TN 5 (10-00)
RS 00201.002 Retirement Benefits - Amount and Non-Payment of Benefits - Policy Principles
A. Policy - amount
The RIB is equal to the PIA unless:
The PIA is subject to reduction because the NH elects benefits for one or more months before the month in which he or she attains FRA or because the NH received reduced widow(er)'s benefits. See GN 00204.039 through GN 00204.041 for giving claimants advice on filing for reduced retirement benefits. The policy for calculating reduced retirement benefits can be found in RS 00615.101. See RS 00615.160 and RS 00615.430 to determine which beneficiaries would be affected by the carryover widow reduction. See RS 00615.003 for the FRA chart.
The RIB is increased due to delayed retirement credits. See RS 00615.690 through RS 00615.730.
The number holder is transitionally insured only.
Where the NH is insured only because of the transitional insured status provision, the benefit amounts and effective dates are:
B. Policy - nonpayment
Payment of a RIB may be affected by earnings deductions, and also by the following circumstances which are neither deduction nor termination events:
Status of NH
The NH was deported after 09/01/54.
The NH is residing in the U.S., filing an application for benefits 12/1/96 or later, and not lawfully present as determined by the Attorney General.
The NH has been outside the U.S. for at least 6 full consecutive calendar months.
The NH is residing in a country to which the mailing of U.S. Government checks is prohibited.
Member of Religious Group
The NH has been granted a tax exemption.
Conviction by a Court
The NH has been deprived of certain benefit rights by court sentence after conviction for an offense involving espionage, sabotage, treason, sedition or subversive activities.
Conviction for felony
The NH is confined to a penal institution or correctional facility
NOTE: Since April 2000, the NH does not have to be convicted of a “felony” in order to have their benefits suspended. They simply have to be confined pursuant to a conviction of a criminal offense, provided they serve a sentence of more than 30 days. The suspension criteria did stipulate that the individual had to be convicted of a felony, but confinement no longer has to be based on a felony conviction.
C. Policy - when entitlement ends
Entitlement to a RIB ends with the month before the month in which the NH dies. Since the claimant must be entitled for an entire month, the month in which death occurs is not an entitlement month. For a discussion of the circumstances under which an earlier termination may occur where there is present eligibility to a railroad benefit or to another “Federal Benefit,” see RS 01702.213. Entitlement to HI and SMI ends with the month of death.