[Congressional Record Volume 150, Number 17 (Wednesday, February 11, 2004)]
[House]
[Pages H443-H465]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SOCIAL SECURITY PROTECTION ACT OF 2003
Mr. SHAW. Mr. Speaker, pursuant to House Resolution 520, I call up
from the Speaker's table the bill (H.R. 743) to amend the Social
Security Act and the Internal Revenue Code of 1986 to provide
additional safeguards for Social Security and Supplemental Security
Income beneficiaries with representative payees, to enhance program
protections, and for other purposes, with a Senate amendment thereto,
and ask for its immediate consideration.
The Clerk read the title of the bill.
The text of the Senate amendment is as follows:
Senate Amendment:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Social
Security Protection Act of 2003''.
(b) Table of Contents.--The table of contents is as
follows:
Sec. 1. Short title and table of contents.
TITLE I--PROTECTION OF BENEFICIARIES
Subtitle A--Representative Payees
Sec. 101. Authority to reissue benefits misused by organizational
representative payees.
Sec. 102. Oversight of representative payees.
Sec. 103. Disqualification from service as representative payee of
persons convicted of offenses resulting in imprisonment
for more than 1 year or fleeing prosecution, custody, or
confinement.
Sec. 104. Fee forfeiture in case of benefit misuse by representative
payees.
Sec. 105. Liability of representative payees for misused benefits.
Sec. 106. Authority to redirect delivery of benefit payments when a
representative payee fails to provide required
accounting.
Sec. 107. Survey of use of payments by representative payees.
Subtitle B--Enforcement
Sec. 111. Civil monetary penalty authority with respect to wrongful
conversions by representative payees.
TITLE II--PROGRAM PROTECTIONS
Sec. 201. Civil monetary penalty authority with respect to withholding
of material facts.
Sec. 202. Issuance by Commissioner of Social Security of receipts to
acknowledge submission of reports of changes in work or
earnings status of disabled beneficiaries.
Sec. 203. Denial of title II benefits to persons fleeing prosecution,
custody, or confinement, and to persons violating
probation or parole.
Sec. 204. Requirements relating to offers to provide for a fee, a
product or service available without charge from the
Social Security Administration.
Sec. 205. Refusal to recognize certain individuals as claimant
representatives.
Sec. 206. Criminal penalty for corrupt or forcible interference with
administration of Social Security Act.
Sec. 207. Use of symbols, emblems, or names in reference to social
security or medicare.
Sec. 208. Disqualification from payment during trial work period upon
conviction of fraudulent concealment of work activity.
Sec. 209. Authority for judicial orders of restitution.
Sec. 210. Authority for cross-program recovery of benefit overpayments.
Sec. 211. Prohibition on payment of title II benefits to persons not
authorized to work in the United States.
TITLE III--ATTORNEY REPRESENTATIVE FEE PAYMENT SYSTEM IMPROVEMENTS
Sec. 301. Cap on attorney assessments.
Sec. 302. Temporary extension of attorney fee payment system to title
XVI claims.
Sec. 303. Nationwide demonstration project providing for extension of
fee withholding procedures to non-attorney
representatives.
Sec. 304. GAO study regarding the fee payment process for claimant
representatives.
TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS
Subtitle A--Amendments Relating to the Ticket to Work and Work
Incentives Improvement Act of 1999
Sec. 401. Application of demonstration authority sunset date to new
projects.
Sec. 402. Expansion of waiver authority available in connection with
demonstration projects providing for reductions in
disability insurance benefits based on earnings.
Sec. 403. Funding of demonstration projects providing for reductions in
disability insurance benefits based on earnings.
Sec. 404. Availability of Federal and State work incentive services to
additional individuals.
Sec. 405. Technical amendment clarifying treatment for certain purposes
of individual work plans under the Ticket to Work and
Self-Sufficiency Program.
[[Page H444]]
Sec. 406. GAO study regarding the Ticket to Work and Self-Sufficiency
Program.
Sec. 407. Reauthorization of appropriations for certain work incentives
programs.
Subtitle B--Miscellaneous Amendments
Sec. 411. Elimination of transcript requirement in remand cases fully
favorable to the claimant.
Sec. 412. Nonpayment of benefits upon removal from the United States.
Sec. 413. Reinstatement of certain reporting requirements.
Sec. 414. Clarification of definitions regarding certain survivor
benefits.
Sec. 415. Clarification respecting the FICA and SECA tax exemptions for
an individual whose earnings are subject to the laws of a
totalization agreement partner.
Sec. 416. Coverage under divided retirement system for public employees
in Kentucky and Louisiana.
Sec. 417. Compensation for the Social Security Advisory Board.
Sec. 418. 60-month period of employment requirement for application of
government pension offset exemption.
Sec. 419. Disclosure to workers of effect of windfall elimination
provision and government pension offset provision.
Sec. 420. Post-1956 Military Wage Credits.
Sec. 420A. Elimination of disincentive to return-to-work for childhood
disability beneficiaries.
Subtitle C--Technical Amendments
Sec. 421. Technical correction relating to responsible agency head.
Sec. 422. Technical correction relating to retirement benefits of
ministers.
Sec. 423. Technical corrections relating to domestic employment.
Sec. 424. Technical corrections of outdated references.
Sec. 425. Technical correction respecting self-employment income in
community property States.
Sec. 426. Technical amendments to the Railroad Retirement and
Survivors' Improvement Act of 2001.
Subtitle D--Amendments Related to Title XVI
Sec. 430. Exclusion from income for certain infrequent or irregular
income and certain interest or dividend income.
Sec. 431. Uniform 9-month resource exclusion periods.
Sec. 432. Elimination of certain restrictions on the application of the
student earned income exclusion.
Sec. 433. Exception to retrospective monthly accounting for
nonrecurring income.
Sec. 434. Removal of restriction on payment of benefits to children who
are born or who become blind or disabled after their
military parents are stationed overseas.
Sec. 435. Treatment of education-related income and resources.
Sec. 436. Monthly treatment of uniformed service compensation.
TITLE I--PROTECTION OF BENEFICIARIES
Subtitle A--Representative Payees
SEC. 101. AUTHORITY TO REISSUE BENEFITS MISUSED BY
ORGANIZATIONAL REPRESENTATIVE PAYEES.
(a) Title II Amendments.--
(1) Reissuance of benefits.--Section 205(j)(5) of the
Social Security Act (42 U.S.C. 405(j)(5)) is amended by
inserting after the first sentence the following: ``In any
case in which a representative payee that--
``(A) is not an individual (regardless of whether it is a
`qualified organization' within the meaning of paragraph
(4)(B)); or
``(B) is an individual who, for any month during a period
when misuse occurs, serves 15 or more individuals who are
beneficiaries under this title, title VIII, title XVI, or any
combination of such titles;
misuses all or part of an individual's benefit paid to such
representative payee, the Commissioner of Social Security
shall certify for payment to the beneficiary or the
beneficiary's alternative representative payee an amount
equal to the amount of such benefit so misused. The
provisions of this paragraph are subject to the limitations
of paragraph (7)(B).''.
(2) Misuse of benefits defined.--Section 205(j) of such Act
(42 U.S.C. 405(j)) is amended by adding at the end the
following:
``(8) For purposes of this subsection, misuse of benefits
by a representative payee occurs in any case in which the
representative payee receives payment under this title for
the use and benefit of another person and converts such
payment, or any part thereof, to a use other than for the use
and benefit of such other person. The Commissioner of Social
Security may prescribe by regulation the meaning of the term
`use and benefit' for purposes of this paragraph.''.
(b) Title VIII Amendments.--
(1) Reissuance of benefits.--Section 807(i) of the Social
Security Act (42 U.S.C. 1007(i)) is amended further by
inserting after the first sentence the following: ``In any
case in which a representative payee that--
``(A) is not an individual; or
``(B) is an individual who, for any month during a period
when misuse occurs, serves 15 or more individuals who are
beneficiaries under this title, title II, title XVI, or any
combination of such titles;
misuses all or part of an individual's benefit paid to such
representative payee, the Commissioner of Social Security
shall pay to the beneficiary or the beneficiary's alternative
representative payee an amount equal to the amount of such
benefit so misused. The provisions of this paragraph are
subject to the limitations of subsection (l)(2).''.
(2) Misuse of benefits defined.--Section 807 of such Act
(42 U.S.C. 1007) is amended by adding at the end the
following:
``(j) Misuse of Benefits.--For purposes of this title,
misuse of benefits by a representative payee occurs in any
case in which the representative payee receives payment under
this title for the use and benefit of another person under
this title and converts such payment, or any part thereof, to
a use other than for the use and benefit of such person. The
Commissioner of Social Security may prescribe by regulation
the meaning of the term `use and benefit' for purposes of
this subsection.''.
(3) Technical amendment.--Section 807(a) of such Act (42
U.S.C. 1007(a)) is amended, in the first sentence, by
striking ``for his or her benefit'' and inserting ``for his
or her use and benefit''.
(c) Title XVI Amendments.--
(1) Reissuance of benefits.--Section 1631(a)(2)(E) of such
Act (42 U.S.C. 1383(a)(2)(E)) is amended by inserting after
the first sentence the following: ``In any case in which a
representative payee that--
``(i) is not an individual (regardless of whether it is a
`qualified organization' within the meaning of subparagraph
(D)(ii)); or
``(ii) is an individual who, for any month during a period
when misuse occurs, serves 15 or more individuals who are
beneficiaries under this title, title II, title VIII, or any
combination of such titles;
misuses all or part of an individual's benefit paid to such
representative payee, the Commissioner of Social Security
shall pay to the beneficiary or the beneficiary's alternative
representative payee an amount equal to the amount of such
benefit so misused. The provisions of this subparagraph are
subject to the limitations of subparagraph (H)(ii).''.
(2) Exclusion of reissued benefits from resources.--Section
1613(a) of such Act (42 U.S.C. 1382b(a)) is amended--
(A) in paragraph (12), by striking ``and'' at the end;
(B) in paragraph (13), by striking the period and inserting
``; and''; and
(C) by inserting after paragraph (13) the following:
``(14) for the 9-month period beginning after the month in
which received, any amount received by such individual (or
spouse) or any other person whose income is deemed to be
included in such individual's (or spouse's) income for
purposes of this title as restitution for benefits under this
title, title II, or title VIII that a representative payee of
such individual (or spouse) or such other person under
section 205(j), 807, or 1631(a)(2) has misused.''.
(3) Misuse of benefits defined.--Section 1631(a)(2)(A) of
such Act (42 U.S.C. 1383(a)(2)(A)) is amended by adding at
the end the following:
``(iv) For purposes of this paragraph, misuse of benefits
by a representative payee occurs in any case in which the
representative payee receives payment under this title for
the use and benefit of another person and converts such
payment, or any part thereof, to a use other than for the use
and benefit of such other person. The Commissioner of Social
Security may prescribe by regulation the meaning of the term
`use and benefit' for purposes of this clause.''.
(d) Effective Date.--The amendments made by this section
shall apply to any case of benefit misuse by a representative
payee with respect to which the Commissioner of Social
Security makes the determination of misuse on or after
January 1, 1995.
SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES.
(a) Certification of Bonding and Licensing Requirements for
Nongovernmental Organizational Representative Payees.--
(1) Title ii amendments.--Section 205(j) of the Social
Security Act (42 U.S.C. 405(j)) is amended--
(A) in paragraph (2)(C)(v), by striking ``a community-based
nonprofit social service agency licensed or bonded by the
State'' in subclause (I) and inserting ``a certified
community-based nonprofit social service agency (as defined
in paragraph (9))'';
(B) in paragraph (3)(F), by striking ``community-based
nonprofit social service agencies'' and inserting ``certified
community-based nonprofit social service agencies (as defined
in paragraph (9))'';
(C) in paragraph (4)(B), by striking ``any community-based
nonprofit social service agency which is bonded or licensed
in each State in which it serves as a representative payee''
and inserting ``any certified community-based nonprofit
social service agency (as defined in paragraph (9))''; and
(D) by adding after paragraph (8) (as added by section
101(a)(2) of this Act) the following:
``(9) For purposes of this subsection, the term `certified
community-based nonprofit social service agency' means a
community-based nonprofit social service agency which is in
compliance with requirements, under regulations which shall
be prescribed by the Commissioner, for annual certification
to the Commissioner that it is bonded in accordance with
requirements specified by the Commissioner and that it is
licensed in each State in which it serves as a representative
payee (if licensing is available in the State) in accordance
with requirements specified by the Commissioner. Any such
annual certification shall include a copy of any independent
audit on the agency which may have been performed since the
previous certification.''.
(2) Title xvi amendments.--Section 1631(a)(2) of such Act
(42 U.S.C. 1383(a)(2)) is amended--
(A) in subparagraph (B)(vii), by striking ``a community-
based nonprofit social service agency licensed or bonded by
the State'' in subclause
[[Page H445]]
(I) and inserting ``a certified community-based nonprofit
social service agency (as defined in subparagraph (I))'';
(B) in subparagraph (D)(ii)--
(i) by striking ``or any community-based'' and all that
follows through ``in accordance'' in subclause (II) and
inserting ``or any certified community-based nonprofit social
service agency (as defined in subparagraph (I)), if the
agency, in accordance'';
(ii) by redesignating items (aa) and (bb) as subclauses (I)
and (II), respectively (and adjusting the margins
accordingly); and
(iii) by striking ``subclause (II)(bb)'' and inserting
``subclause (II)''; and
(C) by adding at the end the following:
``(I) For purposes of this paragraph, the term `certified
community-based nonprofit social service agency' means a
community-based nonprofit social service agency which is in
compliance with requirements, under regulations which shall
be prescribed by the Commissioner, for annual certification
to the Commissioner that it is bonded in accordance with
requirements specified by the Commissioner and that it is
licensed in each State in which it serves as a representative
payee (if licensing is available in the State) in accordance
with requirements specified by the Commissioner. Any such
annual certification shall include a copy of any independent
audit on the agency which may have been performed since the
previous certification.''.
(3) Effective date.--The amendments made by this subsection
shall take effect on the first day of the thirteenth month
beginning after the date of the enactment of this Act.
(b) Periodic Onsite Review.--
(1) Title ii amendment.--Section 205(j)(6) of such Act (42
U.S.C. 405(j)(6)) is amended to read as follows:
``(6)(A) In addition to such other reviews of
representative payees as the Commissioner of Social Security
may otherwise conduct, the Commissioner shall provide for the
periodic onsite review of any person or agency located in the
United States that receives the benefits payable under this
title (alone or in combination with benefits payable under
title VIII or title XVI) to another individual pursuant to
the appointment of such person or agency as a representative
payee under this subsection, section 807, or section
1631(a)(2) in any case in which--
``(i) the representative payee is a person who serves in
that capacity with respect to 15 or more such individuals;
``(ii) the representative payee is a certified community-
based nonprofit social service agency (as defined in
paragraph (9) of this subsection or section 1631(a)(2)(I));
or
``(iii) the representative payee is an agency (other than
an agency described in clause (ii)) that serves in that
capacity with respect to 50 or more such individuals.
``(B) Within 120 days after the end of each fiscal year,
the Commissioner shall submit to the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate a report on the results of periodic
onsite reviews conducted during the fiscal year pursuant to
subparagraph (A) and of any other reviews of representative
payees conducted during such fiscal year in connection with
benefits under this title. Each such report shall describe in
detail all problems identified in such reviews and any
corrective action taken or planned to be taken to correct
such problems, and shall include--
``(i) the number of such reviews;
``(ii) the results of such reviews;
``(iii) the number of cases in which the representative
payee was changed and why;
``(iv) the number of cases involving the exercise of
expedited, targeted oversight of the representative payee by
the Commissioner conducted upon receipt of an allegation of
misuse of funds, failure to pay a vendor, or a similar
irregularity;
``(v) the number of cases discovered in which there was a
misuse of funds;
``(vi) how any such cases of misuse of funds were dealt
with by the Commissioner;
``(vii) the final disposition of such cases of misuse of
funds, including any criminal penalties imposed; and
``(viii) such other information as the Commissioner deems
appropriate.''.
(2) Title viii amendment.--Section 807 of such Act (as
amended by section 101(b)(2) of this Act) is amended further
by adding at the end the following:
``(k) Periodic Onsite Review.--
``(1) In general.--In addition to such other reviews of
representative payees as the Commissioner of Social Security
may otherwise conduct, the Commissioner may provide for the
periodic onsite review of any person or agency that receives
the benefits payable under this title (alone or in
combination with benefits payable under title II or title
XVI) to another individual pursuant to the appointment of
such person or agency as a representative payee under this
section, section 205(j), or section 1631(a)(2) in any case in
which--
``(A) the representative payee is a person who serves in
that capacity with respect to 15 or more such individuals; or
``(B) the representative payee is an agency that serves in
that capacity with respect to 50 or more such individuals.
``(2) Report.--Within 120 days after the end of each fiscal
year, the Commissioner shall submit to the Committee on Ways
and Means of the House of Representatives and the Committee
on Finance of the Senate a report on the results of periodic
onsite reviews conducted during the fiscal year pursuant to
paragraph (1) and of any other reviews of representative
payees conducted during such fiscal year in connection with
benefits under this title. Each such report shall describe in
detail all problems identified in such reviews and any
corrective action taken or planned to be taken to correct
such problems, and shall include--
``(A) the number of such reviews;
``(B) the results of such reviews;
``(C) the number of cases in which the representative payee
was changed and why;
``(D) the number of cases involving the exercise of
expedited, targeted oversight of the representative payee by
the Commissioner conducted upon receipt of an allegation of
misuse of funds, failure to pay a vendor, or a similar
irregularity;
``(E) the number of cases discovered in which there was a
misuse of funds;
``(F) how any such cases of misuse of funds were dealt with
by the Commissioner;
``(G) the final disposition of such cases of misuse of
funds, including any criminal penalties imposed; and
``(H) such other information as the Commissioner deems
appropriate.''.
(3) Title xvi amendment.--Section 1631(a)(2)(G) of such Act
(42 U.S.C. 1383(a)(2)(G)) is amended to read as follows:
``(G)(i) In addition to such other reviews of
representative payees as the Commissioner of Social Security
may otherwise conduct, the Commissioner shall provide for the
periodic onsite review of any person or agency that receives
the benefits payable under this title (alone or in
combination with benefits payable under title II or title
VIII) to another individual pursuant to the appointment of
the person or agency as a representative payee under this
paragraph, section 205(j), or section 807 in any case in
which--
``(I) the representative payee is a person who serves in
that capacity with respect to 15 or more such individuals;
``(II) the representative payee is a certified community-
based nonprofit social service agency (as defined in
subparagraph (I) of this paragraph or section 205(j)(9)); or
``(III) the representative payee is an agency (other than
an agency described in subclause (II)) that serves in that
capacity with respect to 50 or more such individuals.
``(ii) Within 120 days after the end of each fiscal year,
the Commissioner shall submit to the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate a report on the results of periodic
onsite reviews conducted during the fiscal year pursuant to
clause (i) and of any other reviews of representative payees
conducted during such fiscal year in connection with benefits
under this title. Each such report shall describe in detail
all problems identified in the reviews and any corrective
action taken or planned to be taken to correct the problems,
and shall include--
``(I) the number of the reviews;
``(II) the results of such reviews;
``(III) the number of cases in which the representative
payee was changed and why;
``(IV) the number of cases involving the exercise of
expedited, targeted oversight of the representative payee by
the Commissioner conducted upon receipt of an allegation of
misuse of funds, failure to pay a vendor, or a similar
irregularity;
``(V) the number of cases discovered in which there was a
misuse of funds;
``(VI) how any such cases of misuse of funds were dealt
with by the Commissioner;
``(VII) the final disposition of such cases of misuse of
funds, including any criminal penalties imposed; and
``(VIII) such other information as the Commissioner deems
appropriate.''.
SEC. 103. DISQUALIFICATION FROM SERVICE AS REPRESENTATIVE
PAYEE OF PERSONS CONVICTED OF OFFENSES
RESULTING IN IMPRISONMENT FOR MORE THAN 1 YEAR
OR FLEEING PROSECUTION, CUSTODY, OR
CONFINEMENT.
(a) Title II Amendments.--Section 205(j)(2) of the Social
Security Act (42 U.S.C. 405(j)(2)) is amended--
(1) in subparagraph (B)(i)--
(A) by striking ``and'' at the end of subclause (III);
(B) by redesignating subclause (IV) as subclause (VI); and
(C) by inserting after subclause (III) the following:
``(IV) obtain information concerning whether such person
has been convicted of any other offense under Federal or
State law which resulted in imprisonment for more than 1
year,
``(V) obtain information concerning whether such person is
a person described in section 202(x)(1)(A)(iv), and'';
(2) in subparagraph (B), by adding at the end the
following:
``(iii) Notwithstanding the provisions of section 552a of
title 5, United States Code, or any other provision of
Federal or State law (other than section 6103 of the Internal
Revenue Code of 1986 and section 1106(c) of this Act), the
Commissioner shall furnish any Federal, State, or local law
enforcement officer, upon the written request of the officer,
with the current address, social security account number, and
photograph (if applicable) of any person investigated under
this paragraph, if the officer furnishes the Commissioner
with the name of such person and such other identifying
information as may reasonably be required by the Commissioner
to establish the unique identity of such person, and notifies
the Commissioner that--
``(I) such person is described in section 202(x)(1)(A)(iv),
``(II) such person has information that is necessary for
the officer to conduct the officer's official duties, and
``(III) the location or apprehension of such person is
within the officer's official duties.'';
(3) in subparagraph (C)(i)(II)--
(A) by striking ``subparagraph (B)(i)(IV),,'' and inserting
``subparagraph (B)(i)(VI)''; and
(B) by striking ``section 1631(a)(2)(B)(ii)(IV)'' and
inserting ``section 1631(a)(2)(B)(ii)(VI)''; and
[[Page H446]]
(4) in subparagraph (C)(i)--
(A) by striking ``or'' at the end of subclause (II);
(B) by striking the period at the end of subclause (III)
and inserting a comma; and
(C) by adding at the end the following:
``(IV) such person has previously been convicted as
described in subparagraph (B)(i)(IV), unless the Commissioner
determines that such certification would be appropriate
notwithstanding such conviction, or
``(V) such person is person described in section
202(x)(1)(A)(iv).''.
