(I) has attained age 65 or (II) is not entitled to benefits under subsection (a) of this section or section 423 of this title," at the end of subpar. (C), and substituted "age 65" for "age 62" and inserted ", if he became entitled to such benefits before he attained age 60," preceding "the third month" in the provisions following subpar. (G).

Subsec. (f) (3). Pub. L. 92-603, § 102 (b) (2), designated existing provisions as subpar. (A) and added subpar. (B) and in subpar. (A) as so designated added reference to subpar. (B) of this par. and substituted "the primary insurance amount" for "822 percent of the primary amount".

Subsec. (f) (5). Pub. L. 92-603, § 107(a) (3), substituted "the age of 60" for "the age of 62".

Subsec. (f) (6). Pub. L. 92-603, § 107(a) (1), substituted "age 60" for "age 62".

Subsec. (f) (7). Pub. L. 92-603, § 116(c), substituted "five", "seventeenth", and "fifth" for "six", "eighteenth", and "sixth", respectively.

Subsec. (g) (1) (F). Pub. L. 92-603, § 114 (c), struck out cl. (1) covering the support aspects of a surviving divorced mother and redesignated cl. (ii) and (iii) as cl. (i) and (ii), respectively.

Subsec. (k) (2) (A). Pub. L. 92-603, § 110(a), inserted provisions establishing exceptions to the rule that a child's benefits in the case where the child is entitled on more than one wage record shall be based on the wages and self-employment of the insured individual with the greatest primary insurance amount.

Subsec. (k) (3) (A). Pub. L. 92-603, § 102(d), inserted reference to subsection (e) (2) or (f) (3) of this section. Subsec. (m). Pub. L. 92–603, § 102(f), amended subsec. generally to increase the minimums on survivor's benefits. Subsec. (q) (1). Pub. L. 90-603, § 102(e) (1), generally provided for an increase in widow's and widower's insurance benefits through the insertion of provisions covering such benefits in subpar. (A), and in the provisions preceding subpar. (C), and through the substitution of a 43/240 fraction in subpar. (C) for a 43/198 fraction.

Subsec. (q) (3). Pub. L. 92-603, § 102(e) (2) (5), redesignated existing provisions of subpars. (E) (11) and (F)(ii) as subclauses (I) and (II) and in subclauses (I) of each such subpar. as so redesignated substituted “would be reduced under paragraph (1) if the period specified in paragraph (6) (A) ended with the month before the month in which she or he attained age 62" for "was reduced for the month in which such individual attained retirement age", substituted in subpar. (G) "as if the period specified in paragraph (6)(A) (or, if such paragraph does not apply, the period specified in paragraph (6) (B)) ended with the month before" for "had such individual attained age 62 in", and added subpar. (H).

Subsec. (q) (7). Pub. L. 92-603, § 102(e) (3), divided existing source references for "adjusted reduction period" and "additional adjusted reduction period" into separate references to subpars. (A) and (B) of par. (6) in the provisions preceding subpar. (A) and, in subpar. (E), substituted "attained age 62, and also for any later month before the month in which he attained retirement age," for "attained retirement age".

Subsec. (q) (9). Pub. L. 92-603, § 102 (e) (4), struck out provisions which had set age 62 as the meaning of the term "retirement age" with respect to a widow's and widower's insurance benefits.

Subsec. (s) Pub. L. 92-603, § 108 (e), struck out "which began before he attained such age" following "disability (as defined in section 423 (d) of this title)" in par. (1) and struck out "which began before such child attained the age of 18" following "disability (as defined in section 423 (d) of this title)" in pars. (2) and (3).

Subsec. (w). Pub. L. 92-603, § 103 (a), added subsec. (w). 1971-Subsec. (1) (3). Pub. L. 92-223, § 1(a), added cl.

(3).

Subsec. (1) (4). Pub. L. 92–223, § 1(a), (b), redesignated former cl. (3) as (4) and included reference to cl. (3) in the second sentence.

EFFECTIVE DATE OF 1973 AMENDMENT

Section 240 (b) of Pub. L. 93-66 provided that: "The amendment made by subsection (a) [enacting item (III) of subsec. (d) (8) (D) (ii) of this section] shall apply with respect to monthly benefits payable under title II of the

Social Security Act [this subchapter] for months after the month in which this Act is enacted [July 1973] on the basis of applications for such benefits filed in or after the month in which this Act is enacted [July 1973]."

