For any month before 06/82
The monthly benefit credited (MBC) is the amount after reductions and deductions,
but before the collection of any obligations of the beneficiary (e.g.; SMI premium,
a prior overpayment, attorney fee withholding).
For 06/82 or later
The MBC is the amount after reductions, deductions, and lower dollar rounding, but
before the collection of any obligations of the beneficiary. The calculation of the
MBC for these months differs depending upon SMI entitlement and the party responsible
for payment of the SMI entitlement.
No SMI Entitlement
The MBC is equal to the amount after reductions, deductions and lower dollar rounding.
SMI Entitlement - Number holder (NH) or Private Third Party Is Paying Premium
The lower dollar rounding is applied to the benefit after considering reductions,
deductions and SMI premium for each month the claimant is liable for the SMI premium.
To calculate the MBC, apply reductions and deductions, and subtract the amount of
the SMI premium. The remainder is rounded to the next lower dollar. The MBC is equal
to this remainder after rounding plus the amount of the SMI premium.
SMI Entitlement - State Buy-In, Railroad Retirement Board (RRB) or Civil Service
Payment of SMI Premium
If state buy-in is involved or the premium is deducted from the beneficiary's RRB
benefit or civil service annuity, the MBC for each month that the third party is liable
is computed as if there were no SMI entitlement. If the beneficiary later becomes
responsible for the premium payment (e.g., state buy-in is ended), the MBC for each
month of the beneficiary's liability is computed as if the NH or private third party
is paying the premium.