"Basic Benefit" Calculation

The "Basic Benefit" is a monthly payment that is one-twelfth (1/12) of the total of:

 

  27% of the first $11,000 of cumulative covered earnings; and
  2.9% of cumulative covered earnings in excess of $11,000 but not in excess of the next $33,000; and
  1.5% of cumulative covered earnings in excess of $44,000
  0.75% of the cumulative covered earnings in excess of $500,000

Below is a sample of how to calculate benefits for an eligible applicant with cumulative covered earnings of $550,000:

Cumulative Covered Earnings of $550,000
27% x $11,000 = $2,970
2.9% x $33,000 = $957
1.5% x $456,000 = $6,840
0.75% x $50,000 = $375
TOTAL:
$11,142
"Basic Benefit":
($11,142/12 Months)
$928.50



Benefit amount if the applicant is applying for retirement benefits:
$928.50
Benefit amount if the applicant is applying for disability benefits:
$928.50
Benefit amount if the applicant is applying for child survivor benefits:
$928.50 x 15% = $139.28 per month
Benefit amount if the applicant is applying for spouse survivor benefits:
$928.50 per month if the applicant is 60 years old or older and unmarried
or
$928.50 x 60% = $557.10 per month if applicant is 60 years old or older and remarried
or
$928.50 x 60% = $557.10 per month if applicant is under 60 years old and unmarried