The Social security act and related laws

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Title:
The Social security act and related laws
Uniform Title:
Laws, etc
Physical Description:
viii, 816, xxx p. : ; 24 cm.
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English
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United States
United States -- Congress. -- Senate. -- Committee on Finance
Publisher:
U.S Govt. Print. Off.
Place of Publication:
Washington
Publication Date:
Edition:
April 1978 ed.

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Subjects / Keywords:
Social security -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
bibliography   ( marcgt )
non-fiction   ( marcgt )

Notes

Statement of Responsibility:
Committee on Finance, United States Senate, Russell B. Long, chairman.
General Note:
At head of title: 95th Congress, 2d session. Committee print.
General Note:
Issued Apr. 30, 1978.
General Note:
Reuse of record except for individual research requires license from Congressional Information Service, Inc.
General Note:
CIS Microfiche Accession Numbers: CIS 78 S362-18
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Reuse of record except for individual research requires license from LexisNexis Academic & Library Solutions.

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Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 022539905
oclc - 04086934X
Classification:
lcc - KF49
System ID:
AA00025902:00001

Full Text







05th Congress COMMITTEE PRINT
2d Session COMMITTEE T





The

SOCIAL SECURITY ACT

and Related Laws

April 1978 Edition



COMMITTEE ON FINANCE


UNITED

RUSSELL


STATES

B. LONG,


SENATE

Chairman


APRIL 30, 1978



Printed for the use of the Committee on Finance

U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1978


For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402


21-746 0































COMMITTEE ON FINANCE
RUSSELL B. LONG, Louisiana, Chairman


HIERMAN E. TALMADGE, Georgia
ABRAHAM RIBICOFF, Connecticut
HARRY F. BYRD, JR., Virginia
GAYLORD NELSON, Wisconsin
MIKE GRAVEL, Alaska
LLOYD BENTSEN, Texas
WILLIAM D. HATHAWAY, Maine
FLOYD K. HASKELL, Colorado
SPARK M. MATSUNAGA, Hawaii
DANIEL PATRICK MOYNIHAN, New York


CARL T. CURTIS, Nebraska
CLIFFORD P. HANSEN, Wyoming
ROBERT DOLE, Kansas
BOB PACKWOOD, Oregon
WILLIAM V. ROTH, JR., Delaware
PAUL LAXALT, Nevada
JOHN C. DANFORTH. Missouri


MICHAEL STERN, Staff Director
GEORGE W. PRITTS, Jr., .Mfinority Counsel

(II)










PREFACE


Since the 92d Congress, numerous laws have been enacted amend-
ing the Social Security Act or otherwise directly affecting programs
under that act. In order to provide a convenient reference to the
Social Security Act as it has been amended by these various laws,
this document has been prepared. It includes all of the titles of that
act currently in force with all amendments up to April 30, 1978. Also
included are the full text of the Federal-State Extended Unemploy-
ment Compensation Act, as amended, and pertinent excerpts from
the Internal Revenue Code and from various public laws enacted
since the 92d Congress.
This document is intended to supplement and not to replace the
Compilation of the Social Security Laws which is prepared by the
Social Security Administration and published from time to time as a
document of the House of Representatives. The most recent edition
of that Compilation was issued as House Document No. 93-117 (in 2
volumes) and contained the Social Security Act and related laws as
amended through January 1, 1973. The Compilation, although not con-
taining amendments after that date, does have several features not
found in this current document. In particular, the Compilation has
far more extensive footnotes, contains an index, and includes excerpts
from numerous laws affecting social security programs which are not
included in the current document.
It is expected that, as subsequent amendments to the Social Security
Act and related laws are enacted or as changes are made through the
operation of certain automatic provisions of existing law, appropriate
revision pages will be printed from time to time.
This document has been prepared solely for convenient reference
purposes. It does not have the effect of law.


(Im)






















Digitized by the Internet Archive
in 2013
















http://archive.org/details/socialsecurityac00u nit












CONTENTS


SOCIAL SECURITY ACT A AMENDED:
Title I-Grants to States for Old-Age Assistance and Med- Page
ical Assistance for the Aged------------------------- 1
Title II-Federal Old-Age, Survivors, and Disability In-
surance Benefits------------------------------------ 15
Title III-Grants to States for Unemployment Compensa-
tion Administration ----------------------------- 203
Title IV-Grants to States for Aid and Services to Needy
Families with Children and for Child Welfare Services_ 207
Title V-Maternal and Child Health and Crippled Chil-
dren's Services-------------------------------------- 259
Title VI-[Repealed effective Oct. 1, 1975] ----------- 271
Title VII-Administration-------------------------- 273
Title VIII-Taxes With Respect to Employment (super-
seded by Chapter 21 of the Internal Revenue Code of
1954) -----------------------------------------278
Title IX-Miscellaneous Provisions Relating to Employ-
ment Security----------- ----------------------- 279
Title X-Grants to States for Aid to the Blind----------- 295
Title XI-General Provisions and Professional Standards
Review ------------------------------------------ 305
Title XII-Advances to State Unemployment Funds----- 347
Title XIII-Reconversion Unemployment Benefits for Sea-
men (the provisions of this title have expired)--------- 349
Title XIV-Grants to States for Aid to the Permanently
and Totally Disabled---------------------- -------351
Title XV-[Repealed] (See chapter 85, title 5, U.S.C.) --- 359
Title XVI-Grants to States for Aid to the Aged, Blind,
or Disabled, or for Such Aid and Medical Assistance for
the Aged ------------------------------------- 361
Title XVI-Supplemental Security Income for the Aged,
Blind, and Disabled----------------------------- 377
Title XVII-Grants for Planning Comprehensive Action
to Combat Mental Retardation--------------------- 403
Title XVIII-Health Insurance for the Aged and Dis-
abled -------- -------------------------------- 405
(V)







Title XIX-Grants to States for Medical Assistance Pro- page
grams --------------------------------.-------- 507
Title XX-Grants to States for Services--- ------------541
Selected Provisions of the Internal Revenue Code of 1954:
Subtitle A-Income Taxes:
Chapter 1-Normal Taxes and Surtaxes---------- 557
Subchapter A, Part IV, Subpart A-Credits
Allowable ------------------------------ 557
Section 40-Expenses of Work Incentive
Programs --------------------- 557
Section 43-Earned Income--------------- 557
Section 44A. Expenses for Household and De-
pendent Care Services Necessary for Gain-
ful Employment---------------------- 559
Subpart C-Rules for Computing Credit for Expenses of
Work Incentive Programs------- -----------------562
Section 50A---------- ------------------------562
Section 50B --------------------- 567
Subchapter B, Part VI-Itemized Deductions for Indi-
viduals and Corporations------------------------- 570
Section 188-Amortization of Certain Expenditures
for On-the-Job Training and Child Care. Facilities- 570
Section 214-Repealed------------------------- 570
Chapter 2-Tax on Self-Employment Income-------- 570
Subtitle C-Employment Taxes:
Chapter 21-Federal Insurance Contributions Act--- 581
Chapter 22-Railroad Retirement Tax Act---------- 617
Chapter 23-Federal Unemployment Tax Act .------- 629
Chapter 25-General Provisions Relating to Employ-
ment Taxes----------- ---------------------- 662
Subtitle F-Procedure and Administration:
Chapter 61-Information and Returns-------------- 662
Chapter 62-Time and Place for Paying Tax.------- 675
Chapter 63-Assessments ------------------------ 676
Chapter 64-Collection------------ ------------- 677
Chapter 65-Abatements, Credits and Refunds----- 681
Chapter 66-Limitations --------- ..---- 685
Chapter 67-Interest--------------------------- 689
Chapter 68-Additions to the Tax, Additional
Amounts, and Assessable Penalties--------------- 690
Chapt'r 75-Crimes, Otlhri Offenses, and Forfeituires- 695
Chapter 78-Discovery of Liability and Enforce-
ment of Title----------------------------- 697
Chapter 79-Definitions------------------------- 699
Chapter 80-General Rules---------------------- 699






VII


Excerpt from the Consumer Credit Protection Act, as amended
(P.L. 90-321)-----------------------------------
Excerpts from the Food Stamp Act of 1977, as enacted by sec-
tion 1301 of the Food and Agriculture Act, of 1977 (P.L.
95-113)----------------------------------------
Selected Unemployment Insurance Laws:
Federal-State Extended Unemployment Compensation
Act, as amended ------------------
Excerpt from Public Law 93-618, the Trade Act of 1974,
(Adjustment Assistance for Workers) ------ -
Excerpt from Title 5, U.S. Code (Unemployment Benefits
for Federal Employees and Servicemen)-- ----
Excerpts from Public Laws related to the Social Security Act:
Public Law 93-66, as amended --------------
Public Law 93-233, as amended -------------


Public
Public
Public
Public
Public
Public
Public
Public
Public
Public
Public
Public
Public
Public
Public
Public
Public
Public


Law
Law
Law
Law
Law
Law
Law
Law
Law
Law
Law
Law
Law
Law
Law
Law
Law
Law


93-368--------------------
93-480----------------------
93-647, as amended--- ----------
94-12-------- ----------------
94-45------------------------------
94-88---------------------
94-164 ------------------------.
94-182 ---------------------
94-202 ---------------------
94-274, as amended ------------
94-331, as amended------------------------
94--368 -------------- ---
94-375-----------------------------
94-401, as amended -------------
94-437---------------------------
94-455-----------------------------
94-563 -------------------
94-566-----------------


Public Law 94-585----------------------


Public
Public
Public
Public
Public
Public
Public


Law 95-19--------------------
Law 95-30 -----------------
Law 95-59 -------------------
Law 95-142--------------------
Law 95-171 ------------------
Law 95-210 -----------------
Law 95-216 -------------------


Page
703


707


711

718

733

741
749
757
758
758
760
762
765
767
768
771
774
777
778
778
779
781
782
783
785
794
794
795
796
797
802
802
805





VIII


Appendix: Page
A-Amending Legislation------------------------- (i)
B-Social Security Taxes --------------------------- (v)
C-Federal Matching Percentages for Welfare Programs:
1975-77 --------------------------------------(vii)
D-Federal Matching Percentages for Welfare Programs:
1978-79 ------------------------ ------------- (viii)
E-Variable Amounts Applicable to Selected Provisions- (ix)
F-Section 215 Under Former Law----------------- (viii)













SOCIAL SECURITY ACT, AS AMENDED

AN ACT
To provide for the general welfare by establishing a system of Federal old-age
benefits, and by enabling the several States to make more adequate provision
for aged persons, blind persons, dependent and crippled children, maternal and
child welfare, public health, and the administration of their unemployment
compensation laws; to establish a Social Security Board; to raise revenue;
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

TITLE I-GRANTS TO STATES FOR OLD-AGE ASSIST-
ANCE AND MEDICAL ASSISTANCE FOR THE AGED1
Page'
Sec. 1. Appropriation -------------------------------------- 1-------
Sec. 2. State Old-Age Assistance and Medical Assistance Plans---.------- 2
Sec. 3. Payment to States --- ------------------------------- 5
Sec. 4. Operation of State Plans------------------- ----------------- 11
Sec. 5. Administration ------------------------ -------------------12
Sec. 6. Definitions -----------------------------------------------12

Appropriation

Section 1. For the purpose (a) of enabling each State, as far as
practicable under the conditions in such State, to furnish financial
assistance to aged needy individuals, (b) of enabling each State, as
far as practicable under the conditions in such State, to furnish medi-
cal assistance on behalf of aged individuals who are not recipients
of old-age assistance but whose income and resources are insufficient
to meet the costs of necessary medical services, and (c) of encourag-
ing each State, as far as practicable under the conditions in such
State, to furnish rehabilitation and other services to help individuals
referred to in clause (a) or (b) to attain or retain capability for self-
care, there is hereby authorized to be appropriated for each fiscal
year a sum sufficient to carry out the purposes of this title. The sums
made available under this section shall be used for making payments
to States which have submitted, and had approved by the Secretary
of Health, Education, and Welfare (hereinafter referred to as the
"Secretary"), State plans for old-age assistance, or for medical assist-

1 P.L. 92-603, sec. 303, repealed title I effective January 1, 1974, but such repeal does not
apply to Puerto Rico, Guam, and the Virgin Islands.
a This table of contents does not appear in the law.
(1)






Sec. 1


ance for the aged, or for old-age assistance and medical assistance for
the aged.

State Old-Age and Medical Assistance Plans
Sec. 2. (a) A State plan for old-age assistance, or for medical
assistance for the aged, or for old-age assistance and medical assistance
for the aged must-
(1) except to the extent permitted by the Secretary with re-
spect to services, provide that it shall be in effect in all political
subdivisions of the State, and, if administered by them, be man-
datory upon them;
(2) provide for financial participation by the State;
(3) either provide for the establishment or designation of a
single State agency to administer the plan, or provide for the
establishment or designation of a single State agency to supervise
the administration of the plan;
(4) (A) provide for granting an opportunity for a fair hearing
before the State agency to any individual whose claim for assist-
ance under the plan is denied or is not acted upon with reason-
able promptness, and (B) that if the State plan is administered
in each of the political subdivisions of the State by a local agency
and such local agency provides a hearing at which evidence may
be presented prior to a hearing before the State agency, such local
agency may put into effect immediately upon issuance its decision
upon the matter considered at such hearing;
(5) provide (A) such methods of administration (including
methods relating to the establishment and maintenance of per-
sonnel standards on a merit basis, except that the Secretary shall
exercise no authority with respect to the selection, tenure of office,
and compensation of any individual employed in accordance with
such methods) as are found by the Secretary to be necessary for
the proper and efficient, operation of the plan, and (B) for the
training and effective use of paid subprofessional staff, with par-
ticular emphasis on the full-time or part-time employment of re-
cipients and other persons of low income, as community service
aides, in the administration of the plan and for the use of nonpaid
or partially paid volunteers in a social service volunteer program
in providing services to applicants and recipients and in assisting
any advisory committees established by the State agency;
(6) provide that thie State agency will make such reports, in
such form and containing such information, as the Secretary may
from time to time require, and comply with such provisions as
the Secretary may from time to time find necessary to assure the
correctness and verification of such reports;






Sec. 2(a)


(7) provide safeguards which permit the use or disclosure of
information concerning applicants or recipients only (A) to
public officials who require such information in connection with
their official duties or (B) to other persons for purposes directly
connected with the administration of the State plan;
(8) provide that all individuals wishing to make application
for assistance under the plan shall have opportunity to do so, and
that such assistance shall be furnishlied with reasonable prompt-
ness to all eligible individuals;
(9) provide, if the plan includes assistance for or on behalf of
individuals in private or public institutions, for the establishment
or designation of a State authority or authorities which shall be
responsible for establishing and maintaining standards for such
institutions;
(10) if the State plan includes old-age assistance-
(A) provide that the State agency shall, in determining
need for such assistance, take into consideration any other
income and resources of an individual claiming old-age as-
sistance, as well as any expenses reasonably attributable to
the earning of any such income; except that, in making such
determination, (i) the State agency may disregard not more
than $7.50 per month of any income and (ii) of the first $80
per month of additional income which is earned the State
agency may disregard not more than the first $20 thereof
plus one-half of the remainder;
(B) include reasonable standards, consistent with the ob-
jectives of this title, for determining eligibiltiy for and the
extent of such assistance; and
(C) provide a description of the services (if any) which
the State agency makes available (using whatever internal
organizational arrangement it finds appropriate for this pur-
pose) to applicants for and recipients of such assistance to
help them attain self-care, including a description of the
steps taken to assure, in the provision of such services, maxi-
mum utilization of other agencies providing similar or re-
lated services; and
(11) if the State plan includes medical assistance for the
aged-
(A) provide for inclusion of some institutional and some
noninstitutional care and services;
(B) provide that no enrollment fee, premium, or similar
charge will be imposed as a condition of any individual's
eligibility for medical assistance for the aged under the plan;






Sec. 2(a)


(C) provide for inclusion, to the extent required by regula-
tions prescribed by the Secretary, of provisions (conforming
to such regulations) with respect to the furnishing of such
assistance to individuals who are residents of the State but
are absent therefrom;
(D) include reasonable standards, consistent with the ob-
jectives of this title, for determining eligibility for and the
extent of such assistance; and
(E) provide that no lien may be imposed against the prop-
erty of any individual prior to his death on account of medi-
cal assistance for the aged paid or to be paid on his behalf
under the plan (except pursuant to the judgment of a court
on account of benefits incorrectly paid on behalf of such indi-
vidual), and that there shall be no adjustment or recovery
(except, after the death of such individual and his surviving
spouse, if any, from such individual's estate) of any medical
assistance for the aged correctly paid on behalf of such indi-
vidual under the plan;
(12) if the State plan includes assistance to or in behalf of
individuals who are patients in institutions for mental diseases-
(A) provide for having in effect such agreements or other
arrangements with State authorities concerned with mental
diseases, and, where appropriate, with such institutions, as
may be necessary for carrying out the State plan, including
arrangements for joint planning and for development of al-
ternate methods of care, arrangements providing assurance of
immediate readmittance to institutions where needed for in-
dividuals under alternate plans of care, and arrangements
providing for access to patients and facilities, for furnishing
information, and for making reports;
(B) provide for an individual plan for each such patient
to assure that the institutional care provided to him is in his
best interests, including, to that end, assurances that there
will 1be initial and periodic review of his medical and other
needs, that he will be given appropriate medical treatment
within the institution, and that there will be a periodic deter-
mination of his need for continued treatment in the
institution;
(C) provide for the development of alternate plans of
car. ,making nlmaximum utilization of available resources, for
recipients w1lo would otherwise need care in such institutions,
includil(g appropriate niedical treatment and other assist-
ance; for services referred to in section 3(a) (4) (A) (i) and
(ii) which are appropriate for such recipients and for such






Sec. 3(a)


patients; and for methods of administration necessary to as-
sure that the responsibilities of the State agency under the
State plan with respect to such recipients and such patients
will be effectively carried out; and
(D) provide methods of determining the reasonable cost
of institutional care for such patients; and
(13) if the State plan includes assistance to or in behalf of
patients in public institutions for mental diseases, show that the
State is making satisfactory progress toward developing and im-
plementing a comprehensive mental health program, including
provision for utilization of community mental health centers,
nursing homes, and other alternatives to care in public institu-
tions for mental diseases.
(b) The Secretary shall approve any plan which fulfills the con-
ditions specified in subsection (a), except that he shall not approve
any plan which imposes, as a condition of eligibility for assistance
under the plan-
(1) an age requirement of more than sixty-five years; or
(2) any residence requirement which (A) in the case of appli-
cants for old-age assistance, excludes any resident of the State who
has resided therein five years during the nine years immediately
preceding the application for old-age assistance and has resided
therein continuously for one year immediately preceding the ap-
plication, and (B) in the case of applicants for medical assistance
for the aged, excludes any individual who resides in the State; or
(3) any citizenship requirement which excludes any citizen of
the United States.
At the option of the State, the plan may provide that manuals and
other policy issuances will be furnished to persons without charge for
the reasonable cost of such materials, but such provision shall not be
required by the Secretary as a condition for the approval of such plan
under this title.
(c) Nothing in this title shall be construed to permit a State to have
in effect with respect to any period more than one State plan approved
under this title.
Payment to States
Sec. 3. (a) From the sums appropriated therefore, the Secretary of
the Treasury shall pay to each State which hlias a plan approved under
this title, for each quarter, beginning with the quarter commencing
October 1, 1960-
(1) in the case of any State other than Puerto Rico, the Virgin
Islands, and Guam, an amount equal to the sum of the following
proportions of the total amounts expended during each month of
such quarter as old-age assistance underthe State plan (including





Sec. 3(a)


expenditures for premiums under part B of title XVIII for indi-
viduals who are recipients of money payments under such plan
and other insurance premiums for medical or any other type of
remedial care or the cost thereof)-
(A) 3%7 of such expenditures, not counting so much of
any expenditure with respect to such month as exceeds the
product of $37 multiplied by the total number of recipients
of old-age assistance for such month (which total number,
for purposes of this subsection, means (i) the number of
individuals who received old-age assistance in the form of
money payments for such month, plus (ii) the number of
other individuals with respect to whom expenditures were
made in such month as old-age assistance in the formn of
medical or any other type of remedial care) ; plus
(B) the larger of the following:
(i) (I) the Federal percentage (as defined in section
1101 (a) (8)) of the amount by which such expendi-
tures exceed the amount which may be counted under
clause (A), hot counting so much of such excess with
respect to such month as exceeds the product of $38 mul-
tiplied by the total number of recipients of old-age assist-
ance for such month, plus (II) 15 per centum of the
total expended during such month as old-age assistance
under the State plan in the form of medical or any other
type of remedial care, not counting so much of such ex-
penditure with respect to such month as exceeds the
product of $15 multiplied by the total number of recip-
ients of old-age assistance for such month, or
(ii) (I) the Federal medical percentage (as defined
in section 6(c)) of the amount by which such expendi-
tures exceed the maximum which may be counted under
clause (A), not counting so much of any expenditures
with respect to such month as exceeds (a) the product of
$52 multiplied by the total number of such recipients of
old-age assistance for such month, or (b) if smaller, the
total expended as old-age assistance in the form of medi-
cal or any other type of remedial care with respect to such
month plus the product of $37 multiplied by such total
number of such recipients, plus (II) the Federal per-
centage of the amount by which the total expended dur-
ing Sclic month as old-age assistance under the State
plan exceeds the amount which may be counted under
clause (A) and the preceding provisions of this clause
(B) (ii), not counting so much of such excess with respect






