42 U.S.C. § 415 : US Code - Section 415: Computation of primary insurance amount

Search 42 U.S.C. § 415 : US Code - Section 415: Computation of primary insurance amount

For the purposes of this subchapter -
(a) Primary insurance amount
(1)(A) The primary insurance amount of an individual shall
(except as otherwise provided in this section) be equal to the sum
of -
(i) 90 percent of the individual's average indexed monthly
earnings (determined under subsection (b) of this section) to the
extent that such earnings do not exceed the amount established
for purposes of this clause by subparagraph (B),
(ii) 32 percent of the individual's average indexed monthly
earnings to the extent that such earnings exceed the amount
established for purposes of clause (i) but do not exceed the
amount established for purposes of this clause by subparagraph
(B), and
(iii) 15 percent of the individual's average indexed monthly
earnings to the extent that such earnings exceed the amount
established for purposes of clause (ii),
rounded, if not a multiple of $0.10, to the next lower multiple of
$0.10, and thereafter increased as provided in subsection (i) of
this section.
(B)(i) For individuals who initially become eligible for old-age
or disability insurance benefits, or who die (before becoming
eligible for such benefits), in the calendar year 1979, the amount
established for purposes of clause (i) and (ii) of subparagraph (A)
shall be $180 and $1,085, respectively.
(ii) For individuals who initially become eligible for old-age or
disability insurance benefits, or who die (before becoming eligible
for such benefits), in any calendar year after 1979, each of the
amounts so established shall equal the product of the corresponding
amount established with respect to the calendar year 1979 under
clause (i) of this subparagraph and the quotient obtained by
dividing -
(I) the national average wage index (as defined in section
409(k)(1) of this title) for the second calendar year preceding
the calendar year for which the determination is made, by
(II) the national average wage index (as so defined) for 1977.
(iii) Each amount established under clause (ii) for any calendar
year shall be rounded to the nearest $1, except that any amount so
established which is a multiple of $0.50 but not of $1 shall be
rounded to the next higher $1.
(C)(i) No primary insurance amount computed under subparagraph
(A) may be less than an amount equal to $11.50 multiplied by the
individual's years of coverage in excess of 10, or the increased
amount determined for purposes of this clause under subsection (i)
of this section.
(ii) For purposes of clause (i), the term "years of coverage"
with respect to any individual means the number (not exceeding 30)
equal to the sum of (I) the number (not exceeding 14 and
disregarding any fraction) determined by dividing (a) the total of
the wages credited to such individual (including wages deemed to be
paid prior to 1951 to such individual under section 417 of this
title, compensation under the Railroad Retirement Act of 1937 [45
U.S.C. 228a et seq.] prior to 1951 which is creditable to such
individual pursuant to this subchapter, and wages deemed to be paid
prior to 1951 to such individual under section 431 of this title)
for years after 1936 and before 1951 by (b) $900, plus (II) the
number equal to the number of years after 1950 each of which is a
computation base year (within the meaning of subsection
(b)(2)(B)(ii) of this section) and in each of which he is credited
with wages (including wages deemed to be paid to such individual
under section 417 of this title, compensation under the Railroad
Retirement Act of 1937 or 1974 [45 U.S.C. 228a et seq., 231 et
seq.] which is creditable to such individual pursuant to this
subchapter, and wages deemed to be paid to such individual under
section 429 of this title) and self-employment income of not less
than 25 percent (in the case of a year after 1950 and before 1978)
of the maximum amount which (pursuant to subsection (e) of this
section) may be counted for such year, or 25 percent (in the case
of a year after 1977 and before 1991) or 15 percent (in the case of
a year after 1990) of the maximum amount which (pursuant to
subsection (e) of this section) could be counted for such year if
section 430 of this title as in effect immediately prior to
December 20, 1977, had remained in effect without change (except
that, for purposes of subsection (b) of such section 430 of this
title as so in effect, the reference to the contribution and
benefit base in paragraph (1) of such subsection (b) shall be
deemed a reference to an amount equal to $45,000, each reference in
paragraph (2) of such subsection (b) to the average of the wages of
all employees as reported to the Secretary of the Treasury shall be
deemed a reference to the national average wage index (as defined
in section 409(k)(1) of this title), the reference to a preceding
calendar year in paragraph (2)(A) of such subsection (b) shall be
deemed a reference to the calendar year before the calendar year in
which the determination under subsection (a) of such section 430 of
this title is made, and the reference to a calendar year in
paragraph (2)(B) of such subsection (b) shall be deemed a reference
to 1992).
(D) In each calendar year the Commissioner of Social Security
shall publish in the Federal Register, on or before November 1, the
formula for computing benefits under this paragraph and for
adjusting wages and self-employment income under subsection (b)(3)
of this section in the case of an individual who becomes eligible
for an old-age insurance benefit, or (if earlier) becomes eligible
for a disability insurance benefit or dies, in the following year,
and the national average wage index (as defined in section
409(k)(1) of this title) on which that formula is based.
(2)(A) A year shall not be counted as the year of an individual's
death or eligibility for purposes of this subsection or subsection
(i) of this section in any case where such individual was entitled
to a disability insurance benefit for any of the 12 months
immediately preceding the month of such death or eligibility (but
there shall be counted instead the year of the individual's
eligibility for the disability insurance benefit or benefits to
which he was entitled during such 12 months).
(B) In the case of an individual who was entitled to a disability
insurance benefit for any of the 12 months before the month in
which he became entitled to an old-age insurance benefit, became
reentitled to a disability insurance benefit, or died, the primary
insurance amount for determining any benefit attributable to that
entitlement, reentitlement, or death is the greater of -
(i) the primary insurance amount upon which such disability
insurance benefit was based, increased by the amount of each
general benefit increase (as defined in subsection (i)(3) of this
section), and each increase provided under subsection (i)(2) of
this section, that would have applied to such primary insurance
amount had the individual remained entitled to such disability
insurance benefit until the month in which he became so entitled
or reentitled or died, or
(ii) the amount computed under paragraph (1)(C).
(C) In the case of an individual who was entitled to a disability
insurance benefit for any month, and with respect to whom a primary
insurance amount is required to be computed at any time after the
close of the period of the individual's disability (whether because
of such individual's subsequent entitlement to old-age insurance
benefits or to a disability insurance benefit based upon a
subsequent period of disability, or because of such individual's
death), the primary insurance amount so computed may in no case be
less than the primary insurance amount with respect to which such
former disability insurance benefit was most recently determined.
