The Social security act and related laws including amendments through January 2, 1976

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Title:
The Social security act and related laws including amendments through January 2, 1976
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Laws, etc
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vii, 744, iv p. : ; 24 cm.
Language:
English
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United States
United States -- Congress. -- Senate. -- Committee on Finance
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U.S. Govt. Print. Off.
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Washington
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Social security -- Law and legislation -- United States   ( lcsh )
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federal government publication   ( marcgt )
bibliography   ( marcgt )
non-fiction   ( marcgt )

Notes

Bibliography:
Includes bibliographical references.
Statement of Responsibility:
Committee on Finance, United States Senate, Russell B. Long, chairman.
General Note:
CIS Microfiche Accession Numbers: CIS 76 H782-7
General Note:
At head of title: 94th Congress, 2d session. Committee print.
General Note:
Issued Feb. 1, 1976.
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Reuse of record except for individual research requires license from LexisNexis Academic & Library Solutions.
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Information incorrect in publication as to sale by Supt. of Docs.

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University of Florida
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All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 024412166
oclc - 02029556
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lcc - KF49
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AA00025916:00001

Full Text








95th Congress }
1st Session COMMITTEE PRINT




First Set of Revised Pages to The

SOCIAL SECURITY ACT
and Related Laws
(As Amended Through December 31, 1976)



COMMITTEE ON FINANCE UNITED STATES SENATE
RUSSELL B. LONG, Chairman






APRIL 21, 1977


Printed for the use of the Committee on Finance

U.S. GOVERNMENT PRINTING OFFICE 87-4030 WASHINGTON : 1977




















Revised Pages to: The Social Security Act and Related Laws
(As Amended Through December 31, 1976)
First Set of Revised Pages (April 1977)
The first set of revised pages to the committee print containing the Social Security Act and related laws reflects tie amendments made by Public Law 95-19 (Emergency Unemployment Compensation Extension Act of 1977) and also includes the changes made by Public Law 94-460, which was inadvertently omitted from the last printing. The pages of the basic print which are affected by this revision are: Pages Revised: Pages Added:
495-502 502(a)
531-532 532 (a)-532 (c)
632 644(a)
640-644 710 (a)-710(b)
659 795
703-710
713-714
791 794
App. A, p. (ii)








94th Congress I COMmITTEE PRINT 2d Session J






The

SOCIAL SECURITY ACT

and Related Laws

(Including Amendments Through January 2, 1976)




COMMITTEE ON FINANCE UNITED STATES SENATE

RUSSELL B. LONG, Chairman











FEBRUARY 1, 1976






Printed for the use of the Committee on Finance


U.S. GOVERNMENT PRINTING OFFICE 64-3100 WASHINGTON : 1976

For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 Price $5.
















COMMITTEE ON FINANCE
RUSSELL B. LONG, Louisiana, Chairman HERMAN TALMADGE, Georgia CARL T. CURTIS, Nebraska
VANCE HARTKE, Indiana PAUL J. FANNIN, Arizona
ABRAHAM RIBICOFF, Connecticut CLIFFORD P. HANSEN, Wyoming
HARRY F. BYRD, JR., Virginia ROBJDRT DOLE, Kansas
GAYLORD NELSON, Wisconsin BOB PACKWOOD, Oregon
WALTER F. MONDALE, Minnesota WILLIAM V. ROTH, JR., Delaware
MIKE GRAVEL, Alaska BILL BROCK, Tennessee
LLOYD BENTSEN, Texas 'WILLIAM D. HATHAWAY, Maine FLOYD K. HASKELL, Colorado
MICHAEL STERN, Staff Director DONALD V. MOOREHEAD, Chief Minority (ounsel
(Ix)










PREFACE
Since the 92d Congress, numerous laws have been enacted amending 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 January 2, 1976. Also included are the full text of the Federal-State Extended Unemployment Compensation Act, as amended, 'and the Emergency Unemployment Compensation Act of 1974, 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 Secu7ity 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 containing 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.
(M)


















Digitized by the Internet Archive

in 2013













http://archive.org/details/socrityac00unit












CONTENTS


SOCIAL SECURITY ACT AS AMENDED:
Title I-Grants to States for Old-Age Assistance and Med- Page
ical Assistance for the Aged -----------------------A I
Title II-Federal Old-Age, Survivors, and Disability Insurance Benefits ---------------------------------15
Title III-Grants to States for Unemployment Compensation Administration -----------------------------201
Title IV-Grants to States for Aid and Services to Needy
Families with Children and for Child Welfare Services_ 205
Title V-Maternal and Child Health and Crippled Children's Services ---------------------------------- 255
Title VI-[Repealed effective Oct. 1, 1975] ---------------267
Title VII-Administration --------------------------269
Title VIII-Taxes With Respect to Employment (superseded by Chapter 21 of the Internal Revenue Code of
1954) --- --------------------------------------274
Title IX-Miscellaneous Provisions Relating to Employment Security ----------------------------------275
Title X-Grants to States for Aid to the Blind -----------291
Title XI-General Provisions and Professional Standards
Review --------------------------------------- 301
Title XII-Advances to State Unemployment Funds -----343
Title XIII-Reconversion Unemployment Benefits for Seamen (the provisions of this title have expired) ---------345
Title XIV-Grants to States for Aid to the Permanently
and Totally Disabled -----------------------------347
Title XV-[Repealed] (See chapter 85, title 5, U.S.C.)___ 355
Title XVI-Grants to States for Aid to the Aged, Blind,
or Disabled, or for Such Aid and Medical Assistance for
the Aged ---- ---------------------------------- 357
Title XVI-Supplemental Security Income for the Aged,
Blind, and Disabled -----------------------------373
Title XVII-Grants for Planning Comprehensive Action
to Combat Mental Retardation ---------------------395
Title XVIII-Health Insurance for the Aged and Disabled -----------------------------------------397
V)






Title XIX-Grants to States for Medical Assistance Pro- page
grams ------------------------------------------499
Title XX-Grants to States for Services ----------------533
Selected Provisions of the Internal Revenue Code of 1954: Subtitle A-Income Taxes:
Chapter 1-Normal Taxes and Surtaxes ------------547
Subchapter A, Part IV, Subpart A--Credits
Allowable --------------------------------547
Sect ion 40-Expenses of Work Incentive
Programs -----------------------------547
Section 43-Earned Income ----------------547
Subpart C-Rules for Computing Credit for Expenses of
Work Incentive Programs -------------------------549
Section 50A ------------------------------------549
Section 50B------------------------------------ 552
Subchapter B, Part VI-Itemized Deductions for Individuals and Corporations ---------------------------555
Section 188-Amortization of Certain Expenditures
for On-the-Job Training and Child Care Facilities- 555
Section 214-Household and Dependent Care Services
Necessary for Gainful Employment ---------------556
Chapter 2-Tax on Self-Employment Income --------558
Subtitle C-Employment Taxes:
Chapter 21-Federal Insurance Contributions Act ---- 571 Chapter 22-Railroad Retirement Tax Act__- 604
Chapter 23-Federal Unemployment Tax Act ---------615
Chapter 25-General Provisions Relating to Employment Taxes -----------------------------------645
Subtitle F-Procedure and Administration:
Chapter 61-Information and Returns --------------645
Chapter 62-Time and Place for Paying Tax --------654 Chapter 63-Assessments -------------------------655
Chapter 64-Collection ---------------------------657
Chapter 65-Abatements, Credits and Refunds -------660 Chapter 66-Limitations --------------------------666
Chapter 67-Interest ---------------------------- 670
Chapter 68--Additions to the Tax, Additional
Amounts, and Assessable Penalties ----------------671
Chapter 75-Crimes, Other Offenses, and Forfeitures- 676
Chapter 78-Discovery of Liability and Enforcement of Title ---------------------------------678
Chapter 79-Definitions --------------------------680
Chapter 80-General Rules -----------------------680
Selected Unemployment Insurance Laws:
Emergency Unemployment Compensation Act of 1974 ---- 683
Federal-State Extended Unemployment Compensation
Act, as amended ----------------------------------691
Excerpt from Public Law 93-618, the Trade Act of 1974,
(Adj listmnent Assistance for Workers) -----------------698
(VI)





VII

Excerpts from Public Laws related to the Social Security Act: Page
Public Law 93-66, as amended ------------------------ 713
Public Law 93-233, as amended ------------------------ 721
Public Law 93-368 --------------------------------- 729
Public Law 93-480 --------------------------------- 729
Public Law 93-647, as amended ----------------------- 729
Public Law 94-12 ---------------------------------- 731
Public Law 94-45 ---------------------------------- 733
Public Law 94-88 ---------------------------------- 736
Public Law 94-164 --------------------------------- 738
Public Law 94-182 --------------------------------- 739
Public Law 94-202 --------------------------------- 742
Appendix:
A-Amending Legislation--------------------------- (i)
B-Social Security Taxes -------------------------- (iii)
















SOCIAL SECURITY ACT, AS AMENDED SAN 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 Representatives8 of the United States of America in Congress assembled,

TITLE I-GRANTS TO STATES FOR OLD-AGE ASSISTANCE AND MEDICAL ASSISTANCE FOR THE AGED 1
Page'2
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 mnedical 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 encouraging 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 selfcare, there is hereby authorized to be appropriated for each fiscal year a sumn 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 assist1P.L. 92-603, see. 303, repealed title I effective January 1, 1974, but such, repeal does not apply to Puerto Rico, Guam, and the Virgin Islands. 2 This table of contents does not appear in the law.





Sec. 2(a) 2

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 respect to services, provide that it shall be in effect in all political subdivisions of the State, and, iif administered by them, be mandatory 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 assistance under the plan is denied or is not acted upon with reasonable 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 personnel 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 particular emphasis on the full-time or part-time employment of recipients 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 the 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;






3 See. 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 plain shall have opportunity to do so, and that such assistance shall be, furnished with reasonable promptntess, 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 assistance, 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 objectives of this title, for determining eligibiltiy for and the
extent of such assistance; and
(C) provide a descriptions -of the -services (if any) which
the State agency makes available (using whatever internal organizational arrangement it finds appropriate for this purpose) to applicants for and recipients -.f such assistance to help them attain self -care, including a, description of the steps taken to assure, in the provision of such services, maximum utilization of other agencies providing similar or related 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) 4

(C) provide for inclusion, to the extent required by regulations prescribed by th.-_ 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 objectives of this title, for determining eligibility for and the
extent of such assistance; and
(E) provide that no lien may be imposed against the property of any individual prior to his death on account of medical 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 individual), 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 individual 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 alternate methods of care, arrangements providing assurance of immediate readmittance to institutions where needed for individuals 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 be 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 determination of his need for continued treatment in the
institution;
(C) provide for the development of alternate plans of
care, making maximum utilization of available resources, for recipients who would otherwise need care in such institutions, including appropriate medical treatment and other assistance; for services referred to in section 3 (a) (4) (A) (i) and (ii) which are appropriate for such recipients and for such






5 See. 3(a)

patients; and for methods of administration necessary to assure 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 implementing a comprehensive mental health program, including provision for -,utilization of community mental health centers, nursing homes, and other alternatives to care in public institutions for mental diseases.
(b) The Secretary shall approve any plan which fulfills the conditions 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 applicants 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 application, 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 therefor, the Secretary of the Treasury shall pay to each State which has 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 under the State plan (including






Sec. 3(a) 6

expenditures for premiums -under part B of title XVIII for individuals who are recipients of inoney payments under such plan and other insurance premiums for medical or any other type of
remedial care or the cost thereof)
(A) 31/37 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 form of
medical or any other type of remedial care) ; plus
(B) the larger of the following:
(i) (1) the Federal percentage (as defined in section
1101 (a) (8) ) of the amount by which such expenditures exceed the amount which may be counted under clause (A), not counting so much of such excess with respect to such month as exceeds the product of $38 multiplied by the total number of recipients of old-age assistance for such month, plus (11) 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 inuchof such expenditure with respect to such month as exceeds the product of $15 multiplied by the total number of recipients of old-age assistance for such month, or
(ii) (1) the Federal medical percentage (as' defined
in section 6 (c) ) of the amount by which such expenditures 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 medical 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 (11) the Federal percentage of the amount by which the total expended during such month as old-tage 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






7 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) inthe 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 (including 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 toany month as exceeds (1) the product of $45 multiplied by the total number of such recipients of old-age assistance for such month, or (11) 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 oldage 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 recipients 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 insurance premiums for medical or any othertype 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 (e) (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) 8

(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 applicants or recipients, or
(ii) any of the services prescribed pursuant to subsection (c) (1), and of the services specified as provided in clause (ii), which the Secretary may specify as appropriate 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 individuals and are provided to such individuals in accordance
with the next sentence, or
(iv) the training (including both short- and longterm training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled in such institutions) of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision; plus
(B) one-half of so much of such expenditures (not included -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 political subdivision: Provided, That no funds authorized under this title shallbe available for services defined as vocational rehabilitation services under the Vocational Rehabilitation Act (i) which are available to individuals in need of them under programs for their rehabilitation carried on under a State plan approved under such Act, or (ii) which the State agency or agencies administering or supervising the administration of the State plan approved under such Act, are able






See. 3(b)

and willing to provide if reimbursed for the cost thereof pursuant to agreement tinder 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 reasonably 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 appropriate (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 administration of the State plaii for vocational rehabilitation services so approved. The portion of the amount expended for administration 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 procedures 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 during 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 sball,
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, expended in such quarter in accordance with the provisions of such subsection, and stating the amount appropriated or made'avallable by the State and its political subdivisions for such expenditures in such quarter, and if such amount is less than the State's proportionate share of the total sum of such estimated expendi64-310 0 76 2






Sec. 3(c) 10

tures, the source or sources from which the difference is expected to be derived, (B) records showing the number of aged individuals in the State, and (C) such other investigation as the Secretary 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 under subsection (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 quarter 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 paragraph (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 hearing to the State agency administering or supervising the administration of such plan, that. (A) the provision has been so changed that it no longer complies with the requirements of paragraph (1), or





