[Code of Federal Regulations]
[Title 20, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR228.14]

[Page 471-472]
 
                      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 472]]

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.