Survivor benefit eligibility

The following individuals are generally eligible for Social Security survivor benefits, presuming the deceased family member had earned sufficient credits or quarters of coverage to qualify:

• Widow or widower who has not remarried before age 60 (If an individual remarries prior to age 60, survivor benefits are not available in most cases.)

• • At any age, if caring for children younger than 16 or disabled children who get benefits
  • If born before 1938, full benefits at age 65 or older, or reduced benefits at age 60
  • If born after 1960, full benefits at age 67 or older or reduced benefits at age 60
  • If disabled, benefits at age 50–60

• Unmarried children

• • If younger than age 18
  • If younger than age 19 and in elementary or secondary school (not college)
  • If disabled before age 22 and remains disabled
  • Adopted children, grandchildren, or stepchildren under certain conditions

• Dependent parents

• • Age 62 or older

Knowledge check

1. When Tom Harding died at a relatively young age, he had enough credits for survivor benefits. Who among his four children would be eligible for child’s benefits?
   1. Kim, age 18, a college freshman.
   2. Tim, age 18, who recently married.
   3. Jim, age 18½, a high school senior.
   4. Slim, age 20, a high school senior.

Reduction for early requests

The survivor benefit is generally equal to the deceased worker’s benefit amount (if he or she was collecting benefits at death). Keep in mind, however, that it may be reduced depending upon the surviving spouse’s age.

This is similar to the reduction applied to regular retirement benefits. Note, however, that spousal survivor benefits can be claimed as early as age 60, rather than age 62 as for retirement benefits (and as early as age 50 for a disabled surviving spouse).

At age 60, the survivor benefit is reduced to 71.5% for all dates of birth, in addition to the fact that the survivor benefit can be received two years earlier than earliest retirement age of 62, the table for full retirement age (FRA) is adjusted by two years.

Logically, when the deceased spouse was receiving retirement benefits, any reductions or increases that had been applied also factor into the survivor benefit. Taking retirement benefits early can permanently reduce any survivor benefit that the surviving spouse might receive.

In contrast, if the deceased spouse was not already receiving retirement benefits the month of his or her death, the first factor is the amount that the decedent would have received at the final attained age, (based on date of birth) if he or she were still living.

If the deceased spouse would have been younger than his or her full or normal retirement age when the surviving spouse files for benefits, the first factor must be reduced from the PIA. Similarly, if the deceased spouse would have been older than full or normal retirement age when the survivor benefit is applied for, the benefit will be increased from the primary insurance amount.

At the survivor’s age 60, the reduction is 28.5% for all dates of birth. Then the reduction factor is eliminated gradually up through the survivor benefit FRA.

Calculating widow’s or widower’s benefits

To calculate the amount of the widow’s or widower’s benefit, apply the reduction factor to the survivor benefit.

Remarriage may jeopardize benefits

If the surviving spouse has remarried before age 60, the survivor benefit is no longer available. However, if the surviving spouse remarries before age 60 and then subsequently divorces or is subsequently widowed again, the survivor benefit is available again.

If the surviving spouse has more than one deceased spouse, he or she is eligible to receive survivor benefits based upon the highest possible benefit from any but not all of the prior spouses, as long as they were married for at least 10 years.

Switching from widow’s or widower’s benefits to retirement benefits

If a widow or widower is receiving benefits based on the FICA earnings of his or her late spouse, that widow or widower may, at a later date, switch to his or her own (retirement) benefit as early as age 62. This would make sense if the widow’s own retirement benefit was of a greater amount than the survivor’s benefit.

It is not unusual for a widow or widower to begin to receive a survivor benefit at a reduced rate then later switch to one not exposed to reduction. The Bipartisan Budget Bill of 2015 did not change the rules in the case of death. A widow or widower is still allowed to claim the survivor benefit only, rather than his or her own and then switch to his or her own benefit at a later date.

Parental benefits for significantly younger widows or widowers

There is also a survivor benefit available for a (potentially) much younger surviving spouse if that survivor is caring for a child aged 16 or younger. This benefit is equal to 100% of the benefit that the decedent-spouse was receiving at his or her death, or the primary insurance amount to which he or she was entitled, if he or she was not currently receiving benefits at death.

