Annual Statistical Supplement, 2021

Program Provisions and SSA Administrative Data

Old-Age, Survivors, and Disability Insurance

Benefit Computation and Automatic Adjustments

Table 2.A8 Factors for indexing earnings in a benefit computation, 1951–2021
Year Annual maximum taxable earnings (dollars) Average annual wage a (dollars) Factors for workers who were first eligible (attained age 62, became disabled, or died) in b—
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
1951 3,600 2,799.16 12.7354456 13.2014390 13.8082175 14.4348590 14.7669194 14.5442240 14.8879771 15.3544671 15.8339180 16.0362966 16.6055245 17.1832371 17.3774097 17.9774968 18.6290887 19.3272232
1952 3,600 2,973.32 11.9894764 12.4281746 12.9994114 13.5893479 13.9019581 13.6923069 14.0159250 14.4550906 14.9064581 15.0969825 15.6328683 16.1767418 16.3595408 16.9244784 17.5379038 18.1951455
1953 3,600 3,139.44 11.3550665 11.7705514 12.3115619 12.8702826 13.1663513 12.9677936 13.2742878 13.6902155 14.1176993 14.2981423 14.8056723 15.3207674 15.4938938 16.0289383 16.6099050 17.2323695
1954 3,600 3,155.64 11.2967734 11.7101254 12.2483585 12.8042109 13.0987597 12.9012213 13.2061420 13.6199345 14.0452238 14.2247405 14.7296650 15.2421157 15.4143533 15.9466511 16.5246353 17.1439042
1955 4,200 3,301.44 10.7978791 11.1929764 11.7074398 12.2387443 12.5202851 12.3314705 12.6229251 13.0184435 13.4249509 13.5965397 14.0791655 14.5689850 14.7336162 15.2424063 15.7948653 16.3867858
1956 4,200 3,532.36 10.0919923 10.4612610 10.9420925 11.4386642 11.7017999 11.5253287 11.7977301 12.1673923 12.5473253 12.7076968 13.1587720 13.6165708 13.7704396 14.2459687 14.7623119 15.3155369
1957 4,200 3,641.72 9.7889322 10.1471118 10.6135041 11.0951638 11.3503976 11.1792258 11.4434471 11.8020084 12.1705321 12.3260877 12.7636172 13.2076684 13.3569165 13.8181656 14.3190031 14.8556149
1958 4,200 3,673.80 9.7034542 10.0585062 10.5208258 10.9982797 11.2512848 11.0816076 11.3435217 11.6989520 12.0642577 12.2184550 12.6521640 13.0923376 13.2402825 13.6975039 14.1939681 14.7258942
1959 4,800 3,855.80 9.2454354 9.5837284 10.0242258 10.4791431 10.7202059 10.5585378 10.8080891 11.1467426 11.4948052 11.6417242 12.0549614 12.4743581 12.6153198 13.0509596 13.5239898 14.0308081
1960 4,800 4,007.12 8.8963021 9.2218202 9.6456832 10.0834215 10.3153811 10.1598180 10.3999456 10.7258106 11.0607294 11.2021003 11.5997325 12.0032916 12.1389302 12.5581190 13.0132864 13.5009658
1961 4,800 4,086.76 8.7229370 9.0421116 9.4577147 9.8869226 10.1143620 9.9618304 10.1972785 10.5167933 10.8451854 10.9838013 11.3736848 11.7693797 11.9023750 12.3133950 12.7596923 13.2378681
1962 4,800 4,291.40 8.3069744 8.6109288 9.0067134 9.4154542 9.6320478 9.4867899 9.7110104 10.0152887 10.3280212 10.4600270 10.8313185 11.2081442 11.3347975 11.7262176 12.1512327 12.6066062
1963 4,800 4,396.64 8.1081348 8.4048137 8.7911246 9.1900815 9.4014907 9.2597097 9.4785632 9.7755582 10.0808049 10.2096510 10.5720550 10.9398609 11.0634826 11.4455334 11.8603752 12.3048487
1964 4,800 4,576.32 7.7897852 8.0748156 8.4459588 8.8292515 9.0323601 8.8961458 9.1064065 9.3917405 9.6850024 9.8087896 10.1569645 10.5103293 10.6290972 10.9961476 11.3947014 11.8217236
1965 4,800 4,658.72 7.6520053 7.9319942 8.2965729 8.6730862 8.8726023 8.7387974 8.9453391 9.2256264 9.5137012 9.6352990 9.9773157 10.3244303 10.4410976 10.8016558 11.1931604 11.6126296
1966 6,600 4,938.36 7.2187022 7.4828364 7.8267704 8.1819632 8.3701816 8.2439535 8.4387995 8.7032152 8.9749775 9.0896897 9.4123393 9.7397982 9.8498591 10.1900003 10.5593355 10.9550519
1967 6,600 5,213.44 6.8378173 7.0880148 7.4138016 7.7502532 7.9285405 7.8089726 7.9935379 8.2440020 8.5014252 8.6100847 8.9157102 9.2258912 9.3301448 9.6523390 10.0021867 10.3770236
1968 7,800 5,571.76 6.3980771 6.6321844 6.9370199 7.2518342 7.4186559 7.3067774 7.4794733 7.7138301 7.9546983 8.0563700 8.3423407 8.6325739 8.7301230 9.0315968 9.3589458 9.7096770
1969 7,800 5,893.76 6.0485242 6.2698413 6.5580224 6.8556371 7.0133446 6.9075785 7.0708393 7.2923923 7.5201009 7.6162178 7.8865648 8.1609414 8.2531610 8.5381641 8.8476287 9.1791980
1970 7,800 6,186.24 5.7625553 5.9734087 6.2479648 6.5315086 6.6817598 6.5809943 6.7365362 6.9476144 7.1645571 7.2561297 7.5136949 7.7750993 7.8629588 8.1344872 8.4293206 8.7452136
1971 7,800 6,497.08 5.4868572 5.6876227 5.9490433 6.2190215 6.3620842 6.2661396 6.4142399 6.6152195 6.8217830 6.9089745 7.1542170 7.4031149 7.4867710 7.7453087 8.0260363 8.3268160
1972 9,000 7,133.80 4.9971334 5.1799798 5.4180675 5.6639491 5.7942429 5.7068617 5.8417435 6.0247848 6.2129118 6.2923211 6.5156747 6.7423575 6.8185469 7.0540091 7.3096807 7.5836146
1973 10,800 7,580.16 4.7028757 4.8749551 5.0990230 5.3304257 5.4530472 5.3708114 5.4977507 5.6700136 5.8470626 5.9217958 6.1319972 6.3453318 6.4170347 6.6386316 6.8792479 7.1370512
1974 13,200 8,030.76 4.4390008 4.6014250 4.8129206 5.0313395 5.1470807 5.0694592 5.1892760 5.3518733 5.5189882 5.5895283 5.7879354 5.9892999 6.0569797 6.2661429 6.4932584 6.7365965
1975 14,100 8,630.92 4.1303303 4.2814601 4.4782491 4.6814801 4.7891731 4.7169491 4.8284343 4.9797252 5.1352197 5.2008546 5.3854653 5.5728277 5.6358013 5.8304202 6.0417429 6.2681603
1976 15,300 9,226.48 3.8637216 4.0050962 4.1891827 4.3792952 4.4800368 4.4124747 4.5167637 4.6582890 4.8037464 4.8651447 5.0378389 5.2131073 5.2720160 5.4540724 5.6517545 5.8635568
1977 16,500 9,779.44 3.6452547 3.7786356 3.9523132 4.1316763 4.2267216 4.1629797 4.2613718 4.3948948 4.5321276 4.5900542 4.7529838 4.9183420 4.9739198 5.1456822 5.3321867 5.5320131
1978 17,700 10,556.03 3.3770793 3.5006475 3.6615479 3.8277155 3.9157685 3.8567160 3.9478696 4.0715695 4.1987063 4.2523714 4.4033145 4.5565075 4.6079966 4.7671227 4.9399064 5.1250319
1979 22,900 11,479.46 3.1054205 3.2190486 3.3670059 3.5198067 3.6007765 3.5464743 3.6302953 3.7440446 3.8609543 3.9103024 4.0491034 4.1899732 4.2373204 4.3836461 4.5425307 4.7127644
1980 25,900 12,513.46 2.8488164 2.9530554 3.0887868 3.2289615 3.3032407 3.2534255 3.3303203 3.4346703 3.5419197 3.5871901 3.7145218 3.8437514 3.8871863 4.0214209 4.1671768 4.3233438
1981 29,700 13,773.10 2.5882735 2.6829791 2.8062971 2.9336518 3.0011377 2.9558785 3.0257408 3.1205473 3.2179880 3.2591181 3.3748045 3.4922153 3.5316777 3.6536357 3.7860612 3.9279458
1982 32,400 14,531.34 2.4532184 2.5429823 2.6598655 2.7805750 2.8445395 2.8016418 2.8678587 2.9577183 3.0500745 3.0890585 3.1987084 3.3099927 3.3473960 3.4629903 3.5885059 3.7229870
1983 35,700 15,239.24 2.3392604 2.4248545 2.5363082 2.6514104 2.7124036 2.6714987 2.7346397 2.8203250 2.9083911 2.9455642 3.0501206 3.1562355 3.1919013 3.3021260 3.4218111 3.5500451
1984 37,800 16,135.07 2.2093830 2.2902250 2.3954907 2.5042023 2.5618092 2.5231753 2.5828106 2.6637387 2.7469153 2.7820245 2.8807759 2.9809992 3.0146848 3.1187897 3.2318298 3.3529442
1985 39,600 16,822.51 2.1190982 2.1966365 2.2976007 2.4018699 2.4571226 2.4200675 2.4772659 2.5548869 2.6346645 2.6683390 2.7630550 2.8591827 2.8914918 2.9913426 3.0997634 3.2159285
1986 42,000 17,321.82 2.0580141 2.1333174 2.2313712 2.3326348 2.3862949 2.3503079 2.4058575 2.4812410 2.5587190 2.5914228 2.6834086 2.7767654 2.8081431 2.9051156 3.0104111 3.1232278
