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 97 STAT. 80 PUBLIC LAW 98-21 —APR. 20, 1983 PART C—REVENUE PROVISIONS SEC. 121. TAXATION OF SOCIAL SECURITY AND TIER 1 RAILROAD RETIRE- MENT BENEFITS. (a) GENERAL RULE. —Part II of subchapter B of chapter 1 of the Internal Revenue Code of 1954 (relating to amounts specifically included in gross income) is amended by redesignating section 86 as section 87 and by inserting after section 85 the following new section: 26 USC 86. "SEC. 86. SOCIAL SECURITY AND TIER 1 RAILROAD RETIREMENT BENE- FITS. "(a) IN GENERAL. —Gross income for the taxable year of any taxpayer described in subsection (b) includes social security benefits in an amount equal to the lesser of— "(1) one-half of the social security benefits received during the taxable year, or "(2) one-half of the excess described in subsection (b)(1). "(b) TAXPAYERS TO WHOM SUBSECTION (a) APPLIES. — " (1) IN GENERAL.— A tsixpayer is described in this subsection if— "(A) the sum of— " (i) the modified adjusted gross income of the taxpay- er for the taxable year, plus "(ii) one-half of the social security benefits received during the taxable year, exceeds "(B) the base amount. "(2) MODIFIED ADJUSTED GROSS INCOME. —For purposes of this subsection, the term 'modified adjusted gross income' means adusted gross income— "(A) determined without regard to this section and sec- tions 221, 911, 931, and 933, and "(B) increased by the amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax. "(c) BASE AMOUNT.— For purposes of this section, the term 'base amount' means— "(1) except as otherwise provided in this subsection, $25,000, "(2) $32,000, in the case of a joint return, and "(3) zero, in the case of a taxpayer who— "(A) is married at the close of the taxable year (within the meaning of section 143) but does not file a joint return for such year, and "(B) does not live apart from his spouse at all times during the taxable year. "(d) SOCIAL SECURITY BENEFIT.— "(1) IN GENERAL.— For purposes of this section, the term 'social security benefit' means any amount received by the taxpayer by reason of entitlement to— "(A) a monthly benefit under title II of the Social Secu- 42 USC 401. rity Act, or "(B) a tier 1 railroad retirement benefit. For purposes of the preceding sentence, the amount received by any taxpayer shall be determined as if the Social Security Act 42 USC 403. did not contain section 203(i) thereof. "(2) ADJUSTMENT FOR REPAYMENTS DURING YEAR. —

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 PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 81 " (A) IN GENERAL.—For purposes of this section, the amount of social security benefits received during any tax- able year shall be reduced by any repayment made by the taxpayer during the taxable year of a social security benefit previously received by the taxpayer (whether or not such benefit was received during the taxable year). "(B) DENIAL OF DEDUCTION. —If (but for this subpara- graph) any portion of the repayments referred to in subpar- agraph (A) would have been allowable as a deduction for the taxable year under section 165, such portion shall be allowable as a deduction only to the extent it exceeds the social security benefits received by the taxpayer during the taxable year (and not repaid during such taxable year). "(3) WORKMEN'S COMPENSATION BENEFITS SUBSTITUTED FOR SOCIAL SECURFTY BENEFITS.— For purposos of this section, if, by reason of section 224 of the Social Security Act (or by reason of 42 USC 424a. section 3(a)(1) of the Railroad Retirement Act of 1974), any 45 USC 23ib. social security benefit is reduced by reason of the receipt of a benefit under a workmen's compensation act, the term 'social security benefit' includes that portion of such benefit received under the workmen's compensation act which equals such re- duction. "(4) TIER i RAILROAD RETIREMENT BENEFIT.— For purposes of paragraph (1), the term 'tier 1 railroad retirement benefit' means a monthly benefit under section 3(a), 4(a), or 4(f) of the Railroad Retirement Act of 1974. 45 USC 23ib, "(e) LIMITATION ON AMOUNT INCLUDED WHERE TAXPAYER RECEIVES ^^^'^ LUMP-SUM PAYMENT.— "(1) LIMITATION.— If— "(A) any portion of a lump-sum payment of social security benefits received during the taxable year is attributable to prior taxable years, and "(B) the taxpayer makes an election under this subsection for the taxable year, then the amount included in gross income under this section for the taxable year by reason of the receipt of such portion shall not exceed the sum of the increases in gross income under this chapter for prior taxable years which would result solely from taking into account such portion in the taxable years to which it is attributable. "(2) SPECIAL RULES.— "(A) YEAR TO WHICH BENEFIT ATTRIBUTABLE.—For pur- poses of this subsection, a social security benefit is attribut- able to a taxable year if the generally applicable payment date for such benefit occurred during such taxable year. "(B) ELECTION. — An election under this subsection shall be made at such time and in such manner as the Secretary shall by regulations prescribe. Such election, once made, may be revoked only with the consent of the Secretary. "(f) TREATMENT AS PENSION OR ANNUITY FOR CERTAIN PURPOSES. — For purposes of— "(1) section 43(c)(2) (defining earned income), "(2) section 219(f)(1) (defining compensation), "(3) section 221(b)(2) (defining earned income), and "(4) section 911(b)(1) (defining foreign earned income), any social security benefit shall be treated as an amount received as a pension or annuity."

