The Social security act and related laws

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Title:
The Social security act and related laws
Uniform Title:
Laws, etc
Physical Description:
viii, 826, xxxi p. : ; 24 cm.
Language:
English
Creator:
United States
United States -- Congress. -- Senate. -- Committee on Finance
United States -- Congress. -- House. -- Committee on Ways and Means
Publisher:
U.S Govt. Print. Off.
Place of Publication:
Washington
Publication Date:
Edition:
Dec. 1978 ed.

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

Notes

Statement of Responsibility:
Committee on Finance, United States Senate and Committee on Ways and Means, United States House of Representatives.
General Note:
Reuse of record except for individual research requires license from LexisNexis Academic & Library Solutions.
General Note:
Dec. 31, 1978.
General Note:
At head of title: 95th Congress, 2d session. House committee print no. 95-105.
General Note:
At head of title: 95th Congress, 2d session. Committee print.
General Note:
CIS Microfiche Accession Numbers: CIS 79 S362-4, CIS 79 H782-9

Record Information

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University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 024966471
oclc - 05352856
Classification:
lcc - KF49
System ID:
AA00025931:00001

Full Text








95th Congress C2M z RN
2d SessionjCO ITEPIN









The

SO "'CIAL SECURITY ACT

and Related Laws


December 1978 Edition





COMM ITTEE ON FINANCE UNITED STATES SENATE

RUSSELL B. LONG, Chairman










DECEMBER 31, 1978




Printed for the use of the Committee on Finance


U.S. GOVERNMENT PRINTING OFFICE
35-0440 WASHINGTON : 1978


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
































COMMITTEE ON FINANCE
RUSSELL B. LONG, Louisiana, Chairman
HERMAN E. TALMADGE, Georgia CARL T. CURTIS, Nebraska ABRAHAM RIBICOFF, Connecticut CLIFFORD P. HANSEN, Wyoming HARRY F. BYRD, JR., Virginia ROBERT DOLE, Kansas GAYLORD NELSON, Wisconsin BOB PACKWOOD, Oregon
MIKE GRAVEL, Alaska WILLIAM V. ROTH, JR., Delaware
LLOYD BENTSEN, Texas PAUL LAXALT, Nevada
WILLIAM D. HATHAWAY, Maine JOHN C. DANFORTH, Missouri
FLOYD K. HASKELL, Colorado SPARK M. MATSUNAGA, Hawaii DANIEL PATRICK MOYNIHAN, New York MICHAEL STERN, Staff Director GEORGE W. PRITTS, Jr., Minority Counsel

(II)






Revised December 1978






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 December 31, 1978. Also included are the full text of the Federal-State Extended Unemployment Compensation Act, as amended, and pertinent excerpts from the Internal Revenue Code and from various public laws enacted since the 92d Congress.
This document is intended to supplement and not to replace the Compilation of the Social Seewity 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/socialseacOOunit











CONTENTS


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






vI Revised December 1978

Title XIX-Grants to States for Medical Assistance Pro- Page
grams ----------------------------------------507
Title XX-Grants to States for Services ----------------541
Selected Provisions of the Internal Revenue Code of 1954:
Subtitle A-Income Taxes:
Chapter 1-Normal Taxes and Surtaxes ------------557
Subchapter A, Part IV, Subpart A-Credits
Allowable -------------------------------557
Section 40-Expenses of Work Incentive
Programs ---------------------------57
Section 43-Earned Income ---------------557
Section 44A. Expenses for Household and Dependent Care Services Necessary for Gainful Employment ---------------------- 559
Section 44B. Credit for Employment of Certain New Employees ------------------- 562
Subpart C-Rules for Computing Credit for Expenses of
Work Incentive Programs---------------------- 563
Section 50A ----------------------------------563
Section 50B ----------------------------------565
Subpart D-Rules for Computing Credit for Employment
of Certain New Employees ------------------------568
Section 51-Amount of Credit -------------------568
Section 52-Special Rules ---------------------570-I)
Section 53-Limitation Based on Amount of Tax-.-- 5 70-E
Subchapter B, Part VI-Itemized Deductions for Individuals and Corporations -0-----------------------57)
Section 188-Amortization of Certain Expenditures
for On-the-Job Training and Child Care Facilities- 570-F
Section 214-Repealed -----------------------570Section 280C. Portion of Wages for Which Credit is
Claimed Under Section 40 or 44B -------------570-G
Chapter 2-Tax on Self-Employment Income ------570-I1
Subtitle C'Employment Taxes:
Chapter 21-Federal Insurance Contributions Act --- 581 Chapter 22-Railroad Retirement Tax Act ----------617
Chapter 23-Federal Unemployment Tax Act -------629
Chapter 25-General Provisions Relating to Employment Taxes ---------------------------------662






Revised December 1978 Vii

Selected Provisions-Continued
Subtitle F-Procedure and Administration: Page
Chapter 61-Information and Returns ------------662-D
Chapter 62-Time and Place for Paying Tax ------- 675 Chapter 63--Assessments ------------------------676
Chapter 64-Collection -------------------------677
Chapter 65-Abatements, Credits and Refunds ------681 Chapter 66-Limitations ------------------------685
Chapter 67-Interest --------------------------- 689
Chapter 68-Additions to the Tax, Additional
Amounts, and Assessable Penalties ---------------690
Chapter 75-Crimes, Other Offenses, and Forfeitures- 695
Chapter 78-Discovery of Liability and Enforcement of Title -------------------------------697
Chapter 79-Definitions -------------------------699
Chapter 80-General Rules ---------------------- 699
Excerpt from the Consumer Credit Protection Act, as amended
(P.L. 90-321) -------------------------------------703
Excerpts from the Food Stamp Act of 1977, as enacted by section 1301 of the Food and Agriculture Act of 1977 (P.L.
95-113) ------------------------------------------707
Selected Unemployment Insurance Laws:
Federal-State Extended Unemployment Compensation
Act, as amended --------------------------------711
Excerpt from Public Law 93-618, the Trade Act of 1974,
(Adjustment Assistance for Workers) -----------------718
Excerpt from Title 5, U.S. Code (Unemployment Benefits
for Federal Employees and Servicemen) --------------733
Excerpts from Public Laws related to the Social Security Act:
Public Law 93-66, as amended ------------------------741
Public Law 93-233, as amended ----------------------749
Public Law 93-368-------------------------------- 757
Public Law 93-480-------------------------------- 758
Public Law 93-647, as amended -----------------------758
Public Law 94-12 ---------------------------------760
Public Law 94-45 ---------------------------------762
Public Law 94-88 ---------------------------------765
Public Law 94-114 -------------------------------767
Public Law 94-164 ----------------------------- 767-A
Public Law 94-182 --------------------------------768
Public Law 94-202 -------------------------------- 771
Public Law 94-274, as amended ----------------------774
Public Law 94-331, as amended ------------------Public Law 94-368 -------------------------------- 778






VM Revised December 1978

Excerpts from Public Laws-Continued
Public Law 94-375 --------------------------------- 778
Public Law 94-401, as amended ----------------------- 779
Public Law 94-437 --------------------------------- 781
Public Law 94-455, as amended ----------------------- 783
Public Law 94-53------------------------------- 783-A
Public Law 94-566 --------------------------------- 785
Public Law 94-585 --------------------------------- 794
Public Law 95-19 --------------------------------- 794
Public Law 95-30 ---------------------------------- 795
Public Law 95-59 --------------------------------- 796
Public Law 95-142, as amended ----------------------- 797
Public Law 95-171 -------------------------------- 802
Public Law 95-210 -------------------------------- 802
Public Law 95-216--------------------------------- 805
Public Law 95-291 --------------------------------- 817
Public Law 95-292 -------------------------------- 820
Public Law 95-458 --------------------------------- 820
Public Law 95-478 ------------------------------- 820-A
Public Law 95-482 ------------------------------- 820-A
Public Law 95-524 ------------------------------- 820-A
Public Law 95-600 --------------------------------- 821
Public Law 95-602 --------------------------------- 824
Appendix:
A-Amending Legislation---------------------------(i)
B-Social Security Taxes---------------------------- (v)
C-Ceiling on Federal Matching Funds for Social Services
Under Title XX--------------------------------- (vii)
1)-Federal Matching Percentages for Welfare Programs-. (viii) 1E-Va riabi e Amounts Applicable to Selected Provisions (ix) F-Section 215 Under Former Law------------------ (viii)
G-M-\edian Income Levels Applicable to Title XX
Eligibility ------------------------------------ (xxxi)












SOCIAL SECURITY ACT, AS AMENDED
AN ACT
To provide for the general welfare by establishing a system of Federal old-ag'e 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. 41
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
TITLE I-GRANTS TO STATES FOR OLD-AGE ASSISTANCE AND MEDICAL ASSISTANCE FOR THE AGED 1 Page
See. 1. Appropriation ------------------------------------------------ 1
See. 2. State Old-Age Assistance and Medical Assistance Plans ---------See. 3. Payment to States --------------------------------------------- 0
See. 4. Operation of State Plans --------------------------------------- 11
See. 5. Administration ----------------------------------------------- 12
Sec. 6. Definitions --------------------------------------------------- 12
Appropriation
Section 1. For the purpose (a) of enabling each State, as f ar 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 inedical 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 sum sufficient to carry out the purposes of this title. The sums made available under this section shall be used for making payments to States which have submitted, and had approved by the Secretary of Health, Education, and Welfare (hereinafter referred to as the "Secretary"), State plans for old-age assistance, or for medical assist' P.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. 1 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, if 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 sem-ices 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 sucli information, as the Secretary may from time to tinie require, and comply Nvith such provisions as tlie Secretary may from time to time find necessary to assure the
correctness and verification of such reports;






3 Sec. 2(a)

(7) provide safeguards which permit the use or disclosure of information concerning applicants or recipients only (A) to public officials who require such information in connection with their official duties or (B) to other persons for purposes directly connected with the administration of the State plan;
(8) provide that all individuals wishing to make application for assistance under the plan shall have opportunity to do so, and that such assistance shall be furnished with reasonable promptness 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 I..-,'n'e first $20 thereof
plus one-lialf of the remainder;
(B) include reasonable standards, consistent with the objectives of this title for determining eliaibiltiy for and the
extent of such assistance; and
(C) provide a description of the services (if any) which
the State agency makes available (using whatever internal organizational arrangement it finds appropriate for this purpose) to applicants for and recipients of such assistance to help them attain self-care, including a description of the steps taken to assure, in the provision of stich 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 proviEsions (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 wvho would otherwise need care in such institutions, inclin di appropriate medical treatment and other assistaince; for serv-ices referred to in section 3(a) (4) (A) (i) and (11) 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 withrespect 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 cliarge for the reasonable coLA 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 havc in effect with respect to any period more than one State plan approved under this title.
Payment to States
See. 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
Cal






Sec. 3 (a) 6

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)
(A) 3 1/37 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) (I) 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 much of 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 orany 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 percentacre of the amount by which the total expended during such month as old-a(re assistance under the State plan exceeds the amount which may be counted under clause (A) and the, I)receding provisions of this clause
(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) in the ease 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 to any 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 other type of remedial care or the cost thereof) ; and
(4) iin the case of any State whose State plan approved under section 2 meets the requirements of subsection (c) (1), an amount equal to the sum of the following proportions of the total amounts expended during such quarter as found necessary by the Secretary of Health, Education, and Welfare for the proper and efficient administration of the State plan(A) 75 per centum of so much of such expenditures as
are for-






Sec. 3 (a) 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
(iii) 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 becoine 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 f unds authorized under this title shall be available for services defined as vocational rehabilitation services under the Vocational Rehabilitation Act (i) which are available to individuals in need of them under programs for their rehabilitation carried on tinder a State plan al)proved tinder such Act, or (ii) which the State agency or acrencies, administering or supervising the administration of the State plan approved under such Act, are able






9 Sec. 3(b)

and willing to provide if reimbursed for the cost thereof pursuant to agreement under subparagraph (E), if provided by
such staff, and
(E) under conditions which shall be prescribed by the
Secretary, services which in the judgment of the State agency cannot be as economically or as effectively provided by the staff of such State or local agency and are not otherwise 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 plan 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 shall,
prior to the beginning of each quarter, estimate the amount to be paid to the State -'for such quarter under the provisions of subsection (a), such estimate to be based on (A) a report filed by the State containing its estimate of the total sum to be expended in such quarter in accordance with the provisions of such subsection, and stating the amount appropriated or made available 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 expendi35-044 0 79 2






See. 3 (b) 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 f 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 meet Ing the requirements of paragraph (1), but with respect to which the Secretary findsaftei, reasonable notice and opportunity for hearing to the St, t(, a (r(qI(-y administering or supervising the administration of siich I)Ian, that(A) tlie pt-ovislon has been so changed that it no longer complies with the requii-enients of paragraph (1), or






Sec. 4

(B) in the administration of the plan there is a failure to comply substantially with such provision,
the Secretary shall notify such State agency that further payments will not be made to the State under paragraph (4) of subsection (a) until he is satisfied that there will no longer be any such failure to comply. Until the Secretary is so satisfied further payments with 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 provisions of this title, under paragraph (5) 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 expenditures in the State from such sources for such services under such programs for each quarter of the fiscal year ending June 30, 1965. For purposes of this subsection, expenditures for such services for each quarter in the fiscal year ending June 30, 1965, in the case of any State shall be determined on the basis of the latest data, 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 services for any quarter beginning after December 31, 1965, in the case of any State shall be determined on the basis of the latest data, satisfactory to the Secretary, available to him at the time of the determination under this subsection for such State for such quarter; and determinations so made shall be conclusive for purposes of this subsection.

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






Sec. 4 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 wvill 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 assistance"l means money payments to, or (if provided in or after the third month before the month in which the recipient makes application for assistance) medical care in behalf of or any type of remedial care recognized under State law in behalf of, needy individuals who are sixty-five years of agre or older, but does not include any such pay'nents 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 meaningr 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 under 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 payinents only on cases in which such payments wNlill, undei- the rules otherwise applicable under the State plani for (leteiiiilnincr need and the amount of old-agre assistance to b~e paidl (and in conjunction with other income and resources),






13 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 payments if they do not and for seeking judicial appointment of a guardian or other legal representative, as described in section 11111 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 oii
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 residence in such State during such period) until he has been present in such St, te for 330 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 m ade 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 cind 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(b) 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 medical care or remedial care recognized under
State law;
except that such term does not include any such payments with respect to care or services for any individual who is an innate 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 centuin as the square of the per capita income of such State bears to the square of the per capitaincome of the continental United States (including Alaska) and Hawaii; except that (i) the Federal medical percentage shall in no case be less than 50 per centum or more than 80 per centum, and (ii) the Federal medical percentage for Puerto Rico, the Virgin Islands, and Guam shall be 50 per centum. The Federal medical percentage for any State shall be determined and promulgated in accordance with the provisions of subparagraph (B) of section 1101 (a) (8) (other than the proviso at the end thereof) ; except that the Secretary shall, as soon as possible after enactment of the Social Security Amendments of 1960, determine and promulgate the Federal medical percentage for each State-(1) for the period beginning October 1, 1960, and ending with
the close of June 30, 1961, which promulgation shall be based on the same data with respect to per 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 301 1963, which promulgation shall be based on the same data with respect to per capita income as the data used by the Secretary in prointil gating 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).
