(3)(A) Paragraph (1) applies only to an individual who was not
eligible for an old-age insurance benefit prior to January 1979 and
who in that or any succeeding month -
(i) becomes eligible for such a benefit,
(ii) becomes eligible for a disability insurance benefit, or
(iii) dies,
and (except for subparagraph (C)(i) thereof) it applies to every
such individual except to the extent otherwise provided by
paragraph (4).
(B) For purposes of this subchapter, an individual is deemed to
be eligible -
(i) for old-age insurance benefits, for months beginning with
the month in which he attains age 62, or
(ii) for disability insurance benefits, for months beginning
with the month in which his period of disability began as
provided under section 416(i)(2)(C) of this title,
except as provided in paragraph (2)(A) in cases where fewer than 12
months have elapsed since the termination of a prior period of
disability.
(4) Paragraph (1) (except for subparagraph (C)(i) thereof) does
not apply to the computation or recomputation of a primary
insurance amount for -
(A) an individual who was eligible for a disability insurance
benefit for a month prior to January 1979 unless, prior to the
month in which occurs the event described in clause (i), (ii), or
(iii) of paragraph (3)(A), there occurs a period of at least 12
consecutive months for which he was not entitled to a disability
insurance benefit, or
(B) an individual who had wages or self-employment income
credited for one or more years prior to 1979, and who was not
eligible for an old-age or disability insurance benefit, and did
not die, prior to January 1979, if in the year for which the
computation or recomputation would be made the individual's
primary insurance amount would be greater if computed or
recomputed -
(i) under this subsection as in effect in December 1978, for
purposes of old-age insurance benefits in the case of an
individual who becomes eligible for such benefits prior to
1984, or
(ii) as provided by subsection (d) of this section, in the
case of an individual to whom such section applies.
In determining whether an individual's primary insurance amount
would be greater if computed or recomputed as provided in
subparagraph (B), (I) the table of benefits in effect in December
1978, as modified by paragraph (6), shall be applied without regard
to any increases in that table which may become effective (in
accordance with subsection (i)(4) of this section) for years after
1978 (subject to clause (iii) of subsection (i)(2)(A) of this
section) and (II) such individual's average monthly wage shall be
computed as provided by subsection (b)(4) of this section.
(5)(A) Subject to subparagraphs (B), (C), (D) and (E), for
purposes of computing the primary insurance amount (after December
1978) of an individual to whom paragraph (1) does not apply (other
than an individual described in paragraph (4)(B)), this section as
in effect in December 1978 shall remain in effect, except that,
effective for January 1979, the dollar amount specified in
paragraph (3) of this subsection shall be increased to $11.50.
(B)(i) Subject to clauses (ii), (iii), and (iv), and
notwithstanding any other provision of law, the primary insurance
amount of any individual described in subparagraph (C) shall be, in
lieu of the primary insurance amount as computed pursuant to any of
the provisions referred to in subparagraph (D), the primary
insurance amount computed under subsection (a) of this section as
in effect in December 1978, without regard to subsections (b)(4)
and (c) of this section as so in effect.
(ii) The computation of a primary insurance amount under this
subparagraph shall be subject to section 104(j)(2) of the Social
Security Amendments of 1972 (relating to the number of elapsed
years under subsection (b) of this section).
(iii) In computing a primary insurance amount under this
subparagraph, the dollar amount specified in paragraph (3) of
subsection (a) of this section (as in effect in December 1978)
shall be increased to $11.50.
(iv) In the case of an individual to whom subsection (d) of this
section applies, the primary insurance amount of such individual
shall be the greater of -
(I) the primary insurance amount computed under the preceding
clauses of this subparagraph, or
(II) the primary insurance amount computed under subsection (d)
of this section.
(C) An individual is described in this subparagraph if -
(i) paragraph (1) does not apply to such individual by reason
of such individual's eligibility for an old-age or disability
insurance benefit, or the individual's death, prior to 1979, and
(ii) such individual's primary insurance amount computed under
this section as in effect immediately before November 5, 1990,
would have been computed under the provisions described in
subparagraph (D).
(D) The provisions described in this subparagraph are -
(i) the provisions of this subsection as in effect prior to
July 30, 1965, if such provisions would preclude the use of wages
prior to 1951 in the computation of the primary insurance amount,
(ii) the provisions of section 409 of this title as in effect
prior to August 28, 1950, and
(iii) the provisions of subsection (d) of this section as in
effect prior to December 20, 1977.
(E) For purposes of this paragraph, the table for determining
primary insurance amounts and maximum family benefits contained in
this section in December 1978 shall be revised as provided by
subsection (i) of this section for each year after 1978.
(6)(A) In applying the table of benefits in effect in December
1978 under this section for purposes of the last sentence of
paragraph (4), such table, revised as provided by subsection (i) of
this section, as applicable, shall be extended for average monthly
wages of less than $76.00 and primary insurance benefits (as
determined under subsection (d) of this section) of less than
$16.20.
(B) The Commissioner of Social Security shall determine and
promulgate in regulations the methodology for extending the table
under subparagraph (A).
(7)(A) In the case of an individual whose primary insurance
amount would be computed under paragraph (1) of this subsection,
who -
(i) attains age 62 after 1985 (except where he or she became
entitled to a disability insurance benefit before 1986 and
remained so entitled in any of the 12 months immediately
preceding his or her attainment of age 62), or
(ii) would attain age 62 after 1985 and becomes eligible for a
disability insurance benefit after 1985,
and who first becomes eligible after 1985 for a monthly periodic
payment (including a payment determined under subparagraph (C), but
excluding (I) a payment under the Railroad Retirement Act of 1974
or 1937 [45 U.S.C. 231 et seq., 228a et seq.], (II) a payment by a
social security system of a foreign country based on an agreement
concluded between the United States and such foreign country
pursuant to section 433 of this title, and (III) a payment based
wholly on service as a member of a uniformed service (as defined in
section 410(m) of this title)) which is based in whole or in part
upon his or her earnings for service which did not constitute
"employment" as defined in section 410 of this title for purposes
of this subchapter (hereafter in this paragraph and in subsection
(d)(3) of this section referred to as "noncovered service"), the
primary insurance amount of that individual during his or her
concurrent entitlement to such monthly periodic payment and to old-
age or disability insurance benefits shall be computed or
recomputed under subparagraph (B).
