TN 24 (09-02)

A. POLICY

These adjustments are effective at FRA.

B. PROCEDURE - COMPUTING THE ARF

1. Initial Entitlement 1/78 or Later

• Determine crediting months.

• Subtract from original reduction factor.

• Apply result to PIA (or unreduced spouse's benefit).

2. Initial Entitlement Prior to 1/78-Reduction Factor Adjustment 1/78 or Later

• Subtract the MBA from the PIA or unreduced spouse's benefit = CMAR.

• Determine ORF and ARF.

• NMAR = CMAR X ARF

          ORF

• Subtract NMAR from the PIA or unreduced spouses benefit.

3. Reduction Factor Adjustment Prior to 1/78

• Refigure the rates from the original entitlement date.

• Reduce each increase separately (see RS 00630.100).

• Subtract crediting months occurring from the date of increase to age 65 from the original reduction factor.