,,ii #aacth ,,congress #b;d ,session ,s4 #bdee ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #aj1 #bjad ,mr4 ,begich 7for himself and ,mrs4 ,murray7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to enhance ,social ,security benefits for children1 divorced spouses1 and widows and widowers1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,retirement and ,income ,security ,enhancements 7,,raise7 ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,improving benefits for divorced spouses1 widows1 widowers1 and surviving divorced spouses4 ,sec4 #c4 ,extended benefit eligibility for children who are full-time students4 ,sec4 #d4 ,establishment of payroll surtax for high-income individuals4 ,sec4 #e4 ,inclusion of surplus earnings in social security benefit formula4 #b4 ,improving benefits for divorced spouses1 widows1 widowers1 and surviving divorced spouses 7a7 ,expansion of benefits for divorced spouses 7#a7 ,wife's insurance benefits ,section #bjb7;b7 of the ,social ,security ,act 7#db ,u4,s4,c4 #djb7;b77 is amended-- 7,a7 in paragraph 7#a77;,g71 by striking #aj years and inserting #e years2 and 7,b7 by amending paragraph 7#b7 to read as follows3 7#b7 7,a7 ,except as provided in subsections 7k77#e7 and 7q71 a wife's insurance benefit for each month shall be equal to-- 7i7 in the case of a wife 7as defined in section #baf7;b771 one-half of the primary insurance amount of her husband for such month2 or 7ii7 in the case of a divorced wife 7as defined in section #baf7;d771 the applicable percentage 7as determined under subparagraph 7,b77 of one-half of the primary insurance amount of her former husband for such month4 7,b7 ,for purposes of subparagraph 7,a77ii71 the applicable percentage shall be equal to #ajj percent reduced by #aj percentage points for each year in the period immediately before the date the divorce became effective in which the divorced wife was married to her former husband that is less than #aj years4 4 7#b7 ,husband's insurance benefits ,section #bjb7;c7 of the ,social ,security ,act 7#db ,u4,s4,c4 #djb7;c77 is amended-- 7,a7 in paragraph 7#a77;,g71 by striking #aj years and inserting #e years2 and 7,b7 by amending paragraph 7#b7 to read as follows3 7#b7 7,a7 ,except as provided in subsections 7k77#e7 and 7q71 a husband's insurance benefit for each month shall be equal to-- 7i7 in the case of a husband 7as defined in section #baf7;f771 one-half of the primary insurance amount of his wife for such month2 or 7ii7 in the case of a divorced husband 7as defined in section #baf7;d771 the applicable percentage 7as determined under subparagraph 7,b77 of one-half of the primary insurance amount of his former wife for such month4 7,b7 ,for purposes of subparagraph 7,a77ii71 the applicable percentage shall be equal to #ajj percent reduced by #aj percentage points for each year in the period immediately before the date the divorce became effective in which the divorced husband was married to his former wife that is less than #aj years4 4 7b7 ,improving social security benefits for widows and widowers in two-,income households 7#a7 ,widows ,section #bjb7;e7 of the ,social ,security ,act 7#db ,u4,s4,c4 #djb7;e77 is amended-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,b71 by inserting and at the end2 7ii7 in subparagraph 7,c77iii71 by striking and at the end2 7iii7 by striking subparagraph 7,d72 7iv7 by redesignating subparagraphs 7,e7 and 7,f7 as subparagraphs 7,d7 and 7,e71 respectively2 and 7v7 in the flush matter following subparagraph 7,e77ii71 as so redesignated1 by striking becomes entitled to an old-age insurance benefit and all that follows through such deceased individual12 7,b7 by striking subparagraph 7,a7 in paragraph 7#b7 and inserting the following3 7#b7 7,a7 ,except as provided in subsection 7k77#e71 subsection 7q71 and subparagraph 7,d7 of this paragraph1 such widow's insurance benefit for each month shall be equal to the greater of-- 7i7 subject to paragraph 7#i71 the primary insurance amount 7as determined for purposes of this subsection after application of subparagraphs 7,b7 and 7,c77 of such deceased individual2 or 7ii7 subject to paragraphs 7#i7 and 7#aj71 in the case of a fully-insured widow or surviving divorced wife1 #ge percent of the sum of any old-age or disability insurance benefit for which