Average Monthly Wage (amw)
Definition of "Average monthly wage (amw)"
Figure used in calculating a worker's primary insurance amount (PIA) to determine Social Security benefits in the following manner:
- 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).
- exclude the five lowest years of earnings, thereby selecting the 35 highest years (420 months) of earnings.
- divide the total of the 35 highest years of earnings by 420 months to calculate the Average Monthly Wage.
Popular Insurance Terms
Loss of a key person due to death, disability, sickness, resignation, incarceration, or retirement. Because of the expertise of such an individual, there could be a loss of income, market ...
Classification of occupations according to the degree of risk inherent in that occupation. ...
Quality of being useful. Risk diminishes maximum utility in society because resources gravitate to activities, businesses, and investments that are least risky. By absorbing or protecting ...
Rate of increase in asset value. ...
Option clause in a disability income policy that the insured can exercise that would permit the insured the right to purchase additional limits of coverage regardless of the insured's ...
Deduction allowed for gifts and bequests to a spouse for federal estate and gift tax purposes. Under the Economic Recovery Tax Act of 1981 (ERTA), the deduction became unlimited. Prior to ...
Record of insurance policies sold to an individual. ...
Individual added to a life insurance policy other than the insured named in the policy. For example, an insured father can have a dependent son and daughter added to the policy as ...
Policy that provides an income for life to the primary beneficiary upon the death of the insured. The face amount of the policy becomes payable to the secondary beneficiary upon the death ...
Have a question or comment?
We're here to help.