Page:United States Statutes at Large Volume 100 Part 1.djvu/570

This page needs to be proofread.

PUBLIC LAW 99-000—MMMM. DD, 1986

100 STAT. 534 42 USC 414. 42 USC 402. 42 USC 415.

42 USC 415.

PUBLIC LAW 99-335—JUNE 6, 1986

of such Act), on January 1 of the year in which such annuitant's entitlement to any payment under this section commences, except that the reduction of such old-age insurance benefit under section 202(q) of such Act shall be the maximum applicable for an individual born in the same year as the annuitant. In computing the primary insurance amount under section 215 of such Act for purposes of this paragraph, the number of elapsed years (referred to in section 215(b)(2)(B)(iii) of such Act and used to compute the number of benefit computation years) shall not include years beginning with the year in which such annuitant's entitlement to any payment under this section commences, and— "(A) only basic pay for service performed (if any) shall be taken into account in computing the total wages and selfemployment income of the annuitant for a benefit computation year; "(B) for a benefit computation year which commences after the date of the separation with respect to which entitlement to the annuitant's annuity under this subchapter is based and before the date as of which such annuitant is treated, under the preceding sentence, to have attained age 62, the total wages and self-employment income of such annuitant for such year shall be deemed to be zero; and "(C) for a benefit computation year after age 21 which precedes the separation referred to in subparagraph (B), and during which the individual did not perform a full year of service, the total wages and self-employment income of such annuitant for such year shall be deemed to have been an amount equal to the product of— "(i) the average total wages of all workers for that year, multiplied by "(ii) a fraction— "(I) the numerator of which is the total basic pay of the individual for service performed in the first year thereafter in which such individual performed a full year of service; and "(II) the denominator of which is the average total wages of all workers for the year referred to in subclause (I). "(3) The fraction under this paragraph for any annuitant is a fraction— "(A) the numerator of which is the annuitant's total years of service (rounding a fraction to the nearest whole number, with Vi being rounded to the next higher number), not to exceed the number under subparagraph (B); and "(B) the denominator of which is 40. "(4) For the purpose of this subsection— "(A) the term 'benefit computation year' has the meaning provided in section 215(b)(2)(B)(i) of the Social Security Act; "(B) the term 'average total wages of all workers', for a year, means the average of the total wages, as defined and computed under section 215(b)(3)(A)(ii)(I) of the Social Security Act for such year; and "(C) the term 'service' does not include military service. "(c) An amount under this section shall, for purposes of section 8467, be treated in the same way as an amount computed under section 8415.