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Daily Archives: February 21, 2015

CRS – How Social Security Benefits Are Computed: In Brief

How Social Security Benefits Are Computed: In Brief. Noah P. Meyerson, Analyst in Income Security. February 4, 2015.
“With about $900 billion in benefit outlays projected to be made in 2015, Social Security is the largest program in the federal budget. It provides monthly cash benefits to retired and disabled workers and their family members as well as to the family members of deceased workers. Currently, there are about 59 million beneficiaries. Under current law, Social Security’s revenues are projected to be insufficient to pay full scheduled benefits after 2033. Monthly benefit amounts are determined by federal law. Social Security is an issue of ongoing interest both because of its role in supporting a large portion of the population and because of its long-term financial imbalance, and policy makers have considered numerous proposals to change its benefit computation rules. The Social Security benefits that are paid to worker beneficiaries and to workers’ dependents and survivors are based on workers’ past earnings. The computation process involves three main steps:
  • First, a summarized measure of lifetime earnings is computed. That measure is called the average indexed monthly earnings (AIME).
  • Second, a benefit formula is applied to the AIME to compute the primary insurance amount (PIA). The benefit formula is progressive. As a result, workers with higher AIMEs receive higher Social Security benefits, but the benefits received by people with lower earnings replace a larger share of past earnings.
  • Third, an adjustment may be made based on the age at which a beneficiary chooses to begin receiving payments. For retired workers who claim benefits at the full retirement age (FRA), which is currently 66, and for disabled workers, the monthly benefit equals the PIA. Retired workers who claim earlier receive lower monthly benefits, and those who claim later receive higher benefits.”

Monetary spillovers? Boom and bust? Currency wars? The international monetary system strikes back

Monetary spillovers? Boom and bust? Currency wars? The international monetary system strikes back speech by Fabrizio Saccomanni, BIS Special Governors’ Meeting. Manila, 6 February 2015. “In recent years, the global financial system has witnessed several episodes of instability due to the external repercussions of monetary policy measures by major countries, the development of financial cycles characterised… Continue Reading

The Measles: Background and Federal Role in Vaccine Policy

CRS Report – The Measles: Background and Federal Role in Vaccine Policy. Matthew B. Barry, Section Research Manager; Jared P. Cole, Legislative Attorney. February 9, 2015. “The earliest accounts of measles date back over 1,000 years. This report presents basic  information about this infectious disease, its history in the United States, available treatments to prevent… Continue Reading

A Tutorial on Using Dynamic Network DEA to Benchmark Organizational Performance

Avkiran, Necmi, A Tutorial on Using Dynamic Network DEA to Benchmark Organizational Performance (July 4, 2014). Available for download at SSRN: http://ssrn.com/abstract=2567557 “In investigating organizational performance or efficiency, two perennial problems confront us, namely, loss of information in aggregated data, and determining the influence of lower level variables when they are not explicitly identified in… Continue Reading

Most Americans confused about Net Neutrality – seek more information

Follow up to previous posting – Role of the Networked Public Sphere in the U.S. Net Neutrality Policy Debate, an article from The Register that contributes more resources and perspective to the debate: “With commissioners at US watchdog the FCC due to vote on proposed net neutrality rules next week, a poll of Americans has… Continue Reading