computations and recomputations of primary insurance amounts

computations and recomputations of primary insurance amounts Sec. 303. (a) Section 215(b) of the Social Security Act is amended to read as follows: “(b) (1) For the purposes of column III of the table appearing in subsection (a) of this section, an individual’s ‘average monthly wage’ shall be the Quotient obtained by dividing— “(A) the total of his wages paid in and self-employment income credited to his ‘benefit computation years’ (determined under paragraph (2)), by “(B) the number of months in such years. “(2) (A) The number of an individual’s ‘benefit computation years’ shall be equal to the number of elapsed years (determined under paragraph (3) of this subsection), reduced by five; except that the number of an individual’s benefit computation years shall in no case be less than two. “(B) An individual’s ‘benefit computation years’ shall be those computation base years, equal in number to the number determined under subparagraph (A), for which the total of his wages and self-employment income is the largest. “(C) For the purposes of subparagraph (B), ‘computation base years’ include only calendar years occurring— “(i) after December 31, 1950, and “(ii) prior to the year in which the individual became entitled to old-age insurance benefits or died, whichever first occurred; except that the year in which the individual became entitled to old-age insurance benefits or died, as the case may be, shall be included as a computation base year if the Secretary determines, on the basis of74 Stat. 961 evidence available to him at the time of the computation of the primary insurance amount for such individual, that the inclusion of such year would result in a higher primary insurance amount. Any calendar year all of which is included in a period of disability shall not be included as a computation base year. “(3) For the purposes of paragraph (2), an individual’s ‘elapsed years’ shall be the number of calendar years— “(A) after (i) December 31, 1950, or (ii) if later, December 31 of the year in which he attained the age of twenty-one, and “(B) prior to (i) the year in which he died, or (ii) if earlier, the first year after December 31, 1960, in which he both was fully insured and had attained retirement age. For the purposes of the preceding sentence, any calendar year any part of which was included in a period of disability shall not be included in such number of calendar years. “(4) The provisions of this subsection shall be applicable only in the case of an individual with respect to whom not less than six or the quarters elapsing after 1950 are quarters of coverage, and— “(A) who becomes entitled to benefits after December 1960 under section 202(a) or section 223; or “(B) who dies after December 1960 without being entitled to benefits under section 202(a) or section 223; or “(C) who files an application for a recomputation under subsection (f)(2)(A) after December 1960 and is (or would, but for the provisions of subsection (f)(6), be) entitled to have his primary insurance amount recomputed under subsection (f)(2)(A); or “(D) who dies after December 1960 and whose survivors are (or would, but for the provisions of subsection (f)(6), be) entitled to a recomputation of his primary insurance amount under subsection (f)(4). “(5) In the case of any individual— “(A) to whom the provisions of this subsection are not made applicable by paragraph (4), but “(B) (i) prior to 1961, met the requirements of this paragraph (including subparagraph (E) thereof) as in effect prior to the enactment of the Social Security Amendments of 1960, or (ii) after 1960, meets the conditions of subparagraph (E) of this paragraph as in effect prior to such enactment, then the provisions of this subsection as in effect prior to such enactment shall apply to such individual for the purposes of column III of the table appearing in subsection (a) of this section.” (b) Section 215(c)(2)(B) of such Act is amended to read as follows: “(B) to whom the provisions of neither paragraph (4) nor paragraph (5) of subsection (b) are applicable.” (c) (1) Section 215(d)(1)(A) of such Act is amended to read as follows: “(A) In the computation of such benefit, such individual’s average monthly wage shall (in lieu of being determined under section 209(f) of this title as in effect prior to the enactment of such amendments) be determined as provided in subsection (b) of this section (but without regard to paragraphs (4) and (5) thereof), except that for the purposes of paragraphs (2)(C)(i) and (3)(A)(1) of subsection (b), December 31, 1936, shall be used instead of December 31, 1950.” (2) Section 215(d)(1)(C) of such Act is amended by striking out “any part” and inserting in lieu thereof “all”; and by striking out the last sentence thereof. 