the widow or the surviving divorced wife is entitled for such month and the primary insurance amount 7as determined for purposes of this subsection after application of subparagraphs 7,b7 and 7,c77 of such deceased individual4 2 7,c7 in paragraph 7#e7-- 7i7 in subparagraph 7,a71 by striking paragraph 7#a77;,f7 and inserting paragraph 7#a77;,e72 and 7ii7 in subparagraph 7,b71 by striking paragraph 7#a77;,f77i7 and inserting paragraph 7#a77;,e77i72 and 7,d7 by adding at the end the following new paragraphs3 7#i7 ,for purposes of clauses 7i7 and 7ii7 of paragraph 7#b77;,a71 in the case of a surviving divorced wife1 the amount determined under either such clause 7and1 for purposes of clause 7ii7 of paragraph 7#b77;,a71 as determined after application of paragraph 7#aj77 shall be equal to the applicable percentage 7as determined under section #bjb7;b77#b77;,b77 of such amount 7as determined before application of this paragraph but after application of subsection 7k77#c774 7#aj7 ,for purposes of paragraph 7#b77;,a77ii71 the amount determined under such paragraph shall not exceed the primary insurance amount for such month of a hypothetical individual-- 7,a7 who became entitled to old-age insurance benefits upon attaining early retirement age during the month in which the deceased individual referred to in paragraph 7#a7 became entitled to old-age or disability insurance benefits1 or died 7before becoming entitled to such benefits72 and 7,b7 to whom wages and self-employment income were credited in each of such hypothetical individual's elapsed years 7within the meaning of section #bae7;b77#b77;,b77iii77 in an amount equal to the national average wage index 7as described in section #bji7k77#a77 for each such year4 4 7#b7 ,widowers ,section #bjb7;f7 of the ,social ,security ,act 7#db ,u4,s4,c4 #djb7;f77 is amended-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,b71 by inserting and at the end2 7ii7 in subparagraph 7,c77iii71 by striking and at the end2 7iii7 by striking subparagraph 7,d72 7iv7 by redesignating subparagraphs 7,e7 and 7,f7 as subparagraphs 7,d7 and 7,e71 respectively2 and 7v7 in the flush matter following subparagraph 7,e77ii71 as so redesignated1 by striking becomes entitled to an old-age insurance benefit and all that follows through such deceased individual12 7,b7 by striking subparagraph 7,a7 in paragraph 7#b7 and inserting the following3 7#b7 7,a7 ,except as provided in subsection 7k77#e71 subsection 7q71 and subparagraph 7,d7 of this paragraph1 such widower's insurance benefit for each month shall be equal to the greater of-- 7i7 subject to paragraph 7#i71 the primary insurance amount 7as determined for purposes of this subsection after application of subparagraphs 7,b7 and 7,c77 of such deceased individual2 or 7ii7 subject to paragraphs 7#i7 and 7#aj71 in the case of a fully-insured widower or surviving divorced husband1 #ge percent of the sum of any old-age or disability insurance benefit for which the widower or the surviving divorced husband is entitled for such month and the primary insurance amount 7as determined for purposes of this subsection after application of subparagraphs 7,b7 and 7,c77 of such deceased individual4 2 7,c7 in paragraph 7#e7-- 7i7 in subparagraph 7,a71 by striking paragraph 7#a77;,f7 and inserting paragraph 7#a77;,e72 and 7ii7 in subparagraph 7,b71 by striking paragraph 7#a77;,f77i7 and inserting paragraph 7#a77;,e77i72 and 7,d7 by adding at the end the following new paragraphs3 7#i7 ,for purposes of clauses 7i7 and 7ii7 of paragraph 7#b77;,a71 in the case of a surviving divorced husband1 the amount determined under either such clause 7and1 for purposes of clause 7ii7 of paragraph 7#b77;,a71 as determined after application of paragraph 7#aj77 shall be equal to the applicable percentage 7as determined under section #bjb7;c77#b77;,b77 of such amount 7as determined before application of this paragraph but after application of subsection 7k77#c774 7#aj7 ,for purposes of paragraph 7#b77;,a77ii71 the amount determined under such paragraph shall not exceed the primary insurance amount for such month of a hypothetical individual-- 7,a7 who became entitled to old-age insurance benefits upon attaining early retirement age during the month in which the deceased individual referred to in paragraph 7#a7 became