45 U.S.C. § 231a — Annuity eligibility requirements

Page 43 TITLE 45—RAILROADS § 231a ‘‘(1) that portion of the survivor’s annuity as is pro- vided under section 4(f) of the Railroad Retirement Act of 1974 [section 231c(f) of this title] shall initially be in an amount equal to the amount determined under clause (i) of section 3(a)(6) of the Railroad Re- tirement Act of 1937 [section 228c(a)(6) of this title] for the purpose of computing the last increase in the amount of such survivor’s annuity as computed under the provisions of section 5(q) of the Railroad Retire- ment Act of 1937 [section 228e(q) of this title]: Pro- vided, however, That the amount of such annuity shall be subject to reduction in accordance with the provi- sions of section 202(k) or 202(q) of the Social Security Act [section 402(k) or 402(q) of Title 42] in the same manner as any widow’s insurance benefit, mother’s insurance benefit, widower’s insurance benefit, par- ent’s insurance benefit, or child’s insurance benefit payable under section 202 of the Social Security Act [section 402 of Title 42] and shall also be subject to re- duction in accordance with the provisions of section 4(i)(2) of the Railroad Retirement Act of 1974 [section 231c(i)(2) of this title]; ‘‘(2) that portion of the survivor’s annuity as is pro- vided under section 4(g) of the Railroad Retirement Act of 1974 [section 231c(g) of this title] shall initially be in an amount equal to 30 per centum of the amount computed in accordance with the provisions of paragraph (1) of this section prior to any reduc- tions, other than reductions on account of age, in ac- cordance with the provisions of section 202(k) or 202(q) of the Social Security Act [section 402(k) or 402(q) of Title 42] and prior to any reductions in ac- cordance with, the provisions of section 4(i)(2) of the Railroad Retirement Act of 1974 [section 231c(i)(2) of this title]: Provided, however, That, if such survivor is not entitled to an annuity amount provided under paragraph (3) of this section, such amount shall not be less than an amount which would cause (A) the total of the annuity amounts provided the survivor by the provisions of this section for the month of January 1975 to equal (B) the amount of the annuity which the survivor would have received for such month under section 5 of the Railroad Retirement Act of 1937 [section 228e of this title] (without regard to section 5(i) of that Act [section 228e(i) of this title]) if this Act [enacting this subchapter] had not been enacted; and ‘‘(3) if the survivor is a widow or widower who was entitled to an old-age insurance benefit or a dis- ability insurance benefit under the Social Security Act [section 301 et seq. of Title 42] on December 31, 1974, or was fully insured under that Act on that date, the annuity amounts provided under paragraphs (1) and (2) of this section shall be increased by an amount determined under the provisions of 4(h)(1) of the Railroad Retirement Act of 1974 [section 231c(h)(1) of this title]: Provided, however, That, if the widow or widower was entitled to a monthly insur- ance benefit under the Social Security Act on Decem- ber 31, 1974, such amount shall not be less nor more than an amount which would cause (A) the total of (i) the annuity amounts provided the widow or widower by the provisions of this section for the month of January 1975 plus (ii) the monthly insurance benefit to which such widow or widower is entitled for that month under the Social Security Act (before any de- ductions on account of work) to equal (B) the total of (i) the widow’s or widower’s annuity under the Rail- road Retirement Act of 1937 [subchapter III of this chapter] (without regard to section 5(i) of that Act [section 228e(i) of this title]) plus (ii) the monthly in- surance benefit under the Social Security Act (before any deductions on account of work) which such widow or widower would have received for such month if this Act [enacting this subchapter] had not been enacted. ‘‘SEC. 208. For purposes of paragraph (1) of section 204(a), paragraph (1) of section 206, and paragraph (1) of section 207, the fact that the amount of the annuity payable to an individual, spouse, or survivor under the Railroad Retirement Act of 1937 [subchapter III of this chapter] for the month of December 1974 may not (i) in the case of an individual have been computed under the provisions of section 3(a) of such Act [section 228c(a) of this title] or that part of section 3(e) of such Act [sec- tion 228c(e) of this title] which precedes the first pro- viso; (ii) in the case of a spouse, have been computed under the provisions of section 2 of such Act [section 228b of this title], or (iii) in the case of a survivor, have been computed under the provisions of section 5 of such Act [section 228e of this title], shall be disregarded, and the amount determined under clause (i) of section 3(a)(6) of such Act [section 228c(a)(6) of this title] with respect to such individual, spouse, or survivor shall, for purposes of such paragraphs, be the amount which would have been determined under such clause (i) if the annuity of such individual had been computed under the provisions of section 3(a) [section 228c(a) of this title], and that part of section 3(e) [section 228c(e) of this title] which preceded the first proviso, of such Act; the annuity of such spouse had been computed under the provisions of section 2 of such Act [section 228b of this title]; or the annuity of such survivor had been computed under the provisions of section 5 of such Act [section 228e of this title]. ‘‘SEC. 209. (a) Whenever monthly insurance benefits under section 202 of the Social Security Act [section 402 of Title 42] are increased, the amount of each annuity provided by section 202(a), section 203(a), paragraph (1) of section 204(a), paragraph (1) of section 206, and para- graphs (1) and (2) of section 207 shall be increased in the same manner, and effective the same date as other an- nuities of the same type payable under section 2 of the Railroad Retirement Act of 1974 [section 231a of this title] are increased. ‘‘(b) The annuity amounts provided by section 202(b), section 203(b), paragraph (2) of section 204(a), and para- graph (2) of section 206 shall be increased by the same percentage, or percentages, and effective the same date, or dates, as other annuity amounts of the same type are increased pursuant to the provisions of section 3(g) of the Railroad Retirement Act of 1974 [section 231b(g) of this title]. ‘‘SEC. 210. The election of a joint and survivor annu- ity made before July 31, 1946, by an individual to whom an annuity accrues under the Railroad Retirement Act of 1937 [subchapter III of this chapter] before January 1, 1975, shall be given effect as though the provisions of law under which the election was made had continued to be operative unless such election had been revoked prior to the time the annuity of such individual began to accrue.’’ § 231a. Annuity eligibility requirements (a) Individuals eligible for annuities; disability standards; proof of continued disability (1) The following-described individuals, if they shall have completed ten years of service (or, for purposes of paragraphs (i), (iii), and (v), five years of service, all of which accrues after De- cember 31, 1995) and shall have filed application for annuities, shall, subject to the conditions set forth in subsections (e), (f), and (h), be entitled to annuities in the amounts provided under sec- tion 231b of this title— (i) individuals who have attained retirement age (as defined in section 216(l) of the Social Security Act [42 U.S.C. 416(l)]); (ii) individuals who have attained the age of sixty and have completed thirty years of serv- ice; (iii) individuals who have attained the age of sixty-two and have completed less than thirty years of service, but the annuity of such indi- viduals shall be reduced by 1⁄180 for each of the first 36 months that he or she is under retire- Page 44 TITLE 45—RAILROADS § 231a ment age (as defined in section 216(l) of the So- cial Security Act [42 U.S.C. 416(l)]) when the annuity begins to accrue and by 1⁄240 for each additional month that he or she is under re- tirement age (as defined in section 216(l) of the Social Security Act) when the annuity begins to accrue; (iv) individuals who have a current connec- tion with the railroad industry, whose perma- nent physical or mental condition is such as to be disabling for work in their regular occupa- tion, and who (A) have completed twenty years of service or (B) have attained the age of sixty; and (v) individuals whose permanent physical or mental condition is such that they are unable to engage in any regular employment. (2) For the purposes of paragraph (iv) of sub- division (1), the Board, with the cooperation of employers and employees, shall secure the es- tablishment of standards determining the phys- ical and mental conditions which permanently disqualify employees for work in the several oc- cupations in the railroad industry, and the Board, employers, and employees shall cooper- ate in the promotion of the greatest practicable degree of uniformity in the standards applied by the several employers. An individual’s condition shall be deemed to be disabling for work in his regular occupation if he will have been disquali- fied by his employer for service in his regular occupation in accordance with the applicable standards so established; if the employee will not have been so disqualified by his employer, the Board shall determine whether his condition is disabling for work in his regular occupation in accordance with the standards generally es- tablished; and, if the employee’s regular occupa- tion is not one with respect to which standards will have been established, the standards relat- ing to a reasonably comparable occupation shall be used. If there is no such comparable occupa- tion, the Board shall determine whether the em- ployee’s condition is disabling for work in his regular occupation by determining whether under the practices generally prevailing in in- dustries in which such occupation exists such condition is a permanent disqualification for work in such occupation. For purposes of this subdivision and paragraph (iv) of subdivision (1), an employee’s ‘‘regular occupation’’ shall be deemed to be the occupation in which he will have been engaged in more calendar months than the calendar months in which he will have been engaged in any other occupation during the last preceding five calendar years, whether or not consecutive, in each of which years he will have earned wages or salary, except that, if an employee establishes that during the last fifteen consecutive calendar years he will have been en- gaged in another occupation in one-half or more of all the months in which he will have earned wages or salary, he may claim such other occu- pation as his regular occupation. (3) Such satisfactory proof shall be made from time to time as prescribed by the Board, of the disability provided for in paragraph (iv) or (v) of subdivision (1) and of the continuance of such disability (according to the standards applied in the establishment of such disability) until the employee attains retirement age (as defined in section 216(l) of the Social Security Act [42 U.S.C. 416(l)]). If the individual fails to comply with the requirements prescribed by the Board as to proof of the continuance of the disability until he attains retirement age (as defined in section 216(l) of the Social Security Act), his right to an annuity by reason of such disability shall, except for good cause shown to the Board, cease, but without prejudice to his rights to any subsequent annuity to which he may be entitled. (4) An individual who is entitled to an annuity under paragraph (v) of subdivision (1), but who does not have at least ten years of service, shall, prior to the month in which the individual at- tains age 62, be entitled only to an annuity amount computed under section 231b(a) of this title (without regard to section 231b(a)(2) of this title) or section 231b(f)(3) of this title. Upon at- tainment of age 62, such an individual may also be entitled to an annuity amount computed under section 231b(b) of this title, but such an- nuity amount shall be reduced for early retire- ment in the same manner as if the individual were entitled to an annuity under subsection (a)(1)(iii). (b) Individuals eligible for supplemental annu- ities An individual who— (i) has attained age 60 and completed thirty years of service or attained age 65; (ii) has completed twenty-five years of serv- ice; (iii) is entitled to the payment of an annuity under subsection (a)(1); (iv) had a current connection with the rail- road industry at the time such annuity began to accrue; and (v) has performed compensated service in at least one month prior to October 1, 1981; shall, subject to the conditions set forth in sub- sections (e) and (h), be entitled to a supple- mental annuity in the amount provided under section 231b of this title: Provided, however, That in cases where an individual’s annuity under subsection (a)(1) begins to accrue on other than the first day of the month, the amount of any supplemental annuity to which he is entitled for that month shall be reduced by one-thirtieth for each day with respect to which he is not entitled to an annuity under subsection (a)(1). (c) Spouses eligible for annuities (1) The spouse of an individual, if— (i) such individual (A) is entitled to an annu- ity under subsection (a)(1) and (B) has at- tained the age of 60 and has completed thirty years of service or has attained the age of 62, and (ii) such spouse (A) has attained retirement age (as defined in section 216(l) of the Social Security Act [42 U.S.C. 416(l)]), or (B) has at- tained the age of 60 and such individual has completed thirty years of service, or (C), in the case of a wife, has in her care (individually or jointly with her husband) a child who meets the qualifications prescribed in paragraph (iii) of subsection (d)(1) (without regard to the pro- visions of clause (B) of such paragraph), shall, subject to the conditions set forth in sub- sections (e), (f), and (h), be entitled to a spouse’s Page 45 TITLE 45—RAILROADS § 231a 1 So in original. Probably should be followed by a closing parenthesis. 2 So in original. Probably should be ‘‘employee’s’’. annuity, if he or she has filed application there- for, in the amount provided under section 231c of this title. (2) A spouse who would be entitled to an annu- ity under subdivision (1) or a divorced wife who would be entitled to an annuity under subdivi- sion (4) if he or she had attained retirement age (as defined in section 216(l) of the Social Secu- rity Act [42 U.S.C. 416(l)]) may elect upon or after attaining the age of 62 to receive such an- nuity, but the annuity in any such case shall be reduced by 1⁄144 for each of the first 36 months that the spouse or divorced wife is under retire- ment age (as defined in section 216(l) of the So- cial Security Act) when the annuity begins to accrue and by 1⁄240 for each additional month that the spouse or divorced wife is under retire- ment age (as defined in section 216(l) of the So- cial Security Act) when the annuity begins to accrue, except that the annuity of a divorced wife who was previously entitled to a spouse an- nuity which was reduced under this subdivision shall be reduced by the same percentage as was applicable to the spouse annuity. (3) For the purposes of this subchapter, the term ‘‘spouse’’ shall mean the wife or husband of an annuitant under subsection (a)(1) who (i) was married to such annuitant for a period