1987 43,800 18,426.51 1.9346339 2.0054226 2.0975980 2.1927907 2.2432338 2.2094043 2.2616236 2.3324878 2.4053209 2.4360641 2.5225352 2.6102952 2.6397918 2.7309507 2.8299336 2.9359868
1988 45,000 19,334.04 1.8438231 1.9112891 1.9991378 2.0898622 2.1379375 2.1056960 2.1554641 2.2230020 2.2924164 2.3217165 2.4041287 2.4877692 2.5158813 2.6027612 2.6970980 2.7981731
1989 48,000 20,099.55 1.7735994 1.8384959 1.9229988 2.0102679 2.0565122 2.0254986 2.0733713 2.1383369 2.2051076 2.2332918 2.3125652 2.3930202 2.4200616 2.5036327 2.5943765 2.6916021
1990 51,300 21,027.98 1.6952912 1.7573224 1.8380943 1.9215103 1.9657128 1.9360685 1.9818275 2.0439248 2.1077474 2.1346872 2.2104605 2.2873633 2.3132108 2.3930920 2.4798293 2.5727621
1991 53,400 21,811.60 1.6343849 1.6941875 1.7720575 1.8524767 1.8950911 1.8665119 1.9106269 1.9704932 2.0320229 2.0579948 2.1310459 2.2051858 2.2301046 2.3071159 2.3907370 2.4803311
1992 55,500 22,935.42 1.5543012 1.6111735 1.6852279 1.7617066 1.8022330 1.7750540 1.8170075 1.8739404 1.9324551 1.9571545 2.0266261 2.0971332 2.1208310 2.1940688 2.2735925 2.3587966
1993 57,600 23,132.67 1.5410478 1.5974351 1.6708581 1.7466847 1.7868655 1.7599183 1.8015140 1.8579615 1.9159773 1.9404660 2.0093452 2.0792511 2.1027469 2.1753602 2.2542058 2.3386833
1994 60,600 23,753.53 1.5007685 1.5556820 1.6271859 1.7010305 1.7401611 1.7139183 1.7544268 1.8093989 1.8658982 1.8897469 1.9568258 2.0249045 2.0477862 2.1185015 2.1952863 2.2775558
1995 61,200 24,705.66 1.4429305 1.4957277 1.5644759 1.6354746 1.6730972 1.6478657 1.6868131 1.7396665 1.7939885 1.8169181 1.8814118 1.9468668 1.9688666 2.0368567 2.1106823 2.1897812
1996 62,700 25,913.90 1.3756536 1.4259891 1.4915320 1.5592203 1.5950887 1.5710337 1.6081651 1.6585543 1.7103435 1.7322040 1.7936906 1.8560938 1.8770679 1.9418879 2.0122714 2.0876823
1997 65,400 27,426.00 1.2998086 1.3473689 1.4092981 1.4732546 1.5071454 1.4844166 1.5195008 1.5671119 1.6160457 1.6367009 1.6947976 1.7537603 1.7735780 1.8348243 1.9013272 1.9725804
1998 68,400 28,861.44 1.2351619 1.2803568 1.3392059 1.3999814 1.4321867 1.4105883 1.4439276 1.4891707 1.5356708 1.5552987 1.6105059 1.6665360 1.6853681 1.7435682 1.8067636 1.8744730
1999 72,600 30,469.84 1.1699618 1.2127711 1.2685137 1.3260811 1.3565864 1.3361281 1.3677075 1.4105624 1.4546079 1.4731997 1.5254927 1.5785652 1.5964032 1.6515312 1.7113907 1.7755259
2000 76,200 32,154.82 1.1086534 1.1492193 1.2020409 1.2565917 1.2854984 1.2661122 1.2960368 1.3366460 1.3783834 1.3960010 1.4455537 1.4958451 1.5127483 1.5649875 1.6217102 1.6824846
2001 80,400 32,921.92 1.0828211 1.1224418 1.1740327 1.2273124 1.2555455 1.2366110 1.2658384 1.3055013 1.3462663 1.3634733 1.4118715 1.4609910 1.4775004 1.5285223 1.5839234 1.6432817
2002 84,900 33,252.09 1.0720695 1.1112968 1.1623754 1.2151260 1.2430789 1.2243324 1.2532695 1.2925386 1.3328988 1.3499350 1.3978526 1.4464844 1.4628299 1.5133452 1.5681962 1.6269651
2003 87,000 34,064.95 1.0464877 1.0847789 1.1346387 1.1861306 1.2134164 1.1951173 1.2233639 1.2616960 1.3010931 1.3177228 1.3644969 1.4119683 1.4279237 1.4772336 1.5307758 1.5881424
2004 87,900 35,648.55 1.0000000 1.0365903 1.0842351 1.1334396 1.1595134 1.1420271 1.1690189 1.2056482 1.2432952 1.2591861 1.3038825 1.3492451 1.3644917 1.4116111 1.4627748 1.5175930
2005 90,000 36,952.94 1.0000000 1.0000000 1.0459631 1.0934307 1.1185841 1.1017150 1.1277541 1.1630904 1.1994085 1.2147385 1.2578572 1.3016185 1.3163269 1.3617831 1.4111408 1.4640240
2006 94,200 38,651.41 1.0000000 1.0000000 1.0000000 1.0453818 1.0694298 1.0533021 1.0781969 1.1119804 1.1467025 1.1613589 1.2025828 1.2444211 1.2584832 1.3019419 1.3491306 1.3996899
2007 97,500 40,405.48 1.0000000 1.0000000 1.0000000 1.0000000 1.0230041 1.0075764 1.0313905 1.0637074 1.0969222 1.1109424 1.1503766 1.1903987 1.2038503 1.2454224 1.2905626 1.3389270
2008 102,000 41,334.97 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 0.9849193 1.0081979 1.0397881 1.0722560 1.0859609 1.1245084 1.1636305 1.1767796 1.2174169 1.2615420 1.3088189
2009 106,800 40,711.61 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0236350 1.0557089 1.0886740 1.1025887 1.1417264 1.1814475 1.1947980 1.2360575 1.2808582 1.3288590
2010 106,800 41,673.83 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0313333 1.0635372 1.0771307 1.1153647 1.1541687 1.1672109 1.2075178 1.2512841 1.2981766
2011 106,800 42,979.61 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0312255 1.0444059 1.0814784 1.1191035 1.1317495 1.1708317 1.2132683 1.2587362
2012 110,100 44,321.67 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0127813 1.0487312 1.0852170 1.0974801 1.1353789 1.1765306 1.2206217
2013 113,700 44,888.16 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0354962 1.0715215 1.0836298 1.1210504 1.1616827 1.2052174
2014 117,000 46,481.52 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0347904 1.0464836 1.0826214 1.1218609 1.1639032
2015 118,500 48,098.63 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0113001 1.0462229 1.0841431 1.1247720
2016 118,500 48,642.15 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0345326 1.0720291 1.1122039
2017 127,200 50,321.89 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0362449 1.0750787
2018 128,400 52,145.80 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0374755
2019 132,900 54,099.99 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
2020 137,700 55,628.60 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
2021 142,800 -- 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2021," Federal Register, vol. 85, no. 205 (October 22, 2020). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
NOTE: -- = not available.
a. National average wage levels. For years before 1978, average wages were determined from wages earned during the first quarter of the year and reported to the Social Security Administration (SSA) for Social Security tax purposes. These wages were then multiplied by 4 to obtain the average wage for the year. For 1973–1977, from data collected on all taxable wages reported to SSA; for 1957–1972, based on 1 percent statistical sample; for 1951–1956, based on 1/10 of 1 percent statistical sample. For 1978–1984, from wage data collected by the Internal Revenue Service during processing of annual tax returns. For years after 1984, from W-2 data processed by SSA. For years after 1977, the average wage amounts have been adjusted to be consistent with the pre-1978 series.
b. The indexing factor for a given year represents the ratio of the average annual wage for the second year before the year of first eligibility to the average annual wage for the year to be indexed. Multiplying a worker's covered earnings, up to the maximum taxable amounts for various years after 1951, by the indicated factors gives the indexed earnings. Earnings in the year before the year of first eligibility, and any earnings thereafter, are not indexed. The actual taxable earnings for those years are considered in calculating the average indexed monthly earnings (AIME).
CONTACT: (410) 965-0090 or statistics@ssa.gov.