entitled to old-age or disability insurance benefits1 or died 7before becoming entitled to such benefits72 and 7,b7 to whom wages and self-employment income were credited in each of such hypothetical individual's elapsed years 7within the meaning of section #bae7;b77#b77;,b77iii77 in an amount equal to the national average wage index 7as described in section #bji7k77#a77 for each such year4 4 7#c7 ,reduction of benefit for individuals entitled to simultaneous benefits ,section #bjb7k77#c7 of the ,social ,security ,act 7#db ,u4,s4,c4 #djb7k77#c77 is amended-- 7,a7 in subparagraph 7,a71 by striking ,if an individual and inserting ,except as provided in subparagraph 7,c71 if an individual2 and 7,b7 by adding at the end the following new subparagraph3 7,c7 ,if an individual is entitled for any month to a widow's or widower's insurance benefit and is also entitled to an old-age or disability insurance benefit for such month that is greater than such widow's or widower's insurance benefit1 the reduction described in subparagraph 7,a71 with respect to such widow's or widower's insurance benefit1 shall be carried out by substituting an amount equal to the primary insurance amount of the deceased individual referred to in subsection 7e77#a7 or 7f77#a7 7as determined for purposes of subsection 7e77#b77;,a77i7 or 7f77#b77;,a77i77 for the amount equal to the old-age or disability insurance benefit of the individual entitled to the widow's or widower's insurance benefit4 4 7c7 ,conforming amendments ,section #baf7;d7 of the ,social ,security ,act 7#db ,u4,s4,c4 #daf7;d77 is amended-- 7#a7 in paragraph 7#a71 by striking #aj years and inserting #e years2 7#b7 in paragraph 7#b71 by striking #aj years and inserting #e years2 7#c7 in paragraph 7#d71 by striking #aj years and inserting #e years2 and 7#d7 in paragraph 7#e71 by striking #aj years and inserting #e years4 7d7 ,effective date ,the amendments made by this section shall apply with respect to wife's insurance benefits1 husband's insurance benefits1 widow's insurance benefits1 and widower's insurance benefits that are payable for months beginning after ,december #ca1 #bjad4 #c4 ,extended benefit eligibility for children who are full-time students 7a7 ,in general 7#a7 ,extension of benefits ,section #bjb7;d7 of the ,social ,security ,act 7#db ,u4,s4,c4 #djb7;d77 is amended-- 7,a7 in paragraphs 7#a77;,b71 7#a77;,e71 7#a77;,f77i71 7#a77;,g77ii71 7#f77;,a71 7#f77;,d71 7#f77;,e77i71 7#g77;,a71 7#g77;,b71 and 7#g77;,d71 by striking full-time elementary or secondary school student each place it appears and inserting full-time student2 7,b7 in paragraphs 7#a77;,b71 7#a77;,f77ii71 7#a77;,g77iii71 7#f77;,a71 7#f77;,d71 7#f77;,e77ii71 and 7#g77;,d71 by striking #ai each place it appears and inserting #bc2 7,c7 in subparagraphs 7,a71 7,b71 and 7,d7 of paragraph 7#g71 by striking elementary or secondary school each place it appears and inserting educational institution2 7,d7 in paragraph 7#g77;,a71 by striking schools involved and inserting institutions involved2 7,e7 in paragraph 7#g71 by amending subparagraph 7,c7 to read as follows3 7,c7 ,for purposes of this subsection1 the term educational institution means-- 7i7 a school which provides elementary or secondary education as determined under the law of the ,state or other jurisdiction in which it is located2 and 7ii7 an institution described in section #ajb of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjb74 2 and 7,f7 in paragraph 7#g77;,d71 by striking diploma or equivalent certificate from a secondary school 7as defined in subparagraph 7,c77i77 and inserting diploma1 degree1 or equivalent certificate from an institution described in subparagraph 7,c77ii74 7#b7 ,effective date ,the amendments made by this subsection shall apply to child's insurance benefits that are payable for months beginning after ,december #ca1 #bjad4 7b7 ,temporary exclusion from determination of maximum family benefits ,section #bjc7;a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #djc7;a77 is amended-- 7#a7 in paragraph 7#c7-- 7,a7 by redesignating subparagraph 7,d7 as subparagraph 7,e72 and 7,b7 by inserting after subparagraph 7,c7 the following new subparagraph3 7,d7 ,during the period that begins on ,january #a1 #bjae1 and ends on ,december #ca1 #bjai1 when any of such individuals