The PIA is $400.00 and the family maximum is $650.00. A number holder, spouse (B),
and two children (C2, C1) from a prior marriage are entitled. B is age 62 and reduced
for age; the children are in another household and not in her care.
BIC

ORIGINAL BENEFIT

ADJUSTED BENEFIT

A

400.00

400.00

B

200.00

62.40 (83.30 reduced for age)

C2

200.00

83.30

C1

200.00

83.30

B is entitled on her own record. A CFM does not apply. Her PIA is $100.00 and because
her month of entitlement (MOET) is 36 months prior to FRA, reduce her benefit to $80.00.
Her benefit as a B does not terminate because her own PIA is less than 1/2 the PIA
on that record. Therefore, she is technically entitled as a B. Reduce her rate to
$0.00. Under the old procedure, the children would have continued to receive $83.30
each. Using the formula in GN 02603.050 their rates would have been:
_______OB x PTAP*_________ = 200.00 x 166.70 = 83.30
TOTOB – OB for B 600.00 – 200.00
*PTAP = 650.00 – 400.00 – 83.30 = 166.70
Under the new procedure described in GN 02603.045, the children will receive more because of B's dual entitlement. Using the formula
in GN 02603.050, each C rate is:
_______OB x PTAP*_________ = 200.00 x 250.00 = 125.00
TOTOB – OB for B 600.00 – 200.00
*PTAP = 650.00 – 400.00 = 250.00
The PTAP = 650.00  400.00 = 250.00
The rates payable are 400.00 to A, 0.00 to B (80.00 on her own record), 125.00 to
C2, and 125.00 to C1.
This example shows that B's age reduction has no effect because we consider her dual
entitlement first. Therefore this case can be worked using the method in GN 02603.050B. Disregard B's entitlement and divide the maximum two ways. C2 and C1 are each due
$125.00.