TN 10 (03-04)
GN 01701.210 Family Maximums – Only Totalization Benefits Involved
A. Policy
The family maximum for a Totalization benefit is always based on the pro rata primary insurance amount (PIA).
B. Procedure – retirement or survivor claims
The following explains how to determine Totalization family maximums in retirement or survivor claims.
1. Eligibility Before 1979 and Pro Rata PIA is Below Table Minimum
2. All Other Cases
Follow the rules in RS 00615.730 – RS 00615.801. Assume that references to “PIA” mean “pro rata PIA.”
C. Procedure – disability claims
1. General
If a disability family maximum is applicable (see RS 00615.740), establish the maximum as the lesser of:
150% of the raw pro rata PIA, or
85% of an artificial average indexed monthly earnings (AIME) that would produce a PIA equal to the raw pro rata PIA.
Exception: If the amount established above is less than the pro rata PIA, the disability family maximum will be the pro rata PIA.
Apply cost-of-living adjustments (COLAs) to disability family maximums unless a recomputation is involved. If a recomputation is involved, determine the new raw family maximum and apply COLAs to the new raw family maximum.
2. Determining the artificial AIME
Use the following formulas to determine the artificial AIME based on the pro rata PIA where:
F = the first PIA bend point for the eligibility year
S = the second PIA bend point for the eligibility year
P = the raw pro rata PIA
IF THE RAW PRO RATA PIA IS | THEN THE FORMULA IS |
Less than or equal to 90% of the first bend point | 10 X P 9 |
Greater than 90% of the first bend point, but less than 58% of the first bend point plus 32% of the second bend point | (100 X P) – (58 X F) 32 |
Equal to or greater than 58% of the first bend point plus 32% of the second bend point | (100 X P) – (58 X F) – (17 X S) 15 |
3. Rounding
If the first eligibility year is:
before 1983, round artificial AIME down to the next dollar if it is not already a multiple of $1.
after 1982, round artificial AIME up to the next dollar if it is not already a multiple of $1.