of not less than one year immediately preceding the day on which the application for a spouse’s an- nuity is filed, or in the month prior to his or her marriage to such annuitant was eligible for an annuity under paragraph (i) or (iv) of subsection (d)(1) or, on the basis of disability, under para- graph (iii) thereof, or is the parent of such annu- itant’s son or daughter; and (ii) in the case of a husband, was receiving at least one-half of his support from his wife at the time his wife’s an- nuity under subsection (a)(1) began. (4) The ‘‘divorced wife’’ (as defined in section 216(d) of the Social Security Act [42 U.S.C. 416(d)]) of an individual, if— (i) such individual has attained the age 62; (ii) such divorced wife (A) has attained re- tirement age (as defined in section 216(l) of the Social Security Act [42 U.S.C. 416(l)] 1 and (B) is not married; and (iii) such divorced wife would have been enti- tled to a benefit under section 202(b) of the So- cial Security Act [42 U.S.C. 402(b)] as the di- vorced wife of such individual if all of such in- dividual’s service as an employee after Decem- ber 31, 1936, had been included in the term ‘‘employment’’ as defined in that Act [42 U.S.C. 301 et seq.]; shall, subject to the conditions set forth in sub- sections (e), (f), and (h), be entitled to a divorced wife’s annuity, if she has filed an application therefor, in the amount provided under section 231c of this title. (d) Survivors eligible for annuities (1) The following described survivors of a de- ceased employee who will have completed ten years of service (or five years of service, all of which accrues after December 31, 1995) and will have had a current connection with the railroad industry at the time of his death shall, subject to the conditions set forth in subsections (g) and (h), be entitled to annuities, if they have filed application therefor, in the amounts provided under section 231c of this title— (i) a widow (as defined in section 216(c) and (k) of the Social Security Act [42 U.S.C. 416(c), (k)]) or widower (as defined in section 216(g) and (k) of the Social Security Act) of such a deceased employee who has not remarried and who (A) will have attained the age of sixty or (B) will have attained the age of fifty but will not have attained age sixty and is under a dis- ability which began before the end of the pe- riod prescribed in subdivision (2), and who, in the case of a widower, was receiving at least one-half of his support from the deceased em- ployee at the time of her death or at the time her annuity under subsection (a)(1) began; (ii) a widow (as defined in section 216(c) and (k) of the Social Security Act [42 U.S.C. 416(c), (k)]) of such a deceased employee who has not remarried and who (A) is not entitled to an an- nuity under paragraph (i), and (B) at the time of filing an application for an annuity under this paragraph, will have in her care a child of such deceased employee, which child is enti- tled to an annuity under paragraph (iii) (other than an annuity payable to a child who has at- tained age 18 and is not under a disability); (iii) a child (as defined in section 216(e) and (k) of the Social Security Act [42 U.S.C. 416(e), (k)]) of such a deceased employee who (A) will be less than eighteen years of age, or (B) will be less than nineteen years of age and a full- time elementary or secondary school student, or (C) will, without regard to his age, be under a disability which began before he attained age twenty-two or before the close of the eighty-fourth month following the month in which his most recent entitlement to an annu- ity under this paragraph terminated because he ceased to be under a disability, and who is unmarried and was dependent upon the em- ployee at the time of the employee’s death; (iv) a parent (as defined in section 202(h)(3) of the Social Security Act [42 U.S.C. 402(h)(3)]) of such a deceased employee who (A) will have attained the age of sixty and (B) will have re- ceived at least one-half of his or her support from such deceased employee at the time of the employees’ 2 death and (C) will not have re- married after the employee’s death: Provided, however, That no parent will be entitled to an annuity under this paragraph on the basis of the deceased employee’s compensation and years of service in any case where such em- ployee died leaving a widow or widower or a child who is, or who might in the future be- come, entitled to an annuity under this sub- section, but neither this proviso nor clause (B) or (C) of this paragraph shall operate to deny any parent an annuity to the extent and in the amount of the benefit that such parent would have received under the Social Security Act [42 U.S.C. 301 et seq.] if the service as an em- ployee of the individual, with respect to which such parent would be eligible to receive an an- nuity under this subchapter except for this proviso and those clauses, were included in Page 46 TITLE 45—RAILROADS § 231a 3 So in original. Probably should not be capitalized. 4 See References in Text note below. 5 So in original. Probably should be section ‘‘202(d)(7)(C)(i)’’. ‘‘employment’’ as defined in the Social Secu- rity Act; and (v) The 3 widow (as defined in section 216(c) of the Social Security Act [42 U.S.C. 416(c)]), who is married, or has been married after the death of the employee, the surviving divorced wife (as defined in section 216(d) of the Social Security Act), and a surviving divorced moth- er (as defined in section 216(d) of the Social Se- curity Act) if such widow, surviving divorced wife, or surviving divorced mother would have been entitled to a benefit under section 202(e) or 202(g) of the Social Security Act [42 U.S.C. 402(e), (g)] as the widow, surviving divorced wife, or surviving divorced mother of the em- ployee if all of his service as an employee after December 31, 1936, had been included in the term ‘‘employment’’ as defined in that Act. For the purpose of this paragraph, the ref- erence in sections 202(e)(3) 4 and 202(g)(3) of the Social Security Act to an individual entitled under section 202(f) of that Act shall include an individual entitled to an annuity under paragraph (i) and an individual entitled to an annuity under paragraph (ii), and the ref- erence in section 202(e)(3) 4 and section 202(g)(3) of the Social Security Act to an individual en- titled under section 202(d) or section 202(h) of that Act shall include an individual entitled to an annuity under paragraph (iii) or para- graph (iv), and the references in section 202(g)(3) of the Social Security Act to an indi- vidual entitled under section 202(a) or section 223(a) of that Act [42 U.S.C. 402(a), 423(a)] shall include an individual entitled to an annuity under subsection (a)(1) of this section. (2) The period referred to in clause (B) of sub- division (1)(i) is the period (i) beginning with the latest of (A) the month of the employee’s death, (B) in the case of a widow, the last month for which she was entitled to an annuity under paragraph (ii) of subdivision (1) as the widow of the deceased employee, or (C) the month in which the widow’s or widower’s previous entitle- ment to an annuity as the widow or widower of the deceased employee terminated because her or his disability had ceased and (ii) ending with the month before the month in which she or he attains age sixty, or, if earlier, with the close of the eighty-fourth month following the month with which such period began. (3) For purposes of paragraph (i) or (iii) of sub- division (1), a widow, widower, or child shall be under a disability if her or his permanent phys- ical or mental condition is such that she or he is unable to engage in any regular employment. The provisions of subsection (a)(3) of this sec- tion as to the proof of disability shall apply with regard to determinations with respect to