EFFECTIVE DATE OF 1972 AMENDMENT

Section 102(1) of Pub. L. 92-603 provided that: "The amendments made by this section [amending subsecs. (e), (f), (k), (m), and (q) of this section and section 403 (c) and (f) of this title and enacting provisions set out as notes under this section] shall apply with respect to monthly benefits under title II of the Social Security Act [this subchapter] for months after December 1972."

Section 103 (d) of Pub. L. 92-603 provided that: "The amendments made by this section [enacting subsec. (w) of this section and amending subsec. (a) of this section and section 403 (a) (2) (C) of this title] shall be applicable with respect to old-age insurance benefits payable under title II of the Social Security Act [this subchapter] for months beginning after 1972."

Section 107(c) of Pub. L. 92-603 provided that: "The amendments made by this section [amending subsec. (f) of this section and sections 403 (c), (f) (1) (D), 422(b) (1), (d) (1) (D), and 425 of this title] shall apply with respect to monthly benefits under title II of the Social Security Act [this subchapter] for months after December 1972, except that in the case of an individual who was not entitled to a monthly benefit under title II of such Act [this subchapter] for December 1972 such amendments shall apply only on the basis of an application filed in or after the month in which this Act is enacted [Oct. 1972].” Section 108 (f) of Pub. L. 92-603 provided that: "The amendments made by this section [amending subsecs. (d) (1) (6), and (s) of this section] shall apply only with respect to monthly benefits under section 202 of the Social Security Act [this section] for months after December 1972 except that in the case of an individual who was not entitled to a monthly benefit under such section 202 [this section] for December 1972 such amendments shall apply only on the basis of an application filed after September 30, 1972."

Section 109 (b) of Pub. L. 92-603 provided that: "The amendment made by subsection (a) [adding subsec. (d) (7) (D) of this section] shall apply only with respect to benefits payable under title II of the Social Security Act [this subchapter] for months after December 1972." Section 110(b) of Pub. L. 92-603 provided that: "The amendment made by subsection (a) [amending subsec. (k) (2) (A) of this section] shall apply only with respect to monthly benefits under title II of the Social Security Act [this subchapter] for months after December 1972."

Section 111(b) of Pub. L. 92-603 provided that: "The amendment made by subsection (a) [amending subsec. (d) (8) of this section] shall apply with respect to monthly benefits payable under title II of the Social Security Act [this subchapter] for months after December 1967 on the basis of an application filed in or after the month in which this Act is enacted [Oct. 1972], except that such amendments shall not apply with respect to benefits for any month before the month in which this Act is enacted [Oct. 1972] unless such application is filed before the close of the sixth month after the month in which this Act is enacted [Oct. 1972]."

Section 113 (c) of Pub. L. 92-603 provided that: "The amendments made by this section [enacting subsec. (d) (9) of this section and amending section 416(e) of this title] shall apply with respect to monthly benefits payable under title II of the Social Security Act [this subchapter] for months after December 1972, but only on the basis of applications filed on or after the date of the enactment of this Act [Oct. 30, 1972]."

Amendment of subsecs. (e)(6) and (f) (7) of this section by section 116 (b), (c), of Pub. L. 92-603 effective with respect to applications for widow's and widower's insurance benefits based on disability under this section filed in or after Oct. 1972 or before Oct. 1972 under specified conditions, see section 116(e) of Pub. L. 92-603, set out as a note under section 423 of this title.

Section 112(b) of Pub. L. 92-603 provided that: "The amendment made by subsection (a) [striking out provisions covering this subchapter] shall apply only with respect to monthly benefits under title II of the Social

Security Act [this subchapter] for months beginning with the month in which this Act is enacted [Oct. 1972]." Section 114(d) of Pub. L. 92-603 provided that: "The amendments made by this section [amending subsecs. (b) (1), (e) (1), (6), and (g) (1) (F) of this section to eliminate support requirements as condition of benefits] shall apply only with respect to benefits payable under title II of the Social Security Act [this subchapter] for months after December 1972 on the basis of applications filed on or after the date of enactment of this Act [Oct. 30, 1972]."

