Computation of Primary Insurance Amount Sec. 215. For the purposes of this title (a) Subject to the conditions specified in subsections (b), (c), and (d) of this section, the primary insurance amount of an insured individual shall be whichever of the following is the largest : 186 (1) The amount in column IV on the line on which in column III of the following table appears his average monthly wage (as determined under subsection (b)); (2) The amount in column IV on the line on which in column II of the following table appears his primary insurance amount (as determined under subsection (c)); (3) The amount in column IV on the line on which in column I of the following table appears his primary insurance benefit (as determined under subsection (d)); or (4) In the case of an individual who was entitled to a disability insurance benefit for the month before the month in which he became entitled to old-age insurance benefits or died, the amount in column IV which is equal to his disability insurance benefit.187 TABLE FOR DETERMINING PRIMARY INSURANCE AMOUNT AND MAXIMUM FAMILY BENEFITS 186 See sec. 205 (c) of P. L. 86-778, p. 226 for method of computation where individual died prior to 1940 and had not less than six quarters of coverage. 187 See sec. 101 (h) of P. L. 85-840 on p. 216 for primary insurance amount for certain disability insurance beneficiaries. See sec 303 (g) of P. L. 86-778, on p. 230 for conditions under which sec. 215, as in effect prior to the 1960 Amendments, continues to apply. Average Monthly Wage (b) (1) For the purposes of column III of the table appearing in subsection (a) of this section, an individual's “average monthly wage" shall be the quotient obtained by dividing— (A) the total of his wages paid in and self-employment income credited to his "benefit computation years" (determined under paragraph (2)), by (B) the number of months in such years. (2) (A) The number of an individual's "benefit computation years" shall be equal to the number of elapsed years (determined under paragraph (3) of this subsection), reduced by five; except that the number of an individual's benefit computation years shall in no case be less than two. (B) An individual's "benefit computation years" shall be those computation base years, equal in number to the number determined under subparagraph (A), for which the total of his wages and selfemployment income is the largest. (C) For the purposes of subparagraph (B), "computaion base years" include only calendar years occurring (i) After December 31, 1950, and (ii) prior to the year in which the individual became entitled to old-age insurance benefits or died, whichever first occurred; except that the year in which the individual became entitled to oldage insurance benefits or died, as the case may be, shall be included as a computation base year if the Secretary determines, on the basis of evidence available to him at the time of the computation of the primary insurance amount for such individual, that the inclusion of such year would result in a higher primary insurance amount. Any calendar year all of which is included in a period of disability shall not be included as a computation base year. (3) For the purposes of paragraph (2), an individual's' "elapsed years" shall be the number of calendar years (A) after (i) December 31, 1950, or (ii) if later, December 31 of the years in which he attained the age of twenty-one, and (B) prior to (i) the year in which he died, or (ii) if earlier, the first year after December 31, 1960, in which he both was fully insured and had attained retirement age. For the purposes of the preceding sentence, any calendar year any part of which was included in a period of disability shall not be included in such number of calendar years. (4) The provisions of this subsection shall be applicable only in the case of an individual with respect to whom not less than six of the quarters elapsing after 1950 are quarters of coverage, and— (A) who becomes entitled to benefits after December 1960 under section 202 (a) or section 223; or (B) who dies after December 1960 without being entitled to benefits under section 202 (a) or section 223; or (C) who files an application for a recomputation under subsection (f) (2) (A) after December 1960 and is (or would, but for the provisions of subsection (f) (6), be) entitled to have his primary insurance amount recomputed under subsection (f) (2) (A); or (D) who dies after December 1960 and whose survivors are (or would, but for the provisions of subsection (f) (6), be) entitled to a recomputation of his primary insurance amount under subsection (f) (4). (5) In the case of any individual (A) to whom the provisions of this subsection are not made applicable by paragraph (4), but (B) (i) prior to 1961, met the requirements of this paragraph (including subparagraph (E) thereof) as in effect prior to the enactment of the Social Security Amendments of 1960, or (ii) after 1960, meets the conditions of subparagraph (E) of this paragraph as in effect prior to such enactment, then the provisions of this subsection as in effect prior to such enactment shall apply to such individual for the purposes of column III of the table appearing in subsection (a) of this section.188 Primary Insurance Amount Under 1954 Act (c) (1) For the purposes of column II of the table appearing in subsection (a) of this section, an individual's primary insurance amount shall be computed as provided in, and subject to the limitations specified in, (A) this section as in effect prior to the enactment of the Social Security Amendments of 1958, and (B) the applicable provisions of the Social Security Amendments of 1954. (2) The provisions of this subsection shall be applicable only in the case of an individual- (A) who became entitled to benefits under section 202 (a) or section 223 or died prior to January 1959, and (B) to whom the provisions of neither paragraph (4) nor paragraph (5) of subsection (b) are applicable. 