Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 61677 

15 In approving this proposal, the Commission has 

considered its impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

16 15 U.S.C. 78f(b)(4). 

17See letter from George W. Mann, Jr., Executive 

Vice President and General Counsel, BSE, and 

Chairman, Subcommittee, to Michael Gaw, 

Assistant Director, Division, Commission, dated 

September 29, 2005. 

18 15 U.S.C. 78s(b)(2). 19See supra note 17. 20 Id. 21 Id. 22 17 CFR 200.30–3(a)(12). 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing also will be 

available for inspection and copying at 

the principal office of the PCX. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–PCX–2005–111 and should 

be submitted on or before November 15, 

2005. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of a 

Proposed Rule Change 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to a national 

securities exchange.15 In particular, the 

Commission believes that the proposal 

is consistent with Section 6(b)(4) of the 

Act,16 which requires that the rules of 

an exchange provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

issuers and other persons using its 

facilities. National securities exchanges 

obtain funds to pay their Section 31 fees 

to the Commission by charging fees to 

broker-dealers who generate the covered 

sales on which Section 31 fees are 

based. An exchange can obtain most of 

these funds by imposing a fee on one of 

its members whenever the member is on 

the sell side of a transaction. However, 

when the exchange accepts an ITS 

commitment to buy, the ultimate seller 

is a party on another market. The 

exchange lacks the ability to pass a fee 

to that seller directly, because the seller 

may not be a member of the exchange. 

Under the proposed arrangement, which 

the Commission understands will be 

adopted by each of the ITS participant 

exchanges,17 the exchange that routed 

the ITS commitment away will continue 

to collect a fee from the broker-dealer 

that placed the sell order. Then, with 

respect to each ITS participant 

exchange, the exchange will determine 

whether it is a net sender or net receiver 

of ITS trades and send fees to or accept 

fees from each other exchange 

accordingly. The Commission believes 

this is an equitable manner for the 

exchanges to obtain funds to pay their 

Section 31 fees on covered sales 

resulting from ITS trades. 

Under Section 19(b)(2) of the Act,18

the Commission may not approve any 

proposed rule change prior to the 

thirtieth day after the date of 

publication of the notice of filing 

thereof, unless the Commission finds 

good cause for so doing. The 

Commission hereby finds good cause for 

approving the proposed rule change 

prior to the thirtieth day after 

publishing notice of filing thereof in the 

Federal Register. In this case, the 

Commission does not believe a 

comment period is necessary because all 

of the parties affected by the proposed 

fee—the other ITS participant 

exchanges—have already consented to 

and will adopt the same fee 

arrangement.19

For the reasons set forth above, the 

Commission finds good cause to 

accelerate approval of the proposed rule 

change pursuant to Section 19(b)(2) of 

the Act.20

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,21 that the 

proposed rule change (SR–PCX–2005–

111) is hereby approved on an 

accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.22

Jonathan G. Katz, 

Secretary. 

[FR Doc. E5–5891 Filed 10–24–05; 8:45 am] 

BILLING CODE 8010–01–P 

SOCIAL SECURITY ADMINISTRATION 

Office of the Commissioner; Cost-ofLiving Increase and Other 

Determinations for 2006 

AGENCY: Social Security Administration. 

ACTION: Notice. 

SUMMARY: The Commissioner has 

determined—

(1) A 4.1 percent cost-of-living 

increase in Social Security benefits 

under title II of the Social Security Act 

(the Act), effective for December 2005; 

(2) An increase in the Federal 

Supplemental Security Income (SSI) 

monthly benefit amounts under title 

XVI of the Act for 2006 to $603 for an 

eligible individual, $904 for an eligible 

individual with an eligible spouse, and 

$302 for an essential person; 

(3) The student earned income 

exclusion to be $1,460 per month in 

2006 but not more than $5,910 in all of 

2006; 

(4) The dollar fee limit for services 

performed as a representative payee to 

be $33 per month ($64 per month in the 

case of a beneficiary who is disabled 

and has an alcoholism or drug addiction 

condition that leaves him or her 

incapable of managing benefits) in 2006; 

(5) The national average wage index 

for 2004 to be $35,648.55; 

(6) The Old-Age, Survivors, and 

Disability Insurance (OASDI) 

contribution and benefit base to be 

$94,200 for remuneration paid in 2006 

and self-employment income earned in 

taxable years beginning in 2006; 

(7) The monthly exempt amounts 

under the Social Security retirement 

earnings test for taxable years ending in 

calendar year 2006 to be $1,040 and 

$2,770; 

(8) The dollar amounts (‘‘bend 

points’’) used in the primary insurance 

amount benefit formula for workers who 

become eligible for benefits, or who die 

before becoming eligible, in 2006 to be 

$656 and $3,955; 

