Annual Statistical Supplement, 2003
 

History of OASDI Benefit Computation and Automatic Adjustment

Table 2.A8
Factors for indexing earnings, 1951–2003
Year Annual
maximum
taxable
earnings
(dollars)		 Average
annual
wage a
(dollars)		 Factors for workers who were first eligible
(attained age 62, became disabled, or died) in b—
1990 1991 1992 1993 1994 1995 1996
1951 3,600 2,799.16 6.9070864 7.1805649 7.5122465 7.7921948 8.1936795 8.2641471 8.4859494
1952 3,600 2,973.32 6.5025090 6.7599687 7.0722223 7.3357728 7.7137409 7.7800809 7.9888912
1953 3,600 3,139.44 6.1584359 6.4022724 6.6980035 6.9476085 7.3055768 7.3684065 7.5661679
1954 3,600 3,155.64 6.1268205 6.3694053 6.6636182 6.9119418 7.2680724 7.3305795 7.5273257
1955 4,200 3,301.44 5.8562445 6.0881161 6.3693358 6.6066928 6.9470958 7.0068425 7.1948998
1956 4,200 3,532.36 5.4734059 5.6901194 5.9529550 6.1747953 6.4929452 6.5487861 6.7245496
1957 4,200 3,641.72 5.3090408 5.5192464 5.7741891 5.9893677 6.2979636 6.3521276 6.5226129
1958 4,200 3,673.80 5.2626817 5.4710518 5.7237683 5.9370679 6.2429691 6.2966601 6.4656568
1959 4,800 3,855.80 5.0142746 5.2128093 5.4535972 5.6568287 5.9482909 5.9994476 6.1604673
1960 4,800 4,007.12 4.8249216 5.0159591 5.2476542 5.4432111 5.7236669 5.7728918 5.9278310
1961 4,800 4,086.76 4.7308968 4.9182115 5.1453915 5.3371375 5.6121279 5.6603936 5.8123134
1962 4,800 4,291.40 4.5052990 4.6836813 4.9000280 5.0826304 5.3445076 5.3904716 5.5351470
1963 4,800 4,396.64 4.3974581 4.5715706 4.7827386 4.9609702 5.2165790 5.2614428 5.4026552
1964 4,800 4,576.32 4.2248007 4.3920770 4.5949540 4.7661877 5.0117605 5.0548629 5.1905308
1965 4,800 4,658.72 4.1500756 4.3143932 4.5136819 4.6818869 4.9231162 4.9654562 5.0987245
1966 6,600 4,938.36 3.9150730 4.0700860 4.2580897 4.4167699 4.6443394 4.6842818 4.8100037
1967 6,600 5,213.44 3.7084996 3.8553335 4.0334175 4.1837251 4.3992872 4.4371221 4.5562105
1968 7,800 5,571.76 3.4700059 3.6073969 3.7740283 3.9146697 4.1163690 4.1517707 4.2632005
1969 7,800 5,893.76 3.2804254 3.4103102 3.5678378 3.7007954 3.8914751 3.9249427 4.0302846
1970 7,800 6,186.24 3.1253298 3.2490738 3.3991536 3.5258251 3.7074895 3.7393748 3.8397363
1971 7,800 6,497.08 2.9758045 3.0936282 3.2365278 3.3571389 3.5301120 3.5604718 3.6560316
1972 9,000 7,133.80 2.7102021 2.8175096 2.9476548 3.0575009 3.2150355 3.2426855 3.3297163
1973 10,800 7,580.16 2.5506111 2.6515997 2.7740813 2.8774591 3.0257171 3.0517390 3.1336449
1974 13,200 8,030.76 2.4074982 2.5028204 2.6184296 2.7160070 2.8559464 2.8805082 2.9578184
1975 14,100 8,630.92 2.2400903 2.3287842 2.4363544 2.5271466 2.6573552 2.6802091 2.7521435
1976 15,300 9,226.48 2.0954947 2.1784635 2.2790902 2.3640218 2.4858256 2.5072043 2.5744954
1977 16,500 9,779.44 1.9770089 2.0552864 2.1502233 2.2303527 2.3452693 2.3654391 2.4289254
1978 17,700 10,556.03 1.8315636 1.9040823 1.9920349 2.0662692 2.1727316 2.1914176 2.2502333
1979 22,900 11,479.46 1.6842290 1.7509142 1.8317917 1.9000545 1.9979529 2.0151357 2.0692202
1980 25,900 12,513.46 1.5450595 1.6062344 1.6804289 1.7430511 1.8328600 1.8486230 1.8982384
1981 29,700 13,773.10 1.4037537 1.4593338 1.5267427 1.5836377 1.6652330 1.6795543 1.7246321
1982 32,400 14,531.34 1.3305063 1.3831863 1.4470778 1.5010040 1.5783417 1.5919158 1.6346414
1983 35,700 15,239.24 1.2687011 1.3189339 1.3798575 1.4312787 1.5050239 1.5179674 1.5587083
1984 37,800 16,135.07 1.1982619 1.2457058 1.3032469 1.3518132 1.4214639 1.4336889 1.4721678
1985 39,600 16,822.51 1.1492958 1.1948009 1.2499906 1.2965723 1.3633768 1.3751022 1.4120087
1986 42,000 17,321.82 1.1161668 1.1603602 1.2139590 1.2591979 1.3240768 1.3354642 1.3713068
1987 43,800 18,426.51 1.0492513 1.0907953 1.1411808 1.1837076 1.2446969 1.2554016 1.2890954
1988 45,000 19,334.04 1.0000000 1.0395939 1.0876144 1.1281450 1.1862715 1.1964737 1.2285860
1989 48,000 20,099.55 1.0000000 1.0000000 1.0461916 1.0851785 1.1410912 1.1509049 1.1817941
1990 51,300 21,027.98 1.0000000 1.0000000 1.0000000 1.0372656 1.0907096 1.1000900 1.1296154
1991 53,400 21,811.60 1.0000000 1.0000000 1.0000000 1.0000000 1.0515240 1.0605673 1.0890320
1992 55,500 22,935.42 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0086002 1.0356702
1993 57,600 23,132.67 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0268391
1994 60,600 23,753.53 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
1995 61,200 24,705.66 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
1996 62,700 25,913.90 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
1997 65,400 27,426.00 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
1998 68,400 28,861.44 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
1999 72,600 30,469.84 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
2000 76,200 32,154.82 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
2001 80,400 32,921.92 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
2002 84,900 . . . 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
2003 87,000 . . . 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
(Continued)
Table 2.A8
Continued
Year Annual
maximum
taxable
earnings
(dollars)		 Average
annual
wage a
(dollars)		 Factors for workers who were first eligible
(attained age 62, became disabled, or died) in b—
1997 1998 1999 2000 2001 2002 2003
1951 3,600 2,799.16 8.8260978 9.2577416 9.7979394 10.3107504 10.8853513 11.4873105 11.7613570
1952 3,600 2,973.32 8.3091157 8.7154763 9.2240324 9.7068059 10.2477500 10.8144498 11.0724443
1953 3,600 3,139.44 7.8694481 8.2543065 8.7359529 9.1931809 9.7055016 10.2422152 10.4865581
1954 3,600 3,155.64 7.8290489 8.2119317 8.6911054 9.1459862 9.6556768 10.1896351 10.4327236
1955 4,200 3,301.44 7.4832982 7.8492718 8.3072841 8.7420762 9.2292575 9.7396348 9.9719880
