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-20-

40 per cent of the first $50 - $20.00
10 per cent of the excess $672.50 - $67.25
Total $87.25

A short way is to take 10 percent of the average (so long as it is more than $50) and add $15. Thus, the sum of the two percentages, where the average monthly remuneration is $498.28, would be $64.83.

42. Q. What is the third step?
A. The third step involves adding to the amount arrived at by the second step one per cent of such amount for each calendar year after 1947 in which the pilot had compensation paid to him in the amount of $750 or more. Thus, in the case of the pilot in Question 37 who retires in 1958 and whose average monthly remuneration was $722.50, the amount arrived at by the second step ($87.25) would be increased by 10 per cent to $95.98. In the case where the second step was $64.83, based also on compensation for 10 years in each of which was more than $750 was paid to the pilot, the amount of the second step (64.83) would be increased also by 10 per cent to $71.31. The final result of the three steps is called the "insurance amount".

43. Q. What use is made of the "insurance amount"?
A. All annuities to survivors of pilots who die "wholly insured" or "temporarily insured" are fixed as percentages of the deceased pilots' "insurance amount". Thus the widow's monthly annuity, either at age 60 or when she is younger and has children under 21, is 75 per cent of the "insurance amount". A child's or parent's monthly