Computation of primary insurance amount

For the purposes of this subchapter— The primary insurance amount of an individual shall (except as otherwise provided in this section) be equal to the sum of— For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming eligible for such benefits), in any calendar year after 1979, each of the amounts so established shall equal the product of the corresponding amount established with respect to the calendar year 1979 under clause (i) of this subparagraph and the quotient obtained by dividing— In the case of an individual who was entitled to a disability insurance benefit for any of the 12 months before the month in which he became entitled to an old-age insurance benefit, became reentitled to a disability insurance benefit, or died, the primary insurance amount for determining any benefit attributable to that entitlement, reentitlement, or death is the greater of— Paragraph (1) applies only to an individual who was not eligible for an old-age insurance benefit prior to January 1979 and who in that or any succeeding month— For purposes of this subchapter, an individual is deemed to be eligible— Paragraph (1) (except for subparagraph (C)(i) thereof) does not apply to the computation or recomputation of a primary insurance amount for— an individual who had wages or self-employment income credited for one or more years prior to 1979, and who was not eligible for an old-age or disability insurance benefit, and did not die, prior to January 1979, if in the year for which the computation or recomputation would be made the individual’s primary insurance amount would be greater if computed or recomputed— In the case of an individual to whom subsection (d) applies, the primary insurance amount of such individual shall be the greater of— An individual is described in this subparagraph if— The provisions described in this subparagraph are— An individual’s average indexed monthly earnings shall be equal to the quotient obtained by dividing— The number of an individual’s benefit computation years equals the number of elapsed years reduced— For purposes of this subsection with respect to any individual— the term “computation base years” means the calendar years after 1950 and before— Except as provided by subparagraph (B), the wages paid in and self-employment income credited to each of an individual’s computation base years for purposes of the selection therefrom of benefit computation years under paragraph (2) shall be deemed to be equal to the product of— the quotient obtained by dividing— Wages paid in or self-employment income credited to an individual’s computation base year which— Subject to the amendments made by section 5117 of the Omnibus Budget Reconciliation Act of 1990, this subsection as in effect in December 1978 shall remain in effect with respect to an individual to whom subsection (a)(1) does not apply by reason of the individual’s eligibility for an old-age or disability insurance benefit, or the individual’s death, prior to 1979. For purposes of column I of the table appearing in subsection (a), as that subsection was in effect in December 1977, an individual’s primary insurance benefit shall be computed as follows: For purposes of subparagraphs (B) and (C) of subsection (b)(2) (as so in effect)— the total wages prior to 1951 (as defined in subparagraph (C) of this paragraph) of an individual— The provisions of this subsection shall be applicable only in the case of an individual— For the purposes of subsections (b) and (d)— A recomputation under this paragraph with respect to any year shall be effective— The amount of any monthly benefit computed under section 402 or 423 of this title which (after any reduction under sections 403(a) and 424a of this title and any deduction under section 403(b) of this title, and after any deduction under section 1395s(a)(1) of this title) is not a multiple of $1 shall be rounded to the next lower multiple of $1. For purposes of this subsection— the term “applicable increase percentage” means— the term “OASDI fund ratio”, with respect to any calendar year, means the ratio of— If the Commissioner of Social Security determines that the base quarter in any year is a cost-of-living computation quarter, the Commissioner shall, effective with the month of December of that year as provided in subparagraph (B), increase— If— The applicable additional percentage by which the amounts described in subdivisions (I), (II), and (III) of paragraph (2)(A)(ii) are to be further increased under subparagraph (A) in the subsequent calendar year involved shall be the amount derived by—