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(2) If, in the case of an individual whose annuity under section 2(a) (1) of this Act began to accrue prior to January 1, 1983, the annuity (before any reduction due to such indiridual's entitlement to a monthly insurance benefit under the Social Security Act and disregarding any amount provided by subsection (h) of this section) plus the supplemental annuity to which such individual is entitled for any month under this Act, together with the annuity, if any, of the spouse of such individual (before any reduction due to such spouse's entitle: ment to a wife's or husband's insurance benefit under the Social Security Act and disregarding any amount provided by section 4(e) of this Act), before any reductions under the provisions of section (f) of this Act, is less than the total amount which would have been payable to such individual and his spouse for such month, on the basis of the indiridual's compensation and years of service, under the provisions of the Railroad Retirement Act of 19.37 as in effect on December 31, 1974, disregarding, for purposes of the computations under such Railroad Retirement Act of 19.37, compensation for any month after December 31, 1974, in exce88 of one-twelfth of the maximum annual tarable "ways" (as defined in section 3121 of the Internal Rerenue C'ode of 1954) for the calendar year 1974, the annuity of such indiridual and the annuity of such spouse, if any, shall be increased, without regard to the provisions of subdivision (1) of this subsection, proportionately so as to equal such total amount. For the purpose of computing amounts under this subdivision, the Board shall have the authority to approximate the effect of the reductions prescribed by sections 3 (a) () and 3(a) (3) of the Railroad Retirement Act of 1937. For purposes of computing amounts payable under the Railroad Retirement Act of 19.37, any increases in the amounts determined under the first proriso of section 3(e) of such Act which would hare become effective after December 31, 1974, shall be disregarded.

(3) If for any month in Ichich an annuity accrues and is payable under this Act the amnuity to which an indiridual is entitled under this Act (or would hare been entitled except for a reduction pursuant to a joint and surriror election), together with the annuity, if any. of the spouse of such individual, is less than the total amount, or the additional amount, which would hare been payable to all persons for such month under the Social Security Act if such indiridual's service as an employee after December 31, 19.36, irere included in the term "employment" as defined in that Act, such annuity or annuities shall be increased proportionately to such total amount, or such additional amount: Provided, howerer, That if an annuity accrues to an indiridual or a spouse for a part of a month, the amount payable for such part of a month under this susbsection shall be one-thirtieth of the amount payable under this subdivision for an entire month, multiplied by the number of days in such part of a month. For purposes of this subdirision, (i) persons not entitled to an annuity under section of this Act shall not be included in the computation under this subdivision Crcept a spouse who could qualify for an annuity under section 2(C) of this Act if the individual from whom the spouses' annuity under this Act would derire had attained age 60 or 62, as the case may be. and such indiridual's children who meet the definition (18 such con. tuined in section. 216(e) of the Social Security Art; (ii) after an 160

annuity has been certified for payment and this subdirision irax inapplicable after allowing for any rating period under section 22.3(C) (2) of the Social Security Act, and afer haring considered the inclusion of all persons who were then eligible for inclusion in the computation under this subdivision, or irax then applicable but later became inapplicable, and recertification in such annuity under this subdirision shall not take into account persons not entitled to an annuity under section 2 of this Act errept a spouse who could qualify for an annuity under section 2(c) of this Act when she attains age 60 or 62. as the case may be, if the individual from whom the spouse's annuity vrould derire had attained age 60 or 62, as the case may be, and who was married to such indiridual at the time he applied for his annuity; and (in) in computing the amount to be paid under this subdirixion the only benefits under title II of the Social Security Act which shall be considered shall be those to irhich the persons included in the romputation are entitled.

(g) Those portions of the annuity of an indiridual as are computed under subsections (6) and (d) of this section shall, if such individual's annuity under section 2(a) (1) of this Act began to accrue on or before the date on which the applicable increase under this subsection becomes effectire, be increased by 32.5 per centum of the percentage increase, if any (rounded to the nearest one-tenth of 1 percent), obtained by comparing (A) the unad justed Consumer Price Index for the calendar quarter ending Jarch 31, 1977, with such inder for the calendar quarter ending March 31, 1976. (B) the unadjusted ('onsumer Price Inder for the calendar quarter ending March 31, 1978, with the higher of (i) such inder for the calendar quarter ending March 31, 1977, or (ii) such inder for the calendar quarter ending March 31, 1976, ((') the unad justed Consumer Price Index for the calendar quarter ending March 31, 1979, with the highest of (i) such index for the calendar quarter ending March 31, 1978, (ii) such inder for the calendar quarter ending Varch 31, 1977, or (iii) such index for the calendar quarter ending March 31, 1976, and (D) the unad justed ('onsumer Price Inder for the calendar quarter ending March 31, 1980, irith the highest of (i) such inder for the calendar quarter ending March 31, 1979, (ii) such inder for the calendar quarter ending Varch 31, 1978, (i) such index for the calendar quarter ending March 31, 1977, or (ir) such inder for the calendar quarter ending March 31, 1976. The unad justed ('onsumer Price Inder for any calendar quarter shall be the arithmetical mean of such index for the three months in such quarter. The increases prorided under clauses (A), (B). (C), and (.) of this subsection shall be effectire on June 1, 1977, June 1, 1978, June 1, 1979, and June 1, 1980, respectively.

