Three children of Don and Wilma Kessler are eligible for life auxiliary benefits on
both their records. Another child of Don's from a prior marriage to Agnes (now deceased)
is eligible on both their records but not on Wilma's record. Therefore, this is not
a triple entitlement situation. However, there are two possible combined family maximums.
We can combine the maximums from SSN 1 and SSN 2 on SSN 1 or we can combine the maximums
from SSN1 and SSN 3 on SSN 1. The larger of the two is the one that will be used to
compute the benefits payable to the children. Because whichever combined maximum we
choose will be on SSN 1 we can only have one combined maximum using only two of the
maximums involved. If any child was entitled on all three records we could combine
all three maximums in SSN 1. (See Example 2 for that scenario and see Example 3 for
a scenario where we have three records with two combined maximums.)
The PIAs, maximums, and original rates on the three SSNs are as follows.
|
SSN 1 Don
|
SSN 2 Wilma
|
SSN 3 Agnes
|
PIA
|
$410.20
|
$206.70
|
$209.10
|
Maximum
|
$744.10
|
$310.10
|
$313.70
|
Original Benefit
|
$205.10 (50%)
|
$103.40 (50%)
|
$156.80 (75%)
|
The maximums are combined as follows:
1. Don and Wilma — $744.10 +$310.10 = $1,054.20
2. Don and Agnes — $744.10 +$313.70 = $1,057.80
The children of Don and Wilma Kessler are entitled on both SSN 1 and SSN 2 which results
in combination 1. above. However combination 2 is higher. Since Don's child by the
previous marriage is also entitled on Don's record, that child will share in the combined
family maximum.
The higher combined family maximum is $1,057.80. The children's benefits will be computed
using this combined maximum. Since Don's record has the higher PIA, the children will
be paid on their record. All the children entitled on Don's SSN will share in the
combined family maximum.
744.10
|
SSN 1 maximum
|
+ 313.70
|
SSN 3 maximum
|
1,057.80
|
Total
|
- 410.20
|
Life PIA
|
647.60
|
Remainder
|
divided by 4
|
Number of children
|
161.90
|
Amount per child
|
x 4Cs
|
Number of children
|
647.60
|
Total to children
|
+ 410.20
|
Life PIA
|
1,057.80
|
Total payable to family
|
However, there is another possibility. The fourth child, eligible on Agnes' SSN, need
not file on Don's SSN. If this child is restricted to entitlement on Agnes' SSN only,
the original benefit of $156.90 will be paid on the SSN. The maximums will then be
combined on Don's and Wilma's SSN as follows:
744.10
|
SSN 1 maximum
|
+ 310.10
|
SSN 2 maximum
|
1,054.20
|
Total
|
- 410.20
|
Life PIA
|
644.00
|
Remainder
|
divided by 3
|
Number of children
|
214.60
|
Reduced to $205.10, the original benefit rate on Don's SSN
|
205.10
|
|
x 3Cs
|
Number of children
|
615.30
|
Total to children
|
+410.20
|
Life PIA
|
1,025.50
|
Total payable on this record
|
+ 156.80
|
Amount payable to other C
|
1,182.30
|
Total payable to family
|
This alternative appears to be more advantageous to the family as a whole. However,
before advice is given to restrict an application to one SSN see RS 00203.060.