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 97 STAT. 82 PUBLIC LAW 98-21 —APR. 20, 1983 (b) INFORMATION REPORTING. —Subpart B of part HI of subchapter A of chapter 61 of such Code (relating to information concerning transactions with other persons) is amended by adding at the end thereof the following new section: 26 USC 6050F. "SEC. 6050F. RETURNS RELATING TO SOCIAL SECURITY BENEFITS. "(a) REQUIREMENT OF REPORTING. —The appropriate Federal offi- cial shall make a return, according to the forms and regulations prescribed by the Secretary, setting forth— " (Dthe— "(A) aggregate amount of social security benefits paid with respect to any individual during any calendar year, "(B) aggregate amount of social security benefits repaid by such individual during such calendar year, and "(C) aggregate reductions under section 224 of the Social 42 USC 424a. Security Act (or under section 3(a)(1) of the Railroad Retire- 45 USC 231b. ment Act of 1974) in benefits which would otherwise have been paid to such individual during the calendar year on account of amounts received under a workmen's compensa- tion act, and "(2) the name and address of such individual. "(b) STATEMENTS TO BE FURNISHED TO INDIVIDUALS WITH RESPECT To WHOM INFORMATION IS FURNISHED.— Every person making a return under subsection (a) shall furnish to each individual whose name is set forth in such return a written statement showing— "(1) the name of the agency making the payments, and "(2) the aggregate amount of payments, of repayments, and of reductions, with respect to the individual as shown on such return. The written statement required under the preceding sentence shall be furnished to the individual on or before January 31 of the year following the calendar year for which the return under subsection (a) was made. "(c) DEFINITIONS,—For purposes of this section— "(1) APPROPRIATE FEDERAL OFFICIAL. —The term 'appropriate Federal official' means— "(A) the Secretary of Health and Human Services in the case of social security benefits described in section 86(d)(1)(A), and "(B) the Railroad Retirement Board in the case of social Ante, p. 80. security benefits described in section 86(d)(l)(B). "(2) SOCIAL SECURITY BENEFIT. —The term 'social security bene- fit' has the meaning given to such term by section 86(d)(1)." (c) TREATMENT OF NONRESIDENT AUENS. — (1) AMENDMENT OF SECTION 871(a). —Subsection (a) of section 26 USC 871. 871 of such Code (relating to tax on income not connected with United States business) is amended by adding at the end thereof the following new paragraph: "(3) TAXATION OF SOCIAL SECURITY BENEFITS.—For purposes of this section and section 1441— "(A) one-half of any social security benefit (as defined in section 86(d)) shall be included in gross income, and "(B) section 86 shall not apply. " 26 USC 1441. (2) AMENDMENT OF SECTION 1441.— Section 1441 of such Code (relating to withholding of tax on nonresident aliens) is amended by adding at the end thereof the following new subsec- tion:

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 PUBLIC LAW 98-21—APR. 20, 1983 97 STAT. 83 "(g) CROSS REFERENCE.— "For provision treating one-half of social security benefits as subject to withholding under this section, see section 871(a)(3)." (3) DISCLOSURE OF INFORMATION TO SOCIAL SECURITY ADMINIS- TRATION OR RAILROAD RETIREMENT BOARD.— (A) IN GENERAL. —Subsection (h) of section 6103 of such 26 USC 6103. Code (relating to disclosure to certain Federal officers and employees for purposes of tax administration, etc.) is amended by adding at the end thereof the following new paragraph: "(6) WITHHOLDING OF TAX FROM SOCIAL SECURITY BENEFITS. — Upon written request of the payor agency, the Secretary may disclose available return information from the master files of the Internal Revenue Service with respect to the address and status of an individual as a nonresident alien or as a citizen or resident of the United States to the Social Security Administra- tion or the Railroad Retirement Board (whichever is appropri- ate) for purposes of carrying out its responsibilities for withholding tax under section 1441 from social security benefits (as defined in section 86(d))." Ante, p. 80. (B) CONFORMING AMENDMENT.—Paragraph (4) of section 613(p) of such Code (relating to safeguards) is amended by 26 USC 6103. inserting "(h)(6)," after "(h)(2)," in the material preceding subparagraph (A) and in subparagraph (F)(ii), thereof. (C) DISCLOSURE BY FINANCIAL INSTITUTIONS. — Section 1113 of the Right to Financial Privacy Act of 1978 (92 Stat. 3706; 12 U.S.C. 3413) is amended by adding at the end thereof the following new subsection: "(k)(l) Nothing in this title shall apply to the disclosure by the financial institution of the name and address of any customer to the Department of the Treasury, the Social Security Administration, or the Railroad Retirement Board, where the disclosure of such infor- mation is necessary to, and such information is used solely for the purpose of, the proper administration of section 1441 of the Internal Revenue Code of 1954, title II of the Social Security Act, or the Railroad Retirement Act of 1974. "(2) Notwithstanding any other provision of law, any request authorized by paragraph (1) (and the information contained therein) may be used by the financial institution or its agents solely for the purpose of providing the customer's name and address to the De- partment of the Treasury, the Social Security Administration, or the Railroad Retirement Board and shall be barred from redisclosure by the financial institution or its agents." (d) SOCIAL SECURITY BENEFITS TREATED AS UNITED STATES SOURCED. —Subsection (a) of section 861 of such Code (relating to 26 USC 861. income from sources within the United States) is amended by adding at the end thereof the following new paragraph: "(8) SOCIAL SECURITY BENEFITS. —Any social security benefit (as defined in section 86(d))." Ante, p. 80. (e) TRANSFERS TO TRUST FUNDS.— 42 USC 40i note. (1) IN GENERAL.— There are hereby appropriated to each payor fund amounts equivalent to the aggregate increase in tax liabilities under chapter 1 of the Internal Revenue Code of 1954 26 USC i et seq. which is attributable to the application of sections 86 and Ante, p. 80. 871(a)(3) of such Code (as added by this section) to payments from such payor fund. Information disclosure. 26 USC 1441; 42 usc 401; 45 USC 231t.

