[Code of Federal Regulations]

[Title 20, Volume 1]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 20CFR228.14]



[Page 469-470]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 228_COMPUTATION OF SURVIVOR ANNUITIES--Table of Contents

 

                 Subpart B_The Tier I Annuity Component

 

Sec.  228.14  Family maximum.



    (a) Family maximum defined. Under the Social Security Act, the 

amount of total monthly benefits that can be paid for any month on one 

person's earnings record is limited. This limited amount is called the 

family maximum. The family maximum is based on the survivor tier I PIA 

(see part 225 of this chapter). Generally, if three or more persons are 

entitled to benefits, their benefits will be adjusted for the family 

maximum.

    (b) Computation of the family maximum--(1) The employee attains age 

62, has a period of disability or dies prior to 1979. The maximum is the 

amount appearing in column V of the applicable table published each year 

by the Secretary of Health and Human Services on the line on which 

appears in column IV the primary insurance amount of the insured 

individual whose compensation is the basis for the benefits payable. 

Where the total of the survivor benefits exceeds the maximum, the total 

tier I benefits for each month after 1964 are reduced to the amount 

appearing in column V. Each survivor's benefit is proportionately 

reduced, based on the percentage of the PIA used to compute the survivor 

benefits. However, when any of the persons entitled to benefits on the 

insured individual's compensation would, except for the limitation 

described in Sec.  404.353(b)



[[Page 470]]



of title 20 (dealing with the entitlement to more than one child's 

benefit), be entitled to a child's annuity on the basis of the 

compensation of one or more other insured individuals, the total 

benefits payable may not be reduced to less than the smaller of--

    (i) The sum of the maximum amounts of benefits payable on the basis 

of the compensation of all such insured individuals, or

    (ii) The last figure in column V of the applicable table published 

each year by the Secretary of Health and Human Services. The 

``applicable table'' refers to the table which is effective for the 

month the benefit is payable.

    (2) The employee attains age 62, has a period of disability or dies 

in 1979. The maximum is computed as follows:

    (i) 150 percent of the first $230 of the individual's primary 

insurance amount, plus

    (ii) 272 percent of the primary insurance amount over $230 but not 

over $332, plus

    (iii) 134 percent of the primary insurance amount over $332 but not 

over $433, plus

    (iv) 175 percent of the primary insurance amount over $433.



If the total of this computation is not a multiple of $0.10, it will be 

rounded to the next lower multiple of $0.10.

    (3) The employee attains age 62, or has a period of disability or 

dies after 1979. The maximum is computed as in paragraph (b)(2) of this 

section. However, the dollar amounts shown there will be updated each 

year after 1979 as average earnings rise. This updating is done by first 

dividing the average of the total wages for the second year before the 

individual dies or becomes eligible, by the average of the total wages 

for 1977. The result of that computation is then multiplied by each 

dollar amount in the formula in paragraph (b)(2) of this section. Each 

updated dollar amount will be rounded to the nearer dollar, if the 

amount is an exact multiple of $0.50 (but not of $1), it will be rounded 

to the next higher $1. Before November 2 of each calendar year after 

1978, the Secretary of Health and Human Services will publish in the 

Federal Register the formula and updated dollar amounts to be used for 

determining the monthly maximum for the following year.

    (c) Special minimum PIA. Regardless of the method used to compute 

the primary insurance amount, if the special minimum primary insurance 

amount described in Sec.  404.261 to this title is higher, then the 

family maximum will be based upon the special minimum primary insurance 

amount.