[House Report 117-482]
[From the U.S. Government Publishing Office]
117th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 117-482
======================================================================
SOCIAL SECURITY FAIRNESS ACT OF 2021
_______
September 20, 2022.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Neal, from the Committee on Ways and Means, submitted the following
R E P O R T
[To accompany H.R. 82]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 82) to amend title II of the Social Security Act to
repeal the Government pension offset and windfall elimination
provisions, having considered the same, reports thereon without
amendment and without recommendation.
CONTENTS
Page
I. SUMMARY AND BACKGROUND...........................................2
A. Purpose and Summary................................. 2
B. Background and Need for Legislation................. 2
C. Legislative History................................. 2
II. EXPLANATION OF THE BILL..........................................3
A. Current Law......................................... 3
B. Explanation of Provisions........................... 3
C. Effective Date...................................... 3
III. VOTES OF THE COMMITTEE...........................................4
IV. BUDGET EFFECTS OF THE BILL.......................................4
A. Committee Estimate of Budgetary Effects............. 4
B. Statement Regarding New Budget Authority and Tax
Expenditures Budget Authority...................... 4
C. Cost Estimate Prepared by the Congressional Budget
Office............................................. 4
V. TRUST FUND EFFECTS OF THE BILL..................................10
A. Cost Estimate Prepared by the Social Security Office
of the Chief Actuary............................... 10
VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......14
A. Committee Oversight Findings and Recommendations.... 14
B. Statement of General Performance Goals and
Objectives......................................... 14
C. Information Relating to Unfunded Mandates........... 14
D. Advisory Committee Statement........................ 14
E. Applicability to Legislative Branch................. 14
F. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 14
G. Hearings............................................ 14
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........14
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
H.R. 82, the ``Social Security Fairness Act of 2021,'' was
ordered reported without recommendation by the Committee on
Ways and Means on September 20, 2022. The bill would repeal
Social Security's Government Pension Offset (GPO) and Windfall
Elimination Provision (WEP), two provisions which reduce Social
Security benefits to public employees who did not pay into
Social Security on some or all of their earnings, and who are
receiving a pension from that work in lieu of Social Security.
B. Background and Need for Legislation
The GPO and WEP were enacted in 1977 and 1983,
respectively. The provisions were intended to equalize the
Social Security benefit formulas for workers (and their
dependents and survivors) with similar earnings histories,
whether those earnings were inside or outside of the Social
Security system. However, in practice, they unfairly penalize
some public employees. Legislation has been introduced for many
years to repeal or reform them.
C. Legislative History
Background
H.R. 82, the ``Social Security Fairness Act of 2021,'' was
introduced on January 4, 2021, by Reps. Rodney Davis (R-IL) and
Abigail Spanberger (D-VA) and was referred to the Committee on
Ways and Means. On July 15, 2022, Rep. Davis filed a motion to
place the bill on the House Consensus Calendar, and the week of
September 19, 2022, the bill was placed on the Consensus
Calendar.
Committee hearings
The WEP has been a subject of discussion in Committee
hearings.
On June 15, 2021, the Committee on Ways and Means,
Subcommittee on Social Security, held a hearing on ``Equity in
Social Security: In Their Own Words.'' During that hearing,
witness Mary Widmier of Texas discussed the need to change the
WEP.
On December 7, 2021, the Subcommittee on Social Security
held a hearing on ``The Fierce Urgency of Now--Social Security
2100: A Sacred Trust.'' During that hearing, the following
witnesses testified to the importance of repealing the WEP and
GPO: Robert Roach, Jr., President, Alliance for Retired
Americans; Nancy Altman, President, Social Security Works;
Shaun Castle, Deputy Executive Director, Paralyzed Veterans of
America; Elizabeth (Bette) Marafino, President, Connecticut
Alliance for Retired Americans; and Max Richtman, President and
CEO, National Committee to Preserve Social Security and
Medicare.
Committee action
The Committee on Ways and Means marked up H.R. 82, the
``Social Security Fairness Act of 2021,'' on September 20,
2022, and ordered the bill reported without recommendation
(with a quorum being present) by voice vote.
II. EXPLANATION OF THE BILL
A. Current Law
The Government Pension Offset (GPO) provision reduces
Social Security spousal or widow(er) benefits of most people
who also receive a pension based on federal, state, or local
government employment that was not covered by Social Security
and not subject to the Social Security payroll tax. Under
Social Security's dual entitlement rule, a person's spousal or
widow(er) benefit is reduced dollar-for-dollar (but not below
zero), by the amount of his or her own Social Security retired-
or disabled-worker benefit (i.e., a 100 percent offset). The
GPO is intended to replicate this dual entitlement rule in
cases where the spouse or survivor paid into--and earned--a
government pension in lieu of Social Security. Under the GPO,
the Social Security spousal or widow(er) benefit of the public-
sector employee is reduced (but not below zero) by an amount
equal to two-thirds of the noncovered government pension (i.e.,
a 67 percent offset).
The Windfall Elimination Provision (WEP) is a modified
benefit formula that reduces Social Security benefits of
certain retired or disabled workers (and their dependents) who
paid in to Social Security for part of their career, but who
also earned a pension based on federal, state or local
government employment that was not covered by Social Security
and not subject to the Social Security payroll tax. The WEP is
intended to ensure that these public-sector employees with
divided careers receive the same replacement rate (i.e.,
percentage of pre-retirement covered earnings replaced by
Social Security benefits) as they would have earned if they had
worked under Social Security for their full career. When the
WEP is applied, the 90 percent replacement factor, which is
applied to the first bracket of average indexed earnings in the
regular benefit formula, is reduced. For workers with 20 or
fewer years of substantial earnings in covered employment or
self-employment (e.g., $27,300 in 2022), the first replacement
factor is reduced to 40 percent. For each additional year of
substantial covered earnings, the first replacement factor is
increased by 5 percentage points. The WEP does not apply to
workers with 30 or more years of substantial covered earnings.
Current law also guarantees that a WEP-related reduction cannot
exceed an amount equal to half of the pension based on the
worker's noncovered work.
B. Explanation of Provisions
H.R. 82 repeals the GPO and WEP for all beneficiaries.
C. Effective Date
The provisions of the bill are effective for Social
Security benefits payable for months after December 2021.
III. VOTES OF THE COMMITTEE
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the vote of the Committee on Ways and Means in its
consideration of H.R. 82, the ``Social Security Fairness Act of
2021,'' on September 20, 2022.
An amendment to H.R. 82 was offered by Mr. Larson. The
amendment was withdrawn.
An amendment to H.R. 82 was offered by Mr. Brady. The
amendment was withdrawn.
H.R. 82 was ordered reported to the House of
Representatives without recommendation by voice vote (with a
quorum being present).
IV. BUDGET EFFECTS OF THE BILL
A. Committee Estimate of Budgetary Effects
In compliance with clause 3(d) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the effects on the budget of the bill, H.R. 82, as
reported. The Committee adopts as its own the estimate prepared
by the Congressional Budget Office (CBO), which is included
below.
B. Statement Regarding New Budget Authority and Tax Expenditures Budget
Authority
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a) of the
Congressional Budget Act of 1974, the following statement is
made concerning the effects of these provisions on budget
authority, budget outlays, spending authority, and credit
authority. The Committee adopts as its own the estimate
prepared by CBO, which is included below. The Committee further
states that the bill involves no new or increased tax
expenditures.
C. Cost Estimate Prepared by the Congressional
Budget Office
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, requiring a cost estimate
prepared by CBO, and section 402 of the Congressional Budget
Act of 1974, the following statement by CBO is provided.
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 20, 2022.
Hon. Richard Neal,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 82, the Social
Security Fairness Act of 2021.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Justin Latus.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The bill would:
Eliminate the Windfall Elimination Provision
(WEP), which reduces Social Security benefits for
certain retired and disabled workers who receive
pensions for work that is not covered by the Social
Security system
Eliminate the Government Pension Offset
(GPO), which reduces Social Security benefits for
certain spouses and surviving spouses who receive
pensions for work that is not covered by the Social
Security system
Estimated budgetary effects would stem from:
Paying larger Social Security benefits to
people who are subject to the WEP and the GPO under
current law
Reducing benefits paid through the
Supplemental Nutrition Assistance Program in response
to the larger Social Security benefits paid to some
people who receive benefits through both programs
Areas of significant uncertainty include:
Predicting how many people will be subject
to the WEP and the GPO under current law
Projecting the size of benefit reductions
attributable to the WEP and the GPO under current law
Bill summary: H.R. 82 would amend title II of the Social
Security Act to eliminate the Windfall Elimination Provision
(WEP) and the Government Pension Offset (GPO). Those provisions
reduce Old-Age and Survivors Insurance (OASI) and Disability
Insurance (DI) benefits for people who also are eligible for
benefits from certain other pension plans. The change would
take effect for benefits payable starting in January 2022.
Estimated Federal cost: The estimated budgetary effect of
H.R. 82 is shown in Table 1. The costs of the legislation fall
within budget functions 600 (income security) and 650 (Social
Security).
Basis of estimate: For this estimate, CBO assumes that the
bill will be enacted near the beginning of fiscal year 2023.
Because H.R. 82 would increase benefits beginning in January
2022, CBO assumes that higher benefits owed for the months
before enactment would be paid retroactively mostly in fiscal
year 2023, with some paid in fiscal year 2024. After that,
benefits would be paid in the fiscal year in which they are
due. This estimate is based primarily on CBO's analysis of
historical data on WEP and GPO recipients and on projections of
the adjustments to their benefits under current law.
Background: The WEP reduces benefits for retired or
disabled workers who have fewer than 30 years of employment
covered by Social Security if they also receive pensions based
on noncovered employment. The GPO reduces the spousal or
surviving spousal benefits of people who receive pensions based
on noncovered employment.
The benefit formula for determining Social Security
payments uses a worker's lifetime earnings from work covered by
the Social Security system.\1\ That formula generally applies
three factors--90 percent, 32 percent, and 15 percent--to three
brackets of a worker's average indexed monthly earnings (AIME),
a measure of career average earnings in covered employment.
(The AIME excludes noncovered earnings.) The result of applying
the benefit formula to the AIME is the worker's monthly benefit
before adjustments, known as the primary insurance amount
(PIA).
---------------------------------------------------------------------------
\1\For more information, see Congressional Budget Office, Social
Security Policy Options, 2015 (December 2015), ``Benefit Formula,'' p.
13, www.cbo.gov/publication/51011.
---------------------------------------------------------------------------
Because the outlays of the Social Security trust funds are
off-budget, most of the bill's effects would be off-budget. In
addition, CBO estimates that the increase in Social Security
benefits specified by the bill would result in a decline in
SNAP benefits paid to people who receive benefits through both
programs; changes in SNAP payments would be on-budget.
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 82
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-------------------------------------------------------------------------------------------------------------------------------------------
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2022-2027 2022-2032
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Increases or Decreases (-) in Direct Spending
Eliminate the Windfall Elimination Provision (Off-
budget)
Estimated Budget Authority...................... 0 11,840 9,270 8,130 8,250 8,350 8,420 8,470 8,490 8,440 8,380 45,840 88,040
Estimated Outlays............................... 0 11,840 9,270 8,130 8,250 8,350 8,420 8,470 8,490 8,440 8,380 45,840 88,040
Eliminate the Government Pension Offset (Off-budget)
Estimated Budget Authority...................... 0 11,680 9,690 9,110 9,700 10,140 10,540 10,930 11,310 11,680 12,010 50,320 106,790
Estimated Outlays............................... 0 11,680 9,690 9,110 9,700 10,140 10,540 10,930 11,310 11,680 12,010 50,320 106,790
Interaction Among Social Security Provisions (Off-
budget)
Estimated Budget Authority...................... 0 -1,350 -1,060 -920 -940 -950 -960 -960 -960 -960 -950 -5,220 -10,010
Estimated Outlays............................... 0 -1,350 -1,060 -920 -940 -950 -960 -960 -960 -960 -950 -5,220 -10,010
Total Off-Budget Direct Spending
Estimated Budget Authority...................... 0 22,170 17,900 16,310 17,010 17,540 18,010 18,440 18,840 19,160 19,440 90,930 184,820
Estimated Outlays............................... 0 22,170 17,900 16,310 17,010 17,540 18,010 18,440 18,840 19,160 19,440 90,930 184,820
Supplemental Nutrition Assistance Program (On-
budget)
Estimated Budget Authority...................... 0 -80 -225 -225 -220 -215 -215 -210 -205 -205 -200 -965 -2,000
Estimated Outlays............................... 0 -80 -225 -225 -220 -215 -215 -210 -205 -205 -200 -965 -2,000
Total Changes in Direct Spending
Estimated Budget Authority...................... 0 22,090 17,675 16,085 16,790 17,325 17,795 18,230 18,635 18,955 19,240 89,965 182,820
Estimated Outlays............................... 0 22,090 17,675 16,085 16,790 17,325 17,795 18,230 18,635 18,955 19,240 89,965 182,820
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Components may not sum to totals because of rounding; SNAP = Supplemental Nutrition Assistance Program.
The outlays of the Social Security trust funds are classified as off-budget. SNAP outlays are classified as on-budget.
Eliminate the Windfall Elimination Provision: The Social
Security monthly benefit formula is designed so that the PIA
replaces a greater share of earnings for retirees who had lower
earnings than it does for people who had higher earnings. The
current-law formula makes no distinction between a low AIME
because of low lifetime earnings and a low AIME because of
noncovered earnings. The WEP is designed toremove the advantage
of the benefit formula for people whose low AIME results from
noncovered earnings.
For people whose pensions are based in part on noncovered
work and who worked fewer than 30 years in the Social Security
system, the WEP reduces the first factor of the AIME from 90
percent to an amount that ranges from 40 percent to 85 percent,
depending on the number of years with substantial covered
earnings. (The ``substantial'' threshold is indexed to average
national earnings; in 2022, that amount is $27,300.) The
reduction in Social Security benefits under the WEP is limited
to half the amount of a pension that is based on noncovered
earnings.
H.R. 82 would eliminate the WEP and raise the first factor
to 90 percent for all workers who are subject to the current-
law WEP, thus increasing Social Security spending. CBO used
historical data to calculate that size of the affected group.
According to CBO's analysis, the number of people newly
receiving Social Security benefits and also subject to the WEP
is declining and we expect that trend to continue. Because of
that trend, the cost of enacting this provision begins to
decline toward the end of the 2022-2032 period. Historical
beneficiary data were used to calculate the average benefit
reduction attributable to the WEP; projections of future
reductions were based on that amount as adjusted for projected
growth in benefits, including cost-of-living adjustments and
growth in wages.
CBO estimates that eliminating the WEP would increase
monthly benefits in December 2023 by $330, on average, for 2.0
million Social Security beneficiaries (about 3 percent of all
Social Security beneficiaries); in December 2031, that increase
would reach $410, on average, for 1.8 million beneficiaries.
In total, CBO estimates that repealing the WEP would
increase off-budget direct spending by $88 billion over the
2022-2032 period.
Eliminate the Government Pension Offset: Under current law,
the eligible spouse of a living retired or disabled worker is
entitled to a monthly Social Security benefit that equals up to
50 percent of the worker's monthly benefit; a surviving spouse
is entitled to the full amount. When spouses are eligible for
benefits on the basis of their own covered earnings, their
spousal benefit is reduced by that amount. (An individual's
spousal benefit is reduced to zero if that person's own worker
benefit is higher than the spousal benefit.)
Under current law, the GPO reduces spouses' or surviving
spouses' Social Security benefits if they also receive a
pension based on noncovered employment. That reduction is equal
to two-thirds of the noncovered pension.
H.R. 82 would repeal the GPO, resulting in an increase in
Social Security benefits paid to affected spouses and surviving
spouses. CBO used beneficiary data to calculate the number of
current beneficiaries subject to the GPO and the average
reduction in benefits. Using historical growth rates, CBO
projected the number of people who will be affected by the
offset under current law. Under the bill, CBO expects some
people in that category would newly apply for spousal or
surviving spousal benefits, including those who might not apply
under current law because the GPO would reduce or eliminate
their Social Security benefits. Under H.R. 82, CBO estimates,
an extra 80,000 people would receive spousal or surviving
spousal benefits in December 2031.
CBO estimates that eliminating the GPO would increase
monthly benefits in December 2023 by an average of $670 for
410,000 spouses and by an average of $1,150 for 370,000
surviving spouses; in December 2031, that increase would reach
$840, on average, for 410,000 spouses and $1,560 for 430,000
surviving spouses. (About 1 percent of all Social Security
beneficiaries would be affected by the change in December
2023.) We expect that the number of people affected by GPO will
increase initially and then decline slightly toward the end of
the 2022-2032 period; estimated costs continue to rise through
that period because the increase in average benefits is greater
than decrease in people affected by GPO. Those estimates
include people who would newly apply because of the elimination
of the current-law GPO.
In total, CBO estimates, repealing the GPO would increase
off-budget direct spending by $107 billion over the 2022-2032
period.
Interaction among Social Security provisions: The benefits
of a small group of people are affected by both the WEP and the
GPO. CBO expects that the total cost of repealing both
provisions--$195 billion over the 2022-2032 period--would be
$10 billion less because of interactions between the two
provisions.
Supplemental Nutrition Assistance Program: H.R. 82 would
increase Social Security income for some people who also
receive SNAP benefits, which are based on a formula that
accounts for Social Security income. Higher monthly Social
Security benefits would lead to lower SNAP benefits for some
recipients. CBO estimates that under H.R. 82, spending for SNAP
benefits would decrease by $2 billion over the 2022-2032
period. Those savings would be on-budget.
Uncertainty: CBO's estimate for H.R. 82 is subject to
uncertainty related to the number of people over the 2022-2032
period who under current law will be subject to the WEP or the
GPO. CBO's projections are based on historical trends, but if
the groups turn out to be larger or smaller than CBO expects,
the costs of the bill could be higher or lower than CBO
estimates.
Also uncertain is the extent to which the current-law WEP
and GPO will reduce Social Security benefits in the future.
CBO's projections of those amounts are based on historical
data, but future growth will be driven by factors that are
difficult to predict, including annual cost-of-living
adjustments to Social Security benefits. If CBO's projections
of those adjustments are too high or too low, the costs of the
bill could be higher or lower than CBO estimates.
Pay-as-you-go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures (on-budget costs) are shown in Table
2. Only the changes in SNAP outlays are on-budget and subject
to pay-as-you-go procedures.
TABLE 2.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 82, THE SOCIAL SECURITY FAIRNESS ACT OF 2021, AS ORDERED REPORTED BY THE HOUSE
COMMITTEE ON WAYS AND MEANS ON SEPTEMBER 20, 2022
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By fiscal year, millions of dollars--
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2022-
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2022-2027 2032
--------------------------------------------------------------------------------------------------------------------------------------------------------
Net Decrease in the On-Budget Deficit
Pay-As-You-Go Effect 0 -80 -225 -225 -220 -215 -215 -210 -205 -205 -200 -965 -2,000
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Enacting the bill also would increase off-budget spending for Social Security by almost $185 billion over the 2023-2032 period. Because that spending is
classified as off-budget, those effects are not counted for pay-as-you-go purposes.
Increase in long-term deficits: CBO estimates that enacting
H.R. 82 would not increase on-budget deficits in any of the
four consecutive 10-year periods beginning in 2033.
Enacting the bill would increase off-budget spending by
tens of billions of dollars in the years after 2032, but CBO
has not completed a detailed estimate of those costs. In CBO's
baseline projections, the balances in the OASI and DI trust
funds will be exhausted after 2032. Based on the estimated
effects of the bill through 2032, CBO expects that, under the
assumption that the OASI and DI trust funds are combined, the
bill would advance the exhaustion date for the combined trust
funds by roughly six months.
Mandates: CBO has not reviewed H.R. 82 for
intergovernmental or private-sector mandates. Section 4 of the
Unfunded Mandates Reform Act excludes from the application of
that act any legislative provisions that relate to the Old-Age
and Survivors Insurance and Disability Insurance programs under
title II of the Social Security Act. CBO has determined that
H.R. 82 falls within that exclusion.
Estimate prepared by: Federal costs: Justin Latus;
Mandates: Andrew Laughlin
Estimate reviewed by: Elizabeth Cove Delisle, Chief, Income
Security Cost Estimates Unit; Kathleen FitzGerald, Chief,
Public and Private Mandates Unit; H. Samuel Papenfuss, Deputy
Director of Budget Analysis; Theresa Gullo, Director of Budget
Analysis.
V. TRUST FUND EFFECTS OF THE BILL
A. Cost Estimate Prepared by the Social Security Office of the Chief
Actuary
The Social Security Administration's Office of the Chief
Actuary routinely develops estimates of legislation that would
have financial effects on the Social Security trust funds. The
following estimate by the Office of the Chief Actuary is
provided.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee made findings and recommendations that are
reflected in this report.
B. Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee advises that the
general performance goal or objective for which the bill
authorizes funding is to pay additional Social Security
benefits to beneficiaries affected by the GPO and WEP.
C. Information Relating to Unfunded Mandates
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
D. Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by the bill.
E. Applicability to Legislative Branch
The Committee finds that the bill does not relate to the
terms and conditions of employment or access to public services
or accommodations within the meaning of section 102(b)(2) of
the Congressional Accountability Act.
F. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
G. Hearings
In compliance with clause 3(c)(6) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
hearings listed above under ``Legislative History'' were used
to consider or develop H.R. 82.
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e)(1) of rule XIII of the Rules
of the House of Representatives, changes in existing law
proposed by the bill, as reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italics, existing law in
which no change is proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
SOCIAL SECURITY ACT
* * * * * * *
TITLE II--FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE BENEFITS
* * * * * * *
age and survivors insurance benefit payments
Old-Age Insurance Benefits
Sec. 202. (a) Every individual who--
(1) is a fully insured individual (as defined in
section 214(a)),
(2) has attained age 62, and
(3) has filed application for old-age insurance
benefits or was entitled to disability insurance
benefits for the month preceding the month in which he
attained retirement age (as defined in section 216(l)),
shall be entitled to an old-age insurance benefit for each
month, beginning with--
(A) in the case of an individual who has attained
retirement age (as defined in section 216(l)), the
first month in which such individual meets the criteria
specified in paragraphs (1), (2), and (3), or
(B) in the case of an individual who has attained age
62, but has not attained retirement age (as defined in
section 216(l)), the first month throughout which such
individual meets the criteria specified in paragraphs
(1) and (2) (if in that month he meets the criterion
specified in paragraph (3)),
and ending with the month preceding the month in which he dies.
Except as provided in subsection (q) and subsection (w), such
individual's old-age insurance benefit for any month shall be
equal to his primary insurance amount (as defined in section
215(a)) for such month.
Wife's Insurance Benefits
(b)(1) The wife (as defined in section 216(b)) and every
divorced wife (as defined in section 216(d)) of an individual
entitled to old-age or disability insurance benefits, if such
wife or such divorced wife--
(A) has filed application for wife's insurance
benefits,
(B)(i) has attained age 62, or
(ii) in the case of a wife, has in her care
(individually or jointly with such individual) at the
time of filing such application a child entitled to a
child's insurance benefit on the basis of the wages and
self-employment income of such individual,
(C) in the case of a divorced wife, is not married,
and
(D) is not entitled to old age or disability
insurance benefits, or is entitled to old-age or
disability insurance benefits based on a primary
insurance amount which is less than one-half of the
primary insurance amount of such individual,
shall (subject to subsection (s)) be entitled to a wife's
insurance benefit for each month, beginning with--
(i) in the case of a wife or divorced wife (as so
defined) of an individual entitled to old-age benefits,
if such wife or divorced wife has attained retirement
age (as defined in section 216(l)), the first month in
which she meets the criteria specified in subparagraphs
(A), (B), (C), and (D), or
(ii) in the case of a wife or divorced wife (as so
defined) of--
(I) an individual entitled to old-age
insurance benefits, if such wife or divorced
wife has not attained retirement age (as
defined in section 216(l)), or
(II) an individual entitled to disability
insurance benefits,
the first month throughout which she is such a wife or
divorced wife and meets the criteria specified in
subparagraphs (B), (C), and (D) (if in such month she
meets the criterion specified in subparagraph (A)),
whichever is earlier, and ending with the month preceding the
month in which any of the following occurs--
(E) she dies,
(F) such individual dies,
(G) in the case of a wife, they are divorced and
either (i) she has not attained age 62, or (ii) she has
attained age 62 but has not been married to such
individual for a period of 10 years immediately before
the date the divorce became effective,
(H) in the case of a divorced wife, she marries a
person other than such individual,
(I) in the case of a wife who has not attained age
62, no child of such individual is entitled to a
child's insurance benefit,
(J) she becomes entitled to an old-age or disability
insurance benefit based on a primary insurance amount
which is equal to or exceeds one-half of the primary
insurance amount of such individual, or
(K) such individual is not entitled to disability
insurance benefits and is not entitled to old-age
insurance benefits.
(2) Except as provided in [subsections (k)(5) and (q)]
subsection (q), such wife's insurance benefit for each month
shall be equal to one-half of the primary insurance amount of
her husband (or, in the case of a divorced wife, her former
husband) for such month.
(3) In the case of any divorced wife who marries--
(A) an individual entitled to benefits under
subsection (c), (f), (g), or (h) of this section, or
(B) an individual who has attained the age of 18 and
is entitled to benefits under subsection (d),
such divorced wife's entitlement to benefits under this
subsection shall, notwithstanding the provisions of paragraph
(1) (but subject to subsection (s)), not be terminated by
reason of such marriage.
(4)(A) Notwithstanding the preceding provisions of this
subsection, except as provided in subparagraph (B), the
divorced wife of an individual who is not entitled to old-age
or disability insurance benefits, but who has attained age 62
and is a fully insured individual (as defined in section 214),
if such divorced wife--
(i) meets the requirements of subparagraphs (A)
through (D) of paragraph (1), and
(ii) has been divorced from such insured individual
for not less than 2 years,
shall be entitled to a wife's insurance benefit under this
subsection for each month, in such amount, and beginning and
ending with such months, as determined (under regulations of
the Commissioner of Social Security) in the manner otherwise
provided for wife's insurance benefits under this subsection,
as if such insured individual had become entitled to old-age
insurance benefits on the date on which the divorced wife first
meets the criteria for entitlement set forth in clauses (i) and
(ii).
(B) A wife's insurance benefit provided under this paragraph
which has not otherwise terminated in accordance with
subparagraph (E), (F), (H), or (J) of paragraph (1) shall
terminate with the month preceding the first month in which the
insured individual is no longer a fully insured individual.
Husband's Insurance Benefits
(c)(1) The husband (as defined in section 216(f)) and every
divorced husband (as defined in section 216(d)) of an
individual entitled to old-age or disability insurance
benefits, if such husband or such divorced husband--
(A) has filed application for husband's insurance
benefits,
(B)(i) has attained age 62, or
(ii) in the case of a husband, has in his care
(individually or jointly with such individual) at the
time of filing such application a child entitled to a
child's insurance benefit on the basis of the wages and
self-employment income of such individual,
(C) in the case of a divorced husband, is not
married, and
(D) is not entitled to old-age or disability
insurance benefits, or is entitled to old-age or
disability insurance benefits based on a primary
insurance amount which is less than one-half of the
primary insurance amount of such individual,
shall (subject to subsection (s)) be entitled to a husband's
insurance benefit for each month, beginning with--
(i) in the case of a husband or divorced husband (as
so defined) of an individual who is entitled to an old-
age insurance benefit, if such husband or divorced
husband has attained retirement age (as defined in
section 216(l)), the first month in which he meets the
criteria specified in subparagraphs (A), (B), (C), and
(D), or
(ii) in the case of a husband or divorced husband (as
so defined) of--
(I) an individual entitled to old-age
insurance benefits, if such husband or divorced
husband has not attained retirement age (as
defined in section 216(l)), or
(II) an individual entitled to disability
insurance benefits,
the first month throughout which he is such a husband
or divorced husband and meets the criteria specified in
subparagraphs (B), (C), and (D) (if in such month he
meets the criterion specified in subparagraph (A)),
whichever is earlier, and ending with the month preceding the
month in which any of the following occurs:
(E) he dies,
(F) such individual dies,
(G) in the case of a husband, they are divorced and
either (i) he has not attained age 62, or (ii) he has
attained age 62 but has not been married to such
individual for a period of 10 years immediately before
the divorce became effective,
(H) in the case of a divorced husband, he marries a
person other than such individual,
(I) in the case of a husband who has not attained age
62, no child of such individual is entitled to a
child's insurance benefit,
(J) he becomes entitled to an old-age or disability
insurance benefit based on a primary insurance amount
which is equal to or exceeds one-half of the primary
insurance amount of such individual, or
(K) such individual is not entitled to disability
insurance benefits and is not entitled to old-age
insurance benefits.
(2) Except as provided in [subsections (k)(5) and (q)]
subsection (q), such husband's insurance benefit for each month
shall be equal to one-half of the primary insurance amount of
his wife (or, in the case of a divorced husband, his former
wife) for such month.
(3) In the case of any divorced husband who marries--
(A) an individual entitled to benefits under
subsection (b), (e), (g), or (h) of this section, or
(B) an individual who has attained the age of 18 and
is entitled to benefits under subsection (d), by reason
of paragraph (1)(B)(ii) thereof,
such divorced husband's entitlement to benefits under this
subsection, notwithstanding the provisions of paragraph (1)
(but subject to subsection (s)), shall not be terminated by
reason of such marriage.
(4)(A) Notwithstanding the preceding provisions of this
subsection, except as provided in subparagraph (B), the
divorced husband of an individual who is not entitled to old-
age or disability insurance benefits, but who has attained age
62 and is a fully insured individual (as defined in section
214), if such divorced husband--
(i) meets the requirements of subparagraphs (A)
through (D) of paragraph (1), and
(ii) has been divorced from such insured individual
for not less than 2 years,
shall be entitled to a husband's insurance benefit under this
subsection for each month, in such amount, and beginning and
ending with such months, as determined (under regulations of
the Commissioner of Social Security) in the manner otherwise
provided for husband's insurance benefits under this
subsection, as if such insured individual had become entitled
to old-age insurance benefits on the date on which the divorced
husband first meets the criteria for entitlement set forth in
clauses (i) and (ii).
(B) A husband's insurance benefit provided under this
paragraph which has not otherwise terminated in accordance with
subparagraph (E), (F), (H), or (J) of paragraph (1) shall
terminate with the month preceding the first month in which the
insured individual is no longer a fully insured individual.
Child's Insurance Benefits
(d)(1) Every child (as defined in section 216(e)) of an
individual entitled to old-age or disability insurance
benefits, or of an individual who dies a fully or currently
insured individual, if such child--
(A) has filed application for child's insurance
benefits,
(B) at the time such application was filed was
unmarried and (i) either had not attained the age of 18
or was a full-time elementary or secondary school
student and had not attained the age of 19, or (ii) is
under a disability (as defined in section 223(d)) which
began before he attained the age of 22, and
(C) was dependent upon such individual--
(i) if such individual is living, at the time
such application was filed,
(ii) if such individual has died, at the time
of such death, or
(iii) if such individual had a period of
disability which continued until he became
entitled to old-age or disability insurance
benefits, or (if he has died) until the month
of his death, at the beginning of such period
of disability or at the time he became entitled
to such benefits,
shall be entitled to a child's insurance benefit for each
month, beginning with--
(i) in the case of a child (as so defined) of such an
individual who has died, the first month in which such
child meets the criteria specified in subparagraphs
(A), (B), and (C), or
(ii) in the case of a child (as so defined) of an
individual entitled to an old-age insurance benefit or
to a disability insurance benefit, the first month
throughout which such child is a child (as so defined)
and meets the criteria specified in subparagraphs (B)
and (C) (if in such month he meets the criterion
specified in subparagraph (A)),
whichever is earlier, and ending with the month preceding
whichever of the following first occurs--
(D) the month in which such child dies, or marries,
(E) the month in which such child attains the age of
18, but only if he (i) is not under a disability (as so
defined) at the time he attains such age, and (ii) is
not a full-time elementary or secondary school student
during any part of such month,
(F) if such child was not under a disability (as so
defined) at the time he attained the age of 18, the
earlier of--
(i) the first month during no part of which
he is a full-time elementary or secondary
school student, or
(ii) the month in which he attains the age of
19,
but only if he was not under a disability (as so
defined) in such earlier month;
(G) if such child was under a disability (as so
defined) at the time he attained the age of 18 or if he
was not under a disability (as so defined) at such time
but was under a disability (as so defined) at or prior
to the time he attained (or would attain) the age of
22--
(i) the termination month, subject to section
223(e) (and for purposes of this subparagraph,
the termination month for any individual shall
be the third month following the month in which
his disability ceases; except that, in the case
of an individual who has a period of trial work
which ends as determined by application of
section 222(c)(4)(A), the termination month
shall be the earlier of (I) the third month
following the earliest month after the end of
such period of trial work with respect to which
such individual is determined to no longer be
suffering from a disabling physical or mental
impairment, or (II) the third month following
the earliest month in which such individual
engages or is determined able to engage in
substantial gainful activity, but in no event
earlier than the first month occurring after
the 36 months following such period of trial
work in which he engages or is determined able
to engage in substantial gainful activity),
or (if later) the earlier of--
(ii) the first month during no part of which
he is a full-time elementary or secondary
school student, or
(iii) the month in which he attains the age
of 19,
but only if he was not under a disability (as so
defined) in such earlier month; or
(H) if the benefits under this subsection are based
on the wages and self employment income of a stepparent
who is subsequently divorced from such child's natural
parent, the month after the month in which such divorce
becomes final.
Entitlement of any child to benefits under this subsection on
the basis of the wages and self-employment income of an
individual entitled to disability insurance benefits shall also
end with the month before the first month for which such
individual is not entitled to such benefits unless such
individual is, for such later month, entitled to old-age
insurance benefits or unless he dies in such month. No payment
under this paragraph may be made to a child who would not meet
the definition of disability in section 223(d) except for
paragraph (1)(B) thereof for any month in which he engages in
substantial gainful activity.
(2) Such child's insurance benefit for each month shall, if
the individual on the basis of whose wages and self-employment
income the child is entitled to such benefit has not died prior
to the end of such month, be equal to one-half of the primary
insurance amount of such individual for such month. Such
child's insurance benefit for each month shall, if such
individual has died in or prior to such month, be equal to
three-fourths of the primary insurance amount of such
individual.
(3) A child shall be deemed dependent upon his father or
adopting father or his mother or adopting mother at the time
specified in paragraph (1)(C) unless, at such time, such
individual was not living with or contributing to the support
of such child and--
(A) such child is neither the legitimate nor adopted
child of such individual, or
(B) such child has been adopted by some other
individual.
For purposes of this paragraph, a child deemed to be a child of
a fully or currently insured individual pursuant to section
216(h)(2)(B) or section 216(h)(3) shall be deemed to be the
legitimate child of such individual.
(4) A child shall be deemed dependent upon his stepfather or
stepmother at the time specified in paragraph (1)(C) if, at
such time, the child was receiving at least one-half of his
support from such stepfather or stepmother.
(5) In the case of a child who has attained the age of
eighteen and who marries--
(A) an individual entitled to benefits under
subsection (a), (b), (c), (e), (f), (g), or (h) of this
section or under section 223(a), or
(B) another individual who has attained the age of
eighteen and is entitled to benefits under this
subsection,
such child's entitlement to benefits under this subsection
shall, notwithstanding the provisions of paragraph (1) but
subject to subsection (s), not be terminated by reason of such
marriage.
(6) A child whose entitlement to child's insurance benefits
on the basis of the wages and self-employment income of an
insured individual terminated with the month preceding the
month in which such child attained the age of 18, or with a
subsequent month, may again become entitled to such benefits
(provided no event specified in paragraph (1)(D) has occurred)
beginning with the first month thereafter in which he--
(A)(i) is a full-time elementary or secondary school
student and has not attained the age of 19, or (ii) is
under a disability (as defined in section 223(d)) and
has not attained the age of 22, or
(B) is under a disability (as so defined) which began
(i) before 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, 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,
but only if he has filed application for such reentitlement.
Such reentitlement shall end with the month preceding whichever
of the following first occurs:
(C) the first month in which an event specified in
paragraph (1)(D) occurs;
(D) the earlier of (i) the first month during no part
of which he is a full-time elementary or secondary
school student or (ii) the month in which he attains
the age of 19, but only if he is not under a disability
(as so defined) in such earlier month; or
(E) if he was under a disability (as so defined), the
termination month (as defined in paragraph (1)(G)(i)),
subject to section 223(e), or (if later) the earlier
of--
(i) the first month during no part of which
he is a full-time elementary or secondary
school student, or
(ii) the month in which he attains the age of
19.
(7) For the purposes of this subsection--
(A) A ``full-time elementary or secondary school
student'' is an individual who is in full-time
attendance as a student at an elementary or secondary
school, as determined by the Commissioner of Social
Security (in accordance with regulations prescribed by
the Commissioner) in the light of the standards and
practices of the schools involved, except that no
individual shall be considered a ``full-time elementary
or secondary school student'' if he is paid by his
employer while attending an elementary or secondary
school at the request, or pursuant to a requirement, of
his employer. An individual shall not be considered a
``full-time elementary or secondary school student''
for the purpose of this section while that individual
is confined in a jail, prison, or other penal
institution or correctional facility, pursuant to his
conviction of an offense (committed after the effective
date of this sentence) which constituted a felony under
applicable law. An individual who is determined to be a
full-time elementary or secondary school student shall
be deemed to be such a student throughout the month
with respect to which such determination is made.
(B) Except to the extent provided in such
regulations, an individual shall be deemed to be a
full-time elementary or secondary school student during
any period of nonattendance at an elementary or
secondary school at which he has been in full-time
attendance if (i) such period is 4 calendar months or
less, and (ii) he shows to the satisfaction of the
Commissioner of Social Security that he intends to
continue to be in full-time attendance at an elementary
or secondary school immediately following such period.
An individual who does not meet the requirement of
clause (ii) with respect to such period of
nonattendance shall be deemed to have met such
requirement (as of the beginning of such period) if he
is in full-time attendance at an elementary or
secondary school immediately following such period.
(C)(i) An ``elementary or secondary school'' is a
school which provides elementary or secondary
education, respectively, as determined under the law of
the State or other jurisdiction in which it is located.
(ii) For the purpose of determining whether a child
is a ``full-time elementary or secondary school
student'' or ``intends to continue to be in full-time
attendance at an elementary or secondary school'',
within the meaning of this subsection, there shall be
disregarded any education provided, or to be provided,
beyond grade 12.
(D) A child who attains age 19 at a time when he is a
full-time elementary or secondary school student (as
defined in subparagraph (A) of this paragraph and
without application of subparagraph (B) of such
paragraph) but has not (at such time) completed the
requirements for, or received, a diploma or equivalent
certificate from a secondary school (as defined in
subparagraph (C)(i)) shall be deemed (for purposes of
determining whether his entitlement to benefits under
this subsection has terminated under paragraph (1)(F)
and for purposes of determining his initial entitlement
to such benefits under clause (i) of paragraph (1)(B))
not to have attained such age until the first day of
the first month following the end of the quarter or
semester in which he is enrolled at such time (or, if
the elementary or secondary school (as defined in this
paragraph) in which he is enrolled is not operated on a
quarter or semester system, until the first day of the
first month following the completion of the course in
which he is so enrolled or until the first day of the
third month beginning after such time, whichever first
occurs).
(8) In the case of--
(A) an individual entitled to old-age insurance
benefits (other than an individual referred to in
subparagraph (B)), or
(B) an individual entitled to disability insurance
benefits, or an individual entitled to old-age
insurance benefits who was entitled to disability
insurance benefits for the month preceding the first
month for which he was entitled to old-age insurance
benefits,
a child of such individual adopted after such individual became
entitled to such old-age or disability insurance benefits shall
be deemed not to meet the requirements of clause (i) or (iii)
of paragraph (1)(C) unless such child--
(C) is the natural child or stepchild of such
individual (including such a child who was legally
adopted by such individual), or
(D)(i) was legally adopted by such individual in an
adoption decreed by a court of competent jurisdiction
within the United States, and
(ii) in the case of a child who attained the age of
18 prior to the commencement of proceedings for
adoption, the child was living with or receiving at
least one-half of the child's support from such
individual for the year immediately preceding the month
in which the adoption is decreed.
(9)(A) A child who is a child of an individual under clause
(3) of the first sentence of section 216(e) and is not a child
of such individual under clause (1) or (2) of such first
sentence shall be deemed not to be dependent on such individual
at the time specified in subparagraph (1)(C) of this subsection
unless (i) such child was living with such individual in the
United States and receiving at least one-half of his support
from such individual (I) for the year immediately before the
month in which such individual became entitled to old-age
insurance benefits or disability insurance benefits or died, or
(II) if such individual had a period of disability which
continued until he had become entitled to old-age insurance
benefits, or disability insurance benefits, or died, for the
year immediately before the month in which such period of
disability began, and (ii) the period during which such child
was living with such individual began before the child attained
age 18.
(B) In the case of a child who was born in the one-year
period during which such child must have been living with and
receiving at least one-half of his support from such
individual, such child shall be deemed to meet such
requirements for such period if, as of the close of such
period, such child has lived with such individual in the United
States and received at least one-half of his support from such
individual for substantially all of the period which begins on
the date of such child's birth.
(10) For purposes of paragraph (1)(H)--
(A) each stepparent shall notify the Commissioner of
Social Security of any divorce upon such divorce
becoming final; and
(B) the Commissioner shall annually notify any
stepparent of the rule for termination described in
paragraph (1)(H) and of the requirement described in
subparagraph (A).