Sec. 3(a)


to such month as exceeds the product of $38 multiplied by
the total number of such recipients of old-age assistance
for such month;
(2) in the case of Puerto Rico, the Virgin Islands, and Guam,
an amount equal to-
(A) one-half of the total of the sums expended during
such quarter as old-age assistance under the State plan (in-
cluding expenditures for premiums under part B of title
XVIII for individuals who are recipients of money payments
under such plan and other insurance premiums for medical
or any other type of remedial care or the cost thereof), not
counting so much of any expenditure with respect to any
month as exceeds $37.50 multiplied by the total number of
recipients of old-age assistance for such month; plus
(B) the larger of the following amounts: (i) one-half of
the amount by which such expenditures exceed the maximum
which may be counted under clause (A), not counting so
much of any expenditure with respect to any month as ex-
ceeds (I) the product of $45 multiplied by the total number
of such recipients of old-age assistance for such month, or
(II) if smaller, the total expended as old-age assistance in
the form of medical or any other type of remedial care with
respect to such month plus the product of $37.50 multiplied
by'the total number of such recipients, or (ii) 15 per centum
of the total of the sums expended during such quarter as old-
age assistance under the State plan in the form of medical or
any other type of remedial care, not counting so much of
any expenditure with respect to any month as exceeds the
product of $7.50 multiplied by the total number of such re-
cipients of old-age assistance for such month;
(3) in the case of any State, an amount equal to the Federal
medical percentage (as defined in section 6(c)) of the total
amounts expended during such quarter as medical assistance for
the aged under the State plan (including expenditures for insur-
ance premiums for medical or any other type of remedial care
or the cost thereof) ; and
(4) in the case of any State whose State plan approved under
section 2 meets the requirements of subsection (c) (1), an amount
equal to the sum of the following proportions of the total amounts
expended during such quarter as found necessary by the Secretary
of Health, Education, and Welfare for the proper and efficient
administration of the State plan-
(A) 75 per centum of so much of such expenditures as
are for-






Sec. 3(a)


(i) services which are prescribed pursuant to subsection
(c) (1) and are provided (in accordance with the next
sentence) to applicants for or recipients of assistance
under the plan to help them attain or retain capability
for self-care, or
(ii) other services, specified by the Secretary as likely
to prevent or reduce dependency, so provided to such ap-
plicants or recipients, or
(iii) any of the services prescribed pursuant to sub-
section (c) (1), and of the services specified as provided
in clause (ii), which the Secretary may specify as appro-
priate for individuals who, within such period or periods
as the Secretary may prescribe, have been or are likely
to become applicants for or recipients of assistance under
the plan, if such services are requested by such individ-
uals and are provided to such individuals in accordance
with the next sentence, or
(iv) the training (including both short- and long-
term training at educational institutions through grants
to such institutions or by direct financial assistance to
students enrolled in such institutions) of personnel em-
ployed or preparing for employment by the State agency
or by the local agency administering the plan in the po-
litical subdivision; plus
(B) one-half of so much of such expenditures (not in-
cluded under subparagraph (A)) as are for services provided
(in accordance with the next sentence) to applicants for or
recipients of assistance under the plan, and to individuals
requesting such services who (within such period or periods
as the Secretary may prescribe) have been or are likely to
become applicants for or recipients of such assistance; plus
(C) one-half of the remainder of such expenditures.
The services referred to in subparagraphs (A) and (B) shall,
except to the extent specified by the Secretary, include only-
(D) services provided by the staff of the State agency, or
of the local agency administering the State plan in-the politi-
cal subdivision: Provided, That no funds authorized under
this title shall be available for services defined as vocational
rehabilitation services under the Vocational Rehabilitation
Act (i) which are available to individuals in need of them
und(ler programs for their rehabilitation carried on under a
State plan approved under such Act, or (ii) which the State
agency or agencies a(ldministering or supervising the adminis-
tration of the State plan approved under such Act, are able






Sec. 3(b)


and willing to provide if reimbursed for the cost thereof pur-
suant to agreement under subparagraph (E), if provided by
such staff, and
(E) under conditions which shall be prescribed by the
Secretary, services which in the judgment of the State agency
cannot be as economically or as effectively provided by the
staff of such State or local agency and are not otherwise rea-
sonably available to individuals in need of them, and which
are provided, pursuant to agreement with the State agency,
by the State health authority or the State agency or agencies
administering or supervising the administration of the State
plan for vocational rehabilitation services approved under
the Vocational Rehabilitation Act or by any other State
agency which the Secretary may determine to be appropri-
ate (whether provided by its staff or by contract with public
(local) or nonprofit private agencies);
except that services described in clause (i) of subparagraph (D)
hereof may be provided only pursuant to agreement with such
State agency or agencies administering or supervising the admin-
istration of the State plan for vocational rehabilitation services
so approved. The portion of the amount expended for adminis-
tration of the State plan to which subparagraph (A) applies and
the portion thereof to which subparagraph (B) and (C) apply
shall be determined in accordance with such methods and pro-
cedures as may be permitted by the Secretary; and
(5) in the case of any State whose State plan approved under
section 2 does not meet the requirements of subsection (c) (1), an
amount equal to one-half of the total of the sums expended dur-
ing such quarter as found necessary by the Secretary for the
proper and efficient administration of the State plan, including
services referred to in paragraph (4) and provided in accordance
with the provisions of such paragraph.
(b) The method of computing and paying such amounts shall be
as follows:
(1) The Secretary of Health, Education, and Welfare shall,
prior to the beginning of each quarter, estimate the amount to
be paid to the State for such quarter under the provisions of
subsection (a), such estimate to be based on (A) a report filed
by the State containing its estimate of the total sum to be ex-
pended in such quarter in accordance with the provisions of such
subsection, and stating the amount appropriated or made avail-
able by the State and its political subdivisions for such expendi-
tures in such quarter, and if such amount is less than the State's
proportionate share of the total sum of such estimated expendi-


21-746 0- 78 2






Sec. 3(b)


tures, the source or sources from which the difference is expected
to be derived, (B) records showing the number of aged individ-
uals in the State, and (C) such other investigation as the Secre-
tary may find necessary.
(2) The Secretary of, Health, Education, and Welfare shall
then certify to the Secretary of the Treasury the amount so
estimated by the Secretary of Health, Education, and Welfare,
(A) reduced or increased, as the case may be, by any sum by
which the Secretary of Health, Education, and Welfare finds that
his estimate for any prior quarter was greater or less than the
amount which should have been paid to the State utinder sub-
section (a) for such quarter, and (B) reduced by a sum equivalent
to the pro rata share to which the United States is equitably
entitled, as determined by the Secretary of Health, Education,
and Welfare, of the net amount recovered during any prior quar-
ter by the State or any political subdivision thereof with respect
to assistance furnished under the State plan; except that such
increases or reductions shall not be made to the extent that such
sums have been applied to make the amount certified for any
prior quarter greater or less than the amount estimated by the
Secretary of Health, Education, and Welfare for such prior
quarter: Provided, That any part of the amount recovered from
the estate of a deceased recipient which is not in excess of the
amount expended by the State or any political subdivision thereof
for the funeral expenses of the deceased shall not be considered
as a basis for reduction under clause (B) of this paragraph.
(3) The Secretary of the Treasury shall thereupon, through
the Fiscal Service of the Treasury Department and prior to audit
or settlement by the General Accounting Office, pay to the State,
at the time or times fixed by the Secretary of Health, Education,
and Welfare, the amounts so certified.
(c) (1) In order for a State to qualify for payments under para-
graph (4) of subsection (a), its State plan approved under section 2
must provide that the State agency shall make available to applicants
for recipients of old-age assistance under such State plan at least those
services to help them attain or retain capability for self-care which are
prescribed by the Secretary.
(2) In the case of any State whose State plan included a provision
meeting the requirements of paragraph (1), but with respect to which
the Secretary finds, after reasonable notice and opportunity for hear-
ing to the State agency administering or supervising the administra-
tion of such plan, that-
(A) the provision has been so changed that it no longer com-
plies with the requirements of paragraph (1), or


10






Sec. 4


(B) in the administration of the plan there is a failure to com-
ply substantially with such provision,
the Secretary shall notify such State agency that further payments
will not be made to the State under paragraph (4) of subsection (a)
until he is satisfied that there will no longer be any such failure to
comply. Until the Secretary is so satisfied further payments with re-
spect to the administration of such State plan shall not be made under
paragraph (4) of subsection (a) but shall instead be made, subject to
the other provisions of this title, under paragraph (5) of such sub-
section.
(d) Notwithstanding the preceding provisions of this section, the
amount determined under such provisions for any State for any quar-
ter which is attributable to expenditures with respect to patients in
institutions for mental diseases shall be paid only to the extent that
the State make a showing satisfactory to the Secretary that total ex-
penditures in the State from Federal, State, and local sources for
mental health services (including payments to or in behalf of individ-
uals with mental health problems) under State and local public health
and public welfare programs for such quarter exceed the average of
the total expenditures in the State from such sources for such services
under such programs for each quarter of the fiscal year ending June 30,
1965. For purposes of this subsection, expenditures for such services
for each quarter in the fiscal year ending June 30, 1965, in the case
of any State shall be determined on the basis of the latest data, satis-
factory to the Secretary, available to him at the time of the first de-
termination by him under this subsection for such State; and expendi-
tures for such services for any quarter beginning after December 31,
1965, in the case of any State shall be determined on the basis of the
latest data, satisfactory to the Secretary, available to him at the time
of the determination under this subsection for such State for such
quarter; and determinations so made shall be conclusive for purposes
of this subsection.

Operation of State Plans
Sec. 4. In the case of any State plan which has been approved under
this title by the Secretary of Health, Education, and Welfare, if the
Secretary, after reasonable notice and opportunity for hearing to the
State agency administering or supervising the administration of such
plan finds-
(1) that the plan has been so changed as to impose any age,
residence, or citizenship requirement prohibited by section 2(b),
or that in the administration of the plan any such prohibited re-
quirement is imposed, with the knowledge of such State agency,
in a substantial number of cases; or






Sec. 4


(2) that in the administration of the plan there is a failure to
comply substantially with any provision required by section 2(a)
to be included in the plan;
the Secretary shall notify such State agency that further payments
will not be made to the State (or, in his discretion, that payments will
be limited to categories under or parts of the State plan not affected
by such failure) until the Secretary is satisfied that such prohibited
requirement is no longer imposed, and that there is no longer any such
failure to comply. Until he is so satisfied he shall make no further
payments to such State (or shall limit payments to categories under
or parts of the State plan not affected by such failure).

Administration
Sec. 5. [Executed. Authorized appropriation for administrative
expenses of the Social Security Board under this title for the fiscal year
ending June 30, 1936.]
Definitions
Sec. 6. (a) For the purposes of this title, the term "old-age assist-
ance" means money payments to, or (if provided in or after the third
month before the month in which the recipient makes application for
assistance) medical care in behalf of or any type of remedial care
recognized under State law in behalf of, needy individuals who are
sixty-five years of age or older, but does not include any such pay-
mients to or care in behalf of any individual who is an inmate of a
public institution (except as a patient in a medical institution). Such
term also includes payments which are not included within the mean-
ing of such term under the preceding sentence, but which would be so
included except that they are made on behalf of such a needy indi-
vidual to another individual who (as determined in accordance with
standards prescribed by the Secretary) is interested in or concerned
with the welfare of such needy individual, but only with respect to a
State whose State plan approved under section 2 includes provision
for-
(1) determination by the State agency that such needy indi-
vidual hlias, by reason of his physical or mental condition, such
inability to manage funds that making payments to him would
be contrary to his welfare and, therefore, it is necessary to provide
such assistance through payments described in this sentence;
(2) making such 1-lpayments only on cases in which such pay-
ments will, under the rules otherwise applicable under the State
plan for detvrJimnlinlg need and the amount of old-age assistance to
be paid (and in conjunction with other income and resources),






Sec. 6(b)


meet all the need of the individuals with respect to whom such
payments are made; I
(3) undertaking and continuing special efforts to protect the
welfare of such individual and to improve, to the extent possible,
his capacity for self-care and to manage funds;
(4) periodic review by such State agency of the determination
under paragraph (1) to ascertain whether conditions justifying
such determination still exist, with provision for termination of
such payments if they do not and for seeking judicial appointment
of a guardian or other legal representative, as described in section
1111, if and when it appears that such action will best serve the
interests of such needy individual; and
(5) opportunity for a fair hearing before the State agency on
the determination referred to in paragraph (1) for any individual
with respect to whom it is made.
At the option of a State (if its plan approved under this title so pro-
vides), such term (i) need not include money payments to an individ-
ual who has been absent from such State for a period in excess of 90
consecutive days (regardless of whether he has maintained his resi-
dence in such State during such period) until he has been present in
such State for 30 consecutive days in the case of such an individual who
has maintained his residence in such State during such period or 90
consecutive days in the case of any other such individual, and (ii)
may include rent payments made directly to a public housing'agency
on behalf of a recipient or a group or groups of recipients of assist-
ance under such plan.
(b) For purposes of this title, the term "medical assistance for the
aged" means payment of part or all of the cost of the following care
and services (if provided in or after the third month before the month
in which the recipient makes application for assistance) for individ-
uals sixty-five years of age or older who are not recipients of old-age
assistance (except, for any month, for recipients of old-age assistance
who are admitted to or discharged from a medical institution during
such month) but whose income and resources are insufficient to meet
all of such cost-
(1) inpatient hospital services;
(2) skilled nursing-home services;
(3) physicians' services;
(4) outpatient hospital or clinic services;
(5) home health care services;
(6) private duty nursing services;
(7) physical therapy and related services;
(8) dental services;






Sec. 6(b)


(9) laboratory and X-ray services;
(10) prescribed drugs, eyeglasses, dentures, and prosthetic de-
vices;
(11) diagnostic, screening, and preventive services; and
(12) any other medical care or remedial care recognized under
State law;
except that such term does not include any such payments with respect
to care or services for any individual who is an inmate of a public
institution (except as a patient in a medical institution).
(c) For purposes of this title, the term "Federal medical percent-
age" for any State shall be 100 per centum less the State percentage;
and the State percentage shall be that percentage which bears the same
ratio to 50 per centum as the square of the per capital income of such
State bears to the square of the per capital income of the continental
United States (including Alaska) and Hawaii; except that (i) the
Federal medical percentage shall in no case be less than 50 per centum
or more than 80 per centum, and (ii) the Federal medical percentage
for Puerto Rico, the Virgin Islands, and Guam shall be 50 per centum.
The Federal medical percentage for any State shall be determined and
promulgated in accordance with the provisions of subparagraph (B)
of section 1101(a) (8) (other than the proviso at the end thereof);
except that the Secretary shall, as soon as possible after enactment of
the Social Security Amendments of 1960, determine and promulgate
the Federal medical percentage for each State--
(1) for the period beginning October 1, 1960, and ending with
the close of June 30, 1961, which promulgation shall be based on
the same data with respect to per capital income as the data used
by the Secretary in promulgating the Federal percentage (under
section 1101(a)(8)) for such State for the fiscal year ending
June 30, 1961 (which promulgation of the Federal medical per-
centage shall be conclusive for such period), and
(2) for the period beginning July 1, 1961, and ending with
the close of June 30, 1963, which promulgation shall be based on
the same data with respect to per capital income as the data used
by the Secretary in promulgating the Federal percentage (under
section 1101 (a) (8)) for such State for such period (which pro-
mulgation of the Federal medical percentage shall be conclusive
for such period).











Revised April 1978


TITLE II-FEDERAL OLD-AGE, SURVIVORS, AND DIS-
ABILITY INSURANCE BENEFITS

SEC. 201. Federal Old-Age and Survivors Insurance Trust Fund and Page'
Federal Disability Insurance Trust Fund-----,--------------------- 20
(a) Creation of Federal Old-Age and Survivors Insurance Trust
Fund --------------------------------------------------- 20
(b) Creation of Federal Disability Insurance Trust Fund---------- 21
(c) Board of Trustees--------------------------------- --------- 23
(d) Investment of Funds--------------------------------------- 24
(e) Sale of Obligations---------------------------------------- 24
(f) Crediting of Interest on and Proceeds From Sales of Obligations- 24
(g) Payment From Trust Funds Into Treasury--------------------- 25
(h) Trust Funds Used for Payments of Benefits------------------- 27
(i) Acceptance of Gifts---------------------- ----------------- 27
SEC. 202. Old-Age and Survivors Insurance Benefit Payments------------ 28
(a) Old-Age Insurance Benefits--------------------------------- 28
(b) Wife's Insurance Benefits------------------------------------ 28
(c) Husband's Insurance Benefits-------------------------------- 30
(d) Child's Insurance Benefits----------- ----------------------30-A
(e) Widow's Insurance Benefits--------------------------------- 36
(f) Widower's Insurance Benefits-------------------------------- 39
(g) Mother's Insurance Benefits---------------------------------- 43
(h) Parent's Insurance Benefits---------------------------------- 45
(i) Lump-sum Death Payments---------------- ------------------46
(j) Application for Monthly Insurance Benefits; Retroactive Effect
of Application; Waiver of Entitlement--------------------- 48
(k) Simultaneous Entitlement to More Than One Type of Insurance
Benefit ------------------------------------------------- 50
(1) Effect of Entitlement to Survivor Benefits Under Railroad Re-
tirement Act ------------------ ------------------- 51
(m) Minimum Survivor's Benefit---------------------------------- 51
(n) Termination of Benefits Upon Deportation of Primary Bene-
ficiary --------------------------------------------------- 52
(o) Application for Benefits by Survivors of Members and Former
Members of the Uniformed Services------------------------ 53
(p) Extension of Period for Filing Proof of Support and Applica-
tions for Lump-Sum Death Payment----------------------- 53
(q) Reduction of Benefit Amounts for Certain Beneficiaries------- 54
(r) Presumed Filing of Application by Individuals Eligible for Old-
Age Insurance Benefits and for Wife's or Husband's Insurance
Benefits -------------------------------------------------61
(s) Child Aged 18 or Over Attending School----------------------- 61
(t) Suspension of Benefits of Aliens Who Are Outside the United
States --------------------------------------------------62
(u) Effect of Conviction of Subversive Activities, etc--------------- 64
(v) Waiver of Benefits----------------------- ------------------ 65
(w) Increase in Old-Age Insurance Benefit Amounts on Account of
Delayed Retirement-------------------------------------- 66
SEC. 203. Reduction of Insurance Benefits----------------------------- 67
(a) Maximum Benefits Payable---------------------------------- 67
(b) Deductions on Account of Work------------------------------ 71
(c) Deductions on Account of Noncovered Work Outside the U.S.;
Failure To Have Child in Care----------------------------- 72
(d) Deductions From Dependents' Benefits on Account of Old-Age
Insurance Beneficiary's Noncovered Work Outside the U.S___ 73
(e) Occurrence of More Than One Event-------------------------- 74

a This table of contents does not appear in the law.
(151







16 Revised April 1978

SEC. 203. Reduction of Insurance Benefits-Continued Page
(f) Months to Which Earnings Are Charged----------------------- 74
(g) Penalty for Failure To Report Certain Events ---------------- 79
(h) Reuort of Earnings to Secretary----------- -----------------79-A
(i) Circumstances Under Which Deductions and Reductions Not
Required ----------------------------------------------79-C
(j) Attainment of Age Seventy------------------ --------79-C
(k) Noncovered Remunerative Activity Outside the United States-- 79-C
(1) Good Cause for Failure To Make Reports Required------------- 79-D
SEC.. -204. Overpayments and Underpayments-------------------- 79-D
(a) Adjustment of Errors in Payments-------------------------- 79-D
(b) When Adjustment or Recovery of Overpayment Not Made------ 79-E
(c) Nonliability of Certifying or Disbursing Officer--------------- 79-E
(d) Special Rules Regarding Underpayments------------ --------- 79-E
SEC. 205. Evidence, Procedure, and Certification for Payment------------ 79-F
(a) Authority of Secretary To Make Rules and Regulations To Carry
Out Provisions of Title II------------------------------ 79-F
(b) Decisions by Secretary Regarding Rights of Claimants------- 79-F
(c) Earnings Records Maintained by Secretary; Time Limitation for
Revisions ---------------------------------------------79-G
(d) Authority of Secretary To Issue Subpenas--------------------- 83
(e) Contumacy or Failure To Obey Subpena----------------------- 84
(f) [Repealed.]
(g) Review of Secretary's Decision by Court----------------------- 84
(h) Finality of Secretary's Decision_ --------------------------- 85
(i) Certification by Secretary for Payment-------- ----------------- 85
(j) Authority of Secretary To Certify Payment of Benefits to Some-
one Other Than the Beneficiary---------------------------- 86
(k) -Settlement of Claims of Incompetents------------------------ 86
(1) Authority of Secretary To Delegate Powers-------------------- 86
(m) [Repealed.]
(n) Joint Payment of Benefits----------------------------------- 86
(o) Crediting of Compensation Under the Railroad Retirement Act-- 87
(p) Special Rules in Case of Federal Service---------------------- 87
(q) Expedited Benefit Payments------ -------------------- 88
SEC. 206. Representation of Claimants--------------------------------- 89
(a) Representation Before Secretary; Fees for Services Before
Secretary -----------------------------------------------89
(b) Court Determination of Fees in Certain Cases--------------- 90
SEC. 207. Assignment ----------------------------------------------- 91
SEC. 208. Penalties ------------------------------------------------- 91
(a) False Statements To Obtain Increase in Benefits------------- -91
(b) False Statements on Applications---------------------------- 91
(c) False Statements Made for Use in Determining Rights to
Payments ---------------- ------------------- ------------91
(d) Fraudulent Concealment or Failure To Disclose Events Affecting
Initial or Continued Right to Payment--------------------- 92
(e) Willful Conversion of Benefits by Representative Payee-------- 92
(f) Furnishing False Information To Obtain Social Security Account
Number ------------------------------------------------92
(g) Penalty for Furnishing False Social Security Number With In-
tent To Deceive---------- -------------------------------- 92
(h) Penalty for Misuse of Social Security Number------- ------------ 92
SEC. 209. Definition of Wages----------------------------------------. 93
(a) Remuneration Excluded------------- ----------------------- 93
(b) Payments Under Plan or System Excluded-------------------- 94
(c) Retirement Pay Excluded -------------------------------- 94
(d) Sick Pay Excluded------------------------------------- 94
(e) Payments to or by Trust Exempt From Tax Under Internal
Revenue Code Excluded--------------------------------- 94
(f) Payment of Employee Tax by Employer Excluded--------------- 95
(g) Payments In Kind and Certain Cash Payments for Domestic
Employment or Employment Not in Course of Employer's
Trade or Business Excluded------------------------------- 95
(h) Reiiiuneration for Agricultural Labor-When Excluded-------- 95
(i) Remuneration Paid After Retirement Age-When Excluded---....- 95
(J) Remuneration Paid to IHoijmeworkers-When Excluded-------- 96







