In RightCapital, there is a maximum Social Security benefit each family can receive. When adding up retirement benefits, spousal benefits, child benefits & survivor benefits, RightCapital will follow the rules to cap the total benefit at the family's maximum amount. Retirement benefits will not be reduced by the family max benefit; instead, other benefit amounts will be reduced pro-rata. For information on how the family max benefit is calculated view this link.
The formula used to compute the family maximum is similar to that used to compute the Primary Insurance Amount (PIA). The formula sums four separate percentages of portions of the worker's PIA. For 2024 these portions are the first $1,500, the amount between $1,500 and $2,166, the amount between $2,166 and $2,825, and the amount over $2,825. These dollar amounts are the "bend points" of the family-maximum formula. Thus, the family-maximum bend points for 2024 are $1,500, $2,166, and $2,825. See the table showing bend points for years beginning with 1979 (the table also shows PIA formula bend points).
For the family of a worker who becomes age 62 or dies in 2024 before attaining age 62, the total amount of benefits payable will be computed so that it does not exceed:
(b) 272% of the worker's PIA over $1,500 through $2,166, plus
(c) 134% of the worker's PIA over $2,166 through $2,825, plus
(d) 175% of the worker's PIA over $2,825.
