58762 Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Notices

Title 5, U.S. Code, Section 4314(c)(4)

of the Civil Service Reform Act of 1978,

Pub. L. 95–454, requires that the

appointment of Performance Review

Board members be published in the

Federal Register.

The following persons will serve on

the Performance Review Board which

oversees the evaluation of performance

appraisals of Senior Executive Service

members of the Social Security

Administration:

Kathleen M. Adams

Eli N. Donkar

Glennalee K. Donnelly

Armando A. Gonzalez

Charlotte A. J. Hardnett

W. Burnell Hurt

Carolyn J. Shearin-Jones

Gordon M. Sherman

Barbara S. Sledge

Miguel A. Torrado

Dated: October 21, 1997.

Paul D. Barnes,

Deputy Commissioner for Human Resources.

[FR Doc. 97–28769 Filed 10–29–97; 8:45 am]

BILLING CODE 4190–29–P

SOCIAL SECURITY ADMINISTRATION

Office of the Commissioner; 1998

Cost-of-Living Increase and Other

Determinations

AGENCY: Social Security Administration.

ACTION: Notice.

SUMMARY: The Commissioner has

determined—

(1) A 2.1 percent cost-of-living

increase in Social Security benefits

under title II of the Social Security Act

(the Act), effective for December 1997;

(2) An increase in the Federal

Supplemental Security Income (SSI)

monthly benefit amounts under title

XVI of the Act for 1998 to $494 for an

eligible individual, $741 for an eligible

individual with an eligible spouse, and

$247 for an essential person;

(3) The national average wage index

for 1996 to be $25,913.90;

(4) The Old-Age, Survivors, and

Disability Insurance (OASDI)

contribution and benefit base to be

$68,400 for remuneration paid in 1998

and self-employment income earned in

taxable years beginning in 1998;

(5) For beneficiaries under age 65, the

monthly exempt amount under the

Social Security retirement earnings test

for taxable years ending in calendar year

1998 to be $760;

(6) The dollar amounts (‘‘bend

points’’) used in the benefit formula for

workers who become eligible for

benefits in 1998 and in the formula for

computing maximum family benefits;

(7) The amount of earnings a person

must have to be credited with a quarter

of coverage in 1998 to be $700;

(8) The ‘‘old-law’’ contribution and

benefit base to be $50,700 for 1998;

(9) The monthly amount of substantial

gainful activity applicable to statutorily

blind individuals in 1998 to be $1,050;

(10) The domestic worker coverage

threshold to be $1,100 for 1998; and

(11) The OASDI fund ratio to be 152.9

percent for 1997.

FOR FURTHER INFORMATION CONTACT:

Jeffrey L. Kunkel, Office of the Chief

Actuary, Social Security

Administration, 6401 Security

Boulevard, Baltimore, MD 21235, (410)

965–3013. For information on eligibility

or claiming benefits, call 1–800–772–

1213. A summary of the information in

this announcement is available in a

recorded message by telephoning (410)

965–3053. Information relating to this

announcement is also available on the

Internet. The address is http://

www.ssa.gov/OACT/COLA/Intro.html.

SUPPLEMENTARY INFORMATION: The

Commissioner is required by the Act to

publish within 45 days after the close of

the third calendar quarter of 1997 the

benefit increase percentage and the

revised table of ‘‘special minimum’’

benefits (section 215(i)(2)(D)). Also, the

Commissioner is required to publish on

or before November 1 the national

average wage index for 1996 (section

215(a)(1)(D)), the OASDI fund ratio for

1997 (section 215(i)(2)(C)(ii)), the

OASDI contribution and benefit base for

1998 (section 230(a)), the amount of

earnings required to be credited with a

quarter of coverage in 1998 (section

213(d)(2)), the monthly exempt amounts

under the Social Security retirement

earnings test for 1998 (section

203(f)(8)(A)), the formula for computing

a primary insurance amount for workers

who first become eligible for benefits or

die in 1998 (section 215(a)(1)(D)), and

the formula for computing the

maximum amount of benefits payable to

the family of a worker who first

becomes eligible for old-age benefits or

dies in 1998 (section 203(a)(2)(C)).

Cost-of-Living Increases

General. The cost-of-living increase is

2.1 percent for benefits under titles II

and XVI of the Act.