(b) Title VIII Amendments.--Section 807 of such Act (42
U.S.C. 1007) is amended--
(1) in subsection (b)(2)--
(A) by striking ``and'' at the end of subparagraph (C);
(B) by redesignating subparagraph (D) as subparagraph (F);
and
(C) by inserting after subparagraph (C) the following:
``(D) obtain information concerning whether such person has
been convicted of any other offense under Federal or State
law which resulted in imprisonment for more than 1 year;
``(E) obtain information concerning whether such person is
a person described in section 804(a)(2); and'';
(2) in subsection (b), by adding at the end the following:
``(3) Notwithstanding the provisions of section 552a of
title 5, United States Code, or any other provision of
Federal or State law (other than section 6103 of the Internal
Revenue Code of 1986 and section 1106(c) of this Act), the
Commissioner shall furnish any Federal, State, or local law
enforcement officer, upon the written request of the officer,
with the current address, social security account number, and
photograph (if applicable) of any person investigated under
this subsection, if the officer furnishes the Commissioner
with the name of such person and such other identifying
information as may reasonably be required by the Commissioner
to establish the unique identity of such person, and notifies
the Commissioner that--
``(A) such person is described in section 804(a)(2),
``(B) such person has information that is necessary for the
officer to conduct the officer's official duties, and
``(C) the location or apprehension of such person is within
the officer's official duties.''; and
(3) in subsection (d)(1)--
(A) by striking ``or'' at the end of subparagraph (B);
(B) by striking the period at the end of subparagraph (C)
and inserting a semicolon; and
(C) by adding at the end the following:
``(D) such person has previously been convicted as
described in subsection (b)(2)(D), unless the Commissioner
determines that such payment would be appropriate
notwithstanding such conviction; or
``(E) such person is a person described in section
804(a)(2).''.
(c) Title XVI Amendments.--Section 1631(a)(2)(B) of such
Act (42 U.S.C. 1383(a)(2)(B)) is amended--
(1) in clause (ii)--
(A) by striking ``and'' at the end of subclause (III);
(B) by redesignating subclause (IV) as subclause (VI); and
(C) by inserting after subclause (III) the following:
``(IV) obtain information concerning whether the person has
been convicted of any other offense under Federal or State
law which resulted in imprisonment for more than 1 year;
``(V) obtain information concerning whether such person is
a person described in section 1611(e)(4)(A); and'';
(2) in clause (iii)(II)--
(A) by striking ``clause (ii)(IV)'' and inserting ``clause
(ii)(VI)''; and
(B) by striking ``section 205(j)(2)(B)(i)(IV)'' and
inserting ``section 205(j)(2)(B)(i)(VI)'';
(3) in clause (iii)--
(A) by striking ``or'' at the end of subclause (II);
(B) by striking the period at the end of subclause (III)
and inserting a semicolon; and
(C) by adding at the end the following:
``(IV) the person has previously been convicted as
described in clause (ii)(IV) of this subparagraph, unless the
Commissioner determines that the payment would be appropriate
notwithstanding the conviction; or
``(V) such person is a person described in section
1611(e)(4)(A).''; and
(4) by adding at the end the following:
``(xiv) Notwithstanding the provisions of section 552a of
title 5, United States Code, or any other provision of
Federal or State law (other than section 6103 of the Internal
Revenue Code of 1986 and section 1106(c) of this Act), the
Commissioner shall furnish any Federal, State, or local law
enforcement officer, upon the written request of the officer,
with the current address, social security account number, and
photograph (if applicable) of any person investigated under
this subparagraph, if the officer furnishes the Commissioner
with the name of such person and such other identifying
information as may reasonably be required by the Commissioner
to establish the unique identity of such person, and notifies
the Commissioner that--
``(I) such person is described in section 1611(e)(4)(A),
``(II) such person has information that is necessary for
the officer to conduct the officer's official duties, and
``(III) the location or apprehension of such person is
within the officer's official duties.''.
(d) Effective Date.--The amendments made by this section
shall take effect on the first day of the thirteenth month
beginning after the date of the enactment of this Act.
(e) Report to Congress.--The Commissioner of Social
Security, in consultation with the Inspector General of the
Social Security Administration, shall prepare a report
evaluating whether the existing procedures and reviews for
the qualification (including disqualification) of
representative payees are sufficient to enable the
Commissioner to protect benefits from being misused by
representative payees. The Commissioner shall submit the
report to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate no
later than 270 days after the date of the enactment of this
Act. The Commissioner shall include in such report any
recommendations that the Commissioner considers appropriate.
SEC. 104. FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY
REPRESENTATIVE PAYEES.
(a) Title II Amendments.--Section 205(j)(4)(A)(i) of the
Social Security Act (42 U.S.C. 405(j)(4)(A)(i)) is amended--
(1) in the first sentence, by striking ``A'' and inserting
``Except as provided in the next sentence, a''; and
(2) in the second sentence, by striking ``The Secretary''
and inserting the following: ``A qualified organization may
not collect a fee from an individual for any month with
respect to which the Commissioner of Social Security or a
court of competent jurisdiction has determined that the
organization misused all or part of the individual's benefit,
and any amount so collected by the qualified organization for
such month shall be treated as a misused part of the
individual's benefit for purposes of paragraphs (5) and (6).
The Commissioner''.
(b) Title XVI Amendments.--Section 1631(a)(2)(D)(i) of such
Act (42 U.S.C. 1383(a)(2)(D)(i)) is amended--
(1) in the first sentence, by striking ``A'' and inserting
``Except as provided in the next sentence, a''; and
(2) in the second sentence, by striking ``The
Commissioner'' and inserting the following: ``A qualified
organization may not collect a fee from an individual for any
month with respect to which the Commissioner of Social
Security or a court of competent jurisdiction has determined
that the organization misused all or part of the individual's
benefit, and any amount so collected by the qualified
organization for such month shall be treated as a misused
part of the individual's benefit for purposes of
subparagraphs (E) and (F). The Commissioner''.
(c) Effective Date.--The amendments made by this section
shall apply to any month involving benefit misuse by a
representative payee in any case with respect to which the
Commissioner of Social Security or a court of competent
jurisdiction makes the determination of misuse after 180 days
after the date of the enactment of this Act.
SEC. 105. LIABILITY OF REPRESENTATIVE PAYEES FOR MISUSED
BENEFITS.
(a) Title II Amendments.--Section 205(j) of the Social
Security Act (42 U.S.C. 405(j)) (as amended by sections 101
and 102) is amended further--
(1) by redesignating paragraphs (7), (8), and (9) as
paragraphs (8), (9), and (10), respectively;
(2) in paragraphs (2)(C)(v), (3)(F), and (4)(B), by
striking ``paragraph (9)'' and inserting ``paragraph (10)'';
(3) in paragraph (6)(A)(ii), by striking ``paragraph (9)''
and inserting ``paragraph (10)''; and
(4) by inserting after paragraph (6) the following:
``(7)(A) If the Commissioner of Social Security or a court
of competent jurisdiction determines that a representative
payee that is not a Federal, State, or local government
agency has misused all or part of an individual's benefit
that was paid to such representative payee under this
subsection, the representative payee shall be liable for the
amount misused, and such amount (to the extent not repaid by
the representative payee) shall be treated as an overpayment
of benefits under this title to the representative payee for
all purposes of this Act and related laws pertaining to the
recovery of such overpayments. Subject to subparagraph (B),
upon recovering all or any part of such amount, the
Commissioner shall certify an amount equal to the recovered
amount for payment to such individual or such individual's
alternative representative payee.
``(B) The total of the amount certified for payment to such
individual or such individual's alternative representative
payee under subparagraph (A) and the amount certified for
payment under paragraph (5) may not exceed the total benefit
amount misused by the representative payee with respect to
such individual.''.
(b) Title VIII Amendment.--Section 807 of such Act (as
amended by section 102(b)(2)) is amended further by adding at
the end the following:
``(l) Liability for Misused Amounts.--
``(1) In general.--If the Commissioner of Social Security
or a court of competent jurisdiction determines that a
representative payee that is not a Federal, State, or local
government agency has misused all or part of a qualified
individual's benefit that was paid to such representative
payee under this section, the representative payee shall be
liable for the amount misused, and such amount (to the extent
not repaid by the representative payee) shall be treated as
an overpayment of benefits under this title to the
representative payee for all purposes of this Act and related
laws pertaining to the recovery of such overpayments. Subject
to paragraph (2), upon recovering all or any part of such
amount, the Commissioner shall make payment of an amount
equal to the recovered amount to such qualified individual or
such qualified individual's alternative representative payee.
``(2) Limitation.--The total of the amount paid to such
individual or such individual's alternative representative
payee under paragraph (1) and the amount paid under
subsection (i) may not exceed the total benefit amount
misused by the representative payee with respect to such
individual.''.
[[Page H447]]
(c) Title XVI Amendments.--Section 1631(a)(2) of such Act
(42 U.S.C. 1383(a)(2)) (as amended by section 102(b)(3)) is
amended further--
(1) in subparagraph (G)(i)(II), by striking ``section
205(j)(9)'' and inserting ``section 205(j)(10)''; and
(2) by striking subparagraph (H) and inserting the
following:
``(H)(i) If the Commissioner of Social Security or a court
of competent jurisdiction determines that a representative
payee that is not a Federal, State, or local government
agency has misused all or part of an individual's benefit
that was paid to the representative payee under this
paragraph, the representative payee shall be liable for the
amount misused, and the amount (to the extent not repaid by
the representative payee) shall be treated as an overpayment
of benefits under this title to the representative payee for
all purposes of this Act and related laws pertaining to the
recovery of the overpayments. Subject to clause (ii), upon
recovering all or any part of the amount, the Commissioner
shall make payment of an amount equal to the recovered amount
to such individual or such individual's alternative
representative payee.
``(ii) The total of the amount paid to such individual or
such individual's alternative representative payee under
clause (i) and the amount paid under subparagraph (E) may not
exceed the total benefit amount misused by the representative
payee with respect to such individual.''.
(d) Effective Date.--The amendments made by this section
shall apply to benefit misuse by a representative payee in
any case with respect to which the Commissioner of Social
Security or a court of competent jurisdiction makes the
determination of misuse after 180 days after the date of the
enactment of this Act.
SEC. 106. AUTHORITY TO REDIRECT DELIVERY OF BENEFIT PAYMENTS
WHEN A REPRESENTATIVE PAYEE FAILS TO PROVIDE
REQUIRED ACCOUNTING.
(a) Title II Amendments.--Section 205(j)(3) of the Social
Security Act (42 U.S.C. 405(j)(3)) (as amended by sections
102(a)(1)(B) and 105(a)(2)) is amended--
(1) by redesignating subparagraphs (E) and (F) as
subparagraphs (F) and (G), respectively; and
(2) by inserting after subparagraph (D) the following:
``(E) In any case in which the person described in
subparagraph (A) or (D) receiving payments on behalf of
another fails to submit a report required by the Commissioner
of Social Security under subparagraph (A) or (D), the
Commissioner may, after furnishing notice to such person and
the individual entitled to such payment, require that such
person appear in person at a field office of the Social
Security Administration serving the area in which the
individual resides in order to receive such payments.''.
(b) Title VIII Amendments.--Section 807(h) of such Act (42
U.S.C. 1007(h)) is amended--
(1) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) Authority to redirect delivery of benefit payments
when a representative payee fails to provide required
accounting.--In any case in which the person described in
paragraph (1) or (2) receiving benefit payments on behalf of
a qualified individual fails to submit a report required by
the Commissioner of Social Security under paragraph (1) or
(2), the Commissioner may, after furnishing notice to such
person and the qualified individual, require that such person
appear in person at a United States Government facility
designated by the Social Security Administration as serving
the area in which the qualified individual resides in order
to receive such benefit payments.''.
(c) Title XVI Amendment.--Section 1631(a)(2)(C) of such Act
(42 U.S.C. 1383(a)(2)(C)) is amended by adding at the end the
following:
``(v) In any case in which the person described in clause
(i) or (iv) receiving payments on behalf of another fails to
submit a report required by the Commissioner of Social
Security under clause (i) or (iv), the Commissioner may,
after furnishing notice to the person and the individual
entitled to the payment, require that such person appear in
person at a field office of the Social Security
Administration serving the area in which the individual
resides in order to receive such payments.''.
(d) Effective Date.--The amendments made by this section
shall take effect 180 days after the date of the enactment of
this Act.
SEC. 107. SURVEY OF USE OF PAYMENTS BY REPRESENTATIVE PAYEES.
(a) In General.--Section 1110 of the Social Security Act
(42 U.S.C. 1310) is amended by adding at the end the
following:
``(c)(1) In addition to the amount otherwise appropriated
in any other law to carry out subsection (a) for fiscal year
2004, up to $8,500,000 is authorized and appropriated and
shall be used by the Commissioner of Social Security under
this subsection for purposes of conducting a statistically
valid survey to determine how payments made to individuals,
organizations, and State or local government agencies that
are representative payees for benefits paid under title II or
XVI are being managed and used on behalf of the beneficiaries
for whom such benefits are paid.
``(2) Not later than 18 months after the date of enactment
of this subsection, the Commissioner of Social Security shall
submit a report on the survey conducted in accordance with
paragraph (1) to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate.''.
Subtitle B--Enforcement
SEC. 111. CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO
WRONGFUL CONVERSIONS BY REPRESENTATIVE PAYEES.
(a) In General.--Section 1129(a) of the Social Security Act
(42 U.S.C. 1320a-8) is amended by adding at the end the
following:
``(3) Any person (including an organization, agency, or
other entity) who, having received, while acting in the
capacity of a representative payee pursuant to section
205(j), 807, or 1631(a)(2), a payment under title II, VIII,
or XVI for the use and benefit of another individual,
converts such payment, or any part thereof, to a use that
such person knows or should know is other than for the use
and benefit of such other individual shall be subject to, in
addition to any other penalties that may be prescribed by
law, a civil money penalty of not more than $5,000 for each
such conversion. Such person shall also be subject to an
assessment, in lieu of damages sustained by the United States
resulting from the conversion, of not more than twice the
amount of any payments so converted.''.
(b) Effective Date.--The amendment made by this section
shall apply with respect to violations committed after the
date of the enactment of this Act.
TITLE II--PROGRAM PROTECTIONS
SEC. 201. CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO
WITHHOLDING OF MATERIAL FACTS.
(a) Treatment of Withholding of Material Facts.--
(1) Civil penalties.--Section 1129(a)(1) of the Social
Security Act (42 U.S.C. 1320a-8(a)(1)) is amended--
(A) by striking ``who'' in the first sentence and inserting
``who--'';
(B) by striking ``makes'' in the first sentence and all
that follows through ``shall be subject to,'' and inserting
the following:
``(A) makes, or causes to be made, a statement or
representation of a material fact, for use in determining any
initial or continuing right to or the amount of monthly
insurance benefits under title II or benefits or payments
under title VIII or XVI, that the person knows or should know
is false or misleading,
``(B) makes such a statement or representation for such use
with knowing disregard for the truth, or
``(C) omits from a statement or representation for such
use, or otherwise withholds disclosure of, a fact which the
person knows or should know is material to the determination
of any initial or continuing right to or the amount of
monthly insurance benefits under title II or benefits or
payments under title VIII or XVI, if the person knows, or
should know, that the statement or representation with such
omission is false or misleading or that the withholding of
such disclosure is misleading,
shall be subject to,'';
(C) by inserting ``or each receipt of such benefits or
payments while withholding disclosure of such fact'' after
``each such statement or representation'' in the first
sentence;
(D) by inserting ``or because of such withholding of
disclosure of a material fact'' after ``because of such
statement or representation'' in the second sentence; and
(E) by inserting ``or such a withholding of disclosure''
after ``such a statement or representation'' in the second
sentence.
(2) Administrative procedure for imposing penalties.--
Section 1129A(a) of such Act (42 U.S.C. 1320a-8a(a)) is
amended--
(A) by striking ``who'' the first place it appears and
inserting ``who--''; and
(B) by striking ``makes'' and all that follows through
``shall be subject to,'' and inserting the following:
``(1) makes, or causes to be made, a statement or
representation of a material fact, for use in determining any
initial or continuing right to or the amount of monthly
insurance benefits under title II or benefits or payments
under title XVI that the person knows or should know is false
or misleading,
``(2) makes such a statement or representation for such use
with knowing disregard for the truth, or
``(3) omits from a statement or representation for such
use, or otherwise withholds disclosure of, a fact which the
person knows or should know is material to the determination
of any initial or continuing right to or the amount of
monthly insurance benefits under title II or benefits or
payments under title XVI, if the person knows, or should
know, that the statement or representation with such omission
is false or misleading or that the withholding of such
disclosure is misleading,
shall be subject to,''.
(b) Clarification of Treatment of Recovered Amounts.--
Section 1129(e)(2)(B) of such Act (42 U.S.C. 1320a-
8(e)(2)(B)) is amended by striking ``In the case of amounts
recovered arising out of a determination relating to title
VIII or XVI,'' and inserting ``In the case of any other
amounts recovered under this section,''.
(c) Conforming Amendments.--
(1) Section 1129(b)(3)(A) of such Act (42 U.S.C. 1320a-
8(b)(3)(A)) is amended by striking ``charging fraud or false
statements''.
(2) Section 1129(c)(1) of such Act (42 U.S.C. 1320a-
8(c)(1)) is amended by striking ``and representations'' and
inserting ``, representations, or actions''.
(3) Section 1129(e)(1)(A) of such Act (42 U.S.C. 1320a-
8(e)(1)(A)) is amended by striking ``statement or
representation referred to in subsection (a) was made'' and
inserting ``violation occurred''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to violations committed after the
date on which the Commissioner of Social Security implements
the centralized computer file described in section 202.
[[Page H448]]
SEC. 202. ISSUANCE BY COMMISSIONER OF SOCIAL SECURITY OF
RECEIPTS TO ACKNOWLEDGE SUBMISSION OF REPORTS
OF CHANGES IN WORK OR EARNINGS STATUS OF
DISABLED BENEFICIARIES.
Effective as soon as possible, but not later than 1 year
after the date of the enactment of this Act, until such time
as the Commissioner of Social Security implements a
centralized computer file recording the date of the
submission of information by a disabled beneficiary (or
representative) regarding a change in the beneficiary's work
or earnings status, the Commissioner shall issue a receipt to
the disabled beneficiary (or representative) each time he or
she submits documentation, or otherwise reports to the
Commissioner, on a change in such status.
SEC. 203. DENIAL OF TITLE II BENEFITS TO PERSONS FLEEING
PROSECUTION, CUSTODY, OR CONFINEMENT, AND TO
PERSONS VIOLATING PROBATION OR PAROLE.
(a) In General.--Section 202(x) of the Social Security Act
(42 U.S.C. 402(x)) is amended--
(1) in the heading, by striking ``Prisoners'' and all that
follows and inserting the following: ``Prisoners, Certain
Other Inmates of Publicly Funded Institutions, Fugitives,
Probationers, and Parolees'';
(2) in paragraph (1)(A)(ii)(IV), by striking ``or'' at the
end;
(3) in paragraph (1)(A)(iii), by striking the period at the
end and inserting a comma;
(4) by inserting after paragraph (1)(A)(iii) the following:
``(iv) is fleeing to avoid prosecution, or custody or
confinement after conviction, under the laws of the place
from which the person flees, for a crime, or an attempt to
commit a crime, which is a felony under the laws of the place
from which the person flees, or, in jurisdictions that do not
define crimes as felonies, is punishable by death or
imprisonment for a term exceeding 1 year regardless of the
actual sentence imposed, or
``(v) is violating a condition of probation or parole
imposed under Federal or State law.'';
(5) by adding at the end of paragraph (1)(B) the following:
``(iii) Notwithstanding subparagraph (A), the Commissioner
shall, for good cause shown, pay the individual benefits that
have been withheld or would otherwise be withheld pursuant to
clause (iv) or (v) of subparagraph (A) if the Commissioner
determines that--
``(I) a court of competent jurisdiction has found the
individual not guilty of the criminal offense, dismissed the
charges relating to the criminal offense, vacated the warrant
for arrest of the individual for the criminal offense, or
issued any similar exonerating order (or taken similar
exonerating action), or
``(II) the individual was erroneously implicated in
connection with the criminal offense by reason of identity
fraud.
``(iv) Notwithstanding subparagraph (A), the Commissioner
may, for good cause shown based on mitigating circumstances,
pay the individual benefits that have been withheld or would
otherwise be withheld pursuant to clause (iv) or (v) of
subparagraph (A) if the Commissioner determines that--
``(I) the offense described in clause (iv) or underlying
the imposition of the probation or parole described in clause
(v) was nonviolent and not drug-related, and
``(II) in the case of an individual from whom benefits have
been withheld or otherwise would be withheld pursuant to
subparagraph (A)(v), the action that resulted in the
violation of a condition of probation or parole was
nonviolent and not drug-related.''; and
(6) in paragraph (3), by adding at the end the following:
``(C) Notwithstanding the provisions of section 552a of
title 5, United States Code, or any other provision of
Federal or State law (other than section 6103 of the Internal
Revenue Code of 1986 and section 1106(c) of this Act), the
Commissioner shall furnish any Federal, State, or local law
enforcement officer, upon the written request of the officer,
with the current address, Social Security number, and
photograph (if applicable) of any beneficiary under this
title, if the officer furnishes the Commissioner with the
name of the beneficiary, and other identifying information as
reasonably required by the Commissioner to establish the
unique identity of the beneficiary, and notifies the
Commissioner that--
``(i) the beneficiary is described in clause (iv) or (v) of
paragraph (1)(A); and
``(ii) the location or apprehension of the beneficiary is
within the officer's official duties.''.
(b) Conforming Amendments to Title XVI.--Section 1611(e) of
the Social Security Act (42 U.S.C. 1382(e)) is amended--
(1) in paragraph (4)--
(A) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively;
(B) by inserting ``(A)'' after ``(4)'';
(C) in clause (i) of subparagraph (A) (as redesignated by
subparagraph (A)), by striking ``or which, in the case of the
State of
New Jersey, is a high misdemeanor under the laws of such
State'' and inserting ``or, in jurisdictions that do not
define crimes as felonies, is punishable by death or
imprisonment for a term exceeding 1 year regardless of the
actual sentence imposed''; and
(D) by adding at the end the following:
``(B) Notwithstanding subparagraph (A), the Commissioner
shall, for good cause shown, treat the person referred to in
subparagraph (A) as an eligible individual or eligible spouse
if the Commissioner determines that--
``(i) a court of competent jurisdiction has found the
person not guilty of the criminal offense, dismissed the
charges relating to the criminal offense, vacated the warrant
for arrest of the person for the criminal offense, or issued
any similar exonerating order (or taken similar exonerating
action), or
``(ii) the person was erroneously implicated in connection
with the criminal offense by reason of identity fraud.