1956 4,200 3,532.36 6.9940946 7.3361435 7.7642143 8.1705828 8.6259158 9.1029284 9.3200919
1957 4,200 3,641.72 6.7840636 7.1158409 7.5310568 7.9252221 8.3668816 8.8295695 9.0402118
1958 4,200 3,673.80 6.7248244 7.0537046 7.4652948 7.8560183 8.2938211 8.7524688 8.9612717
1959 4,800 3,855.80 6.4074018 6.7207583 7.1129208 7.4852015 7.9023393 8.3393381 8.5382852
1960 4,800 4,007.12 6.1654405 6.4669638 6.8443171 7.2025395 7.6039250 8.0244215 8.2158558
1961 4,800 4,086.76 6.0452926 6.3409400 6.7109397 7.0621813 7.4557449 7.8680471 8.0557508
1962 4,800 4,291.40 5.7570164 6.0385655 6.3909214 6.7254136 7.1002097 7.4928508 7.6716037
1963 4,800 4,396.64 5.6192138 5.8940236 6.2379453 6.5644310 6.9302558 7.3134985 7.4879726
1964 4,800 4,576.32 5.3985866 5.6626066 5.9930250 6.3066918 6.6581533 7.0263487 7.1939724
1965 4,800 4,658.72 5.3031004 5.5624506 5.8870248 6.1951437 6.5403888 6.9020718 7.0667308
1966 6,600 4,938.36 5.0028066 5.2474708 5.5536656 5.8443370 6.1700322 6.5112345 6.6665695
1967 6,600 5,213.44 4.7388404 4.9705952 5.2606341 5.5359686 5.8444789 6.1676782 6.3148171
1968 7,800 5,571.76 4.4340855 4.6509361 4.9223226 5.1799503 5.4686203 5.7710346 5.9087111
1969 7,800 5,893.76 4.1918334 4.3968367 4.6533961 4.8969486 5.1698474 5.4557396 5.5858942
1970 7,800 6,186.24 3.9936472 4.1889581 4.4333876 4.6654252 4.9254216 5.1977970 5.3217981
1971 7,800 6,497.08 3.8025790 3.9885456 4.2212809 4.4422171 4.6897745 4.9491187 5.0671871
1972 9,000 7,133.80 3.4631837 3.6325521 3.8445148 4.0457316 4.2711935 4.5073902 4.6149205
1973 10,800 7,580.16 3.2592531 3.4186482 3.6181294 3.8074975 4.0196830 4.2419711 4.3431695
1974 13,200 8,030.76 3.0763788 3.2268303 3.4151189 3.5938616 3.7941415 4.0039573 4.0994775
1975 14,100 8,630.92 2.8624596 3.0024493 3.1776450 3.3439587 3.5303119 3.7255379 3.8144161
1976 15,300 9,226.48 2.6776907 2.8086443 2.9725312 3.1281095 3.3024339 3.4850582 3.5681994
1977 16,500 9,779.44 2.5262858 2.6498348 2.8044551 2.9512365 3.1157040 3.2880022 3.3664423
1978 17,700 10,556.03 2.3404310 2.4548907 2.5981359 2.7341188 2.8864867 3.0461092 3.1187786
1979 22,900 11,479.46 2.1521622 2.2574145 2.3891368 2.5141810 2.6542921 2.8010743 2.8678980
1980 25,900 12,513.46 1.9743268 2.0708821 2.1917200 2.3064316 2.4349652 2.5696186 2.6309206
1981 29,700 13,773.10 1.7937618 1.8814864 1.9912728 2.0954934 2.2122717 2.3346102 2.3903057
1982 32,400 14,531.34 1.7001639 1.7833111 1.8873690 1.9861513 2.0968362 2.2127911 2.2655805
1983 35,700 15,239.24 1.6211871 1.7004719 1.7996960 1.8938897 1.9994330 2.1100015 2.1603387
1984 37,800 16,135.07 1.5311777 1.6060606 1.6997757 1.7887397 1.8884232 1.9928528 2.0403952
1985 39,600 16,822.51 1.4686072 1.5404301 1.6303156 1.7156441 1.8112541 1.9114163 1.9570159
1986 42,000 17,321.82 1.4262739 1.4960264 1.5833209 1.6661898 1.7590438 1.8563188 1.9006040
1987 43,800 18,426.51 1.3407672 1.4063379 1.4883991 1.5662999 1.6535871 1.7450304 1.7866606
1988 45,000 19,334.04 1.2778323 1.3403251 1.4185344 1.4927785 1.5759686 1.6631196 1.7027957
1989 48,000 20,099.55 1.2291648 1.2892776 1.3645082 1.4359247 1.5159464 1.5997781 1.6379431
1990 51,300 21,027.98 1.1748946 1.2323533 1.3042622 1.3725256 1.4490141 1.5291445 1.5656245
1991 53,400 21,811.60 1.1326844 1.1880788 1.2574043 1.3232152 1.3969557 1.4742073 1.5093767
1992 55,500 22,935.42 1.0771837 1.1298638 1.1957924 1.2583785 1.3285059 1.4019721 1.4354182
1993 57,600 23,132.67 1.0679986 1.1202295 1.1855960 1.2476485 1.3171778 1.3900177 1.4231786
1994 60,600 23,753.53 1.0400837 1.0909494 1.1546073 1.2150379 1.2827500 1.3536860 1.3859801
1995 61,200 24,705.66 1.0000000 1.0489054 1.1101100 1.1682117 1.2333141 1.3015163 1.3325659
1996 62,700 25,913.90 1.0000000 1.0000000 1.0583509 1.1137436 1.1758107 1.2408329 1.2704348
1997 65,400 27,426.00 1.0000000 1.0000000 1.0000000 1.0523387 1.1109837 1.1724211 1.2003909
1998 68,400 28,861.44 1.0000000 1.0000000 1.0000000 1.0000000 1.0557283 1.1141100 1.1406888
1999 72,600 30,469.84 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0552999 1.0804756
2000 76,200 32,154.82 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0238565
2001 80,400 32,921.92 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
2002 84,900 . . . 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
2003 87,000 . . . 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
a. National average wage levels. For years before 1978, average wages were determined from wages earned during the first quarter of the year and reported to the Social Security Administration (SSA) for Social Security tax purposes. These wages were then multiplied by 4 to obtain the average wage for the year. For 1973–1977, from data collected on all taxable wages reported to SSA; for 1957–1972, based on 1 percent statistical sample; for 1951–1956, based on 1/10 of 1 percent statistical sample. For 1978–1984, from wage data collected by the Internal Revenue Service during processing of annual tax returns. For years after 1984, from W-2 data processed by SSA. For years after 1977, the average wage amounts have been adjusted to be consistent with the pre-1978 series.
b. The indexing factor for a given year represents the ratio of the average annual wage for the second year before the year of first eligibility to the average annual wage for the year to be indexed. Multiplying a worker's covered earnings, up to the maximum taxable amounts for various years after 1951, by the indicated factors gives the indexed earnings. Earnings in the year before the year of first eligibility, and any earnings thereafter, are not indexed. The actual taxable earnings for those years are considered in calculating the average indexed monthly earnings (AIME).
