TN 4 (02-12)

RS 00620.060 Current Year Recomputation for Work

A. Understanding a current year work recomputation

The current year recomputation includes earnings in the year of filing or death that could have been, but were not, considered in previous computations. The last year a current year recomputation could be applicable was 1965.

If you use earnings in the year of filing or death in the initial computation, a recalculation rather than a current year recomputation is applicable.

B. Work recomputations for life cases

1. Applicability of recomputations for life cases

  1. Previous application must be filed after 08/1954 to consider recomputation for:

    • Retirement insurance benefits (RIB) or disability insurance benefits (DIB) (if entitled to DIB before 01/1961, consider earnings in the year the waiting period began).

    • Transitional work recomputation,

    • First 1954 work recomputation,

    • 1950 work recomputation; and

    • Dropout recomputation.

  2. The increase can be retroactive up to 24 months before the month of filing the current year recomputation application but no earlier than the first month of entitlement on the previous application.

2. PIA computation for an application filed after 1960

a. When there is a previous primary insurance amount (PIA) computation under pre 1960 method, calculate the PIA under methods or formulas in effect before the 1960 amendments. Determine the PIA as if the number holder (NH) were filing for RIB in the year following the year of initial filing for RIB and using the methods in effect at the time of the previous computation.

The NH can meet requirements for the new start even if not previously available. Closing date is first day of the year after the NH's previous effective filing date.

b. When there is a previous PIA computation considered a 1960 method, determine the PIA only under a 1960 method. The last base year is the year of initial filing or previous recomputation filing, if later.

C. Work recomputations for death cases

1. Applicability of recomputations for death cases

Apply recomputations in death cases when NH meets the following conditions:

  1. The NH died after 08/1954 and entitled at death to RIB or DIB based on an application filed after 08/1954; or

  2. One of the following recomputations increased the PIA based on an application filed after 08/1954:

    • Transitional work recomputation;

    • Work recomputation, application filed in year of death;

    • Dropout recomputation; or

    • Railroad recomputation for survivors;

  3. An entitled survivor filed application after the NH's death; and

  4. The recomputation increased the PIA.

  • If the NH was on the rolls, his survivors may have qualified for a current year recomputation, even if he died in the year he met all the requirements for RIB, DIB, or one of the above mentioned recomputations.

  • If the NH was not entitled to RIB or DIB at death, consider earnings in the year of death in the initial computation. If evidence of earnings for the entire short taxable year is not available, but submitted later, you may reopen the award without another application.

2. Application requirement for current year work recomputation

An application filed by a survivor for monthly benefits or the lump sum meets the requirement for the current year work recomputation.

3. Effective month of increase for survivor’s benefits

The first month of entitlement to a monthly increase for survivor’s benefits, is retroactive for no more than 24 months before the filing of an application for recomputation.

4. Work computation for an application filed before 1960

If the previous computation considered a pre-1960 method, assume the NH initially filed before 1960 for RIB in the year after the year of initial filing for RIB.

5. Work computation for an application filed in or after 1960

If the previous computation considered a 1960 method, the year of death can be a base year if the NH:

  • died before becoming entitled to RIB; or

  • qualified a work recomputation to include earnings up to the year of death and earned less than $1,200.01 in the year of death.