11 Sec. 4

(B) in the administration of the plan there is a failure to comply substantially with such provision, I
the Secretary shall notify such State agency that further payments
Iill 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 respect 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 pro visions of this-title, under paragraph of such subsection.
(d) Notwithstanding the preceding provisions of this section, the amount determined under such provisions for any State for any quarter 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 expenditures in the State from Federal, State, and local sources for mental health services (including payments to or in behalf of individuals with mental health problems) under State and local public health and public welfare programs for such quarter exceed the average of the total e*penditures- 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 ofthis subsection, expenditures for such services for each quarter in the fiscaI year ending June 30, 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 first determination by him under this subsection for such State; and expenditures for such service's for any quarter beginning after December 31, 1965, in the' 'case of anv 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 Secretar, y of Realth, 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 requirement is imposed, with the knowledge of such'State agency,
in a substantial number of cases; or






Sec. 5 12

(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 assistancel) means money payments to, or (if provided in or after the third month before the month in which the r 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 payinents 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 meaning of such term under the preceding sentence, but which would be so included except that they are made on behalf of such a.,needy individual 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 tinder section 2 includes provision for
(1) determination by the State agency that such needy individual has, 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 payments only on cases in which such payments will, tinder the rules otherwise applicable under the State p1an for determining need and the amount of old-agge assistance to be paid (and in conjunction with other income and resources),






Id "
Sec. 6(b)

meet all the need of the individuals with respect to whom such
payments are made;
(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 payinents if they do not and for seeking judicial appointment of a guardian or other legal representative, as described in section 11117 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 provides), such term (i) need not include money payments to an' individual who has been absent from such State for a period in excess of 90 consecutive days (regardless of whether he has maintained his resi(fence 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 assistance 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 individuals 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;






See. 6(c) 14

(9) laboratory and X-ray services
(10) prescribed drugs, eyeglasses, dentures, and prosthetic devices
(11) diagnostic, screening, and preventive services; and
(12) any other inedical 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 percentage" 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 capita income of such State bears to the square of the per capita 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, 19611 which promulgation shall be based on the same data with respect to per capita 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 percentage 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 capita 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 promulgation of the Federal medical percentage shall be conclusive
for such period).
















T TLE 11-FEDERAL OLD-AGE., SURVIVORS, AND DISABIELITY INSURANCE BENEFITS

SEC. 201. Federal OId-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
(1) 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
(e) Husband's Insurance Benefits -------------------------------- 29
(d) Child's Insurance Benefits ------------------------------------ 30
(e)'Widow's Insurance Benefits ---------------------------------- 36
(f) Widower's Insurance Benefits --------------------------------- 38
(g) Mother's Insurance Benefits -------------------- I ----------------- 42
(h) Parent's Insurance Benefits ---------------------------------- 43
(i) Lump-sum Death Payments ----------------------------------- 45
(j) Application for Monthly Insurance Benefits; Retroactive Effect
of Application; Waiver of Entitlement --------------------- 46
(k) Simultaneous Entitlement to More Than One Type of Insurance
Benefit -------------------------------------------------- 47
(1) Effect of Entitlement to Survivor Benefits Under Railroad Retirement Act ---------------------------------------------- 49
(m) Minimum Survivor's Benefit ---------------------------------- 49
(n) Termination of Benefits Upon Deportation of Primary Beneficiary ----------------------- 7 ---------------------------- 50
(o) Application for Benefits by Survivors of Members and Former
Members of the Uniformed Services ------------------------- 50
(p) Extension of Period for Filing Proof of Support and Applications for Lump-Sum Death Payment ------------------- 1----- 51
(q) Reduction of Benefit Amounts for Certain Beneficiaries -------- 51
(r) Presumed Filing of Application by Individuals Eligible for OldAge Insurance Benefits and for Wife's or Husband's Insurance
Benefits ------------------------------------------------- 57
(s) Child Aged 18 or Over Attending School ----------------------- 57
(t) Suspension of Benefits of Aliens Who Are Outside the United
States --------------------------------------------------- 58
(u) Effect of Conviction of Subversive Activities, etc -------------- 60
(v) Waiver of Benefits ------------------------------------------- 61
(w) Increase in Old-Age Insurance Benefit Amounts on Account of
Delayed Retirement --------------------------------------- 61
SEC. 203. Reduction of Insurance Benefits --------- ------------------- 62
(a) Maximum Benefits Payable ----------------------------------- 62
(b) Deductions on Account of Work ------------------------------ 65
(c) Deductions on Account of Noncovered Work Outside the U.S.;
Failure To Have Child in 66

This table of contents does not appear in the law.







16

SEC. 203. Reduction of Insurance Benefits-Contined
(d) Deductions From Dependents' Benefits on Account of Old-Age Page
Insurance Beneficiary's Noncovered Work Outside the U.S____ 67
(e) Occurrence of More Than One Event -------------------------- 67
(f) Months to Which Earnings Are Charged ----------------------- 68
(g) Penalty for Failure To Report Certain Events ----------------- 72
(h) Ret)ort of Earnings to Secretary ------------------------------ 73
(i) Circumstances Under Which Deductions and Reductions Not
Required ------------------------------------------------ 75
(j) Attainment of Age 72 ---------------------------------------- 75
(k) Noncovered Remunerative Activity Outside the United States_ 75
(1) Good Cause for Failure To Make Reports Required -------------- 76
SEC. 204. Overpayments and Underpayments --------------------------- 76
(a) Adjustment of Errors in Payments ---------------------------- 76
(b) When Adjustment or Recovery of Overpayment Not Made ------ 76
(c) Nonliability of Certifying or Disbursing Officer ------------------ 76
(d) Special Rules Regarding Underpayments ---------------------- 77
SEC. 205. Evidence, Procedure, and Certifleation for Payment ---------- 78
(a) Authority of Secretary To Make Rules and Regulations To Carry
Out Provisions of Title II --------------------------------- 78
(b) Decisions by Secretary Regarding Rights of Claimants --------- 78
(e) Earnings Records Maintained by Secretary; Time Limitation for
Revisions ------------------------------------------------ 78
(d) Authority of Secretary To Issue Subpenas --------------------- 83
(e) Contumacy or Failure To Obey Subpena ----------------------- 83
(f) [Repealed.]
(g) Review of Secretary's Decision by Court ----------------------- 83
(h) Finality of Secretary's Decision ------------------------------ 84
(i) Certification by Secretary for Payment ------------------------ 84
(j) Authority of Secretary To Certify Payment of Benefits to Someone Other Than the Beneficiary ---------------------------- 85
(k) Settlement of Claims of Incompetents ------------------------ 85
(1) Authority of Secretary To Delegate Powers -------------------- 85
(in) [Repealed.
(n) Joint Payment of Benefits ------------------------------------ 85
(o) Crediting of Compensation Under the Railroad Retirement Act-- 86 (p) Special Rules in Case of Federal Service. ---------------------- 86
(q) Expedited Benefit 'Payments ----------------------- ----------- 87
c. 206. Represent9tion of Claimants --------- 7 ----------------------- 88
(a) Representation Before Secretary; Fees for Services Before
Secretary ------------------------------------------------ 88
(b) Court Determination of Fees in Certain Cases --------------- 89
SEC. 207. Assignment ------------------------------------------------ 90
SEC. 208. Penalties -------------------------------------------------- 90
(a) False Statements To Obtain Increase in Benefits -------------- 90
(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 --------------------- 91
(e) Willful Conversion of Benefits by Representative Payee -------- 91
(f) Furnishing False Information To Obtain Social Security Account
Number ------------------------------------------------- 91
(g) Penalty for Furnishing False Social Security Number With Intent To Deceive ------------------------------------------- 91
SEC. 209. Definition of Wages ----------------------------------------- 92
(a) Remuneration Excluded ------------------------------------- 92
(b) Payments Under Plan or System Excluded -------------------- 93
(c) Retirement Pay Excluded ------------------------------- 93
(d) Sick Pay Excluded ------------------------------------------ 93
(e) Payments to or by Trust Exempt From Tax Under Internal
Revenue Code Excluded ------------------------------------ 93
(f) Payment of Employee Tax by Employer Excluded --------------- .94
(g) Payments in Kind and Certain Cash Payments for Domestic
Employment or Employment Not in Course of Employer's
Trade of Buriness Excluded ----------------------------- 94







17

SEc. 209. Definition of Wages-Continued page
(h) Remuneration for Agricultural Labor-When Excluded -------- 94
(i) Remuneration Paid After Retirement Age-When Excluded ---- 94
(j) Remuneration Paid to Homeworkers-When Excluded -------- 95
(k) Moving Expenses of Employees ------ ------------- 95
(1) Tips ------------------------------------------------------- 95
(m) Payments by Employer Upon or; After Termination of
Employment -------- W --- 1 -95
(n) Payments by Employer to Survivor of Estate Former
ployee --------------------------------------------------- 95
(o) Payments to Employee Entitled to Disability Insurance Benefits- 95 8 c. 210. Employment ----------------------------------------------- 96
(a) Employment; Excluded Employment Defined ----------------- 96
(b) Included and Excluded Service Performed During Pay Period-- 103 (c) American Vessel Defined ------------------------------------ 104
(d) American Aircraft Defined ------------- --------------------- 104
(e) American Employer Defined --- ------------ 7 ----------------- 104
(f) Agricultural Labor Defined-_-, ------------- r ------------------ 104
(g) Farm Defined ----------------------- ------------------------- 105
(h) State Defined --------------------- --------- ------------- 105
(i) United States Defined --------------------------------------- ]LO5
(j) Employee Defined -------------------------------- ------------- 105
(k) Covered Transportation Service Defined ----------------------- 106
(1) Service in the Uniformed Services Defined -------------------- 108
(in) Member of a Uniformed Service Defined ----------------------- log
(n) Crew Leader Defined ---------------------------------------- 110
(o) Peace Corps Volunteer Service --------------------------------- 110
SEc. 211. Self-Employment ------- -------------- --------------- 110
(a) Net Earnings From Self-Employment Defined ----------------- 110
(b) Self-Employment Income Defined ---------------------------- 114
(c) Trade or Business Defined ------------------- __.: ------------- 115
(d)' Partnership and Partner Defined ----------------------------- 117
(e) Taxable Year Defined ---------------------------------------- 117
(f), Computing Deceased's Net Earnings From Self-Employment
When Partnership Taxable Year Ends Because of Death----- 117
(g) Regular Basis ----------------------------------------------- 117
SEc. 212. Crediting of Self-Employment Income to Calendar Quarters_ 118
(a) Calendar, Taxable Year ---------- ----------------------------- 118
(b) Taxable Year Other Than a Calendar Year -------------------- 118
SE;c. 213. Quarter and Quarter of Coverage --------------------------- 118
(a) Definitions --------------------------------------- -------- 118
(b) Crediting of Wages Paid in 1937 ------------------------------ 120
(c) Alternative Method for Determining Quarters of Coverage for
1937 to 1950 ---------------------------------------------- 120
SEc. 214. Insured Status for Purposes of Old-Age and Survivors Insurance
Benefits ------------------------------------------------- 121
(a) Fully Insured Individual ------------------------------------- 121
(b) Currently Insured Individual ----------------------------- 121
SEc. 215. Computation of Primary Insurance Amount ------------------ 122
(a) Primary insurance Amount --------------------------------- I).2
(b) Average Monthly Wage -------------------------------------- 128
(c) Primary Insurance Amount Under Prior Provisions ------------ 129
(d) Primary Insurance Benefit Under 1939 Act ------------------ 130,
(e) Certain Wages and Self-Employment Income -14ot To Be
Counted -------------------------- ------------------------- 191
M Recomputation of Benefits ----------------------------- 131
(g) Rounding of Benefits --------------------------------------- 133
(h) Exclusion Under Certain Circumstances of Remuneration Paid
to Public Health Service Reserve Officer for Service Prior to
July 1, 1960 ---------------------------------------------- 1003
(i) Cost-of-Living Increases in Benefits -------------------------- 134
SEc. 216. Other Definitions -------------------------------------------- 137
(a) [Repealed.]
(b) Wife -------------------------------------------------------- 137
(c) Widow ----------------------------------------------------- 137
(d) Divorced Wives, Divorce ------------------------------------- 137







