TN 24 (09-02)
RS 00615.410 Reduced DIB After RIB Entitlement (A then HA)
Freeze and DIB entitlement may be established after RIB entitlement. The DIB is reduced by the amount the RIB would be reduced if the beneficiary had attained full retirement age in the first month of entitlement to DIB.
NOTE: Any reduction computed under this section only applies to the DIB benefit while it is payable. To compute the reduced DIB benefit, you can use Interactive Comp #11. If the DIB ends before FRA the original RIB rate (plus any COLAs that occurred) will be payable. If the DIB ends because of attainment of FRA the RIB payable will be the original RIB benefit (plus COLAs) and an ARF to remove months of simultaneous DIB entitlement.
1. How to Determine the RIB (Freeze Cal or Freeze Recal)
Recalculate the RIB PIA to take into account the period of disability.
Apply the RF to the recalculated RIB PIA. Use the actual full retirement age to determine the RF. If the initial RIB entitlement date is before 1/78 remember to use the separate reduction of increases method up to 12/77 and the formula method for COLAs after 12/77. Use the constant reduction method when initial RIB entitlement is after 12/77. (The new reduced RIB rates are paid for the entire period of RIB entitlement regardless of the number of retroactive months that precede the first month of DIB entitlement.)
2. How to Determine the Reduced DIB
The method to determine the reduced DIB will vary depending on the date of the DIB application and whether the DIB and RIB PIAs are equal. First, compute the DIB PIA for the first month of entitlement to DIB. (This may be the same as the recalculated RIB PIA.) Then compare the DIB and RIB PIAs:
a. When the DIB and RIB PIAs Are Equal
b. When the RIB and DIB PIAs Are Not Equal and the DIB Application Was Filed 9/30/85 or Earlier
If initial RIB and DIB entitlement is before 1/78, determine the difference between the PIAs and add this amount to the last benefit as if determined in 2.a. above.
If initial RIB is before 1/78 and DIB entitlement is 1/78 or later apply this formula:
Rate as if in 2.a. above x DIB PIA = New Reduced DIB
c. When the RIB and DIB PIAs Are Not Equal and the DIB Application Was Filed 10/01/85 or Later
Compute the recalculated RIB PIA for the first MOET to DIB.
Compute the fictitious RIB MAR as if the NH had attained FRA in the MOET to DIB.
Subtract the fictitious RIB MAR from the DIB PIA.
Use the formula: CMBA x NPIA = NMBA for COLAs.
However, if a recalculation applied to a RIB after the initial calculation, compute a fictitious RIB reduction and apply it to the DIB.