This policy applies to all 1977 Amendment and later PIAs. Consider a recomputation
for each additional base year of earnings credited to the NH's record. The increase
in the PIA after the recomputation must equal at least $1.00. NOTE: This means the
actual amount of the increase must be at least $1.00. An increase from $849.40 to
$850.00 is not an increase of $1.00 or more even though the amount payable could increase
by $1.00. The PIA would have to increase to $850.40 for a recomputation to apply.
When earnings for a year do not result in a recomputation (because of $1.00 limit)
the NH may be eligible for a recomputation based on those earnings when a subsequent
base year is considered. This is true even if the subsequent base year is not actually
used in the recomputation, i.e., the earnings do not exceed the lowest year used in
the computation. If the increase over the PIA of record after considering all applicable
COLAs up to the effective date of the recomputation is less than $1.00, a recomputation
is not due.
The NH has been entitled for several years. His 78 New Start PIA is $445.50 in 12/1997.
The NH had earnings in 1997. When we consider a recomputation in 1 /1998 the increase
is only $.90 so no recomputation is allowed. The 12/ 1998 COLA increases the PIA to
$451.20. The NH had earnings in 1998. This allows us to consider a recomputation for
1/1999. We then find that considering all earnings through 1998 causes the PIA to
increase to $452.20 as of 1/1999. We can therefore allow the recomputation because
the increase is at least $1.00 over the 12/1998 PIA. This applies even if 1998 is
not actually used as a computation year due to the low amount of earnings. If the
NH had no earnings for 1998 we could not consider the recomputation for 1/ 1999.