Effective Dates: 12/08/2023 - Present Previous | Next

TN 117 (12-23)

RS 00605.501 Current Recomputations - 1977 Amendments

A. Policy - One Dollar Rule

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.

Example:

The NH has been entitled for several years. Their 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.

B. Policy - Special Situations Involving the One Dollar Rule

1. Independently Entitled Divorced Spouse (IEDS)

When an IEDS is entitled to benefits (see RS 00202.005), the initial PIA for the record is established as of the first month of the IEDS entitlement. The NH's earnings in the year of the IEDS initial entitlement and any subsequent years are considered recomputation years. The $1.00 increase rule applies.

2. Windfall Elimination Provision (WEP)

When WEP is involved the WEP PIA is the PIA of record. The actual WEP PIA must increase by $1.00 in order to cause a recomputation.

3. DIB after RIB

DIB after RIB requires an initial determination of the PIA. Computation of the DIB PIA is independent of the RIB PIA and is not a recomputation. The $1.00 rule does not apply.

4. Special Minimum PIA

When a Special Minimum PIA is being paid and the support PIA increases, the new support PIA must be at least $1.00 more than the PIA being paid in order to switch to the support PIA.

5. Conversion from DIB to RIB at FRA

When a DIB converts to RIB at FRA the $1.00 rule does not apply.

6. Conversion from DIB or RIB to Survivor

When a RIB or DIB is recomputed to a survivor claim the $1.00 rule does apply.

C. Policy - Automatic Recomputations

The term “Automatic Recomputations” means that the NH does not have to take any action to request a recomputation.

1. Disability or Retirement Cases

An automatic recomputation applies if the earnings are for 1965 or later. It can be effective 1/1966 or later.

2. Survivor Cases

An automatic recomputation applies if the date of death is 2/1965 or later and earnings are for the year of death. The effective date cannot be earlier than 1/1966.

D. Policy - Recomputations Prohibited

Certain PIA methods do not permit recomputations. They are the 1977 Simplified Old Start with a benchmark year of 1979 or later, the New Start Transitional Guarantee PIA and the Subsequent Disability Guarantee PIA.

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0300605501
RS 00605.501 - Current Recomputations - 1977 Amendments - 12/08/2023
Batch run: 12/08/2023
Rev:12/08/2023