The policy on reopening benefit conversions/COLAs is:
-
•
If, at some point in the past, a substantive error was made in computing the benefit
amount (for example, the wrong reduction factor was used), and it cannot be reopened
and revised under the rules of administrative finality; and
-
•
A conversion/COLA was made on that erroneous benefit amount within the 4 years prior
to the discovery of the error, but the conversion operation or COLA itself was done
correctly (the correct percentage increase was calculated on the cost of living increase);
then
-
•
The resulting benefit amount (the amount after the conversion/COLA) cannot be adjusted; i.e., “frozen” or reduced, as a means of, at least to some extent, correcting
the error which was made in the benefit amount more than 4 years earlier.
EXAMPLE
NH filed 02/02/71, entitled to RIB at age 62 (02/02/71). PIA $71.50. The NH's rate
was erroneously established as the full PIA, $71.50. Notice of award was sent in 05/71.
Rates were paid as follows:
Effective
|
PIA
|
Correct Rate
|
Rate Actually Paid
|
02/71
|
$ 71.50
|
$57.20
|
$ 71.50
|
09/72
|
$ 85.80
|
$ 70.20
|
$ 84.50
|
03/74
|
$ 91.90
|
$ 76.30
|
$ 90.60
|
06/74
|
$ 95.30
|
$ 79.70
|
$ 94.00
|
06/75
|
$103.00
|
$ 87.40
|
$l01.70
|
06/76
|
$109.60
|
$ 94.00
|
$108.30
|
06/77
|
$116.10
|
$100.50
|
$114.80
|
06/78
|
$123.70
|
$108.10
|
$122.40
|
The error was discovered in 07/76 when the NH reported a change of address.
Since the error occurred in the initial determination (over 4 years prior to 07/76)
it may not be reopened. Furthermore, since no error occurred in any subsequent conversion/COLA,
no revision will be made on this record and the erroneous rate will continue to be
converted upward in subsequent conversions/COLAs.