EFFECTIVE DATE OF 1971 AMENDMENT

Section 2 of Pub. L. 92-223 provided that: "The amendments made by the first section of this Act [enacting subsec. (1)(3) and amending subsec. (1) (4) of this section] shall be effective only in the case of lump-sum death payments under title II of the Social Security Act [this subchapter] made with respect to deaths which occur after December 31, 1970."

COST-OF-LIVING INCREASE IN SOCIAL SECURITY BENEFITS; EFFECTIVE Date; CONSUMER PRICE INDEX PERCENTAGE

Section 201 of Pub. L. 93-66, as amended by Pub. L. 93-233, § 1(a)-(e), Dec. 30, 1973, 87 Stat. 947, provided that:

"(a) (1) The Secretary of Health, Education, and Welfare (hereinafter in this section referred to as the 'Secretary') shall, in accordance with the provisions of this section, increase the monthly benefits and lump-sum death payments payable under title II of the Social Security Act [this subchapter] by 7 per centum.

"(2) The provisions of this section (and the increase in benefits made hereunder) shall be effective, in the case of monthly benefits under title II of the Social Security Act [this subchapter] only for months after February 1974 and prior to June 1974, and, in the case of lump-sum death payments under such title [this subchapter], only with respect to deaths which occur after February 1974 and prior to June 1974.

"(b) The increase in social security benefits authorized under this section shall be provided, and any determinations by the Secretary in connection with the provision of such increase in benefits shall be made, in the manner prescribed in section 215(1) of the Social Security Act [section 415 (1) of this title] for the implementation of cost-of-living increases authorized under title II of such Act [this subchapter] except that—

"(1) the amount of such increase shall be 7 per centum,

"(2) in the case of any individual entitled to monthly insurance benefits payable pursuant to section 202 (e) of such Act [subsec. (e) of this section] for February 1974 (without the application of section 202 (j) (1) or 223 (b) of such Act [subsec. (1) (1) of this section or section 423 (f) of this title]), including such benefits based on a primary insurance amount determined under section 215(a)(3) of such Act as amended by this section [section 415(a) (3) of this title], such increase shall be determined without regard to paragraph (2) (B) of such section 202 (e) [subsec. (e) of this section], and "(3) in the case of any individual entitled to monthly insurance benefits payable pursuant to section 202(f) of such Act [subsec. (f) of this section] for February 1974 (without the application of section 202(j) (1) or 223(b) of such Act [subsec. (j) (1) of this section or section 423 (f) of this title]), including such benefits based on a primary insurance amount determined under section 215(a)(3) of such Act as amended by this section [section 415(a) (3) of this title], such increase shall be determined without regard to paragraph (3) (B) of such section 202(f) [subsec. (f) of this section].

"(c) The increase in social security benefits provided by this section shall

"(1) not be considered to be an increase in benefits made under or pursuant to section 215(i) of the Social Security Act [section 415(i) of this title], and

"(2) not (except for purposes of section 203 (a) (2) of such Act [section 403 (a) (2) of this title], as in effect after February 1974) be considered to be a 'general benefit increase under this title' [this subchapter] (as such

term is defined in section 215(i) (3) of such Act) [section 415(1)(3) of this title];

and nothing in this section shall be construed as authorizing any increase in the 'contribution and benefit base' (as that term is employed in section 230 of such Act) [section 430 of this title], or any increase in the 'exempt amount' (as such term is used in section 203 (f) (8) of such Act [section 403 (f) (8) of this title]).

"(d) Nothing in this section shall be construed to authorize (directly or indirectly) any increase in monthly benefits under title II of the Social Security Act [this subchapter] for any month after May 1974, or any increase in lump-sum death payments payable under such title in the case of deaths occurring after May 1974. The recognition of the existence of the increase in benefits authorized by the preceding subsections of this section (during the period it was in effect) in the application, after May 1974, of the provisions of sections 202 (q) and 203 (a) of such Act [subsec. (q) of this section and section 403 (a) of this title] shall not, for purposes of the preceding sentence, be considered to be an increase in a monthly benefit for a month after May 1974." MARCH THROUGH MAY 1974 MONTHLY INSURANCE BENEFIT FOR ONLY INDIVIDUAL ENTITLED TO BENEFIT ON BASIS OF WAGES AND SELF-EMPLOYMENT INCOME OF DECEASED INDIVIDUAL