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2003," Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTE: . . . = not available.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.
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Table 2.A9
Indexed earnings for workers with maximum earnings, 1951–2003 (in dollars)
Year Annual
maximum
taxable
earnings		 Average
annual
wage a		 Annual maximum indexed earnings for workers who were first eligible
(attained age 62, became disabled, or died) in b—
1996 1997 1998 1999 2000 2001 2002 2003
1951 3,600 2,799.16 30,549.42 31,773.95 33,327.87 35,272.58 37,118.70 39,187.26 41,354.32 42,340.89
1952 3,600 2,973.32 28,760.01 29,912.82 31,375.71 33,206.52 34,944.50 36,891.90 38,932.02 39,860.80
1953 3,600 3,139.44 27,238.20 28,330.01 29,715.50 31,449.43 33,095.45 34,939.81 36,871.97 37,751.61
1954 3,600 3,155.64 27,098.37 28,184.58 29,562.95 31,287.98 32,925.55 34,760.44 36,682.69 37,557.81
1955 4,200 3,301.44 30,218.58 31,429.85 32,966.94 34,890.59 36,716.72 38,762.88 40,906.47 41,882.35
1956 4,200 3,532.36 28,243.11 29,375.20 30,811.80 32,609.70 34,316.45 36,228.85 38,232.30 39,144.39
1957 4,200 3,641.72 27,394.97 28,493.07 29,886.53 31,630.44 33,285.93 35,140.90 37,084.19 37,968.89
1958 4,200 3,673.80 27,155.76 28,244.26 29,625.56 31,354.24 32,995.28 34,834.05 36,760.37 37,637.34
1959 4,800 3,855.80 29,570.24 30,755.53 32,259.64 34,142.02 35,928.97 37,931.23 40,028.82 40,983.77
1960 4,800 4,007.12 28,453.59 29,594.11 31,041.43 32,852.72 34,572.19 36,498.84 38,517.22 39,436.11
1961 4,800 4,086.76 27,899.10 29,017.40 30,436.51 32,212.51 33,898.47 35,787.58 37,766.63 38,667.60
1962 4,800 4,291.40 26,568.71 27,633.68 28,985.11 30,676.42 32,281.99 34,081.01 35,965.68 36,823.70
1963 4,800 4,396.64 25,932.75 26,972.23 28,291.31 29,942.14 31,509.27 33,265.23 35,104.79 35,942.27
1964 4,800 4,576.32 24,914.55 25,913.22 27,180.51 28,766.52 30,272.12 31,959.14 33,726.47 34,531.07
1965 4,800 4,658.72 24,473.88 25,454.88 26,699.76 28,257.72 29,736.69 31,393.87 33,129.94 33,920.31
1966 6,600 4,938.36 31,746.02 33,018.52 34,633.31 36,654.19 38,572.62 40,722.21 42,974.15 43,999.36
1967 6,600 5,213.44 30,070.99 31,276.35 32,805.93 34,720.18 36,537.39 38,573.56 40,706.68 41,677.79
1968 7,800 5,571.76 33,252.96 34,585.87 36,277.30 38,394.12 40,403.61 42,655.24 45,014.07 46,087.95
1969 7,800 5,893.76 31,436.22 32,696.30 34,295.33 36,296.49 38,196.20 40,324.81 42,554.77 43,569.98
1970 7,800 6,186.24 29,949.94 31,150.45 32,673.87 34,580.42 36,390.32 38,418.29 40,542.82 41,510.02
1971 7,800 6,497.08 28,517.05 29,660.12 31,110.66 32,925.99 34,649.29 36,580.24 38,603.13 39,524.06
1972 9,000 7,133.80 29,967.45 31,168.65 32,692.97 34,600.63 36,411.58 38,440.74 40,566.51 41,534.28
1973 10,800 7,580.16 33,843.37 35,199.93 36,921.40 39,075.80 41,120.97 43,412.58 45,813.29 46,906.23
1974 13,200 8,030.76 39,043.20 40,608.20 42,594.16 45,079.57 47,438.97 50,082.67 52,852.24 54,113.10
1975 14,100 8,630.92 38,805.22 40,360.68 42,334.54 44,804.79 47,149.82 49,777.40 52,530.09 53,783.27
1976 15,300 9,226.48 39,389.78 40,968.67 42,972.26 45,479.73 47,860.08 50,527.24 53,321.39 54,593.45
1977 16,500 9,779.44 40,077.27 41,683.72 43,722.27 46,273.51 48,695.40 51,409.12 54,252.04 55,546.30
1978 17,700 10,556.03 39,829.13 41,425.63 43,451.57 45,987.00 48,393.90 51,090.81 53,916.13 55,202.38
1979 22,900 11,479.46 47,385.14 49,284.51 51,694.79 54,711.23 57,574.74 60,783.29 64,144.60 65,674.86
1980 25,900 12,513.46 49,164.37 51,135.07 53,635.85 56,765.55 59,736.58 63,065.60 66.553.12 68,140.84
1981 29,700 13,773.10 51,221.57 53,274.72 55,880.15 59,140.80 62,236.15 65,704.47 69,337.92 70,992.08
1982 32,400 14,531.34 52,962.38 55,085.31 57,779.28 61,150.75 64,351.30 67,937.49 71,694.43 73,404.81
1983 35,700 15,239.24 55,645.89 57,876.38 60,706.85 64,249.15 67,611.86 71,379.76 75,327.06 77,124.09
1984 37,800 16,135.07 55,647.94 57,878.52 60,709.09 64,251.52 67,614.36 71,382.40 75,329.84 77,126.94
1985 39,600 16,822.51 55,915.54 58,156.85 61,001.03 64,560.50 67,939.51 71,725.66 75,692.09 77,497.83
1986 42,000 17,321.82 57,594.89 59,903.50 62,833.11 66,499.48 69,979.97 73,879.84 77,965.39 79,825.37
1987 43,800 18,426.51 56,462.38 58,725.60 61,597.60 65,191.88 68,603.93 72,427.12 76,432.33 78,255.74
1988 45,000 19,334.04 55,286.37 57,502.45 60,314.63 63,834.05 67,175.03 70,918.59 74,840.38 76,625.81
1989 48,000 20,099.55 56,726.12 58,999.91 61,885.33 65,496.39 68,924.38 72,765.43 76,789.35 78,621.27
1990 51,300 21,027.98 57,949.27 60,272.09 63,219.72 66,908.65 70,410.56 74,334.42 78,445.11 80,316.54
1991 53,400 21,811.60 58,154.31 60,485.35 63,443.41 67,145.39 70,659.69 74,597.44 78,722.67 80,600.71
1992 55,500 22,935.42 57,479.69 59,783.69 62,707.44 66,366.48 69,840.01 73,732.08 77,809.45 79,665.71
1993 57,600 23,132.67 59,145.93 61,516.72 64,525.22 68,290.33 71,864.55 75,869.44 80,065.02 81,975.09
1994 60,600 23,753.53 60,600.00 63,029.07 66,111.54 69,969.20 73,631.30 77,734.65 82,033.37 83,990.39
1995 61,200 24,705.66 61,200.00 61,200.00 64,193.01 67,938.73 71,494.55 75,478.83 79,652.80 81,553.03
1996 62,700 25,913.90 62,700.00 62,700.00 62,700.00 66,358.60 69,831.72 73,723.33 77,800.22 79,656.26
1997 65,400 27,426.00 65,400.00 65,400.00 65,400.00 65,400.00 68,822.95 72,658.34 76,676.34 78,505.56
1998 68,400 28,861.44 68,400.00 68,400.00 68,400.00 68,400.00 68,400.00 72,211.82 76,205.13 78,023.11
1999 72,600 30,469.84 72,600.00 72,600.00 72,600.00 72,600.00 72,600.00 72,600.00 76,614.77 78,442.53
2000 76,200 32,154.82 76,200.00 76,200.00 76,200.00 76,200.00 76,200.00 76,200.00 76,200.00 78,017.86
2001 80,400 32,921.92 80,400.00 80,400.00 80,400.00 80,400.00 80,400.00 80,400.00 80,400.00 80,400.00
