Automatic Increases
Retirement test exempt amounts
Wageindexed amounts

Application of lower exempt amount
The lower exempt amount applies in years prior to the year
a person attains his or her normal
retirement age. (A higher exempt amount
applies in the year a person attains normal retirement age.)
One dollar in benefits is deducted for every $2 in
earnings above the lower exempt amount.
Determination of the Lower Exempt Amount for 2008
The monthly exempt amount for 2008 is determined
to be the larger of:
 the 1994 monthly exempt amount multiplied by the ratio of the
national average wage index for 2006 to that for 1992, or
 the 2007 monthly exempt amount of $1,080.
If the amount so determined is not a multiple of $10, we round it to the
nearest multiple of $10. The annual exempt amount is then 12 times the
rounded monthly exempt amount.
Calculation details
Amounts in formula 
1994 monthly exempt amount  $670 
1992 average wage index  $22,935.42 
2006 average wage index  $38,651.41 
Computation  $670 times ($38,651.41
divided by $22,935.42) equals $1,129.10, which rounds to
$1,130. 
Higher amount  $1,130
exceeds $1,080, so the monthly exempt
amount for 2008 is $1,130 
The annual exempt amount for 2008 is 12 times the monthly amount
$1,130, or $13,560.
Application of higher exempt amount
The higher exempt amount applies in the year
a person attains his or her normal
retirement age. (A lower exempt amount
applies in years prior to the year a person attains normal
retirement age.) In applicable months, $1 in benefits is deducted
for every $3 in earnings above the higher exempt amount.
Determination of the Higher Exempt Amount for 2008
The monthly exempt amount for 2008
is determined to be the larger of:
 the 2002 monthly exempt amount multiplied by the ratio of the
national average wage index for 2006 to that for 2000, or
 the 2007 monthly exempt amount of $2,870.
If the amount so determined is not a multiple of $10, we round it to the
nearest multiple of $10. The annual exempt amount is then 12 times the
rounded monthly exempt amount.
Calculation details
Amounts in formula 
2002 monthly exempt amount 
$2,500 
2000 average wage index  $32,154.82 
2006 average wage index  $38,651.41 
Computation  $2,500 times ($38,651.41
divided by $32,154.82) equals $3,005.10, which rounds
to $3,010. 
Higher amount  $3,010
exceeds $2,870, so the monthly exempt amount
for 2008 is $3,010 
The annual exempt amount for 2008 is 12 times the
monthly amount $3,010, or
$36,120.
