Page:United States Statutes at Large Volume 95.djvu/656

 95 STAT. 630

45 USC 231c. 42 USC 401.

45 USC 231a.

45 USC 231b.

45 USC 23lf.

PUBLIC LAW 97-35—AUG. 13, 1981 be disregarded in determining the applicability and amount of deductions in a spouse's annuity pursuant to subdivision (2) of this subsection. "(4) Deductions shall not be made pursuant to subdivision (2) from that portion of a spouse's annuity as is computed under section 4(a) of this Act for any month in which the annuity of such spouse is reduced due to entitlement to a benefit under title II of the Social Security Act.

"(5) If an annuity begins to accrue on other than the first day of a month, subdivisions (1) and (2) of this subsection shall not apply in the year the annuity begins to accrue if the annuitant has no earnings in excess of the monthly exempt amount in such year after the annuity beginning date.". (f) Section 2(g)(2) of the Railroad Retirement Act of 1974 is amended by striking out "is under the age of seventy-two and is" and inserting in lieu thereof "would be". (g) Section 2(h) of the Railroad Retirement Act of 1974 is amended— (1) by striking out "spouse" in subdivision (1) and inserting in lieu thereof "spouse or divorced wife", and (2) by striking out "spouse" the first place it appears in subdivision (3) and inserting in lieu thereof "spouse or divorced wife". SEC. 1118. (a) Subsection (b) of section 3 of the Railroad Retirement Act of 1974 is amended to read as follows: "(b)(1) The amount of the annuity of an individual provided under subsection (a) shall be increased by an amount equal to seven-tenths of 1 per centum of the product which is obtained by multiplying such individual's 'y^^rs of service' by such individual's 'average monthly compensation' as determined under this subsection. The annuity amount payable to the individual under this subsection shall be reduced by 25 per centum of the annuity amount computed for such individual under subsection (h)(1) or (h)(2), and subsection (h)(5), of this section without regard to section 7(c)(l) of this Act. An individual's 'average monthly compensation' for purposes of this subsection shall be the quotient obtained by dividing by 60 such individual's total compensation for the 60 months, consecutive or otherwise, during which such individual received that individual's highest monthly compensation, except that no part of any month's compensation in excess of the maximum amount creditable for any individual for such month under subsection 0) of this section shall be recognized. In determining the months of compensation to be used for purposes of this subsection, the total compensation reported for the individual under section 9 of this Act or credited to such individual under subsection (j) of this section for a year divided by the number of months of service credited to such individual under subsection (i) of this section with respect to such year shall be considered the monthly compensation of the individual for each month of service in any year for which records of the Board do not show the amount of compensation paid to the individual on a monthly basis. If the 'average monthly compensation' computed under this subsection is not a multiple of $1, it shall be rounded to the next lower multiple of $1. "(2) For purposes of subdivision (1) of this subsection, in determining 'average monthly compensation' for an individual who has not engaged in employment for an employer in the 60-month period preceding the month in which such individual's annuity began to accrue, and whose major employment during such 60-month period was for a United States department or agency named in section l(o) of

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