Order Code RS22294
October 6, 2005
CRS Report for Congress
Received through the CRS WebUpdated January 8, 2008
Social Security Survivors Benefits
Kathleen Romig and Scott Szymendera
Analysts in Social Security
Domestic Social Policy Division
Summary
Social Security is formally known as the Old-Age, Survivors, and Disability
Insurance (OASDI) program. This report focuses on the Survivors Insurance component
of Social Security. When workers die, their spouses, former spouses, and dependents
may qualify for Social Security survivors benefits. This report describes how a person
becomes covered by Survivors Insurance. It outlines the types and amounts of benefits
available to survivors, eligibility for those benefits, and the benefit application process.
It provides statistics on survivor beneficiaries and a legislative history of Survivors
Insurance, including legislative activity in the 109th110th Congress. Current bills that would
affect survivors benefits include H.R. 77340, H.R. 78341, H.R. 4401159, H.R. 530, S. 540, H.R.
750, H.R. 1776, H.R. 2126, H.R. 2190, H.R. 2191, H.R. 2192, S. 857, and S. 1302.
1160, and H.R.
1162. This report will not be updated annually.
The Old-Age, Survivors, and Disability Insurance (OASDI) program, better known
as Social Security, is administered
by the Social Security Administration (SSA). The
Survivors Insurance component of
OASDI is similar to life insurance. When a person
insured by Social Security dies, his
or her family may qualify for survivors benefits. In 2001,
SSA’s actuaries estimated that
estimate that the net present value of Survivors Insurance wasfor a young
family with two children and average earnings is equivalent to a life insurance policy with
a face value of $403,000 for a young family with two children and average earnings.1
In 2004433,000.1
At the end of 2007, there were 6.75 million survivor beneficiaries, representing about
one in
seven OASDI beneficiaries.2 About $5.5 billion in survivors benefits are paid monthly.
Each month in 2007, about $6 billion was paid in
survivors benefits. Survivor beneficiaries are mostly women andalmost all either women or children: 28% 29%
of survivor beneficiaries
receive child’s benefits, and 99% of those receiving other survivorstypes
of benefits are women.
1
Social Security Administration memorandum from Stephen C. Goss, Chief Actuary, “Present
Values of Benefits to Illustrative Survivors and Disability Cases,” July 23, 2001.
2
Social Security Administration, “Fast Facts & Figures About Social Security, 2005,” SSA
Publication No. 13-11785, Sept. 2005, at [http://www.ssa.gov/policy/docs/chartbooks/fast_facts/
2005/ff2005.pdf]. See also “Social Security Survivors Benefits” at [http://www.ssa.gov/pubs/
10084.pdf].
Congressional Research Service ˜ The Library of CongressOrlo R. Nichols, Actuary, “The Insurance
Value of Potential Survivor and Disability Benefits for an Illustrative Worker,” Nov. 28, 2006.
2
Social Security Administration, “Fact Sheet on the Old-Age, Survivors, and Disability Insurance
Program,” Dec. 21, 2007, at [http://www.ssa.gov/OACT/FACTS/fs2007_12.pdf]. (Hereafter,
SSA Fact Sheet.)
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How Survivors Insurance Works
Survivors Insurance Coverage. Coverage for survivors benefits is based on the
insurance status of the deceased. In order to become insured for survivors benefits, a
person must work at a job covered by Social Security. A person can earn up to four
Social Security credits each year, based on his or her earnings in a covered job.3 The
number of credits a person needs to qualify for Survivors Insurance depends on how old
the person is when he or she dies.
A person is fully insured for survivors benefits if he or she has at least 40 credits (or
10 years of work) at death; fewer credits are required for workers who die before age 62.4
Spouses, former spouses, children, and parents of fully insured workers are eligible for
all types of survivors benefits as long as they meet the other requirements for those
benefits.5 In 2005, 872007, 88% of Americans over age 20 were fully insured.6
A deceased worker’s children and the spouse (or former spouse) caring for those
children could be eligible for survivors benefits even if the deceased worker does not have
enough credits to be fully insured. The deceased worker is currently insured if he or she
earned at least six credits during the last three years before death. In 20042007, 97% of
covered workers age 20 to 49 were currently insured for survivors benefits.7
Determining Survivors Benefits. Survivors benefits are determined using the
same basic formula used to calculate Social Security retirement and disability benefits.
Benefits are based on the lifetime earnings of the person who died, so survivors of higher
earners tend to receive higher benefits than survivors of lower earners. However, the
benefit formula is progressive, so survivors benefits tend to replace a higher proportion
of lower earners’ wages than of higher earners’ wages.
