TN 4 (05-12)

A. Policy for redetermination of WIB with entitlement as of 12/1972

The following conditions exist for redetermination of WIB with entitlement, as of 12/1972:

1. The 1972 amendments provided that widow(er)’s entitled for 12/1972, would have their benefits redetermined, effective 01/1973, if this resulted in an increase.

2. We refigured the WIB as if the amendment provision was in effect at the time he or she initially became entitled to WIB. Any time a subsequent event, other than a general benefit increase makes it advantageous for the widow(er), we made the redetermination. Once we redetermine the rate, an unredetermined rate cannot apply.

3. Under the redetermination, widow(er)’s entitled in 12/1972, had their benefits recomputed, based on the original benefit (OB) of 100 percent of the deceased number holder’s (DNH) primary insurance amount (PIA), effective 01/1973, (subject to retirement insurance benefits limitations (RIB LIM)).

4. Redetermination of WIB involving a family maximum (FMAX) require the refiguring of individual benefits and family amounts, beginning with the maximum (MAX) in effect at the initial WIB month of entitlement (MOET), and continuing through the latest conversion. This was necessary to reflect the MAXs we created, if the widow(er) was entitled to a larger share of the total benefits.

B. Minimum sole survivor rate (MSSR)

If we based the WIB for 12/1972 on the MSSR and the DNH’s PIA was $84.50, we redetermined the amount by reducing $84.50 by the new reduction factor.

If the DNH's PIA was greater than $84.50, we determine a tentative rate under the usual process, with the PIA reduced for months the widow(er) was entitled before age 65, and with separate reduction of increases.

• If this rate was larger than $84.50 reduced for MOETs before age 62, it became the redetermined rate, effective 01/1973.

• If this rate was lower than $84.50 reduced for MOETs before age 62, $84.50 reduced for MOETs before age 62 became the redetermined rate effective 01/1973.

C. DNH previously entitled to reduced RIB or WIB

The following conditions exist for a DNH previously entitled to reduced RIB or WIB:

1. If we previously entitled the DNH to a reduced RIB or disability insurance benefits (DIB), then RIB LIM applied. For the RIB LIM, we deemed the average monthly wage (AMW) for 12/1972, on which we based the life the PIA.

2. Unless the number holder’s (NH) RIB entitlement preceded 01/1959, or involved the minimum PIA, we determined the DNH's reduced RIB by:

   1. Determining the 12/1972 death PIA.

   2. Finding the corresponding PIA for the DNH's first MOET. If there was no corresponding PIA because it would have been larger than the highest PIA, we used the highest PIA.

   3. Reducing this deemed life PIA for age, as of the NH’s initial MOET.

   4. Applying separate reduction of increases through the 09/1972 increase.

   5. Reducing this PIA for the widow(er)'s age.

3. Only those months the NH was actually alive and received a reduced RIB could be adjustment months. If the NH received a reduced DIB at the time of death, then we eliminate all months of DIB entitlement and months from death, prior to age 65 from the reduction factor (RF), effective with the WIB MOET.

4. After determination of the DNH's RIB rate, we compared it to the WIB amount, as determined in RS 00615.310. If this amount exceeded the RIB and 82 1/2 percent of the death PIA, we reduced the WIB to the greater of 82 1/2 percent of the death PIA or the amount of the reduced RIB.