(9) The dollar amounts (‘‘bend 

points’’) used in the formula for 

computing maximum family benefits for 

workers who become eligible for 

benefits, or who die before becoming 

eligible, in 2006 to be $838, $1,210, and 

$1,578; 

(10) The amount of taxable earnings a 

person must have to be credited with a 

quarter of coverage in 2006 to be $970; 

(11) The ‘‘old-law’’ contribution and 

benefit base to be $69,900 for 2006; 

(12) The monthly amount deemed to 

constitute substantial gainful activity for 

statutorily blind individuals in 2006 to 

be $1,450, and the corresponding 

amount for non-blind disabled persons 

to be $860; 

(13) The earnings threshold 

establishing a month as a part of a trial 

work period to be $620 for 2006; and 

(14) Coverage thresholds for 2006 to 

be $1,500 for domestic workers and 

$1,300 for election workers. 

FOR FURTHER INFORMATION CONTACT: 

Jeffrey L. Kunkel, Office of the Chief 

Actuary, Social Security 

61678 Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 

Administration, 6401 Security 

Boulevard, Baltimore, MD 21235, (410) 

965–3013. Information relating to this 

announcement is available on our 

Internet site at http:// 

www.socialsecurity.gov/OACT/COLA/ 

index.html. For information on 

eligibility or claiming benefits, call 1–

800–772–1213 or TTY 1–800–325–0778, 

or visit our Internet site, Social Security 

Online, at http:// 

www.socialsecurity.gov. 

SUPPLEMENTARY INFORMATION: In 

accordance with the Act, the 

Commissioner must publish within 45 

days after the close of the third calendar 

quarter of 2005 the benefit increase 

percentage and the revised table of 

‘‘special minimum’’ benefits (section 

215(i)(2)(D)). Also, the Commissioner 

must publish on or before November 1 

the national average wage index for 

2004 (section 215(a)(1)(D)), the OASDI 

fund ratio for 2005 (section 

215(i)(2)(C)(ii)), the OASDI contribution 

and benefit base for 2006 (section 

230(a)), the amount of earnings required 

to be credited with a quarter of coverage 

in 2006 (section 213(d)(2)), the monthly 

exempt amounts under the Social 

Security retirement earnings test for 

2006 (section 203(f)(8)(A)), the formula 

for computing a primary insurance 

amount for workers who first become 

eligible for benefits or die in 2006 

(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 2006 (section 

203(a)(2)(C)). 

Cost-of-Living Increases 

General 

The next cost-of-living increase, or 

automatic benefit increase, is 4.1 

percent for benefits under titles II and 

XVI of the Act. Under title II, OASDI 

benefits will increase by 4.1 percent for 

individuals eligible for December 2005 

benefits, payable in January 2006. 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 4.1 percent 

effective for payments made for the 

month of January 2006 but paid on 

December 30, 2005. This is based on the 

authority contained in section 1617 of 

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

Automatic Benefit Increase 

Computation 

Under section 215(i) of the Act, the 

third calendar quarter of 2005 is a costof-living computation quarter for all the 

purposes of the Act. The Commissioner 

is, therefore, required to increase 

benefits, effective for December 2005, 

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 2005, 

the benefit increase is the percentage 

increase in the Consumer Price Index 

for Urban Wage Earners and Clerical 

Workers from the third quarter of 2004 

to the third quarter of 2005. 

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. We round 

the arithmetic mean, 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, 2004, is: for July 2004, 184.9; for 

August 2004, 185.0; and for September 

2004, 185.4. The arithmetic mean for 

this calendar quarter is 185.1. The 

corresponding Consumer Price Index for 

each month in the quarter ending 

September 30, 2005, is: for July 2005, 

191.0; for August 2005, 192.1; and for 

September 2005, 195.0. The arithmetic 

mean for this calendar quarter is 192.7. 

Thus, because the Consumer Price Index 

for the calendar quarter ending 

September 30, 2005, exceeds that for the 

calendar quarter ending September 30, 

2004 by 4.1 percent (rounded to the 

nearest 0.1), a cost-of-living benefit 

increase of 4.1 percent is effective for 

benefits under title II of the Act 

beginning December 2005. 

Section 215(i) also specifies that an 

automatic benefit increase under title II, 

effective for December of any year, will 

be limited to the increase in the national 

average wage index for the prior year if 

the ‘‘OASDI fund ratio’’ for that year is 

below 20.0 percent. The OASDI fund 

ratio for a year is the ratio of the 

combined assets of the Old-Age and 

Survivors Insurance and Disability 

Insurance Trust Funds at the beginning 

of that year to the combined 

expenditures of these funds during that 

year. (The expenditures in the ratio’s 

denominator exclude transfer payments 

between the two trust funds, and reduce 

any transfers to the Railroad Retirement 

Account by any transfers from that 

account into either trust fund.) For 

2005, the OASDI fund ratio is assets of 

$1,686,839 million divided by estimated 

expenditures of $528,693 million, or 

319.1 percent. Because the 319.1- 

percent OASDI fund ratio exceeds 20.0 

percent, the automatic benefit increase 

for December 2005 is not limited. 

