Automatic Determinations
PIA formula bend points
Wageindexed amounts 
PIA definition
The "primary insurance amount" (PIA) is the benefit (before rounding down to next lower
whole dollar) a person would receive if he/she elects to begin receiving retirement benefits
at his/her normal retirement age. At this age, the
benefit is neither reduced for early retirement nor increased for delayed retirement.
PIA formula bend points
The PIA is the sum of three separate percentages of portions of
average indexed monthly earnings. The portions
depend on the year in which a worker attains age 62, becomes disabled before
age 62, or dies before attaining age 62.
For 2020 these portions are the first $960, the amount between $960 and
$5,785, and the amount over $5,785. These dollar amounts are the "bend points" of
the 2020 PIA formula. A table shows bend points, for
years beginning with 1979, for both the PIA and
maximum family benefit formulas.
PIA formula
For an individual who first becomes eligible for oldage insurance benefits or disability
insurance benefits in 2020, or who dies in 2020 before becoming eligible for
benefits, his/her PIA will be the sum of:
 (a) 90 percent of the first $960 of his/her average indexed monthly earnings, plus
 (b) 32 percent of his/her average indexed monthly earnings over
$960 and through $5,785, plus
 (c) 15 percent of his/her average indexed monthly earnings over $5,785.
We round this amount to the next lower multiple of $.10 if it is not
already a multiple of $.10.
Determination of the PIA bend points for 2020
Amounts in formula 

Bend points for 1979 
First:  $180 
Second:  $1,085 

Computation of bend points for 2020 
First bend point $180 times 52,145.80 divided by 9,779.44 equals
$959.79, which rounds to $960 
Second bend point $1,085 times 52,145.80 divided by 9,779.44 equals
$5,785.42, which rounds to $5,785 