74 Stat. 962 (3) Section 215(d)(2)(B) of such Act is amended by striking out “paragraph (5)” and inserting in lieu thereof “paragraph (4)”. (4) Section 215(d) of such Act is further amended by adding at the end thereof the following new paragraph: “(3) The provisions of this subsection as in effect prior to the enactment of the Social Security Amendments of 1960 shall be applicable in the case of an individual who meets the requirements of subsection (b)(5) (as in effect after such enactment) but without regard to whether such individual has six quarters of coverage after 1950.” (d) (1) Effective with respect to individuals who become entitled to benefits under section 202(a) of the Social Security Act after 1960, section 215(e)(3) of such Act is amended to read as follows: “(3) if an individual has self-employment income in a taxable year which begins prior to the calendar year in which he becomes entitled to old-age insurance benefits and ends after the last day of the month preceding the month in which he becomes so entitled, his self-employment income in such taxable year shall not be counted in determining his benefit computation years, except as provided in subsection (f)(3)(C).” (2) Effective with respect to individuals who meet any of the subparagraphs of paragraph (4) of section 215(b) of the Social Security Act, as amended by this Act, section 215(e) of the Social Security Act is further amended by inserting “and” after the semicolon at the end of paragraph (2) and by striking out paragraph (4). (e) (1) Effective with respect to applications for recomputation under section 215(f)(2) of the Social Security Act filed after 1960, section 215(f)(2) of such Act is amended by striking out “1954” the first time it appears and inserting in lieu thereof “1960”, and by striking out “no earlier than six months” in subparagraph (A)(iii). (2) Section 215(f)(2)(B) of such Act is amended to read as follows: “(B) A recomputation pursuant to subparagraph (A) shall be made— “(i) only as provided in subsection (a)(1), if the provisions of subsection (b), as amended by the Social Security Amendments of I960, were applicable to the last previous computation of the individual’s primary insurance amount, or “(ii) as provided in subsection (a)(1) and (3), in all other cases. Such recomputation shall be made as though the individual became entitled to old-age insurance benefits in the month in which he filed the application for such recomputation, except that if clause (i) of this subparagraph is applicable to such recomputation, the computation base years referred to in subsection (b)(2) shall include only calendar years occurring prior to the year in which he filed his application for such recomputation.” (3) Section 215(f)(3) of such Act is amended to read as follows: “(3) (A) Upon application by an individual— “(i) who became entitled to old-age insurance benefits under section 202(a) after December 1960, or “(ii) whose primary insurance amount was recomputed as provided in paragraph (2)(B)(ii) of this subsection on the basis of an application filed after December 1960, the Secretary shall recompute his primary insurance amount if such application is filed after the calendar year in which he became entitled to old-age insurance benefits or in which he filed application for the recomputation of his primary insurance amount under clause (ii) of this sentence, whichever is the later. Such recomputation under this subparagraph shall be made as provided in subsection (a)(1) and (3)74 Stat. 963 of this section, except that such individual’s computation base years referred to in subsection (b)(2) shall include the calendar year referred to in the preceding sentence. Such recomputation under this subparagraph shall be effective for and after the first month for which his last previous computation of his primary insurance amount was effective, but in no event for any month prior to the twenty-fourth month before the month in which the application for such recomputation is filed. “(B) In the case of an individual who dies after December 1960 and— “(i) who, at the time of death was not entitled to old-age insurance benefits under section 202 (a), or “(ii) who became entitled to such old-age insurance benefits after December 1960, or “(iii) whose primary insurance amount was recomputed under paragraph (2) of this subsection on the basis of an application filed after December 1960, or “(iv) whose primary insurance amount was recomputed under paragraph (4) of this subsection, the Secretary shall recompute his primary insurance amount upon the filing of an application by a person entitled to monthly benefits or a lump-sum death payment on the basis of such individual’s wages and self-employment income. Such recomputation shall be made as provided in subsection (a)(1) and (3) of this section, except that such individual’s computation base years referred to in subsection (b)(2) shall include the calendar year in which he died in the case of an individual who was not entitled to old-age insurance benefits at the time of death or whose primary insurance amount was recomputed under paragraph (4) of this subsection, or in all other cases, the calendar year in which he filed his application for the last previous computation of his primary insurance amount. In the case of monthly benefits, such recomputation shall be effective for and after the month in which the person entitled to such monthly benefits became so entitled, but in no event for any month prior to the twenty-fourth month before the month