``(C) Notwithstanding subparagraph (A), the Commissioner
may, for good cause shown based on mitigating circumstances,
treat the person referred to in subparagraph (A) as an
eligible individual or eligible spouse if the Commissioner
determines that--
``(i) the offense described in subparagraph (A)(i) or
underlying the imposition of the probation or parole
described in subparagraph (A)(ii) was nonviolent and not
drug-related, and
``(ii) in the case of a person who is not considered an
eligible individual or eligible spouse pursuant to
subparagraph (A)(ii), the action that resulted in the
violation of a condition of probation or parole was
nonviolent and not drug-related.''; and
(2) in paragraph (5), by striking subparagraphs (A) and (B)
and inserting the following:
``(A) the recipient is described in clause (i) or (ii) of
paragraph (4)(A); and
``(B) the location or apprehension of the recipient is
within the officer's official duties.''.
(c) Conforming Amendment.--Section 804(a)(2) of the Social
Security Act (42 U.S.C. 1004(a)(2)) is amended by striking
``or which, in the case of the State of New Jersey, is a high
misdemeanor under the laws of such State'' and inserting
``or, in jurisdictions that do not define crimes as felonies,
is punishable by death or imprisonment for a term exceeding 1
year regardless of the actual sentence imposed''.
(d) Effective Date.--The amendments made by this section
shall take effect on the first day of the first month that
begins on or after the date that is 9 months after the date
of enactment of this Act.
SEC. 204. REQUIREMENTS RELATING TO OFFERS TO PROVIDE FOR A
FEE, A PRODUCT OR SERVICE AVAILABLE WITHOUT
CHARGE FROM THE SOCIAL SECURITY ADMINISTRATION.
(a) In General.--Section 1140 of the Social Security Act
(42 U.S.C. 1320b-10) is amended--
(1) in subsection (a), by adding at the end the following:
``(4)(A) No person shall offer, for a fee, to assist an
individual to obtain a product or service that the person
knows or should know is provided free of charge by the Social
Security Administration unless, at the time the offer is
made, the person provides to the individual to whom the offer
is tendered a notice that--
``(i) explains that the product or service is available
free of charge from the Social Security Administration, and
``(ii) complies with standards prescribed by the
Commissioner of Social Security respecting the content of
such notice and its placement, visibility, and legibility.
``(B) Subparagraph (A) shall not apply to any offer--
``(i) to serve as a claimant representative in connection
with a claim arising under title II, title VIII, or title
XVI; or
``(ii) to prepare, or assist in the preparation of, an
individual's plan for achieving self-support under title
XVI.''; and
(2) in the heading, by striking ``prohibition of misuse of
symbols, emblems, or names in reference'' and inserting
``prohibitions relating to references''.
(b) Effective Date.--The amendments made by this section
shall apply to offers of assistance made after the sixth
month ending after the Commissioner of Social Security
promulgates final regulations prescribing the standards
applicable to the notice required to be provided in
connection with such offer. The Commissioner shall promulgate
such final regulations within 1 year after the date of the
enactment of this Act.
SEC. 205. REFUSAL TO RECOGNIZE CERTAIN INDIVIDUALS AS
CLAIMANT REPRESENTATIVES.
Section 206(a)(1) of the Social Security Act (42 U.S.C.
406(a)(1)) is amended by inserting after the second sentence
the following: ``Notwithstanding the preceding sentences, the
Commissioner, after due notice and opportunity for hearing,
(A) may refuse to recognize as a representative, and may
disqualify a representative already recognized, any attorney
who has been disbarred or suspended from any court or bar to
which he or she was previously admitted to practice or who
has been disqualified from participating in or appearing
before any Federal program or agency, and (B) may refuse to
recognize, and may disqualify, as a non-attorney
representative any attorney who has been disbarred or
suspended from any court or bar to which he or she was
previously admitted to practice. A representative who has
been disqualified or suspended pursuant to this section from
appearing before the Social Security Administration as a
result of collecting or receiving a fee in excess of the
amount authorized shall be barred from appearing before the
Social Security Administration as a representative until full
restitution is made to the claimant and, thereafter, may be
considered for reinstatement only under such rules as the
Commissioner may prescribe.''.
SEC. 206. CRIMINAL PENALTY FOR CORRUPT OR FORCIBLE
INTERFERENCE WITH ADMINISTRATION OF SOCIAL
SECURITY ACT.
Part A of title XI of the Social Security Act (42 U.S.C.
1301 et seq.) is amended by inserting after section 1129A the
following:
``ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF SOCIAL SECURITY ACT
``Sec. 1129B. Whoever corruptly or by force or threats of
force (including any threatening letter or communication)
attempts to intimidate or impede any officer, employee, or
contractor of the Social Security Administration (including
[[Page H449]]
any State employee of a disability determination service or
any other individual designated by the Commissioner of Social
Security) acting in an official capacity to carry out a duty
under this Act, or in any other way corruptly or by force or
threats of force (including any threatening letter or
communication) obstructs or impedes, or attempts to obstruct
or impede, the due administration of this Act, shall be fined
not more than $5,000, imprisoned not more than 3 years, or
both, except that if the offense is committed only by threats
of force, the person shall be fined not more than $3,000,
imprisoned not more than 1 year, or both. In this subsection,
the term `threats of force' means threats of harm to the
officer or employee of the United States or to a contractor
of the Social Security Administration, or to a member of the
family of such an officer or employee or contractor.''.
SEC. 207. USE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE TO
SOCIAL SECURITY OR MEDICARE.
(a) In General.--Section 1140(a)(1) of the Social Security
Act (42 U.S.C. 1320b-10(a)(1)) is amended--
(1) in subparagraph (A), by inserting `` `Centers for
Medicare & Medicaid Services','' after `` `Health Care
Financing Administration','', by striking ``or `Medicaid', ''
and inserting `` `Medicaid', `Death Benefits Update',
`Federal Benefit Information', `Funeral Expenses', or `Final
Supplemental Plan','' and by inserting `` `CMS','' after ``
`HCFA','';
(2) in subparagraph (B), by inserting ``Centers for
Medicare & Medicaid Services,'' after ``Health Care Financing
Administration,'' each place it appears; and
(3) in the matter following subparagraph (B), by striking
``the Health Care Financing Administration,'' each place it
appears and inserting ``the Centers for Medicare & Medicaid
Services,''.
(b) Effective Date.--The amendments made by this section
shall apply to items sent after 180 days after the date of
the enactment of this Act.
SEC. 208. DISQUALIFICATION FROM PAYMENT DURING TRIAL WORK
PERIOD UPON CONVICTION OF FRAUDULENT
CONCEALMENT OF WORK ACTIVITY.
(a) In General.--Section 222(c) of the Social Security Act
(42 U.S.C. 422(c)) is amended by adding at the end the
following:
``(5) Upon conviction by a Federal court that an individual
has fraudulently concealed work activity during a period of
trial work from the Commissioner of Social Security by--
``(A) providing false information to the Commissioner of
Social Security as to whether the individual had earnings in
or for a particular period, or as to the amount thereof;
``(B) receiving disability insurance benefits under this
title while engaging in work activity under another identity,
including under another social security account number or a
number purporting to be a social security account number; or
``(C) taking other actions to conceal work activity with an
intent fraudulently to secure payment in a greater amount
than is due or when no payment is authorized,
no benefit shall be payable to such individual under this
title with respect to a period of disability for any month
before such conviction during which the individual rendered
services during the period of trial work with respect to
which the fraudulently concealed work activity occurred, and
amounts otherwise due under this title as restitution,
penalties, assessments, fines, or other repayments shall in
all cases be in addition to any amounts for which such
individual is liable as overpayments by reason of such
concealment.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to work activity performed after the
date of the enactment of this Act.
SEC. 209. AUTHORITY FOR JUDICIAL ORDERS OF RESTITUTION.
(a) Amendments to Title II.--Section 208 of the Social
Security Act (42 U.S.C. 408) is amended--
(1) by redesignating subsections (b), (c), and (d) as
subsections (c), (d), and (e), respectively;
(2) by inserting after subsection (a) the following:
``(b)(1) Any Federal court, when sentencing a defendant
convicted of an offense under subsection (a), may order, in
addition to or in lieu of any other penalty authorized by
law, that the defendant make restitution to the victims of
such offense specified in paragraph (4).
``(2) Sections 3612, 3663, and 3664 of title 18, United
States Code, shall apply with respect to the issuance and
enforcement of orders of restitution to victims of such
offense under this subsection.
``(3) If the court does not order restitution, or orders
only partial restitution, under this subsection, the court
shall state on the record the reasons therefor.
``(4) For purposes of paragraphs (1) and (2), the victims
of an offense under subsection (a) are the following:
``(A) Any individual who suffers a financial loss as a
result of the defendant's violation of subsection (a).
``(B) The Commissioner of Social Security, to the extent
that the defendant's violation of subsection (a) results in--
``(i) the Commissioner of Social Security making a benefit
payment that should not have been made; or
``(ii) an individual suffering a financial loss due to the
defendant's violation of subsection (a) in his or her
capacity as the individual's representative payee appointed
pursuant to section 205(j).
``(5)(A) Except as provided in subparagraph (B), funds paid
to the Commissioner of Social Security as restitution
pursuant to a court order shall be deposited in the Federal
Old-Age and Survivors Insurance Trust Fund, or the Federal
Disability Insurance Trust Fund, as appropriate.
``(B) In the case of funds paid to the Commissioner of
Social Security pursuant to paragraph (4)(B)(ii), the
Commissioner of Social Security shall certify for payment to
the individual described in such paragraph an amount equal to
the lesser of the amount of the funds so paid or the
individual's outstanding financial loss, except that such
amount may be reduced by the amount of any overpayments of
benefits owed under this title, title VIII, or title XVI by
the individual.''; and
(3) by amending subsection (c) (as redesignated by
paragraph (1)), by striking the second sentence.
(b) Amendments to Title VIII.--Section 811 of the Social
Security Act (42 U.S.C. 1011) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Court Order for Restitution.--
``(1) In general.--Any Federal court, when sentencing a
defendant convicted of an offense under subsection (a), may
order, in addition to or in lieu of any other penalty
authorized by law, that the defendant make restitution to the
Commissioner of Social Security, in any case in which such
offense results in--
``(A) the Commissioner of Social Security making a benefit
payment that should not have been made, or
``(B) an individual suffering a financial loss due to the
defendant's violation of subsection (a) in his or her
capacity as the individual's representative payee appointed
pursuant to section 807(i).
``(2) Related provisions.--Sections 3612, 3663, and 3664 of
title 18, United States Code, shall apply with respect to the
issuance and enforcement of orders of restitution under this
subsection. In so applying such sections, the Commissioner of
Social Security shall be considered the victim.
``(3) Stated reasons for not ordering restitution.--If the
court does not order restitution, or orders only partial
restitution, under this subsection, the court shall state on
the record the reasons therefor.
``(4) Receipt of restitution payments.--
``(A) In general.--Except as provided in subparagraph (B),
funds paid to the Commissioner of Social Security as
restitution pursuant to a court order shall be deposited as
miscellaneous receipts in the general fund of the Treasury.
``(B) Payment to the individual.--In the case of funds paid
to the Commissioner of Social Security pursuant to paragraph
(1)(B), the Commissioner of Social Security shall certify for
payment to the individual described in such paragraph an
amount equal to the lesser of the amount of the funds so paid
or the individual's outstanding financial loss as described
in such paragraph, except that such amount may be reduced by
any overpayment of benefits owed under this title, title II,
or title XVI by the individual.''.
(c) Amendments to Title XVI.--Section 1632 of the Social
Security Act (42 U.S.C. 1383a) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b)(1) Any Federal court, when sentencing a defendant
convicted of an offense under subsection (a), may order, in
addition to or in lieu of any other penalty authorized by
law, that the defendant make restitution to the Commissioner
of Social Security, in any case in which such offense results
in--
``(A) the Commissioner of Social Security making a benefit
payment that should not have been made, or
``(B) an individual suffering a financial loss due to the
defendant's violation of subsection (a) in his or her
capacity as the individual's representative payee appointed
pursuant to section 1631(a)(2).
``(2) Sections 3612, 3663, and 3664 of title 18, United
States Code, shall apply with respect to the issuance and
enforcement of orders of restitution under this subsection.
In so applying such sections, the Commissioner of Social
Security shall be considered the victim.
``(3) If the court does not order restitution, or orders
only partial restitution, under this subsection, the court
shall state on the record the reasons therefor.
``(4)(A) Except as provided in subparagraph (B), funds paid
to the Commissioner of Social Security as restitution
pursuant to a court order shall be deposited as miscellaneous
receipts in the general fund of the Treasury.
``(B) In the case of funds paid to the Commissioner of
Social Security pursuant to paragraph (1)(B), the
Commissioner of Social Security shall certify for payment to
the individual described in such paragraph an amount equal to
the lesser of the amount of the funds so paid or the
individual's outstanding financial loss as described in such
paragraph, except that such amount may be reduced by any
overpayment of benefits owed under this title, title II, or
title VIII by the individual.''; and
(3) by amending subsection (c) (as redesignated by
paragraph (1)) by striking ``(1) If a person'' and all that
follows through ``(2)''.
(d) Effective Date.--The amendments made by subsections
(a), (b), and (c) shall apply with respect to violations
occurring on or after the date of enactment of this Act.
SEC. 210. AUTHORITY FOR CROSS-PROGRAM RECOVERY OF BENEFIT
OVERPAYMENTS.
(a) In General.--Section 1147 of the Social Security Act
(42 U.S.C. 1320b-17) is amended to read as follows:
[[Page H450]]
``cross-program recovery of overpayments from benefits
``(a) In General.--Subject to subsection (b), whenever the
Commissioner of Social Security determines that more than the
correct amount of any payment has been made to a person under
a program described in subsection (e), the Commissioner of
Social Security may recover the amount incorrectly paid by
decreasing any amount which is payable to such person under
any other program specified in that subsection.
``(b) Limitation Applicable to Current Benefits.--
``(1) In general.--In carrying out subsection (a), the
Commissioner of Social Security may not decrease the monthly
amount payable to an individual under a program described in
subsection (e) that is paid when regularly due--
``(A) in the case of benefits under title II or VIII, by
more than 10 percent of the amount of the benefit payable to
the person for that month under such title; and
``(B) in the case of benefits under title XVI, by an amount
greater than the lesser of--
``(i) the amount of the benefit payable to the person for
that month; or
``(ii) an amount equal to 10 percent of the person's income
for that month (including such monthly benefit but excluding
payments under title II when recovery is also made from title
II payments and excluding income excluded pursuant to section
1612(b)).
``(2) Exception.--Paragraph (1) shall not apply if--
``(A) the person or the spouse of the person was involved
in willful misrepresentation or concealment of material
information in connection with the amount incorrectly paid;
or
``(B) the person so requests.
``(c) No Effect on Eligibility or Benefit Amount Under
Title VIII or XVI.--In any case in which the Commissioner of
Social Security takes action in accordance with subsection
(a) to recover an amount incorrectly paid to any person,
neither that person, nor (with respect to the program
described in subsection (e)(3)) any individual whose
eligibility for benefits under such program or whose amount
of such benefits, is determined by considering any part of
that person's income, shall, as a result of such action--
``(1) become eligible for benefits under the program
described in paragraph (2) or (3) of subsection (e); or
``(2) if such person or individual is otherwise so
eligible, become eligible for increased benefits under such
program.
``(d) Inapplicability of Prohibition Against Assessment and
Legal Process.--Section 207 shall not apply to actions taken
under the provisions of this section to decrease amounts
payable under titles II and XVI.
``(e) Programs Described.--The programs described in this
subsection are the following:
``(1) The old-age, survivors, and disability insurance
benefits program under title II.
``(2) The special benefits for certain World War II
veterans program under title VIII.
``(3) The supplemental security income benefits program
under title XVI (including, for purposes of this section,
State supplementary payments paid by the Commissioner
pursuant to an agreement under section 1616(a) of this Act or
section 212(b) of Public Law 93-66).''.
(b) Conforming Amendments.--
(1) Section 204(g) of the Social Security Act (42 U.S.C.
404(g)) is amended to read as follows:
``(g) For provisions relating to the cross-program recovery
of overpayments made under programs administered by the
Commissioner of Social Security, see section 1147.''.
(2) Section 808 of the Social Security Act (42 U.S.C. 1008)
is amended--
(A) in subsection (a)(1)--
(i) by striking subparagraph (B);
(ii) in the matter preceding subparagraph (A), by striking
``any payment'' and all that follows through ``under this
title'' and inserting ``any payment under this title''; and
(iii) by striking ``; or'' and inserting a period;
(B) by striking subsection (b) and redesignating
subsections (c), (d), and (e) as subsections (b), (c), and
(d), respectively; and
(C) by adding at the end the following:
``(e) Cross-Program Recovery of Overpayments.--For
provisions relating to the cross-program recovery of
overpayments made under programs administered by the
Commissioner of Social Security, see section 1147.''.
(3) Section 1147A of the Social Security Act (42 U.S.C.
1320b-18) is repealed.
(4) Section 1631(b) of the Social Security Act (42 U.S.C.
1383(b)) is amended--
(A) in paragraph (1)(B)--
(i) by striking ``excluding any other'' and inserting
``excluding payments under title II when recovery is made
from title II payments pursuant to section 1147 and
excluding''; and
(ii) by striking ``50 percent of''; and
(B) by striking paragraph (6) and inserting the following:
``(6) For provisions relating to the cross-program recovery
of overpayments made under programs administered by the
Commissioner of Social Security, see section 1147.''.
(c) Effective Date.--The amendments and repeal made by this
section shall take effect on the date of enactment of this
Act, and shall be effective with respect to overpayments
under titles II, VIII, and XVI of the Social Security Act
that are outstanding on or after such date.
SEC. 211. PROHIBITION ON PAYMENT OF TITLE II BENEFITS TO
PERSONS NOT AUTHORIZED TO WORK IN THE UNITED
STATES.
(a) Fully Insured and Currently Insured Individuals.--
Section 214 (42 U.S.C. 414) is amended--
(1) in subsection (a), by inserting before the period at
the end the following: ``, and who satisfies the criterion
specified in subsection (c)'';
(2) in subsection (b), by inserting before the period at
the end the following: ``, and who satisfies the criterion
specified in subsection (c)''; and
(3) by adding at the end the following:
``(c) For purposes of subsections (a) and (b), the
criterion specified in this subsection is that the
individual, if not a United States citizen or national--
``(1) has been assigned a social security account number
that was, at the time of assignment, or at any later time,
consistent with the requirements of subclause (I) or (III) of
section 205(c)(2)(B)(i); or
``(2) at the time any such quarters of coverage are
earned--
``(A) is described in subparagraph (B) or (D) of section
101(a)(15) of the Immigration and Nationality Act,
``(B) is lawfully admitted temporarily to the United States
for business (in the case of an individual described in such
subparagraph (B)) or the performance as a crewman (in the
case of an individual described in such subparagraph (D)),
and
``(C) the business engaged in or service as a crewman
performed is within the scope of the terms of such
individual's admission to the United States.''.
(b) Disability Benefits.--Section 223(a)(1) of the Social
Security Act (42 U.S.C. 423(a)(1)) is amended--
(1) by redesignating subparagraphs (C) and (D) as
subparagraphs (D) and (E), respectively; and
(2) by inserting after subparagraph (B), the following:
``(C) if not a United States citizen or national--
``(i) has been assigned a social security account number
that was, at the time of assignment, or at any later time,
consistent with the requirements of subclause (I) or (III) of
section 205(c)(2)(B)(i); or
``(ii) at the time any quarters of coverage are earned--
``(I) is described in subparagraph (B) or (D) of section
101(a)(15) of the Immigration and Nationality Act,
``(II) is lawfully admitted temporarily to the United
States for business (in the case of an individual described
in such subparagraph (B)) or the performance as a crewman (in
the case of an individual described in such subparagraph
(D)), and
``(III) the business engaged in or service as a crewman
performed is within the scope of the terms of such
individual's admission to the United States.''.
(c) Effective Date.--The amendments made by this section
apply to benefit applications based on social security
account numbers issued on or after January 1, 2004.
TITLE III--ATTORNEY REPRESENTATIVE FEE PAYMENT SYSTEM IMPROVEMENTS
SEC. 301. CAP ON ATTORNEY ASSESSMENTS.
(a) In General.--Section 206(d)(2)(A) of the Social
Security Act (42 U.S.C. 406(d)(2)(A)) is amended--
(1) by inserting ``, except that the maximum amount of the
assessment may not exceed the greater of $75 or the adjusted
amount as provided pursuant to the following two sentences''
after ``subparagraph (B)''; and
(2) by adding at the end the following: ``In the case of
any calendar year beginning after the amendments made by
section 301 of the Social Security Protection Act of 2003
take effect, the dollar amount specified in the preceding
sentence (including a previously adjusted amount) shall be
adjusted annually under the procedures used to adjust benefit
amounts under section 215(i)(2)(A)(ii), except such
adjustment shall be based on the higher of $75 or the
previously adjusted amount that would have been in effect for
December of the preceding year, but for the rounding of such
amount pursuant to the following sentence. Any amount so
adjusted that is not a multiple of $1 shall be rounded to the
next lowest multiple of $1, but in no case less than $75.''.
(b) Effective Date.--The amendments made by this section
shall apply with respect to fees for representation of
claimants which are first required to be certified or paid
under section 206 of the Social Security Act on or after the
first day of the first month that begins after 180 days after
the date of the enactment of this Act.
SEC. 302. TEMPORARY EXTENSION OF ATTORNEY FEE PAYMENT SYSTEM
TO TITLE XVI CLAIMS.
