RS 00605: Initial Computation of the PIA - Recomputations and Recalculations
TN 25 (11-96)
Definitions
1. Base Years
The available years from which the earnings to be used in computing a PIA are selected.
a. RIB and DIB Computations
Initial computation - years after 1950 up to the year in which the first month of entitlement to benefits occurs (for a detailed explanation of DIB base years, see RS 00605.210).
Recomputations - year in which the first month of entitlement occurs and later years (see RS 00605.501).
Note: The year of effective filing (GN 00204.007) is never a base year in the initial computation of a RIB or DIB.
b. Survivor Computation
Years after 1950 through the year of death.
c. Base Year Exclusions
Years wholly within a period of disability may or may not be used, depending on whether the period of disability is disregarded for computation purposes; i.e., a DIB freeze (exclusion) or DIB nonfreeze (nonexclusion) computation.
2. Computation (Comp) Years
The base years having the highest indexed or unindexed earnings and equal in number to the elapsed years less drop-out years. Where the result is less than 2, it must be raised to 2.
3. Drop Out Years
In all retirement and survivors computations and computations for DIB entitlements before 07/80, the number of drop out years equals 5. For DIB entitlements after 06/80, see RS 00605.230 and RS 00605.235 to determine the number of drop out years.
4. Divisor Months
The number of months in the computation years.