When a person applies for survivors benefits, the deceased worker’s basic benefit
amount is determined.6 This amount is calculated by applying the basic Social Security
benefit formula to the worker’s average earnings in covered employment, adjusted for
wage growth.8 Qualifying survivors will receive a percentage of thethis basic
benefit amount,
depending on their age and their relationship to the deceased worker. Survivors benefits
may also
Survivors’ benefits may be subject to reductions based on thetheir earnings of the survivors and family size.
If a survivor qualifies both for benefits based on his or her own work record and benefits
based on a spouse’s record, the survivor receives the higher amount of the two. Survivors
benefits, like all Social Security benefits, are increased each year to account for inflation.
3
In 2005
3
In 2008, one credit is earned for every $9201,050 earned in covered employment, up to a maximum
of four credits (or $3,6804,200) per year. This amount increases each year to account for wage growth.
4
A person is fully insured if he or she has earned at least one credit for each year between age
21 and turning 62, dying, or becoming disabled.
5
SSA does not pay survivors benefits based on same-sex marriages. See CRS Report RS21897,
The Effect of State-Legalized Same-Sex Marriage on Social Security Benefits and Pensions, by
Laura Haltzel and Patrick Purcell.
6
6
Social Security Administration, “Fast Facts & Figures About Social Security, 2007,” Sept.
2007, at [http://www.ssa.gov/policy/docs/chartbooks/fast_facts/2007/fast_facts07.pdf].
7
8
SSA Fact Sheet.
This amount is called the Primary Insurance Amount (PIA). For more on calculating benefits,
see CRS Report 94-27, Social Security: Brief Facts and Statistics, by Gary Sidor.
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based on a spouse’s record, the survivor receives the higher amount of the two. Survivors
benefits, like all Social Security benefits, are increased each year to account for inflation.
Types of Survivors Benefits
Widow’s and Widower’s Benefits. Surviving spouses of fully insured people
are eligible for widow’s or widower’s benefits. Divorced surviving spouses may also be
eligible if they were married at least 10 years. Surviving spouses or former spouses
receive 100% of the
deceased worker’s basic benefit if they begin to collect survivor
benefits at full their full
retirement age.79 As early as age 60, they may receive reduced benefits
(from widow(er)’s benefits (from
71% to 99% of the worker’s basic benefit).810 As early as age 50, disabled surviving
spouses (i.e., those receivingsurviving spouses who
receive Social Security disability benefits) may may begin to receive reduced
widow(er)’s
benefits. Widow(er)’s benefits are not paid to spouses or former spouses
who remarry
before age 60 (or age 50 if disabled).
About 69%two-thirds of all survivor beneficiaries (4.74 million people) received widow’s and
and widower’s benefits at the end of 2003.9 Nearly2007. About 200,000 of these beneficiaries were
disabled. In December 20042007, monthly widow(er)’s benefits averaged $9201,040 for nondisabled beneficiaries, and $583646 for disabled beneficiaries.
Mother’s and Father’s Benefits. If they are not eligible for widow(er)’s
benefits, surviving spouses of fully or currently insured workers may be entitled to
mother’s or father’s benefits. To qualify, the spouse must care for a child of the deceased
worker who is either under the age of 16 or disabled. Divorced spouses may also qualify,
regardless of the length of the marriage. Mother’s and father’s benefits are 75% of the
worker’s basic benefit, and may be collected regardless of the age of the mother or father.
About 3% of all survivor beneficiaries (190roughly 200,000 people) received mother’s and
and father’s benefits at the end of 2003. (About 9% of mother’s and father’s beneficiaries
were divorced spouses.)2007. In December 20042007, mother’s and father’s
benefits averaged $689
782 a month.
Child’s Benefits. Surviving children of fully or currently insured workers may be
entitled to child’s benefits. Child’s benefits are paid to unmarried surviving children who
are under 18 (or, or under 19 if still in high school). They are also paid to the disabled
children of
insured workers, regardless of age, (as long as the disability began before the
age of 22).
. Both biological and adoptive children are eligible for survivors benefits, as well as
as children born out of wedlock. Dependent step-children and grandchildren may also
qualify for these benefits. Child’s benefits are 75% of the worker’s basic benefit.