Revised April 1978


SEC. 209. Definition of Wages-Continued
(k) Moving Expenses of Employees--------------------------
(1) Tips-------------------------------------------------
(m) Payments by Employer Upon or After Termination of
Employment-----------------------------------------
(n) Payments by Employer to Survivor of Estate of Former Em-
ployee----------------------------------------------
(o) Payments to Employee Entitled to Disability Insurance Benefits-
(p) Remuneration Paid by Tax Exempt Organizations----------
SEC. 210. Employment-------------------------------------------
(a) Employment; Excluded Employment Defined-------------
(b) Included and Excluded Service Performed During Pay Period-.
(c) American Vessel Defined--------------------------------
(d) American Aircraft Defined------------------------------
(e) American Employer Defined-----------------------------
(f) Agricultural Labor Defined------------------------------
(g) Farm Defined------------------------------------------
(h) State Defined------------------------------------------
(i) United States Defined------ ----------
(j) Employee Defined--------------------------------------
(k) Covered Transportation Service Defined--------------------
(1) Service in the Uniformed Services Defined-----------------
(m) Member of a Uniformed Service Defined--------------------
(n) Crew Leader Defined-----------------------------------
(o) Peace Corps Volunteer Service---------------------------
SEC. 211. Self-Employment---------------------------------------
(a) Net Earnings From Self-Employment Defined---------------
(b) Self-Employment Income Defined-------------------------
(c) Trade or Business Defined-------------------------------
(d) Partnership and Partner Defined-------------------------
(e) Taxable Year Defined-----------------------------
(f) Computing Deceased's Net Earnings From Self-Employment
When Partnership Taxable Year Ends Because of Death----
(g) Regular Basis ---------------------
SEC. 212. Crediting of Self-Employment Income to Calendar Quarters__
(a) Calendar Taxable Year-------------------.....................--
(b) Taxable Year Other Than a Calendar Year-----------------
SEC. 213. Quarter and Quarter of Coverage------------------------
(a) Definitions ._... .... .. ...
(b) Crediting of Wages Paid in 1937 ----------------
(c) Alternative Method for Determining Quarters of Coverage for
1937 to 1950
(d) Amnount Required for a Quarter of Coverage----------------
SEC. 214. Insured Status for Purposes of Old-Age and Survivors Insurance
Benefits ------..-
(a) Fully Insured Individual--------------------------
(b) Currently Insured Individual---_------ ------
SEC. 215. Computation of Primary Insurance Amount------------
(a) Primary Insurance Amount
(b) Average Indexed Monthly Earnings; Average Monthly Wage-
(c) Application of Prior Provisions in Certain Cases---------
(d) Primary Insurance Benefit Under 1939 Act----------------
(e) Certain Wages and Self-Employment Income Not To Be
Counted _-----------
(f) Recomputation of Benefits---------------------------
(g) Rounding of Benefits ....... ...-------------------
(h) Exclusion Under Certain Circumstances of Remuneration Paid
to Public Health Service Reserve Officer for Service Prior to
July 1, 1960---------------------
(i) Cost-of-Living Increases in Benefits-----------------------
SEC. 216. Other Definitions.
(a) [Repealed.]
(b) Wife. ...
(c) Widow
(d) Divorced Wives, Divorce---------------------------------
(e) Child--------------------
(f) Husband --------------------------
(g) Widower ------ ----------------------.------


Page
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96

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98
98
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106
106
106
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107
107
107
107
108
110
111
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133
134
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135
136
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140
140
140
141
141-A
141-A







18 Revised April 1978

SEC. 216. Other Definitions-Continued page
(h) Determination of Status as Wife, Husband, Widow, Widower,
Child, or Parent---------------------------------_ --------142
(i) Disability: Period of Disability------------------------------- 145
(j) When Periods of Limitation End on Nonwork Days-------------__ 148
(k) Waiver of 9-Month Requirement for Widow, Stepchild, or
Widower in Certain Death Cases, or in the Case of Remarriage
to the Same Individual ------------------------------------ 148
SEC. 217. Benefits in Case of Veterans--------------------------------- 149
(a) Wage Credits for World War II Service----------------------- 149
(b) Insured Status of World War II Veterans Dying Within 3 Years
After Separation From Active Service------------------------ 150
(c) Time for Parent of Deceased Veteran To File Proof of Support--- 151
(d) Definition of World War II and World War II Veteran--------- 152
(e) Wage Credits for Military Service After World War II ---------- 152
(f) Waiver of Rights to Civil Service Retirement Annuity by Widow
or Child as Condition of Entitlement to Social Security Benefits- 154
(g) Reimbursement of Trust Fund for Cost of Wage Credits for
Certain Military Service ------------------------------- 154
(h) Wage Credits for American Citizen's World War II Service in
Armed Forces of U.S. Allies-------------------------------- 155
SEC. 218. Voluntary Agreements for Coverage of State and Local Em-
ployees ----------------------------------------------- 156
(a) Purpose of Agreement -------------------------------------- 156
(b) Definitions of Terms------------ ---- ----- 156
(c) Services Covered -------------------------------------- 157
(d) Positions Covered by Retirement Systems---------------------- 159
(e). Payments and Reports by States-------------------- ----- 165
(f) Effective Date of Agreement------------------------------ 166
(g) Termination of Agreement------------------------------ 167
(h) Deposits in Trust Fund; Adjustments------------------------- 168
(i) Purpose of Regulations Issued Under This Section------------- 168
(j) Result of State Failure To Make Payments Required Under
Agreement --------------------------------------------- 169
(k) Instrumentalities of Two or More States ------------- 169
(1) Delegation of Functions------------------------------------- 170
(min) Wisconsin Retirement Fund------------------------------- 171
(n) Modification of Agreement To Apply to Certain Positions No
Longer Covered by Retirement Systems---------------------- 171
(o) Modification of Agreement To Apply to Certain Employees of the
State of Utalh -------------- --------------- 171
(p) Modification of Agreement To Apply to Policemen and Firemen
in Certain States-------------------------------------- 172
(q) Time Limitation on Assessments ----------------------------- 173
(r) Time Limitation on Credits and Refunds---------------------- 175
(s) Review by Secretary of Assessment; Allowance or Disallowance
of Claim for Credit or Refunds----------------------------- 175
(t) Review by Court------------------------------------------- 176
(u) Positions Compensated Solely on a Fee Basis------------------ 176
SEc. 219. [Repealed.]
SEC. 220. Disability Provisions Inapplicable if Benefit Rights Impaired_ 177
SEC. 221. Disability Determinations--------------------------------- 177
(a) Disability Determination To Be Made by State Agency--------- 177
(b) Federal-State Agreements----------------------------------- 177
(c) Review by Secretary on His Own Motion of Disability Deter-
minations Made by State-------------- ---------------------1
(d) Individual Dissatisfied by Determination Entitled to Hearing- _. 178
(e) Reimbursement of States for Cost of Carrying Out Federal-State
Agreements -------------------------------------- 17
(f) Use of Payments by States_.-------- -------- 178
(g) Disability Determinations Made by Secretary------------------ 178
SEC. 222. Relihabilitation Services -------------------------- 179
(a) Referral for Rehabilitation Services------------------------- 179
(b1) l)eductimons on Account of Refusal To Accept Rehabilitation
Services -------------------------------------- 0---------1
(c) Period of Triani Work-------------------------------
(d) Costs of Rehalbilitation Services From Trust Funds----------- 1i1







Revised April 1978


19


SEC.




SEC.


Page
228. Disability Insurance Benefit Payments ----------------------- 183
(a) Disability Insurance Benefits------------------------------- 183
(b) Filing of Application----- ---------------------------------184
(c) Definitions of Insured Status and Waiting Period------___ 184
(d) Definition of Disability------------------------------------ 185
224. Reduction of Benefits Based on Disability on Account of Re-
ceipt of Workmen's Compensation------------------------- 186
(a) Computation of Reduction---------------------------------- 186
(b) Benefit Payable on Other Than a Monthly Basis-------------- 187
(c) Application When Other Reduction or Deduction Under this
Title Applicable------------- --------------------------- 188
(d) No Reduction if Workmen's Compensation Benefit Reduced
Because of Receipt of Title. II Benefits-------------------- 188
(e) Certification by Individual as to Award or Possibility of Award
of Workmen's Compensation Benefits---------------------- 188
(f) Redetermination of Reduction------------------------------- 188
(g) Reduction of Auxiliary Benefits Before Reduction of Disability
Insurance Benefit-------------------------------------- 189
225. Suspension of Benefits Based on Disability------------------ 189
226. Entitlement to Hospital Insurance Benefits------------------ 190
(a) Requirements for Entitlement-Individual over 65------------ 190
(b) Requirements for Entitlement-Individual under 65---------- 190
(c) Limitations-Deemed Entitlement---------------------------- 190
(d) Qualified Railroad Retirement Beneficiary-Definition--------- 191
(e) Chronic Renal Disease Considered to Constitute Disability------ 191
(f) Medicare Eligibility on Basis of Chronic Kidney Failure------- 192
(g) Secretary's Authority to Limit Reimbursement--------------- 192
(h) Widows' and Widowers' Hospital Benefits------------------- 192
(i) Uninsured Individuals------------------------------------- 193
227. Transitional Insured Status------------------------------- 193
(a) Benefit Rate---------------------------------------------- 193
(b) Widow's Benefits-Individual Deceased Prior to Becoming
Eligible Under Transitional Insured Status Provisions------ 193
(c) Widow's Benefits-Individual Deceased After Becoming Eligible
Under Transitional Insured Status Provisions-------------- 193
228. Benefits at Age 72 for Certain Uninsured Individuals-------- 194
(a) Eligibility ------------------------------------------------ 194
(b) Benefit Amount------------------------------------------- 194
(c) Reduction for Governmental Pension System Benefits--------- 195
(d) Suspension for Months in Which Cash Payments Are Mlade
Under Public Assistance-------------- ------------------- 196
(e) Suspension Where Individual Is Residing Outside the United
States -------------------------------------------------196
(f) Treatment as Monthly Insurance Benefits-------------------- 197
(g) Annual Reimbursement of Federal Old-Age and Survivors
Insurance Trust Fund------------------ ----------------- 197
(h) Definitions -------- ---------------------------------- 197
229. Benefits in Case of Members of the Uniformed Services------- 198
(a) Deemed Wage Credits for Service after December 1967-------- 198
(b) Appropriations to Cover Wage Credits----------------------- 198
230. Adjustment of the Contribution and Benefit Base------------ 198
(a) Publication in the Federal Register-------------------------- 198
(b) The amount of the contribution and benefit base-------------- 199
(c) Interim contribution and benefit base---------------------- 199
231. Benefits in Case of Certain Individuals Interned During World
War II--------------------------------------------- 199-A
(a) Definition of Internee ---------------------------------- 199-A
(b) Wages --------------------------------------------------200
(e) Appropriations --------------------------------------------201
232. Processing of tax data------------------------------------ 201
233. International Agreements---------------------------------- 202
(a) Purpose of Agreement----------- -------------------------202
(b) Definitions -----------------------------------------------202
(c) Crediting Periods of Coverage; Conditions of Payment of
Benefits ----------------------------------------------- 202
(d) Regulations -------------------------------------------202-B
(e) Reports to Congress; Effective Date of Agreements ---------- 202-B


SEC.
SEC.








SEC.


SEC.


SEC.


SEC.



SEC.




SEC.
SEC.






Sec. 201(a) 20

Federal Old-Age and Survivors Insurance Trust Fund and
Federal Disability Insurance Trust Fund
Section 201. (a) There is hereby created on the books of the Treas-
ury of the United States a trust fund to be known as the "Federal
Old-Age and Survivors Insurance Trust Fund". The Federal Old-Age
and Survivors Insurance Trust Fund shall consist of the securities
held by the Secretary of the Treasury for the Old-Age Reserve Ac-
count and the amount standing to the credit of the Old-Age Reserve
Account on the books of the Treasury on January 1, 1940, which se-
curities and amount the Secretary of the Treasury is authorized and
directed to transfer to the Federal Old-Age and Survivors Insurance
Trust Fund, and, in addition, such gifts and bequests as may be made
as provided in subsection (i)(1), and such amounts as may be ap-
propriated to, or deposited in, the Federal Old-Age and Survivors In-
surance Trust Fund as hereinafter provided. There is hereby appro-
priated to the Federal Old-Age and Survivors Insurance Trust Fund
for the fiscal year ending June 30, 1941, and for each fiscal year there-
after, out of any moneys in the Treasury not otherwise appropriated,
amounts equivalent to 100 per centum of-
(1) the taxes (including interest, penalties, and additions to
the taxes) received under subchapter A of chapter 9 of the In-
ternal Revenue Code of 1939 (and covered into the Treasury)
which are deposited into the Treasury by collectors of internal
revenue before January 1, 1951; and
(2) the taxes certified each month by the Commissioner of
Internal Revenue as taxes received under subchapter A of chapter
9 of such Code which are deposited into the Treasury by collectors
of internal revenue after December 31, 1950, and before January
1, 1953, with respect to assessments of such taxes made before
January 1, 1951; and
(3) the taxes imposed by subchapter A of chapter 9 of such
Code with respect to wages (as defined in section 1426 of such
Code), and by chapter 21 (other than sections 3101(b) and 3111
(b)) of the Internal Revenue Code of 1954 with respect to wages
(as defined in section 3121 of such Code) reported to the Com-
missioier of Internal Revenue pursuant to section 1420(c) of the
Internal Revenue Code of 1939 after December 31, 195o0, or to
the Secretary of tlhe Treasury or lhis delegates pursuant to sub-
title F of tlhe Internal Revenue Code of 1954 after I)ecember 31,
1954, as determined by tihe Secretary of the Treasury by apply-
ing tihe applicable rates of taix under such subchapter or chapter
21 (other than sections 3101(b) and 3111(b)) to such wages,
which wages shall be certified by the Secretary of Health, Eduica-
tion, and Welfare on the basis of tihe records of wages established






Sec. 201(b)


and maintained by such Secretary in accordance with such re-
ports, less the amounts specified in clause (1) of subsection (b) of
this section; and
(4) the taxes imposed by subchapter E of chapter 1 of the
Internal Revenue Code of 1939, with respect to self-employment
income (as defined in section 481 of such Code), and by chapter
2 (other than section 1401(b)) of the Internal Revenue Code of
1954 with respect to self-employment income (as defined in section
1402 of such Code) reported to the Commissioner of Internal
Revenue on tax returns under such subchapter or to the Secretary
of the Treasury, or his delegate on tax returns under subtitle F
of such Code, as determined by the Secretary of the Treasury by
applying the applicable rate of tax under such subchapter or
chapter (other than section 1401(b)) to such self-employment
income, which self-employment income shall be certified by the
Secretary of Health, Education, and Welfare on the basis of the
records of self-employment income established and maintained by
the Secretary of Health, Education, and Welfare in accordance
with such returns, less the amounts specified in clause (2) of sub-
section (b) of this section.
The amounts appropriated by clauses (3) and (4) shall be transferred
from time to time from the general fund in the Treasury to the Fed-
eral Old-Age and Survivors Insurance Trust Fund, and the amounts
appropriated by clauses (1) and (2) of subsection (b) shall be trans-
ferred from time to time from the general fund in the Treasury to the
Federal Disability Insurance Trust Fund, such amounts to be deter-
mined on the basis of estimates by the Secretary of the Treasury of the
taxes, specified in clauses (3) and (4) of this subsection, paid to or de-
posited into the Treasury; and proper adjustments shall be made in
amounts subsequently transferred to the extent prior estimates were
in excess of or were less than the taxes specified in such clauses (3) and
(4) of this subsection.
(b) There is hereby created on the books of the Treasury of the
United States a trust fund to be known as the "Federal Disability In-
surance Trust Fund". The Federal Disability Insurance Trust Fund
shall consist of such gifts and bequests as may be made as provided in
subsection (i) (1), and of such amounts as may be appropriated to, or
deposited in, such fund as provided in this section. There is hereby
appropriated to the Federal Disability Insurance Trust Fund for the
fiscal year ending June 30, 1957, and for each fiscal year thereafter, out
of any moneys in the Treasury not otherwise appropriated, amounts
equivalent to 100 per centum of-
(1) (A) 1/2 of 1 per centum of the wages (as defined in section
3121 of the Internal Revenue Code of 1954) paid after Decem-






Sec. 201(b) 22 Revised April 1978

ber 31, 1956, and before January 1, 1966, and reported to the Sec-
retary of the Treasury or his delegate pursuant to subtitle F of
the Internal Revenue Code of 1954, (B) 0.70 of 1 per centum of
the wages (as so defined) paid after December 31, 1965, and be-
fore January 1, 1968, and so reported, and (C) 0.95 of 1 per
centum of the wages (as so defined) paid after December 31,
1967, and before January 1, 1970, and so reported, (D) 1.10 per
centum of the wages (as so defined) paid after December 31,
1969, and before January 1, 1973, and so reported, (E) 1.1 per
centum of the wages (as so defined) paid after December 31,
1972, and before January 1, 1974, and so reported, (F) 1.15 per
centum of the wages (as so defined) paid after December 31,1973,
and before January 1, 1978, and so reported, (G) 1.55 per centum
of the wages (as so defined) paid after December 31, 1977, and
before January 1, 1979, and so reported, (H) 1.50 per centum of
the wages (as so defined) paid after December 31,1978, and before
January 1, 1981, and so reported, (I) 1.65 per centum of the wages
(as so defined) paid'after December 31, 1980, and before Janu-
ary 1, 1985, and so reported, (J) 1.90 per centum of the wages
(as so defined) paid after December 31, 1984, and before Janu-
ary 1, 1990, and so reported, and (K) 2.20 per centum of the wages
(as so defined) paid after December 31, 1989, and so reported.
which wages shall be certified by the Secretary of Health, Educa-
tion, and Welfare on the basis of the records of wages established
and maintained by such Secretary in accordance with such
reports; and 1
(2) (A) 3/ of 1 per centum of the amount of self-employment
income (as defined in section 1402 of the Internal Revenue Code
of 1954) reported to the Secretary of the Treasury or his delegate
on tax returns under subtitle F of the Internal Revenue Code of
1954 for any taxable year beginning after December 31, 1956, and
before January 1, 1966, (B) and 0.525 of 1 per centum of the
amount of self-employment income (as so defined) so reported for
any taxable year beginning after December 31, 1965, and before
January 1, 1968, and (C) 0.7125 of 1 per centum of the amount of
self-employment income (as so defined) so reported for any tax-
able year beginning after December 31, 1967, and 'before Janu-
ary 1, 1970, (D) 0.825 of 1 per centum of the amount of self-
employment income (as so defined) so reported for any taxable
year beginning after December 31, 1969, and before January 1,
1973, (E) 0.795 of 1 per centum of the amount of self-employ-
nilent income (as so defined) so reported for any taxable year
beginning after December 31, 1972, and before January 1, 1974,
I' nrnagripli (1) w ias amiinded by section 102(a)(1) of Public Law 95-216. The period
at the zend of clause (K) is a technical error and should be a comma.