(B)(i) If paragraph (1) of this subsection would apply to such an
individual (except for subparagraph (A) of this paragraph), there
shall first be computed an amount equal to the individual's primary
insurance amount under paragraph (1) of this subsection, except
that for purposes of such computation the percentage of the
individual's average indexed monthly earnings established by
subparagraph (A)(i) of paragraph (1) shall be the percent specified
in clause (ii). There shall then be computed (without regard to
this paragraph) a second amount, which shall be equal to the
individual's primary insurance amount under paragraph (1) of this
subsection, except that such second amount shall be reduced by an
amount equal to one-half of the portion of the monthly periodic
payment which is attributable to noncovered service performed after
1956 (with such attribution being based on the proportionate number
of years of such noncovered service) and to which the individual is
entitled (or is deemed to be entitled) for the initial month of his
or her concurrent entitlement to such monthly periodic payment and
old-age or disability insurance benefits. The individual's primary
insurance amount shall be the larger of the two amounts computed
under this subparagraph (before the application of subsection (i)
of this section) and shall be deemed to be computed under paragraph
(1) of this subsection for the purpose of applying other provisions
of this subchapter.
(ii) For purposes of clause (i), the percent specified in this
clause is -
(I) 80.0 percent with respect to individuals who become
eligible (as defined in paragraph (3)(B)) for old-age insurance
benefits (or became eligible as so defined for disability
insurance benefits before attaining age 62) in 1986;
(II) 70.0 percent with respect to individuals who so become
eligible in 1987;
(III) 60.0 percent with respect to individuals who so become
eligible in 1988;
(IV) 50.0 percent with respect to individuals who so become
eligible in 1989; and
(V) 40.0 percent with respect to individuals who so become
eligible in 1990 or thereafter.
(C)(i) Any periodic payment which otherwise meets the
requirements of subparagraph (A), but which is paid on other than a
monthly basis, shall be allocated on a basis equivalent to a
monthly payment (as determined by the Commissioner of Social
Security), and such equivalent monthly payment shall constitute a
monthly periodic payment for purposes of this paragraph.
(ii) In the case of an individual who has elected to receive a
periodic payment that has been reduced so as to provide a
survivor's benefit to any other individual, the payment shall be
deemed to be increased (for purposes of any computation under this
paragraph or subsection (d)(3) of this section) by the amount of
such reduction.
(iii) For purposes of this paragraph, the term "periodic payment"
includes a payment payable in a lump sum if it is a commutation of,
or a substitute for, periodic payments.
(D) This paragraph shall not apply in the case of an individual
who has 30 years or more of coverage. In the case of an individual
who has more than 20 years of coverage but less than 30 years of
coverage (as so defined), the percent specified in the applicable
subdivision of subparagraph (B)(ii) shall (if such percent is
smaller than the applicable percent specified in the following
table) be deemed to be the applicable percent specified in the
following table:
If the number of such individual's
years of coverage (as so The applicable
defined) is: percent is:
29 85 percent
28 80 percent
27 75 percent
26 70 percent
25 65 percent
24 60 percent
23 55 percent
22 50 percent
21 45 percent.
For purposes of this subparagraph, the term "year of coverage"
shall have the meaning provided in paragraph (1)(C)(ii), except
that the reference to "15 percent" therein shall be deemed to be a
reference to "25 percent".
(E) This paragraph shall not apply in the case of an individual
whose eligibility for old-age or disability insurance benefits is
based on an agreement concluded pursuant to section 433 of this
title or an individual who on January 1, 1984 -
(i) is an employee performing service to which social security
coverage is extended on that date solely by reason of the
amendments made by section 101 of the Social Security Amendments
of 1983; or
(ii) is an employee of a nonprofit organization which (on
December 31, 1983) did not have in effect a waiver certificate
under section 3121(k) of the Internal Revenue Code of 1954 and to
the employees of which social security coverage is extended on
that date solely by reason of the amendments made by section 102
of that Act, unless social security coverage had previously
extended to service performed by such individual as an employee
of that organization under a waiver certificate which was
subsequently (prior to December 31, 1983) terminated.
(b) Average indexed monthly earnings; average monthly wage
(1) An individual's average indexed monthly earnings shall be
equal to the quotient obtained by dividing -
(A) the total (after adjustment under paragraph (3)) of his
wages paid in and self-employment income credited to his benefit
computation years (determined under paragraph (2)), by
(B) the number of months in those years.
(2)(A) The number of an individual's benefit computation years
equals the number of elapsed years reduced -
(i) in the case of an individual who is entitled to old-age
insurance benefits (except as provided in the second sentence of
this subparagraph), or who has died, by 5 years, and
(ii) in the case of an individual who is entitled to disability
insurance benefits, by the number of years equal to one-fifth of
such individual's elapsed years (disregarding any resulting
fractional part of a year), but not by more than 5 years.
Clause (ii), once applicable with respect to any individual, shall
continue to apply for purposes of determining such individual's
primary insurance amount for purposes of any subsequent eligibility
for disability or old-age insurance benefits unless prior to the
month in which such eligibility begins there occurs a period of at
least 12 consecutive months for which he was not entitled to a
disability or an old-age insurance benefit. If an individual
described in clause (ii) is living with a child (of such individual
or his or her spouse) under the age of 3 in any calendar year which
is included in such individual's computation base years, but which
is not disregarded pursuant to clause (ii) or to subparagraph (B)
(in determining such individual's benefit computation years) by
reason of the reduction in the number of such individual's elapsed
years under clause (ii), the number by which such elapsed years are
reduced under this subparagraph pursuant to clause (ii) shall be
increased by one (up to a combined total not exceeding 3) for each
such calendar year; except that (I) no calendar year shall be
disregarded by reason of this sentence (in determining such
individual's benefit computation years) unless the individual was
living with such child substantially throughout the period in which
the child was alive and under the age of 3 in such year and the
individual had no earnings as described in section 403(f)(5) of
this title in such year, (II) the particular calendar years to be
disregarded under this sentence (in determining such benefit
computation years) shall be those years (not otherwise disregarded
under clause (ii)) which, before the application of subsection (f)
of this section, meet the conditions of subclause (I), and (III)
this sentence shall apply only to the extent that its application
would not result in a lower primary insurance amount. The number of
an individual's benefit computation years as determined under this
subparagraph shall in no case be less than 2.
