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I. HISTORY OF THE PROVISIONS OF OLD-AGE, SURVIVORS,
AND DISABILITY INSURANCE

A. EMPLOYMENT COVERED 1/

1. Compulsory

Act  
1935 All workers in commerce and industry (except railroads) under age 65 in continental United States, Alaska and Hawaii, and on American vessels. (Covered after 1936.)
1939 Age restriction eliminated.
1946 Railroad and social security earnings combined to determine eligibility for and amount of survivor benefits.
1950 Regularly employed farm and domestic workers. Nonfarm self-employed (except professional groups). Federal civilian employees not under retirement system. Americans employed outside United States by American employer. Puerto Rico and Virgin Islands.
1951 Railroad workers with fewer than 10 years of service, for all benefits. (After October 1951, coverage is retroactive to 1937.)
1954 Farm self-employed. Professional self-employed except lawyers, dentists, doctors, and other medical groups (taxable year ending after 1954). Additional regularly employed farm and domestic workers. Homeworkers.
1956 Members of the uniformed services. Remainder of professional self-employed except doctors (taxable year ending after 1955). Farm landlords who materially participate in farm operations.
1960 Americans employed in United States by foreign government or international organization (covered as self-employed). Parent working for child (except domestic or casual labor). Guam and American Samoa.
1965 Interns. Self-employed doctors (taxable year ending December 31, 1965 or later). Tips for employee tax only.
1968 Ministers (unless exemption is claimed on grounds of conscience or religious principles). Taxable year ending after 1967.
1972 Self-employed temporarily living abroad.
1976 Northern Mariana Islands to be covered when status as trust territory ends. Modified by 1983 legislation to take effect January 1 following end of trust territory status. Coverage began January 1, 1987 with provisions to recognize service under system in effect under trust territory.
1977 Ministers may make irrevocable revocation of an exemption from coverage (before due date of next tax return). For employer tax, tips deemed to be wages under Fair Labor Standards Act (minimum wage law) are covered (after 1977).
1981 All sick pay for first 6 months (except worker's compensation or paid for by employee).
1983 Federal employees hired after December 31, 1983.
  Federal employees hired before January 1, 1984 who elect coverage under the Federal Employees Retirement System (FERS).
  Members of Congress, President, Vice-President, sitting Federal judges, some executive level and senior executive level political appointees, Legislative branch employees not covered by Civil Service Retirement System, effective January 1, 1984.
  Employees of nonprofit organizations (January 1, 1984).
  State and local government employees prohibited from terminating coverage after April 20, 1983.
  Employer payments to certain deferred compensation and salary reduction plans.
1986 Ministers who received an exemption from coverage given a limited period to revoke the exemption.
1987 Additional farm workers. Armed Forces reserve components on inactive duty training (such as weekend drills) for pay but not for deemed credits. Certain employer-paid group life insurance premiums. Services provided by individual in trade of spouse, or child aged 18-20 in trade of parent. For employers, full amount of covered tips.
1990 State and local government employee not under a State or local government retirement system.
1994 Domestic workers, election officials and election workers earning less than $1,000 (indexed) from an employer are not covered.

1 Unless otherwise noted, coverage begins on the first of January after the year of the Act; for the self-employed, at the beginning of the taxable year after the year of the Act.



2. Elective by Employer

Act  
1950 State and local government employees not under retirement system.
1954 Americans employed outside United States by foreign subsidiary of American employer.
1972 Members of a religious order subject to a vow of poverty.


3. Elective by Employer and Employee

Act  
1950 Employees (other than ministers) of nonprofit organizations (employees voting against coverage are not covered; new employees are covered). (Compulsory beginning in 1984.)
1954 State and local government employees (except firemen and policemen) under retirement system.
1956 Firemen and policemen in designated States. State and local government employees under retirement system in designated States may be divided into two systems, one excluding employees not desiring coverage (new employees covered).
1968 Firemen under retirement system.
1984 Churches and church-controlled organizations (including conventions or associations of churches and elementary or secondary schools) may elect irrevocably to have services of their employees excluded from coverage as employment. Employees of organizations making such an election covered as self-employed persons.
1986 Churches and church-controlled organizations which have elected to have services of their employees excluded from coverage (with the employees covered as self-employed persons) may revoke the election.


4. Elective by Individual

Act  
1954 Ministers.
1965 Members of certain religious sects may obtain exemption from self-employment coverage (retroactive to 1951).
1968 Ministers placed under compulsory coverage, but can opt out on grounds of conscience or religious principles.
1989 Members of certain religious sects may obtain exemption from coverage if they work for exempt church-controlled organizations or for partnerships consisting solely of sect members. These individuals were covered as self-employed persons under the 1984 Act.


5. Gratuitous for Members of Armed Forces

Act  
1946 Fully insured status and average monthly wage of $160 for World War II veterans who died within 3 years after discharge.
1950 Wage credits of $160 per month of service during World War II (September 16, 1940, to July 24, 1947).
1952 Same wage credits to December 31, 1953.
1953 Same wage credits to June 30, 1955.
1955 Same wage credits to March 31, 1956.
1956 Same wage credits to December 31, 1956.
1968 Wage credits of $100 for each $100 (or fraction thereof) of basic pay not in excess of $300 per quarter, beginning 1968.
1972 Wage credits of $300 per quarter after 1956.
1977 Wage credits of $100 per $300 of basic pay up to a maximum of $1,200 credit per year, beginning 1978.


6. Gratuitous for War Internees

Act  
1972 Wage credits for U.S. citizens of Japanese ancestry for period of internment during World War II.


B. INSURED STATUS

1. Quarter of Coverage (QC)

Act  
1939 Calendar quarter in which $50 of wages is earned. 4 QC are credited for covered earnings equal to maximum limitation for the year.
1946 Calendar quarter in which $50 of wages is paid.
1950 Calendar quarter credited with $100 of self-employment income (reported annually).
1954 Calendar quarter credited with $100 of agricultural wages (reported annually).
1977 One QC for each $250 of wages and self-employment income (reported annually) in 1978, up to a maximum of 4. Amounts shown below became effective due to automatic provisions.


Required Earnings per QC
Year of earnings
  Amount per QC
  Year of earnings
  Amount per QC
  Year of earnings
  Amount per QC
1979   $260   1986   $440   1993   $590
1980   290   1987   460   1994   620
1981 310 1988 470 1995 630
1982 340 1989 500 1996 640
1983 370 1990 520 1997 670
1984 390 1991 540 1998 700
1985 410 1992 570 1999 740



2. Disability Definition

Act  
1954 Inability to engage in substantial gainful activity because of any medically determinable permanent physical or mental impairment.
1965 Disability expected to last at least 12 months. For blind aged 55-64, inability to engage in usual occupation.
1968 Inability to engage in any substantial gainful work existing in the national economy. For surviving spouse, inability to engage in any gainful activity.
1990 Surviving spouse same as disabled worker.


3. Period of Disability

Act  
1954 Continuous period of at least 6 months of disability as defined above.
1972 At least 5 months of continuous disability.


4. Fully Insured

Act  
1935 Cumulative wages of $2,000 and employment in each of 5 years after 1936 and before age 65.
1939 QC equal to one-half the quarters elapsed after 1936 (or quarter aged 21) and before quarter of death or age 65. Minimum 6 QC; maximum 40 QC.
1950 Elapsed period measured after 1950 (QC earned at any time can be used).
1954 Period of disability excluded from elapsed period. Alternatively, QC earned in all quarters after 1954 and before quarter aged 65, with minimum of 6 such QC.
1956 Elapsed period measured to age 62 for women. Alternatively, QC earned in all except 4 quarters after 1954 and before age 65 (62 for women).
1960 QC requirement reduced to one-third of the elapsed quarters.
1961 QC equal to years after 1950 (or year aged 21) and before year of death or age 65 (62 for women).
1972 Elapsed period for men reaching age 62 after 1972 measured to age 62 or to 1975, if later.
1983 Alternatively, for people working for a nonprofit organization January 1, 1984, aged 55 or over January 1, 1984, and first covered due to 1983 Act, 4 post-1983 QC for each year after 1983 and before attainment of retirement age, subject to a minimum of 6 and a maximum of 20 such QC.