189 Primary Insurance Benefit Under 1939 Act (d) (1) For the purposes of column I of the table appearing in subsection (a) of this section, an individual's primary insurance benefit shall be computed as provided in this title as in effect prior to the enactment of the Social Security Act Amendments of 1950,190 except that (A) In the computation of such benefit, such individual's average monthly wage shall (in lieu of being determined under section 209 (f) of this title as in effect prior to the enactment of such amendments) be determined as provided in subsection (b) of this section (but without regard to paragraphs (4) and (5) thereof), except that for the purposes of paragraphs (2) (C) (i) and (3) (A) (i) of subsection (b), December 31, 1936, shall be used instead of December 31, 1950.191 188 P. L. 86-778, sec. 303 (a) amended sec. 215 (b) in its entirety, applicable as indicated therein. For sec. 215 (b) as it read prior to this amendment, see p. 299. See also secs. 303 (g) and 303 (j) of P. L. 86-778, pp. 230 and 232. 189 P. L. 86-778, sec. 303 (b) amended subpar. (B) by inserting the words "neither paragraph (4) nor," before "paragraph (5)," and by deleting "not' which had appeared before the word "applicable," See footnote 188 for effective date. See also sec. 303 (g) of P. L. 86-778, p. 230. 190 This reference is to subsecs. 209 (e) and (f) as in effect prior to the Social Security Act Amendments of 1950. See p. 240. 191 P. L. 86-778, sec. 303 (c) (1), amended subpar. (A) in its entirety, see footnote 188, for effective date. For subpar. (A) as it read prior to this amendment see p. 300. (B) For purposes of such computation, the date he became entitled to old-age insurance benefits shall be deemed to be the date he became entitled to primary insurance benefits. (C) The 1 per centum addition provided for in section 209 (e) (2) of this Act as in effect prior to the enactment of the Social Security Act Amendments of 1950 shall be applicable only with respect to calendar years prior to 1951, except that any wages paid in any year prior to such year all 192 of which was included in a period of disability shall not be counted.193 (D) The provisions of subsection (e) shall be applicable to such computation. (2) The provisions of this subsection shall be applicable only in the case of an individual (A) with respect to whom at least one of the quarters elapsing prior to 1951 is a quarter of coverage; (B) who meets the requirements of any of the subparagraphs of paragraph (4) 194 of subsection (b) of this section; and (C) who attained age 22 after 1950 and with respect to whom less than six of the quarters elapsing after 1950 are quarters of coverage, or who attained such age before 1951. (3) The provisions of this subsection as in effect prior to the enactment of the Social Security Amendments of 1960 shall be applicable in the case of an individual who meets the requirements of subsection (b) (5) (as in effect after such enactment) but without regard to whether such individual has six quarters of coverage after 1950.195 Certain Wages and Self-Employment Income Not to be Counted (e) For the purposes of subsections (b) and (d)— (1) in computing an individual's average monthly wage there shall not be counted the excess over $3,600 in the case of any calendar year after 1950 and before 1955, the excess over $4,200 in the case of any calendar year after 1954 and before 1959, and the excess over $4,800 in the case of any calendar year after 1958, of (A) the wages paid to him in such year, plus (B) the selfemployment income credited to such year (as determined under section 212); (2) if an individual's average monthly wage computed under subsection (b) or for the purposes of subsection (d) is not a multiple of $1, it shall be reduced to the next lower multiple of $1; and (3) if an individual has self-employment income in a taxable year which begins prior to the calendar year in which he becomes entitled to old-age insurance benefits and ends after the last day of the month preceding the month in which he becomes so entitled, his self-employment income in such taxable year shall not 182 P. L. 86-778, sec. 303 (c) (2), substituted "all" in lieu of "any part," effective as indicated in footnote 188. See also sec. 303 (g) of P. L. 86 -778, p. 230. 193 P. L. 86-778, sec. 303 (c) (2), effective as indicated in footnote 188, deleted the following sentence from the end of subpar. (C): "Notwithstanding the perceding sentence, the wages paid in the year in which such period of disability began shall be counted if the counting of such wages would result in a higher primary insurance amount." See also sec 303 (g) of P. L. 86-778, p. 230. 194 P. L. 86-778, sec. 303 (c) (3) changed the paragraph reference from (5) to (4). 185 P. L. 86-778, sec. 303 (c) (4) added sec. 215 (d) (3), effective as indicated. See also sec. 303 (g) of P. L. 86-778 on p. 230. For sec. 215 (d) as it read prior to the 1958 Amendments, see p. 279. |