Which of the following statements about a worker's primary insurance amount is (are)true?
I.It is the monthly amount paid to a worker who elects early retirement at age 62.
II.It is equal to 50 percent of the worker's final average pay that was subject to Social Security taxes.

Question

Quizplus · Accepted Answer

The primary insurance amount (PIA) is the benefit (before any adjustments for age) a person would receive if they elect to begin receiving retirement benefits at their normal retirement age. It is calculated based on the worker's 35 highest-earning years adjusted for inflation, not as a flat 50% of final average pay. Electing early retirement at age 62 results in a reduced benefit, not the full PIA.

Which of the Following Statements About a Worker's Primary Insurance