SSR 64-16: SECTION 202(b). -- WIFE'S INSURANCE BENEFITS -- BENEFIT AMOUNT WHERE WIFE UNDER 65 IS ENTITLED TO DISABILITY INSURANCE BENEFITS

SSR 64-16

A female worker, R, born April 4, 1899, became entitled to disability

insurance benefits of $40 per month effective November 1960. Her

65-year-old husband, B, filed application for and became entitled to

old-age insurance benefits of $90 per month effective January 1964; and

then R filed application for wife's insurance benefits on B's earnings

record.

Among other requirements for entitlement to wife's insurance benefits,

all of which R met, section 202(b)(1)(C) of the Act states, as pertinent

here, that a wife may be entitled to wife's insurance benefits if she is

not entitled to old-age or disability insurance benefits or is entitled to

old-age or disability insurance benefits based on a primary insurance

amount which is less than one-half of the primary insurance amount of her

husband.

Section 202(b)(2) of the Act states in pertinent part that, except as

provided in subsection (q), a wife's insurance benefit shall be equal to

one-half of the primary insurance amount of her husband for such month. In

this case, one-half of the primary insurance amount of R's husband is

$45.

Section 202(q)(1) of the Act states in pertinent part, that where a

person becomes entitled to wife's insurance benefits for months before the

month in which she attains 65, her benefit amount must be reduced by 25/36

of 1 percent multiplied by the number of months she is under age 65

beginning with the first month for which she is entitled to such benefits.

Her benefit will continue at a reduced rate even after age 65. In this

case, the first month for which R was entitled to wife's insurance

benefits was 3 months before the month in which she would attain age

65.

it amount must be reduced by 25/36

of 1 percent multiplied by the number of months she is under age 65

beginning with the first month for which she is entitled to such benefits.

Her benefit will continue at a reduced rate even after age 65. In this

case, the first month for which R was entitled to wife's insurance

benefits was 3 months before the month in which she would attain age

65.

Section 202(q)(2)(C) states that, for any month such individual is

entitled to a disability insurance benefit, any wife's insurance benefit

to which such individual may be entitled shall be reduced by the amount by

which such benefit would be reduced under paragraph (1) if it were equal

to the excess of such benefit (before reduction under this subsection)

over such disability insurance benefit.

Section 202(k)(3) provides that if an individual is entitled to an

old-age or disability insurance benefit for any month and to any other

monthly insurance benefit for such months, such other insurance benefit

for such month, after any reduction under subsection (q) and any reduction

under section 203(a), shall be reduced, but not below zero, by an amount

equal to such old-age or disability insurance benefit (after reduction

under such subsection (q)). In this case, the wife's insurance benefit to

which R is entitled, $45, must be reduced, after reduction under

subsection (q), by the amount of her disability insurance benefit, $40.

er subsection (q) and any reduction

under section 203(a), shall be reduced, but not below zero, by an amount

equal to such old-age or disability insurance benefit (after reduction

under such subsection (q)). In this case, the wife's insurance benefit to

which R is entitled, $45, must be reduced, after reduction under

subsection (q), by the amount of her disability insurance benefit, $40.

The difference between these amounts is $5; and this is the amount which

would be payable to R if she were age 65 in January 1964. However, since

she was under age 65, the provisions of section 202(q) must be applied in

figuring the amount of her wife's insurance benefit. Under the provisions

of that section, the $5 (wife's insurance benefit) that would otherwise be

payable to R must be reduced by 25/36 of 1 percent for each month she was

under age 65. The number of months from R's entitlement to wife's

insurance benefits in January 1964 and prior to the month in which she

attained age 65 is 3. Multiplying $5 x 25/36 x 1/100 x 3 = $.1042 which

subtracted from $5 and raised to the next higher multiple of 10 cents

yields a wife's insurance benefit of $4.90.

Accordingly, it is held that effective with the month of January

1964, R is entitled to disability insurance benefits of $40 per month and

wife's insurance benefits of $4.90 per month for a monthly benefit total

of $44.90.