Rfevised April 1978

TITLE II-FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE BENEFITS

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

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







16 Revised April 1978

SEC. 203. Reduction of Insurance Benefits-Continued page
(f) Months to Which Earnings Are Charged----------------------- 74
(g) Penalty for Failure To Report Certain Events----------------- 79
(hi) Renort of Earnings to Secretary ----------------------------- 79-A
(i) Circumstances Under Which Deductions and Reductions Not
Required ---------------------------------------------- 79-C
(j) Attainment of Age Seventy---------------------------------- 79-C
(k) Noncovered Remunerative Activity Outside the United States-- 79-C (1) Good Cause for Failure To Make Reports Required-------------- 79-D
SEC. 204. Overpayments and Underpaymnents -------------------------- 79-D
(a) Adjustment of Errors in Payments --------------------------- 79-D
(b) When Adjuftment or Recovery of Overpayment Not Made --- 79-E (c) Nonliability of Certifying or Disbursing Officer----------------- 79- E
(d) Special Rules Regarding Underpayments---------------------- 79-E
SEC. 205. Evidence, Procedure, and Certification for Payment ------------ 79-F
(a) Authority of Secretary To Make Rules and Regulations To Carry
Out Provisions of Title 11I-------------------------------- 79-F
(b) Decisions by Secretary Regarding Rights of Claimants --------- 79-F
(c) Earnings Records Maintained by Secretary; Time Limitation for
Revisions ------------------------ ---------------------- 79-G
(d) Authority of Secretary To Issue Subpenas--------------------- 83
(e) Contumacy or Failure To Obey Subpena------------------------ 84
(f) [Repealed.]
(g) Review of Secretary's Decision by Court----------------------- 84
(hi) Finality of Secretary's Decision ------------------------------ 85
(i) Certification by Secretary for Payment------------------------ 85
(j) Authority of Secretary To Certify Payment of Benefits to Someone Other Than the Beneficiary ---------------------------- 86
(k) Settlement of Claims of Incompetents------------------------ 86
(1) Authority of Secretary To Delegate Powers-------------------- 86
(mn) [Repealed.]
(n) Joint Payment of Benefits------------------------------------ 86
(o) Crediting of Compensation Under the Railroad Retirement Act-- 87 (p) Special Riles in Case of Federal Service---------------------- 87
(q) Expedited Benefit Payments ---------------------------------- 88
SEC. 20 6. Representation of Claimants --------------------------------- 89
(a) Representation Before Secretary; Fees for Services Before
Secretary----------------------------------------------- 89
(b) Court Determination of Fees in Certain Cases -----------------90
SEC. 207. Assignment ------------------------------------------------ 91
SEC. 208. Penalties------------------------------------------------- 91
(a) False Statements To Obtain Increase in Benefits ----------------91
(b)) False Statements on Applications ---------------------------- 91
(c) False Statements Made for Use in Determining Rights to
Payments----------------------------------------------- 91
(d) Fraudulent Concealment or Failure To Disclose Events Affecting
Initial or Continued Right to Payment--------------------- 92
(e) Willful Conversion of Benefits by Representative Payee ----------92
(f) Furnishing False Information To Obtain Social Security Account
Number------------------------------------------------ 92
(g) Penalty for Furnishing False Social Security Number With Intent To Deceive----------------- -------------------------- 92
(h) Penalty for Misuse of Social Security Number------------------ 92
SEC. 20 9. Definition of Wages ---------------------------------------- 93
(a) Remuneration Excluded ------------------------------------- 93,
(b) Payments Under Plan or System Excluded-------------------- 94
(c) Retirement Pay Excluded----------------------------------- 94
(d) Sick Pay Excluded------------------------------------------ 94
(e) Payments to or by Trust Exempt From Tax Under Internal
Revenue C(ode Excluded ----------------------------------- 94
(f') Playtnent of Rmil)yCCve Tax by Employer E xcluded -----------------95
(g) Payments ill Kind( anld Certain ('ash Payments for Domestic
Employment, or Em1rrployment Not ini Course of E~mployer's
Trade or Bsns Excludedl------------------------------- 95
(hi) Reimnerat ion for Agricultural Lao--When Exldd----95
( Rmune111ration Paid After Retirement Age-When Excluied -- 95
(j ) Rteniueral mu Paid( to lmnewvorkers -'When Excluded~l----------96







Revised April 1978 17

Size. 209. Definition of Wages--Continued Pase
(k) Moving Expenses of Employees ------------------------------ 96
(1) Tips ------------------------------------------------------ 96
(in) Payments by Employer Upon or After Termination of
Employment --------------------------------------------- 96
(n) Payments by Employer to Survivor of Estate of Former Employee --------------------------------------------------- 96
(o) Payments to Emvloyee Entitled to Disability Insurance Benefits- 96 (p) Remuneration Paid by Tax Exempt Organizations ------------ 96
SEC. 210. Employment ----------------------------------------------- 98
(a) Employment; Excluded Employment Defined ---------------- 98
(b) Included and Excluded Service Performed During Pay Period-- 105
(c) American Vessel Defined ------------------------------------ 103
(d) American Aircraft Defined ---------------------------------- lo3
(e) American Employer Defined --------------------------------- 106
(f) Agricultural Labor Defined ----------------------------------- 106
(g) Farm Defined ----------------------------------------------- 1()7
(h) State Defined ----------------------------------------------- 107
(i) United States Defined --------------------------------------- 107
(j) Employee Defined -------------------------------------------- 107
(k) Covered Transportation Service Defined ----------------------- 108
(1) Service in the Uniformed Services Defined -------------------- 110
(in) Member of a Uniformed Service Defined ----------------------- ill
(n) Crew Leader Defined ---------------------------------------- 112
(o) Peace Corps Volunteer Service ------------------------------- 112
SEC. 211. Self-Employment ------------------------------------------ 112
(a) Net Earnings From Self-Employment Defined ----------------- 112
(b) Self-Employment Income Defined ---------------------------- 116
(c) Trade or Business Defined ----------------------------------- 117
(d) Partnership and Partner Defined ---------------------------- 119
(e) Taxable Year Defined ---------------------------------------- 119
(f) Xomputing Deceased's Net Earnings From Self-Employment
When Partnership Taxable Year Ends Because of Death ----- 119
(g) Regular Basis ----------------------------------------------- 119
SEC. 212. Crediting of Self-Employment Income to Calendar Quarters_ 120
(a) Calendar Taxable Year ------------------------------------- 120
(b) Taxable Year Other Than a Calendar Year ------------------- 120
SEC. 213. Quarter and Quarter of Coverage --------------------------- 120
(a) Definitions ------------------------------------------------ 120
(b) Crediting of Wages Paid in 1937 ----------------------------- 123
(c) Alternative Method for Determining Quarters of Coverage for
1937 to 1950 ---------------------------------------------- 123
(d) Amount Required for a Quarter of Coverage ------------------ 123
SEC. 214. Insured Status for Purposes of Old-Age and Survivors Insurance
Benefits ------------------------------------------------- 124
(a) Fully Insured ]Individual ----------------------------------- 124
(b) Currently Insured Individual ------------------------------- 125
SEC. 215. Computation of Primary Insurance Amount ------------------ 125
(a) Primary Insurance Amount --------------------------------- 125
(b) Average Indexed Monthly Earnings; Average Monthly Wage_ 129
(c) Application of Prior Provisions in Certain Cases -------------- 131
(d) Primary Insurance Benefit Under 1939 Act ------------------- 131
(e) Certain Wages and Self-Employment Income Not To Be
Counted ------------------------------------------------- 133
(f) Recomputation of Benefits ------------------------------------ 134
(9) Rounding of Benefits --------------------------------------- 135
(h) Exclusion Under Certain Circumstances of Remuneration Paid
to Public Health Service Reserve Officer for Service Prior to
July 1, 1960 ---------------------------------------------- 135
(i) Cost-of-Living Increases in Benefits -------------------------- 136
SEC. 216. Other Definitions ------------------------------------------- 140
(a) [Repealed.]
(b) Wife ------------------------------------------------------ 140
(c) Widow ---------------------------------------------------- 140
(d) Divorced Wives, Divorce ------------------------------------- 140
(e) Child ------------------------------------------------------ 141
(f) Husband --------------------------------------------------- 141-A
(9) Widower ------------------------------------------------- 141-A







18 Revised April 1978

SEC. 216. Other Definitions-Continued Page
(hi) Determination of Status as Wife, Husband, Widow, Widower,
Child, or ParenL-------------------------------------- 142
i) Disability: Period of Disability-------------------------------- 145
(j) When Periods of Limitation End on Nonwork Days --------------148
(k) Waiver of 9-Month Requirement for Widow, Stepchild, or
Widower in Certain Death Cases, or in the Case of Remarriage
to the Same Individual------------------------------------- 148
SEC. 217. Benefits in Case of Veterans---------------------------------- 149
(a) Wage Credits for World War II Service ----------------------- 149
(b) Insured Status of World War II Veterans Dying Within 3 Years
After Separation From Active Service ------------------------ 150
(c) Time for Parent of Deceased Veteran To File Proof of Support -- 151 (d) Definition of World War 11 and World War 1I Veteran -----------152
(e) Wage Credits for Military Service After World War II -----------152
(f) Waiver of Rights to Civil Service Retirement Annuity by Widow
or Child as Condition of Entitlement to Social Security Benefits-. 154
(g) Reimbursement of Trust Fund for Cost of Wage Credits for
Certain Military Service------------------------------------ 154
(h) Wage Credits for American Citizen's World War II Service in
Armed Forces of U.S. Allies--------------------------------- 155
SEC. 218. Voluntary Agreements for Coverage of State and Local Employees------------------------------------------------- 156
(a) Purpose of Agreement-------------------------------------- 156
(b) Definitions of Terms ---------------------------------------- 156
(c) Services Covered ------------------------------------------- 15T
(d) Positions Covered by Retirement Systems ---------------------- 159
(e) Payments and Reports by States ------------------------------ 165
(f) Effective Date of Agreement--------------------------------- 166
(g) Termination of Agreement----------------------------------- 167
(h) Deposits in Trust Fund; Adjustments -------------------------- 168
(i) Purpose of Regulations Issued Under This Section --------------168
(j) Result of State Failure To M~ake Payments Required Under
Agreement----------------------------------------------- 169
(k) Instrumentalities of Two or More States ---------------------- 169
(1) Delegation of Functions-------------------------------------- 170
(in) Wisconsin Retirement Fund--------------------------------- 171
(n) Modification of Agreement To Apply to Certain Positions No
Longer Covered by Retirement Systems ----------------------- 171
(o) Modification of Agreement To Apply to Certain Employees of the
State of Utah -------------------------------------------- 171
(p) MNodification of Agreement To Apply to Policemen and Firemen
in Certain States ------------------------------------------ 172
(q) Time Limitation on Assessments------------------------------ 173
(r) Time Limitation on Credits -and Refunds ---------------------- 175
(s) Review by Secretary of Assessment; Allowance or Disallowance
of Claim for Credit or Refunds ------------------------------ 1750
(t) Review by Court -------------------------------------------- 176
(ui) Positions Compensated Solely on a Fee Basis------------------ 17t
Si.-c. 219. [Repealed.] hsIpie-- 17
Si. 220. D isability Provisions Inapplicable if Benefit RighsImare'7 Si--c. 221. 1Disability Deteriinations ----------------------------------- 177
(a) Disability Determination To Be Made by State Agency -----------177
b) Fede-ral-State Agreements------------------------------------ 177
(c) Review by Secretary on His Own M.otion of Disability DeterIninatioiis Made by -tt----------------------------------- 178
(d) Inldiv-idual Dissatisfied by Determination Entitled to H~earing ---- n78
(e) Rteimlbursemenit, of States for Cost of Carrying out Federal-State
A g reemn ts---------------------------------------------- 179
(f) I',- e of P1aymnents by -States--------------------------------- 1748
(g) Dijsability I eterinat ions Mlade by Secretary------------------ 178
IS ,C_ 222. Rtehabilitation '-ervices------------------------------------- 179
aq) Referr.al for Rehabilitation Services -------------------------1749
(ih) Di )ducl ionis on Account of Refuisal To Accept Rehabilitation 17

p)Ierioud of Trial Work ------------------------------------- 18
(d) C'osts of Rehabilitation Services From Trust Funds -----------18