in which the application for such recomputation is filed. “(C) In the case of an individual who becomes entitled to old-age insurance benefits in a calendar year after 1960, if such individual has self-employment income in a taxable year which begins prior to such calendar year and ends after the last day of the month preceding the month in which he became so entitled, the Secretary shall recompute such individual’s primary insurance amount after the close of such taxable year and shall take into account in determining the individual’s benefit computation years only such self-employment income in such taxable year as is credited, pursuant to section 212, to the year preceding the year in which he became so entitled. Such recomputation shall be effective for and after the first month in which he became entitled to old-age insurance benefits.” (4) (A) Section 215(f)(4) of such Act is amended by striking out “1954” in the first sentence and inserting in lieu thereof “1960”, and by striking out the second and third sentences and inserting in lieu thereof the following: “If the recomputation is permitted by subparagraph (A), the recomputation shall be made (if at all) as though he had filed application for a recomputation under paragraph (2)(A) in the month in which he died. If the recomputation is permitted by subparagraph (B), the recomputation shall take into account only the wages and self-employment income which were considered in the last previous computation of his primary insurance amount and the compensation (described in section 205(o)) paid to him in the years in which such wages were paid or to which such self-employment income was credited.” 74 Stat. 964 (B) Effective in the case of deaths occurring on or after the date of the enactment of this Act, the first sentence of such section 215(f)(4) is further amended by striking out “(without the application of clause (iii) thereof)”. (f) Effective with respect to individuals who become entitled to benefits under section 223 of the Social Security Act after 1960, section 223(a)(2) of such Act (as amended by section 402(b) of this Act) is amended to read as follows: “(2) Such individual’s disability insurance benefit for any month shall be equal to his primary insurance amount for such month determined under section 215 as though he had attained retirement age in— “(A) the first month of his waiting period, or “(B) in any case in which clause (ii) of paragraph (1) of this subsection is applicable, the first month for which he becomes entitled to such disability insurance benefits, and as though he had become entitled to old-age insurance benefits in the month in which he filed his application for disability insurance benefits. For the purposes of the preceding sentence, in the case of a woman who both was fully insured and had attained retirement age in or before the first month referred to in subparagraph (A) or (B) of such sentence, as the case may be, the elapsed years referred to in section 215(b)(3) shall not include the first year in which she both was fully insured and had attained retirement age, or any year thereafter.” (g) (1) In the case of any individual who both was fully insured and had attained retirement age prior to 1961 and (A) who becomes entitled to old-age insurance benefits after 1960, or (B) who dies after 1960 without being entitled to such benefits, then, notwithstanding the amendments made by the preceding subsections of this section, the Secretary shall also compute such individual’s primary insurance amount on the basis of such individual’s average monthly wage determined under the provisions of section 215 of the Social Security Act in effect prior to the enactment of this Act with a closing date determined under section 215(b)(3)(B) of such Act as then in effect, but only if such closing date would have been applicable to such computation had this section not been enacted. If the primary insurance amount resulting from the use of such an average monthly wage is higher than the primary insurance amount resulting from the use of an average monthly wage determined pursuant to the provisions of section 215 of the Social Security Act, as amended by the Social Security Amendments of 1960, such higher primary insurance amount shall be the individual’s primary insurance amount for purposes of such section 215. The terms used in this subsection shall nave the meaning assigned to them by title II of the Social Security Act. (2) Notwithstanding the amendments made by the preceding subsections of this section, in the case of any individual who was entitled (without regard to the provisions of section 223(b) of the Social Security Act) to a disability insurance benefit under such section 223 for the month before the month in which he became entitled to an old-age insurance benefit under section 202(a) of such Act, or in which he died, and such disability insurance benefit was based upon a primary insurance amount determined under the provisions of section 215 of the Social Security Act in effect prior to the enactment of this Act, the Secretary shall, in applying the provisions of such section 215(a) (except paragraph (4) thereof), for