Title II Benefit Amounts 

In accordance with section 215(i) of 

the Act, in the case of 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 2006, benefits will 

increase by 4.1 percent beginning with 

benefits for December 2005 which are 

payable in January 2006. In the case of 

first eligibility after 2005, the 4.1 

percent increase will not apply. 

For eligibility after 1978, benefits are 

generally determined using 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, we 

determine benefits by means of a benefit 

table. You may obtain a copy of this 

table by writing to: Social Security 

Administration, Office of Public 

Inquiries, Windsor Park Building, 6401 

Security Boulevard, Baltimore, MD 

21235. The table is also available on the 

Internet at www.socialsecurity.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 will 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). We refer to these benefits 

as ‘‘special minimum’’ benefits. These 

benefits 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 benefit, a person must 

earn at least a certain proportion of the 

‘‘old-law’’ contribution and benefit base 

(described later in this notice). For years 

before 1991, the proportion is 25 

percent; for years after 1990, it is 15 

percent. 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 4.1 

percent automatic benefit increase. 

SPECIAL MINIMUM PRIMARY INSURANCE AMOUNTS AND MAXIMUM FAMILY BENEFITS PAYABLE FOR DECEMBER 2005 

Number of years 

of coverage 

Primary 

insurance 

amount 

Maximum 

family 

benefit 

11 ...................... $33.20 $50.40 

12 ...................... 67.30 101.80 

Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 61679 

SPECIAL MINIMUM PRIMARY INSURANCE AMOUNTS AND MAXIMUM FAMILY BENEFITS PAYABLE FOR DECEMBER 2005—Continued 

Number of years 

of coverage 

Primary 

insurance 

amount 

Maximum 

family 

benefit 

13 ...................... 101.70 153.10 

14 ...................... 135.70 204.10 

15 ...................... 169.60 255.20 

16 ...................... 203.90 306.80 

17 ...................... 238.20 358.30 

18 ...................... 272.40 409.40 

19 ...................... 306.40 460.70 

20 ...................... 340.70 511.80 

21 ...................... 375.00 563.50 

22 ...................... 408.90 614.60 

23 ...................... 443.60 666.60 

24 ...................... 477.70 717.50 

25 ...................... 511.80 768.20 

26 ...................... 546.50 820.50 

27 ...................... 580.20 871.50 

28 ...................... 614.50 922.60 

29 ...................... 648.50 974.20 

30 ...................... 682.70 1,024.90 

Title XVI Benefit Amounts 

In accordance with section 1617 of 

the Act, maximum SSI Federal benefit 

amounts for the aged, blind, and 

disabled will increase by 4.1 percent 

effective January 2006. For 2005, we 

derived the monthly benefit amounts for 

an eligible individual, an eligible 

individual with an eligible spouse, and 

for an essential person—$579, $869, and 

$290, respectively—from corresponding 

yearly unrounded Federal SSI benefit 

amounts of $6,955.39, $10,431.91, and 

$3,485.67. For 2006, these yearly 

unrounded amounts increase by 4.1 

percent to $7,240.56, $10,859.62, and 

$3,628.58, respectively. Each of these 

resulting amounts must be rounded, 

when not a multiple of $12, to the next 

lower multiple of $12. Accordingly, the 

corresponding annual amounts, 

effective for 2006, are $7,236, $10,848, 

and $3,624. Dividing the yearly amounts 

by 12 gives the corresponding monthly 

amounts for 2006—$603, $904, and 

$302, respectively. In the case of an 

eligible individual with an eligible 

spouse, we equally divide the amount 

payable between the two spouses. 

Title VIII of the Act provides for 

special benefits to certain World War II 

veterans residing outside the United 

States. Section 805 provides that ‘‘[t]he 

benefit under this title payable to a 

qualified individual for any month shall 

be in an amount equal to 75 percent of 

the Federal benefit rate [the maximum 

amount for an eligible individual] under 

title XVI for the month, reduced by the 

amount of the qualified individual’s 

benefit income for the month.’’ Thus the 

monthly benefit for 2006 under this 

provision is 75 percent of $603, or 

$452.25. 

Student Earned Income Exclusion 

A blind or disabled child, who is a 

student regularly attending school, 

college, or university, or a course of 

vocational or technical training, can 

have limited earnings that are not 

counted against his or her SSI benefits. 

The maximum amount of such income 

that may be excluded in 2005 is $1,410 

per month but not more than $5,670 in 

all of 2005. These amounts increase 

based on a formula set forth in 

regulation 20 CFR 416.1112. 

To compute each of the monthly and 

yearly maximum amounts for 2006, we 

increase the corresponding unrounded 

amount for 2005 by the latest cost-ofliving increase. If the amount so 

calculated is not a multiple of $10, we 

round it to the nearest multiple of $10. 