//
Revised April 1978 23 Sec. 201(c)

(F) 0.815 of 1 per centum of the amount of self-employment
income (as so defined) as reported for any taxable year beginning
after December 31, 1973, and before January 1, 1978, (G) 1.090
per centum of the amount of self-employment income (as so
defined) so reported for any taxable year beginning after Decem-
ber 31, 1977, and before January 1, 1979, (H) 1.0400 per centum
of the amount of self-employment income (as so defined) so re-
ported for any taxable year beginning after December 31, 1978,
and before January 1, 1981, (I) 1.2375 per centum of the amount
of self-employment income (as so defined) so reported for any
taxable year beginning after December 31, 1980, and before Jan-
uary 1, 1985, (J) 1.4250 per centum of the amount of self-employ-
ment income (as so defined) so reported for any taxable year be-
ginning after December 31, 1984, and before January 1, 1990, and
(K) 1.650 per centum of the amount of self-employment income
(as so defined) so reported for any taxable year beginning after
December 31, 1989, which self-employment income shall be cer-
tified by the Secretary of Health, Education, and Welfare on the
basis of the records of self-employment income established and
maintained by the Secretary of Health, Education, and Welfare
in accordance with such returns.'
(c) With respect to the Federal Old-Age and Survivors Insurance
Trust Fund and the Federal Disability Insurance Trust Fund (here-
inafter in this title called the "Trust Funds") there is hereby created
a body to be known as the Board of Trustees of the Trust Funds (here-
inafter in this title called the "Board of Trustees") which Board of
Trustees shall be composed of the Secretary of the Treasury, the Sec-
retary of Labor, and the Secretary of Health, Education, and Welfare,
all ex officio. The Secretary of the Treasury shall be the Managing
Trustee of the Board of Trustees (hereinafter in this title called the
"Managing Trustee"). The Commissioner of Social Security shall
serve as Secretary of the Board of Trustees. Such Board of Trustees
shall meet not less frequently than once each calendar year. It shall be
the duty of the Board of Trustees to-
(1) Hold the Trust Funds;
(2) Report to the Congress not later than the first day of April
of each year on the operation and status of the Trust Funds dur-
ing the preceding fiscal year and on their expected operation and
status during the next ensuing five fiscal years;
(3) Report immediately to the Congress whenever the Board
of Trustees is of the opinion that the amount of either of the Trust
Funds is unduly small;
1 Paragraph (2) was amended by sec. 102(a) (2) of Public Law 95-216.






Revised April 1978


(4) Recommend improvements in administrative procedures
and policies designed to effectuate the proper coordination of the
old-age and survivors insurance and Federal-State unemploy-
ment compensation program; and
(5) Review the general policies followed in managing the Trust
Funds, and recommend changes in such policies, including neces-
sary changes in the provisions of the law which govern the way in
which the Trust Funds are to be managed.
The report provided for in paragraph (2) above shall include a state-
ment of the assets of, and the disbursements made from. the Trust


21-746 0- 78 3


23-A


Sec. 201 (c)






Sec. 201(c) 24

Funds during the preceding fiscal year, an estimate of the expected
future income to, and disbursements to be made from, the Trust Funds
during each of the next ensuing five fiscal years, and a statement of the
actuarial status of the Trust Funds. Such report shall also include an
actuarial analysis of the benefit disbursements made from the Federal
Old-Age and Survivors Insurance Trust Fund with respect to disabled
beneficiaries. Such report shall be printed as a House document of the
session of the Congress to which the report is made.
(d) It shliall be the duty of the Managing Trustee to invest such
portion of the Trust Funds as is not, in his judgment, required to meet
current withdrawals. Such investments may be made only in interest-
bearing obligations of the United States or in obligations guaranteed
as to both principal and interest by the United States. For such pur-
pose such obligations may be acquired (1) on original issue at the issue
price, or (2) by purchase of outstanding obligations at the market
price. The purposes for which obligations of the United States may be
issued under the Second Liberty Bond Act, as amended, are hereby
extended to authorize the issuance at par of public-debt obligations for
purchase by the Trust Funds. Such obligations issued for purchase by
the Trust Funds shall have maturities fixed with due regard for the
needs of the Trust Funds and shall bear interest at a rate equal to the
average market yield (computed by the Managing Trustee on the basis
of market quotations as of the end of the calendar month next preced-
ing the date of such issue) on all marketable interest-bearing obliga-
tions of the United States then forming a part of the public debt
which are not due or callable until after the expiration of four years
from the end of such calendar month; except that where such average
market yield is not a multiple of one-eighth of 1 per centum, the rate
of interest of such obligations shall be the multiple of one-eighth of
1 per centum nearest such market yield. The Managing Trustee may
purchase other interest-bearing obligations of the United States or
obligations guaranteed as to both principal and interest by the United
States, on original issue or at the market price, only where he deter-
mines that the purchase of such other obligations is in the public
interest.
(e) Any obligation acquired by the Trust Funds (except public-
debt obligations issued exclusively to the Trust Funds) may be sold
by the Managing Trustee at the market price, and such public-debt
obligations may be redeemed at par plus accrued interest.
(f) Tlie interest on, and the proceeds from the sale or redemption
of, any obligations held in the Federal Old-Age and Survivors Insur-
ance Trust Fund and the Federal Disability Insurance Trust Fund
shliall be credited to and form a part of the Federal Old-Age and
Survivors Insurance Trust Fund and the Disability Insurance Trust
Fund, respectively.






25


Sec. 201(g)


(g) (1) (A) The Managing Trustee of the Trust Funds (which for
purposes of this paragraph shall include also the Federal Hospital
Insurance Trust Fund and the Federal Supplementary Medical Insur-
ance Trust Fund established by title XVIII) is directed to pay from
the Trust Funds into the Treasury-
(i) the amounts estimated by him and the Secretary of Health,
Education, and Welfare which will be expended, out of moneys
appropriated from the general fund in the Treasury, during a
three-month period by the Department of Health, Education, and
Welfare and the Treasury Department for the administration of
titles II, XVI, and XVIII of this Act and subchapter E of chap-
ter 1 and subchapter A of chapter 9 of the Internal Revenue Code
of 1939, and chapters 2 and 21 of the Internal Revenue Code of
1954, less
(ii) the amounts estimated (pursuant to the method prescribed
by the Board of Trustees under paragraph (4) of this subsection)
by the Secretary of Health. Education, and Welfare which will
be expended, out of moneys made available for expenditures from
the Trust Funds, during such three-month period to cover the cost
of carrying out the functions of the Department of Health, Educa-
tion, and Welfare, specified in section 232, which relate to the ad-
ministration of provisions of the Internal Revenue Code of 1954
other than those referred to in clause (i).
Such payments shall be carried into the Treasury as the net amount of
repayments due the general fund account for reimbursement of ex-
penses incurred in connection with the administration of titles II, XVI,
and XVIII of this Act and subchapter E of chapter 1 and subchapter
A of chapter 9 of the Internal Revenue Code of 1939, and chapters
2 and 21 of the Internal Revenue Code of 1954. A final account-
ing of such payments for any fiscal year shall be made at the earliest
practicable date after the close thereof. There are hereby authorized
to be made available for expenditure, out of any or all of the Trust
Funds, such amounts as the Congress may deem appropriate to pay the
costs of the part of the administration of this title, title XVI, and title
XVIII for which the Secretary of Health, Education, and Welfare is
responsible and of carrying out the functions of the Department of
Health, Education, and Welfare, specified in section 232, which relate
to the administration of provisions of the Internal Revenue Code of
1954 other than those referred to in clause (i) of the first sentence of
this subparagraph.
(B) After the close of each fiscal year the Secretary of Health,
Education, and Welfare shall determine the portion of the costs,
incurred during such fiscal year, of administration of this title, title
XVI, and title XVIII and of carrying out the functions of the De-






Sec. 201(g)


apartment of Health, Education, and Welfare, specified in section 232,
which relate to the administration of provisions of the Internal Reve-
nue Code of 1954 (other than those referred to in clauses (i) of the
first sentence of subparagraph (A)), which should have been borne
by the general fund in the Treasury and the portion of such costs
which should have been borne by each of the Trust Funds; except
that the determination of the amounts to be borne by the general
fund in the Treasury with respect to expenditures incurred in carry-
ing out such functions specified in section 232 shall be made pursuant
to the method prescribed by the Board of Trustees under paragraph
(4) of this subsection. After such determination has been made, the
Secretary of Health, Education, and Welfare shall certify to the
Managing Trustee the amounts, if any, which should be transfer-
red from one to any of the other of such Trust Funds and the amounts,
if any, which should be transferred between the Trust Funds (or
one of the Trust Funds) and the general fund in the Treasury, in
order to insure that each of the Trust Funds and the general fund in
the Treasury have borne their proper share of the costs, incurred
during such fiscal year, for the part of the administration of this
title, title XVI, and title XVIII for which the Secretary of Health,
Education, and Welfare is responsible and of carrying out the func-
tions of the Department of Health, Educaton, and Welfare, specified
in section 232, which relate to the administration of provisions of the
Internal Revenue Code of 1954 (other than those referred to in clause
(i) of the first sentence of subparagraph (A)). The Managing Trus-
tee is authorized and directed to transfer any such amounts in accord-
ance with any certification so made."
(2) The Managing Trustee is directed to pay from time to time
from the Trust Funds into the Treasury the amount estimated by
him as taxes imposed under section 3101(a) which are subject
to refliiiid under section 6413(c) of the Internal Revenue Code of
1954 with respect, to wages (as defined in section 1426 of the Internal
RI tven1ue Code of 1939 and section 3121 of the Internal Revenue Code
of 1951) paid after December 31, 1950. Such taxes shall be deter-
IIi Iled, on th le basis of the records of wages established and maintained
by the Secretary of IHealth, Education, and Welfare in accordance
wit i thle wa,'es reported to the Conimmissioner of Internal Rlevenue
purlSaItI to se't ion 1420(c) of the Internal Revenue Code of 1939 and
to tlie S,'r Of (liet Inter'nal lReveiue Code of 1954, and the Secretary shall furnish
the Maiagiig 'riistee such information as may be required by the
l'ristee f'or suich purpose. The payments by the Managing Trustee
sliall be. covered into the Treasury as repayments to the account for
i SXiih' ,,l,, () ( V) ) wNas i im'na ld by SP.tlonTI 8(( ) of 'Public Law 94-202. See also section
8(f) of Public Law 'j4-202 which appears in this document on page 773.


26






Sec. 201(i)


refunding internal revenue collections. Payments pursuant to the first
sentence of this paragraph shall be made from the Federal Old-Age
and Survivors Insurance Trust Fund and. the Federal Disability In-
surance Trust Fund in the ratio in which amounts were appropriated
to such Trust Funds under clause (3) of subsection (a) of this section
and clause (1) of subsection (b) of this section.
(3) Repayments made under paragraph (1) or (2) shall not be
available for expenditures but shall be carried to the surplus fund of
the Treasury. If it subsequently appears that the estimates under
either such paragraph in any particular period were too high or too
low, appropriate adjustments shall be made by the Managing Trustee
in future payments.
(4) The Board of Trustees shall prescribe before January 1,1981,
the method of determining the costs which should be borne by the gen-
eral fund in the Treasury of carrying out the functions of the Depart-
ment of Health, Education, and Welfare, specified in section 232,
which relate to the administration of provisions of the Internal
Revenue Code of 1954 (other than those referred to in clause (i) of
the first sentence of paragraph (1)(A)). If at any time or times
thereafter the Boards of Trustees of such Trust Fund deem such
action advisable they may modify the method so determined.1
(hi) Benefit payments required to be made under section 223, and
benefit payments required to be made under subsection (b), (c), or
(d), of section 202 to individuals entitled to benefits on the basis
of the wages and self-employment income of an individual entitled to
disability insurance benefits, shall be made only from the Federal Dis-
ability Insurance Trust Fund. All other benefit payments required
to be made under thllis title (other than section 226) shall be made only
from tihe Federal Old-Age and Survivors Insurance Trust Fund.
(i) (1) The Managing Trustee of the Federal Old-Age and Survi-
vors Insurance Trust Fund, the Federal Disability Insurance Trust
Fund, the Federal Hospital Insurance Trust Fund, and the Federal
Supplementary Medical Insurance Trust Fund is authorized to ac-
cept on behalf of the United States money gifts and bequests made
unconditionally to any one or more of such Trust Funds or to the
Department of Health, Education, and Welfare, or any part or officer
thereof, for the benefit of any of such Funds or any activity financed
through such Funds.
(2) Any such gift accepted pursuant to the authority granted in
paragraph (1) of this subsection shall be deposited in-
(A) tihe specific trust fund designated by the donor or
(B) if the donor has not so designated, the Federal Old-Age
and Survivors Insurance Trust Fund.
2 Paragraph (4) was added by section 8 of Public Law 94-202. See also section 8(e)
of Public Law 94-202 which is reprinted in this document on page 773.





A
Sec. 202(a) 28 Revised April 1978

Old-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 the age of 65,
shall be entitled to an old-age insurance benefit for each month, be-
ginning with the first month after August 1950 in which such indi-
vidual becomes so entitled to such insurance benefits and endingor with
the month preceding the month in which he dies. Except as provided
in subsection (q) and subsection (w), such individuaPl's old-age insur-
ance 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) has attained age 62 or (in the case of a wife) hag in her
care (individually or jointly with such individual) at the time of
filing such application a child entitled to a child's insurance bene-
fit 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 bene-
fit for each month beginning with the first month in which she becomes
so entitled to sucli insurance benefits and ending withthe month pre-
ceding the first 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
lias not attained age 62, or (ii) slhe has attained age 62 but
ha. inot been illirried to such individual for a period of 10 years
ilinhediately before thie (late the, divorce became effective,1
'.Suli,:Irigralpli (G) wn; amiiended by see. 337(b) of Public Law 95-216 effective as
sp,.lfiviil In .s<-. :;37(c) which appears in this document on p. 811.






Revised April 1978


(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 indi-
vidual, or
(K) such individual is not entitled to disability insurance bene-
fits and is not entitled to old-age insurance benefits.
(2) Except as provided in subsection (q) and paragraph (4) of this
subsection, 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.1
(3) In the case of any divorced wife who marries-
(A) an individual entitled to benefits under subsection (f) 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 sub-
section (s)), not be terminated by reason of such marriage; except
that, in the case of such a marriage to an individual entitled to bene-
fits under subsection (d), the preceding provisions of this paragraph
shall not apply with respect to benefits for months after the last month
for which such individual is entitled to such benefits under subsection
(d) unless he ceases to be so entitled by reason of his death.
(4) (A) The amount of a wife's insurance benefit for each month
as determined after application of the provisions of subsections (q)
and (k) shall be reduced (but not below zero) by an amount equal to
the amount of any monthly periodic benefit payable to such wife (or
divorced wife) for such month which is based upon her earnings while
in the service of the Federal Government or any State (or political
subdivision thereof, as defined in section 218 (b) (2)) if, on the last
day she was employed by such entity, such service did not constitute
"employment" as defined in section 210.
(B) 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 Secretary) and
such equivalent monthly benefit shall constitute a monthly periodic
1 Paragraph (2) was amended by sec. 334(a) of Public Law 95-216. effective as specified
in sec. 334(f) and subject to the exception specified in sec. 334(g). These subsections are
printed in this document on pages 809-810.


Sec. 202(b)






Revised April 1978


benefit for purposes of subparagraph (A). For purposes of this sub-
paragraph, the term "periodic benefit" includes a benefit payable in a
lump sum if it is a commutation of, or a substitute for, periodic pay-
ments.1
Husband's Insurance Benefits
(c) (1) The husband (as defined in section 216(f)) of an individual
entitled to old-age or disability insurance benefits, if such husband-
(A) has filed application for husband's insurance benefits,
(B) has attained age 62, and
(C) 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 pri-
mary insurance amount of his wife,
shall be entitled to a husband's insurance benefit for each month,
beginning with the first month after August 1950 in which he be-
comes so entitled to such insurance benefits and ending with the month
preceding the month in which any of the following occurs: he dies,
his wife dies. they are divorced, or 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 his wife, or his wife is not entitled to disability insurance benefits
and is not entitled to old-age insurance benefits.'
(2) (A) Tle amount of a husband's insurance benefit for each month
as determined after application of the provisions of subsections (q)
and (k) shall be reduced (but not below zero) by an amount equal to
the amount of any monthly periodic benefit payable to such husband
for such month which is based upon his earnings while in the service
of the Federal Government or any State (or political subdivision
thereof, as defined in section 218(b) (2)) if, on the last day he was
employed by such entity, such service did not constitute "employment'"
a? defined in section 210.
(B) 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
e(qlivkalenlt to a monthly benefit (as determined by the Secretary) and
such e(qiivalenti miomitlily benefit shall constitute a monthly periodic
benefit for purposes of subparagraph (A). For purposes of this sub-
pa trlapli, the term "periodic benefit." includes a benefit payable in a
lump sum if it is a commutation of, or a substitute for, periodic
paymnenlts.

SP'iirnagrapli (4) wiis ndded by sec. 334 (a) of Public Law 95-216, effective ns specified in
see. :'.41ft ;rin siiliji-t to the exception specified in sec. 334(g). These subsections are
jiriited In this document on pages 809-810.


Sec. 202(b)






Revised April 1978


(3) Except as provided in subsection (q) and paragraph (2) of this
subsection, such husband's insurance benefit for each month shall be
equal to one-half of the primary insurance amount of his wife for
such month.1
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 student
and lih.d not attained the age of 22, 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
SSubsection (c) was amended (in paragraphs (1), (2), and (3)) by sec. 334(b) of
Public Law 95-216 effective as specified in sec. 334(f) and subject to the exception specli-
fled in sec. 334(g). These subsections are printed in this document on pages 809-810.


Sec. 202(d)


30-A






Sec. 202(d)


(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, begin-
ning with the first month after August 1950 in which such child be-
comes so entitled to such insurance benefits and ending with the month
preceding which ever 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 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 hlie is a full-
time student, or
(ii) the month in which he attains the age of 22,
but only if he was not under a disability (as so defined) in such
earlier month; or
(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 dis-
ability (as so defined) at such time but was under a disability
(as so defined) at or prior to the time he attained (or would at-
tain) the age of 22, the third month following the month in which
he ceases to be under such disability or (if later) the earlier of-
(i) the first month during no part of which he is a full-
time student, or
(ii) the month in which he attains the age of 22,
but only if he was not under a disability (as so defined) in such
earlier month.
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 in-
surance benefits or unless he dies in such month. No payment under
this paragraph may be made to a child who would not meet the defini-
tion 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 indi-
vidual 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






Sec. 202(d) 32

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 in-
dividual.
(3) A child shall be deemed dependent upon his father or adopting
father or his mother or adopting mother at the time specified in para-
graph (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 step-
mother at the time specified in paragraph (1) (C) if, at such time,
the child was living with or was receiving at least one-half of his sup-
port 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),
(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, not-
withstanding the provisions of paragraph (1) but subject to subsec-
tion (s), not be terminated by reason of such marriage; except that,
in the case of such a marriage to a male individual entitled to benefits
under section 223(a) or this subsection, the preceding provisions of
this paragraph shall not apply with respect to benefits for months
after the last month for which such individual is entitled to such bene-
fits under section 223(a) or this subsection unless (i) hlie ceases to be
so entitled by reason of his death, or (ii) in the case of an individual
who was. entitled to benefits under section 223(a), he is entitled, for
the month following such last month, to benefits under subsection (a)
of this section.
(6) A child whose entitlement to child's insurance benefits on the
basis of tihe wages and self-employment income of an insured indi-
vidlual terminated with tlhe month preceding the month in which such
-liildl attained the age of 18, or with a subsequent monthly, may again
becomee enItitlel to suclh 1)nefits (provided no event specified in para-
graph)l (1)(D) lhas occurred) beginning with the first month there-
after in which he-






Sec. 202(d)


(A) (i) is a full-time student or is under a disability (as defined
in section 223(d)), and (ii) had not attained the age of 22, or
(B) is under a disability (as so defined) which began 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,
but only if he has filed application for such reentitlement. Such reen-
titlement shall end with the month preceding whichever of the follow-
ing 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 student, or (ii) the month in which he attains the
age of 22, 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 third month
following the month in which he ceases to be under such dis-
ability or (if later) the earlier of-
(i) the first month during no part of which he is a full-
time student, or
(ii) the month in which he attains the age of 22.
(7) For the purposes of this subsection-
(A) A "full-time student" is an individual who is in full-time
attendance as a student at an educational institution, as deter-
mined by the Secretary (in accordance with regulations pre-
scribed by him) in the light of the standards and practices of the
institutions involved, except that no individual shall be considered
a "full-time student" if he is paid by his employer while attend-
ing an educational institution at the request, or pursuant to a re-
quirement, of his employer.
(B) Except to the extent provided in such regulations, an
individual shall be deemed to be a full-time student during any
period of nonattendance at an educational institution 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 Secre-
tary that he intends to continue to be in full-time attendance at
an educational institution 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 educational institution immedi-
ately following such period.
(C) An "educational institution" is (i) a school or college or
university operated or directly supported by the United States,
or by any State or local government or political subdivision there-






Sec. 202(d) 34

of, or (ii) a school or college or university which has been ap-
proved by a State or accredited by a State-recognized or
nationally-recognized accrediting agency or body, or (iii) a non-
accredited school or college or university whose credits are ac-
cepted, on transfer, by not less than three institutions which are
so accredited, for credit on the same basis as if transferred from
an institution so accredited.
(D) A child who attains age 22 at a time when he is a full-time
student (as defined in subparagraph (A) of this paragraph and
without the application of subparagraph (B) of such paragraph)
but has not (at such time) completed the requirements for, or
received, a degree from a four-year college or university 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 fol-
lowing the end of the quarter or semester in which he is enrolled
at such time (or, if the educational institution (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, which-
ever 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 hlie was entitled to old-age insurance
benefits,
a child of such individual adopted after such individual became en-
titled 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 (in-
cluding such a child wlho 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,
(ii) was living with such individual in the United States and
receiving at least one-half of his support from such individual
(I) if lie is an individual referred to in subparagraph (A), for






Sec. 202(d)


the year immediately before the month in which such individual
became entitled to old-age insurance benefits or, if such individual
had a period of disability which continued until he had become
entitled to old-age insurance benefits, the month in which such
period of disability began, or (II) if he is an individual referred
to in subparagraph (B), for the year immediately before the
month in which began the period of disability of such individual
which still exists at the time of adoption (or, if such child was
adopted by such individual after such individual attained age 65,
the period of disability of such individual which existed in the
month preceding the month in which he attained age 65), or the
month in which such individual became entitled to disability
insurance benefit, or (III) if he is an individual referred to in
either subparagraph (A) or subparagraph (B) and the child is
the grandchild of such individual or his or her spouse, for the year
immediately before the month in which such child files his or her
application for child's insurance benefits, and
(iii) had not attained the age of 18 before he began living
with such individual.
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 indi-
vidual for substantially all of the period which begins on the date of
birth of such child.
(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 indi-
vidual under clause (1) or (2) of suclih first sentence shall be deemed
not to be dependent on such individual at the time specified in sub-
paragraplh (1)(C) of this subsection unless (i) such child was liv-
ing with such individual in the United States and receiving at least
one-half of his support from such individual (I) for the year imme-
diately 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 hlie 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 dur-
ing which such child must have been living with and receiving at least
one-half of his support from such individual, such child shall be






Sec. 202(d)


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 indi-
vidual for substantially all of the period which begins on the date of
such child's birth.
Widow's Insurance Benefits
(e) (1) The widow (as defined in section 216(c)) and every surviv-
ing divorced wife (as defined in section 216(d)) of an individual who
died a fully insured individual, if such widow or such surviving di-
vorced 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 sec-
tion 223(d)) which began before the end of the period specified
in paragraph (5),
(C) (i) has filed application for widow's insurance benefits, or
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 he died, and (I) has attained
age 65 or (II) is not entitled to benefits under subsection (a) or
section 223, or
(ii) was entitled, on the basis of such wages and self-employ-
ment income, to mother's insurance benefits for the month pre-
ceding the month in which she attained age 65, 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 pri-
mary insurance amount 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 (6)) in which she becomes so entitled to such
insurance benefits, or
(ii) the first month during all of which she is under a dis-
abilit v and in whiich 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 (5) and (II) after the month in
which a previous entitlement to such benefits on such basis
terminated,






Revised April 1978


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 insur-
ance amount of such deceased individual, or, if she became entitled to
such benefits before she attained age 60, the third month following the
month in which her disability ceases (unless she attains age 65 on or
before the last day of such third month).
(2) (A) Except as provided in subsection (q), paragraph (8) of this
subsection, and subparagraph (B) of this paragraph, such widow's
insurance benefit for each month shall be equal to the primary insur-
ance amount (as determined after application of the following sen-
tence) of such deceased individual. If such deceased individual was
(or upon application would have been) entitled to an old-age insur-
ance 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 insur-
ance amount, if less than the old-age insurance benefit (increased,
where applicable, under section 215(f) (5) or (6) 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
monthly 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).1
(B) If the deceased individual (on the basis of whose wages and
self-employment income a widow or surviving divorced wife is en-
titled 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 sur-
viving 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) or (6) were applied, where appli-
cable,, and 2
SSubparagraph (A) was amended by sec. 204(a), effective for months after May 1978
and by sees. 334(c)(1) and 336(a)(1) of Public Law 95-216. The amendment made by
see. 336(a)(1) is effective as specified in sec. 336(c) which is printed in this document on
page 811.
2 Subparagraph (B) (I) was amended by sec. 204(b) of Public Law 95-216. The double
comma is a technical error.