Section 1(1) of Pub. L. 93-233 provided that: "In the case of an individual to whom monthly benefits are payable under title II of the Social Security Act [this subchapter] for February 1974 (without the application of section 202(j) (1) or 223(b) of such Act [subsec. (j) (1) of this section or section 423(b) of this title]), and to whom section 202 (m) of such Act [subsec. (m) of this section] is applicable for such month, such section [this section] shall continue to be applicable to such benefits for the months of March through May 1974 for which such individual remains the only individual entitled to a monthly benefit on the basis of the wages and self-employment income of the deceased insured individual." REDETERMINATION OF WIDOW'S AND WIDOWER'S BENEFITS FOR DECEMBER 1972 AND AFTER TO PROVIDE FOR 1972 INCREASES

Section 102(g) of Pub. L. 92-603 provided that: "(1) In the case of an individual who is entitled to widow's or widower's insurance benefits for the month of December 1972 the Secretary shall, if it would increase such benefits, redetermine the amount of such benefits for months after December 1972 under title II of the Social Security Act [this subchapter] as if the amendments made by this section [amending this section and section 403 of this title] had been in effect for the first month of such individual's entitlement to such benefits. "(2) For purposes of paragraph (1)—

"(A) any deceased individual on whose wages and self-employment income the benefits of an individual referred to in paragraph (1) are based, shall be deemed not to have been entitled to benefits if the record, of insured individuals who were entitled to benefits, that is readily available to the Secretary contains no entry for such deceased individual; and

"(B) any deductions under subsections (b) and (c) of section 203 of such Act [section 403 of this title], applicable to the benefits of an individual referred to in paragraph (1) for any month prior to September 1965, shall be disregarded in applying the provisions of section 202 (q) (7) of such Act [subsec. (q) (7) of this section] (as amended by this Act) [Pub. L. 92-603]." ADJUSTMENT OF BENEFITS BASED ON DISABILITY WHICH BEGAN BETWEEN AGE 18 AND 22 Section 108 (g) of Pub. L. 92-603 provided that: "Where

"(1) one or more persons are entitled (without the application of sections 202 (j) (1) and 223(b) of the Social Security Act) [subsec. (j) (1) of this section and section 423 (b) of this title] to monthly benefits under section 202 or 223 of such Act [this section or section 423 of this title] for December 1972 on the basis of the wages and self-employment income of an insured individual, and

"(2) one or more persons (not included in paragraph (1)) are entitled to monthly benefits under such section 202 or 223 [this section or section 423 of this title] for January 1973 solely by reason of the amendments made by this section on the basis of such wages and selfemployment income, and

"(3) the total of benefits to which all persons are entitled under such sections 202 and 223 [this section and section 423 of this title] on the basis of such wages and self-employment income for January 1973 is reduced by reason of section 203 (a) of such Act [section 403 (a) of this title] as amended by this Act [Pub. L. 92-603], or would, but for the penultimate sentence of such section 203 (a) [section 403 (a) of this title], be so reduced),

then the amount of the benefit to which each person referred to in paragraph (1) of this subsection is entitled for months after December 1972 shall be adjusted, after the application of such section 203 (a) [section 403(a) of this title], to an amount no less than the amount it would have been if the person or persons referred to in paragraph (2) of this subsection were not entitled to a benefit referred to in such paragraph (2)." TERMINATION OF CHILD'S INSURANCE BENEFITS BY REASON OF ADOPTION

Section 112(c) of Pub. L. 92-603 provided that: "Any child

"(1) whose entitlement to child's insurance benefits under section 202(d) of the Social Security Act [subsec. (d) of this section] was terminated by reason of his adoption, prior to the date of the enactment of this Act [Oct. 30, 1972], and

"(2) who, except for such adoption, would be entitled to child's insurance benefits under such section for a month after the month in which this Act is enacted [Oct. 30, 1972],

may, upon filing application for child's insurance benefits under the Social Security Act after the date of enactment of this Act [Oct. 30, 1972], become reentitled to such benefits; except that no child shall, by reason of the enactment of this section, become reentitled to such benefits for any month prior to the month after the month in which this Act is enacted [Oct. 1972]." SAVINGS CLAUSE; WIDOW'S AND WIDOWER'S BENEFITS FOR DECEMBER 1972 AND JANUARY 1973

