EXAMPLE 1: Worker (Auxiliary or NH) and no family benefits involved
A beneficiary became entitled to benefits of $562 effective January of the prior year.
Based on the estimate, the beneficiary had excess earnings of $2,881. Therefore, the
benefits for that year were withheld January through June using the full-month withholding
rule. The actual earnings for the prior year were the same as the estimate. It was
proper to withhold benefits for January through May. The remaining excess is $71.
Therefore, the beneficiary is due $491 for June.
EXAMPLE 2: NH Worker with family benefits involved
NH, spouse, and three children are entitled to benefits. The NH's monthly benefit
amount is $800 and the auxiliaries are entitled to $101 each.
The excess earnings are $6,624. The total family benefit is $1,204 ($800 plus $101
x 4 = $1,204). No benefits are due for January through May and $600 is due the family
for June ($1,204 x 6 = $7,224 minus $6,624 = $600).
Proportionate share calculation:
Allocate two shares to the NH because they are entitled to 100% of the primary insurance
amount (PIA) and one share to each auxiliary because each original benefit is equal
to 50% of the PIA. Total shares are equal to six (2/6 (NH) plus 1/6 x 4 (aux)).
The NH is entitled to $200 and each auxiliary is entitled to $100 ($600 divided by
six = $100 a share).
EXAMPLE 3: Prorated share exceeds the benefit rate
The partial family benefit is $93 payable in June. NH's benefit is $117. Two children
are entitled to $19.90 each; the aged spouse, who has no child in care, is entitled
to a reduced benefit of $16. Total family benefit is $172.80 ($117 plus $16 plus $19.90
x 2 = $172.80). The NH is entitled to two shares (2/5) because their original benefit
is equal to 100% of the PIA and the auxiliaries are entitled to one share (1/5) since
they each are potentially entitled to 50% of the PIA. Total shares are five.
The first apportionment of the $93 benefit:
NH = $37.20 and each auxiliary = $18.60 ($93 divided by 5 = $18.60 for one share and
$37.20 for 2 shares). The aged spouse cannot be paid $18.60 because it exceeds their
regular rate. Therefore, they can only receive $16 and $2.60 remains for reapportioning.
The reapportionment of the $2.60 benefit:
There are four shares to distribute (two to NH (2/4) and 1/4 to each child). The NH
can be paid an additional $1.30 and each child and additional $.65 ($2.60 divided
by 4 = $.65 to each child and $.65 x 2 = $1.30 to the NH).
Therefore the benefits paid in the partial month are:
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A - $38
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($37.20 plus $1.30 = $38.50 rounded down to the nearest dollar)
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B - $16
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C2 - $19
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($18.60 plus $.65 = $19.25 rounded down to the nearest dollar)
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C1 - $19
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($18.60 plus$.65=19.25 rounded down to the nearest dollar)
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