5. Currently Insured

Act  
1939 6 QC earned in 12 quarters preceding quarter of death.
1946 6 QC earned in preceding 13 quarters, including quarter of death.
1950 Including quarter of retirement.
1954 Including quarter of disablement.


6. Disability Insured

Act  
1954 20 QC earned in last 40 quarters (including quarter of disablement) and currently insured.
1956 Fully insured requirement added.
1958 Currently insured requirement eliminated.
1960 Alternatively, 20 QC and QC earned in all quarters after 1950, with a minimum of 6 such QC.
1965 Alternatively for blind under age 31, QC earned in one-half of the quarters elapsed after age 21, with minimum of 6 such QC. For blind under age 24, 6 QC earned in preceding 3 years.
1968 For all disabled under age 31, same alternative.
1972 For blind, requirement reduced to only fully insured.


7. Transitional Benefits for Age 72 and Older

Act  
1965 Number of QC required reduced for men reaching age 72 in 1963 or earlier, and for women reaching age 72 in 1966 or earlier, but in no case fewer than 3 QC. Treated as fully insured.
1966 Number of QC required reduced to 3 QC for each year that attainment of age 72 is after 1967. No QC required if age 72 or older before 1968. Treated as fully insured.
1990 Preclude payment of benefits to those reaching age 72 after 1990 who otherwise could have been entitled to benefits.


C. AVERAGE MONTHLY WAGE, PRIMARY INSURANCE AMOUNT, AND MAXIMUM FAMILY BENEFIT, BASED ON PROVISIONS PRIOR TO 1977 ACT 1/

1. Average Monthly Wage (AMW)

Act  
1939 AMW computed using earnings after 1936 and before year of death or retirement divided by months after 1936 and before quarter of death or retirement, excluding months before age 22 in quarter that was not QC.
1950 AMW computed using earnings after 1950 (or year aged 21) and before year of death, year of retirement or subsequent year, or year aged 65 if then insured, divided by number of months in those years.
1954 Earnings and months in 4 years may be excluded in all cases; in 5 years if worker has 20 QC. Period of disability may be excluded.
1956 Earnings and months in 5 years may be excluded in all cases. Computation period may end at age 62 for women then insured.
1960 Earnings may be used for any year after 1950 and before year of retirement, with the number of years equal to the years elapsed after 1955 (or year aged 26) and before year of death or age 65 for men and 62 for women. Same method may be used for earnings after 1936 and years elapsed after 1941.
1972 Number of years for men reaching age 62 after 1972, measured to age 62 or to 1975, if later.


2. Primary Insurance Amount (PIA)

Act  
1935 Formula applied to cumulative wages: 1/2 of 1% of first $3,000 plus 1/12 of 1% of next $42,000 plus 1/24 of 1% of next $84,000.
1939 Formula applies to AMW computed for period after 1936: 40% of first $50 plus 10% of next $200. Total increased by 1% for each year with at least $200 of creditable wages. Effective for January 1940.
  Modified by 1950 Act so that increment years may not exceed the 14 years 1937-50 with amount increased under conversion table. Effective for September 1950.
  Modified by 1967 Act to distribute total wages in 1937-50 over 9-14 years, with 14 increment years assumed.
  Modified by 1977 Act to distribute total wages in 1937-50 over 1-14 years, with 4-14 increment years assumed.
  Modified by 1990 Act to distribute total wages in 1937-50 when death or disability occurred prior to 1951.
1950 Formula applies to AMW computed for period after 1950: 50% of first $100 plus 15% of next $200. Effective for April 1952. Increase of about 77% in benefit level -- from 100% at lowest level to 50% at highest level.
1952 55% of first $100 plus 15% of next $200. Effective for September 1952. Increase of the greater of 12 1/2% or $5 in benefit level.
1954 55% of first $110 plus 20% of next $240. Effective for September 1954. Increase of at least $5 (approximately 13%) in benefit level.
1958 58.85% of first $110 plus 21.40% of next $290. Effective for January 1959. Increase of the greater of 7% or $3 in benefit level.
1965 62.97% of first $110 plus 22.90% of next $290 plus 21.40% of next $150. Effective for January 1965. Increase of the greater of 7% or $4 in benefit level.
1968 71.16% of first $110 plus 25.87% of next $290 plus 24.18% of next $150 plus 28.43% of next $100. Effective for February 1968. Increase of approximately 13% in benefit level.
1969 81.83% of first $110 plus 29.76% of next $290 plus 27.81% of next $150 plus 32.69% of next $100. Effective for January 1970. Increase of approximately 15% in benefit level.
1971 90.01% of first $110 plus 32.73% of next $290 plus 30.59% of next $150 plus 35.96% of next $100 plus 20% of next $100. Effective for January 1971. Increase of 10% in benefit level.
1972 108.01% of first $110 plus 39.28% of next $290 plus 36.71% of next $150 plus 43.16% of next $100 plus 24% of next $100 plus 20% of next $250. Effective for September 1972. Increase of 20% in benefit level.
1973 119.90% of first $110 plus 43.60% of next $290 plus 40.75% of next $150 plus 47.90% of next $100 plus 26.64% of next $100 plus 22.20% of next $250 plus 20% of next $100. Effective for June 1974. Increase of 11% in benefit level. 2/

Legislation enacted prior to 1958 established PIAs by formula. Thereafter, PIAs were determined by tables. Thus, the formulas shown above for the 1958 Act and later are only approximations to the tabular PIAs.

For years after 1974, the tabular PIAs were increased (subject to certain rounding rules) by automatic benefit increases shown in section J.5. The PIA table was also extended each year to reflect increases in the earnings base (shown in section I).

Approximation formulas for later tables are available in the SSA publication "Annual Statistical Supplement to the Social Security Bulletin." The tables for any year after 1958 are available over the Internet. The address is http://www.ssa.gov/OACT/ProgData/tableForm.html.



3. Minimum PIA

Act  
1935 $10.
1950 $20. Effective for September 1950.
1952 $25. Effective for September 1952.
1954 $30. Effective for September 1954.
1958 $33. Effective for January 1959.
1961 $40. Effective for August 1961.
1965 $44. Effective for January 1965.
1968 $55. Effective for February 1968.
1969 $64. Effective for January 1970.
1971 $70.40. Effective for January 1971.
1972 $84.50. 2/ Effective for September 1972.
1973 $93.80. 2/ Effective for June 1974.

For years after 1974, amounts shown below reflect application of automatic benefit increases (shown in section J.5) and became effective in June for years before 1983 and in December for years after 1982.

Minimum PIAs Under Automatic Benefit Increases
Year
  Minimum PIA
  Year
  Minimum PIA
  Year
  Minimum PIA
1975   $101.40   1985   $201.90   1995   $282.20
1976   107.90   1986   204.50   1996   290.30
1977   114.30   1987   213.00   1997   296.30
1978   121.80   1988   221.50   1998   300.10
1979   133.90   1989   231.90        
 
1980   153.10   1990   244.40        
1981   170.30   1991   253.40        
1982   182.90   1992   261.00        
1983   189.30   1993   267.70        
1984   195.90   1994   275.10        



4. Special Minimum

Act  
1972 $8.50 per month times "years of coverage" in excess of 10 years, but not in excess of 30 years (maximum of $170). A year of coverage is defined as a year with earnings equal to at least 25% of the earnings base. Effective for January 1973.
1973 $9.00 per month times years of coverage in excess of 10 years, but not in excess of 30 years (maximum of $180). Effective for March 1974.
1977 Same as for death or eligibility in 1979 or later (see section D.4).