has attained age #ai and is entitled to monthly benefits as a child who is a full-time student under section #bjb7;d77#a77;,b77i7 for any month1 the benefit to which he or she is entitled on the basis of the wages and self-employment income of such insured individual for such month shall be determined without regard to this subsection1 and the benefits of all other individuals who are entitled for such month to monthly benefits under section #bjb on the wages and self-employment income of such insured individual shall be determined as if no such child were entitled to benefits for such month4 2 and 7#b7 in paragraph 7#f71 by inserting 7#c77;,e71 after 7#c77;,d714 7c7 ,railroad ,retirement ,act 7#a7 ,section #b7;d7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bcb7b77;d77 is amended-- 7,a7 in clause 7iii7 of paragraph 7#a71 by striking will be less than nineteen years of age and a full-time elementary or secondary school student and inserting will be less than #bc years of age and a full-time student at an educational institution 7as defined in section #bjb7;d77#g7 of the ,social ,security ,act72 and 7,b7 in paragraph 7#d7-- 7i7 by striking elementary or secondary school each place it appears and inserting educational institution2 7ii7 by striking nineteen and inserting #bc2 and 7iii7 by striking a diploma or equivalent certificate from a secondary school 7as defined in section #bjb7;d77#g77;c77i7 of the ,social ,security ,act7 and inserting a diploma1 degree1 or equivalent certificate from an institution described in section #bjb7;d77#g77;,c77ii7 of the ,social ,security ,act4 7#b7 ,section #e7;c77#g7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bce7;c77#g77 is amended-- 7,a7 by striking elementary or secondary school and inserting educational institution2 and 7,b7 by striking #ai and inserting #bc4 #d4 ,establishment of payroll surtax for high-income individuals 7a7 ,self-,employment income surtax ,section #adja of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by redesignating subsection 7c7 as subsection 7d71 and 7#b7 by inserting after subsection 7b7 the following new subsection3 7c7 ,additional tax for old-,age1 survivors1 and disability insurance 7#a7 ,in general ,in addition to the taxes imposed by the preceding subsections1 there is hereby imposed on every individual for each taxable year beginning after ,december #ca1 #bjad1 a tax equal to #d percent of additional self-employment income for such taxable year4 7#b7 ,additional self-employment income ,for purposes of paragraph 7#a71 the term additional self-employment income means1 for any taxable year1 the amount 7not less than zero7 equal to the excess of-- 7,a7 the sum of self-employment income 7determined without regard to section #adjb7;b77#a77 for the taxable year and wages 7as defined in section #caba7;a71 determined without regard to paragraph 7#a7 thereof7 paid to such individual during such taxable year1 over 7,b7 the sum of the additional wages 7as defined in section #caja7;c77#b77 paid to such individual for the taxable year and the amount determined under paragraph 7#c7 for the taxable year4 ,rules similar to the rules of subparagraph 7,a7 of the second sentence of section #adjb7;b7 shall apply for purposes of determining wages under clause 7i74 7#c7 ,exemption amount ,the amount determined under this paragraph is an amount equal to-- 7,a7 in the case of a taxable year beginning after ,december #ca1 #bjad1 and before ,january #a1 #bjaf1 #djj1jjj1 and 7,b7 in the case of any taxable year beginning after ,december #ca1 #bjae1 the product of-- 7i7 #djj1jjj1 and 7ii7 the quotient obtained by dividing-- 7,i7 the national average wage index 7as defined in section #bji7k77#a77 for the calendar year which is #b years before the calendar year in which the taxable year begins1 by 7,,ii7 the national average wage index for calendar year #bjac4 4 7b7 ,employee wage surtax ,section #caja of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by redesignating subsection 7c7 as subsection 7d71 and 7#b7 by inserting after subsection 7b7 the following new subsection3 7c7 ,additional tax for old-,age1 survivors1 and disability insurance 7#a7 ,in general ,in addition to the taxes imposed by the preceding subsections1 there is hereby imposed on the income of every individual