Widow's Insurance Benefits
(e)(1) The widow (as defined in section 216(c)) and every
surviving divorced wife (as defined in section 216(d)) of an
individual who died a fully insured individual, if such widow
or such surviving divorced wife--
(A) is not married,
(B)(i) has attained age 60, or (ii) has attained age
50 but has not attained age 60 and is under a
disability (as defined in section 223(d)) which began
before the end of the period specified in paragraph
(4),
(C)(i) has filed application for widow's insurance
benefits,
(ii) was entitled to wife's insurance benefits, on
the basis of the wages and self-employment income of
such individual, for the month preceding the month in
which such individual died, and--
(I) has attained retirement age (as defined
in section 216(l)),
(II) is not entitled to benefits under
subsection (a) or section 223, or
(III) has in effect a certificate (described
in paragraph (8)) filed by her with the
Commissioner of Social Security, in accordance
with regulations prescribed by the Commissioner
of Social Security, in which she elects to
receive widow's insurance benefits (subject to
reduction as provided in subsection (q)), or
(iii) was entitled, on the basis of such wages and
self-employment income, to mother's insurance benefits
for the month preceding the month in which she attained
retirement age (as defined in section 216(l)), and
(D) is not entitled to old-age insurance benefits or
is entitled to old-age insurance benefits each of which
is less than the primary insurance amount (as
determined after application of subparagraphs (B) and
(C) of paragraph (2)) of such deceased individual,
shall be entitled to a widow's insurance benefit for each
month, beginning with--
(E) if she satisfies subparagraph (B) by reason of
clause (i) thereof, the first month in which she
becomes so entitled to such insurance benefits, or
(F) if she satisfies subparagraph (B) by reason of
clause (ii) thereof--
(i) the first month after her waiting period
(as defined in paragraph (5)) in which she
becomes so entitled to such insurance benefits,
or
(ii) the first month during all of which she
is under a disability and in which she becomes
so entitled to such insurance benefits, but
only if she was previously entitled to
insurance benefits under this subsection on the
basis of being under a disability and such
first month occurs (I) in the period specified
in paragraph (4) and (II) after the month in
which a previous entitlement to such benefits
on such basis terminated,
and ending with the month preceding the first month in which
any of the following occurs: she remarries, dies, becomes
entitled to an old-age insurance benefit equal to or exceeding
the primary insurance amount (as determined after application
of subparagraphs (B) and (C) of paragraph (2)) of such deceased
individual, or, if she became entitled to such benefits before
she attained age 60, subject to section 223(e), the termination
month (unless she attains retirement age (as defined in section
216(l)) on or before the last day of such termination month).
For purposes of the preceding sentence, the termination month
for any individual shall be the third month following the month
in which her disability ceases; except that, in the case of an
individual who has a period of trial work which ends as
determined by application of section 222(c)(4)(A), the
termination month shall be the earlier of (I) the third month
following the earliest month after the end of such period of
trial work with respect to which such individual is determined
to no longer be suffering from a disabling physical or mental
impairment, or (II) the third month following the earliest
month in which such individual engages or is determined able to
engage in substantial gainful activity, but in no event earlier
than the first month occurring after the 36 months following
such period of trial work in which she engages or is determined
able to engage in substantial gainful activity.
(2)(A) Except as provided in [subsection (k)(5), subsection
(q),] subsection (q) and subparagraph (D) of this paragraph,
such widow's insurance benefit for each month shall be equal to
the primary insurance amount (as determined for purposes of
this subsection after application of subparagraphs (B) and (C))
of such deceased individual.
(B)(i) For purposes of this subsection, in any case in which
such deceased individual dies before attaining age 62 and
section 215(a)(1) (as in effect after December 1978) is
applicable in determining such individual's primary insurance
amount--
(I) such primary insurance amount shall be determined
under the formula set forth in section 215(a)(1)(B)(i)
and (ii) which is applicable to individuals who
initially become eligible for old-age insurance
benefits in the second year after the year specified in
clause (ii),
(II) the year specified in clause (ii) shall be
substituted for the second calendar year specified in
section 215(b)(3)(A)(ii)(I), and
(III) such primary insurance amount shall be
increased under section 215(i) as if it were the
primary insurance amount referred to in section
215(i)(2)(A)(ii)(II), except that it shall be increased
only for years beginning after the first year after the
year specified in clause (ii).
(ii) The year specified in this clause is the earlier of--
(I) the year in which the deceased individual
attained age 60, or would have attained age 60 had he
lived to that age, or
(II) the second year preceding the year in which the
widow or surviving divorced wife first meets the
requirements of paragraph (1)(B) or the second year
preceding the year in which the deceased individual
died, whichever is later.
(iii) This subparagraph shall apply with respect to any
benefit under this subsection only to the extent its
application does not result in a primary insurance amount for
purposes of this subsection which is less than the primary
insurance amount otherwise determined for such deceased
individual under section 215.
(C) If such deceased individual was (or upon application
would have been) entitled to an old-age insurance benefit which
was increased (or subject to being increased) on account of
delayed retirement under the provisions of subsection (w),
then, for purposes of this subsection, such individual's
primary insurance amount, if less than the old-age insurance
benefit (increased, where applicable, under [section 215(f)(5),
215(f)(6), or 215(f)(9)(B)] paragraph (5) or (6) of section
215(f) and under section 215(i) as if such individual were
still alive in the case of an individual who has died) which he
was receiving (or would upon application have received) for the
month prior to the month in which he died, shall be deemed to
be equal to such old-age insurance benefit, and
(notwithstanding the provisions of paragraph (3) of such
subsection (w)) the number of increment months shall include
any month in the months of the calendar year in which he died,
prior to the month in which he died, which satisfy the
conditions in paragraph (2) of such subsection (w).
(D) If the deceased individual (on the basis of whose wages
and self-employment income a widow or surviving divorced wife
is entitled to widow's insurance benefits under this
subsection) was, at any time, entitled to an old-age insurance
benefit which was reduced by reason of the application of
subsection (q), the widow's insurance benefit of such widow or
surviving divorced wife for any month shall, if the amount of
the widow's insurance benefit of such widow or surviving
divorced wife (as determined under subparagraph (A) and after
application of subsection (q)) is greater than--
(i) the amount of the old-age insurance benefit to
which such deceased individual would have been entitled
(after application of subsection (q)) for such month if
such individual were still living and [section
215(f)(5), 215(f)(6), or 215(f)(9)(B)] paragraph (5) or
(6) of section 215(f) were applied, where applicable,
and
(ii) 82 \1/2\ percent of the primary insurance amount
(as determined without regard to subparagraph (C)) of
such deceased individual,
be reduced to the amount referred to in clause (i), or (if
greater) the amount referred to in clause (ii).
(3) For purposes of paragraph (1), if--
(A) a widow or surviving divorced wife marries after
attaining age 60 (or after attaining age 50 if she was
entitled before such marriage occurred to benefits
based on disability under this subsection), or
(B) a disabled widow or disabled surviving divorced
wife described in paragraph (1)(B)(ii) marries after
attaining age 50,
such marriage shall be deemed not to have occurred.
(4) The period referred to in paragraph (1)(B)(ii), in the
case of any widow or surviving divorced wife, is the period
beginning with whichever of the following is the latest:
(A) the month in which occurred the death of the
fully insured individual referred to in paragraph (1)
on whose wages and self-employment income her benefits
are or would be based, or
(B) the last month for which she was entitled to
mother's insurance benefits on the basis of the wages
and self-employment income of such individual, or
(C) the month in which a previous entitlement to
widow's insurance benefits on the basis of such wages
and self-employment income terminated because her
disability had ceased,
and ending with the month before the month in which she attains
age 60, or, if earlier, with the close of the eighty-fourth
month following the month with which such period began.
(5)(A) The waiting period referred to in paragraph (1)(F), in
the case of any widow or surviving divorced wife, is the
earliest period of five consecutive calendar months--
(i) throughout which she has been under a disability,
and
(ii) which begins not earlier than with whichever of
the following is the later: (I) the first day of the
seventeenth month before the month in which her
application is filed, or (II) the first day of the
fifth month before the month in which the period
specified in paragraph (4) begins.
(B) For purposes of paragraph (1)(F)(i), each month in the
period commencing with the first month for which such widow or
surviving divorced wife is first eligible for supplemental
security income benefits under title XVI, or State
supplementary payments of the type referred to in section
1616(a) (or payments of the type described in section 212(a) of
Public Law 93 66) which are paid by the Commissioner of Social
Security under an agreement referred to in section 1616(a) (or
in section 212(b) of Public Law 93 66), shall be included as
one of the months of such waiting period for which the
requirements of subparagraph (A) have been met.
(6) In the case of an individual entitled to monthly
insurance benefits payable under this section for any month
prior to January 1973 whose benefits were not redetermined
under section 102(g) of the Social Security Amendments of 1972,
such benefits shall not be redetermined pursuant to such
section, but shall be increased pursuant to any general benefit
increase (as defined in section 215(i)(3)) or any increase in
benefits made under or pursuant to section 215(i), including
for this purpose the increase provided effective for March
1974, as though such redetermination had been made.
(7) Any certificate filed pursuant to paragraph
(1)(C)(ii)(III) shall be effective for purposes of this
subsection--
(A) for the month in which it is filed and for any
month thereafter, and
(B) for months, in the period designated by the
individual filing such certificate, of one or more
consecutive months (not exceeding 12) immediately
preceding the month in which such certificate is filed;
except that such certificate shall not be effective for any
month before the month in which she attains age 62.
(8) An individual shall be deemed to be under a disability
for purposes of paragraph (1)(B)(ii) if such individual is
eligible for supplemental security income benefits under title
XVI, or State supplementary payments of the type referred to in
section 1616(a) (or payments of the type described in section
212(a) of Public Law 93-66) which are paid by the Commissioner
of Social Security under an agreement referred to in section
1616(a) (or in section 212(b) of Public Law 93-66), for the
month for which all requirements of paragraph (1) for
entitlement to benefits under this subsection (other than being
under a disability) are met.
Widower's Insurance Benefits
(f)(1) The widower (as defined in section 216(g)) and every
surviving divorced husband (as defined in section 216(d)) of an
individual who died a fully insured individual, if such widower
or such surviving divorced husband--
(A) is not married,
(B)(i) has attained age 60, or (ii) has attained age
50 but has not attained age 60 and is under a
disability (as defined in section 223(d)) which began
before the end of the period specified in paragraph
(4),
(C)(i) has filed application for widower's insurance
benefits,
(ii) was entitled to husband's insurance benefits, on
the basis of the wages and self-employment income of
such individual, for the month preceding the month in
which such individual died, and--
(I) has attained retirement age (as defined
in section 216(l)),
(II) is not entitled to benefits under
subsection (a) or section 223, or
(III) has in effect a certificate (described
in paragraph (8)) filed by him with the
Commissioner of Social Security, in accordance
with regulations prescribed by the Commissioner
of Social Security, in which he elects to
receive widower's insurance benefits (subject
to reduction as provided in subsection (q)), or
(iii) was entitled, on the basis of such wages and
self-employment income, to father's insurance benefits
for the month preceding the month in which he attained
retirement age (as defined in section 216(l)), and
(D) is not entitled to old-age insurance benefits, or
is entitled to old-age insurance benefits each of which
is less than the primary insurance amount (as
determined after application of subparagraphs (B) and
(C) of paragraph (3)) of such deceased individual,
shall be entitled to a widower's insurance benefit for each
month, beginning with--
(E) if he satisfies subparagraph (B) by reason of
clause (i) thereof, the first month in which he becomes
so entitled to such insurance benefits, or
(F) if he satisfies subparagraph (B) by reason of
clause (ii) thereof--
(i) the first month after his waiting period
(as defined in paragraph (5)) in which he
becomes so entitled to such insurance benefits,
or
(ii) the first month during all of which he
is under a disability and in which he becomes
so entitled to such insurance benefits, but
only if he was previously entitled to insurance
benefits under this subsection on the basis of
being under a disability and such first month
occurs (I) in the period specified in paragraph
(4) and (II) after the month in which a
previous entitlement to such benefits on such
basis terminated,
and ending with the month preceding the first month in which
any of the following occurs: he remarries, dies, or becomes
entitled to an old-age insurance benefit equal to or exceeding
the primary insurance amount (as determined after application
of subparagraphs (B) and (C) of paragraph (3)) of such deceased
individual, or, if he became entitled to such benefits before
he attained age 60, subject to section 223(e), the termination
month (unless he attains retirement age (as defined in section
216(l)) on or before the last day of such termination month).
For purposes of the preceding sentence, the termination month
for any individual shall be the third month following the month
in which his disability ceases; except that, in the case of an
individual who has a period of trial work which ends as
determined by application of section 222(c)(4)(A), the
termination month shall be the earlier of (I) the third month
following the earliest month after the end of such period of
trial work with respect to which such individual is determined
to no longer be suffering from a disabling physical or mental
impairment, or (II) the third month following the earliest
month in which such individual engages or is determined able to
engage in substantial gainful activity, but in no event earlier
than the first month occurring after the 36 months following
such period of trial work in which he engages or is determined
able to engage in substantial gainful activity.
(2)(A) Except as provided in [subsection (k)(5), subsection
(q)] subsection (q), and subparagraph (D) of this paragraph,
such widower's insurance benefit for each month shall be equal
to the primary insurance amount (as determined for purposes of
this subsection after application of subparagraphs (B) and (C))
of such deceased individual.
(B)(i) For purposes of this subsection, in any case in which
such deceased individual dies before attaining age 62 and
section 215(a)(1) (as in effect after December 1978) is
applicable in determining such individual's primary insurance
amount--
(I) such primary insurance amount shall be determined
under the formula set forth in section 215(a)(1)(B)(i)
and (ii) which is applicable to individuals who
initially become eligible for old-age insurance
benefits in the second year after the year specified in
clause (ii),
(II) the year specified in clause (ii) shall be
substituted for the second calendar year specified in
section 215(b)(3)(A)(ii)(I), and
(III) such primary insurance amount shall be
increased under section 215(i) as if it were the
primary insurance amount referred to in section
215(i)(2)(A)(ii)(II), except that it shall be increased
only for years beginning after the first year after the
year specified in clause (ii).
(ii) The year specified in this clause is the earlier of--
(I) the year in which the deceased individual
attained age 60, or would have attained age 60 had she
lived to that age, or
(II) the second year preceding the year in which the
widower or surviving divorced husband first meets the
requirements of paragraph (1)(B) or the second year
preceding the year in which the deceased individual
died, whichever is later.
(iii) This subparagraph shall apply with respect to any
benefit under this subsection only to the extent its
application does not result in a primary insurance amount for
purposes of this subsection which is less than the primary
insurance amount otherwise determined for such deceased
individual under section 215.
(C) If such deceased individual was (or upon application
would have been) entitled to an old-age insurance benefit which
was increased (or subject to being increased) on account of
delayed retirement under the provisions of subsection (w),
then, for purposes of this subsection, such individual's
primary insurance amount, if less than the old-age insurance
benefit (increased, where applicable, under section [215(f)(5),
215(f)(6), or 215(f)(9)(B)] paragraph (5) or (6) of section
215(f) and under section 215(i) as if such individual were
still alive in the case of an individual who has died) which
she was receiving (or would upon application have received) for
the month prior to the month in which she died, shall be deemed
to be equal to such old-age insurance benefit, and
(notwithstanding the provisions of paragraph (3) of such
subsection (w)) the number of increment months shall include
any month in the months of the calendar year in which she died,
prior to the month in which she died, which satisfy the
conditions in paragraph (2) of such subsection (w).
(D) If the deceased individual (on the basis of whose wages
and self-employment income a widower or surviving divorced
husband is entitled to widower's insurance benefits under this
subsection) was, at any time, entitled to an old-age insurance
benefit which was reduced by reason of the application of
subsection (q), the widower's insurance benefit of such widower
or surviving divorced husband for any month shall, if the
amount of the widower's insurance benefit of such widower or
surviving divorced husband (as determined under subparagraph
(A) and after application of subsection (q)) is greater than--
(i) the amount of the old-age insurance benefit to
which such deceased individual would have been entitled
(after application of subsection (q)) for such month if
such individual were still living and [section
215(f)(5), 215(f)(6), or 215(f)(9)(B)] paragraph (5) or
(6) of section 215(f) were applied, where applicable,
and
(ii) 82\1/2\ percent of the primary insurance amount
(as determined without regard to subparagraph (C)) of
such deceased individual;
be reduced to the amount referred to in clause (i), or (if
greater) the amount referred to in clause (ii).
(3) For purposes of paragraph (1), if--
(A) a widower or surviving divorced husband marries
after attaining age 60 (or after attaining age 50 if he
was entitled before such marriage occurred to benefits
based on disability under this subsection), or
(B) a disabled widower or surviving divorced husband
described in paragraph (1)(B)(ii) marries after
attaining age 50,
such marriage shall be deemed not to have occurred.
(4) The period referred to in paragraph (1)(B)(ii), in the
case of any widower or surviving divorced husband, is the
period beginning with whichever of the following is the latest:
(A) the month in which occurred the death of the
fully insured individual referred to in paragraph (1)
on whose wages and self-employment income his benefits
are or would be based,
(B) the last month for which he was entitled to
father's insurance benefits on the basis of the wages
and self-employment income of such individual, or
(C) the month in which a previous entitlement to
widower's insurance benefits on the basis of such wages
and self-employment income terminated because his
disability had ceased,
and ending with the month before the month in which he attains
age 60, or, if earlier, with the close of the eighty-fourth
month following the month with which such period began.
(5)(A) The waiting period referred to in paragraph (1)(F), in
the case of any widower or surviving divorced husband, is the
earliest period of five consecutive calendar months--
(i) throughout which he has been under a disability,
and
(ii) which begins not earlier than with whichever of
the following is the later: (I) the first day of the
seventeenth month before the month in which his
application is filed, or (II) the first day of the
fifth month before the month in which the period
specified in paragraph (4) begins.
(B) For purposes of paragraph (1)(F)(i), each month
in the period commencing with the first month for which
such widower or surviving divorced husband is first
eligible for supplemental security income benefits
under title XVI, or State supplementary payments of the
type referred to in section 1616(a) (or payments of the
type described in section 212(a) of Public Law 93-66)
which are paid by the Commissioner of Social Security
under an agreement referred to in section 1616(a) (or
in section 212(b) of Public Law 93-66), shall be
included as one of the months of such waiting period
for which the requirements of subparagraph (A) have
been met.
(6) In the case of an individual entitled to monthly
insurance benefits payable under this section for any month
prior to January 1973 whose benefits were not redetermined
under section 102(g) of the Social Security Amendments of 1972,
such benefits shall not be redetermined pursuant to such
section, but shall be increased pursuant to any general benefit
increase (as defined in section 215(i)(3)) or any increase in
benefits made under or pursuant to section 215(i), including
for this purpose the increase provided effective for March
1974, as though such redetermination had been made.
(7) Any certificate filed pursuant to paragraph
(1)(C)(ii)(III) shall be effective for purposes of this
subsection--
(A) for the month in which it is filed and for any
month thereafter, and
(B) for months, in the period designated by the
individual filing such certificate, of one or more
consecutive months (not exceeding 12) immediately
preceding the month in which such certificate is filed;
except that such certificate shall not be effective for any
month before the month in which he attains age 62.
(8) An individual shall be deemed to be under a disability
for purposes of paragraph (1)(B)(ii) if such individual is
eligible for supplemental security income benefits under title
XVI, or State supplementary payments of the type referred to in
section 1616(a) (or payments of the type described in section
212(a) of Public Law 93-66) which are paid by the Commissioner
of Social Security under an agreement referred to in such
section 1616(a) (or in section 212(b) of Public Law 93-66), for
the month for which all requirements of paragraph (1) for
entitlement to benefits under this subsection (other than being
under a disability) are met.
Mother's and Father's Insurance Benefits
(g)(1) The surviving spouse and every surviving divorced
parent (as defined in section 216(d)) of an individual who died
a fully or currently insured individual, if such surviving
spouse or surviving divorced parent--
(A) is not married,
(B) is not entitled to a surviving spouse's insurance
benefit,
(C) is not entitled to old-age insurance benefits, or
is entitled to old-age insurance benefits each of which
is less than three-fourths of the primary insurance
amount of such individual,
(D) has filed application for mother's or father's
insurance benefits, or was entitled to a spouse's
insurance benefit on the basis of the wages and self-
employment income of such individual for the month
preceding the month in which such individual died,
(E) at the time of filing such application has in his
or her care a child of such individual entitled to a
child's insurance benefit, and
(F) in the case of a surviving divorced parent--
(i) the child referred to in subparagraph (E)
is his or her son, daughter, or legally adopted
child, and
(ii) the benefits referred to in such
subparagraph are payable on the basis of such
individual's wages and self-employment income,
shall (subject to subsection (s)) be entitled to a mother's or
father's insurance benefit for each month, beginning with the
first month in which he or she becomes so entitled to such
insurance benefits and ending with the month preceding the
first month in which any of the following occurs: no child of
such deceased individual is entitled to a child's insurance
benefit, such surviving spouse or surviving divorced parent
becomes entitled to an old-age insurance benefit equal to or
exceeding three-fourths of the primary insurance amount of such
deceased individual, he or she becomes entitled to a surviving
spouse's insurance benefit, he or she remarries, or he or she
dies. Entitlement to such benefits shall also end, in the case
of a surviving divorced parent, with the month immediately
preceding the first month in which no son, daughter, or legally
adopted child of such surviving divorced parent is entitled to
a child's insurance benefit on the basis of the wages and self-
employment income of such deceased individual.
