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A. The maximum limit will apply only when there are annuities payable to a widow and several children, or when there are more than four children without a widow. Since the widow's annuity is 75 per cent, and each child gets half the insurance amount, the total without the maximum, would exceed two times the insurance amount if there were a widow and three or more children.
54.Q. How can the total annuities with respect to a pilot's death ever be as low as $30?
A. This minimum will probably not be applicable to many cases. It would be involved in a case like this: A pilot works 10 years from age 27 until he is 37. He then takes a job at a steel company from which he does not retire until he is 65 at which time the annuity under the Pilots' System is awarded to him. The elapsed quarters to be used in the divisor to compute the average monthly remuneration would be all the quarters from 27 to 65. The elapsed time would be 38 years, or 152 quarters, and 456 months. Assume that during the 10 years as a pilot, the pilot's creditable compensation was $50.000. The average monthly remuneration would be $109.65, and the "insurance amount" 28.56. Without the minimum a widow's annuity would be $21.42.
55.Q. Where the maximum results in a reduction of annuities from the amounts produced by the formula, how are the reductions applied?
A: All annuities are reduced in the same ratio. For example, if annuities are payable to a widow and three children, the total amount before reduction would be 75 per cent to the widow and 50 per cent of the insurance amount to each of the children, or a