The unrounded monthly amount for 

2005 is $1,407.25. We increase this 

amount by 4.1 percent to $1,464.95, 

which we then round to $1,460. 

Similarly, we increase the unrounded 

yearly amount for 2005, $5,672.63, by 

4.1 percent to $5,905.21 and round this 

to $5,910. Thus the maximum amount 

of the income exclusion applicable to a 

student in 2006 is $1,460 per month but 

not more than $5,910 in all of 2006. 

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) 

$32 per month ($61 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. Thus we 

increase the current amounts by 4.1 

percent to $33 and $64 for 2006. 

National Average Wage Index for 2004 

General 

Under various provisions of the Act, 

several amounts increase automatically 

with annual increases in the national 

average wage index. The amounts are: 

(1) The OASDI contribution and benefit 

base; (2) the exempt amounts under the 

retirement earnings test; (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); (6) the 

substantial gainful activity amount 

applicable to statutorily blind 

individuals; and (7) the coverage 

threshold for election officials and 

election workers. 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. 

In addition to the amounts required 

by statute, two amounts increase 

automatically under regulatory 

requirements. The amounts are (1) the 

substantial gainful activity amount 

applicable to non-blind disabled 

persons, and (2) the monthly earnings 

threshold that establishes a month as 

part of a trial work period for disabled 

beneficiaries. 

Computation 

The determination of the national 

average wage index for calendar year 

2004 is based on the 2003 national 

average wage index of $34,064.95 

announced in the Federal Register on 

October 26, 2004 (69 FR 62497), along 

with the percentage increase in average 

wages from 2003 to 2004 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 

$32,678.48 and $34,197.63 for 2003 and 

2004, respectively. To determine the 

national average wage index for 2004 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), we 

multiply the 2003 national average wage 

index of $34,064.95 by the percentage 

increase in average wages from 2003 to 

2004 (based on SSA-tabulated wage 

data) as follows, with the result rounded 

to the nearest cent. 

Amount 

Multiplying the national average wage 

index for 2003 ($34,064.95) by the ratio 

of the average wage for 2004 

($34,197.63) to that for 2003 

($32,678.48) produces the 2004 index, 

61680 Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 

$35,648.55. The national average wage 

index for calendar year 2004 is about 

4.65 percent greater than the 2003 

index. 

OASDI Contribution and Benefit Base 

General 

The OASDI contribution and benefit 

base is $94,200 for remuneration paid in 

2006 and self-employment income 

earned in taxable years beginning in 

2006. 

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 2006 is 6.2 

percent for employees and employers, 

each. The OASDI tax rate for selfemployment income earned in taxable 

years beginning in 2006 is 12.4 percent. 

(The Hospital Insurance tax is due on 

remuneration, without limitation, paid 

in 2006, at the rate of 1.45 percent for 

employees and employers, each, and on 

self-employment income earned in 

taxable years beginning in 2006, at the 

rate of 2.9 percent.) 

(b) It is the maximum annual amount 

of earnings 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 2006 shall be the 

larger of: (1) The 1994 base of $60,600 

multiplied by the ratio of the national 

average wage index for 2004 to that for 

1992; or (2) the current base ($90,000). 

If the resulting amount is not a multiple 

of $300, it shall be rounded to the 

nearest multiple of $300. 

Amount 

Multiplying the 1994 OASDI 

contribution and benefit base amount 

($60,600) by the ratio of the national 

average wage index for 2004 ($35,648.55 

as determined above) to that for 1992 

($22,935.42) produces the amount of 

$94,190.65. We round this amount to 

$94,200. Because $94,200 exceeds the 

current base amount of $90,000, the 

OASDI contribution and benefit base is 

$94,200 for 2006. 

Retirement Earnings Test Exempt 

Amounts 

General 

We withhold Social Security benefits 

when a beneficiary under the normal 

retirement age (NRA) has earnings in 

excess of the applicable retirement 

earnings test exempt amount. (NRA is 

the age of initial benefit entitlement for 

which the benefit, before rounding, is 

equal to the worker’s primary insurance 

amount. The NRA is age 65 for those 

born before 1938, and it gradually 

increases to age 67.) A higher exempt 

amount applies in the year in which a 

person attains his/her NRA, but only 

with respect to earnings in months prior 

to such attainment, and a lower exempt 

amount applies at all other ages below 

NRA. Section 203(f)(8)(B) of the Act, as 

amended by section 102 of Public Law 

104–121, provides formulas for 

determining the monthly exempt 

amounts. The corresponding annual 

exempt amounts are exactly 12 times 

the monthly amounts. 

For beneficiaries attaining NRA in the 

year, we withhold $1 in benefits for 

every $3 of earnings in excess of the 

annual exempt amount for months prior 

to such attainment. For all other 

beneficiaries under NRA, we withhold 

$1 in benefits for every $2 of earnings 

in excess of the annual exempt amount. 

