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.
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.
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.
Back to Table of Contents