Revised August 1978 19
Page
SFx. 223. Disability Insurance Benefit Payments ----------------------- 183
(a) Disability Insurance Benefits -------------------------------- 183
(b) Filing of Application ---------------------------------------- 184
(c) Definitions of Insured Status and Waiting Period -------------- 184
(d) Definition of Disability ------------------------------------- 185
SEC. 224. Reduction of Benefits Based on Disability on Account of Receipt of Workmen's Compensation ------------------------- 186
(a) Computation of Reduction ----------------------------------- 186
(b) Benefit Payable on Other Than a Monthly Basis -------------- 187
(c) Application When Other Reduction or Deduction Under this
Title Applicable ------------------------------------------ 188
(d) No Reduction if Workmen's Compensation Benefit Reduced
Because of Receipt of Title II Benefits -------------------- 188
(e) Certification by Individual as to Award or Possibility of Award
of Workmen's Compensation Benefits ---------------------- 188
(f) Redetermination of Reduction -------------------------------- 188
(g) Reduction of Auxiliary Benefits Before Reduction of Disability
Insurance Benefit ---------------------------------------- 189
SEC. 225. Suspension of Benefits Based on Disability ------------------ 189
SEC. 226. Entitlement to Hospital Insurance Benefits ------------------ 190
(a) Requirements for Entitlement-Individual over 65 ------------ 190
(b) Requirements for Entitlement-Individual under 65 ---------- 190
(c) Limitations-Deemed Entitlement ---------------------------- 190
(d) Qualified Railroad Retirement Beneficiary-Definition --------- 191 (e) Widows' and Widowers' Hospital Benefits ------------------- 192
(f) Uninsured Individuals --------------------------------------- 193
SEC. 226A. Special Provisions Relating to Coverage Under Medicare Program for End Stage Renal Disease ------------------------ 193
SEC. 227. Transitional Insured Status -------------------------------- 193
(a) Benefit Rate ------------------------------------------------ 193
(b) Widow's Benefits-Individual Deceased Prior to Becoming
Eligible Under Transitional Insured Status Provisions---.--- 193
(c) 'Widow's Benefits-Individual Deceased After Becoming EligiLle
Under Transitional Insured Status Provisions ------------- 193
SEC. 228. Benefits at Age 72 for Certain Uninsured Individuals -------- 194
(a) Eligibility -------------------------------------------------- 194
(b) Benefit Amount --------------------------------------------- 194
(c) Reduction for Governmental Pension System Benefits -------- 195
(d) Suspension for Months in Which Cash Payments Are Made
Under Public Assistance ---------------------------------- 196
(e) Suspension Where Individual Is Residing Outside the United
States -------------------------------------------------- 196
(f) Treatment as Monthly Insurance Benefits -------------------- 197
(g) Annual Reimbursement of Federal Old-Age and Survivors
Insurance Trust Fund ------------------------------------ 197
(h) Definitions ------------------------------------------------ 197
SEC. 229. Benefits in Case of Members of the Uniformed Services ------- 198
(a) Deemed Wage Credits for Service after December 1967 -------- 198 (b) Appropriations to Cover Wage Credits ----------------------- 198
SEC. 230. Adjustment of the Contribution and Benefit Base ------------ 198
(a) Publication in the Federal Register -------------------------- 198
(b) The amount of the contribution and benefit base -------------- 199
(c) Interim contribution and benefit base ------------------------ 199
SEC. 231. Benefits in Case of Certain Individuals Interned During World
War 11 -------------------------------------------------- 199-A
(a) Definition of Internee -------------------------------------- 199-A
(b) Wages ----------------------------------------------------- 200
(e) Appropriations --------------------------------------------- 201
SEC. 232. Processing of tax data -------------------------------------- 201
SEC. 233. International Agreements ----------------------------------- 202
(a) Purpose of Agreement -------------------------------------- 202
(b) Definitions ------------------------------------------------ 202
(c) Crediting Periods of Coverage; Conditions of Payment of
Benefits ------------------------------------------------- 202
(d) Regulations ----------------------------------------------- 202-B
(e) Reports to Congress Effective Date of Agreements ----------- 202-B

"I






Sec.201(a) 20

Federal Old-Age and Survivors Insurance Trust Fund and
Federal Disability Insurance Trust Fund
Section 201. (a) There is hereby created on the books of the Treastiry 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 Old-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 fiscal year 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 9 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 subchapter A of chapter 9 of such Code which are deposited into the Treasury by collectors of internal revenue after December 31, 1950, and before January 11 1953, with respect to assessments of such taxes made before
January 1, 1951; and
(3) the taxes imposed by subchapter A of chapter 9 of such
Code with respect to wages (as defined in section 1426 of such Code), and'by chapter 21 (other than sections 3101(b) and 3111 (b) ) of the Internal Revenue Code of 1954 with respect to wages (as defined in section 3121 of such Code) reported to the 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 delecrates 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 acres shall be certified by the Secretary of Health, Education, and Welf are 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
(4) the taxes imposed by subehapter E of chapter 1 of the
Internal Revenue Code of 1939, with respect to self-employment income (as defined in section 481 of such Code), and by chapter 2 (other than section 1401 (b) ) of the Internal Revenue Code of 1954 with respect to self-employment income (as defined in section 1402 of such Code) reported to the Commissioner of Internal Revenue on tax returns under such subchapter or to the Secretary of the Treasury, or his delegate on tax returns under subtitle F of such Code, as determined by the Secretary of the Treasury by applying the applicable rate of tax under such 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 from 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 as the "Federal Disability Insurance Trust Fund". The Federal Disability Insurance Trust Fund shall consist of such gifts and bequests as may be made as provided in subsection (i) (1), and of such amounts as may be appropriated to, or deposited in, such fund as provided in this section. There is hereby appropriated to the Federal Disability Insurance Trust Fund for the fiscal year ending June 30, 1957, and for each fiscal year thereafter, out of any moneys in the Treasury not otherwise appropriated, amounts equivalent to 100 per centum of(1) (A) 1/2of 1 per centum of the wages (as defined in section
3121 of the Internal Revenue Code of 1954) paid after Decem.1






Sec. 201(b) 22 Revised April 1978

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) 1.55 per centum of the wages (as so defined) paid after December 31, 1977, and before January 1, 1979, and so reported, (H) 1.50 per centum of the wages (as so defined) paid after December 31, 1978, and before January 1, 1981, and so reported, (I) 1.65 per centum of the wages (as so defined) paid after December 31, 1980, and before January 1, 1985, and so reported, (J) 1.90 per centum of the wages (as so defined) paid after December 31, 1984, and before January 1, 1990, and so reported, and (K) 2.20 per centum of the wages (as so defined) paid after December 31, 1989, and so reported.
which wages shall be certified by the Secretary of Health, 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/ 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, (I)) 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, (F) 0.7195 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,
Paragrapi (1) was aiende(A by s(ctI on 102() (1) of Public Law 95-216. The period at the end of clause (K) Is it te-chnical error and should be a comma.






Revised April 1978 23 Sec. 201(c)

(F) 0.815 of 1 per centum of the amount of self-employment income (as so defined) as reported for any taxable year beginning after December 31, 1973, and before January 1, 1978, (G) 1.090 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1977, and before January 1, 19797 (H) 1.0400 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1978, and before January 1, 1981, (1) 1.2375 per centum. of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1980, and before January 1, 1985, (J) 1.4250 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1984, and before January 1, 1990, and (K) 1.650 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1989, which self-employment income shall be 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.'
(c) With respect to the Federal 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 (hereinafter 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 operation and 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;
Paragraph (2) was amended by see. 102 (a) (2) of PublIc Law 9'5-216.







Revised April 1978 23-A Sec. 201(c)

(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 necessary changes in the provisions of the law which govern the way in
which the Trust Funds are to be manage-C1.
The report provided for in paragraph (2) above shall include a statement of the assets of, and the disbursements made from, the Trust






































35-044 0 79 3







Sec. 201 (c) 24

Funds during the preceding fiscal year, an estimate of the expected future income to, and disbursements to be made from, the Trust Funds during each of the next ensuing five fiscal years, and a statement of the actuarial status of the Trust Funds. Such report shall also include an actuarial analysis of the benefit disbursements made from the Federal Old-Age and Survivors Insurance Trust Fund with respect to disabled beneficiaries. Such report shall be printed as a House document of the session of the Congress to which the report is made.
(d) It 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 centum nearest such market yield. The Managing Trustee may purchase other interest-bearing obligations of the United States or obligations guaranteed as to both principal and interest by the United States, on original issue or at the market price, only where hie 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 F~unds) may be sold by the Managing Trustee at the market price, and such public-debt obligat ions mnay be redeemed at par plus accrued interest.
(f) The intferest on, and the proceeds from the sale or redlemption of, any oblig nations held in the. F ederal Old-Age and Survivors Insurance Trust Fiindl and the F~ederal D~isability Insurance Trust Fund shall b)e credited to andl form a part of the Federal Old-g' ,e a In d Survivors Tinirance Trust Funid and the D~isability 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) the amounts estimated by him and the Secretary of Health,
Education, and Welfare which will be expended, out of moneys appropriated from the general fund in the Treasury, during a three-month period by the Department of Health, Education, and Welfare and the Treasury Department for the administration of titles II, XVI, and XVIII of this Act and subchapter E of 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 19504
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 Health, Education, and Welfare is responsible and of carrying out the functions of the Department of Health, Education, and 'Welfare, specified in section 232, which relate to the administration of provisions of the Internal Revenue Code of 1954 other than those referred to in clause (i) of the first sentence of this subparagraph.
(B) After the close of each fiscal year the Secretary of Health, Education, and Welfare shall determine the portion of the costs, incurred during such fiscal year, of administration of this title, title XVI, and title XVIII and of carrying out the functions of the De-





Sec. 201(g) 26

partment 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 subparagraph (A)). The Managing Trustee is authorized and directed to transfer any such amounts in accordance with any certification so made.1
(2) The Managing Trustee is directed to pay from time to time from the Trust Funds into the Treasury the amount estimated by him as taxes imposed under section 3101 (a) which are subject to refund under section 6113(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 determinied on the basis of the records of wages established and maintained by the Secretary of Health, Education, and Welfare in accordance witl the wages reported to the Commissioner of Internal Revenue pi rsuant to section 1420(c) of the Internal Revenue Code of 1939 and to the Secretary of the Treasury or his delegate pursuant to subtitle F oftlhe lJt rnl 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 shall be covered into the Treasury as repayments to the account for
1, I IIhs ,n I I g) II )NI :t mended by seet1on g (d ) of Public Law 94-202. See also section 8(f) of Public Lav 94-202 which appears in this document on page 773.






27 See. 2010)

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 adj ustments shall be made by the Managing Trustee in future payments.
(4) The Board of Trustees shall prescribe before January 1, 1981, the method of determining the costs which should be borne by the genoral 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 1954 (other than those referred to in clause (i) of the first sentence of paragraph (1) (A)). If at any time or times thereafter the Boards of Trustees of such Trust Fund deem such action advisable they may modify the method so determined.'
(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 fund 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 773.





See. 202(a) 28 Revised April 1978

Old-Age and Survivors Insurance Benefit Payments
Old-Age Insurance Benefits
Sec. 202. (a) Every individual who(1) is a fully insured individual (as defined in section 214 (a)),
(2) has attained age 62, and
(3) has filed application for old-age insurance benefits or was
entitled to disability insurance benefits for the month preceding
the month in which he attained the age of 65,
shall be entitled to an old-age insurance benefit for each month, 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 bene.
fit on the basis of the wages and self-employment income of such
individual,
(C) in the case of a divorced wife, is not married, and
(D) is not entitled to old-age or disability insurance benefits
or is entitled to old-age or disability insurance benefits based on a primary insurance amount which is less than one-half of the
primary insurance amount of such individual,
shall (subject to subsection (s) ) be entitled to a wife's insurance benefit for each month be(rinniii(r with the, first month in which she becomes so entitled to such insurance benefits and ending with the month precedin(y the first month in which any of the following occurs(E) she dies,
(F) such individual dies,
(G) in the case of a wife, they are divorced and either (i) she,
has not attained age 62, or (ii) she has attained age 62 but has not been married to such individual for a period of 10 years
immediately before tbe date, the divorce becarne effective,"
'Subparagraph (G) was amended by see. 337(b) of Public lAw 95-216 effective as i4pecified In see. 337(c) which appears In this document on p. 811.





Is,%. 0 0
Revised April 1978 29 Sec. 202 M

(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,
(J) she becomes entitled to an old-age or disability insurance
benefit based on a primary insurance amount which is equal to or exceeds one-half of the primary insurance amount of such individual, or
(K) such individual is not entitled to disability insurance benefits and is not entitled to old-age insurance benefits.
(2) Except as provided in subsection (q) and paragraph (4) of this subsection, such wife's insurance benefit for each month shall be equal to one-half of the primary insuranm 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, or
(B) an individual who has attained the age of 18 and is entitled
to benefits under subsection (d),
such divorced wife's entitlement to benefits under this subsection shall, notwithstanding the provisions of paragraph (1) (but subject to subsection (s) ), not be terminated by reason of such marriage; 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) (A) The amount of a wife's insurance benefit for each month as determined after application of the provisions of subsections (q) and (k) shall be reduced (but not below zero) by an amount equal to the. amount of any monthly periodic benefit payable to such wife (or divorced wife) for such month which is based upon her earnings while in the service of the Federal Government or any State (or political subdivision thereof as defined in section 218 (b) (2) ) if on the last day she was employed by such entity, such service did not constitute employment" as defined in section 210.
(B) For purposes of this paragraph, any periodic benefit which otherwise, meets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shall be allocated on a basis equivalent to a monthly benefit (as determined by the Secretary) and such equivalent monthly benefit shall constitute a monthly periodic
I Paragraph (2) was amended by see. 334 (a) of Public Law 95-216, effective as specified in sec. 334(f) and subject to the exception specified in see. 334(g). These subsections are printed in this document on pages 809-810.






Sec. 202(b) 30 Revised April 1978

benefit for purposes of subparagraph (A). For purposes of this subparagraph, the term "periodic benefit" includes a benefit payable in a lump sum if it is a commutation of, or a substitute for, periodic payments.'
Husband's Insurance Benefits
(c) (1) The husband (as defined in section 216(f)) of an individual entitled to old-age or disability insurance benefits, if such husband(A) has filed application for husband's insurance benefits,
(B) has attained age 62, and
(C) is not entitled to old-age or disability insurance benefits,
or is entitled to old-age or disability insurance benefits based on a primary insurance amount which is less than one-half of the 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 preceding the month in which any of the following occurs: he dies, his wife dies, they are divorced, or he becomes entitled to an old-age or disability insurance benefit, based on a primary insurance amount which is equal to or exceeds one-half of the primary insurance amount of his wife, or his wife is not entitled to disability insurance benefits and is not entitled to old-age insurance benefits.'
(2) (A) The amount of a husband's insurance benefit for each month as determined after application of the provisions of subsections (q) and (k) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such husband for such month which is based upon his earnings while in the service of the Federal Government or any State (or political subdivision thereof as defined in section 218 (b) (2) ) if on the last day he was employed by such entity, such service did not constitute "employment" as defined in section 210.
(B) For purposes of this paragraph, any periodic benefit which otherwise meets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shall be allocated on a basis equivalent to a(. monthly benefit (as determined by the Secretary) and such equivalent monthly benefit shall constitute a nionthly periodic benefit for purposes of subparagraph (A). For purposes of this subpar'agra"Cph, the term "periodic benefit" includes a benefit payable in a luimp suni if it is a commutation of, or a substitute for, periodic paIyments.

I 1%ragraiph (4) was added by sec. 3134 (a) of Public Law 95-216. effective as specified In svc :34if, awl subject to the exceptions specified In sec, 334(g). These suibsections are printed in this document oni pages 809-810.






