Effective Dates: 06/03/2011 - Present Previous | Next

TN 17 (07-92)

RS 00605.100 Elimination of the Minimum Benefit - General

A. Policy

1. Application

The elimination of the minimum benefit applies to:

  • •

    those workers who attain 62, die, or become disabled after 1981;

  • •

    the minimum PIA (old law), the frozen minimum PIA, and the minimum sole survivor rate (MSSR).

2. Retention for Vow of Poverty Cases

The minimum benefit is retained for certain members of certain religious orders who have a vow of poverty and who are eligible from 1982 through 1991.

The religious order must have elected coverage before 12/29/91. The date of election of coverage by the religious order is the date that the religious order filed the SS-16-F6. It is not the retroactive date when coverage could be effective.

3. Effective Dates

The elimination of the minimum benefit is effective:

a. RIB Cases

The minimum benefit is eliminated for NH's born 01/02/20 or later, unless NH was entitled to DIB in any of the 12 months preceding month of attainment of age 62 and, the onset date for such prior DIB entitlement is before 1982 (freeze computation only).

b. DIB Cases

The minimum benefit is eliminated 01/82 for onset dates 01/01/82 or later unless:

  • •

    NH born before 01/02/20; or

  • •

    NH entitled to DIB prior to 01/82.

c. Survivor Cases

The minimum benefit is eliminated in 01/01/82 when NH dies 01/01/82 or later unless:

  • •

    NH born before 01/02/20; or

  • •

    Deceased NH entitled to DIB in any of 12 month prior to month of death, and onset date for such DIB entitlement is before 1982 (freeze computation only).

B. Procedure

1. 1978 NS Computation

For the 1978 NS computation:

  1. a. 

    Apply the bend point formula to the AIME - see RS 00605.021.

  2. b. 

    Apply COLA's described in RS 00601.120.

2. NS Transitional Guarantee PIA

For the NS Transitional Guarantee computation:

  1. a. 

    Divide the dividend that was obtained in RS 00605.025 by the number of divisor months to determine the true AMW (round AMW obtained to the lower dollar amount);

  2. b. 

    Locate the AMW calculated in A. above in Column III of RS 00605.950;

    NOTE: The basic PIA is equal to the corresponding amount shown in Column IV of the chart in RS 00605.950;

  3. c. 

    Add COL increases to the basic PIA.

3. 1977 Simplified OS and 1965 OS

For the 1977 Simplified OS and 1965 OS, if the basic benefit as determined in RS 00605.030. RS 00605.030 is less than $16.20, take the following action:

  1. a. 

    Determine the true AMW - divide the applicable dividend by the divisor months and round to the lower dollar if the result is not a whole number.

  2. b. 

    Determine the PIB from the AMW - 40 percent of the first $50 of the AMW plus 10 percent of the next $200 increased by 1 percent for each increment year.

    This is done as follows:

    AMW Basic Benefit
    $50 or Less 40% of AMW
    $51 - $250 $20 +10% of AMW in excess of $50.
  3. c. 

    Obtain the PIB from the basic benefit - add one percent to the basic benefit for each increment year and round to nearest cent. See RS 00605.030. Use column 1 of RS 00605.950 to locate the PIB. The basic PIA is equal to the corresponding amount shown in column IV of chart in RS 00605.950.

  4. d. 

    Add Applicable COLA's.

4. DIB Guarantee PIA

Follow instructions in RS 00605.035. This computation is not affected by the elimination of the minimum benefit.

C. Reference

Coverage for Members of Religious Order Who Take a Vow of Poverty, RS 01901.640

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0300605100
RS 00605.100 - Elimination of the Minimum Benefit - General - 06/03/2011
Batch run: 02/21/2013
Rev:06/03/2011