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:
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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:
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$188,314.80 divided by 276 = |
$682.30 or |
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$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:
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$682.00 - 180.00 $502.00×32%
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= $160.64+162.00
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$ 322.64 or $322.70 basic AIME PIA
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Step 4:
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add COL increases
since COL increases were due for 1979-1982, the basic PIA must be increased:
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|
|
6/79 |
$322.70×109.9% |
= 354.647 or $354.70 (rounded up)
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6/80 |
$354.70×114.3% |
= $405.422 or $405.50 (rounded up)
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6/81 |
$405.50×111.2% |
= $450.916 or $451.00 (rounded up)
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6/82 |
$451.00×107.4% |
= $484.374 or $484.30 (rounded down)
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Thus the payment PIA in 9/82 will be $484.30.
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