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The Head Detective
10-23-2007, 08:27 PM
GRASP card 193 sez:

"Benefit equals 100% of PIA they would recieve if they were 62..."

I can't find anything in the text (Handbook of EE Ben Chp 22 page 540) that mentions age 62. The text states that the PIA and AIME are calculated the same way as they are for retirees (with fewer dropout years for younger disableds).

What does age 62 have to do with anything? What am I missing? Does it matter?
bdschobel
10-23-2007, 09:12 PM
That's a very confusing description. Under Social Security law, the basic building block of any monthly benefit is the primary insurance amount, or PIA. A person who first claims retirement benefits at normal retirement age receives a monthly benefit equal to 100% of the PIA. Those who retire early get less; those who retire later get more.

Workers who become disabled without having already claimed retirement benefits (for example, but not limited to, those becoming disabled before age 62) receive a monthly benefit equal to 100% of the PIA. This is not the PIA at age 62, whatever that means. It's just the PIA, calculated as of the onset of disability, with an appropriately reduced number of years of earnings (35 are used for most retirement cases). No actuarial reduction for age is applied.

Bruce
The Head Detective
10-23-2007, 09:21 PM
Thanks Bruce! That is how I understood it from the text. I think the flashcard might be a typo (Tammy can you please confirm?), but I wanted to make sure I wasn't missing something.

I think I'm good now.
The Head Detective
10-23-2007, 10:35 PM
Also - semi related - the title of card number 196 "Computation of the AIME for SSI Benefits" is not correct. It should be "Computation of the AIME for OASDI Benefits".

Sorry if someone has already pointed this out.
bdschobel
10-23-2007, 10:43 PM
That's correct. AIME is a meaningless concept under SSI.

Bruce
Rainson
10-23-2007, 11:10 PM
I agree, these are both typos. I don't know where I got the "if they were 62" from agree the SSI should be OASDI.

I also noticed that the reference on cards 187 - 199 say "Canadian Handbook Ch 22" and should say "Employee Benefits Ch 22".