Table 2.A9 Indexed earnings for workers with maximum earnings, 1951–2021 (in dollars)
Year Annual maximum taxable earnings Average annual wage a Annual maximum indexed earnings for workers who were first eligible (attained age 62, became disabled, or died) in b—
2014 2015 2016 2017 2018 2019 2020 2021
1951 3,600 2,799.16 57,002.10 57,730.67 59,779.89 61,859.65 62,558.67 64,718.99 67,064.72 69,578.00
1952 3,600 2,973.32 53,663.25 54,349.14 56,278.33 58,236.27 58,894.35 60,928.12 63,136.45 65,502.52
1953 3,600 3,139.44 50,823.72 51,473.31 53,300.42 55,154.76 55,778.02 57,704.18 59,795.66 62,036.53
1954 3,600 3,155.64 50,562.81 51,209.07 53,026.79 54,871.62 55,491.67 57,407.94 59,488.69 61,718.06
1955 4,200 3,301.44 56,384.79 57,105.47 59,132.49 61,189.74 61,881.19 64,018.11 66,338.43 68,824.50
1956 4,200 3,532.36 52,698.77 53,372.33 55,266.84 57,189.60 57,835.85 59,833.07 62,001.71 64,325.26
1957 4,200 3,641.72 51,116.23 51,769.57 53,607.19 55,472.21 56,099.05 58,036.30 60,139.81 62,393.58
1958 4,200 3,673.80 50,669.88 51,317.51 53,139.09 54,987.82 55,609.19 57,529.52 59,614.67 61,848.76
1959 4,800 3,855.80 55,175.06 55,880.28 57,863.81 59,876.92 60,553.53 62,644.61 64,915.15 67,347.88
1960 4,800 4,007.12 53,091.50 53,770.08 55,678.72 57,615.80 58,266.86 60,278.97 62,463.77 64,804.64
1961 4,800 4,086.76 52,056.89 52,722.25 54,593.69 56,493.02 57,131.40 59,104.30 61,246.52 63,541.77
1962 4,800 4,291.40 49,574.50 50,208.13 51,990.33 53,799.09 54,407.03 56,285.84 58,325.92 60,511.71
1963 4,800 4,396.64 48,387.86 49,006.32 50,745.86 52,511.33 53,104.72 54,938.56 56,929.80 59,063.27
1964 4,800 4,576.32 46,488.01 47,082.19 48,753.43 50,449.58 51,019.67 52,781.51 54,694.57 56,744.27
1965 4,800 4,658.72 45,665.77 46,249.44 47,891.12 49,557.27 50,117.27 51,847.95 53,727.17 55,740.62
1966 6,600 4,938.36 59,234.85 59,991.95 62,121.44 64,282.67 65,009.07 67,254.00 69,691.61 72,303.34
1967 6,600 5,213.44 56,109.41 56,826.56 58,843.69 60,890.88 61,578.96 63,705.44 66,014.43 68,488.36
1968 7,800 5,571.76 62,046.65 62,839.69 65,070.26 67,334.08 68,094.96 70,446.46 72,999.78 75,735.48
1969 7,800 5,893.76 58,656.79 59,406.50 61,515.21 63,655.34 64,374.66 66,597.68 69,011.50 71,597.74
1970 7,800 6,186.24 55,883.55 56,597.81 58,606.82 60,645.77 61,331.08 63,449.00 65,748.70 68,212.67
1971 7,800 6,497.08 53,209.91 53,890.00 55,802.89 57,744.30 58,396.81 60,413.41 62,603.08 64,949.17
1972 9,000 7,133.80 55,916.21 56,630.89 58,641.07 60,681.22 61,366.92 63,486.08 65,787.13 68,252.53
1973 10,800 7,580.16 63,148.28 63,955.39 66,225.57 68,529.58 69,303.98 71,697.22 74,295.88 77,080.15
1974 13,200 8,030.76 72,850.64 73,781.77 76,400.75 79,058.76 79,952.13 82,713.09 85,711.01 88,923.07
1975 14,100 8,630.92 72,406.60 73,332.05 75,935.06 78,576.87 79,464.80 82,208.92 85,188.58 88,381.06
1976 15,300 9,226.48 73,497.32 74,436.71 77,078.94 79,760.54 80,661.84 83,447.31 86,471.84 89,712.42
1977 16,500 9,779.44 74,780.11 75,735.89 78,424.23 81,152.64 82,069.68 84,903.76 87,981.08 91,278.22
1978 17,700 10,556.03 74,317.10 75,266.97 77,938.67 80,650.18 81,561.54 84,378.07 87,436.34 90,713.06
1979 22,900 11,479.46 88,415.85 89,545.92 92,724.47 95,950.39 97,034.64 100,385.50 104,023.95 107,922.30
1980 25,900 12,513.46 91,735.72 92,908.22 96,206.11 99,553.16 100,678.12 104,154.80 107,929.88 111,974.61
1981 29,700 13,773.10 95,574.24 96,795.81 100,231.69 103,718.79 104,890.83 108,512.98 112,446.02 116,659.99
1982 32,400 14,531.34 98,822.41 100,085.50 103,638.15 107,243.76 108,455.63 112,200.89 116,267.59 120,624.78
1983 35,700 15,239.24 103,829.56 105,156.64 108,889.31 112,677.61 113,950.88 117,885.90 122,158.65 126,736.61
1984 37,800 16,135.07 103,833.40 105,160.53 108,893.33 112,681.77 113,955.08 117,890.25 122,163.17 126,741.29
1985 39,600 16,822.51 104,332.71 105,666.22 109,416.98 113,223.64 114,503.08 118,457.17 122,750.63 127,350.77
1986 42,000 17,321.82 107,466.20 108,839.76 112,703.16 116,624.15 117,942.01 122,014.86 126,437.27 131,175.57
1987 43,800 18,426.51 105,353.06 106,699.61 110,487.04 114,330.93 115,622.88 119,615.64 123,951.09 128,596.22
1988 45,000 19,334.04 103,158.74 104,477.24 108,185.79 111,949.62 113,214.66 117,124.26 121,369.41 125,917.79
1989 48,000 20,099.55 105,845.16 107,198.01 111,003.13 114,864.97 116,162.96 120,174.37 124,530.07 129,196.90
1990 51,300 21,027.98 108,127.44 109,509.45 113,396.63 117,341.74 118,667.71 122,765.62 127,215.24 131,982.70
1991 53,400 21,811.60 108,510.02 109,896.92 113,797.85 117,756.92 119,087.59 123,199.99 127,665.36 132,449.68
1992 55,500 22,935.42 107,251.26 108,622.07 112,477.75 116,390.89 117,706.12 121,770.82 126,184.39 130,913.21
1993 57,600 23,132.67 110,360.29 111,770.84 115,738.28 119,764.86 121,118.22 125,300.75 129,842.26 134,708.16
1994 60,600 23,753.53 113,073.43 114,518.66 118,583.64 122,709.21 124,095.84 128,381.19 133,034.35 138,019.88
1995 61,200 24,705.66 109,792.10 111,195.39 115,142.40 119,148.25 120,494.64 124,655.63 129,173.76 134,014.61
1996 62,700 25,913.90 107,238.54 108,609.19 112,464.40 116,377.08 117,692.16 121,756.37 126,169.42 130,897.68
1997 65,400 27,426.00 105,689.39 107,040.24 110,839.77 114,695.92 115,992.00 119,997.51 124,346.80 129,006.76
1998 68,400 28,861.44 105,039.88 106,382.43 110,158.60 113,991.07 115,279.18 119,260.07 123,582.63 128,213.95
1999 72,600 30,469.84 105,604.53 106,954.30 110,750.77 114,603.84 115,898.87 119,901.16 124,246.96 128,903.18
2000 76,200 32,154.82 105,032.81 106,375.27 110,151.19 113,983.40 115,271.42 119,252.04 123,574.32 128,205.33
2001 80,400 32,921.92 108,239.81 109,623.26 113,514.47 117,463.68 118,791.03 122,893.20 127,347.44 132,119.85
2002 84,900 33,252.09 113,163.11 114,609.48 118,677.68 122,806.53 124,194.25 128,483.01 133,139.85 138,129.34
2003 87,000 34,064.95 113,195.10 114,641.88 118,711.23 122,841.24 124,229.36 128,519.33 133,177.49 138,168.39
2004 87,900 35,648.55 109,285.65 110,682.46 114,611.27 118,598.64 119,938.82 124,080.62 128,577.90 133,396.42
2005 90,000 36,952.94 107,946.76 109,326.47 113,207.14 117,145.66 118,469.42 122,560.48 127,002.67 131,762.16
2006 94,200 38,651.41 108,019.38 109,400.01 113,283.30 117,224.47 118,549.12 122,642.93 127,088.10 131,850.79
2007 97,500 40,405.48 106,949.92 108,316.88 112,161.72 116,063.87 117,375.41 121,428.68 125,829.85 130,545.39
2008 102,000 41,334.97 109,370.11 110,768.01 114,699.85 118,690.31 120,031.52 124,176.52 128,677.28 133,499.53
2009 106,800 40,711.61 116,270.38 117,756.47 121,936.38 126,178.59 127,604.43 132,010.94 136,795.66 141,922.14
2010 106,800 41,673.83 113,585.78 115,037.55 119,120.95 123,265.22 124,658.13 128,962.90 133,637.14 138,645.26
2011 106,800 42,979.61 110,134.88 111,542.55 115,501.89 119,520.25 120,870.84 125,044.83 129,577.06 134,433.02
2012 110,100 44,321.67 110,100.00 111,507.22 115,465.31 119,482.39 120,832.56 125,005.22 129,536.02 134,390.44
2013 113,700 44,888.16 113,700.00 113,700.00 117,735.92 121,832.00 123,208.71 127,463.43 132,083.33 137,033.21
2014 117,000 46,481.52 117,000.00 117,000.00 117,000.00 121,070.48 122,438.59 126,666.71 131,257.73 136,176.67
2015 118,500 48,098.63 118,500.00 118,500.00 118,500.00 118,500.00 119,839.06 123,977.42 128,470.96 133,285.48
2016 118,500 48,642.15 118,500.00 118,500.00 118,500.00 118,500.00 118,500.00 122,592.11 127,035.45 131,796.16
2017 127,200 50,321.89 127,200.00 127,200.00 127,200.00 127,200.00 127,200.00 127,200.00 131,810.35 136,750.01
2018 128,400 52,145.80 128,400.00 128,400.00 128,400.00 128,400.00 128,400.00 128,400.00 128,400.00 133,211.85
2019 132,900 54,099.99 132,900.00 132,900.00 132,900.00 132,900.00 132,900.00 132,900.00 132,900.00 132,900.00
2020 137,700 55,628.60 137,700.00 137,700.00 137,700.00 137,700.00 137,700.00 137,700.00 137,700.00 137,700.00
2021 142,800 -- 142,800.00 142,800.00 142,800.00 142,800.00 142,800.00 142,800.00 142,800.00 142,800.00
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2021," Federal Register, vol. 85, no. 205 (October 22, 2020). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
NOTE: -- = not available.
