TN 25 (07-03)

# RS 00615.712 Widow(er)'s DRC Savings Clause

## A. POLICY

### 1. General

A savings clause was provided to protect beneficiaries who were entitled for the month of 5/78 from a future reduction in their benefits because the widow(er) is due an increase for DRCs. The only criterion for this to apply is entitlement for the specific month of 5/78. Entitlement before or after 5/78 is immaterial.

### 2. Payment Amount

This saving clause does not establish a new family maximum but does permit payment to exceed the established maximum using the savings clause maximum. The maximum will revert to a table maximum when the savings clause no longer applies.

## B. EXAMPLE

In 3/00 a widow is to be entitled. The PIA is \$400. The family maximum is \$700. A son has been entitled continuously since 3/78. In 3/00 the original rates would be \$400 for the widow and \$300 for the child. The widow is due an increase of \$10 because of the deceased numberholderâ€™s DRCs. Using the steps:

### 1. Step 1

The widow's benefit including the DRCs without considering the family maximum is \$410.

### 2. Step 2

The childâ€™s original rate is \$300.

### 3. Step 3

The total of all rates from Step 1 and 2 for all the survivors entitled on the record is \$710.

### 4. Step 4

Dividing the family maximum by step 3 is \$700/\$710.

### 5. Step 5

Multiply Step 1 by Step 4 for the widow: \$410 x 700/710 = 404.20.

This is the WIB adjusted for the maximum.

### 6. Step 6

Multiply Step 2 by Step 4 for the child: \$300 x 700/710 = 295.70.

This is the adjusted survivor rate.

Because the son was entitled for 5/78, he is protected by the savings clause and his rate will remain at \$300. The MBR will show a PIA of \$400.00 and a savings clause family maximum of \$704.20.

 To Link to this section - Use this URL: http://policy.ssa.gov/poms.nsf/lnx/0300615712 RS 00615.712 - Widow(er)'s DRC Savings Clause - 07/02/2003 Batch run: 02/21/2013 Rev:07/02/2003