My husband passed away in 2012. At that time our kids were 3,9, 13. My oldest child turns 18 this month. Each child used to receive $1,568 in benefits but now two younger children are suppose get $2,020 each. I am trying to understand why the whole amount ($1,568*3 which I assume our family maximum benefits) did not get redistributed over the remaining children after my oldest turned 18. What will happen when my second child turns 18?
Thanks
Anna

Hi Anna,

I'm sorry for your loss.

Surviving children are eligible for up to 75% of the deceased parent's primary insurance amount (PIA). PIAs are based on the deceased worker's earnings history, and are basically the deceased person's projected full retirement age rate.

Based on what you say, your husband's PIA is apparently around $2693.40, permitting each of your children to receive up to $2020 (i.e $2693.40 x .75). However, there is also a monthly family maximum benefit amount that can be paid on any record, which becomes applicable whenever more than 2 survivors are eligible on the same record. In your family's case, the maximum amount must be about $4704, which has been split between your 3 children. When your oldest drops off of the record, your other 2 children will become eligible for their full payment of 75% of your husband's PIA without exceeding the family maximum.

If you aren't working or earning too much (https://www.ssa.gov/planners/retire/whileworking2.html), your family may be able to receive more benefits per month if you apply for mother's benefits now that your oldest child is no longer entitled. For more information on mother's benefits, refer to the Social Security website: https://www.ssa.gov/pubs/EN-05-10084.pdf. You may want to check with Social Security to find out if you are eligible.

Best, Jerry