a. National average wage levels. For years before 1978, average wages were determined from wages earned during the first quarter of the year and reported to the Social Security Administration (SSA) for Social Security tax purposes. These wages were then multiplied by 4 to obtain the average wage for the year. For 1973–1977, from data collected on all taxable wages reported to SSA; for 1957–1972, based on 1 percent statistical sample; for 1951–1956, based on 1/10 of 1 percent statistical sample. For 1978–1984, from wage data collected by the Internal Revenue Service during processing of annual tax returns. For years after 1984, from W-2 data processed by SSA. For years after 1977, the average wage amounts have been adjusted to be consistent with the pre-1978 series.
b. A worker's earnings for each year after 1950 and through the second year before the year of first eligibility are indexed by multiplying covered earnings, up to the maximum taxable amounts, by specified indexing factors (see Table 2.A8). The indexing factor for a given year represents the ratio of the average annual wage for the second year before the year of first eligibility to the average annual wage for the year to be indexed. For example, if the year of first eligibility is 2020, the indexing factor for 1982 is $52,145.80 ÷ 14,531.34 or 3.5885059. Multiplication of maximum taxable earnings of $32,400 for 1982 by this factor gives maximum indexed earnings of $116,267.59 for 1982.
CONTACT: (410) 965-0090 or statistics@ssa.gov.
Table 2.A10 Legislative provisions addressing average monthly wage and average indexed monthly earnings, by year enacted
Year enacted Provision
  Average monthly wage (AMW)
1939 Computed using creditable 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 quarters not covered.
1950 Alternatively, computed using creditable earnings after 1950 (or year aged 21, if later) and before year of death, year of retirement, or subsequent year (or year age 65 attained if then insured), divided by number of months in those years.
1954 Earnings and months in 4 years may be excluded in all cases; 5 years if worker has 20 quarters of coverage. 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 but including year of death, with the number of years equal to the years elapsed after 1955 (or year age 26 attained) and before year of death or age 65 attained (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.
1977 For workers who attain age 62, become disabled, or die after 1978, excludes earnings in year of attainment of age 62 and later, computed using creditable earnings after 1936.
For workers who attain age 62 after 1978 and before 1984, excludes earnings in year of attainment of age 62 and later, computed using creditable earnings after 1950.
  Average indexed monthly earnings (AIME)
1977 For workers who attain age 62, become disabled, or die after 1978, AIME is computed by using indexed earnings after 1950 for the same computation period applicable in calculating the AMW. Indexed earnings for a given year equal actual creditable earnings multiplied by the national average wage for the second year before worker attains age 62, becomes disabled, or dies, divided by the national average wage for the given year, except that for years after the second year before the worker attains age 62, becomes disabled, or dies, indexed earnings equal actual creditable earnings.
1980 For disabled workers, the number of years of earnings used equals the number of years elapsed after 1950 (or year age 21 attained, if later) and before year of disability, minus dropout years equal to one-fifth of the number of elapsed years rounded to the next lower integer (to a maximum of 5 dropout years). However, the number of years of earnings used is at least 2. Effective for initial entitlement after June 1980.
Disabled workers with computations using fewer than 3 dropout years under the one-fifth rule may be credited with additional dropout years based on child care, up to a total of 3 dropout years. (To receive this credit, a worker must have had no earnings in that year and have been living with his or her child or spouse's child under age 3.) However, the number of years of earnings used is at least 2. Effective July 1981.
1983 For workers who die after 1978 but before attaining age 62, indexed earnings for a given year equal actual creditable earnings, multiplied by the national average wage for the earlier of (1) the year in which the worker reached or would have reached age 60 or (2) the second year before the survivor becomes eligible for aged or disabled widow(er) benefits, and then divided by the national average wage for the given year. This computation method applies only if it results in a higher benefit. Effective for surviving spouses first eligible after 1984.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
CONTACT: (410) 965-0090 or statistics@ssa.gov.
Table 2.A11 Formulas for computing primary insurance amount (PIA) from average indexed monthly earnings (AIME), and cost-of-living adjustments (COLAs), for workers who were first eligible in 1979 or later, by year of first eligibility
Eligibility year Calculation of PIA (based on percentage of AIME) (dollars) First applicable COLA
90 percent of the first Plus 32 percent of the next Plus 15 percent of the amount above Effective date Percentage increase
  Enacted in 1977
1979 180 905 1,085 June 1979 9.9
1980 194 977 1,171 June 1980 14.3
  Enacted in 1981
1981 211 1,063 1,274 June 1981 11.2
1982 230 1,158 1,388 June 1982 7.4
  Enacted in 1983
1983 254 1,274 1,528 December 1983 3.5
1984 267 1,345 1,612 December 1984 3.5
1985 280 1,411 1,691 December 1985 3.1
1986 297 1,493 1,790 December 1986 1.3
1987 310 1,556 1,866 December 1987 4.2
1988 319 1,603 1,922 December 1988 4.0
1989 339 1,705 2,044 December 1989 4.7
1990 356 1,789 2,145 December 1990 5.4
1991 370 1,860 2,230 December 1991 3.7
1992 387 1,946 2,333 December 1992 3.0
1993 401 2,019 2,420 December 1993 2.6
1994 422 2,123 2,545 December 1994 2.8
1995 426 2,141 2,567 December 1995 2.6
1996 437 2,198 2,635 December 1996 2.9
1997 455 2,286 2,741 December 1997 2.1
1998 477 2,398 2,875 December 1998 1.3
1999 505 2,538 3,043 December 1999 a 2.5
2000 531 2,671 3,202 December 2000 3.5
2001 561 2,820 3,381 December 2001 2.6
2002 592 2,975 3,567 December 2002 1.4
2003 606 3,047 3,653 December 2003 2.1
2004 612 3,077 3,689 December 2004 2.7
2005 627 3,152 3,779 December 2005 4.1
2006 656 3,299 3,955 December 2006 3.3
2007 680 3,420 4,100 December 2007 2.3
2008 711 3,577 4,288 December 2008 5.8
2009 744 3,739 4,483 December 2009 0.0
2010 761 3,825 4,586 December 2010 0.0
2011 749 3,768 4,517 December 2011 3.6
2012 767 3,857 4,624 December 2012 1.7
2013 791 3,977 4,768 December 2013 1.5
2014 816 4,101 4,917 December 2014 1.7
2015 826 4,154 4,980 December 2015 0.0
2016 856 4,301 5,157 December 2016 0.3
2017 885 4,451 5,336 December 2017 2.0
2018 895 4,502 5,397 December 2018 2.8
2019 926 4,657 5,583 December 2019 1.6
2020 960 4,825 5,785 December 2020 1.3
2021 996 5,006 6,002 December 2021 --
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2021," Federal Register, vol. 85, no. 205 (October 22, 2020). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
NOTES: Eligible workers are those who attained age 62, became disabled, or died in the given year.
For workers newly eligible during 1979–1981, the minimum PIA (based on indexed earnings) is $122, as established by the 1977 Amendments to the Social Security Act. Automatic COLAs for benefits based on this minimum PIA begin in the year of initial benefit receipt or attainment of age 65, whichever is earlier. In 1981, the minimum PIA provision was eliminated for workers newly eligible after 1981 (or after 1991 for members of certain religious orders).
For workers who attained age 62 during 1979–1983, the PIA cannot be less than that derived using the benefit formula in effect before January 1979.
-- = not available.
a. The COLA for December 1999 was originally determined to be 2.4 percent, based on the Consumer Price Index (CPI). The underlying CPI was later recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to Public Law 106-554, benefits were calculated and paid in August 2001 and later as if the COLA for December 1999 had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that occurred before August 2001.
CONTACT: (410) 965-0090 or statistics@ssa.gov.
Table 2.A11.1 Legislative provisions addressing the computation of primary insurance amount (PIA) based on Windfall Elimination Provision (WEP), by year enacted
Year effective Provision
  Enacted in 1983
1986 Workers first eligible for pensions based on noncovered employment and disability or retired workers after December 31, 1985. a The benefit computation formula uses a reduced factor of the usual first average indexed monthly earnings (AIME) bend point.
Year eligible Factor (percent)
1986 80
1987 70
1988 60
1989 50
1990 and later 40
 
WEP is not applicable to persons who were federal employees or nonprofit employees on January 1, 1984, and who were covered by Social Security on that date with no Civil Service Retirement System coverage; to persons with Railroad Retirement pensions; or to workers with 30 years of substantial Social Security earnings. Workers with 26–29 years of coverage have less than full WEP applied. b For benefits payable before January 1989:
Years of coverage Factor (percent)
26 50
27 60
28 70
29 80
 
  Enacted in 1988
1989 5 percent added to factor for each year of coverage over 20.