Under title II, OASDI benefits will

increase by 2.1 percent beginning with

the December 1997 benefits, which are

payable in January 1998. This increase

is based on the authority contained in

section 215(i) of the Act (42 U.S.C.

415(i)).

Under title XVI, Federal SSI payment

levels will also increase by 2.1 percent

effective for payments made for the

month of January 1998 but paid on

December 31, 1997. This is based on the

authority contained in section 1617 of

the Act (42 U.S.C. 1382f). The

percentage increase effective January

1998 is the same as the title II

percentage increase and the annual

payment amount is rounded, when not

a multiple of $12, to the next lower

multiple of $12.

Automatic Benefit Increase

Computation. Under section 215(i) of

the Act, the third calendar quarter of

1997 is a cost-of-living computation

quarter for all the purposes of the Act.

The Commissioner is, therefore,

required to increase benefits, effective

with December 1997, for individuals

entitled under section 227 or 228 of the

Act, to increase primary insurance

amounts of all other individuals entitled

under title II of the Act, and to increase

maximum benefits payable to a family.

For December 1997, the benefit increase

is the percentage increase in the

Consumer Price Index for Urban Wage

Earners and Clerical Workers from the

third quarter of 1996 through the third

quarter of 1997.

Section 215(i)(1) of the Act provides

that the Consumer Price Index for a

cost-of-living computation quarter shall

be the arithmetic mean of this index for

the 3 months in that quarter. The

arithmetic mean is rounded, if

necessary, to the nearest 0.1. The

Department of Labor’s Consumer Price

Index for Urban Wage Earners and

Clerical Workers for each month in the

quarter ending September 30, 1996, is:

for July 1996, 154.3; for August 1996,

154.5; and for September 1996, 155.1.

The arithmetic mean for this calendar

quarter is 154.6. The corresponding

Consumer Price Index for each month in

the quarter ending September 30, 1997,

is: for July 1997, 157.5; for August 1997,

157.8; and for September 1997, 158.3.

The arithmetic mean for this calendar

quarter is 157.9. Thus, because the

Consumer Price Index for the calendar

quarter ending September 30, 1997,

exceeds that for the calendar quarter

ending September 30, 1996 by 2.1

percent, a cost-of-living benefit increase

of 2.1 percent is effective for benefits

under title II of the Act beginning

December 1997.

Title II Benefit Amounts. In

accordance with section 215(i) of the

Act, in the case of insured workers and

family members for whom eligibility for

benefits (i.e., the worker’s attainment of

age 62, or disability or death before age

62) occurred before 1998, benefits will

increase by 2.1 percent beginning with

benefits for December 1997 which are

payable in January 1998. In the case of
Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Notices 58763

first eligibility after 1997, the 2.1

percent increase will not apply.

For eligibility after 1978, benefits are

generally determined by a benefit

formula provided by the Social Security

Amendments of 1977 (Pub. L. 95–216),

as described later in this notice.

For eligibility before 1979, benefits

are determined by means of a benefit

table. A copy of this table may be

obtained by writing to: Social Security

Administration, Office of Public

Inquiries, 4100 Annex, Baltimore, MD

21235. The table is also available on the

Internet at address http://www.ssa.gov/

OACT/ProgData/tableForm.html.

Section 215(i)(2)(D) of the Act

requires that, when the Commissioner

determines an automatic increase in

Social Security benefits, the

Commissioner shall publish in the

Federal Register a revision of the range

of the primary insurance amounts and

corresponding maximum family benefits

based on the dollar amount and other

provisions described in section

215(a)(1)(C)(i). These benefits are

referred to as ‘‘special minimum’’

benefits and are payable to certain

individuals with long periods of

relatively low earnings. To qualify for

such benefits, an individual must have

at least 11 ‘‘years of coverage.’’ To earn

a year of coverage for purposes of the

special minimum, a person must earn at

least a certain proportion (25 percent for

years before 1991, and 15 percent for

years after 1990) of the ‘‘old-law’’

contribution and benefit base. In

accordance with section 215(a)(1)(C)(i),

the table below shows the revised range

of primary insurance amounts and

corresponding maximum family benefit

amounts after the 2.1 percent benefit

increase.

