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"(xi) years of coverage as defined in section 215

2 (a) of the Social Security Act for an employee who

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has been awarded an annuity under section 2 of this Act shall be determined only on the basis of his wages. and self-employment income credited under the Social Security Act through the later of December 31, 1971, or December 31 of the year preceding the year in which his annuity began to accrue; and (xii) in determining increment months for the purpose of a delayed retirement increase, section 202 (w) (2) (B) (ii) of the Social Security Act shall be deemed to read as follows: "such

individual was not entitled to an old-age insurance benefit";"."

SEC. 2. Section 5 (1) (1) of the Railroad Retirement Act 15 of 1937 is amended

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(1) by striking out from clause (ii) "shall not be adopted after such death by other than a stepparent, grandparent, aunt, uncle, brother, or sister;";

(2) by striking out from such clause (ii) "age eighteen" and inserting in licu thereof "age twenty-two or before the close of the eighty-fourth month following the month in which his most recent entitlement to an

annuity under section 5 (c) of this Act terminated because he ceased to be under such a disability";

(3) by striking from the third sentence thereof

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"202 (d) (3) or (4)" and inserting in lieu thereof

“202 (d) (3), (4), or (9)”;

(4) by adding immediately after the seventh sen

tence thereof the following new sentence: "A child

5 whose entitlement to an annuity under section 5 (c) of this Act was terminated because he ceased to be disabled

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as provided in clause (ii) of this paragraph and who becomes again disabled as provided in such clause (ii),

may become reentitled to an annuity on the basis of such disability upon his application for such reentitlement."; and

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

"A child who attains age twenty-two at a time when he is a full-time student (as defined in subparagraph (A) of paragraph 7 of section 202 (d) of the Social

Security Act and without the application of subparagraph (B) of such paragraph) but has not (at such time) completed the requirements for, or received, a degree from a four-year college or university shall be deemed (for purposes of determining whether his entitlement to an annuity under this section has terminated under subsection (j) and for purposes of determining his initial entitlement to such an annuity) not to have

attained such age until the first day of the first month

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following the end of the quarter or semester in which he

is enrolled at such time (or, if the educational institution in which he is enrolled is not operated on a quarter

or semester system, until the first day of the first month following the completion of the course in which he is so

enrolled or until the first day of the third month begin

ning after such time, whichever first occurs)."

8 SEC. 3. Section 226 (e) of the Social Security Act is 9 amended

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(1) by inserting "or would be fully or currently insured if his service as an employee (as defined in the Railroad Retirement Act of 1937) after December 31,

1936, were included in the term ‘employment' as defined in this Act" after "(as such terms are defined in section 214 of this Act)" in 2 (A) thereof;

(2) by inserting "or an annuity under the Railroad Retirement Act of 1937" after "monthly insurance benefits under title II of this Act" in 2 (B) thereof;

(3) by inserting "or would be fully or currently insured if his service as an employee (as defined in

the Railroad Retirement Act of 1937) after Decem

ber 31, 1936, were included in the term 'employment'

as defined in this Act" after "fully or currently in

sured" in 2 (C) thereof; and

(4) by inserting "or an annuity under the Rail

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road Retirement Act of 1937" after "monthly insur

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ance benefits under title II of this Act” in 2 (D) thereof.

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SEC. 4. (a) The provisions of this Act, except the pro4 visions of section 1, shall be effective as of the date the cor5 responding provisions of Public Law 92-603 are effective. 6 The provisions of clauses (xi) and (xii), which are added 7 by section 1 of this Act, shall be effective as follows: clause 8 (xi) shall be effective with respect to calendar years after 9 1971 for annuities accruing after December 1972; and 10 clause (xii) shall be effective as of the date the delayed 11 retirement provision of Public Law 92-603 is effective. 12 (b) Any child (1) whose entitlement to an annuity 13 under section 5 (c) of the Railroad Retirement Act was ter14 minated by reason of his adoption prior to the enactment of 15 this Act, and (2) who, except for such adoption, would 16 be entitled to an annuity under such section for a month 17 after the month in which this Act is enacted, may, upon 18 filing application for an annuity under the Railroad Retire19 ment Act after the date of enactment of this Act, become 20 reentitled to such annuity; except that no child shall, by 21 reason of the enactment of this Act, become reentitled to 22 such annuity for any month prior to the effective date of 23 the relevant amendments made by this Act to section 5 (1) (1) (ii) of the Railroad Retirement Act.

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This is the report of the Railroad Retirement Board on S. 1886, which was introduced by Mr. Hathaway on May 23, 1973. For the reasons stated below, the Board favors the bill and hopes for its early enactment. The amendments proposed by the bill were discussed with representatives of railroad management (Association of American Railroads) and railroad labor (Congress of Railway Unions and Railway Labor Executives' Association) who are also in favor of the bill.

The enactment of the amendments proposed by section 1 of the bill would
simplify administration of the social security minimum guaranty provi-
sion contained in Section 3(e) of the Railroad Retirement Act. This
provision guarantees that the combined monthly retirement benefits
which an individual and a dependent deriving benefits from him will
receive under the Railroad Retirement Act and the Social Security Act
(based on the individual's earnings record) would be no less than 110
percent of the amount which would have been payable to that family
under the Social Security Act on the basis of the individual's combined
railroad and nonrailroad earnings if his railroad service after 1936
had been covered under the Social Security Act. Under the law prior
to the enactment of Public Law 92-460 on October 4, 1972, when computing
an annuity under the guaranty provision the Board was required to take
into account an employee's earnings in and after the year of his retire-
ment. This necessitated a continuous policing of an annuitant's post-
retirement wage record to determine whether he had received additional
nonrailroad earnings and, if he did, further necessitated recomputations
to determine whether the guaranty provision would, in light of the post-
retirement earnings, provide a higher benefit than the regular railroad

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