5. Maximum Family Benefit (MFB)

Act
Effective date
Percent of AMW
But not less than
1939 January 1940 Lesser of 80% of AMW, $85.00, or 2 x PIA. $20.00
1950 September 1950 80% of first $187.50. $40.00
1952 September 1952 80% of first $210.93. $45.00
1954 September 1954 80% of first $250.00. Greater of $50.00 or
150% of PIA
1958 January 1959 80% of first $317.50. Greater of PIA + $20.00 or 150% of PIA
1961 August 1961 80% of first $317.50. 150% of PIA
1965 January 1965 80% of first $370.00 + 40% of next $180.00. 150% of PIA
1968 February 1968 80% of first $436.00 + 40% of next $214.00. 150% of PIA
1971 January 1971 88% of first $436.00 + 44% of next $191.00. 3/ 150% of PIA
1972 September 1972 105.6% of first $436.00 + 52.8% of next $191.00. 2/, 3/ 150% of PIA
1973 June 1974 117.2% of first $436.00 + 58.6% of next $191.00. 2/, 3/ 150% of PIA

Legislation enacted prior to 1958 established MFBs by formula. Thereafter, MFBs were determined by tables. Thus, the formulas shown above for the 1958 Act and later are only approximations to the tabular MFBs.
For years after 1974, the tabular MFBs were increased (subject to certain rounding rules) by automatic benefit increases shown in section J.5. The MFB table was also extended each year to reflect increases in the earnings base (shown in section I).
Approximation formulas for later tables are available in the SSA publication "Annual Statistical Supplement to the Social Security Bulletin." The tables for any year after 1958 are available over the Internet. The address is http://www.ssa.gov/OACT/ProgData/tableForm.html.

1 Applicable only to persons dying or becoming eligible prior to 1979, where eligibility is defined as attainment of age 62 for old-age benefits or onset of disability for disability benefits. See section D for 1977 Act provisions.
2 Subject to automatic provisions.
3 For AMW of $628 or more, 175% of PIA.


D. AVERAGE INDEXED MONTHLY EARNINGS, PRIMARY INSURANCE AMOUNT, AND MAXIMUM FAMILY BENEFIT, BASED ON 1977 ACT PROVISIONS 1/

1. Average Indexed Monthly Earnings (AIME)

Act  
1977 AIME computed using indexed earnings after 1950 and before year of retirement or disability, or year after year of death. Years with highest indexed earnings are used in computing the monthly average, with the number of years of earnings used equal to the number of years elapsed after 1955 (or year aged 26 if later) and before year of death, disability, or age 62. Indexed earnings for a given year equal actual earnings times average wages for second year before death or eligibility to old-age or disability benefit, divided by average wages in the given year, except that for years after the second year before death or eligibility, indexed earnings equal actual earnings. Eligibility defined as attainment of age 62 for old-age benefits, or onset of disability (or age 62, if earlier) for disability benefits.
1980 For DI, the number of years of earnings used equals the number of years elapsed after 1950 (or year aged 21 if later) and before year of disability, minus dropout years equal to one-fifth of that number (to a maximum of 5 dropout years). However, the number of years of earnings used is at least 2. Effective for initial entitlements after June 1980.
  For DI, persons who receive fewer than 3 dropout years under the one-fifth rule are credited with additional dropout years based on child care, up to a total of 3 dropout years. However, the number of years of earnings used is at least 2. Effective for July 1981.


2. Primary Insurance Amount (PIA)

Act  
1977 90% of first $180 of AIME, plus 32% of AIME over $180 thru $1,085, plus 15% of AIME in excess of $1,085. Effective for 1979 deaths and eligibilities. 1/
  Any general benefit increases occurring in year of death or eligibility or later are applied to the PIA calculated from the formula.
  For retirees reaching age 62 in 1979-83 and their auxiliaries and survivors, PIA shall not be less than that calculated on December 1978 PIA table (based on provisions prior to 1977 Act), excluding earnings after year aged 61 in computation of AMW, and including any general benefit increases after year aged 61.
  PIA formulas effective for deaths and eligibilities after 1979 use the same percentages (90%, 32%, and 15%) as the formula for 1979. The dollar amounts of AIME, however, are indexed and are shown in section J. 7.
1981 For retirees reaching age 62 in 1982-83 and their auxiliaries and survivors, December 1978 PIA table modified to reflect elimination of minimum PIA of $121.80 for AMW of $76 or less.
1983 For workers first eligible after 1985 for both retirement or disability benefits and a pension based on noncovered employment, the 90% factor is replaced by 40%. The reduction is phased in by reducing the factor by 10% for each year after 1985 up to the year of first eligibility. For workers with over 25 years of coverage, as defined for special minimum (see Special Minimum below), the factor will not be reduced by more than 10% for each year of coverage under 30. The reduction will not exceed one-half of the portion of the other pension based on noncovered service after 1956 (prorated on basis of years of service). Does not apply to Railroad Retirement pensions or pensions based on service first covered by the 1983 amendments.
1987 Federal employees who elect FERS coverage after December 31, 1987 must have 5 years Federal employment covered by OASDI to be exempt from noncovered pension offset.
1988 Noncovered pension offset factor modified for workers with over 20 years of coverage such that the factor will not be reduced by more than 5% for each year of coverage under 30.


3. Minimum PIA

Act  
1977 $122.00. Effective for new eligibles beginning in 1979. Minimum not subject to automatic provisions until earlier of year aged 65 or year of first receipt of benefits.
1981 Minimum eliminated for new eligibles beginning in 1982.


4. Special Minimum

Act  
1977 $11.50 per month times "years of coverage" in excess of 10 years, but not in excess of 30 years (maximum of $230.00). A year of coverage is defined as a year with earnings equal to at least 25% of the earnings base through 1978; amount required for a year of coverage for year after 1978 does not include effects of the 1978-81 earnings base increases beyond those resulting from automatic provisions ("old-law" earnings bases; see section J.6). Effective for January 1979. 2/
  For years after 1979, the product of $11.50 and the number of years of coverage in excess of 10 is increased by annual automatic benefit increases, as shown in section J.5. Special minimum PIA tables for years after 1978 are available over the internet. The address is http://www.ssa.gov/OACT/ProgData/tableForm.html.
1990 A year of coverage for special minimum PIA is defined as a year with earnings equal to at least 15% of the "old-law" earnings base. (Factor remains at 25% for determination of noncovered pension offset factor.) Effective for January 1991.


5. Maximum Family Benefit (MFB)

Act  
1977 150% of first $230 of PIA, plus 272% of PIA over $230 thru $332, plus 134% of PIA over $332 thru $433, plus 175% of PIA above $433. Effective for 1979 deaths and eligibilities. 2/3/
  Any general benefit increases occurring in year of death or eligibility or later are applied to the MFB calculated from the formula.
  MFB formulas effective for deaths and eligibilities after 1979 use the same percentages (150%, 272%, 134%, and 175%) as the formula for 1979. The dollar amounts of AIME, however, are indexed and are shown in section J.7.
1980 For DI, the smaller of 85% of AIME (but not less than PIA), or 150% of PIA. Effective for initial entitlements (payment of benefits) after June 1980, if eligibility (onset of disability) is in 1979 or later.

1 Applicable only to persons dying or becoming eligible in 1979 or later, where eligibility is defined as attainment of age 62 for old-age benefits or onset of disability for disability benefits. See section C for provisions prior to 1977 Act.
2 Subject to automatic provisions.
3 DI maximum family benefits may also be effective.