18

SEC. 216. Other Definitlons-Continued Page
(e) Child ------------------------------------------------------- 138
(f) Husband ----------------------------------------------------- 139
(g) Widower ----------------------- 139
-iK;i -------------------(h) Determination of Status as Wife, and, Widow, Widower,
Child, or Parent ------------------------------------------- 140
(j) Disability: Period of Disability ------------------------------- 143
(j) When Periods of Limitation End on Nonwork Days ------------- 146
(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 ----------------- -------------------- 146
SEc. 217. Benefits in Case of Veterans ---------------------------------- 147
(a) Wage Credits for World War II Service ----------------------- 147
(b) Insured Status of World War 11 Veterans Dying Within 3 Years
After Separation From Active Service ------------------------ 148
(c) Time for Parent of Deceased Veteran To File Proof of Support --- 149 (d) Definition of World War 11 and World War 11 Veteran ---------- 150 (e) Wage Credits for Military Service After World War 11 --------- 150
(f) Waiver of Rights to Civil Service Retirement Annuity by Widow
or Child as Condition of Entitlement to Social Security Benefits- 152
(g) Reimbursement of Trust Fund for Cost of Wag e Credits for
Certain Military Service ------------------------------------ 152
(h) Wage Credits for American Citizen's World War II Service in
Armed Forces of U.S. Allies ---------------------------------- 153
SEC. 218. Voluntary Agreements for Coverage of State and Local Employees -------------------------------------------------- 154
(a) Purpose of Agreement ---------------------------------------- 154
(b) Definitions of Terms ----------------------------------------- 154
(c) Services Covered ------- -------- -------------------------- 155
(d) Positions Covered by Retirement Systems ---------------------- 157
(e) Payments and Reports by States. ------------------------------ 163
(f) Effective Date of Agreement --------------------------------- 164
(g) Termination of Agreement ----------------------------------- 165
(h) Deposits in Trust Fund; Adjustments -------------------------- 166
(i) Purpose of Regulations Issued Under This Section ------------- 166
(j) Result of State Failure To Make Payme uts Required Under.
Agreement ------------------------------------------------ 167
(k) Instrumentalities of Two or More States ---------------------- 167
(1) Delegation of Functions -------------------------------------- 168
(in) Wisconsin Retirement Fund --------------------------------- 169
(n) Modification of Agreement To Apply to Certain Positions No
Longer Covered by Retirement Systems ----------------------- 169
(o) Modification of Agreement To Apply to Certain Employees, of the
State of Utah --------------------------------------------- 169
(p) Modification of Agreement To Apply to Policemen and Firemen 170
in Certain States ------------------------------------------(q) Time Limitation on Assessments ----------------------------- 171
(r) Time Limitation on Credits -and Refunds ---------------------- 173
(s) Review by Secretary of Assessment; Allowance or Disallowance
of Claim for Credit or Refunds ------------------------------ 173
(t) Review by Court --------------------------------------------- 174
(u) Positions Compensated Solely on a Fee Basis ------------------ 174
SEC. 219. [Repealed. I
SEC. 220. Disability Provisions Inapplicable if Benefit Rights Impaired --- 175 SEC. 221. Disability Determinations ----------------------------------- 175
(a) Disability Determination To Be Made by State Agency --------- 175 (b) Federal-State Agreements ------------------------------------ 175
(c) Review by Secretary on His Own Motion of Disability Deter- 176
minations Made by State -----------------------------------(d) Individual Dissatisfied by Determination Entitled to Hearing ---- 176 (e) Reimbursement of States for Cost of Carrying Out Federal-State 176
Agreements ----------------------------------------------- 17 6
(f) Use of Payments by States -----------------------------------(g) Disability Determinations Made by Secretary ------------------ 176
177
Ec. 222. Rehabilitation Services ------------------------------------(a) Referral for Rehabilitation Services ------------------------- 177







19

SEC. 222. Rehabilitation Services-Continued
(b) Deductions on Account of Refusal To Accept Rehabilitation page
Services ------------------------------------------------- 177
(c) Period of Trial Work ---------------------------------------- 178
(d) Costs of Rehabilitation Services From Trust Funds ----------- 179
SEC. 223. Disability Insurance Benefit Payments ----------------------- 181
(a) Disability Insurance Benefits -------------------------------- 181
(b) Filing of Application ---------------------------------------- JL82
(c) Definitions of Insured Status and Waiting Period -------------- 182
(d) Definition of Disability ------------------------------------- 183
SEC. 224. Reduction of Benefits Based on Disability on Account of Receipt of Workmen's Compensation ------------------------- 184
(a) Computation of Reduction -------------------- i ---------------- 184
(b) Benefit Payable on Other Than a Monthly Basis -------------- 185
(c) Application When Other Reduction or Deduction Under this
Title Applicable ------------------------------------------ 186
(d) No Reduction if Workmen's Compensation Benefit Reduced
Because of Receipt of Title 11 Benefits -------------------- 186
(e) Certification by Individual as to Award or Possibility of Award
of Workmen's Compensation Benefits ---------------------- 186
(f) Redetermination of Reduction -------------------------------- 186
(g) Reduction of Auxiliary Benefits Before Reduction of Disability
Insurance Benefit ---------------------------------------- 187
SEC. 225. Suspension of Benefits Based on Disability ------------------ 187
SEC. 226. Entitlement to Hospital Insurance Benefits ------ 7 ----------- 188
(a) Requirements for Entitlement-Individual over 65 ------------ 188
(b) Requirements for Entitlement-Individual under 65 ----------- 188
(c) Limitations-Deemed Entitlement ---------------------------- 188
(d) Qualified Railroad Retirement Beneficiary-Definition --------- 189 (e) Chronic Renal Disease Considered to Constitute Disability ------ 189 (f) Medicare Eligibility on Basis of Chronic Kidney Failure ------- 190 (g) Secretary's Authority to Limit Reimbursement --------------- 190
(h) Widows' and Widowers' Hospital Benefits ------------------- 190
(i) Uninsured Individuals ---------------- -------------------- I --- 191
SEC. 227. Transitional Insured Status -------------------------------- 191
(a) Benefit Rate ------------------------------------------------ 191
(b) Widow's Benefits--Individual Deceased Prior to Becoming
Eligible Under Transitional Insured Status Provisions ------ 191
(c) Widow's Benefits-Individual Deceased After Becoming Eligible
Under Transitional Insured Status Provisions -------------- 191
SEC. 228. Benefits at Age 72 for Certain Uninsured Individuals -------- 192
(a) Eligibility --------------------------------------------------- 192
(b) Benefit Amount --------------------------------------------- 192
(c) Reduction for Governmental Pension System Benefits ---------- 192
(d) Suspension for Months in Which Cash Payments Are Made
Under Public Assistance ---------------------------------- 194
(e) Suspension Where Individual Is Residing Outside the United
States -------------------------------------------------- 194
(f) Treatment as Monthly Insurance Benefits -------------------- 19(g) Annual Reimbursement of Federal Old-Age and Survivors
Insurance Trust Fund ------------------------------------ 195
(h) Definitions 195
SEC. 229. Benefits in Case of Members of Uniformed Services --------- 196
(a) Deemed Wage Credits for Service after December 1967 -------- 196 (b) Appropriations to Cover Wage 196
SEC. 230. Adjustment of the Contribution and Benefit Base ------------ 196
(a) Publication in the Federal Register -------------------------- 196
(b) The amount of the contribution and benefit base -------------- 196
(c) Interim contribution and benefit base ------------------------ 197
SEC. 231. Benefits in Case of Certain Individuals Interned During World
War 197
(a) Definition of Internee --------------------------------------- 197
(b) Wages ----------------------------------------------------- 198
(c) Appropriations --------------------------------------------- IN
SEC. 232. Processing of tax data -------------------------------------- 199






See. 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 Treasury 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 Account and the amount standing to the credit of the 0ld-Age Reserve Account on the books of the Treasury on January 1, 1940, which securities 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 appropriated to, or deposited in, the Federal Old-Age and Survivors Insurance Trust Fund as hereinafter provided. There is hereby appropriated to the Federal Old-Age and Survivors Insurance Trust Fund for the fiscal year ending June 30, 1941, and for each fiscalyear thereafter, 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 subehapter A of chapter 0 of the Internal 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 subehapter 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 15 1953, with respect to assessments of such taxes made before
January 1, 1951; and
(3) the taxes imposed by subehapter 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 Commissioner of Internal Revenue pursuant to section 1420 (c) of the Internal Revenue Code of 1939 after December 31, 1950, or to the Secretary of the Treasury or his delegates pursuant to subtitle F of the Internal Revenue Code of 1954 after December 31, 1954, as determined by the Secretary of the Treasury by applying the applicable rates of tax under such subehapter or chapter 21 (other than sections 3101(b) and 3111(b)) to such wages, which wages shall be certified by the Secretary of Health, Education, and Welfare on the basis of the records of wages established






21 Sec.201(b)

and maintained by such Secretary in accordance with such reports, less the amounts specified in clause (1) of subsection (b) of
this section; and I
(4) the taxes imposed by subehapter Eof 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 subehapter -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 subsection (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, Federal Old-Age and Survivors Insurance Trust Fund, and the amounts appropriated by clauses (1)'and (2) of subsection (b) shall be transferred f rom time to time from the general fund in the Treasury to the Federal Disability Insurance Trust Fund, such amounts to be determined 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 deposited 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 asthe "Federal Disability Insurance Trust Fund". The Federal Disability Insurance TrustFund 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 Tnsurance 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) 1/2of 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

ber 31, 1956, and before January 1, 1966, and reported to the Secretary 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 before 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) 1.2 per centum of the wages (as so defined) paid after December 31, 1977, and before January 1, 1981, and so reported, (H) 1.3 per centum of the wages (as so defined) paid after December 31, 1980, and before January 1, 1986 and so reported, (I) 1.4 per centum of the wages (as so defined) paid after December 31. 1985, and before January 1, 2011, and so reported, and (J) 1.7 per centum of the wages (as so defined) paid after December 31, 2010, and so reported, which wages shall be certified by the Secretary of Health, Education, and Welfare on the basis of the records of wages established and maintained by such Secretary in accordance with such
reports; and
(2) (A) 3/8 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 taxable year beginning after December 31, 1967, and before January 1, 1970, (D) 0.825 of 1 per centum of the amount of selfemployment 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-employment income (as so defined) so reported for any taxable year beginning after December 31, 1972, and before January 1, 1974, (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) 0.850 of 1 per centum of the amount of self-employment income (as so





nob
Ado Sec. 201(c)

defined) so reported for any taxable year beginning after December 31, 1977, and before January 1, 1981, (1-1) 0.920 of I 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 January 1, 1986, (1) 0.990 of 1 per centum. of -the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1985, and before January 1, 2011, and (J) I per centum of the amount of selfemployment incline (as so defined) so reported for. any taxable year beginning after D december 31, 2010, which self-employment income shall be certified& by the Secretary of Health,, Education, and Welfare on the basis of the records of self-employment in-, come established, and maintained by the Secretary of Health,
Education, and Welfare in accordance with such returns.
(e) With respect to theYederal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund (hereinafter 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 (he re inafter in this title called the "Board of Trustees") -which Board of Trustees shall be composed of the Secretary of the Treasury, the Secretary 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 operationand status of the Trust Funds during 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;
(4) Recommend improvements in administrative procedures
and policies designed to effectuate the proper coordination of the old-age and survivors insurance and Federal-State' unemployment 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 statement of the assets of, and the disbursements made from,.the Trust





e4
Sec. 201(d) 24

Funds during the preceding fiscal year, an estimate of the expected f uture. income to, and disbursements to be made from,'the Trust Funds durincr 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 wh;ch th report is made.
(d) It shall 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 interestbearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. For such purpose 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 preceding the date of such issue) on all marketable interest-bearing obligations 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 centuin 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 determines that the purchase of such other obligations is in the public interest.
(e) Any obligation acquired by the Trust Funds (except publicdebt obligations issued exclusively to the Trust Funds) may be sold by the Alaiiaoing Trustee at the market price, and such public-debt obligations may be redeemed at par plus accrued interest.
(f) The. interest on, and the proceeds from the sale or redemption of, any obligations held in the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund shall be credited to and form a part of the Federal Old-Acre and Survivors Tnqurance 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 Insurance Trust Fund established by title XVIII) is directed to pay from the Trust Funds into the Treasury-I
(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 III 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, 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, 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).
Such payments shall be carried into the Treasury as the net amount of repayments due the general fund account for reimbursement of expenses incurred in connection with the administration of titles III 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 accounting 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 H4ealth, Education, and Welf are 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 De64-310 0 76 3





Sec. 201 (g) 26

apartment 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 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 carrying 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 transferred 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 functions 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 subparaggra h (A)). The Managing Trustee is authorized and directed to transfer any such amounts in accordance with any certification so made.'
(2) The Managing Trustee is directed to pay from time to, time f rom the Trust Funds into the Treasury the amount estimated by him as taxes imposed under section 3101 (a) which are subject to refund under section 6413 (c) of the Internal Revenue Code of 1954 with respect to wages (as defined in section 1426 of the Internal Revenue Code of 1939 and section 3121 of the Internal Revenue Code of 1954) paid after December 31, 1950. Such taxes shall be determined on the basis of the records of wages established and maintained by the Secretary of Health, Education, and Welfare in accordance with the wages reported to the Commissioner of Internal Revenue pursuant to section 1420(c) of the Internal Revenue Code of 1939 and to the Secretary of the Treasury or his delegate pursuant to subtitle Y of the Internal Revenue Code of 1954, and the Secretary shall furnish the Managing Trustee such information as may be required by the Trustee for such purpose. The payments by the Managing Trustee sh-all be covered into the Treasury as repayments to the account for
Stib,,ection (,-) (1) was amended by section 8(d) of Public Law 94-202. See also section 8(f) of Public La'%%- 94-202 which appears, in this document on page 744.






27 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 Insurance 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 bome by the general fund in the Treasury 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 190-4 (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.':
(h) 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 Disability Insurance Trust Fund. All other benefit payments required to be made under this title (other than section 226) shall be made only from the Federal Old-Age and Survivors Insurance Trust Fund.
(i) (1) The Managing Trustee of the Federal Old-Age and Survivors 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 accept 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) the specific trust f und designated by the donor or
(B) if the donor has not so designated, the Federal Old-Age
and Survivors Insurance Trust Fund.
'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 744.






