Social Security Glossary

AIME: Stands for Average Indexed Monthly Earnings; it’s used to calculate your personal Social Security benefit.

COLA: Stands for Cost-Of-Living Adjustment; it’s an increase in Social Security benefits to adjust for inflation.

DRC: Stands for Delayed Retirement Credits; Social Security benefits are increased by a certain percentage when a worker delays filing for benefits beyond full retirement age.

FRA: Stands for Full Retirement Age and is also known as Normal Retirement Age (NRA); this is the age when you are eligible for 100% of your Social Security benefit.

FICA: Stands for the Federal Insurance Contributions Act; it’s the tax that’s withheld from your salary or self-employment income that funds both Social Security and Medicare.

PIA: Stands for Primary Insurance Amount; it’s the monthly amount you receive at your full retirement age.

QC: Stands for Quarter of Coverage (QC) and is also known as a Social Security Credit; it is the basic unit for determining if you’re insured under the Social Security Program.

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