Section 102(h) of Pub. L. 92-603 provided that: "Where

"(1) two or more persons are entitled to monthly benefits under section 202 of the Social Security Act [this section] for December 1972 on the basis of the wages and self-employment income of a deceased individual, and one or more of such persons is so entitled under subsection (e) or (f) of such section 202 [subsec. (e) or (f) of this section] and

"(2) one or more of such persons is entitled on the basis of such wages and self-employment income to monthly benefits under subsection (e) or (f) of such section 202 [subsec. (e) or (f) of this section] (as amended by this section) for January 1973, and

(3) the total of benefits to which all persons are entitled under section 202 of such Act [this section] on the basis of such wages and self-employment income for January 1973 is reduced by reason of section 203 (a) of such Act [section 403 (a) of this title], as amended by this Act [Pub. L. 92-603] (or would, but for the penultimate sentence of such section 203 (a) [section 403 (a) of this title], be so reduced), then the amount of the benefit to which each such person referred to in paragraph (1) is entitled for months after December 1972 shall in no case be less after the application of this section and such section 203 (a) [section 403(a) of this title] than the amount it would have been without the application of this section." SAVINGS PROVISIONS FOR BENEFITS AS SURVIVING DIVORCED MOTHER; ADJUSTMENT OF BENEFITS

Section 114(e) of Pub. L. 92-603 provided that: "Where

"(1) one or more persons are entitled (without the application of sections 202 (1) (1) and 223 (b) of the Social Security Act) [subsec. (j) (1) of this section and section 423 (b) of this title] to monthly benefits under

section 202 or 223 of such Act [this section or section 423 of this title] for December 1972 on the basis of the wages and self-employment income of an insured individual, and

"(2) one or more persons (not included in paragraph (1)) are entitled to monthly benefits under such section 202(g) [subsec. (g) of this section] as a surviving divorced mother (as defined in section 216(d) (3) [section 416(d) (3) of this title]) for a month after December 1972 on the basis of such wages and selfemployment income, and

"(3) the total of benefits to which all persons are entitled under such section 202 and 223 [this section and section 423 of this title] on the basis of such wages and self-employment income for any month after December 1972 is reduced by reason of section 203 (a) of such Act [section 403 (a) of this title] as amended by this Act [Pub. L. 92-603] (or would, but for the penultimate sentence of such section 203 (a) [section 403 (a) of this title], be so reduced),

then the amount of the benefit to which each person referred to in paragraph (1) of this subsection is entitled beginning with the first month after December 1972 for which any person referred to in paragraph (2) becomes entitled shall be adjusted, after the application of such section 203 (a) [section 403 (a) of this title], to an amount no less than the amount it would have been if the person or persons referred to in paragraph (2) of this subsection were not entitled to a benefit referred to in such paragraph (2).”

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1395p of this title; title 30 section 902.

§ 403. Reduction of insurance benefits. (a) Maximum benefits.

Whenever the total of monthly benefits to which individuals are entitled under sections 402 and 423 of this title for a month on the basis of the wages and self-employment income of an insured individual is greater than the amount appearing in column V of the table in or deemed to be in section 415(a) of this title on the line on which appears in column IV such insured individual's primary insurance amount, such total of benefits shall be reduced to such amount; except that

(2) when two or more persons were entitled (without the application of section 402 (j) (1) of this title and section 423(b) of this title) to monthly benefits under section 402 or 423 of this title for January 1971 or any prior month on the basis of the wages and self-employment income of such insured individual and the provisions of this subsection as in effect for any such month were applicable in determining the benefit amount of any persons on the basis of such wages and selfemployment income, the total of benefits for any month after January 1971 shall not be reduced to less than the larger of—

(A) the amount determined under the subsection without regard to this paragraph,

(B) the largest amount which has been determined for any month under this subsection for persons entitled to monthly benefits on the basis of such insured individual's wages and self-employment income, or