(h)(1) The amount of the annuity provided under subsections (a) through (d) of this section of an indiridual rho (A) will hare (i) rendered serrice as an employee to an employer, or as an employee representative, during the cale ndar year 1974, or (ii) had a current connection with the railrond industry on December 31, 1974, or at the time his annuity under section (n)(1) of this Act began to accrue, or (iii) completed tuenty-five years of service prior to January 1, 1975, and (B) irill have (i) completed ten years of serrice prior to January 1,

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1975, and (ii) been permanently insured under the Social Security Act on December 31, 1974, shall be increased by an amount equal to the amount by which ((') the sum of (i) the primary insuranu w amount to which such individual would hare been entitled, upon the attainment of age 65 (or, if later, for January 1975), under the provisions of the Social Security Act as in effect on December 31, 1974, if his service as an employce after December 31, 1936, and prior to January 1, 1975, were included in the term "employment" as defined in that Act and if he had no wages or self-employment income under that Act other than wages derived from such service as an employee, and (ii) the primary insurance amount to which such indivdual would have been entitled, upon the attainment of age 65 (or, if later, for January 1975), under the prorisions of the Social Security Act as in effect on December 31, 1974, on the basis of his wages and self-employment income derired from employment and self-employment under that Act prior to January 1, 1975, erceeds (1) the primary insurance amount to which such individual would have been entitled, upon the attainment of age 65 (or, if later, for January 1975), under the provisions of the Social Security Act as in effect on December 31, 1974, on the basis of his wages and self-employment income derived from employment and self-employment under that Act prior to January 1, 1975, and on the basis of compensation derived from serrice as an employee after December 31, 1936, and prior to January 1, 1975, if such serrice as an employee had been included in the term "employment" as defined in that Act.

(9) The amount of the annuity provided under subsections (a) through (d) of this section to an individual who (4) will not hare met the conditions set forth in subclause (i), (ii), or (ii) of clause (A) of subdivision (1) of this subsection, but (B) will have (i) completed ten years of service prior to January 1 1975, and (ii) been permanently insured under the Social Security Act as of December 31 of the calendar year prior to 1975 in which he last rendered serrice as an employee to an employer, or as an employee representative, shall be increased by an amount equal to the amount by which (C') the sum of (i) the primary insurance amount to which such indiridual would have been entitled, upon the attainment of age 65 (or, if later, for January 1975), under the provisions of the Social Security Act as in effect on December 31, 1974. if his serrice as an employee after December 31. 19.36, and prior to January 1, 1975, were included in the term "employment" as defined in that Act and if he had no wages or self-employment income under that Act other than wages derived from such service as an employee, and (ii) the primary insurance amount to which such indiridwal would hare been entitled, upon the attainment of age 65 (or, if later, for January 1975), under the provisions of the Social Security Act as in effect on December 31, 1974, on the basis of his wages and self-employment income derired from employment and selfemployment under that Act as of December 31 of the calendar year prior to 1975 in which he last performed serrice as an employee under this Act, exceeds (D) the primary insurance amount to which such indiridual would hare been entitled, upon the attainment of age 65 (or, if later, for January 1975), under the provisions of the Social Security Art as in effect on December 31, 1974, on the basis of his wagex

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and self-employment income derived from employment and selfemployment under that Act as of December 31 of the calendar year prior to 1975 in arhich he last performed serrice as an employee under this Act and on the basis of compensation derired from serrice as an employee after December 31, 19.36, and prior to January 1, 1975, if such serrice as an employee had been included in the term "employ. mentas defined in that Act.

