Take the reduction for the family maximum after making the deductions listed on GN 02603.040. The deduction-before-reduction provision applies:
to auxiliaries or survivors whose benefits are subject to the family maximum and to
a deduction event as listed in GN 02603.040, or
when the number holder is subject to penalty deductions or unpaid maritime tax deductions.
NOTE: When any auxiliary or survivor is entitled to benefits that are not subject to the
family maximum; i.e., a divorced spouse or surviving divorced spouse, consider only
the auxiliaries or survivors who are subject to the maximum in calculating a benefit