Computation 

Under the formula applicable to 

beneficiaries who are under NRA and 

who will not attain NRA in 2006, the 

lower monthly exempt amount for 2006 

shall be the larger of: (1) The 1994 

monthly exempt amount multiplied by 

the ratio of the national average wage 

index for 2004 to that for 1992; or (2) the 

2005 monthly exempt amount ($1,000). 

If the resulting amount is not a multiple 

of $10, it shall be rounded to the nearest 

multiple of $10. 

Under the formula applicable to 

beneficiaries attaining NRA in 2006, the 

higher monthly exempt amount for 2006 

shall be the larger of: (1) The 2002 

monthly exempt amount multiplied by 

the ratio of the national average wage 

index for 2004 to that for 2000; or (2) the 

2005 monthly exempt amount ($2,650). 

If the resulting amount is not a multiple 

of $10, it shall be rounded to the nearest 

multiple of $10. 

Lower Exempt Amount 

Multiplying the 1994 retirement 

earnings test monthly exempt amount of 

$670 by the ratio of the national average 

wage index for 2004 ($35,648.55) to that 

for 1992 ($22,935.42) produces the 

amount of $1,041.38. We round this to 

$1,040. Because $1,040 is larger than the 

corresponding current exempt amount 

of $1,000, the lower retirement earnings 

test monthly exempt amount is $1,040 

for 2006. The corresponding lower 

annual exempt amount is $12,480 under 

the retirement earnings test. 

Higher Exempt Amount 

Multiplying the 2002 retirement 

earnings test monthly exempt amount of 

$2,500 by the ratio of the national 

average wage index for 2004 

($35,648.55) to that for 2000 

($32,154.82) produces the amount of 

$2,771.63. We round this to $2,770. 

Because $2,770 is larger than the 

corresponding current exempt amount 

of $2,650, the higher retirement earnings 

test monthly exempt amount is $2,770 

for 2006. The corresponding higher 

annual exempt amount is $33,240 under 

the retirement earnings test. 

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. We adjust the 

computation formula each year to reflect 

changes in general wage levels, as 

measured by the national average wage 

index. 

We also adjust, or ‘‘index,’’ a worker’s 

earnings 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 benefit level will reflect the 

general rise in the standard of living that 

will occur during his or her working 

lifetime. To compute the average 

indexed monthly earnings, we first 

determine the required number of years 

of earnings. Then we select that number 

of years with the highest indexed 

earnings, add the indexed earnings, and 

divide the total amount by the total 

number of months in those years. We 

then round the resulting average amount 

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 2006, we divide the national 

average wage index for 2004, 

$35,648.55, by the national average 

wage index for each year prior to 2004 

in which the worker had earnings. Then 

we multiply the actual wages and selfemployment income, as defined in 

section 211(b) of the Act and credited 

for each year, by the corresponding ratio 

to obtain the worker’s indexed earnings 

for each year before 2004. We consider 

any earnings in 2004 or later at face 

value, without indexing. We then 

compute the average indexed monthly 

earnings for determining the worker’s 

primary insurance amount for 2006. 

Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 61681 

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. We call the dollar amounts in 

the formula governing the portions of 

the average indexed monthly earnings 

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

the bend points for 1979 were $180 and 

$1,085. 

To obtain the bend points for 2006, 

we multiply each of the 1979 bendpoint amounts by the ratio of the 

national average wage index for 2004 to 

that average for 1977. We then round 

these results to the nearest dollar. 

Multiplying the 1979 amounts of $180 

and $1,085 by the ratio of the national 

average wage index for 2004 

($35,648.55) to that for 1977 ($9,779.44) 

produces the amounts of $656.15 and 

$3,955.10. We round these to $656 and 

$3,955. Accordingly, the portions of the 

average indexed monthly earnings to be 

used in 2006 are the first $656, the 

amount between $656 and $3,955, and 

the amount over $3,955. 

Consequently, for individuals who 

first become eligible for old-age 

insurance benefits or disability 

insurance benefits in 2006, or who die 

in 2006 before becoming eligible for 

benefits, their primary insurance 

amount will be the sum of: 

(a) 90 percent of the first $656 of their 

average indexed monthly earnings, 

plus 

(b) 32 percent of their average indexed 

monthly earnings over $656 and 

through $3,955, plus 

(c) 15 percent of their average indexed 

monthly earnings over $3,955. 

We round this amount to the next 

lower multiple of $0.10 if it is not 

already a multiple of $0.10. 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 

applies 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, we compute the 

family maximum payable 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. We 

refer to such dollar amounts in the 

formula as the ‘‘bend points’’ of the 

family-maximum formula. 

To obtain the bend points for 2006, 

we multiply each of the 1979 bendpoint amounts by the ratio of the 

national average wage index for 2004 to 

that average for 1977. Then we round 

this amount to the nearest dollar. 

