We base Social Security benefits on the monthly average of a worker's lifetime earnings.
We split the average monthly earnings into portions and multiply each portion by a
constant percentage. For more information about the computation of the PIA, see RS 00605.021.
In the basic formula for figuring the retirement or disability PIA, we multiply the
average monthly earnings according to the following:
Multiply the first part of the average earnings by 90 percent;
The second part of the average earnings by 32 percent; and
Any part of the remaining average monthly earnings, multiply by 15 percent.
For the WEP PIA calculation, for workers who reach 62 or become disabled in 1990 or
later, we replace only the 90 percent factor by a factor ranging from 85 to 40 percent,
depending on the number of substantial earnings years or YOCs the NH has. For information
about substantial earnings or YOCs, see RS 00605.362A.
For workers who reached age 62 or became disabled between 1986 and 1989, see RS 00605.360E.
For more information about computing the WEP PIA, see RS 00605.369.