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1010.5 SSA Family Maximum Defined

The Social Security Act limits the amount of monthly benefits which can be paid for any 

month on an employee's earnings record. The limited amount is called the SSA Family 

Maximum. This chapter explains the various SSA Family Maximums.

The 1980 SS Act amendments established a separate family maximum computation for 

disability O/M cases when the disability onset date is after 1978 and the DIB O/M 

effective date is 7-1-80 or later (see FOM-I-1010.35). Before 7-1-80, age and service 

and DIB O/M SSA family maximums were the same.

Under the RR Act, survivor benefits or retirement O/M benefits will usually be reduced 

to the SSA family maximum if:

A. Three or more individuals are included in the family group, or

B. Two persons are included in the family group, and

• One of them is an aged or disabled widow(er), or

• It is a disability case and the onset date is after 1978 and the DIB O/M 

effective date is 7-1-80 or later.

NOTE: Divorced spouses and surviving divorced spouses are not considered 

in the SSA family maximum. Surviving divorced mothers/fathers and 

remarried widow(er)s are considered in the SSA family maximum.

1010.10 Table PIA Maximum

The PIA for an employee who attained age 62, became disabled or died before 1979 is 

based on his average monthly earnings and is determined from a table defined in the 

SS Act. The SSA family maximums for employees eligible before 1979 are also found 

in this table in the law.

From 1971-1978, the table PIA maximums were increased with each amendment 

increase. After 1978, the automatic COL increases also increase the table PIA 

maximums because the employee was eligible before 1979.

A summary of the table PIAs and current maximums is found in Appendix A to this 

article.
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1010.15 Special Minimum PIA Maximum

1010.15.1 Prior to 1-1979

If the special minimum PIA applied prior to 1-1-79, the monthly SPC MIN maximum was 

the table maximum indicated in the AMW PIA table for the AMW PIA that is either equal 

to the SPC MIN PIA or immediately greater than the SPC MIN PIA.

1010.15.2 1-1979 or Later

Effective 1-1979, the special minimum PIA table maximums are published separately 

from the AMW PIA tables. The 1980 Social Security Disability amendments later 

excluded from the family maximum computation, disability annuitants whose onset date 

is 1978 or later and whose DIB O/M effective date is July 1980 or later. The SPC MIN 

PIA family maximum tables continue to apply for survivor and disability cases payable 

prior to 7-1-80 with onset after 1978.

The 1981 SS amendments retained the special minimum provision.

1010.15.3 Summary of SPC MIN PIA Maximums

A summary of SPC MIN PIA family monthly maximums is found in Appendix B to this 

article.

1010.20 Basic Family Maximum Benefit for AIME Or TRANS PIA

The 1977 SS Act amendments established a four-step formula to compute the family 

maximum benefit for the AIME PIA or TRANS PIA for all employees who have an 

eligibility year of 1979 or later. The 1980 Social Security Disability amendments later 

excluded from this family maximum computation disability annuitants whose first 

eligibility is after 1978 and whose first month of entitlement to the DIB O/M payment is 

July 1980 or later (see FOM-I-1040.5.9). The formula continues to apply for age and 

service cases, survivor cases, disability cases payable prior to 7-1-80 with onset after 

1978 and disability entitlement cases payable 7-1-80 or later in which disability benefits 

were previously paid before 7-1-80.

Under this family maximum computation, the percentages in the formula are constant 

but the amounts, "bend points," in each step will be adjusted each year as average 

wages rise. The "bend points" will be published by SSA in November before the 

eligibility year to which they apply.

The AIME, TRANS or "1977 old start" family maximum benefit is determined with "bend 

points" based on the benchmark year regardless of date of filing. When the date of 

entitlement is on or after the tier I cost-of-living increase effective date in the benchmark 

year, a cost-of-living percentage increase is applied to the initial family maximum benefit 

amount. Subsequent cost-of-living percentage increases are payable from the 

benchmark year.
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AIME, TRANS or 1977 old start PIAs for eligibility years before 1982, if not a multiple of 

$0.10, are rounded up to the next higher multiple of $0.10 in the initial computation and 

any recomputation or cost-of-living increase through 5-31-82. Effective with the 6-1-82 

COL adjustments to these PIAs, if the result is not a multiple of $0.10, it is rounded 

down to the next lower multiple of $0.10.

The family maximum benefit computed for PIA #9 for eligibility years 1982 or later is 

subject to the 1981 SS Act amendments from the initial computation. Add the results of 

the calculations listed below together. If the result is not a multiple of $0.10, it is 

rounded down to the next lower multiple of $0.10.

Click here for a chart of the bend points used to calculate family maximum benefits for 

each year since 1979.

1010.25 Benefit Conversion And Cost-Of-Living Savings Clause 

Family Maximums

When the SS Act was changed to add new categories of beneficiaries or to increase 

benefits, "savings clauses" were included to prevent the reduction of the benefits of 

persons already on the rolls or to make sure they received the full, intended increase.

1010.25.1 Benefit Conversion Savings Clause

Prior to the 1971 Social Security Act amendments, the SSA table maximums were not 

always increased by the same percentage as the PIA increase. The amendments that 

increased the SSA Act benefits in 1972 and earlier, provided for a benefit conversion 

savings clause that guaranteed the family group on the rolls the same percentage 

increase in the amount of the family monthly maximum as the regular PIA increase for 

the same years.

1010.25.2 Cost-of-Living Savings Clause

The 1972 amendments to the Social Security Act established a cost-of-living savings 

clause which guaranteed the family group the full amount of any percentage increase to 

the previous family monthly maximum amount whenever a cost-of-living or general 

benefit increase occurred provided:

• Two or more persons currently included in the computation were included in the 

family group for 1-1971 or any prior month based upon an application filed (or 

deemed to be filed) on or before 2-1-71; and,

• The family monthly maximum was in effect for such months; and,

• A prior savings clause maximum is in effect in the month before the cost-of-living 

increase.
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Click here for a chart of the cost-of-living percentage increases that have been paid to 

date.