SPECIAL MINIMUM PRIMARY INSURANCE AMOUNTS AND MAXIMUM FAMILY BENEFITS PAYABLE FOR DEC.

1997

No. of years of coverage

Primary

insurance

amount

Maximum

family

benefit

11 .............................. $27.60 $41.70

12 .............................. 55.40 83.80

13 .............................. 83.70 125.80

14 .............................. 111.40 167.70

15 .............................. 139.40 209.30

16 .............................. 167.50 251.80

17 .............................. 195.50 293.90

18 .............................. 223.50 335.80

19 .............................. 251.50 377.80

20 .............................. 279.40 419.70

21 .............................. 307.70 462.00

22 .............................. 335.50 503.90

23 .............................. 363.70 546.50

24 .............................. 391.80 588.30

25 .............................. 419.70 629.90

26 .............................. 448.00 672.70

SPECIAL MINIMUM PRIMARY INSURANCE AMOUNTS AND MAXIMUM FAMILY BENEFITS PAYABLE FOR DEC.

1997—Continued

No. of years of coverage

Primary

insurance

amount

Maximum

family

benefit

27 .............................. 475.90 714.50

28 .............................. 503.80 756.30

29 .............................. 531.70 798.50

30 .............................. 559.80 840.20

Section 227 of the Act provides flatrate benefits to a worker who became

age 72 before 1969 and was not insured

under the usual requirements, and to his

or her spouse or surviving spouse.

Section 228 of the Act provides similar

benefits at age 72 for certain uninsured

persons. The current monthly benefit

amount of $199.00 for an individual

under sections 227 and 228 of the Act

is increased by 2.1 percent to obtain the

new amount of $203.10. The current

monthly benefit amount of $99.50 for a

spouse under section 227 is increased

by 2.1 percent to $101.50.

Title XVI Benefit Amounts. In

accordance with section 1617 of the Act,

Federal SSI benefit amounts for the

aged, blind, and disabled are increased

by 2.1 percent effective January 1998.

Therefore, the yearly Federal SSI benefit

amounts of $5,808 for an eligible

individual, $8,712 for an eligible

individual with an eligible spouse, and

$2,904 for an essential person, which

became effective January 1997, are

increased, effective January 1998, to

$5,928, $8,892, and $2,964, respectively,

after rounding. The corresponding

monthly amounts for 1998 are

determined by dividing the yearly

amounts by 12, giving $494, $741, and

$247, respectively. The monthly amount

is reduced by subtracting monthly

countable income. In the case of an

eligible individual with an eligible

spouse, the amount payable is further

divided equally between the two

spouses.

Fee for Services Performed as a

Representative Payee. Sections

205(j)(4)(A)(i) and 1631(a)(2)(D)(i) of the

Act permit a qualified organization to

collect from an individual a monthly fee

for expenses incurred in providing

services performed as such individual’s

representative payee. Currently the fee

is limited to the lesser of (1) 10 percent

of the monthly benefit involved, or (2)

$26 per month ($51 per month in any

case in which the individual is entitled

to disability benefits and the

Commissioner has determined that

payment to the representative payee

would serve the interest of the

individual because the individual has

an alcoholism or drug addiction

condition and is incapable of managing

such benefits). The dollar fee limits are

subject to increase by the automatic

cost-of-living increase, with the

resulting amounts rounded to the

nearest whole dollar amount. The

current amounts are thus increased by

2.1 percent to $27 and $52 for 1998.

National Average Wage Index for 1996

General. Under various provisions of

the Act, several amounts are scheduled

to increase automatically for 1998 based

on the annual increase in the national

average wage index. The amounts are (1)

the OASDI contribution and benefit

base, (2) the retirement test exempt

amount for beneficiaries under age 65,

(3) the dollar amounts, or ‘‘bend

points,’’ in the primary insurance

amount and maximum family benefit

formulas, (4) the amount of earnings

required for a worker to be credited with

a quarter of coverage, (5) the ‘‘old law’’

contribution and benefit base (as

determined under section 230 of the Act

as in effect before the 1977

amendments), and (6) the substantial

gainful activity amount applicable to

statutorily blind individuals. Also,

section 3121(x) of the Internal Revenue

Code requires that the domestic

employee coverage threshold be based

on changes in the national average wage

index.