Any benefits require that the deceased spouse earned adequate Social Security quarters or credits. For full benefits, the deceased would need to have earned at least 40 quarters, or 10 years of work. For the surviving spouse caring for a child younger than age 16, reduced benefits are available if the deceased spouse had earned at least six quarters of credit in the three years prior to his or her death. Any amount of quarters between the minimum of six and the maximum of 40, results in a phased increase in the benefit amount.

The general rule is that to qualify for this benefit that the surviving spouse had to have been married to the deceased spouse for at least nine months. However, an exception is available if the deceased worker died within three months of an accident or died while on active duty in the armed services.

Having a “child in care” is a basic requirement for some benefits, including spouse’s benefits for a spouse younger than age 62 and for mother’s and father’s benefits. According to the SSA, in care means

• exercising parental control and responsibility for the welfare and care of a child younger than age 16 or a mentally disabled child aged 16 or older; or
• performing personal services for a physically disabled child aged 16 or older.

The mother or father may exercise parental control and responsibility or perform personal services alone or with another. When the child in care turns 16, the parent may continue to receive benefits if the child is disabled and the parent meets the requirements for having a disabled child in care.

Knowledge check

2. According to the Social Security Administration, what does it mean to have a child in care?
   1. The deceased worker’s widow or widower is exercising parental control and responsibility for the welfare and care of a child younger than age 16 or a physically or mentally disabled child aged 16 or older.
   2. The deceased worker’s widow or widower maintains constant supervision over the deceased’s child younger than age 16 or a physically or mentally disabled child aged 16 or older.
   3. The deceased worker’s widow or widower is supporting the educational needs of the deceased’s child younger than age 16 or a physically or mentally disabled child aged 16 or older.
   4. The deceased worker’s widow or widower personally provides all physical care for the deceased’s child younger than age 16 or a physically or mentally disabled child aged 16 or older.

Disabled widows or widowers

The disabled widow or widower of a worker with sufficient Social Security quarters or credits is entitled to receive survivor benefits based on the deceased spouse’s work record. The applicant must be between the ages of 50 and 60 with a medical condition that satisfies the SSA’s definition of disability for adults. The widow or widower disability must have begun before or within seven years of the deceased spouse’s death.

This seven-year period is adjusted if the disabled widow or widower is also receiving Social Security mother’s or father’s benefits. In this case, the disabled surviving spouse may still be eligible for disabled widow or widower benefits if his or her disability had begun before the mother or father’s benefits end or within seven years after they end.

The lump-sum Social Security death benefit

In addition to ongoing survivor benefits, Social Security pays a small lump-sum death benefit of $255.

The Social Security lump-sum death benefit is available to

• the spouse of the deceased insured worker who is living in the same household, or
• the dependent child of the deceased worker who is eligible to receive Social Security benefits based on the worker’s earnings record.

Mini case

Gwen Varner’s husband Leonard died recently. They had two children—Cathy and Carrie, ages 11 and 14, respectively. Gwen’s father, Sidney, a long-time widower, has been in poor health. Sidney is now 88 years old.

She could claim the lump-sum death benefit based on Leonard’s earnings.

Now assume that both Gwen and Leonard were killed in an auto accident. The children could claim the (one) $255 death benefit.

Gwen’s father, Sidney, just died. Because he has no living spouse or dependent children, the lump-sum death benefit will not be paid.

The lump-sum death benefit is payable as long as the deceased worker was currently insured, meaning that they had at least six quarters of earnings covered by Social Security withholding during the full 13-quarter period prior to his or her death.

This tiny amount has been regarded by Social Security as a funeral benefit. Obviously, the amount has not been indexed for inflation.

Applying for the benefit

If the Social Security death benefit is being paid to a widow or widower who is receiving spouse’s benefit, then no application for the lump-sum death benefit needs be filed.

If the Social Security death benefit is being paid to an eligible dependent child, then an application must be filed within two years of the insured worker’s death.

