Effective Dates: 12/04/2023 - Present Previous | Next

TN 108 (12-23)

RS 00605.369 WEP Computation and Recomputation Methods

A. Procedure - Computation

1. Modified New Start (NS) 1978

Where WEP applies, determine the NS78 PIA method as follows:

  1. a. 

    Determine the AIME. (See RS 00605.015).

  2. b. 

    Select the percentage of first bend-point to be used based on eligibility year or YOCs, whichever is larger. (See RS 00605.360 and RS 00605.362).

  3. c. 

    Calculate the WEP PIA and round to the lower dime.

  4. d. 

    Calculate a regular PIA and reduce by 50 percent of the applicable pension amount. (See RS 00605.370 for WEP Guarantee).

  5. e. 

    Select the larger of RS 00605.369A.1.c. & d.

2. Modified Old Start (OS) 1977

The OS 77 is modified as follows:

  1. a. 

    Compute the raw PIA as in RS 00605.030.

  2. b. 

    Reduce this PIA by 50 percent and round to the lower dime.

  3. c. 

    Reduce raw PIA in RS 00605.369A.2.a. by 50 percent of applicable pension amount. (See RS 00605.370 for WEP Guarantee).

  4. d. 

    Select the larger of RS 00605.369A.2.b. & c.

3. Special Minimum PIA

For the special minimum PIA, compute the PIA (RS 00605.070) in effect in January of the eligibility year. WEP does not apply.

4. Selecting the PIA

Select the highest PIA from the raw PIAs in RS 00605.369A.1. - RS 00605.369A.3.

5. Subsequent DIB Guarantee PIA

If applicable, compute the DIB Guarantee PIA in effect in the first month of concurrent entitlement to RIB or DIB and the pension (see RS 00605.035). No adjustments apply for WEP unless the prior DIB was subject to WEP.

6. Compare the PIAs

Compare the PIA from RS 00605.369A.5. with the PIA in RS 00605.369A.4. and select the larger PIA.

B. Procedure - Recomputation

  1. 1. 

    Use modified benefit formulas in RS 00605.369A. when recomputation is necessary.

  2. 2. 

    When crediting an additional year of coverage, use January of the year after the year the additional credit is earned.

C. Policy - RIB Limitation (LIM)

The widow(er)'s benefit for RIB LIM purposes is based on the PIA without WEP. The deceased NH's benefit for RIB LIM purposes is equal to what the benefit would have been if WEP did not apply. Although the NH would be subject to WEP had they lived, WEP does not affect survivor benefits. Therefore, it is necessary to compute a fictitious RIB amount for RIB LIM purposes. (See RS 00615.320 for more detailed information on RIB LIM).

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0300605369
RS 00605.369 - WEP Computation and Recomputation Methods - 12/04/2023
Batch run: 11/08/2024
Rev:12/04/2023