This guaranteed amount could be payable under the SSA formula until:

• A table maximum for a new PIA is higher (e.g., recomputation); or,

• A new cost-of-living savings clause maximum is established for a subsequent year; 

or,

• The family group is no longer subject to the family monthly maximum (although the 

savings clause may re-apply later).

1010.25.3 Computation of Savings Clause Family Maximum

In 1974 Railroad Retirement Act cases, the savings clause rates are determined by 

increasing each beneficiary's rounded pre-COL original or reduced for maximum rate in 

the month of the cost-of-living increase by the COL percentage. The result is then 

rounded if necessary to end in $0.10. If the sum of the rounded increased original or 

reduced for maximum rates exceeds the table maximum, it is considered a savings 

clause maximum.

1010.25.4 The Family Payment Savings Clause

A. General - The Family Payment Savings clause guarantees that total family 

benefits are not decreased due to a PIA increase. The savings clause protection 

is maintained even when the family composition changes, as long as the 

maximum still applies. 

The Family Payment Savings clause can apply in any case in which benefits are 

limited to the family monthly maximum.

B. Computation of Family Payment Savings Clause - The Family Payment Savings 

clause originally computed under the 1969 Social Security Act amendments was 

determined by computing the total monthly benefits payable under the SS Act 

under the 1967 and the 1969 amendments. The higher of the two amounts was 

payable to the family group.

Under the July 1972 SS Act amendments, the total monthly benefits on the 

earnings record under the increased PIA are adjusted by the amount which will 

assure that the total monthly payment (after reduction for the maximum and for 

age) is not less than the total monthly benefits (after reduction for the maximum 

and for age) for the month immediately preceding the month of the PIA increase.

1010.25.5 Redetermination Savings Clause

The October 1972 amendments to the Social Security Act established a 

Redetermination Savings clause for survivor cases in which the widow(er) is included in 
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a family in both 12-1972 and 1-1973 and the benefits of the family require a reduction 

for the family maximum. Under this savings clause, other beneficiaries will not have 

their benefits decreased because the widow(er)'s benefit was increased in 1-1973.

1010.30 Combined Family Maximum Amount

If a child is entitled to benefits as a child on two wage records, a combined family 

maximum may apply. All children eligible on the same earnings records must be 

handled as an indivisible group. If children are eligible on both their mother's and 

father's earnings records, all of the children must be actually entitled on one parent's 

earnings record.

When a combined maximum is initially established it equals the sum of the table or 

formula family maximums (not savings clause maximums) on the earnings records on 

which the child is simultaneously entitled. The combined maximum cannot exceed:

• The highest possible table maximum when all the PIAs are AMW PIAs (i.e., eligibility 

before 1979). The combined maximum can be changed by both COL increases and 

any increase in the PIA table in January.

• 1 3/4 times the AIME PIA based on an AIME based on the current monthly 

creditable tier I earnings, using the bend points for the year for which the maximum 

is being computed, when one or more of the PIAs is an AIME or TRANS PIA. Once 

the combined maximum is determined, it will be changed only by COL increases.

1010.35 Family Maximum Benefit For Disability Cases Under 1980 SS 

Act Amendments

Prior to the 1980 Social Security Disability amendments, the computation of the family 

maximum was the same for both age and service and disability cases.

Under the 1980 Social Security Act disability amendments, the total family benefits of 

disability claimants whose first eligibility is after 1978 and whose first month of 

entitlement to the DIB O/M payment is July 1980 or later are limited as follows:

A. Payments based on AIME PIA - This comparison is made based on the AIME. 

The DIB O/M MAX is 85% of the employee's average indexed monthly earnings 

(AIME), but not less than 100% of the employee's AIME PIA, nor more than 

150% of the employee's AIME PIA.

The SSA family maximum is determined based upon the eligibility year 

(benchmark year) regardless of the date of filing. When the date of entitlement is 

on or after the tier I cost-of-living increase effective date in the benchmark year, a 

cost-of-living percentage increase is applied to the initial family maximum benefit 

amount. Subsequent COL percentage increases are payable from the eligibility 

year.
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B. Payments based on SPC MIN PIA - This comparison is based on the actual PIAs 

effective on the DIB O/M effective date (including cost-of-living). The DIB O/M 

MAX is the smaller of:

• 85 percent of the AIME multiplied by the percentages of all intervening COL 

increases up to the DIB O/M effective date, but no less than the SPC MIN PIA 

on the DIB O/M effective date; or,

• 150 percent of the SPC MIN PIA effective on the DIB O/M effective date.

After the DIB O/M MAX is determined, subsequent percentage cost-of- living 

increases are applied to both the PIA and the DIB O/M MAX amounts.

Effective 9-1-81 or later, if the result of the DIB O/M MAX computation is not a 

multiple of $0.10, it is rounded down to the next lower multiple of $0.10.

If the PIA is recomputed, the above tests are also applied to the new PIA.

The DIB O/M MAX will apply for eligible family groups until the employee dies or 

becomes entitled to an age and service O/M. At that time, the regular family 

maximum can apply.

In the case of an employee who is entitled to either a reduced age and service

O/M or DIB O/M which begins July 1, 1980, or later, based on first eligibility after 

1978, BRB will determine if the age and service monthly family maximum would 

provide a higher rate. If it does, BRC will send an assignment requesting you to 

explain this to the employee and to give the employee the opportunity to elect a 

reduced age and service O/M. If the A&S O/M is elected, entitlement to the 

disability freeze is still applicable for Medicare purposes.