Basic (11-81)
4300. ESTIMATING BENEFIT ACTIONS
The amount of benefits payable on a person's earnings record is generally based on
his average monthly earnings in work covered by the Social Security Act. In most cases,
benefits are figured on earnings beginning with January 1, 1951. However, if including
earnings before that date will give a higher benefit, the average is figured beginning
with January 1, 1937.
A table showing some examples of monthly payments is given in the enclosed publication.**
4301. HOW BENEFITS ARE COMPUTED
A person's benefit amount is generally based on his average earnings in work covered
by the program. This average is based on the total earnings in all but five lowest
earnings years after (a)
1936, (b) 1950 up to the year he (c) is
62, (d) dies . The total earnings used from this period are divided by the number of months in
the same period to determine the average monthly earnings. The resulting average monthly
figure is converted directly to the person's benefit amount through a table contained
in the Social Security Act.
4302. ELIGIBLE AT AGE 62
Based on the birthdate you have given us (a) , you will be eligible for retirement benefits in (b) , the month you reach age 62. Because of possible changes in the social security
law and additional earnings which may be credited to your earnings record, we are
unable to give you an accurate figure concerning the monthly benefit for which you
may be eligible when you are age 62. The enclosed publication will help you estimate
your benefit amount.**
4305. SPECIAL MINIMUM BENEFIT
A special minimum benefit ranging from $ to $ a month may be payable to people who worked for many years at relatively low earnings
in employment covered by the social security program. If a worker has credit for 23
“years of coverage” under the program, his benefits would be $ a month under this provision. His benefit will be increased by $ monthly for each additional year of coverage. The highest payment under this provision
is $ a month, which is payable to workers who has 30 years of coverage. This method of
figuring benefits is used only if a higher payment results.
NOTE TO CORRESPONDENT: The 1977 amendments
provide that effective January 1979, the dollar amount used to compute
the special minimum PIA is increased from $9 to $11.50. (See updated
table of special minimum PIAs for current information.)
**NOTE TO TYPIST: Enclose SSA publication
No. 76-10047 (or current revision).