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ness in the United States, no greater proportion of his service rendered prior to January 1, 1937, shall be included in his "years of service" than the proportion which his total compensation (without regard to any limitation on the amount of compensation otherwise provided in this Act) for service subsequent to December 31, 1936, rendered anywhere to an employer conducting the principal part of its business in the United States or rendered in the United states to any other employer bears to his total compensation (without regard to any limitation on the amount of compensation otherwise provided in this Act) for service rendered anywhere to an employer subsequent to December 31, 1936. Where the "years of service" include only part of the service prior to January 1, 1937, the part included shall be taken in reverse order beginning with the last calendar month of such service.

(3) The average monthly compensation" shall be the average compensation paid to an employee with respect to calendar months included in his "years of service", except (1) that with respect to service prior to January 1, 1937, the monthly compensation shall be the average compensation paid to an employee with respect to calendar months included in his years of service in the years 1924-1931, and (2) the amount of compensation paid or attributable as paid to him with respect to each month of service before September 1941 as a station employee whose duties consisted of or included the carrying of passengers' hand baggage and otherwise assisting passengers at passenger stations and whose remuneration for service to the employer uas, in whole or in substantial part, in the form of tips, shall be the monthly average of the compensation paid to him as a station employee in his months of service in the period September 1940 through August 1941: Provided, however, That where service in the period 1924 through 1931 in the one case, or in the period September 1940 through August 1941 in the other case, is, in the judgment of the Board, insufficient to constitute a fair and equitable basis for determining the amount of compensation paid or attributable as paid to him in each month of service before 1937, or September 1941, respectively, the Board shall determine the amount of such compensation for each such month in such manner as in its judgment shall be fair and equitable. In computing the monthly compensation, no part of any month's com pensution in orce88 of $300 for any month before July 1, 1954, or in erce88 of $350 for any month after June 30, 195), and before June 1, 1959, or in excess of $400 for any month after May 31, 1959, and before Vorember 1, 196.3, or in excc88 of $450 for any month after October 31, 196.3, and before October 1, 1965, or in excess of (i) $450, or (ii) an amount equal to one-twelfth of the current marimum annual taxable rages" as defined in section 3121 of the Internal Rerenue Code of 1954, whichever is greater, for any month after September 30, 1965. shall be recognized. If the employee earned compensation in service cfter June 30, 1937, and after the last day of the calendar year in which he attained age sixty-fire, such compensation and serrice shall be disregarded in computing the average monthly compensation if the result of taking such compensation into account in such computation would be to diminish his annuity. If the ange monthly compensation" computed under this subsectis

multiple of $1, it shall be rounded to the next lorer me

There an employee claims 165

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credit for months of service rendered within two years prior to his retirement from the service of an employer, with respect to which the employer's return pursuant to section 9 of this Act has not been entered on the records of the Board before the employee's annuity could otherwise be certified for payment, the Board may, in its discretion (subject to subsequent adjustment at the request of the employee) include such months in the computation of the annuity without further verification and may consider the compensation for such months to be the average of the compensation for months in the last period for which the employer has filed a return of the compensation of such employee and such return has been entered on the records of the Board.

(k) The annuity of an individual who shall have been an employee representative shall be determined in the same manner and with the same effect as if the employee organization by which he shall have been employed were an employer.

(2) In cases where an annuity awarded under paragraph (ii) of section 2(a) (1) or under section 2(c)(2) of this Act is increased either by a change in the law or by a recomputation, the reduction for the increase in the annuity shall be determined separately and the period with respect to which the reduction applies shall be determined as if such increase were a separate annuity payable for and after the first month for which such increase is effective.

(m) The annuity of any indiridual under subsection (a) of this section for any month shall be reduced, but not below zero, by the amount of any monthly benefit payable to that individual for that month under title II of the Social Security Act.

COMPENSATION OF SPOI'SE AND SURVIVOR ANNUITIES Ser. 4. (a) (1) T'he annuity of a spouse of an individual under section 2(c) of this Act shall be in imi amount equal to the amount (before any reduction on account of age and before any deluctions on account of work) of the wife's insurance benefit or the husband's insurance benefit to which such spouse would hare been entitled under the Social Security Act if such iniiridual's service as an employee after December 31, 19.36, had been included in the term "employment" as defined in that Act.

(?) For purposes of this subsection, *pouses entitled to an annuity under clause (B) of paragraph (ii) of section 2(C) (1) of this Act xhall be deemed to have attained age 65.

