[Congressional Record Volume 143, Number 43 (Monday, April 14, 1997)]
[Senate]
[Pages S3119-S3120]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SMITH of New Hampshire:
  S. 567. A bill to permit revocation by members of the clergy of their 
exemption from Social Security coverage; to the Committee on Finance.


                  social security coverage legislation

  Mr. SMITH of New Hampshire. Mr. President, today I am introducing 
what I believe to be a very sensible piece of legislation which will 
allow a number of members of the clergy of all faiths to participate in 
the Social Security Program. Before 1968 a minister was exempt from 
Social Security coverage unless he or she chose to elect that coverage, 
and in 1968 ministers were covered by Social Security unless they filed 
an irrevocable exemption from the IRS on the grounds that they were 
opposed on basic religious principles to participate in any public 
insurance program. So a member of the clergy who is eligible for this 
exemption is an ``individual who is duly ordained, commissioned, or 
licensed member of a church, or a member of a religious order which has 
not taken a vow of poverty.''
  About 260,000 ministers are affected by this exclusion. This 
legislation which I have offered would simply permit ministers and the 
few members of religious orders who have not taken a vow of poverty to 
secure that coverage. Modestly paid clergy would be among those most 
likely to need Social Security benefits when they retire. But earlier 
in their careers many chose not to participate in the program. They had 
good intentions. They were doing it on principle. But they didn't fully 
understand the ramifications of the exemption. Since 1968--once in 1977 
and another time in 1986--ministers were given a temporary opportunity 
to revoke their exemption from Social Security; that is, they would 
have the opportunity to have a window whereby they could come back 
under the Social Security System.
  This was brought to my attention by the distinguished bishop in 
Manchester, NH, Reverend Bishop O'Neil.

[[Page S3120]]

 He brought this matter to my attention--that there are a number of 
hardships for individuals who may or may not have any retirement income 
as a result of this.
  So this legislation simply provides another open season, a 2-year 
period whereby those who are clergy who may wish now to be under the 
Social Security System may take advantage of this opportunity to revoke 
their exemption.
  That is all the bill does, and I think it is fair in that again these 
are very principled members of the cloth who have decided now that they 
would like to have the opportunity to get into the program.
  So it is a 2-year open season during which the members of the clergy 
could opt into the system. The application for benefits must be filed 
before the clergy member can become entitled to benefits, and those who 
choose coverage would be subject to self-employment taxes. And their 
earnings would be credited for Social Security and for Medicare 
purposes. And, of course, no one who is at retirement age now would be 
allowed in. These would be people who are not yet at the retirement 
age.
  Based on the experience in 1986 and the trends in the number of 
clergy since then, the Congressional Budget Office estimates that maybe 
as many as 1,500 to 1,600 members of the clergy would take advantage of 
the open season and enroll in Social Security. That is based on past 
performance. That is what happened in 1986. The bill was scored by the 
Congressional Budget Office. I have had it scored. It is a short-time 
revenue raiser because people would be paying into the system but, of 
course, it is going to ultimately be like any other Social Security 
beneficiary in the sense that we will be paying out more than comes in.
  This legislation has the endorsement of the National Conference of 
Catholic Bishops. It is an issue of fairness. I hope my colleagues will 
join me in support of this legislation which I would like to see passed 
this year so that we could begin the open season process so that 
members of the clergy could opt in now to the Social Security System. I 
hope that many of my colleagues will join me as quickly as possible in 
cosponsoring the legislation so that we can get it out of the Finance 
Committee and here on the floor so that we can begin to correct this 
inadequacy, this unfairness where many members of the clergy are 
affected.
                                 ______