General rules for claiming survivor benefits

The manner in which individuals request survivor benefits differently depends on whether they already receive benefits from Social Security.

An application for an ongoing monthly Social Security death benefit should be filed within six months of the worker’s death. This is because no more than six months’ worth of benefits will be paid retroactively.

If an individual is not currently receiving benefits from Social Security, he or she should

• immediately apply for survivor benefits by telephone, online or at a local Social Security office; and
• supply the SSA with original or certified copies of
  • proof of death—notice from the funeral home or a death certificate;
  • his or her Social Security number, as well as the deceased’s Social Security number;
  • his or her birth certificate;
  • his or her marriage certificate if he or she is the widow or widower;
  • his or her divorce papers if applying as a divorced spouse;
  • the Social Security numbers of all dependent children;
  • the most recent W-2 form or federal self-employment tax return of the deceased; and
  • his or her bank name and account number.

If the applicant is already receiving Social Security Benefits, he or she should

• immediately report the death so that benefit payments on the spouse’s record can be changed to survivor benefits, and
• contact a Social Security representative to discuss whether his or her own benefits or survivor benefits will result in larger benefit payments.

Mini case

Charles Belkin died when he was fully insured. Charles’ PIA was $1,500 per month. His son Jason is 16 and earned around $9,000 in the past year or so installing and troubleshooting computers for friends and neighbors. Jason is an athletically-minded junior at Kennedy High School.

Jason’s survivor benefit would represent 75% of his father’s PIA amounting to $1,125 per month. His survivor benefits would be tax free. However, if Jason’s mother, grandparents, or other siblings are also getting benefits on his father’s record, his benefits might be reduced. The SSA limits the amount a family can get on one worker’s record to between 150% and 180% of his PIA. If the total family benefits did exceed the limit, each person’s benefit payments are reduced proportionately.

Although Jason does have earned income, the amount is comfortably less than the $17,640 threshold that would trigger a reduction in his survivor benefit.

Perhaps in the future, Jason’s benefits might become income taxable to him. Let us also say that Jason soon begins receiving an income distribution of $30,000 annually from a trust fund that was established at his father’s death. Jason’s benefits will become taxable because his provisional income, which includes his income plus half of his survivor benefits exceed income limits set by the IRS. Jason’s (because he is only 16, we will presume that he is single,) provisional income was $36,750 (more than the $34,000 second base amount). Because the provisional income exceeds $34,000, 85% of the excess amount is included in income.

Grandchildren

It is possible for grandchildren to receive survivor benefits based on a grandparent’s earnings record. For this purpose, step-grandchildren are treated as grandchildren. To receive these survivor benefits, all the following requirements must be met:

• The parents of the grandchild must be deceased or disabled.
• The grandchild began living with the grandparent before he or she turned 18 years old.
• The grandchild received at least half of his or her support from the grandparent in the year before the grandparent died.
• If the grandchild is younger than 12 months old, it must be shown that he or she lived with the grandparent and received at least half of his or her support from the grandparent since birth.

If the grandchild is formally adopted by the grandparents, they do not need to meet the previously listed requirements. Instead, they must meet the requirements that apply to children (of a parent).

Knowledge check

3. Based on a deceased worker’s survivor benefits, how far back may retroactive payments to survivors go?
   1. Three months.
   2. Six months.
   3. Nine months.
   4. Eighteen months.

Benefit amounts recap

Typically, the amount that the beneficiary will receive is a percentage of the deceased’s PIA includes the following:

• A widow or widower older than 66 years will generally receive 100% of the deceased’s PIA.
• A widow or widower aged 60–64 years will generally receive a benefit close to 71%–94% of his or her deceased spouse’s PIA.
• A disabled widow or widower aged 50–59 years will generally receive a benefit of 71% of his or her deceased spouse’s PIA.
• Widows and widowers with children younger than age 16 will receive 75% of the deceased spouse’s PIA at any age.
• Eligible children of the deceased worker will generally receive a benefit representing 75% of the deceased parent’s PIA.