21-746 0 78 4


37


Sec. 202(e)






Sec. 202(e) 38 Revised April 1978

(ii) 821/2 percent of the primary insurance amount of such de-
ceased individual,
be reduced to the amount referred to in clause (i), or (if greater) the
amount referred to in clause (ii).
(3) If a widow, before attaining age 60, or a surviving divorced
wife, marries-
(A) an individual entitled to benefits under subsection (f) or
(h) of this section, or
(B) an individual who has attained the age of eighteen and is
entitled to benefits under subsection (d),
such widow's or surviving 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; except that, in the case of such a marriage to an individual
entitled to benefits under subsection (d), the preceding provisions of
this paragraph shall not apply with respect to benefits for months
after the last month for which such individual is entitled to such bene-
fits under subsection (d) unless he ceases to be so entitled by reason
of his death.1
(4) If a widow, after attaining age 60, marries, such marriage shall,
for purposes of paragraph (1), be deemed not to have occurred.2
(5) 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 in-
sured 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 in-
surance 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 in-
surance 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.
(6) The waiting period referred to in paragraph (1) (P), in the
case of any widow or surviving divorced wife, is the earliest period of
five consecutive calendar months-
1 Paragraph (3) was amended by sec. 336(a) (2) of Public Law 95-216 effective as spec-
ified in Hec. 336(c) which is printed in this document on p. 811.
2 Paragraph (4) was amended by sec. 336(b) (2) of Public Law 95-216 effective as spec-
ified in sPc. 336(c) which is printed in this document on p. 811. (In general, the amend-
ment is effective January 1979.)






Revised April 1978


(A) throughout which she has been under a disability, and
(B) which begins not earlier than with whichever of the fol-
lowing 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 (5) begins.
(7) In the case of an individual entitled to monthlly 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), includ-
ing for this purpose the increase provided effective for March 1974,
as though such redetermination had been made.
(8) (A) The amount of a widow's insurance benefit for each month
as determined (after application of the provisions of subsections (q)
and (k), paragraph (2) (B), and paragraph (4)) shall be reduced
(but not below zero) by an amount equal to the amount of any monthly
periodic benefit payable to such widow (or surviving divorced wife)
for such month which is based upon her earnings while in the service
of the Federal Government or any State (or any political subdivision
thereof, as defined in section 218(b) (2)) if, on the last day she was
employed by such entity, such service did not constitute "employment"
as defined in section 210.
(B) 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 equiva-
lent to a monthly benefit (as determined by the Secretary) and such
equivalent monthly benefit shall constitute a monthly periodic benefit
for purposes of subparagraph (A). For purposes of this subpara-
graph, the term "periodic benefit" includes a benefit payable in a
lump sum if it is a commutation of, or a substitute for, periodic
payments.1
Widower's Insurance Benefits
(f) (1) The widower (as defined in section 216(g)) of an individual
who died a fully insured individual, if such widower-
(A) has not remarried,
(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 (6),
1 Paragraph (8) was added by sec. 334(c) (2) of Public Law 95-216. effective as specified
In sec. 334(f) and subject to the exception specified in sec. 334(g). These subsections are
printed in this document on pp. 809-810.


39


Sec. 202(f)





Revised April 1978


(C) has filed application for widower's insurance benefits or
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 she died, and (I) has at-
tained age 65 or (II) is not entitled to benefits under subsection
(a) or section 223,
(D) is not entitled to old-age insurance benefits, or is entitled
to old-age insurance benefits each of which is less than the pri-
mary insurance amount of his deceased wife,
shall be entitled to a widower's insurance benefit for each month, be-
ginning 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 (7)) in which he becomes so entitled to such in-
surance benefits, or
(ii) the first month during all of which he is under a dis-
ability 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 (6) 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 of his deceased wife, or, if he became entitled to such benefits
before he attained age 60, the third month following the month
in which his disability ceases (unless he attains age 65 on or before
the last day of such third month).'
(2) (A) The amount of widower's insurance benefit for each
month (as determined after application of the provisions of subsec-
tions (k) and (q), paragraph (3)(B), and paragraph (5)) shall be
reduced (but not below zero) by an amount equal to the amount of
any monthly periodic benefit payable to such widower for such month
which is based upon his earnings while in the service of the Federal
Government or any State (or any political subdivision thereof, as
defined in section 218(b) (2)) if, on the last day he was employed by
1 Paragraph (1) was amended by sec. 334(d)(1) of Public Law 95-216.


Sec. 202(f)






Revised April 1978


such entity, such service did not constitute "employment" as defined in
section 210.
(B) 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 equiv-
alent to a monthly benefit (as determined by the Secretary) and such
equivalent monthly benefit shall constitute a monthly periodic benefit
for purposes of subparagraph (A). For purposes of this subpara-
graph, the term "periodic benefit" includes a benefit payable in a lump
sum if it is a commutation of, or a substitute for, periodic payments.1
(3) (A) Except as provided in subsection (q), paragraph (2), of
this subsection, and subparagraph (B) of this paragraph, such wid-
ower's insurance benefit for each month shall be equal to the primary
insurance amount (as determined after application of the following
sentence) of his deceased wife. 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) or (6) 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 (notwith-
standing 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 sub-
section (w).2
(B) If the deceased wife (on the basis of whose wages and self-
employment income a widower is entitled to widower's insurance bene-
fits 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 for
any month shall, if the amount of the widower's insurance benefit of
such widower (as determined under subparagraph (A) and after ap-
plication of subsection (q)) is greater than-
(i) the amount of the old-age insurance benefit to which such
deceased wife would have been entitled (after application of sub-
1 Paragraph (2) was amended by sec. 334(d) (2) of Public Law 95-216 effective as speci-
fied in sec. 334(f) and subject to the exception specified in sec. 334(g). These subsections
are printed in this document on pp. 809-810.
2 Paragraph (3) (A) was amended by sec. 204(c) of Public Law 95-216 effective for
months after May 1978. Paragraph (3) (A) was also amended by sec. 334(d)(3) and sec.
336(b)(1) of Public Law 95-216.


Sec. 202(f)






Revised April 1978


section (q)) for such month if such wife were still living and
section 215(f) (5) or (6) were applied, where applicable,; and
(ii) 821/2 percent of the primary insurance amount of such de-
ceased wife;
be reduced to the amount referred to in clause (i), or (if greater) the
amount referred to in clause (ii).1
(4) If a widower, before attaining age 60, remarries-
(A) an individual entitled to benefits under subsection (b),
(e), (g),or (h),or
(B) an individual who has attained the age of eighteen and is
entitled to benefits under subsection (d),
such widower's entitlement to benefits under this subsection shall,
notwithstanding the provisions of paragraph (1) but subject to sub-
section (s), not be terminated by reason of such marriage.2
(5) If a widower, after attaining the age of 60, marries, such
marriage shall, for purposes of paragraph (1), be deemed not to
have occurred.3
(6) The period referred to in paragraph (1)(B)(ii), in the case
of any widower, is the period beginning with whichever of the follow-
ing is the latest:
(A) the month in which occurred the death of the fully in-
sured individual referred to in paragraph (1) on whose wages
and self-employment income his benefits are or would be based, or
(B) the month in which a previous entitlement to widower's
insurance benefits on the basis of such wages and self-employ-
ment 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.
(7) The waiting period referred to in paragraph (1)(F), in the
case of any widower, is the earliest period of five consecutive calendar
months-
(A) throughout which he has been under a disability, and
(B) which begins not earlier than with whichever of the fol-
lowing 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 (6) begins.4
(8) In the case of an individual entitled to monthly insurance
benefits payable under this section for any month prior to January
1 Paragraph (3) was amended by sec. 204(d) of Public Law 95-216 effective for months
after May 1978. The comma preceding the semicolon is a technical error.
2 Paragraph (4) was amended by sec. 336(b)(2) of Public Law 95-216.
3' Paragraph ('5) was amended by sec. 336(b)(3) of Public Law 95-216 effective as
specified in sec. .1336(c) which is printed In this document on p. 811.
SParagraph (7) was amended by sec. 334(d) (4) (A) of Public Law 95-216.


Sec. 202 (f)





Revised April 1978


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), includ-
ing for this purpose the increase provided effective for March 1974,
as though such redetermination had been made.
Mother's Insurance Benefits
(g) (1) The widow and every surviving divorced mother (as de-
fined in section 216(d)) of an individual who died a fully or currently
insured individual, if such widow or surviving divorced mother-
(A) is not married,
(B) is not entitled to a widow'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 insurance benefits, or was
entitled to wife's insurance benefits on the basis of the wages and
self-employment income of such individual for the month pre-
ceding the month in which he died,
(E) at the time of filing such application has in her care a.child
of such individual entitled to a child's insurance benefit, and
(F) in the case of a surviving divorced mother-
(i) the child referred to in subparagraph (E) is her son,
daughter, or legally adopted child, and
(ii) the benefits referred to in such subparagraph are pay-
able on the basis of such individual's wages and self-employ-
ment income,
shall (subject to subsection (s)) be entitled to a mother's insurance
benefit for each month, beginning with the first month after August
1950 in which 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 widow or surviving divorced mother be-
comes entitled to an old-age insurance benefit equal to or exceeding
three-fourths of the primary insurance amount of such deceased in-
dividual, she becomes entitled to a widow's insurance benefit, she re-
marries, or she dies. Entitlement to such benefits shall also end, in the
case of a surviving divorced mother, with the month immediately pre-
ceding the first month in which no son, daughter, or legally adopted
child of such surviving divorced mother is entitled to a child's insur-
ance benefit on the basis of the wages and self-employment income
of such deceased individual.


Sec. 202(g)






Revised April 1978


(2) Except as provided in paragraph (4) of this subsection, such
mother's insurance benefit for each month shall be equal to three-
fourths of the primary insurance amount of such deceased individual.1
(3) In the case of a widow or surviving divorced mother who mar-
ries--
(A) an individual entitled to benefits under subsection (a),
(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 widow or surviving divorced mother to benefits
under this subsection shall, notwithstanding the provisions of para-
graph (1) but subject to subsection (s), not be terminated by reason
of such marriage; except that, in the case of such a marriage to an
individual entitled to benefits under section 223 (a) or subsection (d)
of this section, the preceding provisions of this paragraph shall not
apply with respect to benefits for months after the last. month for
which such individual is entitled to such benefits under section 223 (a)
or subsection (d) of this section unless (i) he ceases to be so entitled
by reason of his death, or (ii) in the case of an individual who was
entitled to benefits under section 223(a), he is entitled, for the month
following such last month, to benefits under subsection (a) of this
section.
(4) (A) The amount of a mother's insurance benefit for each
month to which any individual is entitled under this subsection (as
determined after application of subsection (k)) shall be reduced
(but not below zero) by an amount equal to 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, on the last day such
individual was employed by such entity, such service did not con-
stitute "employment" as defined in section 210.
(B) 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 Secretary)
and such equivalent monthly benefit shall constitute a monthly
periodic benefit for purposes of subparagraph (A). For purposes
of thllis subparmgrapl)h, the termni "periodic benefit" includes a benefit
payable in a lump sum if it is a commutation of, or a substitute
for, periodic paymentss1
1 Paragraph (2) was amended and paragraph (4) was added by sec. 334(e) of Public
Law 115-216 effective as specified In sec. 334(f) and subject to the exception specified in
sec. 334(g). These subsections are printed In this document on pp. 809-810.


Sec. 202(g)






Revised April 1978


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 indi-
vidual 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 821/ per-
cent of the primary insurance amount of such deceased individual
if the amount of the parent's insurance benefit for such amount 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 begin-
ning 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 821/2 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 para-
graph (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 821 per-
cent 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


45


See. 202(h)





Revised April 1978


(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 appli-
cation 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 deter-
mined 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 (be-
fore 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 at-
tained 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), (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, not-
withstanding the provisions of paragraph (1) but subject to subsec-
tion (s), not be terminated by reason of such marriage; except that,
in the case of such a marriage to a male individual entitled to bene-
fits under subsection (d), the preceding provisions of this paragraph
shall not apply with respect to benefits for months after the last month
for which such individual is entitled to such benefits under subsection
(d) unless he ceases to be so entitled by reason of his death.
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, or an amount equal to
$255, whichever is the smaller, shall be paid in a lump sum to the per-
son, if any, determined by the Secretary 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 per-
son dies before receiving payment, then such amount shall be paid-
(1) if all or part of the burial expenses of such insured indi-
vidual which are incurred by or through a funeral home or fun-


Sec. 202(h)






Revised April 1978


eral homes remains unpaid, to such funeral home or funeral homes
to the extent of such unpaid expenses, but only if (A) any per-
son who assumed the responsibility for the payment of all or
any part of such burial expenses files an application, prior to the
expiration of two years after the date of death of such insured
individual, requesting that such payment be made to such funeral
home or funeral homes, or (B) at least 90 days have elapsed after
the date of death of such insured individual and prior to the ex-
piration of such 90 days no person has assumed responsibility for
the payment of any such burial expenses;
(2) if all of the burial expenses of such insured individual
which were incurred by or through a funeral home or funeral
homes have been paid (including payments made under clause
(1)), to any person or persons, equitably entitled thereto, to the
extent and in the proportions that he or they shall have paid such
burial expenses;
(3) if the body of such insured individual is not available for
burial but expenses were incurred with respect to such individual
in connection with a memorial service, a memorial marker, a site
for the marker, or any other item of a kind for which expenses
are customarily incurred in connection with a death and such
expenses have been paid, to any person or persons, equitably
entitled thereto, to the extent and in the proportions that he or
they shall have paid such expenses; or
(4) if any part of the amount payable under this subsection
remains after payments have been made pursuant to clauses (1),
(2), and (3), to any person or persons, equitably entitled thereto,
to the extent and in the proportions that he or they shall have paid
other expenses in connection with the burial of such insured indi-
vidual, in the following order of priority: (A) expenses of open-
ing and closing the grave of such insured individual, (B) expenses
of providing the burial plot of such insured individual, and (C)
any remaining expenses in connection with the burial of such
insured individual.
No payment (except a payment authorized pursuant to clause (1) (A)
of the preceding sentence) shall be made to any person under this sub-
section unless application therefore shall have been filed, by or on be-
half of such person (whether or not legally competent), prior to the
expiration of two years after the date of death of such insured indi-
vidual, or unless such person was entitled to wife's or husband's insur-
ance 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 out-


47


Sec. 202(i)






Revised April 1978


side the forty-eight States and the District of Columbia after Decem-
ber 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 Is-
lands, 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 in-
dividual 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 out-
side 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(1) (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 therefore prior to the end of such month
shall be entitled to such benefit for such month if hlie files application
therefore prior to the end of the twelfth month immediately succeeding
such month. 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 Secretary 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 require-
ments for such benefits shall be deemed a valid application only if the
applicant satisfies the requirements for such benefits before the Secre-
tary makes a final decision on the application. If upon final decision
by the Secretary, or decision upon judicial review thereof, such appli-
I Paragraph (1) was amended by sec. 332(a) of Public Law 95-216.


Sec. 202(i)


48





Revised April 1978


cant is found to satisfy such requirements, the application shall be
deemed to have been filed in such first month.
(3) Notwithstanding the provisions of paragraph (1), an individual
may, at his option, waive entitlement to any benefit referred to in para-
graph (1) for any one or more consecutive months (beginning with
the earliest month for which such individual would otherwise be en-
titled 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 effect of entitle-
ment to such benefit would be to reduce, pursuant to subsection (q),
the amount of the monthly benefit to which such individual would
otherwise be entitled for the month in which such application is filed.
(B) (i) If the individual applying for retroactive benefits is apply-
ing for such benefits under subsection (a), and there are one or more
other persons who would (except for subparagraph (A)) be entitled
for any month, on the basis of the wages and self-employment income
of such individual and because of such individual's entitlement to
such retroactive benefits, to retroactive benefits under subsection (b),
(c), or (d) not subject to reduction under subsection (q), then sub-
paragraph (A) shall not apply with respect to such month or any
subsequent month.
(ii) 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 sub-
paragraph (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.
(iii) If the individual applying for retroactive, benefits has excess
earnings (as defined in section 203(f)) in the year in which he or she
files an application for such benefits which could, except for subpara-
graph (A), be charged to months in such year prior to the month of
application, then subparagraph (A) shall not apply to so many of
such months immediately preceding the month of application as are
required to charge such excess earnings to the maximum extent
possible.


Sec. 202(j)





Revised April 1978


(iv) 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.1
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 bene-
fits on the basis of the wages and self-employment income of some
other insured individual, shall be deemed entitled, subject to the pro-
visions of paragraph (2) hereof, to child's insurance benefits on the
basis of the wages and self-employment income of such other individ-
ual 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-employ-
ment income of both such insured individuals.
(2) (A) Any child who under the preceding provisions of this sec-
tion 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-employ-
ment 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) (4) or (f) (5) 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 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

iParagnrnph (4) wns added by sec. 332(a) of P.L. 95-216.


