111 HR 132 IH: Total Overhaul of Totalization Agreements Law of 2009
U.S. House of Representatives
2009-01-06
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EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the
Total Overhaul of Totalization
Agreements Law of 2009
.
2.Restriction of
totalization agreements to providing for appropriate exchange of social
security taxes or contributions
(a)Section 233 of the Social Security Act (42 U.S.C. 433) is
amended—
(1)in subsection (a),
by striking for the purposes of
and all that follows and
inserting the following: for the purposes of providing appropriate
exchange between the parties to such agreements of taxes or contributions paid
under their respective social security systems, as provided in subsection
(c)(1).
; and
(2)by striking
subsection (c)(1) and inserting the following:
(c)(1)Any agreement
establishing a totalization arrangement pursuant to this section between the
United States and another country shall provide that—
(A)in any case in which—
(i)an individual who is a citizen or national
of the other country or lawfully admitted to the other country for permanent
residence in the other country becomes entitled to cash benefits under the
Social Security system of the other country, and
(ii)such individual (or, in the case
of a survivor or derivative benefit, the individual on whose contributions such
benefits are based) has been credited with at least 6 quarters of coverage as
defined in section 213 based on wages paid for services performed in the United
States or self-employment income derived in the United States,
the
Secretary of the Treasury shall transfer from the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability Insurance Trust Fund to the
other country amounts appropriated to each such Trust Fund under section 201 in
connection with taxes under chapters 2 and 21 of the Internal Revenue Code of
1986 paid in connection with such wages and self-employment income, and(B)in any case in which—
(i)an individual who is a citizen or national
of the United States or lawfully admitted for permanent residence in the United
States becomes entitled to cash benefits under this title, and
(ii)such individual (or, in the case of a
survivor or derivative benefit, the individual on whose wages and
self-employment income such benefits are based) has been credited with a period
of coverage under the Social Security system of the other country, based on
service performed, or earnings derived, in the other country, equivalent (under
the terms of the agreement) to 6 quarters of coverage as defined in section
213,
the
other country shall pay to the United States an amount equivalent to any taxes
or other contributions paid by the credited individual described in clause (ii)
or such individual’s employer to the Social Security system of the other
country, based on such service or earnings, as required under the Social
Security system of the other
country..
(b)Section 233(c)(3) of such Act (42 U.S.C. 433(c)(3)) is
amended to read as follows:
(3)Any such agreement shall provide for
the exchange of such information between the parties to the agreement as is
necessary to provide for the transfers between the parties under paragraph (1).
The Secretary of the Treasury and the Commissioner of Social Security shall
exchange such information as is necessary to enable the Secretary of the
Treasury to carry out any transfers referred to in paragraph
(1)(A).
.
(c)The amendments made by this section shall apply with respect
to agreements becoming effective on or after January 1, 2009.
3.Limitations on
coverage of individuals based on earnings by individuals in the United States
while such individuals were not citizens, nationals, or lawful permanent
residents of the United States and were not authorized to be employed in the
United States
(a)Section 215(e) of the Social Security Act (42 U.S.C. 415(e)) is
amended—
(1)by redesignating
paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;
(2)by inserting
(1)
after (e)
; and
(3)by adding at the
end the following new paragraph:
(2)For purposes of subsections (b) and (d), in
computing an individual’s average indexed monthly earnings (or in the case of
an individual whose primary insurance amount is computed under section 215(a)
as in effect prior to January 1979, average monthly wage), such individual
shall not be credited with any wages paid to such individual for services
performed in the United States, or any self-employment income derived by such
individual in the United States, if such services were performed, or such
self-employment income was derived, while such individual was neither a citizen
or national of the United States nor lawfully admitted for permanent residence
in the United States and was not authorized to be employed in the United
States.
.
(b)The amendments made by
subsection (a) shall apply with respect to wages paid, and self-employment
income derived, before, on, or after the date of the enactment of this Act.
Notwithstanding section 215(f)(1) of the Social Security Act (42 U.S.C.
415(f)(1)), as soon as practicable after the date of the enactment of this Act,
the Commissioner of Social Security shall recompute all primary insurance
amounts to the extent necessary to carry out such amendments. Such amendments
shall affect benefits only for months after the date of the enactment of this
Act.