Example: Ms. F, who attained age 62 in January 1979, had $10,000 in total social security earnings before 1951 and her post-1950 earnings are as follows:
Year | Earnings |
1951 | $1,100 |
1952 | 950 |
1953 | 0 |
1954 | 1,000 |
1955 | 1,100 |
1956 | 1,200 |
1957 | 0 |
1958 | 1,300 |
1959 | 0 |
1960 | 1,300 |
1961 | 0 |
1962 | 1,400 |
1963 | 1,300 |
1964 | 0 |
1965 | 500 |
1966 | 700 |
1967 | 650 |
1968 | 900 |
1969 | 1,950 |
1970 | 2,100 |
1971 | 2,000 |
1972 | 1,500 |
1973 | 2,700 |
1974 | 2,100 |
1975 | 2,600 |
1976 | 3,850 |
1977 | 4,150 |
1978 | 0 |
Her primary insurance amount under the average-indexed-monthly-earnings method as of June 1981 is $240.40 (based on average indexed monthly earnings of $229). Her guaranteed-alternative primary insurance amount under the average-monthly-wage method as of June 1981 is $255.80 (based on average monthly wages of $131).
However, Ms. F has enough earnings before 1951 to allow her 11 years of coverage before 1951 ($10,000 ÷ $900 = 11, plus a remainder, which we drop). She has sufficient earnings in 1951-52, 1954-56, 1958, 1960, 1962-63, 1969-71, 1973, and 1976-77 to have a year of coverage for each of those years. She thus has 15 years of coverage after 1950 and a total of 26 years of coverage. We subtract 10 from her years of coverage, multiply the remainder (16) by $11.50 and get $184.00. We then apply the June 1979, June 1980, and June 1981 automatic cost-of-living increases (9.9 percent, 14.3 percent, and 11.2 percent, respectively) to that amount to find her special minimum primary insurance amount of $202.30 effective June 1979, $231.30 effective June 1980, and $257.30 effective June 1981. (See appendices V and VI.) Since her special minimum primary insurance amount is higher than the primary insurance amounts computed for her under the other methods described in this subpart for which she is eligible, her benefits (and those of her family) are based on the special minimum primary insurance amount.
20 C.F.R. §404.261