1. Regulations
  2. title 20
  3. chapter III
  4. part 404
  5. subpart C
  6. appendix AppendixII

Appendix II - Appendix II to Subpart C of Part 404—Benefit Formulas Used With Average Indexed Monthly Earnings

As explained in § 404.212, we use one of the formulas below to compute your primary insurance amount from your average indexed monthly earnings (AIME). To select the appropriate formula, we find in the left-hand column the year after 1978 in which you reach age 62, or become disabled, or die before age 62. The benefit formula to be used in computing your primary insurance amount is on the same line in the right-hand columns. For example, if you reach age 62 or become disabled or die before age 62 in 1979, then we compute 90 percent of the first $180 of AIME, 32 percent of the next $905 of AIME, and 15 percent of AIME over $1,085. After we figure your amount for each step in the formula, we add the amounts. If the total is not already a multiple of $0.10, we round the total as follows:

(1) For computations using the benefit formulas in effect for 1979 through 1982, we round the total upward to the nearest $0.10, and

(2) For computations using the benefit formulas in effect for 1983 and later, we round the total downward to the nearest $0.10.

Benefit Formulas

Year you reach age 62 190 percent of the first— plus 32 percent of the next— plus 15 percent of AIME over— 1979$180$905$1,085 19801949771,171 19812111,0631,274 19822301,1581,388 19832541,2741,528 19842671,3451,612 19852801,4111,691 19862971,4931,790 19873101,5561,866 19883191,6031,922 19893391,7052,044 19903561,7892,145 19913701,8602,230 19923871,9462,333

1 Or become disabled or die before age 62.

[57 FR 44096, Sept. 24, 1992; 57 FR 45878, Oct. 5, 1992]