Sec. 202(j)





Revised April 1978


of the monthly benefits to which he (but for this subparagraph (B))
would otherwise be entitled for such months. Any individual who is
entitled for any month to more than one widow's or widower's insur-
ance benefit to which subsection (e) (4) or (f) (5) applies shall be en-
titled 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 in-
surance 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)
(3), 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) (4) or (f) (5)
applies and to any other monthly insurance benefit under section 202
(other than an old-age insurance benefit), such other insurance bene-
fit 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 reduc-
tions under such subparagraph (A) and such section 203 (a).c
(4) Any individual who, under this section and section 223, is en-
titled for any month to both an old-age insurance benefit and a dis-
ability 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 bene-
fits for such month.
Entitlement to Survivor Benefits Under Railroad Retirement Act
(1) If any person would be entitled, upon filing application there-
for 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.
Minimum Survivor's Benefit
(m) (1) In any case in which an individual is entitled to a monthly
benefit under this section on the basis of a primary insurance amount
computed under section 215 (a) or (d), as in effect after December
1978, on the basis of the wages and self-employment income of a


Sec. 202(m)






Revised April 1978


deceased individual for any month and no other person is (without
the application of subsection (j)(1)) entitled to a monthly benefit
under this section for that month on the basis of such wages and
self-employment income, the individual's benefit amount for that
month, prior to reduction under subsection (k) (3), shall not be less
than that provided by subparagraph (C) (i) (I) of section 215(a) (1)
and increased under section 215(i) for months after May of the year
in which the insured individual died as though such benefit were a
primary insurance amount.1
(2) In the case of any such individual who is entitled to a monthly
benefit under subsection (e) or (f), such individual's benefit amount,
after reduction under subsection (q)(1), shall be not less than-
(A) $84.50, if his first month of entitlement to such benefit is
the month in which such individual attained age 62 or a subse-
quent month, or
(B) $84.50 reduced under subsection (q) (1) as if retirement
age as specified in subsection (q) (6) (A) (ii) were age 62 instead
of the age specified in subsection (q) (9), if his first month of en-
titlement to such benefit is before the month in which hlie attained
age.62.
(3) In the case of any individual whose benefit amount was com-
puted (or recomputed) under the provisions of paragraph (2) and
such individual was entitled to benefits under subsection (a) or (f) for
a month prior to any month after 1972 for which a general benefit in-
crease under this title (as defined in section 215(i)(3)) or a benefit
increase under section 215(i) becomes effective, the benefit amount of
such individual as computed under paragraph (2) without regard to
the reduction specified in subparagraph (B) thereof shall be increased
by the percentage increase applicable for such benefit increase, prior
to the application of subsection (q) (1) pursuant to paragraph (2) (B)
and subsection (q) (4).
Termination of Benefits Upon Deportation of Primary Beneficiary
(n) (1) If any individual is (after the date of enactment of this sub-
section) deported underparagraph (1), (2), (4), (5), (6), (7), (10),
(11), (12), (14), (15), (16), (17), or (18) of section 241(a) of the
Immigration and Nationality 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-employ-
ment income, for any month occurring (i) after the month in
which the Secretary is notified by the Attorney General that such
1 Paragraph (1) was amended by sec. 205(a) of Public Law 95-216 effective for benefits
payahle aftpr Decpmbpr 197S.


Sec. 202(m)





Revised April 1978


individual has been so deported, 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 in-
come, 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 lie is thereafter lawfully admitted
to the United States for permanent residence.
Section 203 (b), (c), and (d) of this Act shell not apply with respect
to any such individual for any month for which no monthlily benefit
may be paid to him by reason of this paragraph.
(2) As soon as practicable after the deportation of any individual
under any of the paragraphs of section 241(a) of the Immigration
and Nationality Act enumerated in paragraph (1) in this subsection,
the Attorney General shall notify the Secretary of such deportation.
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
therefore, 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 sub-
section (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 1
(2) to file, in the case of a death after 1946, application for a
lump-sum death payment under subsection (i), or under subsection
1 Paragraph (1) was amended by sec. 334(d) (5) of Public Law 95-216 effective as speci-
fied in sec. 334(f) which is printed in this document on p. 809.


21-746 0 78 5


53


Sec. 202(n)





Revised April 1978


(g) of this section as in effect prior to the Social Security Act
Amendments of 1950, within the period prescribed by such sub-
section,
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 Secretary 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 regula-
tions of the Secretary.
Reduction of Benefit Amounts for Certain Beneficiaries
(q) (1) If the first month for which an individual is entitled to anii
'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 subse-
quent month shall, subject to the succeeding paragraphs of this sub-
section, be reduced by-
(A) % of 1 percent of such amount if such benefit is an old-
age insurance benefit, 25/3 of 1 percent of such amount if such
'benefit is a wife's or husband's insurance benefit, or 1%o of 1 per-
cent 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) (A)), 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;
and in the case of a widow or widower whose first month of entitle-
ment to a widow's or widower's insurance benefit is a month before
the month in which such widow or widower attains age 60, such bene-
fit, reduced pursuant to the preceding provisions of this paragraph
(and before the application of the second sentence of paragraph (8)),
shall be further reduced by-
(C) 43.1o of 1 percent of the amount of such benefit, multiplied
by-
(D) (i) the number of months in the additional reduction
period for such benefit (determined under paragraph (6) (B)), if
such benefit is for a month before the month in which such indi-
vidual attains age 62, or


Sec. 202(p)


54





Revised April 1978


(ii) if less, the number of months in the additional adjusted
reduction period for such benefit (determined under paragraph
(7)), if such benefit is for the month in which such individual
attains age 62 or any month thereafter.
(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 months had
such individual attained age 65'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 age 65), 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 re-
duced 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 bene-
fit, 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 re-
duced 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 dis-
ability 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 re-
duced 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 re-


See. 202(q)





Revised April 1978


duction 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) If the first month for which an individual is entitled to an old-
age insurance benefit (whether such first month occurs before, with,
or after the month in which such individual attains the age of 65) is
a month for which such individual is also (or would, but for sub-
section (e) (1) in the case of a widow or surviving divorced wife or
subsection (f) (1) in the case of a widower, be) entitled to a widow's or
widower's insurance benefit to which such individual was first en-
titled for a month before she or he attained retirement age, then
such old-age insurance benefit shall be reduced by whichever of the
following is the larger:
(i) the amount by which (but for this subparagraph) such
old-age insurance benefit would have been reduced under para-
graph (1),or
(ii) the amount equal to the sum of (I) the amount by which
such widow's or widower's insurance benefit would be reduced
under paragraph (1) if the period specified in paragraph (6) (A)
ended with the month before the month in which she or he at-
tained age 62 and (II) the amount by which such old-age insur-
ance benefit would be reduced under paragraph (1) if it were
equal to the excess of such old-age insurance benefit (before re-
duction under this subsection over such widow's or widower's
insurance benefit (before reduction under this subsection).
(F) If the first month for which an individual is entitled to a dis-
ability insurance benefit (when such first month occurs with or after
the month in which such individual attains the age of 62) is a month
for which such individual is also (or would, but for subsection (e) (1)
in the case of a widow or surviving divorced wife or subsection (f) (1)
in the case of a widower, be) entitled to a widow's or widower's in-
surance benefit to which such individual was first entitled for a month
before she or he attained retirement age, then such disability insurance
benefit for each month shall be reduced by whichever of the follow-
ing is larger:
(i) the amount by which (but for this subparagraph) such dis-
ability insurance benefit would have been reduced under para-
graph (2),or
(ii) the amount equal to the sum of (I) the amount by which
such widow's or widower's insurance benefit would be reduced


See. 202 (q)





Revised April 1978


under paragraph (1) if the period specified in paragraph (6) (A)
ended with the month before the month in which she or he at-
tained age 62 and (II) the amount by which such disability insur-
ance benefit would be reduced under paragraph (2) if it were
equal to the excess of such disability insurance benefit (before
reduction under this subsection) over such widow's or widower's
insurance benefit (before reduction under this subsection).
(G) If the first month for which an individual is entitled to a
disability insurance benefit (when such first month occurs before the
month in which such individual attains the age of 62) is a month for
which such individual is also (or would, but for subsection (e) (1) in
the case of a widow or surviving divorced wife or subsection (f) (1)
in the case of a widower, be) entitled to a widow's or widower's in-
surance benefit, then such disability insurance benefit for each month
shall be reduced by the amount such widow's insurance benefit would
be reduced under paragraphs (1) and (4) for such month as if the
period specified in paragraph (6) (A) (or, if such paragraph does not
apply, the period specified in paragraph (6)(B)) ended with the
month before the first month for which she or he most recently be-
came entitled to a disability insurance benefit.
(H) Notwithstanding subparagraph (A) of this paragraph, if the
first month for which an individual is entitled to a widow's or widow-
er's insurance benefit is a month for which such individual is also en-
titled 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 wid-
ow's or widower's insurance benefit shall be determined under para-
graph (1).1
(4) If-
(A) an individual is or was entitled to a benefit subject to re-
duction 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 applica-
tion of any adjustment utinder paragraph (7)) for each month begin-
ning 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).2
(5) (A) No wife's insurance benefit shall be reduced under this sub-
section-
1 Subparagraph (H) was amended byv sec. 331 (c) (2) of Public Law 95-21f.
2 Paragraph (4) was amended by sec. 331(a) of Public Law 95-216.


Sec. 202(q)





Revised April 1978


(i) for any month before the first month for which there is in
effect a certificate filed by her with the Secretary, in accordance
with regulations prescribed by him, in which she elects to receive
wife's insurance benefits reduced as provided in this subsection, or
(ii) for any month in which she has in her care (individually
or jointly with the person on whose wages and self-employment
income her wife'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 ef-
fective 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 there-
after, and
(ii) for months, in the period designated by the woman 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, nor shall it be effective for any
month to which subparagraph (A) (ii) applies.
(C) If a woman does not have in her care a child described in sub-
paragraph (A) (ii) in the first month for which she is entitled to a
wife's insurance benefit, and if such first month is a month before the
month in which she attains age 65, she shall be deemed to have filed
in such first month the certificate described in subparagraph (A) (i).
(D) No widow's insurance benefit for a month in which she has
in her care a child of her deceased husband (or deceased former hus-
band) entitled to child's insurance benefits shall be reduced under this
subsect ion below the amount to which she would have been entitled had
she been entitled for such month to mother's insurance benefits on
the basis of her deceased husband's (or deceased former husband's)
wages and self-employment income.
(6) For the purposes of this subsection-
(A) the "reduction period" for an individual's old-age, wife's,
husband's, widow's, or widower's insurance benefit is the period-
(i) beginning-
(I) in the case of an old-age or husband's insurance
benefit, with the first day of the first month for which
such individual is entitled to such benefit, or
(II) in the case of a wife's insurance benefit, with the
first day of the first month for which a certificate de-
scribed in paragraph (5) (A) (i) is effective, or
(III) in the case of a wvidow's or widower's insurance
benefit, with the first day of the first month for which


Sec. 202(q)


58





Revised April 1978


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
(ii) ending with the last day of the month before the
month in which such individual attains retirement age; and
(B) the "additional reduction period" for an individual's
widow's, or widower's insurance benefit is the period-
(i) beginning with the first day of the first month for
which such individual is entitled to such benefit, but only if
such individual has not attained age 60 in such first month,
and
(ii) ending with the last day of the month before the
month in which such individual attains age 60.
(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)
(A) for such benefit, and the "additional adjusted reduction period"
for an individual's, widow's, or widower's, insurance benefit is the addi-
tional reduction period prescribed by paragraph (6.) (B) for such
benefit, excluding from each such period-
(A) any month in which such benefit was subject to deduc-
tions under section 203(b), 203(c) (1), 203(d) (1), or 222(b),
(B) in the case of wife's insurance benefits, any month in which
she had in 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 bene-
fits because of the occurrence of an event that terminated her or
his entitlement to such benefits,'
(D) in the case of widow'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 hlie attained age 62, and
also for any later month before the month in which hlie attained re-
tirement age, for which she or he was not entitled to such bene-
fit 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 after application of section 215 (g). If the amount of any
1 Subparagraph (C) was amended by sec. 3i31(c) (1) of Public Law 95-216.


Sec. 202(q)





Revised April 1978


reduction. computed under paragraph (1), (2), or (3) is not a multi-
ple of $0.10, it shall be reduced to the next lower multiple of $0.10.
(9) For purposes of this subsection, the term "retirement age" means
age 65.
(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 indi-
vidual 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 or an additional
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 num-
ber 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 multi-
plying such amount by the ratio of (i) the number of months in
the reduction period beginning with age 62 multiplied by 10
of 1 percent, plus the number of months in the adjusted reduction
period prior to age 62 multiplied by 1%0 of 1 percent, plus the
number of months in the.adjusted additional reduction period
multiplied by 43' 0 of 1 percent to (ii) the number of months
in the reduction period multiplied by 19,-o of 1 percent, plus the
number of months in the additional reduction period multiplied
by 43"%40of 1 percent, and
(C) in the case of widow's and widower's insurance benefits
for the month in which such individual attains age 65, by multi-
plying such amount, by the ratio of (i) the number of months in
the adjusted reduction period multiplied by 1%0 of 1 percent,
plus the number of months in the adjusted additional reduction
11*/*2 43' f percent to(ii) the number
period multiplied by reco of 1 pegnt to () the number of
months in the reduction period beginning with age 62 multiplied


Sec. 202 (q)


60






Revised April 1978 61 Sec. 202(s)

by 1%0 of 1 percent, plus the number of months in the adjusted
reduction period prior to age 62 multiplied by 1%o of 1 percent,
plus the number of months in the adjusted additional reduction
period multiplied by 4%4o of 1 percent.
such determination being made in accordance with the provisions of
paragraph (8).1
(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 bene-
fit) and the application of this paragraph shall operate in conjunction
with paragraph (3).2
Presumed Filing of Application by Individuals Eligible for Old-Age Insurance
Benefits and for Wife's or Husband's Insurance Benefits
(r) (1) If the first month for which an individual is entitled to an
old-age insurance benefit is a month before the month in which such
individual attains age 65, and if such individual is eligible for a wife's
or husband's insurance benefit for such first month, such individual
shall be deemed to have filed an application in such month for wife's
or husband's insurance benefits.
(2) If the first month for which an individual is entitled to a wife's
or husband's insurance benefit reduced under subsection (q) is a month
before the month in which such individual attains age 65, and if such
individual is eligible (but for section 202(k) (4)) for an old-age insur-
ance benefit for such first month, such individual shall be deemed to
have filed an application for old-age insurance benefits-
(A) in 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 therefore
in such month, he would be entitled to such benefit for such month.
Child Aged 18 or Over Attending School
(s)(1) For the purposes of subsections (b)(1), (g) (1), (q)(5),
and (q)(7) of this section and paragraphs (2), (3), and (4) of sec-
tion 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 18 but
is not in such month under a disability (as defined in section 223 (d))
I Paragraph (10) was added by sec. 331(b) of Public Law 95-216.
2Paragraph (11) was added by sec. 331(b) of Public Law 95-216.





Revised April 1978


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) Subsection (f)(4), and so much of subsections (b)(3),
(d) (5), (e) (3), (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) So much of subsections (b)(3), (d)(5), (e)(3), (g)(3), and
(h) (4) of this section as follows the semicolon, the last sentence of
subsection (c) of section 203, subsection (f) (1) (0) 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)).1
Suspension- of Benefits of Aliens Who Are Outside the United States
(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 Secretary finds, on the basis of information furnished
to him by the Attorney General or information which otherwise
comes to his 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) Paragraph (1) shall not apply to any individual who is a citi-
zen of a foreign country which the Secretary 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
I Suihsectlon (3) was nmendfed by see. 334(d) (6) of Public Law 95-216 effective as
sppelfled in sec. 334(f) which is printed in this document on p. 809.


Sec. 202(s)





Revised April 1978


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) 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 in-
come 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 in-
come 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(1), (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 Administrator of Veterans' Affairs
determines was incurred or aggravated in line of duty while on
active duty (as defined in section 210(1) (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(1) (3)), as
a member of a uniformed service (as defined in section 210(m)),
if the Administrator determines that such individual was dis-
charged or released from the period of such active duty or in-
active duty training under conditions other than dishonorable,
and if the Administrator certifies to the Secretary his determina-
tions 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 which
was treated as employment covered by this Act pursuant to the
provisions of section 5(k) (1) of the Railroad Retirement Act;
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 subpara-
graph (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


Sec. 202(t)





Revised April 1978


enacted (or the first month thereafter for which his benefits are sub-
ject to suspension under paragraph (1)) payments to individuals re-
siding 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 de-
prived, by reason of paragraph (1), of such benefit or any other bene-
fit 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 hlie 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 sub-
section.
(8) The Attorney General shall certify to the Secretary such infor-
mation 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 Secretary to carry out the purposes of this subsection and
shall otherwise aid, assist, and cooperate with the Secretary in obtain-
ing such other information as may be necessary to enable the Secretary
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 bene-
fits 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
monthly in a foreign country if payments for such month to individuals
residing in s uc. country are withheld by the Treasury Department
under the first section of the Act of October 9, 1940 (31-U.S.C. 123).
Effect of Conviction of Subversive Activities, etc.
(u) (1) If any ind(lividual is convicted of any offense (committed
after t(h d(late of tlhe enact inent of this subsection) under-
(A) clia pter 37 (relating to espionage and censorship), chliapter


Sec. 202(t)


64





Revised April 1978


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, 112, or 113 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 hlie 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
monthli, there shall not be taken into account-
(C) any wages paid to such individual or to any other individ-
ual 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.1
(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 Secretary of such imposition.
S(3) If any individual within respect to whom ain 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) Notwithstanding any other provisions of this title, in the case
of any individual who files a waiver pursuant to section 1402(h) of the
Internal Revenue Code of 1954 and is granted a tax exemption there-
under, 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; except that, if thereafter
such individual's tax exemption under such section 1402(h) ceases to
be effective, such waiver shall cease to be applicable in the case of bene-
fits and other payments under this title and part A of title XVIII
to the extent based on his self-employment income for and after the
first taxable year in which such tax exemption ceases to be effective
and on his wages for and after the calendar year (if any) which
begins in or with the beginning of such taxable year.
I Paragraph (1) was amended by sec. 353(f) (1) of Public Law 95-216.


65


Sec. 202(v)





Revised April 1978


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 sec-
tion 215(a) (3) as in effect in December 1978 or section 215 (a) (1) (C)
(i) (II) as in effect thereafter) which is payable without regard to
this subsection to an individual shall be increased by-
(A) one-twelfth of 1 percent of such amount, or, in the case of
an individual who first becomes eligible, for an old-age insurance
benefit after December 1978, one-quarter of 1 percent of such
amount, multiplied by
(B) the number (if any) of the increment months for such
individual.1
(2) For purposes of this subsection, the number of increment months
for any individual shall lIe 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 age 65 or (if later) December
1970 and prior to the month in which such individual attained
age 72, and
(B) with respect to which-
(i) such individual was a fully insured individual (as
defined in section 214(a)), and
(ii) such individual either was not entitled to an old-age
insurance benefit or suffered deductions under section 203 (b)
or 203(c) in amounts equal to the amount of such benefit.
(3) For purposes of applying the provisions of paragraph (1), a
determination shall be made under paragraphli (2) for each year, begin-
ning with 1972, of the total number of an individual's increment
months through the year for whicli the determination is made nnd the
total so determined shall be applicable to such individual's old-age
insurance benefits beginning with benefits for January of the year fol-
lowing the year for which such determination is made; except that
the total number applicable in the case of an individual who attains
age 72 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
suich 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,
T 'larngrnphi (1) was aimended by se. 203 nnd see. 205(h) (1) of Public Lnw 95-216.
The i :nnrndnmnt by see. 205i(b) (1) is effective for benefits for months nfter December 197S.


Sec. 202(w)


66





Revised April 1978


or section 215(a) (1) (C) (i) (II) 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 hlie would be entitled if
his primary insurance amount were determined under such section
without regard to such paragraph.1

Reduction of Insurance Benefits
Maximum Benefits
Sec. 203. (a) (1) In the case of an individual whose primary insur-
ance amount has been computed or recomputed under section 215 (a)
(1) or (4), or section 215(d), as in effect after December 1978, the
total monthly benefits to which beneficiaries may be entitled under
section 202 or 223 for a month on the basis of the wages and self-
employment income of such individual shall, except as provided by
paragraph (3) (but prior to any increases resulting from the applica-
tion of paragraph (2) (A) (ii) (III) of section 215(i)), be reduced
Sas necessary so as not to exceed-
(A) 150 percent of such individual's primary insurance
amount to the extent that it does not exceed the amount estab-
lished with respect to this subparagraph by paragraph (2),
(B) 272 percent of such individual's primary insurance
amount to the extent that it exceeds the amount established with
respect to subparagraph (A) but does not exceed the amount
established with respect to this subparagraph by paragraph (2),
(C) 134 percent of such individual's primary insurance
amount to the extent that it exceeds the amount established with
respect to subparagraph (B) but does not exceed the amount
established with respect to this subparagraph by paragraph (2),
and
(D) 175 percent of such individual's primary insurance
amount to the extent that it exceeds the amount established with
respect to subparagraph (C).
Any such amount that is not a multiple of $0.10 shall be increased to
the next higher multiple of $0.10.
1 Paragraph ('5) was amended by sec. 205(b) (2) and (31) of Public Law 95-216 effective
for benefits for months after December 197S.


Sec. 203 (a)





Revised April 1978


(2) (A') For individuals who initially become eligible for old-age
or disability insurance benefits, or who die (before becoming so eligi-
ble for such benefits), in the calendar year 1979, the amounts estab-
lished with respect to subparagraphs (A), (B), and (C) of para-
graph (1) shall be S2.30, s3.)32, and $"433. respectively.
(B) For individuals who initially become eligible for old-age or
disability insurance benefits, or who die (before becoming so 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 for the calendar year 1979 by subparagraph (A) of
this paragraph and the quotient obtained under subparagraph (B)
(ii) of section 215(a)(1), with such product being rounded in the
manner prescribed by section 21 (a) (1) (B) (iii).
(C) In each calender year after 1978 the Secretary shall publish
in the Federal Register, on or before November 1, the formula which
(except as provided in section 215(i) (2) (D)) is to be applicable
under this paragraph to individuals who become eligible for old-age
or disability insurance benefits. or who die (before becoming eligible
for such benefits), in the following calendar year.
(D) A year shall not be counted as the year of an individual's death
or eligibility for purposes of this paragraph or paragraph (7) in any
case where such individual was entitled to a disability insurance bene-
fit 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 benefits to which he
was entitled during such 12 months).
(3) (A) When an individual who is entitled to benefits on the basis
of the wages and self-employment income of any insured individual
and to whom this subsection applies would (but for the provisions of
section 202(k) (2) (A)) be entitled to child's insurance benefits for a
month on the basis of the wages and self-employment income of one
or more other insured individuals, the total monthly benefits to which
all beneficiaries are entitled on the bases 1 of such wages and self-em-
ployment income shall not be reduced under this subsection to les
than the smaller of-
(i) the sum of the maximum amounts of benefits payable on
the basis of the wages ,and self-employment income of all such
insured individuals, or
(ii) an amount equal to the product of 1.75 and-the primary
insurance amount that would be computed under section 215(a)
(1) for that month with respect to average indexed monthly
earnings equal to one-twelfth of the contribution and benefit base
determined for that year under section 230.
l The word "hnePs" Is a te lchnical error In the law. It should read "basis".


