Primary Insurance Amount

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 2013 these portions are the first $791, the amount between $791 and $4,768, and the amount over $4,768. These dollar amounts are the "bend points" of the 2013 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 old-age insurance benefits or disability insurance benefits in 2013, or who dies in 2013 before becoming eligible for benefits, his/her PIA will be the sum of:

(a) 90 percent of the first $791 of his/her average indexed monthly earnings, plus

(b) 32 percent of his/her average indexed monthly earnings over $791 and through $4,768, plus

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 2013

Amounts in
formula

Average wage indices
For 1977:	9,779.44
For 2011:	42,979.61

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

Computation of bend points for 2013

First bend point
$180 times 42,979.61 divided by 9,779.44 equals $791.08, which rounds to $791

Second bend point
$1,085 times 42,979.61 divided by 9,779.44 equals $4,768.46, which rounds to $4,768