Sec. 202 (a) 28

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, beginning with the first month after August 1950 in which such individual becomes so entitled to such insurance benefits and ending with the month preceding the month in which he dies. Except as provided in subsection (q) and subsection (w), such individual's old-age insurance benefit for any month shall be equal to his primary insurance amount (as defined in section 215 (a) ) for such month.
Wife's Insurance Benefits
(b) (1) The wife (as defined in section 216 (b) ) and every divorced wife (as defined in section 216 (d) ) of an individual entitled to old-age or disability insurance benefits, if such wife or such divorced wife(A) has filed application for wife's insurance benefits,
(B) has attained age 62 or (in the case of a wife) has in her
care (individually or jointly with such individual) at the time of filing such application a child entitled to a child's insurance benefit on the basis of the wages and self-employment income of such
individual,
(C) in the case of a divorced wife, is not married, and
(D) is not entitled to old-age or disability insurance benefits
or is entitled to old-age or disability insurance benefits based on a primary insurance amount which is less than, one-half of the
primary insurance amount of such individual 1,
shal I (subject to subsection (s) ) be entitled to a wife's insurance benefit for each month beginning with the first month in which she becomes so entitled to such insurance benefits and ending with the month preceding the first montb in which any of the following occurs7-(E) she dies,
(F) such individual dies,
(G) in the case of a wife, they are divorced and either (i) she
has not attained age 62, or (ii) she has attained age 62 but has not been married to such individual for a period of 20 years
immediately before the date the divorce became effective,
(H) in the case of a divorced wife, she marries a person other
than such individual,
(1) 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,





on
AQU See. 202 (0

(J) she becomes entitled to an old-aze or disability insurance
benefit based on a primary insurance amount which is equal to or exceeds one-half Of the primary insurance amount of such individual, or
(K) such individual is not entitled to disability insurance benefits and is. not entitled to old-age insurance benefits.
(2) Except as provided in subsection (q), such wife's insurance benefit for each month shall be equal to one-half of the primary insurance amount of her husband (or, in the case of a divorced wife, her former husband) for such month.
(3) In the case of any divorced wife who marries(A) an individual entitled to benefits under subsection (f) or
(h), of this section, ur
(B) an individual who has attained the age of 18 and is entitled
to benefits under subsection (d),
such divorced wife's entitlement to benefits under this subsection shall, notwithstanding the provisions of paragraph (1) (but subject to subsection (s)), not be terminated by reason of such marriage; 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 benefits under subsection
(d) unless he ceases to be so -entitled by reason of his death.
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, .
(C) was receiving at least one-half of his support, as determined in accordance with regulations prescribed by the Secretary, from such individual(i) if she had a period of disability which did not end
prior to the month in which she became entitled to old-age or disability insurance benefits, at the beginning of such period or at the time she became entitled to such benefits, or
(ii) if she did not have such a period of disability, at the
time she became entitled to such benefits,
and filed proof of such support within two years after the month in which she filed application with respect to such period of disability or after the month in which she became entitled to such benefits, as the case maybe, or, if she did not have such & period, two years after the month in which she became entitled to such
benefits, 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






Sec. 202(d) 30

primary insurance amount which is less than one-half of the primary 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 becomes so entitled to such insurance benefits and ending with the month prieceding 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 whelmie 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) The provisions of subparagraph (C) of paragraph (1) shall (subject to subsection (s) ) not, be applicable in the case of any husband who(A) in the month prior to the month of his marriage to'such
individual was entitled to, or on application therefore and attainment of age 62 in such prior month would have been entitled to,
benefits under subsection (f ) or (h) ;
(B3) in the month prior to the month of his marriage to such
individual had attained age eighteen and was entitled to, or on application therefor would have been entitled to, benefits under
subsection (d) ; or
(C) in the month prior to the month of his marriage to such
individual he was entitled to, or on application therefor and attainment of the required age (if any) would have been entitled to, a widower's, child's (after attainment of age'18), or parent's insurance annuity under section 5 of the Railroad Retirement Act
of 1937, as amended.
(3) Except as provided in subsection (q), such husband's insurance benefit for each month shall be equal to one-half of the primary insura nce amount of his wife for such month.

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 had not attained the age of 22, or (ih) 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,





31 See.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, beginning with the first month after August 1950 in which such child becomes 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 (11) 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 lie is a fulltime 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 lie attained the age of 18, or if he was not under a disability (as so defined) at such time but was under a disability (as so defined) at or prior to the time he attained (or would attain) the age of 22, 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 fulltime student, or
(ii) the month in which lie 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 -employmeiit 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 Hidividual is, for such latei- itionth, entitled to old-age insurance benefits or unless he dies in such month. No payment under this paragraph may be made to a child who would not meet the definition of disability in section 223 (d) except for paragraph (1) (B) thereof for any month in which he engages in substantial gainful activity.
(2) Such child's insurance benefit for each month shall, if the individual on the basis of whose wages and self-employment income the child is entitled to such benefit has not died prior to the end of sucli






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 individual.
(3) A child shall be deemed dependent upon his father or adopting father or his mother or adopting mother at the time specified in paragraph (1) (C) unless, at such time, such individual was not living with or contributing to the support of such child and
(A) such child is neither the legitimate nor adopted child of
such individual, or
(B) such child has been adopted by some other individual.
For purposes of this paragraph, a child deemed to be a child of a fully or curreiAly insured individual pursuant to section 216(h) (2) (B) or section 216 (h) (3) shall be deemed to be the legitimate child of such individual.
(4) A child shall be deemed dependent upon his stepfather or stepmother at the time specified in paragraph (1) (C) if, at such time, the child was living with or was receiving at least one-half of his support from such stepfather or stepmother.
(5) In the case of a child who has attained the age of eighteen and who marries(A) an individual entitled to benefits under subsection (a), (b),
(e), (f), (g), or (h) of this section or under section 223 (a), or
(B) another individual who has attained the age of eighteen
and is entitled to benefits under this subsection,
such child's entitlement to benefits under this subsection shall, notwithstanding the provisions of paragraph (1) but subject to subsection (s), not be terminated by reason of such marriage; 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 benefits under section 223 (a) or this subsection 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. 9
(6) A child whose entitlement to child's insurance benefits on the basis of the wages and self-employment income of an insured individual terminated with the month preceding the month in which such child attained the age of 18, or with a subsequent month, may again become entitled to such benefits (provided no event specified in paragraph (1) (D) has occurred) beginning with the first month thereafter in which he-






33 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 entitlement. Such reentitlement shall end with the month preceding whichever of the following first occurs:
(C) the first month in which an event specified in paragraph
(1) (D) occurs;
(D) the earlier of (i) the first month during no part of which
he is a full-time 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 disability or (if later) the earlier of(i) the first month during no part of which he is a fulltime 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 fu 11-time
attendance as a student at an educational institution, as determined by the Secretary (in accordance with regulations prescribed by him) in the Jight 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 attending an educational institution at the request, or pursuant to a requirement, 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 Secretary 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 require ment (as of the beginning of such period) if he is in full-time attendance at an educational institution immediately 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 approved by a State or accredited by a State-recognized or nationally -recognized accrediting agency or body, or (iii) a nonaccredited school or college or university whose credits are accepted, 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 subsecti on has terminated under paragraph (1) (F) and for purposes of determining his initial entitlement to such benefits under clause (i) of paragraph (1) (B)) not to have attained such age until the first day of the first month following the end of the quarter or semester in which he is enrolled at such time (or, if the 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, whichever first occurs).
(8) In the case of(A) An individual entitled to old-age insurance benefits (other
than an individual referred to in subparagraph (B)), or
(B) an individual entitled to disability insurance benefits, or
an individual entitled to old-age insurance benefits who was entitled to disability insurance benefits for the month preceding the first month for which he was entitled to old-age insurance
benefits,
a child of such individual adopted after such individual became entitled to such old-age or disability insurance benefits shall be deemed not to meet the requirements of clause (i) or (iii) of paragraph (1)
(C) unless such child(C) is the natural child or stepchild of such individual (including such a child who was legally adopted by such individual),
or
(D) (i) was legally adopted by such individual in an adoption
decreed by a court of competent jurisdiction within the United
States,
(ii) was living with such individual in the United States and
receiving at least one-half of his support from such individual (1) if he is an individual referred to, in subparagraph (A), for






35 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 (11) if be 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 lie attained age 65), or the month in which such individual became entitled to disability insurance benefit, or (111) 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 individual 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 individual under clause (1) or (2) of such first sentence shall be deemed not to be dependent on such individual at the time specified in subparagraph (1) (C) of this subsection unless (i) such child was living with such individual in the United States and receiving at least one-half of his support from such individual (1) for the year immediately before the month in which such individual became entitled to old-age insurance benefits or disability insurance benefits or died, or
(11) if such individual had a period of disability which continued until lie had become entitled to old-age insurance benefits, or disability insurance benefits, or died, for the year immediately before the month in which such period of disability began, and (ii) the period during which such child was living with such individual began before the child attained age 18.
(B) In the case of a child who was born in the one-year period during which such child must have been living with and receiving at least one-half of his support from such individual, such child shall be






Sec.202(e) 36

deemed to meet such requirements for such period if, as of the close of such period, such child has lived with such individual in the United States and received at least one-half of his support from such individual for substantially all of the period which begins on the date of such child's birth.
Widow's Insurance Benefits
(e) (1) The widow (as defined in section 216(c)) and every surviving divorced wife (as defined in section 216 (d) ) of an individual who died a fully insured individual, if such widow or such surviving divorced wife(A) is not married,
(B) (i) has attained age 60, or (ii) has attained age 50 but has
not attained age 60 and is under a disability (as defined in section 223(d)) which began before the end of the period specified
in paragraph (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-eniployment income of such individual, for the month preceding the month in which he died., and (1) has attained age. 6.5 or (11) is not entitled to benefits under subsection (a) or
section 223, or
(ii) was entitled, on the basis of such wages and self-employment income, to mother's insurance benefits for the month preceding the month in which she attained 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 primary 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 disability and in which she becomes so entitled to such insurance benefits, but only if she was previously entitled to insurance benefits under this subsection on the basis of being under a disability and such first month occurs J) in the period specified in paragraph (5) and JI) after the month in which a previous entitlement to such benefits on such basis
terminated,






37 See.202(e)

and ending with the month preceding the first month in which any of the following occurs: she remarries, dies, becomes entitled to an old-age insurance benefit equal to or exceeding the primary insurance amount of such deceased individual, or, if she became entitled to such benefits before she attained age 60, the third month followingthe 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 (4) of this subsection, and subparagraph (B) of this paragraph, such widow's insurance benefit for each month shall be equal to the primary insurance amount of such deceased individual.
(B) If the deceased individual (on the basis of whose wages and self-employment income a widow or surviving divorced wife is entitled to widow's insurance -benefits under this subsection) was, at any time, entitled to an old-age insurance benefit which was reduced by reason of the application of subsection (q), the widow's insurance benefit of such widow or surviving divorced wife for any month shall, if the amount of the widow's insurance benefit of such widow or surviving divorced wife (as determined under subparagraph (A) and after application of subsection (q)) is greater than(i) the amount of the old-age insurance benefit to which such
deceased individual would have been entitled (after application of subsection, (q)) for such month if such individual were still
living, and
(ii) 821/2 percent of the primary insurance amount of such deceased individual,
be reduced to the amount referred to in clause (i), or (if greater) the amount referred to in clause (ii).
(3) In the case of a widow or surviving 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 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 benefits under subsection (d) unless he ceases to be so entitled by reason of his death.
(4) If a widow, after attaining the age of 60, marries an individual (other than one described in subparagraph (A) or (B) of paragraph
(3)), such marriage shall, for purposes of paragraph (1), be deemed





6 "8

not to have occurred; except that, notwithstanding the provisions of paragraph (2) and subsection (q), such widow's insurance benefit for the month in which such marriage occurs and each month thereafter prior to the month in which the husband dies or such marriage is otherwise, terminated, shall be equal to one-half of the primary insurance amount of the deceased individual on whose wages and selfemployment income such benefit is based;
(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 insured individual referred to in paragraph (1) on whose wages and self-employment income her benefits are or would be based,
01,
(13) the last month for which she was entitled to mother's insurance benefits -on the basis of the wages and self-employment
income of such individual, or
(C) the month in which a previous entitlement to widow's insurance benefits on the basis of such. wages and self-employment
income terminated because her disability had ceased.
and ending with the month before the month in which she attains age 60, or, if earlier, with the close of the eighty-fourth month following the month with which such period began.
(6) The waiting period referred to in paragraph (1) (F), in the case of any widow or surviving divorced wife, is the earliest period of five consecutive calendar months(A) throughout which she has been under a disability, and
(B) which begins not earlier than with whichever of the following is the later: (i) the first day of the seventeenth month before the month in which her application is filed,, or (ii) the first day of the fifth month before the month in which the period
specified in paragraph (5) begins.
(7) In the case of an individual entitled to monthly insurance benefits payable under this section for any month prior to January 1973 whose benefits were not redetermined under section. 102 (g) of the Social Security Amendments of 1972, such benefits shall not be redetermined pursuant to such section, but shall be increased pursuant to any general benefit increase (as defined in section 215 (i) (3) ) or any increase in benefits made under or pursuant to section 215 (i), including for this purpose the increase provided effective for March 1974, as though such redetermination had been made.
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,






39 Sec. 202 (f

(B) (i) has attained age 60, or (ii) has attai ed agre 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),
(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 attained age 65 or (11) is not entitled to benefits under subsection
(a) or section 223,
(D) (Ii) was receiving at least one-half of his support, as determined in accordance with regulations prescribed by the Secretary, from such individual at the time of her death or, if such individual had a period of disability which did not end prior to the month in which she died, at the time such period began or at the time of'her death, and filed proof of such support within two years after the, date of such death,, or, if she had such a period of disability, within two years after the month in which she filed application with respect to such period of disability or two years after the date of such death, as the case may be, or (ii) was receiving at least one-half of his support, as determined in accordance with regulations prescribed by the Secretary from such individual at the time she became entitled to old-age or disability insurance benefits or, if such individual had a period of disability which did not end prior to the month in which she became so entitled, at the time such period began or at the time she became entitled to such benefits, and filed proof of such support within two years after the month in which she became entitled to such benefits, or, if she had such a period of disability, within two years after the month in which she filed application with respect to such period of disability or two years after the month in which
she became entitled to such benefits, as the case may be,
(E) is not entitled to old-age insurance benefits, or is entitled
to old-age insurance benefits each of which is less than the primary insurance amount of his deceased wife,
sliall be entitled to a widower's insurance benefit for each month, beginning with(F) if he satisfies subparagraph (B) by reason of clause (i)
thereof the first month in which he becomes su entitled to such
insurance benefits, or
(G) if he satisfies subparacyraph (B) by reason of clause (ii)
thereof(i) the first month after his waiting period (as defined in
paragraph (7)) in which lie becomes so entitled to such insurance benefits, or