(2) Such mother's or father's insurance benefit for each
month shall be equal to three-fourths of the primary insurance
amount of such deceased individual.
(3) In the case of a surviving spouse or surviving divorced
parent who marries--
(A) an individual entitled to benefits under this
subsection or subsection (a), (b), (c), (e), (f), or
(h), or under section 223(a), or
(B) an individual who has attained the age of
eighteen and is entitled to benefits under subsection
(d),
the entitlement of such surviving spouse or surviving divorced
parent to benefits under this subsection shall, notwithstanding
the provisions of paragraph (1) but subject to subsection (s),
not be terminated by reason of such marriage.
Parent's Insurance Benefits
(h)(1) Every parent (as defined in this subsection) of an
individual who died a fully insured individual, if such
parent--
(A) has attained age 62,
(B)(i) was receiving at least one-half of his support
from such individual at the time of such individual's
death or, if such individual had a period of disability
which did not end prior to the month in which he died,
at the time such period began or at the time of such
death, and (ii) filed proof of such support within two
years after the date of such death, or, if such
individual had such a period of disability, within two
years after the month in which such individual filed
application with respect to such period of disability
or two years after the date of such death, as the case
may be,
(C) has not married since such individual's death,
(D) is not entitled to old-age insurance benefits, or
is entitled to old-age insurance benefits each of which
is less than 82\1/2\ percent of the primary insurance
amount of such deceased individual if the amount of the
parent's insurance benefit for such month is
determinable under paragraph (2)(A) (or 75 percent of
such primary insurance amount in any other case), and
(E) has filed application for parent's insurance
benefits,
shall be entitled to a parent's insurance benefit for each
month beginning with the first month after August 1950 in which
such parent becomes so entitled to such parent's insurance
benefits and ending with the month preceding the first month in
which any of the following occurs: such parent dies, marries,
or becomes entitled to an old-age insurance benefit equal to or
exceeding 82\1/2\ percent of the primary insurance amount of
such deceased individual if the amount of the parent's
insurance benefit for such month is determinable under
paragraph (2)(A) (or 75 percent of such primary insurance
amount in any other case).
(2)(A) Except as provided in subparagraphs (B) and (C), such
parent's insurance benefit for each month shall be equal to
82\1/2\ percent of the primary insurance amount of such
deceased individual.
(B) For any month for which more than one parent is entitled
to parent's insurance benefits on the basis of such deceased
individual's wages and self-employment income, such benefit for
each such parent for such month shall (except as provided in
subparagraph (C)) be equal to 75 percent of the primary
insurance amount of such deceased individual.
(C) In any case in which--
(i) any parent is entitled to a parent's insurance
benefit for a month on the basis of a deceased
individual's wages and self-employment income, and
(ii) another parent of such deceased individual is
entitled to a parent's insurance benefit for such month
on the basis of such wages and self-employment income,
and on the basis of an application filed after such
month and after the month in which the application for
the parent's benefits referred to in clause (i) was
filed,
the amount of the parent's insurance benefit of the parent
referred to in clause (i) for the month referred to in such
clause shall be determined under subparagraph (A) instead of
subparagraph (B) and the amount of the parent's insurance
benefit of a parent referred to in clause (ii) for such month
shall be equal to 150 percent of the primary insurance amount
of the deceased individual minus the amount (before the
application of section 203(a)) of the benefit for such month of
the parent referred to in clause (i).
(3) As used in this subsection, the term ``parent'' means the
mother or father of an individual, a stepparent of an
individual by a marriage contracted before such individual
attained the age of sixteen, or an adopting parent by whom an
individual was adopted before he attained the age of sixteen.
(4) In the case of a parent who marries--
(A) an individual entitled to benefits under this
subsection or subsection (b), (c), (e), (f), or (g), or
(B) an individual who has attained the age of
eighteen and is entitled to benefits under subsection
(d),
such parent's entitlement to benefits under this subsection
shall, notwithstanding the provisions of paragraph (1) but
subject to subsection (s), not be terminated by reason of such
marriage.
Lump-Sum Death Payments
(i) Upon the death, after August 1950, of an individual who
died a fully or currently insured individual, an amount equal
to three times such individual's primary insurance amount (as
determined without regard to the amendments made by section
2201 of the Omnibus Budget Reconciliation Act of 1981, relating
to the repeal of the minimum benefit provisions), or an amount
equal to $255, whichever is the smaller, shall be paid in a
lump sum to the person, if any, determined by the Commissioner
of Social Security to be the widow or widower of the deceased
and to have been living in the same household with the deceased
at the time of death. If there is no such person, or if such
person dies before receiving payment, then such amount shall be
paid--
(1) to a widow (as defined in section 216(c)) or
widower (as defined in section 216(g)) who is entitled
(or would have been so entitled had a timely
application been filed), on the basis of the wages and
self-employment income of such insured individual, to
benefits under subsection (e), (f), or (g) of this
section for the month in which occurred such
individual's death; or
(2) if no person qualifies for payment under
paragraph (1), or if such person dies before receiving
payment, in equal shares to each person who is entitled
(or would have been so entitled had a timely
application been filed), on the basis of the wages and
self-employment income of such insured individual, to
benefits under subsection (d) of this section for the
month in which occurred such individual's death.
No payment shall be made to any person under this subsection
unless application therefor shall have been filed, by or on
behalf of such person (whether or not legally competent), prior
to the expiration of two years after the date of death of such
insured individual, or unless such person was entitled to
wife's or husband's insurance benefits, on the basis of the
wages and self-employment income of such insured individual,
for the month preceding the month in which such individual
died. In the case of any individual who died outside the forty-
eight States and the District of Columbia after December 1953
and before January 1, 1957, whose death occurred while he was
in the active military or naval service of the United States,
and who is returned to any of such States, the District of
Columbia, Alaska, Hawaii, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, or American Samoa for interment or
reinterment, the provisions of the preceding sentence shall not
prevent payment to any person under the second sentence of this
subsection if application for a lump-sum death payment with
respect to such deceased individual is filed by or on behalf of
such person (whether or not legally competent) prior to the
expiration of two years after the date of such interment or
reinterment. In the case of any individual who died outside the
fifty States and the District of Columbia after December 1956
while he was performing service, as a member of a uniformed
service, to which the provisions of section 210(l)(1) are
applicable, and who is returned to any State, or to any
Territory or possession of the United States, for interment or
reinterment, the provisions of the third sentence of this
subsection shall not prevent payment to any person under the
second sentence of this subsection if application for a lump-
sum death payment with respect to such deceased individual is
filed by or on behalf of such person (whether or not legally
competent) prior to the expiration of two years after the date
of such interment or reinterment.
Application for Monthly Insurance Benefits
(j)(1) Subject to the limitations contained in paragraph (4),
an individual who would have been entitled to a benefit under
subsection (a), (b), (c), (d), (e), (f), (g), or (h) for any
month after August 1950 had he filed application therefor prior
to the end of such month shall be entitled to such benefit for
such month if he files application therefor prior to--
(A) the end of the twelfth month immediately
succeeding such month in any case where the individual
(i) is filing application for a benefit under
subsection (e) or (f), and satisfies paragraph (1)(B)
of such subsection by reason of clause (ii) thereof, or
(ii) is filing application for a benefit under
subsection (b), (c), or (d) on the basis of the wages
and self-employment income of a person entitled to
disability insurance benefits, or
(B) the end of the sixth month immediately succeeding
such month in any case where subparagraph (A) does not
apply.
Any benefit under this title for a month prior to the month in
which application is filed shall be reduced, to any extent that
may be necessary, so that it will not render erroneous any
benefit which, before the filing of such application, the
Commissioner of Social Security has certified for payment for
such prior month.
(2) An application for any monthly benefits under this
section filed before the first month in which the applicant
satisfies the requirements for such benefits shall be deemed a
valid application (and shall be deemed to have been filed in
such first month) only if the applicant satisfies the
requirements for such benefits before the Commissioner of
Social Security makes a final decision on the application and
no request under section 205(b) for notice and opportunity for
a hearing thereon is made or, if such a request is made, before
a decision based upon the evidence adduced at the hearing is
made (regardless of whether such decision becomes the final
decision of the Commissioner of Social Security).
(3) Notwithstanding the provisions of paragraph (1), an
individual may, at his option, waive entitlement to any benefit
referred to in paragraph (1) for any one or more consecutive
months (beginning with the earliest month for which such
individual would otherwise be entitled to such benefit) which
occur before the month in which such individual files
application for such benefit; and, in such case, such
individual shall not be considered as entitled to such benefits
for any such month or months before such individual filed such
application. An individual shall be deemed to have waived such
entitlement for any such month for which such benefit would,
under the second sentence of paragraph (1), be reduced to zero.
(4)(A) Except as provided in subparagraph (B), no individual
shall be entitled to a monthly benefit under subsection (a),
(b), (c), (e), or (f) for any month prior to the month in which
he or she files an application for benefits under that
subsection if the amount of the monthly benefit to which such
individual would otherwise be entitled for any such month would
be subject to reduction pursuant to subsection (q).
(B)(i) If the individual applying for retroactive benefits is
a widow, surviving divorced wife, or widower and is under a
disability (as defined in section 223(d)), and such individual
would, except for subparagraph (A), be entitled to retroactive
benefits as a disabled widow or widower or disabled surviving
divorced wife for any month before attaining the age of 60,
then subparagraph (A) shall not apply with respect to such
month or any subsequent month.
(ii) Subparagraph (A) does not apply to a benefit under
subsection (e) or (f) for the month immediately preceding the
month of application, if the insured individual died in that
preceding month.
(iii) As used in this subparagraph, the term ``retroactive
benefits'' means benefits to which an individual becomes
entitled for a month prior to the month in which application
for such benefits is filed.
(5) In any case in which it is determined to the satisfaction
of the Commissioner of Social Security that an individual
failed as of any date to apply for monthly insurance benefits
under this title by reason of misinformation provided to such
individual by any officer or employee of the Social Security
Administration relating to such individual's eligibility for
benefits under this title, such individual shall be deemed to
have applied for such benefits on the later of--
(A) the date on which such misinformation was
provided to such individual, or
(B) the date on which such individual met all
requirements for entitlement to such benefits (other
than application therefor).
Simultaneous Entitlement to Benefits
(k)(1) A child, entitled to child's insurance benefits on the
basis of the wages and self-employment income of an insured
individual, who would be entitled, on filing application, to
child's insurance benefits on the basis of the wages and self-
employment income of some other insured individual, shall be
deemed entitled, subject to the provisions of paragraph (2)
hereof, to child's insurance benefits on the basis of the wages
and self-employment income of such other individual if an
application for child's insurance benefits on the basis of the
wages and self-employment income of such other individual has
been filed by any other child who would, on filing application,
be entitled to child's insurance benefits on the basis of the
wages and self-employment income of both such insured
individuals.
(2)(A) Any child who under the preceding provisions of this
section is entitled for any month to child's insurance benefits
on the wages and self-employment income of more than one
insured individual shall, notwithstanding such provisions, be
entitled to only one of such child's insurance benefits for
such month. Such child's insurance benefits for such month
shall be the benefit based on the wages and self-employment
income of the insured individual who has the greatest primary
insurance amount, except that such child's insurance benefits
for such month shall be the largest benefit to which such child
could be entitled under subsection (d) (without the application
of section 203(a)) or subsection (m) if entitlement to such
benefit would not, with respect to any person, result in a
benefit lower (after the application of section 203(a)) than
the benefit which would be applicable if such child were
entitled on the wages and self-employment income of the
individual with the greatest primary insurance amount. Where
more than one child is entitled to child's insurance benefits
pursuant to the preceding provisions of this paragraph, each
such child who is entitled on the wages and self-employment
income of the same insured individuals shall be entitled on the
wages and self-employment income of the same such insured
individual.
(B) Any individual (other than an individual to whom
subsection (e)(3) or (f)(3) applies) who, under the preceding
provisions of this section and under the provisions of section
223, is entitled for any month to more than one monthly
insurance benefit (other than an old-age or disability
insurance benefit) under this title shall be entitled to only
one such monthly benefit for such month, such benefit to be the
largest of the monthly benefits to which he (but for this
subparagraph (B)) would otherwise be entitled for such month.
Any individual who is entitled for any month to more than one
widow's or widower's insurance benefit to which subsection
(e)(3) or (f)(3) applies shall be entitled to only one such
benefit for such month, such benefit to be the largest of such
benefits.
(3)(A) If an individual is entitled to an old-age or
disability insurance benefit for any month and to any other
monthly insurance benefit for such month, such other insurance
benefit for such month, after any reduction under subsection
(q), subsection (e)(2) or (f)(2), and any reduction under
section 203(a), shall be reduced, but not below zero, by an
amount equal to such old-age or disability insurance benefit
(after reduction under such subsection (q)).
(B) If an individual is entitled for any month to a widow's
or widower's insurance benefit to which subsection (e)(3) or
(f)(3) applies and to any other monthly insurance benefit under
section 202 (other than an old-age insurance benefit), such
other insurance benefit for such month, after any reduction
under subparagraph (A), any reduction under subsection (q), and
any reduction under section 203(a), shall be reduced, but not
below zero, by an amount equal to such widow's or widower's
insurance benefit after any reduction or reductions under such
subparagraph (A) and such section 203(a).
(4) Any individual who, under this section and section 223,
is entitled for any month to both an old-age insurance benefit
and a disability insurance benefit under this title shall be
entitled to only the larger of such benefits for such month,
except that, if such individual so elects, he shall instead be
entitled to only the smaller of such benefits for such month.
[(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 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.]
Entitlement to Survivor Benefits Under Railroad Retirement Act
(l) If any person would be entitled, upon filing application
therefor to an annuity under section 2 of the Railroad
Retirement Act of 1974, or to a lump sum payment under section
6(b) of such Act, with respect to the death of an employee (as
defined in such Act) no lump sum death payment, and no monthly
benefit for the month in which such employee died or for any
month thereafter, shall be paid under this section to any
person on the basis of the wages and self employment income of
such employee.
Termination of Benefits Upon Removal of Primary Beneficiary
(n)(1) If any individual is (after the date of enactment of
this subsection) removed under 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, then, notwithstanding any other provisions of this title--
(A) no monthly benefit under this section or section
223 shall be paid to such individual, on the basis of
his wages and self employment income, for any month
occurring (i) after the month in which the Commissioner
of Social Security is notified by the Attorney General
or the Secretary of Homeland Security that such
individual has been so removed, and (ii) before the
month in which such individual is thereafter lawfully
admitted to the United States for permanent residence,
(B) if no benefit could be paid to such individual
(or if no benefit could be paid to him if he were
alive) for any month by reason of subparagraph (A), no
monthly benefit under this section shall be paid, on
the basis of his wages and self employment income, for
such month to any other person who is not a citizen of
the United States and is outside the United States for
any part of such month, and
(C) no lump sum death payment shall be made on the
basis of such individual's wages and self employment
income if he dies (i) in or after the month in which
such notice is received, and (ii) before the month in
which he is thereafter lawfully admitted to the United
States for permanent residence.
Section 203(b), (c), and (d) of this Act shall not apply with
respect to any such individual for any month for which no
monthly benefit may be paid to him by reason of this paragraph.
(2)(A) In the case of the removal of any individual
under any of the paragraphs of 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, the revocation and setting
aside of citizenship of any individual under section
340 of the Immigration and Nationality Act in any case
in which the revocation and setting aside is based on
conduct described in section 212(a)(3)(E)(i) of such
Act (relating to participation in Nazi persecution), or
the renunciation of nationality by any individual under
section 349(a)(5) of such Act pursuant to a settlement
agreement with the Attorney General where the
individual has admitted to conduct described in section
212(a)(3)(E)(i) of the Immigration and Nationality Act
(relating to participation in Nazi persecution)
occurring after the date of the enactment of the No
Social Security for Nazis Act, the Attorney General or
the Secretary of Homeland Security shall notify the
Commissioner of Social Security of such removal,
revocation and setting aside, or renunciation of
nationality not later than 7 days after such removal,
revocation and setting aside, or renunciation of
nationality (or, in the case of any such removal,
revocation and setting aside, of renunciation of
nationality that has occurred prior to the date of the
enactment of the No Social Security for Nazis Act, not
later than 7 days after such date of enactment).
(B)(i) Not later than 30 days after the enactment of
the No Social Security for Nazis Act, the Attorney
General shall certify to the Committee on Ways and
Means of the House of Representatives and the Committee
on Finance of the Senate that the Commissioner of
Social Security has been notified of each removal,
revocation and setting aside, or renunciation of
nationality described in subparagraph (A).
(ii) Not later than 30 days after each notification
with respect to an individual under subparagraph (A),
the Commissioner of Social Security shall certify to
the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the
Senate that such individual's benefits were terminated
under this subsection.
(3) For purposes of paragraphs (1) and (2) of this
subsection--
(A) an individual against whom a final order of
removal has been issued under section 237(a)(4)(D) of
the Immigration and Nationality Act on grounds of
participation in Nazi persecution shall be considered
to have been removed under such section as of the date
on which such order became final;
(B) an individual with respect to whom an order
admitting the individual to citizenship has been
revoked and set aside under section 340 of the
Immigration and Nationality Act in any case in which
the revocation and setting aside is based on conduct
described in section 212(a)(3)(E)(i) of such Act
(relating to participation in Nazi persecution),
concealment of a material fact about such conduct, or
willful misrepresentation about such conduct shall be
considered to have been removed as described in
paragraph (1) as of the date of such revocation and
setting aside; and
(C) an individual who pursuant to a settlement
agreement with the Attorney General has admitted to
conduct described in section 212(a)(3)(E)(i) of the
Immigration and Nationality Act (relating to
participation in Nazi persecution) and who pursuant to
such settlement agreement has lost status as a national
of the United States by a renunciation under section
349(a)(5) of the Immigration and Nationality Act shall
be considered to have been removed as described in
paragraph (1) as of the date of such renunciation.
(4) In the case of any individual described in
paragraph (3) whose monthly benefits are terminated
under paragraph (1)--
(A) no benefits otherwise available under section 202
based on the wages and self-employment income of any
other individual shall be paid to such individual for
any month after such termination; and
(B) no supplemental security income benefits under
title XVI shall be paid to such individual for any such
month, including supplementary payments pursuant to an
agreement for Federal administration under section
1616(a) and payments pursuant to an agreement entered
into under section 212(b) of Public Law 93-66
Application for Benefits by Survivors of Members and Former Members of
the Uniformed Services
(o) In the case of any individual who would be entitled to
benefits under subsection (d), (e), (g), or (h) upon filing
proper application therefor, the filing with the Administrator
of Veterans' Affairs by or on behalf of such individual of an
application for such benefits, on the form described in section
3005 of title 38, United States Code, shall satisfy the
requirement of such subsection (d), (e), (g), or (h) that an
application for such benefits be filed.
Extension of Period for Filing Proof of Support and Applications for
Lump-Sum Death Payment
(p) In any case in which there is a failure--
(1) to file proof of support under subparagraph (B)
of subsection (h)(1), or under clause (B) of subsection
(f)(1) of this section as in effect prior to the Social
Security Act Amendments of 1950, within the period
prescribed by such subparagraph or clause, or
(2) to file, in the case of a death after 1946,
application for a lump-sum death payment under
subsection (i), or under subsection (g) of this section
as in effect prior to the Social Security Act
Amendments of 1950, within the period prescribed by
such subsection,
any such proof or application, as the case may be, which is
filed after the expiration of such period shall be deemed to
have been filed within such period if it is shown to the
satisfaction of the Commissioner of Social Security that there
was good cause for failure to file such proof or application
within such period. The determination of what constitutes good
cause for purposes of this subsection shall be made in
accordance with regulations of the Commissioner of Social
Security.