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The literature upon the subject of the palæozoic phyllopods is comparatively very meager and fragmentary. An occasional discovery of a few specimens, as in the present instance, has resulted in the publication of one or more new forms, but nothing has led to a compilation and review of the palæozoic forms of the whole order. The trilobita forming the bulk of palæozoic crustacea, and including such varied forms and numerous species, have received much attention from palæontologists, so that a nearly complete monograph of this order is now possible; while of the American ostracoda, merostomata, and phyllopoda, but little is yet known which would furnish materials for an exhaustive monograph of the fossil species.

In the present paper several new forms are presented and considerable structural detail is here first given for the genus, Whitfield}}, which it is hoped will add to our knowledge of the zoölogical relations of this and allied genera.

1839.—The first palæozoic fossils of this order were found in England and published by Sir R. Murchison. Professor L. Agassiz considered them as fin-spines of fishes, and


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 97 STAT. 84 PUBLIC LAW 98-21 —APR. 20, 1983 (2) TRANSFERS.—The amounts appropriated by paragraph (1) to any payor fund shall be transferred from time to time (but not less frequently than quarterly) from the general fund of the Tregisury on the basis of estimates made by the Secretary of the Treasury of the amounts referred to in such paragraph. Any such quarterly payment shall be made on the first day of such quarter and shall take into account social security benefits estimated to be received during such quarter. Proper adjust- ments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred. (3) DEFINITIONS.—For purposes of this subsection— (A) PAYOR FUND.— The term "payor fund" means any trust fund or account from which payments of social secu- rity benefits are made. (B) SOCIAL SECURITY BENEFITS. —The term "social security benefits" has the meaning given such term by section Ante, p. 80. 86(d)(1) of the Internal Revenue Code of 1954. (4) REPORTS.— The Secretary of the Treasury shall submit annual reports to the Congress and to the Secretary of Health and Human Services and the Railroad Retirement Board on— (A) the transfers made under this subsection during the year, and the methodology used in determining the amount of such transfers and the funds or account to which made, and (B) the anticipated operation of this subsection during the next 5 years. (f) TECHNICAL AMENDMENTS.: — 26 USC 85. (1) Subsection (a) of section 85 of such Code is amended by striking out "this section," and inserting in lieu thereof "this section, section 86,". 96 Stet. 2375. (2) Subparagraph (B) of section 128(c)(3) of such Code (as in 26 USC 128. effect for taxable years beginning after December 31, 1984) is amended by striking out "85," and inserting in lieu thereof "85, 86,". (3) The table of sections for part II of subchapter B of chapter 1 of such Code is amended by striking out the item relating to section 86 and inserting in lieu thereof the following: "Sec. 86. Social security and tier 1 railroad retirement benefits. "Sec. 87. Alcohol fuel credit." (4) The table of sections for subpart B of part III of subchapter A of chapter 61 of such Code is amended by adding at the end thereof the following new item: "Sec. 6050F. Returns relating to social security benefits." 26 USC 86 note. (g) EFFECTIVE DATES.— (1) IN GENERAL.— Except as provided in paragraph (2), the amendments made by this section shall apply to benefits re- ceived after December 31, 1983, in taxable years ending after such date. (2) TREATMENT OF CERTAIN LUMP-SUM PAYMENTS RECEIVED AFTER DECEMBER 31, 1983. —The amendments made by this sec- tion shall not apply to any portion of a lump-sum payment of social security benefits (as defined in section 86(d) of the Inter- Ante, p. 80. nal Revenue Code of 1954) received after December 31, 1983, if the generally applicable payment date for such portion was before January 1, 1984.

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 PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 85 SEC. 122. CREDIT FOR THE ELDERLY AND THE PERMANENTLY AND TOTALLY DISABLED. (a) GENERAL RULE. — Section 37 of the Internal Revenue Code of 1954 (relating to credit for the elderly) is amended to read as follows: 26 USC 37. "SEC. 37. CREDIT FOR THE ELDERLY AND THE PERMANENTLY AND TOTALLY DISABLED. "(a) GENERAL RULE. —In the case of a qualified individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 15 percent of such individ- ual's section 37 amount for such taxable year. "(b) QUALIFIED INDIVIDUAL. — For purposes of this section, the term ' qualified individual' means any individual— "(1) who has attained age 65 before the close of the taxable year, or "(2) who retired on disability before the close of the taxable year and who, when he retired, was permanently and totally disabled. "(c) SECTION 37 AMOUNT. —For purposes of subsection (a)— "(1) IN GENERAL. —An individual's section 37 amount for the taxable year shall be the applicable initial amount determined under paragraph (2), reduced as provided in paragraph (3) and in subsection (d). "(2) INITIAL AMOUNT— "(A) IN GENERAL.— Except as provided in subparagraph (B), the initial amount shall be— "(i) $5,000 in the case of a single individual, or a joint return where only one spouse is a qualified individual, "(ii) $7,500 in the case of a joint return where both spouses are qualified individuals, or "(iii) $3,750 in the case of a married individual filing a separate return. "(B) LIMITATION IN CASE OP INDIVIDUALS WHO HAVE NOT ATTAINED AGE 65. — "(i) IN GENERAL. —In the case of a qualified individual who has not attained age 65 before the close of the taxable year, except as provided in clause (ii), the initial amount shall not exceed the disability income for the taxable year. "(ii) SPECIAL RULES IN CASE OP JOINT RETURN —In the case of a joint return where both spouses are qualified individuals and at least one spouse has not attained age 65 before the close of the taxable year— "(I) if both spouses have not attained age 65 before the close of the taxable year, the initial amount shall not exceed the sum of such spouses' disability income, or "(n) if one spouse has attained age 65 before the close of the taxable year, the initial amount shall not exceed the sum of $5,000 plus the disability income for the taxable year of the spouse who has not attained age 65 before the close of the taxable year, "(iii) DISABILITY INCOME.— For purposes of this sub- paragraph, the term 'disability income' means the ag- gregate amount includable in the gross income of the individual for the taxable year under section 72 or

