6

1 tion 3 (e) of this Act, without regard to the words 'plus 10 2 per centum of such total amount' contained therein; and (ii) 3 the amount (before any reduction on account of age) which 4 would have been payable to such individual under the law 5 as in effect prior to July 1, 1973, if his or her annuity had 6 been computed under such first proviso of section 3 (e) of 7 this Act, without regard to the words 'plus 10 per centum 8 of such total amount' contained therein (assuming for this 9 purpose that the eligibility conditions and the proportions 10 of the primary insurance amounts payable under the then 11 current Social Security Act had been in effect prior to July 1, 12 1973) Provided, however, That in computing such amount, 13 only the social security benefits which would have been 14 payable to the individual whose annuity is being computed 15 under this Act shall be taken into account: Provided further, 16 That if an annuity accrues to an individual for a part of a 17 month the added amount payable for such part of a month 18 under this section shall be one-thirtieth of the added amount 19 payable under this section for an entire month, multiplied 20 by the number of days in such part of a month. If wages 21 or compensation prior to 1951 are used in making any com22 putation required by this paragraph, the Railroad Retire23 ment Board shall have the authority to approximate the 24 primary insurance amount to be utilized in making such

7

11

1 paragraph, any benefit to which an individual may be en2 titled under title II of the Social Security Act shall be dis3 regarded. For purposes of this paragraph, individuals entitled 4 to an annuity under section 2 (a) (2) of this Act shall be 5 deemed to be age 65, and individuals entitled to an annuity 6 under section 2 (a) (3) of this Act who have not attained 7 age 62 shall be deemed to be age 62. Individuals entitled to 8 annuities under section 2 (a) (4) or 2 (a) (5) of this Act 9 for whom no disability freeze has been granted shall be 10 treated in the same manner for purposes of this paragraph as individuals entitled to annuities under section 2 (a) (4) or 12 2(a) (5) for whom a disability freeze has been granted. 13 In the case of an individual who is entitled to an annuity 14 under this Act but whose annuity is based on insufficient 15 quarters of coverage to have a benefit computed, either 16 actually or potentially, under the first proviso of section 17 3 (e) of this Act, the average monthly wage to be used in determining the amount to be added to the annuity of such individual shall be equal to the average monthly com20 pensation or the average monthly earnings, whichever is 21 applicable, used to enter the table in section 3 (a) (2) of such Act for purposes of computing other portions of such individual's annuity."

18

19

22

23

24

(b) Section 2 (e) of the Railroad Retirement Act of

25 1937 is amended

1

2

3

4

5

6

7

8

8

(1) by striking out "section 3 (a) (3), (4), or (5)

of this Act" and inserting in lieu thereof "section 3 (a)

(3), (4), (5), or (6) of this Act";

(2) by striking out the second sentence of the last

paragraph; and

(3) by adding at the end thereof the following new paragraph:

"The spouse's annuity computed under the other provi

9 sions of this section shall (before any reduction on account 10 of age) be increased in an amount determined by the method 11 of computing increases set forth in subsection (a) (6) of sec12 tion 3. The preceding sentence and the other provisions of 13 this subsection shall not operate to increase the annuity of a spouse (before any reduction on account of age) to an 15 amount in excess of the maximum amount of a spouse's an

14

16

17

nuity as provided in the first sentence of this subsection. This

paragraph shall be disregarded in the application of the pre18 ceding three paragraphs."

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20

(c) Section 2 (i) of the Railroad Retirement Act of 1937 is amended by striking out "the last paragraph plus 21 the two preceding paragraphs" and inserting in lieu thereof 22❝the last paragraph plus the three preceding paragraphs”.

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24

(d) Section 5 of the Railroad Retirement Act of 1937 is amended by inserting at the end thereof the following

1

9

"(q) A survivor's annuity computed under the preced

2 ing provisions of this section shall be increased in an amount 3 determined by the method of computing increases set forth 4 in subsection (a) (6) of section 3: Provided, however, That

5 in computing such an amount for an individual entitled to

6

an annuity under subsection 5 (a) (2), the 90.75 per centum 7 figure appearing in the third paragraph of section 3 (e) of 8 this Act shall be deemed to be 82.5 per centum."

9 SEC. 105. If title II of the Social Security Act is 10 amended to provide an increase in benefits payable there11 under at any time during the period July 1, 1973, through 12 December 31, 1974, the pension of each individual under 13 section 6 of the Railroad Retirement Act of 1937 and the 14 annuity of each individual under the Railroad Retirement 15 Act of 1935 shall be increased in an amount determined by 16 the method of computing increases set forth in subsection (a) 17 of section 104 of this Act, deeming for this purpose the aver18 age monthly earnings (in the case of a pension) or the average monthly compensation (in the case of an annuity under 20 the Railroad Retirement Act of 1935) which would be used 21 to compute the basic amount if the individual were to die to

19

22 be the average monthly wage.

22223

SEC. 106. All recertifications required by reason of the

24 amendments made by sections 104 and 105 of this Act shall

10

1 be made by the Railroad Retirement Board without applica

2 tion therefor.

3

SEC. 107. Representatives of employees and representa4 tives of carriers shall, no later than July 1, 1974, report to 5 the Senate Committee on Labor and Public Welfare and the 6 House of Representatives Committee on Interstate and For7 eign Commerce their joint recommendations for restructuring 8 the railroad retirement system based upon their negotiations 9 and taking into account the report and specific recommenda10 tions of the Commission on Railroad Retirement.

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SEC. 108. (a) The amendments made by section 101

12 of this Act shall become effective on July 1, 1974: Provided, 13 however, That those amendments shall not apply to individ14 uals whose annuities began to accrue prior to that date.

15

(b) The amendments made by section 102 of this Act 16 shall become effective on October 1, 1973, and shall apply 17 only with respect to compensation paid for services rendered

18

on or after that date: Provided, however, That such amend19 ments shall not be applicable to any dock company or

20

common carrier railroad with respect to those of its em21 ployees covered as of October 1, 1973, by a private sup22 plemental pension plan established through collective bar23 gaining, where a moratorium in an agreement made on or 24 before March 8, 1973, is applicable to changes in rates of pay