TN 17 (07-92)

A. Policy

1. General

The 1977 amendments provide a guarantee for records where the NH is eligible after 1978 and was previously entitled to DIB. This guarantee applies to all new disability, retirement and survivor claims (including re-entitlement to stat blind beneficiaries).

2. Applicability

The PIA can be no less than:

• the PIA in effect in the last MOET to the previous DIB when the NH was entitled to DIB which terminated more than 12 months prior to entitlement to RIB, reentitlement to DIB, or death.

• the DIB PIA in effect in the last month of previous DIB entitlement (increased by any intervening COLAs) if the NH was entitled to DIB in any of the 12 months before the first MOET to RIB, reentitlement to DIB or the month of death.

• The RIB PIA in effect in the last month of RIB entitlement if the RIB was converted from DIB to RIB at FRA. Survivor PIAs are established as of the date of death so any COLAs added to the RIB PIA will be included.

NOTE: When we establish a DIB Guarantee PIA we use the DIB PIA in effect in the last month of entitlement before termination, whether that PIA was paid or not. In cases where the last PIA was incorrect but barred from correction by administrative finality, we still use that as the new PIA.

B. Procedure

To select the correct PIA:

• Compare the PIAs computed under other applicable methods, and PIA from A.2. above. If DIB eligibility before 1979 is involved, the subsequent DIB, RIB, or survivor computation with an eligibility after 1978 must meet insured status without considering the prior period of disability.

• Establish the DIB Guarantee PIA if it is higher than any other PIA.

C. Example

Steve May became entitled to DIB in 3/85 with a PIA of $440.90. The DIB terminated effective 6/86. Steve became entitled to RIB at age 62 in 5/91. His RIB PIA can be no less than $454.50, the DIB PIA in effect in 5/86, his last month of DIB entitlement. The 12/86, 12/87, 12/88, 12/89 and 12/ 90 COLAs are not added to the DIB Guarantee since Steve was not entitled to DIB in any of the 12 months before his first MOET to RIB. Since the benchmark year for the RIB entitlement is 1991, the DIB Guarantee PIA must be compared with a 78 NS AIME PIA, and the 1977 Simplified Old Start PIA.

D. Reference

Effect of Administrative Finality on Subsequent and Prior Claims, GN 04030.070