wage index

Dictionary of Insurance Terms for: wage index
wage index

table used, among other purposes, to determine monthly Social Security benefit for a retired or disabled worker and his or her dependents. The Average Monthly Wage (AMW) of the worker is computed, disregarding certain periods of low earnings. The AMW is used to determine the Primary Insurance Amount (PIA). Then, benefits are figured from the table depending on how old the worker is upon retirement, whether there are dependents or survivors, and when they will retire.

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