Revised April 1978 30-A Sec. 202(d)

(3) Except as provided in subsection (q) and paragraph (2) of this subsection, such husband's insurance benefit for each month shall be equal to one-half of the primary insurance amount of his wife for such month.'
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 (ii) is under a disability (as defined in section 223 (d) ) which began before he attained the
age of 22, and
(C) was dependent upon such individual(i) if such individual is living, at the time such application
was filed,
(ii) if such individual has died, at the time of such death,
or
Subsection (c) was amended (in paragraphs (1), (2), and (3) ) by see. 334 (b) of Public Law 95-216 effective as specified in see. 334(f) and subject to the exception speci. fied in s& 334(g). These subsections are printed in this document on pages 809-810.






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 (ii) is not a full-time student during any
part of such month.
(F) if such child w as not under a disability (as so defined)
at the time he attained the age of 18, the earlier of(i) the first month during no part of which he is a 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 be 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 he attains the age of 22,
but only if he was not under a disability (as so defined) in such
earlier month.
Entitlement of any child to benefits under this subsection on the basis of the wages and self-employment income of an individual entitled to disability insurance benefits shall also end with the month before the first month for which such individual is not entitled to such benefits unless such individual is, for such later month, entitled to old-age 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 s-uch benefit has not died prior to the end of such






Sec. 202(d) 32

month, be equal to one-half of the primary insurance amount of such individual for such month. Such child's insurance benefit for each month shall, if such individual has died in or prior to such month, be equal to three-fourths of the primary insurance amount of such individual.
(3) A child shall be deemed dependent upon his father or adopting father or his mother or adopting mother at the time specified in paragraph (1) (C) unless, at such time, such individual was not living with or contributing to the support of such child and(A) such child is neither the legitimate nor adopted child of
such individual, or
(B) such child has been adopted by some other individual.
For purposes of this paragraph, a child deemed to be a child of a fully or currently insured individual pursuant to section 216(h) (2) (B) or section 216(h) (3) shall be deemed to be the legitimate child of such individual.
(4) A child shall be deemed dependent upon his stepfather or stepmother at the time specified in paragraph (1) (C) if, at such time, the child was 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.
(6) A child whose entitlement to child's insurance benefits on the basis of Ilw wages and self-employment income of an insured individual terminated with the month preceding the month in which such child attained the 'ige of 18, or with a subsequent month, may again become cnt it led to such heiiefits ()rovided no event specified in paragralI (1) ()) 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) bad 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(1) 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) Por the purposes of this subsection(A) A "full-time student" is an individual who is in full-time
attendance as a student at an educational institution, as determined by the Secretary (in accordance with regulations prescribed by him) in the light of the standards and practices of the institutions involved, except that no individual shall be considered a "full-time student" if he is paid by his employer while 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 requirement (as of the beginning of such period) if he is in full-time attendance at an educational institution immediately following such period.
(C) Am "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 subsection has terminated under paragraph (1) (F) and for purposes of determining his initial entitlement to such benefits under clause (i) of paragraph (1) (B)) not to have attained such age until the first day of the first month followincy 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 sucii period of disability began, or (11) if he is an individual referred to in subparagraph (B), for the year immediately before the month in which began the period of disability of such individual which still exists at the time of adoption (or, if such child was adopted by such individual after such individual attained age 65, the period of disability of such individual which existed in the month preceding the month in which he attained age 65), or the month in which such individual became entitled to disability insurance benefit, or (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 he had become entitled to old-age insurance benefits, or disability insurance benefits, or died, for the year immediately before the month in which such period of disability began, and (ii) the period during which such child was living with such individual began before the child attained age 18.
(B) In the case of a child who was born in the one-year period during which such child must have been living with and receiving at least one-half of his support from such individual, such child shall be

35-044 0 79 4






Sec. 202(d) 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 div-orced 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) hias filed application for widow's insurance benefits, or
was entitled to wife's insurance benefits, on the basis of the wages -and self -employment income of such individual, for the month preceding the month in which he died, and (I) has attained age 635 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 -employnment income, to mother's insurance benefits for the month preceding the month in which she attained ag'e 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)
tliereof, the first month in which she becomes so entitled to such
iisirance benefits, or
(F) if she satisfies subparagraph (B) by reason of clause (ii)
thiereof(i) the first month after her waiting period (as defined in
paragraph (6l)) in which she becomes so entitled to such
insurance benefits, 0or
(ii) the first month (luring all of which she is under a disabil ity andl in wvich she becomes so entitled to such insurance' 1)enetits~ i but only if she was previously entitled to insurance beief its under' this sub~section on the basis of being under a (lisallilit V and such first month occurs (1) in the period speified ini paragraph (5) and (11) after the month in Whlichi a pre'vious entitlement to such benefits onm such basis
terlliiiilate(I,






Revised April 1978 37 Sec. 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 following the month in which her disability ceases (unless she attains age 65 on or' before the last day of such third month).
(2) (A) Except as provided in subsection (q), paragraph (8) of this subsection, and subparagraph (B) of this paragraph, such widows insurance benefit for each month shall be equal to the primary insurance amount (as determined after application of the following sentence) of such deceased individual. If such deceased individual was (or upon application would have been) entitled to an old-age insurance benefit which was increased (or subject to being increased) on account of delayed retirement under the provisions of subsection (w), then, for purposes of this subsection, such individual's primary insurance amount, if less than the old-age insurance benefit (increased, where applicable, under section 215(f) (5) or (6) and tinder section 215 (i) as if such individual were still alive in the case of an individual who has died) which he was 'receiving (or would upon application have received) for the month prior to the month in which he died, shall be deemed to he equal to such old-age insurance benefit., and (notwithstanding the provisions of paragraph (3) of such subsection
(w) the number of increment months shall include any month in the month.,--- of the calendar year in which he died, prior to the month in which be died, which satisfy the conditions in paragraph (2) of such subsection (w) 1
(B) If the deceased individual (on the basis of whose wages and self-employment income a widow or surviving divorced wife is entitled to widow's insurance benefits under this subsection) was, at anv time, entitled to an old-age insurance benefit which was reduced by reason of the application of subsection (q), the widow's insurance benefit of such widow or surviving, divorced wife for any month shall, if the amount of the widow's insurance benefit of such widow or surviving divorced wife (as determined under subparagraph (A) and after application of subsection (q)) is greater than(i) the amount of the old-age insurance benefit to which such
deceased individual would have been entitled (after application of subsection (q)) for such month if such individual were still living and section 215(f) (5) or (6) were applied, where applicable,, and 2
Subparagraph (A) was amended by see. 204 (a), effective for months after May 1978 and by sees. 334 (c) (1) and 336 (a) (1) of Public Law 95-216. The amen(iment made by see. 336 (a) (1) is effective as specified In see. 336(e) which Is printed in this document on page 811.
2 Subparagraph (B) (I) was amended by see. 204 (b) of Public Law 95-216. The double comma Is a technical error.






Sec. 202(e) 38 Revised April 1978

(ii) 82 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 ciause (ii).
(3) If a widow, before attaining age 60, or a surviving divorced wife, marries(A) an individual entitled to benefits under subsection (f) or
(h) of this section, or
(B) an individual who has attained the age of eighteen and is
entitled to benefits under subsection (d),
such widow's or surviving divorced wife's entitlement to benefits under this subsection shall, notwithstanding the provisions of paragraph (1) but subject to subsection (s), not be terminated by reason of such marriage; except that, in the case of such a marriage to an individual entitled to benefits under subsection (d), the preceding provisions of this paragraph shall not apply with respect to benefits for months after the last month for which such individual is entitled to such benefits under subsection (d) unless he ceases to be so entitled by reason of his death.'
(4) If a widow, after attaining age 60, marries, such marriage shall, for purposes of paragraph (1), be deemed not to have occurred.2
(5) The period referred to in paragraph (1) (B) (ii), in the case of any widow or surviving divorced wife, is the period beginning with whichever of the following is the latest:
(A) the month in which occurred the death of the fully insured individual referred to in paragraph (1) on whose wages and self-employment income her benefits are or would be based,
or
(13) the last moth 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,
an(I 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 fi ve consecutive calendar' monthsI ':iraj.rapu.i (8*") wiis ,I niended by see. 2:1(1 (a) (2) of Public Law 95-216 effective as speciid III ,-ec. 886 IGc) h Iis printed in this docWumenJt on p. 811.
ri trui 4 %\,s i tr'nded by sec. .136 (b) (2) of Public Law 95-216 effective as specM- In~~~* :;( wuilii is prin~ted in this dlocumlenit on p. 811. (In general, the amendim-iet Is effecivr- .January 1979.)






Revised April 1978 39 Sec. 202 (f

(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.
(8) (A) The amount of a widow's insurance benefit for each n-lontli as determined (after application of the provisions of subsections (q) and (k), paragraph (2) (B), and paragraph (4)) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such widow (or surviving divorced wife) for such month which is based upon her earnings while in the service of the Federal Government or any State (or any political subdivision thereof, as defined in section 218(b) (2)) if, on the last day she was employed by such entity, such service did not constitute employmentn" as defined in section 210.
(B) For purposes of this paragraph, any periodic benefit which otherwise meets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shall be allocated on a basis equivalent to a monthly benefit (as determined by the Secretary) and such equivalent monthly benefit shall constitute a monthly periodic benefit for purposes of subparagraph (A). For purposes of this subp(aragraph, the term "periodic benefit" includes a benefit payable in a lump sum if it is a commutation of, or a substitute for, periodic payments.
Widower's Insurance Benefits
(f ) (1) The widower (as defined in section 216 (g) ) of an individual who died a fully insured individual, if such widower(A) has not remarried,
(B) (i) has attained age 60, or (ii) has attained age 50 but has
not attained age 60 and is under a disability (as defined in section 223(d)) which began before the end of the period specified in
paragraph (6),
Paragraph (8) was added by see. 334 (c) (2) of Public Law 95-216, effective as specified in sec. 334(f) and subject to the exception specified In see. 334(g). These subsections are printed In this document on pp. 809-810.







Sec. 202 (f 40 Revised April 1978

(C) has filed application for widower's insurance benefits or
was entitled to husband's insurance benefits, on the basis of the wages and self-employment income of such individual, for the month preceding the month in which she died, and (1) has attained age 65 or (11) is not entitled to benefits under subsection
(a) or section 223,
(D) is not entitled to old-age insurance benefits, or is entitled
to old-acre insurance benefits each of which is less than the primary insurance amount of his deceased wife,
shall be entitled to a widower's insurance benefit for each month, beginning with(E) if he satisfies subparagraph (B) by reason of clause (i)
thereof, the first month in which he becomes so entitled to such
insurance benefits, or
(F) if he satisfies subparagraph (B) by reason of clause (ii)
thereof. (i) the first month after his waiting period (as defined in

paragraph (7)) in which he becomes so entitled to such insurance benefits, or
(ii) the first month during all of which he is under a disability and in which he becomes so entitled to such insurance benefits, but only if he was previously entitled to insurance benefits under this subsection on the basis of being under a disability and such first month occurs (I) in the period specified in paragraph (6) and (II) after the month in which a previous entitlement to such benefits on such basis
terminated,
and ending with the month preceding the first month in which any of the following occurs: he remarries, dies, or becomes entitled to an 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 aore 60 the third month following the month in which his disability ceases (unless he attains age 65 on or before the last day of such third month)
(2) (A) The amount of widower's insurance benefit for each month (as determined after application of the provisions of subsections (k) and (q), paragraph (3) (B), and paragraph (5)) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable, to such widower for such month which is based upon his earnings while in the service of the Federal Goveriimejit, or any State (or any political subdivision thereof, as defiried in section 218(b) (2)) if, on the last day he was employed by
I Pa rit writ ph (1) was amended by see. 334(d)(1) of Public Law 95-216.






Revised April 1978 41 Sec. 202(f)

such entity, such service did not constitute "employment" as defined in section 210.
(B) For purposes of this paragraph, any periodic benefit which otherwise meets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shaJI be allocated on a basis equivalent to a monthly benefit (as determined by the Secretary) and such equivalent monthly benefit shall constitute a monthly periodic benefit for purposes of subparagraph (A). For purposes of this subparagraph, the term "periodic benefit" includes a benefit payable in a lump sum if it is a commutation of, or a substitute for, periodic payments.'
(3) (A) Except as provided in subsection (q), paragraph (2), of this subsection, and subparagraph (B) of this paragraph, such widower's insurance benefit for each month shall be equal to the primary insurance amount (as determined after application of the following sentence) of his deceased wife. If such deceased individual was (or upon application would have been) entitled to an old-age insurance benefit which was increased (or subject to being increased) on account of delayed retirement under the provisions of subsection (w), then, for purposes of this subsection, such individual's primary insurance amount, if less than the old-age insurance benefit (increased, where applicable, under section 215 (f ) (5) or (6) and under section 215 (i) as if such individual were still alive in the case of an individual who has died) which she was receiving (or would upon application have received) for the month prior to the month in which she died, shall be deemed to be equal to such old-age insurance benefit, and (notwithstanding the provisions of paragraph (3) of such subsection (w) ) the number of increment months shall include any month in the months of the calendar year in which she died, prior to the month in which she died, which satisfy the conditions in paragraph (2) of such subsection (W) 0 2
(B) If the deceased wife (on the basis of whose wages and selfemployment 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(i) the amount of the old-age insurance benefit to which such
deceased wife would have been entitled (after application of subParagraph (2) was amended by see. 334 (d) (2) of Pu lic Law 95-216 effective as specifled in see. 334 (f ) and subject to the exception specified in see. 334 (g) These subsections are printed in this document on pp. 809-810.
2 Paragraph (3) (A) was amended by see. 204 (c) of Public Law 95-216 effective for months after May 1978. Par 334 (d) (3) and see.
336(b) (1) of Public Law _21 h (3) (A) was also amended by see






Sec. 202(f) 42 Revised April 1978

section (q)) for such month if such wife were still living and section 215(f) (5) or (6) were applied, where applicable,; and
(ii) 821/ percent 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
(4) If a widower, before attaining age 60, remarries(A) an individual entitled to benefits under subsection (b),
(e), (g), or (h), or
(B) an individual who has attained the age of eighteen and is
entitled to benefits under subsection (d),
such widower's entitlement to benefits under this subsection shall, notwithstanding the provisions of paragraph (1) but subject to subsection (s), not be terminated by reason of such marriage.2
(5) If a widower, after attaining the age of 60, marries, such marriage shall, for purposes of paragraph (1), be deemed not to have occurred.3
(6) The period referred to in paragraph (1) (B) (ii), in the case of any widower, is the period beginning with whichever of the 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
(B) the month in which a previous entitlement to widower's
insurance benefits on the basis of such wages and self-employment income terminated because his disability had ceased,
and ending with the month before the month in which he attains age 60, or, if earlier, with the close of the eighty-fourth month following the month with which such period began.
(7) The waiting period referred to in paragraph (1) (F), in the case of any widower, is the earliest period of five consecutive calendar nlonths(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.4
(8) In the case of an individual entitled to monthly insurance benefits payable inder this section for any month prior to January
1 Paragraph (3) was amended by se. 204(d) of Public Law 95-216 effective for months after May 1!78. The comna precedilng the semi(olon is a technical error.
Paragira ph (4h was amended by sec. 336(b)(2) of Public Law 95-216.
1 'ar. ra ph (5 was a mended by seC. 336(b) (3) of Public Law 95-216 effective as sPmfi~d Jin s.c. 82:;6(c) which is printed in this dounent on p. 811.
P 'aragraph (7) was amended by see. 334(d) (4) (A) of Public Law 95-216.