Years of coverage Factor (percent)
21 45
22 50
23 55
24 60
25 65
26 70
27 75
28 80
29 85
 
1991 Earnings required for a year of substantial coverage (decoupled from the definition of a year of coverage for special minimum PIA). b
Year Earnings (dollars)
1991 9,900
1992 10,350
1993 10,725
1994 11,250
1995 11,325
1996 11,625
1997 12,150
1998 12,675
1999 13,425
2000 14,175
2001 14,925
2002 15,750
2003 16,125
2004 16,275
2005 16,725
2006 17,475
2007 18,150
2008 18,975
2009 19,800
2010 19,800
2011 19,800
2012 20,475
2013 21,075
2014 21,750
2015 22,050
2016 22,050
2017 23,625
2018 23,850
2019 24,675
2020 25,575
2021 26,550
 
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2021," Federal Register, vol. 85, no. 205 (October 22, 2020). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
a. Reduction in PIA will not be greater than one-half the amount of the pension based on noncovered employment performed after 1956.
b. See Table 2.A12a. Before 1991, a year of substantial coverage for WEP was the same amount as for the minimum PIA (25 percent of the "old law" contribution and benefit base). For 1991 and following, a year of substantial coverage under WEP provisions remains 25 percent of the old law base, while the criterion for computing the special minimum PIA was changed to 15 percent of the base.
CONTACT: (410) 965-0090 or statistics@ssa.gov.
Table 2.A12a Special minimum primary insurance amount (PIA): Minimum covered earnings required to qualify for a year of coverage, 1937–2021 (in dollars)
Year Earnings required to qualify for a year of coverage
Enacted in 1972 a
1937–1950 b
1951–1954 900
1955–1958 1,050
1959–1965 1,200
1966–1967 1,650
1968–1971 1,950
1972 2,250
1973 2,700
1974 3,300
1975 3,525
1976 3,825
1977 4,125
1978 4,425
Enacted in 1977 c
1979 4,725
1980 5,100
1981 5,550
1982 6,075
1983 6,675
1984 7,050
1985 7,425
1986 7,875
1987 8,175
1988 8,400
1989 8,925
1990 9,525
Enacted in 1990 d
1991 5,940
1992 6,210
1993 6,435
1994 6,750
1995 6,795
1996 6,975
1997 7,290
1998 7,605
1999 8,055
2000 8,505
2001 8,955
2002 9,450
2003 9,675
2004 9,765
2005 10,035
2006 10,485
2007 10,890
2008 11,385
2009 11,880
2010 11,880
2011 11,880
2012 12,285
2013 12,645
2014 13,050
2015 13,230
2016 13,230
2017 14,175
2018 14,310
2019 14,805
2020 15,345
2021 15,930
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2021," Federal Register, vol. 85, no. 205 (October 22, 2020). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
NOTE: The special minimum PIA is payable to some persons who have had covered employment or self-employment for many years at low earnings. The formula computes a benefit based on years of coverage rather than earnings, and it applies only if the resulting benefit exceeds the benefit computed by any other method. The usual rates of actuarial reduction apply for retirement before the full retirement age. Although delayed retirement credits are not applicable to the benefit derived from the special minimum PIA, the benefit will be raised if necessary to equal the benefit derived from the regularly computed PIA plus any delayed retirement credits.
a. For 1951–1978, the amount of Social Security covered earnings needed for a year of coverage is 25 percent of the effective annual maximum taxable earnings.
b. For 1937–1950, the years of coverage are determined by the number (not exceeding 14) obtained by dividing total creditable wages in 1937–1950 by $900 (any remainder is disregarded).
c. For 1979–1990, the amount of Social Security covered earnings needed for a year of coverage is 25 percent of what the annual maximum taxable earnings would have been if the statutory increases in the maximum under the 1977 amendments had not been enacted (the "old law" contribution and benefit base).
d. For 1991 and following, a year of substantial coverage under the Windfall Elimination Provision remains 25 percent of the old law base, while the criterion for the special minimum PIA was changed to 15 percent of the base.
CONTACT: (410) 965-0090 or statistics@ssa.gov.
Table 2.A12b Factors used in computing the special minimum primary insurance amount (PIA), by effective date
Effective date Amount a per year of coverage over 10 years (dollars) Maximum amount a for workers with 30 or more years of coverage (dollars)
  Enacted in 1972
January 1973 8.50 170.00
  Enacted in 1973
March 1974 9.00 180.00
  Enacted in 1977 b
January 1979 11.50 230.00
June 1979 12.64 252.80
June 1980 14.45 289.00
June 1981 16.07 321.40
June 1982 17.26 345.10
December 1983 17.86 357.10
December 1984 18.49 369.50
December 1985 19.06 380.90
December 1986 19.31 385.80
December 1987 20.12 402.00
December 1988 20.92 418.00
December 1989 21.90 437.60
December 1990 23.08 461.20
December 1991 23.93 478.20
December 1992 24.65 492.50
December 1993 25.29 505.30
December 1994 26.00 519.40
December 1995 26.68 532.90
December 1996 27.45 548.30
December 1997 28.03 559.80
December 1998 28.39 567.00
December 1999 c 29.10 c 581.10
December 2000 30.12 601.40
December 2001 30.90 617.00
December 2002 31.33 625.60
December 2003 31.99 638.70
December 2004 32.85 655.90
December 2005 34.20 682.70
December 2006 35.33 705.20
December 2007 36.14 721.40
December 2008 38.24 763.20
December 2009 38.24 763.20
December 2010 38.24 763.20
December 2011 39.62 790.60
December 2012 40.29 804.00
December 2013 40.89 816.00
December 2014 41.59 829.80
December 2015 41.59 832.20
December 2016 41.71 832.20
December 2017 42.54 848.80
December 2018 43.73 872.50
December 2019 44.43 886.46
December 2020 45.01 897.98
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2021," Federal Register, vol. 85, no. 205 (October 22, 2020). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
NOTE: The special minimum PIA is payable to some persons who have had covered employment or self-employment for many years at low earnings. The formula computes a benefit based on years of coverage rather than earnings, and it applies only if the resulting benefit exceeds the benefit computed by any other method. The usual rates of actuarial reduction apply for retirement before the full retirement age. Although delayed retirement credits are not applicable to the benefit derived from the special minimum PIA, the benefit will be raised if necessary to equal the benefit derived from the regularly computed PIA plus any delayed retirement credits.
a. The amount effective for a given month applies, as of that month, to all workers from the date of entitlement to benefits.
b. The 1977 Amendments to the Social Security Act established an initial 1979 factor of $11.50 per year of coverage and automatic annual cost-of-living increases thereafter, beginning with the June 1979 increase. Factors are obtained by applying cost-of-living increases to the previous year's factor and rounding each one to nearest cent. An approximate PIA may be computed by multiplying factor in year of entitlement by the number of years of coverage in excess of 10 with a maximum of 20. Actual PIAs are published yearly in the Federal Register.
c. The cost-of-living adjustment (COLA) for December 1999 was originally determined to be 2.4 percent, based on the Consumer Price Index (CPI). The underlying CPI was later recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to Public Law 106-554, benefits were calculated and paid in August 2001 and later as if the COLA for December 1999 had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that occurred before August 2001.
CONTACT: (410) 965-0090 or statistics@ssa.gov.
Table 2.A13 Formulas enacted in 1977 for computing OASI maximum family benefit from primary insurance amount (PIA) and cost-of-living adjustments (COLAs) for workers who were first eligible in 1979 or later, by year of first eligibility
Eligibility year Calculation of maximum family benefit (based on percentage of PIA) (dollars) First applicable COLA
150 percent of the first Plus 272 percent of the next Plus 134 percent of the next Plus 175 percent of the amount above Effective date Percentage increase
1979 230 102 101 433 June 1979 9.9
1980 248 110 109 467 June 1980 14.3
1981 270 120 118 508 June 1981 11.2
1982 294 131 129 554 June 1982 7.4
1983 324 144 142 610 December 1983 3.5
1984 342 151 150 643 December 1984 3.5
1985 358 159 158 675 December 1985 3.1
1986 379 169 166 714 December 1986 1.3
1987 396 175 174 745 December 1987 4.2
1988 407 181 179 767 December 1988 4.0
1989 433 193 190 816 December 1989 4.7
1990 455 201 200 856 December 1990 5.4
1991 473 209 208 890 December 1991 3.7
1992 495 219 217 931 December 1992 3.0
1993 513 227 226 966 December 1993 2.6
1994 539 240 237 1,016 December 1994 2.8
1995 544 241 239 1,024 December 1995 2.6
1996 559 247 246 1,052 December 1996 2.9
1997 581 258 255 1,094 December 1997 2.1
1998 609 271 267 1,147 December 1998 1.3
1999 645 286 283 1,214 December 1999 a 2.5
2000 679 301 298 1,278 December 2000 3.5
2001 717 317 315 1,349 December 2001 2.6
2002 756 336 332 1,424 December 2002 1.4
2003 774 344 340 1,458 December 2003 2.1
2004 782 347 343 1,472 December 2004 2.7
2005 801 355 352 1,508 December 2005 4.1
2006 838 372 368 1,578 December 2006 3.3
2007 869 386 381 1,636 December 2007 2.3
2008 909 403 399 1,711 December 2008 5.8
2009 950 422 417 1,789 December 2009 0.0
2010 972 431 427 1,830 December 2010 0.0
2011 957 425 421 1,803 December 2011 3.6
2012 980 435 430 1,845 December 2012 1.7
2013 1,011 448 444 1,903 December 2013 1.5
2014 1,042 463 457 1,962 December 2014 1.7
2015 1,056 468 463 1,987 December 2015 0.0
2016 1,093 485 480 2,058 December 2016 0.3
2017 1,131 502 497 2,130 December 2017 2.0
2018 1,144 507 503 2,154 December 2018 2.8
2019 1,184 524 520 2,228 December 2019 1.6
2020 1,226 544 539 2,309 December 2020 1.3
2021 1,272 565 558 2,395 December 2021 --
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2021," Federal Register, vol. 85, no. 205 (October 22, 2020). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
NOTES: The 1977 amendments provided for annual automatic adjustments of bend points (PIA brackets) in the maximum family benefit formula in proportion to increases in the average wage level. As a result, separate formulas are applicable to workers first eligible in successive calendar years.