E. MONTHLY BENEFITS

1. Retired Worker


Act
Type of Benefit
Percent
of PIA

Conditions
1935 Retired worker aged 65 and over ..... Fully insured. Amount based on cumulative wages.
1939 ............. 100 Amount based on PIA.
1956 Woman aged 62-64 ..... Reduced 5/9% per month under age 65.
1961 Man aged 62-64 ..... Reduced 5/9% per month under age 65.
1972 ............. ..... Increased by delayed-retirement increment -- 1/12% for each month after 1970 and between the ages of 65 and 72 in which no benefits received and must not have received an actuarially reduced benefit.
1977 ............. ..... Increased 1/4% for each month after 1981 and between the ages of 65 and 72 in which no benefits received. Effective for 1979 and later eligibilities. Requirement for nonreceipt of actuarially reduced benefit removed.
1981 ............. ..... Minimum age increased to 62 and 1 month, except for those who attain age 62 on the first day of the month.
1983 ............. ..... For workers who attain age 62 in 2000-04, eligibility age for full benefits ("retirement age") is increased to age 65 plus 2 months for each year after 1999 the worker attains age 62; for workers who attain age 62 in 2005-16 to age 66; for workers who attain age 62 in 2017-21 to age 66 plus 2 months for each year after 2016 the worker attains age 62; and to age 67 for workers who attain age 62 in 2022 or later. Reduced 5/9% per month for first 36 months under retirement age, and 5/12% per month for additional months.
Increase for delayed retirement applies only to months after worker's (newly defined) retirement age and before age 70. For workers who attain age 62 after 1986 the percentage increase per month for which no benefits are received increases by 1/24% each odd-numbered year until it is 2/3% per month for workers who attain age 62 after 2004.


2. Disabled Worker


Act
Type of Benefit
Percent
of PIA

Conditions
1956 Disabled worker aged 50-64 100 Disability insured. Reduced by amount of worker's compensation.
1958 ............. ..... Reduction for worker's compensation eliminated.
1960 Under age 65 100 Disability insured.
1965 ............. ..... Reduced if benefits plus worker's compensation exceed 80% of the higher of AMW or high-5-year average earnings in covered employment (adjusted periodically for increases in wage levels).
1972 ............. ..... Reduced if benefits plus worker's compensation exceed 80% of the highest of AMW, high-5-year average earnings, or highest year in last 6 years of covered employment.
1981 ............. ..... Reduced if benefits plus worker's compensation plus certain disability benefits under a Federal, State, or local law exceed 80% of the higher of AMW, high-5-year average earnings, or highest year in last 6 years of covered employment.
1983 Under retirement age ..... For workers who attain age 62 in 2000 or later, age 65 replaced by newly defined retirement age (see Retired Worker).
1994 ............. ..... Certain restrictions apply to individuals disabled by drug addiction and/or alcoholism.
1996 ............. ..... Eligibility prohibited for individuals whose drug addiction and/or alcoholism is a contributing factor material to the finding of disability.


3. Auxiliary Beneficiaries of Retired Worker

a.Wife


Act
Type of Benefit
Percent
of PIA

Conditions
1939 Wife aged 65 and over 50 Fully insured.
1950 Under age 65 ..... Caring for eligible child.
1956 Aged 62-64 ..... Reduced 25/36% per month under age 65.
1965 ............. ..... Eligible child excludes student aged 18-21.
1968 ............. ..... Maximum $105.
1969 ............. ..... Maximum eliminated.
1977 ............. ..... Reduced by any retirement pension payable based on own earnings in noncovered governmental employment (as of last day of such employment). Reduction does not apply if eligible for such pension before December 1982.
1981 ............. ..... Minimum age increased to 62 and 1 month, except for those who attain age 62 on the first day of the month, if not caring for eligible child.
Eligible child excludes nondisabled child aged 16-17.
1982 ............. ..... Reduction for retirement pension payable based on own earnings in noncovered governmental employment (provided by 1977 Act) does not apply if eligible for such pension after November 1982 and before July 1983 and dependent on spouse.
1983 ............. ..... Reduction for retirement pension payable based on own earnings in noncovered governmental employment reduced to 2/3 of the pension amount. For those who attain age 62 in 2000-04, eligibility age for full benefits ("retirement age") is increased to age 65 plus 2 months for each year after 1999 the person attains age 62; for those who attain age 62 in 2005-16 to age 66; for those who attain age 62 in 2017-21 to age 66 plus 2 months for each year after 2016 the person attains age 62; and to age 67 for those who attain age 62 in 2022 or later. Reduced 25/36% per month for first 36 months under retirement age, and 5/12% per month for additional months.


b. Husband


Act
Type of Benefit
Percent
of PIA

Conditions
1950 Husband aged 65 and over 50 Fully and currently insured. Dependent.
1961 Aged 62-64 ..... Reduced 25/36% per month under age 65.
1968 ............. ..... Currently insured requirement eliminated. Maximum $105.
1969 ............. ..... Maximum eliminated.
1977 1/ ............. ..... Dependency requirement eliminated.
1977 ............. ..... Noncovered pension offset (see Wife). However, delay of applicability of offset until December 1982 does not apply unless dependent on spouse.
1983 2/ Under age 65 ..... Caring for eligible child.
1981 ............. ..... Minimum age increased to age 62 and 1 month, except for those who attain age 62 on the first day of the month, if not caring for eligible child.
Eligible child excludes nondisabled child aged 16-17.
1982 ............. ..... Reduction for retirement pension payable based on own earnings in noncovered governmental employment (provided by 1977 Act) does not apply if eligible for such pension after November 1982 and before July 1983.
1983 ............. ..... Reduction for retirement pension payable based on own earnings in noncovered governmental employment reduced to 2/3 of the pension amount.
For those who attain age 62 in 2000 or later, retirement age gradually increased to 67 (see Wife).

1 Originally eliminated by Supreme Court decision in Califano v. Abbott, Califano v. Jablon, and Califano v. Silbowitz, March 21, 1977.
2 Originally payable on basis of administrative ruling, October 17, 1980, resulting from Eastern District of Pennsylvania District Court decision in Cooper v. Califano, December 29, 1978.


c. Divorced Wife


Act
Type of Benefit
Percent
of PIA

Conditions
1965 Divorced wife aged 65 and over 50 Fully insured. Dependent. Married 20 years.
  Aged 62-64 ..... Reduced 25/36% per month under age 65.
1968 ............. ..... Maximum $105.
1969 ............. ..... Maximum eliminated.
1972 ............. ..... Dependency requirement eliminated.
1977 ............. ..... Noncovered pension offset (see Wife). Married 10 years.
1981 ............. ..... Minimum age increased to 62 and 1 month, except for those who attain age 62 on the first day of the month.
1982 ............. ..... Reduction for retirement pension payable based on own earnings in noncovered governmental employment (provided by 1977 Act) does not apply if eligible for such pension after November 1982 and before July 1983 and dependent on spouse.
1983 ............. ..... Reduction for retirement pension payable based on own earnings in noncovered governmental employment reduced to 2/3 of the pension amount.
For those who attain age 62 in 2000 or later, retirement age gradually increased to 67 (see Wife).


d. Divorced Husband


Act
Type of Benefit
Percent
of PIA

Conditions
1983 1/ Divorced husband aged 65 and over 50 Fully insured. Married 20 years.
  Aged 62-64 ..... Reduced 25/36% per month under age 65.
1977 ............. ..... Noncovered pension offset (see Wife). However, delay of applicability of offset until December 1982 does not apply unless dependent on spouse. Married 10 years.
1981 ............. ..... Minimum age increased to 62 and 1 month, except for those who attain age 62 on the first day of the month.
1982 ............. ..... Reduction for retirement pension payable based on own earnings in noncovered governmental employment (provided by 1977 Act) does not apply if eligible for such pension after November 1982 and before July 1983.
1983 ............. ..... Reduction for retirement pension payable based on own earnings in noncovered governmental employment reduced to 2/3 of the pension amount.
For those who attain age 62 in 2000 or later, retirement age gradually increased to 67 (see Wife).