Computation. The determination of

the national average wage index for

calendar year 1996 is based on the 1995

national average wage index of

$24,705.66 announced in the Federal

Register on October 25, 1996 (61 FR

55346), along with the percentage

increase in average wages from 1995 to

1996 measured by annual wage data

tabulated by the Social Security

Administration (SSA). The wage data

tabulated by SSA include contributions

to deferred compensation plans, as

required by section 209(k) of the Act.

The average amounts of wages

calculated directly from these data were

$23,700.11 and $24,859.17 for 1995 and

1996, respectively. To determine the

national average wage index for 1996 at

a level that is consistent with the

national average wage indexing series

for 1951 through 1977 (published

December 29, 1978, at 43 FR 61016), the

1995 national average wage index of

$24,705.66 is multiplied by the

percentage increase in average wages

from 1995 to 1996 (based on SSAtabulated wage data) as follows (with

the result rounded to the nearest cent):

Amount. The national average wage

index for 1996 is $24,705.66 times

$24,859.17 divided by $23,700.11,
58764 Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Notices

which equals $25,913.90. Therefore, the

national average wage index for

calendar year 1996 is determined to be

$25,913.90.

OASDI Contribution and Benefit Base

General. The OASDI contribution and

benefit base is $68,400 for remuneration

paid in 1998 and self-employment

income earned in taxable years

beginning in 1998.

The OASDI contribution and benefit

base serves two purposes:

(a) It is the maximum annual amount

of earnings on which OASDI taxes are

paid. The OASDI tax rate for

remuneration paid in 1998 is set by

statute at 6.2 percent for employees and

employers, each. The OASDI tax rate for

self-employment income earned in

taxable years beginning in 1998 is 12.4

percent. (The Hospital Insurance tax is

due on remuneration, without

limitation, paid in 1998, at the rate of

1.45 percent for employees and

employers, each, and on selfemployment income earned in taxable

years beginning in 1998, at the rate of

2.9 percent.)

(b) It is the maximum annual amount

used in determining a person’s OASDI

benefits.

Computation. Section 230(b) of the

Act provides the formula used to

determine the OASDI contribution and

benefit base. Under the formula, the

base for 1998 shall be equal to the larger

of (1) the 1994 base of $60,600

multiplied by the ratio of the national

average wage index for 1996 to that for

1992, or (2) the current base ($65,400).

If the amount so determined is not a

multiple of $300, it shall be rounded to

the nearest multiple of $300.

Amount. The ratio of the national

average wage index for 1996, $25,913.90

as determined above, compared to that

for 1992, $22,935.42, is 1.1298638.

Multiplying the 1994 OASDI

contribution and benefit base amount of

$60,600 by the ratio of 1.1298638

produces the amount of $68,469.75

which must then be rounded to $68,400.

Because $68,400 exceeds the current

base amount of $65,400, the OASDI

contribution and benefit base is

determined to be $68,400 for 1998.

Retirement Earnings Test Exempt

Amounts

General. Social Security benefits are

withheld when a beneficiary under age

70 has earnings in excess of the

retirement earnings test exempt amount.

Since 1978, higher exempt amounts

have applied to beneficiaries aged 65

through 69 compared to those under age

65. Formulas for determining the

monthly exempt amounts are provided

in section 203(f)(8)(B) of the Act, as

amended by section 102 of the ‘‘Senior

Citizens’’ Right to Work Act of 1996,’’

title I of Pub. L. 104–121. This

amendment set the annual exempt

amount for beneficiaries aged 65

through 69 to $12,500 for 1996, $13,500

for 1997, $14,500 for 1998, $15,500 for

1999, $17,000 for 2000, $25,000 for

2001, and $30,000 for 2002. The

corresponding monthly exempt amounts

are exactly one-twelfth of the annual

amounts. After 2002, the monthly

exempt amount for this group of

beneficiaries will increase under the

applicable formula.

For beneficiaries aged 65 through 69,

$1 in benefits is withheld for every $3

of earnings in excess of the annual

exempt amount. For beneficiaries under

age 65, $1 in benefits is withheld for

every $2 of earnings in excess of the

annual exempt amount.

