(b) Section 203 (a) of such Act is amended by striking out paragraph (2) and inserting in lieu thereof the following: (2) when two or more persons were entitled (without the application of section 202(j) (1) and section 223(b)) to monthly benefits under section 202 or 223 for March 1970 on the basis of the wages and self-employment income of such insured individual and at least one such person was so entitled for February 1970 on the basis of such wages and self-employment income, such total of benefits for March 1970 or any subsequent month shall not be reduced to less than the larger of— "(A) the amount determined under this subsection without regard to this paragraph, or "(B) an amount equal to the sum of the amounts derived by multiplying the benefit amount determined under this title (including this subsection, but without the application of section 222(b), section 202 (q), and subsection (b), (c), and (d) of this section), as in effect prior to March 1970, for each such person for such month, by 110 percent and raising each such increased amount, if it is not a multiple of $0.10, to the next higher multiple of $0.10; but in any such case (i) paragraph (1) of this subsection shall be applied to such total of benefits after the application of subparagraph (B), and (ii) if section 2202 (k) (2) (A) was applicable in the case of any such benefits for March 1970, and ceases to apply after such months, the provisions of subparagraph (B) shall be applied, for and after the month in which section 232(k) (2) (A) ceases to apply, as though paragraph (1) had not been applicable to such total of benefits for March 1970, or". (c) Section 215 (b) (4) of such Act is amended by striking out "January 1968" each time it appears and inserting in lieu thereof "February 1970". (d) Section 215 (c) of such Act is amended to read as follows: "Primary Insurance Amount Under 1967 Act "(c) (1) For the purposes of column II of the table appearing in subsection (a) of this section, an individual's primary insurance amount shall be computed on the basis of the law in effect prior to the enactment of the Social Security Amendments of 1969. "(2) The provision of this subsection shall be applicable only in the case of an individual who became entitled to benefits under section 202 (a) or section 223 before March 1970, or who died before such month." (e) The amendments made by this section shall apply with respect to monthly benefits under title II of the Social Security Act for months after February 1970 and with respect to lump-sum death payments under such title in the case of deaths occurring after February 1970. (f) If an individual was entitled to a disability insurance benefit under section 223 of the Social Security Act for February 1970 and became entitled to old-age insurance benefits under section 202(a) of such Act for March 1970, or he died in such month, then, for purposes of section 215(a) (4) of the Social Security Act (if applicable), the amount in column IV of the table appearing in such section 215 (a) for such individual shall be the amount in such column on the line on which in column II appears his primary insurance amount (as deter mined under section 215(c) of such Act) instead of the amount in column IV equal to the primary insurance amount on which his disability insurance benefit is based. INCREASE IN BENEFITS FOR CERTAIN INDIVIDUALS AGE 72 AND OVER SEC. 3. (a) (1) Section 227 (a) of the Social Security Act is amended by striking out "$40" and inserting in lieu thereof "$44," and by striking out "$20" and inserting in lieu thereof "$22.”. (2) Section 227 (b) of such Act is amended by striking out in the second sentence "$40" and inserting in lieu thereof "$44". (b) (1) Section 228 (b) (1) of such Act is amended by striking out "$40" and inserting in lieu thereof "$44". (2) Section 228(b) (2) of such Act is amended by striking out "$40" and inserting in lieu thereof "$44", and by striking out "$20” and inserting in lieu thereof "$22". (3) Section 228 (c) (2) of such Act is amended by striking out "$20” and inserting in lieu thereof "$22”. (4) Section 228 (c) (3) (A) of such Act is amended by striking out "$40" and inserting in lieu thereof "$44". (5) Section 228 (c) (3) (B) of such Act is amended by striking out "$20" and inserting in lieu thereof "$22". (c) The amendments made by subsections (a) and (b) shall apply with respect to monthly benefits under title II of the Social Security Act for months after February 1970. AUTOMATIC ADJUSTMENT OF BENEFITS SEC. 4. (a) Section 215 of the Social Security Act is amended by adding after subsection (h) the following new subsection : "Cost-of-Living Increases in Benefits "(i) (1) For purposes of this subsection "(A) the term 'base quarter' shall mean the period of three consecutive calendar months ending on September 30, 1969, and the period of 3 consecutive calendar months ending on September 30 of each year thereafter. "(B) the term 'cost-of-living computation quarter' shall mean the base quarter in which the monthly average of the Consumer Price Index prepared by the Department of Labor exceeds, by not less than 3 per centum, the monthly average of such Index in the later of: (i) the 3 calendar-month period ending on September 30, 1969 or (ii) the base quarter which was most recently a cost-of-living computation quarter. "(2) (A) If the Secretary determines that a base quarter in a calendar year is also a cost-of-living computation quarter, he shall, effective for January of the next calendar year, increase the benefit amount of each individual who for such month is entitled to benefits under section 227 or 228 and the primary insurance amount of each individual, specified in subparagraph (B) of this paragraph, by an amount derived by multiplying such amount of each such individual (including each such individual's primary insurance amount or benefit amount under section 227 or 228 as previously increased under this subparagraph) by the same per centum (rounded by the nearest onetenth of 1 per centum) as the monthly average of the Consumer Price Index for such cost-of-living computation quarter exceeds the monthly average of such Index for the base quarter determined after the application of clauses (i) and (ii) of paragraph (1)(B). Such increased primary insurance amount shall be considered