1 Originally payable on basis of Northern District of California District Court decision in Oliver v. Califano, June 24, 1977.


e. Child


Act
Type of Benefit
Percent
of PIA

Conditions
1939 Child under age 18 50 Fully insured.1/ Student at age 16-17.
1946 ............. ..... Student requirement eliminated.
1965 Aged 18-21 ..... Full-time student.
1972 ............. ..... Benefits extended to end of quarter or semester in which 22nd birthday occurs while working on any undergraduate degree. Includes grandchild under certain circumstances.
1956 Disabled child aged 18 and over 50 Disabled before age 18.
1972 ............. ..... Disabled before age 22. Includes grandchild under certain circumstances.
1981 Aged 18-21 ..... Student category eliminated (on phased out basis for those entitled before May 1982), except for high school students under age 19.

1 Under 1939 Act, not generally available to child of married woman worker. Under 1950 Act, available if woman worker is fully and currently insured; currently insured requirement eliminated in 1967 Act.



4. Auxiliary Beneficiaries of Disabled Worker


Act
Type of Benefit
Percent
of PIA

Conditions
1958 Same as auxiliary beneficiaries of retired-worker beneficiary 50 Disability insured. Same as auxiliaries of retired-worker beneficiary.


5. Survivors

a. Widowed Mother


Act
Type of Benefit
Percent
of PIA

Conditions
1939 Widowed mother 75 Fully or currently insured. Caring for eligible child.
1950 ............. ..... Divorced and dependent.
1965 ............. ..... Eligible child excludes student aged 18-21.
1972 ............. ..... Dependency requirement eliminated for divorced mother.
1977 ............. ..... Noncovered pension offset (see Wife).
1981 ............. ..... Eligible child excludes nondisabled child aged 16-17.
1982 ............. ..... Reduction for retirement pension payable based on own earnings in noncovered governmental employment (provided by 1977 Act) does not apply if eligible for such pension after November 1982 and before July 1983 and dependent on spouse.
1983 ............. ..... Reduction for retirement pension payable based on own earnings in noncovered governmental employment reduced to 2/3 of the pension amount.


b. Widowed Father


Act
Type of Benefit
Percent
of PIA

Conditions
1983 1/ Widowed father 75 Fully or currently insured. Caring for eligible child under age 18.
1983 2/ ............. ..... Divorced husband, married 10 years.
1981 ............. ..... Eligible child excludes nondisabled child aged 16-17.

1 Originally payable on basis of Supreme Court decision in Weinberger v. Weisenfeld, March 19, 1975.
2 Originally payable on basis of Western District of Washington District Court decision in O'Connor v. Harris, September 24, 1979.


c. Widow


Act
Type of Benefit
Percent
of PIA

Conditions
1939 Widow aged 65 and over 75 Fully insured.
1956 Aged 62-64 ..... ................
1961 ............. 82 1/2 ................
1965 ............. ..... Divorced wife, dependent and married 20 years.
  Aged 60-61 ..... Reduced 5/9% per month under age 62.
1968 Disabled widow aged 50-59 82 1/2 Fully insured. Reduced 13 1/3% plus 43/198% per month under age 60. Includes divorced wife, dependent and married 20 years.
1972 Aged 65 and over 100 Limited to amount husband (or former husband) would be receiving if still living but not less than 82 1/2% of PIA.
  Aged 62-64 ..... Reduced 19/40% per month under age 65. Benefit limited to the larger of 82 1/2% of PIA or amount husband (or former husband) would be receiving if still living.
  Aged 60-61 ..... Further reduced 19/40% per month under age 62.
  Disabled widow aged 50-59 100 Reduced 28 1/2% plus 43/240% per month under age 60.
Dependency requirement eliminated for divorced wife.
1977 ............. ..... Increased by any delayed-retirement increment husband (or former husband) would be receiving. Marriage requirement reduced to 10 years for divorced wife.
Noncovered pension offset (see Wife).
1982 ............. ..... Reduction for retirement pension payable based on own earnings in noncovered governmental employment (provided by 1977 Act) does not apply if eligible for such pension after November 1982 and before July 1983 and dependent on spouse.
1983 ............. ..... Reduction for retirement pension payable based on own earnings in noncovered governmental employment reduced to 2/3 of the pension amount.
For those who attain age 60 in 2000-04, eligibility age for full benefits ("retirement age") is increased to age 65 plus 2 months for each year after 1999 the person attains age 60; for those who attain age 60 in 2005-16 to age 66; for those who attain age 60 in 2017-21 to age 66 plus 2 months for each year after 2016 the person attains age 60; and to age 67 for those who attain age 60 in 2022 or later. For benefits starting before retirement age, reduced by a uniform percentage for each month before retirement age, with a reduction of 28 1/2% for benefits starting at age 60.
Alternative computation provided if worker dies before age 62. If the worker's first eligibility is after 1978 and the widow's first eligibility is after 1984, benefit may, if higher, be based on a PIA using an indexing point which is the second year before the earlier of the year the worker would have attained age 62 or the year of the widow's first eligibility.
Reduction for months before age 60 eliminated.


d. Widower


Act
Type of Benefit
Percent
of PIA

Conditions
1950 Widower aged 65 and over 75 Fully and currently insured. Dependent.
1961 Aged 62 and over 82 1/2 ................
1968 ............. ..... Currently insured requirement eliminated.
  Disabled widower aged 50-61 82 1/2 Fully insured. Dependent. Reduced 5/9% per month under ages 60-62 plus 43/198% per month under age 60.
1972 Aged 65 and over 100 Limited to amount wife would be receiving if still living, but not less than 82 1/2% of PIA.
  Aged 62-64 ..... Reduced 19/40% per month under age 65. Benefit limited to the larger of 82 1/2% of PIA or amount wife would be receiving if still living.
  Aged 60-61 ..... Further reduced 19/40% per month under age 62.
  Disabled widower aged 50-59 100 Reduced 28 1/2% plus 43/240% per month under age 60.
Disability requirement eliminated for ages 60-61.
1983 1/ ............. ..... Dependency requirement eliminated.
1977 ............. ..... Increased by any delayed-retirement increment wife would be receiving. Noncovered pension offset (see Wife). However, delay of applicability of offset until December 1982 does not apply unless dependent on wife.
1983 2/ ............. ..... Divorced husband, married 10 years.
1982 ............. ..... Reduction for retirement pension payable based on own earnings in noncovered governmental employment (provided by 1977 Act) does not apply if eligible for such pension after November 1982 and before July 1983.
1983 ............. ..... Reduction for retirement pension payable based on own earnings in noncovered governmental employment reduced to 2/3 of the pension amount.
For those who attain age 60 in 2000 or later, retirement age gradually increased to 67 (see Widow).
Alternative computation provided if worker dies before age 62 (see Widow).
Reduction for months before age 60 eliminated.