Eligible workers are those who attained age 62 or died in the given year.
OASI = Old-Age and Survivors Insurance; -- = not available.
a. The COLA for December 1999 was originally determined to be 2.4 percent, based on the Consumer Price Index (CPI). The underlying CPI was later recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to Public Law 106-554, benefits were calculated and paid in August 2001 and later as if the COLA for December 1999 had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that occurred before August 2001.
CONTACT: (410) 965-0090 or statistics@ssa.gov.
Table 2.A14 Formulas for computing maximum family benefit and cost-of-living adjustments for workers first eligible for disability benefits in 1979 or later, by year of enactment
Eligibility year Formula
  Enacted in 1977 a
1979 b 150% of first $230 of PIA + 272% of next $102 of PIA + 134% of next $101 of PIA + 175% of PIA over $433 c
1980 b 150% of first $248 of PIA + 272% of next $110 of PIA + 134% of next $109 of PIA + 175% of PIA over $467 c
  Enacted in 1980 d
1979 or later Smaller of (1) 85% of the AIME (or 100% of PIA, if larger) and (2) 150% of PIA e
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2021," Federal Register, vol. 85, no. 205 (October 22, 2020). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
NOTES: PIA = primary insurance amount; AIME = average indexed monthly earnings.
a. The 1977 amendments provided for annual automatic adjustments of bend points (PIA brackets) in maximum family benefit formula in proportion to increases in average wage level. As a result, separate formulas are applicable to workers first eligible in successive calendar years.
b. Applicability of formula limited to workers with initial entitlement before July 1980, as a result of 1980 amendments.
c. Calculated amount subject to cost-of-living adjustments beginning with the one effective for June of the year of first eligibility.
d. Formula for computing maximum family benefit revised effective for workers with initial entitlement in or after July 1980. New formula remains unchanged for workers eligible in successive calendar years because it has no bend points requiring adjustments.
e. Calculated amount subject to cost-of-living adjustments beginning with the one effective in year of first eligibility (or in 1981, if later).
CONTACT: (410) 965-0090 or statistics@ssa.gov.
Table 2.A17 Minimum primary insurance amount (PIA) and maximum family benefit for workers who attained age 62, were first eligible for disabled-worker benefits, or died before 1979
Year enacted Effective date Minimum PIA a (dollars) Maximum family benefit
Percentage of AMW Not less than—
1935 . . . 10.00 . . . . . .
1939 . . . . . . Lesser of 80%, $85, or 200% of PIA $20.00
1950 September 1950 20.00 80% of first $187.50 $40.00
1952 September 1952 25.00 80% of first $210.93 $45.00
1954 September 1954 30.00 80% of first $250 $50.00 or 150% of PIA
1958 January 1959 33.00 80% of first $317.50 $20.00 + PIA or 150% of PIA
1961 August 1961 40.00 80% of first $317.50 150% of PIA
1965 January 1965 44.00 80% of first $370 + 40% of next $180 150% of PIA
1967 February 1968 55.00 80% of first $436 + 40% of next $214 150% of PIA
1969 January 1970 64.00 80% of first $436 + 40% of next $180 150% of PIA
1971 January 1971 70.40 88% of first $436 + 44% of next $191 b 150% of PIA
1972 September 1972 84.50 105.6% of first $436 + 52.8% of next $191 b 150% of PIA
1973 c June 1974 89.50 111.8% of first $436 + 55.9% of next $191 b 150% of PIA
1973 d March 1974 90.50 113.0% of first $436 + 56.5% of next $191 b 150% of PIA
June 1974 93.80 117.2% of first $436 + 58.6% of next $191 b 150% of PIA
June 1975 101.40 126.6% of first $436 + 63.3% of next $191 b 150% of PIA
June 1976 107.90 134.7% of first $436 + 67.3% of next $191 b 150% of PIA
June 1977 114.30 142.6% of first $436 + 71.3% of next $191 b 150% of PIA
June 1978 121.80 151.9% of first $436 + 76.0% of next $191 b 150% of PIA
June 1979 133.90 167.0% of first $436 + 83.5% of next $191 b 150% of PIA
June 1980 153.10 190.9% of first $436 + 95.4% of next $191 b 150% of PIA
June 1981 170.30 212.2% of first $436 + 106.1% of next $191 b 150% of PIA
1981 e March 1982 f 190.9% of first $436 + 106.1% of next $191 b 150% of PIA
1981 June 1982 182.90 227.9% of first $436 + 114.0% of next $191 b 150% of PIA
December 1983 189.30 235.9% of first $436 + 118.0% of next $191 b 150% of PIA
December 1984 195.90 244.2% of first $436 + 122.1% of next $191 b 150% of PIA
December 1985 201.90 251.8% of first $436 + 125.9% of next $191 b 150% of PIA
December 1986 204.50 255.1% of first $436 + 127.5% of next $191 b 150% of PIA
December 1987 213.00 265.8% of first $436 + 132.9% of next $191 b 150% of PIA
December 1988 221.50 276.4% of first $436 + 138.2% of next $191 b 150% of PIA
December 1989 231.90 289.4% of first $436 + 144.7% of next $191 b 150% of PIA
December 1990 244.40 305.0% of first $436 + 152.5% of next $191 b 150% of PIA
December 1991 253.40 316.3% of first $436 + 158.1% of next $191 b 150% of PIA
December 1992 261.00 325.8% of first $436 + 162.8% of next $191 b 150% of PIA
December 1993 267.70 334.3% of first $436 + 167.0% of next $191 b 150% of PIA
December 1994 275.10 343.7% of first $436 + 171.7% of next $191 b 150% of PIA
December 1995 282.20 352.6% of first $436 + 176.2% of next $191 b 150% of PIA
December 1996 290.30 362.8% of first $436 + 181.3% of next $191 b 150% of PIA
December 1997 296.30 370.4% of first $436 + 185.1% of next $191 b 150% of PIA
December 1998 300.10 375.2% of first $436 + 187.5% of next $191 b 150% of PIA
December 1999 g 307.60 384.6% of first $436 + 192.2% of next $191 b 150% of PIA
December 2000 318.30 398.1% of first $436 + 198.9% of next $191 b 150% of PIA
December 2001 326.50 408.5% of first $436 + 204.1% of next $191 b 150% of PIA
December 2002 331.00 414.2% of first $436 + 206.9% of next $191 b 150% of PIA
December 2003 337.90 422.9% of first $436 + 211.2% of next $191 b 150% of PIA
December 2004 347.00 434.3% of first $436 + 216.9% of next $191 b 150% of PIA
December 2005 361.20 452.1% of first $436 + 225.8% of next $191 b 150% of PIA
December 2006 373.10 467.0% of first $436 + 233.3% of next $191 b 150% of PIA
December 2007 381.60 477.7% of first $436 + 238.7% of next $191 b 150% of PIA
December 2008 403.70 505.4% of first $436 + 252.5% of next $191 b 150% of PIA
December 2009 403.70 505.4% of first $436 + 252.5% of next $191 b 150% of PIA
December 2010 403.70 505.4% of first $436 + 252.5% of next $191 b 150% of PIA
December 2011 418.20 523.6% of first $436 + 261.6% of next $191 b 150% of PIA
December 2012 425.30 532.5% of first $436 + 266.0% of next $191 b 150% of PIA
December 2013 431.70 540.5% of first $436 + 265.5% of next $191 b 150% of PIA
December 2014 439.00 549.7% of first $436 + 274.6% of next $191 b 150% of PIA
December 2015 439.00 549.7% of first $436 + 274.6% of next $191 b 150% of PIA
December 2016 440.30 551.3% of first $436 + 275.4% of next $191 b 150% of PIA
December 2017 449.10 562.3% of first $436 + 280.9% of next $191 b 150% of PIA
December 2018 461.70 578.0% of first $436 + 288.8% of next $191 b 150% of PIA
December 2019 469.10 587.2% of first $436 + 293.4% of next $191 b 150% of PIA
December 2020 475.20 594.8% of first $436 + 297.2% of next $191 b 150% of PIA
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2021," Federal Register, vol. 85, no. 205 (October 22, 2020). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
NOTE: AMW = average monthly wage; . . . = not applicable.
a. Based on earnings; subject to reduction if claimed before age 65.
b. For AMW of $628 or more, 175 percent of PIA.
c. Superseded by legislation in 1973.
d. Beginning in 1975, minimum PIA and percentages in maximum family benefit formula are subject to automatic cost-of-living increases. (Superseded legislation in 1972 for automatic increases beginning in 1974.)
e. Superseded by legislation in 1981 that restored the minimum PIA for these groups.
f. Minimum PIA eliminated by legislation in 1981.
g. The cost-of-living adjustment (COLA) for December 1999 was originally determined to be 2.4 percent, based on the Consumer Price Index (CPI). The underlying CPI was later recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to Public Law 106-554, benefits were calculated and paid in August 2001 and later as if the COLA for December 1999 had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that occurred before August 2001.
