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 their 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 their own record. A CFM does not apply. Their PIA is $100.00 and
because their month of entitlement (MOET) is 36 months prior to FRA, reduce their
benefit to $80.00. Their benefit as a B does not terminate because their own PIA is
less than 1/2 the PIA on that record. Therefore, they are technically entitled as
a B. Reduce their 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 B's 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 their
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.