1 Originally eliminated by Supreme Court decision in Califano v. Goldfarb, March 2, 1977.
2 Originally payable on basis of District of Oregon District Court decision in Ambrose v. Califano, July 16, 1980.


e. Children


Act
Type of Benefit
Percent
of PIA

Conditions
1939 Child under age 18 50 Fully or currently insured. Student at age 16-17.
1946 ............. ..... Student requirement eliminated.
1950 ............. ..... Plus 25% of PIA divided among the children.
1960 ............. 75 Additional 25% of PIA eliminated.
1965 Aged 18-21 ..... Full-time student.
1972 ............. ..... Benefits extended to end of quarter or semester in which 22nd birthday occurs while working on undergraduate degree. Includes grandchild under certain circumstances.
1956 Disabled child age 18 and over 50 Fully or currently insured. Disabled before age 18. Plus 25% of PIA divided among the children.
1960 ............. 75 Additional 25% of PIA eliminated.
1972 ............. ..... Disabled before age 22. Includes grandchild under certain circumstances.
1981 Aged 18-21 ..... Student category eliminated (on phased out basis for those entitled before May 1982), except for high school students under age 19.


f. Parent


Act
Type of Benefit
Percent
of PIA

Conditions
1939 Parent aged 65 and over 50 Fully insured. Dependent. No surviving widow or child under age 18.
1946 ............. ..... No surviving eligible widow or child.
1950 ............. 75 ................
1956 Woman aged 62-64 ..... ................
1958 ............. ..... No other survivor requirement eliminated.
1961 Aged 62 and over 82 1/2 75% each if two parents.


6. Rounding of Benefit Amounts

Act  
1935 Nearest cent.
1950 Next higher $.10 (if not already multiple of $.10) at each computation step.
1981 Next lower $.10 (if not already multiple of $.10) at each computation step. Final individual benefit check (after SMI premium and some other deductions, if any) to next lower $1 (if not already multiple of $1).


7. Tax Treatment of Social Security Taxes

Act  
1939 No income tax deduction for Social Security taxes.
1983 For 1990 and later, self-employment income is reduced by one-half the product of the self-employment tax rate and the amount of self-employment income (before the effects of this adjustment), and one-half the amount of self-employment tax paid is allowed as an income tax deduction.


8. Tax Credits

Act  
1983 For employees, a credit of 0.3% of wages is provided for 1984 only. The employee tax withheld is based on an OASDI tax rate of 5.4% while trust fund appropriations are based on a rate of 5.7%. For the self-employed, a similar credit is provided of 2.7% for tax years beginning in 1984, 2.3% for 1985, and 2.0% for 1986-89 against the combined OASDI and HI taxes on net earnings.


9. Taxation of Benefits

Act  
1935 Benefits are not subject to income tax.
1983 If the taxpayer's combined income (total of adjusted gross income, interest on tax-exempt bonds, and 50% of Social Security benefits and Tier I Railroad Retirement Benefits) exceeds a threshold amount ($25,000 for an individual, $32,000 for a married couple filing a joint return, and zero for a married person filing separately), the amount of benefits subject to income tax is the lesser of 50% of benefits or 50% of the excess of the taxpayer's combined income over the threshold amount. The additional income tax revenues resulting from this provision are transferred to the trust funds from which the corresponding benefits were paid. Effective for taxable years beginning after 1983.
1993 Modified for a taxpayer with combined income exceeding a secondary threshold amount ($34,000 for an individual, $44,000 for a married couple filing a joint return, and zero for a married person filing separately), so that the amount of benefits subject to income tax is increased to the sum of (1) the smaller of (a) $4,500 for an individual, $6,000 for a married couple filing a joint return, or zero for a married person filing separately, or (b) 50% of the benefit, plus (2) 85% of the excess of the taxpayer's combined income over the secondary threshold. However, no more than 85% of the benefit amount is subject to income tax. The additional income tax revenues resulting from the increase in the taxable percentage from 50% to 85% are transferred to the HI Trust Fund. Effective for taxable years beginning after 1993.


F. TRANSITIONAL BENEFITS FOR CERTAIN PERSONS
AGED 72 AND OVER


Act
Benefit
 
Effective date
1965 $35 for individual; $52.50 for couple with 3-5 QC required.   September 1965
1966 QC requirement eliminated for those aged 72 before 1968 with reduced QC requirement for persons who attain age 72 in 1968-71 (see section B.1). For those newly eligible under 1966 liberalization, reduced by amount of other government pension and not available to those on public assistance.   October 1966
1968 $40 for individual; $60 for couple.   February 1968
1969 $46 for individual; $69 for couple.   January 1970
1971 $48.30 for individual; $72.50 for couple.   January 1971
1972 $58 for individual; $87 for couple. 1/   September 1972
1973 $64.40 for individual; $96.60 for couple. 1/ For the uninsured, benefit suspended if eligible for Supplemental Security Income.   June 1974
1983 Benefit for couple increased from approximately 1 1/2 to 2 times benefit for an individual. $251.20 for couple. 1/   May 1983

1 Subject to automatic provisions; see section J.5.


G. LUMP-SUM PAYMENTS


Act
Type
Amount
Conditions
1935 Lump-sum refund at age 65 3 1/2% wage credits Not insured.
  Lump-sum death benefit 3 1/2% wage credits less benefits received Aged 65 or over. Fully insured.
1939 Lump-sum refund at age 65 eliminated .......... ..........
  Lump-sum death benefit 6 x PIA if no eligible survivor Any age. Fully or currently insured.
1950 Lump-sum death benefit 3 x PIA ..........
1954 Lump-sum death benefit 3 x PIA, but not more
than $255
..........
1973 Lump-sum death benefit $255 ..........
1981 Lump-sum death benefit $255 Payable only to surviving spouse, or children eligible for benefits.



H. EARNINGS TEST


Act
Beneficiaries
exempt
Earnings
subject
to test
Amount permitted
without reduction
in benefits
 
Reduction in monthly benefits
 
Effective
year
Annual
earnings
 
Monthly
earnings1/,2/
1935 .......... Covered. ..........   ..........   Full monthly benefit.    
1939 .......... .......... ..........   $14.99   ..........    
1950 Aged 75
and over
.......... 3/ $600   50.00   ..........   1951
1952 .......... .......... 3/ 900   75.00   ..........   1953
1954 Aged 72
and over
All.4/ 1,200   80.00   One month's full benefit for each $80.00 or fraction thereof.   1955
1956 Disabled. .......... ..........   ..........   ..........   1958
1958 .......... .......... ..........   100.00   ..........   1959
1960 .......... .......... ..........   ..........   $1 for each $2 of earnings from $1,201-$1,500.
$1 for each $1 of earnings over $1,500.
  1961
1961 .......... .......... ..........   ..........   $1 for each $2 of earnings from $1,201-$1,700.
$1 for each $1 of earnings over $1,700.
  1962
1965 .......... .......... 1,500   125.00   $1 for each $2 of earnings from $1,501-$2,700.   1966
1968 .......... .......... 1,680   140.00   $1 for each $2 of earnings from $1,681-$2,880.
$1 for each $1 of earnings over $2,880.
  1968
1972 .......... Excludes
earnings
after
age 72.
5/ 2,100   5/ 175.00   $1 for each $2 of earnings over $2,100. 5/   1973
1973 .......... .......... 5/ 2,400   5/ 200.00   $1 for each $2 of earnings over $2,400. 5/   1974

For beneficiaries who have reached age of eligibility for unreduced benefits: 6/

1977 .......... .......... 4,000   333.33   $1 for each $2 of earnings over $4,000.   1978
  .......... .......... 4,500   375.00   $1 for each $2 of earnings over $4,500.   1979
  .......... .......... 5,000   416.66   $1 for each $2 of earnings over $5,000.   1980
  .......... .......... 5,500   458.33   $1 for each $2 of earnings over $5,500.   1981
  .......... .......... 5/ 6,000   5/ 500.00   $1 for each $2 of earnings over $6,000. 5/   1982
1981 Aged 70
and over.
Excludes
earnings
after
age 70.
..........   ..........   ..........   1983
1983 .......... .......... ..........   ..........   $1 for each $3 of earnings over exempt amount.   1990
1996 .......... .......... 12,500   1,041.66   $1 for each $3 of earnings over $12,500.   1996
  .......... .......... 13,500   1,125.00   $1 for each $3 of earnings over $13,500.   1997
  .......... .......... 14,500   1,208.33   $1 for each $3 of earnings over $14,500.   1998
  .......... .......... 15,500   1,291.66   $1 for each $3 of earnings over $15,500.   1999
  .......... .......... 17,000   1,416.66   $1 for each $3 of earnings over $17,000.   2000
  .......... .......... 25,000   2,083.33   $1 for each $3 of earnings over $25,000.   2001
  .......... .......... 30,000   2,500.00   $1 for each $3 of earnings over $30,000.   2002

1 Monthly test for self-employment income is defined in terms of substantial gainful services.
2 Monthly test eliminated except for year of retirement by 1977 Act.
3
Applied to self-employment income only.
4 Special provisions for earnings in noncovered employment outside United States.
5 Subject to automatic provisions; see section J.8 for amounts.
6 Age 65 for workers who attain age 62 before 2000, gradually increasing to age 67 for workers who attain age 62 in 2022 or later (see section E.1 (1983 Act)).