2002 84,900 . . . 84,900.00 84,900.00 84,900.00 84,900.00 84,900.00 84,900.00 84,900.00 84,900.00
2003 87,000 . . . 87,000.00 87,000.00 87,000.00 87,000.00 87,000.00 87,000.00 87,000.00 87,000.00
a. National average wage levels. For years before 1978, average wages were determined from wages earned during the first quarter of the year and reported to the Social Security Administration (SSA) for Social Security tax purposes. These wages were then multiplied by 4 to obtain the average wage for the year. For 1973–1977, from data collected on all taxable wages reported to SSA; for 1957–1972, based on 1–percent statistical sample; for 1951–1956, based on 1/10 of 1–percent statistical sample. For 1978–1984, from wage data collected by the Internal Revenue Service during processing of annual tax returns. For years after 1984, from W-2 data processed by SSA. For years after 1977, the average wage amounts have been adjusted to be consistent with the pre-1978 series.
b. A worker's earnings for each year after 1950 and through the second year before the year of first eligibility are indexed by multiplying covered earnings, up to the maximum taxable amounts, by specified indexing factors (see Table 2.A8). The indexing factor for a given year represents the ratio of the average annual wage for the second year before the year of first eligibility to the average annual wage for the year to be indexed. For example, if the year of first eligibility is 1999, the indexing factor for 1982 is $27,426.00 ÷ 14,531.34, or 1.8873690. Multiplication of maximum taxable earnings of $32,400 for 1982 by this factor gives maximum indexed earnings of $61,150.75 for 1982.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2003," Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTE: . . . = not available.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.
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Table 2.A10
Average monthly wage and average indexed monthly earnings provisions by year enacted
Year enacted Provision
Average monthly wage (AMW)
1939 Computed using creditable earnings after 1936 and before year of death or retirement, divided by months after 1936 and before quarter of death or retirement, excluding months before age 22 in quarters not covered.
1950 Alternatively, computed using creditable earnings after 1950 (or year aged 21, if later) and before year of death, year of retirement, or subsequent year (or year age 65 attained if then insured), divided by number of months in those years.
1954 Earnings and months in 4 years may be excluded in all cases; 5 years if worker has 20 quarters of coverage. Period of disability may be excluded.
1956 Earnings and months in 5 years may be excluded in all cases. Computation period may end at age 62 for women then insured.
1960 Earnings may be used for any year after 1950 and before year of retirement but including year of death, with the number of years equal to the years elapsed after 1955 (or year age 26 attained) and before year of death or age 65 attained (62 for women).
Same method may be used for earnings after 1936 and years elapsed after 1941.
1972 Number of years for men reaching age 62 after 1972, measured to age 62 or to 1975, if later.
1977 For workers who attain age 62, become disabled, or die after 1978, excludes earnings in year of attainment of age 62 and later, computed using creditable earnings after 1936.
For workers who attain age 62 after 1978 and before 1984, excludes earnings in year of attainment of age 62 and later, computed using creditable earnings after 1950.
Average indexed monthly earnings (AIME)
1977 For workers who attain age 62, become disabled, or die after 1978, AIME is computed by using indexed earnings after 1950 for the same computation period applicable in calculating the AMW. Indexed earnings for a given year equal actual creditable earnings multiplied by the national average wage for the second year before worker attains age 62, becomes disabled, or dies, divided by the national average wage for the given year, except that for years after the second year before the worker attains age 62, becomes disabled, or dies, indexed earnings equal actual creditable earnings.
1980 For disabled workers, the number of years of earnings used equals the number of years elapsed after 1950 (or year age 21 attained, if later) and before year of disability, minus dropout years equal to one-fifth of the number of elapsed years rounded to the next lower integer (to a maximum of 5 dropout years). However, the number of years of earnings used is at least 2. Effective for initial entitlement after June 1980.
Disabled workers who receive less than 3 dropout years under the one-fifth rule may be credited with additional dropout years based on child care, up to a total of 3 dropout years. (To receive this credit, a worker must have had no earnings in that year and have been living with a child under age 3.) However, the number of years of earnings used is at least 2. Effective for July 1981.
1983 For workers who die after 1978 but before attaining age 62, indexed earnings for a given year equal actual creditable earnings, multiplied by the national average wage for the earlier of (1) the year in which the worker reached or would have reached age 60 or (2) the second year before the survivor becomes eligible for aged or disabled widow(er) benefits, and then divided by the national average wage for the given year. This computation method applies only if it results in a higher benefit. Effective for surviving spouses newly eligible after 1984.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm).
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.