dis- ability under subdivision (1). (4) In determining for purposes of this sub- section and subdivision (3) of subsection (c) whether an applicant is the wife, husband, widow, widower, child, or parent of a deceased employee as claimed, the rules set forth in sec- tion 216(h) of the Social Security Act [42 U.S.C. 416(h)] shall be applied deeming, for this pur- pose, individuals entitled to an annuity under subsection (c) to be entitled to benefits under subsection (b) or (c) of section 202 of the Social Security Act [42 U.S.C. 402] and individuals enti- tled to an annuity under paragraph (i) or (ii) of subsection (d)(1) to be entitled to a benefit under subsection (e), (f), or (g) of section 202 of the So- cial Security Act. For purposes of paragraph (iii) of subdivision (1), a child shall be deemed to have been dependent upon his parent employee if the conditions set forth in section 202(d)(3), (4), or (9) of the Social Security Act are fulfilled. The provisions of paragraph (7) of section 202(d) of the Social Security Act (defining the terms ‘‘full-time elementary or secondary school stu- dent’’ and ‘‘elementary or secondary school’’) shall be applied by the Board in the administra- tion of this subsection as if the references there- in to the Secretary were references to the Board. A child who attains age nineteen at a time when he is a full-time elementary or sec- ondary school student (as defined in subpara- graph (A) of paragraph (7) of section 202(d) of the Social Security Act and without the application of subparagraph (B) of such paragraph) but has not (at such time) completed the requirements for, or received, a diploma or equivalent certifi- cate from a secondary school (as defined in sec- tion 202(d)(7)(c)(i) 5 of the Social Security Act) shall be deemed (for purposes of determining his continuing or initial entitlement to an annuity under this subsection) not to have attained such age until the first day of the first month fol- lowing the end of the quarter or semester in which he is enrolled at such time (or, if the ele- mentary or secondary school in which he is en- rolled is not operated on a quarter or semester system, until the first day of the first month fol- lowing the completion of the course in which he is enrolled or until the first day of the third month beginning after such time, whichever first occurs). (e) Compensated service; rights to return (1) No individual shall be entitled to an annu- ity under subsection (a)(1) until he shall have ceased to render compensated service to an em- ployer as defined in section 231(a) of this title. (2) An annuity under subsection (a)(1) shall be paid only if the applicant shall have relin- quished such rights as he may have to return to the service of an employer: Provided, however, That this requirement shall not apply to indi- viduals mentioned in paragraphs (iv) and (v) of subsection (a)(1) prior to attaining retirement age (as defined in section 216(l) of the Social Se- curity Act [42 U.S.C. 416(l)]): Provided further, That, notwithstanding the provisions of the pre- ceding proviso and of clause (i) of subsection (c)(1) of this section, an annuity shall be paid to the spouse of an individual only if such indi- vidual shall have satisfied the requirements of this subdivision without regard to the preceding proviso: And provided further, That, notwith- standing the provisions of the first proviso of this subdivision and of clause (iii) of subsection (b)(1) of this section, a supplemental annuity shall be paid to an individual only if such indi- vidual shall have satisfied the requirements of this subdivision without regard to the first pro- viso thereof. Page 47 TITLE 45—RAILROADS § 231a 6 So in original. Probably should be ‘‘calendar’’. (3) No annuity under subsection (a)(1) or sup- plemental annuity under subsection (b)(1) shall be paid with respect to any month in which an individual in receipt of an annuity or supple- mental annuity thereunder shall render com- pensated service to an employer. Individuals re- ceiving annuities under subsection (a)(1) shall report to the Board immediately all such com- pensated service. (4) No annuity under paragraph (iv) or (v) of subsection (a)(1) shall be paid to an individual with respect to any month in which the indi- vidual is under retirement age (as defined in sec- tion 216(l) of the Social Security Act [42 U.S.C. 416(l)]) and is paid more than the monthly allow- able earnings as defined in the section (after de- duction of disability related work expenses) from employment or self-employment of any form: Provided, however, That for purposes of this subdivision, if a payment in any one cal- endar month is for accruals in more than one calendar month, such payment shall be deemed to have been paid in each of the months in which accrued to the extent accrued in such month. Any such individual under the retire- ment age (as defined in section 216(l) of the So- cial Security Act) shall report to the Board any such payment of earnings for such employment or self-employment before receipt and accept- ance of an annuity for the second month fol- lowing the month of such payment. A deduction shall be imposed, with respect to any such indi- vidual who fails to make such report, in the an- nuity or annuities otherwise due the individual, in an amount equal to the amount of the annu- ity for each month in which he is paid such earnings in such employment or self-employ- ment, except that the first deduction imposed pursuant to this sentence shall in no case exceed an amount equal to the amount of the annuity otherwise due for the first month with respect to which the deduction is imposed. If pursuant to the first sentence of this subdivision an annu- ity was not paid to an individual with respect to one or more months in any calendar year, and it is subsequently established that the total amount of such individual’s earnings during such year as determined in accordance with that sentence (but exclusive of earnings for services described in subdivision (3)) did not exceed the amount of earnings computed by totaling the monthly allowable earnings as determined under this section for each month in the year (after deduction of disability related work expenses), the annuity with respect to such month or months, and any deduction imposed by reason of the failure to report earnings for such month or months under the third sentence of this subdivi- sion, shall then be payable. If the total amount of such individual’s earnings during such year (exclusive of earnings for services as described in subdivision (3) and after deduction of dis- ability related work expenses) is in excess of the annual allowable earnings amount, the number of months in such year with respect to which an annuity is not payable by reason of the first and third sentences shall not exceed the number of months derived by dividing the amount by which such annual earnings exceed the annual allowable earnings amount by the monthly al- lowable earning amount determined under this section. If the computation under the preceding sentence results in a remainder greater than or equal to one-half, the number of months for which an annuity is not payable as determined under the preceding sentence shall be increased by one. The annual allowable earnings amount shall be computed by totaling the amount of monthly allowable earnings as determined under the first sentence of this subdivision for each month in the calender 6 year. If the amount of the individual’s annuity has changed during the calendar year, any payment of annuities which become payable solely by reason of the limita- tions in the preceding three sentences shall be made first with respect to the month or months for which the annuity is larger. For purposes of this subdivision, ‘‘the monthly allowable earn- ings’’ shall