This method is a specialization of the wage-indexed formula method, and so applies if the worker is eligible in 1979 or later. In addition, it only applies in a disability case where entitlement was in June 1980 or later, or in an old-age case where there was a prior entitlement to a disability benefit, and that prior entitlement was in June 1980 or later and lasted to age 61. There must also be at least one childcare year.
The first page shows the indexation of earnings in a manner identical to that for the wage-indexed formula method.
The second page shows the derivation of the PIA and MFB from the indexed earnings. The results are similar or identical to the results for the wage-indexed method. The only difference is that there may be childcare dropout years which are in addition to the normal number of dropout years.
For more information on the childcare dropout year method, see the OASDI Digest.