42 U.S.C. § 430 : US Code - Section 430: Adjustment of contribution and benefit base

Search 42 U.S.C. § 430 : US Code - Section 430: Adjustment of contribution and benefit base

(a) Determination and publication by Commissioner in Federal
Register subsequent to cost-of-living benefit increase; effective
date
Whenever the Commissioner of Social Security pursuant to section
415(i) of this title increases benefits effective with the December
following a cost-of-living computation quarter, the Commissioner
shall also determine and publish in the Federal Register on or
before November 1 of the calendar year in which such quarter occurs
the contribution and benefit base determined under subsection (b)
or (c) of this section which shall be effective with respect to
remuneration paid after the calendar year in which such quarter
occurs and taxable years beginning after such year.
(b) Determination of amount
The amount of such contribution and benefit base shall (subject
to subsection (c) of this section) be the amount of the
contribution and benefit base in effect in the year in which the
determination is made or, if larger, the product of -
(1) $60,600, and
(2) the ratio of (A) the national average wage index (as
defined in section 409(k)(1) of this title) for the calendar year
before the calendar year in which the determination under
subsection (a) of this section is made to (B) the national
average wage index (as so defined) for 1992,
with such product, if not a multiple of $300, being rounded to the
next higher multiple of $300 where such product is a multiple of
$150 but not of $300 and to the nearest multiple of $300 in any
other case.
(c) Amount of base for period prior to initial cost-of-living
benefit increase
For purposes of this section, and for purposes of determining
wages and self-employment income under sections 409, 411, 413, and
415 of this title and sections 1402, 3121, 3122, 3125, 6413, and
6654 of the Internal Revenue Code of 1986, (1) the "contribution
and benefit base" with respect to remuneration paid in (and taxable
years beginning in) any calendar year after 1973 and prior to the
calendar year with the June of which the first increase in benefits
pursuant to section 415(i) of this title becomes effective shall be
$13,200 or (if applicable) such other amount as may be specified in
a law enacted subsequent to the law which added this section, and
(2) the "contribution and benefit base" with respect to
remuneration paid (and taxable years beginning) -
(A) in 1978 shall be $17,700,
(B) in 1979 shall be $22,900,
(C) in 1980 shall be $25,900, and
(D) in 1981 shall be $29,700.
For purposes of determining under subsection (b) of this section
the "contribution and benefit base" with respect to remuneration
paid (and taxable years beginning) in 1982 and subsequent years,
the dollar amounts specified in clause (2) of the preceding
sentence shall be considered to have resulted from the application
of such subsection (b) of this section and to be the amount
determined (with respect to the years involved) under that
subsection.
(d) Determinations for calendar years after 1976 for purposes of
retirement benefit plans
Notwithstanding any other provision of law, the contribution and
benefit base determined under this section for any calendar year
after 1976 for purposes of section 1322(b)(3)(B) of title 29, with
respect to any plan, shall be the contribution and benefit base
that would have been determined for such year if this section as in
effect immediately prior to the enactment of the Social Security
Amendments of 1977 had remained in effect without change (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).