(B) For purposes of this subsection with respect to any
individual -
(i) the term "benefit computation years" means those
computation base years, equal in number to the number determined
under subparagraph (A), for which the total of such individual's
wages and self-employment income, after adjustment under
paragraph (3), is the largest;
(ii) the term "computation base years" means the calendar years
after 1950 and before -
(I) in the case of an individual entitled to old-age
insurance benefits, the year in which occurred (whether by
reason of section 402(j)(1) of this title or otherwise) the
first month of that entitlement; or
(II) in the case of an individual who has died (without
having become entitled to old-age insurance benefits), the year
succeeding the year of his death;
except that such term excludes any calendar year entirely
included in a period of disability; and
(iii) the term "number of elapsed years" means (except as
otherwise provided by section 104(j)(2) of the Social Security
Amendments of 1972) the number of calendar years after 1950 (or,
if later, the year in which the individual attained age 21) and
before the year in which the individual died, or, if it occurred
earlier (but after 1960), the year in which he attained age 62;
except that such term excludes any calendar year any part of
which is included in a period of disability.
(3)(A) Except as provided by subparagraph (B), the wages paid in
and self-employment income credited to each of an individual's
computation base years for purposes of the selection therefrom of
benefit computation years under paragraph (2) shall be deemed to be
equal to the product of -
(i) the wages and self-employment income paid in or credited to
such year (as determined without regard to this subparagraph),
and
(ii) the quotient obtained by dividing -
(I) the national average wage index (as defined in section
409(k)(1) of this title) for the second calendar year preceding
the earliest of the year of the individual's death, eligibility
for an old-age insurance benefit, or eligibility for a
disability insurance benefit (except that the year in which the
individual dies, or becomes eligible, shall not be considered
as such year if the individual was entitled to disability
insurance benefits for any month in the 12-month period
immediately preceding such death or eligibility, but there
shall be counted instead the year of the individual's
eligibility for the disability insurance benefit to which he
was entitled in such 12-month period), by
(II) the national average wage index (as so defined) for the
computation base year for which the determination is made.
(B) Wages paid in or self-employment income credited to an
individual's computation base year which -
(i) occurs after the second calendar year specified in
subparagraph (A)(ii)(I), or
(ii) is a year treated under subsection (f)(2)(C) of this
section as though it were the last year of the period specified
in paragraph (2)(B)(ii),
shall be available for use in determining an individual's benefit
computation years, but without applying subparagraph (A) of this
paragraph.
(4) For purposes of determining the average monthly wage of an
individual whose primary insurance amount is computed (after 1978)
under subsection (a) or (d) of this section as in effect (except
with respect to the table contained therein) in December 1978, by
reason of subsection (a)(4)(B) of this section, this subsection as
in effect in December 1978 shall remain in effect, except that
paragraph (2)(C) (as then in effect) shall be deemed to provide
that "computation base years" include only calendar years in the
period after 1950 (or 1936, if applicable) and prior to the year in
which occurred the first month for which the individual was
eligible (as defined in subsection (a)(3)(B) of this section as in
effect in January 1979) for an old-age or disability insurance
benefit, or, if earlier, the year in which he died. Any calendar
year all of which is included in a period of disability shall not
be included as a computation base year for such purposes.
(c) Application of prior provisions in certain cases
Subject to the amendments made by section 5117 of the Omnibus
Budget Reconciliation Act of 1990, this subsection as in effect in
December 1978 shall remain in effect with respect to an individual
to whom subsection (a)(1) of this section does not apply by reason
of the individual's eligibility for an old-age or disability
insurance benefit, or the individual's death, prior to 1979.
(d) Primary insurance amount under 1939 Act
(1) For purposes of column I of the table appearing in subsection
(a) of this section, as that subsection was in effect in December
1977, 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) of this section, as in effect in
December 1977 (but without regard to paragraph (4) thereof and
subject to section 104(j)(2) of the Social Security Amendments of
1972), except that for purposes of paragraphs (2)(C) and (3) of
that subsection (as so in effect) 1936 shall be used instead of
1950.
(B) For purposes of subparagraphs (B) and (C) of subsection
(b)(2) of this section (as so in effect) -
(i) the total wages prior to 1951 (as defined in subparagraph
(C) of this paragraph) of an individual -
(I) shall, in the case of an individual who attained age 21
prior to 1950, be divided by the number of years (hereinafter
in this subparagraph referred to as the "divisor") elapsing
after the year in which the individual attained age 20, or
1936 if later, and prior to the earlier of the year of death
or 1951, except that such divisor shall not include any
calendar year entirely included in a period of disability,
and in no case shall the divisor be less than one, and
(II) shall, in the case of an individual who died before
1950 and before attaining age 21, be divided by the number of
years (hereinafter in this subparagraph referred to as the
"divisor") elapsing after the second year prior to the year
of death, or 1936 if later, and prior to the year of death,
and in no case shall the divisor be less than one; and
(ii) the total wages prior to 1951 (as defined in
subparagraph (C) of this paragraph) of an individual who either
attained age 21 after 1949 or died after 1949 before attaining
age 21, shall be divided by the number of years (hereinafter in
this subparagraph referred to as the "divisor") elapsing after
1949 and prior to 1951.
The quotient so obtained shall be deemed to be the individual's
wages credited to each of the years which were used in computing
the amount of the divisor, except that -
(iii) if the quotient exceeds $3,000, only $3,000 shall be
deemed to be the individual's wages for each of the years which
were used in computing the amount of the divisor, and the
remainder of the individual's total wages prior to 1951 (I) if
less than $3,000, shall be deemed credited to the computation
base year (as defined in subsection (b)(2) of this section as
in effect in December 1977) immediately preceding the earliest
year used in computing the amount of the divisor, or (II) if
$3,000 or more, shall be deemed credited, in $3,000 increments,
to the computation base year (as so defined) immediately
preceding the earliest year used in computing the amount of the
divisor and to each of the computation base years (as so
defined) consecutively preceding that year, with any remainder
less than $3,000 being credited to the computation base year
(as so defined) immediately preceding the earliest year to
which a full $3,000 increment was credited; and
(iv) no more than $42,000 may be taken into account, for
purposes of this subparagraph, as total wages 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 Commissioner of Social Security, (ii) wages deemed
paid prior to 1951 to such individual under section 417 of this
title, (iii) compensation under the Railroad Retirement Act of
1937 [45 U.S.C. 228a et seq.] prior to 1951 creditable to him
pursuant to this subchapter, and (iv) wages deemed paid prior to
1951 to such individual under section 431 of this title.
