Pub. L. 89-699, tit. II, sec. 201

Sec. 201. (a) (1) Section 2(e) of the Railroad Retirement Act of 1937 is amended by striking out the period at the end thereof and inserting in lieu thereof the following: “: And provided further, That the spouse’s annuity provided for herein and in subsection (h) of this section shall be computed without regard to the reduction in the individual’s annuity under the first two provisos in section 3(a)(1) of this Act and without regard to the effect of section 3(a) (2) on the annuity of the individual from whom such spouse’s annuity derives.”. (2) Section 2 of such Act is further amended by adding a new subsection at the end thereof as follows: “(i) The spouse’s annuity provided under subsections (e) and (h) of this section shall (before any reduction on account of age) lie reduced in accordance with the first two provisos in section 3(a) (1) of this Act except that the spouse’s annuity shall not be less than it would be had this Act not been amended in 1966.” (b) Section 3(a) of such Act is amended by striking out all that appears therein and inserting in lieu thereof the following: “Sec. 3. (a) (1) The annuity shall be computed by multiplying an individual’s ‘years of service by the following percentages of his ‘monthly compensation’: 3.58 per centum of the first $50; 2.69 per centum of the next $100; 1.79 per centum of the next $300; and 1.67 per centum of the remainder up to an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121 of the Internal Revenue Code of 1954: Provided, however, That in cases where an individual is entitled to a benefit under title II of the Social Security Act, the amount so computed shall be reduced by 6.55 per centum of the amount of such social security benefit (disregarding any increases in such benefit based on recomputations other than for the correction of errors after such reduction is first applied and any increases derived from changes in the primary insurance amount through legislation enacted after the Social Security Amendments of 1965): Provided further, That in determining social security benefit amounts for the purpose of this subsection, if such individual’s 80 Stat. 1076average monthly wage is in excess of $400, only an average monthly wage of $400 shall be used: And provided further, That the amount of an annuity as computed under this subsection shall not be less than it would be had this Act not been amended in 1966. “(2) Notwithstanding the provisions of paragraph (1) of this subsection, and of subsection (e) of this section, the annuity of an individual for a month with respect to which a supplemental annuity under subsection (j) of this section accrues to him shall be computed or re-computed under the provisions of this subsection, or of subsection (e) of this section, as in effect before their amendment in 1966: Provided, however, That if the application of the preceding provision of this paragraph would result in the amount of the annuity, plus the amount of a supplemental annuity (after adjustment under subsection (j) (2) of this section) payable to an individual for a month being lower than the amount which would be payable as an annuity except for such preceding provision, the annuity shall be in an amount which together with the amount of the supplemental annuity would be no less than the amount that would be payable as an annuity but for such preceding provision.” (c) Section 3(e) of such Act is amended by striking out all that precedes the first proviso and inserting in lieu thereof the following: “In the case of an individual having a current connection with the rail-road industry, the minimum annuity payable shall, before any reduction pursuant to section 2(a) (3), be whichever of the following is the least: (1) $5.35 multiplied by the number of his years of service; or (2) $89.35; or (3) 118 per centum of his monthly compensation except that the minimum annuity so determined shall be reduced in accordance with the first two provisos in subsection (a)(1) of this section, but shall not be less than it would be had this Act not been amended in 1966:”. (d) Section 5(h) of such Act is amended by striking out all that appears therein and substituting in lieu thereof the following: “Maximum and Minimum Annuity Totals.—Whenever according to the provisions of this section as to annuities payable for a month with respect to the death of an employee, the total annuities is more than $38.84 and exceeds either (a) $207.15, or (b) an amount equal to two and two-thirds times such employee’s basic amount, whichever of such amounts is the lesser, such total of annuities shall, after any deductions under subsection (i), be reduced to such lesser amount or to $38.84, whichever is greater. Whenever such total of annuities is less than $18.14, such total shall, prior to any deductions under subsection (i), be increased to $18.14: Provided, however, That the share of any individual in an amount so determined shall be reduced in accordance with the first two provisions in section 3(a) (1) of this Act except that the share of such individual shall not be less than it would be had this Act not been amended in 1966.” (e) Section 5(1) (10) of such Act is amended— (1) by striking out all that appears in subdivision (i) and inserting in lieu thereof the following: “for an employee who will have been partially insured, or completely insured solely by virtue of paragraph (7)(i) or (7) (ii), or both: the sum of (A) 52.4 per centum of his average monthly remuneration, up to and including $75; plus (B) 12.8 per centum of such average monthly remuneration exceeding $75 and up to and including $450; plus (C) 12 per centum of such average monthly remuneration exceeding $450 and up to and including an amount equal to one-twelfth of the current maximum annual taxable ‘wages’ as defined in section 3121 of the Internal Revenue Code of 1954, plus (D) 1 per 80 Stat. 1077centum of the sum of (A) plus (B) plus (C) multiplied by the number of years after 1936 in each of which the compensation, wages, or both, paid to him will have been equal to $200 or more; if the basic amount thus computed is less than $18.14, it shall be increased to $18.14;” and (2) by striking out in subdivision (ii) thereof “49” wherever it appears and inserting in lieu thereof “52.4”, by striking out in such subdivision “12” and inserting in lieu thereof “12.8”, by striking out in such subdivision “$40.33” and inserting “$43.15”, by striking out in such subdivision “$30.25” and inserting in lieu thereof “$32.37”, and by striking out in such subdivision “$16.13” and inserting in lieu thereof “$17.26”. (f) Section 5 of such Act is amended by adding at the end thereof the following new subsection: “(m) An annuity payable under this section to an individual, without regard to subsection (h) of this section or the proviso in the first paragraph of section 3(e) of this Act, shall lie reduced in accordance with the first two provisos in section 3(a)(1) of this Act except that the amount of the annuity shall not lie less than it would be had this Act not been amended in 1966.” (g) All pensions under section 6 of the Railroad Retirement Act of 1937, all joint and survivor annuities and survivor annuities deriving from joint and survivor annuities under that Act awarded before the month following the month of enactment of this Act, all widows’ and widowers’ insurance annuities which began to accrue before the second month following the month of enactment of this Act, and which, in accordance with the proviso in section 5(a) or section 5(b) of the Railroad Retirement Act of 1937, are payable in the amount of a spouse’s annuity to which the widow or widower was entitled (except those of such insurance annuities which are based on a spouse’s annuity which was payable in the maximum amount as determined in accordance with the provisions of the Social Security Act as amended by the Social Security Amendments of 1965), and all annuities under the Railroad Retirement Act of 1935 are increased by 7 per centum, but such a widow’s or widower’s annuity in an amount formerly received as a spouse’s annuity shall not be increased to an amount above $74.80: Provided, however, That in cases where an individual is entitled to a benefit under title II of the Social Security Act, the additional amount payable because of this subsection shall be reduced by 6.55 per centum of the amount of such social security benefit (disregarding any increases in such benefit based on recomputations other than for the correction of errors after such reduction is first applied and any increases derived from changes in the primary insurance amount through legislation enacted after the Social Security Amendments of 1965): Provided further, That in determining social security benefit amounts for the purpose of this subsection, if such individual’s average monthly wage is in excess of $400, only the average monthly wage of $400 shall be used.