Multiplying the amounts of $230, $332, 

and $433 by the ratio of the national 

average wage index for 2004 

($35,648.55) to that for 1977 ($9,779.44) 

produces the amounts of $838.41, 

$1,210.22, and $1,578.40. We round 

these amounts to $838, $1,210, and 

$1,578. Accordingly, the portions of the 

primary insurance amounts to be used 

in 2006 are the first $838, the amount 

between $838 and $1,210, the amount 

between $1,210 and $1,578, and the 

amount over $1,578. 

Consequently, for the family of a 

worker who becomes age 62 or dies in 

2006 before age 62, we will compute the 

total amount of benefits payable to them 

so that it does not exceed: 

(a) 150 percent of the first $838 of the 

worker’s primary insurance 

amount, plus 

(b) 272 percent of the worker’s primary 

insurance amount over $838 

through $1,210, plus 

(c) 134 percent of the worker’s primary 

insurance amount over $1,210 

through $1,578, plus 

(d) 175 percent of the worker’s 

primary insurance amount over 

$1,578. 

We then round this amount to the 

next lower multiple of $0.10 if it is not 

already a multiple of $0.10. 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 amount of earnings required for 

a quarter of coverage in 2006 is $970. A 

quarter of coverage is the basic unit for 

determining whether a worker is 

insured under the Social Security 

program. For years before 1978, we 

generally credited an individual with a 

quarter of coverage for each quarter in 

which wages of $50 or more were paid, 

or with 4 quarters of coverage for every 

taxable year in which $400 or more of 

self-employment income was earned. 

Beginning in 1978, employers generally 

report wages on an annual basis instead 

of a quarterly basis. 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 selfemployment 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 2006 

shall be the larger of: (1) The 1978 

amount of $250 multiplied by the ratio 

of the national average wage index for 

2004 to that for 1976; or (2) the current 

amount of $920. Section 213(d) further 

provides that if the resulting amount is 

not a multiple of $10, it shall be 

rounded to the nearest multiple of $10. 

Quarter of Coverage Amount 

Multiplying the 1978 quarter of 

coverage amount ($250) by the ratio of 

the national average wage index for 

2004 ($35,648.55) to that for 1976 

($9,226.48) produces the amount of 

$965.93. We then round this amount to 

$970. Because $970 exceeds the current 

amount of $920, the quarter of coverage 

amount is $970 for 2006. 

‘‘Old-Law’’ Contribution and Benefit 

Base 

General 

The ‘‘old-law’’ contribution and 

benefit base for 2006 is $69,900. This is 

the base that would have been effective 

under the Act without the enactment of 

the 1977 amendments. 

The ‘‘old-law’’ contribution and 

benefit base is used by: 

61682 Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 

(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 ‘‘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 2004 to that for 

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

($66,900). If the resulting amount is not 

a multiple of $300, it shall be rounded 

to the nearest multiple of $300. 

Amount 

Multiplying the 1994 ‘‘old-law’’

contribution and benefit base amount 

($45,000) by the ratio of the national 

average wage index for 2004 

($35,648.55) to that for 1992 

($22,935.42) produces the amount of 

$69,943.55. We round this amount to 

$69,900. Because $69,900 exceeds the 

current amount of $66,900, the ‘‘oldlaw’’ contribution and benefit base is 

$69,900 for 2006. 

Substantial Gainful Activity Amounts 

General 

A finding of disability under titles II 

and XVI of the Act requires that a 

person, except for a title XVI disabled 

child, be unable to engage in substantial 

gainful activity (SGA). A person who is 

earning more than a certain monthly 

amount (net of impairment-related work 

expenses) is ordinarily considered to be 

engaging in SGA. The amount of 

monthly earnings considered as SGA 

depends on the nature of a person’s 

disability. Section 223(d)(4)(A) of the 

Act specifies a higher SGA amount for 

statutorily blind individuals under title 

II while Federal regulations (20 CFR 

404.1574 and 416.974) specify a lower 

SGA amount for non-blind individuals. 

Both SGA amounts increase in 

accordance with increases in the 

national average wage index. 

Computation 

The monthly SGA amount for 

statutorily blind individuals under title 

II for 2006 shall be the larger of: (1) 

Such amount for 1994 multiplied by the 

ratio of the national average wage index 

for 2004 to that for 1992; or (2) such 

amount for 2005. The monthly SGA 

amount for non-blind disabled 

individuals for 2006 shall be the larger 

of: (1) Such amount for 2000 multiplied 

by the ratio of the national average wage 

index for 2004 to that for 1998; or (2) 

such amount for 2005. In either case, if 

the resulting amount is not a multiple 

of $10, it shall be rounded to the nearest 

multiple of $10. 