About 2829% of all survivor beneficiaries (1.9 million people) received child’s benefits
at the end of 2003, including 1.4 million children 2007. About three-quarters of those receiving child’s benefits are children
under 18 and high school students under
19, and 500,000 disabled adult children of deceased workers. In December 2004, monthly
child’s benefits averaged $625.
7 19, and the remaining one-quarter are disabled
9
The full retirement age depends on the year of a worker’s birth, and is scheduled to increase
from gradually increasing from
age 65 to 67. See the SSA website at [http://www.ssa.gov/retirechartred.htm].
8
910
In contrast, the earliest eligibility age for early retirement benefits is 62.
Social Security Administration, “Annual Statistical Supplement, 2004,” Aug. 2005, at
[http://www.ssa.gov/policy/docs/statcomps/supplement/].
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adult children of deceased workers.11 In December 2007, monthly child’s benefits
averaged $704.
Parent’s Benefits. The surviving parents of fully insured people are eligible for
parent’s benefits if they are over age 62 and were receiving at least half of their support
from the deceased.10 worker.12 Parent’s benefits are 82.5% of the worker’s basic benefit. About
2,000 people received parent’s benefits at the end of 2003, making up less
Less than 0.1% of
all survivor beneficiaries (about 2,000) received parent’s benefits. In
. In December 20042005, parent’s benefits averaged $810851 a month.13
Lump-Sum Death Benefits. In addition to monthly survivors benefits, a
deceased worker’s family may be eligible to receive a one-time death benefit of $255.1114
Only one lump-sum death benefit is payable to the family of each insured person. The
lump-sum death benefit is paid to the insured person’s surviving spouse, regardless of
age, as long as the spouse meets certain requirements.1215 If no eligible widow or widower
exists, the death benefit is paid in equal shares to any children who qualify for child’s
benefits based on the deceased worker’s record. If a worker leaves no eligible spouse or
child, the lump-sum death payment will not be paid.
Reductions to Survivors Benefits. The total survivors benefits paid to an
insured worker’s family are capped, regardless of the number of family members who
qualify for benefits. The maximum family benefit is 150% to 188% of the worker’s basic
benefit, depending the amount of the benefit. If the total survivors benefits payable to a
worker’s family exceed this maximum, each person’s benefit will be reduced
proportionately. Benefits paid to divorced surviving spouses are not included in the totalDivorced surviving spouses’ benefits do not count toward the maximum.
Survivors benefits may also be reduced for beneficiaries who work before full
retirement age. Survivor beneficiaries younger than full retirement age are subject to an
earnings test, wherein their benefits are reduced if their earnings exceed certain limits.
(The benefits of other family members would not be affected by the reduction.)
Applying for Survivors Benefits
It is in the interests of family members of an insured worker to apply for survivors
benefits promptly after the worker’s death. In some cases, benefits are paid from the time
of application, not the time of the worker’s death.13 Survivors must apply for the lumpsum death benefit no later than two years after the death of the insured individual.
First-Time Social Security Beneficiaries. To apply for survivors benefits,
people who do not currently receive Social Security benefits should call SSA to request
10
11
Social Security Administration, Annual Statistical Supplement, 2006, June 2007, at
[http://www.ssa.gov/policy/docs/statcomps/supplement/2006/]. (Hereafter, SSA Statistical
Supplement.)
12
Evidence of support must be provided to SSA within two years of the death of the insured
person, even if the parent has not yet reached the qualifying age of 62.
1113
SSA Statistical Supplement.
14
The death benefit is equal to the smaller of three times the worker’s Primary Insurance Amount
(PIA), or $255. The minimum PIA for 2005 is $627, so the death benefit is effectively $255.
12death benefit is effectively $255 because the minimum PIA for a worker
with 10 years of coverage (the minimum required to be fully insured) was $341 in December
2005.
15
To qualify, a spouse must be living with the worker at the time of death or must be eligible to
receive certain Social Security benefits based on the worker’s record in the month of death.
13
Eligibility for Social Security benefits ends the month before the month of a person’s death,
so the last benefit received by the deceased usually must be returned. See CRS Report 93-792,
Social Security Benefits Are Not Paid for the Month of Death: A Fact Sheet, by David Koitz.
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Applying for Survivors Benefits
It is in the interests of family members of an insured worker to apply for survivors
benefits promptly after the worker’s death.16 In some cases, benefits are paid from the
time of application, not the time of the worker’s death.17 Survivors must apply for the
lump-sum death benefit no later than two years after the death of the insured individual.