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 97 STAT. 86 PUBLIC LAW 98-21—APR. 20, 1983 105(a) to the extent such amount constitutes wages (or payments in lieu of wages) for the period during which the individual is absent from work on account of per- manent and total disability. "(3) REDUCTION.— "(A) IN GENERAL.— The reduction under this paragraph is an amount equal to the sum of the amounts received by the individual (or, in the case of a joint return, by either spouse) as a pension or annuity or as a disability benefit— "(i) which is excluded from gross income and payable under— 42 USC 401. "(I) title II of the Social Security Act, 45 USC 23it. "(II) the Railroad Retirement Act of 1974, or "(in) a law administered by the Veterans' Ad- ministration, or "(ii) which is excluded from gross income under any provision of law not contained in this title. No reduction shall be made under clause (i)(III) for any 26 USC 104. amount described in section 104(a)(4). "(B) TREATMENT OF CERTAIN WORKMEN'S COMPENSATION BENEFITS.—For purposos of subparagraph (A), any amount Ante, p. 80. treated as a social security benefit under section 86(d)(3) shall be treated as a disability benefit received under title II of the Social Security Act. " (d) LIMITATIONS.— "(1) ADJUSTED GROSS INCOME LIMITATION.—If the adjusted gross income of the taxpayer exceeds— "(A) $7,500 in the case of a single individual, "(B) $10,000 in the case of a joint return, or "(C) $5,000 in the case of a married individual filing a separate return, the section 37 amount shall be reduced by one-half of the excess of the adjusted gross income over $7,500, $10,000, or $5,000, as the case may be. "(2) LIMITATION BASED ON AMOUNT OP TAX. — The amount of the credit allowed by this section for the taxable year shall not exceed the amount of the tax imposed by this chapter for such taxable year. "(e) DEFINITIONS AND SPECIAL RULES. — For purposes of this sec- tion— "(1) MARRIED COUPLE MUST FILE JOINT RETURN.— Except in the case of a husband and wife who live apart at all times during the taxable year, if the taxpayer is married at the close of the taxable year, the credit provided by this section shall be allowed only if the taxpayer and his spouse file a joint return for the taxable year. "(2) MARITAL STATUS.—Marital status shall be determined under section 143. " (3) PERMANENT AND TOTAL DISABILITY DEFINED.—An individ- ual is permanently and totally disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. An individual shall not be considered to be perma- nently and totally disabled unless he furnishes proof of the

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 PUBLIC LAW 98-21—APR. 20, 1983 97 STAT. 87 existence thereof in such form and manner, and at such times, as the Secretary may require. "(f) NONRESIDENT ALIEN INELIGIBLE FOR CREDIT.—N O credit shall be allowed under this section to any nonresident alien." (b) REPEAL OF EXCLUSION FOR CERTAIN DISABILITY PAYMENTS.— Subsection (d) of section 105 of such Code (relating to certain disabil- 26 USC 105. ity payments) is hereby repealed. (c) CONFORMING AMENDMENTS.— (1) Sections 41(b)(2), 44A(b)(2), 46(a)(4)(B), 53(a)(2), and 904(g) of 26 USC 4i, 44A, such Code are each amended by striking out "relating to credit '*^' ^^' ^^^• for the elderly" and inserting in lieu thereof "relating to credit for the elderly and the permanently and totally disabled". (2) Subsection (a) of section 85 of such Code is amended by 26 USC 85. striking out ", section 105(d),". (3) Subparagraph (B) of section 128(c)(3) of such Code (as in Ante, p. 84. effect for taxable years beginning after December 31, 1984) is 26 USC 128. amended by striking out "105(d),". (4) Paragraph (3) of section 403(b) of such Code is amended by 26 USC 403. striking out "sections 105(d) and 911" and inserting in lieu thereof "section 911". (5) Clause (i) of section 415(c)(3)(C) of such Code is amended by 96 Stat. 532. striking out "section 105(d)(4)" and inserting in lieu thereof 26 USC 415. "section 37(e)(3)". (6) Paragraph (6) of section 7871(a) of such Code is amended by 96 Stat. 2608. striking out subparagraph (A), and by redesignating subpara- 26 USC 7871. graphs (B), (C), and (D) as subparagraphs (A), (B), and (C), respectively. (7) The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by striking out the item relating to section 37 and inserting in lieu thereof the following: "Sec. 37. Credit for the elderly and the permanently and totally disabled." (d) EFFECTIVE DATE. — 26 USC 37 note. (1) IN GENERAL.—The amendments made by this section shall apply to taxable years beginning after December 31, 1983. (2) TRANSITIONAL RULE. —If an individual's annuity starting date was deferred under section 105(d)(6) of the Internal Reve- nue Code of 1954 (as in effect on the day before the date of the Supra. enactment of this section), such deferral shall end on the first day of such individual's first taxable year beginning after De- cember 31, 1983. SEC. 123. ACCELERATION OF INCREASES IN PICA TAXES; 1984 EMPLOYEE TAX CREDIT. (a) ACCELERATION OF INCREASES IN FICA TAXES.— (1) TAX ON EMPLOYEES. — Subsection (a) of section 3101 of the Internal Revenue Code of 1954 (relating to rate of tax on 26 USC 3101. employees for old-age, survivors, and disability insurance) is amended by striking out paragraphs (1) through (7) and insert- ing in lieu thereof the following: "In cases of wages The rate received during: shall be: 1984, 1985, 1986, or 1987 5.7 percent 1988 or 1989 6.06 percent 1990 or thereafter 6.2 percent. "