SGA Amount for Statutorily Blind 

Individuals 

Multiplying the 1994 monthly SGA 

amount for statutorily blind individuals 

($930) by the ratio of the national 

average wage index for 2004 

($35,648.55) to that for 1992 

($22,935.42) produces the amount of 

$1,445.50. We then round this amount 

to $1,450. Because $1,450 is larger than 

the current amount of $1,380, the 

monthly SGA amount for statutorily 

blind individuals is $1,450 for 2006. 

SGA Amount for Non-Blind Disabled 

Individuals 

Multiplying the 2000 monthly SGA 

amount for non-blind individuals ($700) 

by the ratio of the national average wage 

index for 2004 ($35,648.55) to that for 

1998 ($28,861.44) produces the amount 

of $864.61. We then round this amount 

to $860. Because $860 is larger than the 

current amount of $830, the monthly 

SGA amount for non-blind disabled 

individuals is $860 for 2006. 

Trial Work Period Earnings Threshold 

General 

During a trial work period, a 

beneficiary receiving Social Security 

disability benefits may test his or her 

ability to work and still be considered 

disabled. We do not consider services 

performed during the trial work period 

as showing that the disability has ended 

until services have been performed in at 

least 9 months (not necessarily 

consecutive) in a rolling 60-month 

period. In 2005, any month in which 

earnings exceed $590 is considered a 

month of services for an individual’s 

trial work period. In 2006, this monthly 

amount increases to $620. 

Computation 

The method used to determine the 

new amount is set forth in our 

regulations at 20 CFR 404.1592(b). 

Monthly earnings in 2006, used to 

determine whether a month is part of a 

trial work period, is such amount for 

2001 ($530) multiplied by the ratio of 

the national average wage index for 

2004 to that for 1999, or, if larger, such 

amount for 2005. If the amount so 

calculated is not a multiple of $10, we 

round it to the nearest multiple of $10. 

Amount 

Multiplying the 2001 monthly 

earnings threshold ($530) by the ratio of 

the national average wage index for 

2004 ($35,648.55) to that for 1999 

($30,469.84) produces the amount of 

$620.08. We then round this amount to 

$620. Because $620 is larger than the 

current amount of $590, the monthly 

earnings threshold is $620 for 2006. 

Domestic Employee Coverage 

Threshold 

General 

The minimum amount a domestic 

worker must earn so that such earnings 

are covered under Social Security or 

Medicare is the domestic employee 

coverage threshold. For 2006, this 

threshold is $1,500. Section 3121(x) of 

the Internal Revenue Code provides the 

formula for increasing the threshold. 

Computation 

Under the formula, the domestic 

employee coverage threshold amount 

for 2006 shall be equal to the 1995 

amount of $1,000 multiplied by the ratio 

of the national average wage index for 

2004 to that for 1993. If the resulting 

amount is not a multiple of $100, it 

shall be rounded to the next lower 

multiple of $100. 

Domestic Employee Coverage Threshold 

Amount 

Multiplying the 1995 domestic 

employee coverage threshold amount 

($1,000) by the ratio of the national 

average wage index for 2004 

($35,648.55) to that for 1993 

($23,132.67) produces the amount of 

$1,541.05. We then round this amount 

to $1,500. Accordingly, the domestic 

employee coverage threshold amount is 

$1,500 for 2006. 

Election Worker Coverage Threshold 

General 

The minimum amount an election 

worker must earn so that such earnings 

are covered under Social Security or 

Medicare is the election worker 

coverage threshold. For 2006, this 

Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 61683 

threshold is $1,300. Section 218(c)(8)(B) 

of the Act provides the formula for 

increasing the threshold. 

Computation 

Under the formula, the election 

worker coverage threshold amount for 

2006 shall be equal to the 1999 amount 

of $1,000 multiplied by the ratio of the 

national average wage index for 2004 to 

that for 1997. If the amount so 

determined is not a multiple of $100, it 

shall be rounded to the nearest multiple 

of $100. 

Election Worker Coverage Threshold 

Amount 

Multiplying the 1999 election worker 

coverage threshold amount ($1,000) by 

the ratio of the national average wage 

index for 2004 ($35,648.55) to that for 

1997 ($27,426.00) produces the amount 

of $1,299.81. We then round this 

amount to $1,300. Accordingly, the 

election worker coverage threshold 

amount is $1,300 for 2006. 

(Catalog of Federal Domestic Assistance: 

Program Nos. 96.001 Social SecurityDisability Insurance; 96.002 Social SecurityRetirement Insurance; 96.004 Social SecuritySurvivors Insurance; 96.006 Supplemental 

Security Income) 

Dated: October 18, 2005. 

Jo Anne B. Barnhart, 

Commissioner, Social Security 

Administration. 

