TN 17 (07-92)
RS 00605.045 Consolidation of Old Computation Methods (NS90/OS90)
P.L. 101-508, Section 5117
A. Policy - General
In an effort to reduce the number of computation methods, the 1990 Amendments consolidated all pre-1965 methods and the 1965 and 1967 Old Start into 2 new methods. These new methods are variations of the NS65 and the OS77. The new methods are called the NS90 and OS90.
2. Eligibility Requirements
Eligibility requirements for the NS90 and OS90 are as follows:
If a beneficiary becomes entitled to benefits in 6/92 or later and there is no other beneficiary with a rate based on a pre-1990 amendment computation method entitled to benefits in the prior month; or a recomputation for earnings in 1992 or later is effective in 1993 or later; and
The New Start 78, New Start 65, New Start 78 Transitional Guarantee, Disability Guarantee and Old Start PIAs do not apply; then
A 1990 Amendment computation will apply. The NS 90 will apply in all such cases. The OS 90 should be considered only when the numberholder has a date of birth before 1/2/1929 and at least one QC before 1951 or a date of birth after 1/1/1929 and at least one QC before 1951 or a date of birth after1/1/1929 with less than six QCs after 1950.
This provision applies for benefits payable 6/92 or later. Where a beneficiary is entitled in the month before the new entitlement and the PIA is based on a pre-1990 amendment method, the old computation methods continue to apply.
B. Policy - NS90
The NS90 method is identical to the NS65 method. Refer to RS 00605.040 to determine elapsed years, base years, computation years, divisor months and PIA determination. However, if the NH has died prior to 1961, elapsed years go up to the year of death even if death is after the year of attainment of retirement age. Although elapsed years may equal zero, there must be at least 2 computation years and 24 divisor months.
The 1990 amendments permit certain individuals who were not previously eligible for a NS65 method to have their benefits calculated by the same formula. New start methods prior to the 1965 method are no longer available for new entitlements unless entitlement in the month before the month of the new entitlement exists on the record.
NOTE: The primary insurance factor code (PIFC) will be 7 on all NS 90 cases. On existing cases where a NS 65 PIA is used the system will use a PIFC of 7 when initial entitlement is after 5/92 or when a recomputation applies in 1993 or later. The NS 90 and NS 65 are identical.
C. Policy - OS90
The OS90 method is similar to the 770S method. Refer to RS 00605.030B. However, there are several basic differences.
Recomputations for 1992 and later years of earnings are performed under the OS90 computation method whenever the eligibility year is prior to 1978, regardless of the computation method used to include earnings for 1991 and earlier.
For male NH's born 1/1/11 or earlier, the retirement age was 65. Those born 1/2/11 through 1/1/13 are deemed to have reached retirement age in 1975. Calculate elapsed years accordingly.
The allocation of pre-1951 earnings is not the same as with the 770S.
Note: The OS90 PIA will show a primary insurance factor code (PIFC) of 8 in the MBR.
2. Allocating Pre-1951
Although the OS90 method is similar to the 770S, there are some differences in how to allocate pre-1951 earnings.
The first year of the allocation period is:
1937 if the NH was born 1/1/17 or earlier, or
1950 if the NH was born 1/2/29 or later, or
The year of age 21 attainment, or
The last year of the allocation period, if the NH died before 1/1/ 51 and before the year of age 22 attainment.
The last year of the allocation period is:
1950 if the NH was alive on 1/1/51, or
the year prior the year of death if the NH died 12/31/50 or earlier.
Count the number of years in the period. In a disability exclusion computation, do not count any year wholly within a period of disability before 1951.
Allocate the pre-1951 earnings in accordance with RS 00605.033. The allocation rules described in RS 00605.033 have been modified under the OS90 method since the OS90 method can involve death and/or disability before 1951, as well as attainment of age 21 prior to 1937. In a disability exclusion computation, do not allocate earnings to years wholly within a period of disability before 1951.
The maximum creditable earnings per year is $3,000. Where all earnings cannot be allocated to the years in the allocation period because of the $3,000 limitation, they may be allocated to earlier years (after 1936).
1. OS90 Pre-1951 Earnings Allocation No DIB Involved
A worker was born in 1924 and died in 1950. His 1937-1950 earnings were $12,950. His widow comes in to file in May 1992 for benefits beginning in July 1992. The earnings allocation period is 1945-1949. Allocate $2,590 to each of the five years in the allocation period.
2. OS90 Pre-1951 Earnings Allocation DIB Involved
A worker was born 06/12/15. He had a period of disability 4/01/46 through 08/31/58. The worker died 9/26/58. A survivor is entitled beginning 06/92. The worker's pre-1951 earnings are $11,000.09. The original allocation period for the pre-1951 earnings based on the worker's date of birth and date of death is 1937-1950. However, for a disability exclusion computation, earnings are allocated in 1937-1946. 1937 would have $1100 and 1938-1946 would have $1100.01 each.
For a non-disability exclusion computations, earnings are allocated $785.72 to 1937-1949 and $785.73 to 1950.