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Table 2.A11
Formulas for computing PIA from AIME, cost-of-living adjustments, and minimum PIA for workers who were first eligible in 1979 or later, by year of first eligibility
Eligibility year Calculation of PIA (based on percentage of AIME) a (dollars) First applicable cost-of-living adjustment Minimum PIA
based on indexed
earnings (dollars)
90 percent
of the first		 Plus 32 percent
of the next		 Plus 15 percent
of the amount above 		Effective
date		 Percentage
increase
Enacted in 1977 b
1979 180 905 1,085 June 1979 9.9 122 c
1980 194 977 1,171 June 1980 14.3 122 c
Enacted in 1981
1981 211 1,063 1,274 June 1981 11.2 122 c
1982 230 1,158 1,388 June 1982 7.4 d
Enacted in 1983
1983 254 1,274 1,528 December 1983 3.5 d
1984 267 1,345 1,612 December 1984 3.5 d
1985 280 1,411 1,691 December 1985 3.1 d
1986 297 1,493 1,790 December 1986 1.3 d
1987 310 1,556 1,866 December 1987 4.2 d
1988 319 1,603 1,922 December 1988 4.0 d
1989 339 1,705 2,044 December 1989 4.7 d
1990 356 1,789 2,145 December 1990 5.4 d
1991 370 1,860 2,230 December 1991 3.7 d
1992 387 1,946 2,333 December 1992 3.0 d
1993 401 2,019 2,420 December 1993 2.6 d
1994 422 2,123 2,545 December 1994 2.8 d
1995 426 2,141 2,567 December 1995 2.6 d
1996 437 2,198 2,635 December 1996 2.9 d
1997 455 2,286 2,741 December 1997 2.1 d
1998 477 2,398 2,875 December 1998 1.3 d
1999 505 2,538 3,043 December 1999 2.5 e d
2000 531 2,671 3,202 December 2000 3.5 d
2001 561 2,820 3,381 December 2001 2.6 d
2002 592 2,975 3,567 December 2002 1.4 d
2003 606 3,047 3,653 December 2003 . . . d
a. For workers who attained age 62 in the 1979–1983 period, the PIA cannot be less than that derived from the PIA table in effect in December 1978 (approximated by the PIA formula in Table 2.A16) based on provisions in effect before 1979 but excluding earnings after year aged 61 in computations of AMW and including any general benefit increase after year aged 61.
b. The 1977 amendments provided for annual automatic adjustments of bend points (AIME brackets) in benefit formula in proportion to increases in average wage level. As a result, separate formulas are applicable to workers who were first eligible in successive calendar years. The legislation also froze the minimum PIA at $122.
c. Not subject to automatic adjustments until earlier of year of attainment of age 65 or year of first receipt of benefits.
d. The minimum PIA was eliminated by 1981 legislation for workers who attain age 62 or die after 1981 (after 1991 for members of certain religious orders). August 1981 legislation would have eliminated the minimum PIA effective March 1982 for workers who attained age 62 before November 1981 or who died (before attaining age 62) before March 1982; for all others, the minimum would have been eliminated effective November 1981. This legislation was superseded by December 1981 legislation that restored the minimum PIA for workers who attained age 62 or died (before attaining age 62) before 1982.
e. The December 1999 cost-of-living adjustment (COLA) was originally determined to be 2.4 percent, based on the consumer price index (CPI). The underlying CPI was later recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to P.L. 106-554, benefits were calculated and paid in August 2001 and later as if the December 1999 COLA had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that occurred before August 2001.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2003," Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTES: Eligible workers are those who attained age 62, became disabled, or died in the given year.
. . . = not available.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.
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Table 2.A11.1
Computation of PIA based on Windfall Elimination Provision (WEP), by year enacted
Year effective Provision
Enacted in 1983
1986 Workers first eligible for pensions based on noncovered employment and disability or retired workers after December 31, 1985.a The benefit computation formula uses a reduced factor of the usual first AIME bend point.
Year
eligible		 Factor
(percent)
1986 80
1987 70
1988 60
1989 50
1990 and later 40
 
WEP is not applicable to persons who were federal employees or nonprofit employees on January 1, 1984, and who were covered by Social Security on that date with no Civil Service Retirement System coverage; to persons with Railroad Retirement pensions; or to workers with 30 years of substantial Social Security earnings. Workers with 26–29 years of coverage have less than full WEP applied.b For benefits payable before January 1989:
Years of
coverage		 Factor
(percent)
26 50
27 60
28 70
29 80
 
Enacted in 1988
1989 5 percent added to factor for each year of coverage over 20.
Years of
coverage		 Factor
(percent)
21 45
22 50
23 55
24 60
25 65
26 70
27 75
28 80
29 85
 
1991 Earnings required for a year of substantial coverage (decoupled from the definition of a year of coverage for special minimum PIA).b
Year Earnings
(dollars)
1991 9,900
1992 10,350
1993 10,725
1994 11,250
1995 11,325
1996 11,625
1997 12,150
1998 12,675
1999 13,425
2000 14,175
2001 14,925
2002 15,750
2003 16,125
 
a. Reduction in PIA will not be greater than one-half of the periodic payment based on noncovered employment performed after 1956.
b. See Table 2.A12. Before 1991, a year of substantial coverage for WEP was the same amount as for the minimum PIA (25 percent of the "old law" contribution and benefit base). For 1991 and following, a year of substantial coverage under WEP provisions remains 25 percent of the old law base, while the criterion for computing the special minimum PIA was changed to 15 percent of the base.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2003," Federal Register, vol. 67, no. 207 (October 25, 2002).
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.
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Table 2.A12
Special minimum PIA (formula applies to years of coverage), by year enacted
Year enacted Number of years of coverage PIA computation
1972 For 1937–1950, the number (disregarding any remainder and not exceeding 14) obtained by dividing total creditable wages in 1937–1950 by $900
Effective date Amount a per year of coverage over 10 years (dollars) Maximum amount a for workers with 30 or more years of coverage (dollars)
January 1973 8.50 170.00
 
After 1950, the number of years with creditable earnings equal to at least 25 percent of the effective annual maximum taxable earnings, that is:
Year Amount
(dollars)
1951–1954 900
1955–1958 1,050
1959–1965 1,200
1966–1967 1,650
1968–1971 1,950
1972 2,250
1973 2,700
1974 3,300
1975 3,525
1976 3,825
1977 4,125
1978 4,425
 
1973 . . .