.Sec.202(f) 40
(ii) the first month during all of which he is under a disability and in which lie 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 (11) 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 oldage 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) The provisions of subparagraph (D) of paragraph (1) shall (subject to subsection (s)) not be applicable in the case of any individual who(A) in the month prior to the month of his marriage to *such
individual was entitled to, or on application therefor and attainment of age 62 in such prior month would have been entitled to,
benefits under this subsection or subsection (h) ;
(B) in the month prior to the month of his marriage to such
individual had attained age eighteen and was entitled to, or on application therefor would have been entitled to, benefits under
subsection (d) ; or
(C) in the month prior to the month of his marriage to such
individual he was entitled to,, or on'application therefor and attainment of the required age (if any), would have been entitled to, a widower's, child's (after attainment of age 18), or parent's insurance annuity under section 5 of the Railroad Retirement Act
of 1937, as amended.
(3) (A) Except as provided in subsection (q), paragraph (5), of this subsection, and subparagraph (B) of this paragraph, such widowerls insurance benefit for each month shall be equal to the primary insurance amount of his deceased wife.
(B) If the deceased wife (on the basis of whose wages and self employment income a widower is entitled to widower's insurance benefits under this subsection) was, at any time, entitled to an old-age insurance benefit which was reduced by reason of the application of subsection (q), the widower's insurance benefit of such widower for any month shall, if the amount of the widower's insurance benefit of such widower (as determined under subparagraph (A) and after application of subsection (q) ) is greater than-






41 See..202(f)

(i) the amount of the old-age insurance benefit to which such
deceased wife would have been entitled (after application of subsection (q)) for such month if such wife were still living; and
(ii) 821/2pereent of the primary insurance amount of such deceased wife;
be reduced to the amount referred to in clause (i), or (if greater) the amount referred to in clause (ii).
(1) In the case of a widower who remarries(A) an individual entitled to benefits under subsection (b),
(e) I (g) or (h) or
(B) an individual who has attained the age of eighteen and is
entitled to benefits under subsection (d) I
such widower'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.
(5) If a widower, after attaining the age of 60, marries an individual (other than one described in subparagraph (A) or (B) of paragraph (4)), such marriage shall, for purposes of paragraph (1), be deemed not to have occurred; except that, notwithstanding the provisions of paragraph (3) and subsection (q), such widower's insurance benefit for the month in which such marriage occurs and each month thereafter prior to the month in which the wife dies or such marriage is otherwise terminated, shall be equal to one-half of the -primary insurance amount of the deceased individual on whose wages and selfemployment income such benefit is based.
(6) The period referred to in paragraph (1) (B) (ii), in the case of any widower, is the period beginning with whichever of the following is the latest:
(A) the month in *Which occurred the death of the fully insured individual referred to in paragraph (1) on whose wages and self -employment income his benefits are or would be based, or Is
(B) the month in which a previous entitled ent to widower*
insurance benefits on the basis of such wages and self-employment income terminated because his disability had ceased,
and ending, with the month before the month in which he attains age 60, or, if earlier, with the close of the eighty-fourth month following the month with which such period began.
(7) The waiting period referred to in paragraph (1) (G), 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 following is the later: (i) the first day of the seventeenth month before the month in which his application is filed, or (ii) the first day of the fifth month before the month in which the period
specified in paragraph (6) begins.

64-310 0 76 4






Sec. 202(f) 42

(8) In the case of an individual entitled to monthly insurance benefits payable under this section for any month prior to January 1973 whose benefits were not redetermined 'Under section 102(g) of the Social Security Amendments of 1972, such benefits shall not be redetermined pursuant to such section, but shall be increased pursuant to any general benefit increase (as defined in section 215 (1) (3) ) or any increase in benefits made under or pursuant to section 215 (1), include 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 defined 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 threefourths 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 preceding 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 payable on the basis of such individual's wages and self-employment 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 becomes entitled to an old-age insurance benefit equal to or exceeding three-fourths of the primary insurance amount of such deceased individual, she becomes entitled to a widow's insurance benefit, she remarries, or she dies. Entitlement to such benefits shall also end, in the case of a surviving divorced mother, with the month immediately preceding the first month in which no son, daughter, or legally adopted child of such surviving divorced mother is entitled to a child's insurance benefit on the basis of the wages and self-employment income of such deceased individual.






43 Sec. 202(h)

(2) Such mother's insurance benefit for each month shall be equal to three-fourths of the primary insurance amount of such deceased individual.
(3) In the case of a widow or surviving divorced mother who marries
(A) an individual entitled to benefits under subsection (a),
(f ), or (h), or under section 223 (a) or
(B) an individual who bas 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, notwithstan cling 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 section 223 (a) or subsection (d) of this section, the preceding provisions of this paragraph shall not apply with respect to benefits f or 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.
Parent's Insurance Benefits
(h) (1) Every parent (as defined in this subsection) of an individual who died a fully insured individual if such parent(A) has attained age 62,
(B) (i) was receiving at least one-half of his support from such
individual at the time of such individual's death or, if such individual had a period of disability which did not end prior to the month in which he diedl at the time such period began or at the time of such death, and (11) 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 821/2percent 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 parenCs insurance benefit for each month begin-





Sec. 202 (h) 44

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 paragraph (2) (A) (or 75 percent of such 'primary insurance amount in any other case).
(2) (A) Except as provided in subparagraphs (B) and (C), such parent's insurance benefit for each month shall be equal to 821/2percent 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 selfemvloyment income) and
(ii) another parent of such deceased individual is entitled to a
parent's insurance benefit for such month on the basis of such wages and self-employment income, and on the basis of an application filed after such month and after the month in which the application for the parent's benefits referred to in clause (i) was
filed
the amount of the parent's insurance benefit of the parent referred to in clause (i) for the month referred to in such clause shall be determined under subparagraph (A) instead of subparagraph (B) and the amount of the parent's insurance benefit of a parent referred to in clause (ii) for such month shall be equal to 150 percent of the primary insurance amount of the deceased individual minus the amount (before the application of section 203 (a)) of the benefit for such month of the parent referred to in clause (i).
(3) As used in this subsection, the term "parent" means the mother or father of an individual, a stepparent of an individual by a marriage contracted before such individual attained the age of sixteen, or an adopting parent by whom an individual was adopted before he attained the age of sixteen.
(4) In the case of a parent who marries(A) an individual entitled to benefits under this subsection or
subsection (b), (e), (f ),or (g), or
(B) an individual who has attained the age of eighteen and is
entitled to benefits under subsection (d),






45 Sec. 202(i)

such parent's entitlement to benefits under this subsection shall, notwithstanding the provisions of paragraph (1) but subject to subsection (s), not be terminated by reason of such marriage; except that, in the case of such a marriage to a male 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 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 $2551, whichever is the smaller, shall be paid in a lump sum to the person, 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 person dies before receiving payment, then such amount shall be paid(1) if all or part of the burial expenses of such insured individual which are incurred by or through a funeral home or funeral homes remains unpaid, to such funeral home or funeral homes to the extent of such unpaid expenses, but only if (A) any person 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 expiration 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 be or they shall have paid such
burial expenses;
(3) if the body of such insured indiNidual 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 ip. 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
t'ley 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),





See. 2020) 46

(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 individual, in the following order of priority: (A) expenses of opening 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 subsection unless application therefor shall have been filed, by or on behalf of such person (whether or not legally competent), prior to the expiration of two years after the date of death of such insured individual, or unless such person was entitled to wife's or husband's insurance benefits, on the basis of the wages and self-employment income of such insured individual, for the month preceding the month in which such individual died. In the case of any individual who died. outside the forty-eight States and the District of Columbia after December 1953 and before January 1, 1957, whose death occurred while he was in the active military or naval service of the United States, and who is returned to any of such States, the District of Columbia, Alaska, Hawaii, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, or American Samoa for interment or reinterment, the provisions of the preceding sentence shall not prevent payment to any person under the second sentence of this subsection if application for a lump-sum death payment with respect to such deceased individual is filed by or on behalf of such person (whether or not legally competent) prior to the expiration of two years after the date of such interment or reinterment. In the case of any individual who died outside the fifty States and the District of Columbia after December 1956 while he was performing service, as a member of a uniformed service, to which the provisions of section 210 (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) An individual who would have been entitled to a benefit under subsection (a), (b), (c), (d), (e), (f ) I (g), or (h) for any month after August 1950 had he filed application therefor prior to the end of such month shall be entitled to such benefit for such month





Am
44 Sec. 202 (k)

if he files application therefor 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 montl .
(2) An application for any monthly benefits, under this section filed before the first month in which the applicant satisfies the requirements for such benefits shall be deemed a valid application only if the applicant satisfies the requirements for such benefits before the Secretary makes a final decision on the application. If upon final decision by the Secretary, or decision upon judicial review thereof, such applicant 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 individualmay, at his option, waive entitlement to any benefit referred to in paragraph (1) for any one or more consecutive Months (beginning with the earliest month for which such individual would otherwise be entitled to such benefit) which occur before the month in which such individual files application for such benefit and, in such case, such individual shall not be considered as entitled to such benefits for any such month or months before such individual filed such application. An individual shall be deemed to have waived such entitlement for any such month for which such benefit would, under the second sentence of paragraph (1), be reduced to zero.
Simultaneous Entitlement to Benefits
(k) (1) A child, entitled to child's insurance benefits on the basis of the wages and self-employment income of an insured individual, who would be entitled, on filing application, to child's insurance benefits on the basis of the wages and self-employment income of some other insured individual, shall be deemed entitled, subject to the provisions of paragraph (2) hereof, to child's insurance benefits on the basis of the wages and self-employment income of such other individual if an application for child's insurance benefits on the basis of the wages and self-employment income of such other individual has been filed by any other child who would, on filing application, be entitled to child's insurance benefits on the basis of the wages and self-employment income of both sueh insured individuals.
(2) (A) Any child who under the preceding provisions of this section is entitled for any month to child's insurance benefits on the wages and self -employment income of more than one insured individual shall, notwithstanding such provisions, be entitled to only one of such childs insurance benefits for such month. Such child's insurance benefits for such month shall be the benefit based on the acres anfl self-employ-





CIA
See. 202 (k) 48

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 iif 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-employmentincome 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 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 insurance benefit to which subsection (e) (4) or (f (5) applies shall be entitled to only one such benefit for such month, such benefit to be the largest of such benefits.
(3) (A) If an individual is entitled to an old-age or disability insurance benefit for any month and to any other monthly insurance benefit for such month, such other insurance benefit for such month, after any reduction under subsection (q), subsection (e) (2) or (f)
(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 20*2 (other than an old-age insurance benefit), such other insurance benefit for such month, after any reduction under subparagraph (A), any reduction under subsection (q), and any reduction under section 203
(a), shall be reduced, but not below zero, by an amount equal to such widow's or widower's insurance benefit after any reduction or reductions under such subparagraph (A) and such section 203 (a).
(4) Any individual who,, under this section and section 223, is entitled for any month to both an old-age insurance benefit and a disability insurance benefit under this title shall be entitled to only the





Ad% C1
4V Sec. 202(m)

larger of such benefits for such month, except that, if such individual so elects, he shall instead be entitled to only the smaller of such benefits for such month.
Entitlement to Survivor Benefits Under Railroad Retirement Act
(1) If any person would be entitled, upon filing application therefor to an annuity under section 2 of the Railroad Retirement Act of 1974, or to a lump-sum payment under section (6) (b) of such Act, with respect to the death of an employee (as defined in such Act) no lump-sum death payment, and no monthly benefit for the month in which such employee died or for any month thereafter, shall be paid under this section to any person on the basis of the wages and selfemployment 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 the wages and self-employment income of a 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 such month on the basis of such wages and self-employment income, such individual's benefit amount for such month, prior to reduction under subsection (k) (3), shall be not less than the first amount appearing in column IV of the table in (or deemed to be in) section 215 (a), except as provided in paragraph (2).
(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 subsequent monitor
(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 entitlement. to such benefit is before, the month in which he attained
age 62.
(3) In the case of any individual whose benefit amount was computed (or recomputed) under the provisions of paragraph (2) and such individual was entitled to benefits under subsection (e) or (f ) for a month prior to any month after 1972 for which a general benefit increase 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






See. 202(m) 50

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 subsection) deported under paragraph (1), (2), (4), (5), (6), (7), (10),
(11) 1 (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-employment income, for any month occurring (i) after the month in which the Secretary is notified by the Attorney General that such 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 income, for such month to any other person who is not a citizen of the United Stat es and is outside the United States for any part of
such month, and
(C) no lump-sum death payment shall be made on the basis of
such individual's wages and self-employment income if he dies (i) in or after the month in which such notice is received, and (ii) before the month in which he is thereafter lawfully admitted
to the United States for permanent residence.
Section 203 (b), (c), and (d) of this Act shall not apply with respect to any such individual for any month for which no monthlybenefit 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 therefor, the filing with the Administrator of Veterans' Affairs by or on behalf of such individual of an application for such benefits, on the form described in section 3005 of title 38, United States Code, shall satisfy the requirement of such subsection (d), (e), (g), or (h) that an application for such benefits be filed.






51 Sec. 202(q)

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 (C) of subsection (c) (1), clause (i) or (ii) of subparagraph (D) of subsection (f) (1), or subparagraph (B) of subsection (h) (1), or under clause (B) of subsection (f) (1) of this section as in effect prior to the Social Security Act Amendments of 1950, within
the period, prescribed, by such subparagraph or clause, or
(2) to file, in the case of a death after 1946, application for a
lump-sum death payment under subsection (i), or under subsection (g) of this section as in effect prior, to the Social Security Act Amendments of 1950, within the period prescribed by such subsection,
any such proof or application, asthe 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 madein accordance with.regulations of the Secretary.

