What are indexed pre-disability earnings?
Indexed pre-disability earnings are your monthly rate of earnings adjusted by the rate of increase in the CPI-W. This includes commissions, shift differential pay, bonuses, fees and income for services performed. Your monthly rate of earnings will be determined by adding the following amounts, as applicable, as reported on your federal income tax return or applicable schedule: • Your ordinary income from trade or business activities • Your guaranteed payments, if you are a partner • Your share of net profit from business • Your compensation (as an officer), salary or wages Pre-disability earnings also include: • Contributions you make through a salary reduction agreement with your employer to an IRC Section 401(k), 403(b), 408(k), 408(p), or 457 deferred compensation arrangement, or an executive nonqualified deferred compensation arrangement • Amounts contributed to excludable fringe benefits according to salary reduction agreements under an IRC Section 125 plan Pre-disability earnings