Computation. Under the formula

applicable to beneficiaries under age 65,

the monthly exempt amount for 1998

shall be the larger of (1) the 1994

monthly exempt amount multiplied by

the ratio of the national average wage

index for 1996 to that for 1992, or (2) the

1997 monthly exempt amount ($720). If

the amount so determined is not a

multiple of $10, it shall be rounded to

the nearest multiple of $10.

Exempt Amount for Beneficiaries

Under Age 65. The ratio of the national

average wage index for 1996,

$25,913.90, compared to that for 1992,

$22,935.42, is 1.1298638. Multiplying

the 1994 retirement earnings test

monthly exempt amount of $670 by the

ratio 1.1298638 produces the amount of

$757.01. This must then be rounded to

$760. Because $760 is larger than the

corresponding current exempt amount

of $720, the retirement earnings test

monthly exempt amount for

beneficiaries under age 65 is thus

determined to be $760 for 1998. The

corresponding retirement earnings test

annual exempt amount for these

beneficiaries is $9,120.

Computing Benefits After 1978

General. The Social Security

Amendments of 1977 provided a

method for computing benefits which

generally applies when a worker first

becomes eligible for benefits after 1978.

This method uses the worker’s ‘‘average

indexed monthly earnings’’ to compute

the primary insurance amount. The

computation formula is adjusted

automatically each year to reflect

changes in general wage levels, as

measured by the national average wage

index.

A worker’s earnings are adjusted, or

‘‘indexed,’’ to reflect the change in

general wage levels that occurred during

the worker’s years of employment. Such

indexation ensures that a worker’s

future benefits reflect the general rise in

the standard of living that occurs during

his or her working lifetime. A certain

number of years of earnings are needed

to compute the average indexed

monthly earnings. After the number of

years is determined, those years with

the highest indexed earnings are chosen,

the indexed earnings are summed, and

the total amount is divided by the total

number of months in those years. The

resulting average amount is then

rounded down to the next lower dollar

amount. The result is the average

indexed monthly earnings.

For example, to compute the average

indexed monthly earnings for a worker

attaining age 62, becoming disabled

before age 62, or dying before attaining

age 62, in 1998, the national average

wage index for 1996, $25,913.90, is

divided by the national average wage

index for each year prior to 1996 in

which the worker had earnings. The

actual wages and self-employment

income, as defined in section 211(b) of

the Act and credited for each year, is

multiplied by the corresponding ratio to

obtain the worker’s indexed earnings for

each year before 1996. Any earnings in

1996 or later are considered at face

value, without indexing. The average

indexed monthly earnings is then

computed and used to determine the

worker’s primary insurance amount for

1998.

Computing the Primary Insurance

Amount. The primary insurance amount

is the sum of three separate percentages

of portions of the average indexed

monthly earnings. In 1979 (the first year

the formula was in effect), these

portions were the first $180, the amount

between $180 and $1,085, and the

amount over $1,085. The dollar amounts

in the formula which govern the

portions of the average indexed monthly

earnings are frequently referred to as the

‘‘bend points’’ of the formula. Thus, the

bend points for 1979 were $180 and

$1,085.

The bend points for 1998 are obtained

by multiplying the corresponding 1979

bend-point amounts by the ratio

between the national average wage

index for 1996, $25,913.90, and for

1977, $9,779.44. These results are then

rounded to the nearest dollar. For 1998,

the ratio is 2.6498348. Multiplying the

1979 amounts of $180 and $1,085 by

2.6498348 produces the amounts of

$476.97 and $2,875.07. These must then

be rounded to $477 and $2,875.

Accordingly, the portions of the average

indexed monthly earnings to be used in

1998 are determined to be the first $477,
Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Notices 58765

the amount between $477 and $2,875,

and the amount over $2,875.

Consequently, for individuals who

first become eligible for old-age

insurance benefits or disability

insurance benefits in 1998, or who die

in 1998 before becoming eligible for

benefits, their primary insurance

amount will be the sum of:

(a) 90 percent of the first $477 of their

average indexed monthly earnings, plus

(b) 32 percent of their average indexed

monthly earnings over $477 and

through $2,875, plus

(c) 15 percent of their average indexed

monthly earnings over $2,875.

This amount is then rounded to the

next lower multiple of $.10 if it is not

already a multiple of $.10. This formula

and the rounding adjustment described

above are contained in section 215(a) of

the Act (42 U.S.C. 415(a)).