Effective date Amount a per year of coverage over 10 years (dollars) Maximum amount a for workers with 30 or more years of coverage (dollars)
March 1974 9.00 180.00
 
1977 b After 1978, the number of years with creditable earnings equal to at least 25 percent of what the annual taxable maximum would have been if the statutory increases in the maximum under the 1977 amendments had not been enacted (the "old law" contribution and benefit base), that is:
Year Amount
(dollars)
1979 4,725
1980 5,100
1981 5,500
1982 6,075
1983 6,675
1984 7,050
1985 7,425
1986 7,875
1987 8,175
1988 8,400
1989 8,925
1990 9,525
 
Effective date Amount a per year of coverage over 10 years (dollars) Maximum amount a for workers with 30 or more years of coverage (dollars)
January 1979 11.50 230.00
June 1979 12.64 c 252.80
June 1980 14.45 c 289.00
June 1981 16.07 c 321.40
June 1982 17.26 c 345.10
December 1983 17.86 c 357.10
December 1984 18.49 c 369.50
December 1985 19.06 c 380.90
December 1986 19.31 c 385.80
December 1987 20.12 c 402.00
December 1988 20.92 c 418.00
December 1989 21.90 c 437.60
December 1990 23.08 c 461.20
December 1991 23.93 c 478.20
December 1992 24.65 c 492.50
December 1993 25.29 c 505.30
December 1994 26.00 c 519.40
December 1995 26.68 c 532.90
December 1996 27.45 c 548.30
December 1997 28.03 c 559.80
December 1998 28.39 c 567.00
December 1999 29.10 c,d 581.10 d
December 2000 30.12 c 601.40
December 2001 30.90 c 617.00
December 2002 31.33 c 625.60
 
1990 After 1990, the number of years with creditable earnings equal to at least 15 percent of what the annual taxable maximum would have been if the statutory increases in the maximum under the 1977 amendments had not been enacted (the "old law" contribution and benefit base), that is:
Year Amount
(dollars)
1991 5,940
1992 6,210
1993 6,435
1994 6,750
1995 6,795
1996 6,975
1997 7,290
1998 7,605
1999 8,055
2000 8,505
2001 8,955
2002 9,450
2003 9,675
 
. . .
a. The amount effective for a given month applies, as of that month, to all workers from the date of entitlement to benefits.
b. Provision for future automatic cost-of-living increases of amount per year of coverage (and maximum amount), beginning with the June 1979 increase.
c. Factors were obtained by applying cost-of-living increases to initial 1979 factor of $11.50 and rounding each one to nearest cent. An approximate PIA may be computed by multiplying factor in year of entitlement by the number of years of coverage in excess of 10 with a maximum of 20. Actual PIAs are published yearly in the Federal Register.
d. The December 1999 cost-of-living adjustment (COLA) was originally determined to be 2.4 percent, based on the consumer price index (CPI). The underlying CPI was later recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to P.L. 106-554, benefits were calculated and paid in August 2001 and later as if the December 1999 COLA had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that occurred before August 2001.
e. For 1991 and following, a year of substantial coverage under the Windfall Elimination Provision remains 25 percent of the old law base, while the criterion for the special minimum PIA was changed to 15 percent of the base.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2003," Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTES: Alternative PIA applicable when it exceeds the regularly computed PIA. The usual rates of actuarial reduction apply for retirement before the full retirement age. No delayed retirement credits are applicable to the benefit derived from the special minimum PIA. However, the resulting retirement benefit will be raised if necessary to equal the benefit derived from the regularly computed PIA plus any delayed retirement credits.
. . . = not applicable.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.
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Table 2.A13
Formulas enacted in 1977 for computing maximum family benefit from PIA and cost-of-living adjustments for workers who were first eligible in 1979 or later, by year of first eligibility
Eligibility year Calculation of maximum family benefit
(based on percentage of PIA) (dollars)		 First applicable
cost-of-living adjustment
150 percent
of the first		 Plus 272
percent
of the next		 Plus 134
percent
of the next		 Plus 175
percent of the
amount above		 Effective
date		 Percentage
increase
1979 230 102 101 433 June 1979 9.9
1980 248 110 109 467 June 1980 14.3
1981 270 120 118 508 June 1981 11.2
1982 294 131 129 554 June 1982 7.4
1983 324 144 142 610 December 1983 3.5
1984 342 151 150 643 December 1984 3.5
1985 358 159 158 675 December 1985 3.1
1986 379 169 166 714 December 1986 1.3
1987 396 175 174 745 December 1987 4.2
1988 407 181 179 767 December 1988 4.0
1989 433 193 190 816 December 1989 4.7
1990 455 201 200 856 December 1990 5.4
1991 473 209 208 890 December 1991 3.7
1992 495 219 217 931 December 1992 3.0
1993 513 227 226 966 December 1993 2.6
1994 539 240 237 1,016 December 1994 2.8
1995 544 241 239 1,024 December 1995 2.6
1996 559 247 246 1,052 December 1996 2.9
1997 581 258 255 1,094 December 1997 2.1
1998 609 271 267 1,147 December 1998 1.3
1999 645 286 283 1,214 December 1999 2.5 a
2000 679 301 298 1,278 December 2000 3.5
2001 717 317 315 1,349 December 2001 2.6
2002 756 336 332 1,424 December 2002 1.4
2003 774 344 340 1,458 December 2003 . . .
a. The December 1999 cost-of-living adjustment (COLA) was originally determined to be 2.4 percent, based on the consumer price index (CPI). The underlying CPI was later recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to P.L. 106-554, benefits were calculated and paid in August 2001 and later as if the December 1999 COLA had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that occurred before August 2001.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2003," Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTES: The 1977 amendments provided for annual automatic adjustments of bend points (PIA brackets) in the maximum family benefit formula in proportion to increases in the average wage level. As a result, separate formulas are applicable to workers first eligible in successive calendar years.
Eligible workers are those who attained age 62 or died in the given year.
. . . = not available.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.
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Table 2.A14
Formulas for computing maximum family benefit and cost-of-living adjustments for workers first eligible for disability benefits in 1979 or later, by year of enactment
Eligibility year Formula
Enacted in 1977 a
1979 b 150% of first $230 of PIA + 272% of next $102 of PIA + 134% of next $101 of PIA + 175% of PIA over $433 c
1980 b 150% of first 248 of PIA + 272% of next $110 of PIA + 134% of next 109 of PIA + 175% of PIA over 467 c
Enacted in 1980 d
1979 or later Smaller of (1) 85% of the AIME (or 100% of PIA, if larger) and (2) 150% of PIA e
a. The 1977 amendments provided for annual automatic adjustments of bend points (PIA brackets) in maximum family benefit formula in proportion to increases in average wage level. As a result, separate formulas are applicable to workers first eligible in successive calendar years.
b. Applicability of formula limited to workers with initial entitlement before July 1980, as a result of 1980 amendments.
c. Calculated amount subject to cost-of-living adjustments beginning with the one effective for June of the year of first eligibility.
d. Formula for computing maximum family benefit revised effective for workers with initial entitlement in or after July 1980. New formula remains unchanged for workers eligible in successive calendar years because it has no bend points requiring adjustments.
e. Calculated amount subject to cost-of-living adjustments beginning with the one effective in year of first eligibility (or in 1981, if later).
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2003," Federal Register, vol. 67, no. 207 (October 25, 2002).
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.
