As regular readers know, I am a fan of Ed Slott and Co.’s monthly newsletter on retirement accounts. The company, which bills itself as “America’s IRA experts,” also offers a useful newsletter on Social Security prepared by its expert in that field, Heather Schreiber.
In a recent edition of the newsletter, Schreiber discussed “caregiver benefits,” which refers to widow(er)s who are responsible for raising young children who have lost a parent. The regulations associated with caregivers are complicated, and most individuals are not well-versed.
Caregiver benefits
When an individual dies after having earned enough Social Security credits to be eligible for a retirement benefit, his or her children younger than age 18 are eligible for survivor benefits. The surviving child is entitled to 75% of the deceased parent’s full retirement benefit, known as the “primary insurance amount” or PIA.
The PIA amount is based on the wages the deceased parent earned under Social Security, and is based on what his or her benefit would have been at full retirement age. In addition to the survivor benefit available to the child of the deceased worker, the surviving parent (known as the mother’s or father’s benefit) is also eligible for 75% of the PIA if the parent is responsible for the care of the dependent child. The dependent child is eligible for a survivor benefit until age 18 or graduation from high school, whichever comes later (but not later than age 19). There is an exception if the child is disabled with a condition that began prior to age 22. read more