Earnings are the basis for calculating both eligibility and benefit amount. Relatively small amounts of earnings over a long period allow the worker to accrue credits. As noted above, only $3,320 was needed in 2001 to earn four of the forty credits necessary to be eligible for Social Security (regular Social Security benefits also require the worker to have reached full or early retirement age as described below).

Once eligibility is established, the amount of the monthly benefit must be determined. Social Security survivor benefits are based on the deceased worker's date of birth, date of death, and earnings. Earnings are adjusted for inflation and then averaged over the worker's lifetime to reflect average adjusted monthly earnings. Average adjusted monthly earnings are then multiplied by percentages prescribed by law. The product is the deceased worker's base benefit amount.

The worker’s base benefit amount is then multiplied by a percentage determined by the age of the beneficiary and the beneficiary’s relationship to the deceased:

1. A surviving spouse age 65 or older when entitlement begins: 100 percent.
2. A surviving spouse age 60 to 64 when entitlement begins: a sliding scale ranging from 71 to 94 percent.
3. A surviving spouse (any age) caring for a child under age: 16 -75 percent.
4. Children: 75 percent.

The higher the lifetime earnings of the deceased worker, the greater the potential benefits for the family. In 2001, the average monthly Social Security benefit for a surviving spouse and two children was $1,696. For a widow or widower living alone, the average monthly benefit was $811.

There is a limit, called a “family maximum,” on the amount of survivor benefits that can be paid to the family of a worker. The limit is generally equal to somewhere between 150 to 180 percent of the deceased worker's base benefit amount. If several family members are eligible for survivor benefits, and their aggregate benefit exceeds the maximum, their individual benefits will be reduced proportionately.

For example, if a worker's base benefit was $500, a 75 percent benefit (generally due a surviving spouse or child) would be $375. However, if the worker was survived by a surviving spouse and four minor children, each family member would not receive the full 75 percent benefit (the adjusted benefit for children and surviving spouses age 60-64), as this would exceed the family maximum of $750 (150% of the base amount). To determine the proper benefit amount in a family maximum case, the maximum benefit payable would be divided equally among the family members. For example, a family of five (surviving spouse and four minor children) would each receive $150 a month, or one-fifth of the $750 family maximum. As the oldest child matures and stops receiving Social Security, his or her benefit would be divided and shared equally by the remaining family members. The family maximum rule generally comes into play in survivor claims of younger families (a surviving spouse with young children) and can become complicated when there are ex-spouses with children of the deceased worker.

The Social Security Administration will make an official determination of the survivor benefit amount when the claim is finally adjudicated, but can provide a benefit estimate at the time of application.