[FR Doc. 05–21272 Filed 10–24–05; 8:45 am] 

BILLING CODE 4191–02–P 

DEPARTMENT OF STATE 

[Public Notice 5170] 

Shipping Coordinating Committee; 

Notice of Meeting 

The Shipping Coordinating 

Committee (SHC) will conduct an open 

meeting from 10 a.m. to 11 a.m. on 

Monday, November 14, 2005, in Room 

6103, at U.S. Coast Guard Headquarters, 

2100 Second Street, SW., Washington, 

DC 20593–0001. The purpose of the 

meeting is to finalize preparations for 

the 23rd Extraordinary Session of 

Council, 95th Session of Council and 

24th Session of the Assembly of the 

International Maritime Organization 

(IMO), which are scheduled for 

November 17, 2005 thru December 2, 

2005, at the IMO Headquarters in 

London. Discussion will focus on 

papers received and draft U.S. positions. 

Items of particular interest include: 

—Reports of Committees; 

—Reports on Diplomatic Conferences; 

—Work Program and Budget for 2006–

2007; and 

—Election of Members of the Council. 

Members of the public may attend 

these meetings up to the seating 

capacity of the room. Interested persons 

may seek information by writing: 

Director, International Affairs, U.S. 

Coast Guard Headquarters, 

Commandant (G–CI), room 2114, 2100 

Second Street, SW., Washington, DC 

20593–0001 or by calling: (202) 267–

2280. 

Dated: October 13, 2005. 

Clay Diamond, 

Executive Secretary, Shipping Coordinating 

Committee, Department of State. 

[FR Doc. 05–21280 Filed 10–24–05; 8:45 am] 

BILLING CODE 4710–09–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

Executive Committee of the Aviation 

Rulemaking Advisory Committee; 

Meeting 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of meeting. 

SUMMARY: The FAA is issuing this notice 

to advise the public of a meeting of the 

Executive Committee of the Aviation 

Rulemaking Advisory Committee. 

DATES: The meeting will be on 

November 9, 2005, at 10 a.m. 

ADDRESSES: The meeting will take place 

at the Federal Aviation Administration, 

800 Independence Avenue, SW., 

Washington, DC 20591, 2nd floor, 

Bessie Coleman Room. 

FOR FURTHER INFORMATION CONTACT: 

Gerri Robinson, Federal Aviation 

Administration, 800 Independence 

Avenue, SW., Washington, DC 20591, 

telephone (202) 267–9678; fax (202) 

267–5075; e-mail 

Gerri.Robinson@faa.gov. 

SUPPLEMENTARY INFORMATION: Under 

section 10(a)(2) of the Federal Advisory 

Committee Act (5 U.S.C. App. 2), we are 

giving notice of a meeting of the 

Executive Committee of the Aviation 

Rulemaking Advisory Committee taking 

place on November 9, 2005, at the 

Federal Aviation Administration, 800 

Independence Avenue, SW., 

Washington, DC 20591. The agenda 

includes: 

• ISO Feedback (Pilot ARM Feedback 

Form). 

• EASA discussion. 

• ARAC Web Changes. 

• Future of ARAC/Recertification of 

ARAC membership/Charter renewal. 

• 2006 Meeting dates—frequency (2 

versus 4). 

• Issue Area Status Reports from 

Assistant Chairs. 

• Remarks from other EXCOM 

members. 

Attendance is open to the interested 

public but limited to the space 

available. The FAA will arrange 

teleconference service for individuals 

wishing to join in by teleconference if 

we receive notice by October 31. 

Arrangements to participate by 

teleconference can be made by 

contacting the person listed in the FOR

FURTHER INFORMATION CONTACT section. 

Callers outside the Washington 

metropolitan area are responsible for 

paying long-distance charges. 

The public must arrange by October 

31 to present oral statements at the 

meeting. The public may present 

written statements to the executive 

committee by providing 25 copies to the 

Executive Director, or by bringing the 

copies to the meeting. 

If you are in need of assistance or 

require a reasonable accommodation for 

this meeting, please contact the person 

listed under the heading FOR FURTHER

INFORMATION CONTACT. 

Issued in Washington, DC, on October 18, 

2005. 

Anthony F. Fazio, 

Executive Director, Aviation Rulemaking 

Advisory Committee. 

[FR Doc. 05–21234 Filed 10–24–05; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

Notice of Intent To Rule on Application 

05–05–C–00–MCI To Impose a 

Passenger Facility Charge (PFC) at 

Kansas City International Airport (MCI) 

for Use at MCI and Charles B. Wheeler 

Downtown Airport (MKC), Kansas City, 

MO 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of intent to rule on 

application. 

SUMMARY: The FAA proposes to rule and 

invites public comment on the 

application to impose a PFC at MCI for 

use at MCI and MKC under the 

provisions of the 49 U.S.C. 40117 and 

Part 158 of the Federal Aviation 

Regulations (14 CFR Part 158). 

DATES: Comments must be received on 

or before November 25, 2005. 

ADDRESSES: Comments on this 

application may be mailed or delivered 

in triplicate to the FAA at the following 

address: 901 Locust, Kansas City, 

Missouri 64106.