purposes of determining benefits payable under section 202 of such Act on the basis of such individual’s wages and self-employment income, determine such individual’s average monthly wage under the provisions of section 215 of the Social Security Act in effect prior to the enactment of this Act. 74 Stat. 965 The provisions of this paragraph shall not apply with respect to any such individual, entitled to such old-age insurance benefits, (i) who applies, after 1960, for a recomputation (to which he is entitled) of his primary insurance amount under section 215(f)(2) of such Act, or (ii) who dies after 1960 and meets the conditions for a recomputation of his primary insurance amount under section 215(f)(4) of such Act. (h) In any case where application for recomputation under section 215(f)(3) of the Social Security Act is filed on or after the date of the enactment of this Act with respect to an individual for whom the last previous computation of the primary insurance amount was based on an application filed prior to 1961, or who died before 1961, the provisions of section 215 of such Act as in effect prior to the enactment of this Act shall apply except that— (1) such recomputation shall be made as provided in section 215(a) of the Social Security Act (as in effect prior to the enactment of this Act) and as though such individual first became entitled to old-age insurance benefits in the month in which he filed his application for such recomputation or died without filing such an application, and his closing date for such purposes shall be as specified in such section 215(f)(3); and (2) the provisions of section 215(b)(4) of the Social Security Act (as in effect prior to the enactment of this Act) shall apply only if they were applicable to the last previous computation of such individual’s primary insurance amount, or would have been applicable to such computation if there had been taken into account— (A) his wages and self-employment income in the year in which he became entitled to old-age insurance benefits or filed application for the last previous recomputation of his primary insurance amount, where he is living at the time of the application for recomputation under this subsection, or (B) his wages and self-employment income in the year in which he died without becoming entitled to old-age insurance benefits, or (if he was entitled to such benefits) the year in which application was filed for the last previous computation of his primary insurance amount or in which he died, whichever first occurred, where he has died at the time of the application for such recomputation. If the primary insurance amount of an individual was recomputed under section 215(f)(3) of the Social Security Act as in effect prior to the enactment of this Act, and such amount would have been larger if the recomputation had been made under such section as modified by this subsection, then the Secretary shall recompute such primary insurance amount under such section as so modified, but only if an application for such recomputation is filed on or after the date of the enactment of this Act. A recomputation under the preceding sentence shall be effective for and after the first month for which the last previous recomputation of such individual’s primary insurance amount under such section 215 was effective, but in no event for any month prior to the twenty-fourth month before the month in which the application for a recomputation is filed under the preceding sentence. (i) (1) In the case of an application for a recomputation under section 215(f)(2) of the Social Security Act filed after 1954 and prior to 1961, the provisions of section 215(f)(2) of such Act in effect prior to the enactment of this Act shall apply. (2) In the case of an individual who died after 1954 and prior to 1961 and who was entitled to an old-age insurance benefit under sec-74 Stat. 966tion 202(a) at the time of his death, the provisions of section 215(f)(4) of the Social Security Act in effect prior to the enactment of this Act shall apply. (j) In the case of an individual whose average monthly wage is computed under the provisions of section 215(b) of the Social Security Act, as amended by this Act, and— (1) who is entitled, by reason of the provisions of section 202(j)(1) or section 223(b) of the Social Security Act, to a monthly benefit for any month prior to January 1961, or (2) who is (or would, but for the fact that such recomputation would not result in a higher primary insurance amount for such individual, be) entitled, by reason of section 215(f) of the Social Security Act, to have his primary insurance amount recomputed effective for a month prior to January 1961, his average monthly wage as determined under the provisions of such section 215(b) shall be his average monthly wage for the purposes of determining his primary insurance amount for such prior month. (k) Section 102(f)(2)(B) of the Social Security Amendments of 1954 is amended by inserting after “Social Security Act” in the second sentence thereof “as in effect prior to the enactment of the Social Security Amendments of 1960”; and by striking out “bond” and inserting in lieu thereof “month”.