Sec. 203(a)






Revised April 1978 69 Sec. 203(a)

(B) When two or more persons were entitled (without the appli-
cation of section 202(j) (1) and section 223(b)) to monthly benefits
under section 202 or 223 for January 1971 or any prior month on the
basis of the wages and self-employment income of such insured indi-
vidual and the provisions of this subsection as in effect for any such
month were applicable in determining the benefit amount of any per-
sons on the basis of such wages and self-employment income, the total
of benefits for any month after January 1971 shall not be reduced to
less than the largest of-
(i) the amount determined under this subsection without re-
gard to this subparagraph,
(ii) the largest amount which has been determined for any
month under this subsection for persons entitled to monthly
benefits on the basis of such insured individual's wages and self-
employment income, or
(iii) if any persons are entitled to benefits on the basis of such
wages and self-employment income for the month before the effec-
tive month (after September 1972) of a general benefit increase
under this title (as defined in section 215(i) (3)) or a benefit in-
crease under the provisions of section 215(i), an amount equal
to the sum of amounts derived by multiplying the benefit amount
determined under this title (excluding any part thereof deter-
mined under section 202(w)) for the month before such effective
month (including this subsection, but without the application of
section 222(b), section 202(q), and subsections (b), (c), and (d)
of this section), for each such person for such month, by a per-
centage equal to the percentage of the increase provided under
such benefit increase (with any such increased amount which is
not a multiple of $0.10 being rounded to the next higher multiple
of $0.10);
but in any such case (I) subparagraph (A) of this paragraph shall not
be applied to such total of benefits after the application of clause (ii)
or (iii), nnd (II) if section 202(k) (2) (A) was applicable in the case
of any such benefits for a month, and ceases to apply for a month after
such month, the provisions of clause (ii) or (iii) shall be applied, for
and after the month in which section 202(k) (2) (A) ceases to apply,
as though subparagraph (A) of this paragraph had not been appli-
cable to such total of benefits for the last month for which clause (ii)
or (iii) was applicable.
(C) When any of such individuals is entitled to monthly benefits as
a divorced spouse under section 202 (b) or (c) or as a surviving di-
vorced spouse under section 202 (e) or (f) for any month, the benefit
to which he or she is entitled on the basis of the wages and self-em-


21-746 0- 78 6





Revised April 1978


ployment income of such insured individual for such month shall
be determined without regard to this subsection, and the benefits of all
other individuals who are entitled for such month to monthly benefits
under section 202 on the wages and self-employment income of such
insured individual shall be determined as if no such divorced spouse
or surviving divorced spouse were entitled to benefits for such month.
..(4) In any case in which benefits are reduced pursuant to the pre-
ceding provisions of this subsection, the reduction shall be made after
any deductions under this section and after any deductions under sec-
tion 222(b). Whenever a reduction is made under this subsection in
the total of monthly benefits to which individuals are entitled for any
month on the basis of the wages and self-employment income of an
insured individual, each such benefit other than the old-age or dis-
ability insurance benefit shall be proportionately decreased.
(5) Notwithstanding any other provision of law, when-
(A) two or more persons are entitled to monthly benefits for a
particular month on the basis of the wages and self-employment
income of an insured individual and (for such particular month)
the provisions of this subsection are applicable to such monthly
benefits, and
(B) such individual's primary insurance amount is increased
for the following month under any provision of this title,
then the total of monthly benefits for all persons on the basis of such
wages and self-employment income for such particular month, as
determined under the provisions of this subsection, shall for purposes
of determining the total monthly benefits for all persons on the basis
of such wages and self-employment income for months subsequent to
such particular month be considered to have been increased by the
smallest amount that would have been required in order to assure that
the total of monthly benefits payable, on the basis of such wages and
self-employment income for any such subsequent month will not be
less (after the application of the other provisions of this subsection
and section 202 (q)) than the total of monthly benefits (after the
application of the other provisions of this subsection and section 202
(q)) payable on the basis of such wages and self-employment income
for such particular month.
(6) In the case of any individual who is entitled for any month
to benefits based upon the primary insurance amounts of two or more
insured individuals, one or more of which primary insurance-amounts
were determined under section 215(a) or 215(d) as in effect (without
regard to the table contained therein) prior to January 1979 and one
or more of which primary insurance amounts were determined under
section 215(a) (1) or (4), or section 215(d), as in effect after Decem-
ber 1978, the total benefits payable to that. individual and all other


70


See. 203(a)






Revised April 1978


individuals entitled to benefits for that month based upon those pri-
mary insurance amounts shall be reduced to an amount equal to the
product of 1.75 and the primary insurance amount that would be com-
puted under section 215 (a) (1) for that month with respect to average
indexed monthly earnings equal to one-twelfth of the contribution
and benefits base determined under section 230 for the year in which
that month occurs.
(7) Subject to paragraph (6), this subsection as in effect in Decem-
ber 1978 shall remain in effect with respect to a primary insurance
amount computed under section 215 (a) or (d), as in effect (without
regard to the table contained therein) in December 1978, except that a
primary insurance amount so computed with respect to an individual
who first becomes eligible for an old-age or disability insurance benefit,
or dies (before becoming eligible for such a benefit), after December
1978, shall instead be governed by this section as in effect after Decem-
ber 1978.
(8) When-
(A) one or more persons were entitled (without the applica-
tion of section 202(j)(1)) to monthly benefits under section 202
for May 1978 on the basis of the wages and self-employment
income of an individual,
(B) the benefit of at least one such person for June 1978 is
increased by reason of the amendments made by section 204 of
the Social Security Amendments of 1977; and
(C) the total amount of benefits to which all such persons are
entitled under such section 202 are reduced under the provisions
of this subsection (or would be so reduced except for the first
sentence of section 203(a) (4)),
then the amount of the benefit to which each such person is entitled
for months after May 1978 shall be increased (after such reductions
are made under this subsection) to the amount such benefits would
have been if the benefit of the person or persons referred to in subpara-
graph (B) had not been so increased.'

Deductions on Account of Work
(b) Deductions, in amounts and at such time or times as the Secre-
tary shall determine, shall be made from any payment or payments
under this title to which an individual is entitled, and from any pay-
ment or payments to which any other persons are entitled on the basis
of such individual's wages and self-employment income, until the total
of such deductions equals-
1 Sec. 203 (a) was amended by sec. 202 of Public Law 95-216 effective for benefits payable
for months after December 1978 and paragraph (8) was added to sec. 203(a) by sec. 204(e)
of Public Law 95-216 effective for benefits for months after May 1978. The words "bene-
fits base" in paragraph (6) are a technical error in the law and should read "benefit base".


Sec. 203(b)






Revised April 1978


(1) such individual's benefit or benefits under section 202 for
any month, and
(2) if such individual was entitled to old-age insurance benefits
under section 202(a) for such month, the benefit or benefits of all
other persons for such month under section 202 based on such
individual's wages and self-employment income,
if for such month he is charged with excess earnings, under the pro-
visions of subsection (f) of this section, equal to the total of benefits
referred to in clauses (1) and (2). If the excess earnings so charged
are less than such total benefits, such deductions with respect to such
month shall be equal only to the amount of such excess earnings. If
a child who has attained the age of 18 and is entitled to child's insur-
ance benefits, or a person who is entitled to mother's insurance bene-
fits, is married to an individual entitled to old-age insurance benefits
under section 202(a), such child or such person, as the case may be,
shall, for the purposes of this subsection and subsection (f),be deemed
to be entitled to such benefits on the basis of the wages and self-
employment income of such individual entitled to old-age insurance
benefits. If a deduction has already been made under this subsection
with respect to a person's benefit or benefits under section 202 for a
month, he-shall be deemed entitled to payments under such section
for such month for purposes of further deductions under this sub-
section, and for purposes of charging of each person's excess earnings
under subsection (f), only to the extent of the total of his benefits
remaining after such earlier deductions have been made. For purposes
of this subsection and subsection (f)-
(A) an individual shall be deemed to be entitled to payments
under section 202 equal to the amount of the benefit or benefits to
which he is entitled under such section after the application of
subsection (a) of this section, but without the application of the
penultimate sentence thereof; and
(B) if a deduction is made with respect to an individual's
benefit or benefits under section 202 because of the occurence in
any month of an event specified in subsection (c) or (d) of this
section or in section 222(b), such individual shall not be consid-
ered to be entitled to any benefits under such section 202 for such
month.
Deductions on Account of Noncovered Work Outside the United States or
Failure To Have Child in Care
(c) Deductions, in such amounts and at such time or times as the
Secretary shall determine, shall be made from any payment or pay-
ments under this title to which an individual is entitled, until the total
of such deductions equals such individual's benefits or benefit under
section 202 for any month-


Sec. 203 (b)


72






Revised April 1978


(1) in which such individual is under the age of seventy 1
and on seven or more different calendar days of which he engaged
in noncovered remunerative activity outside the United States; or
(2) in which such individual, if a wife under age sixty-five
entitled to a wife's insurance benefits, did not have in her care
(individually or jointly with her husband) a child of her hus-
band entitled to a child's insurance benefit and such wife's insur-
ance benefit for such month was not reduced under the provisions
of section 202 (q); or
(3) in which such individual, if a widow entitled to a mother's
insurance benefit, did not have in her care a child of her deceased
husband entitled to a child's insurance benefit; or
(4) in which such an individual, if a surviving divorced mother
entitled to a mother's insurance benefit, did not have in her care a
child of her deceased former husband who (A) is her son, daugh-
ter, or legally adopted child and (B) is entitled to a child's in-
surance benefit on the basis of the wages and self-employment
income of her deceased former husband.
For purposes of paragraphs (2), (3), and (4) of this subsection, a
child shall not be considered to be entitled to a child's insurance benefit
for any month in which paragraph (1) of section 202(s) applies or an
event specified in sections 222(b) occurs with respect to such child.
Subject to paragraph (3) of such section 202(s), no deductions shall
be made under this subsection from any child's insurance benefit for
the month in which the child entitled to such benefit attained the age
of eighteen or any subsequent month; nor shall any deduction be
made under this subsection from any widow's insurance benefits for
any month in which the widow or surviving divorced wife is entitled
and has not attained age 65 (but only if she became so entitled
prior to attaining age 60), or from any widower's insurance benefit for
any month in which the widower is entitled and has not attained age
65 (but only if he became so entitled prior to attaining age 60).
Deductions From Dependents' Benefits on Account of Noncovered Work Out-
side the United States by Old-Age Insurance Beneficiary
(d) (1) Deductions shall be made from any wife's, husband's, or
child's insurance benefit, based on the wages and self-employment
income of an individual entitled to old-age insurance benefits, to which
a wife, divorced wife, husband, or child is entitled, until the total of
such deduction equals such wife's, husband's, or child's insurance
benefit or benefits under section 202 for any month in which such
individual is under the age of seventy2 and on seven or more
t In subsection (c)(1), sec. 302(a) of Public Law 95-216 changed "seventy-two" to
"seventy" effective for taxable years ending after Dec. 31, 1981.
2 In subsection (d)(1), sec. 302(a) of Public Law 95-216 changed "seventy-two" to
"seventy" effective for taxable years ending after Dec. 31, 1981.


73


Sec. 203(d)






Revised April 1978


different calendar days of which he engaged in noncovered remunera-
tive activity outside the United States.
(2) Deductions shall be made from any child's insurance benefit to
which a child who has attained the age of eighteen is entitled, or from
any mother's insurance benefit to which a person is entitled, until the
total of such deductions equals such child's insurance benefit or bene-
fits or mother's insurance benefit or benefits under section 202 for any
month in which such child or person entitled to mother's insurance
benefits is married to an individual who is entitled to old-age insur-
ance benefits and on seven or more different calendar days of which
such individual engaged in noncovered remunerative activity outside
the United States.
Occurrence of More Than One Event
(e) If more than one of the events specified in subsections (c) and
(d) and section 222(b) occurs in any one month which would occasion
deductions equal to a benefit for such month, only an amount equal
to such benefit shall be deducted.
Months to Which Earnings Are Charged
(f) For purposes of subsection (b)-
(1) The amount of an individual's excess earnings (as defined
in paragraph (3)) shall be charged to months as follows: There
shall be charged to the first month of such taxable year an amount
of his excess earnings equal to the sum of the payments to which
he and all other persons are entitled for such month under section
202 on the basis of his wages and self-employment income (or the
total of his excess earnings if such excess earnings are less than
such sum), and the balance, if any, of such excess earnings shall
be charged to each succeeding month in such year to the extent, in
the case of each such month, of the sum of the payments to which
such individual and all other persons are entitled for such month
under section 202 on the basis of his wages and self-employment
income, until the total of such excess has been so charged. Where
an individual is entitled to benefits under section 202(a) and other
persons are entitled to benefits under section 202(b), (c), or (d)
on the basis of the wages and self-employment income of suchli
individual, the excess earnings of such individual for any taxable
year shall'be charged in accordance with the provisions-of this
subsection before the excess earnings of such persons for a taxable
year are charged to months in such individual's taxable year.
Notwithstanding the preceding provisions of this paragraph, but
subject to section 202(s), no part of the excess earnings of an in-
dividiual shall be charged to any month (A) for whicli such indi-
vidual was not entitled to a benefit under this title. (B) in which


Sec. 203(d)


74






Revised April 1978


such individual was age seventy 1 or over, (C) in which such
individual, if a child entitled to child's insurance benefits, has
attained the age of 18, (D) for which such individual is entitled to
widow's insurance benefits and has not attained age 65 (but only if
she became so entitled prior to attaining age 60) or widower's in-
surance benefits and has not attained age 65 (but only if he became
so entitled prior to attaining age 60), or (E) in which such
individual did not engage in self-employment and did not render
services for wages (determined as provided in paragraph (5) of
this subsection) of more than the applicable exempt amount as de-
termined under paragraph (8), if such month is in the taxable
year in which occurs the first month that is both (i) a month for
which the individual is entitled to benefits under subsection (a),
(b), (c), (d), (e), (f), (g),or (h) of section 202 (without having
been entitled for the preceding month to a benefit under any other
of such subsections), and (ii) a month in which the individual did
not engage in self-employment and did not render services for
wages (determined as provided in paragraph (5)) of more than
the applicable exempt amount as determined under paragraph
(8).2
(2) As used in paragraph (1), the term "first month of such
taxable year" means the earliest month in such year to which.the
charging of excess earnings described in such paragraph is not
prohibited by the application of clauses (A), (B), (C), (D), and
(E) thereof.
(3) For purposes of paragraph (1) and subsection (h), an in-
dividual's excess earnings for a taxable year shall be 50 per centum
of his earnings for such year in excess of the product of the appli-
cable exempt amount as determined under paragraph (8), multi-
plied by the number of months in such year, except that, in deter-
mining an individual's excess earnings for the taxable year in
which he attains age 70,3 there shall be excluded any earnings of
such individual for the month in which he attains such age and
any subsequent month (with any net earnings or net loss from
self-employment in such year being prorated in an equitable
manner under regulations of the Secretary). The excess earn-
ings as derived under the preceding sentence, if not a multiple of
$1, shall be reduced to the next lower multiple of $1.4
(4) For purposes of clause (E) of paragraph (1)-
(A) An individual will be presumed, with respect to any
month, to have been engaged in self-employment in such
IIn subsection (f)(1)(B). sec. 302(a) of Public Law 95-216 changed "seventy-two"
to "seventy" effective for taxable years ending after Dec. 31, 1981.
2 Subparagraph (IE) was amended by sees. 3.01(d) and 303(a) of Public Law 95-216.
In paragraph (3). s.ec. 302(b) of Public Law 95-216 changed "age 72" to "age 70"
effective for taxable years ending after December 31. 1981.
41 Paragraph (3) and (4)(B) were amended by sec. 301(d) of Public Law 95-216.


Sec. 203(f)





Revised April 1978


month until it is shown to the satisfaction of the Secretary
that such individual rendered no substantial services in such
month with respect to any trade or business the net income or
loss of which is includible in computing (as provided in
paragraph (5) of this subsection) his net earnings or net
loss from self-employment for any taxable year. The Secre-
tary shall by regulations prescribe the methods and criteria
for determining whether or not an individual has rendered
substantial services with respect to any trade or business.
(B) An individual will be presumed, with respect to any
month, to have rendered services for wages (determined as
provided in paragraph (5) of this subsection) of more than
the applicable exempt amount as determined under para-
graph (8) until it is shown to the satisfaction of the Secretary
that such individual did not render such services in such
month for more than such amount.1
(5) (A) An individual's earnings for a taxable year shall be
(i) the sum of his wages for services rendered in such year and
his net earnings from self-employment for such year, minus (ii)
any net loss from self-employment for such year.
(B) For purposes of this section-
(i) an individual's net earnings from self-employment for
any taxable year shall be determined as provided in section
211, except that paragraphs (1), (4), and (5) of section 211
(c) shall not apply and the gross income shall be computed
by excluding the amounts provided by subparagraph (D),
and
(ii) an individual's net loss from self-employment for any
taxable year is the excess of the deductions (plus his distribu-
tive share of loss described in sections 702 (a) (9) of the In-
ternal Revenue Code of 1954) taken into account under clause
(i) over the gross income (plus his distributive share of in-
come so described) taken into account under clause (i).
(C) For purposes of this subsection, an individual's wages shall
be computed without regard to the limitations as to amounts of
remuneration specified in subsections (a), (g)(2), (g)(3),
(h) (2), and (j) of section 209; and in making such computation
services which do not constitute employment as defined in section
210, performed within the United States by the individual as an
employee or performed outside the United States in the active
military or naval service of the United States, shall be deemed to
be employment as so defined if the remuneration for such services
I Pnragiraph (3) and (4)(B) were amended by sec. 301(d) of Public Law 95-216.


Sec. 203(f)





Revised April 1978


is not includible in computing his net earnings or net loss from
self-employment.
(D) In the case of an individual-
(i) who has attained the age of 65 on or before the last day
of the taxable year, and
(ii) who shows to the satisfaction of the Secretary that he
is receiving royalties attributable to a copyright or patent
obtained before the taxable year in which he attained the age
of 65 and that the property to which the copyright or patent
relates was created by his own personal efforts, ,
there shall be excluded from gross income any such royalities.
(6) For purposes of this subsection, wages (determined as pro-
vided in paragraph (5) (C)) which, according to reports received
by the Secretary, are paid to an individual during a taxable year
shall be presumed to have been paid to him for services performed
* in such year until it is shown to the satisfication of the Secretary
that they were paid for services performed in another taxable
year. If such reports with respect to an individual show his wages
for a calendar year, such individual's taxable year shall be pre-
sumed to be a calendar year for purposes of this subsection until
it is shown to the satisfaction of the Secretary that his taxable
year is not a calendar year.
(7) Where an individual's excess earnings are charged to a
month and the excess earnings so charged are less than the total of
the payments (without regard to such charging) to which all per-
sons are entitled under section 202 for such month on the basis
of his wages and self-employment income, the difference between
such total and the excess so charged to such month shall be paid
(if it is otherwise payable under this title) to such individual and
other persons in the proportion that the benefit to which each of
them is entitled (without regard to such charging, without the
application of section 202(k) (3), and prior to the application of
section 203 (a)) bears to the total of the benefits to which all of
them are entitled.
(8) (A) Whenever the Secretary pursuant to section 215 (i)
increases benefits effective with the month of June following a
cost-of-living computation quarter, he shall also determine and
publish in the Federal Register on or before November 1 of the
calendar year in which such quarter occurs the new exempt
amounts (separately stated for individuals described in subpara-
graph (D) and for other individuals) which are to be applicable
(unless prevented from becoming effective by subparagraph (C))
with respect to taxable years ending in (or with the close of) the
calendar year after the calendar year in which such benefit in-


Sec. 203(f)






Revised April 1978


crease is effective (or, in the case of an individual who dies during
the calendar year after the calendar year in which the benefit
increase is effective, with respect to such individual's taxable year
which ends, upon his death, during such year).1
(B) Except as otherwise provided in subparagraph (D), the
exempt amount which is applicable to individuals described in
such subparagraph and the exempt amount which is applicable to
other individuals, for each month of a particular taxable year,
shall each be whichever of the following is the larger-
(i) the corresponding exempt amount which is in effect
with respect to months in the taxable year in which the deter-
mination under subparagraph (A) is made. or
(ii) the product of the exempt amount described in clause
(i) and the ratio of (I) the average of the total wages (as de-
fined in regulations of the Secretary and computed without
regard to the limitations specified in section .09 (a)) reported
to the Secretary of the Treasury or his delegate for the calen-
dar year before the calendar year in which the determination
under subparagraph (A) is made to (II) the average of the
total wages (as so defined and computed) reported to the
Secretary of the Treasury or his delegate for the calendar
year before the most recent calendar year in which an in-
crease in the exempt amount was enacted or a determination
resulting in such an increase was made under subparagraph
(A), with such product, if not a multiple of $10, being
rounded to the next higher multiple of $10 where such prod-
uct is a multiple of $5 but not of $10 and to the nearest multi-
ple of $10 in any other case.
Whenever the Secretary determines that an exempt amount is to
be increased in any year under this paragraph, hlie shall notify the
House Committee on Ways and Means and the Senate Committee
on Finance within 30 days after the close of the base quarter (as
defined in section 215(i) (1) (A)) in such year of the estimated
amount of such increase, indicating the new exempt amount,
the actuarial estimates of the effect of the increase, and the ac-
tuarial assiimptions and methodology used in preparing such
estim iates.2
(C) Notwithstanding the determination of a ne3v exempt
amount by the Secretary under siibparagraphli (A) (and notwith-
standing any publication thereof under such subparagraph or any
notificat ion thereof under the last sentence of subparagraph (B)),
SShpairnagraph (A.\) was ninended by sec. 301(a) of Public Law 95-216. See Appendix E
for Pxempt arnounts for pach' yenr.
2 Siihbpnragraph (B) was nmnended by see. 8(1) of Public Law 94-202 and by sec,.
301 (1) nnd :353(n) of Piubic Law 95-2i1(.