CONTACT: (410) 965-0090 or statistics@ssa.gov.
Table 2.A17.1 Full retirement age (FRA) and maximum reduction of retired-worker benefits, by year of birth
Year of birth a Year of attainment of age 62 FRA Year of attainment of FRA Maximum reduction months Maximum reduction at age 62 b
1935 1997 65 years 2000 36 0.2000000
1936 1998 65 years 2001 36 0.2000000
1937 1999 65 years 2002 36 0.2000000
1938 2000 65 years and 2 months 2003 or 2004 38 0.2083333
1939 2001 65 years and 4 months 2004 or 2005 40 0.2166667
1940 2002 65 years and 6 months 2005 or 2006 42 0.2250000
1941 2003 65 years and 8 months 2006 or 2007 44 0.2333333
1942 2004 65 years and 10 months 2007 or 2008 46 0.2416667
1943–1954 2005–2016 66 years 2009–2020 48 0.2500000
1955 2017 66 years and 2 months 2021 or 2022 50 0.2583333
1956 2018 66 years and 4 months 2022 or 2023 52 0.2666667
1957 2019 66 years and 6 months 2023 or 2024 54 0.2750000
1958 2020 66 years and 8 months 2024 or 2025 56 0.2833333
1959 2021 66 years and 10 months 2025 or 2026 58 0.2916667
1960 or later 2022 and later 67 years 2027 and later 60 0.3000000
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
a. If birthday is January 1, refer to previous year.
b. The monthly reduction factor is 0.0055556 for the 36 months immediately preceding full retirement age and 0.0041667 for prior months.
CONTACT: (410) 965-0090 or statistics@ssa.gov.
Table 2.A17.2 Full retirement age (FRA) and maximum reduction of widow(er)s' benefits, by year of birth
Year of birth a Year of attainment of age 60 FRA Year of attainment of FRA Maximum reduction months Monthly reduction b
1939 or earlier 1999 and earlier 65 years 2004 and earlier 60 0.475
1940 2000 65 years and 2 months 2005 or 2006 62 0.460
1941 2001 65 years and 4 months 2006 or 2007 64 0.445
1942 2002 65 years and 6 months 2007 or 2008 66 0.432
1943 2003 65 years and 8 months 2008 or 2009 68 0.419
1944 2004 65 years and 10 months 2009 or 2010 70 0.407
1945–1956 2005–2016 66 years 2011–2022 72 0.396
1957 2017 66 years and 2 months 2023 or 2024 74 0.385
1958 2018 66 years and 4 months 2024 or 2025 76 0.375
1959 2019 66 years and 6 months 2025 or 2026 78 0.365
1960 2020 66 years and 8 months 2026 or 2027 80 0.356
1961 2021 66 years and 10 months 2027 or 2028 82 0.348
1962 or later 2022 and later 67 years 2029 and later 84 0.339
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
NOTES: Widows and widowers can elect reduced monthly benefits at age 60 or, if disabled, as early as age 50. Surviving divorced spouses can also receive benefits if married to the worker for at least 10 years and not remarried before age 60 (age 50 if disabled).
a. If birthday is January 1, refer to previous year.
b. Monthly reduction percentages are approximate because of rounding. For survivors whose full retirement age (FRA) is 65, the monthly rate of reduction for the first 60 months immediately preceding FRA is 19/40 of 1 percent of the worker's primary insurance amount (PIA), with a maximum reduction of 28.5 percent at age 60. For survivors whose FRA is older than 65, the amount of reduction for each month prior to FRA is adjusted accordingly to ensure that the maximum reduction at age 60 remains 28.5 percent of the worker's PIA.
CONTACT: (410) 965-0090 or statistics@ssa.gov.
Table 2.A17.3 Full retirement age (FRA) and maximum increase for delayed retirement credit, by year of birth
Year of birth a FRA Year of attainment of FRA Credit for delay in claiming retired-worker benefit (percent) Maximum credit months Maximum percentage increase for delay to age 70 b
Per month b Per year
1924 65 years 1989 0.250 3.0 60 15.000
1925–1926 65 years 1990–1991 0.292 3.5 60 17.500
1927–1928 65 years 1992–1993 0.333 4.0 60 20.000
1929–1930 65 years 1994–1995 0.375 4.5 60 22.500
1931–1932 65 years 1996–1997 0.417 5.0 60 25.000
1933–1934 65 years 1998–1999 0.458 5.5 60 27.500
1935–1936 65 years 2000–2001 0.500 6.0 60 30.000
1937 65 years 2002 0.542 6.5 60 32.500
1938 65 years and 2 months 2003 or 2004 0.542 6.5 58 31.417
1939 65 years and 4 months 2004 or 2005 0.583 7.0 56 32.667
1940 65 years and 6 months 2005 or 2006 0.583 7.0 54 31.500
1941 65 years and 8 months 2006 or 2007 0.625 7.5 52 32.500
1942 65 years and 10 months 2007 or 2008 0.625 7.5 50 31.250
1943–1954 66 years 2009–2020 0.667 8.0 48 32.000
1955 66 years and 2 months 2021 or 2022 0.667 8.0 46 30.667
1956 66 years and 4 months 2022 or 2023 0.667 8.0 44 29.333
1957 66 years and 6 months 2023 or 2024 0.667 8.0 42 28.000
1958 66 years and 8 months 2024 or 2025 0.667 8.0 40 26.667
1959 66 years and 10 months 2025 or 2026 0.667 8.0 38 25.333
1960 or later 67 years 2027 and later 0.667 8.0 36 24.000
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
a. If birthday is January 1, refer to previous year.
b. Some percentages are approximate because of rounding.
CONTACT: (410) 965-0090 or statistics@ssa.gov.
Table 2.A18 Legislative provisions addressing automatic adjustments to benefit computations
Year enacted Provision
  Quarter of coverage
1977 Mandatory annual determination, beginning in 1978, as to whether an adjustment is required in the amount of wages and self-employment earnings an individual needs in order to be credited with a quarter of coverage (QC) in the succeeding year. The amount required for a QC is the product of $250 (in effect in 1978) multiplied by the following quotient: the national average wage for the year before the year of determination, divided by the average wage for 1976 (see Table 2.A8 for average annual wages after 1950). The resulting product, rounded to the nearest multiple of $10, is the new amount required for a QC. In no case, however, is the new amount reduced below the amount in effect in the year of determination.
  Maximum amount of taxable and creditable earnings
1972 The 1972 Act (as modified by the legislation in 1973) mandated a determination in 1974, and in every subsequent year in which a cost-of-living benefit increase is established, as to whether an adjustment is required in the maximum amount of annual earnings that will be taxed and credited toward benefits.
The determination in the years after 1975 is made by multiplying the "maximum" in effect in the year of determination by the following quotient: the national average wage for the year before the year of determination, divided by the average wage for the year before the most recent year in which an automatic determination was made that resulted in an increase or in which an increase in the maximum was enacted. (See Table 2.A8 for annual amounts of the average wage after 1950). The resulting product, rounded to the nearest multiple of $300, is the new maximum amount of taxable and creditable earnings, effective with respect to remuneration paid after the year of determination and with respect to taxable years beginning after that year. In no case, however, is the maximum reduced to an amount below the maximum in the year of determination.
1976 In the 1974 and 1975 determinations, the quotient was the average wage for the year of determination, estimated from data for the first calendar quarter, divided by the corresponding amount for the year before the year of determination. Public Law (P.L.) 94-202 (signed January 2, 1976) revised the adjustment method by increasing by a year the lag in average wages used in the computation. Thus, for example, the determination in 1976 was based on the percentage increase in the average wage from 1974 to 1975.
1977 Statutory in lieu of automatic increases in the maximum instituted for 1979, 1980, and 1981. Also, for purposes of establishing a "year of coverage" used in the computation of the special minimum primary insurance amount PIA, annual maximum taxable and creditable earnings after 1978 are the amounts that would have been determined under the automatic adjustment provisions if the statutory increases in the maximum under the 1977 Act had not been enacted (see Table 2.A12a).
1989 Automatic increases in the maximum for 1990, 1991, and 1992 determined under a transitional rule, specified by the Omnibus Budget Reconciliation Act of 1989, for computing "deemed" average annual wage for 1988, 1989, and 1990. The purpose of the legislation was to include contributions to certain "deferred compensation" plans, most importantly section 401(k) pension plans, in the average annual average wage.
1994 The determination for years after 1994 is made by multiplying $60,600, the "maximum" for 1994, by the following quotient: the national average wage index for the year before the year in which the determination is made, divided by the national average wage index for 1992. (See Table 2.A8 for annual amounts of the national average wage index.) The resulting product, rounded to the nearest $300, is the new maximum amount of taxable and creditable earnings, effective with respect to remuneration paid in (and taxable years beginning in) the year following the year the determination is made. In no case, however, is the new maximum reduced to an amount below the maximum in the year of determination.
