Gerd Numitor

Average Indexed Monthly Earnings Gerd Numitor

Publisher Marketing: Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. The Average Indexed Monthly Earnings (AIME) is used in the United States' Social Security system to calculate the Primary Insurance Amount which decides the value of benefits paid under Title II of the Social Security Act under the 1978 New Start Method. Specifically, Average Indexed Monthly Earnings is an average of monthly income received by a beneficiary during their work life, adjusted for inflation. Each calendar year, each covered worker (this excludes certain domestics with very low earnings and others like municipal employees hired before the mid 1980s who opted out of the federal Social Security program) wages up to the Social Security Wage Base (SSWB) is recorded along with the calendar by the Social Security Administration in Baltimore, Maryland. If a worker has 35 or fewer years of earnings, then the Average Indexed Monthly Earnings is the numerical average of those 35 years of covered wages; with zeros thrown into the average for the number of years less than 35. However, because of wage inflation the federal government indexes wages so that $35,648.55 earned in year 2004 is exactly the same as $23,753.53 earned in 1994.