CURRENT METHODS OF RECOMPUTING
BENEFITS

§ 404.240 General.

Recomputation of an individual's primary insurance amount is the computing of such amount as if it were being established for the first time, although, in fact, it was determined previously. Recompu*ation is permitted only if it results in an increase in the primary insurance amount. That is, the recomputation is made as if the individual were first filing for and becoming entitled to monthly benefits in the year in which the recomputation is made. Recomputation of an individual's primary insurance amount was first provided for by the 1946 amendments. However, recomputations of an individual's primary insurance amount were made only upon application by the individual; or, if deceased, by someone entitled to monthly benefits based upon that primary insurance amount. The 1965 amendments eliminated the requirement that an application for recomputation be filed.

§ 404.242 When a recomputation applies.

A recomputation is usually effected to permit consideration of one or more of the following:

(a) Earnings which could not be inIcluded in the initial computation of the primary insurance amount because evidence of such earnings was then unavailable; or

(b) Earnings which were earned after the primary insurance amount was first determined; or

(c) A computation method or formula provided by an amendment to the Act which was not in effect when the primary insurance amount was first determined;

or

(d) An earlier ending date for the computation period as where the ending date which was used in initially determining the individual's primary insurance amount was based upon attainment of retirement age in a future year and death occurs prior to such year.

§ 404.244 "Automatic" recomputations.

(a) General. (1) Since 1966, "automatic" recomputations are made by the Social Security Administration at times designated by the Secretary. An individual is no longer required to file an application requesting recomputation of his primary insurance amount. The So

cial Security Administration examines for each year the wage and self-employment records which it maintains for those who are entitled to monthly benefits (see Subpart I of this part for discussion of these records). When this examination indicates that recomputation of an individual's primary insurance amount is possible, the recomputation is made and any resulting increase in benefits paid (if otherwise due).

(2) The automatic recomputation provision is effective for recomputations of primary insurance amounts for individuals entitled to old-age insurance benefits for any month after December 31, 1964. However, the 1967 amendments provided that recomputation of the primary insurance amount for individuals entitled to old-age insurance benefits for months after 1965 may be made only if the individual has creditable wages or self-employment income for the year with respect to which such recomputation is made.

(b) Method of recomputation. (1) Under the 1965 amendments "automatic" recomputations were made as provided in § 404.211, as though the year for which the wage and self-employment records were examined was, in fact, the last "computation base year" (see § 404.211(b)) for purposes of computing the primary insurance amount. However, if such year was not the first year in which the individual was entitled to old-age insurance benefits or the year immediately preceding that year, only the method described in § 404.211 for establishing the primary insurance amount directly from the average monthly wage could be used (and not the methods described in § 404.213 or in § 404.215 for establishing the primary insurance amount from the primary insurance benefit). Increases in monthly benefits under this provision of the 1965 amendments were effective with January of the year immediately following the year considered to be the last "computation base year" under the preceding sentences of this section but: (i) no earlier than January 1966; or, (ii) if the individual died in the year considered to be the last "computation base year" under the preceding sentences, no earlier than the month in which the individual died.

(2) The 1967 amendments permitted the primary insurance amount to be recomputed under the methods described in § 404.213 or in § 404.215 when the conditions in paragraph (a) of this section