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]
|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]