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October 16, 1974

- 21

Pub. Law 93-445

88 STAT. 1326

ment income, (B) such military service 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 benefits not otherwise payable or in an increase in the benefits otherwise payable: And provided further, That an individual who entered military service prior to a war service period shall not be regarded as having been in military service 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 subdivisions (1) and (2) is less than thirty, also include his service prior to January 1, 1937, but not so as to make his total years of service exceed thirty : Provided, however, That with respect to any such individual who rendered service to any employer subsequent to December 31, 1936, and who on August 29, 1935, wa : not an employee of an employer conducting the principal part of it. business 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.

“(j) 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 was, in whole or in substantial part, in the forms 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 determing 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 compensation in excess of $300 for any month before July 1, 1954, or in excess of $350 for any month after June 30, 1954, and before June 1, 1959, or in excess of $400 for any month after May 31, 1959, and before November 1, 1963, or in excess of $450 for any month after October 31, 1963, and before October 1, 1965, or in excess of (i) $450, or (ii) an amount equal to one-twelfth of the current maximum annual taxable 'wages' as

Pub. Law 93-445 - 22.

October 16, 1974 88 STAT. 1327 26 USC 3121. defined in section 3121 of the Internal Revenue (Code of 1954, whichever

is greater, for any month after September 30, 1965, shall be recognized. If the employee earned compensation in service after June 30, 1937, and after the last day of the calendar year in which he attained age sixtyfive, such compensation and service shall be disregarded in computing the average monthly compensation if the result of taking such compensation into account in such computation would be to diminisho his annuity. If the 'average monthly compensation computed under this subsection is not a multiple of $1, it shall be rounded to the next lower multiple of $1. Where an employee claims 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 secPost, p. 1343. tion 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.

"(1) In cases where an annuity awarded under paragraph (iii) 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 anunity 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 individual 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 42 USC 401, month under title II of the Social Security Act.

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"COMPUTATION OF SPOUSE AND SURVIVOR ANNUITIES “Sec. 4. (a) (1) The annuity of a spouse of an individual under section 2(c) of this Act shall be in an amount equal to the amount (before any reduction on account of age and before any deductions on account of work) of the wife's insurance benefit or the husband's insurance benefit to which such spouse would have been entitled under the Social Security Act if such individual's service as an employee after December 31, 1936, had been included in the term 'employment' as defined in that Act.

“(2) For purposes of this subsection, spouses entitled to an annuity under clause (B) of paragraph (ii) of section 2(c)(1) of this Act shall be deemed to have attained age 65.

“(b) The amount of the annuity of a spouse of an individual provided under subsection (a) of this section shall be increased by an amount equal to 50 per centum of that portion of the individual's annuity as is computed under subsections (b), (c), and (d) of section 3 of this Act: Provided, however, That if the spouse is entitled to an annuity amount provided by subsection (e) (1) or (e) (2) of this section, the amount of such spouse's annuity provided by the preceding provisions of this subsection shall be reduced by the amount by which the amount computed in accordance with the

October 16, 1974 . 23. Pub. Law 93-445

88 STAT. 1326 provisions of clause (C) of subsection (e) (1) or (e) (2) of this section was increased by the Social Security Amendments of 1965, 1967, and 1969, disregarding (A) the amount of any such increase 42 USC 302 and resulting from the Social Security Amendnients of 1967 equal to, 401 note. or less than, the excess of $5 over 5.8 per centum of the lesser of (i) the amount computed under clause (C) of subsection (e) (1) or (e) (2) of this section before any increases derived from legislation enacted after the Social Security Amendments of 1967 or (ii) the amount of the spouse's annuity to which such spouse would have been entitled under section 2(e) of the Railroad Retirement Act of 1937, 45 USC 228b. without regard to section 3(a) (2) of that Act or to increases derived 45 USC 2280, 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 42 USC 401 to, or less than, $5: Provided further, Tnat if the spouse is entitled note, to an annuity under sectior 2(a)(1) of this Act, the amount of the Ante, p. 1312. 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 provided under subsection (a) of this section was reduced by reason of the provisions of subsection (i)(2) of this section: And provided fur. ther, That if the total of (A) the amount of the spouse'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 42 USC 1305. entitled to an annuity under section 2(a) (1) of this Act or to an oldage insurance benefit or a disability insurance benefit under section 202 or 223 of the Social Security Act, the amount to which such spouse 42 USC 401, would be entitled under subsection (a) if she or he were not entitled 423. 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 section 202(b) 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 have the authority to approximate the amount of any reduction prescribed by the first proviso of this subsection.

"(c) If (A) the total amount of the annuity of a spouse of an individual as computed 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 accrue (before any reduction due to such spouse's entitlement to a wife's or husband's insurance benefit under the Social Security Act) plus (B) the total amount of the annuity and supplemental annuity of the individual (before any reduction due to such individual'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 in the amounts specified in Anto, p. 1319. clauses (A) and (B) on account of age and disregarding any increases in such amounts which become effective after the date on which the individual's annuity under section 2(a) (1) of this Act began to accrue, exceed the amount determined under clauses (A) and (B) of section 3(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 individual's annuity under section 2(a) (1) began to accrue

Pub. Law 93-445

. 24.