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 97 STAT. 88 PUBLIC LAW 98-21 —APR. 20, 1983 26 USC 3111. (2) EMPLOYER TAX. — Subsection (a) of section 3111 of such Code is amended by striking out paragraphs (1) through (7) and inserting in lieu thereof the following: "In cases of wages The rate paid during: shall be: 1984, 1985, 1986, or 1987 5.7 percent 1988 or 1989 6.06 percent 1990 or thereafter 6.2 percent." 26 USC 3101 (3) EFFECTIVE DATE.— The amendments made by this subsec- ^°^- tion shall apply to remuneration paid after December 31, 1983. (b) 1984 EMPLOYEE TAX CREDIT. — (1) IN GENERAL. — Chapter 25 of such Code is amended by adding at the end thereof the following new section: 26 USC 3510. "SEC. 3510. CREDIT FOR INCREASED SOCIAL SECURITY EMPLOYEE TAXES AND RAILROAD RETIREMENT TIER 1 EMPLOYEE TAXES IM- POSED DURING 1984. "(a) GENERAL RULE.—There shall be allowed as a credit against the tax imposed by section 3101(a) on wages received during 1984 an amount equal to %o of 1 percent of the wages so received. "(b) TIME CREDIT ALLOWED.—The credit under subsection (a) shall be taken into account in determining the simount of the tax deducted under section 3102(a). "(c) WAGES.— For purposes of this section, the term 'wages' has the meaning given to such term by section 3121(a). "(d) APPLICATION TO AGREEMENTS UNDER SECTION 218 OF THE 42 USC 418. SOCIAL SECURITY ACT. —For purposes of determining amounts equiv- alent to the tax imposed by section 3101(a) with respect to remu- neration which— "(1) is covered by an agreement under section 218 of the Social Security Act, and "(2) is paid during 1984, the credit allowed by subsection (a) shall be taken into account. A similar rule shall also apply in the case of an agreement under section 3121(1). "(e) CREDIT AGAINST RAILROAD RETIREMENT EMPLOYEE AND EM- PLOYEE REPRESENTATIVE TAXES.— "(1) IN GENERAL. — There shall be allowed as a credit against the taxes imposed by sections 3201(a) and 3211(a) on compensa- tion paid during 1984 and subject to such taxes at rates deter- mined by reference to section 3101 an amount equal to %o of 1 percent of such compensation. "(2) TIME CREDIT ALLOWED.— The credit under paragraph (1) shall be taken into account in determining the amount of the tax deducted under section 3202(a) (or the amount of the tax under section 3211(a)). "(3) COMPENSATION. —For purposes of this subsection, the term 'compensation' has the meaning given to such term by section 3231(e). "(f) COORDINATION WITH SECTION 6413(C). — For purposes of subsec- tion (c) of section 6413, in determining the amount of the tax imposed by section 3101 or 3201, any credit allowed by this section shall be taken into account." (2) CLERICAL AMENDMENT.— The table of sections for chapter 25 of such Code is amended by adding at the end thereof the following new item:

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 PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 89 "Sec. 3510. Credit for increased social security employee taxes and railroad retirement tier 1 employee taxes imposed during 1984." (3) EFFECTIVE DATE.—The amendments made by this subsec- 26 USC 35io tion shall apply to remuneration paid during 1984. ^°^- (4) DEPOSITS IN SOCIAL SECURITY TRUST FUNDS.— For purposes 42 USC 4i8 note. of subsection (h) of section 218 of the Social Security Act (relat- 42 USC 418. ing to deposits in social security trust funds of amounts received under section 218 agreements), amounts allowed as a credit pursuant to subsection (d) of section 3510 of the Internal Reve- nue Code of 1954 (relating to credit for remuneration paid Ante, p. 88. during 1984 which is covered under an agreement under section 218 of the Social Security Act) shall be treated as amounts received under such an agreement. (5) DEPOSITS IN RAILROAD RETIREMENT ACCOUNT.— For purposes 45 USC 23in of subsection (a) of section 15 of the Railroad Retirement Act of "°*® 1974, amounts allowed as a credit under subsection (e) of section 45 USC 23in. 3510 of the Internal Revenue Code of 1954 shall be treated as amounts covered into the Treasury under subsection (a) of section 3201 of such Code. SEC. 124. TAXES ON SELF-EMPLOYMENT INCOME; CREDIT AGAINST SUCH TAXES FOR YEARS BEFORE 1990; DEDUCTION OF SUCH TAXES FOR YEARS AFTER 1989. (a) INCREASE IN RATES. — Subsections (a) and (b) of section 1401 of the Internal Revenue Code of 1954 (relating to rates of tax on self- 26 USC I40i. employment income) are amended to read as follows: "(a) OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE. — In addition to other taxes, there shall be imposed for each taxable year, on the self-employment income of every individual, a tax equal to the following percent of the amount of the self-employment income for such taxable year: "In the case of a taxable year Beginning after: And before: Percent: December 31, 1983 January 1, 1988 11.40 December 31, 1987 January 1, 1990 12.12 December 31, 1989 12.40 "(b) HOSPITAL INSURANCE. —In addition to the tax imposed by the preceding subsection, there shall be imposed for each taxable year, on the self-employment income of every individual, a tax equal to the following percent of the amount of the self-employment income for such taxable year: "In the case of a taxable year Beginning aften And before: Percent: December 31, 1983 January 1, 1985 2.60 December 31, 1984 January 1, 1986 2.70 December 31, 1985 2.90." (b) CREDIT FOR YEARS BEFORE 1990 AGAINST SELF-EMPLOYMENT TAXES.—Section 1401 of such Code is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: "(c) CREDIT AGAINST TAXES IMPOSED BY THIS SECTION.— "(1) IN GENERAL.— In the case of a taxable year beginning before 1990, there shall be allowed as a credit against the taxes imposed by this section for any taxable year an amount equal to

