It is important to understand how the Social Security Administration (SSA) calculates your primary insurance amount (PIA) and how it affects your monthly benefit amount.
According to § 404.201 of the SSA guidelines, the PIA is the basic figure used to determine your monthly benefit amount.
https://www.ssa.gov/OP_Home/cfr20/404/404-0201.htm
In this article, we will explain what is included in this subpart, how the PIA is calculated, and how and when it is recalculated or recomputed.
What is Included in This Subpart?
§ 404.201 outlines how the SSA computes your PIA, how and when it is recalculated or recomputed, and how it is adjusted to reflect changes in the cost of living. This subpart is organized into different sections, each describing a method for computing the PIA for different groups of workers based on their age, disability, or covered earnings.
How is the PIA Calculated?
The PIA is calculated using different methods depending on when you attained age 62, became disabled, or died. These methods include the average-indexed-monthly-earnings method, the average-monthly-wage method, the guaranteed alternative method, and the old-start method. Additionally, there are special rules for workers who previously had a period of disability or were long-term, low-paid workers.
When is the PIA Recalculated or Recomputed?
The SSA may recalculate or recomputed your PIA to include additional earnings that were not used in the original computation. This can happen if you continue to work after you start receiving benefits or if there are errors in the original computation. The SSA may also recalculate your PIA to reflect changes in the cost of living.
Conclusion: Understanding your PIA is essential for anyone seeking Social Security Disability benefits. As a Social Security Disability advocate, it is important to educate clients on the complex rules and regulations of the program and help them navigate the application process. By understanding how the PIA is calculated and when it may be recalculated or recomputed, individuals can better understand their monthly benefit amount and receive the support they need.
At Hugo Fierro & Michael Perez, we offer our expertise in aiding individuals to comprehend the intricacies of their social security disability claim. Our team is equipped with the necessary knowledge and experience to provide comprehensive guidance on this matter.