# SSR 62-7: SSR 62-7. REDUCTION OF BENEFITS AND AMOUNT OF DEDUCTION WHERE FAMILY MAXIMUM INVOLVED

> Federal · Rulings · In force

URL: https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_7

## Section

- **Citation:** SSR 62-7
- **Heading:** SSR 62-7. REDUCTION OF BENEFITS AND AMOUNT OF DEDUCTION WHERE FAMILY MAXIMUM INVOLVED
- **Jurisdiction:** Federal
- **Kind:** Rulings
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Social Security Rulings / OASI / Reduction of Insurance Benefits / SSR 62-7

## Text

The worker died in December 1960 at age 51, survived by a widow, W, and
two children under age 18. In January 1961 the widow filed claim for, and
established entitlement to, mother's insurance benefits for herself and
child's insurance benefits for each of the children, effective December
1960. The worker's primary insurance amount, based on his average monthly
wage, is $119. Sections 202(g) and (d) of the Act provide that the amount
of a mother's insurance benefit and (for months after November 1960) the
amount of a child's insurance benefit on the earnings record of a deceased
worker is three-fourths of the worker's primary insurance amount. Under
section 215(g), all benefits which are not a multiple of 10 cents must be
rounded to the next higher multiple of 10 cents. Accordingly, W and each
child would appear to be entitled to a benefit of $89.25 rounded to
$89.30. However, section 203(a) of the Act limits the total amount of
benefits which persons may receive on any worker's earnings record to a
family maximum, the amount of which depends upon the primary insurance
amount. For a primary insurance amount of $119 the family maximum is $254.
Therefore, the original benefit of $89.30 for each beneficiary must be
reduced to $84.67 (one-third of $254) and this amount must be raised to
$84.70. Consequently, W and each child were awarded adjusted monthly
benefits of $84.70 effective December 1960.
mum, the amount of which depends upon the primary insurance
amount. For a primary insurance amount of $119 the family maximum is $254.
Therefore, the original benefit of $89.30 for each beneficiary must be
reduced to $84.67 (one-third of $254) and this amount must be raised to
$84.70. Consequently, W and each child were awarded adjusted monthly
benefits of $84.70 effective December 1960.

In April 1961, W notified the Bureau that she had found employment and
would be earning wages of over $100 per month beginning with April, and
expected her earnings for 1961 to be at least $2,500. Therefore, her
benefit for each such month would be subject to a work deduction. A
determination as to deductions for 1961 will be made after the end of the
year when the exact amount of W's earnings for the year and for each month
after March can be ascertained. Meanwhile, an amount equal to the expected
deduction must be withheld from her benefit for April and each succeeding
month of 1961.

The deduction for April and subsequent months of 1961, on the basis of
W's expected earnings, would, under section 203(b), be equal to the amount
of her benefit of $84.70 for each month. However, under section 203(a),
where the total benefits must be reduced because of the maximum payable to
a family on one earnings record, the reduction is made only after any
necessary deductions have been applied; that is, in determining whether
benefits must be reduced and, if so, how much, only those benefits will be
considered which are payable after deductions have been imposed. This
means that, beginning April, only the benefits of the two children are
considered in determining the effect of the maximum provision in section
203(a). The children's original benefits total $178.60 (2 times $89.30),
and this amount does not exceed the maximum of $254
d and, if so, how much, only those benefits will be
considered which are payable after deductions have been imposed. This
means that, beginning April, only the benefits of the two children are
considered in determining the effect of the maximum provision in section
203(a). The children's original benefits total $178.60 (2 times $89.30),
and this amount does not exceed the maximum of $254. Thus under the
circumstances described above, it might appear that beginning April 1961
each child would receive benefits of $89.30 per month, and their mother,
W, would receive no benefits.

However, section 203(i) provides that deductions shall be made only to
the extent that they reduce the total of benefits which would otherwise be
payable on the same earnings record to persons living in the same
household. Since W and her two children live in the same household, this
provision is applicable. The total amount which would be payable to those
living in the household is $178.60, the amount that would be payable to
the children during W's employment but for section 203(i). Under section
203(i), the two children would continue to receive $169.40 ($84.70 each)
per month, as before W's employment began, and W would be paid a partial
benefit of $9.20 per month, which is the difference between $178.60 and
$169.40. Thus the amount which will be paid to each child remains $84.70
whether or not W's benefit is subject to deduction.

Accordingly, it is held that W and the two children may each
receive benefits of $84.70 per month for months in which no beneficiary is
subject to a deduction under section 203; and that, for months during
which they are all entitled and living in the same household and W is
subject under section 203 to a deduction of the full amount of her
benefit, the amount paid to the children will not be affected and W will
receive benefit payments of $9.20 per month.

## Nearby sections

- [SSR 60-26 SSR 60-26. EARNINGS -- CHRISTMAS CASH BONUS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_60_26.md)
- [SSR 61-40 SSR 61-40. EFFECT OF SOLDIERS' AND SAILORS' CIVIL RELIEF ACT](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_40.md)
- [SSR 61-57 SSR 61-57. COMPUTATION OF EARNINGS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_57.md)
- [SSR 61-60 SSR 61-60. COMPUTING TIME PERIOD FOR REOPENING DETERMINATION](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_60.md)
- [SSR 62-7 SSR 62-7. REDUCTION OF BENEFITS AND AMOUNT OF DEDUCTION WHERE FAMILY MAXIMUM INVOLVED](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_7.md)
- [SSR 62-8 SSR 62-8. WORK DEDUCTIONS -- PARTNERSHIP -- HUSBAND AND WIFE](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_8.md)
- [SSR 62-9 SSR 62-9. WORK DEDUCTIONS -- RETIREMENT PAY](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_9.md)
- [SSR 62-10 SSR 62-10. WORK DEDUCTIONS -- VACATION PAY](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_10.md)
- [SSR 62-60 SSR 62-60: RESCINDED 1989](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_60.md)
- [SSR 62-61 SSR 62-61: Rescinded 1984](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_61.md)
- [SSR 64-38c SSR 64-38c: SECTIONS 203 and 211. -- WORK DEDUCTIONS -- SUBSTANTIAL SERVICES IN SELF-EMPLOYMENT -- TRANSFER OF BUSINESS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_64_38c.md)
- [SSR 64-58 SSR 64-58: SECTIONS 203(b) and (f). -- WORK DEDUCTIONS -- EXCESS EARNINGS IN YEAR ENTITLEMENT TERMINATES](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_64_58.md)
- [SSR 65-6 SSR 65-6: SECTION 203. -- NET EARNINGS FROM SELF-EMPLOYMENT -- SUBSTANTIAL SERVICES FOR DEDUCTION PURPOSES](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_65_6.md)
- [SSR 65-23c SSR 65-23c: SECTIONS 203(b) and (f) and 211. -- WORK DEDUCTIONS -- TRANSFER OF BUSINESS -- SUBSTANTIAL SERVICES IN SELF-EMPLOYMENT](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_65_23c.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_7. Check the current official text before relying on it. Not legal advice.