(b) The amount of annuity of a spouse of an individual prorided under subsection (a) of this section shall be increased by an amount oppual to 50 per centum of that portion of the indiridual's annuity as is computed under subsections (6), (®), and (d) of section 3 of this Ict: Prorided, horrerer, That if the spouse is entitled to an annuity amount prorided by subsection (c)(1) or (c)(2) of this section, the amount of such spouse's annuity prorided by the preceding prorisions of this subsection shall be reduced by the amount by which the amount rom puted in accordance with the prorisions of clause (C) of subsection (e) (1) or (c) (2) of this section iras increased by the Social Security Amendments of 1965, 1967, and 1969, disregarding (A) the amount of any such increase resulting from the Social Security Amendments

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of 1967 equal to, or less than, the excess of $5 orer 5.8 per centum of the lesser of (i) the amount com puted under clause (C) of subsection (e) (1) or (e) (2) of this section before any increases derired from legislation enacted after the Social Security Amendments of 1967 or (ii) the amount of the spouse's annuity to which such spouse vrould have been entitled under section 2(e) of the Railroad Retirement Act of 1937, without regard to section 3(a)(2) of that Act or to increases derived from legislation enacted after 1968 and before any reduction on account of age, on the basis of the individual's compensation and years of service prior to January 1, 1975, and (B) the amount of any such increase resulting from the Social Security Amendments of 1969 equal to, or less than, $5: Provided further. That if the spouse is entitled to an annuity under section 2(a) (1) of this Act, the amount of the annuity of such spouse under this subsection shall, subject to the third proviso of this subsection, be increased by an amount equal to the amount by which the amount of the annuity of such spouse prorided under subsection (a) of this section was reduced by reason of the provisions of subsection (1) (2) of this section: And prorided further, That if the total of (A) the amount of the sponse's annuity provided under subsection (a) of this section (before any reduction due to such spouse's entitlement to a wife's or husband's insurance benefit under the Social Security Act), or, in the case of a spouse entitle'to an annuity under section 2(a)(1) of this Act or to an old-age insurance benefit or a disability insurance benefit under section 202 or 223 of the Social Security Act, the amount to which such a pouse would be entitled under subsection. (a) if she or he were not entitled to an annuity under section 2(a)(1) of this Act or to an old-age insurance benefit or a disability insurance benefit under section 202 or 223 of the Social Security Act, plus (B) the amount of her or his annuity under this subsection would, with respect to any month, before any reductions on account of age, exceed 110 per centum of an amount equal to the maximum amount which could be paid to anyone, with respect to such month, as a wife's insurance benefit under 202 (6) of the Social Security Act, the amount of the annuity of such spouse under this subsection shall be reduced until the total of such annuity amounts equals 110 per centum of such amount. The Board shall hare the authority to approximate the amount of any reduction prescribed by the first proriso of this subsection.

(c) If (A) the total amount of the annuity of a spouse of an individual 118 com puted under the preceding subsections of this section as of the date on which the annuity of such individual under section 2(a)(1) of this Act began to accrur (beforr any reduction due to such * pouse's entitlement to a wife's or husband's insurance benefit under the Social Security Act) plus (B) the total amount of the annuity anal supplemental annuity of the indiricual (before any reduction due to such indiridual's entitlement to a monthly insurance benefit under the Social Security Act) subject to the provisions of section 3(f) (1) of this Act would, before any reductions the amounts specified in clauxex (1) a (B) on account of age and disregarding any increases in such amounts which become effective after the date on ichich the iniridual's amnuity under section 2 (a) (1) of this act began to accrue,

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erceed the amount determined under clauses (A) and (B) of section

(f)(1) of this Act, the portion of the annuity of such spouse determined under subsection (b) of this section as of the date on which the indiriduals annuity under section 2(a) (1) began to accrue shall be reduced until the sum of the amounts specified in clauses (A) and (B) of this subsection equals the amount determined under clauses (4) and (B) of section 3() (1) or until such amount under subsection (h) is reduced to zero, whichever occurs first. If, after such amount uniler subsection (6) is reduced to zero, the sum of the remaining amounts specified in clauses (A) and (B) of this subsection still exreeds the amount determined under clauses (A) and (B) of section 3(f) (1), the supplemental annuity of the individual first, and then, if necessary, the annuity amount of the individual computed under subsection (b), (c), and (d) of section 3 as of the date on which the individual's annuity under section 2(a) (1) began to accrue, shall be reduced until the amounts specified in clauses (A) and (B) of this subsection equals the amount determined under clause: (A) and (B) of section 3(1) (1) or until such supplemental annuity and such annuity amount are reduced to zero, whicherer occurs first. Notuithstanding the preceding provisions of this subsection, the prorisions of this subsection shall not operate to reduce the total of the amounts specified in clauses (A) and (B) of this subsection below $1.200.

