A worker passed away in February 1961, survived by his wife and two children. In March 1961, the two children applied for and began receiving children’s social security benefits based on their deceased father’s earnings record.

The worker’s primary insurance amount was $85 per month. Children’s social security benefits were equal to 75% of the worker’s primary insurance amount. Each child was therefore entitled to $63.75 per month, rounded up to the nearest dime (social security apparently does’t like nickels — after all, to borrow a phrase coined by Yogi Berra, “a nickel ain’t worth a dime anymore “).

Each child received $63.80 from March 1961 through February 1962. In March 1962, the worker’s widow, W, applied for mother’s social security benefits based on her deceased husband’s earnings record. Why she waited so long after her husband’s death to apply, I don’t know. But she was entitled to benefits retroactive to no more than twelve months prior to the date of her application.

Mother’s social security benefits are also equal to 75% of the worker’s primary insurance amount. However, there is a family maximum amount of benefits that can be paid on one worker’s earnings record. The amount of the family maximum depends on the worker’s primary insurance amount. It is usually between 150% and 180% of the primary insurance amount. For the primary insurance amount of $85 at the time, the family maximum amount was $165.60.

If the total amount of benefits payable each month exceeds the family maximum amount, then each benefit must be proportionately decreased (except old age or disability benefits).

However, because the children’s benefits had already been paid from March 1961 through February 1962, the mother’s benefits for those months was $38 per month ($63.80 + $63.80 + $38 = $165.60, the family maximum amount).

In March 1962, all three beneficiaries (W and her two children) received $55.20 (3 x $55.20 = $165.60, the family maximum amount).

In April 1962 the oldest child attained 18 years of age and, because he was not under a disability, his benefits stopped. Beginning in April 1962, W and her remaining minor child received $63.80 apiece. They were each able to receive the full benefit amount of 75% of the worker’s primary insurance amount because their combined benefits ($63.80 x 2 = $127.60) were under the family maximum amount of $165.60.

See Social Security Ruling (SSR) 63-4.

This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.