(a) In General.--Section 1631(d)(2) of the Social Security
Act (42 U.S.C. 1383(d)(2)) is amended--
(1) in subparagraph (A), in the matter preceding clause
(i)--
(A) by striking ``section 206(a)'' and inserting ``section
206'';
(B) by striking ``(other than paragraph (4) thereof)'' and
inserting ``(other than subsections (a)(4) and (d)
thereof)''; and
(C) by striking ``paragraph (2) thereof'' and inserting
``such section'';
(2) in subparagraph (A)(i)--
(A) by striking ``in subparagraphs (A)(ii)(I) and (C)(i),''
and inserting ``in subparagraphs (A)(ii)(I) and (D)(i) of
subsection (a)(2)''; and
(B) by striking ``and'' at the end;
(3) by striking subparagraph (A)(ii) and inserting the
following:
``(ii) by substituting, in subsections (a)(2)(B) and
(b)(1)(B)(i), the phrase `paragraph (7)(A) or (8)(A) of
section 1631(a) or the requirements of due process of law'
for the phrase `subsection (g) or (h) of section 223';
``(iii) by substituting, in subsection (a)(2)(C)(i), the
phrase `under title II' for the phrase `under title XVI';
``(iv) by substituting, in subsection (b)(1)(A), the phrase
`pay the amount of such fee' for the phrase `certify the
amount of such fee for payment' and by striking, in
subsection (b)(1)(A), the phrase `or certified for payment';
and
[[Page H451]]
``(v) by substituting, in subsection (b)(1)(B)(ii), the
phrase `deemed to be such amounts as determined before any
applicable reduction under section 1631(g), and reduced by
the amount of any reduction in benefits under this title or
title II made pursuant to section 1127(a)' for the phrase
`determined before any applicable reduction under section
1127(a))'.''; and
(4) by redesignating subparagraph (B) as subparagraph (D)
and inserting after subparagraph (A) the following:
``(B) Subject to subparagraph (C), if the claimant is
determined to be entitled to past-due benefits under this
title and the person representing the claimant is an
attorney, the Commissioner of Social Security shall pay out
of such past-due benefits to such attorney an amount equal to
the lesser of--
``(i) so much of the maximum fee as does not exceed 25
percent of such past-due benefits (as determined before any
applicable reduction under section 1631(g) and reduced by the
amount of any reduction in benefits under this title or title
II pursuant to section 1127(a)), or
``(ii) the amount of past-due benefits available after any
applicable reductions under sections 1631(g) and 1127(a).
``(C)(i) Whenever a fee for services is required to be paid
to an attorney from a claimant's past-due benefits pursuant
to subparagraph (B), the Commissioner shall impose on the
attorney an assessment calculated in accordance with clause
(ii).
``(ii)(I) The amount of an assessment under clause (i)
shall be equal to the product obtained by multiplying the
amount of the representative's fee that would be required to
be paid by subparagraph (B) before the application of this
subparagraph, by the percentage specified in subclause (II),
except that the maximum amount of the assessment may not
exceed $75. In the case of any calendar year beginning after
the amendments made by section 302 of the Social Security
Protection Act of 2003 take effect, the dollar amount
specified in the preceding sentence (including a previously
adjusted amount) shall be adjusted annually under the
procedures used to adjust benefit amounts under section
215(i)(2)(A)(ii), except such adjustment shall be based on
the higher of $75 or the previously adjusted amount that
would have been in effect for December of the preceding year,
but for the rounding of such amount pursuant to the following
sentence. Any amount so adjusted that is not a multiple of $1
shall be rounded to the next lowest multiple of $1, but in no
case less than $75.
``(II) The percentage specified in this subclause is such
percentage rate as the Commissioner determines is necessary
in order to achieve full recovery of the costs of determining
and approving fees to attorneys from the past-due benefits of
claimants, but not in excess of 6.3 percent.
``(iii) The Commissioner may collect the assessment imposed
on an attorney under clause (i) by offset from the amount of
the fee otherwise required by subparagraph (B) to be paid to
the attorney from a claimant's past-due benefits.
``(iv) An attorney subject to an assessment under clause
(i) may not, directly or indirectly, request or otherwise
obtain reimbursement for such assessment from the claimant
whose claim gave rise to the assessment.
``(v) Assessments on attorneys collected under this
subparagraph shall be deposited as miscellaneous receipts in
the general fund of the Treasury.
``(vi) The assessments authorized under this subparagraph
shall be collected and available for obligation only to the
extent and in the amount provided in advance in
appropriations Acts. Amounts so appropriated are authorized
to remain available until expended, for administrative
expenses in carrying out this title and related laws.''.
(b) Conforming Amendments.--Section 1631(a) of the Social
Security Act (42 U.S.C. 1383(a)) is amended--
(1) in paragraph (2)(F)(i)(II), by inserting ``and payment
of attorney fees under subsection (d)(2)(B)'' after
``subsection (g)''; and
(2) in paragraph (10)(A)--
(A) in the matter preceding clause (i), by inserting ``and
payment of attorney fees under subsection (d)(2)(B)'' after
``subsection (g)''; and
(B) in the matter following clause (ii), by inserting ``and
payment of attorney fees under subsection (d)(2)(B)'' after
``State''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply with respect to fees for representation of claimants
which are first required to be paid under section 1631(d)(2)
of the Social Security Act on or after the date of the
submission by the Commissioner of Social Security to each
House of Congress pursuant to section 303(d) of this Act of
written notice of completion of full implementation of the
requirements for operation of the demonstration project under
section 303 of this Act.
(2) Sunset.--Such amendments shall not apply with respect
to fees for representation of claimants in the case of any
claim for benefits with respect to which the agreement for
representation is entered into after 5 years after the date
described in paragraph (1).
SEC. 303. NATIONWIDE DEMONSTRATION PROJECT PROVIDING FOR
EXTENSION OF FEE WITHHOLDING PROCEDURES TO NON-
ATTORNEY REPRESENTATIVES.
(a) In General.--The Commissioner of Social Security
(hereafter in this section referred to as the
``Commissioner'') shall develop and carry out a nationwide
demonstration project under this section with respect to
agents and other persons, other than attorneys, who represent
claimants under titles II and XVI of the Social Security Act
before the Commissioner. The demonstration project shall be
designed to determine the potential results of extending to
such representatives the fee withholding procedures and
assessment procedures that apply under sections 206 and
section 1631(d)(2) of such Act to attorneys seeking direct
payment out of past due benefits under such titles and shall
include an analysis of the effect of such extension on
claimants and program administration.
(b) Standards for Inclusion in Demonstration Project.--Fee-
withholding procedures may be extended under the
demonstration project carried out pursuant to subsection (a)
to any non-attorney representative only if such
representative meets at least the following prerequisites:
(1) The representative has been awarded a bachelor's degree
from an accredited institution of higher education, or has
been determined by the Commissioner to have equivalent
qualifications derived from training and work experience.
(2) The representative has passed an examination, written
and administered by the Commissioner, which tests knowledge
of the relevant provisions of the Social Security Act and the
most recent developments in agency and court decisions
affecting titles II and XVI of such Act.
(3) The representative has secured professional liability
insurance, or equivalent insurance, which the Commissioner
has determined to be adequate to protect claimants in the
event of malpractice by the representative.
(4) The representative has undergone a criminal background
check to ensure the representative's fitness to practice
before the Commissioner.
(5) The representative demonstrates ongoing completion of
qualified courses of continuing education, including
education regarding ethics and professional conduct, which
are designed to enhance professional knowledge in matters
related to entitlement to, or eligibility for, benefits based
on disability under titles II and XVI of such Act. Such
continuing education, and the instructors providing such
education, shall meet such standards as the Commissioner may
prescribe.
(c) Assessment of Fees.--
(1) In general.--The Commissioner may assess
representatives reasonable fees to cover the cost to the
Social Security Administration of administering the
prerequisites described in subsection (b).
(2) Disposition of fees.--Fees collected under paragraph
(1) shall be credited to the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability Insurance
Trust Fund, or deposited as miscellaneous receipts in the
general fund of the Treasury, based on such allocations as
the Commissioner of Social Security determines appropriate.
(3) Authorization of appropriations.--The fees authorized
under this subparagraph shall be collected and available for
obligation only to the extent and in the amount provided in
advance in appropriations Acts. Amounts so appropriated are
authorized to remain available until expended for
administering the prerequisites described in subsection (b).
(d) Notice to Congress and Applicability of Fee Withholding
Procedures.--Not later than 1 year after the date of
enactment of this Act, the Commissioner shall complete such
actions as are necessary to fully implement the requirements
for full operation of the demonstration project and shall
submit to each House of Congress a written notice of the
completion of such actions. The applicability under this
section to non-attorney representatives of the fee
withholding procedures and assessment procedures under
sections 206 and 1631(d)(2) of the Social Security Act shall
be effective with respect to fees for representation of
claimants in the case of claims for benefits with respect to
which the agreement for representation is entered into by
such non-attorney representatives during the period beginning
with the date of the submission of such notice by the
Commissioner to Congress and ending with the termination date
of the demonstration project.
(e) Reports by the Commissioner; Termination.--
(1) Interim reports.--On or before the date which is 1 year
after the date of enactment of this Act, and annually
thereafter, the Commissioner shall transmit to the Committee
on Ways and Means of the House of Representatives and to the
Committee on Finance of the Senate an annual interim report
on the progress of the demonstration project carried out
under this section, together with any related data and
materials that the Commissioner may consider appropriate.
(2) Termination date and final report.--The termination
date of the demonstration project under this section is the
date which is 5 years after the date of the submission of the
notice by the Commissioner to each House of Congress pursuant
to subsection (d). The authority under the preceding
provisions of this section shall not apply in the case of
claims for benefits with respect to which the agreement for
representation is entered into after the termination date.
Not later than 90 days after the termination date, the
Commissioner shall submit to the Committee on Ways and Means
of the House of Representatives and to the Committee on
Finance of the Senate a final report with respect to the
demonstration project.
SEC. 304. GAO STUDY REGARDING THE FEE PAYMENT PROCESS FOR
CLAIMANT REPRESENTATIVES.
(a) Study.--
(1) In general.--The Comptroller General of the United
States shall study and evaluate the appointment and payment
of claimant representatives appearing before the Commissioner
of Social Security in connection with benefit claims under
titles II and XVI of the Social Security Act (42 U.S.C. 401
et seq., 1381 et seq.) in each of the following groups:
[[Page H452]]
(A) Attorney claimant representatives who elect fee
withholding under section 206 or 1631(d)(2) of such Act.
(B) Attorney claimant representatives who do not elect such
fee withholding.
(C) Non-attorney claimant representatives who are eligible
for, and elect, such fee withholding.
(D) Non-attorney claimant representatives who are eligible
for, but do not elect, such fee withholding.
(E) Non-attorney claimant representatives who are not
eligible for such fee withholding.
(2) Matters to be studied.--In conducting the study under
this subsection, the Comptroller General shall, for each of
group of claimant representatives described in paragraph
(1)--
(A) conduct a survey of the relevant characteristics of
such claimant representatives including--
(i) qualifications and experience;
(ii) the type of employment of such claimant
representatives, such as with an advocacy group, State or
local government, or insurance or other company;
(iii) geographical distribution between urban and rural
areas;
(iv) the nature of claimants' cases, such as whether the
cases are for disability insurance benefits only,
supplemental security income benefits only, or concurrent
benefits;
(v) the relationship of such claimant representatives to
claimants, such as whether the claimant is a friend, family
member, or client of the claimant representative; and
(vi) the amount of compensation (if any) paid to the
claimant representatives and the method of payment of such
compensation;
(B) assess the quality and effectiveness of the services
provided by such claimant representatives, including a
comparison of claimant satisfaction or complaints and benefit
outcomes, adjusted for differences in claimant
representatives' caseload, claimants' diagnostic group, level
of decision, and other relevant factors;
(C) assess the interactions between fee withholding under
sections 206 and 1631(d)(2) of such Act (including under the
amendments made by section 302 of this Act and under the
demonstration project conducted under section 303 of this
Act), the windfall offset under section 1127 of such Act, and
interim assistance reimbursements under section 1631(g) of
such Act;
(D) assess the potential results of making permanent the
fee withholding procedures under sections 206 and 1631(d)(2)
of such Act under the amendments made by section 302 of this
Act and under the demonstration project conducted under
section 303 of this Act with respect to program
administration and claimant outcomes, and assess whether the
rules and procedures employed by the Commissioner of Social
Security to evaluate the qualifications and performance of
claimant representatives should be revised prior to making
such procedures permanent; and
(E) make such recommendations for administrative and
legislative changes as the Comptroller General of the United
States considers necessary or appropriate.
(3) Consultation required.--The Comptroller General of the
United States shall consult with beneficiaries under title II
of such Act, beneficiaries under title XVI of such Act,
claimant representatives of beneficiaries under such titles,
and other interested parties, in conducting the study and
evaluation required under paragraph (1).
(b) Report.--Not later than 3 years after the date of the
submission by the Commissioner of Social Security to each
House of Congress pursuant to section 303(d) of this Act of
written notice of completion of full implementation of the
requirements for operation of the demonstration project under
section 303 of this Act, the Comptroller General of the
United States shall submit to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance
of the Senate a report on the results of the study and
evaluation conducted pursuant to subsection (a).
TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS
Subtitle A--Amendments Relating to the Ticket to Work and Work
Incentives Improvement Act of 1999
SEC. 401. APPLICATION OF DEMONSTRATION AUTHORITY SUNSET DATE
TO NEW PROJECTS.
Section 234 of the Social Security Act (42 U.S.C. 434) is
amended--
(1) in the first sentence of subsection (c), by striking
``conducted under subsection (a)'' and inserting ``initiated
under subsection (a) on or before December 17, 2005''; and
(2) in subsection (d)(2), by striking the first sentence
and inserting the following: ``The authority to initiate
projects under the preceding provisions of this section shall
terminate on December 18, 2005.''.
SEC. 402. EXPANSION OF WAIVER AUTHORITY AVAILABLE IN
CONNECTION WITH DEMONSTRATION PROJECTS
PROVIDING FOR REDUCTIONS IN DISABILITY
INSURANCE BENEFITS BASED ON EARNINGS.
Section 302(c) of the Ticket to Work and Work Incentives
Improvement Act of 1999 (42 U.S.C. 434 note) is amended by
striking ``(42 U.S.C. 401 et seq.),'' and inserting ``(42
U.S.C. 401 et seq.) and the requirements of section 1148 of
such Act (42 U.S.C. 1320b-19) as they relate to the program
established under title II of such Act,''.
SEC. 403. FUNDING OF DEMONSTRATION PROJECTS PROVIDING FOR
REDUCTIONS IN DISABILITY INSURANCE BENEFITS
BASED ON EARNINGS.
Section 302(f) of the Ticket to Work and Work Incentives
Improvement Act of 1999 (42 U.S.C. 434 note) is amended to
read as follows:
``(f) Expenditures.--Administrative expenses for
demonstration projects under this section shall be paid from
funds available for the administration of title II or XVIII
of the Social Security Act, as appropriate. Benefits payable
to or on behalf of individuals by reason of participation in
projects under this section shall be made from the Federal
Disability Insurance Trust Fund and the Federal Old-Age and
Survivors Insurance Trust Fund, as determined appropriate by
the Commissioner of Social Security, and from the Federal
Hospital Insurance Trust Fund and the Federal Supplementary
Medical Insurance Trust Fund, as determined appropriate by
the Secretary of Health and Human Services, from funds
available for benefits under such title II or XVIII.''.
SEC. 404. AVAILABILITY OF FEDERAL AND STATE WORK INCENTIVE
SERVICES TO ADDITIONAL INDIVIDUALS.
(a) Federal Work Incentives Outreach Program.--
(1) In general.--Section 1149(c)(2) of the Social Security
Act (42 U.S.C. 1320b-20(c)(2)) is amended to read as follows:
``(2) Disabled beneficiary.--The term `disabled
beneficiary' means an individual--
``(A) who is a disabled beneficiary as defined in section
1148(k)(2) of this Act;
``(B) who is receiving a cash payment described in section
1616(a) of this Act or a supplementary payment described in
section 212(a)(3) of Public Law 93-66 (without regard to
whether such payment is paid by the Commissioner pursuant to
an agreement under section 1616(a) of this Act or under
section 212(b) of Public Law 93-66);
``(C) who, pursuant to section 1619(b) of this Act, is
considered to be receiving benefits under title XVI of this
Act; or
``(D) who is entitled to benefits under part A of title
XVIII of this Act by reason of the penultimate sentence of
section 226(b) of this Act.''.
(2) Effective date.--The amendment made by this subsection
shall apply with respect to grants, cooperative agreements,
or contracts entered into on or after the date of the
enactment of this Act.
(b) State Grants for Work Incentives Assistance.--
(1) Definition of disabled beneficiary.--Section 1150(g)(2)
of such Act (42 U.S.C. 1320b-21(g)(2)) is amended to read as
follows:
``(2) Disabled beneficiary.--The term `disabled
beneficiary' means an individual--
``(A) who is a disabled beneficiary as defined in section
1148(k)(2) of this Act;
``(B) who is receiving a cash payment described in section
1616(a) of this Act or a supplementary payment described in
section 212(a)(3) of Public Law 93-66 (without regard to
whether such payment is paid by the Commissioner pursuant to
an agreement under section 1616(a) of this Act or under
section 212(b) of Public Law 93-66);
``(C) who, pursuant to section 1619(b) of this Act, is
considered to be receiving benefits under title XVI of this
Act; or
``(D) who is entitled to benefits under part A of title
XVIII of this Act by reason of the penultimate sentence of
section 226(b) of this Act.''.
(2) Advocacy or other services needed to maintain gainful
employment.--Section 1150(b)(2) of such Act (42 U.S.C. 1320b-
21(b)(2)) is amended by striking ``secure or regain'' and
inserting ``secure, maintain, or regain''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to payments provided after the date
of the enactment of this Act.
SEC. 405. TECHNICAL AMENDMENT CLARIFYING TREATMENT FOR
CERTAIN PURPOSES OF INDIVIDUAL WORK PLANS UNDER
THE TICKET TO WORK AND SELF-SUFFICIENCY
PROGRAM.
(a) In General.--Section 1148(g)(1) of the Social Security
Act (42 U.S.C. 1320b-19(g)(1)) is amended by adding at the
end, after and below subparagraph (E), the following:
``An individual work plan established pursuant to this
subsection shall be treated, for purposes of section
51(d)(6)(B)(i) of the Internal Revenue Code of 1986, as an
individualized written plan for employment under a State plan
for vocational rehabilitation services approved under the
Rehabilitation Act of 1973.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect as if included in section 505 of the Ticket
to Work and Work Incentives Improvement Act of 1999 (Public
Law 106-170; 113 Stat. 1921).
SEC. 406. GAO STUDY REGARDING THE TICKET TO WORK AND SELF-
SUFFICIENCY PROGRAM.
(a) GAO Report.--Not later than 12 months after the date of
enactment of this Act, the Comptroller General of the United
States shall submit a report to Congress regarding the Ticket
to Work and Self-Sufficiency Program established under
section 1148 of the Social Security Act (42 U.S.C. 1320b-19)
that--
(1) examines the annual and interim reports issued by
States, the Ticket to Work and Work Incentives Advisory Panel
established under section 101(f) of the Ticket to Work and
Work Incentives Improvement Act of 1999 (42 U.S.C. 1320b-19
note), and the Commissioner of Social Security regarding such
program;
(2) assesses the effectiveness of the activities carried
out under such program; and
(3) recommends such legislative or administrative changes
as the Comptroller General determines are appropriate to
improve the effectiveness of such program.
SEC. 407. REAUTHORIZATION OF APPROPRIATIONS FOR CERTAIN WORK
INCENTIVES PROGRAMS.
(a) Benefits Planning, Assistance, and Outreach.--Section
1149(d) of the Social Security Act (42 U.S.C. 1320b-20(d)) is
amended by striking ``2004'' and inserting ``2009''.
(b) Protection and Advocacy.--Section 1150(h) of the Social
Security Act (42 U.S.C. 1320b-21(h)) is amended by striking
``2004'' and inserting ``2009''.
[[Page H453]]
Subtitle B--Miscellaneous Amendments
SEC. 411. ELIMINATION OF TRANSCRIPT REQUIREMENT IN REMAND
CASES FULLY FAVORABLE TO THE CLAIMANT.
(a) In General.--Section 205(g) of the Social Security Act
(42 U.S.C. 405(g)) is amended in the sixth sentence by
striking ``and a transcript'' and inserting ``and, in any
case in which the Commissioner has not made a decision fully
favorable to the individual, a transcript''.
(b) Effective Date.--The amendment made by this section
shall apply with respect to final determinations issued (upon
remand) on or after the date of the enactment of this Act.
SEC. 412. NONPAYMENT OF BENEFITS UPON REMOVAL FROM THE UNITED
STATES.
(a) In General.--Section 202(n) of the Social Security Act
(42 U.S.C. 402(n)) is amended--
(1) in paragraph (1), by striking ``section 241(a) (other
than under paragraph (1)(C) or (1)(E) thereof) of the
Immigration and Nationality Act'' and inserting ``section
237(a) of the Immigration and Nationality Act (other than
under paragraph (1)(C) of such section) or under section
212(a)(6)(A) of such Act'';
(2) in paragraph (2), by striking ``section 241(a) of the
Immigration and Nationality Act (other than under paragraph
(1)(C) or (1)(E) thereof)'' and inserting ``section 237(a) of
the Immigration and Nationality Act (other than under
paragraph (1)(C) of such section) or under section
212(a)(6)(A) of such Act'';
(3) in paragraph (3), by striking ``paragraph (19) of
section 241(a) of the Immigration and Nationality Act
(relating to persecution of others on account of race,
religion, national origin, or political opinion, under the
direction of or in association with the Nazi government of
Germany or its allies) shall be considered to have been
deported under such paragraph (19)'' and inserting
``paragraph (4)(D) of section 241(a) of the Immigration and
Nationality Act (relating to participating in Nazi
persecutions or genocide) shall be considered to have been
deported under such paragraph (4)(D)''; and
(4) in paragraph (3) (as amended by paragraph (3) of this
subsection), by striking ``241(a)'' and inserting ``237(a)''.
(b) Technical Corrections.--
(1) Terminology regarding removal from the united states.--
Section 202(n) of the Social Security Act (42 U.S.C. 402(n))
(as amended by subsection (a)) is amended further--
(A) by striking ``deportation'' each place it appears and
inserting ``removal'';
(B) by striking ``deported'' each place it appears and
inserting ``removed''; and
(C) in the heading, by striking ``Deportation'' and
inserting ``Removal''.
(2) References to the secretary of homeland security.--
Section 202(n) of the Social Security Act (42 U.S.C. 402(n))
(as amended by subsection (a) and paragraph (1)) is amended
further by inserting ``or the Secretary of Homeland
Security'' after ``the Attorney General'' each place it
appears.
(c) Effective Dates.--
(1) In general.--The amendment made by--
(A) subsection (a)(1) shall apply to individuals with
respect to whom the Commissioner of Social Security receives
a removal notice after the date of the enactment of this Act;
(B) subsection (a)(2) shall apply with respect to
notifications of removals received by the Commissioner of
Social Security after the date of enactment of this Act; and
(C) subsection (a)(3) shall be effective as if enacted on
March 1, 1991.
(2) Subsequent correction of cross-reference and
terminology.--The amendments made by subsections (a)(4) and
(b)(1) shall be effective as if enacted on April 1, 1997.
(3) References to the secretary of homeland security.--The
amendment made by subsection (b)(2) shall be effective as if
enacted on March 1, 2003.