Reduction of Benefit Amounts for Certain Beneficiaries
(q) (1) If the first month for which an. individual is entitled to an old-age, wife's, husband's, widow's, or widower's insurance benefit is a month before the month in which such individual. attains retirement age, the amount of such benefit for such month and for any subsequent month shall, subject to the succeeding paragraphs of this subsection, be reduced by. (A) % of I percent of such amount if such benefit is an oldage insurance benefit, 2 %6 of 1 percent of such amount if such benefit is a wife's or husband's insurance benefit, or 1%0 of 1 percent of such amount if such benefit is a widow's or widower's
insurance benefit, multiplied by(B) (i) the ..number of months in the reduction period for such
benefit (determined under paragraph (6) (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 (1) 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 entitlement to a widow's or widower's insurance benefit is a month before






Sec. 202(q) 52

the month in which such widow'or widower attains age 60, such benefit reduced pursuant to the preceding provisions of this paraaralDh (and before the application of the second sentence of paragraph (8) shall be further reduced by(C) 4%40 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 m onth before the month in which such individual attains age 62, or
(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 reduced as provided in subparagraph (B), (C), or (D).
(B) For any month for which such individual is entitled to an oldage insurance benefit and is not entitled to a disability insurance benefit such individual's wife's, or husband's insurance benefit shall be i educed by the sum of
(i) the amount by which such old-age insurance benefit is reduced under paragraph (1) for such month, and
(ii) the amount by which such wife's or husband's insurance
benefit would be reduced under paragraph (1) for such month if it were equal to the excess of such wife's or husband's insurance benefit (before reduction under this subsection) over such oldage insurance benefit (before reduction under this subsection).






53 Sec. 202(q)

(C) For any month for which such individual is entitled to a disability insurance benefit, such individuals wife's, husbands, widow's, or widower's insurance benefit shall be reduced by the sum of(i) the amount by which such disability insurance benefit is reduced under paragraph (2) for such month (if such paragraph
applied to such benefit), and
(ii) the amount by which such wife's, husband's, widow's, or
widower" s insurance benefit would be reduced under paragraph (1) for such month if it were equal to the excess of such wife's, husbands, widow's, or widower's insurance benefit (before reduction under this subsection) over such disability insurance
benefit (before reduction under this subsection).
(D) For any month for which such individual is entitled neither to an old-age insurance benefit nor to a disability insurance benefit, such individual's wife's, husband's, widow's, or widower's insurance benefit shall be reduced by the amount by which it would be, reduced under paragraph (1).
(E) If the first month for which an individual is entitled to an oldaore 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 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 insurance benefit to which such individual was first entitled for a month before she or he attained retirement age, then such old-age insurance benefit shall be reduced by wMenever 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 paragraph (1), or
(ii) the amount equal to the sum of (1) 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 mouth in which she or he attained age 62 and (11) the amount by which such old-age insurance benefit would be reduced under paragraph (1) if it were equal to the excess of such old-age insurance benefit (before reduction 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,





C4
Sec. 202W 54

surface 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 disability insurance benefit would have been reduced under paragraph (2), or
(ii) the amount equal to the sum of (1) 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 attained age 62 and (11) the amount by which such disability insurance 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'sinsurance 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 insurance 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 became 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 widower's insurance'benefit is a month for which such individual is also entitled to an old-age insurance benefit to which su& individual was first entitled for a month before she or he became entitled to a widow's or widower's benefit, the reduction in such widow's or widower's insurance benefit shall be determined under paragraph (1)
(4) If(A) an individual is or was entitled to a benefit subject to reduction under paragraph (1) or (3) of this subsection, and
(B) such benefit is increased by reason of an increase in the
primary insurance amount of the individual on whose wages and
self-employment income such benefit is based,
then the amount of the reduction of such benefit for each month shall be computed separately (under paragraph (1) or (3), whichever applies) for the portion of such benefit which constitutes such benefit






55 Sec. 202(q)

before any increase described in subparagraph (B), and separately (under paragraph (1) or (3), whichever applies to the benefit being *increased) for each such increase. For purposes of determining the amount of the reduction under paragraph (1) or (3)'in any such increase, the reduction period and the adjusted reduction period shall be determined as if such increase were a separate benefit to which such individual was entitled for and after the first month for which such increase is effective.
(5) (A) No wife's insurance benefit shall be reduced under this subsection(i) for any month before the first month for which there is in
effect a certificate, filed by 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 effective for purposes of this subsection (and for purposes of preventing deductions under section 203(c) (2))
(i) for the month in which it is filed and for any month thereafter, and
(ii) for months, in the period designated by the 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 subparagraph (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 husband) entitled to child's insurance benefits shall be reduced under this subsection 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






See.202(q) 56

(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
(11) in the case of a wife's insurance benefit, with the
first day of the first month for which a certificate described in paragraph (5) (A) (i) is effective, or
(111) in the case of a widow's or widower's insurance
benefit, with the first day of the first month for which such individual is entitled to such benefit or the first day of the month in which such individual attains age 60,
whichever is the later, and
(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, wi dow'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 additional 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 deductions 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 bad 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 benefits because the spouse on whose wages and self-employment income such benefits were based ceased to be under a disability,
(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 he attained age 62, and also for any later month before the month in which he attained re-






57 Sec. 202(s)

retirement age, for which she or he was not entitled to such benefit because the occurrenceof 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 reduction computed under paragraph (1), (2), or (3) is not a multiple 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.
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 individualattains, 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 insurance 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 therefor in such month, he would be entitled to such benefit for such month.
C hild Axed 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 section 203(c), a child who is entitled to child's insurance benefits under subsection (d) for any month, and who has attained the age of 18 but is not in such month under a disability (as defined in section 223 (d)) shall be deemed not entitled to such benefits for such month, unless he was under such a disability in the third month before such month.
(2) 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


64-310 0 76 5






Sec. 202(t) 58

(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) Subsections (c) (2) (B) and (f) (2) (B) of this section, 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) (C) of section 203, and subsections
(b) (3) (B), (c) (6) (B), (f) (3) (B), and (g) (6) (B) of section 216 shall not apply in the case of any child with respect to any month referred to therein unless in* such month or the third month prior thereto such child was under a disability (as defined in section 223 (d) ).
Suspension of Benefits of Aliens Who Are Outside the United States
(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) priorto 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 citizen 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 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






59 See.202(t)

(B) the individual on whose wages and self-employment income such benefit is based has, before such month, resided in the United States for a period or periods aggregating ten years or
more, or
(C) the individual entitled to such benefit is outside the United
States while in the active military or naval service of the United
States, or
(D) the individual on whose wages and self-employment income such benefit is based died, before such month, either (i) while on active duty or inactive duty training (as those terms are defined in section 210 (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(l) (2)), or an injury which he determines was incurred or aggravated in line'of duty while on inactive duty training (as defined in section 210(l) (3)), as a member of a uniformed service (as defined in section 210 (m) ), if the Administrator determines that such individual was discharged or released from the period of such active duty or inactive duty training under conditions other than dishonorable, and if the Administrator certifies to the Secretary his determinations with respect to such individual under this clause, or
(E) the individual on whose employment such benefit is based
had been in service covered by the Railroad Retirement Act 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 subparagTaphs (A) and (B) of this paragraph shall not apply in the case of any individual who is a citizen of a foreign country that has in effect a social insurance or pension system which is of general application in such country and which satisfies subparagraph (A) but not subparagraph (B) of paragraph (2), or who is a citizen of aforeigm country that has no social insurance or pension system of general application if at any time within five years prior to the month in which the Social Security Amendments of 1967 are enacted (or the first month thereafter for which his benefits are subject to suspension under paragraph (1)) payments to individuals residing in such country were withheld by the Treasury Department tinder 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 Tinder this section for December 1956 shall be deprived, by reason of paragraph (1), of such benefit or any otherbenefit based on the acres and self-employment income of the individual on whose, acres and self-employment income such monthly benefit for December 19,56 is based.






Sec. 202(u) 60

(6) If an individual is outside the United States when he dies and no benefit may, by reason of paragraph (1) or (10) be paid to him for the month preceding the month in which he dies, no lump-sum death payment may be made on the basis of such individual's wages and selfemployment income.
(7) Subsections (b), (c), and (d) of section 203 shall not apply with respect to any individual for any month for which no monthly benefit may be paid to'him. by reason of paragraph (1) of this subsection.
(8) The Attorney General shall certify to the Secretary such information regarding aliens who depart from the United States to any foreign country (other than a foreign country which is territorially continuous 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 obtaining 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 benefits to him is applicable (or would be if he were entitled to any such benefits).
(10) Notwithstanding any other provision of this title, no monthly benefits shall be paid under this section or under section 223, for any month beginning after June 30, 1968, to an individual who is not a citizen or national of the United States and who resides during such month in a foreign country if payments for such month to individuals residing in such country are withheld by the Treasury Department under the first section of the Act of October 9, 1940 (31 U.S.C. 123).
Effect of Conviction of Subversive Activities, etc.
(u) (1) If any individual is convicted of any offense (committed after the date of the enactment of this subsection) under(A) chapter 37 (relating to espionage and censorship), chapter
105 (relating to sabotage), or chapter 115 (relating to treason, sedition, and subversive activities) of title 18 of the United States
Code, or
(B) section 4, 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 he is convicted or for any month thereafter, in determining the amount of any such benefit payable to such individual for any such month, and in determining whether such individual i:s






61 Sec. 202(w)

entitled to insurance benefits under part A of title XVIII for any such month, there shall not be taken into account(C) any wages paid to such individual or to any other individual in the calendar quarter in which such conviction occurs or in
any prior calendar quarter, and
(D) any net earnings from self-employment derived by such
individual or by any other individual during a. taxable year in
which such conviction occurs or during any prior taxable year.
(2) As soon as practicable after an additional penalty has, pursuant to paragraph (1), been imposed with respect to any individual, the Attorney General shall notify the Secretary of such imposition.
(3) If any individual with respect to whom an additional penalty has been imposed pursuant to paragraph (1) is granted a pardon of the offense by the President of the United States, such additional penalty shall not apply for any month beginning after the date on which such pardon is granted.
Waiver of Benefits
(v) Notwithstanding any other provisions of this title, in thecase 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 thereunder,.. no benefits or other payments shall be payable under this. title to him, no payments shall be made on his behalf under part A of title XVIII, and no benefits or other payments under this title shall be payable on the basis of his wages and self-employment income to any other person, after the filing of such waiver; 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 benefits 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.
Increase in Old-Age Insurance Benefit Amounts on Account of Delayed Retirement
(1) If the first month for which an old-age insurance benefit becomes payable to an individual is not earlier than the month in which such individual attains age 65 (or his benefit payable at such age is not reduced under subsection (q)), the amount of the old-age insurfInce, benefit (other than a benefit based on a primary insurance amount determined under section 215 (a) (3) ) which is payable without regard to this subsection to such individual al shall be increased by
(A) one-twelfth of 1 percent of such amount, multiplied by






Sec. 203(a) 62

(B) the number (if any) of the increment months for such
individual.
(2) For purposes of this subsection, the number of increment months for any individual shall be a number equal to the total number of the months-- 1;
(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 (e) 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 paragraph (2) for each year, beginning with 1972, of the total number of an individual's increment inonths through the year for which the determination is made and the total so determined shall be applicable to such individual's old-age insurance benefits beginning with benefits for January of the year following the year for which such determination is made; except that the total number applicable in the case of an individual who attains age '72 after 1972 shall be determined through the month before the month in which he attains such age and shall be applicable to his oldage insurance benefit beginning with the month in which he attain's such age.
(4) This subsection shall be applied after reduction under section 203 (a).
(5) If an individual's primary insurance amount is determined under paragraph (3) of section 215 (a) 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) without regard to such paragraph, such individual's old-age insurance benefit based upon his primary insurance amount determined under such paragraph shall be increased by an amount equal to the difference between such benefit and the benefit to which he would be entitled if his- primary insurance amount were determined under such section without regard to such paragraph.

Reduction of Insurance Benefits
Maximum Benefits
Sec. 203. (a) Whenever the total monthly benefits to which individuals are entitled under sections 202 and 223 for a month on the basis of the waLes and self -employment income of an insured indi-





dos%
00 Sec. 203 (a)

visual is greater than the amount appearing in column V of the table in (or deemed to be in) section 215 (a) on the line on which -appears in column IV such insured individual's primary insurance amount, such total of benefits shall be reduced to such amount; except that(1) when any of such individuals so entitled would (but for
the provisions of section 202 (k) (2) (A)) be entitled to child's insurance benefits on the basis of the wages and self-employment income of one or more other insured individuals, such total of benefits shall not be reduced to less than the smaller of: (A) 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 (B) the last figure in column V of the table appearing
in section 215 (a), or
(2) when two or more persons were entitled (without the application 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 individual and the provisions of this subsection as in effect for any such month were applicable in determining the benefit amount of any persons on the basis of such wages and selfemployment income, the.total of benefits for any month after
January 1971 shall not be reduced to less than the largest of(A) the amount determined under this subsection without
regard to. this paragraph,:
(B) 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
(C) if any persons are entitled to benefits on the basisof
such wages andself-employment income for the month before the effective month (after September 1972) of a general benefit increase under this title (as defined in section 215 (i) (3) ) or a benefit increase under the provisions of section 215 (i), and amount equal to the sum of amounts derived by multiplying the benefit amount determined under this title (excluding any part thereof determined 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 percentage 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);






Sec. 203 (a) 64

but in any such case (i) paragraph (1) of this subsection shall not be applied to such total of benefits after the application of subparagraph (B) or (C), and (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 subparagraph (B) or (C) shall be applied, for and after the month in which section 202(k) (2) (A) ceases to apply, as though paragraph (1) had not been applicable to such total of benefits for the last month for which subparagraph (B) or (C) was applicable, or
(3) when any of such individuals is entitled to monthly benefits as a divorced wife under section 202(b) or as a surviving divorced wife under section 202(c) for any month, the benefit to which she is entitled on the basis of the wages and self-employment 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 selfemployment income of such insured individual shall be, determined as if no -such divorced wife or surviving divorced wife were
entitled to benefits for such month.
In any case in which benefits are reduced pursuant to the preceding provisions of this subsection, such reduction shall be made after any deductions under this section and after any deductions under section 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 disability insurance benefit shall be proportionately decreased; except that if such total of benefits for such month includes any benefit or benefits under section 202 (d) which are payable solely by reason of section 216 (h) (3), the reduction shall be first applied to reduce (proportionately where there is more than one benefit so payable) the benefits so payable (but not below zero),
(4) 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 and section
202 (q) 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 de-






65 See. 203(b)

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 to 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 w- ages and self-employment income, for such particular month, or
(5) whenever the monthly benefits of such individuals are based
on an insured individual's primary insurance amount which is determined under sect-ion 215 (a) (3) and such primary insurance amount does not appear in column IV of the table in (or deemed to be in) section 215 (a), the applicable maximum amount in column V of such table shall be the amount in such column that appears on the line on which the next higher primary insurance amount appears in column IV, or, if larger, the largest amount determined for such persons under this subsection for any month
prior to October 1972.
Deductions on Account of Work
(b) Deductions, in amounts and at such time or times as the Secretary shall determine, shall be made from any payment or payments under this title to which an individual is entitled, and from any payment or payments to which any other persons are entitled on the basis of such individual's wages and self-employment Micome, until the total of such deductions equals-(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 provisions 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 insurance benefits, or a person who is entitled to mother's insurance benefits, 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-,





L-4
Sec. 203(c) 66

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 selfemployment 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 subsection, 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 occurrence 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 considered 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 payments 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(1) in which such individual is under the age of seventy-two
and on seven or more different calendar da s of which he enLazed 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 husband entitled to a child's insurance benefit and such wife's insurance 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 & 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, daughor leg.dly adopted child and (B) is entitled to a child's in-





,cry
us See. 203(e)

surface 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 Outside the United States by Old-Age Insurance Beneficiary
(d) (1) Deductions shall be made from any wifels, 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 wiife, 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 benefit's under section 202 for any month in which such individual is under the age of seventy-two and on seven or more different calendar days of which he engaged in noncovered remunerative activity outside the United States.
(2) Deduction's 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 benefits 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, insurance 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 f or such month, only an amount equal to such benefit shall be deducted.