Sec. 203 (f)





Revised April 1978


such new exempt amount shall not take effect pursuant thereto if
during the calendar year in which such determination is made a
law increasing the exempt amount is enacted.
(D) Notwithstanding any other provision of this subsection,
the exempt amount which is applicable to an individual who has
attained age 65 before the close of the taxable year involved-
(i) shall be $333.331/3 for each month of any taxable year
ending after 1977 and before 1979,
(ii) shall be $375 for each month of any taxable year
ending after 1978 and before 1980,
(iii) shall be $416.66% for each month of any taxable year
ending after 1979 and before 1981,
(iv) shall be $458.331/3 for each month of any taxable year
ending after 1980 and before 1982, and
(v) shall be $500 for each month of any taxable year end-
ing after 1981 and before 1983.1
Penalty for Failure to Report Certain Events
(g) Any individual in receipt of benefits subject to deduction under
subsection (c) (or who is in receipt of such benefits on behalf of an-
other individual), because of the occurrence of an event specified there-
in, who fails to report such occurrence to the Secretary prior to the
receipt and acceptance of an insurance benefit for the second month
following the month in which such event occurred, shall suffer de-
ductions in addition to those imposed under subsection (c) as follows:
(1) if such failure is the first one with respect to which an
additional deduction is imposed by this subsection, such addi-
tional deduction shall be equal to his benefit or benefits for the
first month of the period for which there is a failure to report even
though such failure is with respect to more than one month;
(2) if such failure is the second one with respect to which an
additional deduction is imposed by this subsection, such additional
deduction shall be equal to two times his benefit or benefits for the
first month of the period for which there is a failure to report even
though such failure is with respect to more than two months; and
(3) if such failure is the third or a subsequent one for which
an additional deduction is imposed under this subsection, such
additional deduction shall be equal to three times his benefit or
benefits for the first month of the period for which there is a
failure to report even though the failure to report is with respect
to more than three months;
1 Subparagraph (D) was added by sec. 301(c)(1) of Public Law 95-216. See also sec.
301 (c) (2) of Public Law 95-216 which is printed In this document on p. 805.


Sec. 203(g)





Revised April 1978


except that the number of additional deductions required by this sub-
section shall not exceed the number of months in the period for which
there is a failure to report. As used in this subsection, the term "period
for which there is a failure to report" with respect to any individual
means the period for which such individual received and accepted in-
surance benefits under section 202 without making a timely report and
for which deductions are required under subsection (c).
Report of Earnings to Secretary
(h) (1) (A) If an individual is entitled to any monthly insurance
benefit under section 202 during any taxable year in which he has
earnings or wages, as computed pursuant to paragraph (5) of subsec-
tion (f), in excess of the product of the applicable exempt amount as
determined under subsection (f) (8) times the number of months
in such year, such individual (or the individual who is in receipt of
such benefit on his behalf) shall make a report to the Secretary of
his earnings (or wages) for such taxable year. Such report shall
be made on or before the fifteenth day of the fourth month following
the close of such year, and shall contain such information and be made
in such manner as the Secretary may by regulations prescribe. Such
report need not be made for any taxable year (i) beginning with or
after the month in which such individual attained age 70,1 or (ii) if
benefit payments for all months (in such taxable year) in which such
individual is under age 70 1 have been suspended under 'the provisions
of the first sentence of paragraph (3) of this subsection. The Secretary
may grant a reasonable extension of time for making the report of
earnings required in this paragraph if lhe finds that there is valid rea-
son for a delay, but in no case may the period be extended more than
three months.2
(B) If the benefit payments of an individual have been suspended
for all months in any taxable year under the provisions of the first
sentence of paragraph (3) of this subsection, no benefit payments shall
be made to such individual for any such month in such taxable year
after the expiration of the period of three years, three months, and
fifteen days following the close of such taxable year unless within
such period the individual, or some other person entitled to benefits
under this title on the basis of the same wages and self-government
income, files with the Secretary information showing that a benefit
for such mouth is payable tosuch individual.
(2) If an individual fails to make a report required under para-
graph (1), within the time pI)rescril)bed 1by or in accordance with such
paragraph, for any taxable year and ainn deduction is imposed under
I .pe. .102(c) of Public Law 95-216 clianygd "72" to "70" effective for taxable years
P i.nllnri n fter I)P..1. 1P1 9 -1
2 Sii.nljrna rnlh (A) wn i alo ampnild I see. 301(d) of Public Law 95-216.


Sec. 203(g)


79-A





Revised April 1978


subsection (b) by reason of his earnings for such year, he shall suffer
additional deductions as follows:
(A) if such failure is the first one with respect to which an
additional deduction is imposed under this paragraph, such addi-
tional deduction shall be equal to his benefit or benefits for the
last month of such year for which he was entitled to a benefit
under section 202, except that if the deduction imposed under sub-
section (b) by reason of his earnings for such year is less than
the amount of his benefit (or benefits) for the last month of
such year for which he was entitled to a benefit under section 202,
the additional deduction shall be equal to the amount of the deduc-
tion imposed under subsection (b) but not less than $10;
(B) if such failure is the second one for which an additional
deduction is imposed under this paragraph, such additional de-
duction shall be equal to two times his benefit or benefits for the
last month of such year for which he was entitled to a benefit
under section 202;
(C) if such failure is the third or a subsequent one for which
an additional deduction is imposed under this paragraph, such
additional deduction shall be equal to three times his benefit or
benefits for the last month of such year for which he was entitled
to a benefit under section 202;
except that the number of the additional deductions required by this
paragraph with respect to a failure to report earnings for a taxable
year shall not exceed the number of months in such year for which
such individual received and accepted insurance benefits under section
202 and for which deductions are imposed under subsection (b) by
reason of his earnings. In determining whether a failure to report
earnings is the first or a subsequent failure for any individual, all
taxable years ending prior to the imposition of the first additional
deduction under this paragraph, other than the latest one of such
years, shall be disregarded.
(3) If the Secretary determines, on the basis of information ob-
tained by or submitted to him, that it may reasonably be expected
that an individual entitled to benefits under section 202 for any tax-
able year will suffer deductions imposed under subsection (b) by
reason of his earnings for such year, the Secretary may, before the
close of such taxable year, suspend the total or less than the total
payment for each month in such year (or for only such months as the
Secretary may specify) of the benefits payable on the basis of such
individual's wages and self-employment income; and such suspension
shall remain in effect with respect to the benefits for any month until
the Secretary has determined whether or not any deduction is imposed
for such month under subsection (b). The Secretary is authorized,


See. 203(h)


79-B






Revised April 1978


before the close of the taxable year of an individual entitled to benefits
during such year, to request of such individual that he make, at such
time or times as the Secretary may specify, a declaration of his
estimated earnings for the taxable year and that he furnish to the
Secretary such other information with respect to such earnings as the
Secretary may specify. A failure by such individual to comply with
any such request shall in itself constitute justification for a deter-
mination under this paragraph that it may reasonably be expected
that the individual will suffer deductions imposed under subsection
(b) by reason of his earnings for such year. If, after the close of a
taxable year of an individual entitled to benefits under section 202
for such year, the Secretary requests such individual to furnish a
report of his earnings (as computed pursuant to paragraph (5) of
subsection (f)) for such taxable year or any other information with
respect to such earnings which the Secretary may specify, and the
individual fails to comply with such request, such failure shall in
itself constitute justification for a determination that such individual's
benefits are subject to deductions under subsection (b) for each month
in such taxable year (or only for such months thereof as the Secretary
may specify) by reason of his earnings for such year.
Circumstances Under Which Deductions and Reductions not Required
(i) In the case of any individual, deductions by reason of the provi-
sions of subsection (b), (c), (g), or (h) of this section, or the provi-
sions of section 222(b), shall, notwithstanding such provisions, be
made from the benefit to which such individual is entitled only to the
extent that such deductions reduce the total amount which would oth-
erwise be paid, on the basis of the same wages and self-employment
income, to such individual and the other individuals living in the
same household.
Attainment of Age Seventy1
(j) For the purposes of this section, an individual shall be con-
sidered as seventy years of age during the entire month in which he
attains such age.
Noncovered Remunerative Activity Outside the United States
(k) An individual shall be considered to be engaged in noncovered
remunerative activity outside the United States if he performs serv-
ices outside the United States as anll employee and such services do
not constitute employment as defined in section 210 and arc not per-
formed in the active military or naval service of tihe United States, or
if he carries on a trade or business outside the United States (other
SPee. 302 (a) and (d) changed "seventy-two" to "seventy" effective for taxable years
ending after Dec. ':1. 19.41.


Sec. 203(h)


79-C





Revised April 1978


than the performance of service as an employee) the net income or
loss of which (1) is not includible in computing his net earnings from
self:employment for a taxable year and (2) would not be excluded
from net earnings from self-employment, if carried on in the United
States, by any of the numbered paragraphs of section 211(a). When
used in the preceding sentence with respect to a trade or business
(other than the performance of service as an employee), the term
"United States" does not include the Commonwealth of Puerto Rico,
the Virgin Islands, Guam, or American Samoa in the case of an alien
who is not a resident of the United States (including the Common-
wealth of Puerto Rico, the Virgin Islands, Guam, and American Sa-
moa) and the term "trade or business" shall have the same meaning
as when used in Section 162 of the Internal Revenue Code of 1954.

Good Cause for Failure To Make Reports Required
(1) The failure of an individual to make any report required by sub-
section (g) or (h) (1) (A) within the time prescribed therein shall not
be regarded as such a failure if it is shown to the satisfaction of the
Secretary that he had good cause for failing to make such report
within such time. The determination of what constitutes good cause
for purposes of this subsection shall be made in accordance with regu-
lations of the Secretary.

Overpayments and Underpayments
Sec. 204. (a) Whenever the Secretary finds that more or less than
the correct amount of payment has been made to any person under
this title, proper adjustment or recovery shall be made, under regu-
lations prescribed by the Secretary, as follows:
(1) With respect to payment to a person of more than the correct
amount, the Secretary shall decrease any payment under this title
to which such overpaid person is entitled, or shall require such over-
paid person or his estate to refund the amount in excess of the correct
amount, or shall decrease any payment under this title payable to his
estate or to any other person on the basis of the wages and self-employ-
ment income which were the basis of the payments to such overpaid
person, or shall apply any combination of the foregoing. A payment
made under this title on the basis of an erroneous report of death by
the Department of Defense of an individual in the line of duty while
he is a member of the uniformed services (as defined in section 210
(m)) on active duty (as defined in section 210(1)) shall not be con-
sidered an incorrect payment for any month prior to the month such
Department notifies the Secretary that such individual is alive.


79-D


Sec. 204(a)





Revised April 1978


(2) With respect to payment to a person less than the correct
amount, the Secretary shall make payment of the balance of the
amount due such underpaid person, or, if such person dies before
payments are completed or before negotiating one or more checks
representing correct payments, disposition of the amount due shall be
made in accordance with subsection (d).
(b) In any case in which more than the correct amount of payment
has been made, there shall be no adjustment of payments to, or recov-
ery by the United States from, any person who is without fault if
such adjustment or recovery would defeat the purpose of this title or
would be against equity and good conscience.
(c) No certifying or disbursing officer shall be held liable for any
amount certified or paid by him to any person where the adjustment
or recovery of such amount is waived under subsection (b), or where
adjustment under subsection (a) is not completed prior to the death
of all persons against whose benefits deductions are authorized.
(d) If an individual dies before any payment due him under this
title is completed, payment of the amount due (including the amount
of any unnegotiated checks) shall be made-
(1) to the person, if any, who is determined by the Secretary
to be-the surviving spouse of the deceased individual and who
either (i) was living in the same household with the deceased at
the time of his death or (ii) was, for the month in which the
deceased individual died, entitled to a monthly benefit on the basis
of the same wages and self-employment income as was the de-
ceased individual;
(2) if there is no person who meets the requirements of para-
graph (1), or if the person who meets such requirements dies
before the payment due him under this title is completed, to the
child or children, if any, of the deceased individual who were, for
the month in which the deceased individual died, entitled to
monthly benefits on the basis of the same wages and self-employ-
ment income as was the deceased individual (and, in case there
is more than one such child, in equal parts to each such child) ;
(3) if there is no person who meets the requirements of para-
graph (1) or (2), or if each person who meets such requirements
dies before the payment due him under this title is completed,
to the parent or parents, if any, of the deceased individual who
were, for the month in which the deceased individual died, en-
titled to monthly benefits on the basis of the same wages and self-
employment income as was the deceased individual (and, in case
there is more than one such parent, in equal parts to each such
parent);


Sec. 204(a)


79-E






Revised April 1978


(4) if there is no person who meets the requirements of para-
graph (1), (2), or (3), or if each person who meets such require--
ments dies before the payment due him under this title is com-
pleted, to the person, if any, determined by the Secretary to be
the surviving spouse of the deceased individual;
(5) if there is no person who meets the requirements of para-
graph (1), (2), (3), or (4), or if each person who meets such
requirements dies before the payment due him under this title is
completed, to the person or persons, if any, determined by the
Secretary to be the child or children of the deceased individual
(and, in case there is more than one such child, in equal parts to
each such child);
(6) if there is no person who meets the requirements of para-
graph (1), (2), (3), (4), or (5), or if each person who meets such
requirements dies before the payment due him under this title
is completed, to the parent or parents, if any, of the deceased in-
dividual (and, in case there is more than one such parent, in equal
parts to each such parent); or
(7) if there is no person who meets the requirements of para-
graph (1), (2), (3), (4), (5), or (6), or if each person who meets
such requirements dies before the payment due him under this
title is completed, to the legal representative of the estate of the
deceased individual, if any.
Evidence, Procedure, and Certification for Payment
Sec. 205. (a)-The Secretary shall have full power and authority to
make rules and regulations and to establish procedures, not inconsist-
ent with the provisions of this title, which are necessary or appropri-
ate to carry out such provisions, and shall adopt reasonable and
proper rules and regulations to regulate and provide for the nature
and extent of the proofs and evidence and the method of taking and
furnishing the same in order to establish the right to benefits here-
under.
(b) The Secretary is directed to make findings of fact, and decisions
as to the rights of any individual applying for a payment under this
title. Upon request by any such individual or upon request by a wife,
divorced wife, widow, surviving divorced wife, surviving divorced
mother, husband, widower, child, or parent who makes a showing in
writing that his or her rights may be prejudiced by any decision the
Secretary has rendered, he shall give such applicant and such other
individual reasonable notice and opportunity for a hearing with re-
spect to such decision, and, if a hearing is held, shall, on the basis of


21-746 0 78 -7


79-F


Sec. 205(b)






Revised April 1978


evidence'adduced at the hearing, affirm, modify, or reverse his findings
of fact and such decision. Any such request with respect to such a de-
cision must be filed within sixty days after notice of such decision
is received by the individual making such request. The Secretary
is further authorized, on his own motion, to hold such hearings and to
conduct such investigations and other proceedings as hlie may deem
necessary or proper for the administration of this title. In the course
of any hearing, investigation, or other proceeding, he may administer
oaths and affirmations, examine witnesses, and receive evidence. Evi-
dence may be received at any hearing before the Secretary even
though inadmissible under rules of evidence applicable to court
procedure.1
(c) (1) For the purposes of this subsection-
(A) The term "year" means a calendar year when used with
respect to wages and a taxable year when used with respect to self-
employment income.2
(B) The term "time limitation" means a period of three years,
three months, and fifteen days.
(C) The term "survivor" means an individual's spouse, sur-
viving divorced wife, surviving divorced mother, child, or parent,
who survives such individual.
(D) The term "period" when used with respect to self-employ-
ment income means a taxable year and when used with respect to
wages means-
(i) a quarter if wages were reported or should have been
reported on a quarterly basis on tax returns filed with the
Secretary of the Treasury or his delegate under section 6011
of the Internal Revenue Code of 1954 or regulations there-
under (or on reports filed by a State under section 218(e) or
regulations there under),
(ii) a year if wages were reported or should have been
reported on a yearly basis on such tax returns or reports, or
(iii) the half year beginning January 1 or July 1 in the
case of wages which were reported or should have been
reported for calendar year 1937.3
(2) (A) On the basis of information obtained by or submitted to the
Secretary, and after such verification thereof as he deems necessary,
the Secretary shall establish and maintain records of the amounts of
wages paid to, and the amounts of self-employment income derived
by, each individual and of the periods in which such wages were paid
and such income was derived and, upon request, shall inform any in-
1 The third sentence of section 205(b) was amended by section 4 of Public Law 94-202
effetivr .Mair. 1. 1976. Prior to that date, the appeal period is six months.
2 Sihiaraprah (A) was amended by see. 353(f) (2) (A) of Public Law 95-216.
Sibhpnrigraph i D) was added by sec. 353(f) (2) (B) of Public Law 95-216.


Sec. 205(b)


79-G






Revised April 1978


dividual or his survivor, or the legal representative of such individual
or his estate, of the amounts of wages and self-employment income of
such individual and the periods during which such wages were paid
and such income was derived, as shown by such records at the time of
such request.
(B) (i) In carrying out his duties under subparagraph (A), the
Secretary shall take affirmative measures to assure that social security
account numbers will, to the maximum extent practicable, be assigned
to all members of appropriate groups or categories of individuals by
assigning such numbers (or ascertaining that such numbers have al-
ready been assigned) :
(I) to aliens at the time of their lawful admission to the United
States either for permanent residence or under other authority
of law permitting them to engage in employment in the United
States and to other aliens at such time as their status is so changed
as to make it lawful for them to engage in such employment;
(II) to any individual who is an applicant for or recipient of
benefits under any program financed in whole or in part from
Federal funds including any child on whose behalf such benefits
are claimed by another person; and
(III) to any other individual when it appears that he could
have been but was not assigned an account number under the pro-
visions of subclauses (I) or (II) but only after such investiga-
tion as is necessary to establish to the satisfaction of the Secretary,
the identity of such individual, the fact that an account number
has not already been assigned to such individual, and the fact that
such individual is a citizen or a noncitizen who is not, because of
his alien status, prohibited from engaging in employment;
and, in carrying out such duties, the Secretary is authorized to take
affirmative measures to assure the issuance of social security numbers:
(IV) to or on behalf of children who are below school age at
the request of their parents or guardians; and
(V) to children of school age at the time of their first enroll-
ment in school.
(ii) The Secretary shall require of applicants for social security
account numbers such evidence as may be necessary to establish the age,


79-H


Sec. 205(c)






Sec. 205(c)


citizenship, or alien status, and true identity of such applicants, and to
determine which (if any) social security account number has previ-
ously been assigned to such individual.
(iii) In carrying out the requirements of this subparagraph, the Sec-
retary shall enter into such agreements as may be necessary with the
Attorney General and other officials and with State and local wel-
fare agencies and school authorities (including non-public school
authorities).
(C) (i) It is the policy of the United States that any State (or
political subdivision thereof) may, in the administration of any tax,
general public assistance, driver's license, or motor vehicle registration
law within its jurisdiction, utilize the social security account numbers
issued by the Secretary for the purpose of establishing the identifica-
tion of individuals affected by such law, and may require any individ-
ual who is or appears to be so affected to furnish to such State (or
political subdivision thereof (or any agency thereof having adminis-
trative responsibility for the law involved, the social security account
number (or numbers, if he has more than one such number) issued to
him by the Secretary.
(ii) If and to the extent that any provision of Federal law hereto-
fore enacted is inconsistent with the policy set forth in clause (i) of
this subparagraph, such provision shall, on and after the date of the
enactment of this subparagraph, be null, void, and of no effect.
(iii) For purposes of clause (i) of this subparagraph, an agency of
a State (or political subdivision thereof) charged with the adminis-
tration of any general public assistance, driver's license, or motor
vehicle registration law which did not use the social security account
number for identification under a law or regulation adopted before
January 1, 1975, may require an individual to disclose his or her social
security number to such agency solely for the purpose of administer-
ing the laws referred to in clause (i) above and for the purpose of
responding to requests for information from an agency operating pur-
suant to the provisions of part A or D of title IV of the Social Security
Act.
(iv) For purposes of thisdsubparagraph, the term "State" includes
the District of Columbia, the Commonwealth of Puerto Rico, the Vir-
gin Islands, Guam, the Commonwealth of the Northern Marianas,
and the Trust Territory of the Pacific Islands.1
(3) The Secretary's record shall be evidence for the purpose of pro-
ceedings before the Secretary or any court of the amounts of wages
paid to, and self-employment income derived by, an individual and of
the periods in which such wages were paid and such income was de-
SSiitimragraphi (C) was added by section 1211(b) of Public Law 94-455.