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 97 STAT. 90 PUBLIC LAW 98-21 —APR. 20, 1983 the applicable percentage of the self-employment income of the individual for such taxable year. "(2) APPLICABLE PERCENTAGE. — For purposes of paragraph (1), the applicable percentage shall be determined in accordance with the following table: "In the case of taxable The applicable years begrinning in: percentage is: 1984 2.7 1985 2.3 1986, 1987, 1988, or 1989 2.0." (c) ALLOWANCE OF DEDUCTION FOR YEARS AFTER 1989 FOR ONE- HALF OF TAXES ON SELF-EMPLOYMENT INCOME. — 26 USC 164. (1) IN GENERAL.— Section 164 of such Code (relating to deduc- tion for taxes) is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: " (f) DEDUCTION FOR ONE-HALF OF SELF-EMPLOYMENT TAXES. — "(1) IN GENERAL. —In the case of an individual, in addition to the taxes described in subsection (a), there shall be allowed as a deduction for the taxable year an amount equal to one-half of the taxes imposed by section 1401 for such taxable year. "(2) DEDUCTION TREATED AS ATTRIBUTABLE TO TRADE OR BUSI- NESS.— For purposes of this chapter, the deduction allowed by paragraph (1) shall be treated as attributable to a trade or business carried on by the taxpayer which does not consist of the performance of services by the taxpayer as an employee." (2) ALTERNATIVE DEDUCTION ALLOWED IN COMPUTING SELF-EM- 26 USC 1402. PLOYMENT TAXES. —Subsection (a) of section 1402 of such Code (defining net earnings from self-employment) is amended by striking out "and" at the end of paragraph (11), by redes- ignating paragraph (12) as paragraph (13), and by inserting after paragraph (11) the following new paragraph: "(12) in lieu of the deduction provided by section 164(f) (relat- ing to deduction for one-half of self-employment taxes), there shall be allowed a deduction equal to the product of— "(A) the taxpayer's net earnings from self-employment for the taxable year (determined without regard to this paragraph), and "(B) one-half of the sum of the rates imposed by subsec- tions (a) and (b) of section 1401 for such year; and". (3) CONFORMING AMENDMENT TO SOCIAL SECURITY ACT. — Sub- 42 USC 411. section (a) of section 211 of the Social Security Act is amended by striking out "and" at the end of paragraph (10), by redes- ignating paragraph (11) as paragraph (12), and by inserting after paragraph (10) the following new paragraph: "(11) In lieu of the deduction provided by section 164(f) of the Internal Revenue Code of 1954 (relating to deduction for one- half of self-employment taxes), there shall be allowed a deduc- tion equal to the product of— "(A) the taxpayer's net earnings from self-employment for the taxable year (determined without regard to this paragraph), and "(B) one-half of the sum of the rates imposed by subsec- tions (a) and (b) of section 1401 of such Code for such year; and". Supra. (4) SECTION 164(F) DEDUCTION TAKEN INTO ACCOUNT IN COM- PUTING EARNED INCOME. —

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 PUBLIC LAW 98-21—APR. 20, 1983 97 STAT. 91 (A) Subparagraph (A) of section 401(c)(2) of such Code 96 Stat. 513. (defining earned income) is amended by striking out "and" 46 USC 40i. at the end of clause (iv), by striking out the period at the end of clause (v) and inserting in lieu thereof '\ and", and by inserting after clause (v) the following new clause: "(vi) with regard to the deduction allowed to the taxpayer by section 164(f)." Ante, p. 90. (B) Clause (ii) of section 43(c)(2)(A) of such Code is 26 USC 43. amended by inserting before the period ", but such net earnings shall be determined with regard to the deduction allowed to the taxpayer by section 164(f)". (5) CONFORMING AMENDMENT.— Subsection (a) of section 275 of 26 USC 275. such Code (relating to denial of deduction for certain taxes) is amended by adding at the end thereof the following new sen- tence: "Paragraph (1) shall not apply to any taxes to the extent such taxes are allowable as a deduction under section 164(f)." (d) EFFECTIVE DATES.— 26 USC I40i (1) IN GENERAL. —Except as provided in paragraph (2), the "°^- amendments made by this section shall apply to taxable years beginning after December 31, 1983. (2) SUBSECTION (C). — The amendments made by subsection (c) shall apply to taxable years beginning after December 31, 1989. SEC. 125. TREATMENT OF CERTAIN FACULTY PRACTICE PLANS. 26 USC 3121 (a) GENERAL RULE. — For purposes of subsection (s) of section 3121 of the Internal Revenue Code of 1954 (relating to concurrent employ- ment by 2 or more employers)— (1) the following entities shall be deemed to be related corpo- rations: (A) a State university which employs health professionals as faculty members at a medical school, and (B) a faculty practice plan described in section 501(c)(3) of such Code and exempt from tax under section 501(a) of such Code— (i) which employs faculty members of such medical school, and (ii) 30 percent or more of the employees of which are concurrently employed by such medical school; and (2) remuneration which is disbursed by such faculty practice plan to a health professional employed by both such entities shall be deemed to have been actually disbursed by such univer- sity as a common paymaster and not to have been actually disbursed by such faculty practice plan. (b) EFFECTIVE DATE. —The provisions of subsection (a) shall apply to remuneration paid after December 31, 1983. ALLOCATIONS TO DISABILITY INSURANCE TRUST FUND SEC. 126. (a) Section 201(b)(1) of the Social Security Act is amended 42 USC 40i. by striking out clauses (K) through (M) and inserting in lieu thereof the following: "(K) 1.65 per centum of the wages (as so defined) paid after December 31, 1981, and before January 1, 1983, and so reported, (L) 1.25 per centum of the wages (as so defined) paid after December 31, 1982, and before January 1, 1984, and so reported, (M) 1.00 per centum of the wages (as so defined) paid after December 31, 1983, and before January 1, 1988, and so reported, (N) 1.06 per