I
Revised April 1978 43 Sec. 202(g)

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), 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,
(g) 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.






Sec. 202(g) 44 Revised April 1978

(2) Except as provided in paragraph (4) of this subsection, such mother's insurance benefit for each month shall be equal to threef ourths 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 has attained the age of eighteen and is
entitled to benefits under subsection (d),
the entitlement of such widow or surviving divorced mother to benefits under this subsection shall, notwithstanding the provisions of 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 for months after the last month for which such individual is entitled to such benefits under section 223 (a) or subsection (d) of this section unless (i) he ceases to be so entitled by reason of his death, or (ii) in the case of an individual who was entitled to benefits under section 223 (a), he is entitled, for the month following such last month, to benefits under subsection (a) of this sect ion.
(4) (A) The amount of a mother's insurance benefit for each month to which any individual is entitled under this subsection (as determined after application of subsection (k)) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such individual for such month which is based upon such individual's earnings while in the service of the Federal Government or any State (or political subdivision thereof as defined in section 218 (b) (2) ) if, on the last day such individual was employed by such entity, such service did not constitute "~employment" as defined in section 210.
(B3) For purposes of this paragraph, any periodic benefit which otherwise me 'ets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shall be allocated on a basis equivalent to a monthly benefit (as determined by the Secretary) amnd such equivalent monthly benefit shall constitute a monthly periodic benefit for purposes of subparagraph (A). For purposes ofl this subpai-araph, the termn "periodic benefit" includes a benefit p)ayab~le in a lump sum if it is a commutation of, or a substitute for, )eiodic p~aymuents.,

I I'nrawrapli (2) was amended and paragraph (4) was added by sec. 334(e) of Public La%% !15 216 effective is spe-cified In soe. 3341(f) and subject to the exVcption specified in sec. "34(g). Tfivse silbsectioni8 are printed In this document on pp. 809-810.






Revised April 1978 45 Sec. 202(h)

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 f rom sucli
individual at the time of such individual's death or, if such individual had a period of disability which did not end prior to the month in which he died, at the time such period began or at the time of such death, and (ii) filed proof of such support within two years after the date of such death, or, if such individual had such a period of disability, within two years after the month in which such individual filed application with respect to such period of disability or two years after the date of such death, as the case
may be,
(C) has not married since such individual's death,
(D) is not entitled to old-age insurance benefits, or is entitled
to old-age insurance benefits each of which is less than 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 parenVs insurance benefit for each month beginiting 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 an 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 iii subp,%ragraph (C)) be equal to 75 percent of the primary insurance amount of such deceased individual.
(C) In any case in which(1) any parent is entitled to a parent's insurance benefit for a
month on the basis of a deceased individual's wages and selfemployment income, and






Sec. 202 (h) 46 Revised April 1978

(ii) another parent of such deceased individual is entitled to a
parent's insurance benefit for such month on the basis of such wages and self -employment income, and on the basis of an 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 (i i) 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),
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 (dI), the preceding provisions of this paragraph shall not apply with respect to benefits for months af ter 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 su1ch individual's primary insurance amount, or an amount equal to $255, whichever is the smaller, shall be paid in a lumip sumi to the personl, if a.ny, determined by the Secretary to be the widow or widower of thle deceased aind to have been living in the same household with the deeasRed at the timne of death. If there is no such person, or if such per5011, dies before reeiin aymen~t, then such amount shall be paid(1) if all or part of the burial expenses of such insured individiual wh'lich :11e Incurr-ed by or through a funeral home or fun-






Revised April 1978 47 Sec. 202(i)

eral 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 he or they shall have paid such
burial expenses;
(3) if the body of such insured individual is not available for
burial but expenses were incurred with respect to such individual in connection with a memorial service, a memorial marker, a site for the marker, or any other item of a kind for which expenses are customarily incurred in connection with a death and such expenses have been paid, to any person or persons, equitably entitled thereto, to the extent and in the proportions that he or
they shall have paid such expenses; or
(4) if any part of the amount payable under this subsection
remains after payments have been made pursuant to clauses (1), (2), and (3), to any person or persons, equitably entitled thereto, to the extent and in the proportions that he or they shall have paid other expenses in connection with the burial of such insured 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 out-






Sec. 202(i) 48 Revised April 1978

side 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 b 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 lie was performing service, as a member of a uniformed service, to which the provisions of section 210(l) (1) are applicable, and who is returned to any State or to a y Territory or possession of the United States, for interment or reinterment, the provisions of the third sentence of this subsection shall not prevent payment to any person under the second sentence of this subsection if application for a lump-sum death payment with respect to such deceased individual is filed by or on behalf of such person (whether or not legally competent) prior to the expiration of two years after the date of such interment or reinterment.
Application for Monthly Insurance Benefits
(j) (1) Subject to the limitations contained in paragraph (4), an individual who would have been entitled to a benefit under subsection
(a), (b), (c), (d), (e), (f), (g), or (h) for any month after August 1950 had he filed application therefor prior to the end of such month shall be entitled to such benefit for such month if he files application therefor prior to the end of the twelfth month immediately succeeding such month. Any benefit under this title for a month prior to the month in which application is filed shall be reduced, to any extent that may be necessary, so that it will not render erroneous any benefit which, before the filing of such application, the Secretary has certified for payment for such prior month."
(2) An application for any monthly benefits under this section filed before the first month in which the applicant satisfies the requirements for such benefits shall be deemed a valid application only if the applicant satisfies the requirements for such benefits before the Secre tary makes a final decision on the application. If upon final decision by the Secretary, or decision upon judicial review thereof, such appliI Paragraph (i) was amended by see. 332(a) of Public Lew 95-216.






Revised April 1978 49 Sec. 202(j)

cant is found to satisfy such requirements, the application shall be deemed to have been filed in such first month.
(3) Notwithstanding the provisions of paragraph (1), an individual may, at his option, waive entitlement to any benefit referred to in paragraph (1) for any one or more consecutive months (beginning with the earliest month for which such individual would otherwise be entitled to such benefit) which occur before the month in which such individual files application for such benefit; and, in such case, such individual shall not be considered as entitled to such benefits for any such month or months before such individual filed such application. An individual shall be deemed to have waived such entitlement for any such month for which such benefit would, under the second sentence of paragraph (1), be reduced to zero.
(4) (A) Except as provided in subparagraph (B), no individual shall be entitled to a monthly benefit under subsection (a), (b), (c),
(e), or (f) for any month prior to the month in which he or she files an application for benefits under that subsection if the effect of entitlement to such benefit would be to reduce, pursuant to subsection (q), the amount of the monthly benefit to which such individual would otherwise be entitled for the month in which such application is filed.
(B) (i) If the individual applying for retroactive benefits is applying for such benefits under subsection (a), and there are one or more other persons who would (except for subparagraph (A)) be entitled for any month, on the basi's of the wages and self-employment income of such *individual and because of such individual's entitlement to such retroactive benefits, to retroactive benefits under subsection (b),
(c), or (d) not subject to reduction under subsection (q), then subparagraph (A) shall not apply with respect to such month or any subsequent month.
(ii) If the individual applying for retroactive benefits is a widow, surviving divorced wife, or widower and is under a disability (as defined in section 223 (d) ), and such individual would, except for subparagraph (A), be entitled to retroactive benefits as a disabled widow or widower or disabled surviving divorced wife for any month before attaining the age of 60, then subparagraph (A) shall not apply with respect to such month or any subsequent month.
(iii) If the individual applying for retroactive benefits has excess earnings (as defined in section 203 (f ) ) in the year in which he or she files an application for such benefits which could, except for subparagraph (A), be charged to months in such year prior to the month of application, then subparagraph (A) shall not apply to so many of such months immediately preceding the month of application as are required to charge such excess earnings to the maximum extent possible.






Sec. 2020) 50 Revised April 1978
(iv) As used in this subparagraph, the term "retroactive benefits" means benefits to which an individual becomes entitled for a month prior to the month in which application for such benefits is filed.'
Simultaneous Entitlement to Benefits
(k) (1) A child, entitled to child's insurance benefits on the basis of the wages and self -employment income of an insured individual, who would be entitled, on filing application, to child's insurance benefits on the basis of the wages and self-employment income of some other insured individual, shall be deemed entitled, subject to the provisions of paragraph (2) hereof, to child's insurance benefits on the basis of the wages and self -employment income of such other individual if an application for child's insurance benefits on the basis of the wages and self-employment income of such other individual has been filed by any other child who would, on filing application, be entitled to child's insurance benefits on the basis of the wages and self-employment income of both such insured individuals.
(2) (A) Any child who under the preceding provisions of this section is entitled for any month to child's insurance benefits on the wages and self-employment income of more than one insured individual shall, notwithstanding such provisions, be entitled to only one of such child's insurance benefits for such month. Such child's insurance benefits for such month shall be the benefit based on the wages and self-employment income of the insured individual who has the greatest primary insurance amount, except that such child's insurance benefits for such month shall be the largest benefit to which such child could be entitled under subsection (d) (without the application of section 203 (a)) or subsection (m) if entitlement to such benefit would not, with respect to any person, result in a benefit lower (after the application of section 203 (a) ) than the benefit which would be applicable if such child were entitled on the wages and self-employment income of the individual with the greatest primary insurance amount. Where more than one child is entitled to child's insurance benefits pursuant to the preceding provisions of this paragraph, each such child who is entitled on the wages and self-employment income of the same insured individuals shall be entitled on the wages and self-employment income of the same such insured individual.
(B) Any individual (other than an individual to whom subsection
(e) (1) 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 (I I ability insurance benefit) under this title shall be entitled to only Olle slieli montlily benefit for such month, such benefit to be the largest

Paragraph (4) was added by see. 332(a) of P.L. 95-216.






Revised April 1978 51 See. 202(m)

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'sor 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 202 (other than an old-age insurance benefit), such other insurance benefit for such month, after any reduction under subparagraph (A), any reduction under subsection (q), and any reduction under section 203
(a), shall be reduced, but not below zero, by an amount equal to such widow's or widower's insurance benefit after any reduction or reduetions under such subparagraph (A) and such section 203 (a).
(4) Any individual who, under this section and section 223, is entitled for any month to both an old-age insurance benefit and a disability insurance benefit under this title shall be entitled to only the larger of such benefits for such month, except that, if such individual so elects, he shall instead be entitled to only the smaller of such benefits for such month.
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 en titled to a monthly benefit under this section on the basis of a primary insurance amount computed under section 215 (a) or (d) as in effect after December 1978, on the basis of the wages and self-employment income of a


35-044 0 79 5






See. 202(m) 52 Revised April 1978

deceased individual for any month and no other person is (without the application of subsection (j) (1)) entitled to a monthly benefit under this section for that month on the basis of such wages and self-employment income, the individual's benefit amount for that month, prior to reduction under subsection (k) (3), shall not be less than that, provided by subparagraph (C) (i) (I) of section 215 (a) (1) and increased under section 215 (i) for months after May of the year in which the insured individual died as though such benefit were a primary insurance amount.'
(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 month, or
(B) $81.50 reduced under subsection (q) (1) as if retirement
age as specified in subsection (q) (6) (A) (ii) were age 62 instead of the age specified in subsection (q) (9), if his first month of en' in
titlement 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 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), (12), (14), (15)9 (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
Paragraph (1) was amended by see. 205(a) of Public Law 95-216 effective for benefits payable after Deceniber 19T8.






Revised April 1978 53 Sec. 202(n)

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
benefitcould be paid to him if he were alive) for any month by reason of subparagraph (A), no monthly benefit under this section shall be paid, on the basis of his wages and self-employment income, for such month to any other person who is not a citizen of the United States and is outside the United States for any part of
such month, and
(C) no lump-sum death payment shall be made on the basis of
such individual's wages and self-employment income if he dies (i) in or after the month in which such notice is received, and (iii) before the month in which lie is thereafter lawfully admitted
to the United States for permanent residence.
Section 203 (b), (c), and (d) of this Act shall not apply with respect to any such individual for any month for which no monthly benefit may be paid to him by reason of this paragraph.
(2) 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 an y individual who would be entitled to benefits under subsection (d), (e), (g), or (h), upon filing proper application therefor, the filing with the Administrator of Veterans' Affairs by or on behalf of such individual of an application for such benefits, on the form described in section 3005 of title 38, United States Code, shall satisfy the requirement of such subsection (d), (e), (g), or (h) that an application for such benefits be filed. Extension of Period for Filing Proof of Support and Applications for Lump-Sum Death Payment
(p) In any case in which there is a failure(1) to file proof of support under subparagraph (B) of subsection (h) (1) or under clause (B) of subsection (f ) (1) of this section as in effect prior to the Social Security Act Amendments of 1950, within the period prescribed by such subparagraph or
clause, or 1
(2) to file, in the case of a death after 1946, application for a
lump-sum death payment under subsection (i), or under subsection
Paragraph (1) was amended by see. 334(d) (5) of Public Law 95-216 effective as specified in see. 334(f) which Is printed in this document on p. 809.






