(a) Definition of terms used in this section:
Average monthly remuneration (AMR) means the amount obtained by adding together the creditable compensation and wages earned by the employee after 1936 and before the LSDP closing date and dividing that sum by three times the number of calendar quarters in that period. (Refer to part 211 of this chapter for a definition of creditable compensation and section 209 of the Social Security Act for a definition of creditable wages.)
Closing date means whichever of the following produce the highest AMR:
(1) The first day of the calendar year in which the employee both attained age 65 and was completely insured;
(2) The first day of the calendar year in which the employee died; or
(3) The first day of the calendar year following the year in which the employee died;
(4) However, if paragraphs (a)(1) through (3) of this definition do not occur before January 1, 1975, the closing date is January 1, 1975.
(b) LSDP basic amount formula. The basic amount is computed using the following formula:
(1) Determine 52.4% of the AMR up to and including $75.00;
(2) Determine 12.8% of the AMR exceeding $75.00;
(3) Determine 1% of the sum of paragraphs (b)(1) and (2) of this section;
(4) Multiply the result of paragraph (b)(3) of this section by the number of years after 1936 through 1974 in which the employee earned $200 or more;
(5) Add the results of paragraphs (b)(1), (2) and (3) of this section. If the resulting basic amount is less than $18.14, increase it to $18.14.