TN 26 (01-04)

RS 00615.420 DIB After Entitlement to Reduced WIB (D/W then HA)

A. POLICY

Follow the steps below if DIB begins after a reduced WIB. See RS 00615.350 if the DIB begins prior to the WIB or if the DIB and WIB are concurrent.

NOTE: Use the unreduced DIB amount to determine the WIB rate. Reduce the DIB for workers’ compensation/PDB offset (if applicable) after determining the WIB.

1. WIB Reduced Before Age 62

a. Effective 1/90 and later

  • For NHs born 1/2/28 or later, and NH's DIB onset is 1/1/90 or later DIB is not reduced.

  • The carry-over reduction in DIB (Method II) does not apply.

  • Subtract the DIB from the WIB payable. The total payable therefore remains the same.

b. Prior to 1/90

  • The DIB is reduced if the WIB has been reduced for any MOET before age 62 and was reduced in the month he/she attained age 62.

  • Beginning 1/84, the DIB is reduced only for months that the WIB is reduced during the period from age 60 to the earlier of age 62 or the first MOET to DIB.

  • From 9/65 - 12/72, the WIB was reduced for all months of entitlement before age 62.

  • Effective 1/73, widow(er)s could receive benefits that were reduced for months of entitlement before age 65. However, reduction amounts that are carried over from a WIB to a DIB are still determined as though retirement age is age 62.

2. WIB Reduced At or After Age 62

  • Any reduction that applies on the WIB for months after age 62 will not affect the DIB amount.

  • Later DIB PIAs will be reduced by the fixed MAR in the WIB at age 62 or deemed age 62 (if HA entitlement is before age 62) regardless of whether initial entitlement to DIB is before or after 12/77.

3. Reduced WIB Terminates

  • Prior to 1/90, entitlement to reduced WIB before age 62 that terminates for any reason before actual age 62 will cause a reduction in a subsequent DIB. It is not material that the WIB terminated in a month prior to the DIB MOET. The MAR is computed as though the WIB had not terminated but the months of nonentitlement before age 62 will be eliminated from the RF by the ARF.

  • Entitlement to a higher DIB is not a cause for termination of WIB. Technical entitlement to WIB continues even though no payment may be made. Further, the law does not provide for adjusting the RF of a WIB for months of entitlement to a DIB if the WIB entitlement precedes the DIB entitlement.

B. PROCEDURE

1. DIB Initial Entitlement Before Age 60

  • DIB 1/84 and later is not reduced.

  • DIB before 1/84 is reduced by the MAR the WIB would be reduced if reduction applied only for months of WIB entitlement before the first MOET to DIB.

2. DIB Initial Entitlement Age 60-62

  • DIB entitlement with an onset 1/90 and later is not reduced due to WIB before age 62.

  • DIB entitlement with an onset before 1/90 is reduced by the MAR the WIB would be reduced at age 62 if the reduction applied only for months of WIB entitlement before age 62.

3. DIB Initial Entitlement Age 62 and Later

The DIB is reduced by the MAR the WIB would be reduced at age 62 if a reduction applied only for months of entitlement before age 62.

4. COLAs

  • Initial entitlement to WIB and DIB 1/78 and later - The original RF is applied to the full PIA after the COLA.

  • Initial entitlement to WIB is prior to 1/78 but initial entitlement to DIB is 1/78 or later - The following formula is applied for COLAs 1/78 and later.

    New Unreduced WIB × CMBA = NMBA

    Current Unreduced WIB

  • Initial entitlement to WIB and DIB is prior to 1/78 - Separate reduction of increases applies for months prior to 1/78. The following formula is applied for COLAs 1/78 and later.

    New Unreduced WIB × CMBA = NMBA

    Current Unreduced WIB


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http://policy.ssa.gov/poms.nsf/lnx/0300615420