(C) if any persons are entitled to benefits on the basis of such wages and self-employment income for the month before the effective month (after September 1972) of a general benefit increase under this subchapter (as defined in sec

tion 415 (i) (3) of this title) or a benefit increase under the provisions of section 415(i) of this title, an amount equal to the sum of amounts derived by multiplying the benefit amount determined under this subchapter (excluding part thereof determined under under section 402(w) of this title) for the month before such effective month (including this subsection, but without the application of section 422 (b) of this title, section 402 (q) of this title, and subsections (b), (c), and (d) of this section), for each such person for such month, by a percentage equal to the percentage of the increase provided under such benefit increase (with any such increased amount which is not a multiple of $0.10 being rounded to the next higher multiple of $0.10); but in any such case (i) paragraph (1) of this subsection shall not be applied to such total of benefits after the application of subparagraph (B) or (C), and (ii) if section 402(k) (2) (A) of this title was applicable in the case of any such benefits for a month, and ceases to apply for a month after such month, the provisions of subparagraph (B) or (C) shall be applied, for and after the month in which section 402(k) (2) (A) of this title ceases to apply, as though paragraph (1) had not been applicable to such total of benefits for the last month for which subparagraph (B) or (C) was applicable, (3) when any of such individuals is entitled to monthly benefits as a divorced wife under section 402(b) of this title or as a surviving divorced wife under section 402 (e) of this title for any month, the benefit to which 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 subsection, and the benefits of all other individuals who are entitled for such month to monthly benefits under section 402 of this title on the wages and self-employment income of such insured individual shall be determined as if no such divorced wife or surviving divorced wife were entitled to benefits for such month,

(4) notwithstanding any other provision of law, when

(A) two or more persons are entitled to monthly benefits for a particular month on the basis of the wages and self-employment income of an insured individual and (for such particular month) the provisions of this subsection and section 402 (q) of this title are applicable to such monthly benefits, and

(B) such individual's primary insurance amount is increased for the following month under any provision of this subchapter, then the total of monthly benefits for all persons on the basis of such wages and self-employment income for such particular month, as determined under the provisions of this subsection, shall for purposes of determining the total monthly bene- . fits for all persons on the basis of such wages and self-employment income for months subsequent to such particular month to be considered to have been increased by the smallest amount that would have been required in order to assure that the total of monthly benefits payable on the basis of

such wages and self-employment income for any such subsequent month will not be less (after the application of the other provisions of this subsection and section 402 (q) of this title) than the total of monthly benefits (after the application of the other provisions of this subsection and section 402 (q) of this title) payable on the basis of such wages and self-employment income for such particular month, or

(5) whenever the monthly benefits of such individuals are based on an insured individual's primary insurance amount which is determined under section 415(a) (3) of this title and such primary insurance amount does not appear in column IV of the table in (or deemed to be in) section 415 (a) of this title, the applicable maximum amount in column V of such table shall be the amount in such column that appears on the line on which the next higher primary insurance amount appears in column, IV, or, if larger, the largest amount determined for such persons under this subsection for any month prior to October 1972.

(c) Deductions on account of noncovered work outside the United States or failure to have child in care. Deductions, in such amounts and at such time or times as the Secretary shall determine, shall be made from any payment or payments under this subchapter to which an individual is entitled, until the total of such deductions equals such individual's benefit or benefits under section 402 of this title for any month

For purposes of paragraphs (2), (3), and (4) of this subsection, a child shall not be considered to be entitled to a child's insurance benefit for any month in which paragraph (1) of section 402(s) of this title applies or an event specified in section 422 (b) of this title occurs with respect to such child. Subject to paragraph (3) of such section 402 (s), no deduction shall be made under this subsection from any child's insurance benefit for the month in which the child entitled to such benefit attained the age of eighteen or any subsequent month; nor shall any deduction be made under this subsection from any widow's insurance benefits for any month in which the widow or surviving divorced wife is entitled and has not attained age 65 (but only if she became so entitled prior to attaining age 60), or from any widower's insurance benefit for any month in which the widower is entitled and has not attained age 65 (but only if he became so entitled prior to attaining age 60).

