RIB with Entitlement After Benchmark Year
Lorraine Staley, dob 9/24/17, filed for and became entitled to RIB in 9/82. Their
benchmark year is 1979, the year they attained age 62. There were COL increases each
June beginning in 1979. Their 9/82 PIA was computed as follows:
Step 1:

Index earnings for 1951 through 1977
Step 2:

Compute an AIME
Their computation years are 23 (276 divisor months)
A review of their ER after indexing shows that earnings in the 23 highest base years
total $188,134.80 so the AIME is:
$188,314.80 divided by 276 = 
$682.30 or 

$682 AIME 
Step 3:

Compute the AIME PIA
The benchmark year was 1979. The AIME of $682 is between $180 and $1,085, so the basic
AIME PIA is:
$682.00  180.00
$502.00×32%

= $160.64+162.00


$ 322.64 or $322.70
basic AIME PIA

Step 4:

add COL increases
since COL increases were due for 19791982, the basic PIA must be increased:
6/79 
$322.70×109.9% 
= 354.647 or
$354.70
(rounded up)

6/80 
$354.70×114.3% 
= $405.422 or
$405.50
(rounded up)

6/81 
$405.50×111.2% 
= $450.916 or
$451.00
(rounded up)

6/82 
$451.00×107.4% 
= $484.374 or
$484.30
(rounded down)

Thus the payment PIA in 9/82 will be $484.30.
