amount of the individual’s adjusted total covered earnings 
(as defined in clause (iii)(II)) for such calendar year shall 
be deemed to be, in lieu of the amount determined without 
regard to this clause, an amount equal to the quotient de-
rived by dividing— 
‘‘(I) the sum of all adjusted total covered earn-
ings (determined without regard to this clause) of 
the individual for all calendar years after 1950, plus 
all recorded noncovered earnings which are paid to 
the individual during such calendar years (after ad-
justment under subsection (b)(3) as if such earnings 
were wages), by 
‘‘(II) the number of calendar years after 1950 
for which there are, with respect to the individual, 
any earnings described in subclause (I). 
‘‘(iii) For purposes of this subparagraph— 
‘‘(I) The term ‘recorded noncovered earnings’ 
means earnings derived from noncovered service 
(other than noncovered service as a member of a 
uniformed service (as defined in section 210(m)) for 
which satisfactory evidence is determined by the 
Commissioner to be available in the records of the 
Commissioner. 
‘‘(II) The term ‘adjusted total covered earnings’ 
means, in connection with an individual for any cal-
VerDate Nov 24 2008 
03:02 Feb 28, 2009
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H1221.IH
H1221
jbell on PROD1PC69 with BILLS
endar year, the sum of the wages paid to the indi-
vidual during such calendar year (as adjusted under 
subsection (b)(3)) plus the self-employment income 
derived by the individual during any taxable year 
ending with or during such calendar year (as ad-
justed under subsection (b)(3)). 
‘‘(iv) The Commissioner of Social Security shall pro-
vide by regulation for methods for determining whether 
satisfactory evidence is available in the records of the 
Commissioner for earnings for noncovered service (other 
than noncovered service as a member of a uniformed serv-
ice (as defined in section 210(m)) to be treated as re-
corded noncovered earnings. Such methods shall provide 
for reliance on earnings information which is provided to 
the Commissioner by employers and which, as determined 
by the Commissioner, constitute a reasonable basis for 
treatment of earnings for noncovered service as recorded 
noncovered earnings. In making determinations under this 
clause, the Commissioner shall also take into account any 
documentary evidence of earnings derived from non-
covered service by an individual which is provided by the 
individual to the Commissioner and which the Commis-
sioner considers appropriate as a reasonable basis for 
treatment of such earnings as recorded noncovered earn-
ings, except that such evidence provided by the individual 
VerDate Nov 24 2008 
03:02 Feb 28, 2009
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H1221.IH
H1221
jbell on PROD1PC69 with BILLS
shall be taken into account only to the extent that such 
evidence does not relate to earnings for service with re-
spect to which information regarding earnings has already 
been obtained by the Commissioner from the employer and 
only to the extent that such evidence does not result in 
a reduction in the individual’s primary insurance amount 
as calculated under subparagraph (C). 
‘‘(E)(i) For purposes of determining the primary in-
surance amount under this subparagraph pursuant to sub-
paragraph (B)(ii)(II)— 
‘‘(I) there shall first be computed an amount 
equal to the individual’s primary insurance amount 
under paragraph (1) of this subsection, except that 
for purposes of such computation the percentage of 
the individual’s average indexed monthly earnings 
established by subparagraph (A)(i) of paragraph (1) 
shall be the percent specified in clause (ii), and 
‘‘(II) there shall then be computed (without re-
gard to this paragraph) a second amount, which 
shall be equal to the individual’s primary insurance 
amount under paragraph (1) of this subsection, ex-
cept that such second amount shall be reduced by an 
amount equal to one-half of the portion of the 
monthly periodic payment which is attributable to 
noncovered service performed after 1956 (with such 
VerDate Nov 24 2008 
03:02 Feb 28, 2009
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H1221.IH
H1221
jbell on PROD1PC69 with BILLS
attribution being based on the proportionate number 
of years of such noncovered service) and to which 
the individual is entitled (or is deemed to be enti-
tled) for the initial month of his or her concurrent 
entitlement to such monthly periodic payment and 
old-age or disability insurance benefits. 
An individual’s primary insurance amount determined 
under this subparagraph shall be the larger of the two 
amounts computed under this clause (before the applica-
tion of subsection (i)). 
‘‘(ii) For purposes of clause (i), the percent specified 
in this clause is— 
‘‘(I) 80.0 percent with respect to individuals 
who become eligible (as defined in paragraph (3)(B)) 
for old-age insurance benefits (or became eligible as 
so defined for disability insurance benefits before at-
taining age 62) in 1986; 
‘‘(II) 70.0 percent with respect to individuals 
who so become eligible in 1987; 
‘‘(III) 60.0 percent with respect to individuals 
who so become eligible in 1988; 
‘‘(IV) 50.0 percent with respect to individuals 
who so become eligible in 1989; and 
‘‘(V) 40.0 percent with respect to individuals 
who so become eligible in 1990 or thereafter. 
VerDate Nov 24 2008 
03:02 Feb 28, 2009
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H1221.IH
H1221
jbell on PROD1PC69 with BILLS