actuarial reduction of benefit increases to be applied as of time of original entitlement

actuarial reduction of benefit increases to be applied as of time of original entitlement Sec. 331. (a) Section 202(q) (4) of the Social Security Act is amended by striking out all that follows subparagraph (B) and inserting in lieu thereof the following: “then the amount of the reduction of such benefit (after the application of any adjustment under paragraph (7)) for each month beginning with the month of such increase in the primary insurance amount shall be computed under paragraph (1) or (3), whichever applies, as though the increased primary insurance amount had been in effect for and after the month for which the individual first became, entitled to such monthly benefit reduced under such paragraph (1) or (3).”. (b) Section 202(q) of such Act is further amended by adding at the end thereof the following new paragraphs: “(10) For purposes of applying paragraph (4), with respect to monthly benefits payable for any month after December 1977 to an individual who was entitled to a monthly benefit as reduced under paragraph (1) or (3) prior to January 1978, the amount of reduction in such benefit for the first month for which such benefit is increased by reason of an increase in the primary insurance amount of the individual on whose wages and self-employment income such benefit is based and for all subsequent months (and similarly for all subsequent increases) shall be increased by a percentage equal to the percentage increase in such primary insurance amount (such increase being made in accordance with the provisions of paragraph (8)). In the case of an individual whose reduced benefit under this section is increased as a result of the use of an adjusted reduction period or an additional 91 STAT. 1542adjusted reduction period (in accordance with paragraphs (1) and (3) of this subsection), then for the first month for which such increase is effective, and for all subsequent months, the amount of such reduction (after the application of the previous sentence, if applicable) shall be determined— “(A) in the case of old-age, wife’s, and husband’s insurance benefits, by multiplying such amount by the ratio of (i) the number of months in the adjusted reduction period to (ii) the number of months in the reduction period, “(B) in the case of widow’s and widower’s insurance benefits for the month in which such individual attains age 62, by multiplying such amount by the ratio of (i) the number of months in the reduction period beginning with age 62 multiplied by 1940 of 1 percent, plus the number of months in the adjusted reduction period prior to age 62 multiplied by 1940 of 1 percent, plus the number of months in the adjusted additional reduction period multiplied by 43240 of 1 percent to (ii) the number of months in the reduction period multiplied by 1940 of 1 percent, plus the number of months in the additional reduction period multiplied by 43240 of 1 percent, and “(C) in the case of widow’s and widower’s insurance benefits for the month in which such individual attains age 65, by multiplying such amount by the ratio of (i) the number of months in the adjusted reduction period multiplied by 1940 of 1 percent, plus the number of months in the adjusted additional reduction period multiplied by 43240 of 1 percent to (ii) the number of months in the reduction period beginning with age 62 multiplied by 1940 of 1 percent, plus the number of months in the adjusted reduction period prior to age 62 multiplied by 1940 of 1 percent, plus the number of months in the adjusted additional reduction period multiplied by 43240 of 1 percent. such determination being made in accordance with the provisions of paragraph (8). “(11) When an individual is entitled to more than one monthly benefit under this title and one or more of such benefits are reduced under this subsection, paragraph (10) shall apply separately to each such benefit reduced under this subsection before the application of subsection (k) (pertaining to the method by which monthly benefits are offset when an individual is entitled to more than one kind of benefit) and the application of this paragraph shall operate in conjunction with paragraph (3).”. (c) (1) Section 202(q) (7) (C) of such Act is amended by striking out “because” and all that follows and inserting in lieu thereof “because of the occurrence of an event that terminated her or his entitlement to such benefits,”. (2) Section 202(q) (3) (H) of such Act is amended by inserting “for that month or” after “first entitled”. (d) The amendments made by this section shall be effective with respect to monthly benefits payable for months after December 1977.