CONSOLIDATION OF OLD METHODS OF COMPUTING PRIMARY INSURANCE AMOUNTS.

SEC. 5117. CONSOLIDATION OF OLD METHODS OF COMPUTING PRIMARY INSURANCE AMOUNTS. (a) Consolidation of Computation Methods.— (1) In general—Section 215(a)(5) (42 U.S.C. 415(a)(5)) is amended— (A) by striking “For purposes of” and inserting “(A) Subject to subparagraphs (B), (C), (D) and (E), for purposes of”; (B) by striking the last sentence; and (C) by adding at the end the following new subparagraphs: “(B)(i) Subject to clauses (ii), (iii), and (iv), and notwithstanding any other provision of law, the primary insurance amount of any individual described in subparagraph (C) shall be, in lieu of the 104 STAT. 1388–275primary insurance amount as computed pursuant to any of the provisions referred to in subparagraph (D), the primary insurance amount computed under subsection (a) of section 215 as in effect in December 1978, without regard to subsection (b)(4) and (c) of such section as so in effect, “(ii) The computation of a primary insurance amount under this subparagraph shall be subject to section 104(j)(2) of the Social Security Amendments of 1972 (relating to the number of elapsed years under section 215(b)). “(iii) In computing a primary insurance amount under this subparagraph, the dollar amount specified in paragraph (3) of section 215(a) (as in effect in December 1978) shall be increased to $11.50. “(iv) In the case of an individual to whom section 215(d) applies, the primary insurance amount of such individual shall be the greater of— “(I) the primary insurance amount computed under the preceding clauses of this subparagraph, or “(II) the primary insurance amount computed under section 215(d). “(C) An individual is described in this subparagraph if— “(i) paragraph (1) does not apply to such individual by reason of such individual’s eligibility for an old-age or disability insurance benefit, or the individual’s death, prior to 1979, and “(ii) such individual’s primary insurance amount computed under this section as in effect immediately before the date of the enactment of the Omnibus Budget Reconciliation Act of 1990 would have been computed under the provisions described in subparagraph (D). “(D) The provisions described in this subparagraph are— “(i) the provisions of this subsection as in effect prior to the enactment of the Social Security Amendments of 1965, if such provisions would preclude the use of wages prior to 1951 in the computation of the primary insurance amount, “(ii) the provisions of section 209 as in effect prior to the enactment of the Social Security Act Amendments of 1950, and “(iii) the provisions of section 215(d) as in effect prior to the enactment of the Social Security Amendments of 1977. “(E) For purposes of this paragraph, the table for determining primary insurance amounts and maximum family benefits contained in this section in December 1978 shall be revised as provided by subsection (i) for each year after 1978.”. (2) Computation of primary insurance benefit under 1939 ACT.— (A) Division of wages by elapsed years.—Section 215(d)(1) (42 U.S.C. 415(d)(1)) is amended— (i) in subparagraph (A), by inserting “and subject to section 104(j)(2) of the Social Security Amendments of 1972” after “thereof’; and (ii) by striking “(B) For purposes” in subparagraph (B) and all that follows through clause (ii) of such subparagraph and inserting the following: “(B) For purposes of subparagraphs (B) and (C) of subsection (b)(2) (as so in effect)— “(i) the total wages prior to 1951 (as defined in subparagraph (C) of this paragraph) of an individual— 104 STAT. 1388–276 “(I) shall, in the case of an individual who attained age 21 prior to 1950, be divided by the number of years (hereinafter in this subparagraph referred to as the ‘divisor’) elapsing after the year in which the individual attained age 20, or 1936 if later, and prior to the earlier of the year of death or 1951, except that such divisor shall not include any calendar year entirely included in a period of disability, and in no case shall the divisor be less than one, and “(II) shall, in the case of an individual who died before 1950 and before attaining age 21, be divided by the number of years (hereinafter in this subparagraph referred to as the ‘divisor’) elating after the second year prior to the year of death, or 1936 if later, and prior to the year of death, and in no case shall the divisor be Less than one; and “(ii) the total wages prior to 1951 (as defined in subparagraph (C) of this paragraph) of an individual who either attained age 21 after 1949 or died after 1949 before attaining age 21, shall be divided by the number of years (hereinafter in this subparagraph referred to as the ‘divisor’) elapsing after 1949 and prior to 1951.”. (B) Crediting of wages to years.—Clause (iii) of section 215(d)(1)(B) (42 U.S.C. 415(d)(1)(B)(iii)) is amended to read as follows: “(iii) if the quotient exceeds $3,000, only $3,000 shall be deemed to be the individual’s wages for each of the years which were used in computing the amount of the divisor, and the remainder of the individual’s total wages prior to 1951 (I) if less than $3,000, shall be deemed credited to the computation base year (as defined in subsection (b)(2) as in effect in December 1977) immediately preceding the earliest year used in computing the amount of the divisor, or (II) if $3,000 or more, shall be deemed credited, in $3,000 increments, to the computation base year (as so defined) immediately preceding the earliest year used in computing the amount of the divisor and to each of the computation base years (as so defined) consecutively preceding that year, with any remainder less than $3,000 being credited to the computation base year (as so defined) immediately preceding the earliest year to which a full $3,000 increment was credited; and”. (C) Applicability.