be $700, except that for each year after 2007, ‘‘the monthly allowable earnings’’ amount shall be the larger of the amount for the previous year or the amount calculated by mul- tiplying $700 by the ratio of the national average wage index for the year 2 calender 6 years before the year for which the amount is being cal- culated to the national average wage index for the year 2005. The amount so computed will be rounded to the next higher multiple of $10 where such amount is a multiple of $5 but not of $10 and to the nearest multiple of $10 in any other case. (5) The annuity of a spouse or divorced wife under subsection (c) shall, with respect to any month, be subject to the same provisions of this subsection as the individual’s annuity. In addi- tion, the annuity of a spouse under subsection (c) shall not be payable for any month if the in- dividual’s annuity under subsection (a)(1) is not payable for such month by reason of the provi- sions of this subsection. (f) Deductions on account of work (1) That portion of the individual’s annuity as is computed under section 231b(a) of this title on the basis of (A) his compensation and years of service subsequent to December 31, 1974, and (B) his wages and self-employment income derived from employment and self-employment under the Social Security Act [42 U.S.C. 301 et seq.] and that portion of the individual’s annuity as is computed under section 231b(h) of this title shall be subject to deductions on account of work pur- suant to the provisions of section 203 of the So- cial Security Act [42 U.S.C. 403] in the same manner as if such portion of such annuity were a monthly insurance benefit under that Act: Provided, however, That the provisions of this subdivision shall be applicable to the annuity of an individual only if such individual would be fully insured under the Social Security Act on the basis of wages and self-employment income derived from employment and self-employment under that Act and on the basis of compensation derived from service as an employee after De- cember 31, 1974, if such service as an employee had been included in the term ‘‘employment’’ as defined in that Act. Any person in receipt of an annuity subject to deduction under this sub- section shall report to the Board the receipt of excess earnings as defined in paragraph (3) of section 203(f) of the Social Security Act. Page 48 TITLE 45—RAILROADS § 231a (2) That portion of the spouse’s or divorced wife’s annuity under subsection (c) which is de- rived from the portion of the individual’s annu- ity subject to deductions under subdivision (1) and that portion of the spouse’s or divorced wife’s annuity as is computed under section 231c(e) of this title shall be subject to deductions on account of work pursuant to the provisions of section 203 of the Social Security Act [42 U.S.S. 403] in the same manner as if such portion of such spouse’s or divorced wife’s annuity were a monthly insurance benefit under that Act. In addition, such portion of the spouse’s or di- vorced wife’s annuity shall be subject to deduc- tions if the individual’s annuity is subject to de- ductions under subdivision (1) in the same man- ner as if such portion of such spouse’s or di- vorced wife’s annuity were a monthly insurance benefit under the Social Security Act [42 U.S.C. 301 et seq.]. (3) Deductions shall not be made pursuant to subdivision (1) from that portion of an individ- ual’s annuity as is computed under section 231b(a) of this title for any month in which the annuity of such individual is reduced pursuant to section 231b(m) of this title. This subdivision shall be disregarded in determining the applica- bility and amount of deductions in a spouse’s annuity pursuant to subdivision (2) of this sub- section. (4) Deductions shall not be made pursuant to subdivision (2) from that portion of a spouse’s annuity as is computed under section 231c(a) of this title for any month in which the annuity of such spouse is reduced due to entitlement to a benefit under title II of the Social Security Act [42 U.S.C. 401 et seq.]. (5) If an annuity begins to accrue on other than the first day of a month, subdivisions (1) and (2) of this subsection shall not apply in the year the annuity begins to accrue if the annu- itant has no earnings in excess of the monthly exempt amount in such year after the annuity beginning date. (6)(A) Except as provided in subparagraph (B)— (i) that portion of the annuity for any month of an individual as is computed under section 231b(b) of this title and as adjusted under sec- tion 231b(g) of this title, plus any supple- mental amount for such month under section 231b(e) of this title, and that portion of the an- nuity for any month of a spouse as is com- puted under section 231c(b) of this title and as adjusted under section 231c(d) of this title, shall each be subject to a deduction of $1 for each $2 of compensation received by such indi- vidual from compensated service rendered in such month to the last person, or persons, by whom such individual was employed before the date on which the annuity of such individual under subsection (a)(1) began to accrue; and (ii) that portion of the annuity for any month of a spouse as is computed under sec- tion 231c(b) of this title and as adjusted under section 231c(d) of this title shall be subject to a deduction of $1 for each $2 of compensation received by such spouse from compensated service rendered in such month to the last per- son, or persons, by whom such spouse was em- ployed before the date on which the annuity of such spouse under subsection (c)(1) began to accrue. (B) Any deductions imposed by this subdivi- sion for any month shall not exceed 50 percent of the annuity amount for such month to which such deductions apply. (g) Employment compensation of survivors; de- ductions (1) No annuity shall be paid to a survivor under subsection (d) with respect to any month in which such survivor renders service for com- pensation as an employee of an employer. Sur- vivors receiving annuities under subsection (d) shall report to the Board immediately all such service for compensation. (2) Deductions, in amounts and at such time or times as the Board shall determine, shall be made from any payments to which a survivor is entitled under subsection (d) until the total of such deductions equals such survivor’s annuity under that subsection for any month, if for such month such survivor would be charged with ex- cess earnings under section 203(f) of the Social Security Act [42 U.S.C. 403(f)] or, having engaged in any activity outside the United States, would be charged under such section 203(f) of the So- cial Security Act [42 U.S.C. 403(f)] with any ex- cess earnings derived from such activity if it had been an activity within the United States. For purposes of this subdivision the Board shall have the authority to take such actions and to make such determinations and such suspensions of payment of benefits in the manner and to the extent that the Secretary of Health and Human Services would be authorized to take or to make under section 203(h)(3) of the Social Security Act if the survivors were receiving the annuities to which this subdivision applies under section 202 of the Social Security Act [42 U.S.C. 402]: Provided, however, That in determining a sur- vivor’s excess earnings for a year for the pur- poses of this subdivision there shall not be in- cluded his income from employment or self-em- ployment during months beginning with the month with respect to which he ceases to be qualified for an annuity. Survivors receiving an- nuities under subsection (d) shall report to the Board the receipt of excess earnings described in this subdivision. (h) Military service; reductions (1) Repealed. Pub. L. 98–76, title IV, § 414(a), Aug. 12, 1983, 97 Stat. 436. (2) The supplemental