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 97 STAT. 92 PUBLIC LAW 98-21 —APR. 20, 1983 centum of the wages (as so defined) paid after December 31, 1987, and before January 1, 1990, and so reported, (O) 1.20 per centum of the wages (as so defined) paid after December 31, 1989, and before January 1, 2000, and so reported, and (P) 1.42 per centum of the wages (as so defined) paid after December 31, 1999, and so reported,". 42 USC 401. (b) Section 2010t))(2) of such Act is amended by striking out clauses (K) through (M) and inserting in lieu thereof the following: "(K) 1.2375 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1981, and before January 1, 1983, (L) 0.9375 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1982, and before January 1, 1984, (M) 1.00 per centum of the amount of self-employ- ment income (as so defined) so reported for any taxable year begin- ning after December 31, 1983, and before January 1, 1988, (N) 1.06 per centum of the self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1987, and before January 1, 1990, (O) 1.20 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1989, and before January 1, 2000, and (P) 1.42 per centum of the self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1999, ". PART D—BENEFITS FOR CERTAIN SURVIVING, DIVORCED, AND DISABLED SPOUSES BENEFITS FOR SURVIVING DIVORCED SPOUSES AND DISABLED WIDOWS AND WIDOWERS WHO REMARRY 42 USC 402. SEC. 131. (a)(1) Section 202(e)(3) of the Social Security Act is repealed. (2) Section 202(e)(4) of such Act is amended to read as follows: "(4) For purposes of paragraph (1), if— "(A) a widow or surviving divorced wife marries after attain- ing age 60 (or after attaining age 50 if she was entitled before such marriage occurred to benefits based on disability under this subsection), or "(B) a disabled widow or disabled surviving divorced wife described in paragraph (l)(B)(ii) marries after attaining age 50, such marriage shall be deemed not to have occurred.". (3)(A) Section 202(e) of such Act is further amended by redes- ignating paragraph (4) (as amended by paragraph (2) of this subsec- tion), and paragraphs (5) through (8), as paragraphs (3) through (7), respectively. (B) Section 202(e)(l)(B)(ii) of such Act is amended by striking out "(5)" and inserting in lieu thereof "(4)". (C) Section 202(e)(1)(F) of such Act is amended by striking out "(6)" in clause (i) and "(5)" in clause (ii) and inserting in lieu thereof "(5)" and "(4)", respectively. (D) Section 202(e)(2)(A) of such Act is amended by striking out "(8)" and inserting in lieu thereof "(7)". (E) The paragraph of section 202(e) of such Act redesignated as paragraph (5) by subparagraph (A) of this paragraph is amended by striking out "(5)" and inserting in lieu thereof "(4)".

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 PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 93 (F) The paragraph of such section 202(e) redesignated as para- graph (7) by subparagraph (A) of this paragraph is amended by striking out "(4)" and inserting in lieu thereof "(3r. (G) Section 202(k) of such Act is amended by striking out "(e)(4)" each place it appears in paragraphs (2)(B) and (3)(B) and inserting in lieu thereof "(e)(3)". (H) Section 226(e)(l)(A) of such Act is amended by striking out "202(e)(5)" and inserting in lieu thereof "202(e)(4)". ObXD Section 202(f)(4) of such Act is repealed. (2) Section 202(fK5) of such Act is amended to read as follows: "(5) For purposes of paragraph (1), if— "(A) a widower marries after attaining age 60 (or after attain- ing age 50 if he was entitled before such marriage occurred to benefits based on disability under this subsection), or "(B) a disabled widower described in paragraph (IXBXii) mar- ries after attaining age 50, such marriage shall be deemed not to have occurred.". (3)(A) Section 202(1) of such Act is further amended by redes- ignating paragraph (5) (as amended by paragraph (2) of this subsec- tion), and paragraphs (6) through (8), as paragraphs (4) through (7), respectively. (B) Section 202(f)(IXBXii) of such Act is amended by striking out "(6)" and inserting in lieu thereof "(5)". (C) Section 202(f)(l)(F) of such Act is amended by striking out "(7)" in clause (i) and "(6)" in clause (ii) and inserting in lieu thereof "(6)" and "(5)", respectively. (D) Section 202(f)(2)(A) of such Act is amended by striking out "(5)" and inserting in lieu thereof "(4)". (E) The paragraph of section 202(f) of such Act redesignated as paragraph (6) by subparagraph (A) of this paragraph is amended by striking out "(6)" and inserting in lieu thereof "(5)". (F) Section 202(k) of such Act is amended by striking out "(fK5)" each place it appears in paragraphs (2)(B) and (3)(B) and inserting in lieu thereof "(f)(4)". (G) Section 226(e)(l)(A) of such Act is amended by striking out "202(f)(6)" and inserting in lieu thereof "202(f)(5)". (c)(1) Section 202(s)(2) of such Act is amended by striking out " Subsection (f)(4), and so much of subsections (b)(3), (d)(5), (e)(3), (g)(3), and (h)(4)" and inserting in lieu thereof "So much of subsec- tions (b)(3), (d)(5), (g)(3), and (h)(4)". (2) Section 202(s)(3) of such Act is amended by striking out "(e)(3),". (d)(1) The amendments made by this section shall be effective with respect to monthly benefits payable under title II of the Social Security Act for months after December 1983. (2) In the case of an individual who was not entitled to a monthly benefit of the type involved under title II of such Act for December 1983, no benefit shall be paid under such title by reason of such amendments unless proper application for such benefit is made. 42 USC 402. 42 USC 426. Effective date. 42 USC 402 note. 42 USC 401. ENTITLEMENT TO DIVORCED SPOUSE S BENEFITS WITHOUT REGARD TO ENTITLEMENT OF INSURED INDIVIDUAL TO BENEFITS; EXEMPTION OF DIVORCED SPOUSE'S BENEFITS FROM DEDUCTION ON ACCOUNT OF WORK SEC 132. (a) Section 202(b) of the Social Security Act is amended by adding at the end thereof the following new paragraph: 42 USC 402.