—Section 215(d) is further amended— (i) in paragraph (2)(B), by striking “except as provided in paragraph (3),”; (ii) by striking paragraph (2)(C) and inserting the following: “(C)(i) who becomes entitled to benefits under section 202(a) or 223 or who dies, or “(ii) whose primary insurance amount is required to be recomputed under paragraph (2), (6), or (7) of subsection (f) or under section 231.”; and (iii) by striking paragraphs (3) and (4). (3) Conforming amendments.— (A) Section 215(i)(4) (42 U.S.C. 415(i)(4)) is amended in the first sentence by inserting “and as amended by section 5117 104 STAT. 1388–277of the Omnibus Budget Reconciliation Act of 1990” after “as then in effect”. (B) Section 203(a)(8) (42 U.S.C. 403(a)(8)) is amended in the first sentence by inserting “and as amended by section 5117 of the Omnibus Budget Reconciliation Act of 1990,” after “December 1978” the second place it appears. (C) Section 215(c) (42 U.S.C. 415(c)) is amended by striking “This” and inserting “Subject to the amendments made by section 5117 of the Omnibus Budget Reconciliation Act of 1990, this”. (D) Section 215(f)(7) (42 U.S.C. 415(f)(7)) is amended by striking the period at the end of the first sentence and inserting “, including a primary insurance amount computed under any such subsection whose operation is modified as a result of the amendments made by section 5117 of the Omnibus Budget Reconciliation Act of 1990”. (E)(i) Section 215(d) (42 U.S.C. 415(d)) is further amended by redesignating paragraph (5) as paragraph (3). (ii) Subsections (a)(7)(A), (a)(7)(C)(ii), and (f)(9)(A) of section 215 (42 U.S.C. 415) are each amended by striking “subsection (d)(5)” each place it appears and inserting “subsection (d)(3)”. “(iii) Section 215(f)(9)(B) (42 U.S.C. 415(f)(9)(B)) is amended by striking “subsection (a)(7) or (d)(5)” each place it appears and inserting “subsection (a)(7) or (d)(3)”. (4) Effective date.— (A) In general.—Except as provided in subparagraph (B), the amendments made by this subsection shall apply with respect to the computation of the primary insurance amount of any insured individual in any case in which a person becomes entitled to benefits under section 202 or 223 on the basis of such insured individual’s wages and self-employment income for months after the 18-month period following the month in which this Act is enacted, except that such amendments shall not apply if any person is entitled to benefits based on the wages and self-employment income of such insured individual for the month preceding the initial month of such person’s entitlement to such benefits under section 202 or 223. (B) Recomputations.—The amendments made by this subsection shall apply with respect to any primary insurance amount upon the recomputation of such primary insurance amount if such recomputation is first effective for monthly benefits for months after the 18-month period following the month in which this Act is enacted. (b) Benefits in Case of Veterans.—Section 217(b) (42 U.S.C. 417(b)) is amended— (1) in the first sentence of paragraph (1), by striking “Any” and inserting “Subject to paragraph (3), any”; and (2) by adding at the end the following new paragraph: “(3)(A) The preceding provisions of this subsection shall apply for purposes of determining the entitlement to benefits under section 202, based on the primary insurance amount of the deceased World War II veteran, of any surviving individual only if such surviving individual makes application for such benefits before the end of the 18-month period after the month in which the Omnibus Budget Reconciliation Act of 1990 was enacted. 104 STAT. 1388–278 “(B) Subparagraph (A) shall not apply if any person is entitled to benefits under section 202 based on the primary insurance amount of such veteran for the month preceding the month in which such application is made.”. (c) Applicability of Alternative Method for Determining Quarters of Coverage With Respect to Wages in the Period from 1937-to 1950.— (1) Applicability without regard to number of elapsed years.—Section 213(c) (42 U.S.C. 413(c)) is amended— (A) by inserting “and 215(d)” after “214(a)”; and (B) by striking “except where—” and all that follows and inserting the following: “except where such individual is not a fully insured individual on the basis of the number of quarters of coverage so derived plus the number of quarters of coverage derived from the wages and self-employment income credited to such individual for periods after 1950.”. (2) Applicability without regard to date of death.—Section 155(b)(2) of the Social Security Amendments of 1967 is amended by striking “after such date”. (3) Effective date.—The amendments made by this subsection shall apply only with respect to individuals who— (A) make application for benefits under section 202 of the Social Security Act after the 18-month period following the month in which this Act is enacted, and (B) are not entitled to benefits under section 227 or 228 of such Act for the month tn which such application is made.