PAT06C - Social Security Worksheet

This SQR provides detailed information about how the system calculates a participant's social security benefits:

  • Primary Insurance Amount: The social security primary insurance amount (PIA) as of the participant's normal social security retirement age.

  • Adjusted Primary Insurance Amt: Includes both general increases and increases or reductions based on the assumed social security commencement date. This is normally considered the "actual" social security retirement benefit.

  • Eligibility Year: The year the participant reaches age 62, or the year of death or disability.

  • NAW Indexing Year: The national average wage (NAW) indexing year. This is two years before the year of eligibility.

  • NAW Index Year Amount: The national average wage for the indexing year.

  • # of Computation Years: The number of years of the participant's lifetime earnings history that is used in determining social security.

  • AIME: The average indexed monthly earnings (AIME) is calculated by taking the lesser of the participant's earnings and the taxable wage base for each computation year, indexing it with a factor representing the growth in the national average wage, and dividing the total by the number of computation years and then again by 12. This is adjusted further by "bend point" factors to determine the initial PIA.

  • Birthdate: Determines the social security retirement age.

  • Social Security Age: The social security retirement age.

  • Social Security BCD: The assumed benefit commencement date for social security benefits.

For each year, the report includes the following earnings information that is used for social security calculations:

  • Taxable Wage Base Amount: xx

  • Actual Empl Earnings: The participant's actual earnings.

  • Taxable Earnings: The lesser of the taxable wage base amount or the participant's actual earnings.

  • Natl Avg Earnings: The national average earnings (NAW).

  • Indexed Amount: Calculated by multiplying the taxable earnings by a factor. The factor is calculated by dividing the NAW for the indexing year by the NAW for the year being indexed.

  • Indexed Amount Used in Calc: The earnings amount used for a year that is included in the AIME computation period.

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