Two questions about Spousal Benefit or "Top Off" w/ respect to a couple both with SS earnings. The lower earning wife retires first at age 62 (her FRA is 66), and the higher earning husband retires 2 years later (wife is now 64) at which time the wife is deemed to file for spousal benefits.
In the formula for the spousal benefit provided by Social Security, there is a reduction factor based on months prior to FRA. The question is, in the example above, do I use months prior to FRA that the wife originally retired (which is 48 months) or do I use the months prior to FRA that the wife was deemed to file for her spousal benefit (which is 24 months)?
The other question is that the spousal benefit formula includes the wife's PIA. The question is what PIA is this? Is it the PIA of the wife at the time she retired, or is it the original PIA of the wife times the COLAs that have occurred since she originally retired?
thanks
Hi,
When a person is drawing their own Social Security benefits and then becomes eligible for additional spousal benefits the additional amount is usually referred to as an excess spousal benefit. If the spouse in your scenario first becomes eligible for spousal benefits effective with the month she turns age 64 and her full retirement age (FRA) is age 66, 24 reduction months would be applied to her excess spousal benefit. I should mention, though, that the spouse in your scenario would only be deemed to have applied for spousal benefits if she was born after January 1 1954 (https://secure.ssa.gov/apps10/poms.nsf/lnx/0200204035#b). If the spouse was born prior to January 2 1954 she would have the option of waiting until FRA to claim an unreduced excess spousal benefit.
A person's primary insurance amount (PIA) is adjusted for any Social Security cost of living increases (COLA) that occur after they turn age 62. When calculating an excess spousal benefit you would subtract the person's current PIA from 50% of their spouse's current PIA to determine the unreduced excess spousal rate.
Best, Jerry
