CALCULATING THE RETIREMENT BENEFIT (1 OF 3)
01.Core Concepts
Calculate the Worker’s Average Indexed Monthly Earnings (AIME) • Convert earnings after age 21 to current dollars using an indexing factor • Sum the highest 35 years • Divide sum by 420 months 17 CALCULATING THE RETIREMENT BENEFIT (2 OF 3) Calculate the Worker’s Primary Insurance Amount (PIA) • Sum of three separate percentages of the AIME • 90% of the first $1,226 (2025) • 32% of the AIME over $1,226 and less than $7,391 (2025) • 15% of the AIME that exceeds $7,391 (2025) • Maximum PIA = $4,018 (2025)