Effective Dates: 04/01/2013 - Present Previous | Next

TN 1 (11-00)

RM 01310.016 How We Derive the Data for Retirement Benefit Estimates

A. Introduction

This section is limited to an explanation of how the system derives certain information used to provide the retirement benefit estimates in the Social Security Statement.

B. Policy

Policies covering these data are found in RM 01310.005C.

C. Process — Deriving Earnings Credits

Statement 2001 uses the following earnings information to derive the number of credits the SSN holder has earned:

  • •

    the greater of the 1947 through 1950 Quarters of Coverage (QC) total indicated on the Master Earnings File (MEF), and the “deemed” QCs derived for the period 1937 through 1950.

  • •

    the earnings indicated on the MEF after 1950 from:

    regular employment

    agricultural employment,

    self-employment,

    military wages (after 1956), and

    the earnings records for all the electronically verified SSNs provided by the requester or located by the system.

  • •

    the railroad service indicated on the railroad earnings file (if less than 120 service months), and

  • •

    for on-request Statements, the earnings amounts provided for this year and last year on the incoming request. (For automatic Statements , the system uses postings in the last two closed tax years to determine credits for the lag years (see RM 01310.005.))

To derive Medicare credits the system uses both Social Security-covered and Medicare-qualified government earnings (MQGE), but it does not use MQGE earnings to derive Social Security credits.

D. Process — Computation Date of Birth

1. Definition

Computation date of birth is the date of birth the system uses to derive the individual"s:

  • •

    current age,

  • •

    reduced retirement age, and

  • •

    the age the individual is eligible for full retirement benefits.

2. How the System Derives the Computation Date of Birth

This is how the system derives the computation date of birth:

When the date of birth on the incoming request is...

Then, the system makes the computation date of birth...

02/01/YY

01/31/YY

03/01/YY

02/28(9)/YY

04/01/YY

03/30/YY

05/01/YY

04/30/YY

06/01/YY

05/31/YY

07/01/YY

06/30/YY

08/01/YY

07/31/YY

09/01/YY

08/31/YY

10/01/YY

09/30/YY

11/01/YY

10/31/YY

12/01/YY

11/30/YY

01/01/YY

The last day of the prior month and the prior year.

Other

Input date of birth

E. Process — Reduced Retirement Age

1. Definition

Reduced retirement age is the age up to which the system projects earnings in order to derive the reduced retirement benefit estimate.

2. How the System Determines the Reduced Retirement Age

This is how the system determines the reduced retirement age:

When the age the individual plans to retire is...

And the current age is...

Then the reduced retirement age is...

not provided on the incoming request (This rule also applies to all automatic statements) ,

  • •

    equal or greater than 62

  • •

    less than 62

the current age

age 62

equal or greater than the full retirement age,
  • •

    equal or greater than 62

  • •

    less than 62

the current age

age 62

equal or greater than 62 (but less than full retirement age), and

  • •

    equal or greater than the current age

  • •

    less than the current age less than 62, and

  • •

    equal or greater than the current age

  • •

    less than the current age

N/A

N/A

N/A

N/A

the age provided on the incoming request

the current age

age 62

age 62

F. Process — Full Retirement Age

1. Definition

Full retirement age is the age up to which earnings are projected in order to derive the full retirement benefit estimate.

2. How the System Determines the Full Retirement Age

This is how the system determines the full retirement age:

When computation date of birth is..

Then, the full retirement age is...

MM/DD/37 or earlier

65 years of age

MM/DD/38

65 years and 2 months of age

MM/DD/39

65 years and 4 months of age

MM/DD/40

65 years and 6 months of age

MM/DD/41

65 years and 8 months of age

MM/DD/42

65 years and 10 months of age

MM/DD/43 - MM/DD/54

66 years of age

MM/DD/55

66 years and 2 months of age

MM/DD/56

66 years and 4 months of age

MM/DD/57

66 years and 6 months of age

MM/DD/58

66 years and 8 months of age

MM/DD/59

66 years and 10 months of age

MM/DD/60 and later

67 years of age

G. Reference

RS 00301.200 Rules for credits

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0101310016
RM 01310.016 - How We Derive the Data for Retirement Benefit Estimates - 04/01/2013
Batch run: 03/29/2017
Rev:04/01/2013