October 16, 1974

88 STAT. 1329

shall be reduced until the sum of the amounts specified in clauses (A)
and (B) of this subsection equals the amount determined under clauses
(A) and (B) of section 3(f) (1) or until such amount under subsection
(b) is reduced to zero, whichever occurs first. If, after such amount
under subsection (b) is reduced to zero, the sum of the remaining
amounts specified in clauses (A) and (B) of this subsection still
exceeds 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
subsections (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 clauses (A) and (B)
of section 3(f) (1) or until such supplemental annuity and such
annuity amount are reduced to zero, whichever occurs first. Not with-
standing the preceding provisions of this subsection, the provisions
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 (b) and (c) of this section shall
be increased by the same percentage, or percentages, as the individual's
annuity is, or has been, increased pursuant to the provisions 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 individual will have (i) rendered service 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, 1974, or at the time his annuity under section 2(a) (1) of this Act began to accrue, or (iii) completed twenty-five years of service prior to January 1, 1975, and (B) such individual will have completed ten years of service rrior to January 1, 1975, and such spouse will have been permanently msured 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 which 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 derived from employ. ment and self-employment under that Act prior to January 1, 1975, or (D) the wife's or husband's insurance benefit to which 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, if such individual's service as an employee after December 31, 1936, and prior to January 1, 1975, were included in the term "employment' as defined in that Act, if such individual had no wages or self-employment income under the Act other than wages derived from such service as an employee, and if such spouse were entitled to no other benefit under that Act: Provided, however, That the increase under the provisions of this subdivision shall not be less than 50 per centum of the portion of the annuity, if any, of such individual determined under the provi. sions of section 3(h) (1) of this Act prior to any increases under the provisions of section 3(h) (5) of this Act.

“(2) The amount of the annuity of the spouse of an individual determined under subsections (a) and (b) of this section, if (A) such individual will not have met the conditions set forth in subclause (i), (ii), or (iii) of clause (A) of subdivision (1) of this subsection, but (B) such individual will have completed ten years of service prior to January 1, 1975, and such spouse will have been permanently insured under the Social Security Act as of December 31 of the calendar

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October 16, 1974 - 25 - Pub. Law 93-445
year prior to 1975 in which such individual last rendered service as an
employee, shall be increased by an amount equal to the smaller of
(C) the primary insurance amount to which 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 his
or her wages and self-employment income derived from employment
and self-employment under that Act as of December 31 of the calen-
dar year prior to 1975 in which such individual last rendered service
as an employee or (D) the wife's or husband's insurance benefit to
which such spouse would have been entitled, upon attaining age 65,
under the provisions of the Social Security Act as in effect on Decem-
ber 31, 1974, if such individual's service as an employee after Decem-
ber 31, 1936, and prior to January 1, 1975, were included in the term
"employment' as defined in that Act, if such individual had no wages
or self-employment income under that Act other than wages derived
from such service as an employee, and if such spouse were entitled to
no other benefit under that Act: Provided, however, That the increase
under the provisions of this subdivision shall not be less than 50 per
centum of the portion of the annuity, if any, of such individual deter-
mined under the provisions of section 3(h) (2) of this Act prior to any
increases under the provisions of section 3(h) (5) of this Act.

" (3) The amount of the annuity of the spouse of an individual
determined under subsections (a) and (b) of this section, if (A) such
individual is entitled to an amount determined under the provisions of
section 3(h) (1) or 3(h) (2) of this Act and (B) such spouse is not
entitled to an amount determined under the provisions of subdivision
(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 individual deter-
mined under the provisions of section 3(h) (1) or 3(h) (2) of this
Act prior to any increases under the provisions of section 3(h) (5) of
this Act.

“(4) The amount determined under the provisions of subdivision (1), (2), or (3) 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 Act are increased, or would have been increased had there been no general benefit increases under the Social Security Act, pursuant to the automatic cost-of-living provisions of section 215(i) of that Act, 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.

"(f) (1) The annuity of a survivor of a deceased employee under section 2(d) of this Act shall be in an amount equal to the amount (before any deductions on account of work) of the widow's insurance benefit, widower's insurance benefit, mother's insurance benefit, par. ent's insurance benefit, or child's insurance benefit, whichever is appli. cable, to which he or she would have been entitled under the Social Security Act if such deceased employee's service as an employee after December 31, 1936, had been included in the term 'employment as defined in that Act. “(2) For purposes of this subsection

“(i) a widow or widower or a parent who is entitled to an annuity based on age under section 2(d) (1) of this Act and who has not attained age 62 shall be deemed to be age 62: Provided, however, That the provisions of this paragraph shall not apply in the case of a widow or widower who was entitled to an annuity under section 2(d) (1) on the basis of disability for the month before the month in which he or she attained age 60, and

"(ii) a widow or widower or a child who is entitled to an annuity under section 2(d) (1) of this Act on the basis of disability shall be deemed to be entitled to a widow's insurance

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