(D) The individual's primary insurance benefit shall be 40
percent of the first $50 of his average monthly wage as computed
under this subsection, plus 10 percent of the next $200 of his
average monthly wage, increased by 1 percent for each increment
year. The number of increment years is the number, not more than
14 nor less than 4, that is equal to the individual's total wages
prior to 1951 divided by $1,650 (disregarding any fraction).
(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) 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 402(a) or
423 of this title or who dies, or
(ii) whose primary insurance amount is required to be
recomputed under paragraph (2), (6), or (7) of subsection (f) of
this section or under section 431 of this title.
(3) In the case of an individual whose primary insurance amount
is not computed under paragraph (1) of subsection (a) of this
section by reason of paragraph (4)(B)(ii) of that subsection, who -

(A) attains age 62 after 1985 (except where he or she became
entitled to a disability insurance benefit before 1986, and
remained so entitled in any of the 12 months immediately
preceding his or her attainment of age 62), or
(B) would attain age 62 after 1985 and becomes eligible for a
disability insurance benefit after 1985,
and who first becomes eligible after 1985 for a monthly periodic
payment (including a payment determined under subsection (a)(7)(C)
of this section, but excluding (I) a payment under the Railroad
Retirement Act of 1974 or 1937 [45 U.S.C. 231 et seq., 228a et
seq.], (II) a payment by a social security system of a foreign
country based on an agreement concluded between the United States
and such foreign country pursuant to section 433 of this title, and
(III) a payment based wholly on service as a member of a uniformed
service (as defined in section 410(m) of this title)) which is
based (in whole or in part) upon his or her earnings in noncovered
service, the primary insurance amount of such individual during his
or her concurrent entitlement to such monthly periodic payment and
to old-age or disability insurance benefits shall be the primary
insurance amount computed or recomputed under this subsection
(without regard to this paragraph and before the application of
subsection (i) of this section) reduced by an amount equal to the
smaller of -
(i) one-half of the primary insurance amount (computed without
regard to this paragraph and before the application of subsection
(i) of this section), or
(ii) one-half of the portion of the monthly periodic payment
(or payment determined under subsection (a)(7)(C) of this
section) which is attributable to noncovered service performed
after 1956 (with such attribution being based on the
proportionate number of years of such noncovered service) and to
which that individual is entitled (or is deemed to be entitled)
for the initial month of such concurrent entitlement.
This paragraph shall not apply in the case of any individual to
whom subsection (a)(7) of this section would not apply by reason of
subparagraph (E) or the first sentence of subparagraph (D) thereof.
(e) Certain wages and self-employment income not to be counted
For the purposes of subsections (b) and (d) of this section -
(1) in computing an individual's average indexed monthly
earnings or, in the case of an individual whose primary insurance
amount is computed under subsection (a) of this section as in
effect prior to January 1979, average monthly wage, there shall
not be counted the excess over $3,600 in the case of any calendar
year after 1950 and before 1955, the excess over $4,200 in the
case of any calendar year after 1954 and before 1959, the excess
over $4,800 in the case of any calendar year after 1958 and
before 1966, the excess over $6,600 in the case of any calendar
year after 1965 and before 1968, the excess over $7,800 in the
case of any calendar year after 1967 and before 1972, the excess
over $9,000 in the case of any calendar year after 1971 and
before 1973, the excess over $10,800 in the case of any calendar
year after 1972 and before 1974, the excess over $13,200 in the
case of any calendar year after 1973 and before 1975, and the
excess over an amount equal to the contribution and benefit base
(as determined under section 430 of this title) in the case of
any calendar year after 1974 with respect to which such
contribution and benefit base is effective, (before the
application, in the case of average indexed monthly earnings, of
subsection (b)(3)(A) of this section) of (A) the wages paid to
him in such year, plus (B) the self-employment income credited to
such year (as determined under section 412 of this title); and
(2) if an individual's average indexed monthly earnings or, in
the case of an individual whose primary insurance amount is
computed under subsection (a) of this section as in effect prior
to January 1979, average monthly wage, computed under subsection
(b) of this section or for the purposes of subsection (d) of this
section is not a multiple of $1, it shall be reduced to the next
lower multiple of $1.
(f) Recomputation of benefits
(1) After an individual's primary insurance amount has been
determined under this section, there shall be no recomputation of
such individual's primary insurance amount except as provided in
this subsection or, in the case of a World War II veteran who died
prior to July 27, 1954, as provided in section 417(b) of this
title.
(2)(A) If an individual has wages or self-employment income for a
year after 1978 for any part of which he is entitled to old-age or
disability insurance benefits, the Commissioner of Social Security
shall, at such time or times and within such period as the
Commissioner may by regulation prescribe, recompute the
individual's primary insurance amount for that year.
(B) For the purpose of applying subparagraph (A) of subsection
(a)(1) of this section to the average indexed monthly earnings of
an individual to whom that subsection applies and who receives a
recomputation under this paragraph, there shall be used, in lieu of
the amounts established by subsection (a)(1)(B) of this section for
purposes of clauses (i) and (ii) of subsection (a)(1)(A) of this
section, the amounts so established that were (or, in the case of
an individual described in subsection (a)(4)(B) of this section,
would have been) used in the computation of such individual's
primary insurance amount prior to the application of this
subsection.
(C) A recomputation of any individual's primary insurance amount
under this paragraph shall be made as provided in subsection (a)(1)
of this section as though the year with respect to which it is made
is the last year of the period specified in subsection
(b)(2)(B)(ii) of this section; and subsection (b)(3)(A) of this
section shall apply with respect to any such recomputation as it
applied in the computation of such individual's primary insurance
amount prior to the application of this subsection.
(D) A recomputation under this paragraph with respect to any year
shall be effective -
(i) in the case of an individual who did not die in that year,
for monthly benefits beginning with benefits for January of the
following year; or
(ii) in the case of an individual who died in that year, for
monthly benefits beginning with benefits for the month in which
he died.