SEC. 413. REINSTATEMENT OF CERTAIN REPORTING REQUIREMENTS.
Section 3003(a)(1) of the Federal Reports Elimination and
Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to
any report required to be submitted under any of the
following provisions of law:
(1)(A) Section 201(c)(2) of the Social Security Act (42
U.S.C. 401(c)(2)).
(B) Section 1817(b)(2) of the Social Security Act (42
U.S.C. 1395i(b)(2)).
(C) Section 1841(b)(2) of the Social Security Act (42
U.S.C. 1395t(b)(2)).
(2)(A) Section 221(c)(3)(C) of the Social Security Act (42
U.S.C. 421(c)(3)(C)).
(B) Section 221(i)(3) of the Social Security Act (42 U.S.C.
421(i)(3)).
SEC. 414. CLARIFICATION OF DEFINITIONS REGARDING CERTAIN
SURVIVOR BENEFITS.
(a) Widows.--Section 216(c) of the Social Security Act (42
U.S.C. 416(c)) is amended--
(1) by redesignating subclauses (A) through (C) of clause
(6) as subclauses (i) through (iii), respectively;
(2) by redesignating clauses (1) through (6) as clauses (A)
through (F), respectively;
(3) in clause (E) (as redesignated), by inserting ``except
as provided in paragraph (2),'' before ``she was married'';
(4) by inserting ``(1)'' after ``(c)''; and
(5) by adding at the end the following:
``(2) The requirements of paragraph (1)(E) in connection
with the surviving wife of an individual shall be treated as
satisfied if--
``(A) the individual had been married prior to the
individual's marriage to the surviving wife,
``(B) the prior wife was institutionalized during the
individual's marriage to the prior wife due to mental
incompetence or similar incapacity,
``(C) during the period of the prior wife's
institutionalization, the individual would have divorced the
prior wife and married the surviving wife, but the individual
did not do so because such divorce would have been unlawful,
by reason of the prior wife's institutionalization, under the
laws of the State in which the individual was domiciled at
the time (as determined based on evidence satisfactory to the
Commissioner of Social Security),
``(D) the prior wife continued to remain institutionalized
up to the time of her death, and
``(E) the individual married the surviving wife within 60
days after the prior wife's death.''.
(b) Widowers.--Section 216(g) of such Act (42 U.S.C.
416(g)) is amended--
(1) by redesignating subclauses (A) through (C) of clause
(6) as subclauses (i) through (iii), respectively;
(2) by redesignating clauses (1) through (6) as clauses (A)
through (F), respectively;
(3) in clause (E) (as redesignated), by inserting ``except
as provided in paragraph (2),'' before ``he was married'';
(4) by inserting ``(1)'' after ``(g)''; and
(5) by adding at the end the following:
``(2) The requirements of paragraph (1)(E) in connection
with the surviving husband of an individual shall be treated
as satisfied if--
``(A) the individual had been married prior to the
individual's marriage to the surviving husband,
``(B) the prior husband was institutionalized during the
individual's marriage to the prior husband due to mental
incompetence or similar incapacity,
``(C) during the period of the prior husband's
institutionalization, the individual would have divorced the
prior husband and married the surviving husband, but the
individual did not do so because such divorce would have been
unlawful, by reason of the prior husband's
institutionalization, under the laws of the State in which
the individual was domiciled at the time (as determined based
on evidence satisfactory to the Commissioner of Social
Security),
``(D) the prior husband continued to remain
institutionalized up to the time of his death, and
``(E) the individual married the surviving husband within
60 days after the prior husband's death.''.
(c) Conforming Amendment.--Section 216(k) of such Act (42
U.S.C. 416(k)) is amended by striking ``clause (5) of
subsection (c) or clause (5) of subsection (g)'' and
inserting ``clause (E) of subsection (c)(1) or clause (E) of
subsection (g)(1)''.
(d) Effective Date.--The amendments made by this section
shall be effective with respect to applications for benefits
under title II of the Social Security Act filed during months
ending after the date of the enactment of this Act.
SEC. 415. CLARIFICATION RESPECTING THE FICA AND SECA TAX
EXEMPTIONS FOR AN INDIVIDUAL WHOSE EARNINGS ARE
SUBJECT TO THE LAWS OF A TOTALIZATION AGREEMENT
PARTNER.
Sections 1401(c), 3101(c), and 3111(c) of the Internal
Revenue Code of 1986 are each amended by striking ``to taxes
or contributions for similar purposes under'' and inserting
``exclusively to the laws applicable to''.
SEC. 416. COVERAGE UNDER DIVIDED RETIREMENT SYSTEM FOR PUBLIC
EMPLOYEES IN KENTUCKY AND LOUISIANA.
(a) In General.--Section 218(d)(6)(C) of the Social
Security Act (42 U.S.C. 418(d)(6)(C)) is amended by inserting
``Kentucky, Louisiana,'' after ``Illinois,''.
(b) Effective Date.--The amendment made by subsection (a)
takes effect on January 1, 2003.
SEC. 417. COMPENSATION FOR THE SOCIAL SECURITY ADVISORY
BOARD.
(a) In General.--Subsection (f) of section 703 of the
Social Security Act (42 U.S.C. 903(f)) is amended to read as
follows:
``Compensation, Expenses, and Per Diem
``(f) A member of the Board shall, for each day (including
traveltime) during which the member is attending meetings or
conferences of the Board or otherwise engaged in the business
of the Board, be compensated at the daily rate of basic pay
for level IV of the Executive Schedule. While serving on
business of the Board away from their homes or regular places
of business, members may be allowed travel expenses,
including per diem in lieu of subsistence, as authorized by
section 5703 of title 5, United States Code, for persons in
the Government employed intermittently.''.
(b) Effective Date.--The amendment made by this section
shall be effective as of January 1, 2003.
SEC. 418. 60-MONTH PERIOD OF EMPLOYMENT REQUIREMENT FOR
APPLICATION OF GOVERNMENT PENSION OFFSET
EXEMPTION.
(a) In General.--Section 202(k) of the Social Security Act
(42 U.S.C. 402(k)) is amended by adding at the end the
following:
``(5)(A) The amount of a monthly insurance benefit of any
individual for each month under subsection (b), (c), (e),
(f), or (g) (as determined after application of the
provisions of subsection (q) and the preceding provisions of
this subsection) shall be reduced (but not below zero) by an
amount equal to two-thirds of the amount of any monthly
periodic benefit payable to such individual for such month
which is based upon such individual's earnings while in the
service of the Federal Government or any State (or political
subdivision thereof, as defined in section 218(b)(2)) if,
during any portion of the last 60 months of such service
ending with the last day such individual was employed by such
entity--
``(i) such service did not constitute `employment' as
defined in section 210, or
``(ii) such service was being performed while in the
service of the Federal Government, and constituted
`employment' as so defined solely by reason of--
``(I) clause (ii) or (iii) of subparagraph (G) of section
210(a)(5), where the lump-sum payment described in such
clause (ii) or the cessation of
[[Page H454]]
coverage described in such clause (iii) (whichever is
applicable) was received or occurred on or after January 1,
1988, or
``(II) an election to become subject to the Federal
Employees' Retirement System provided in chapter 84 of title
5, United States Code, or the Foreign Service Pension System
provided in subchapter II of chapter 8 of title I of the
Foreign Service Act of 1980 made pursuant to law after
December 31, 1987,
unless subparagraph (B) applies.
The amount of the reduction in any benefit under this
subparagraph, if not a multiple of $0.10, shall be rounded to
the next higher multiple of $0.10.
``(B)(i) Subparagraph (A)(i) shall not apply with respect
to monthly periodic benefits based wholly on service as a
member of a uniformed service (as defined in section 210(m)).
``(ii) Subparagraph (A)(ii) shall not apply with respect to
monthly periodic benefits based in whole or in part on
service which constituted `employment' as defined in section
210 if such service was performed for at least 60 months in
the aggregate during the period beginning January 1, 1988,
and ending with the close of the first calendar month as of
the end of which such individual is eligible for benefits
under this subsection and has made a valid application for
such benefits.
``(C) For purposes of this paragraph, any periodic benefit
which otherwise meets the requirements of subparagraph (A),
but which is paid on other than a monthly basis, shall be
allocated on a basis equivalent to a monthly benefit (as
determined by the Commissioner of Social Security) and such
equivalent monthly benefit shall constitute a monthly
periodic benefit for purposes of subparagraph (A). For
purposes of this subparagraph, the term `periodic benefit'
includes a benefit payable in a lump sum if it is a
commutation of, or a substitute for, periodic payments.''.
(b) Conforming Amendments.--
(1) Wife's insurance benefits.--Section 202(b) of the
Social Security Act (42 U.S.C. 402(b)) is amended--
(A) in paragraph (2), by striking ``subsection (q) and
paragraph (4) of this subsection'' and inserting
``subsections (k)(5) and (q)''; and
(B) by striking paragraph (4) and redesignating paragraph
(5) as paragraph (4).
(2) Husband's insurance benefits.--Section 202(c) of the
Social Security Act (42 U.S.C. 402(c)) is amended--
(A) by striking paragraph (2) and redesignating paragraphs
(3) through (5) as paragraphs (2) through (4), respectively;
and
(B) in paragraph (2) as so redesignated, by striking
``subsection (q) and paragraph (2) of this subsection'' and
inserting ``subsections (k)(5) and (q)''.
(3) Widow's insurance benefits.--Section 202(e) of the
Social Security Act (42 U.S.C. 402(e)) is amended--
(A) in paragraph (2)(A), by striking ``subsection (q),
paragraph (7) of this subsection,'' and inserting
``subsection (k)(5), subsection (q),''; and
(B) by striking paragraph (7) and redesignating paragraphs
(8) and (9) as paragraphs (7) and (8), respectively.
(4) Widower's insurance benefits.--
(A) In general.--Section 202(f) of the Social Security Act
(42 U.S.C. 402(f)) is amended--
(i) by striking paragraph (2) and redesignating paragraphs
(3) through (9) as paragraphs (2) through (8), respectively;
and
(ii) in paragraph (2) as so redesignated, by striking
``subsection (q), paragraph (2) of this subsection,'' and
inserting ``subsection (k)(5), subsection (q),''.
(B) Conforming amendments.--
(i) Section 202(f)(1)(B) of the Social Security Act (42
U.S.C. 402(f)(1)(B)) is amended by striking ``paragraph (5)''
and inserting ``paragraph (4)''.
(ii) Section 202(f)(1)(F) of the Social Security Act (42
U.S.C. 402(f)(1)(F)) is amended by striking ``paragraph (6)''
and ``paragraph (5)'' (in clauses (i) and (ii)) and inserting
``paragraph (5)'' and ``paragraph (4)'', respectively.
(iii) Section 202(f)(5)(A)(ii) of the Social Security Act
(as redesignated by subparagraph (A)(i)) is amended by
striking ``paragraph (5)'' and inserting ``paragraph (4)''.
(iv) Section 202(k)(2)(B) of the Social Security Act (42
U.S.C. 402(k)(2)(B)) is amended by striking ``or (f)(4)''
each place it appears and inserting ``or (f)(3)''.
(v) Section 202(k)(3)(A) of the Social Security Act (42
U.S.C. 402(k)(3)(A)) is amended by striking ``or (f)(3)'' and
inserting ``or (f)(2)''.
(vi) Section 202(k)(3)(B) of the Social Security Act (42
U.S.C. 402(k)(3)(B)) is amended by striking ``or (f)(4)'' and
inserting ``or (f)(3)''.
(vii) Section 226(e)(1)(A)(i) of the Social Security Act
(42 U.S.C. 426(e)(1)(A)(i)) is amended by striking ``and
202(f)(5)'' and inserting ``and 202(f)(4)''.
(5) Mother's and father's insurance benefits.--Section
202(g) of the Social Security Act (42 U.S.C. 402(g)) is
amended--
(A) in paragraph (2), by striking ``Except as provided in
paragraph (4) of this subsection, such'' and inserting
``Such''; and
(B) by striking paragraph (4).
(c) Effective Date and Transitional Rule.--
(1) In general.--The amendments made by this section shall
apply with respect to applications for benefits under title
II of the Social Security Act filed on or after the first day
of the first month that begins after the date of enactment of
this Act, except that such amendments shall not apply in
connection with monthly periodic benefits of any individual
based on earnings while in service described in section
202(k)(5)(A) of the Social Security Act (in the matter
preceding clause (i) thereof) if the last day of such service
occurs before July 1, 2004.
(2) Transitional rule.--In the case of any individual whose
last day of service described in subparagraph (A) of section
202(k)(5) of the Social Security Act (as added by subsection
(a) of this section) occurs within 5 years after the date of
enactment of this Act--
(A) the 60-month period described in such subparagraph (A)
shall be reduced (but not to less than 1 month) by the number
of months of such service (in the aggregate and without
regard to whether such months of service were continuous)
which--
(i) were performed by the individual under the same
retirement system on or before the date of enactment of this
Act, and
(ii) constituted ``employment'' as defined in section 210
of the Social Security Act; and
(B) months of service necessary to fulfill the 60-month
period as reduced by subparagraph (A) of this paragraph must
be performed after the date of enactment of this Act.
SEC. 419. DISCLOSURE TO WORKERS OF EFFECT OF WINDFALL
ELIMINATION PROVISION AND GOVERNMENT PENSION
OFFSET PROVISION.
(a) Inclusion of Noncovered Employees as Eligible
Individuals Entitled to Social Security Account Statements.--
Section 1143(a)(3) of the Social Security Act (42 U.S.C.
1320b-13(a)(3)) is amended--
(1) by striking ``who'' after ``an individual'' and
inserting ``who'' before ``has'' in each of subparagraphs (A)
and (B);
(2) by inserting ``(i) who'' after ``(C)''; and
(3) by inserting before the period the following: ``, or
(ii) with respect to whom the Commissioner has information
that the pattern of wages or self-employment income indicate
a likelihood of noncovered employment''.
(b) Explanation in Social Security Account Statements of
Possible Effects of Periodic Benefits Under State and Local
Retirement Systems on Social Security Benefits.--Section
1143(a)(2) of the Social Security Act (42 U.S.C. 1320b-
13(a)(2)) is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(E) in the case of an eligible individual described in
paragraph (3)(C)(ii), an explanation, in language calculated
to be understood by the average eligible individual, of the
operation of the provisions under sections 202(k)(5) and
215(a)(7) and an explanation of the maximum potential effects
of such provisions on the eligible individual's monthly
retirement, survivor, and auxiliary benefits.''.
(c) Truth in Retirement Disclosure to Governmental
Employees of Effect of Noncovered Employment on Benefits
Under Title II.--Section 1143 of the Social Security Act (42
U.S..C. 1320b-13) is amended further by adding at the end the
following:
``Disclosure to Governmental Employees of Effect of Noncovered
Employment
``(d)(1) In the case of any individual commencing
employment on or after January 1, 2005, in any agency or
instrumentality of any State (or political subdivision
thereof, as defined in section 218(b)(2)) in a position in
which service performed by the individual does not constitute
`employment' as defined in section 210, the head of the
agency or instrumentality shall ensure that, prior to the
date of the commencement of the individual's employment in
the position, the individual is provided a written notice
setting forth an explanation, in language calculated to be
understood by the average individual, of the maximum effect
on computations of primary insurance amounts (under section
215(a)(7)) and the effect on benefit amounts (under section
202(k)(5)) of monthly periodic payments or benefits payable
based on earnings derived in such service. Such notice shall
be in a form which shall be prescribed by the Commissioner of
Social Security.
``(2) The written notice provided to an individual pursuant
to paragraph (1) shall include a form which, upon completion
and signature by the individual, would constitute
certification by the individual of receipt of the notice. The
agency or instrumentality providing the notice to the
individual shall require that the form be completed and
signed by the individual and submitted to the agency or
instrumentality and to the pension, annuity, retirement, or
similar fund or system established by the governmental entity
involved responsible for paying the monthly periodic payments
or benefits, before commencement of service with the agency
or instrumentality.''.
(d) Effective Dates.--The amendments made by subsections
(a) and (b) of this section shall apply with respect to
social security account statements issued on or after January
1, 2007.
SEC. 420. POST-1956 MILITARY WAGE CREDITS.
(a) Payment to the Social Security Trust Funds in
Satisfaction of Outstanding Obligations.--Section 201 of the
Social Security Act (42 U.S.C. 401) is amended by adding at
the end the following:
``(n) Not later than July 1, 2004, the Secretary of the
Treasury shall transfer, from amounts in the general fund of
the Treasury that are not otherwise appropriated--
``(1) $624,971,854 to the Federal Old-Age and Survivors
Insurance Trust Fund;
``(2) $105,379,671 to the Federal Disability Insurance
Trust Fund; and
``(3) $173,306,134 to the Federal Hospital Insurance Trust
Fund.
Amounts transferred in accordance with this subsection shall
be in satisfaction of certain outstanding obligations for
deemed wage credits for 2000 and 2001.''.
(b) Conforming Amendments.--
(1) Repeal of authority for annual appropriations and
related adjustments to compensate the social security trust
fund for military wage credits.--Section 229 of the Social
Security Act (42 U.S.C. 429) is amended--
(A) by striking ``(a)''; and
[[Page H455]]
(B) by striking subsection (b).
(2) Amendment to reflect the termination of wage credits
effective after calendar year 2001 by section 8134 of public
law 107-117.--Section 229(a)(2) of the Social Security Act
(42 U.S.C. 429(a)(2)), as amended by paragraph (1), is
amended by inserting ``and before 2002'' after ``1977''.
SEC. 420A. ELIMINATION OF DISINCENTIVE TO RETURN-TO-WORK FOR
CHILDHOOD DISABILITY BENEFICIARIES.
(a) In General.--Section 202(d)(6)(B) of the Social
Security Act (42 U.S.C. 402(d)(6)(B)) is amended--
(1) by inserting ``(i)'' after ``began''; and
(2) by adding after ``such disability,'' the following:
``or (ii) after the close of the 84th month following the
month in which his most recent entitlement to child's
insurance benefits terminated because he ceased to be under
such disability due to performance of substantial gainful
activity,''.
(b) Effective Date.--The amendments made by subsection (a)
shall be effective with respect to benefits payable for
months beginning with the 7th month that begins after the
date of enactment of this Act.
Subtitle C--Technical Amendments
SEC. 421. TECHNICAL CORRECTION RELATING TO RESPONSIBLE AGENCY
HEAD.
Section 1143 of the Social Security Act (42 U.S.C. 1320b-
13) is amended--
(1) by striking ``Secretary'' the first place it appears
and inserting ``Commissioner of Social Security''; and
(2) by striking ``Secretary'' each subsequent place it
appears and inserting ``Commissioner''.
SEC. 422. TECHNICAL CORRECTION RELATING TO RETIREMENT
BENEFITS OF MINISTERS.
(a) In General.--Section 211(a)(7) of the Social Security
Act (42 U.S.C. 411(a)(7)) is amended by inserting ``, but
shall not include in any such net earnings from self-
employment the rental value of any parsonage or any parsonage
allowance (whether or not excluded under section 107 of the
Internal Revenue Code of 1986) provided after the individual
retires, or any other retirement benefit received by such
individual from a church plan (as defined in section 414(e)
of such Code) after the individual retires'' before the
semicolon.
(b) Effective Date.--The amendment made by this section
shall apply to years beginning before, on, or after December
31, 1994.
SEC. 423. TECHNICAL CORRECTIONS RELATING TO DOMESTIC
EMPLOYMENT.
(a) Amendment to Internal Revenue Code.--Section
3121(a)(7)(B) of the Internal Revenue Code of 1986 is amended
by striking ``described in subsection (g)(5)'' and inserting
``on a farm operated for profit''.
(b) Amendment to Social Security Act.--Section 209(a)(6)(B)
of the Social Security Act (42 U.S.C. 409(a)(6)(B)) is
amended by striking ``described in section 210(f)(5)'' and
inserting ``on a farm operated for profit''.
(c) Conforming Amendment.--Section 3121(g)(5) of such Code
and section 210(f)(5) of such Act (42 U.S.C. 410(f)(5)) are
amended by striking ``or is domestic service in a private
home of the employer''.
SEC. 424. TECHNICAL CORRECTIONS OF OUTDATED REFERENCES.
(a) Correction of Citation Respecting the Tax Deduction
Relating to Health Insurance Costs of Self-Employed
Individuals.--Section 211(a)(15) of the Social Security Act
(42 U.S.C. 411(a)(15)) is amended by striking ``section
162(m)'' and inserting ``section 162(l)''.
(b) Elimination of Reference to Obsolete 20-Day
Agricultural Work Test.--Section 3102(a) of the Internal
Revenue Code of 1986 is amended by striking ``and the
employee has not performed agricultural labor for the
employer on 20 days or more in the calendar year for cash
remuneration computed on a time basis''.
SEC. 425. TECHNICAL CORRECTION RESPECTING SELF-EMPLOYMENT
INCOME IN COMMUNITY PROPERTY STATES.
(a) Social Security Act Amendment.--Section 211(a)(5)(A) of
the Social Security Act (42 U.S.C. 411(a)(5)(A)) is amended
by striking ``all of the gross income'' and all that follows
and inserting ``the gross income and deductions attributable
to such trade or business shall be treated as the gross
income and deductions of the spouse carrying on such trade or
business or, if such trade or business is jointly operated,
treated as the gross income and deductions of each spouse on
the basis of their respective distributive share of the gross
income and deductions;''.
(b) Internal Revenue Code of 1986 Amendment.--Section
1402(a)(5)(A) of the Internal Revenue Code of 1986 is amended
by striking ``all of the gross income'' and all that follows
and inserting ``the gross income and deductions attributable
to such trade or business shall be treated as the gross
income and deductions of the spouse carrying on such trade or
business or, if such trade or business is jointly operated,
treated as the gross income and deductions of each spouse on
the basis of their respective distributive share of the gross
income and deductions; and''.
SEC. 426. TECHNICAL AMENDMENTS TO THE RAILROAD RETIREMENT AND
SURVIVORS' IMPROVEMENT ACT OF 2001.
(a) Quorum Rules.--Section 15(j)(7) of the Railroad
Retirement Act of 1974 (45 U.S.C. 231n(j)(7)) is amended by
striking ``entire Board of Trustees'' and inserting
``Trustees then holding office''.
