Does the "low-earning" spousal benefit calculation use the spouse's PIA at the time they take her own, early benefit, or the spouse's PIA in effect when they reaches FRA and file for the excess spousal benefit? In other words, what spousal PIA is used when subtracting it from 1/2 of the high earning person's PIA? Thanks for any replies!!!

Hi,

The most current PIA (primary insurance amount, or full retirement age rate) would be used. For example, Harvey files for his retirement benefits at age 62. Harvey's PIA at that time was $800, but his reduced age 62 rate was $600. After Harvey reaches full retirement age, his wife files for her benefits with a PIA of $2000. Harvey's PIA has grown from $800 to $850 by that time due to some additional earnings and cost of living increases, and his reduced monthly rate has likewise increased to $637. Harvey's excess spousal benefit rate would be calculated by subtracting his current PIA from 50% of his wife's current PIA, or $150 (i.e. $2000/2 - $850). This would then be added to his reduced retirement rate of $637 to give him a combined benefit rate of $787.

Best, Jerry