Question

How is the amount of Social Security disability benefits calculated?

a) It is based on age, number of quarters worked in the last 20 years (minimum of 60) and the number of health claims made during that period of time.
b) It is based upon the worker's Primary Insurance Amount (PIA), which is calculated from their Average Indexed Monthly Earnings over their highest 35 years.
c) It is based upon the worker's Primary Insurance Amount (PIA), which is calculated from their Average Indexed Monthly Earnings over their highest 30 years.
d) It is based on age, number of quarters worked in the last 25 years (minimum of 80) and the number of health claims made during that period of time.

Answer 1

Social Security disability benefits are calculated based on the worker's Primary Insurance Amount (PIA), which is calculated from their Average Indexed Monthly Earnings over their highest 35 years of work. So, the correct answer is option b.

Step-by-step explanation:

Social Security disability benefits are calculated based on the worker's Primary Insurance Amount (PIA), which is calculated from their Average Indexed Monthly Earnings over their highest 35 years of work. The PIA takes into account the worker's earnings history and applies a formula to determine the benefit amount. It is important to note that the benefit amount is subject to annual cost-of-living adjustments. So, the correct answer is option b.