(3) The amount of the annuity provided under subsertions (a) through (d) of this section of an individual who (1) arill hare (i) rendered serrice (ls an employee to an employer, or as an employer representative, during the calendar year 1974, or (ii) had a current connection with the railroad industry on Derember 31, 197.4, or at the time his annuity under section 2(a)(1) of this Art began to accrue, or (iii) completed twenty-five years of serrice prior to January 1, 1975, and (B) will hare completed ten years of serrice prior to January 1, 1975, and is the wife, husband, widour, or widourer of a person iho will have been permanently insured under the Social Security Art of December 31, 1974, shall be increased by an amount equal to the smaller of (C) the wife's, husband's, widow's, or widourer's insurance benefit to which such indiridual would have been entitled, upon attaining age 65 (or, if later, for January 1975), under the prorisions of the Social Security Act as in effect on December 31, 1974, on the basis of such person's icages and self-employment income derired from cmployment and self-employment under that Act prior to January 1, 1975, or (D) the primary insurance amount to which such individual would have been entitled upon attaining age 65 (or, if later, for January 1975), under the prorisions of the Social Serurity Act as in effect on December 31, 1974, on the basis of such indiridual's orages and self-employment income derired from employment and self-employment under that Irt prior to January 1, 1975, and on the basis of compensation derired from serrice as an employee after December 31, 1936. and prior to January 1, 1975, if such service as an employee had been included in the term "employment" as defined in that Act.

(4) The amount of the annuity provided under subsections (a) through (d) of this section of an individual who (A) will not hare met the conditions set forth in subclause (i), (ii), or (iii) of clause (A) of subdivision (3) of this subsection, but (B) will have completed ten years of serrice prior to January 1, 1975, and is the wife, husband, voidow, or widower of a person who zrill hare been permanently insured under the Social Security Act as of December 31 of the calendar year prior to 1975 in which such individual last rendered serrire as an employee to an employer, or as an employee representatire, shall be increased by an amonint equal to the smaller of (C) the rife's, hus. band's, widou's, or widover's insurance benefit to which such indiridwal would hare been entitled, upon attaining age 65 (or, if later, for January 1975), under the provisions of the Social Security Act as in effect on December 31, 1974, on the basis of such person's wrages and self-employment income derired from employment and self-employment under that Act as of December 31 of the calendar year prior to 1975 in which such individual last performed service as an employee under this Act or (D) the primary insurance amount to which such iniliridual vrould have been entitled upon attaining age 65 (or, if later.

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for January 1975), under the provisions of the Social Security Act as in effect on December 31, 1971, on the basis of such individual's wages and self-employment income derived from employment and self-employment under that Act as of December 31 of the calendar year prior to 1975 in which such individual last performed service as an employee under this Act and on the basis of compensation derived from serrice (18 an employee after December 31, 1936, and prior to January 1, 1975, if such service as an employee had been included in the term "employment" as defined in that Act.

(6) The amount computed under subdivision (1), (2), (3), or (4) of this subsection shall be increased by the same percentage, or percentages, as benefits under the Social Security Act are increased, or irould hare been increased had there been no general benefit incerases under the Social Security Act, pursuant to the automatic cost-of-living prorisions of section 215(i) of that Act, during the period from January 1, 1975, to the date on which the individual's annuity under sertion 2(a)(1) of this Act began to accrue.

(i)(1) The "years of serrice" of an individual shall include all his serrice subsequent to December 31, 1936.

(2) T'he "years of service" of an individual shall also include his roluntary or involuntary military service, within or without the l'nited States, during any war service period : Provided, howerer, That such military serrire shall be included only if, prior to the beginning of his military service and in the same calendar year in which such military serrice began, or in the next preceding calendar year, the individual rendered serrice for compensation to an employer or to a person service to which is otherwise creditable under this Act, or lost time as an employee for irhich he receired remuneration, or was serving as (in employee representative: Provided further, T'hat such military xerrice shall be included only subject to and in accordance with the prorisions of subdirisions (1) and (3) of this subsection in the same manner as though military service were serrice rendered as an employee: And provided further. That such military serrice rendered after December 1956 shall not be included with respect to any month if (A) any benefits are payable for that month under the Social Se. curity Act on the basis of such indiridual's wages and self-employment income, (B) such military serrice was included in the computation of such benefits, and (C) the inclusion of such military service in the computation of such benefits resulted (for that month) in benefita not otherwise payable or in an increase in the benefits otherwise payable : And prorided further, That an individual who entered military serrice prior to a war serrice period shall not be regarded as haring been in military serrice in a war service period with respect to any part of the period for which he entered such military service.

(3) The "years of service" of an individual who was an employee on August 29, 1935, shall, if the total number of his "years of service" as determined under subilirisions (1) and (2) is less than thirty, also include his service prior to January 1, 19.37, but not so as to make his total years of service erceed thirty : Provided, however, that with respect to any such individual who rendered service to any employer subsequent to December 31, 19.36, and who on August 29, 19.3.5, was not an employee of an employer conducting the principal part of its busi

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