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Table 2.A16
Formulas for computing primary insurance amount (PIA) from average monthly wage (AMW) based on earnings after 1950, and percentage increases in PIA
AMW (dollars) April 1952 September 1952 September 1954 January 1959 January 1965 February 1968 January 1970 January 1971 September 1972 June 1974
First 110 50.00 a 55.00 a 55.00 58.85 62.97 71.16 81.83 90.01 108.01 119.89
Next 290 15.00 b 15.00 b 20.00 c 21.40 22.90 25.88 29.76 32.74 39.29 43.61
Next 150 . . . . . . . . . . . . 21.40 24.18 27.81 30.59 36.71 40.75
Next 100 . . . . . . . . . . . . . . . 28.43 32.69 35.96 43.15 47.90
Next 100 . . . . . . . . . . . . . . . . . . . . . 20.00 24.00 26.64
Next 250 . . . . . . . . . . . . . . . . . . . . . . . . 20.00 d 22.20
Next 175 . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00 e
Percentage increase in PIA 77.0 f 12.5 g 13.0 h 7.0 i 7.0 j 13.0 15.0 10.0 20.0 11.0 k
(Continued)
Table 2.A16
Continued
AMW (dollars) June 1975 June 1976 June 1977 June 1978 June 1979 June 1980 June 1981 June 1982 December 1983 December 1984
First 110 129.48 137.77 145.90 155.38 170.76 195.18 217.04 233.10 241.26 249.70
Next 290 47.10 50.10 53.06 56.51 62.10 70.98 78.93 84.77 87.74 90.81
Next 150 44.01 46.82 49.58 52.81 58.04 66.34 73.77 79.23 82.00 84.87
Next 100 51.73 55.05 58.30 62.09 68.24 78.00 86.74 93.16 96.42 99.79
Next 100 28.77 30.61 32.42 34.53 37.95 43.38 48.24 51.81 53.62 55.50
Next 250 23.98 25.51 27.02 28.78 31.63 36.15 40.20 43.17 44.68 46.24
Next 175 21.60 22.98 24.34 25.92 28.49 32.56 36.21 38.89 40.25 41.66
Next 100 20.00 21.28 22.54 24.01 26.39 30.16 33.54 36.02 37.28 38.58
Next 100 . . . 20.00 21.18 22.56 24.79 28.33 31.50 33.83 35.01 36.24
Next 100 . . . . . . 20.00 21.30 23.41 26.76 29.76 31.96 33.08 34.24
Next 435 . . . . . . . . . 20.00 21.98 25.12 27.93 30.00 31.05 32.14
Next 250 . . . . . . . . . . . . 20.00 22.86 25.42 27.30 28.26 29.25
Next 315 . . . . . . . . . . . . . . . 20.00 22.24 23.89 24.73 25.60
Next 225 . . . . . . . . . . . . . . . . . . 20.00 21.48 22.23 23.01
Next 275 . . . . . . . . . . . . . . . . . . . . . 20.00 20.70 21.42
Next 175 . . . . . . . . . . . . . . . . . . . . . . . . 20.00 20.70
Next 150 . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
Percentage increase in PIA 8.0 l 6.4 5.9 6.5 9.9 14.3 11.2 7.4 3.5 3.5
(Continued)
Table 2.A16
Continued
AMW (dollars) December 1985 December 1986 December 1987 December 1988 December 1989 December 1990 December 1991 December 1992 December 1993 December 1994
First 110 257.44 260.79 271.74 282.61 295.89 311.87 323.41 333.11 341.77 351.34
Next 290 93.62 94.84 98.82 102.77 107.60 113.42 117.62 121.15 124.30 127.78
Next 150 87.50 88.64 92.36 96.05 100.56 105.99 109.91 113.21 116.15 119.40
Next 100 102.88 104.22 108.60 112.94 118.25 124.64 129.25 133.13 136.59 140.41
Next 100 57.22 57.96 60.39 62.81 65.76 69.31 71.87 74.03 75.95 78.08
Next 250 47.67 48.29 50.32 52.33 54.79 57.75 59.89 61.69 63.29 65.06
Next 175 42.95 43.51 45.34 47.15 49.37 52.04 53.97 55.59 57.04 58.64
Next 100 39.78 40.30 41.99 43.67 45.72 48.19 49.97 51.47 52.81 54.29
Next 100 37.36 37.85 39.44 41.02 42.95 45.27 46.94 48.35 49.61 51.00
Next 100 35.30 35.76 37.26 38.75 40.57 42.76 44.34 45.67 46.86 48.17
Next 435 33.14 33.57 34.98 36.38 38.09 40.15 41.64 42.89 44.01 45.24
Next 250 30.16 30.55 31.83 33.10 34.66 36.53 37.88 39.02 40.03 41.15
Next 315 26.39 26.73 27.85 28.96 30.32 31.96 33.14 34.13 35.02 36.00
Next 225 23.72 24.03 25.04 26.04 27.26 28.73 29.79 30.68 31.48 32.36
Next 275 22.08 22.37 23.31 24.24 25.38 26.75 27.74 28.57 29.31 30.13
Next 175 21.34 21.62 22.53 23.43 24.53 25.85 26.81 27.61 28.33 29.12
Next 150 20.63 20.90 21.78 22.65 23.71 24.99 25.91 26.69 27.38 28.15
Next 200 20.00 20.26 21.11 21.95 22.98 24.22 25.12 25.87 26.54 27.28
Next 150 . . . 20.00 20.84 21.67 22.69 23.92 24.81 25.55 26.21 26.94
Next 100 . . . . . . 20.00 20.80 21.78 22.96 23.81 24.52 25.16 25.86
Next 250 . . . . . . . . . 20.00 20.94 22.07 22.89 23.58 24.19 24.87
Next 275 . . . . . . . . . . . . 20.00 21.08 21.86 22.52 23.11 23.76
Next 175 . . . . . . . . . . . . . . . 20.00 20.74 21.36 21.92 22.53
Next 175 . . . . . . . . . . . . . . . . . . 20.00 20.60 21.14 21.73
Next 175 . . . . . . . . . . . . . . . . . . . . . 20.00 20.52 21.73
Next 250 . . . . . . . . . . . . . . . . . . . . . . . . 20.00 21.09
Next 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.56
Percentage increase in PIA 3.1 1.3 4.2 4.0 4.7 5.4 3.7 3.0 2.6 2.8
(Continued)
Table 2.A16
Continued
AMW (dollars) December 1995 December 1996 December 1997 December 1998 December 1999 December 2000 December 2001 December 2002
First 110 360.47 370.93 378.72 383.64 393.23 407.00 417.58 423.43
Next 290 131.10 134.90 137.73 139.52 143.01 148.02 151.87 153.99
Next 150 122.50 126.06 128.71 130.38 133.64 138.32 141.91 143.90
Next 100 144.06 148.24 151.35 153.32 157.15 162.65 166.88 169.22
Next 100 80.11 82.43 84.16 85.26 87.39 90.45 92.80 94.10
Next 250 66.75 68.69 70.13 71.04 72.82 75.37 77.33 78.41
Next 175 60.16 61.91 63.21 64.03 65.63 67.93 69.70 70.67
Next 100 55.70 57.32 58.52 59.28 60.77 62.89 64.53 65.43
Next 100 52.33 53.84 54.97 55.69 57.08 59.08 60.61 61.46
Next 100 49.42 50.86 51.93 52.60 53.92 55.81 57.26 58.06
Next 435 46.42 47.76 48.76 49.40 50.63 52.40 53.77 54.52
