[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
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            By fiscal year, millions of dollars--
                                   ---------------------------------------------------------------------------------------------------------------------
                                                                                                                                                  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
--------------------------------------------------------------------------------------------------------------------------------------------------------
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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