See. 202(p) 54 Revised April 1978

(g) of this section as in effect prior to the Social Security Act Amendments of 1950, within the period prescribed by such subsection,
any such proof or application, as the case may be, which is filed after the expiration of such period shall be deemed to have been filed within such period if it is shown to the satisfaction of the Secretary that there was good cause for failure to file such proof or application within such period. The determination of what constitutes good cause for purposes of this subsection shall be made in accordance with 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 suchmonth and for any subsequent month shall, subject to the succeeding paragraphs of this subsection, be reduced by(A) % of 1 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 (I) for the month in which such individual attains age 62, or (II) for the month in which such individual attains
retirement age;
and in the case of a widow or widower whose first month of entitlement to a widow's or widower's insurance benefit is a month before the month in which such widow or widower attains age 60, such benefit, reduced pursuant to the preceding provisions of this paragraph (and before the application of the second sentence of paragraph (8)), shall be further reduced byC ) 43 "240of 1 percent of the amount of such benefit, multiplied
by
(D) (i) the number of months in the additional reduction
1)ei-iod f(w stich benefit (determined tinder paragraph (6) (11)), 'if siwh heiiefit is for -t month Mom the month in which such indiNidual attains age 62, or







]Revised April 1978 55 Sec. 202(q)

(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 o provided in su paragraph (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 reduced by the sum of(i) the amount by which such old-age insurance benefit is reduced under paragraph (1) for such month, and
(ii) the amount by which such wife's or husband's insurance
benefit would be reduced under paragraph (1) for such month if it were equal to the excess of such wife's or husband's insurance benefit (before reduction under this subsection) over such oldage insurance benefit (before reduction under this subsection).
(C) For any month for which such individual is entitled to a disability insurance benefit, such individual's wife's, husband's, widow's, or widower's insurance benefit shall be reduced by the sum of(i) the amount by which such disability insurance benefit is reduced under paragraph (2) for such month (if such paragraph
applied to such benefit), and
(ii) the amount by which such wife's, husband's, widow's, or
widower's insurance benefit would be reduced under paragraph (1) for such month if it were equal to the excess of such wife's, husband's, widow's, or widower's insurance benefit (before re-







See. 202(q) 56 Revised April 1978

duction under this subsection) over such disability insurance
benefit (before reduction under this subsection).
(D) For any month for which such individual is entitled neither to an old-age insurance benefit nor to a disability insurance benefit, such individual's wife's, husband's, widow's, or widower's insurance benefit shall be reduced by the amount by which it would be reduced under paragraph (1).
(E) If the first month for which an individual is entitled to an oldagre 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 iicower~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 whichever of the following is the larger:
(i) the amount by which (but for this subparagraph) such
old-age insurance benefit would have been reduced under 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 month in which she or he attained age 62 and (II) 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 disability 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) ini the case of a widower, be) entitled to a widow's or widower's insurain nce beniiefi t to which such individual was first entitled for a month be f ore shie o r hie attained retirement age, then such disability insurance benefit for eachi month shall be reduced by whichever of the following is larger:
(i) thieamount by wiceh (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






Rmsed April 1978 57 Sec. 202(q)

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 (II) 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's
insurance benefit (before reduction under this subsection).
(G) If the first month for which an individual is entitled to a disability insurance benefit (when such first month occurs before the month in which such individual attains the age of 62) is a month for which such individual is also (or would, but for subsection (e) (1) in the case of a widow or surviving divorced wife or subsection (f) (1) in the case of a widower, be) entitled to a widow's or widower's 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 widowerls insurance benefit is a month for which such individual is also entitled to an old-age insurance benefit to which such individual was first entitled for that month or for a month before she or he became entitled to a widow's or widower's benefit, the reduction in such widow's or widower's insurance benefit shall be determined under paragraph (1).1
(4) If(A) an individual is or was entitled to a benefit subject to reduction under paragraph (1) or (3) of this subsection, and
(B) such benefit is increased by reason of an increase in the
primary insurance amount of the individual on whose wages and
self-employment income such benefit is based,
then the amount of the reduction of such benefit (after the application of any adjustment under paragraph (7)) for each month beginning with the month of such increase in theprimary insurance amount shall be computed under paragraph (1) or (3), whichever applies, as though the increased -primary insurance amount had been in effect for and after the month for which the individual first became entitled to such monthly benefit reduced under such paragraph (1) or (3) .'
(5) (A) No wife's insurance benefit shall be reduced under this subsectionI Subparagraph (H) was amended bv sec. 331 W (2) of Publie. Law 95-216.
2 Paragraph (4) was amended by see. 331 (a) of Public Law 95-216.






Sec. 202(q) 58 Revised April 1978

(i) for any month before the first month for which there is in
effect a certificate filed by her with the Secretary, in accordance with regulations prescribed by him, in which she elects to receive wife's insurance benefits reduced as provided in this subsection, or
(ii) for any month in which she has in her care (individually
or jointly with the person on whose wages and self-employment income her wife's insurance benefit is based) a child of such person
entitled to child's insurance benefits.
(B) Any certificate described in subparagraph (A) (i) shall be 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(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 dav 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






Revised April 1978 59 Sec. 202(q)
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 aore; and
(B) the "additional reduction period" for an individual's
widow's, or widower's insurance benefit is the period(i) beginning with the first day of the first month for
which such individual is entitled to such benefit, but only if such individual has not attained age 60 in such first month,
and
(ii) ending with the last day of the month before the,
month in which such individual attains age 60.
(7) For purposes of this subsection the "adjusted reduction period" for an individual's old-age, wife's, husband's, widow's, or widower's insurance benefit is the reduction period prescribed in paragraph (6)
(A) for such benefit, and the "additional adjusted reduction period" for an individual's, widow's, or widower's, insurance benefit is the 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 n-wnth in which
she had in her care. (individually or jointly with the person on.
whose wages and self-employment income such benefit is based)
a child of such person entitled to child's insurance benefits,
(C) in the case of wife's or husband's insurance benefits, any
month for which such individual was not entitled to such benefits because of the occurrence of an event that terminated her or
his entitlement to such benefits,'
(D) in the case of widow's insurance benefits, any month in
which the reduction in the amount of such benefit was determined
under paragraph (5) (D),
(E) in the case of widow's or widower's insurance benefits, any
month before the month in which she or he attained age 62, aild also for any later month before the month in which he attained retirement aze. for which she or he was not entitled to such bene,fit because of the occurrence of an event that terminated her or his
entitlement to such benefits, and
(F) in the case of old-age insurance benefits, any month for
which such individual was entitled to a disability insurance benefit.
(8) This subsection shall be applied after reduction under section 203 (a) and after application of section 215 (g) If the amount of any
I subparagraph (C) was amended by see. 331 (c) (1) of Public Law 95-216.






Sec. 202 (q) 60 Revised April 1978

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.
(10) For purposes of applying paragraph (4), with respect to monthly benefits payable for any month after December 1977 to an individual who was entitled to a monthly benefit as reduced under paragraph (1) or (3) prior to January 1978, the amount of reduction in such benefit for the first month for which such benefit is increased by reason of an increase in the primary insurance amount of the individual on whose wages and self-employment income such benefit is based and for all subsequent months (and similarly for all subsequent increases) shall be increased by a percentage equal to the percentage increase in such primary insurance amount (such increase being made in accordance with the provisions of paragraph (8)). In the case of an individual whose reduced benefit under this section is increased as a result of the use of an adjusted reduction period or an additional adjusted reduction period (in accordance with paragraphs (1) and (3) of this subsection), then for the first month for which such increase is effective, and for all subsequent months, the amount of such reduction (after the application of the previous sentence, if applicable) shall be determined(A) in the case of old-age, wife's, and husband's insurance
benefits, by multiplying such amount by the ratio of (i) the number of months in the adjusted reduction period to (ii) the number
of months in the reduction period,
(B) in the case of widow's and widower's insurance benefits
for the month in which such individual attains age 62, by multiplying such amount by the ratio of (i) the number of months in the reduction period beginning with age 62 multiplied by 1%0 of 1 percent, plus the number of months in the adjusted reduction period prior to age 62 multiplied by 1%0 of I percent, plus the number of months in the adjusted additional reduction period multiplied by 43/240 of 1 percent to (ii) the number of months in the reduction period multiplied by 1%0 of 1 percent., plus the number of months in the additional reduction period multiplied
by 43/240 Of 1 percent, and
(C) in the case of widow's and widower's insurance benefits
for the, month in which such individual attains acre 65. by multiplyin(r such amountt by the ratio of (i) the number of months in' the adjusted reduction period multiplied by 1%0 of 1 percent, I)Ius Hie nuniber of months in the adjusted additional reduction period nnfltil)lied by 4 '3/'2 4 0 0 f 1 percent to (ii) the, number of montlis in the reduction period be(7r1iiniiig with age 62 multiplied







Revised April 1978 61 See. 202 (s)

by 19 1 0 of 1 percent, plus the number of months in the adjusted reduction period prior to age 62 multiplied by 1%0 of 1 percent, plus the number of months in the adjusted additional reduction
period multiplied by 4:Y240 of 1 percent.
such determination being made in accordance with the provisions of paragraph (8).11
(11) When an individual is entitled to more than one monthly benefit under this title and one or more of such benefits are reduced under this subsection, paragraph (10) shall apply separately to each such benefit reduced under this subsection before the application of subsection (k) (pertaining to the method by which monthly benefits are offset when an individual is entitled to more than one kind of benefit) and the application of this paragraph shall operate in conjunction with paragraph (3).2
Presumed Filing of Application by Individuals Eligible for Old-Age Insurance
Benefits and for Wife's or Husband's Insurance Benefits
(r) (1) If the first month for which an individual is entitled to an old-age insurance benefit is a month before the month in which such individual attains age 65, and if such individual is eligible for a wife's or husband's insurance benefit for such first month, such individual shall be deemed to have filed an application in such month for wife's or husband"s insurance benefits.
(2) If the first month for which an individual is entitled to a wife's or husband's insurance benefit reduced under subsection (q) is a month before the month in which such individual attains age 65, and if such individual is eligible (but for section 202 (k) (4) ) for an old-age 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.
Child Aged 18 or Over Attending School
(s) (1) For the purposes of subsections (b) (1), (g) (1), (q) (5), and (q) (7) of this section and paragraphs (2), (3), and (4) of 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)
IL Paragraph (10) was added by see. 331 (b0 of Public Law 95-216.
2 Paragraph (11) was added by see. 331 (b) Public Law 95-216.


1







Sec. 202 (s) 62 Revised April 1978

shall be deemed not entitled to such benefits for such month, unless he was under such a disability in the third month before such month.
(2) Subsection (f ) (4), and so much of subsections (b) (3),
(d) (5), (e) (3), (g) (3), and (hi) (4), of this section as precedes the semicolon, shall not apply in the case of any child unless such child, at the time of the marriage referred to therein, was under a disability (as defined in section 223(d)) or had been under such a disability in the third month before the month in which such marriage occurred.
(3) So much of subsections (b) (3), (d) (5), (e) (3), (g) (3), and
(h) (4) of this section as follows the semicolon, the last sentence of subsection (c) of section 203, subsection (f) (1) (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) prior to the first month thereafter for all of which such
individual has been in the United States.
For purposes of the preceding sentence, after an individual has been outsideC 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 ol-ae retirement, or death, and
(11) individuals who are citizens of the United States but not
citizens of suhfoj~reg country and who qualify for such benefits are permiittedl to receive, such benefits or the actuarial equivalent
'ut~w-tlon (3) WfMwn, ided 1)'y Ker. .334(d) (6) of Public Law 95-216 effective as
~peitedin sf-c. 3114(f) which Is printed In this document on p. 809.







Revised April 1978 63 Sec. 202(t)

thereof while outside such foreign country without regard to
the duration of the absence.
(3) Paragraph (1) shall not apply in any case where its application would be contrary to any treaty obligation of the United States in effect on the date of the enactment of this subsection.
(4) Paragraph (1) shall not apply to any benefit for any month if(A) not less than forty of the quarters elapsing before such
month are quarters of coverage for the individual on whose wages
and self-employment income such benefit is based, or
(B) the individual on whose wages and self-employment 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 (1) (2)), or an injury which he determines was incurred or aggravated in line of duty while on inactive duty training (as defined in section 210 (1) (3) ), as a member of a uniformed service (as defined in section 210 (m) ), if the Administrator determines that such individual was discharged or released f rom 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 subparagraphs (A) and (B) of this paragraph shall not apply in the case of any individual who is a citizen of a foreign country that has in effect a social insurance or pension system which is of general application in such country and which satisfies subparagraph (A) but not subparagraph (B) of paragraph (2), or who is a citizen of a foreign country that has no social insurance or pension system of general application if at any time within five years prior to the month in which the Social Security Amendments of 1967 are







Sec. 202(t) 64 Revised April 1978

enacted (or the first month thereafter for which his benefits are subject to suspension under paragraph (1)) payments to individuals residing in such country were withheld by the Treasury Department under the first section of the Act of October 9, 1940 (31 U.S.C. 123).
(5) No person who is, or upon application would be, entitled to a monthly benefit under this section for December 1956 shall be deprived, by reason of paragraph (1), of such benefit or any other benefit based on the wages and self-employment income of the individual on whose wag-es and self-employment income such monthly benefit for December 1956 is based.
(6) If an individual is outside the United States when he dies and no benefit may, by reason of paragraph (1) or (10) be paid to him for the month preceding the month in which he dies, no lump-sum death payment may be made on the basis of such individual's wages and 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 inforination regarding aliens who depart from the United States to any foreign country (other than a foreign country which is territorially contiguous to the continental United States) as may be necessary to enable the Secretary to carry out the purposes of this subsection and shall otherwise aid, assist, and cooperate with the Secretary in 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.)aid under this section or under section 223, for any molth beginning after June 30, 1968, to an individual who is not a citizen or national of the United States and who resides during such Iiiont Inll a foreign country if payments for such month to individuals I'VSidi g in 'uli 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.
(11) (1) If an y individual is convicted of any offense (committed after the (hte oft lie e'1na(. menlt of this subsection) inde1
(A)clhaptei 7 (relating to espionage and censorship), chapter







Revised December 1978 65 Sec. 202(v)

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 is entitled to insurance benefits under part A of title XVIII for any such month, there shall not be taken into account(C) any wages paid to such individual or to any other individual in the calendar year in which such conviction occurs or in
any prior calendar year, and
(D) any net earnings from self-employment derived by such
individual or by any other individual during a. taxable year in which such conviction occurs or during any prior taxable year.'
(2) As soon as practicable after an additional penalty has, pursuant to paragraph (1), been imposed with respect to any individual, the Attorney General shall notify the Secretary of such imposition.
(3) V any individual with respect to whom ,in additional penalty has been imposed pursuant to paragraph (1) is granted a pardon of the offense by the President of the United States, such additional penalty shall not apply for any month beginning after the date on which such pardon is granted.
Waiver of Benefits
(v) Notwithstanding any other provisions of this title, in the case of any individual who files a waiver pursuant to section 1402 (g) 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(g) 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.2 I Paragraph (1) was amended by sec. 353 (f ) (1) of Public Law 95-216.
2 Subsection (v) was amended by section 703(j) (14) (A) of Public Law 95-600.






