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average monthly remuneration will be calculated in accordance with the answers to questions 50 and 53. Second, the "monthly compensation" applicable to prior service will be calculated (see questions 20, 21, 22, 24 and 25). The "average monthly remuneration" will be the larger of the two, except that it cannot exceed $750. For pilots dying after December 31, 1952, and for any pilot without credit for service before June, 1949, the procedure set forth in the answers to questions 50 to 53 will always apply.

55. Q. When the average monthly remuneration is computed, what is the next step?

A. The second step is to take the sum of 40 per cent of the first $50 of the average monthly remuneration and 10 per cent of the excess over $50. For example, if your average monthly remuneration is $750, the sum of the two percentages is $90, as follows:

40 per cent of the first $50 ------ $20.00
10 per cent of the excess, $700 --- $70.00
                                    ------
Total ----------------------------- $90.00

A short way is to take 10 per cent 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 $500, would be $65.

56. Q. What is the third step?

A. The third involves adding to the amount arrived by the second step 1 per cent of such amount for each calendar year after 1948 in which the pilot had compensation paid to him in the amount $750 or more. Thus, in the case of the pilot in question 51 who retires in 1959 and whose average monthly remuneration was $750, the amount arrived at by the second step($90) would be increased by 11 per cent to $99.90. In the case where the second step was $65, based also on the compensation for 11 years in each of which more than $750 was paid to the pilot, the amount of the second step ($65) would be increased by 11 per cent to $72.15. The final result of the three steps in called the "insurance amount".

57. 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 pilot's "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 annuity is one-half of the "insurance amount". The fourth step in the process is the calculation of the individual benefit by applying the appropriate percentage to the "insurance amount". This will be the final step in the process unless certain maximum and minimum limitations are applicable.

58 Q. For a pilot whose average monthly remuneration is $750 and who received $750 or more in each of 11 years, what would the several benefits be?

A. The insurance amount, as explained, would be $99.90. The bene-fit to the widow would be 75 per cent of $99.90 or $74.93 per month. The child's or parent's monthly benefit would be $49.95. If there are a widow and two children, the total family benefit would be $174.83 per