Computation of Family Maximum (FM)

The maximum family benefit is the maximum monthly amount that can be paid on a worker’s earnings record. The following, however, is devoted to the more common family maximum for retirement and survivor benefits.

Special formula for computing the maximum benefits payable to the family of a disabled worker. Benefits are payable to spouses and children of disabled workers, but such benefits are limited. The family maximum for a family of a disabled worker is 85 percent of the worker’s Average Indexed Monthly Earnings (AIME). However, it cannot be less than the worker’s PIA nor more than 150 percent of the PIA. [www.ssa.gov/oact/COLA/dibfamilymax.html]

Steps for computing the Family Maximum Benefit
Step 1. Segregate the Primary Insurance Amount from the bend point table.
Step 2. Compute the family maximum.

Computation of Family Maximum Benefit [www.ssa.gov/oact/COLA/familymax.html]

(4) From To PIA Fam Max
150% 1 1,184 1,184 1,776
272% 1,185 1,708 524 1,425
134% 1,709 2,228 520 697
175% 2,229 633 1,108
Total 2,861 5,006
Fam Max / PIA Percentage 175%

(4) Benefit Formula Bend Points: [www.ssa.gov/oact/COLA/bendpoints.html]
(5) Formula for Family Maximum Benefit [www.ssa.gov/oact/COLA/familymax.html]

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