Liberal Forum

Xavier_Onassis » 02 Jun 2022, 3:35 pm » wrote: ↑

02 Jun 2022, 3:35 pm

Social security payments are not based on the total paid into the system. They are based on the income of the LAST TEN QUARTERS before retirement. Most people earn more during the final years of their careers, but there are many that do not,  Real estate agents, pro athletes, perhaps actors and actresses.

 Do you know how pensions are determined in Communist countries? I strongly suspect you have no clue. But if you do, tell us.

That sounded so unfair and arbitrary I decided I had better look it up rather than depend on a forum member that is generally recognized as being full of sh*te.

https://www.ssa.gov/OACT/COLA/Benefits.html
"Social Security benefits are typically computed using "average indexed monthly earnings." This average summarizes up to 35 years of a worker's indexed earnings. We apply a formula to this average to compute the primary insurance amount (PIA). The PIA is the basis for the benefits that are paid to an individual."

"Average Indexed Monthly Earnings (AIME)
When we compute an insured worker's benefit, we first adjust or "index" his or her earnings to reflect the change in general wage levels that occurred during the worker's years of employment. Such indexation ensures that a worker's future benefits reflect the general rise in the standard of living that occurred during his or her working lifetime.

Up to 35 years of earnings are needed to compute average indexed monthly earnings. After we determine the number of years, we choose those years with the highest indexed earnings, sum such indexed earnings, and divide the total amount by the total number of months in those years. We then round the resulting average amount down to the next lower dollar amount. The result is the AIME."