(3) Repealed. Pub. L. 95-216, title II, Sec. 201(f)(2), Dec. 20,
1977, 91 Stat. 1521.
(4) A recomputation shall be effective under this subsection only
if it increases the primary insurance amount by at least $1.
(5) In the case of a man who became entitled to old-age insurance
benefits and died before the month in which he attained retirement
age (as defined in section 416(l) of this title), the Commissioner
of Social Security shall recompute his primary insurance amount as
provided in subsection (a) of this section 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) of this section shall include the year in which
he died, and (ii) his elapsed years referred to in subsection
(b)(3) of this section 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.
(6) Upon the death after 1967 of an individual entitled to
benefits under section 402(a) or section 423 of this title, if any
person is entitled to monthly benefits or a lump-sum death payment,
on the wages and self-employment income of such individual, the
Commissioner of Social Security shall recompute the decedent's
primary insurance amount, but only if the decedent during his
lifetime was paid compensation which was treated under section
405(o) of this title as remuneration for employment.
(7) This subsection as in effect in December 1978 shall continue
to apply to the recomputation of a primary insurance amount
computed under subsection (a) or (d) of this section as in effect
(without regard to the table in subsection (a) of this section) in
that month, and, where appropriate, under subsection (d) as in
effect in December 1977, including a primary insurance amount
computed under any such subsection whose operation is modified as a
result of the amendments made by section 5117 of the Omnibus Budget
Reconciliation Act of 1990. For purposes of recomputing a primary
insurance amount determined under subsection (a) or (d) of this
section (as so in effect) in the case of an individual to whom
those subsections apply by reason of subsection (a)(4)(B) of this
section as in effect after December 1978, no remuneration shall be
taken into account for the year in which the individual initially
became eligible for an old-age or disability insurance benefit or
died, or for any year thereafter, and (effective January 1982) the
recomputation shall be modified by the application of subsection
(a)(6) of this section where applicable.
(8) The Commissioner of Social Security shall recompute the
primary insurance amounts applicable to beneficiaries whose
benefits are based on a primary insurance amount which was computed
under subsection (a)(3) of this section effective prior to January
1979, or would have been so computed if the dollar amount specified
therein were $11.50. Such recomputation shall be effective January
1979, and shall include the effect of the increase in the dollar
amount provided by subsection (a)(1)(C)(i) of this section. Such
primary insurance amount shall be deemed to be provided under such
section for purposes of subsection (i) of this section.
(9)(A) In the case of an individual who becomes entitled to a
periodic payment determined under subsection (a)(7)(A) of this
section (including a payment determined under subsection (a)(7)(C)
of this section) in a month subsequent to the first month in which
he or she becomes entitled to an old-age or disability insurance
benefit, and whose primary insurance amount has been computed
without regard to either such subsection or subsection (d)(3) of
this section, such individual's primary insurance amount shall be
recomputed (notwithstanding paragraph (4) of this subsection), in
accordance with either such subsection or subsection (d)(3) of this
section, as may be applicable, effective with the first month of
his or her concurrent entitlement to such benefit and such periodic
payment.
(B) If an individual's primary insurance amount has been computed
under subsection (a)(7) or (d)(3) of this section, and it becomes
necessary to recompute that primary insurance amount under this
subsection -
(i) so as to increase the monthly benefit amount payable with
respect to such primary insurance amount (except in the case of
the individual's death), such increase shall be determined as
though the recomputed primary insurance amount were being
computed under subsection (a)(7) or (d)(3) of this section, or
(ii) by reason of the individual's death, such primary
insurance amount shall be recomputed without regard to (and as
though it had never been computed with regard to) subsection
(a)(7) or (d)(3) of this section.
(g) Rounding of benefits
The amount of any monthly benefit computed under section 402 or
423 of this title which (after any reduction under sections 403(a)
and 424a of this title and any deduction under section 403(b) of
this title, and after any deduction under section 1395s(a)(1) of
this title) is not a multiple of $1 shall be rounded to the next
lower multiple of $1.
(h) Service of certain Public Health Service Officers
(1) Notwithstanding the provisions of subchapter III of chapter
83 of title 5, remuneration paid for service to which the
provisions of section 410(l)(1) of this title are applicable and
which is performed by an individual as a commissioned officer of
the Reserve Corps of the Public Health Service prior to July 1,
1960, shall not be included in computing entitlement to or the
amount of any monthly benefit under this subchapter, on the basis
of his wages and self-employment income, for any month after June
1960 and prior to the first month with respect to which the
Director of the Office of Personnel Management certifies to the
Commissioner of Social Security that, by reason of a waiver filed
as provided in paragraph (2), no further annuity will be paid to
him, his wife, and his children, or, if he has died, to his widow
and children, under subchapter III of chapter 83 of title 5 on the
basis of such service.
(2) In the case of a monthly benefit for a month prior to that in
which the individual, on whose wages and self-employment income
such benefit is based, dies, the waiver must be filed by such
individual; and such waiver shall be irrevocable and shall
constitute a waiver on behalf of himself, his wife, and his
children. If such individual did not file such a waiver before he
died, then in the case of a benefit for the month in which he died
or any month thereafter, such waiver must be filed by his widow, if
any, and by or on behalf of all his children, if any; and such
waivers shall be irrevocable. Such a waiver by a child shall be
filed by his legal guardian or guardians, or, in the absence
thereof, by the person (or persons) who has the child in his care.