Maximum Benefits Payable to a Family

General. The 1977 amendments

continued the long established policy of

limiting the total monthly benefits that

a worker’s family may receive based on

his or her primary insurance amount.

Those amendments also continued the

then existing relationship between

maximum family benefits and primary

insurance amounts but did change the

method of computing the maximum

amount of benefits that may be paid to

a worker’s family. The Social Security

Disability Amendments of 1980 (Pub. L.

96–265) established a formula for

computing the maximum benefits

payable to the family of a disabled

worker. This formula is applied to the

family benefits of workers who first

become entitled to disability insurance

benefits after June 30, 1980, and who

first become eligible for these benefits

after 1978. For disabled workers

initially entitled to disability benefits

before July 1980, or whose disability

began before 1979, the family maximum

payable is computed the same as the

old-age and survivor family maximum.

Computing the Old-Age and Survivor

Family Maximum. The formula used to

compute the family maximum is similar

to that used to compute the primary

insurance amount. It involves

computing the sum of four separate

percentages of portions of the worker’s

primary insurance amount. In 1979,

these portions were the first $230, the

amount between $230 and $332, the

amount between $332 and $433, and the

amount over $433. The dollar amounts

in the formula which govern the

portions of the primary insurance

amount are frequently referred to as the

‘‘bend points’’ of the family-maximum

formula. Thus, the bend points for 1979

were $230, $332, and $433.

The bend points for 1998 are obtained

by multiplying the corresponding 1979

bend-point amounts by the ratio

between the national average wage

index for 1996, $25,913.90, and the

average for 1977, $9,779.44. This

amount is then rounded to the nearest

dollar. For 1998, the ratio is 2.6498348.

Multiplying the amounts of $230, $332,

and $433 by 2.6498348 produces the

amounts of $609.46, $879.75, and

$1,147.38. These amounts are then

rounded to $609, $880, and $1,147.

Accordingly, the portions of the primary

insurance amounts to be used in 1998

are determined to be the first $609, the

amount between $609 and $880, the

amount between $880 and $1,147, and

the amount over $1,147.

Consequently, for the family of a

worker who becomes age 62 or dies in

1998 before age 62, the total amount of

benefits payable to them will be

computed so that it does not exceed:

(a) 150 percent of the first $609 of the

worker’s primary insurance amount,

plus

(b) 272 percent of the worker’s

primary insurance amount over $609

through $880, plus

(c) 134 percent of the worker’s

primary insurance amount over $880

through $1,147, plus

(d) 175 percent of the worker’s

primary insurance amount over $1,147.

This amount is then rounded to the

next lower multiple of $.10 if it is not

already a multiple of $.10. This formula

and the rounding adjustment described

above are contained in section 203(a) of

the Act (42 U.S.C. 403(a)).

Quarter of Coverage Amount

General. The 1998 amount of earnings

required for a quarter of coverage is

$700. A quarter of coverage is the basic

unit for determining whether a worker

is insured under the Social Security

program. For years before 1978, an

individual generally was credited with

a quarter of coverage for each quarter in

which wages of $50 or more were paid,

or an individual was credited with 4

quarters of coverage for every taxable

year in which $400 or more of selfemployment income was earned.

Beginning in 1978, wages generally are

no longer reported on a quarterly basis;

instead, annual reports are made. With

the change to annual reporting, section

352(b) of the Social Security

Amendments of 1977 amended section

213(d) of the Act to provide that a

quarter of coverage would be credited

for each $250 of an individual’s total

wages and self-employment income for

calendar year 1978 (up to a maximum

of 4 quarters of coverage for the year).

Computation. Under the prescribed

formula, the quarter of coverage amount

for 1998 shall be equal to the larger of

(1) the 1978 amount of $250 multiplied

by the ratio of the national average wage

index for 1996 to that for 1976, or (2) the

current amount of $670. Section 213(d)

further provides that if the amount so

determined is not a multiple of $10, it

shall be rounded to the nearest multiple

of $10.

Quarter of Coverage Amount. The

ratio of the national average wage index

for 1996, $25,913.90, compared to that

for 1976, $9,226.48, is 2.8086443.

Multiplying the 1978 quarter of

coverage amount of $250 by the ratio of

2.8086443 produces the amount of

$702.16, which must then be rounded to

$700. Because $700 exceeds the current

amount of $670, the quarter of coverage

amount is determined to be $700 for

1998.

