Question

Hi this is questions about Employee Benefit and Group Insurance please answer them as soon as possible I need to know the way that you follow to get the answers of the equation question . please explain the way that you get the correct number

20) If an individual who first becomes eligible for old-age insurance benefits or disability insurance benefits in 2016 and with an average indexed monthly earning $6000. How much is his initial monthly primary insurance amount?( in 2016, the first bend point is $856, and the second bend point is $5157)

A) $5400

B) 2273.17

C) $2225.6

D) None of the above

24) Tom was born in year 1944, whose full age is 66. He decides to retire at age 62.5 (i.e. 6 months after the 62^nd s birthday ), and his primary insurance Amount (PIA) is $3000 permonth How much is his initial monthly social security retirement benefit for retiring at age 62.5?

A) $2300

B)$2325

C) $2475

D) None of the above is correct

25) Based on tables please answer this question. Jack was born in year 1974. If jack decide to retire at age 71, and his primary insurance amount ( PIA) is $3500 per month how much is this monthly SS retirement benefit for retiring at age 71?

A) $4762

b) $4409

c) $4340

d) $4620

28) which of the following statement about social security disability insurance is Incorrect?

A) Disability must last under social security is based on “any occupation disability “ definition

b) The disability must last or be expected to last for at least one year or to result in death

c) social security disability insurance pays for both total disability and partial disability

d) The minimum credits needed to qualify for social security disability insurance benefit depends in the age that the individual becomes disabled

29) Worlers’ compensation medical benefits do not have deductible or coinsurance and are unlimited regarding the total benefits amount and the benefit period   

A) True

b) false

Answer 1

20)

Social Security Administration has a formula for calculating Primary Insurance amount which is based on Average Indexed Monthly earning and bend points. The Average Indexed Monthly Earning is divided by bend points into 3 sections namely: <$856, $856-$5157, >$5157

Factors already decided by law (90% for first section, 32% for second section, 15% for third section) are applied to these sections.

According to the formula, Primary Insurance Amount = $856 * 90% + ($5157-$856) * 32% + ($6000-$5157) *15%

= $856 * 90% + $4301 * 32% + $843 *15%

= $2273.17