Happy New Year. I have a RIB-LIM question . . . which I thought I understood . . . but now I'm not so sure.

I just turned 62 and my wife is 62 1/2. We both recently filed at the same time for reduced benefits -- I filed for regular retirement and as a low wage earner she filed for a spousal benefit. My FRA PIA is $1742 so I'm drawing $1270. She's drawing $633 ($408 on her own record and $225 in a spousal benefit).

Okay, so the question is, if I die tomorrow and she immediately files for a survivor benefit what would her survivor benefit be?

Under RIB-LIM 82.5% of my full PIA is $1437. As that is larger than my current $1270 would she be entitled to that amount immediately or would that amount be further reduced because she is claiming a survivor benefit prior to reaching her FRA of 66 years, 2 months . . . or is the age at which she files for a survivor benefit irrelevant?

If there is a reduction, does she have the option of continuing to receive the $633 she is now and not filing for a survivor benefit until she reaches her full FRA in order to collect the full RIB-LIM amount? In other words, does Social Security automatically convert from a retirement benefit to a survivor benefit upon the death of a spouse?

Thanks,

Mike

Hi Mike,

First off, the age of a person claiming widow(er) benefits is relevant even if RIB-LIM applies. For those unfamiliar with that term, RIB-LIM refers to the process used to determine the benefit rate payable to a widow(er) if the deceased worker drew reduced Social Security retirement benefits prior to their death. When RIB-LIM applies the maximum widow(er) rate that can be paid in the higher of a) 82.5% of the deceased worker's primary insurance amount (PIA), or b) the deceased worker's reduced benefit rate. However, the rate payable to the widow(er) could be less than that amount if the survivor is not yet full retirement age when they claim widow(er) benefits. Basically, if RIB-LIM applies the widow(er) would be due the lower of a) whichever is higher between 82.5% of the deceased worker's PIA or the deceased worker's reduced benefit rate, or b) the worker's PIA reduced based on the widow(er)'s age at the time that they claim survivor benefits. For example, if a widow(er) files at age 60 they would receive 71.5% of the worker's PIA whether or not RIB-LIM is involved. The chart in subsection D.5 of the following reference from Social Security's operations manual explains which rate would be payable depending on the circumstances involved: https://secure.ssa.gov/apps10/poms.nsf/lnx/0300615322.

I should clarify that the information in the paragraph above assumes that the worker did not earn any delayed retirement credits (DRC) in return for voluntarily suspending their benefits prior to their death. If they did, the DRCs would need to be factored in when calculating the amount payable to the widow(er).

Since you filed at age 62 and since your benefit rate is less than 82.5% of your primary insurance amount (PIA), 82.5% of your PIA is the most that your wife could receive as a survivor assuming that none of your benefits are suspended in the future. And, since she's already age 62 1/2, she would be eligible for that 82.5% of your PIA even if you died today. She wouldn't get that amount plus her own benefit rate, though, just the higher of the two.

If your wife was younger and her survivor rate was less than 82.5% of your PIA, she could opt to delay claiming survivor benefits until she reached the age that the 82.5% was payable. However, she could then only be paid her own Social Security retirement benefits in the interim, not her own benefits plus spousal benefits.

Best, Jerry