First-Time Social Security Beneficiaries. To apply for survivors benefits,
people who do not currently receive Social Security benefits should call SSA to request
an application by mail or to set up an appointment at any SSA field office.1418 Applicants
must provide documents to show how they qualify for survivor benefits. These
documents must be originals or copies certified by the agency that issued them.
Applicants for survivors benefits need to provide information about the deceased
worker, including his or her Social Security number and most recent tax return. They
must also show proof of death, either a death certificate or documentation from a funeral
home. Applicants also need to provide information about themselves, including their
Social Security numbers and photo identifications. They must demonstrate their
relationship to the deceased worker using a birth certificate, marriage certificate, divorce
papers, or adoption papers. Applicants should also provide their bank name and bank
account number if they choose to have their benefits direct deposited.
Current Social Security Beneficiaries. Survivors who currently receive Social
Security benefits need to report the death of an insured person in order to receive
Current Social Security beneficiaries
who experience the death of a spouse or other qualifying relative need to report the death
to SSA in order to receive survivors benefits. People whose current Social Security
benefits are based solely on their
own earnings can contact SSA to see if their survivors
benefits would be higher than their
current benefits. If so, these survivors must complete
an application to receive survivors
benefits. People who already receive benefits based
in whole or in part on the deceased
worker’s earnings are to have their benefits
automatically adjusted by SSA. These
beneficiaries need only report the death of the
insured worker. An SSA representative is
to contact the beneficiary if further information
is needed to process survivors benefits.
Legislative History of Survivors Benefits
The Social Security Amendments of 1939Establishment of Survivors Benefits. The Social Security Act of 1935,
P.L. 74-271, did not
include any provisions for monthly survivors benefits but did include
a lump-sum payment upon the death of a fully insured person over the age of 65.15 The
1939 amendments reduced the size of the lump-sum death payment and expanded its
coverage to both fully or currently insured workers, regardless of age. Monthly survivors
benefits were also established in the Social Security Amendments of 1939, P.L. 76-379,
including those for widows, parents, and children. These changes were made to “afford
more adequate protection to the family as a unit” than could be afforded by a single lumpsum payment that did not take into account family size or number of survivors.
Changes Since 1939. Few major changes to the survivors benefits have been
established by the 1939 amendments. Benefits were extended to dependent widowers
over the age of 65 as part of the Social Security Amendments of 1950, P.L. 81-734, and
the dependency test for widowers was later removed as part of the Social Security
Amendments of 1983, P.L. 98-21. Payments to divorced widows with children were
established as part of the 1950 amendments, and payments to divorced widows without
children as part of the 1965 amendments. Benefits for divorced widowers were not
provided until the 1983 amendments. Benefits were extended to disabled children over
14
SSA can be contacted by phone at 1-800-772-1213 (or 1-800-325-0778 for TTY), 7:00 a.m. to
7:00 p.m on weekdays. Applicants who file for benefits by mail must send their original
supporting documents to SSA. Documents are to be returned to the applicant.
15
For more information, see CRS Report RL30920, Major Decisions in the House and Senate
on Social Security: 1935-2000, by Geoffrey Kollmann and Carmen Solomon-Fears.
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the age of 18 with the Social Security Amendments of 1956, P.L. 84-880. The Omnibus
Budget Reconciliation Act of 1981, P.L. 97-35, phased out child’s benefits for postsecondary students. It also reduced from 18 to 16 the maximum age of non-disabled
children used to determine eligibility for mother’s and father’s benefits, and restricted
who could receive the lump-sum death benefit. The lump-sum death benefit was capped
at $255 in the Social Security Amendments of 1954, P.L. 83-761.
Legislative Activity in the 109th Congress
Survivors benefits are based on the same formula as all other OASDI benefits, so any
changes to the basic benefit formula would affect survivor beneficiaries, unless they are
specifically exempt. The following eight plans include individual accounts, which could
be inherited by survivors. Other changes to survivors benefits in these bills include
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H.R. 440 would set widow(er)’s benefits at 75% of the couple’s benefits
(compared to 50-67% under current law). It would change the benefit
formula and reduce the cost of living adjustment for all OASDI benefits;
H.R. 530 would replace Social Security retirement benefits, including
widow(er)’s benefits, with individual accounts for workers who choose
to contribute to accounts. For those who do not contribute to accounts,
it would reduce Social Security benefits, including all survivors benefits;
H.R. 750 would set widow(er)’s benefits at 75% of the couple’s benefits.
