PROGRAM OPERATIONS MANUAL SYSTEMPart RS – Retirement and Survivors InsuranceChapter 006 – Determination of PIAs and Benefit AmountsSubchapter 05 – Initial Computation of the PIA - Recomputations and RecalculationsTransmittal No. 65, 07/19/2019
We are updating the example in this POMS section to provide clarity with regards to the second period of disability.
Summary of Changes
RS 00605.220 The Freeze Computation - RIB, DIB, and Survivor PIAs
In section A.3, we added language to clarify when the second period of disability terminated. In addition, we added language to clarify the deemed age 62 for the second period of disability.
Elapsed years are defined as:
Years after 1950 (or 1936) through the year before earlier of:
year the waiting period begins (or year of entitlement if no waiting period); or
year of attainment of retirement age and
Exclude years before age 22, and years wholly or partially within a period of disability.
Retirement age is 62 for all females and for males born after 1/1/13 whose claims were filed or adjudicated after 10/72. For males born 1/1/13 or earlier (or born anytime whose claims were adjudicated before 11/72) retirement age is deemed to be 65. For such males, elapsed years end with the earlier of: the year before the year the waiting period begins (or year of DIB entitlement if no waiting period), or 1975.
DIB base years are the same as RIB base years except years wholly within a period of disability are disregarded.
Betty, DOB 7/30/31, applied for DIB and freeze in 1982; a date of onset of 3/1/82 was established. Since 3/82 was the first month of her waiting period, she is deemed age 62 in that month and her period of disability for PIA computation purposes was 3/1/82 to 2/28/85 (any earnings for 1983 or 1984 could not be included in a DIB freeze computation).
Earnings for 1985 were included in a DIB freeze recomputation effective 1/ 86. Her DIB payments terminated effective 10/86. In 1988, she again filed for DIB and a new onset date of 11/4/88 was established. The second period of DIB payments terminated effective 12/91.
In figuring a DIB freeze computation, two periods of DIB must be excluded: (1) 3/1/82 to 9/30/86 and (2) 11/4/88 to 11/30/91, (she is deemed age 62 for the second period of DIB in 12/88, which is the first full month of disability since there is no new waiting period); therefore, earnings in 1985 could not now be used (excluded base years are 1983-1985 and 1989-1990). A nonfreeze DIB computation should be considered (elapsed years 53-87) as well as a DIB guarantee PIA, RS 00605.035.
The rules for determining elapsed years are the same as for the regular computation method. Years wholly and partially within a period of disability, are excluded.
The regular base year rules apply except years wholly within a period of disability are excluded (consider entire period of disability, not just to assumed FRA).