Formula for Family Maximum Benefit

The maximum family benefit is the maximum monthly amount that can be paid on a worker's earnings record. There is a special formula for computing the maximum benefits payable to the family of a disabled worker. The following, however, is devoted to the more common family maximum for retirement and survivor benefits.

Computation of the Retirement and Survivor Family Maximum
The formula used to compute the family maximum is similar to that used to compute the Primary Insurance Amount (PIA). The formula sums four separate percentages of portions of the worker's PIA. For 2010 these portions are the first $972, the amount between $972 and $1,403, the amount between $1,403 and $1,830, and the amount over $1,830. These dollar amounts are the "bend points" of the family-maximum formula. Thus, the family-maximum bend points for 2010 are $972, $1,403, and $1,830. See table showing bend points for years beginning with 1979 (table also shows PIA formula bend points).

For the family of a worker who becomes age 62 or dies in 2010 before attaining age 62, the total amount of benefits payable will be computed so that it does not exceed:

(a) 150 percent of the first $972 of the worker's PIA, plus

(b) 272 percent of the worker's PIA over $972 through $1,403, plus

(c) 134 percent of the worker's PIA over $1,403 through $1,830, plus

(d) 175 percent of the worker's PIA over $1,830.

Determination of family-maximum bend points for 2010