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Notes

20 C.F.R. §§ 404.201–404.204

4 sections in range

§404.201. What is included in this subpart?

20 C.F.R. § 404.201

In this subpart we describe how we compute your primary insurance amount (PIA), how and when we will recalculate or recompute your PIA to include credit for additional earnings, and how we automatically adjust your PIA to reflect changes in the cost of living.
(a)
What is my primary insurance amount? Your primary insurance amount (PIA) is the basic figure we use to determine the monthly benefit amount payable to you and your family. For example, if you retire in the month you attain full retirement age (as defined in § 404.409) or if you become disabled, you will be entitled to a monthly benefit equal to your PIA. If you retire prior to full retirement age your monthly benefit will be reduced as explained in §§ 404.410-404.413. Benefits to other members of your family are a specified percentage of your PIA as explained in subpart D. Total benefits to your family are subject to a maximum as explained in § 404.403.
(b)
How is this subpart organized?
(1)
In §§ 404.201 through 404.204, we explain some introductory matters.
(2)
In §§ 404.210 through 404.213, we describe the average-indexed-monthly-earnings method we use to compute the primary insurance amount (PIA) for workers who attain age 62 (or become disabled or die before age 62) after 1978.
(3)
In §§ 404.220 through 404.222, we describe the average-monthly-wage method we use to compute the PIA for workers who attain age 62 (or become disabled or die before age 62) before 1979.
(4)
In §§ 404.230 through 404.233, we describe the guaranteed alternative method we use to compute the PIA for people who attain age 62 after 1978 but before 1984.
(5)
In §§ 404.240 through 404.243, we describe the old-start method we use to compute the PIA for those who had all or substantially all of their social security covered earnings before 1951.
(6)
In §§ 404.250 through 404.252, we describe special rules we use to compute the PIA for a worker who previously had a period of disability.
(7)
In §§ 404.260 through 404.261, we describe how we compute the special minimum PIA for long-term, low-paid workers.
(8)
In §§ 404.270 through 404.278, we describe how we automatically increase your PIA because of increases in the cost of living.
(9)
In §§ 404.280 through 404.288, we describe how and when we will recompute your PIA to include additional earnings which were not used in the original computation.
(10)
In § 404.290 we describe how and when we will recalculate your PIA.
(11)
Appendices I-VII contain material such as figures and formulas that we use to compute PIAs.
Notes, amendments, and revision history

Amendments

[68 FR 4701, Jan. 30, 2003]

Authority

Authority: Secs. 202(a), 205(a), 215, and 702(a)(5) of the Social Security Act (42 U.S.C. 402(a), 405(a), 415, and 902(a)(5)).

Source

Source: 47 FR 30734, July 15, 1982, unless otherwise noted.

Amendments

[68 FR 4701, Jan. 30, 2003]

§404.202. Other regulations related to this subpart.

20 C.F.R. § 404.202

This subpart is related to several others. In subpart B of this part, we describe how you become insured for social security benefits as a result of your work in covered employment. In subpart D, we discuss the different kinds of social security benefits available—old-age and disability benefits for you and benefits for your dependents and survivors—the amount of the benefits, and the requirements you and your family must meet to qualify for them; your work status, your age, the size of your family, and other factors may affect the amount of the benefits for you and your family. Rules relating to deductions, reductions, and nonpayment of benefits we describe in subpart E. In subpart F of this part, we describe what we do when a recalculation or recomputation of your primary insurance amount (as described in this subpart) results in our finding that you and your family have been overpaid or underpaid. In subparts G and H of this part, we tell how to apply for benefits and what evidence is needed to establish entitlement to them. In subpart J of this part, we describe how benefits are paid. Then in subparts I, K, N, and O of this part, we discuss your earnings that are taxable and creditable for social security purposes (and how we keep records of them), and deemed military wage credits which may be used in finding your primary insurance amount.
Notes, amendments, and revision history

Authority

Authority: Secs. 202(a), 205(a), 215, and 702(a)(5) of the Social Security Act (42 U.S.C. 402(a), 405(a), 415, and 902(a)(5)).

Source

Source: 47 FR 30734, July 15, 1982, unless otherwise noted.

§404.203. Definitions.

20 C.F.R. § 404.203

(a)
General definitions. As used in this subpart—

Ad hoc increase in primary insurance amounts means an increase in primary insurance amounts enacted by the Congress and signed into law by the President.

Entitled means that a person has applied for benefits and has proven his or her right to them for a given period of time.

We, us, or our means the Social Security Administration.

You or your means the insured worker who has applied for benefits or a deceased insured worker on whose social security earnings record someone else has applied.

(b)
Other definitions. To make it easier to find them, we have placed other definitions in the sections of this subpart in which they are used.
Notes, amendments, and revision history

Amendments

[47 FR 30734, July 15, 1982, as amended at 62 FR 38450, July 18, 1997]

Authority

Authority: Secs. 202(a), 205(a), 215, and 702(a)(5) of the Social Security Act (42 U.S.C. 402(a), 405(a), 415, and 902(a)(5)).

Source

Source: 47 FR 30734, July 15, 1982, unless otherwise noted.

Amendments

[47 FR 30734, July 15, 1982, as amended at 62 FR 38450, July 18, 1997]

§404.204. Methods of computing primary insurance amounts—general.

20 C.F.R. § 404.204

(a)
General. We compute most workers' primary insurance amounts under one of two major methods. There are, in addition, several special methods of computing primary insurance amounts which we apply to some workers. Your primary insurance amount is the highest of all those computed under the methods for which you are eligible.
(b)
Major methods.
(1)
If after 1978 you reach age 62, or become disabled or die before age 62, we compute your primary insurance amount under what we call the average-indexed-monthly-earnings method, which is described in §§ 404.210 through 404.212. The earliest of the three dates determines the computation method we use.
(2)
If before 1979 you reached age 62, became disabled, or died, we compute your primary insurance amount under what we call the average-monthly-wage method, described in §§ 404.220 through 404.222.
(c)
Special methods.
(1)
Your primary insurance amount, computed under any of the special methods for which you are eligible as described in this paragraph, may be substituted for your primary insurance amount computed under either major method described in paragraph (b) of this section.
(2)
If you reach age 62 during the period 1979-1983, your primary insurance amount is guaranteed to be the highest of—
(i)
The primary insurance amount we compute for you under the average-indexed-monthly-earnings method;
(ii)
The primary insurance amount we compute for you under the average-monthly-wage method, as modified by the rules described in §§ 404.230 through 404.233; or
(iii)
The primary insurance amount computed under what we call the old-start method; as described in §§ 404.240 through 404.242.
(3)
If you had all or substantially all of your social security earnings before 1951, we will also compute your primary insurance amount under what we call the old-start method.
(4)
We compute your primary insurance amount under the rules in §§ 404.250 through 404.252, if—
(i)
You were disabled and received social security disability insurance benefits sometime in your life;
(ii)
Your disability insurance benefits were terminated because of your recovery or because you engaged in substantial gainful activity; and
(iii)
You are, after 1978, re-entitled to disability insurance benefits, or entitled to old-age insurance benefits, or have died.
(5)
In some situations, we use what we call a special minimum computation, described in §§ 404.260 through 404.261, to find your primary insurance amount. Computations under this method reflect long-term, low-wage attachment to covered work.
Notes, amendments, and revision history

Authority

Authority: Secs. 202(a), 205(a), 215, and 702(a)(5) of the Social Security Act (42 U.S.C. 402(a), 405(a), 415, and 902(a)(5)).

Source

Source: 47 FR 30734, July 15, 1982, unless otherwise noted.