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<title>Actuarial Note 103</title>
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<body bgcolor="white" text="black">
<table border="0" cellpadding="0" cellspacing="0" width="100%" summary="Actuarial Note identification">
<tr align="right" valign="top">
<td><div class="pTitle"> ACTUARIAL NOTE </div> </td>
<td><div class="pCellBody"> &#160; </div> </td>
</tr>
<tr align="right" valign="top">
<td><div class="pCellBody"> &#160; </div> </td>
<td><div class="pSSA"> SOCIAL SECURITY ADMINISTRATION </div> </td>
</tr>
<tr align="right" valign="top">
<td><div class="pDate"> Number 103<br />May 1981 </div> </td>
<td><div class="pOCACT"> Office of the Chief Actuary<br />Baltimore, Maryland</div></td>
</tr>
<tr align="right" valign="top">
<td colspan="2" rowspan="1"><div class="pNoteTitle">
AVERAGE WAGES FOR INDEXING UNDER THE SOCIAL SECURITY ACT<br />
AND THE AUTOMATIC DETERMINATIONS FOR 1979-81</div></td>
</tr>
<tr align="right" valign="top">
<td colspan="2" rowspan="1"><div class="pAuthor">by Eli N. Donkar, Ph.D., A.S.A.</div></td>
</tr>
</table>
<table border="0" cellpadding="2" cellspacing="0" width="100%" summary="outline">
<tr valign="top">
<td colspan="2"><a href="introduction.html">INTRODUCTION</a></td></tr>
<tr valign="top">
<td colspan="2"><a href="construction.html#top">CONSTRUCTION OF THE 1951-77
AVERAGE WAGE SERIES</a></td></tr>
<tr valign="top">
<td width="5%" align="right">1.</td>
<td> <a href="construction.html#1">Historical precedents for
wage indexing and average wage</a></td></tr>
<tr valign="top">
<td width="5%" align="right">2.</td>
<td> <a href="construction.html#2">The preliminary series
of average wages</a></td></tr>
<tr valign="top">
<td width="5%" align="right">3.</td>
<td> <a href="construction.html#3">Limitations on other
historical sources of data available from SSA</a></td></tr>
<tr valign="top">
<td width="5%" align="right">4.</td>
<td> <a href="construction.html#4">The construction of the
final average wage series for 1951-77</a></td></tr>
<tr valign="top">
<td width="5%" align="right">5.</td>
<td> <a href="construction.html#5">The final
series&#8212indications of reliability</a></td></tr>
<tr valign="top">
<td colspan="2"><a href="avgwage.html#top">AVERAGE WAGES FOR 1978 AND
1979</a></td></tr>
<tr valign="top">
<td width="5%" align="right">1.</td>
<td> <a href="avgwage.html#1">Sources of data for years after
1977</a></td></tr>
<tr valign="top">
<td width="5%" align="right">2.</td>
<td> <a href="avgwage.html#2">IRS wage data for 1977-79</a></td></tr>
<tr valign="top">
<td width="5%" align="right">3.</td>
<td> <a href="avgwage.html#3">Average wages for indexing, 1977-79</a></td></tr>
<tr valign="top">
<td colspan="2"><a href="determination.html#top">DETERMINATION OF WAGE-INDEXED PROGRAM
AMOUNTS FOR 1979-81</a></td></tr>
<tr valign="top">
<td width="5%" align="right">1.</td>
<td> <a href="determination.html#1">The retirement test exempt amounts</a></td></tr>
<tr valign="top">
<td width="5%" align="right">2.</td>
<td> <a href="determination.html#2">Amount of earnings required for a
quarter of coverage</a></td></tr>
<tr valign="top">
<td width="5%" align="right">3.</td>
<td> <a href="determination.html#3">Bend points in PIA formula and maximum
family benefit formula</a></td></tr>
<tr valign="top">
<td width="5%" align="right">4.</td>
<td> <a href="determination.html#4">Contribution and benefit base</a></td></tr>
<tr valign="top">
<td width="5%" align="right">5.</td>
<td> <a href="determination.html#5">Contribution and benefit base
under provisions in "old law"</a></td></tr>
<tr valign="top">
<td colspan="2"><a href="fedregister.html#top">Relevant Federal Register Publications</a></td></tr>
<tr valign="top">
<td colspan="2"><a href="table.html#top">Tables</a></td></tr>
<tr valign="top">
<td width="5%" align="right">1.</td>
<td> <a href="table.html#1">Average wage series for indexing earnings
under the Social Security Act, calendar years 1951-79</a></td></tr>
<tr valign="top">
<td width="5%" align="right">2.</td>
<td> <a href="table.html#2">Social Security program amounts determined under
the automatic provisions which depend on increases in average wages, calendar years 1978-81</a></td></tr>
<tr valign="top">
<td width="5%" align="right">3.</td>
<td> <a href="table.html#3">First-quarter averages used in constructing the
preliminary indexing series, calendar years 1951-77</a></td></tr>
<tr valign="top">
<td width="5%" align="right">4.</td>
<td> <a href="table.html#4">First-quarter averages used in constructing the
final indexing series, calendar years 1951-77</a></td></tr>
<tr valign="top">
<td width="5%" align="right">5.</td>
<td> <a href="table.html#5">Average wages, percentage increases and
indexing factors resulting from the preliminary average wage series, the final average wage series,
and an average wage series derived from Department of Commerce (DoC) estimates,
calendar years 1951-77</a></td></tr>
<tr valign="top">
<td width="5%" align="right">6.</td>
<td> <a href="table.html#6">Number of "wage items" per employee
tabulated from the 1-percent sample LEED file, calendar years 1957-73</a></td></tr>
<tr valign="top">
<td width="5%" align="right">7.</td>
<td> <a href="table.html#7">Average wages for the first quarter
for private industry population covered by unemployment insurance,
calendar years 1951-75</a></td></tr>
<tr valign="top">
<td width="5%" align="right">8.</td>
<td> <a href="table.html#8">Estimated amounts of Average Indexed
Monthly Earnings for maximum wage earners retiring at age 62 in each year 1979-90, calculated
using three different wage series for indexing</a></td></tr>
<tr valign="top">
<td width="5%" align="right">9.</td>
<td> <a href="table.html#9">Summary of wage data tabulated by the
Internal Revenue Service from individual tax returns filed for tax years 1977-79</a></td></tr>
</table>
<hr />
<p><a href="../list.html">Notes published in the 1980s</a></p>
</body></html>
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