Reduction of Benefit Amounts for Certain Beneficiaries
(q)(1) Subject to paragraph (9), if the first month for which
an individual is entitled to an old-age, wife's, husband's,
widow's, or widower's insurance benefit is a month before the
month in which such individual attains retirement age, the
amount of such benefit for such month and for any subsequent
month shall, subject to the succeeding paragraphs of this
subsection, be reduced by--
(A) \5/9\ of 1 percent of such amount if such benefit
is an old-age insurance benefit, \25/36\ of 1 percent
of such amount if such benefit is a wife's or husband's
insurance benefit, or \19/40\ of 1 percent of such
amount if such benefit is a widow's or widower's
insurance benefit, multiplied by
(B)(i) the number of months in the reduction period
for such benefit (determined under paragraph (6)), if
such benefit is for a month before the month in which
such individual attains retirement age, or
(ii) if less, the number of such months in the
adjusted reduction period for such benefit (determined
under paragraph (7)), if such benefit is (I) for the
month in which such individual attains age 62, or (II)
for the month in which such individual attains
retirement age.
(2) If an individual is entitled to a disability insurance
benefit for a month after a month for which such individual was
entitled to an old-age insurance benefit, such disability
insurance benefit for each month shall be reduced by the amount
such old-age insurance benefit would be reduced under
paragraphs (1) and (4) for such month had such individual
attained retirement age (as defined in section 216(l)) in the
first month for which he most recently became entitled to a
disability insurance benefit.
(3)(A) If the first month for which an individual both is
entitled to a wife's, husband's, widow's, or widower's
insurance benefit and has attained age 62 (in the case of a
wife's or husband's insurance benefit) or age 50 (in the case
of a widow's or widower's insurance benefit) is a month for
which such individual is also entitled to--
(i) an old-age insurance benefit (to which such
individual was first entitled for a month before he
attains retirement age (as defined in section 216(l))),
or
(ii) a disability insurance benefit,
then in lieu of any reduction under paragraph (1) (but subject
to the succeeding paragraphs of this subsection) such wife's,
husband's, widow's, or widower's insurance benefit for each
month shall be reduced as provided in subparagraph (B), (C), or
(D).
(B) For any month for which such individual is entitled to an
old-age insurance benefit and is not entitled to a disability
insurance benefit, such individual's wife's or husband's
insurance benefit shall be reduced by the sum of--
(i) the amount by which such old-age insurance
benefit is reduced under paragraph (1) for such month,
and
(ii) the amount by which such wife's or husband's
insurance benefit would be reduced under paragraph (1)
for such month if it were equal to the excess of such
wife's or husband's insurance benefit (before reduction
under this subsection) over such old-age insurance
benefit (before reduction under this subsection).
(C) For any month for which such individual is entitled to a
disability insurance benefit, such individual's wife's,
husband's, widow's, or widower's insurance benefit shall be
reduced by the sum of--
(i) the amount by which such disability insurance
benefit is reduced under paragraph (2) for such month
(if such paragraph applied to such benefit), and
(ii) the amount by which such wife's, husband's,
widow's, or widower's insurance benefit would be
reduced under paragraph (1) for such month if it were
equal to the excess of such wife's, husband's, widow's,
or widower's insurance benefit (before reduction under
this subsection) over such disability insurance benefit
(before reduction under this subsection).
(D) For any month for which such individual is entitled
neither to an old-age insurance benefit nor to a disability
insurance benefit, such individual's wife's, husband's,
widow's, or widower's insurance benefit shall be reduced by the
amount by which it would be reduced under paragraph (1).
(E) Notwithstanding subparagraph (A) of this paragraph, if
the first month for which an individual is entitled to a
widow's or widower's insurance benefit is a month for which
such individual is also entitled to an old-age insurance
benefit to which such individual was first entitled for that
month or for a month before she or he became entitled to a
widow's or widower's benefit, the reduction in such widow's or
widower's insurance benefit shall be determined under paragraph
(1).
(4) If--
(A) an individual is or was entitled to a benefit
subject to reduction under paragraph (1) or (3) of this
subsection, and
(B) such benefit is increased by reason of an
increase in the primary insurance amount of the
individual on whose wages and self-employment income
such benefit is based,
then the amount of the reduction of such benefit (after the
application of any adjustment under paragraph (7)) for each
month beginning with the month of such increase in the primary
insurance amount shall be computed under paragraph (1) or (3),
whichever applies, as though the increased primary insurance
amount had been in effect for and after the month for which the
individual first became entitled to such monthly benefit
reduced under such paragraph (1) or (3).
(5)(A) No wife's or husband's insurance benefit shall be
reduced under this subsection--
(i) for any month before the first month for which
there is in effect a certificate filed by him or her
with the Commissioner of Social Security, in accordance
with regulations prescribed by the Commissioner of
Social Security, in which he or she elects to receive
wife's or husband's insurance benefits reduced as
provided in this subsection, or
(ii) for any month in which he or she has in his or
her care (individually or jointly with the person on
whose wages and self-employment income the wife's or
husband's insurance benefit is based) a child of such
person entitled to child's insurance benefits.
(B) Any certificate described in subparagraph (A)(i) shall be
effective for purposes of this subsection (and for purposes of
preventing deductions under section 203(c)(2))--
(i) for the month in which it is filed and for any
month thereafter, and
(ii) for months, in the period designated by the
individual filing such certificate, of one or more
consecutive months (not exceeding 12) immediately
preceding the month in which such certificate is filed;
except that such certificate shall not be effective for any
month before the month in which he or she attains age 62, nor
shall it be effective for any month to which subparagraph
(A)(ii) applies.
(C) If an individual does not have in his or her care a child
described in subparagraph (A)(ii) in the first month for which
he or she is entitled to a wife's or husband's insurance
benefit, and if such first month is a month before the month in
which he or she attains retirement age (as defined in section
216(l)), he or she shall be deemed to have filed in such first
month the certificate described in subparagraph (A)(i).
(D) No widow's or widower's insurance benefit for a month in
which he or she has in his or her care a child of his or her
deceased spouse (or deceased former spouse) entitled to child's
insurance benefits shall be reduced under this subsection below
the amount to which he or she would have been entitled had he
or she been entitled for such month to mother's or father's
insurance benefits on the basis of his or her deceased spouse's
(or deceased former spouse's) wages and self-employment income.
(6) For purposes of this subsection, the ``reduction period''
for an individual's old-age, wife's, husband's, widow's, or
widower's insurance benefit is the period--
(A) beginning--
(i) in the case of an old-age insurance
benefit, with the first day of the first month
for which such individual is entitled to such
benefit,
(ii) in the case of a wife's or husband's
insurance benefit, with the first day of the
first month for which a certificate described
in paragraph (5)(A)(i) is effective, or
(iii) in the case of a widow's or widower's
insurance benefit, with the first day of the
first month for which such individual is
entitled to such benefit or the first day of
the month in which such individual attains age
60, whichever is the later, and
(B) ending with the last day of the month before the
month in which such individual attains retirement age.
(7) For purposes of this subsection, the ``adjusted reduction
period'' for an individual's old-age, wife's, husband's,
widow's, or widower's insurance benefit is the reduction period
prescribed in paragraph (6) for such benefit, excluding--
(A) any month in which such benefit was subject to
deductions under section 203(b), 203(c)(1), 203(d)(1),
or 222(b),
(B) in the case of wife's or husband's insurance
benefits, any month in which such individual had in his
or her care (individually or jointly with the person on
whose wages and self-employment income such benefit is
based) a child of such person entitled to child's
insurance benefits,
(C) in the case of wife's or husband's insurance
benefits, any month for which such individual was not
entitled to such benefits because of the occurrence of
an event that terminated her or his entitlement to such
benefits,
(D) in the case of widow's or widower's insurance
benefits, any month in which the reduction in the
amount of such benefit was determined under paragraph
(5)(D),
(E) in the case of widow's or widower's insurance
benefits, any month before the month in which she or he
attained age 62, and also for any later month before
the month in which she or he attained retirement age,
for which she or he was not entitled to such benefit
because of the occurrence of an event that terminated
her or his entitlement to such benefits, and
(F) in the case of old-age insurance benefits, any
month for which such individual was entitled to a
disability insurance benefit.
(8) This subsection shall be applied after reduction under
section 203(a) and before application of section 215(g). If the
amount of any reduction computed under paragraph (1), (2), or
(3) is not a multiple of $0.10, it shall be increased to the
next higher multiple of $0.10.
(9) The amount of the reduction for early retirement
specified in paragraph (1)--
(A) for old-age insurance benefits, wife's insurance
benefits, and husband's insurance benefits, shall be
the amount specified in such paragraph for the first 36
months of the reduction period (as defined in paragraph
(6)) or adjusted reduction period (as defined in
paragraph (7)), and five-twelfths of 1 percent for any
additional months included in such periods; and
(B) for widow's insurance benefits and widower's
insurance benefits, shall be periodically revised by
the Commissioner of Social Security such that--
(i) the amount of the reduction at early
retirement age as defined in section 216(l)
shall be 28.5 percent of the full benefit; and
(ii) the amount of the reduction for each
month in the reduction period (specified in
paragraph (6)) or the adjusted reduction period
(specified in paragraph (7)) shall be
established by linear interpolation between
28.5 percent at the month of attainment of
early retirement age and 0 percent at the month
of attainment of retirement age.
(10) For purposes of applying paragraph (4), with respect to
monthly benefits payable for any month after December 1977 to
an individual who was entitled to a monthly benefit as reduced
under paragraph (1) or (3) prior to January 1978, the amount of
reduction in such benefit for the first month for which such
benefit is increased by reason of an increase in the primary
insurance amount of the individual on whose wages and self-
employment income such benefit is based and for all subsequent
months (and similarly for all subsequent increases) shall be
increased by a percentage equal to the percentage increase in
such primary insurance amount (such increase being made in
accordance with the provisions of paragraph (8)). In the case
of an individual whose reduced benefit under this section is
increased as a result of the use of an adjusted reduction
period (in accordance with paragraphs (1) and (3) of this
subsection), then for the first month for which such increase
is effective, and for all subsequent months, the amount of such
reduction (after the application of the previous sentence, if
applicable) shall be determined--
(A) in the case of old-age, wife's, and husband's
insurance benefits, by multiplying such amount by the
ratio of (i) the number of months in the adjusted
reduction period to (ii) the number of months in the
reduction period,
(B) in the case of widow's and widower's insurance
benefits for the month in which such individual attains
age 62, by multiplying such amount by the ratio of (i)
the number of months in the reduction period beginning
with age 62 multiplied by \19/40\ of 1 percent, plus
the number of months in the adjusted reduction period
prior to age 62 multiplied by \19/40\ of 1 percent to
(ii) the number of months in the reduction period
multiplied by \19/40\ of 1 percent, and
(C) in the case of widow's and widower's insurance
benefits for the month in which such individual attains
retirement age (as defined in section 216(l)), by
multiplying such amount by the ratio of (i) the number
of months in the adjusted reduction period multiplied
by \19/40\ of 1 percent to (ii) the number of months in
the reduction period beginning with age 62 multiplied
by \19/40\ of 1 percent, plus the number of months in
the adjusted reduction period prior to age 62
multiplied by \19/40\ of 1 percent,
such determination being made in accordance with the provisions
of paragraph (8).
(11) When an individual is entitled to more than one monthly
benefit under this title and one or more of such benefits are
reduced under this subsection, paragraph (10) shall apply
separately to each such benefit reduced under this subsection
before the application of subsection (k) (pertaining to the
method by which monthly benefits are offset when an individual
is entitled to more than one kind of benefit) and the
application of this paragraph shall operate in conjunction with
paragraph (3).
Presumed Filing of Application by Individuals Eligible for Old-Age
Insurance Benefits and for Wife's or Husband's Insurance Benefits
(r)
(1) If an individual is eligible for a wife's or
husband's insurance benefit (except in the case of
eligibility pursuant to clause (ii) of subsection
(b)(1)(B) or subsection (c)(1)(B), as appropriate), in
any month for which the individual is entitled to an
old-age insurance benefit, such individual shall be
deemed to have filed an application for wife's or
husband's insurance benefits for such month.
(2) If an individual is eligible (but for section
202(k)(4)) for an old-age insurance benefit in any
month for which the individual is entitled to a wife's
or husband's insurance benefit (except in the case of
entitlement pursuant to clause (ii) of subsection
(b)(1)(B) or subsection (c)(1)(B), as appropriate),
such individual shall be deemed to have filed an
application for old-age insurance benefits--
(A) for such month, or
(B) if such individual is also entitled to a
disability insurance benefit for such month, in
the first subsequent month for which such
individual is not entitled to a disability
insurance benefit.
(3) For purposes of this subsection, an individual shall be
deemed eligible for a benefit for a month if, upon filing
application therefor in such month, he would be entitled to
such benefit for such month.
Child Over Specified Age to be Disregarded for Certain Benefit Purposes
Unless Disabled
(s)(1) For the purposes of subsections (b)(1), (c)(1),
(g)(1), (q)(5), and (q)(7) of this section and paragraphs (2),
(3), and (4) of section 203(c), a child who is entitled to
child's insurance benefits under subsection (d) for any month,
and who has attained the age of 16 but is not in such month
under a disability (as defined in section 223(d)), shall be
deemed not entitled to such benefits for such month, unless he
was under such a disability in the third month before such
month.
(2) So much of subsections (b)(3), (c)(4), (d)(5), (g)(3),
and (h)(4) of this section as precedes the semicolon, shall not
apply in the case of any child unless such child, at the time
of the marriage referred to therein, was under a disability (as
defined in section 223(d)) or had been under such a disability
in the third month before the month in which such marriage
occurred.
(3) The last sentence of subsection (c) of section 203,
subsection (f)(1)(C) of section 203, and subsections (b)(3)(B),
(c)(6)(B), (f)(3)(B), and (g)(6)(B) of section 216 shall not
apply in the case of any child with respect to any month
referred to therein unless in such month or the third month
prior thereto such child was under a disability (as defined in
section 223(d)).
Suspension of Benefits of Aliens Who Are Outside the United States;
Residency Requirements for Dependents and Survivors
(t)(1) Notwithstanding any other provision of this title, no
monthly benefits shall be paid under this section or under
section 223 to any individual who is not a citizen or national
of the United States for any month which is--
(A) after the sixth consecutive calendar month during
all of which the Commissioner of Social Security finds,
on the basis of information furnished to the
Commissioner by the Attorney General or information
which otherwise comes to the Commissioner's attention,
that such individual is outside the United States, and
(B) prior to the first month thereafter for all of
which such individual has been in the United States.
For purposes of the preceding sentence, after an individual has
been outside the United States for any period of thirty
consecutive days he shall be treated as remaining outside the
United States until he has been in the United States for a
period of thirty consecutive days.
(2) Subject to paragraph (11), paragraph (1) shall not apply
to any individual who is a citizen of a foreign country which
the Commissioner of Social Security finds has in effect a
social insurance or pension system which is of general
application in such country and under which--
(A) periodic benefits, or the actuarial equivalent
thereof, are paid on account of old age, retirement, or
death, and
(B) individuals who are citizens of the United States
but not citizens of such foreign country and who
qualify for such benefits are permitted to receive such
benefits or the actuarial equivalent thereof while
outside such foreign country without regard to the
duration of the absence.
(3) Paragraph (1) shall not apply in any case where its
application would be contrary to any treaty obligation of the
United States in effect on the date of the enactment of this
subsection.
(4) Subject to paragraph (11), paragraph (1) shall not apply
to any benefit for any month if--
(A) not less than forty of the quarters elapsing
before such month are quarters of coverage for the
individual on whose wages; and self-employment income
such benefit is based, or
(B) the individual on whose wages and self-employment
income such benefit is based has, before such month,
resided in the United States for a period or periods
aggregating ten years or more, or
(C) the individual entitled to such benefit is
outside the United States while in the active military
or naval service of the United States, or
(D) the individual on whose wages and self-employment
income such benefit is based died, before such month,
either (i) while on active duty or inactive duty
training (as those terms are defined in section
210(l)(2) and (3)) as a member of a uniformed service
(as defined in section 210(m)), or (ii) as the result
of a disease or injury which the Secretary of Veterans
Affairs determines was incurred or aggravated in line
of duty while on active duty (as defined in section
210(l)(2)), or an injury which he determines was
incurred or aggravated in line of duty while on
inactive duty training (as defined in section
210(l)(3)), as a member of a uniformed service (as
defined in section 210(m)), if the Secretary of
Veterans Affairs determines that such individual was
discharged or released from the period of such active
duty or inactive duty training under conditions other
than dishonorable, and if the Secretary of Veterans
Affairs certifies to the Commissioner of Social
Security his determinations with respect to such
individual under this clause, or
(E) the individual on whose employment such benefit
is based had been in service covered by the Railroad
Retirement Act of 1937 or 1974 which was treated as
employment covered by this Act pursuant to the
provisions of section 5(k)(1) of the Railroad
Retirement Act of 1937 or section 18(2) of the Railroad
Retirement Act of 1974;
except that subparagraphs (A) and (B) of this paragraph shall
not apply in the case of any individual who is a citizen of a
foreign country that has in effect a social insurance or
pension system which is of general application in such country
and which satisfies subparagraph (A) but not subparagraph (B)
of paragraph (2), or who is a citizen of a foreign country that
has no social insurance or pension system of general
application if at any time within five years prior to the month
in which the Social Security Amendments of 1967 are enacted (or
the first month thereafter for which his benefits are subject
to suspension under paragraph (1)) payments to individuals
residing in such country were withheld by the Treasury
Department under the first section of the Act of October 9,
1940 (31 U.S.C. 123).
(5) No person who is, or upon application would be, entitled
to a monthly benefit under this section for December 1956 shall
be deprived, by reason of paragraph (1), of such benefit or any
other benefit based on the wages and self-employment income of
the individual on whose wages and self-employment income such
monthly benefit for December 1956 is based.
(6) If an individual is outside the United States when he
dies and no benefit may, by reason of paragraph (1) or (10), be
paid to him for the month preceding the month in which he dies,
no lump-sum death payment may be made on the basis of such
individual's wages and self-employment income.
(7) Subsections (b), (c), and (d) of section 203 shall not
apply with respect to any individual for any month for which no
monthly benefit may be paid to him by reason of paragraph (1)
of this subsection.
(8) The Attorney General shall certify to the Commissioner of
Social Security such information regarding aliens who depart
from the United States to any foreign country (other than a
foreign country which is territorially contiguous to the
continental United States) as may be necessary to enable the
Commissioner of Social Security to carry out the purposes of
this subsection and shall otherwise aid, assist, and cooperate
with the Commissioner of Social Security in obtaining such
other information as may be necessary to enable the
Commissioner of Social Security to carry out the purposes of
this subsection.
(9) No payments shall be made under part A of title XVIII
with respect to items or services furnished to an individual in
any month for which the prohibition in paragraph (1) against
payment of benefits to him is applicable (or would be if he
were entitled to any such benefits).
(10) Notwithstanding any other provision of this title, no
monthly benefits shall be paid under this section or under
section 223, for any month beginning after June 30, 1968, to an
individual who is not a citizen or national of the United
States and who resides during such month in a foreign country
if payments for such month to individuals residing in such
country are withheld by the Treasury Department under the first
section of the Act of October 9, 1940 (31 U.S.C. 123).
(11)(A) Paragraph (2) and subparagraphs (A), (B), (C), and
(E) of paragraph (4) shall apply with respect to an
individual's monthly benefits under subsection (b), (c), (d),
(e), (f), (g), or (h) only if such individual meets the
residency requirements of this paragraph with respect to those
benefits.
(B) An individual entitled to benefits under subsection (b),
(c), (e), (f), or (g) meets the residency requirements of this
paragraph with respect to those benefits only if such
individual has resided in the United States, and while so
residing bore a spousal relationship to the person on whose
wages and self-employment income such entitlement is based, for
a total period of not less than 5 years. For purposes of this
subparagraph, a period of time for which an individual bears a
spousal relationship to another person consists of a period
throughout which the individual has been, with respect to such
other person, a wife, a husband, a widow, a widower, a divorced
wife, a divorced husband, a surviving divorced wife, a
surviving divorced husband, a surviving divorced mother, a
surviving divorced father, or (as applicable in the course of
such period) any two or more of the foregoing.
(C) An individual entitled to benefits under subsection (d)
meets the residency requirements of this paragraph with respect
to those benefits only if--
(i)(I) such individual has resided in the United
States (as the child of the person on whose wages and
self-employment income such entitlement is based) for a
total period of not less than 5 years, or
(II) the person on whose wages and self-employment
income such entitlement is based, and the individual's
other parent (within the meaning of subsection (h)(3)),
if any, have each resided in the United States for a
total period of not less than 5 years (or died while
residing in the United States), and
(ii) in the case of an individual entitled to such
benefits as an adopted child, such individual was
adopted within the United States by the person on whose
wages and self-employment income such entitlement is
based, and has lived in the United States with such
person and received at least one-half of his or her
support from such person for a period (beginning before
such individual attained age 18) consisting of--
(I) the year immediately before the month in
which such person became eligible for old-age
insurance benefits or disability insurance
benefits or died, whichever occurred first, or
(II) if such person had a period of
disability which continued until he or she
became entitled to old-age insurance benefits
or disability insurance benefits or died, the
year immediately before the month in which such
period of disability began.