(i) Cost-of-living increases in benefits
(1) For purposes of this subsection -
(A) the term "base quarter" means (i) the calendar quarter
ending on September 30 in each year after 1982, or (ii) any other
calendar quarter in which occurs the effective month of a general
benefit increase under this subchapter;
(B) the term "cost-of-living computation quarter" means a base
quarter, as defined in subparagraph (A)(i), with respect to which
the applicable increase percentage is greater than zero; except
that there shall be no cost-of-living computation quarter in any
calendar year if in the year prior to such year a law has been
enacted providing a general benefit increase under this
subchapter or if in such prior year such a general benefit
increase becomes effective;
(C) the term "applicable increase percentage" means -
(i) with respect to a base quarter or cost-of-living
computation quarter in any calendar year before 1984, or in any
calendar year after 1983 and before 1989 for which the OASDI
fund ratio is 15.0 percent or more, or in any calendar year
after 1988 for which the OASDI fund ratio is 20.0 percent or
more, the CPI increase percentage; and
(ii) with respect to a base quarter or cost-of-living
computation quarter in any calendar year after 1983 and before
1989 for which the OASDI fund ratio is less than 15.0 percent,
or in any calendar year after 1988 for which the OASDI fund
ratio is less than 20.0 percent, the CPI increase percentage or
the wage increase percentage, whichever (with respect to that
quarter) is the lower;
(D) the term "CPI increase percentage", with respect to a base
quarter or cost-of-living computation quarter in any calendar
year, means the percentage (rounded to the nearest one-tenth of 1
percent) by which the Consumer Price Index for that quarter (as
prepared by the Department of Labor) exceeds such index for the
most recent prior calendar quarter which was a base quarter under
subparagraph (A)(ii) or, if later, the most recent cost-of-living
computation quarter under subparagraph (B);
(E) the term "wage increase percentage", with respect to a base
quarter or cost-of-living computation quarter in any calendar
year, means the percentage (rounded to the nearest one-tenth of 1
percent) by which the national average wage index (as defined in
section 409(k)(1) of this title) for the year immediately
preceding such calendar year exceeds such index for the year
immediately preceding the most recent prior calendar year which
included a base quarter under subparagraph (A)(ii) or, if later,
which included a cost-of-living computation quarter;
(F) the term "OASDI fund ratio", with respect to any calendar
year, means the ratio of -
(i) the combined balance in the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability Insurance Trust
Fund as of the beginning of such year, including the taxes
transferred under section 401(a) of this title on the first day
of such year and reduced by the outstanding amount of any loan
(including interest thereon) theretofore made to either such
Fund from the Federal Hospital Insurance Trust Fund under
section 401(l) of this title, to
(ii) the total amount which (as estimated by the Commissioner
of Social Security) will be paid from the Federal Old-Age and
Survivors Insurance Trust Fund and the Federal Disability
Insurance Trust Fund during such calendar year for all purposes
authorized by section 401 of this title (other than payments of
interest on, or repayments of, loans from the Federal Hospital
Insurance Trust Fund under section 401(l) of this title), but
excluding any transfer payments between such trust funds and
reducing the amount of any transfers to the Railroad Retirement
Account by the amount of any transfers into either such trust
fund from that Account; (!1)
(G) the Consumer Price Index for a base quarter, a cost-of-
living computation quarter, or any other calendar quarter shall
be the arithmetical mean of such index for the 3 months in such
quarter.
(2)(A)(i) The Commissioner of Social Security shall determine
each year beginning with 1975 (subject to the limitation in
paragraph (1)(B)) whether the base quarter (as defined in paragraph
(1)(A)(i)) in such year is a cost-of-living computation quarter.
(ii) If the Commissioner of Social Security determines that the
base quarter in any year is a cost-of-living computation quarter,
the Commissioner shall, effective with the month of December of
that year as provided in subparagraph (B), increase -
(I) the benefit amount to which individuals are entitled for
that month under section 427 or 428 of this title,
(II) the primary insurance amount of each other individual on
which benefit entitlement is based under this subchapter, and
(III) the amount of total monthly benefits based on any primary
insurance amount which is permitted under section 403 of this
title (and such total shall be increased, unless otherwise so
increased under another provision of this subchapter, at the same
time as such primary insurance amount) or, in the case of a
primary insurance amount computed under subsection (a) of this
section as in effect (without regard to the table contained
therein) prior to January 1979, the amount to which the
beneficiaries may be entitled under section 403 of this title as
in effect in December 1978, except as provided by section
403(a)(7) and (8) of this title as in effect after December 1978.
The increase shall be derived by multiplying each of the amounts
described in subdivisions (I), (II), and (III) (including each of
those amounts as previously increased under this subparagraph) by
the applicable increase percentage; and any amount so increased
that is not a multiple of $0.10 shall be decreased to the next
lower multiple of $0.10. Any increase under this subsection in a
primary insurance amount determined under subparagraph (C)(i) of
subsection (a)(1) of this section shall be applied after the
initial determination of such primary insurance amount under that
subparagraph (with the amount of such increase, in the case of an
individual who becomes eligible for old-age or disability insurance
benefits or dies in a calendar year after 1979, being determined
from the range of possible primary insurance amounts published by
the Commissioner of Social Security under the last sentence of
subparagraph (D)).
(iii) In the case of an individual who becomes eligible for an
old-age or disability insurance benefit, or who dies prior to
becoming so eligible, in a year in which there occurs an increase
provided under clause (ii), the individual's primary insurance
amount (without regard to the time of entitlement to that benefit)
shall be increased (unless otherwise so increased under another
provision of this subchapter and, with respect to a primary
insurance amount determined under subsection (a)(1)(C)(i)(I) of
this section in the case of an individual to whom that subsection
(as in effect in December 1981) applied, subject to the provisions
of subsection (a)(1)(C)(i) of this section and clauses (iv) and (v)
of this subparagraph (as then in effect)) by the amount of that
increase and subsequent applicable increases, but only with respect
to benefits payable for months after November of that year.
(B) The increase provided by subparagraph (A) with respect to a
particular cost-of-living computation quarter shall apply in the
case of monthly benefits under this subchapter for months after
November of the calendar year in which occurred such cost-of-living
computation quarter, and in the case of lump-sum death payments
with respect to deaths occurring after November of such calendar
year.
(C)(i) Whenever the Commissioner of Social Security determines
that a base quarter in a calendar year is also a cost-of-living
computation quarter, the Commissioner shall notify the House
Committee on Ways and Means and the Senate Committee on Finance of
such determination within 30 days after the close of such quarter,
indicating the amount of the benefit increase to be provided, the
Commissioner's estimate of the extent to which the cost of such
increase would be met by an increase in the contribution and
benefit base under section 430 of this title and the estimated
amount of the increase in such base, the actuarial estimates of the
effect of such increase, and the actuarial assumptions and
methodology used in preparing such estimates.