annuity provided an indi- vidual by subsection (b) shall, with respect to any month, be reduced by the amount of the supplemental pension, attributable to the em- ployer’s contribution, that such individual is en- titled to receive for that month under any other supplemental pension plan: Provided, however, That the maximum of such reduction shall be equal to the amount of the supplemental annu- ity less any amount by which the supplemental pension is reduced by reason of the supple- mental annuity. (3) If a spouse or divorced wife entitled to an annuity under subsection (c) or a survivor enti- tled to an annuity under subsection (d) for any month is also entitled to annuity under sub- section (a)(1) for such month, the annuity under Page 49 TITLE 45—RAILROADS § 231a subsection (c) or (d) shall be reduced, but not below zero, by an amount equal to the annuity under subsection (a)(1): Provided, however, That the provisions of this subdivision shall not apply if either the spouse or survivor or the individual upon whose earnings record the spouse’s or sur- vivor’s annuity under subsection (c) or (d) is based rendered service as an employee to an em- ployer, or as an employee representative, prior to January 1, 1975. (4) If an annuitant is entitled to more than one annuity under subsections (c) and (d) for a month, such annuitant shall be entitled to only the larger of such annuities for such month, ex- cept that, if such annuitant so elects, he shall instead be entitled to only the smaller of such annuities for such month. (i) Limitation; service accrued after 1995 An individual entitled to an annuity under this section who has completed five years of service, all of which accrues after 1995, but who has not completed ten years of service, and the spouse, divorced spouse, and survivors of such individual, shall not be entitled to an annuity amount provided under section 231b(a), section 231c(a), or section 231c(f) of this title unless the individual, or the individual’s spouse, divorced spouse, or survivors, would be entitled to a ben- efit under title II of the Social Security Act [42 U.S.C. 401 et seq.] on the basis of the individual’s employment record under both this subchapter and title II of the Social Security Act. (Aug. 29, 1935, ch. 812, § 2, as restated June 24, 1937, ch. 382, pt. I, 50 Stat. 307, as restated Pub. L. 93–445, title I, § 101, Oct. 16, 1974, 88 Stat. 1312; amended Pub. L. 96–88, title V, § 509(b), Oct. 17, 1979, 93 Stat. 695; Pub. L. 97–35, title XI, § 1117, Aug. 13, 1981, 95 Stat. 628; Pub. L. 98–76, title I, §§ 104(a), (b), 106(a)–(g), title IV, §§ 409(a), 413(a), 414(a), 415, Aug. 12, 1983, 97 Stat. 416–418, 435, 436; Pub. L. 100–647, title VII, §§ 7302(a), (b), 7303(a), Nov. 10, 1988, 102 Stat. 3777, 3778; Pub. L. 107–90, title I, § 103(a), (c), (d), Dec. 21, 2001, 115 Stat. 880; Pub. L. 109–280, title X, § 1002(a), Aug. 17, 2006, 120 Stat. 1053; Pub. L. 109–478, § 2(a), Jan. 12, 2007, 120 Stat. 3573.) Editorial Notes REFERENCES IN TEXT The Social Security Act, referred to in subsecs. (c)(4), (d)(1)(iv), (f)(1), (2), (4), and (i), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, which is classified generally to chapter 7 (§ 301 et seq.) of Title 42, The Public Health and Wel- fare. Title II of the Act is classified generally to sub- chapter II (§ 401 et seq.) of chapter 7 of Title 42. For complete classification of this Act to the Code, see sec- tion 1305 of Title 42 and Tables. Paragraph (3) of section 202(e) of the Social Security Act [42 U.S.C. 402(e)(3)], referred to in subsec. (d)(1)(v), was repealed, and paragraph (4) of section 202(e) of that Act was redesignated as paragraph (3) of section 202(e) and was further amended, by Pub. L. 98–21, title I, § 131(a)(1)–(3)(A), Apr. 20, 1983, 97 Stat. 92. AMENDMENTS 2007—Subsec. (e)(4). Pub. L. 109–478, § 2(a)(3), sub- stituted ‘‘If the total amount of such individual’s earn- ings during such year (exclusive of earnings for services as described in subdivision (3) and after deduction of disability related work expenses) is in excess of the an- nual allowable earnings amount, the number of months in such year with respect to which an annuity is not payable by reason of the first and third sentences shall not exceed the number of months derived by dividing the amount by which such annual earnings exceed the annual allowable earnings amount by the monthly al- lowable earning amount determined under this section. If the computation under the preceding sentence re- sults in a remainder greater than or equal to one-half, the number of months for which an annuity is not pay- able as determined under the preceding sentence shall be increased by one. The annual allowable earnings amount shall be computed by totaling the amount of monthly allowable earnings as determined under the first sentence of this subdivision for each month in the calender year. If the amount of the individual’s annuity has changed during the calendar year, any payment of annuities which become payable solely by reason of the limitations in the preceding three sentences shall be made first with respect to the month or months for which the annuity is larger. For purposes of this sub- division, ‘the monthly allowable earnings’ shall be $700, except that for each year after 2007, ‘the monthly al- lowable earnings’ amount shall be the larger of the amount for the previous year or the amount calculated by multiplying $700 by the ratio of the national average wage index for the year 2 calender years before the year for which the amount is being calculated to the na- tional average wage index for the year 2005. The amount so computed will be rounded to the next higher multiple of $10 where such amount is a multiple of $5 but not of $10 and to the nearest multiple of $10 in any other case.’’ for ‘‘If the total amount of such individ- ual’s earnings during such year (exclusive of earnings for services described in subdivision (3)) is in excess of $4,800 (after deduction of disability related work ex- penses), the number of months in such year with re- spect to which an annuity is not payable by reason of such first and third sentences shall not exceed one month for each $400 of such excess, treating the last $200 or more of such excess as $400; and if the amount of the annuity has changed during such year, any pay- ments of annuities which become payable solely by rea- son of the limitations contained in this sentence shall be made first with respect to the month or months for which the annuity is larger.’’ Pub. L. 109–478, § 2(a)(1), (2), substituted ‘‘the monthly allowable earnings as defined in the section’’ for ‘‘$400 in earnings’’ in first sentence and ‘‘the amount of earn- ings computed by totaling the monthly allowable earn- ings as determined under this section for each month in the year’’ for ‘‘$4,800’’ in fourth sentence. 2006—Subsec. (c)(4)(i). Pub. L. 109–280, § 1002(a)(1), struck out ‘‘(A) is entitled to an annuity under sub- section (a)(1) of this section and (B)’’ after ‘‘such indi- vidual’’. Subsec. (e)(5). Pub. L. 109–280, § 1002(a)(2), struck out ‘‘or divorced wife’’ after ‘‘In addition, the annuity of a spouse’’. 2001—Subsec. (a)(1). Pub. L. 107–90, § 103(a)(1), inserted ‘‘(or, for purposes of paragraphs (i), (iii), and (v), five years of service, all of which accrues after December 31, 1995)’’ after ‘‘ten years of service’’ in introductory pro- visions. Subsec. (a)(4). Pub. L. 107–90, § 103(a)(2), added par. (4). Subsec. (d)(1). Pub. L. 107–90, § 103(c), inserted ‘‘(or five years of service, all of which accrues after Decem- ber 31, 1995)’’ after ‘‘ten years of service’’ in introduc- tory provisions. Subsec. (i). Pub. L. 107–90, § 103(d), added subsec. (i). 