(b) Powers of the Board of Trustees.--Section 15(j)(4) of
the Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(4)) is
amended to read as follows:
``(4) Powers of the board of trustees.--The Board of
Trustees shall--
``(A) retain independent advisers to assist it in the
formulation and adoption of its investment guidelines;
``(B) invest assets of the Trust in a manner consistent
with such investment guidelines, either directly or through
the retention of independent investment managers;
``(C) adopt bylaws and other rules to govern its
operations;
``(D) employ professional staff, and contract with outside
advisers, including the Railroad Retirement Board, to provide
legal, accounting, investment advisory or management services
(compensation for which may be on a fixed contract fee basis
or on such other terms as are customary for such services),
or other services necessary for the proper administration of
the Trust;
``(E) sue and be sued and participate in legal proceedings,
have and use a seal, conduct business, carry on operations,
and exercise its powers within or without the District of
Columbia, form, own, or participate in entities of any kind,
enter into contracts and agreements necessary to carry out
its business purposes, lend money for such purposes, and deal
with property as security for the payment of funds so loaned,
and possess and exercise any other powers appropriate to
carry out the purposes of the Trust;
``(F) pay administrative expenses of the Trust from the
assets of the Trust; and
``(G) transfer money to the disbursing agent or as
otherwise provided in section 7(b)(4), to pay benefits
payable under this Act from the assets of the Trust.''.
(c) State and Local Taxes.--Section 15(j)(6) of the
Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(6)) is
amended to read as follows:
``(6) State and local taxes.--The Trust shall be exempt
from any income, sales, use, property, or other similar tax
or fee imposed or levied by a State, political subdivision,
or local taxing authority. The district courts of the United
States shall have original jurisdiction over a civil action
brought by the Trust to enforce this subsection and may grant
equitable or declaratory relief requested by the Trust.''.
(d) Funding.--Section 15(j)(8) of the Railroad Retirement
Act of 1974 (45 U.S.C. 231n(j)(8)) is repealed.
(e) Transfers.--Section 15A(d)(2) of the Railroad
Retirement Act of 1974 (45 U.S.C. 231n-1(d)(2)) is amended--
(1) by inserting ``or the Railroad Retirement Account''
after ``National Railroad Retirement Investment Trust'' the
second place it appears;
(2) by inserting ``or the Railroad Retirement Board'' after
``National Railroad Retirement Investment Trust'' the third
place it appears;
(3) by inserting ``(either directly or through a commingled
account consisting only of such obligations)'' after ``United
States'' the first place it appears; and
(4) in the third sentence, by inserting before the period
at the end the following: ``or to purchase such additional
obligations''.
(f) Clerical Amendments.--Section 15(j)(5) of the Railroad
Retirement Act of 1974 (45 U.S.C. 231n(j)(5)) is amended--
(1) in subparagraph (B), by striking ``trustee's'' each
place it appears and inserting ``Trustee's'';
(2) in subparagraph (C), by striking ``trustee'' and
``trustees'' each place it appears and inserting ``Trustee''
and ``Trustees'', respectively; and
(3) in the matter preceding clause (i) of subparagraph (D),
by striking ``trustee'' and inserting ``Trustee''.
Subtitle D--Amendments Related to Title XVI
SEC. 430. EXCLUSION FROM INCOME FOR CERTAIN INFREQUENT OR
IRREGULAR INCOME AND CERTAIN INTEREST OR
DIVIDEND INCOME.
(a) Infrequent or Irregular Income.--Section 1612(b)(3) of
the Social Security Act (42 U.S.C. 1382a(b)(3)) is amended to
read as follows--
``(3) in any calendar quarter, the first--
``(A) $60 of unearned income, and
``(B) $30 of earned income,
of such individual (and such spouse, if any) which, as
determined in accordance with criteria prescribed by the
Commissioner of Social Security, is received too infrequently
or irregularly to be included;''.
(b) Interest or Dividend Income.--Section 1612(b) of the
Social Security Act (42 U.S.C. 1382a(b)) is amended--
(1) in paragraph (21), by striking ``and'' at the end;
(2) in paragraph (22), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(23) interest or dividend income from resources--
``(A) not excluded under section 1613(a), or
``(B) excluded pursuant to Federal law other than section
1613(a).''.
(c) Effective Date.--The amendments made by this section
shall be effective with respect to benefits payable for
months in calendar quarters that begin more than 90 days
after the date of the enactment of this Act.
SEC. 431. UNIFORM 9-MONTH RESOURCE EXCLUSION PERIODS.
(a) Underpayments of Benefits.--Section 1613(a)(7) of the
Social Security Act (42 U.S.C. 1382b(a)(7)) is amended--
(1) by striking ``6'' and inserting ``9''; and
(2) by striking ``(or to the first 9 months following such
month with respect to any amount so received during the
period beginning October 1, 1987, and ending September 30,
1989)''.
(b) Advanceable Tax Credits.--Section 1613(a)(11) of the
Social Security Act (42 U.S.C. 1382b(a)(11)) is amended to
read as follows:
``(11) for the 9-month period beginning after the month in
which received--
``(A) notwithstanding section 203 of the Economic Growth
and Tax Relief Reconciliation Act of 2001, any refund of
Federal income taxes made to such individual (or such spouse)
under
[[Page H456]]
section 24 of the Internal Revenue Code of 1986 (relating to
child tax credit) by reason of subsection (d) thereof; and
``(B) any refund of Federal income taxes made to such
individual (or such spouse) by reason of section 32 of the
Internal Revenue Code of 1986 (relating to earned income tax
credit), and any payment made to such individual (or such
spouse) by an employer under section 3507 of such Code
(relating to advance payment of earned income credit);''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of enactment of this Act, and
shall apply to amounts described in paragraph (7) of section
1613(a) of the Social Security Act and refunds of Federal
income taxes described in paragraph (11) of such section,
that are received by an eligible individual or eligible
spouse on or after such date.
SEC. 432. ELIMINATION OF CERTAIN RESTRICTIONS ON THE
APPLICATION OF THE STUDENT EARNED INCOME
EXCLUSION.
(a) In General.--Section 1612(b)(1) of the Social Security
Act (42 U.S.C. 1382a(b)(1)) is amended by striking ``a child
who'' and inserting ``under the age of 22 and''.
(b) Effective Date.--The amendment made by this section
shall be effective with respect to benefits payable for
months that begin on or after 1 year after the date of
enactment of this Act.
SEC. 433. EXCEPTION TO RETROSPECTIVE MONTHLY ACCOUNTING FOR
NONRECURRING INCOME.
(a) In General.--Section 1611(c) of the Social Security Act
(42 U.S.C. 1382(c)) is amended by adding at the end the
following:
``(9)(A) Notwithstanding paragraphs (1) and (2), any
nonrecurring income which is paid to an individual in the
first month of any period of eligibility shall be taken into
account in determining the amount of the benefit under this
title of such individual (and his eligible spouse, if any)
only for that month, and shall not be taken into account in
determining the amount of the benefit for any other month.
``(B) For purposes of subparagraph (A), payments to an
individual in varying amounts from the same or similar source
for the same or similar purpose shall not be considered to be
nonrecurring income.''.
(b) Deletion of Obsolete Material.--Section 1611(c)(2)(B)
of the Social Security Act (42 U.S.C. 1382(c)(2)(B)) is
amended to read as follows:
``(B) in the case of the first month following a period of
ineligibility in which eligibility is restored after the
first day of such month, bear the same ratio to the amount of
the benefit which would have been payable to such individual
if eligibility had been restored on the first day of such
month as the number of days in such month including and
following the date of restoration of eligibility bears to the
total number of days in such month.''.
(c) Effective Date.--The amendments made by this section
shall be effective with respect to benefits payable for
months that begin on or after 1 year after the date of
enactment of this Act.
SEC. 434. REMOVAL OF RESTRICTION ON PAYMENT OF BENEFITS TO
CHILDREN WHO ARE BORN OR WHO BECOME BLIND OR
DISABLED AFTER THEIR MILITARY PARENTS ARE
STATIONED OVERSEAS.
(a) In General.--Section 1614(a)(1)(B)(ii) of the Social
Security Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is amended--
(1) by inserting ``and'' after ``citizen of the United
States,''; and
(2) by striking ``, and who,'' and all that follows and
inserting a period.
(b) Effective Date.--The amendments made by this section
shall be effective with respect to benefits payable for
months beginning after the date of enactment of this Act, but
only on the basis of an application filed after such date.
SEC. 435. TREATMENT OF EDUCATION-RELATED INCOME AND
RESOURCES.
(a) Exclusion From Income of Gifts Provided for Tuition and
Other Education-Related Fees.--Section 1612(b)(7) of the
Social Security Act (42 U.S.C. 1382a(b)(7)) is amended by
striking ``or fellowship received for use in paying'' and
inserting ``fellowship, or gift (or portion of a gift) used
to pay''.
(b) Exclusion From Resources for 9 Months of Grants,
Scholarships, Fellowships, or Gifts Provided for Tuition and
Other Education-Related Fees.--Section 1613(a) of the Social
Security Act (42 U.S.C. 1382b(a)) (as amended by section
101(c)(2)) is amended--
(1) in paragraph (13), by striking ``and'' at the end;
(2) in paragraph (14), by striking the period and inserting
``; and''; and
(3) by inserting after paragraph (14) the following:
``(15) for the 9-month period beginning after the month in
which received, any grant, scholarship, fellowship, or gift
(or portion of a gift) used to pay the cost of tuition and
fees at any educational (including technical or vocational
education) institution.''.
(c) Effective Date.--The amendments made by this section
shall apply to benefits payable for months that begin more
than 90 days after the date of enactment of this Act.
SEC. 436. MONTHLY TREATMENT OF UNIFORMED SERVICE
COMPENSATION.
(a) Treatment of Pay as Received When Earned.--Section
1611(c) of the Social Security Act (42 U.S.C. 1382(c)), as
amended by section 435(a), is amended by adding at the end
the following:
``(10) For purposes of this subsection, remuneration for
service performed as a member of a uniformed service may be
treated as received in the month in which it was earned, if
the Commissioner of Social Security determines that such
treatment would promote the economical and efficient
administration of the program authorized by this title.''.
(b) Effective Date.--The amendments made by this section
shall apply to benefits payable for months that begin more
than 90 days after the date of enactment of this Act.
Motion Offered by Mr. Shaw
Mr. SHAW. Mr. Speaker, I offer a motion.
The SPEAKER pro tempore. The Clerk will designate the motion.
The text of the motion is as follows:
Mr. Shaw moves that the House concur in the Senate
amendment to H.R. 783.
The SPEAKER pro tempore. Pursuant to House Resolution 520, the
gentleman from Florida (Mr. Shaw) and the gentleman from California
(Mr. Matsui) each will control 30 minutes.
The Chair recognizes the gentleman from Florida (Mr. Shaw).
Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I am pleased to present to the House the Social Security
Protection Act of 2003, bipartisan legislation that fights fraud and
abuse in the Social Security programs.
In April, the House overwhelmingly passed this bipartisan bill by a
vote of 396 to 28. In December, the Senate passed an amended version of
the Protection Act unanimously. They did this by unanimous consent.
Today, we have an opportunity to pass this essential legislation so
that it be sent to the President and made law.
Workers, retirees, individuals with disabilities, survivors and their
families have paid for and deserve better protection under Social
Security and the enhanced vigilance against waste, fraud and abuse this
bill provides.
First, this bill protects nearly 7 million beneficiaries who cannot
manage their own affairs and rely on representative payees appointed by
the Social Security Administration. It does this by raising payee
standards, increasing oversight, and imposing stricter penalties on
those who would mismanage the benefits entrusted to their care.
Second, this bill denies Social Security benefits to fugitive felons
and probation/parole violators.
Third, it provides tools to further safeguard Social Security
programs, including new civil monetary penalties for those who withhold
information to get benefits and improving collection of overpaid
benefits.
Fourth, this legislation closes a loophole in the law that has
allowed an isolated group of public employees to receive full Social
Security spouse and widow benefits that no other identical working
spouse in America receives even when both pay into the Social Security
program.
Finally, the bill helps people with disabilities by giving greater
access to qualified representatives when applying for benefits, by
improving work incentive programs, and by expanding eligibility for the
Work Opportunity Tax Credit to encourage more employers to hire
individuals with disabilities.
And, accompanying all of this, the taxpayers will save $800 million
over the next 10 years.
I thank Senators Grassley and Baucus of the Senate Finance Committee
who offered to work with the Committee on Ways and Means and, of
course, the gentleman from California (Mr. Matsui) as we have done this
on a bipartisan basis as they developed their amendments to the House-
passed bill.
This amendment made a number of enhancements to the bill.
First, it increased overpayment collection by authorized recovery
across Social Security and Supplemental Social Security Income program
lines.
It provides for a 5-year nationwide demonstration project providing
direct fee withholding for qualified nonattorneys who help individuals
through the complex disability application process.
It provides additional time for the Social Security Administration to
test initiatives to help individuals with disabilities return to work
as well as extended funding for services that help individuals with
disabilities return to work and keep working.
It provides for the ability to restart disability benefits based on
their parent's work if an individual disabled in childhood tries to
work but must later stop.
Lastly, enhancement and simplification of the Supplemental Security
Income program, especially for members of the military and their
families.
[[Page H457]]
This bipartisan legislation has support of many organizations because
it does what is right for the Social Security program, the people who
pay into it and the people who benefit. It was developed in cooperation
with the Social Security Administration and the Social Security
Inspector General. It is also supported by AARP, Citizens Against
Government Waste, the National Conference of State Social Security
Administrators, the Consortium for Citizens with Disabilities, the
National Alliance for the Mentally Ill, the Association of
Administrative Law Judges, and the National Organization of Social
Security Claimants' Representatives.
{time} 1415
This bill probably will not make the front page of your newspaper on
kitchen tables tomorrow morning. That is unfortunate, as Social
Security is one of our Nation's most important programs and constitutes
our government's largest expense, consuming approximately one-quarter
of our Federal budget and growing. It deserves our Nation's attention.
Protecting the most vulnerable beneficiaries and stopping Social
Security from hemorrhaging precious dollars through fraud and benefit
misuse is important and serves as a shining example of what Members of
Congress can achieve for the American people when we work together.
I strongly urge my colleagues to vote ``yes'' and give workers and
beneficiaries the protections that they deserve.
Mr. Speaker, I reserve the balance of my time.
Mr. MATSUI. Mr. Speaker, I yield myself such time as I may consume.
Today, we have before us the Social Security Protection Act. This
legislation was developed over several years in conjunction with the
Social Security Administration, its Inspector General, beneficiary
representatives and others. The bill reflects a preconference agreement
negotiated with the other body on a bipartisan basis and is supported
by the Consortium for Seniors With Disabilities, the National Alliance
for the Mentally Ill, the Association of Administrative Law Judges, the
National Organization of Social Security Claimants' Representatives and
others.
I would like to take a few moments to highlight several items in this
bill. The first deals with representative payees. Nearly 8 million
Social Security and SSI beneficiaries who are unable to manage their
own benefits have representative payees, including children, the
mentally impaired and the very frail elderly. Most payees work hard to
ensure that the benefits are spent to meet the beneficiary's needs.
However, in some instances SSA's screening process for determining who
should serve as a payee has failed to prevent the misuse of these
benefits. This legislation gives SSA the tools it needs to reissue
benefits that are misused. It provides for penalties for those who
would take advantage of some of our most vulnerable citizens. It also
strengthens Social Security's oversight of these payees.
Second, the bill helps individuals with disabilities gain greater
access to legal representation when filing for benefits. Social
Security disability insurance beneficiaries already have this access,
and the bill extends it to SSI claimants, as well, so they can get the
needed help and ensure that their applications are fully considered.
Finally, and very importantly, the bill prohibits paying Social
Security benefits to fugitive felons and to those who have violated
probation or parole. It is my strong belief that we should not be
supporting fugitives who are fleeing the law, and this bill will help
bring them to justice.
Now, I would like to mention one provision in the bill that has
generated some controversy. This is the provision that would modify an
exemption to the government pension offset, or known as GPO, that is
being used by some workers but is not available to all. My colleagues
from Texas have discussed this specific provision in more detail during
the debate on the rule and will discuss it further on this bill, but
the larger issue here itself is the GPO. Across the country, people who
have worked hard all their lives are unexpectedly faced with the loss
of Social Security benefits that they had been counting on because of
the GPO. The GPO, which was created in the 1970s and phased in during
the 1980s, was designed to provide roughly equal treatment between
people who work under Social Security and pay into the system and those
who do not. It was designed to end a disparity between couples where in
one couple, both members paid into the Social Security system and in
another when one spouse paid into the system and the other spouse paid
into a State retirement system. Unfortunately, we now know that the GPO
often produces unfair results. It is a rough tool that clearly needs
adjustments.
Let me illustrate my point. Research shows that a widow needs 80
percent of the income needed to support a couple. Because of the GPO,
the couple's income from Social Security can drop to zero when the
husband dies. On average, the reduction caused by the GPO is $421 per
month, which cuts the average widow's benefit in half, jeopardizing her
ability to keep up with fixed costs of housing, health care and others
that still exist after the death of her spouse.
We tried to address some of these problems with the GPO during the
committee markup last year, but we were rejected on party-line votes.
We were also denied the opportunity to address the larger GPO problem
in the Rules Committee when the bill came before the House last April.
Finally today, my good friend from Texas (Mr. Frost) attempted to bring
forward for debate a bill that would fully repeal the GPO, and he was
denied that opportunity.
The will to solve the problem with the GPO is clearly an issue of
priorities. My Democratic colleagues and I have been prevented from
bringing this issue before the Congress over and over again, while my
friends on the other side of the aisle have continued to push policies
that benefit the wealthy at the expense of this important issue.
For example, the GPO affects 400,000 hardworking Americans every year
and eliminating it would cost $31 billion over 10 years. Not $800
billion, not $1 trillion, but it would cost $31 billion over 10 years.
In contrast, the 200,000 households that make more than $1 million each
year will see $90 billion in tax cuts over that same period. That is
half as many people being benefited at three times the cost. There are
other examples of misplaced priorities. Congress could and should close
corporate tax shelters and prevent companies from incorporating
offshore. That would save $30 billion over a 10-year period and that
amount would actually take care of dealing with the 10-year period of
eliminating the GPO completely.
This is an issue that should not go unaddressed any longer, and I
hope that the Congress will make it a priority for consideration this
year. While I am disappointed that we are not addressing this important
issue today, there are many other provisions in this bill that I
mentioned that will strengthen the Social Security system, and I intend
to support this bill; but it is my hope that we do address the issue of
the government pension offset because it is creating a great deal of
consternation and damage to many people who obviously lose their
spouse. I support the legislation, but I just hope that we can take
some action on the GPO in the future.
Mr. Speaker, I reserve the balance of my time.
Mr. SHAW. Mr. Speaker, I yield 2 minutes to the gentleman from
California (Mr. Herger), a member of the Committee on Ways and Means.
Mr. HERGER. Mr. Speaker, I rise in strong support of the Social
Security Program Protection Act. This bill contains important
provisions to better protect disabled Americans, prevent fraud and
abuse in Social Security programs, and help disabled beneficiaries
return to work.
Over the years, the Committee on Ways and Means, on which I serve,
has taken a number of steps to better protect Social Security
recipients and other taxpayers. The bill we are considering today will
make an important contribution to those continuing efforts.
I commend the gentleman from Florida (Mr. Shaw) for his leadership
and persistence on this legislation over the course of several
Congresses. I particularly want to thank him for including
[[Page H458]]
provisions that will help bring criminals to justice, rather than
subsidizing their flight, by preventing convicted fugitive felons and
parole or probation violators from getting Social Security checks.
These provisions build on my previous legislation that now has
successfully blocked prisoners and fugitive felons from getting
illegally millions of dollars in supplemental security income checks.
Please join me in supporting this legislation.
Mr. MATSUI. Mr. Speaker, I yield 3 minutes to the gentleman from
Texas (Mr. Hinojosa).
Mr. HINOJOSA. Mr. Speaker, I rise today on behalf of the teachers in
the State of Texas in strong opposition to this legislation.
H.R. 743 turns a 1-day loophole, which was a minor inconvenience,
into a 5-year career deterrent. My office is flooded with letters from
justifiably concerned teachers that do not want to be forced out of the
classroom even one day earlier than when they are ready.
Mr. Speaker, I would like to know if the supporters of this bill are
aware of the teaching shortage crippling our education system. Clearly
they are not or they would not support the legislation before us today.
They would not force teachers in Texas and Georgia to choose between
retirement benefits and a career educating our children. If my
colleagues were aware of these critical shortages, they would have
surely stripped this provision from the legislation when they had an
opportunity to do so almost a year ago. If they were aware of the
growing teacher-student ratios in public schools, they would definitely
honor our teachers with the retirement benefits they deserve by
repealing the WEP and GPO. It could easily be done by passing H.R. 594.
This bill, with 285 bipartisan cosponsors, would end this inequity not
only for Texas teachers but for government employees throughout the
country.
In 2002, 376,000 public servants had their Social Security spousal
benefits affected by the GPO. Forty percent of these were widows and
widowers, and 73 percent were women. These are hardworking people who
are relying on full spousal benefits to live comfortably in their
retirement. Many learn of the GPO when it is too late to change their
retirement plans.
Yesterday, my office had the pleasure of speaking with Mrs. Carolyn
Martin, a school librarian at Gregory-Portland High School in the
coastal bend of Texas. Mrs. Martin was understandably concerned about
her own future, but much more focused on the future of a teacher at her
school who recently lost her husband over the holidays. This teacher
has two children in college and, if H.R. 743 passes, will not be able
to collect her widow's benefits under Social Security if she wants to
stay in the classroom.
Mrs. Martin characterized the issue best. She said, ``Social Security
is the difference between a minimal standard of living and a dog-food
diet in retirement.'' She was outraged, as am I, and again I quote,
that ``millionaires can collect Social Security in this country but not
Texas teachers.''
Mr. Speaker, I implore my colleagues to consider the consequences of
this vote today. Vote against H.R. 743.
Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
I would like to point out at this time that even under this bill, the
offset is only $2 for every $3 of pension received, whereas those of us
who are going to depend on Social Security, those that depend on Social
Security, the offset is a dollar for dollar. So the teachers that
people are talking about and public employees that this might affect,
they are still getting a much better deal than people who have paid
into Social Security.
Mr. Speaker, I yield 1 minute to the gentleman from Texas (Mr.
DeLay), the majority leader.
Mr. DeLAY. Mr. Speaker, this is a very important bill, and I rise in
strong support of its passage; but I want to take just a few minutes to
speak to a particular provision in this bill and the unfortunately
contentious debate that surrounds it.
There is a lot of misinformation out there about the government
pension offset provision, and I want to make sure everyone understands
what we are talking about today. Under Social Security, spouses of
covered workers who do not work outside the home themselves are
entitled to spousal benefits. But if both spouses work, their spousal
benefits are reduced, or offset, one dollar for every dollar of Social
Security benefits that they themselves earn. This is true for every
single couple in America that is covered by Social Security.