‘‘Old-Law’’ Contribution and Benefit

Base

General. The 1998 ‘‘old-law’’

contribution and benefit base is $50,700.

This is the base that would have been

effective under the Act without the

enactment of the 1977 amendments. The

base is computed under section 230(b)

of the Act as it read prior to the 1977

amendments.

The ‘‘old-law’’ contribution and

benefit base is used by:

(a) the Railroad Retirement program to

determine certain tax liabilities and tier

II benefits payable under that program

to supplement the tier I payments which

correspond to basic Social Security

benefits,

(b) the Pension Benefit Guaranty

Corporation to determine the maximum

amount of pension guaranteed under the

Employee Retirement Income Security

Act (as stated in section 230(d) of the

Social Security Act),

(c) Social Security to determine a year

of coverage in computing the special

minimum benefit, as described earlier,

and

(d) Social Security to determine a year

of coverage (acquired whenever

earnings equal or exceed 25 percent of

the ‘‘old-law’’ base for this purpose

only) in computing benefits for persons

who are also eligible to receive pensions

based on employment not covered

under section 210 of the Act.

Computation. The base is computed

using the automatic adjustment formula

in section 230(b) of the Act as it read

prior to the enactment of the 1977

amendments, but with the revised

indexing formula introduced by section

321(g) of the ‘‘Social Security

Independence and Program

Improvements Act of 1994.’’ Under the
58766 Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Notices

formula, the ‘‘old-law’’ contribution and

benefit base shall be the larger of (1) the

1994 ‘‘old-law’’ base ($45,000)

multiplied by the ratio of the national

average wage index for 1996 to that for

1992, or (2) the current ‘‘old-law’’ base

($48,600). If the amount so determined

is not a multiple of $300, it shall be

rounded to the nearest multiple of $300.

Amount. The ratio of the national

average wage index for 1996,

$25,913.90, compared to that for 1992,

$22,935.42, is 1.1298638. Multiplying

the 1994 ‘‘old-law’’ contribution and

benefit base amount of $45,000 by the

ratio of 1.1298638 produces the amount

of $50,843.87 which must then be

rounded to $50,700. Because $50,700

exceeds the current amount of $48,600,

the ‘‘old-law’’ contribution and benefit

base is determined to be $50,700 for

1998.

Substantial Gainful Activity Amount

for Blind Individuals

General. A finding of disability under

titles II and XVI of the Act requires that

a person be unable to engage in

substantial gainful activity (SGA).

Under current regulations, a person who

is not statutorily blind and who is

earning more than $500 a month (net of

impairment-related work expenses) is

ordinarily considered to be engaging in

SGA. The Social Security Amendments

of 1977 established a higher SGA

amount for statutorily blind individuals

by setting their monthly SGA amount to

the monthly exempt amount for persons

aged 65 through 69 under the retirement

earnings test provisions of the Act.

Section 102 of Pub. L. 104–121

increased the earnings test exempt

amount for persons aged 65 through 69

to specific levels for 1996–2002. Section

102 further provided that the SGA

amount for blind individuals be the

same as it would have been if section

102 had not been enacted.

Computation. Under the formula in

section 203(f)(8)(B) in effect prior to the

enactment of Pub. L. 104–121, the

monthly SGA amount for statutorily

blind individuals for 1998 shall be the

larger of (1) such amount for 1994

multiplied by the ratio of the national

average wage index for 1996 to that for

1992, or (2) such amount for 1997.

Section 203(f)(8)(B) further provides

that if the amount so determined is not

a multiple of $10, it shall be rounded to

the nearest multiple of $10.

SGA Amount for Statutorily Blind

Individuals. The ratio of the national

average wage index for 1996,

$25,913.90, compared to that for 1992,

$22,935.42, is 1.1298638. Multiplying

the 1994 monthly SGA amount for

statutorily blind individuals of $930 by

the ratio of 1.1298638 produces the

amount of $1,050.77. This must then be

rounded to $1,050. Because $1,050 is

larger than the current amount of

$1,000, the monthly SGA amount for

statutorily blind individuals is

determined to be $1,050 for 1998.