(d) That portion of the annuity of the spouse of an individual as is determined under subsections (6) and (c) of this section shall be increased by the same percentage, or percentages, (18 the individual's annuity is, or has been, increased pursuant to the prorisions of section 3(g) of this Act.

(e) (1) The amount of the annuity of the spouse of an individual determined under subsections (a) and (b) of this section, if (A) such indiridual rill have (i) rendered serrice as an employee to an employer, or as an employee representative, during the calendar year 1974, or (ii) had a current connection with the railroad industry on December 31, 1947, or at the time his annuity under section 2(a) (1) of this Act began to accrue, or (iii) completed turenty-five years of service prior to January 1, 1975, and (B) such indiridual will have completed ten years of serrice prior to January 1, 1975, and such «pouse trill have been permanently insured under the Social Security Act on December 31, 1974, shall be increased by an amount equal to the smaller of (C) the primary insurance amount to irhich such spouse would have been entitled, upon attaining age 65, under the provisions of the Social Security Act as in effect on December 31, 1974, on the basis of her or his wages and self-employment income derired from employment and self-employment under that Act prior to January 1, 1975, or (D) the wife's or husband's insurance benefit to irhich such spouse would hare been entitled, upon attaining age 65, under the prorisions of the Social Security Act as in effect on December 31, 1974, if such indiridual's service as an employee after December 31, 19.36, and prior to January 1, 1975, irere included in the term "employmentas defined in that Act, if such indiridual had no wages or self-employment income under the Art other than irages derived from such serrire as an employee, and if such spouse vere entitled to no other benefit under that Act: Provided, houerer. T'hat the 168

increase under the provisions of this subdivision shall not be lexx than 50 per centum of the portion of the annuity, if any, of such individual determined under the prorisions of sertion 3(h) (1) of this Act prior to any increases under the prorisions of sertion 3(h) (5) of this Act.

(2) The amount of the annuity of the spouse of an indiridual determined under subsection (a) and (6) of this section, if (4) such indiridual vill not have met the conditions set forth in subclause (i), (i), or (iii) of clause (A) of subdirision (1) of this subsection, but (B) such indiridual will hare completed ten years of serrice prior to Joinuary 1, 1975, and such «pouse irill hare been permanently insured under the Social Security Act as of December 31 of the calendar year prior to 1975 in which such indiridual last rendered serrire as an employee, shall be increased by an amount equal to the smaller of (l') the primary insuranre amount to rhich such *pouse irould hare beus. entitleil, upon attaining age 6, under the prorisions of the Social Security Act as in effect on December 31. 1814, on the basis of hix or her wages 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 rhich such individual last rendered serrice as an employee or (D) the wife's or husband's insurance benefit to ichich such spouse would hare been entitled, upon attaining age 6.), under the provisions of the Social Security Act as in effect on December 31. 1974, if such individual's serrice as an employee after December 31, 19.36, and prior to January 1, 1975, irere included in the term "employment" as defined in that Art, if such indiridual had no wages or no other benefit under that Act: Prorided, horrerer, That the increase from such service as an employer, and if such spouse irere entitled to no other benefit under that Act: Prorided, horrerer. That the increase under the prorisions of this subdirision shall not be less than 50 per rentum of the portion of the annuity, if any, of such indiridual determined under the provisions of section 3(h) (2) of this Act prior to any increases under the prorisions of sertion 3 (h) (5) of this Act.

(3) The amount of the annuity of the spouse of an indiridual determined under subsections (a) and (b) of this sertion, if (A) such indiridual is entitled to an amount determined under the prorisions of section 3(h) (1) or 3(h)(2) of this Art and (B) such spouse is not entitled to an amount determined under the prorisions of subdirision (1) or (2) of this subsection, shall be increased by an amount equal to 50 per centum of the portion of the annuity of such indiridual determined under the prorisions of sertion 3 (h) (1) or }(h) (?) of this Act prior to any increases under the prorisions of section 3(h) (á) of this Act.

(4) The amount determined under the prorisions of subdirixion (1). (2), or (33) of this subsection shall be increased by the same percentage or percentages, as wife's and husband's insurance benefits under section 202 of the Social Security Art are increased, or irould hare been incregsed had there been no general benefit increases under the Social Security Art, pursuant to the automatic cost-of-liring prorisions of xection 215(i) of that Art, during the period from January 1, 1975, to the date on which the individual's annuity under section 2(a) (1) of this Act began to accrue.

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