Automatic Increases
PIA formula bend points
Wageindexed amounts

PIA definition
The "primary insurance amount" (PIA) is the
benefit (before rounding down to next lower whole dollar) a person would
receive if he/she elects to begin receiving retirement benefits at his/her
normal retirement age. At this age, the
benefit is neither reduced for early retirement nor increased for delayed
retirement.
PIA formula bend points
The PIA is the sum of three separate percentages
of portions of average indexed monthly
earnings. The portions depend on the year in which a worker
attains age 62, becomes disabled before age 62, or dies before attaining age 62.
For 2008 these portions are the first $711,
the amount between $711 and $4,288,
and the amount over $4,288.
These dollar amounts are the "bend points" of the 2008 PIA formula.
A table shows bend points, for years
beginning with 1979, for both the PIA and
maximum family benefit formulas.
PIA formula
For an individual who first becomes eligible for oldage
insurance benefits or disability insurance benefits in 2008, or who dies
in 2008 before becoming eligible for benefits, his/her PIA will be the
sum of:
 (a) 90 percent of the first $711 of his/her
average indexed monthly earnings, plus
 (b) 32 percent of his/her average indexed monthly earnings over
$711 and through $4,288, plus
 (c) 15 percent of his/her average indexed monthly earnings over
$4,288.
We round this amount to the next lower multiple of $.10 if it is not
already a multiple of $.10.
Determination of the PIA bend points for 2008
Amounts in formula 

Bend points for 1979 
First:  $180 
Second:  $1,085 

Computation of bend points for 2008 
First bend point $180 times $38,651.41 divided
by $9,779.44 equals $711.42, which rounds to
$711. 
Second bend point $1,085 times $38,651.41 divided
by $9,779.44 equals $4,288.26, which rounds to
$4,288. 