(f) Months to which earnings are charged. For purposes of subsection (b) of this section(1) The amount of an individual's excess earnings (as defined in paragraph (3) shall be charged to months as follows: There shall be charged to the first month of such taxable year an amount of his excess earnings equal to the sum of the payments to which he and all other persons are entitled for such month under section 402 of this title on the basis of his wages and self-employment income (or the total of his excess earnings

if such excess earnings are less than such sum), and the balance, if any, of such excess earnings shall be charged to each succeeding month in such year to the extent, in the case of each such month, of the sum of the payments to which such individual and all other persons are entitled for such month under section 402 of this title on the basis of his wages and self-employment income, until the total of such excess has been so charged. Where an individual is entitled to benefits under section 402(a) of this title and other persons are entitled to benefits under section 402 (b), (c), or (d) of this title on the basis of the wages and self-employment income of such individual, the excess earnings of such individual for anw taxable year shall be charged in accordance with the provisions of this subsection before the excess earnings of such persons for a taxable year are charged to months in such individual's taxable year. Notwithstanding the preceding provisions of this paragraph but subject to section 402 (s) of this title, no part of the excess earnings of an individual shall be charged to any months (A) for which such individual was not entitled to a benefit under this subchapter, (B) in which such individual was age seventy-two or over, (C) in which such individual, if a child entitled to child's insurance benefits, has attained the age of 18, (D) for which such individual is entitled to widow's insurance benefits and has not attained age 65 (but only if she became so entitled prior to attaining age 60), or widower's insurance benefits and has not attained age 65 (but only if he became so entitled prior to attaining age 60), or (E) in which such individual did not engage in self-employment and did not render services for wages (determined as provided in paragraph (5) of this subsection) of more than $200 or the exempt amount as determined under paragraph (8).

(3) For purposes of paragraph (1) and subsection (h) of this section, an individual's excess earnings for a taxable year shall be 50 per centum of his earnings for such year in excess of the product of $200 or the exempt amount as determined under paragraph (8), multiplied by the number of months in such year, except that, in determining an individual's excess earnings for the taxable year in which he attains age 72, there shall be excluded any earnings of such individual for the month in which he attains such age and any subsequent month (with any net earnings or net loss from self-employment in such year being prorated in an equitable manner under regulations of the Secretary). The excess earnings as derived under the preceding sentence, if not a multiple of $1, shall be reduced to the next lower multiple of $1. (4) For purposes of clause (E) of paragraph (1)

(B) an individual will be presumed, with respect to any month, to have rendered services for wages (determined as provided in paragraph (5) of this subsection) of more than $200 or the exempt amount as determined under paragraph

(8) until it is shown to the satisfaction of the Secretary that such individual did not render such services in such month for more than such amount.

(8) (A) Whenever the Secretary pursuant to section 415 (i) of this title increases benefits effective with the month of June following a cost-ofliving computation quarter he shall also determine and publish in the Federal Register on or before November 1 of the calendar year in which such quarter occurs a new exempt amount which shall be effective (unless such new exempt amount is prevented from becoming effective by subparagraph (C) of this paragraph) with respect to any individual's taxable year which ends after the calendar year in which such benefit increase is effective (or, in the case of an individual who dies during the calendar year after the calendar year in which the benefit increase is effective, with respect to such individual's taxable year which ends, upon his death, during such year).

(B) The exempt amount for each month of a particular taxable year shall be whichever of the following is the larger

(i) the exempt amount which was in effect with respect to months in the taxable year in which the determination under subparagraph (A) was made, or

(ii) the product of the exempt amount described in clause (i) and the ratio of (I) the average of the taxable wages of all employees as reported to the Secretary for the first calendar quarter of the calendar year in which the determination under subparagraph (A) was made to (II) the average of the taxable wages of all employees as reported to the Secretary for the first calendar quarter of 1973, or, if later, the first calendar quarter of the most recent calendar year in which an increase in the exempt amount was enacted or a determination resulting in such an increase was made under subparagraph (A), with such product, if not a multiple of $10, being rounded to the next higher multiple of $10 where such product is a multiple of $5 but not of $10 and to the nearest multiple of $10 in any other case. Whenever the Secretary determines that the exempt amount is to be increased in any year under this paragraph, he shall notify the House Committee on Ways and Means and the Senate Committee on Finance within 30 days after the close of the base quarter (as defined in section 415 (1) (1) (A) of this title) in such year of the estimated amount of such increase, indicating the new exempt amount, the actuarial estimates of the effect of the increase, and the actuarial assumptions and methodology used in preparing such estimates.

(C) Notwithstanding the determination of a new exempt amount by the Secretary under subparagraph (A) (and notwithstanding any publication thereof under such subparagraph or any notification thereof under the last sentence of subparagraph (B)), such new exempt amount shall not take effect pursuant thereto if during the calendar year in which such determination is