TN 10 (03-04)

A. Policy

The family maximum for a Totalization benefit is always based on the pro rata primary insurance amount (PIA).

B. Procedure – retirement or survivor claims

The following explains how to determine Totalization family maximums in retirement or survivor claims.

1. Eligibility Before 1979 and Pro Rata PIA is Below Table Minimum

• Multiply pro rata PIA by 1.5 (150%)

• Round to an even multiple of 10 cents

  • Round up if effective date is prior to 6/82

  • Round down if effective date is after 5/82

2. All Other Cases

Follow the rules in RS 00615.730 – RS 00615.801. Assume that references to “PIA” mean “pro rata PIA.”

C. Procedure – disability claims

1. General

If a disability family maximum is applicable (see RS 00615.740), establish the maximum as the lesser of:

• 150% of the raw pro rata PIA, or

• 85% of an artificial average indexed monthly earnings (AIME) that would produce a PIA equal to the raw pro rata PIA.

Exception: If the amount established above is less than the pro rata PIA, the disability family maximum will be the pro rata PIA.

Apply cost-of-living adjustments (COLAs) to disability family maximums unless a recomputation is involved. If a recomputation is involved, determine the new raw family maximum and apply COLAs to the new raw family maximum.

2. Determining the artificial AIME

Use the following formulas to determine the artificial AIME based on the pro rata PIA where:

F = the first PIA bend point for the eligibility year

S = the second PIA bend point for the eligibility year

P = the raw pro rata PIA

3. Rounding

If the first eligibility year is:

• before 1983, round artificial AIME down to the next dollar if it is not already a multiple of $1.

• after 1982, round artificial AIME up to the next dollar if it is not already a multiple of $1.