TN 49 (04-12)

RS 00605.015 1978 New Start (NS) Computation Method (Average Indexed Monthly Earnings (AIME)) Primary Insurance Amount (PIA)

A. Applicability of indexed earnings

1. General information on indexed earnings

Base this computation on averaging earnings over a fixed number of years after 1950. We index earnings to reflect current earnings levels. Actual wages are adjusted or “indexed” to account for changes in average wages since the year the earnings were received to make them comparable to earnings that are more current.

2. Applicability to disabled number holder (NH)

The new start method applies to NHs who attain age 62, become disabled, or die after 1978.

B. Determining the AIME PIA

  1. Determine elapsed years, base years, computation years, and divisor months. For more information on these factors, see RS 00605.016 and RS 00605.17.

  2. Index the earnings record and compute the dividend as outlined in RS 00605.021. For information on indexing, see RS 00605.018.

  3. Determine the AIME. (For information on computing the AIME PIA see RS 00605.021 and the worksheets in RS SEA00605.015.)

  4. Calculate the PIA using the applicable PIA formula. This is the PIA as of January of the year of first eligibility. For information on PIA formulas, see RS 00605.001 through RS 00605.070.

  5. Add applicable cost of living adjustment (COLAs). For information on COLAs, see RS 00601.120.

C. References

  • For a NH eligible after 1981 and the minimum benefit may apply, see RS 00605.100.

  • For a NH entitled to a non-covered pension, see RS 00605.360.


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RS 00605.015 - 1978 New Start (NS) Computation Method (Average Indexed Monthly Earnings (AIME)) Primary Insurance Amount (PIA) - 04/10/2012
Batch run: 04/10/2012
Rev:04/10/2012