simplification of computation of primary insurance amount and quarters of coverage in case of 1937–1950 wages

simplification of computation of primary insurance amount and quarters of coverage in case of 1937–1950 wages Sec. 155. (a) (1) Section 215(d)(1) of the Social Security Act is amended to read as follows: “Primary Insurance Benefit Under 1939 Act “(d) (1) For purposes of column I of the table appearing in subsection (a) of this section, an individual’s primary insurance benefit shall be computed as follows: “(A) The individual’s average monthly wage shall be determined as provided in subsection (b)(but without regard to paragraph (4) thereof) of this section, except that for purposes of paragraph (2)(C) and (3) of such subsection, 1936 shall be used instead of 1950. “(B) For purposes of subparagraphs (B) and (C) of subsection (b)(2), an individual whose total wages prior to 1951 (as defined in subparagraph (C) of this subsection)— “(i) do not exceed $27,000 shall be deemed to have been paid such wages in equal parts in nine calendar years after 1936 and prior to 1951; “(ii) exceed $27,000 and are less than $42,000 shall be deemed to have been paid (I) $3,000 in each of such number of calendar years after 1936 and prior to 1951 as is equal to the integer derived by dividing such total wages by $3,000, and (II) the excess of such total wages over the product of $3,000 times such integer, in an additional calendar year in such period; or “(iii) are at least $42,000 shall be deemed to have been paid $3,000 in each of the fourteen calendar years after 1936 and prior to 1951. “(C) For the purposes of subparagraph (B), ‘total wages prior to 1951’ with respect to an individual means the sum of (i) remuneration credited to such individual prior to 1951 on the records of the Secretary, (ii) wages deemed paid prior to 1951 to such individual under section 217, and (iii) compensation under the Railroad Retirement Act of 1937 prior to 1951 creditable to him pursuant to this title. “(D) The individual’s primary insurance benefit shall be 45.6 per centum of the first $50 of his average monthly wage as computed under this subsection, plus 11.4 per centum of the next $200 of such average monthly wage.” (2) Section 215(d)(2) of such Act is amended to read as follows: “(2) The provisions of this subsection shall be applicable only in the case of an individual— “(A) with respect to whom at least one of the quarters elapsing prior to 1951 is a quarter of coverage; “(B) except as provided in paragraph (3), who attained age 22 after 1950 and with respect to whom less than six of the quarters elapsing after 1950 are quarters of coverage, or who attained such age before 1951; and “(C) (i) who becomes entitled to benefits under section 202(a) or 223 after the date of the enactment of the Social Security Amendments of 1967, or “(ii) who dies after such date without being entitled to benefits under section 202(a) or 223, or “(iii) whose primary insurance amount is required to be re-computed under section 215(f)(2).” 81 Stat. 865 (3) Section 215(d)(3) of such Act is amended to read as follows: “(3) The provisions of this subsection as in effect prior to the enactment of the Social Security Amendments of 1967 shall be applicable in the case of an individual— “(A) who attained age 21 after 1936 and prior to 1951, or “(B) who had a period of disability which began prior to 1951, but only if the primary insurance amount resulting therefrom is higher than the primary insurance amount resulting from the application of this section (as amended by the Social Security Amendments of 1967) and section 220.”. (4) So much of section 215(f)(2) of such Act as precedes subparagraph (E) is amended to read as follows: “(2) If an individual has wages or self-employment income for a year after 1965 for any part of which he is entitled to old-age insurance benefits, the Secretary shall, at such time or times and within such period as he may by regulations prescribe, recompute such individual’s primary insurance amount with respect to each such year. Such recomputation shall be made as provided in subsection (a)(1) and (3) as though the year with respect to which such recomputation is made is the last year of the period specified in subsection (b)(2)(C). A recomputation under this paragraph with respect to any year shall be effective—” (5) Subparagraphs (E) and (F) of such section 215(f)(2) are redesignated as subparagraphs (A) and (B), respectively. (6) Section 215(f) of such Act is further amended by adding at the end thereof the following new paragraph: “(5) In the case of a man who became entitled to old-age insurance benefits and died before the month in which he attained age 65, the Secretary shall recompute his primary insurance amount as provided in subsection (a) as though he became entitled to old-age insurance benefits in the month in which he died; except that (i) his computation base years referred to in subsection (b)(2) shall include the year in which he died, and (ii) his elapsed years referred to in subsection (b)(3) shall not include the year in which he died or any year thereafter. Such recomputation of such primary insurance amount shall be effective for and after the month in which he died.” (7) (A) The amendments made by paragraphs (4) and (5) shall apply with respect to recomputations made under section 215(f)(2) of the Social Security Act after the date of the enactment of this Act. (B) The amendment made by paragraph (6) shall apply with respect to individuals who die after the date of enactment of this Act. (8) In any case in which— (A) any person became entitled to a monthly benefit under section 202 or 223 of the Social Security Act after the date of enactment of this Act and before February 1968, and (B) the primary insurance amount on which the amount of such benefit is based was determined by applying section 215(d) of the Social Security Act as amended by this Act, such primary insurance amount shall, for purposes of section 215(c) f the Social Security Act. as amended by this Act, be deemed to have been computed on the basis of the Social Security Act in effect prior to the enactment of this Act. (9) The amendment made by paragraphs (1) and (2) shall not apply with respect to monthly benefits for any month prior to January 1967. (b) (1) Section 213 of the Social Security Act is amended by adding at the end thereof the following new subsection: 81 Stat. 866 “Alternative Method for Determining Quarters of Coverage With Respect to Wages in the Period from 1937 to 1950 “(c) For purposes of section 214(a), an individual shall be deemed to have one quarter of coverage for each $400 of his total wages prior to 1951 (as defined in section 215(d)(1)(C)), except where— “(1) 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 him for periods after 1950, or “(2) such individual’s elapsed years (for purposes of section 214(a)(1)) are less than 7.” (2) The amendment made by paragraph (1) shall apply only in the case of an individual who applies for benefits under section 202(a) of the Social Security Act after the date of the enactment of this Act, or who dies after such date without being entitled to benefits under section 202(a) or 223 of the Social Security Act. (c) Section 303(g)(1) of the Social Security Amendments of 1960 is amended— (1) by striking out “section 302 of” and by striking out “Amendments of 1965” and inserting in lieu thereof “Amendments of 1965 and 1967” in the first sentence; and (2) by striking out “after 1965, or dies after 1965” and inserting in lieu thereof “after the date of the enactment of the Social Security Amendments of 1967, or dies after such date”, and by striking out “Amendments of 1965” and inserting in lieu thereof “Amendments of 1967”, in the second sentence.