In Texas, many of our school districts have opted out of the Social
Security system, instead using the Texas teachers retirement system, so
that those district teachers and staff pay into the TRS, not Social
Security. As a matter of fairness, the law says that if you pay into a
different retirement system, like TRS, then your Social Security
spousal benefits are offset by the benefits that you accrue in the
other system. This is only fair, and it has been the law for a
generation.
Unfortunately, a loophole exists in that law that says even if you
work your entire career in the teacher retirement system and then work
for just one day in another school district that uses Social Security,
you are suddenly entitled to full spousal benefits under Social
Security, as if you only worked one day in your entire life.
That is simply unfair, Mr. Speaker.
The offset law is in place to protect the spirit of Social Security,
and the loophole violates that spirit.
{time} 1430
Opponents of this provision are correct, though, when they say Texas
teachers have been targeted for unfair treatment. They have been
targeted by their unions, Mr. Speaker, who have spread misinformation
about the spousal benefit loophole. Not only has that misinformation
been spread about this debate, but it is poisoning the retirement
planning of deliberately misinformed Texas teachers.
In recent months some of our offices have gotten calls from single
teachers who have been led to believe by their unions that they could
qualify for the spousal benefit loophole when they have never even been
married. That is the outrage, Mr. Speaker. Not this bipartisan effort
to protect the Social Security system from waste, fraud, and abuse.
Teachers in Texas and around the country will be just as protected by
this bill as everyone else, which is the whole point of the Social
Security system in the first place.
We are doing the right thing, and I urge my colleagues to vote yes.
Mr. MATSUI. Mr. Speaker, I yield 2 minutes to the distinguished
gentleman from the State of Texas (Mr. Green).
Mr. GREEN of Texas. Mr. Speaker, even though I hate to disagree with
another Texan, particularly the majority leader, but let me tell the
Members the real story. It is not the unions that are the problem.
Congress made in 1983 Social Security participation by some local
governments voluntary, school districts. In Texas, very few school
districts participate in Social Security because they have a teacher
retirement system. Some do. But the problem we need to address in this
legislation that we are not and it makes it worse is that we have a
widow's benefit under Social Security.
I do not care if they have never paid into Social Security at all.
They receive a widow's benefit if they were married to someone for more
than 10 years. And we have cases in Texas that educators, not just
teachers, custodial staff, lunchroom staff, administrators, maybe even
superintendents, the highest paid, but it covers so many people that
they may work under that system their whole life. They are career
educators, and yet they are married to someone who pays into Social
Security for over 10 years, maybe 30 or 40 years, and when their spouse
passes away, that person may be receiving teacher retirement then.
All of a sudden, they say, I should get my spousal benefit because I
am a widow. Tough luck. That spouse they may have been married with for
30 years, they receive very little, in fact, almost nothing under their
Social Security benefits.
That is what is wrong with the current law. That is why Texans
innovatively have found a way, okay, we will go work a day. That is a
loophole. Let me tell my colleagues I have watched lots of loopholes
pass through this House in my six terms, but I am glad for one time
maybe teachers are benefiting from it.
But that is why we need to reform the Government Pension Offset, and
[[Page H459]]
that is why I wish the committee would deal with it. But, in all
honesty, this is making a bad situation worse, because we will have
Texan teachers who have committed their lives to our public
schoolchildren and they will be retiring before this bill is effective
if they have their magic number of years plus age, and they will retire
because they will not want to lose their spousal benefits.
Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
I tell the gentleman from Texas that I know he feels passionate about
this and I can agree with his motivation with regard to this, but the
simple fact arises that there is an offset for those where we have a
spouse and a worker both paying into Social Security. We simply bring
them pretty close down to where some people who are paying into Social
Security and work every single day and pay under the Social Security
program, and still we give the people he is talking about a better deal
than the people who have really labored under Social Security only.
Mr. Speaker, I yield 10 minutes to the gentleman from Texas (Mr.
Brady).
Mr. BRADY of Texas. Mr. Speaker, I rise on behalf of the 99 percent
of the seniors in America who do not have a special loophole. I rise on
behalf of the 99 percent of the widows in America who do not have a
special loophole.
What we are discussing today is a situation where a very select few
in America, sort of a second class, a higher class of citizens in
America, get to keep a lot of Social Security, where their next-door
neighbor who has paid into Social Security all their life get to keep
much less.
What we are talking about here is a special loophole. The way it
works today is that most of us pay into Social Security. My wife pays
into Social Security. The husband pays into Social Security. But there
are some who work for local governments or who are teachers like in
Texas where they do not contribute to Social Security at work. They
have a substitute, in this case a teacher retirement system. That is
where their payroll taxes go. And very few of them have found a
loophole in the law from 25 years ago that allows them to escape the
formula that everyone else in America is applied to and receive much
more in benefits than we will ever dream of receiving.
Here is the way the loophole works. In Texas, a teacher works their
whole life, but they do not contribute to Social Security. Under this
loophole, if they will take their last day and go to another school
district and pay that school district to work for them, think about it,
they pay $500 so they can work one day at minimum wage for a school
district. And, in return for working that one day at minimum wage,
contributing about $3 into Social Security, they receive on average
$93,000 of Social Security retirement that no one else in America gets,
literally no one else in America gets, the teacher in New York does not
get, the nurse in Iowa does not get. The cleaning lady in our offices
up here does not get this.
Let us compare how it works in real life so we can all see how it
affects us and just what this loophole means. Take a look at the
average Social Security recipient in America. The husband is getting
about $1,000 a month for Social Security; the wife's monthly retirement
is $700. For most of us, almost everyone who pays into Social Security,
when that husband dies and the widow has her benefits, for 99 percent
of America her benefits are going to be $1,000 a month, using this
example, which, by the way, is exactly the average for Americans. For
those who are in government pensions, the ones who do not pay into
Social Security, they receive more. Those widows receive $1,233 more.
They keep more of Social Security, having not paid into it, than those
who have paid their whole life into it. That is the way the formula
works.
But under the loophole we are closing today, it is even more
outrageous. If we leave this loophole open, the teacher who only worked
one day in Social Security will receive $1,700 in monthly benefits, far
greater than the widow who worked her whole life in Social Security.
Amazingly, the loophole permits a spouse who only contributed to Social
Security for one day to receive so much more than the widow who worked
her whole life in Social Security, her whole life, and who receives a
pittance of what this loophole provides for \1/100\ of 1 percent of all
Americans.
We cannot have two classes of families in America, those who have
loopholes for Social Security and those who do not. This loophole is
unfair to working families. It drains hundreds of millions of dollars
from the Social Security Trust Fund, which is why senior groups say
close this loophole now. And it deserves to be closed.
Let me make a final point here. Under this loophole in Texas today,
we have great teachers. We have wonderful teachers. My sister-in-law is
one. We are here because of our teachers. But teachers are inherently
fair, I think, like the rest of Americans; and if we look at loophole
today, this college professor who worked one day in Social Security
receives a ton of the money, but the cleaning lady in our offices
receives a small fraction of it. If we leave the loophole open, the
school superintendent who makes $200,000 a year keeps a ton of Social
Security. The checkout lady at the grocery store who has worked her
whole life and still working now, she gets a pittance of it. The
teacher in Texas gets a ton of money. The teacher in Iowa and Ohio and
New York and California gets a pittance.
Those who want to keep this loophole open want to create two classes
in America. It is inherently unfair to do that. It is right to close
this loophole. It is wrong to have two classes of families in America.
It is time to make Social Security fair.
Mr. LAMPSON. Mr. Speaker, will the gentleman yield?
Mr. BRADY of Texas. I yield to the gentleman from Texas.
Mr. LAMPSON. Mr. Speaker, one quick, simple question. Who earns the
benefits that the teacher's spouse, who ultimately goes off and takes
advantage of that loophole, who earns the benefits he or she is trying
to get?
Mr. BRADY of Texas. The husband.
Mr. LAMPSON. The spouse earns them. Those are earned dollars; right
or not?
Mr. BRADY of Texas. Yes.
Mr. LAMPSON. They are earned dollars?
Mr. BRADY of Texas. Yes.
Mr. LAMPSON. Mr. Speaker, so what we are going to say is we will
dilute what was earned by that family. Yes or no?
Mr. BRADY of Texas. No.
Mr. LAMPSON. Explain.
Mr. BRADY of Texas. Mr. Speaker, because in America when both spouses
pay into Social Security, the formula, the way it works, is that if
their husband passes away, which normally happens first, she keeps all
of her Social Security. Then she keeps all of his minus hers. That is
the formula. For those in government pensions, like teachers, it is
almost the exact same formula. They keep their retirement plus their
husband's minus only \2/3\.
So I appreciate this is an issue dear to the gentleman from Texas's
(Mr. Lampson) heart, but under the formula today, that teacher, that
government worker already keeps more of their spouse's Social Security
than the rest of America. And if we keep the loophole open, they gain
nearly twice as much as the family that worked exactly the same hours,
paid exactly the same money in, and whose husband died exactly at the
same time. We are creating those two classes of families in America,
and that is what we are trying to stop.
Mr. LAMPSON. But all paid in by the husband and spouse?
Mr. BRADY of Texas. Mr. Speaker, the husband paid in in one; the
husband and wife paid in in both; and the husband and wife, the widow
who paid her whole life, she gets less. Two classes of citizens in
America. And nowhere do I know in America can one work one day,
contribute $3, and take home $93,000 in their pocketbook that the widow
next door who worked her whole life will never, ever see. It is time to
close this loophole.
Mr. MATSUI. Mr. Speaker, I yield 1\1/2\ minutes to the distinguished
gentleman from the State of Maryland (Mr. Cardin), member of the
Committee on Ways and Means.
(Mr. CARDIN asked and was given permission to revise and extend his
remarks.)
Mr. CARDIN. Mr. Speaker, I thank the gentleman from California (Mr.
Matsui) for yielding me this time.
[[Page H460]]
Let me concur in the comments that the gentleman from California (Mr.
Matsui) made earlier where I think he gave a very good explanation, the
Government Pension Offset and the issues concerning it and then what is
in this bill generally, which have very good things to help shore up a
system that is very important to millions of Americans, our Social
Security system.
I listened to debate about the Government Pension Offset and the
problems in Texas, and I think the point that many of us are trying to
raise is that there may be a problem in what is happening in Texas, but
why are we not reforming the Government Pension Offset? The
distinguished gentleman from Florida (Mr. Shaw) has a bill in to reform
that. The gentleman from Louisiana (Mr. Jefferson) has a bill in to
deal with it.
It is an issue that cries out for reform because we are not treating
particularly our lower-wage workers appropriately with the Government
Pension Offset. I think we have all acknowledged that this is an issue
that we need to take up. This was an excellent opportunity for us to
correct it, and we will lose that opportunity.
In regards to the underlying bill itself, I compliment the gentleman
from Florida (Mr. Shaw) and the gentleman from California (Mr. Matsui)
and Commissioner Barnhart and our colleagues on the other side of the
Capitol for working together to develop a bipartisan bill to strengthen
Social Security, particularly as it relates to individuals who have
disabilities who are collecting Social Security, ``representative
payees.''
We know, we have reports, of people who are not able to manage their
own money. We know that in 2,400 cases over $12 million dollars has
been lost, and this bill will help clean that up, and that is important
for us to deal with that.
We also know, in regards to the Ticket to Work law and the Work
Incentives program that helped disabled individuals, that we are
strengthening those programs. We are helping claimants who are applying
for SSI to get the funds that they need.
So there are important provisions in this bill that have been worked
out by Democrats and Republicans working together. That is the way we
should work. It is a good bill. But we should have taken care of the
Government Pension Offset, and we have not done that in this bill.
Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
In just a brief response to the gentleman from Maryland, he correctly
described my intentions, but the bill has not yet been prepared. As
soon as we get some figures back, I intend to work closely with the
gentleman from California (Mr. Matsui) and other members on our
Committee on Ways and Means to make this a bipartisan effort on the
Government Pension Offset, where it is still very much a work in
progress, and we want to be sure that we can get it right. If it can be
bipartisan, I think the gentleman from California (Mr. Matsui) and I
have both learned that we can accomplish a lot more by working together
than working separately.
Mr. Speaker, I reserve the balance of my time.
{time} 1445
Mr. MATSUI. Mr. Speaker, I yield 2 minutes to the distinguished
gentlewoman from Texas (Ms. Jackson-Lee).
Ms. JACKSON-LEE of Texas. Mr. Speaker, I thank the distinguished
ranking member and the chairman, and I thank my good friend from Texas
as well. I will try to speak quickly. Many of us are managing a number
of activities, and committees are going on as we speak.
I just quickly want to say that although we appreciate the work of
this bill, we have to rename it. It is called the ``Forced Work Bill.''
I think what is going on on this floor is a lot of smoke and mirrors.
There are good points to this bill. Someone got up on the floor and
said you are asking the widows and others to do things and to get
benefits that others are not. That is absolutely incorrect. If we had
supported the Frost motion to fix this problem by stripping section
418, which would penalize firefighters, police officers and teachers,
we would not be standing here saying vote ``no'' on this bill.
What this bill is doing is those who are in an independent pension
system are now forbidden from getting their spousal benefit. It is the
benefit that their spouse is owed. It is not that they are getting any
monies that are not owed them; it is that they are prohibited from
getting those monies because they are not in the Social Security
system. If they are not in the Social Security system, they are
forbidden from getting the money.
All we are asking to do is support teachers, police officers,
firefighters and other public servants. The GPO affects many
individuals, but it especially is harmful to these public servants. And
we are not snatching anything from someone who has gotten this benefit.
We are trying to get what is ours. The only reason we cannot get it if
we happen to be a teacher, policeman or firefighter is because we are
not in the Social Security system.
So this is a lot of smoke and mirrors; and if I have to stand with
anyone, I am going to stand with the hardworking teachers, firefighters
and police officers, who are merely trying to get what is theirs. If we
do not remedy this problem, then you force those who have worked all of
their lives and are due for retirement to work another 5 years in order
to get equity for something that is owed to them.
I wish our colleagues would tell the truth and stand for teachers,
firefighters and police officers, like the rest of us.
Mr. Speaker, I am saddened to have to come to the floor today to
speak out yet again against H.R. 743, The Social Security Protection
Act of 2003. There is much good in this bill. If the Majority
Leadership would take out the small error that will hurt our teachers
and firefighters and police, this bill could be in front of the
President soon. That would be a great service.
Social Security represents a covenant between the U.S. Federal
Government and the American people. It is a promise that if a person
works hard, and contributes into this investment program, that when it
comes time for them to retire--their government will ensure that a fair
benefit is there for them. It seems that too often, criminals take
advantage of the trust between the Social Security Administration and
the seniors and disabled Americans it serves. They misuse Social
Security benefits. Such activity is worse than just stealing, because
it threatens the confidence that the American people have in their
government. That confidence is the foundation of our democracy.
So last Congress, I joined with every voting Member of this House in
support of the The Social Security Act of 2002. It was an excellent
piece of bipartisan legislation, which would have made great strides
towards cutting down on the abuse of the Social Security system. Most
of the major provisions of the that bill are reflected in the bill
before us today, and I still support them. The bills would both protect
Social Security recipients by mandating reissue of funds when their
payments are misused. Representative payees who misuse a person's
benefits would be forced to reimburse those funds, plus would be
subject to fines of up to $5,000 if they knowingly provided false or
misleading information.
The bills would allow the Commissioner to withhold benefits from
fugitive felons, and persons fleeing prosecution. The bills also
provide for numerous improvements to the present system, which would
reduce fraud and abuse of the program. Obviously there is a lot of good
in the last bill and in this bill as well.
The last bill passed unanimously in the House in the 107th Congress,
and similar legislation cleared the Senate. But unfortunately this
important legislation got hung up at the end of 2002. With such support
and progress, this should have been an easy piece of work to get
through this year, and a score for the American taxpayers. Instead, a
wrench has been thrown into the works, through the addition of a small
section that has provoked a deluge of phone calls into my office from,
it seems like, every schoolteacher in my district.
The Texas branch of the American Federation of Teachers describes
Section 418 as ``poison for Texas school employees.'' That section
relates to the Government Pension Offset. At present, if an individual
receives a government pension based on work that was not covered by
Social Security, his or her Social Security spousal or survivor benefit
is reduced by an amount equal to two-thirds the government pension.
This provision of current law is called the Government Pension Offset
(GPO). However, under the ``last day rule,'' an individual is exempt
from the GPO if he or she works in a job covered by Social Security on
the last day of employment.
Many school districts offer teachers non-Social Security government
pensions, so until now many teachers have been forced to take
[[Page H461]]
advantage of the ``last day'' loophole. Just before they retire,
they get a job in a business with a Social Security pension for a day,
in order to receive their deserved benefits. This is a ridiculous
system, and the appropriate way to fix it would have been to repeal the
GPO. In fact, I have co-sponsored H.R. 594 with my colleague from
California, Buck McKeon, and 285 others to do just that.
Instead, the bill before us today closes the loophole by forcing
teachers to work for the last five years of their careers in an
appropriate job. That may force many teachers to retire early from
teaching. I am usually all for getting rid of loopholes, but now is no
time to be ``sticking-it'' to teachers--just as we are trying to leave
no child behind, just as we have a shortage of qualified teachers in
many areas. This could drive many people away from careers in teaching.
For example, I received one call from a woman in my District who was
a teacher earlier in her life. Her husband recently passed away and she
has been contemplating going back into teaching. But she has been
warned that she could actually jeopardize her financial future by going
to work. As a widow, she will be entitled to her husband's social
security benefits. However, if she starts to teach in a school district
with a government non-Social Security pension, she could lose $360 per
month in retirement benefits--over $4000 per year.
Why should she risk it? If H.R. 743 passes today, it won't be only
she that loses. It will be our nation's children who lose--an
experienced, intelligent teacher.
The GPO issue needs to be addressed, but not today. Right now, we are
giving money to criminals who are beating our system and undermining
confidence in the future of Social Security and the government as a
whole. We need to protect Social Security, and we need to do it soon.
But I will wait until we can do it without attacking our teachers, and
penalizing our children.
I am proud to stand with my Democratic colleagues from Texas, to
fight for our teachers. I will vote ``no'' on H.R. 743 unless the
offending provision is taken out, and urge my colleagues to do the
same.
Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I would have to correct the previous speaker when she
says they do not get any of their survivor benefits and advise her
that, yes, under this bill, the teachers that she is referring to get
one-third of the survivor benefits, even after the offset, whereas if
you have a similar situation where a teacher teaching where there is
not this loophole and pays into the Social Security system, generally
in that same example they get zero. So I just want to be sure the
record is correct on that.
Mr. Speaker, I reserve the balance of my time.
Mr. MATSUI. Mr. Speaker, I yield 1 minute to the gentlewoman from
Texas (Ms. Jackson-Lee).
Ms. JACKSON-LEE of Texas. Mr. Speaker, let me just quickly say I
appreciate the attempt to correct some portions of this bill, but that
is not enough.
Again, let me emphasize the one-third. What I am suggesting is that
the only reason these individuals are penalized is because they are in
a parallel system; they are not in the Social Security system, which in
fact helps to relieve the Social Security system from the burden of
more people being in it.
I would only say, do you not think if you worked a full-term and you
are owed these benefits through your spouse that you deserve the full
benefits and not one-third? Why penalize firefighters, police officers,
and teachers? I will support these Texas public servants having full
benefits.
Mr. SHAW. Mr. Speaker, I yield 1 minute to the gentleman from Texas
(Mr. Brady) a member of the Committee on Ways and Means.
Mr. BRADY of Texas. Mr. Speaker, I would like to make two points.
This bill does not address firefighters or police officers or teachers,
and not even all the teachers in Texas. It applies to \1/100\ of 1
percent of all Americans who have a special loophole.
The point my good friend from Houston was making is absolutely wrong.
They do not receive less money because they do not pay into Social
Security; they actually get more money than the widows and the families
who have spent their whole life paying into Social Security. They
already get this. Under this loophole, they would get, for $3 of work,
1 day, they receive $93,000 on average in retirement; and our widows in
hospitals and widows that clean our offices and widows, like my mom,
will never see that money.
This is about not creating two classes of citizens in America, those
with a special loophole and those without.
Mr. MATSUI. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I would just like to make an observation. I would not
have so many problems with this were it not for the fact that there are
many other loopholes that have actually been passed through this House
over the last few years.
For example, if a corporation in the U.S. goes to Bermuda to avoid
U.S. taxes, we tried time and time again to close that loophole. But
the other side of the aisle, in fact the gentleman who just spoke,
denies the ability for us to even bring such a bill to the floor.
I guess that is where the frustration lies, is when we close
loopholes, we pick on the people that are firefighters and teachers;
but we let large corporations who avoid U.S. taxes go from that.
Mr. Speaker, I yield 3 minutes to the distinguished gentleman from
the State of Texas (Mr. Lampson).
Mr. LAMPSON. Mr. Speaker, I thank the gentleman for yielding me time.
Mr. Speaker, this is a complex issue and one that touches an awful
lot of us in different kinds of ways. While I certainly support the
efforts that this committee has made in developing this bill, and I
know how important the bill is, I am still going to vote against it and
will oppose it and ask my colleagues to do so.
There are some 50,000 teachers across the State of Texas who will
indeed be adversely affected by this legislation. The bill includes
provisions which I consider to be catastrophic for Texas teachers.
Provisions in the legislation would, in effect, reduce the amount of
combined benefits that Texas teachers could depend upon after
retirement.
There are many Texas teachers who have worked and paid into Social
Security in other jobs. My wife and my daughter are two who have done
just that. They have moved, and they have paid into the teacher
retirement system now. Susan has paid into the Social Security system
for many years in other jobs that she held before she decided to teach.
Because of her involvement in the teacher retirement system and because
she has paid into her pension fund, she will be adversely affected by
the government pension offset. Those are benefits that I earned because
of my payment into Social Security.
Teachers do not make a great deal of money in the State of Texas, and
in most other places as well; and it is hard to entice them to stay in
the classroom. This legislation is going to have broad implications for
those teachers and will most likely force many of them to leave this
profession early, most likely, from our public schools. What impetus
does an experienced teacher have to stay in the classroom and continue
teaching, if the government is in effect going to significantly reduce
his or her retirement payment potential after this year?
This bill fails to address a larger issue for public servants in this
country. The government pension offset unfairly penalizes teachers and
many other government workers, the employees who mostly pay into a
public pension plan. How can we sit by idly while our public service
employees are being penalized for serving their communities? Where is
our loyalty to the first responders that so many of my colleagues have
praised on this floor? When push comes to shove, are we willing to
allow the firefighters and police officers in our hometowns to suffer?
