Average indexed monthly earnings are derived from the worker's earnings history and determine the primary insurance amount (PIA).

Question

Quizplus · Accepted Answer

This statement is true. Average indexed monthly earnings (AIME) are determined using a formula that incorporates a worker's earnings history adjusted for inflation, and the AIME is used to calculate the PIA, which is the basis for determining a worker's Social Security benefit amount.

Average Indexed Monthly Earnings Are Derived from the Worker's Earnings