Does the 07/01 COLA increase the beneficiary’s Monthly Benefit Credited (MBC) by at
least $1 AND is the beneficiary due, or did the beneficiary receive a payment in at least one
month from 12/00 – 06/01? (Review 12/00 – 06/01 months in the HISTORY field on the
MBR or 01/01-07/01 Effective Tax Date (ETD) in PHUS history.)
If No to either question, the beneficiary is not due a one-time payment based on 2001.
If Step #2 above determined a one-time payment is due for 2000 go to Step #4 for payment
If Step #2 above determined no one-time payment was due for 2000, document the Special
Message Field on the MBR to show the one-time payment was considered and why it was
not due. – STOP HERE
If Yes to both questions, the beneficiary is due a one-time payment based on 2001. The amount payable is determined
by taking the difference between the MBC for 06/2001 and 07/2001. Truncate at the
decimal (drop the cents) and multiply by seven. Again, it does not matter how many
months the beneficiary was paid during the period 12/00 – 06-01, the difference between
the 06/01 and 07/01 benefits is always multiplied by seven. This will result in payments
of $7, $14, or $21. Add this amount to any amount determined in Step #2. Go to Step
#4 to determine if this one-time payment can be issued.