Is the COLA applied against the Family Maximum amount as a whole or used in the equation (e,g, PIA amounts with bend points) to arrive at the family maximum amount for a given year? Results vary under these 2 presumptions.

Hi. Yes, Social Security cost of living (COLA) increases apply to the family maximum benefit (FMB) amount. Social Security retirement benefit rates and FMBs are only credited with COLA increases that occur after a person turns age 62. Before then, primary insurance amounts (PIA) and FMBs are adjusted based on increases in the national average wage index, not COLA increases.

So, in other words, PIAs and FMBs for Social Security retirement benefits aren't established until the year that a person reaches age 62. That's when the initial calculations involving bend points occur. But, once PIAs and FMBs are initially established, those amounts are increased by all subsequent COLAs.

Best, Jerry