such individual's primary insurance amount for purposes of this subsection, section 202, and section 223. "(B) The increase provided by subparagraph (A) with respect to a particular cost-of-living computation quarter shall apply in the case of monthly benefits under this title for months after December of the calendar year in which occurred such cost-of-living computation quarter, based on the wages and self-employment income of an individual who became entitled to monthly benefits under section 202, 223, 227, or 228 (without regard to section 202 (j) (1) or section 223(b)), or who died, in or before December of the calendar year in which occurred such cost-of-living computation quarter. "(C) If the Secretary determines that a base quarter in a calendar year is also a cost-of-living computation quarter, he shall publish in the Federal Register on or before December 1 of such calendar year a determination that a benefit increase is resultantly required and the percentage thereof. He shall also publish in the Federal Register at that time a revision of the benefit table contained in subsection (a), as it may have been revised previously, pursuant to this subparagraph. Such revision shall be determined as follows: "(i) The amount of each line of column II shall be changed to the amount shown on the corresponding line of column IV of the table in effect before this revision. "(ii) The amount of each line of column IV shall be increased from the amount shown in the table in effect before this revision by increasing such amount by the per centum specified in subparagraph (A) of paragraph (2), raising each such increased amount, if not a multiple of $0.10, to the next higher multiple of $0.10. "(iii) If the contribution and benefit base (as defined in section 230 (b)) for the calendar year in which such benefit table is revised is lower than such base for the following calendar year, columns III, IV, and V shall be extended. The amount in the first additional line in column IV shall be the amount in the last line of such column as determined under clause (ii), plus $1.00, rounding such increased amount to the nearest multiple of $1.00. The amount of each succeeding line of column IV shall be the amount on the preceding line increased by $1.00, until the amount on the last line of such column shall be equal to 136 of the contribution and earnings base for the calendar year succeeding the calendar year in which such benefit table is revised, rounding such amount, if not a multiple of $1.00, to the nearest multiple of $1.00. The amount in each additional line of column III shall be determined so that the second figure in the last line of column III shall be 12 of the contribution and earnings base for the calendar year following the calendar year in which such benefit table is revised, and the remaining figures in column III shall be determined in consistent mathematical intervals from column IV. The second figure in the last line of column III before the extension of the column shall be increased to a figure mathematically consistent with the figures determined in accordance with the preceding sentence. The amount on each line of column V shall be increased, to the extent necessary, so that each such amount shall be equal to 40 per centum. of the second figure in the same line of column III, plus 40 per centum of the smaller of (I) such second figure or (II) the larger of $450 or 50 per centum of the largest figure in column III. "(iv) The amount on each line of column V shall be increased, if necessary, so that such amount shall be at least equal to 11/2 times the amount shown on the corresponding line in column IV. Any such increased amount that is not a multiple of $0.10 shall be increased to the next higher multiple of $0.10." (b) Section 203 (a) of such Act is amended by striking out the period at the end of the first sentence and inserting in lieu thereof, "or" and adding the following new paragraph: "(4) when two or more persons are entitled (without the application of section 202 (j) (1) and section 223 (b)) to monthly benefits under section 202 or 223 for December in the calendar year in which occurs a cost-of-living computation quarter (as defined in section 215 (i) (1)) on the basis of the wages and self-employment income of such insured individual, such total of benefits for the month immediately following shall be reduced to not less than the amount equal to the sum of the amounts derived by multiplying the benefit amount determined under this title (including this subsection, but without the application of section 222 (b), section 202(q), and subsections (b), (c), and (d) of this section) as in effect for December for each such person by the same per centum increase as such individual's primary insurance amount (including such amount as previously increased under section 215 (i) (2)) is increased and raising each such increased amount, if not a multiple of $0.10, to the next higher multiple of $0.10.". (c) (1) Section 202 (a) of such Act is amended by striking out "(as defined in section 215 (a)).". (2) Section 215 (f) (4) of such Act is amended by adding at the end before the period the following: "(including a primary insurance amount as increased under subsection (i) (2))". (3) Section 215 (g) of such Act is amended by striking out "primary insurance amount" and inserting in lieu thereof "primary insurance amount (including a primary insurance amount as increased under subsection (i) (2))". LIBERALIZATION OF EARNINGS TEST SEC. 5. (a) (1) Paragraphs (1) and (4)(B) of section 203 (f) of the Social Security Act are each amended by striking out "$140" and inserting in lieu thereof "$150 or the exempt amount as determined under paragraph (8)". (2) Paragraph (1) (A) of section 203 (h) of such Act is amended by striking out "$140" and inserting in lieu thereof "$150 or the exempt amount as determined under paragraph (8)". (3) Paragraph (3) section 203 (f) of such Act is amended to read as follows: "(3) For purposes of paragraph (1) and subsection (h), an individual's excess earnings for a taxable year shall be 50 per centum of his earnings for such in excess of the product of $150 or the exempt amount as determined under paragraph (8) multiplied by the number of months in such year. The excess earnings as derived under the pre : |