a tax equal to #b percent of additional wages 7as defined in paragraph 7#b77 which are received with respect to employment during any calendar year beginning after ,december #ca1 #bjad4 7#b7 ,additional wages ,for purposes of paragraph 7#a71 the term additional wages has the same meaning given the term wages under section #caba7;a7 7determined without regard to paragraph 7#a7 thereof71 except that such term shall not include that amount of remuneration that is less than-- 7,a7 for calendar year #bjae1 #djj1jjj1 and 7,b7 for any calendar year after #bjae1 the product of-- 7i7 #djj1jjj1 and 7ii7 the quotient obtained by dividing-- 7,i7 the national average wage index 7as defined in section #bji7k77#a77 for the second preceding calendar year1 by 7,,ii7 the national average wage index for calendar year #bjac4 4 7c7 ,employer wage surtax ,section #caaa of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7f7 ,additional tax for old-,age1 survivors1 and disability insurance 7#a7 ,in general ,in addition to the taxes imposed by subsections 7a7 and 7b71 there is hereby imposed on every employer an excise tax1 with respect to having individuals in his employ1 equal to #b percent of additional wages 7as defined in paragraph 7#b77 paid by the employer with respect to employment during any calendar year beginning after ,december #ca1 #bjad4 7#b7 ,additional wages ,for purposes of paragraph 7#a71 the term additional wages has the same meaning given such term under section #caja7;c74 4 7d7 ,railroad ,retirement ,tax ,act 7#a7 ,railroad employees ,section #cbja of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by redesignating subsection 7c7 as subsection 7d71 and 7,b7 by inserting after subsection 7b7 the following new subsection3 7c7 ,additional tier #a tax 7#a7 ,in general ,in addition to the taxes imposed by the preceding subsections1 there is hereby imposed on the income of each employee a tax equal to #b percent of additional compensation 7as defined in paragraph 7#b77 received by such employee during any calendar year beginning after ,december #ca1 #bjad1 for services rendered by such employee4 7#b7 ,additional compensation ,for purposes of paragraph 7#a71 the term additional compensation has the same meaning given the term compensation under section #cbca7;e7 7determined without regard to paragraph 7#b7 thereof71 except that such term shall not include that amount of remuneration that is less than-- 7,a7 for calendar year #bjae1 #djj1jjj1 and 7,b7 for any calendar year after #bjae1 the product of-- 7i7 #djj1jjj1 and 7ii7 the quotient obtained by dividing-- 7,i7 the national average wage index 7as defined in section #bji7k77#a77 for the second preceding calendar year1 by 7,,ii7 the national average wage index for calendar year #bjac4 4 7#b7 ,railroad employee representatives ,section #cbaa of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by redesignating subsection 7c7 as subsection 7d71 and 7,b7 by inserting after subsection 7b7 the following new subsection3 7c7 ,additional tier #a tax ,in addition to the taxes imposed by the preceding subsections1 there is hereby imposed on the income of each employee representative a tax equal to #d percent of additional compensation 7as defined under section #cbja7;c77 received by such employee representative during any calendar year beginning after ,december #ca1 #bjad1 for services rendered by such employee representative4 4 7#c7 ,railroad employers ,section #cbba of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7e7 ,additional tier #a tax ,in addition to the taxes imposed by subsections 7a7 and 7b71 there is hereby imposed on every employer an excise tax1 with respect to having individuals in his employ1 equal to #b percent of additional compensation 7as defined under section #cbja7;c77 paid by such employer during any calendar year beginning after ,december #ca1 #bjad1 for services rendered to such employer4 4 7#d7 ,social ,security ,equivalent ,benefit ,account ,section #ae;,a7b77#a77;,a7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bcan-#a7;b77#a77;,a77 is amended by striking sections #cbja7;a71 #cbaa7;a77#a71 and #cbba7;a7 of the ,railroad ,retirement ,tax ,act and inserting subsections 7a7 and 7c7 of section #cbja1 subsections 7a7 and 7c7 of section #cbaa1 and subsections 7a7 and 