Sec. 202(w) 66 Revised April 1978

Increase in Old-Age Insurance Benefit Amounts on Account of Delayed Retirement
(w) (1) The amount of an old-age insurance benefit (other than a benefit based on a primary insurance amount determined under section 215 (a) (3) as in effect in December 1978 or section 215 (a) (1) (C)
(i) (II) as in effect thereafter) which is payable without regard to this subsection to an individual shall be increased by(A) one-twelfth of 1 percent of such amount, or, in the case of
an individual who first becomes eligible for an old-age insurance benefit after December 1978, one-quarter of 1 percent of such
amount, multiplied by
(B) the number (if any) of the increment months for such
individual.'
(2) For purposes of this subsection, the number of increment months for any individual shall be a number equal to the total number of the months(A) which have. elapsed after the month before the month in
which su'ch individual attained age 65 or (if later) December 1970 and prior to the month in which such individual attained
age 72, and
(B) with respect to which(i) such individual was a fully insured individual (as
defined in section 214(a)), and
(ii) such individual either was not entitled to an old-age
insurance benefit or suffered deductions under section 203 (b)
or 203 (c) in amounts equal to the amount of such benefit.
(3) For purposes of applying the provisions of paragraph (1), a (letelmination shall be made under paragraph (2) for each year, beginning With 1972, of the total number of an individual's increment months through the year for which the determination is made and the total so determined shall be applicable to such individual's old-age in su rance benefits beginning with benefits for January of the year foll owin g 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 attains suchi agre.
(4) This subsection shall be applied after reduction under section 2-03 (a).
(5) If an individual's primary insurance amount is determined under paragraph (3) of section 215 (a) as in effect in December 1978,
1 Partivriph (21) -was aniended by se.203 and see. 205(b) (1) of Public Law 195-216. The imnif-inent by se.205(b) (1) is effective for benefits for months after December 1978.






Revised April 1978 67 Sec. 203(a)

or section 215 (a) (1) (C) (i) JI) as in effect thereafter, and, as a result of this subsection, he would be entitled to a higher old-age insurance benefit if his primary insurance amount were determined tinder section 215 (a) (whether before, in, or after December 1978) without regard to such paragraph, such individual's old-age insurance benefit based upon his primary insurance amount determined under such paragraph shall be increased by an amount equal to the difference between such benefit and the benefit to which he would be entitled if his primary insurance amount were determined under such section without regard to such paragraph."

Reduction of Insurance Benefits
Maximum Benefits
Sec. 203. (a) (1) In the case of an individual whose primary insurance amount has been computed or recomputed under section 215 (a)
(1) or (4), or section 215 (d), as in effect after December 1978, the total monthly benefits to which beneficiaries may be entitled under section 202 or 223 for a month on the basis of the wages and selfemployment income of such individual shall, except as provided by paragraph (3) (but prior to any increases resulting from the application of paragraph (2) (A) (ii) (111) of section 215 (i) ), be reduced as necessary so as not to exceed(A) *150 percent of such individual's primary insurance
amount to the extent that it does not exceed the amount established with respect to this subparagraph by paragraph (2),
(B) 272 percent of sueh individual's primary insurance
amount to the extent that it exceeds the amount established with respect to subparagraph (A) but does not exceed the amount established with respect to this subparagraph by paragraph (2),
(C) 134 percent of such individual's primary insurance
amount to the extent that it exceeds the amount established with respect to subparagraph (B) but does not exceed the amount established with respect to this subparagraph by paragraph (2),
and
(D) 175 percent of such individual's primary insurance
amount to the extent that it exceeds the amount established with
respect to subparagraph (C).
Any such amount that is not a multiple of $0.10 shall be increased to the, next higher multiple of $0.10.
Paragraph (5) was amended by see. 205 (b) (2) and (3) of Public Law 95-216 effective for bene ts for months after December 1978.





35-044 0 79 6







Sec. 203 (a) 68 Revised April 1978

(2) (A) For individuals who initially become, eligible for old-age or disability insurance benefits, or whodie (before becoming so eligible for such benefits), in the calendar year 1979, the amounts establi8hed with respect to subparagraphs (A), (B), and (C) of paragrapli (1) shall be $230, $332, and $433, respectively.
(B) 'For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming so eligible for such benefits), in any calendar year after 1979, each of the amounts so established shall equal the product of the corresponding amount established for the calendar year 1979 by subparagraph (A) of this paragraph and the quotient obtained under subparagraph (B)
(ii) of section 215 (a) (1), with such product being rounded in the manner prescribed by section 215 (a) (1) (B) (iii).
(C) In each calender year after 1978 the Secretary shall publish in the Federal Register, on or before November 1, the formula which (except as provided in section 215 (i) (2) (D) ) is to be applicable under this paragraph to individuals who become eligible for old-age or disability insurance benefits, or who die (before becoming eligible for such benefits), in the following calendar year.
(D) A year shall not be counted As the year of an individual's death or eligibility for purposes of this paragraph or paragraph (7) in any case where such individual was entitled to a disability insurance benefit for any of the 12 montlis immediately preceding the month of such death or eligibility (but there shall be counted instead the year of the individual's eligibility for the disability insurance benefits to which he was entitled during such 12 months).
(3) (A) When all individual who is entitled to benefits on the basis of the wages and self -employment income of any insured individual and to whom this subsection applies would (but for the provisions of section 202 (k) (2) (A)) be entitled to child's insurance benefits for a month on the basis of the wages and self-employment income of one or more other insured individuals, the total monthly benefits to which all beneficiaries ai-e entitled oil the bases I of such wages aird self-employment income shall not be reduced under this subsection to le,,-.s than the smaller of(i) the sum of the maximum amounts of benefits payable on
the basis of the wages and self-employment income of all such
insured individuals, or
(ii) an amount equal to the product of 1.75 and the primary
insurance amount that would be computed under section 215(a) (1) for that month with respect to average indexed monthly earnings equal to one-twelfth of the contribution and benefit base
determined foi- that year under section 230.
l The word "bases" Is a technical error in the law. It should read "basis".







Revised April 1978 69 Sec. 203(a)

(B) When two or more persons were entitled (without the applicatimi of section 20-2 (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 self-employment income, the total of benefits for any month after January 1971 shall not be reduced to less than the largest of(i) the amount determined under this subsection without regard to this subparagraph,
(ii) the largest amount which has been determined for any
month under this subsection for persons entitled to monthly benefits on the basis of such insured individual's wages and selfemployment income, or
(iii) if any persons are entitled to benefits on the basis of such
wages and self -employment income for the month before the effective month (after September 19,72) 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), an amount equal to the sum of amounts derived by multiplying the benefit amount determined under this title (excluding any part thereof determined tinder 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) ;
but in any such case (1) subparagraph (A) of this paragraph shall not be applied to such total of benefits after the application of clause (ii) or (iii), and (11) if section 202 (k) (2) (A) was applicable in the case of any such benefits for a month, and ceases to apply for a month after such month, the provisions of clause (ii) or (iii) shall be applied, for and after the month in which section 202 (k) (2) (A) ceases to apply, as though subparagraph (A) of this paragraph had not been applicable to such total of benefits for the last month for which clause (ii) or (iii) was applicable.
(C) When any of such individuals is entitled to monthly benefits as a divorced spouse under section 202 (b) or (c) or as a surviving divorced spouse under section 202 (e) or (f) for any month, the benefit to which he or she is entitled on the basis of the wages and self-em-






Sec. 203(a) 70 Revised April 1978

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 tinder section 202 on the wages and self-employment income of such insured individual shall be determined as if no such divorced spouse or surviving divorced spouse were entitled to benefits for such month.
(4) In any case in which benefits are reduced pursuant to the preceding provisions of this subsection, the 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.
(5) Notwithstanding any other provision of law, when(A) two or more persons are entitled to monthly benefits for a
particular month on the basis of the wages and self-employment income of an insured individual and (for such particular month) the provisions of this subsection are applicable to such monthly
benefits, and
(B) such individual's primary insurance amount is increased
for the following month under any provision of this title,
then the total of monthly benefits for all persons on the basis of such wages and self-employment income for such -particular month, as determined under the provisions of this subsection, shall for purposes of determining the total monthly benefits for all persons on the basis of such wages and self-emplo yment income for months subsequent to such particular month be considered to have been increased by the smallest amount that would have been required in order to assure that the total of monthly benefits payable on the basis of such wages and self -einployment, income for any such subsequent month will not be less (after the application of the other provisions of this subsection and section 202(q)) than the total of monthly benefits (after the application of the other provisions of this subsection and section 202
(q)) payable on the basis of such wages and self-employment income, for such particular month.
(6) In the case of any individual who is entitled for any month to benefits based upon the primary insurance amounts of two or more insured individuals, one or more of which primary insurance amounts NN- c re, d e t e ri n ined under section 215 (a) or 215 (d) as in effect (without 110gard to the table contained therein) prior to January 1979 and one or inore of which primary insurance amounts were determined under sect ion 215 (a) (1) or (4), or section 215 (d) as in effect after December D781 the total benefits payable to that individual and all other






INvised April 1978 71 See. 203(b)

individuals entitled to benefits for that month based upon those primary insurance amounts shall be reduced to an amount equal to the product of 1.75 and the primary insurance amount that would be computed under section 21015(a) (1) for that month with respect to average indexed monthly earnings equal to one-twelfth of the contribution and benefits base determined under section 230 for the year in which that month occurs.
(7) Subject to paragraph (6), this subsection as in effect in December 1978 shall remain in effect with respect to a primary insurance amount computed under section 215 (a) or (d), as in effect (without regard to the table contained therein) in December 1978, except that a primary insurance amount so computed with respect to an individual who first becomes eligible for an old-age or disability insurance benefit, or dies (before becoming eligible for such a benefit), after December 1978, shall instead be governed by this section as in effect after December 1978.
(8) When(A) one or more persons were entitled (without the application of section 202 (j ) (1) ) to monthly benefits under section 202 for May 1978 on the basis of the wages and self-employment
income of an individual,
(B) the benefit of at least one such person for June, 1978 i s
increased by reason of the amendments made by section 204 of
the Social Security A iendments of 1977; and
(C) the total amount of benefits to which all such persons are
entitled under such section 202 are reduced under the provisions of this subsection (or would be so reduced except for the first
sentence of section 203 (a) (4) ),
then the amount of the benefit to which each such person is entitled for months after Ma y 1978 shall be increased (after such reductions are, made under this subsection) to the amount such benefits would have been if the benefit of the person or persons referred to in subparagraph (B) had not been so increased.'
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 income, until the total of such deductions equalsSee. 203 (a). was amended by see. 202 of Public Law 95-216 effective for benefits payable for months after December 1978 and paragraph (8) was added to see. 203 (a) by see. 204 (e) of Public Law 95-216 effective for benefits for months after May 1978. The words "benefits base" in paragraph (6) are a technical error in the law and should read "benefit base".







Sec. 203(b) 72 Revised April 1978

(1) such individual's benefit or benefits under section 202 for
any month, and
(2) if such individual was entitled to old-age insurance benefits
under section 202 (a) for such month, the benefit or benefits of all other persons for such month under section 202 based on such
individual's wages and self-employment income,
if for such month he is charged with excess earnings, under the 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 tinder section 202 (a), such child or such person, as the case may be, shall, for the purposes of this subsection and subsection (f), be deemed to be entitled to such benefits on the basis of the wages and 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, hie 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 lie is entitled under such section after the application of subsection (a) of this section, but without the application of the
penultimate, sentence thereof ; and
(13) if a deduction is made with respect to an individual's
benefit or benefits under section 202 because of the occurence in any month of an event specified in subsection (c) or (d) of this section or in section 222(h), 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 payruents uwder this title to which an individual is entitled, until the total of such dleductions, equtials such individual's benefits or benefit under section 202 for any mnoth-






Revised April 1978 73 Sec. 203(d)

(1) in which such individual is under the age of seventy
and on seven or more different calendar days of which he engaged in noneovered 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 a mother's
insurance benefit, did not have in her care a child of her deceased
husband entitled to a child's insurance benefit; or
(4) in which such an individual, if a surviving divorced mother
entitled to a mother's insurance benefit, did not have in her care a child of her deceased former husband who (A) is her son, daughter, or legally adopted child and (B) is entitled to a child's insurance 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 wife's, husband's, or child's insurance benefit, based on the wages and self-employment income of an individual entitled to old-age insurance benefits, to which
-a Wife, divorced wife, husband, or child is entitled, until the total of such deduction equals such wife's, husband's, or child's insurance benefit or benefits under section 202 for any month in which such individual is under the age of seventy and on seven or more I In subsection (c) (1), see. 302 (a) of Public Law 9v5-216 changed "seventy-two" to seventy" effective for taxable years ending after Dec. 31, 1981.
2 In subsection (d) (1), see. 302 (a) of Public IAw 95-216 changed "seventy-two" to seventy" effective for taxable years ending after Dec. 31, 1981.







Sec. 203(d) 74 Revised April 1978

different calendar days of which he engaged in noncovered remunerative activity outside the United States.
(2) Deductions shall be made from any child's insurance benefit to which a child who has attained the age of eighteen is entitled, or f rom 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 for such month, only an amount equal to such benefit shall be deducted.
Months to Which Earnings Are Charged
(f) For purposes of subsection (b)(1) The amount of an individual's excess earnings (as defined
in paragraph (3)) shall be charged to months as follows: There shall be charged to the first month of such taxable year an amount of his excess earnings equal to the sum of the payments to which he and all other persons are entitled for such month under section 202 on the basis of his wages and self -employment income (or the total of his excess earnings if such excess earnings are less than such sum), and the balance, if any, of such excess earnings shall be charged to each succeeding month in such year to the extent, in the case of each such month, of the sum of the payments to which such individual and all other persons are entitled for such month under section 202 on the basis of his wages and self-employment income, until the total of such excess has been so charged. 'Where an individual is entitled to benefits under section 202 (a) and other persons are entitled to benefits under section 202(b), (c), or (d) on the basis of the wages and self-employment income of such individual, the excess earnings of such individual for any taxable year shall be charged in accordance with the provisions of th1is subsection before the excess earnings of such persons for a taxable year are charged to months in such individual's taxable year.
Not withistanding the preceding provisions of this paragraph, but subject to section 2020 (s), no part of the excess earnings of an individlual shall be charged to any month (A) for which such indifidual was not entitledI to a benefit under this title. (BN in which






Revn*ed April 1978 75 See. 203(f)

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







Sec. 203 (f 76 Revised April 1978

month until it is shown to the satisfaction of the Secretary that such individual rendered no substantial services in such month with respect to any trade or business the net income or loss of which is includible in computing (as provided in paragraph (5) of this subsection) his net earnings or net loss from self-employment for any taxable year. The 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 the applicable exempt amount as determined under paragraph (8) until it is shown to the Satisfaction. of the Secretary that Tuch individual did not render such services in such
month for more than such amount.'
(6) (A) Am individual's earnings for a taxable year shall be
(i) the sum of his wages for services rendered in such year and his net earnings from self-employment for such year, minus (ii)
any net loss from self-employment for such year.
(B) For purposes of this section(i) an individual's net earnings from self-employment for
any taxable year shall be determined as provided in section 211, except that paragraphs (1), (4), and (5) of section 211 (c) shall not apply and the gross income shall be computed by excluding the amounts provided by subparagraph (D),
and
(ii) an individual's net loss from self-employment for any
taxable year is the excess of the deductions (plus his distributive share of loss described in sections 702 (a) (9) of the Internal 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'an eniployee or performed outside the United States in the active military ot- naval service of the United States, shall be deemed to be, employment, as so defined if the remuneration for such services
Paragraph (3) and (4) (B) were amended by see. 301(d) of Public Law 95-216.