Next 250 42.22 43.44 44.35 44.93 46.05 47.66 48.90 49.59
Next 315 36.94 38.01 38.81 39.31 40.30 41.71 42.79 43.39
Next 225 33.20 34.16 34.88 35.33 36.21 37.48 38.46 38.99
Next 275 30.91 31.81 32.48 32.90 33.72 34.90 35.81 36.31
Next 175 29.88 30.74 31.39 31.79 32.59 33.73 34.61 35.09
Next 150 28.88 29.72 30.34 30.74 31.51 32.61 33.46 33.93
Next 200 27.99 28.80 29.40 29.79 30.53 31.60 32.42 32.88
Next 150 27.64 28.44 29.04 29.41 30.15 31.21 32.02 32.46
Next 100 26.53 27.30 27.87 28.24 28.94 29.95 30.73 31.16
Next 250 25.52 26.26 26.81 27.16 27.84 28.81 29.56 29.98
Next 275 24.38 25.08 25.61 25.94 26.59 27.52 28.23 28.63
Next 175 23.12 23.79 24.29 24.61 25.22 26.10 26.78 27.16
Next 175 22.29 22.94 23.42 23.73 24.32 25.17 25.82 26.19
Next 175 21.64 22.27 22.74 23.03 23.61 24.44 25.07 25.42
Next 250 21.09 21.71 22.17 22.45 23.02 23.82 24.44 24.78
Next 50 20.52 21.12 21.56 21.84 22.39 23.17 23.78 24.11
Next 125 20.00 20.58 21.01 21.29 21.82 22.58 23.17 23.49
Next 225 . . . 20.00 20.42 20.69 21.20 21.94 22.52 22.83
Next 250 . . . . . . 20.00 20.26 20.77 21.49 22.05 22.36
Next 350 . . . . . . . . . 20.00 20.50 21.22 21.77 22.07
Next 300 . . . . . . . . . . . . 20.00 20.70 21.24 21.54
Next 350 . . . . . . . . . . . . . . . 20.00 20.52 20.81
Next 375 . . . . . . . . . . . . . . . . . . 20.00 20.28
Next 175 . . . . . . . . . . . . . . . . . . . . . 20.00
Percentage increase in PIA 2.6 2.9 2.1 1.3 2.5 m 3.5 2.6 1.4
a. Applied to first $100 of AMW.
b. Applied to next $200 of AMW.
c. Applied to next $190 before 1955 and to next $240 effective for January 1955.
d. Applied to next $150 effective for January 1973 and to next $350 effective for January 1974.
e. Applied to next $100 before January 1975.
f. Average increase in benefits of about 77 percent—from 100 percent at the lowest level to 50 percent at the highest level.
g. Increase of 12.5 percent or $5, if larger.
h. Average increase of about 13 percent, with minimum increase of $5.
i. Increase of 7 percent or $3, if larger.
j. Increase of 7 percent or $4, if larger.
k. Increase effective in two steps: 7 percent for March–May and 4 percent for June.
l. Beginning June 1975 all benefit increases are based on automatic cost-of-living adjustments.
m. The December 1999 cost-of-living adjustment (COLA) was originally determined to be 2.4 percent, based on the consumer price index (CPI). The underlying CPI was later recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to P.L. 106-554, benefits were calculated and paid in August 2001 and later as if the December 1999 COLA had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that occurred before August 2001.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2003," Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTE: . . . = not applicable.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.
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Table 2.A17
Minimum primary insurance amount (PIA) and maximum family benefit for workers who attained age 62, were first eligible for disabled-worker benefits, or died before 1979
Year enacted Effective date Minimum PIA a (dollars) Maximum family benefit
Percentage of AMW Not less than—
1935 . . . 10.00 . . . . . .
1939 . . . . . . Lesser of 80%, $85, or 200% of PIA $20.00
1950 September 1950 20.00 80% of first $187.50 $40.00
1952 September 1952 25.00 80% of first $210.93 $45.00
1954 September 1954 30.00 80% of first $250 $50.00 or 150% of PIA
1958 January 1959 33.00 80% of first $317.50 $20.00 + PIA or 150% of PIA
1961 August 1961 40.00 . . . 150% of PIA
1965 January 1965 44.00 80% of first $370 + 40% of next $180 . . .
1967 February 1968 55.00 80% of first $436 + 40% of next $214 . . .
1969 January 1970 64.00 . . . . . .
1971 January 1971 70.40 88% of first $436 + 44% of next $191 b . . .
1972 September 1972 84.50 105.6% of first $436 + 52.8% of next $191 b . . .
1973 c June 1974 89.50 111.8% of first $436 + 55.9% of next $191 b . . .
1973 d March 1974 90.50 113.0% of first $436 + 56.5% of next $191 b . . .
June 1974 93.80 117.2% of first $436 + 58.6% of next $191 b . . .
June 1975 101.40 126.6% of first $436 + 63.3% of next $191 b . . .
June 1976 107.90 134.7% of first $436 + 67.3% of next $191 b . . .
June 1977 114.30 142.6% of first $436 + 71.3% of next $191 b . . .
June 1978 121.80 151.9% of first $436 + 76.0% of next $191 b . . .
June 1979 133.90 167.0% of first $436 + 83.5% of next $191 b . . .
June 1980 153.10 190.9% of first $436 + 95.4% of next $191 b . . .
June 1981 170.30 212.2% of first $436 + 106.1% of next $191 b . . .
1981 e March 1982 f . . . . . .
1981 June 1982 182.90 227.9% of first $436 + 114.0% of next $191 b . . .
December 1983 189.30 235.9% of first $436 + 118.0% of next $191 b . . .
December 1984 195.90 244.2% of first $436 + 122.1% of next $191 b . . .
December 1985 201.90 251.8% of first $436 + 125.9% of next $191 b . . .
December 1986 204.50 255.1% of first $436 + 127.5% of next $191 b . . .
December 1987 213.00 265.8% of first $436 + 132.9% of next $191 b . . .
December 1988 221.50 276.4% of first $436 + 138.2% of next $191 b . . .
December 1989 231.90 289.4% of first $436 + 144.7% of next $191 b . . .
December 1990 244.40 305.0% of first $436 + 152.5% of next $191 b . . .
December 1991 253.40 316.3% of first $436 + 158.1% of next $191 b . . .
December 1992 261.