TN 26 (01-04)
RS 00615.694 DRCs in Dual-Entitlement Cases
If a beneficiary is entitled to his/her own RIB with DRCs and to benefits as an auxiliary/survivor, the combined payment amount is computed without consideration of the DRCs. The DRCs are then added to the RIB and that amount is subtracted from the combined payment amount to determine the amount payable as an auxiliary/survivor. See RS 00615.240 for reduced B benefits prior to A benefits.
To determine the auxiliary/survivor benefit amount when the RIB MOE is before or the same as the spouse MOE:
Step 1. Determine RIB (without DRCs);
Step 2. Determine unreduced spouse's benefit;
Step 3. Determine spouse excess by subtracting the RIB PIA from the spouse original rate. Reduce if applicable.;
Step 4. Add steps 1 and 3 for total auxiliary payment amount;
Step 5. Add DRCs to step 1;
Step 6. Subtract step 5 from step 4 for reduced spouse's benefit payable.
NOTE: The DRC increase can be an amount sufficient to cause the other benefit to be suspended or terminated.
NOTE: In RIB/WIB cases calculate each benefit separately and subtract the RIB to determine the excess.
Toni, DOB 3/02/35, files for RIB benefits with an MOE of 3/97. She has earned 5 DRCs on her RIB record through 12/01. In 4/02 Toni’s husband files for RIB and she files for spouse’s benefits. Effective 4/02 Toni’s RIB PIA is $500.00 and her husband’s RIB PIA is $1600.00. To calculate Toni’s 04/02 rate, follow these steps.
Step 1. RIB MBA in 4/02 is $400.00 ($500 reduced for 36 RF)
Step 2. Unreduced spouse benefit is $800 ($1600/2)
Step 3. Excess spouse benefit is $300 ($800 - $500) - no age reduction applies.
Step 4. Total payment is $700.00 ($400.00 + $300.00)
Step 5. RIB with DRCs is $410.00 ($400 with 5 DRCs)
Step 6. Spouse payment is $290 ($700 - $410)
NOTE: The Interactive Computations Facility (ICF) may be used to complete these steps. For Step 1 use program #1 on ICF to calculate the RIB. The program will provide the benefit with and without DRCs. For Step 2 use program #5 to calculate the dual entitlement rates. This program will not permit DRCs on the RIB benefit amount. For Step 3 subtract the result from Step 1, (with the DRCs) from the ‘Total B benefit amount’ from Step 2. This is the excess payable after DRCs are included on the RIB.
Termination/Suspension, RS 00615.696.