(ii) The Commissioner of Social Security shall determine and
promulgate the OASDI fund ratio for the current calendar year on or
before November 1 of the current calendar year, based upon the most
recent data then available. The Commissioner of Social Security
shall include a statement of the fund ratio and the national
average wage index (as defined in section 409(k)(1) of this title)
and a statement of the effect such ratio and the level of such
index may have upon benefit increases under this subsection in any
notification made under clause (i) and any determination published
under subparagraph (D).
(D) If the Commissioner of Social Security determines that a base
quarter in a calendar year is also a cost-of-living computation
quarter, the Commissioner shall publish in the Federal Register
within 45 days after the close of such quarter a determination that
a benefit increase is resultantly required and the percentage
thereof. The Commissioner shall also publish in the Federal
Register at that time (i) a revision of the range of the primary
insurance amounts which are possible after the application of this
subsection based on the dollar amount specified in subparagraph
(C)(i) of subsection (a)(1) of this section (with such revised
primary insurance amounts constituting the increased amounts
determined for purposes of such subparagraph (C)(i) under this
subsection), or specified in subsection (a)(3) of this section as
in effect prior to 1979, and (ii) a revision of the range of
maximum family benefits which correspond to such primary insurance
amounts (with such maximum benefits being effective notwithstanding
section 403(a) of this title except for paragraph (3)(B) thereof
(or paragraph (2) thereof as in effect prior to 1979)).
Notwithstanding the preceding sentence, such revision of maximum
family benefits shall be subject to paragraph (6) of section 403(a)
of this title (as added by section 101(a)(3) of the Social Security
Disability Amendments of 1980).
(3) As used in this subsection, the term "general benefit
increase under this subchapter" means an increase (other than an
increase under this subsection) in all primary insurance amounts on
which monthly insurance benefits under this subchapter are based.
(4) This subsection as in effect in December 1978, and as amended
by sections 111(a)(6), 111(b)(2), and 112 of the Social Security
Amendments of 1983 and by section 9001 of the Omnibus Budget
Reconciliation Act of 1986, shall continue to apply to subsections
(a) and (d) of this section, as then in effect and as amended by
section 5117 of the Omnibus Budget Reconciliation Act of 1990, for
purposes of computing the primary insurance amount of an individual
to whom subsection (a) of this section, as in effect after December
1978, does not apply (including an individual to whom subsection
(a) of this section does not apply in any year by reason of
paragraph (4)(B) of that subsection (but the application of this
subsection in such cases shall be modified by the application of
subdivision (I) in the last sentence of paragraph (4) of that
subsection)), except that for this purpose, in applying paragraphs
(2)(A)(ii), (2)(D)(iv), and (2)(D)(v) of this subsection as in
effect in December 1978, the phrase "increased to the next higher
multiple of $0.10" shall be deemed to read "decreased to the next
lower multiple of $0.10". For purposes of computing primary
insurance amounts and maximum family benefits (other than primary
insurance amounts and maximum family benefits for individuals to
whom such paragraph (4)(B) applies), the Commissioner of Social
Security shall revise the table of benefits contained in subsection
(a) of this section, as in effect in December 1978, in accordance
with the requirements of paragraph (2)(D) of this subsection as
then in effect, except that the requirement in such paragraph
(2)(D) that the Commissioner of Social Security publish such
revision of the table of benefits in the Federal Register shall not
apply.
(5)(A) If -
(i) with respect to any calendar year the "applicable increase
percentage" was determined under clause (ii) of paragraph (1)(C)
rather than under clause (i) of such paragraph, and the increase
becoming effective under paragraph (2) in such year was
accordingly determined on the basis of the wage increase
percentage rather than the CPI increase percentage (or there was
no such increase becoming effective under paragraph (2) in that
year because there was no wage increase percentage greater than
zero), and
(ii) for any subsequent calendar year in which an increase
under paragraph (2) becomes effective the OASDI fund ratio is
greater than 32.0 percent,
then each of the amounts described in subdivisions (I), (II), and
(III) of paragraph (2)(A)(ii), as increased under paragraph (2)
effective with the month of December in such subsequent calendar
year, shall be further increased (effective with such month) by an
additional percentage, which shall be determined under subparagraph
(B) and shall apply as provided in subparagraph (C). Any amount so
increased that is not a multiple of $0.10 shall be decreased to the
next lower multiple of $0.10.
(B) The applicable additional percentage by which the amounts
described in subdivisions (I), (II), and (III) of paragraph
(2)(A)(ii) are to be further increased under subparagraph (A) in
the subsequent calendar year involved shall be the amount derived
by -
(i) subtracting (I) the compounded percentage benefit increases
that were actually paid under paragraph (2) and this paragraph
from (II) the compounded percentage benefit increases that would
have been paid if all increases under paragraph (2) had been made
on the basis of the CPI increase percentage,
(ii) dividing the difference by the sum of the compounded
percentage in clause (i)(I) and 100 percent, and
(iii) multiplying such quotient by 100 so as to yield such
applicable additional percentage (which shall be rounded to the
nearest one-tenth of 1 percent),
with the compounded increases referred to in clause (i) being
measured -
(iv) in the case of amounts described in subdivision (I) of
paragraph (2)(A)(ii), over the period beginning with the calendar
year in which monthly benefits described in such subdivision were
first increased on the basis of the wage increase percentage and
ending with the year before such subsequent calendar year, and
(v) in the case of amounts described in subdivisions (II) and
(III) of paragraph (2)(A)(ii), over the period beginning with the
calendar year in which the individual whose primary insurance
amount is increased under such subdivision (II) became eligible
(as defined in subsection (a)(3)(B) of this section) for the old-
age or disability insurance benefit that is being increased
under this subsection, or died before becoming so eligible, and
ending with the year before such subsequent calendar year;
except that if the Commissioner of Social Security determines in
any case that the application (in accordance with subparagraph (C))
of the additional percentage as computed under the preceding
provisions of this subparagraph would cause the OASDI fund ratio to
fall below 32.0 percent in the calendar year immediately following
such subsequent year, the Commissioner shall reduce such applicable
additional percentage to the extent necessary to ensure that the
OASDI fund ratio will remain at or above 32.0 percent through the
end of such following year.
(C) Any applicable additional percentage increase in an amount
described in subdivision (I), (II), or (III) of paragraph
(2)(A)(ii), made under this paragraph in any calendar year, shall
thereafter be treated for all the purposes of this chapter as a
part of the increase made in such amount under paragraph (2) for
that year.