One of these methods is the guaranteed alternative, which applies to those who reached age 62 after 1978 but before 1984.
https://www.ssa.gov/OP_Home/cfr20/404/404-0230.htm
In this post, we’ll explain what the guaranteed alternative method is and who qualifies for it.
The guaranteed alternative is a modified average-monthly-wage method used to compute a person’s primary insurance amount. This method is an alternative to the more commonly used average-indexed-monthly-earnings method. In addition to the guaranteed alternative method, a person’s primary insurance amount can also be computed using the old-start method and special rules for a person who had a period of disability.
To qualify for the guaranteed-alternative computation, a person must have some creditable earnings before 1979. Furthermore, a person or their survivors do not qualify for the guaranteed-alternative computation if they were eligible for social security benefits based on their own earnings at any time before 1979, unless those benefits were disability insurance benefits that were terminated because they recovered from their disability or engaged in substantial gainful activity. Additionally, they must have spent at least 12 months without being eligible for disability benefits again.
It’s important to note that the guaranteed alternative method only applies to old-age insurance benefits and survivor benefits where the deceased worker reached the month of their 62nd birthday after 1978 but before 1984 and died after reaching age 62.
As a social security disability advocate, understanding the different methods used to compute a person’s primary insurance amount is essential in helping clients navigate the complex social security system. By knowing who qualifies for the guaranteed alternative method and how it works, you can better assist clients in maximizing their social security benefits.