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The Simplified Old-Start Formula

Excerpted from "Social Security Handbook". See the up-to-date, official Social Security Handbook at ssa.gov.

707. The Simplified Old-Start Formula

707.1 What is the simplified old-start formula?

The simplified old-start formula is used to figure the AME and the Primary Insurance Benefit (PIB). It is used if an individual meets the requirements for its use and if it produces a higher PIA than the AME or AIME formula.

707.2 How is the simplified old-start formula used?

Under the simplified old-start formula, your earnings for 1937 through 1950 are considered a single total amount. This total amount is allocated equally to each of those years (1937-1950). These years are used along with years after 1950 to determine your average earnings.

This formula considers computation and elapsed years in the usual way (§§703-704) except that years are counted from after 1936 instead of after 1950. Base years, however, are determined differently as explained in §705.

Last Revised: March, 2001


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