7e7 of section #cbba of the ,internal ,revenue ,code of #aihf4 7e7 ,amendments to the ,social ,security ,act 7#a7 ,transfer of amounts to ,federal ,old-,age and ,survivors ,insurance ,trust ,fund ,section #bja of the ,social ,security ,act 7#db ,u4,s4,c4 #dja7 is amended-- 7,a7 in subsection 7b77#c7-- 7i7 by inserting and additional wages 7as defined in section #adjb7;c7 of such ,code7 after section #caba of such ,code71 7ii7 by inserting and additional wages after such wages1 7iii7 by inserting and additional wages after which wages1 and 7iv7 by inserting and additional wages after records of wages1 7,b7 in subsection 7b77#d7-- 7i7 by inserting and additional self-employment income 7as defined in section #caja7;c7 of such ,code7 after section #adjb of such ,code71 7ii7 by inserting and additional self-employment income after such self-employment income1 7iii7 by inserting and additional self-employment income after which self-employment income1 and 7iv7 by inserting and additional self-employment income after records of self-employment income1 7,c7 in subsection 7c77#a77,r7-- 7i7 by inserting and additional wages 7as so defined7 after wages 7as so defined71 7ii7 by inserting and additional wages after which wages1 and 7iii7 by inserting and additional wages after records of wages1 and 7,d7 in subsection 7c77#b77,r7-- 7i7 by inserting and additional self-employment income 7as so defined7 after self-employment income 7as so defined71 7ii7 by inserting and additional self-employment income after which self-employment income1 and 7iii7 by inserting and additional self-employment income after records of self-employment income4 7#b7 ,definition of additional wages ,section #bji of the ,social ,security ,act 7#db ,u4,s4,c4 #dji7 is amended by adding at the end the following new subsection3 7l7 ,additional wages ,for purposes of this title1 the term additional wages has the same meaning given the term wages 7determined without regard to subsection 7a77#a771 except that such term shall not include that amount of remuneration that is less than-- 7#a7 for calendar year #bjae1 #djj1jjj1 and 7#b7 for any calendar year after #bjae1 the product of-- 7,a7 #djj1jjj1 and 7,b7 the quotient obtained by dividing-- 7i7 the national average wage index 7as defined in section #bji7k77#a77 for the second preceding calendar year1 by 7ii7 the national average wage index for calendar year #bjac4 4 7#c7 ,definition of additional self-employment income ,section #baa of the ,social ,security ,act 7#db ,u4,s4,c4 #daa7 is amended by adding at the end the following new subsection3 7m7 ,additional ,self-,employment ,income 7#a7 ,for purposes of this title1 the term additional self-employment income means1 for any taxable year1 the amount equal to the excess 7if any7 of-- 7,a7 the sum of self-employment income 7determined without regard to subsection 7b77#a77 for the taxable year and wages 7as defined in section #bji7;a71 determined without regard to paragraph 7#a7 thereof7 paid to such individual during such taxable year1 over 7,b7 the sum of the additional wages paid to such individual for the taxable year and the amount determined under paragraph 7#b7 for the taxable year4 7#b7 ,the amount determined under this paragraph is an amount equal to-- 7,a7 in the case of a taxable year beginning after ,december #ca1 #bjad1 and before ,january #a1 #bjaf1 #djj1jjj1 and 7,b7 in the case of any taxable year beginning after ,december #ca1 #bjae1 the product of-- 7i7 #djj1jjj1 and 7ii7 the quotient obtained by dividing-- 7,i7 the national average wage index 7as defined in section #bji7k77#a77 for the calendar year which is #b years before the calendar year in which the taxable year begins1 by 7,,ii7 the national average wage index for calendar year #bjac4 4 #e4 ,inclusion of surplus earnings in social security benefit formula 7a7 ,inclusion of surplus average indexed monthly earnings in determination of primary insurance amounts ,section #bae7;a77#a77;,a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;a77#a77;,a77 is amended-- 7#a7 in clauses 7i71 7ii71 and 7iii71 by inserting basic before average indexed monthly earnings each place it appears2 7#b7 in clause 7ii71 by striking and at the end2 7#c7 in clause 7iii71 by inserting and at the end2 and 7#d7 by inserting after clause 7iii7 the