SSR 63-4: SECTIONS 202(J)(1) AND 203(a). -- BENEFIT AMOUNTS -- REDUCTION FOR MAXIMUM -- ADJUSTMENT REQUIRED FOR RETROACTIVE MONTHS

20 CFR 404.404

SSR 63-4

A worker died in February 1961, survived by his widow W, age 51, and by

two children under age 18. The worker's primary insurance amount was $85,

based on his average earnings. Each of the two children became entitled to

child's insurance benefits of $63.80 beginning February 1961. The widow,

W, did not file application for mother's insurance benefits until March

1962, although she had since the worker's death been eligible for such

benefits (that is, met all requirements for entitlement to mother's

insurance benefits other than the filing of an application). When she

filed, both children's benefits had been paid for the months February 1961

through February 1962.

In April 1962 the older child attained age 18. Since he was not under a

disability (as defined in section 223(c) of the Act), his entitlement to

benefits under section 202(d) ended with March 1962, the month before the

month in which he attained age 18.

The issues to be resolved are: what is the first month for which W is

entitled to mother's insurance benefits; what is the amount of such

benefits; and what is the effect, if any, of her entitlement and of the

termination of the older child's entitlement upon other benefits?

Section 202(j)(l) provides, in effect, as follows: a person filing

application in a month may become entitled to benefits under section 202

for each of the preceding 12 months in which he would have been entitled

to the benefits if application had been filed in such preceding month.

However, a benefit for any month before the month in which application is

filed must be reduced to any extent necessary so as not to render

erroneous any other benefit already certified for payment before the

application was filed.

section 202

for each of the preceding 12 months in which he would have been entitled

to the benefits if application had been filed in such preceding month.

However, a benefit for any month before the month in which application is

filed must be reduced to any extent necessary so as not to render

erroneous any other benefit already certified for payment before the

application was filed.

W had met all requirements for mother's insurance benefits, except for

the filing of an application, from the date of the worker's death in

February 1961. Accordingly, under section 202(j)(1) when she filed

application in March 1962 she became entitled to benefits beginning March

1961, the 12th month before the month of filing.

Section 202(g) provides that the amount of a mother's insurance benefit

is three-fourths of the deceased worker's primary insurance amount, the

same as the amount of a surviving child's insurance benefit under section

202(d). Under section 215(g), any benefit which is not a multiple of 10

cents must be raised to the next higher multiple of 10 cents. Accordingly,

the benefits of W and the two children would be $63.80 each for all months

of entitlement (since three-fourths of $85, the deceased worker's primary

insurance amount, is $63.75, which amount must be raised to $63.80).

However, section 203(a) of the Act limits the total amount of benefits

payable on a worker's earnings record to a maximum, the amount of which

depends upon the worker's primary insurance amount; when the total of all

benefits for a month exceeds the maximum, each benefit for that month

(except an old-age or disability insurance benefit) shall be

proportionately decreased. For a primary insurance amount of $85, the

maximum payable is $165.60.

t of benefits

payable on a worker's earnings record to a maximum, the amount of which

depends upon the worker's primary insurance amount; when the total of all

benefits for a month exceeds the maximum, each benefit for that month

(except an old-age or disability insurance benefit) shall be

proportionately decreased. For a primary insurance amount of $85, the

maximum payable is $165.60.

The children's benefits for March 1961 through February 1962 had been

certified for payment, and in fact had been paid, at the rate of $63.80

per month ($127.60 total per month) before W filed her application. Under

section 202(j)(1), W's benefits for those months must therefore be reduced

to $38 per month so as not to render erroneous the children's benefits for

those months. ($165.60, the maximum, minus $127.60 equals $38.)

The children's benefits are protected by the provisions of section

202(j)(1) only for months before March 1962, the month in which W filed

her application. Effective with that month, the benefit amount for each

person entitled must be proportionately reduced under section 203(a) from

$63.80 to $55.20 each (one-third of $165.60, the maximum), for each month

in which benefits are payable to all three beneficiaries.

Since the older child's benefits ended with March 1962, beginning April

1962 only W and the younger child are entitled to benefits on the deceased

worker's earnings record. The total of benefits beginning April 1962 is

now $127.60 (two times $63.80). This amount being less than the maximum of

$165.60, reduction under section 203(a) is no longer necessary; W and the

younger child may be paid benefits of $63.80 each, beginning April

1962.

62, beginning April

1962 only W and the younger child are entitled to benefits on the deceased

worker's earnings record. The total of benefits beginning April 1962 is

now $127.60 (two times $63.80). This amount being less than the maximum of

$165.60, reduction under section 203(a) is no longer necessary; W and the

younger child may be paid benefits of $63.80 each, beginning April

1962.

It is there held that the two children's benefits for March 1961 through

February 1962, certified for payment at the rate of $63.80 each per month

before W filed her application in March 1962, are not affected by W's

entitlement, and for those months her benefit must be reduced to $38 per

month; and that for March 1962 all three must be reduced to $55.20 each;

and that beginning April 1962, since the older child is no longer entitled

to benefits, the mother's and the younger child's benefits will be $63.80

each.