Example 1.
Edna Roberts was entitled to DIB from 10/79 through 11/80 based on an onset date of
4/23/79. Her PIA in 10/79 was $312.20. Edna’s PIA in 1/80 was recomputed to $314.30
by including her 1979 earnings. Her PIA in 11/80 was $359.30. In 7/81 she became reentitled
to DIB, based on an onset date of 6/15/81. Due to the recomputation, the DIB guarantee
PIA is larger than the PIA determined under any other method.
Since Edna was entitled to DIB in the 12-month period preceding her current eligibility
and her prior eligibility is after 1978, the bend point formula applicable to the
prior DIB eligibility year is used to compute the family maximum. The 1979 formula
is applied to the PIA applicable in the last month of prior DIB entitlement.
$359.30 - $332.00 = $27.30
$27.30 x 1.34 = $36.58
$36.58 + $622.44 = $659.02 rounded to $659.10
Edna is reentitled to benefits within the 12 months following her last month of previous
DIB entitlement. The 6/81 COL increase is applied to the basic maximum to determine
the family maximum in 7/81.
If Edna is insured in 7/81, without considering the prior period of disability, a
maximum must also be computed using the bend point formula applicable to the current
eligibility year. The 1981 formula is applicable to the PIA applicable in the last
month of prior DIB entitlement.
$359.30 - $270.00 = $89.30
$89.30 x 2.72 = $242.89
$242.89 + $405 = $647.89 rounded to $647.90
Because of Edna's reentitlement within the 12 months following her last month of entitlement
to the previous DIB, the 6/81 COL increase would be applied to the basic maximum computed
under the 1981 bend point formula. The family maximum in 7/81 is $659.10 increased
by the 6/81 COL increase, since it result in the larger family maximum.
Example 2.
Matthew Barrett, DOB 3/23/18, was entitled to DIB from 10/75 through 3/79. based on
an onset date of 4/15/75. His DIB PIA was recomputed in 1/79 to include his 1978 earnings.
His DIB PIA in 3/79 was $341.10. On May 12, 1980, Matthew filed for reduced RIB. His
RIB MOET is 5/80. Due to the recomputation the DIB guarantee PIA is larger than the
PIA determined under any other applicable method.
In determining the family maximum, the 1980 bend point formula is applied to the DIB
PIA in 3/79 (see RS 00615.736B.1.a.(1) .)
$341.10 - $248 = $93.10
$93.10 x 2.72 = $253.23 + 372 = $625.23 rounded to $625.30.
Since Matthew became entitled to RIB more than 12 months after his last month of entitlement
to DIB, the intervening COL increase for 6/79 is not added to the PIA or family maximum.
The RIB PIA in 5/80 is $341.10 and the family maximum is $625.30.
Example 3.Allen Snyder was last entitled to DIB in 10/79. He became entitled to RIB
at age 62 in 12/80. His DIB PIA in 10/79 is $423.70. Since this prior DIB PIA is higher
than the PIA's computed by an other methods, his PIA in 12/80 is $423.70 (no intervening
increases, i.e., 6/80, are applicable.) In determining the family maximum the 1980
bend point formula is applied to the DIB PIA in the last month of entitlement. The
family maximum in 12/80 is $759.30 (no intervening increases, i.e., 6/80 are applicable).
Be sure to round the final figure to the next higher multiple of $.10 if not an even
multiple of $.10. Do not round at intermediate steps.