following new clause3 7iv7 #b percent of the individual's surplus average indexed monthly earnings1 4 7b7 ,basic ,,aime and surplus ,,aime 7#a7 ,basic ,,aime ,section #bae7;b77#a7 of such ,act 7#db ,u4,s4,c4 #dae7;b77#a77 is amended-- 7,a7 in the matter preceding subparagraph 7,a71 by inserting basic before average2 and 7,b7 in subparagraph 7,a71 by striking paragraph 7#c7 and inserting paragraph 7#c77;,a7 and by inserting before the comma the following3 to the extent such total does not exceed the contribution and benefit base for the applicable year4 7#b7 ,surplus ,,aime 7,a7 ,in general ,section #bae7;b77#a7 of such ,act 7as amended by paragraph 7#a77 is amended-- 7i7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively2 7ii7 by inserting 7,a7 after 7b77#a72 and 7iii7 by adding at the end the following new subparagraph3 7,b7 7i7 ,an individual's surplus average indexed monthly earnings shall be equal to the quotient obtained by dividing-- 7,i7 the total 7after adjustment under paragraph 7#c77;,b77 of such individual's surplus earnings 7determined under clause 7ii77 for such individual's benefit computation years 7determined under paragraph 7#b771 by 7,,ii7 the number of months in those years4 7ii7 ,for purposes of clause 7i7 and paragraph 7#c77;,b71 an individual's surplus earnings for a benefit computation year are the total of such individual's additional wages 7as defined in section #bji7l77 paid in and additional self-employment income 7as defined in section #bji7m77 credited to such benefit computation year1 to the extent such total does not exceed the amount determined for such year under clause 7iii74 7iii7 ,for purposes of clause 7ii71 the amount determined under this clause is-- 7,i7 in the case of a benefit computation year beginning after ,december #ca1 #bjad1 and before ,january #a1 #bjaf1 #ejj1jjj2 and 7,,ii7 in the case of any benefit computation year beginning on or after ,january #a1 #bjaf1 the product of #ejj1jjj and the quotient obtained by dividing-- 7aa7 the national average wage index 7as defined in section #bji7k77#a77 for the calendar year which is #b years before the calendar year in which the benefit computation year begins1 by 7bb7 the national average wage index for calendar year #bjac4 4 7,b7 ,conforming amendment ,the heading for section #bae7;b7 of such ,act is amended by striking ,average ,indexed ,monthly ,earnings and inserting ,basic ,average ,indexed ,monthly ,earnings2 ,surplus ,average ,indexed ,monthly ,earnings4 7#c7 ,adjustment of surplus earnings for purposes of determining surplus ,,aime ,section #bae7;b77#c7 of such ,act 7#db ,u4,s4,c4 #dae7;b77#c77 is amended-- 7,a7 in subparagraph 7,a71 by striking subparagraph 7,b7 and inserting subparagraph 7,c7 and by inserting and determination of basic average indexed monthly income after paragraph 7#b72 7,b7 by redesignating subparagraph 7,b7 as subparagraph 7,c72 and 7,c7 by inserting after subparagraph 7,a7 the following new subparagraph3 7,b7 ,for purposes of determining under paragraph 7#a77;,b7 an individual's surplus average indexed monthly earnings1 the individual's surplus earnings 7described in paragraph 7#a77;,b77ii77 for a benefit computation year shall be deemed to be equal to the product of-- 7i7 the individual's surplus earnings for such year 7as determined without regard to this subparagraph71 and 7ii7 the quotient described in subparagraph 7,a77ii74 4 7c7 ,railroad ,retirement ,act ,section #a7;h77#e7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bca7;h77#e77 is amended-- 7#a7 by striking and at the end of clause 7ii72 7#b7 by striking the period at the end of clause 7iii7 and inserting 2 and2 and 7#c7 by adding at the end the following new clause3 7iv7 for each such calendar month after #bjad1 the amount which is creditable as such individual's additional wages under section #bji7l7 of the ,social ,security ,act4 4 7d7 ,effective date ,the amendments made by this section shall apply with respect to individuals who initially become eligible 7within the meaning of section #bae7;a77#c77;,b7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;a77#c77;,b777 for old-age or disability insurance benefits under title ,,ii of the ,social ,security ,act1 or who die 7before becoming eligible for such benefits71 in any calendar year after #bjad4