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66. Q. Suppose in question 65 the widow remarried after 5 years. What would happen to her annuity?

A. The annuity to the widow would stop but the annuities to the children would go on as long as they were unmarried and under age 21.

67. Q. When is a parent's annuity payable?

A. A parent's benefit is payable (a) when a pilot dies wholly insured; (b) when no widow or child eligible for annuities or a lump sum payment survives; (c) when at the time of the pilot's death, he was the chief support of the parent; and (d) when a father is 65 or a mother 60.

68. Q. What are the maximum and minimum limitations on survivor annuities?

A. The total of monthly annuities payable to the survivors of a pilot is not to exceed twice the pilot's insurance amount nor to be less that $30 a month.

69. Q. When would the maximum limitation on annuities payable with respect to a pilot's death apply?

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.

70. 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 flies in every month for 10 years, from 27 until he is 37. He then takes a job at a steel company from which he does 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.

71. 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 total of 225 per cent of the insurance amount. Since the total is not to exceed 200 percent of the insurance amount, there must be a reduction of 25/225 or 1/9 in each of the four annuities.

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