Hi Larry,

My husband filed for benefits today. He had 2 years of DRC's We were told that If I file for Spouse benefits now at 63 I will not be get his DRC's as a Widow no matter what my age is if he passes before I do. They say that bullet point C below explains this permanent reduction. Is this correct?

Thanks so much!

Amount of Widow(er)'s Insurance Benefit
407.1How is the widow(er)'s benefit rate computed?

The widow(er)'s insurance benefit rate equals 100 percent of the deceased worker's primary insurance amount plus any additional amount the deceased worker was entitled to because of delayed retirement credits. (See §720.)
407.2When is the benefit rate less?

Your widow(er)'s insurance benefit payable may be less than what was computed above if any of the conditions below apply:

A. A reduction is necessary because the “family maximum” applies (this reduction is discussed in §§731-732);

B. You are also entitled to a smaller retirement insurance or disability insurance benefit (only the difference between the larger widow(er)'s insurance benefit and the other benefit is payable as the widow(er)'s insurance benefit; however, this amount is payable in addition to the other benefit);

C. You are entitled for months before the month you reach retirement age. See §§723-725 for an explanation of how the reduced rate is computed;

D. You choose to receive and are paid a reduced widow(er)'s benefit for months before you reach retirement age. A reduced benefit rate is payable for as long as you are entitled to widow(er)'s benefits. For a possible adjustment at age 62 and retirement age, see §728;

NOTE: Entitlement to this reduced rate may result in a reduction in any disability or retirement insurance benefit to which you may later become entitled.

Hi,

No, what you were told is not correct. If your husband dies before you and after you've reached your full retirement age (FRA), you would be eligible for his full benefit rate as a widow, inclusive of any delayed retirement credits he earned by waiting past his FRA to claim his benefits.

However, if you're also eligible for Social Security retirement benefits on your own record, you could only be paid the higher of the two benefit amounts. If you're drawing retirement benefits and your husband dies before you and after you've reached FRA, your widow's rate would be calculated by subtracting your retirement benefit amount from your husband's full benefit rate. You would then be paid both amounts, which would add up to your husband's full rate. So, even though your total benefit rate would then equal 100% of your husband's amount, the widow's rate itself would be reduced by the amount of your retirement benefit. That's what item B is referring to in the Social Security handbook reference you've cited.

Item C simply means that you wouldn't get 100% of your husband's rate if you start drawing WIDOW'S benefits prior to FRA. In that case your widow's rate would be permanently reduced for age. However, your widow's rate would not be reduced if you're FRA or older when you start drawing widow's benefits, regardless of whether or not you previously drew either reduced retirement or spousal benefits.

You and your husband should strongly consider using our software to compare your various filing options so you can be sure to choose the best possible strategy for claiming your benefits.

Best, Jerry