Revised April 1978 77 Sec. 203(f)

is. not includible in computing his net earnings or net loss from
self-employment.
(D) In the case of an individual(i) who has attained the age of 65 on or before the last day
of the taxable year, and
(ii) who shows to the satisfaction of the Secretary that lie
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 persons are entitled under section 202 for such month on the basis of his wages and self-employment income, the difference between such total and the excess so charged to such morith shall be paid (if it is otherwise payable under this title) to such individual and otlier persons in the proportion that the benefit to which each of them is entitled (without regard to such charging, without the application of section 202(k) (3), and prior to the application of section 203 (a)) bears to the total of the benefits to which all of
them are entitled.
(8) (A) Whenever the Secretary pursuant to section 215 (i)
increases benefits effective with the month of June following a cost-of-living computation quarter, he shall also determine and publish in the Federal Register on or before November 1 of the calendar year in which such quarter occurs the new exempt amounts (separately stated for individuals described in subparagraph (D) and for other individuals) which are to be applicable (unless prevented from becoming effective by subparagraph (C) ) with respect to taxable years ending in (or with the close of) the calendar year after the calendar year in which such benefit in-







Sec. 203 (f 78 Revised April 1978

crease is effective (or, in the case-of an individual who dies during the calendar year after the, calendar year in which the benefit increase is effective, with respect to such individual's taxable year
which ends, upon his death, during such year).'
(B) Except as otherwise provided in subparagraph (D), the
exempt amount which is applicable to individuals described in such subparagraph and the exempt amount which is applicable to other individuals, for each month of a particular taxable year,
shall each be whichever of the following is the larger(i) the corresponding exempt amount which is in effect
with respect to months in the taxable year in which the determination iindersubparagraph (A) is made, or
(ii) the product of the exempt amount described in clause
(i) and the, ratio of (1) the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 209 (a)) reported to the Secretary of the Treasury or his delegate for the calendar year before the calendar year in which the determination under subparagraph (A) is made to (11) the average of the total wages (as so defined and computed) reported to the Secretary of the Treasury or his delegate for the calendar year before the most recent calendar year in which an 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.
Whenever the Secretary determines that an exempt amount is to be increased in any year under this paragraph, he shall notify the House, Committee on Ways and Means and the Senat e Committee on Finance within 30 days after the close of the base quarter (as defined in section 215 (i) (1) (A)) in such year of the estimated amount of such increase, indicating the new exempt amount, the actuarial estimates of the effect of the increase, and the actuarial assumptions and methodology used in preparing such
estimateS.2
(C) Notwithstanding the determination of a new exempt
amount by the Secretary under subparagraph (A) (and notwithstanding any publication thereof under such subparagraph or any notification thereof tinder the last sentence of subparagraph (B) ),
I SO)ptirpgraph (A) Nvas amended by see. 301(a) of Public Law 95-216. see Appendix E for exempt ninounts for each year.
2 Sobparngraph (B) was amended by see. 8(l) of Public lAw 94-202 and by sees. 301 (b) and 353 (a) of Public Law 95-216.






Revised April 1978 79 Sec. 203(g)

such new exempt amount shall not take effect pursuant thereto if durin 'a the calendar year in which such determination is made a
law increasing the exempt amount is enacted.
(D) Notwithstanding any other provision of this subsection,
the exempt amount which is applicable to an individual who has
attained age 65 before the close of the taxable year involved
(i) shall be $333.331/3 for each month of any taxable year
ending after 1977 and before 1979,
(ii) shall be $375 for each month of any taxable year
ending after 1978 and before 1980,
(iii) shall be $416.66-9/,.j for each month of any taxable year
ending after 1979 and before 1981,
(iv) shall be $458.331/3for each month of any taxable year
ending after 1980 and before 1982, and
(v) shall be $500 for each month of any taxable year ending after 1981 and before 1983.1
Penalty for Failure to Report Certain Events
(g) Any individual in receipt of benefits subject to deduction under subsection (c) (or who is in receipt of such benefits on behalf of another individual), because of the occurrence of an event specified therein, who fails to report such occurrence to the Secretary prior to the receipt and acceptance of an insurance benefit for the second month following the month in which such event occurred, shall suffer 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) iif 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;
Subparagraph (D) was added by sec. 301 (c) (1) of Public Law 95-216. See also see. 301 W (2) of Public Law 95-216 which Is printed In this document on p. 805.







See. 203(g) 79-A Revised April 1978

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).
Report of Earnings to Secretary
(h) (1) (A) If an individual is entitled to any monthly insurance benefit under section 202 during any taxable year in which he has earnings or wages, as computed pursuant to paragraph (5) of subsection (f), in excess of the product of the applicable exempt -amount as determined under subsection (f) (8) times the number of months in such year, such individual (or the individual who is in receipt of such benefit on his behalf) shall make'a report to the Secretary of his earnings (or wages) for such taxable year. Such report shall be made *on or before the fifteenth day of the fourth month following the close of such year, and shall contain such information and be made in such manner as the Secretary may by regulations prescribe. Such report need not be made for any taxable year (i) beginning with or after the month in which such individual attained age 70,1 or (ii) if benefit payments for all months (in such taxable year) in which such individual is under age 70 1 have been suspended under the provisions of the first sentence of paragraph (3) of this subsection. The Secreatary may grant a 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.2
(B) If the benefit payments of an individual have been suspended for all months in any taxable year under the provisions of the first sentence of paragraph (3) of this subsection, no benefit payments shall be made to such individual for any such month in such taxable year after the expiration of the period of three years, three months, and fifteen days following the close of such taxable year unless within such period the individual, or some other person entitled to benefits utider this title on the basis of the same wages and self-government income, files with the Secretary information showing that a benefit fo r such month is payable to such individual.
(2) If an individual fails to make a report required under paragr(aph (1), within the time prescribed by or in accordance with such parfigrapb, for any taxable year and any deduction is imposed under
I Spe. '102 (e) of Public Law 95-216 changed '172" to 117011 effective for taxable years ending fl'iter Dpr. .11, 191 1.
2 SSubparagraph (A) was aiso amended by see. 301(d) of Public Law 95-216.






Revised April 1978 79-B Sec. 203(h)

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 para&aph, 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, 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 deduction is imposed under this paragraph, such additional deduction shall be equal to three times his benefit or benefits for the last month of such year for which he was entitled
to a benefit under section 202;
except that the number of the additional deductions required by this paragraph With respect to 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 clos e of such taxable year, suspend the total or less than the total payment for each month in such year (or for only such months as the Secretary may specify) of the benefits payable on the basis of such individual's wages and self-employment income; and such suspension shall remain in effect with respect to the benefits for any month until the Secretary has determined whether or not any deduction is imposed for such month under subsection (b). The Secretary is authorized,







See. 203 (h) 79-C Revised April 1978

before the close of the taxable year of an individual entitled to benefits during such year, to request of such individual that he make, at such time or times as the Secretary may specify, a declaration of his estimated earnings for the taxable year and that he furnish to the Secretary such other information with respect to such earnings as the Secretary may specify. A failure by such individual to comply with any such request shall in itself constitute justification for a determination under this Daragyraph that it may reasonably be expected that the individual will suffer deductions imposed under subsection
(b) by reason of his earnings for such year. If, after the close of a taxable year of an individual entitled to benefits under section 202 for such year, the Secretary requests such individual to furnish a report of his earnings (as computed pursuant to paragraph (5) of subsection (f)) for such taxable year or any other information with respect to such earnings which the Secretary may specify, and the individual fails to comply with such request, such failure shall in itself constitute justification for a determination that such individual's benefits are subject to deductions under subsection (b) for each month in such taxable year (or only for such months thereof as the Secretary may specify) by reason of his earnings for such year.
Circumstances Under Which Deductions and Reductions not Required
(i) In the case of any individual, deductions by reason of the 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'
(j) For the purposes of this section, an individual shall be considered as seventy' years of age during the entire month in which he attains such age.
Noncovered Remunerative Activity Outside the United States
(k) An individual shall be considered to be engaged in noncovered remunerative activity outside the United States if he performs services outside the United States as an employee and such servicegAo not constitute employment as defined in section 210 and are not performe(I in the active military or naval service of the United States, or if be carries on a trade or business outside the United States (other
I
"-I've. '102 (a) and (d) changed "seventy-two" to "seventy" effective for taxable years ending ifter Dec. 31, 1981.






Revised April 1978 79-D Sec. 204(a )

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 Commonwealth of Puerto Rico, the Virgin Islands, Guam, andAmerican Samoa) and the term "trade or business" shall have the same meaning as when used in Section 162 of the Internal Revenue Code of 19-04.

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 f ailing 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
See. 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 perpn 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 tm)) 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.




35-044 0 79 7







Sec. 204 (a) 79-E Revised April 1978

(2) With respect to payment to a person less than the correct amount, the Secretary shall make payment of the balance of the amount due such underpaid person, or, if such person dies before payments are completed or before negotiating one or more checks representing correct payments, disposition of the amount due shall be made in accordance with subsection (d).
(b) In any case in which more than the correct amount of payment has been made, there shall be no adjustment of payments to, or 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.
(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);






JILVCvised April 1978 79-F Sec. 205(b)

(4) if there is no person who meets the requirements of paragraph (1) 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), (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
(7) if there is no person who meets the requirements of paragraph (1) 9 (2), (3), (4), (5), or (6), or if each person who meets such requirements dies before the payment due him under this title is completed, to the legal representative of the estate of the
deceased individual, if any.
Evidence, Procedure, and Certification for Payment
Sec. 205. (a) The Secretary shall have full power and authority to make rules and regulations and to establish procedures, not inconsistent with the provisions of this title, which are necessary or appropriate to carry out such provisions, and shall adopt reasonable and propc.ir 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







Sec. 205(b) 79-G Revised April 1978

evidence adduced at the hearing, affirm, modify, or reverse his findings of fact and such decision. Any such request with respect to such a 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.1
(c) (1) For the purposes of this subsection(A) The term "year" means a calendar year when used with
respect to wages and a taxable year when used with respect to selfemployment income.2
(B)- The term "time limitation" means a period of three years,
three months, and fifteen days.
(C) The term "survivor" means an individual's spouse, surviving divorced wife, surviving divorced mother, child, or parent,
who survives such individual.
(D) The term "period" when used with respect to self-employment income means a taxable year and when used with respect to
wages means(i) a quarter if wages were reported or should have been
reported on a quarterly basis on tax returns filed with the Secretary of the Treasury or his delegate under section 6011 of the Internal Revenue Code of 1954 or regulations thereunder (or on reports filed by a State under section 218 (e) or
regulations thereunder),
(ii) a year if wages were reported or should have been
reported on a yearly basis on such tax returns or reports, or
(iii) the half year beginning January 1 or July 1 in the
case of wages which were reported or should have been
reported for calendar year 1937.3
(2) (A) On the basis of information obtained by or submitted to the Secretary, and after such verification thereof as he deems necessary, the Secretary shall establish and maintain records of the amounts of wages paid to, and the amounts of self-employment income derived by, each individual and of the periods in which such wages were paid and such income was derived and, upon request, shall inform any inThe third sentence of section 205(b) was amended by section 4 of Public Law 94-202 rffie,,tivf Mar. 1. 1 !)7G. Prior to tlat date, the appeal period is six months.
Subpara.raph )A was anwuded by sec. 353(f) (2) (A) of Public Law 95-216.
Suhparaigraph (I) was added by sec. 353(f) (2) (B) of Public Law 95-216.






Revised April 1978 79-H See. 205(c)

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 lawf ul admission to the United
States either for permanent residence or under other authority of law permitting them to engage in employment in the United States and to other aliens at such time as their status is so changed
as to make it lawful for them to engage in such employment;
(II) to any individual who is an applicant for or recipient of
benefits under any program financed in whole or in part from Federal funds including any child on whose behalf such benefits
are claimed by another person; and
(III) to any other individual when it appears that he could
have been but was not assigned an account number under the provisions of subclauses (1) or (H) 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 duties, the Secretary is authorized to take affirmative measures to assure the issuance of social security numbers:
(IV) to or on behalf of children who are below school age at
the request of their parents or guardians; and
(V) to children of school age at the time of their first 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).
(C) (i) It is the policy of the United States that any State (or political subdivision thereof) may, in the administration of any tax, general public assistance, driver's license, or motor vehicle registration law within its jurisdiction, utilize the social security account numbers issued by the Secretary for the purpose of establishing the identification of individuals affected by such law, and may require any individual who is or appears to be so affected to furnish to such State (or political subdivision thereof (or any agency thereof having administrative responsibility for the law involved, the social security account number (or numbers, if he has more than one such number) issued to him by the Secretary.
(ii) If and to the extent that any provision of Federal law heretofore enacted is inconsistent with the policy set forth in clause (i) of this subparagraph. such provision shall, on and after the date of the enactment of this subparagraph, be null, void, and of no effect.
(iii) For purposes of clause (i) of this subparagraph, an agency of a State (or political subdivision thereof) charged with the administration of any general public assistance, driver's license, or motor vehicle registration law which did not use the social security account number for identification under a law or regulation adopted before January 1, 1975, may require an individual to disclose his or her social security number to such agency solely for the purpose of administering the laws referred to in clause (i) above and for the purpose of responding to re(puests for information from an agency operating pursuant to the provisions of part A or D of title IV of the Social Security Act.
(iv) For purposes of this subparagraph, the term "State" includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islanids, Guam. the Commonwealth of the Northern Marianas, and tie Trust Territory of the Pacific Islands.'
(3) The S eretarv'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-employNent income derived by, an individual and of the periods in which such wages were paid and such income was deI Subparagraph (C) was added by section 1211(b) of Public Law 94-455.