Sec. 203(f ) 68
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 such individual the excess earnings of such individual for any tax-able 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 individual shall be charged to any month (A) for which such individual was not entitled to a benefit under this title, (B) in which such individual was age seventy-two 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 insurance 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 $200 or the'exempt amount as determined under paragraph (8).1
(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) 5 (D), and
(E) thereof.
(3) For, purposes of paragraph (1) and subsection (h), an individual's excess earnings for a taxable year shall be 50 per centum
$210 for 1975 ; $230 for 1976.





AA%
V3V Sec. 203(f)

of his earnings for such year in excess of the product of $200 or the exempt amount as determined under paragraph (8),' multiplied by the number of months in such year, except that, in determining an individual's excess earnings for the taxable year in which he attains age 72, there shall be excluded any earninas 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 earnings as derived under the preceding sentence, if not a multiple of $1, shall be reduced to the next lower multiple of $1.
(4) For purposes of clause (E) of paragraph (1)
(A) Am individual will be presumed, with respect to any
month, to have been engaged in self-employment in such 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 Secretary 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 $200 or the exempt amount as determined under paragraph (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.
(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 purposesof 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 distributive share of loss described in sections 702 (a) (9) of the In$210 for 1975 ; $230 for 1976.





Sec.203(f) 10

eternal Revenue Code of 1954) taken into account under clause (i) over the gross income (plus his distributive share of income 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 ail 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 is not includible in computing his net earnings or net loss from
self-employment.
(D) In the me 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 royalties.
(6) For purposes of this subsection, wages (determined as provided 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 satisfaction 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 presumed 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 siich 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.






71 Sec. 203M

(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 a new exempt amount which shall be effective (unless such new exempt amount is prevented from becoming effective by subparagraph (C) of this paragraph) with respect to any individual's taxable year which ends after the calendar year in which such benefit increase 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).'
(B) The exempt amount for each month of -,i particular taxable year shall be whichever of the following is the larger(i) the exempt amount which was in effect with respect to
months in the taxableyear in which the determination under
subparagraph (A) was made, or
(ii) the product of the exempt amount described in. clause
(i) and the ratio of (I) the average of the wages of all employees as reported to the Secretary of the Treasury for the calendar year preceding the calendar -year in which the determination under subparagraph (A) was made to JI) the average of the wages of all employees as reported to the Secretary of the Treasury for the calendar year 1973, or, if later, the calendar year preceding the most recent calendar year in which an increase 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 product is a multiple of $5 but not of $10 and to the nearest multiple of $10 in any other case. For purposes of this clause (ii), the average of the wages for the calendar year 1978 (or any prior calendar year) shall, in the case of determinations made under subparagraph (A) prior to December 31, 1979, be deemed to be an amount equal to 400 per centum of the'amount ofthe average of the taxable wages of all employees as reported to the Secretary for the first
2
calendar quarter of such calendar year.
Whenever the Secretary determines that the exempt amount is to be increased in any year under this paragraph, he 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
IL $210 for 1975 : $230 for 1976.
2 Paragraph 8 (B) was amended by section 8 (i) of Public Law 94-202.






Sec.203(g) 72

215 (11) (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 actuarial assumptions and methodology used in preparing such estimates.
(C) Notwithstanding the determination of a new exempt
amount by the Secretary hinder subparagraph (A) (and notwithstanding any publication thereof under such subparagraph or any notification thereof under the last sentence of subparagraph (B) ), 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.
Penalty for Failure to Report Certain Events
(g) Any individual in receipt of benefits subject to deduction under subsection (e) (or who is in receipt of such benefits on behalf of another individual), because of the occurrence of an event specified therein, who fails to report such occurrence to the Secretary prior to th6 receipt and acceptance of an insurance benefit for the second month following the month in which such event occurred, shall suffer deductions 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 additional 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;
except that the number of additional deductions required by this subsection 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 insurance benefits under section 202 without making a timely report and for which deductions are required under subsection (c).





rM
io Sec. 203(h)

Report of Earnings to Se.cretary
(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 subsection (f), in excess of the product of $200 or the exempt amount as determined under subsection (f) (8)1 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 the age of 72, or (ii) if benefit payments for all months (in such taxable year) in which such individual is under age 72 have been suspended under the provisions of the first sentence of paragraph (3) of this subsection. The Secretary may grant reasonable extension of time for making the report of earnings required in this paragraph if he finds that there is valid reason for a delay, but in no case may the period be extended more than three months.
(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 dose 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-employment income, files with the Secretary information showing that a benefit for such month is payable to, such individual.
(2) If an individual fails to make a report required under paragraph (1), within the time prescribed by or in accordance with such paragraph, for any taxable year and any deduction 4s imposed under 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 additional 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 subsection (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,
$210 for 19T5; $230 for 1976.


64-310 0 76 6






Sec. 203(h) 74

the additional deduction shall be equal to the amount of the deduction 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 deduction 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 deductioiri 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 obtained by or submitted to him, that it may reasonably be expected that an individual entitled to benefits under section 202 for any taxable 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 i's imposed for such month under subsection (b). The Secretary is authorized, 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 determination 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






Sec. 203 (k)

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 individuals 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 provisions of subsection (b), (c), (g), or (h) of this section, or the provisions 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 otherwise 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 Seventy-two
(j) For the purposes of this section, an individual shall be. considered as seventy-two 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 services outside the United'States as an employee'and such services do not constitute employment as defined in section 210 and are not performed in the active military or naval service of the United States, or if he carries on a trade or business outside the United States (othef, 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 Comnionwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa) and the term "trade or business" shall have the same meaning as when used in Section 162 of the Internal Revenue Code of 1954.






Sec. 2030) 76

Good Cause for Failure To Make Reports Required
(1) The failure of an individual to make any report required by subsection (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 regulations 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 regulations 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 overpaid 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-employment. 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(l)) shall not be considered an incorrect payment for any month prior to the month such Department notifies the Secretary that such individual is alive.
(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 re 'resenting correct payments, disposition of the amount due shall be made in accordance with subsection (d).
(b) Inany case in which more than the correct amount of payment has been made, there shall beno adjustment of payments to, or recovery 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.






See.204(d)

(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 negotiated 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 deceased individual;
(2) if there is no person who meets the requirements of paragraph (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-employment 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 paragraph (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, entitled to monthly benefits on the basis of the same wages and selfemployment income as was the deceased individual (and, in case there is more than one such parent, in equal parts to each such
parent);
(4) if there is no person who meets the requirements of paragraph (1), (2), or (3), or if each person who meets such requirements dies before the payment due him under this title is completed, 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 paragraph (1) 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 paragraph (1) 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 individual (and, in case there is more than one such parent, in equal
parts to each such parent) ; or





Sec.205(a) 78

(7) if there is no person who meets the requirements of paragraph (1) 1 (2)1 (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 Certlification for Payment
Sec. 205. (a) The Secretary shall have full power and authority to make rules and regulation's and to establish procedures, not inconsistent with the provisions of this title, whichure necessary or appropriate 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 hereunder.
(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 respect to such decision, and, if a hearing is held, shall, on the basis of evidence adduced at the hearing, affirm, modify, or reverse his findings of fact and such decision. Any such request with respect to such a decision 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 he 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. Evidence may be received at any hearing before the Secretary even though inadmissible under rules of evidence applicable to court procedure.'
(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 (as defined in section 211 (e)
when used with respect to self-employment income.
(B) The term "time limitation" means a period of three years,
three months, and fifteen days.
The third sentence of section *205 (b) was amended by section 4 of Public Law 94-202 effective March 1, 19,76. Prior to that date, the appeal period is six months.





"A
tv See. 205(c)

(C) The term "survivor" means an individual's spouse, surviving divorced wife, surviving divorced mother, child, or parent,
who survives such individual.
(2) (A) On the basis of information obtained by or submitted to the Secr'etarv. 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 individual 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 already been assigned) :
(1) 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;
(11) 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 anotherperson; and
(111) to any other individual when it appears that he could
have been but was not assigned an account number under the provisions of subclauses (1) or 11) but only after such investigation 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 Auties, 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 enrollment in school.
(ii) The, Secretary shall require of applicants 'for social security account numbers such evidence as may be necessary to establish the age,






Sec.205(c) 80

citizenship, or alien status, and true identity of such applicants, and to determine which (if any) social security account number has previously been assigned to such individual.
(iii) In carrying out the requirements of this subparagraph, the Secretary shall enter into such agreements as may be necessary with the Attorney General and other officials and with State and local welfare agencies and school authorities (including non-public school authorities).
(3) The Secretary's record shall be evidence for the purpose of proceedings 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 derived. The absence of an entry in such records as to wages alleged to have been paid to, or as to self-employment income alleged to have been derived by, an individual in any period shall be evidence that no such alleged wages were paid to, or that no such alleged income was derived by, such individual during such period.
(4) Prior to the expiration of the time limitation following any year the Secretary may, if it is brought to his attention that any entry of wages or self-employment income in his records for such year is erroneous or that any item of wages or self-employment income for such year has been omitted from such records, correct such entry or include such omitted item in his records, as the case may be. After the expiration of the time limitation following any year(A) the Secretary's records (with changes, if any, made pursuant to paragraph (5)) of the amounts of wages paid to, and self-employment income derived by, an individual during any period in such year shall be conclusive for the purposes of this
title;
(B) the absence of an entry in the Secretary's records as to the
wages alleged to have been paid by an employer to an individual during any period in such year shall be presumptive, evidence for the purposes of this title that no such alleged wages were paid to
such individual in such period; and
(C) the absence of an entry in the Secretary's records as to the
self-employment income alleged to have been derived by an individual in such year shall be conclusive for the purposes of this title that no such alleged self-em-plpyment income was derived by such individual in such year u iess it is shown'that he filed a tax return of his self-employment income for such year before the expiration of the time limitation following such year, in which case the Secretary shall include in his records the self-employment income of such individual for such year.
(5) After the expiration of the time, limitation following any year in which wages were paid or alleged to have been paid to, or self-






81 Sec. 205(c)

employment income was derived or alleged to have been derived by, an individual, the Secretary may change or delete any entry with respect to wages or self-employment income in his records of such year for such individual or include in his records of such year for such individual any omitted item 04'wages or self-employment income but only
(A) if an application for monthly benefits or for a lump-sum
death payment was filed within the time limitation following such year; except that no such change, deletion, or inclusion may be made, pursuant to this subparagraph after a final decision upon the application for monthly benefits or lump-sum death payment;
(B) Iif within the time limitation following such year an individual or his survivor makes a request for a change or deletion, or for an inclusion of an omitted item, and alleges in writing that 'the Secretary's records of the wages paid to, or the self-employment income derived by, such individual in such year are in one or more respects erroneous; except that no such change, deletion, or inclusion may be made pursuant to this subparagraph after a final decision upon such request. Written notice of the Secretary's decision on any such request shall be given to the individual who
made the request;
(C) to correct errors apparent on the face of such records;
(D) to transfer items, to records of the Railroad Retirement
Board if such items were credited under this title when they should have been credited under the Railroad Retirement Act, or to enter items transferred by the Railroad 'Retirement Board which have been credited under the Railroad Retirement Act when
they should have been credited under this title-)
(E) to delete or reduce the amount of any entry which is erroneous as a result of fraud;
(F) to conform his records to(i) tax returns or portions thereof (including information
returns and other written statements) filed with the Commissioner' of Internal Revenue under title VIII of the Social Security Act, under subehapter E of chapter 1 or subchapter A of chapter 9 of the Internal Revenue Code of 1939, under chapter 2 or 21 of the. Internal Revenue Code. of 1954, or under regulations made under authority of such title, subchapter, or chapter;
(ii) wage reports filed by a State pursuant to an agreement under section 218 or regulations of the Secretary, thereunder; or
(iii) assessments of amounts due under an agreement pursuant to section 218, if such assessments are made within the rwriod specified in subsection (q) of such section, or allow-