Domestic Employee Coverage

Threshold

General. Section 2 of the ‘‘Social

Security Domestic Employment Reform

Act of 1994’’ (Pub. L. 103–387)

increased the threshold for coverage of

a domestic employee’s wages paid per

employer from $50 per calendar quarter

to $1,000 in calendar year 1994. The

statute holds the coverage threshold at

the $1,000 level for 1995 and then

increases the threshold in $100

increments for years after 1995. The

formula for increasing the threshold is

provided in section 3121(x) of the

Internal Revenue Code.

Computation. Under the formula, the

domestic employee coverage threshold

amount for 1998 shall be equal to the

1995 amount of $1,000 multiplied by

the ratio of the national average wage

index for 1996 to that for 1993. If the

amount so determined is not a multiple

of $100, it shall be rounded to the next

lower multiple of $100.

Domestic Employee Coverage

Threshold Amount. The ratio of the

national average wage index for 1996,

$25,913.90, compared to that for 1993,

$23,132.67, is 1.1202295. Multiplying

the 1995 domestic employee coverage

threshold amount of $1,000 by the ratio

of 1.1202295 produces the amount of

$1,120.23, which must then be rounded

to $1,100. Accordingly, the domestic

employee coverage threshold amount is

determined to be $1,100 for 1998.

OASDI Fund Ratio

General. Section 215(i) of the Act

provides for automatic cost-of-living

increases in OASDI benefit amounts.

This section also includes a ‘‘stabilizer’’

provision that can limit the automatic

OASDI benefit increase under certain

circumstances. If the combined assets of

the OASI and DI Trust Funds, as a

percentage of annual expenditures, are

below a specified threshold, the

automatic benefit increase is equal to

the lesser of (1) the increase in the

national average wage index or (2) the

increase in prices. The threshold

specified for the OASDI fund ratio is

20.0 percent for benefit increases for

December of 1989 and later. The law

also provides for subsequent ‘‘catch-up’’

benefit increases for beneficiaries whose

previous benefit increases were affected

by this provision. ‘‘Catch-up’’ benefit

increases can occur only when trust

fund assets exceed 32.0 percent of

annual expenditures.

Computation. Section 215(i) specifies

the computation and application of the

OASDI fund ratio. The OASDI fund

ratio for 1997 is the ratio of (1) the

combined assets of the OASI and DI

Trust Funds at the beginning of 1997 to

(2) the estimated expenditures of the

OASI and DI Trust Funds during 1997,

excluding transfer payments between

the OASI and DI Trust Funds, and

reducing any transfers to the Railroad

Retirement Account by any transfers

from that account into either trust fund.

Ratio. The combined assets of the

OASI and DI Trust Funds at the

beginning of 1997 equaled $566,950

million, and the expenditures are

estimated to be $370,842 million. Thus,

the OASDI fund ratio for 1997 is 152.9

percent, which exceeds the applicable

threshold of 20.0 percent. Therefore, the

stabilizer provision does not affect the

benefit increase for December 1997.

Although the OASDI fund ratio exceeds

the 32.0-percent threshold for potential

‘‘catch-up’’ benefit increases, no past

benefit increase has been reduced under

the stabilizer provision. Thus, no

‘‘catch-up’’ benefit increase is required.

(Catalog of Federal Domestic Assistance:

Program Nos. 96.001 Social SecurityDisability Insurance; 96.002 Social SecurityRetirement Insurance; 96.003 Social SecuritySpecial Benefits for Persons Aged 72 and

Over; 96.004 Social Security-Survivors

Insurance; 96.006 Supplemental Security

Income)

Dated: October 22, 1997.

Kenneth S. Apfel,

Commissioner, Social Security

Administration.

[FR Doc. 97–28496 Filed 10–29–97; 8:45 am]

BILLING CODE 4190–29–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. PE–97–54]

Petitions for Exemption; Summary of

Petitions Received; Dispositions of

Petitions Issued

AGENCY: Federal Aviation

Administration (FAA), DOT.

ACTION: Notice of petitions for

exemption received and of dispositions

of prior petitions.

SUMMARY: Pursuant to FAA’s rulemaking

provisions governing the application,

processing, and disposition of petitions

for exemption (14 CFR part 11), this

notice contains a summary of certain

petitions seeking relief from specified

requirements of the Federal Aviation