The statute requires the imposition of certain deductions before reducing benefits to achieve the maximum family benefit. When imposing these deductions, raise the benefit rates of the beneficiaries not subject to the deduction. Divide any portion of the maximum not payable to one beneficiary proportionately among the remaining beneficiaries, not including the number holder.

For benefits payable for months prior to January 1996, the statute specified the payment method for beneficiaries subject to an increase under the deduction-before-reduction provision who live in the same household as the beneficiary subject to the deduction. Pay any increase due under the deduction-before-reduction provision to the beneficiary subject to the deduction. This provision permits us to change only the benefit amount of the beneficiary subject to the deduction. This change results in reduction of the total benefits payable to a household only to the extent that it actually reduces the benefit subject to the deduction.

Beneficiaries not living in the same household with the beneficiary subject to the deduction receive the increased benefit only when the deduction becomes permanent.

For benefits payable for months after December 1995, impose deductions against the beneficiary subject to the deduction and increase the benefits to the other beneficiaries. When imposing temporary work deductions, withhold increases to beneficiaries in other households until the deductions become permanent at the close of the year.

NOTE: A special message must be annotated to the MBR for any case in which rates are adjusted according to the aforementioned readjustment procedures.