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CRS Report: How Social Security Benefits Are Calculated
Congressional Research Service [CRS]Link to more items from this source
Jan. 20, 2021

29 pages. "The computation process involves three main steps: [1] First, a summarized measure of lifetime Social Security-covered earnings is computed ... called the average indexed monthly earnings (AIME). [2] Second, a progressive benefit formula is applied to the AIME to compute the primary insurance amount (PIA).... [3] Third, an adjustment may be made based on the age at which a beneficiary chooses to begin receiving benefits." [R46658 Jan. 19, 2021]

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