Average Monthly Wage (AMW)
Barron's Insurance Dictionary:
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Average Monthly Wage (AMW)
Figure used in calculating a worker’s primary insurance amount (pia) to determine Social Security benefits in the following manner:
1. calculate the number of years between the worker’s twenty-first birthday and the year prior to the worker reaching age 62 (a maximum of 40 years).
2. exclude the five lowest years of earnings, thereby selecting the 35 highest years (420 months) of earnings.
3. divide the total of the 35 highest years of earnings by 420 months to calculate the Average Monthly Wage.
A Social Security Administration table shows the PIA for the Average Monthly Wage calculated in Step 3. The PIA is then increased to reflect the cost - of - living adjustment (cola) to determine the actual benefit.
1. calculate the number of years between the worker’s twenty-first birthday and the year prior to the worker reaching age 62 (a maximum of 40 years).
2. exclude the five lowest years of earnings, thereby selecting the 35 highest years (420 months) of earnings.
3. divide the total of the 35 highest years of earnings by 420 months to calculate the Average Monthly Wage.
A Social Security Administration table shows the PIA for the Average Monthly Wage calculated in Step 3. The PIA is then increased to reflect the cost - of - living adjustment (cola) to determine the actual benefit.
| Average Indexed Monthly Earnings (AIME), Average Earnings Clause (Ratio of Earnings to The Amount of Insurance), Average Adjuster | |
| Average Rate, Average Semiprivate Rate, Average Weeklywage |
Abbreviations:
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AMW
is short for:
| Meaning | Category |
| Actress Model Whatever | Miscellaneous->Unfiled |
| Air Mobility Wing | Governmental->Military |
| America's Most Wanted | Community->Media |
| Americas Most Wanted | Miscellaneous->Unfiled |
| Amphibious Warfare | Governmental->Military |
| Amwest Insurance Group, Inc. | Business->AMEX Symbols |
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