Sec. 205(c)

ances, of credits or refunds of overpayments by a State under
an agreement pursuant to such section;
except that no amount of self-employment income of an individual for any taxable year (if such return or statement was filed after the expiration of the time limitation following the taxable year) shall be included in the Secretary's records pursuant to this
subparagraph;
(G) to correct errors made in the allocation, to individuals or
periods, of wages or self-employment income entered in the reeDrds of the Secretary;
(H) to include wages paid during any period in such year to
311 individual by an employer if there is an absence of an entry in the Secretary's records of wages having been paid by such
I employer to such individual in such period;
(11) to enter items which constitute remuneration for employment under subsection (o), such entries to be. in accordance with certified reports of records made by the Railroad Retirement Board pursuant to section 5 (k) (3) of the Railroad Retirement
Act of 1937; or
(J) to include self-employment income for any taxable year,
up to, but not in excess of, the amount of wages deleted by the Secretary as payments erroneously included in such records as wages paid to such individual, if such income (or net earnings from self-employment), not already included in such records as self-employment income, is included in a return or statement (referred to- in subparagraph (F)) filed before the expiration of the time limitation following the taxable year in which such deletion
of wages is made.
(6) Written notice of any deletion or reduction under paragraph
(4) or (5) shall be given to the individual whose record is involved or to his survivor, except that (A) in the case of a deletion or reduction with respect to any entry of wages such notice shall be given to such individual only if he has previously been notified by the Secretary of the amount of his wages for the period involved, and (B) such notice shall be given to such survivor only if he or the individual whose record is involved has previously been notified by the Secretary of the amount of such individual's wages and self-employment income for the period involved.
(7) Upon request in writing (within such period, after any change or refusal of a request for a change of his records pursuant to this subsection, as the Secretary may prescribe), opportunity for hearing with respect to such change or refusal shall be afforded to any individual named therein, or by registered mail or by certified mail the Secretary shall make findings of fact and a decision based upon the evidence adduced at such hearing and shall include any omitted items,





go" Sec. 205(g)

or change, or delete any entry, in his records as may be required by such findings and decision.
(8) Decisions of the Secretary under this subsection shall be reviewable by commencing a civil action in the United States district court as provided in subsection (g).(d) For the purpose of any hearing, investigation, or other proceeding authorized or directed under this title, or relative to any other matter within his jurisdiction hereunder, the Secretary shall have power to issue subpenas requiring the attendance and testimony of witnesses and the production of any evidence that relates to any matter under investigation or question before the Secretary. Such attendance of witnesses and production of evidence at the designated place of such hearing, investigation, or other proceeding may be required from any place in the United States or in any Territory or possession thereof. Subpenas of the Secretary shall be served by anyone authorized by him (1) by delivering a copy thereof to the individual named therein, or (2) by registered mail or by certified mail addressed to such individual at his last dwelling place or principal place of business. A verified return by the individual so serving the subpena, setting forth the manner of service, or, in the case of service by reg istered mail or by certified mail, the return post-office receipt therefor signed by the individual so served, shall be proof of service. Witnesses so subpenaed shall be paid the same fees and mileage as are paid witnesses in the district, courts of the United States.
(e) In case of contumacy by, or refusal to obey a subpena duly served upon, any person, any district court of the United States for the judicial district in which said person charged with contumacy or refusal to obey is found or resides or transacts business, upon application by the Secretary, shall have jurisdiction to issue an order requiring such person to appear and- give testimony, or to appear and produce evidence, or both; any failure to obey such order of the court may be punished by said court as contempt thereof.
(f) [Repealed.]
(g) Any individual, after any final decision of the Secretary made after a hearing to which he was a party, irrespective of the amount in controversy, may obtain a review of such decision by a civil action commenced within sixty days after the mailing to him of notice of such decision or within such further time as the Secretary may allow. Such action shall be brought in the district court of the United States for the judicial district in which the plaintiff resides, or has his principal place of business, or, if he does not reside or have his principal place of business within any such judicial district, in the District Court of the United States for the District of Columbia. As part of his answer the Secretary shall file a certified copy of the transcript of the record including the evidence upon which the findings and decision






Sec. 205(h) 84

complained of are based. The court shall have power to enter, upon the pleadings and transcript of the record, a judgment affirming, modifying, or reversing the decision of the Secretary, with or without remanding the case for a rehearing. The findings of the Secretary as to any fact, if supported by substantial evidence, shall be conclusive, and where a claim has been denied by the Secretary or a decision is rendered under subsection (b) hereof which is adverse to an individual who was a party to the hearing before the Secretary, because of failure of the claimant or such individual to submit proof in conformity with any regulation prescribed under subsection (a) hereof, the court shall review only the question. of conformity with such regulations and the validity of such regulations. The court shall, on motion of the, Secretary made before he files his answer, remand the case to the Secretary for further action by the Secretary, and may, at any time, on good cause shown, order additional evidence to be taken before the Secretary, and the Secretary shall, after the case is remanded, and after hearing such additional evidence if so ordered, modify or affirm his findings of fact or his decision, or both, and shall file with the court any such additional and modified findings of fact and decision, and a transcript of the additional record and testimony upon which his action in modifying or affirming was based. Such additional or modified findings of fact and decision shall be reviewable only to the extent provided for review of the original findings of fact and decision. The judgment of the court shall be final except that it shall be subject to review in the same manner as a judgment in other civil actions. Any action instituted in accordance with this subsection shall survive notwithstanding any change in the person occupying the office of Secretary or any vacancy in such office.
(h) The findings and decision of the Secretary after a hearing shall be binding upon allindividuals who were parties to such hearing. No findings of fact or decision of the Secretary shall be reviewed by any person, tribunal, or governmental agency except as herein provided. No action against the United States, the Secretary, or any. officer or employee thereof shall be brought under Section 24 of the Judicial Code of the United States to recover on any claim arising under this title.
(i) Upon final decision of the Secretary, or upon final judgment of any court of competent jurisdiction, that any person is entitled to any payment or payments under this title, the Secretary shall certify to the Managing Trustee the name and address of the person so entitled to receive such payment or payments, the amount of such payment or payments, and the time at which such payment or payments should be made, and the Managing Trustee, through the Fiscal Service of the. Treasury Department, and prior to any action thereon by the General Accounting Office, shall make payment in accordance with the certifi-






85 Sec. 205(n)

cation of the Secretary (except that in the case of (A) an individual who will have completed ten years of service creditable under the Railroad Retirement Act of 1937 or the Railroad Retirement Act of 1974,
(B) the wife or husband of such an individual, (C) any survivor of such an individual if such survivor is entitled, or could upon application become entitled, to an annunity under section 2 of the Railroad Retirement Act of 1974, and (D) any other person entitled to benefits under section 202 of this Act on the basis of the wages and self-employment *income of such an individual (except a survivor of such an individual where such individual did not have a current connection with the railroad industry, as defined in the Railroad Retirement Act of 1974, at the time of his death), such certification shall be made to the Railroad Retirement Board which shall provide for such payment or payments to such person on behalf of the Managing Trustee in accordance with the provisions of the Railroad Retirement Act of 1974) : Provided, That where a review of the Secretary's decision is or may be sought under subsection (g) the Secretary may withhold certification of payment pending such review. The Managing Trustee shall not be held personally liable, for any payment or payments made in accordance with a certification by the Secretary.
(j) When it appears to the Secretary that the interest of an applicant entitled to a payment would be served thereby, certification of payment may be made, regardless of the legal competency or incompetency of the individual entitled thereto, either for direct payment to such applicant, or for his use and benefit to a relative or some other person.
(k) Any payment made after December 31, 1939, under conditions set forth in subsection (j), any payment made before January 1, 1940, to, or on behalf of, a legally incompetent individual, and any payment made after December 31, 1939, to a legally incompetent individual without knowledge by the Secretary of incompetency prior to certification of payment, if otherwise valid under this title, shall be a complete settlement and satisfaction of any claim, right, or interest in and to such payment.
(1) The Secretary is authorized to delegate to any member, officer, or employee of the Department of Health, Education, and Welfare designated by him any of the powers conferred upon him by this section, and is authorized to he represented by his own attorneys in any court in any case, or proceeding arising under the provisions of subsection (e).
(m) [Repealed.]
(n) The Secretary may, in his discretion, certify to the Managing Trustee any two or more individuals of the same family for joint payment of the total benefits payable to such individuals for any month, and if one of such individuals dies before a check representing such






Sec.205(o) 86

joint payment is negotiated, payment of the amount of such unnegotiated check to the surviving individual or individuals may be authorized in accordance with regulations of the Secretary of the Treasury; except that appropriate adjustment or recovery shall be made under section 204 (a) with respect to so much of the amount of such check as exceeds the amount to which such surviving individual or individuals are entitled under this title for such month.
Crediting of Compensation Under the Railroad Retirement Act
(o) If there is no person who would be entitled, upon application therefor, to an annuity under section 2 of the Railroad Retirement Act of 1974, or to a lump-sum payment under section 6(b) of such Act with respect to the death of an employee (as defined in such Act), then, notwithstanding section 210(a) (9) of this Act, compensation (as defined in such Railroad Retirement Act, but excluding compensation attributable as having been paid during any month on account of military service creditable under section 3 (i) of such Act if wages are deemed to have been paid to such employee during such month under subsection (a) or (e) of section 217 of this Act) of such employee shall constitute remuneration for employment for purposes of determining (A) entitlement to and the amount of any lump-sum death payment under this title on the basis of such employee's wages and self-e*m-ployment income and (B) entitlement to and the amount of any monthly benefit under this title, for the month in which such employee died or for any month thereafter, on the basis of such wages and self-employment income. For such purposes, compensation (as so defined) paid in a calendar year shall, in the absence of evidence to the contrary, be presumed to have been paid in equal proportions with respect to all months in the year in which the employee rendered services for such compensation.
Special Rules in Case of Federal Service
(p) (1) With respect to service included as employment under section 210 which is performed in the employ of the United States or in the employ of any instrumentality which is wholly owned by the United States, including service, performed as a member of a uniformed service, to which the provisions of subsection (1) (1) of such section are applicable, and including service, performed as a volunteer or volunteer leader within the meaning of the Peace Corps Act, to which the provisions of section 210(o) are applicable, the Secretary shall not make determinations as to whether an individual has performed such service, the periods of such service, the amounts of remuneration for such service which constitute wages under the provisions of section 209, or the periods in which or for which such wages





Off rV
04 Sec. 205(a)

were paid, but shall accept the determinations with respect thereto of the head of the appropriate Federal agency or instrumentality, and of such agents as such head may designate, as evidenced by returns filed in accordance with the provisions of section 3122 of the Internal Revenue Code of 1954 and certifications made pursuant to this subsection. Such determinations shall be final and conclusive. 1
(2) The head of any such agency or instrumentality is authorized and directed, upon written request of the Secretary, to make certification to him with respect to any matter determinable for the Secretary by such head or his agents under this subsection, which the Secretary finds necessary in administering this title.
(3) The provisions of paragraphs (1) and (2) shall be applicable in the case of service, performed by a civilian employee, not compensated from funds appropriated by the Congress, in the Army and -Air Force Exchange Service, Army and Air Force Motion Picture Service, Navy Exchanges, Marine Corps Exchanges, or other activities, conducted by an instrumentality of the United States subject to the jurisdiction of the Secretary of Defense, at installations of the Department of Defense for the comfort, pleasure, contentment, and mental and physical improvement of personnel of such Department; and for purposes of paragraphs (1) and (2) the Secretary of Defense shall be deemed to be the head of such instrumentality. The provisions of paragraphs
(1) and (2) shall be applicable also in the case of service performed by a civilian employee, not compensated from funds appropriated by the Congress, in the Coast Guard Exchanges or other activities, conducted by an instrumentality of the United States subject to the jurisdiction of the Secretary of the Treasury, at installations of the Coast Guard for the comfort, pleasure, contentment, and mental and physical improvement of personnel of the Coast Guard; and for purposes of paragraphs (1) and (2) the Secretary of the Treasury shall be deemed to be the head of such instrumentality.
Expedited Benefit Payments
(q) (1) The Secretary shall establish and put into effect procedures under which expedited payment of monthly insurance benefits under this title will, subject to paragraph (4) of this subsection, be made as set forth in paragraphs (2) and (3) of this subsection.
(2) In any case in which
(A) an individual makes an allegation that a monthly benefit
under this title was due him in a particular month but was not
paid to him, and
(B) such individual submits a written request for the payment
of such benefit(i) in the case of an individual who received a regular
monthly benefit in the month preceding the month with re-






Sec. 206(a) 88

spect to which such allegation is made, not less than 30 days after the 15th day of the month with respect to which such allegation is made (and in the event that such request is submitted prior to the expiration of such 30-day period, it shall be deemed to have been submitted upon the expiration of
such period), and
(ii) in any other case, not less than 90 days after the later
of (1) the date on which such benefit is alleged to have been due, or (II) the date on which such individual furnished the last information requested by the Secretary (and such written request will be deemed to be filed on the day on which it was filed, or the ninetieth day after the first day on which the Secretary has evidence that such allegation is true, whichever is later),
the Secretary shall, if he finds that benefits are due, certify such benefits for payment, and payment shall be made within 15 days immediately following the date on which the written request is
deemed to have been filed.
(3) In any case in which the Secretary determines that there is evidence, although additional evidence might be required for a final decision, that an allegation described in paragraph (2) (A) is true, he may make a preliminary certification of such benefit foT payment even though the 30-day or 90-day periods described in paragraph (2) (B)
(i) and (B) (ii) have not elapsed.
(4) Any payment made pursuant to a certification under paragraph
(3) of this subsection shall not be considered an incorrectpayment for purposes of determining the liability of the certifying or disbursing officer.
(5) For purposes of this subsection, benefits payable under section 228 shall be treated as monthly insurance benefits payable under this title. However, this subsection shall not apply with respect to any benefit for which a check has been negotiated, or with respect to any benefit alleged to be due under either section 223, or section 202 to a wife, husb -and, or child of an individual entitled to or applying for benefits under section 223, or to a child who has attained age 18 and is under a disability, or to a widow or widower on the basis of being under a disability.

Representation of Claimants
Sec. 206. (a) The Secretary may prescribe rules and regulations governing the recognition of agents or other persons, other than attorneys as hereinafter provided, representing claimants before the Secretary, and may require of such agents or other persons, before being recognized as representatives of claimants that they shall showl