(D) An individual entitled to benefits under subsection (h)
meets the residency requirements of this paragraph with respect
to those benefits only if such individual has resided in the
United States, and while so residing was a parent (within the
meaning of subsection (h)(3)) of the person on whose wages and
self-employment income such entitlement is based, for a total
period of not less than 5 years.
(E) This paragraph shall not apply with respect to any
individual who is a citizen or resident of a foreign country
with which the United States has an agreement in force
concluded pursuant to section 233, except to the extent
provided by such agreement.
Conviction of Subversive Activities, Etc.
(u)(1) If any individual is convicted of any offense
(committed after the date of the enactment of this subsection)
under--
(A) chapter 37 (relating to espionage and
censorship), chapter 105 (relating to sabotage), or
chapter 115 (relating to treason, sedition, and
subversive activities) of title 18 of the United States
Code, or
(B) section 4 of the Internal Security Act of 1950,
as amended,
then the court may, in addition to all other penalties provided
by law, impose a penalty that in determining whether any
monthly insurance benefit under this section or section 223 is
payable to such individual for the month in which he is
convicted or for any month thereafter, in determining the
amount of any such benefit payable to such individual for any
such month, and in determining whether such individual is
entitled to insurance benefits under part A of title XVIII for
any such month, there shall not be taken into account--
(C) any wages paid to such individual or to any other
individual in the calendar year in which such
conviction occurs or in any prior calendar year, and
(D) any net earnings from self-employment derived by
such individual or by any other individual during a
taxable year in which such conviction occurs or during
any prior taxable year.
(2) As soon as practicable after an additional penalty has,
pursuant to paragraph (1), been imposed with respect to any
individual, the Attorney General shall notify the Commissioner
of Social Security of such imposition.
(3) If any individual with respect to whom an additional
penalty has been imposed pursuant to paragraph (1) is granted a
pardon of the offense by the President of the United States,
such additional penalty shall not apply for any month beginning
after the date on which such pardon is granted.
Waiver of Benefits
(v)(1) Notwithstanding any other provisions of this title,
and subject to paragraph (3), in the case of any individual who
files a waiver pursuant to section 1402(g) of the Internal
Revenue Code of 1986 and is granted a tax exemption thereunder,
no benefits or other payments shall be payable under this title
to him, no payments shall be made on his behalf under part A of
title XVIII, and no benefits or other payments under this title
shall be payable on the basis of his wages and self-employment
income to any other person, after the filing of such waiver.
(2) Notwithstanding any other provision of this title, and
subject to paragraph (3), in the case of any individual who
files a waiver pursuant to section 3127 of the Internal Revenue
Code of 1986 and is granted a tax exemption thereunder, no
benefits or other payments shall be payable under this title to
him, no payments shall be made on his behalf under part A of
title XVIII, and no benefits or other payments under this title
shall be payable on the basis of his wages and self-employment
income to any other person, after the filing of such waiver.
(3) If, after an exemption referred to in paragraph (1) or
(2) is granted to an individual, such exemption ceases to be
effective, the waiver referred to in such paragraph shall cease
to be applicable in the case of benefits and other payments
under this title and part A of title XVIII to the extent based
on--
(A) his wages for and after the calendar year
following the calendar year in which occurs the failure
to meet the requirements of section 1402(g) or 3127 of
the Internal Revenue Code of 1986 on which the
cessation of such exemption is based, and
(B) his self-employment income for and after the
taxable year in which occurs such failure.
Increase in Old-Age Insurance Benefit Amounts on Account of Delayed
Retirement
(w)(1) The amount of an old-age insurance benefit (other than
a benefit based on a primary insurance amount determined under
section 215(a)(3) as in effect in December 1978 or section
215(a)(1)(C)(i) as in effect thereafter) which is payable
without regard to this subsection to an individual shall be
increased by--
(A) the applicable percentage (as determined under
paragraph (6)) of such amount, multiplied by
(B) the number (if any) of the increment months for
such individual.
(2) For purposes of this subsection, the number of increment
months for any individual shall be a number equal to the total
number of the months--
(A) which have elapsed after the month before the
month in which such individual attained retirement age
(as defined in section 216(l)) or (if later) December
1970 and prior to the month in which such individual
attained age 70, and
(B) with respect to which--
(i) such individual was a fully insured
individual (as defined in section 214(a)),
(ii) such individual either was not entitled
to an old-age insurance benefit or, if so
entitled, did not receive benefits pursuant to
a request under section 202(z) by such
individual that benefits not be paid, and
(iii) such individual was not subject to a
penalty imposed under section 1129A.
(3) For purposes of applying the provisions of paragraph (1),
a determination shall be made under paragraph (2) for each
year, beginning with 1972, of the total number of an
individual's increment months through the year for which the
determination is made and the total so determined shall be
applicable to such individual's old-age insurance benefits
beginning with benefits for January of the year following the
year for which such determination is made; except that the
total number applicable in the case of an individual who
attains age 70 after 1972 shall be determined through the month
before the month in which he attains such age and shall be
applicable to his old-age insurance benefit beginning with the
month in which he attains such age.
(4) This subsection shall be applied after reduction under
section 203(a).
(5) If an individual's primary insurance amount is determined
under paragraph (3) of section 215(a) as in effect in December
1978, or section 215(a)(1)(C)(i) as in effect thereafter, and,
as a result of this subsection, he would be entitled to a
higher old-age insurance benefit if his primary insurance
amount were determined under section 215(a) (whether before,
in, or after December 1978) without regard to such paragraph,
such individual's old-age insurance benefit based upon his
primary insurance amount determined under such paragraph shall
be increased by an amount equal to the difference between such
benefit and the benefit to which he would be entitled if his
primary insurance amount were determined under such section
without regard to such paragraph.
(6) For purposes of paragraph (1)(A), the ``applicable
percentage'' is--
(A) \1/12\ of 1 percent in the case of an individual
who first becomes eligible for an old-age insurance
benefit in any calendar year before 1979;
(B) \1/4\ of 1 percent in the case of an individual
who first becomes eligible for an old-age insurance
benefit in any calendar year after 1978 and before
1987;
(C) in the case of an individual who first becomes
eligible for an old-age insurance benefit in a calendar
year after 1986 and before 2005, a percentage equal to
the applicable percentage in effect under this
paragraph for persons who first became eligible for an
old-age insurance benefit in the preceding calendar
year (as increased pursuant to this subparagraph), plus
\1/24\ of 1 percent if the calendar year in which that
particular individual first becomes eligible for such
benefit is not evenly divisible by 2; and
(D) \2/3\ of 1 percent in the case of an individual
who first becomes eligible for an old-age insurance
benefit in a calendar year after 2004.
Limitation on Payments to Prisoners, Certain Other Inmates of Publicly
Funded Institutions, Fugitives, Probationers, and Parolees
(x)(1)(A) Notwithstanding any other provision of this title,
no monthly benefits shall be paid under this section or under
section 223 to any individual for any month ending with or
during or beginning with or during a period of more than 30
days throughout all of which such individual--
(i) is confined in a jail, prison, or other penal
institution or correctional facility pursuant to his
conviction of a criminal offense,
(ii) is confined by court order in an institution at
public expense in connection with--
(I) a verdict or finding that the individual
is guilty but insane, with respect to a
criminal offense,
(II) a verdict or finding that the individual
is not guilty of such an offense by reason of
insanity,
(III) a finding that such individual is
incompetent to stand trial under an allegation
of such an offense, or
(IV) a similar verdict or finding with
respect to such an offense based on similar
factors (such as a mental disease, a mental
defect, or mental incompetence),
(iii) immediately upon completion of confinement as
described in clause (i) pursuant to conviction of a
criminal offense an element of which is sexual
activity, is confined by court order in an institution
at public expense pursuant to a finding that the
individual is a sexually dangerous person or a sexual
predator or a similar finding,
(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.
(B)(i) For purposes of clause (i) of subparagraph (A), an
individual shall not be considered confined in an institution
comprising a jail, prison, or other penal institution or
correctional facility during any month throughout which such
individual is residing outside such institution at no expense
(other than the cost of monitoring) to such institution or the
penal system or to any agency to which the penal system has
tranferred jurisdiction over the individual.
(ii) For purposes of clauses (ii) and (iii) of
subparagraph (A), an individual confined in an
institution as described in such clause (ii) shall be
treated as remaining so confined until--
(I) he or she is released from the care and
supervision of such institution, and
(II) such institution ceases to meet the
individual's basic living needs.
(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.
(2) Benefits which would be payable to any individual (other
than a confined individual to whom benefits are not payable by
reason of paragraph (1)) under this title on the basis of the
wages and self-employment income of such a confined individual
but for the provisions of paragraph (1), shall be payable as
though such confined individual were receiving such benefits
under this section or section 223.
(3)(A) Notwithstanding the provisions of section 552a of
title 5, United States Code, or any other provision of Federal
or State law, any agency of the United States Government or of
any State (or political subdivision thereof) shall make
available to the Commissioner of Social Security, upon written
request, the name and social security account number of any
individual who is confined as described in paragraph (1) if the
confinement is under the jurisdiction of such agency and the
Commissioner of Social Security requires such information to
carry out the provisions of this section.
(B)(i) The Commissioner shall enter into an agreement under
this subparagraph with any interested State or local
institution comprising a jail, prison, penal institution, or
correctional facility, or comprising any other institution a
purpose of which is to confine individuals as described in
paragraph (1)(A)(ii). Under such agreement--
(I) the institution shall provide to the
Commissioner, on a monthly basis and in a manner
specified by the Commissioner, the first, middle, and
last names, Social Security account numbersor taxpayer
identification numbers, prison assigned inmate numbers,
last known addresses,dates of birth, confinement
commencement dates, dates of release or anticipated
dates of release, dates of work release, and, to the
extent available to the institution, such other
identifying information concerning the individuals
confined in the institution as the Commissioner may
require for the purpose of carrying out paragraph (1)
and clause (iv) of this subparagraph and other
provisions of this title; and
(II) the Commissioner shall pay to the institution,
with respect to information described in subclause (I)
concerning each individual who is confined therein as
described in paragraph (1)(A), who receives a benefit
under this title for the month preceding the first
month of such confinement, and whose benefit under this
title is determined by the Commissioner to be not
payable by reason of confinement based on the
information provided by the institution, $400 (subject
to reduction under clause (ii)) if the institution
furnishes the information to the Commissioner within 30
days after the date such individual's confinement in
such institution begins, or $200 (subject to reduction
under clause (ii)) if the institution furnishes the
information after 30 days after such date but within 90
days after such date.
(ii) The dollar amounts specified in clause (i)(II) shall be
reduced by 50 percent if the Commissioner is also required to
make a payment to the institution with respect to the same
individual under an agreement entered into under section
1611(e)(1)(I).
(iii) There are authorized to be transferred from the Federal
Old-Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund, as appropriate, such sums as
may be necessary to enable the Commissioner to make payments to
institutions required by clause (i)(II).
(iv) The Commissioner shall maintain, and shall provide on a
reimbursable basis, information obtained pursuant to agreements
entered into under this paragraph to any agency administering a
Federal or federally-assisted cash, food, or medical assistance
program for eligibility and other administrative purposes under
such program, for statistical and research activities conducted
by Federal and State agencies, and to the Secretary of the
Treasury for the purposes of tax administration, debt
collection, and identifying, preventing, and recovering
improper payments under federally funded programs.
(v)(I) The Commissioner may disclose information received
pursuant to this paragraph to any officer, employee, agent, or
contractor of the Department of the Treasury whose official
duties require such information to assist in the
identification, prevention, and recovery of improper payments
or in the collection of delinquent debts owed to the United
States, including payments certified by the head of an
executive, judicial, or legislative paying agency, and payments
made to individuals whose eligibility, or continuing
eligibility, to participate in a Federal program (including
those administered by a State or political subdivision thereof)
is being reviewed.
(II) Notwithstanding the provisions of section 552a of title
5, United States Code, or any other provision of Federal or
State law, the Secretary of the Treasury may compare
information disclosed under subclause (I) with any other
personally identifiable information derived from a Federal
system of records or similar records maintained by a Federal
contractor, a Federal grantee, or an entity administering a
Federal program or activity, and may redisclose such comparison
of information to any paying or administering agency and to the
head of the Federal Bureau of Prisons and the head of any State
agency charged with the administration of prisons with respect
to inmates whom the Secretary of the Treasury has determined
may have been issued, or facilitated in the issuance of, an
improper payment.
(III) The comparison of information disclosed under subclause
(I) shall not be considered a matching program for purposes of
section 552a of title 5, United States Code.
(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.
(y) Notwithstanding any other provision of law, no monthly
benefit under this title shall be payable to any alien in the
United States for any month during which such alien is not
lawfully present in the United States as determined by the
Attorney General.
(z) Voluntary Suspension.--(1)(A) Except as otherwise
provided in this subsection, any individual who has attained
retirement age (as defined in section 216(l)) and is entitled
to old-age insurance benefits may request that payment of such
benefits be suspended--
(i) beginning with the month following the
month in which such request is received by the
Commissioner, and
(ii) ending with the earlier of the month
following the month in which a request by the
individual for a resumption of such benefits is
so received or the month following the month in
which the individual attains the age of 70.
(2) An individual may not suspend such benefits under this
subsection, and any suspension of such benefits under this
subsection shall end, effective with respect to any month in
which the individual becomes subject to--
(A) mandatory suspension of such benefits under
section 202(x);
(B) termination of such benefits under section
202(n);
(C) a penalty under section 1129A imposing nonpayment
of such benefits; or
(D) any other withholding, in whole or in part, of
such benefits under any other provision of law that
authorizes recovery of a debt by withholding such
benefits.
(3) In the case of an individual who requests that such
benefits be suspended under this subsection, for any month
during the period in which the suspension is in effect--
(A) no retroactive benefits (as defined in subsection
(j)(4)(B)(iii)) shall be payable to such individual;
(B) no monthly benefit shall be payable to any other
individual on the basis of such individual's wages and
self-employment income; and
(C) no monthly benefit shall be payable to such
individual on the basis of another individual's wages
and self-employment income.
* * * * * * *
computation of primary insurance amount
Sec. 215. For the purposes of this title--
Primary Insurance Amount
(a)(1)(A) The primary insurance amount of an individual shall
(except as otherwise provided in this section) be equal to the
sum of--
(i) 90 percent of the individual's average indexed
monthly earnings (determined under subsection (b)) to
the extent that such earnings do not exceed the amount
established for purposes of this clause by subparagraph
(B),
(ii) 32 percent of the individual's average indexed
monthly earnings to the extent that such earnings
exceed the amount established for purposes of clause
(i) but do not exceed the amount established for
purposes of this clause by subparagraph (B), and
(iii) 15 percent of the individual's average indexed
monthly earnings to the extent that such earnings
exceed the amount established for purposes of clause
(ii),
rounded, if not a multiple of $0.10, to the next lower multiple
of $0.10, and thereafter increased as provided in subsection
(i).
(B)(i) For individuals who initially become eligible for old-
age or disability insurance benefits, or who die (before
becoming eligible for such benefits), in the calendar year
1979, the amount established for purposes of clause (i) and
(ii) of subparagraph (A) shall be $180 and $1,085,
respectively.
(ii) For individuals who initially become eligible for old-
age or disability insurance benefits, or who die (before
becoming eligible for such benefits), in any calendar year
after 1979, each of the amounts so established shall equal the
product of the corresponding amount established with respect to
the calendar year 1979 under clause (i) of this subparagraph
and the quotient obtained by dividing--
(I) the national average wage index (as defined in
section 209(k)(1)) for the second calendar year
preceding the calendar year for which the determination
is made, by
(II) the national average wage index (as so defined)
for 1977.
(iii) Each amount established under clause (ii) for any
calendar year shall be rounded to the nearest $1, except that
any amount so established which is a multiple of $0.50 but not
of $1 shall be rounded to the next higher $1.
(C)(i) No primary insurance amount computed under
subparagraph (A) may be less than an amount equal to $11.50
multiplied by the individual's years of coverage in excess of
10, or the increased amount determined for purposes of this
clause under subsection (i).
(ii) For purposes of clause (i), the term ``years of
coverage'' with respect to any individual means the number (not
exceeding 30) equal to the sum of (I) the number (not exceeding
14 and disregarding any fraction) determined by dividing (a)
the total of the wages credited to such individual (including
wages deemed to be paid prior to 1951 to such individual under
section 217, compensation under the Railroad Retirement Act of
1937 prior to 1951 which is creditable to such individual
pursuant to this title, and wages deemed to be paid prior to
1951 to such individual under section 231) for years after 1936
and before 1951 by (b) $900, plus (II) the number equal to the
number of years after 1950 each of which is a computation base
year (within the meaning of subsection (b)(2)(B)(ii)) and in
each of which he is credited with wages (including wages deemed
to be paid to such individual under section 217, compensation
under the Railroad Retirement Act of 1937 or 1974 which
is creditable to such individual pursuant to this title, and
wages deemed to be paid to such individual under section 229)
and self-employment income of not less than 25 percent (in the
case of a year after 1950 and before 1978) of the maximum
amount which (pursuant to subsection (e)) may be counted for
such year, or 25 percent (in the case of a year after 1977 and
before 1991) or 15 percent (in the case of a year after 1990)
of the maximum amount which (pursuant to subsection (e)) could
be counted for such year if section 230 as in effect
immediately prior to the enactment of the Social Security
Amendments of 1977 had remained in effect without change
(except that, for purposes of subsection (b)(2)(A) of such
section 230 as so in effect, the reference therein to the
average of the wages of all employees as reported to the
Secretary of the Treasury for any calendar year shall be deemed
a reference to the national average wage index (within the
meaning of section 209(k)(1)) for such calendar year).
(D) In each calendar year the Commissioner of Social Security
shall publish in the Federal Register, on or before November 1,
the formula for computing benefits under this paragraph and for
adjusting wages and self-employment income under subsection
(b)(3) in the case of an individual who becomes eligible for an
old-age insurance benefit, or (if earlier) becomes eligible for
a disability insurance benefit or dies, in the following year,
and the national average wage index (as defined in section
209(k)(1)) on which that formula is based.
(2)(A) A year shall not be counted as the year of an
individual's death or eligibility for purposes of this
subsection or subsection (i) in any case where such individual
was entitled to a disability insurance benefit for any of the
12 months immediately preceding the month of such death or
eligibility (but there shall be counted instead the year of the
individual's eligibility for the disability insurance benefit
or benefits to which he was entitled during such 12 months).
(B) In the case of an individual who was entitled to a
disability insurance benefit for any of the 12 months before
the month in which he became entitled to an old-age insurance
benefit, became reentitled to a disability insurance benefit,
or died, the primary insurance amount for determining any
benefit attributable to that entitlement, reentitlement, or
death is the greater of--
(i) the primary insurance amount upon which such
disability insurance benefit was based, increased by
the amount of each general benefit increase (as defined
in subsection (i)(3)), and each increase provided under
subsection (i)(2), that would have applied to such
primary insurance amount had the individual remained
entitled to such disability insurance benefit until the
month in which he became so entitled or reentitled or
died, or
(ii) the amount computed under paragraph (1)(C).
(C) In the case of an individual who was entitled to a
disability insurance benefit for any month, and with respect to
whom a primary insurance amount is required to be computed at
any time after the close of the period of the individual's
disability (whether because of such individual's subsequent
entitlement to old-age insurance benefits or to a disability
insurance benefit based upon a subsequent period of disability,
or because of such individual's death), the primary insurance
amount so computed may in no case be less than the primary
insurance amount with respect to which such former disability
insurance benefit was most recently determined.
(3)(A) Paragraph (1) applies only to an individual who was
not eligible for an old-age insurance benefit prior to January
1979 and who in that or any succeeding month--
(i) becomes eligible for such a benefit,
(ii) becomes eligible for a disability insurance
benefit, or
(iii) dies, and (except for subparagraph (C)(i)
thereof) it applies to every such individual except to
the extent otherwise provided by paragraph (4).
(B) For purposes of this title, an individual is deemed to be
eligible--
(i) for old-age insurance benefits, for months
beginning with the month in which he attains age 62, or
(ii) for disability insurance benefits, for months
beginning with the month in which his period of
disability began as provided under section
216(i)(2)(C),
except as provided in paragraph (2)(A) in cases where fewer
than 12 months have elapsed since the termination of a prior
period of disability.
