In this situation, the 80% ACE is the applicable limit in the initial computation
of offset. Compute 03/2007 offset as follows:
PIA – 03/2007
|
$655.40
|
MAX
|
$794.30
|
HB2, HC1, HC2
|
$ 46.30 (each)
|
TFB
|
$794.30
|
80% ACE
|
$880.00
|
WC
|
$593.30
|
|
|
80% ACE
|
$880.00
|
Monthly WC
|
- 593.30
|
HA Payable
|
$286.70
|
HB2, HC2, HC1 Payable
|
$ 0.00
|
HB2, HC1, and HC2 are in total offset, each having offset of $46.30. A COLA is due
12/07.
PIA – 12/2007
|
$670.40
|
MAX
|
$812.50
|
HB2, HC1, HC2
|
$ 47.30 (each)
|
TFB
|
$794.30
|
80% ACE
|
$880.00
|
WC
|
$593.30
|
|
|
12/2007
|
|
HA Payable
|
$301.70
|
HB2, HC2, HC1 Payable
|
$ 1.00
|
$670.40 minus $655.40 = $15.00 protected increase due HA.
$ 47.30 minus $ 46.30 = $ 1.00 protected increase due auxiliaries.
HA Payable
|
Auxiliary Payable
|
$ 286.70
|
$ 0.00
|
+ 15.00
|
+ 1.00
|
$ 301.70
|
$ 1.00
|
HC2 terminates leaving two remaining entitled auxiliaries 06/2008.
If T2 is unable to process the termination and adjustment, a manual adjustment credit
and award data entry (MACADE) action is required in the PC.
Because the ACE remains the applicable limit, the maximum is payable both before and
after the auxiliary termination and equal shares of the maximum remain payable to
the remaining auxiliaries, so use of the expedient would be acceptable in this situation.
The BA/BTE would redistribute the amount after offset that was payable in 05/2008
to the remaining auxiliaries.
$3.00 divided by 2 yields $1.50 each due HB2 and HC1 after offset effective 06/2008
If T2 is able to process the termination action to completion, it recalculates the
offset as follows:
Redistribute the MAX.
$ 794.30
|
$ 812.50
|
$142.10
|
($ 71.00 each)
|
- 655.40
|
- 670.40
|
- 138.90
|
(- 69.40 each)
|
$ 138.90
|
$ 142.10
|
$ 3.20
|
($ 1.60 each)
|
Despite the fact that there are now only two auxiliaries, only the $3.20 protected
increase is payable to the auxiliaries.
$3.20 divided by the 2 remaining auxiliaries yields $1.60 payable to HB2 and HC1.
PIA – 12/2007
|
$670.40
|
MAX
|
$812.50
|
HB2, HC1
|
$ 47.30 (each)
|
TFB
|
$794.30
|
80% ACE
|
$880.00
|
WC
|
$593.30
|
|
|
06/2008
|
|
HA Payable
|
$301.70
|
HB2, HC1 Payable
|
$ 1.60
|
Although the two methods yield results that differ by $.10, either result is acceptable
under the equivalency rules found in RS 00601.010 - Equivalency and Tolerance Rules