  Benefits
  Computation
1977 New benefit computation method based on average indexed monthly earnings (AIME) after 1950, effective for workers first eligible after 1978. Provision for automatic adjustment of the dollar amounts, or bend points, defining (1) the AIME brackets in the PIA formula (see Table 2.A11) and (2) the PIA brackets in the maximum family benefit formula (see Table 2.A13). New bend points are established by multiplying the bend points in effect in 1979—$180 and $1,085 for the PIA formula and $230, $332, and $433 for the maximum family benefit formula—by the following quotient: the national average wage for the second year before the year for which the determination was made, divided by the average wage for 1977 (see Table 2.A8 for average annual wages after 1950). The resulting products, rounded to the nearest dollar, are the new bend points.
1980 Modified maximum family benefit formula applicable to workers with initial entitlement to disability benefits in or after July 1980 (see Table 2.A14). New formula for disabled workers has no bend points subject to automatic adjustment.
  Cost-of-living increase
1972 Under the original provisions (based on 1972 and 1973 legislation), the arithmetical mean of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for January, February, and March in the year of determination was compared with the arithmetical mean of the CPI for the later of (a) January, February, and March of the year in which the last effective cost-of-living increase was established or (b) the 3 months of the calendar quarter in which the effective month of the last general benefit increase occurred. (Before the introduction, in 1977, of the alternative CPI series for "all urban consumers," or the CPI-U, the CPI-W was referred to as the CPI.) If the percentage increase in the CPI, rounded to the nearest one-tenth of 1 percent, was at least 3.0 (the triggering requirement), a cost-of-living benefit increase was established and the level of benefits was increased by the same percentage, effective for June of the year in which the determination was made.
1983 The 1983 Act moved the effective date for a cost-of-living benefit increase from June to December, beginning in 1983, and eliminated the "triggering requirement" for the 1983 increase only. Effective with the determination made in 1984, the two periods used in calculating the CPI-W percentage increase were shifted from the first to the third quarter.
The 1983 Act also introduced an alternative method for determining the size of a cost-of-living adjustment (COLA). This method, called the stabilizer provision, is applied when the ratio of the combined OASDI trust fund assets to estimated outgo falls below a certain percentage. The "triggering" percentage is 15 percent for 1985–1988 and 20 percent for years after 1988. Under these circumstances, the COLA is based on the lesser of the CPI-W percentage increase determined above or the increase in average wages. The latter increase is the percentage, rounded to the nearest one-tenth of 1 percent by which the national average wage for the year before the year of determination exceeds the average wage for the year before the most recent year in which either a cost-of-living increase or a general benefit increase occurred. (See Table 2.A8 for the annual amount of the average wage after 1950 and footnote a in that table for the underlying data sources.)
The 1983 legislation also included a provision for making up any benefit increases that are based on a lower wage increase rather than on the increase in the cost of living. When the fund ratio is greater than 32 percent, additional increases will be provided so that benefits are increased to the level at which they would have been if all increases had been based on the CPI-W. (See Table 2.A19 for the cumulative effect of statutory and automatic increases in benefits.)
1986 Triggering requirement eliminated for cost-of-living increases in and after 1986 by P.L. 99-509 (signed October 21, 1986).
2001 The COLA for December 1999 was originally determined to be 2.4 percent, based on the CPI. The underlying CPI was later recomputed by the Bureau of Labor Statistics (BLS); a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to P.L. 106-554, benefits were calculated and paid in August 2001 and later as if the COLA for December 1999 had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that occurred before August 2001.
2007 The rules for calculating automatic cost-of-living increases to PIAs under title II of the Social Security Act (the Act) were revised. The arithmetical mean of the CPI for each month is computed for the beginning and ending quarters of the measuring period, and the result is rounded to the same number of decimal places as the published CPI figures. Through December 2006, BLS published CPI figures rounded to the nearest one-tenth of 1 percent. BLS began publishing CPI figures rounded to the nearest one-thousandth of 1 percent in January 2007.
  Earnings test
1972 The 1972 Act (as modified by the 1973 Acts) mandated a determination in 1974, and in every subsequent year in which a cost-of-living increase is established, as to whether an adjustment in the exempt amount—the amount of earnings permitted without reduction in benefits—is required.
The determination in the years after 1975 is made by multiplying the monthly exempt amount in effect in the year of determination by the following quotient: the national average wage for the year before the year of determination, divided by the average wage for the year before the most recent year in which an automatic determination was made that resulted in an increase or in which an increase in the exempt amount was enacted. (See Table 2.A8 for annual amounts of the average wage after 1950.) The resulting product, rounded to the nearest multiple of $10, is the new monthly exempt amount, effective with respect to remuneration paid after the year of determination and with respect to taxable year beginning after that year. In no case, however, is the new exempt amount reduced below the exempt amount in the year of determination. The new annual exempt amount is determined by multiplying the new monthly amount by 12.
1976 In the 1974 and 1975 determinations, the quotient was the average wage for the year of determination, estimated from data for the first calendar quarter, divided by the corresponding amount for the year before the year of determination. P.L. 94-202 (signed January 2, 1976) revised the adjustment method by increasing by a year the lag in average wages used in the computation. Thus, for example, the 1976 determination was based on the percentage increase in the average wage from 1974 to 1975.
1994 The determination for years after 1994 is made by multiplying the monthly exempt amounts in effect for 1994 ($930 for beneficiaries who have, $670 for beneficiaries who have not yet, reached "full retirement age"; see footnote f in Table 2.A29) by the following quotient: the national average wage for the year before the year in which the determination is made, divided by the national average wage for 1992. (See Table 2.A8 for annual amounts of the national average wage.) The resulting products, rounded to the nearest $10, are the new monthly exempt amounts effective for the year following the year the determination is made. The new annual exempt amounts are determined by multiplying the new monthly amounts by 12.
1996 P.L. 104-121, enacted March 29, 1996, suspended the automatic indexing of the exempt amounts through the year 2002 for workers aged–65–69. It legislated ad hoc increases in the annual exempt amounts to $12,500 in 1996; $13,500 in 1997; $14,500 in 1998; $15,500 in 1999; $17,000 in 2000; $25,000 in 2001; and $30,000 in 2002. Thereafter, the exempt amounts will increase automatically based on the annual increase in the national average wage as under the 1994 legislation.
2000 P.L. 106-182, enacted April 7, 2000, eliminated the earnings test beginning with the month a beneficiary reaches full retirement age (FRA). The annual earnings test that applies in the year of attainment of FRA is based on the annual limits established under P.L. 104-121 (including the $1 for $3 withholding rate). In determining annual earnings for purposes of the annual earnings test under this legislation, only earnings before the month of attainment of FRA will be considered. P.L. 106-182 did not change the annual exempt amount for beneficiaries who are under FRA throughout the year, which continues to be pegged to increases in the average wage.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2021," Federal Register, vol. 85, no. 205 (October 22, 2020). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
NOTE: OASDI = Old-Age, Survivors, and Disability Insurance.
CONTACT: (410) 965-0090 or statistics@ssa.gov.
Table 2.A19 Illustrative benefit growth: Cumulative effect of statutory and automatic increases a in benefits using a 100 dollar base benefit, selected years
Base date Aug. 1950 Sept. 1954 Jan. 1965 Jan. 1970 June 1975 June 1980 Dec. 1985 Dec. 1990 Dec. 1995 Dec. 2000 Dec. 2005 Dec. 2010 Dec. 2015 Dec. 2016 Dec. 2017 Dec. 2018 Dec. 2019 Dec. 2020
Aug. 1950 100 225 258 335 530 799 1,053 1,276 1,475 1,665 1,890 2,112 2,296 2,302 2,348 2,413 2,451 2,482
Sept. 1954 . . . 100 114 149 235 355 468 567 655 740 839 937 1,017 1,020 1,040 1,069 1,086 1,100
Jan. 1965 . . . . . . 100 130 206 310 409 495 573 646 733 819 888 890 907 932 946 958
Jan. 1970 . . . . . . . . . 100 158 239 315 381 441 497 563 629 682 684 697 716 727 736
June 1975 . . . . . . . . . . . . 100 151 199 241 278 314 356 397 430 431 439 451 458 463
June 1980 . . . . . . . . . . . . . . . 100 132 160 185 209 235 262 283 283 288 296 300 303
Dec. 1985 . . . . . . . . . . . . . . . . . . 100 121 140 158 179 198 214 214 218 224 227 229
Dec. 1990 . . . . . . . . . . . . . . . . . . . . . 100 116 131 148 163 174 174 177 181 183 185
Dec. 1995 . . . . . . . . . . . . . . . . . . . . . . . . 100 113 127 141 152 152 155 159 161 163
Dec. 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 113 125 134 134 136 139 141 142
Dec. 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 111 117 117 119 122 123 124
Dec. 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 106 106 108 111 112 113
Dec. 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 100 102 104 105 106
Dec. 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 102 104 105 106
Dec. 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 102 103 104
Dec. 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 101 102
Dec. 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 101
Dec. 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2020; regulations issued under the Act; and precedential case decisions (rulings). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2021," Federal Register, vol. 85, no. 205 (October 22, 2020). See the Social Security Program Rules page (https://www.ssa.gov/regulations/index.htm) for specific laws, regulations, rulings, legislation, and a link to the Federal Register.
NOTES: Growth reflects cost-of-living adjustments only. The amounts shown in the table are computed using unrounded data, with results rounded to the nearest dollar.
. . . = not applicable.
a. Ad hoc benefit increases were enacted by statute before 1975. Since then, automatic annual increases have been determined by formula (see https://www.ssa.gov/history/briefhistory3.html, “The Story of COLAs,” and Table 2.A13).
CONTACT: (410) 965-0090 or statistics@ssa.gov.