(4) Paragraph (1) (except for subparagraph (C)(i) thereof)
does not apply to the computation or recomputation of a primary
insurance amount for--
(A) an individual who was eligible for a disability
insurance benefit for a month prior to January 1979
unless, prior to the month in which occurs the event
described in clause (i), (ii), or (iii) of paragraph
(3)(A), there occurs a period of at least 12
consecutive months for which he was not entitled to a
disability insurance benefit, or
(B) an individual who had wages or self-employment
income credited for one or more years prior to 1979,
and who was not eligible for an old-age or disability
insurance benefit, and did not die, prior to January
1979, if in the year for which the computation or
recomputation would be made the individual's primary
insurance amount would be greater if computed or
recomputed--
(i) under section 215(a) as in effect in
December 1978, for purposes of old-age
insurance benefits in the case of an individual
who becomes eligible for such benefits prior to
1984, or
(ii) as provided by section 215(d), in the
case of an individual to whom such section
applies.
In determining whether an individual's primary insurance amount
would be greater if computed or recomputed as provided in
subparagraph (B), (I) the table of benefits in effect in
December 1978, as modified by paragraph (6), shall be applied
without regard to any increases in that table which may become
effective (in accordance with subsection (i)(4)) for years
after 1978 (subject to clause (iii) of subsection (i)(2)(A))
and (II) such individual's average monthly wage shall be
computed as provided by subsection (b)(4).
(5)(A) Subject to subparagraphs (B), (C), (D) and (E), for
purposes of computing the primary insurance amount (after
December 1978) of an individual to whom paragraph (1) does not
apply (other than an individual described in paragraph (4)(B)),
this section as in effect in December 1978 shall remain in
effect, except that, effective for January 1979, the dollar
amount specified in paragraph (3) of subsection (a) shall be
increased to $11.50.
(B)(i) Subject to clauses (ii), (iii), and (iv), and
notwithstanding any other provision of law, the primary
insurance amount of any individual described in subparagraph
(C) shall be, in lieu of the primary insurance amount as
computed pursuant to any of the provisions referred to in
subparagraph (D), the primary insurance amount computed under
subsection (a) of section 215 as in effect in December 1978,
without regard to subsections (b)(4) and (c) of such section as
so in effect.
(ii) The computation of a primary insurance amount under this
subparagraph shall be subject to section 104(j)(2) of the
Social Security Amendments of 1972 (relating to the number of
elapsed years under section 215(b)).
(iii) In computing a primary insurance amount under this
subparagraph, the dollar amount specified in paragraph (3) of
section 215(a) (as in effect in December 1978) shall be
increased to $11.50.
(iv) In the case of an individual to whom section 215(d)
applies, the primary insurance amount of such individual shall
be the greater of--
(I) the primary insurance amount computed under the
preceding clauses of this subparagraph, or
(II) the primary insurance amount computed under
section 215(d).
(C) An individual is described in this subparagraph if--
(i) paragraph (1) does not apply to such individual
by reason of such individual's eligibility for an old-
age or disability insurance benefit, or the
individual's death, prior to 1979, and
(ii) such individual's primary insurance amount
computed under this section as in effect immediately
before the date of the enactment of the Omnibus Budget
Reconciliation Act of 1990 would have been computed
under the provisions described in subparagraph (D).
(D) The provisions described in this subparagraph are--
(i) the provisions of this subsection as in effect
prior to the enactment of the Social Security
Amendments of 1965, if such provisions would preclude
the use of wages prior to 1951 in the computation of
the primary insurance amount,
(ii) the provisions of section 209 as in effect prior
to the enactment of the Social Security Act Amendments
of 1950, and
(iii) the provisions of section 215(d) as in effect
prior to the enactment of the Social Security
Amendments of 1977.
(E) For purposes of this paragraph, the table for determining
primary insurance amounts and maximum family benefits contained
in this section in December 1978 shall be revised as provided
by subsection (i) for each year after 1978.
(6)(A) In applying the table of benefits in effect in
December 1978 under this section for purposes of the last
sentence of paragraph (4), such table, revised as provided by
subsection (i), as applicable, shall be extended for average
monthly wages of less than $76.00 and primary insurance
benefits (as determined under subsection (d)) of less than
$16.20.
(B) The Commissioner of Social Security shall determine and
promulgate in regulations the methodology for extending the
table under subparagraph (A).
[(7)(A) In the case of an individual whose primary insurance
amount would be computed under paragraph (1) of this
subsection, who--
[(i) attains age 62 after 1985 (except where he or
she became entitled to a disability insurance benefit
before 1986 and remained so entitled in any of the 12
months immediately preceding his or her attainment of
age 62), or
[(ii) would attain age 62 after 1985 and becomes
eligible for a disability insurance benefit after 1985,
and who first becomes eligible after 1985 for a monthly
periodic payment (including a payment determined under
subparagraph (C), but excluding (I) a payment under the
Railroad Retirement Act of 1974 or 1937, (II) a payment by a
social security system of a foreign country based on an
agreement concluded between the United States and such foreign
country pursuant to section 233, and (III) a payment based
wholly on service as a member of a uniformed service (as
defined in section 210(m)) which is based in whole or in part
upon his or her earnings for service which did not constitute
``employment'' as defined in section 210 for purposes of this
title (hereafter in this paragraph and in subsection (d)(3)
referred to as ``noncovered service''), the primary insurance
amount of that individual during his or her concurrent
entitlement to such monthly periodic payment and to old-age or
disability insurance benefits shall be computed or recomputed
under subparagraph (B).
[(B)(i) If paragraph (1) of this subsection would apply to
such an individual (except for subparagraph (A) of this
paragraph), there shall first be computed an amount equal to
the individual's primary insurance amount under paragraph (1)
of this subsection, except that for purposes of such
computation the percentage of the individual's average indexed
monthly earnings established by subparagraph (A)(i) of
paragraph (1) shall be the percent specified in clause (ii).
There shall then be computed (without regard to this paragraph)
a second amount, which shall be equal to the individual's
primary insurance amount under paragraph (1) of this
subsection, except that such second amount shall be reduced by
an amount equal to one-half of the portion of the monthly
periodic payment which is attributable to noncovered service
performed after 1956 (with such attribution being based on the
proportionate number of years of such noncovered service) and
to which the individual is entitled (or is deemed to be
entitled) for the initial month of his or her concurrent
entitlement to such monthly periodic payment and old-age or
disability insurance benefits. The individual's primary
insurance amount shall be the larger of the two amounts
computed under this subparagraph (before the application of
subsection (i)) and shall be deemed to be computed under
paragraph (1) of this subsection for the purpose of applying
other provisions of this title.
[(ii) For purposes of clause (i), the percent specified in
this clause is--
[(I) 80.0 percent with respect to individuals who
become eligible (as defined in paragraph (3)(B)) for
old-age insurance benefits (or became eligible as so
defined for disability insurance benefits before
attaining age 62) in 1986;
[(II) 70.0 percent with respect to individuals who so
become eligible in 1987;
[(III) 60.0 percent with respect to individuals who
so become eligible in 1988;
[(IV) 50.0 percent with respect to individuals who so
become eligible in 1989; and
[(V) 40.0 percent with respect to individuals who so
become eligible in 1990 or thereafter.
[(C)(i) Any periodic payment 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 payment (as determined by the Commissioner of
Social Security), and such equivalent monthly payment shall
constitute a monthly periodic payment for purposes of this
paragraph.
[(ii) In the case of an individual who has elected to receive
a periodic payment that has been reduced so as to provide a
survivor's benefit to any other individual, the payment shall
be deemed to be increased (for purposes of any computation
under this paragraph or subsection (d)(3) by the amount of such
reduction.
[(iii) For purposes of this paragraph, the term ``periodic
payment'' includes a payment payable in a lump sum if it is a
commutation of, or a substitute for, periodic payments.
[(D) This paragraph shall not apply in the case of an
individual who has 30 years or more of coverage. In the case of
an individual who has more than 20 years of coverage but less
than 30 years of coverage (as so defined), the percent
specified in the applicable subdivision of subparagraph (B)(ii)
shall (if such percent is smaller than the applicable percent
specified in the following table) be deemed to be the
applicable percent specified in the following table:
[If the number of such individual's The applicable
years of coverage (as so defined) is: percent is: [
29........................................................85 percent
28........................................................80 percent
27........................................................75 percent
26........................................................70 percent
25........................................................65 percent
24........................................................60 percent
23........................................................55 percent
22........................................................50 percent
21........................................................45 percent
For purposes of this subparagraph, the term ``year of
coverage'' shall have the meaning provided in paragraph
(1)(C)(ii), except that the reference to ``15 percent'' therein
shall be deemed to be a reference to ``25 percent''.
[(E) This paragraph shall not apply in the case of an
individual whose eligibility for old-age or disability
insurance benefits is based on an agreement concluded pursuant
to section 233 or an individual who on January 1, 1984--
[(i) is an employee performing service to which
social security coverage is extended on that date
solely by reason of the amendments made by section 101
of the Social Security Amendments of 1983; or
[(ii) is an employee of a nonprofit organization
which (on December 31, 1983) did not have in effect a
waiver certificate under section 3121(k) of the
Internal Revenue Code of 1954 and to the employees of
which social security coverage is extended on that date
solely by reason of the amendments made by section 102
of that Act, unless social security coverage had
previously extended to service performed by such
individual as an employee of that organization under a
waiver certificate which was subsequently (prior to
December 31, 1983) terminated.]
Average Indexed Monthly Earnings; Average Monthly Wage
(b)(1) An individual's average indexed monthly earnings shall
be equal to the quotient obtained by dividing--
(A) the total (after adjustment under paragraph (3))
of his wages paid in and self-employment income
credited to his benefit computation years (determined
under paragraph (2)), by
(B) the number of months in those years.
(2)(A) The number of an individual's benefit computation
years equals the number of elapsed years reduced--
(i) in the case of an individual who is entitled to
old-age insurance benefits (except as provided in the
second sentence of this subparagraph), or who has died,
by 5 years, and
(ii) in the case of an individual who is entitled to
disability insurance benefits, by the number of years
equal to one-fifth of such individual's elapsed years
(disregarding any resulting fractional part of a year),
but not by more than 5 years.
Clause (ii), once applicable with respect to any individual,
shall continue to apply for purposes of determining such
individual's primary insurance amount for purposes of any
subsequent eligibility for disability or old-age insurance
benefits unless prior to the month in which such eligibility
begins there occurs a period of at least 12 consecutive months
for which he was not entitled to a disability or an old-age
insurance benefit. If an individual described in clause (ii) is
living with a child (of such individual or his or her spouse)
under the age of 3 in any calendar year which is included in
such individual's computation base years, but which is not
disregarded pursuant to clause (ii) or to subparagraph (B) (in
determining such individual's benefit computation years) by
reason of the reduction in the number of such individual's
elapsed years under clause (ii), the number by which such
elapsed years are reduced under this subparagraph pursuant to
clause (ii) shall be increased by one (up to a combined total
not exceeding 3) for each such calendar year; except that (I)
no calendar year shall be disregarded by reason of this
sentence (in determining such individual's benefit computation
years) unless the individual was living with such child
substantially throughout the period in which the child was
alive and under the age of 3 in such year and the individual
had no earnings as described in section 203(f)(5) in such year,
(II) the particular calendar years to be disregarded under this
sentence (in determining such benefit computation years) shall
be those years (not otherwise disregarded under clause (ii))
which, before the application of section 215(f), meet the
conditions of subclause (I), and (III) this sentence shall
apply only to the extent that its application would not result
in a lower primary insurance amount. The number of an
individual's benefit computation years as determined under this
subparagraph shall in no case be less than 2.
(B) For purposes of this subsection with respect to any
individual--
(i) the term ``benefit computation years'' means
those computation base years, equal in number to the
number determined under subparagraph (A), for which the
total of such individual's wages and self-employment
income, after adjustment under paragraph (3), is the
largest;
(ii) the term ``computation base years'' means the
calendar years after 1950 and before--
(I) in the case of an individual entitled to
old-age insurance benefits, the year in which
occurred (whether by reason of section
202(j)(1) or otherwise) the first month of that
entitlement; or
(II) in the case of an individual who has
died (without having become entitled to old-age
insurance benefits), the year succeeding the
year of his death;
except that such term excludes any calendar year
entirely included in a period of disability; and
(iii) the term ``number of elapsed years'' means
(except as otherwise provided by section 104(j)(2) of
the Social Security Amendments of 1972) the number of
calendar years after 1950 (or, if later, the year in
which the individual attained age 21) and before the
year in which the individual died, or, if it occurred
earlier (but after 1960), the year in which he attained
age 62; except that such term excludes any calendar
year any part of which is included in a period of
disability.
(3)(A) Except as provided by subparagraph (B), the wages paid
in and self-employment income credited to each of an
individual's computation base years for purposes of the
selection therefrom of benefit computation years under
paragraph (2) shall be deemed to be equal to the product of--
(i) the wages and self-employment income paid in or
credited to such year (as determined without regard to
this subparagraph), and
(ii) the quotient obtained by dividing--
(I) the national average wage index (as
defined in section 209(k)(1)) for the second
calendar year preceding the earliest of the
year of the individual's death, eligibility for
an old-age insurance benefit, or eligibility
for a disability insurance benefit (except that
the year in which the individual dies, or
becomes eligible, shall not be considered as
such year if the individual was entitled to
disability insurance benefits for any month in
the 12-month period immediately preceding such
death or eligibility, but there shall be
counted instead the year of the individual's
eligibility for the disability insurance
benefit to which he was entitled in such 12-
month period), by
(II) the national average wage index (as so
defined) for the computation base year for
which the determination is made.
(B) Wages paid in or self-employment income credited to an
individual's computation base year which--
(i) occurs after the second calendar year specified
in subparagraph (A)(ii)(I), or
(ii) is a year treated under subsection (f)(2)(C) as
though it were the last year of the period specified in
paragraph (2)(B)(ii),
shall be available for use in determining an individual's
benefit computation years, but without applying subparagraph
(A) of this paragraph.
(4) For purposes of determining the average monthly wage of
an individual whose primary insurance amount is computed (after
1978) under section 215(a) or 215(d) as in effect (except with
respect to the table contained therein) in December 1978, by
reason of subsection (a)(4)(B), this subsection as in effect in
December 1978 shall remain in effect, except that paragraph
(2)(C) (as then in effect) shall be deemed to provide that
``computation base years'' include only calendar years in the
period after 1950 (or 1936, if applicable) and prior to the
year in which occurred the first month for which the individual
was eligible (as defined in subsection (a)(3)(B) as in effect
in January 1979) for an old-age or disability insurance
benefit, or, if earlier, the year in which he died. Any
calendar year all of which is included in a period of
disability shall not be included as a computation base year for
such purposes.
Application of Prior Provisions in Certain Cases
(c) Subject to the amendments made by section 5117 of the
Omnibus Budget Reconciliation Act of 1990, this subsection as
in effect in December 1978 shall remain in effect with respect
to an individual to whom subsection (a)(1) does not apply by
reason of the individual's eligibility for an old-age or
disability insurance benefit, or the individual's death, prior
to 1979.
Primary Insurance Benefit Under 1939 Act
(d)(1) For purposes of column I of the table appearing in
subsection (a), as that subsection was in effect in December
1977, an individual's primary insurance benefit shall be
computed as follows:
(A) The individual's average monthly wage shall be
determined as provided in subsection (b), as in effect
in December 1977 (but without regard to paragraph (4)
thereof and subject to section 104(j)(2) of the Social
Security Amendments of 1972), except that for purposes
of paragraphs (2)(C) and (3) of that subsection (as so
in effect) 1936 shall be used instead of 1950.
(B) For purposes of subparagraphs (B) and (C) of
subsection (b)(2) (as so in effect)--
(i) the total wages prior to 1951 (as defined
in subparagraph (C) of this paragraph) of an
individual--
(I) shall, in the case of an
individual who attained age 21 prior to
1950, be divided by the number of years
(hereinafter in this subparagraph
referred to as the ``divisor'')
elapsing after the year in which the
individual attained age 20, or 1936 if
later, and prior to the earlier of the
year of death or 1951, except that such
divisor shall not include any calendar
year entirely included in a period of
disability, and in no case shall the
divisor be less than one, and
(II) shall, in the case of an
individual who died before 1950 and
before attaining age 21, be divided by
the number of years (hereinafer in this
subparagraph referred to as the
``divisor'') elapsing after the second
year prior to the year of death, or
1936 if later, and prior to the year of
death, and in no case shall the divisor
be less than one; and
(ii) the total wages prior to 1951 (as
defined in subparagraph (C) of this paragraph)
of an individual who either attained age 21
after 1949 or died after 1949 before attaining
age 21, shall be divided by the number of years
(hereinafter in this subparagraph referred to
as the ``divisor'') elapsing after 1949 and
prior to 1951.
The quotient so obtained shall be deemed to be the
individual's wages credited to each of the years which
were used in computing the amount of the divisor,
except that--
(iii) if the quotient exceeds $3,000, only
$3,000 shall be deemed to be the individual's
wages for each of the years which were used in
computing the amount of the divisor, and the
remainder of the individual's total wages prior
to 1951 (I) if less than $3,000, shall be
deemed credited to the computation base year
(as defined in subsection (b)(2) as in effect
in December 1977) immediately preceding the
earliest year used in computing the amount of
the divisor, of (II) if $3,000 or more, shall
be deemed credited, in $3,000 increments, to
the computation base year (as so defined)
immediately preceding the earliest year used in
computing the amount of the divisor and to each
of the computation base years (as so defined)
consecutively preceding that year, with any
remainder less than $3,000 being credited to
the computation base year (as so defined)
immediately preceding the earliest year to
which a full $3,000 increment was credited; and
(iv) no more than $42,000 may be taken into
account, for purposes of this subparagraph, as
total wages after 1936 and prior to 1951.
(C) For the purposes of subparagraph (B), ``total
wages prior to 1951'' with respect to an individual
means the sum of (i) remuneration credited to such
individual prior to 1951 on the records of the
Commissioner of Social Security, (ii) wages deemed paid
prior to 1951 to such individual under section 217,
(iii) compensation under the Railroad Retirement Act of
1937 prior to 1951 creditable to him pursuant to this
title, and (iv) wages deemed paid prior to 1951 to such
individual under section 231.
(D) The individual's primary insurance benefit shall
be 40 percent of the first $50 of his average monthly
wage as computed under this subsection, plus 10 percent
of the next $200 of his average monthly wage, increased
by 1 percent for each increment year. The number of
increment years is the number, not more than 14 nor
less than 4, that is equal to the individual's total
wages prior to 1951 divided by $1,650 (disregarding any
fraction).
(2) The provisions of this subsection shall be applicable
only in the case of an individual--
(A) with respect to whom at least one of the quarters
elapsing prior to 1951 is a quarter of coverage;
(B) who attained age 22 after 1950 and with respect
to whom less than six of the quarters elapsing after
1950 are quarters of coverage, or who attained such age
before 1951; and
(C)(i) who becomes entitled to benefits under section
202(a) or 223 or who dies, or
(ii) whose primary insurance amount is required to be
recomputed under paragraph (2), (6), or (7) of
subsection (f) or under section 231.
[(3) In the case of an individual whose primary insurance
amount is not computed under paragraph (1) of subsection (a) by
reason of paragraph (4)(B)(ii) of that subsection, who--
[(A) attains age 62 after 1985 (except where he or
she became entitled to a disability insurance benefit
before 1986, and remained so entitled in any of the 12
months immediately preceding his or her attainment of
age 62), or
[(B) would attain age 62 after 1985 and becomes
eligible for a disability insurance benefit after 1985,
and who first becomes eligible after 1985 for a monthly
periodic payment (including a payment determined under
subsection (a)(7)(C), but excluding (I) a payment under the
Railroad Retirement Act of 1974 or 1937), (II) a payment by a
social security system of a foreign country based on an
agreement concluded between the United States and such foreign
country pursuant to section 233, and (III) a payment based
wholly on service as a member of a uniformed service (as
defined in section 210(m)) which is based (in whole or in part)
upon his or her earnings in noncovered service, the primary
insurance amount of such individual during his or her
concurrent entitlement to such monthly periodic payment and to
old-age or disability insurance benefits shall be the primary
insurance amount computed or recomputed under this subsection
(without regard to this paragraph and before the application of
subsection (i)) reduced by an amount equal to the smaller of--
[(i) one-half of the primary insurance amount
(computed without regard to this paragraph and before
the application of subsection (i)), or
[(ii) one-half of the portion of the monthly periodic
payment (or payment determined under subsection
(a)(7)(C)) which is attributable to noncovered service
performed after 1956 (with such attribution being based
on the proportionate number of years of such noncovered
service) and to which that individual is entitled (or
is deemed to be entitled) for the initial month of such
concurrent entitlement.
This paragraph shall not apply in the case of any individual to
whom subsection (a)(7) would not apply by reason of
subparagraph (E) or the first sentence of subparagraph (D)
thereof.]