The government pension offset is a deterrent to public service across
this Nation; and if we are to attract the best and the brightest into
public service, such as our teachers, such as my wife, Susan, and my
daughter Stephanie, fire fighters and police officers, we must repeal
this unfair provision. This is money that hardworking American citizens
have earned and are indeed entitled to.
I truly wish, and I intended to make the point the gentleman from
California (Mr. Matsui) made a minute ago, I wish we would work as hard
in repealing the loophole that has allowed corporations to avoid the
payment of $40 billion in taxes each year by moving their corporations
offshore.
I urge my colleagues to consider a ``no'' vote on this bill, as I am
going to vote against H.R. 743. Our public servants deserve our
support.
[[Page H462]]
Mr. SHAW. Mr. Speaker, I reserve the balance of my time.
Mr. MATSUI. Mr. Speaker, I yield such time as he may consume to the
gentleman from Texas (Mr. Green).
Mr. GREEN of Texas. Mr. Speaker, again I thank our ranking member on
our Subcommittee on Social Security and also the chairman of the
Subcommittee on Social Security. I know we have a difference of opinion
on this issue; and I guess it is frustrating, because with what is
happening with our general budget, this year, this Congress and this
government will take $155 billion and borrow it from the Social
Security trust fund, and what is it paying for? A lot of folks will say
it is paying for the war in Iraq. No, it is also paying for tax cuts
that this House passed on two different occasions. But by this bill
today, we are going to take away these same Social Security trust funds
that are for these widows and people who paid into Social Security.
Again, let me explain to my colleagues, these are people who may
never have paid into Social Security. If they did, they are subject to
government pension offset, like everyone. But these people never paid
in. They were educators or firefighters or police officers in a system
that was not part of Social Security, but they paid into their own
pension fund; and if their spouses die and they have been married for
less than 10 years, we will not pay them their spousal benefit.
I do not know how much harder this Congress can get. When we talk
about giving tax cuts to everybody in the world, and we let companies
move their headquarters overseas as a sham, and yet we are going to
remove the Social Security benefits from a widowed educator, and
typically 80 percent of them are women, and her only problem was that
she taught school or worked in the cafeteria or helped clean up
schools. Because their husband was a Social Security beneficiary, he
paid into Social Security, maybe for their whole work life, and so you
remove it.
It is just frustrating that this bill is going to make a bad system
even worse. That is why I rise in opposition to H.R. 743 and urge my
colleagues to join in voting against it.
In many ways, 743 is a good bill, and I know there are some good
parts in it, and I heard my colleagues on both sides. It would help
stem fraud and abuse in the Social Security system. Well, I support
that. I agree that fugitive felons should not collect Social Security
benefits. And I support a number of other provisions. But, in all
honesty, if we have a fugitive felon getting Social Security benefits,
why are they still a fugitive?
Unfortunately, this has been wrapped up in an explosive issue that
has caused serious harm to educators who are widowed by someone who has
paid into Social Security.
We are all familiar with the unfair government pension offset; 285
Members of this House have cosponsored legislation to reform the GPO.
This provision of current law keeps public employees from collecting
full spousal benefits if they receive a pension based on State, local,
or Federal Government employment not covered by Social Security. This
provision is unfair and targets government workers at the Federal,
State, and local levels. Again, 285 of us think it ought to be
reformed.
The GPO is a problem for many public servants, but it is especially
bad for women. Eighty percent of the Texas school teachers and retirees
are women, sixty percent of that group are married, and almost all of
them are eligible for Medicare through their husbands; but none of them
are eligible for their spousal benefit because of the GPO under this
bill.
After a lifetime of being underpaid as teachers, they depend on their
Social Security widow's benefit to make up for their retirement, but
the GPO takes that benefit away. That is why, again, the repeal of H.R.
594 is so popular.
The bill by our colleagues, the gentleman from California (Mr.
McKeon) and the gentleman from California (Mr. Berman), have, again,
garnered 285 bipartisan cosponsors. We had an opportunity to address
this in H.R. 743; but instead of fixing the GPO, this bill makes it
harder for Texas teachers to collect the full spousal benefit. Again,
285 members agree the GPO is unfair and should be repealed. We should
not penalize Texas teachers for figuring out a way to do what this
Congress will not do.
I urge my colleagues to stand for public servants everywhere and vote
against H.R. 743.
{time} 1500
Mr. MATSUI. Mr. Speaker, may I inquire as to how much time I have
remaining.
The SPEAKER pro tempore (Mr. Isakson). The gentleman from California
(Mr. Matsui) has 7\1/2\ minutes remaining; the gentleman from Florida
(Mr. Shaw) has 12\1/2\ minutes remaining.
Mr. MATSUI. Mr. Speaker, I yield the balance of my time to the
gentleman from Texas (Mr. Turner), the ranking member of the Committee
on Homeland Security.
Mr. TURNER of Texas. Mr. Speaker, it does not happen very often on
the floor of this House where a bill comes forward that has many good
provisions in it, but there is one provision that is so damaging and so
harmful and so unfair that it causes us to oppose an otherwise good
bill. But as my colleagues have heard over and over again today in this
debate, public school teachers in places like my State of Texas and
other government employees feel very strongly that the government
pension offset is wrong, that it must be corrected, the law must be
changed; and this bill provided an opportunity to correct that
injustice.
I know from personal experience how deeply this issue is felt by
public school teachers. It was a couple of years ago in my office that
I had a lady come to see me, and I really did not know why it was she
really wanted to come see me, but my staff had said this lady really
wants to talk to you, she needs to see you. So I said, well, let her
come on, I would be glad to visit with her. I had no idea what it would
be about.
She came and she began to tell me a story that quickly turned to
tears in her eyes when she told me about how her husband had passed
away just a few months before. After his death, she learned that she
would not be able to collect any of the survivor benefits that she
believed, rightfully, her husband had earned by a lifetime of
contributions to the Social Security system. She explained to me that
the law apparently said that because she was a public school teacher,
an honorable profession, that somehow the law said that she could not
qualify for survivor benefits that her husband had contributed for
years to ensure that she would get. She told me, she said, if I had
done anything else, if I had just worked in a private company, they
tell me that I could get the survivor benefit; but because I am a
teacher and receiving a benefit from the teacher retirement system,
that I am disqualified. Her tears turned to anger as she said to me,
this is wrong. And as I have learned over the years since, teachers all
across my State of Texas feel very strongly about the unfairness of
this provision of the Social Security law.
So I think with an overwhelming majority of this House having signed
on to a bill to eliminate this offset, that we should have, in good
conscience, taken the opportunity in this legislation to have corrected
that unfair provision of the Social Security law.
I recognize that there are some who have logical arguments as to why
this should not be changed, but I will tell my colleagues that after
listening to this widow with tears in her eyes, I became convinced that
she had the better side of the argument. Oh, I know it is going to have
a cost to the Social Security trust fund to provide this benefit to all
of these public school teachers who have had spouses who have passed
away before them, but the reality is that getting it fixed is the right
thing to do.
I would urge my colleagues today to take what will be perhaps
somewhat of a difficult step and join with those of us who have stood
on this floor arguing about this point for this entire hour of debate
and vote against a bill that is otherwise a good bill, to give us the
opportunity to correct what we believe, and many, many public employees
believe, is a very unfair provision of the Social Security law.
I want to commend the gentleman from Florida for his leadership on
Social Security. I know that he differs with us on this issue, but I
hope that the Members who have joined on in supporting the McKeon bill
to correct
[[Page H463]]
this problem will also join with us today to vote against this bill so
that once and for all we can do what is right for our teachers and for
our public employees.
Mr. MATSUI. Mr. Speaker, I yield back the balance of my time.
Mr. SHAW. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, in looking at what is right, it is right to protect
beneficiaries from representative payees who would misuse these
benefits. We all agree on that, whether you are from Texas, Georgia,
California, or New York. It is right to deny Social Security benefits
to fugitive felons and probation parole violators. We can all agree on
that. It is right for this Congress to pass a bill that deters waste,
fraud, and abuse. That is in this bill, and that is the right thing to
do. It helps individuals with disabilities gain access to
representation, and it encourages disabled beneficiaries to return to
work. That is the right thing to do.
Now we get to the hard question: Is it right to close a loophole that
enables some teachers in Georgia and Texas to contribute just a few
dollars to Social Security to receive nearly $100,000 in additional
lifetime spousal benefits? I strongly believe this loophole should be
closed.
Let me give an example which I think would be very helpful to the
Members in deciding how they are going to vote on this issue. Any
worker, corporate, executive, otherwise, or school teacher who pays
into both Social Security and a retirement plan will receive both
benefits based upon their work. However, no worker will receive a full
spouse or widower benefit; those benefits are reduced or eliminated
dollar for dollar by the earned Social Security benefit. Public
employees who contribute to a public employee pension plan instead of
Social Security actually face a lower, a lower offset under this bill
of their spouse or widow benefits than workers who paid into Social
Security their whole career. And that is only $2 for every $3. So these
people who did not pay into Social Security are getting a better deal
than people who paid into Social Security their whole working lives.
Also, this bill has bipartisan support and the support of key
stakeholders, and it does save us money. This same identical bill was
passed, almost identical bill, was passed by the House by a vote of 396
to 28. It passed. And then it passed by unanimous consent in the Senate
with some minor changes, which is the reason we are back here today.
If we were to look at the arguments that have been made today as to
what is fair and what is not fair and apply those same arguments as to
spousal benefits, surviving spouse benefits to people who have paid
into Social Security all their working life, it would cost the Social
Security Administration $1 trillion and would bankrupt the system. This
is what we are facing: basic fairness. I say, apply the law as this
bill outlines it. It is fair. It is the right thing to do. I urge
passage of the bill.
Mr. STARK. Mr. Speaker, today I rise in support of the Social
Security Program Protection Act.
This legislation makes a strong Social Security program even stronger
for the millions of Americans who rely on its benefits for stability
through old age, disability or loss of a loved one. And this bill will
help to protect the promise of economic security for future
generations--a promise we must keep.
I strongly support the protections this legislation provides for some
of the most vulnerable recipients of Social Security. Today, many
beneficiaries are unable to manage their own benefits so a
representative payee is often appointed to do so on their behalf. While
this is undoubtedly necessary, too many seniors and people with
disabilities have fallen victim to fraud and abuse.
This bill makes dramatic improvements to the representative payee
system to help protect beneficiaries. It does so by initiating strict
oversight of representative payees and expanding the ability of the
Social Security Administration to repay benefits that have been misused
or stolen. For many, this puts real financial security back in Social
Security.
Despite the strengths of this bill, I am disappointed, however, that
Republicans refused to accept an amendment I offered to this bill in
the Ways and Means Committee to reduce the Government Pension Offset
penalty. This penalty unfairly reduces or even eliminates Social
Security benefits for millions of teachers, firefighters, police
officers and others who serve the public.
I urge my colleagues to vote for the Social Security Program
Protection Act to extend the promise of retirement security for every
American, today and tomorrow.
Mr. PAUL. Mr. Speaker, I intend to vote for H.R. 743, the Social
Security Protection Act, because it contains an important provision
that was not included in previous versions of this bill. This provision
takes a first step toward ensuring that non-citizens who are
unauthorized to work in the United States do not receive Social
Security benefits. Giving Social Security benefits to illegal
immigrants is a slap in the faces of Americans who pay their entire
working lives into the Social Security system and now face the
possibility that there will be nothing left when it is their turn to
retire. This is why, at the beginning of the 108th Congress, I
introduced legislation, the Social Security for American Citizens Only
Act (H.R. 489), which ensures no non-citizen can receive Social
Security benefits. Therefore, I am pleased to see Congress beginning at
last to address this issue.
However, I wish to make clear my continued opposition to a provision
in the bill that removes the only means by which many widowed Texas
public school teachers can receive the same personal Social Security
benefits, as does every other American. As I am sure my colleagues are
aware, widowed public school employees in Texas, like public employees
throughout the nation, have their spousal Social Security benefits
reduced if they receive a government pension. The Government Pension
Offset even applies if the public employee in question worked all the
quarters necessary to qualify for full Social Security benefits either
before or after working in the public school system.
The Government Pension Offset punishes people for teaching in public
schools. However, current law provides widowed Texas public school
teachers a means of collecting a full Social Security spousal benefits.
Unfortunately, this bill takes that option away from Texas teachers. I
have twice voted against H.R. 743 because of my strong opposition to
the provision removing the only way Texas teachers can avoid the
Government Pension Offset.
Instead of repealing the only means Texas teachers have of avoiding
the Government Pension Offset, Congress should pass H.R. 594, the
Social Security Fairness Act that repeals both the Government Pension
Offset and the Windfall Elimination Provision, another provision that
denies public employees full Social Security benefits.
Congress should also be encouraging good people to enter the
education profession by passing my Teacher Tax Cut Act (H.R. 613) that
provides every teacher with a $1,000 tax credit, as well as my
Professional Educators Tax Credit Act (H.R. 614), which provides a
$1,000 tax credit to counselors, librarians, and all school personnel.
In conclusion, Mr. Speaker, I will support H.R. 743 because it
restricts the ability of illegal immigrants to raid the Social Security
Trust Fund. However, I remain opposed to the provision that punishes
teachers by denying them Social Security benefits for which they would
be eligible if they were not teachers. Instead of punishing teachers,
Congress should be enacting pro-teacher legislation, such as the Social
Security Fairness Act and the Teacher Tax Cut Act.
Mr. HOLT. Mr. Speaker, I rise in support of H.R. 743, the Social
Security Protection Act. This bill will protect the integrity of the
Social Security program for the nearly eight million Social Security
and Supplemental Security Income (SSI) beneficiaries who are unable to
manage their own financial affairs and must have a ``representative
payee'' designated to receive and manage their benefits on their
behalf.
I would, however, like to take this opportunity to discuss an
important Social Security issue that this bill fails to address, the
Government Pension Offset (GPO). This unjust, arcane law prevents
government retirees from collecting a government pension and the Social
Security benefits entitled to them through their spouse's history of
employment.
The GPO current affects 335,000 people, a number that is growing by
15,000 each year. The people hit hardest by the GPO are State and
municipal workers. Public employees like educators, police officers,
and firefighters should not suffer a penalty for dedicating their lives
to public service.
Take, for example, a teacher who has worked for 30 years and with her
husband has managed to raise a family. After her husband passes away,
the law prevents her from receiving most, if not all, of the Social
Security benefits that her husband earned and rightfully belong to her.
She would lose the benefits simply because she worked for the
government making a modest salary.
Mr. Speaker, Congressman Buck McKeon has introduced H.R. 594, which
would address the Government Pension Offset issue. Even though the bill
currently has 285 cosponsors,
[[Page H464]]
the House leadership has failed to bring it up for a vote.
Mr. Speaker, I have heard countless people say that teachers, police
officers and firefighters deserve to be paid better for their public
service. Fixing the GPO is our chance to say thanks to these selfless
individuals whose work has helped make this country what it is today. I
ask my colleagues on both sides of the aisle to urge the leadership to
bring this issue to the floor during this session of Congress.
Mr. REYES. Mr. Speaker, I rise in strong opposition to H.R. 743, the
Social Security Protection Act. I support provisions in the bill to
better protect Social Security beneficiaries from fraud. However, I
cannot support the legislation because it would also seriously harm the
retirement of teachers, firefighters, police officers, and other State
and local government workers in my congressional district of El Paso,
Texas by subjecting them to the government pension offset.
Some public employees in my State have found a way to protect their
retirement benefits from the unfair government pension offset, which
targets public servants by refusing them their full spousal benefits
under Social Security. The bill before us today would block these
employees from protecting their benefits, subjecting them to the
government pension offset and denying them the spousal benefits they
rightfully deserve.
Among those hardest hit by this legislation will be women, and
particularly widows, who very often rely on spousal benefits to make
ends meet in their retirement. Many are not aware of the government
pension offset, and will only learn of it as they prepare for
retirement, when it is too late to make alternative plans.
We need to do more to support those who have dedicated their working
lives to serving the public, rather than undermining their opportunity
for a secure retirement with this bill. Therefore, I have cosponsored
H.R. 594, the Social Security Fairness Act, which would allow all
public employees to collect full spousal benefits.
Mr. Speaker, I urge my colleagues to show their support for teachers,
and all of our hard-working public servants, by opposing this terribly
unfair bill.
Mr. DELAHUNT. Mr. Speaker, I rise today to highlight the inexplicable
failure of the U.S. Congress to address the inequities of the
Government Pension Offset (GPO) and Windfall Elimination Provision
(WEP). For more than 20 years, the GPO and WEP have created enormous
burdens for many public service retirees.
More than half of the Members of this House want change; no fewer
than 285 of my colleagues have co-sponsored bipartisan legislation for
outright repeal of the GPO and WEP. But the House leadership won't even
allow debate on the question.
The legislation before this chamber today will help protect many
vulnerable beneficiaries from fraud and contains many other important
provisions. However, once again, the House missed a perfect opportunity
to repeal both the GPO and WEP.
Both the GPO and WEP unfairly reduce Social Security benefits for
retirees who otherwise qualify, simply because they at some point
worked in jobs covered by another government pension. In particular,
the GPO and WEP penalize those who had short or intermittent careers,
or who blended private jobs with stints in public service.
Often, these are people already losing out in their overall earnings
because they chose to make a meaningful contribution to society in
roles that just don't pay well. Think of those in your community who
teach your children, fight your fires and keep your streets safe.
Chances are, you're thinking of people who are suffering the impact of
the GPO or WEP.
Because most paid Social Security taxes somewhere along the way,
these people planned for retirement fully anticipating both pension and
Social Security benefits. But when these teachers, police officers, and
firefighters retired, they discovered all or much of their expected
Social Security benefits wiped out by the WEP or GPO. In the case of
the WEP, the Social Security benefit is reduced by up to 60 percent. If
the GPO is triggered, it reduces a retiree's spousal benefit by two-
thirds.
A Barnstable teacher wrote to me about her circumstances:
I am a recently divorced woman, age 56, who has worked in
the school district for five years. Before taking this job I
was an at-home mother. Although I get very minimal alimony
(which I don't always receive) I face the grim reality of
what I will live on when--and if--I can retire. Having paid
the Social Security system for many years before having
children, the GPO and WEP would not permit me to collect on
what I paid into the system. I also understand that if my ex-
husband were to die, the amount I would be able to collect
from his Social Security would also be cut.
Countless heart-wrenching personal stories dramatically illustrate
the impact of these unfair benefit reductions. In my home state of
Massachusetts, over 18,000 retirees are being penalized by the WEP.
When it comes to the GPO, almost 15,000 are affected--and over a third
are widows or widowers.
Consider this letter I received from a widow in Hull, MA:
I am being punished because I worked for the Town for the
past 23 years. My husband passed away after only receiving
Social Security disability for six months. He worked 40 years
toward his Social Security. Many people do not know about
this penalty and find out when they go to collect their
Social Security that they cannot receive what they totally
deserve . . .
From a Marshfield, MA teacher:
If my husband should pre-decease me, I am not eligible for
his Social Security and would suffer a serious financial
burden. I stayed at home to raise four children, while my
husband worked six days a week and long hours and contributed
the maximum to Social Security. I reentered the workforce
late in life (to help pay for college tuitions) and made the
mistake of getting employment with our local municipality.
From a 10-year employee of the town of Duxbury, MA:
As I have been a part-time employee, my pension will be
quite small, about $300 a month. I worked many years under
Social Security with full and part-time jobs. As my Social
Security would be reduced from $600 to $400 it does not leave
much to live on, never mind paying for medical insurance.
From a Sagamore Beach widow:
I recently had two more friends die after waiting since
1983 to receive help on the Government Pension Offset issue.
If Congress waits much longer, they won't have many of us
left to help.
It is particularly heartbreaking that retired women comprise over 70
percent of those penalized by the GPO reduction of spousal benefits.
Many sacrificed to stay home and raise children in the 1940s, 1950s and
1960s--then went to work later in life. In retirement, they are hit
especially hard. Not only did they face the challenges of a workplace
that paid them far less than their male counterparts; now they face
similarly diminished opportunities to enjoy their senior years. Many
are widows with meager pensions, who now face drastically reduced
financial support with the death of a spouse--and must also contend
with reduced spousal Social Security benefits.
During this 108th Congress, we had strong support for bills that
would have modified or repealed the WEP and GPO. We had significant
bipartisan endorsement and literally hundreds of senior organizations
calling for action.
In May of last year, we heard compelling testimony about the impact
of these provisions in the House Ways and Means Social Security
Subcommittee hearing. Chuck Canterbury, National President of the
Fraternal Order of Police described why police officers in particular
are penalized by the WEP:
Owing to the physical demands of the job, a law enforcement
officer is likely to retire between the ages of 45 and 60.
After 20 or 25 years on the job, many law enforcement
officers are likely to begin second careers and hold jobs
that do pay into the Social Security system. Even more
officers are likely to ``moonlight,'' that is, hold second or
even third jobs throughout their law enforcement career in
order to augment their income. This creates an unjust
situation that too many of our members find themselves in:
they are entitled to a State or local retirement benefit
because they worked 20 or more years keeping their streets
and neighborhoods safe, and also working at a job or jobs in
which they paid into Social Security, entitling them to that
benefit as well. However, because of the WEP, if their second
career resulted in less than twenty (20) years of substantial
earnings, upon reaching the age they are eligible to collect
Social Security, they will discover that they lose sixty
percent (60%) of the benefit for which they were taxed!
Actuarially speaking, I doubt many officers will live long
enough to ``break even''--that is collect the money they paid
into the system, let alone receive any ``windfall.''
Even if the personal circumstances of today's public sector retirees
fail to move you, consider the fact that it gets harder every day to
recruit and retain people for public service jobs. Compared with the
private sector, public services jobs offer significantly less pay and
benefits. Personal satisfaction, while a powerful motivator, begins to
fade when you realize you won't be able to put food on the table during
retirement. We'll never attract the best possible candidates to public
service unless we remove the stark disincentives characterized by the
WEP and GPO.
Today this Congress failed to address the needs of almost one million
former government employees who have already lost retirement dollars
due to the GPO and WEP. Millions more face losses in the future. These
are people we need, in every community, doing jobs that often keep us
safe and secure in an era of unparalleled uncertainty.
Mr. SHAW. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. All time for debate having expired, pursuant
to
[[Page H465]]
House Resolution 520, the previous question is ordered.
The question is on the motion offered by the gentleman from Florida
(Mr. Shaw).
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. GREEN of Texas. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Without objection, further proceedings on
this motion will be postponed.
There was no objection.
____________________