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 2009 these portions are the first $950, the amount between $950 and $1,372, the amount between $1,372 and $1,789, and the amount over $1,789. These dollar amounts are the "bend points" of the family-maximum formula. Thus, the family-maximum bend points for 2009 are $950, $1,372, and $1,789. 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 2009 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 $950 of the worker's PIA, plus

(b) 272 percent of the worker's PIA over $950 through $1,372, plus

(c) 134 percent of the worker's PIA over $1,372 through $1,789, plus

(d) 175 percent of the worker's PIA over $1,789.

Determination of family-maximum bend points for 2009