increases in earnings base

increases in earnings base Sec. 103. (a) (1) Section 230(a) of the Social Security Act is amended by inserting “or (c)” after “determined under subsection (b)” (2) Section 230(b) of such Act is amended by striking out “shall be” in the matter preceding paragraph (1) and inserting in lieu thereof “shall (subject to subsection (c)) be”. (b) Section 230 (c) of such Act is amended— (1) by inserting “(1)” immediately before “the ‘contribution and benefit base’ ”; and (2) by striking out “section.” and inserting in lieu thereof the following: “section, and (2) the ‘contribution and benefit base’ with respect to remuneration paid (and taxable years beginning)— “(A) in 1978 shall be $17,700, “(B) in 1979 shall be $22,900, “(C) in 1980 shall be $25,900, and “(D) in 1981 shall lie$29,700. For purposes of determining under subsection (b) the ‘contribution and benefit base’ with respect to remuneration paid (and taxable years beginning) in 1982 and subsequent years, the dollar amounts specified in clause (2) of the preceding sentence shall be considered to have resulted from the application of such subsection (b) and to be the amount determined (with respect to the years involved) under that subsection. For purposes of determining employer tax liability under section 3221(a) of the Internal Revenue Code of 1954, for purposes of 91 STAT. 1514determining the portion of the employee representative tax liability under section 3211(a) of such Code which results from the application of the 9.5 percent rate specified therein, and for purposes of computing average monthly compensation under section 3(j) of the Railroad Retirement Act of 1974, except with respect to annuity amounts determined under section 3(a) or (3) (f) (3) of such Act, clause (2) and the preceding sentence of this subsection shall be disregarded.”. (c) (1) Section 230 of such Act is further amended by adding at the end thereof the following new subsection: “(d) Notwithstanding any other provision of law, the contribution and benefit base determined under this section for any calendar year after 1976 for purposes of section 4022(b) (3) (B) of Public Law 93–106, with respect to any plan, shall be the contribution and benefit base that would have been determined for such year if this section as in effect immediately prior to the enactment of the Social Security Amendments of 1977 had remained in effect without change.”. (2) The amendment made by paragraph (1) shall apply with respect to plan terminations occurring after the date of the enactment of this Act. (d) (1) The second sentence of section 215(i) (2) (D) (v) of such Act is amended by striking out “is equal to one-twelfth of the new contribution and benefit base” and inserting in lieu thereof “is equal to, or exceeds by less than $5, one-twelfth of the new contribution and benefit base”. (2) The third sentence of section 215(i) (2) (D) (v) of such Act is amended by striking out all that follows “clause (iv)” and inserting in lieu thereof “plus 20 percent of the excess of the second figure in the last line of column III as extended under the preceding sentence over such second figure for the calendar year in which the table of benefits is revised.”.