TN 57 (12-23)

# RS 00615.736 Determining Maximum Family Benefits Effective January 1979

## A. Policy

### 1. General

• The PIA to be used in the formula below is the PIA for the year of first eligibility before any COL increases.

• The COL increases applied to the PIA are then applied to the maximum obtained from the formula.

### 2. DIB Guarantee PIA

• The DIB Guarantee PIA is an alternative PIA available to workers who have their benefits computed under the 1977 amendment provisions and who were previously entitled to DIB.

• Follow RS 00615.736B.2 for the maximum with a DIB Guarantee OIA before 1/96.

• See RS 00615.738 for the maximum with a DIB Guarantee PIA after 12/95.

## B. Procedure

### 1. Determine family maximum

#### a. AIME method of computing a maximum

Under the AIME method of computing a maximum, the PIA for the year of first eligibility is divided into 4 parts. The three divisions between these parts are called “bend points”. A different set of bend points will be provided for each year of eligibility after 1978.

#### b. Individuals who attain age 62 become disabled or die after 1978

For individuals who attain age 62, become disabled or die after 1978, determine the maximum by taking the sum of:

• 150 percent of the amount up through the first bend point, plus

• 272 percent of the amount over the first bend point through the amount of the second bend point, plus

• 134 percent of the amount over the second bend point through the amount of the third bend point, plus

• 175 percent of the amount over the third bend point.

#### c. Bend points years after 1978

The table in RS 000605.910 lists the bend points for years after 1978.

NOTE: It is important to remember that those figures are related to the year in which the individual was eligible and not necessarily to the year they were first entitled.

### 2. DIB guarantee maximum before January 1996

To establish a family maximum for a DIB Guarantee PIA for months before January 1996 follow either RS 00615.736.B.2.a. or RS 00615.736.B.2.b. (For months after 12/95 see instructions in RS 00615.738A.)

Prior DIB entitlement in any of the 12 months preceding the month of current eligibility or death - new eligibility after 1978.

1. a.

Prior DIB entitlement in any of the 12 months preceeding the month of current eligibility or death - new eligibility after 1978

• Eligibility year (RS 00605.005) of the prior DIB is before 1979. Apply the bend point formula for the current eligibility year to the PIA in the last month of prior DIB entitlement.

• Eligibility year of the prior DIB is after 1978. The formula applicable for the year of the prior DIB eligibility will be applied to the PIA in the last month of prior DIB entitlement.

2. b.

Prior DIB entitlement more than 12 months before the current eligibility or death - new eligibility after 1978.

The bend point formula applicable in the year of current eligibility is applied to the PIA in effect in the last month of prior DIB entitlement.

### 3. EXAMPLES

Example 1.

Edna Roberts was entitled to DIB from 10/79 through 11/80 based on an onset date of 4/23/79. Their PIA in 10/79 was \$312.20. Edna’s PIA in 1/80 was recomputed to \$314.30 by including their 1979 earnings. Their PIA in 11/80 was \$359.30. In 7/81 they became reentitled to DIB, based on an onset date of 6/15/81. Due to the recomputation, the DIB guarantee PIA is larger than the PIA determined under any other method.

Since Edna was entitled to DIB in the 12-month period preceding their current eligibility and their prior eligibility is after 1978, the bend point formula applicable to the prior DIB eligibility year is used to compute the family maximum. The 1979 formula is applied to the PIA applicable in the last month of prior DIB entitlement.

\$359.30 - \$332.00 = \$27.30

\$27.30 x 1.34 = \$36.58

\$36.58 + \$622.44 = \$659.02 rounded to \$659.10

Edna is reentitled to benefits within the 12 months following their last month of previous DIB entitlement. The 6/81 COL increase is applied to the basic maximum to determine the family maximum in 7/81.

If Edna is insured in 7/81, without considering the prior period of disability, a maximum must also be computed using the bend point formula applicable to the current eligibility year. The 1981 formula is applicable to the PIA applicable in the last month of prior DIB entitlement.

\$359.30 - \$270.00 = \$89.30

\$89.30 x 2.72 = \$242.89

\$242.89 + \$405 = \$647.89 rounded to \$647.90

Because of Edna's reentitlement within the 12 months following their last month of entitlement to the previous DIB, the 6/81 COL increase would be applied to the basic maximum computed under the 1981 bend point formula. The family maximum in 7/81 is \$659.10 increased by the 6/81 COL increase, since it result in the larger family maximum.

Example 2.

Matthew Barrett, DOB 3/23/18, was entitled to DIB from 10/75 through 3/79. based on an onset date of 4/15/75. Their DIB PIA was recomputed in 1/79 to include their 1978 earnings. Their DIB PIA in 3/79 was \$341.10. On May 12, 1980, Matthew filed for reduced RIB. Their RIB MOET is 5/80. Due to the recomputation the DIB guarantee PIA is larger than the PIA determined under any other applicable method.

In determining the family maximum, the 1980 bend point formula is applied to the DIB PIA in 3/79 (see RS 00615.736B.1.a.(1) .)

\$341.10 - \$248 = \$93.10

\$93.10 x 2.72 = \$253.23 + 372 = \$625.23 rounded to \$625.30.

Since Matthew became entitled to RIB more than 12 months after their last month of entitlement to DIB, the intervening COL increase for 6/79 is not added to the PIA or family maximum. The RIB PIA in 5/80 is \$341.10 and the family maximum is \$625.30.

Example 3.Allen Snyder was last entitled to DIB in 10/79. They became entitled to RIB at age 62 in 12/80. Their DIB PIA in 10/79 is \$423.70. Since this prior DIB PIA is higher than the PIA's computed by an other methods, their PIA in 12/80 is \$423.70 (no intervening increases, i.e., 6/80, are applicable.) In determining the family maximum the 1980 bend point formula is applied to the DIB PIA in the last month of entitlement. The family maximum in 12/80 is \$759.30 (no intervening increases, i.e., 6/80 are applicable).

Be sure to round the final figure to the next higher multiple of \$.10 if not an even multiple of \$.10.

Do not round at intermediate steps.

 To Link to this section - Use this URL: http://policy.ssa.gov/poms.nsf/lnx/0300615736 RS 00615.736 - Determining Maximum Family Benefits Effective January 1979 - 12/14/2023 Batch run: 12/14/2023 Rev:12/14/2023