RS 00605: Initial Computation of the PIA - Recomputations and Recalculations
TN 28 (08-99)
A. Policy
The PIA can be changed only by a recomputation or recalculation.
B. Definitions
1. Recomputations
Recomputations:
Involve the use of a new computation period;
Can be effective only to increase the PIA (or to impose WEP);
Are specifically provided for in the law;
Can be waived, in writing, if the numberholder (NH) or his/her family would be disadvantaged in some way or if he/she and every member of his/her family do not want the primary insurance amount to be recomputed for any other reason; and
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Are effective January of the year following the year the earnings were earned. For example, earnings for 1999 will be included in a recomputation effective January 2000. There are three exceptions:
A recomputation to impose WEP is effective the first month that WEP applies.
A recomputation to allow credit for earnings in the year of death is effective the month of death.
A recomputation meeting the requirements in RS 00605.407B.9. will be effective in the first month it is no longer disadvantageous.
2. Recalculations
Recalculations:
Involve the reopening of a previous computation to change computation factors or to include or exclude additional earnings in the base year period;
Can increase or decrease the PIA;
Are not specifically provided for in the law; and
Are effective the same month as the original computation.