It would allow widow(er)s to qualify for disability benefits regardless of
age or when the disability occurred. It would lower the reduction in
widow(er)’s benefits under the Government Pension Offset and eliminate
the earnings test for all benefits;
S. 540 would change the basic benefit formula, but would exempt
mother’s, father’s, and child’s benefits from the changes. Survivors of
account participants are guaranteed survivors payments (including
account proceeds) at least equal to those if the worker had no account;
S. 857, H.R. 1776, S. 1302, and H.R. 3304 would reduce widow(er)’s
benefits to reflect the payroll taxes redirected to individual accounts if
widow(er)s and/or their spouses contributed to accounts. Other survivors
benefits would not be affected.
In addition, six other bills would alter only survivors benefits.
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H.R. 77 would allow remarried widow(er)’s beneficiaries to continue
receiving those benefits if the marriage on which they are based lasted at
least 10 years;
H.R. 78 would extend a lump-sum death benefit to all surviving spouses;
H.R. 2126 would reduce the age of eligibility for widow(er)’s benefits
from 60 to 55;
H.R. 2190 would add a delayed retirement credit to widow(er)’s benefits;
H.R. 2191 would provide full benefits to widow(er)s without regard to
age or previous reduction in benefits and prohibit the reduction to
widow(er)’s benefits if the beneficiary is disabled;
H.R. 2192 would expand the period in which a person’s disability could
begin for the purposes of qualifying for widow(er)’s benefits before age
60
16
Social Security Administration, “Social Security Survivors Benefits,” August 2007, at
[http://www.ssa.gov/pubs/10084.pdf].
17
Eligibility for Social Security benefits ends the month before the month of a person’s death,
so the last benefit received by the deceased usually must be returned. See CRS Report 93-792,
Social Security Benefits Are Not Paid for the Month of Death: A Fact Sheet, by Dawn Nuschler.
18
SSA can be contacted by phone at 1-800-772-1213 (or 1-800-325-0778 for TTY), 7:00 a.m. to
7:00 p.m on weekdays. Applicants who file for benefits by mail must send their original
supporting documents to SSA. Documents are to be returned to the applicant.
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payment upon the death of a fully insured person over the age of 65.19 The Social
Security Amendments of 1939 reduced the size of the lump-sum death payment and
expanded its coverage to both fully or currently insured workers, regardless of age.20
Monthly survivors benefits were also established in the 1939 amendments, including
those for widows, parents, and children. These changes were made to “afford more
adequate protection to the family as a unit” than could be afforded by a single lump-sum
payment that did not take into account family size or number of survivors.
Changes to Survivors Benefits. Few major changes to the survivors benefits
have been made since the 1939 amendments.
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The 1950 Amendments extended benefits to dependent widowers over
the age of 65 and to divorced widows with children (P.L. 81-734).
The 1954 Amendments capped the lump-sum death benefit at $255 (P.L.
83-761).
The 1956 Amendments extended benefits to disabled children over the
age of 18 (P.L. 84-880).
The 1965 Amendments allowed for payments to divorced widows
without children (P.L. 89-97).
The Omnibus Budget Reconciliation Act of 1981 phased out child’s
benefits for post-secondary students. It also reduced from 18 to 16 the
maximum age of non-disabled children used to determine eligibility for
mother’s and father’s benefits, and restricted who could receive the
lump-sum death benefit (P.L. 97-35).
The 1983 Amendments provided benefits for divorced widowers and
eliminated the dependency test for all widowers (P.L. 98-21).
Legislative Activity in the 110th Congress
Survivors benefits are based on the same formula as all other OASDI benefits, so any
changes to the basic benefit formula would affect survivor beneficiaries, unless they are
specifically exempt. Many comprehensive Social Security reform proposals would affect
survivors benefits. As of this writing, five bills before the 110th Congress would apply
only to survivors benefits:
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H.R. 340 would allow remarried widowers to continue receiving benefits
if the marriage on which they are based lasted at least 10 years.
H.R. 341 would extend a lump-sum death benefit to all surviving
spouses.
H.R. 1159 would provide full benefits to all disabled widows and
widowers, regardless of age or previous benefit reduction.
H.R. 1160 would allow widow and widower beneficiaries to receive
delayed retirement credits if they take up benefits after their full
retirement ages.
H.R. 1162 would repeal the seven-year restriction on eligibility for
disabled widow and widower beneficiaries.
19
P.L. 74-271. For more information, see CRS Report RL30920, Major Decisions in the House
and Senate on Social Security: 1935-2000, by Geoffrey Kollmann and Carmen Solomon-Fears.
20
P.L. 76-379.