My 31 adult children diasbled twin sister and I receive ssi currently $771a month since 18 years old. Our father is considering collecting retirement social security in 2019 he will be 64 in July 63 now. His pia is 2289. According to paper work cola his family maximum is $4002 based on 2919 formula. My question is what would our benefit be per month.he went to ssa office and they said the maximum benefit is $3400 not the $4002.with an auxiliary benefit being $800 a month each because he would take early retirement benefit of $1905. Then later the amount would be reduced even less later on. I know the total benefit while living can be no more than 50% auxiliary totaling 150%, but should that just be the total amount of benefits per month limit not the total family maximum? Below I will list what I thought it should be versus what ssa says. If you can explain or confirm which is correct that would be great.
Pia 2289, 2019 family maximum with formula is $4002 early retirement $1905
$4002-1905= $2097/2= $1048 each child
Then reduced to 4002- 2289 full pia $1713 or $856 each child
Ssa has family maximum of $3500 about $150 percent of $2289
So there figures were $3500-1905= $1595/2=797 each child
Later benefit would be reused to $3500-2289=$1211 or $605 each child
Which is correct? What would auxiliary benefits be for two adults disabled children? What is family maximum?
Regardless of when your father starts drawing his benefits, Social Security would subtract his primary insurance amount (PIA) from the family maximum benefit (FMB) in order to determine the total amount available to be paid to auxiliary beneficiaries. So, if in fact your father's PIA is $2289 and the FMB on his record is $4002, $1713 (i.e. $4002 - $2289) would be the maximum amount that eligible family members could be paid from his record. That's true whether your father files early and takes a reduced benefit rate, or if he files after full retirement age (FRA) and receives a benefit rate higher than his PIA.
Eligible family members, including disabled adult children, can be paid up to 50% of the worker's PIA subject to reduction due to the family maximum. Therefore, if $1713 is available to be paid to eligible family members on your father's record and you and your sister are the only family members elgible, the monthly benefit payable to each of you would be $856 after rounding (i.e. $1713/2).
I should also mention that when you and your sister start drawing disabled adult child's benefits, your SSI benefits will be offset dollar for dollar by all but the first $20 of your disabled child's benefits. So, if your disabled child's benefit rate ends up being $791 or higher, your SSI payments will likely be terminated.
Your father should strongly consider using our software to calculate your potential family benefit rates, and to determine your family's best overall strategy for claiming benefits.