I. FINANCING


    Contribution rate and earnings base
        Contribution rate (percent)
        Employer and employee each
 
Self-employed
Act1/
Years
Earnings base
 
OASI
  DI
OASDI
 
  OASI
   DI
OASDI
1935-47 1937-49 $3,000   1.0   --   --       --   --    --
1947 1950 3,000   1.5   --   --       --   --    --
1950 1951-53 3,600   1.5   --   --      2.25   --    --
  1954 3,600   2.0   --   --      3.00   --    --
1954 1955-56 4,200   2.0   --   --      3.00   --    --
1956 1957-58 4,200   2.0 0.25 2.25      3.00 0.375   3.375
1958 1959 4,800   2.25 0.25 2.5      3.375 0.375   3.75
  1960-61 4,800   2.75 0.25 3.0      4.125 0.375   4.5
1961 1962 4,800   2.875 0.25 3.125      4.325 0.375   4.7
  1963-65 4,800   3.375 0.25 3.625      5.025 0.375   5.4
1965 1966 6,600   3.5 0.35 3.85      5.275 0.525   5.8
  1967 6,600   3.55 0.35 3.9      5.375 0.525   5.9
1968 1968 7,800   3.325 0.475 3.8      5.0875 0.7125   5.8
  1969 7,800   3.725 0.475 4.2      5.5875 0.7125   6.3
1969 1970 7,800   3.65 0.55 4.2      5.475 0.825   6.3
  1971 7,800   4.05 0.55 4.6      6.075 0.825   6.9
1971 1972 9,000   4.05 0.55 4.6      6.075 0.825   6.9
1972 1973 10,800   4.3 0.55 4.85      6.205 0.795   7.0
1973 1974 13,200   4.375 0.575 4.95      6.185 0.815   7.0
  1975 2/ 14,100   4.375 0.575 4.95      6.185 0.815   7.0
  1976 2/ 15,300   4.375 0.575 4.95      6.185 0.815   7.0
  1977 2/ 16,500   4.375 0.575 4.95      6.185 0.815   7.0
1977 1978 2/ 17,700   4.275 0.775 5.05      6.01 1.09   7.1
  1979 22,900   4.33 0.75 5.08      6.01 1.04   7.05
1980 1980 25,900   4.52 0.56 5.08      6.2725 0.7775   7.05
  1981 29,700   4.70 0.65 5.35      7.025 0.975   8.0
  1982 2/ 32,400   4.575 0.825 5.4      6.8125 1.2375   8.05
1983 1983 2/ 35,700   4.775 0.625 5.4      7.1125 0.9375   8.05
  1984 2/ 37,800   5.2 0.5 5.7 3/    10.4 1.0 11.4 3/
  1985 2/ 39,600   5.2 0.5 5.7    10.4 1.0 11.4 3/
  1986 2/ 42,000   5.2 0.5 5.7    10.4 1.0 11.4 3/
  1987 2/ 43,800   5.2 0.5 5.7    10.4 1.0 11.4 3/
  1988 2/ 45,000   5.53 0.53 6.06    11.06 1.06 12.12 3/
  1989 2/ 48,000   5.53 0.53 6.06    11.06 1.06 12.12 3/
1989 1990 4/ 51,300   5.6 0.6 6.2    11.2 1.2 12.4
  1991 4/ 53,400   5.6 0.6 6.2    11.2 1.2 12.4
  1992 4/ 55,500   5.6 0.6 6.2    11.2 1.2 12.4
  1993 2/ 57,600   5.6 0.6 6.2    11.2 1.2 12.4
1994 1994 2/ 60,600   5.26 0.94 6.2    10.52 1.88 12.4
  1995 2/ 61,200   5.26 0.94 6.2    10.52 1.88 12.4
  1996 2/ 62,700   5.26 0.94 6.2    10.52 1.88 12.4
  1997 2/ 65,400   5.35 0.85 6.2    10.7 1.7 12.4
  1998 2/ 68,400   5.35 0.85 6.2    10.7 1.7 12.4
  1999 2/ 72,600   5.35 0.85 6.2    10.7 1.7 12.4
  2000+ (2/)   5.3 0.9 6.2    10.6 1.8 12.4

1 Contribution rates provided by law, but superseded before they could become effective, are not shown.
2 In accordance with the automatic provisions.
3 Employee tax for 1984 and self-employment tax for 1984-89 partially offset by a general revenue tax credit. See section E.8.
4 Adjusted in accordance with the automatic provisions, using a transitional rule for computing "deemed" average wage for 1988, 1989, and 1990.


1. General Revenue Financing

Act  
1956 For cost of gratuitous military service wage credits.
1966 For cost of transitional uninsured benefits for those aged 72 and older, with fewer than 3 QC.
1972 For cost of gratuitous wage credits for U.S.-citizen internees of Japanese ancestry.
1983 For taxes which would have been collected on deemed post-1956 military service wage credits. Estimated cost for pre-1957 credits funded in advance.


2. Railroad Retirement Interchange

Act  
1951 Railroad interchange provision enacted.


3. Interfund Borrowing

Act  
1981 Borrowing among OASI, DI, and HI Trust Funds authorized to be repaid with interest. Effective through December 31, 1982.
1983 Borrowing authorized through 1987, with loans to be repaid with interest by December 31, 1989.


4. Crediting of Taxes to Trust Funds

Act  
1935 Credited on a reserve basis (interpreted to be taxes less Treasury cost of collection).
1939 Automatically credited to trust funds on a daily basis.
1983 Estimated receipts for a month credited at the beginning of month, with interest payable to the general fund for amounts transferred to the trust funds before the corresponding taxes are collected. Effective May 1983.
1990 Returned to 1939 Act basis. Effective December 1990.


J. AUTOMATIC PROVISIONS

1. Based on CPI Increases

Act  
1972 Percentages in PIA formula and maximum family benefit formula increased each January, based on increase in average CPI for calendar quarter April-June of preceding year over such average CPI for second preceding year, if at least 3%. Percentage increase rounded to nearest one-tenth percent. PIAs in current-payment status, minimum PIA, and transitional benefits for age 72 and older increased by same percentage.
1973 Increases to take effect in June, based on increase in average CPI for calendar quarter January-March of same year over such average CPI for preceding year.
1977 Special minimum amounts increased by same percentage, beginning June 1979.
1983 1983 increase delayed from June to December. Beginning in 1984, increases to take effect in December, based on increase in average CPI for calendar quarter July-September of same year over such average CPI for preceding year. Beginning in 1985, lesser of increase in wages or prices if ratio of estimated OASDI benefit payments to net OASI and DI Trust Fund assets is less than 15% (less than 20% in 1989 and later). CPI increases so reduced may be restored if the trust fund ratio exceeds 32%.
1986 Requirement that CPI increase be at least 3% eliminated.


