WEP, or

• a recomputation to include earnings in the year of death, or

• a RR survivor recomputation effective with the month of death.

2. What is the reduced RIB

a. Entitlement 1/73-5/78

Start with the RIB MBA to which the NH was entitled for the month before the month of death with the ARF and any recomputations that would have been due had the NH remained alive. Convert this forward to the WIB MOET

b. Entitlement 6/78 and later

The RIB LIM may also be based upon the PIA after:

• a recomputation to remove WEP, or

• a summary recomputation to include earnings in the year of death if death occurred before the month of attainment of FRA, or

• a RR survivor recomputation effective with the month of death.

c. ARF based on deductions to deceased NH's RIB

Apply the ARF based on deductions to a deceased NH's RIB for months in which he/she was alive. Any resulting rate change in the RIB is effective or would be effective with the month the deceased NH actually attained or would have attained FRA. Months beginning with the month of death up to FRA are not eliminated from the reduction factor.

d. For deaths 5/83 and later

Apply DRCs as though the NH had remained alive. The DRC increment months for the year of death cannot be added to the RIB LIM until January of the following year.

e. For deaths prior to 5/83

Include all DRC increment months in the RIB LIM in the month of death. No DRCs may be applied to the deceased NH's full RIB before 6/78 and to the reduced RIB for any month prior to 1/79.

3. What is the effect of DIB

• The limitation based on DIB (reduced or unreduced) continues until the deceased NH would have attained FRA, at which point the limitation is based on the converted RIB rates. At this point, consider a non-freeze computation, or a New Start Transitional Guarantee PIA as well as an ARF.

• If the RIB beneficiary filed an application for DIB and then died in or before the first month of DIB entitlement, compute the RIB LIM based on the DIB entitlement. If a disability determination was not made deem the person disabled.

• If the deceased NH was receiving reduced RIB instead of DIB in the month before the month of death, use the RIB in considering the limitation to the widow(er)’s benefit. In the month the deceased NH would have attained FRA, consider an ARF to eliminate simultaneous RIB/DIB entitlement months. Eliminate month of death and later months in computing the ARF where DIB had not terminated prior to death.

• If the DIB application is filed after the death we cannot deem disability. A disability determination must be made. If a favorable disability determination is made the RIB LIM will be based on the DIB benefit amount that applies in the first month of entitlement to DIB even if never paid because of death.

4. Special situations

In cases where the deceased NH's rate was incorrectly computed and a subsequent widow's rate is dependent on the retirement insurance benefits limitation (RIB LIM), the RIB LIM should be based on the correct amount, even if the deceased number holder's rate was incorrectly computed and is barred to reopening.

C. Example

Mr. B, age 64 on August 3 (this year), received reduced RIB of $350 (PIA $374.90) for August and September (this year). He died in October. Mrs. B, age 66, comes in to file for widow's benefits. The RIB if the DNH were alive would be $350. 82 1/2 percent of the death PIA is $309.20. (The life and death PIAs are the same.) The WIB will be the higher of the two ($350 in this example.)