Effective Dates: 11/20/2023 - Present Previous | Next

TN 102 (11-23)

RS 00605.030 1977 Simplified OS PIA

A. Policy

1. General

The 1977 Simplified OS PIA applies to individuals who are eligible in 1978 as well as after 1978. Rules for COLA's and recomputations for this method vary depending on the eligibility year.

NOTE: Cases with an ELY after 1978 are considered to be new law computations. Cases with an ELY of 1978 are considered to be old law computations.

2. Eligibility Requirements - Eligibility Year After 1978

Eligibility requirements for eligibility after 1978 are as follows:

  • •

    NH attains age 62, dies or becomes disabled 1/1/1978 or later.

  • •

    No period of disability that began before 1951 unless it is entirely disregarded. (See RS 00605.060 if period, of disability began before 1951).

  • •

    NH has at least one QC before 1951.

  • •

    NH was born after 1/1/16 and before 1/2/29, or was born after 1/1/29 and had less than six QC's after 1950.

  • •

    Earnings before 1979 exist.

  • •

    NH has no period of disability beginning before 1979 unless no entitlement to DIB exists in any of the 12 months immediately preceding the new eligibility or death, or the period of disability is entirely disregarded.

3. Eligibility Requirement - Eligibility in 1978

Eligibility requirements for eligibility in 1978 are the same as the first four bullets in RS 00605.030A.2.

B. Procedure

Determining the 1977 Simplified OS PIA as follows:

STEP ACTION
1 Determine elapsed years, computation years and divisor months (see RS 00605.016 ff.), but include years after the later of 1936 or age 21.)
2 Allocate Pre-1951 earnings - see RS 00605.033.

3

Determine base years - see RS 00605.017, but use years after 1936.

  • •

    If the eligibility year is after 1978, do not include years in and after the eligibility year or year of death in the base years.

  • •

    If the eligibility year is 1978, consider the computations and recomputations to include additional earnings in or after 1978.

4 Determine increment years, - no more than 14 or less than 4, that are equal to the NH's total pre-1951 earnings divided by $1,650 (dropping any remainder).
5 Determine the dividend.
6 Locate the basic benefit in table Omni 2 of the Computation and Benefit table for the corresponding dividend and divisor months. See RS 00605.100B.3. when basic benefit is less than $16.20.
7 Use table Omni 3 for 6/78 to derive the PIA and add COLA's beginning with the eligibility year.

C. Examples

1. Entitlement at Age 62

Mary Harmon, DOB 3/19/19, becomes entitled to benefits in 3/81 (age 62). Their ER shows total wages of $37,700 (pre-1951 earnings were $34,500). Their NS 78 PIA would be the frozen minimum PIA of $122.00. Since they meet the requirements for an OS GUAR PIA, the following must also be considered:

  1. a. 

    Computation Years - 35 (420 divisor months);

  2. b. 

    Base Years 1937 - 1980 (age 62 in 1981);

  3. c. 

    Increment years - $34,500 (pre-1951 earnings) divided by 1650 = 20 which is limited to 14;

  4. d. 

    Dividend - Total earnings in 35 computation years = $37,700.00;

  5. e. 

    Using Table Omni 2, the basic benefit is $23.90; and

  6. f. 

    Using Table Omni 3 for 6/78, the PIA for a basic benefit of $23.90 and 14 increment years is $174.90. This is the basic 1977 simplified OS PIA at age 62 in 3/81.

2. Entitlement After Age 62

If Mary (from 1. above) became entitled in 1/84 their initial PIA of $174.90 would have COL increases added to it.

  1. a. 

    $174.90 (basic PIA) ×111.2% (increase for 1981 when Mary attained 62) = $194.488 or $194.50.

  2. b. 

    $194.50 ×107.4% (1982) = $208.893 or $208.80.

  3. c. 

    $208.80 ×103.5% (1983) - $216.108, or $216.10.

The 1/84 OS GUAR PIA is $216.10. in 12/84, the 3.5% increase is added to give a PIA of $233.60.

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0300605030
RS 00605.030 - 1977 Simplified OS PIA - 11/20/2023
Batch run: 11/20/2023
Rev:11/20/2023