2. Based on Wage Increases

Act  
1972 Earnings base (shown in section I) increased in January, based on increase in average earnings in covered employment for calendar quarter January-March of preceding year over such average earnings for second preceding year. (See section J.3.) Increase effective only if automatic benefit increase effective at same time. Resulting earnings base rounded to nearest multiple of $300. Earnings test amounts increased by same percentage, with monthly amount rounded to nearest multiple of $10. PIA formula extended, with factor of 20% applying to AMW in new segment of one-twelfth of increase in earnings base.
1973 Increase in earnings base effective only if automatic CPI benefit increase effective in preceding June.
1976 Beginning with increase in earnings base in January 1977, increase based on increase in average earnings in covered employment for calendar quarter January-March of second preceding year over such average earnings for third preceding year. Beginning with increase in earnings base in January 1981, increase based on increase in average annual earnings in nationwide employment for second preceding year over such average annual earnings for third preceding year.
1977 Quarter of coverage amount ($250 in 1978) increased by same percentage. (See section B.1.) Result rounded to nearest $10. Dollar amounts in 1977 Act PIA formula and maximum family benefit formula increased by same percentage. Results rounded to nearest $1. Changeover from using average earnings for calendar quarter January-March to using average annual earnings, when increasing earnings base, moved up to January 1980 increase.
1983 Increase in earnings base effective only if automatic CPI benefit increase effective in preceding December.
1989 Deferred compensation (first covered in 1984) to be included in average wage computation for 1991 and later average wages, but adjusted to remove increase in average wage due to amount of deferred compensation in average wage for 1990.
  For purposes of calculating earnings base (and old-law earnings base) only for 1990-92, transitional average wages computed for 1988-90. Transitional average wage for 1988 is actual average wage for 1988 plus 2% of average wage for 1987. Transitional average wage for 1989 is actual average wage for 1989 plus 2% of average wage for 1988. Transitional average wage for 1990 is calculated on same basis as actual average wage, but includes deferred compensation.
1994 Technical change in method used to compute the earnings base (including the "old-law" base -- the base that would have been in effect in the absence of the 1977 amendments) and the retirement test exempt amounts.


3. Average First-Quarter Earnings

 
 
  Year
  Earnings
 
  1973   $1,895.04  
  1974   2,007.69  
  1975   2,157.73  
  1976   2,306.62  
  1977   2,444.86  
 
 


4. Average Wage Index


Year
  Earnings
  Year
  Earnings
  Year
  Earnings
1951   $2,799.16   1971   $6,497.08   1991   $21,811.60
1952   2,973.32   1972   7,133.80   1992   22,935.42
1953   3,139.44   1973   7,580.16   1993   23,132.67
1954   3,155.64   1974   8,030.76   1994   23,753.53
1955   3,301.44   1975   8,630.92   1995   24,705.66

1956   3,532.36   1976   9,226.48   1996   25,913.90
1957   3,641.72   1977   9,779.44   1997   27,426.00
1958   3,673.80   1978   10,556.03  
1959   3,855.80   1979   11,479.46  
1960   4,007.12   1980   12,513.46  

1961   4,086.76   1981   13,773.10  
1962   4,291.40   1982   14,531.34  
1963   4,396.64   1983   15,239.24  
1964   4,576.32   1984   16,135.07  
1965   4,658.72   1985   16,822.51  

1966   4,938.36   1986   17,321.82  
1967   5,213.44   1987   18,426.51  
1968   5,571.76   1988   19,334.04  
1969   5,893.76   1989   20,099.55  
1970   6,186.24   1990   21,027.98  



5. Automatic Benefit Increases


Year
  COLA
  Year
  COLA
  Year
  COLA
1975     8.0%   1985   3.1%   1995   2.6%
1976     6.4   1986   1.3   1996   2.9
1977     5.9   1987   4.2   1997   2.1
1978     6.5   1988   4.0   1998   1.3
1979     9.9   1989   4.7  

1980   14.3   1990   5.4  
1981   11.2   1991   3.7  
1982     7.4   1992   3.0  
1983     3.5   1993   2.6  
1984     3.5   1994   2.8  

Note: Automatic benefit increases, also known as cost-of-living adjustments or COLAs, have been in effect since 1975. The 1975-82 COLAs were effective with benefits payable for June in each of those years; thereafter COLAs have been effective with benefits payable for December.


6. Old-Law Earnings Bases 1/

 
 
  Year
  Earnings
 
  1979   $18,900  

  1980   20,400  
  1981   22,200  
  1982   24,300  
  1983   26,700  
  1984   28,200  

  1985   29,700  
  1986   31,500  
  1987   32,700  
  1988   33,600  
  1989   35,700  

  1990   38,100  
  1991   39,600  
  1992   41,400  
  1993   42,900  
  1994   45,000  

  1995   45,300  
  1996   46,500  
  1997   48,600  
  1998   50,700  
  1999   53,700  
 
 
  1/ Base that would have been in effect in the absence of the 1977 amendments.  



7. AIME PIA Bend Points


    In PIA formula
  In maximum family benefit formula
Effective
year
  First
  Second
  First
  Second
  Third
1975   - -   - -   - -   - -   - -
1976   - -   - -   - -   - -   - -
1977   - -   - -   - -   - -   - -
1978   - -   - -   - -   - -   - -
1979   $180   $1,085   $230   $332   $433

1980   194   1,171   248   358   467
1981   211   1,274   270   390   508
1982   230   1,388   294   425   554
1983   254   1,528   324   468   610
1984   267   1,612   342   493   643

1985   280   1,691   358   517   675
1986   297   1,790   379   548   714
1987   310   1,866   396   571   745
1988   319   1,922   407   588   767
1989   339   2,044   433   626   816

1990   356   2,145   455   656   856
1991   370   2,230   473   682   890
1992   387   2,333   495   714   931
1993   401   2,420   513   740   966
1994   422   2,545   539   779   1,016

1995   426   2,567   544   785   1,024
1996   437   2,635   559   806   1,052
1997   455   2,741   581   839   1,094
1998   477   2,875   609   880   1,147
1999   505   3,043   645   931   1,214



8. Earnings Test Exempt Amounts


Effective
year
  Under age 65
  Age 65-69 1/
Monthly
  Annual
Monthly
  Annual
1975   $210.00   $2,520      $210.00   $2,520
1976   230.00   2,760        230.00   2,760
1977   250.00   3,000        250.00   3,000
1978   270.00   3,240        333.33 1/3   4,000
1979   290.00   3,480        375.00   4,500

1980   310.00   3,720        416.66 2/3   5,000
1981   340.00   4,080        458.33 1/3   5,500
1982   370.00   4,440        500.00   6,000
1983   410.00   4,920        550.00   6,600
1984   430.00   5,160        580.00   6,960

1985   450.00   5,400        610.00   7,320
1986   480.00   5,760        650.00   7,800
1987   500.00   6,000        680.00   8,160
1988   510.00   6,120        700.00   8,400
1989   540.00   6,480        740.00   8,880

1990   570.00   6,840        780.00   9,360
1991   590.00   7,080        810.00   9,720
1992   620.00   7,440        850.00   10,200
1993   640.00   7,680        880.00   10,560
1994   670.00   8,040        930.00   11,160

1995   680.00   8,160        940.00   11,280
1996   690.00   8,280     1,041.66 2/3   12,500
1997   720.00   8,640     1,125.00   13,500
1998   760.00   9,120     1,208.33 1/3   14,500
1999   800.00   9,600     1,291.66 2/3   15,500

1/ Beginning in 1983, the test does not apply at ages 70 and over. In 1955-82, it did not apply at ages 72 and over. Amounts for 1978-82 and for 1996-99 represent ad hoc increases and are specified in the law. (See section H.) Amounts for 1978-95 are also used as the substantial gainful activity limits for blind individuals.


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