| asset substitution effect | Government is saving for you, thus you will save less for yourself.
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| average index of monthly earnings (AIME) | The monthly average of the 35 highest earnings years adjusted for wage inflation
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| bankrupt | The state of having insufficient assets to pay obligations.
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| bequest effect | People save more to give larger gifts to their descendants, thus increasing national savings.
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| externalities | Effects created by an unregulated market on people other than the buyer or seller
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| fully funded pension | A system that has an amount currently invested that is sufficient to pay every benefit dollar it is required to pay in the future.
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| induced retirement effect | People need to save more if they are going to retire earlier than they would have without Social Security.
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| maximum taxable earnings | The maximum of taxable earnings subject to the payroll tax.
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| means test | Determination of the amount of one's government benefit on the basis of income or wealth.
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| pay-as-you-go pension | A system where current workers' taxes are used to pay pensions to current retirees.
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| payroll taxes | Taxes owned on what workers earn from their work.
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| primary insurance amount (PIA) | The amount single retirees receive in a monthly check if they retire and their retirement age.
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| retirement age | The age at which retirees get full benefits.
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| Social Security Trust Fund | A fund established in 1982 to hold government debt which will be sold as necessary when tax revenues are less than benefits.
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2003 McGraw-Hill Higher Education