Certain Wages and Self-Employment Income Not To Be Counted
(e) For the purposes of subsections (b) and (d)--
(1) in computing an individual's average indexed
monthly earnings or, in the case of an individual whose
primary insurance amount is computed under section
215(a) as in effect prior to January 1979, average
monthly wage, there shall not be counted the excess
over $3,600 in the case of any calendar year after 1950
and before 1955, the excess over $4,200 in the case of
any calendar year after 1954 and before 1959, the
excess over $4,800 in the case of any calendar year
after 1958 and before 1966, the excess over $6,600 in
the case of any calendar year after 1965 and before
1968, the excess over $7,800 in the case of any
calendar year after 1967 and before 1972, the excess
over $9,000 in the case of any calendar year after 1971
and before 1973, the excess over $10,800 in the case of
any calendar year after 1972 and before 1974, the
excess over $13,200 in the case of any calendar year
after 1973 and before 1975, and the excess over an
amount equal to the contribution and benefit base (as
determined under section 230) in the case of any
calendar year after 1974 with respect to which such
contribution and benefit base is effective, (before the
application, in the case of average indexed monthly
earnings, of subsection (b)(3)(A)) of (A) the wages
paid to him in such year, plus (B) the self-employment
income credited to such year (as determined under
section 212); and
(2) if an individual's average indexed monthly
earnings or, in the case of an individual whose primary
insurance amount is computed under section 215(a) as in
effect prior to January 1979, average monthly wage,
computed under subsection (b) or for the purposes of
subsection (d) is not a multiple of $1, it shall be
reduced to the next lower multiple of $1.
Recomputation of Benefits
(f)(1) After an individual's primary insurance amount has
been determined under this section, there shall be no
recomputation of such individual's primary insurance amount
except as provided in this subsection or, in the case of a
World War II veteran who died prior to July 27, 1954, as
provided in section 217(b).
(2)(A) If an individual has wages or self-employment income
for a year after 1978 for any part of which he is entitled to
old-age or disability insurance benefits, the Commissioner of
Social Security shall, at such time or times and within such
period as the Commissioner may by regulation prescribe,
recompute the individual's primary insurance amount for that
year.
(B) For the purpose of applying subparagraph (A) of
subsection (a)(1) to the average indexed monthly earnings of an
individual to whom that subsection applies and who receives a
recomputation under this paragraph, there shall be used, in
lieu of the amounts established by subsection (a)(1)(B) for
purposes of clauses (i) and (ii) of subsection (a)(1)(A), the
amounts so established that were (or, in the case of an
individual described in subsection (a)(4)(B), would have been)
used in the computation of such individual's primary insurance
amount prior to the application of this subsection.
(C) A recomputation of any individual's primary insurance
amount under this paragraph shall be made as provided in
subsection (a)(1) as though the year with respect to which it
is made is the last year of the period specified in subsection
(b)(2)(B)(ii); and subsection (b)(3)(A) shall apply with
respect to any such recomputation as it applied in the
computation of such individual's primary insurance amount prior
to the application of this subsection.
(D) A recomputation under this paragraph with respect to any
year shall be effective--
(i) in the case of an individual who did not die in
that year, for monthly benefits beginning with benefits
for January of the following year; or
(ii) in the case of an individual who died in that
year, for monthly benefits beginning with benefits for
the month in which he died.
(4) A recomputation shall be effective under this subsection
only if it increases the primary insurance amount by at least
$1.
(5) In the case of a man who became entitled to old-age
insurance benefits and died before the month in which he
attained retirement age (as defined in section 216(l)), the
Commissioner of Social Security shall recompute his primary
insurance amount as provided in subsection (a) as though he
became entitled to old-age insurance benefits in the month in
which he died; except that (i) his computation base years
referred to in subsection (b)(2) shall include the year in
which he died, and (ii) his elapsed years referred to in
subsection (b)(3) shall not include the year in which he died
or any year thereafter. Such recomputation of such primary
insurance amount shall be effective for and after the month in
which he died.
(6) Upon the death after 1967 of an individual entitled to
benefits under section 202(a) or section 223, if any person is
entitled to monthly benefits or a lump-sum death payment, on
the wages and self-employment income of such individual, the
Commissioner of Social Security shall recompute the decedent's
primary insurance amount, but only if the decedent during his
lifetime was paid compensation which was treated under section
205(o) as remuneration for employment.
(7) This subsection as in effect in December 1978 shall
continue to apply to the recomputation of a primary insurance
amount computed under subsection (a) or (d) as in effect
(without regard to the table in subsection (a)) in that month,
and, where appropriate, under subsection (d) as in effect in
December 1977, including a primary insurance amount computed
under any such subsection whose operation is modified as a
result of the amendments made by section 5117 of the Omnibus
Budget Reconciliation Act of 1990. For purposes of recomputing
a primary insurance amount determined under subsection (a) or
(d) (as so in effect) in the case of an individual to whom
those subsections apply by reason of subsection (a)(4)(B) as in
effect after December 1978, no remuneration shall be taken into
account for the year in which the individual initially became
eligible for an old-age or disability insurance benefit or
died, or for any year thereafter, and (effective January 1982)
the recomputation shall be modified by the application of
subsection (a)(6) where applicable.
(8) The Commissioner of Social Security shall recompute the
primary insurance amounts applicable to beneficiaries whose
benefits are based on a primary insurance amount which was
computed under subsection (a)(3) effective prior to January
1979, or would have been so computed if the dollar amount
specified therein were $11.50. Such recomputation shall be
effective January 1979, and shall include the effect of the
increase in the dollar amount provided by subsection
(a)(1)(C)(i). Such primary insurance amount shall be deemed to
be provided under such section for purposes of subsection (i).
[(9)(A) In the case of an individual who becomes entitled to
a periodic payment determined under subsection (a)(7)(A)
(including a payment determined under subsection (a)(7)(C)) in
a month subsequent to the first month in which he or she
becomes entitled to an old-age or disability insurance benefit,
and whose primary insurance amount has been computed without
regard to either such subsection or subsection (d)(3), such
individual's primary insurance amount shall be recomputed
(notwithstanding paragraph (4) of this subsection), in
accordance with either such subsection or subsection (d)(3), as
may be applicable, effective with the first month of his or her
concurrent entitlement to such benefit and such periodic
payment.
[(B) If an individual's primary insurance amount has been
computed under subsection (a)(7) or (d)(3), and it becomes
necessary to recompute that primary insurance amount under this
subsection--
[(i) so as to increase the monthly benefit amount
payable with respect to such primary insurance amount
(except in the case of the individual's death), such
increase shall be determined as though the recomputed
primary insurance amount were being computed under
subsection (a)(7) or (d)(3), or
[(ii) by reason of the individual's death, such
primary insurance amount shall be recomputed without
regard to (and as though it had never been computed
with regard to) subsection (a)(7) or (d)(3).]
Rounding of Benefits
(g) The amount of any monthly benefit computed under section
202 or 223 which (after any reduction under sections 203(a) and
224 and any deduction under section 203(b), and after any
deduction under section 1840(a)(1)) is not a multiple of $1
shall be rounded to the next lower multiple of $1.
Service of Certain Public Health Service Officers
(h)(1) Notwithstanding the provisions of subchapter III of
chapter 83 of title 5, United States Code, remuneration paid
for service to which the provisions of section 210(l)(1) of
this Act are applicable and which is performed by an individual
as a commissioned officer of the Reserve Corps of the Public
Health Service prior to July 1, 1960, shall not be included in
computing entitlement to or the amount of any monthly benefit
under this title, on the basis of his wages and self-employment
income, for any month after June 1960 and prior to the first
month with respect to which the Director of the Office of
Personnel Management certifies to the Commissioner of Social
Security that, by reason of a waiver filed as provided in
paragraph (2), no further annuity will be paid to him, his
wife, and his children, or, if he has died, to his widow and
children, under subchapter III of chapter 83 of title 5, United
States Code, on the basis of such service.
(2) In the case of a monthly benefit for a month prior to
that in which the individual, on whose wages and self-
employment income such benefit is based, dies, the waiver must
be filed by such individual; and such waiver shall be
irrevocable and shall constitute a waiver on behalf of himself,
his wife, and his children. If such individual did not file
such a waiver before he died, then in the case of a benefit for
the month in which he died or any month thereafter, such waiver
must be filed by his widow, if any, and by or on behalf of all
his children, if any; and such waivers shall be irrevocable.
Such a waiver by a child shall be filed by his legal guardian
or guardians, or, in the absence thereof, by the person (or
persons) who has the child in his care.
Cost-of-Living Increases in Benefits
(i)(1) For purposes of this subsection--
(A) the term ``base quarter'' means (i) the calendar
quarter ending on September 30 in each year after 1982,
or (ii) any other calendar quarter in which occurs the
effective month of a general benefit increase under
this title;
(B) the term ``cost-of-living computation quarter''
means a base quarter, as defined in subparagraph
(A)(i), with respect to which the applicable increase
percentage is greater than zero; except that there
shall be no cost-of-living computation quarter in any
calendar year if in the year prior to such year a law
has been enacted providing a general benefit increase
under this title or if in such prior year such a
general benefit increase becomes effective;
(C) the term ``applicable increase percentage''
means--
(i) with respect to a base quarter or cost-
of-living computation quarter in any calendar
year before 1984, or in any calendar year after
1983 and before 1989 for which the OASDI fund
ratio is 15.0 percent or more, or in any
calendar year after 1988 for which the OASDI
fund ratio is 20.0 percent or more, the CPI
increase percentage; and
(ii) with respect to a base quarter or cost-
of-living computation quarter in any calendar
year after 1983 and before 1989 for which the
OASDI fund ratio is less than 15.0 percent, or
in any calendar year after 1988 for which the
OASDI fund ratio is less than 20.0 percent, the
CPI increase percentage or the wage increase
percentage, whichever (with respect to that
quarter) is the lower;
(D) the term ``CPI increase percentage'', with
respect to a base quarter or cost-of-living computation
quarter in any calendar year, means the percentage
(rounded to the nearest one-tenth of 1 percent) by
which the Consumer Price Index for that quarter (as
prepared by the Department of Labor) exceeds such index
for the most recent prior calendar quarter which was a
base quarter under subparagraph (A)(ii) or, if later,
the most recent cost-of-living computation quarter
under subparagraph (B);
(E) the term ``wage increase percentage'', with
respect to a base quarter or cost-of-living computation
quarter in any calendar year, means the percentage
(rounded to the nearest one-tenth of 1 percent) by
which the national average wage index (as defined in
section 209(k)(1)) for the year immediately preceding
such calendar year exceeds such index for the year
immediately preceding the most recent prior calendar
year which included a base quarter under subparagraph
(A)(ii) or, if later, which included a cost-of-living
computation quarter;
(F) the term ``OASDI fund ratio'', with respect to
any calendar year, means the ratio of--
(i) the combined balance in the Federal Old-
Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund as of
the beginning of such year, including the taxes
transferred under section 201(a) on the first
day of such year and reduced by the outstanding
amount of any loan (including interest thereon)
theretofore made to either such Fund from the
Federal Hospital Insurance Trust Fund under
section 201(l), to
(ii) the total amount which (as estimated by
the Commissioner of Social Security) will be
paid from the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability
Insurance Trust Fund during such calendar year
for all purposes authorized by section 201
(other than payments of interest on, or
repayments of, loans from the Federal Hospital
Insurance Trust Fund under section 201(l)), but
excluding any transfer payments between such
trust funds and reducing the amount of any
transfers to the Railroad Retirement Account by
the amount of any transfers into either such
trust fund from that Account;
(G) the Consumer Price Index for a base quarter, a
cost-of-living computation quarter, or any other
calendar quarter shall be the arithmetical mean of such
index for the 3 months in such quarter.
(2)(A)(i) The Commissioner of Social Security shall determine
each year beginning with 1975 (subject to the limitation in
paragraph (1)(B)) whether the base quarter (as defined in
paragraph (1)(A)(i)) in such year is a cost-of-living
computation quarter.
(ii) If the Commissioner of Social Security determines that
the base quarter in any year is a cost of living computation
quarter, the Commissioner shall, effective with the month of
December of that year as provided in subparagraph (B),
increase--
(I) the benefit amount to which individuals are
entitled for that month under section 227 or 228,
(II) the primary insurance amount of each other
individual on which benefit entitlement is based under
this title, and
(III) the amount of total monthly benefits based on
any primary insurance amount which is permitted under
section 203 (and such total shall be increased, unless
otherwise so increased under another provision of this
title, at the same time as such primary insurance
amount) or, in the case of a primary insurance amount
computed under subsection (a) as in effect (without
regard to the table contained therein) prior to January
1979, the amount to which the beneficiaries may be
entitled under section 203 as in effect in December
1978, except as provided by section 203(a)(7) and (8)
as in effect after December 1978.
The increase shall be derived by multiplying each of the
amounts described in subdivisions (I), (II), and (III)
(including each of those amounts as previously increased under
this subparagraph) by the applicable increase percentage; and
any amount so increased that is not a multiple of $0.10 shall
be decreased to the next lower multiple of $0.10. Any increase
under this subsection in a primary insurance amount determined
under subparagraph (C)(i) of subsection (a)(1) shall be applied
after the initial determination of such primary insurance
amount under that subparagraph (with the amount of such
increase, in the case of an individual who becomes eligible for
old-age or disability insurance benefits or dies in a calendar
year after 1979, being determined from the range of possible
primary insurance amounts published by the Commissioner of
Social Security under the last sentence of subparagraph (D)).
(iii) In the case of an individual who becomes eligible for
an old-age or disability insurance benefit, or who dies prior
to becoming so eligible, in a year in which there occurs an
increase provided under clause (ii), the individual's primary
insurance amount (without regard to the time of entitlement to
that benefit) shall be increased (unless otherwise so increased
under another provision of this title and, with respect to a
primary insurance amount determined under subsection
(a)(1)(C)(i)(I) in the case of an individual to whom that
subsection (as in effect in December 1981) applied, subject to
the provisions of subsection (a)(1)(C)(i) and clauses (iv) and
(v) of this subparagraph (as then in effect)) by the amount of
that increase and subsequent applicable increases, but only
with respect to benefits payable for months after November of
that year.
(B) The increase provided by subparagraph (A) with respect to
a particular cost-of-living computation quarter shall apply in
the case of monthly benefits under this title for months after
November of the calendar year in which occurred such cost-of-
living computation quarter, and in the case of lump-sum death
payments with respect to deaths occurring after November of
such calendar year.
(C)(i) Whenever the Commissioner of Social Security
determines that a base quarter in a calendar year is also a
cost-of-living computation quarter, the Commissioner shall
notify the House Committee on Ways and Means and the Senate
Committee on Finance of such determination within 30 days after
the close of such quarter, indicating the amount of the benefit
increase to be provided, the Commissioner's estimate of the
extent to which the cost of such increase would be met by an
increase in the contribution and benefit base under section 230
and the estimated amount of the increase in such base, the
actuarial estimates of the effect of such increase, and the
actuarial assumptions and methodology used in preparing such
estimates.
(ii) The Commissioner of Social Security shall determine and
promulgate the OASDI fund ratio for the current calendar year
on or before November 1 of the current calendar year, based
upon the most recent data then available. The Commissioner of
Social Security shall include a statement of the fund ratio and
the national average wage index (as defined in section
209(k)(1)) and a statement of the effect such ration and the
level of such index may have upon benefit increases under this
subsection in any notification made under clause (i) and any
determination published under subparagraph (D).
(D) If the Commissioner of Social Security determines that a
base quarter in a calendar year is also a cost-of-living
computation quarter, the Commissioner shall publish in the
Federal Register within 45 days after the close of such quarter
a determination that a benefit increase is resultantly required
and the percentage thereof. The Commissioner shall also publish
in the Federal Register at that time (i) a revision of the
range of the primary insurance amounts which are possible after
the application of this subsection based on the dollar amount
specified in subparagraph (C)(i) of subsection (a)(1) (with
such revised primary insurance amounts constituting the
increased amounts determined for purposes of such subparagraph
(C)(i) under this subsection), or specified in subsection
(a)(3) as in effect prior to 1979, and (ii) a revision of the
range of maximum family benefits which correspond to such
primary insurance amounts (with such maximum benefits being
effective notwithstanding section 203(a) except for paragraph
(3)(B) thereof (or paragraph (2) thereof as in effect prior to
1979)). Notwithstanding the preceding sentence, such revision
of maximum family benefits shall be subject to paragraph (6) of
section 203(a) (as added by section 101(a)(3) of the Social
Security Disability Amendments of 1980.
(3) As used in this subsection, the term ``general benefit
increase under this title'' means an increase (other than an
increase under this subsection) in all primary insurance
amounts on which monthly insurance benefits under this title
are based.
(4) This subsection as in effect in December 1978, and as
amended by sections 111(a)(6), 111(b)(2), and 112 of the Social
Security Amendments of 1983 and by section 9001 of the Omnibus
Budget Reconciliation Act of 1986, shall continue to apply to
subsections (a) and (d), as then in effect and as amended by
section 5117 of the Omnibus Budget Reconciliation Act of 1990,
for purposes of computing the primary insurance amount of an
individual to whom subsection (a), as in effect after December
1978, does not apply (including an individual to whom
subsection (a) does not apply in any year by reason of
paragraph (4)(B) of that subsection (but the application of
this subsection in such cases shall be modified by the
application of subdivision (I) in the last sentence of
paragraph (4) of that subsection)), except that for this
purpose, in applying paragraphs (2)(A)(ii), (2)(D)(iv), and
(2)(D)(v) of this subsection as in effect in December 1978, the
phrase ``increased to the next higher multiple of $0.10'' shall
be deemed to read ``decreased to the next lower multiple of
$0.10''. For purposes of computing primary insurance amounts
and maximum family benefits (other than primary insurance
amounts and maximum family benefits for individuals to whom
such paragraph (4)(B) applies), the Commissioner of Social
Security shall revise the table of benefits contained in
subsection (a), as in effect in December 1978, in accordance
with the requirements of paragraph (2)(D) of this subsection as
then in effect, except that the requirement in such paragraph
(2)(D) that the Commissioner of Social Security publish such
revision of the table of benefits in the Federal Register shall
not apply.
(5)(A) If--
(i) with respect to any calendar year the
``applicable increase percentage'' was determined under
clause (ii) of paragraph (1)(C) rather than under
clause (i) of such paragraph, and the increase becoming
effective under paragraph (2) in such year was
accordingly determined on the basis of the wage
increase percentage rather than the CPI increase
percentage (or there was no such increase becoming
effective under paragraph (2) in that year because
there was no wage increase percentage greater than
zero), and
(ii) for any subsequent calendar year in which an
increase under paragraph (2) becomes effective the
OASDI fund ratio is greater than 32.0 percent,
then each of the amounts described in subdivisions (I), (II),
and (III) of paragraph (2)(A)(ii), as increased under paragraph
(2) effective with the month of December in such subsequent
calendar year, shall be further increased (effective with such
month) by an additional percentage, which shall be determined
under subparagraph (B) and shall apply as provided in
subparagraph (C). Any amount so increased that is not a
multiple of $0.10 shall be decreased to the next lower multiple
of $0.10.
(B) The applicable additional percentage by which the amounts
described in subdivisions (I), (II), and (III) of paragraph
(2)(A)(ii) are to be further increased under subparagraph (A)
in the subsequent calendar year involved shall be the amount
derived by--
(i) subtracting (I) the compounded percentage benefit
increases that were actually paid under paragraph (2)
and this paragraph from (II) the compounded percentage
benefit increases that would have been paid if all
increases under paragraph (2) had been made on the
basis of the CPI increase percentage,
(ii) dividing the difference by the sum of the
compounded percentage in clause (i)(I) and 100 percent,
and
(iii) multiplying such quotient by 100 so as to yield
such applicable additional percentage (which shall be
rounded to the nearest one-tenth of 1 percent),
with the compounded increases referred to in clause (i) being
measured--
(iv) in the case of amounts described in subdivision
(I) of paragraph (2)(A)(ii), over the period beginning
with the calendar year in which monthly benefits
described in such subdivision were first increased on
the basis of the wage increase percentage and ending
with the year before such subsequent calendar year, and
(v) in the case of amounts described in subdivisions
(II) and (III) of paragraph (2)(A)(ii), over the period
beginning with the calendar year in which the
individual whose primary insurance amount is increased
under such subdivision (II) became eligible (as defined
in subsection (a)(3)(B)) for the old-age or disability
insurance benefit that is being increased under this
subsection, or died before becoming so eligible, and
ending with the year before such subsequent calendar
year;
except that if the Commissioner of Social Security determines
in any case that the application (in accordance with
subparagraph (C)) of the additional percentage as computed
under the preceding provisions of this subparagraph would cause
the OASDI fund ratio to fall below 32.0 percent in the calendar
year immediately following such subsequent year, the
Commissioner shall reduce such applicable additional percentage
to the extent necessary to ensure that the OASDI fund ratio
will remain at or above 32.0 percent through the end of such
following year.
(C) Any applicable additional percentage increase in an
amount described in subdivision (I), (II), or (III) of
paragraph (2)(A)(ii), made under this paragraph in any calendar
year, shall thereafter be treated for all the purposes of this
Act as a part of the increase made in such amount under
paragraph (2) for that year.
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