1988—Subsec. (e)(1). Pub. L. 100–647, § 7302(a)(1), struck out ‘‘any person, whether or not’’ after ‘‘compensated service to’’ and ‘‘(but with the right to engage in other employment to the extent not prohibited by subdivi- sion (3) or (4) of this subsection or by subsection (f) of this section). As used in this subsection, the term ‘com- pensated service’ shall not include any service as an elected public official of the United States, a State, or any political subdivision of a State’’ after ‘‘section 231(a) of this title’’. Subsec. (e)(2). Pub. L. 100–647, § 7302(a)(2), struck out ‘‘and of the person, or persons, by whom he was last employed’’ after ‘‘service of an employer’’. Page 50 TITLE 45—RAILROADS § 231a Subsec. (e)(3). Pub. L. 100–647, § 7302(a)(3), struck out ‘‘or to the last person, or persons, by whom he was em- ployed prior to the date on which the annuity under subsection (a)(1) of this section began to accrue’’ after ‘‘service to an employer’’. Subsec. (e)(4). Pub. L. 100–647, § 7303(a), substituted ‘‘$400 in earnings (after deduction of disability related work expenses)’’ for ‘‘$200 in earnings’’, ‘‘$4,800 (after deduction of disability related work expenses)’’ for ‘‘$2,400’’ in two places, ‘‘each $400’’ for ‘‘each $200’’, ‘‘$200’’ for ‘‘$100’’, and ‘‘as $400’’ for ‘‘as $200’’. Subsec. (f)(6). Pub. L. 100–647, § 7302(b), added par. (6). 1983—Subsec. (a)(1)(i). Pub. L. 98–76, § 106(a)(1), sub- stituted ‘‘retirement age (as defined in section 216(l) of the Social Security Act)’’ for ‘‘the age of sixty-five’’. Subsec. (a)(1)(iii). Pub. L. 98–76, § 106(a)(2), substituted ‘‘reduced by 1⁄180 for each of the first 36 months that he or she is under retirement age (as defined in section 216(l) of the Social Security Act) when the annuity be- gins to accrue and by 1⁄240 for each additional month that he or she is under retirement age (as defined in section 216(l) of the Social Security Act) when the an- nuity begins to accrue’’ for ‘‘reduced by 1⁄180 for each calendar month that he or she is under age sixty-five when the annuity begins to accrue’’. Subsec. (a)(3). Pub. L. 98–76, § 106(b), which directed the substitution of ‘‘retirement age (as defined in sec- tion 216(l) of the Social Security Act)’’ for ‘‘the age of 65’’ and ‘‘the age of sixty-five years’’ was executed by substituting that phrase for ‘‘the age of sixty-five’’ and ‘‘the age of sixty-five years’’. Subsec. (c)(1)(ii). Pub. L. 98–76, § 106(c), substituted ‘‘retirement age (as defined in section 216(l) of the So- cial Security Act)’’ for ‘‘the age of 65’’. Subsec. (c)(2). Pub. L. 98–76, § 106(d), substituted ‘‘re- tirement age (as defined in section 216(l) of the Social Security Act)’’ for ‘‘the age of 65’’ and ‘‘reduced by 1⁄144 for each of the first 36 months that the spouse or di- vorced wife is under retirement age (as defined in sec- tion 216(l) of the Social Security Act) when the annuity begins to accrue and by 1⁄240 for each additional month that the spouse or divorced wife is under retirement age (as defined in section 216(l) of the Social Security Act) when the annuity begins to accrue’’ for ‘‘reduced by 1⁄144 for each calendar month that the spouse or di- vorced wife is under age 65 when the annuity begins to accrue’’. Pub. L. 98–76, § 409(a), inserted ‘‘, except that the an- nuity of a divorced wife who was previously entitled to a spouse annuity which was reduced under this subdivi- sion shall be reduced by the same percentage as was ap- plicable to the spouse annuity’’ before the period. Subsec. (c)(3). Pub. L. 98–76, § 415, struck out ‘‘, if, as of the day on which the application for a spouse’s annu- ity is filed, such wife or husband and such annuitant were members of the same household, or such wife or husband was receiving regular contributions from such annuitant toward her or his support, or such annuitant has been ordered by any court to contribute to the sup- port of such wife or husband’’ after ‘‘annuitant’s son or daughter’’. Subsec. (c)(4)(ii)(A). Pub. L. 98–76, § 106(e), substituted ‘‘retirement age (as defined in section 216(l) of the So- cial Security Act’’ for ‘‘the age of 65’’. Subsec. (d)(1)(iii)(B). Pub. L. 98–76, § 104(a), sub- stituted ‘‘nineteen years of age and a full-time elemen- tary or secondary school student’’ for ‘‘twenty-two years of age and a full-time student at an educational institution’’. Subsec. (d)(1)(iv). Pub. L. 98–76, § 413(a), inserted ‘‘, but neither this proviso nor clause (B) or (C) of this paragraph shall operate to deny any parent an annuity to the extent and in the amount of the benefit that such parent would have received under the Social Secu- rity Act if the service as an employee of the individual, with respect to which such parent would be eligible to receive an annuity under this subchapter except for this proviso and those clauses, were included in ‘em- ployment’ as defined in the Social Security Act’’. Subsec. (d)(4). Pub. L. 98–76, § 104(b), substituted ‘‘full- time elementary or secondary school student’’ for ‘‘full-time student’’ and ‘‘elementary or secondary school’’ for ‘‘educational institution’’, in two places, ‘‘nineteen’’ for ‘‘twenty-two’’, and ‘‘diploma or equiva- lent certificate from a secondary school (as defined in section 202(d)(7)(c)(1) of the Social Security Act)’’ for ‘‘degree from a four-year college or university’’. Subsec. (e)(2). Pub. L. 98–76, § 106(f), substituted ‘‘re- tirement age (as defined in section 216(l) of the Social Security Act)’’ for ‘‘age sixty-five’’. Subsec. (e)(4). Pub. L. 98–76, § 106(g), substituted ‘‘re- tirement age (as defined in section 216(l) of the Social Security Act)’’ for ‘‘age sixty-five’’ and ‘‘age of sixty- five’’. Subsec. (h)(1). Pub. L. 98–76, § 414(a), struck out par. (1) relating to a reduction of annuities of individuals whose military service credited under section 231b(i)(2) of this title was used as a basis or partial basis for a pension, disability compensation, or any other gratu- itous benefits payable on a periodic basis under any other Act. 1981—Subsec. (b). Pub. L. 97–35, § 1117(a), struck out subdiv. (1) designation, substituted ‘‘conditions set forth in subsections (e)’’ for ‘‘conditions set forth in subdivision (2) of this subsection and in subsections (e)’’, added par. (v), and struck out subdivs. (2) and (3), which provided for supplementary annuity for the pe- riod after an individual renders service as an employee for compensation after his supplemental annuity clos- ing date with two provisos, and that such provisions shall not supersede the provisions of any agreement reached through collective bargaining providing for mandatory retirement at an age less than the applica- ble supplemental annuity closing date. Subsec. (c)(2), (4). Pub. L. 97–35, § 1117(b), substituted ‘‘subdivision (1) or a divorced wife who would be enti- tled to an annuity under subdivision (4) if he or’’ for ‘‘subdivision (1) if he or’’, ‘‘by 1⁄144 for each calendar month that the spouse or divorced wife is’’ for ‘‘by 1⁄180 for each calendar month that the spouse is’’ in subdiv. (2), and added subdiv. (4). Subsec. (d)(1)(v). Pub. L. 97–35, § 1117(c), added par. (v). Subsec. (e)(5). Pub. L. 97–35, § 1117(d), substituted ‘‘spouse or divorced wife’’ for ‘‘spouse’’ in two places. Subsec. (f)(2). Pub. L. 97–35, § 1117(e)(1), substituted ‘‘spouse’s or divorced wife’s annuity’’ for ‘‘spouse’s an- nuity’’ in five places. Subsec. (f)(3) to (5). Pub. L. 97–35, § 1117(e)(2), added subdivs. (3) to (5). Subsec. (g)(2). Pub. L. 97–35, § 1117(f), substituted ‘‘such survivor would be charged with’’ for ‘‘such sur- vivor is under the age of seventy-two and is charged with’’. Subsec. (h). Pub. L. 97–35, § 1117(g), substituted ‘‘the spouse or divorced wife of such individual’’ for ‘‘the spouse of such individual’’ in subdiv. (1), and ‘‘If a spouse or divorced wife entitled’’ for ‘‘If a spouse enti- tled’’ in subdiv. (3). Statutory Notes and Related Subsidiaries CHANGE OF NAME ‘‘Secretary of Health and Human Services’’ sub- stituted for ‘‘Secretary of Health, Education, and Wel- fare’’ in subsec. (g)(2), pursuant to section 509(b) of Pub. L. 96–88, which is classified to section 3508(b) of Title 20, Education. EFFECTIVE DATE OF 2007 AMENDMENT Pub. L. 109–478, § 2(b), Jan. 12, 2007, 120 Stat. 3574, pro- vided that: ‘‘The amendments made by this section [amending this section] take effect January 1, 2007.’’ EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109–280, title X, § 1002(b), Aug. 17, 2006, 120 Stat. 1053, provided that: ‘‘The amendments made by this section [amending this section] shall take effect 1 year after the date of the enactment of this Act [Aug. 17, 2006].’’ EFFECTIVE DATE OF 2001 AMENDMENT Amendment by Pub. L. 107–90 effective Jan. 1, 2002, see section 103(j) of Pub. L. 107–90, set out as a note Page 51 TITLE 45—RAILROADS § 231b under section 405 of Title 42, The Public Health and Welfare. EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–647, title VII, § 7302(c), Nov. 10, 1988, 102 Stat. 3777, provided that: ‘‘The amendments made by this section [amending this section] shall apply to an- nuities payable under the Railroad Retirement Act of 1974 [this subchapter] for months beginning after the date of enactment of this Act [Nov. 10, 1988].’’ Pub. L. 100–647, title VII, § 7303(b), Nov. 10, 1988, 102 Stat. 3778, provided that: ‘‘The amendments made by this section [amending this section] shall apply with respect to months in calendar years beginning after De- cember 31, 1988.’’ EFFECTIVE DATE OF 1983 AMENDMENT Pub. L. 98–76, title I, § 104(d), Aug. 12, 1983, 97 Stat. 416, provided that: ‘‘The amendments made by this section [amending this section and section 231d of this title] shall be effective with respect to annuities accruing for months after the month in which this Act is enacted [August, 1983] except in the case of a child who has at- tained the age of eighteen in or before the month in which this Act is enacted and is entitled to an annuity under section 2(d) of the Railroad Retirement Act of 1974 [subsec. (d) of this section] for the month in which this Act is enacted or, if earlier, for the month of April 1983.’’ Pub. L. 98–76, title I, § 106(k), Aug. 12, 1983, 97 Stat. 418, provided that: ‘‘The amendments made by this sec- tion [amending this section and sections 231c and 231d of this title] shall be effective on the date of the enact- ment of this Act [Aug. 12, 1983], except that such amendment shall not apply to annuity amounts pro- vided under sections 3(b) and 4(b) of the Railroad Re- tirement Act of 1974 or to increases in such annuity amounts provided under sections 3(g) and 4(d) of such Act if the individual upon whose earning record such annuity amounts are based rendered service as an em- ployee to an employer, or as an employee representa- tive, before the date of the enactment of this Act.’’ Pub. L. 98–76, title IV, § 409(b), Aug. 12, 1983, 97 Stat. 435, provided that: ‘‘The amendment made by this sec- tion [amending this section] shall be effective with re- spect to divorced wife annuities awarded on and after the date of enactment [Aug. 12, 1983].’’ Pub. L. 98–76, title IV, § 413(b), Aug. 12, 1983, 97 Stat. 436, provided that: ‘‘The amendment made by this sec- tion [amending this section] shall apply with respect to annuities that first begin to accrue with respect to any month beginning after the date of the enactment of this Act [Aug. 12, 1983].’’ Pub. L. 98–76, title IV, § 414(b), Aug. 12, 1983, 97 Stat. 436, provided that: ‘‘The amendments made by this sec- tion [amending this section] shall apply with respect to months beginning after the date of the enactment of this Act [Aug. 12, 1983].’’ EFFECTIVE DATE OF 1981 AMENDMENT Amendment by section 1117(a) of Pub. L. 97–35 effec- tive Oct. 1, 1981, and applicable with respect to individ- uals whose supplemental annuity closing date under subsec. (b) of this section did not occur before Oct. 1, 1981, amendment by section 1117(e)(2), (f) of Pub. L. 97–35 effective Jan. 1, 1982, and amendment by other provisions of section 1117 of Pub. L. 97–35 effective Oct. 1, 1981, and applicable with respect to annuities award- ed on or after Oct. 1, 1981, see section 1129 of Pub. L. 97–35, set out as a note under section 231 of this title. SPECIAL $50 PAYMENT UNDER TAX REDUCTION ACT OF 1975 Special payment of $50 as soon as practicable after Mar. 29, 1975, by Secretary of the Treasury to each indi- vidual who, for month of March 1975, was entitled to a monthly annuity or pension payment under this sub- chapter, see section 702 of Pub. L. 94–12, set out as a note under section 402 of Title 42, The Public Health and Welfare. § 231b. Computation of annuities (a) Amount (1) The annuity of an individual under section 231a(a)(1) of this title shall be in an amount equal to the amount (before any reduction on account of age and before any deductions on ac- count of work) of the old-age insurance benefit or disability insurance benefit to which such in- dividual would have been entitled under the So- cial Security Act [42 U.S.C. 301 et seq.] if all of his or her service as an employee after Decem- ber 31, 1936, had been included in the term ‘‘em- ployment’’ as defined in that Act. (2) For purposes of this subsection, individuals entitled to an annuity under section 231a(a)(1)(ii) of this title shall, except for the purposes of recomputations in accordance with section 215(f) of the Social Security Act [42 U.S.C. 415(f)], be deemed to have attained retire- ment age (as defined by section 216(l) of the So- cial Security Act [42 U.S.C. 416(l)]). For purposes of this subsection, individuals entitled to an an- nuity under paragraph (iv) or (v) of section 231a(a)(1) of this title shall be deemed to be enti- tled to a disability insurance benefit under sec- tion 223 of the Social Security Act [42 U.S.C. 423]. (3) If an individual entitled to an annuity under section 231a(a)(1)(i) or (iii) of this title on the basis of less than ten years of service is enti- tled to a benefit under section 202(a), section 202(b), or section 202(c) of the Social Security Act [42 U.S.C. 402(a), (b), (c)] which began to ac- crue before the annuity under section 231a(a)(1)(i) or (iii) of this title, the annuity amount provided such individual under this sub- section, shall be computed as though the annu- ity under this subchapter began to accrue on the later of (A) the date on which the benefit under section 202(a), section 202(b), or section 202(c) of the Social Security Act began, or (B) the date on which the individual first met the conditions for entitlement to an age reduced annuity under this subchapter other than the conditions set forth in sections 231a(e)(1) and 231a(e)(2) of this title and the requirement that an application be filed. (b) Increased annuities under subsection (a) (1) The amount of the annuity of an individual provided under subsection (a) shall be increased by an amount equal to seven-tenths of 1 per cen- tum of the product which is obtained by multi- plying such individual’s ‘‘years of service’’ by such individual’s ‘‘average monthly compensa- tion’’ as determined under this subsection. The annuity amount payable to the individual under this subsection shall be reduced by 25 per cen- tum of the annuity amount computed for such individual under subsection (h)(1) or (h)(2), and subsection (h)(5), of this section without regard to section 231f(c)(1) of this title. An individual’s ‘‘average monthly compensation’’ for purposes of this subsection shall be the quotient obtained by dividing by 60 such individual’s total com- pensation for the 60 months, consecutive or oth- erwise, during which such individual received that individual’s highest monthly compensa- tion, except that no part of any month’s com- pensation in excess of the maximum amount