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 97 STAT. 94 PUBLIC LAW 98-21 —APR. 20, 1983 "(5)(A) Notwithstanding the preceding provisions of this subsec- tion, except as provided in subparagraph (B), the divorced wife of an individual who is not entitled to old-age or disability insurance benefits, but who has attained s^e 62 and is a fully insured indi- 42 USC 414. vidual (as defined in section 214), if such divorced wife— "(i) meets the requirements of subparagraphs (A) through (D) of paragraph (1), and (ii) has been divorced from such insured individual for not less than 2 years, shall be entitled to a wife's insurance benefit under this subsection for each month, in such amount, and beginning and ending with such months, as determined (under regulations of the Secretary) in the manner otherwise provided for wife's insurance benefits under this subsection, as if such insured individual had become entitled to old-age insurance benefits on the date on which the divorced wife first meets the criteria for entitlement set forth in clauses (i) and (ii). "(B) A wife's insurance benefit provided under this paragraph which has not otherwise terminated in accordance with subpara- graph (E), (F), (H), or (J) of paragraph (1) shall terminate with the month preceding the first month in which the insured individual is no longer a fully insured individual. ". 42 USC 403. (b)(1)(A) Section 203(b) of such Act is amended— (i) by inserting "(1)" after "(b)"; (ii) by striking out "(1) such individual's benefit" and "(2) if such individual' and inserting in lieu thereof "(A) such individ- ual's benefit" and "(B) if such individual", respectively; (iii) by striking out "clauses (1) and (2)" and inserting in lieu thereof "clauses (A) and (B)"; (iv) by striking out "(A) an individual" and "(B) if a deduc- tion" and inserting in lieu thereof "(i) an individual" and "(ii) if a deduction", respectively; and (v) by adding at the end thereof the following new paragraph: "(2) When any of the other persons referred to in paragraph (1)(B) is entitled to monthly benefits as a divorced spouse under section 42 USC 402. 202 (b) or (c) for any month and such person has been so divorced for not less than 2 years, the benefit to which he or she is entitled on the basis of the wages and self-employment income of the individual referred to in paragraph (1) for such month shall be determined without regard to deductions under this subsection as a result of excess earnings of such individual, and the benefits of all other individuals who are entitled for such month to monthly benefits under section 202 on the basis of the wages and self-employment income of such individual referred to in paragraph (1) shall be determined as if no such divorced spouse were entitled to benefits for such month.". (B)(i) Section 203(fKl) of such Act is amended— (I) in the first sentence, by inserting "(excluding divorced spouses referred to in subsection (b)(2)) after "all other per- sons" the first place it appears, and by striking out "all other persons" the second place it appears and inserting in lieu thereof "all such other persons"; and (II) in the second sentence, by inserting "(excluding divorced spouses referred to in subsection (b)(2))" after "other persons". (ii) Section 203(f)(7) of such Act is amended by inserting "(exclud- ing divorced spouses referred to in subsection (b)(2))" after "all persons". (2) Section 203(d)(1) of such Act is amended—

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10 worked silk counterpanes, can hardly be conceived. I have never seen such things from the China market introduced into Europe; they fetch a good price in Mexico, but it is necessary to bargain with the merchants who deal in them, for I have known them to take one third of what they originally might ask. The town of Cuernavaca would be an agreeable place to reside in; its population is about 10,000 souls; it is well wooded and watered; the houses are clean, and have a comfortable appearance; it is something like the village of Carshalton, near London. The houses are tiled after the English fashion. Here the commandant called upon me, at my inn, to offer his services. I invited him to supper, which he partook of with Don Juan Mayorga and myself,—my companion Don Mateo, and the landlady's little daughter, about eight years old, making up the party.

Previously to my leaving Mexico, I had got fitted up in a hurry, a small canteen,


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 PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 95 (A) by inserting "(A)" after "(d)(D"; and (B) by adding at the end thereof the following new subpara- graph: "(B) When any divorced spouse is entitled to monthly benefits under section 202(b) or (c) for any month and such divorced spouse 42 USC 402. has been so divorced for not less than 2 years, the benefit to which he or she is entitled for such month on the basis of the wages and self-employment income of the individual entitled to old-age insur- ance benefits referred to in subparagraph (A) shall be determined without regard to deductions under this paragraph as a result of excess earnings of such individual, and the benefits of all other individuals who are entitled for such month to monthly benefits under section 202 on the basis of the wages and self-employment income of such individual referred to in subparagraph (A) shall be determined as if no such divorced spouse were entitled to benefits for such month.". (c)(1) The amendments made by subsection (a) shall apply with respect to monthly insurance benefits for months after December 1984, but only on the basis of applications filed on or after January 1, 1985. (2) The amendments made by subsection (b) shall apply with respect to monthly insurance benefits for months after December 1984. Effective date. 42 USC 402 note. Effective date. 42 USC 403 note. INDEXING OF DEFERRED SURVIVING SPOUSE S BENEFITS TO RECENT WAGE LEVELS SEC. 133. (a)(1) Section 202(e)(2) of the Social Security Act is 42 USC 402. amended— (A) by redesignating subparagraph (B) as subparagraph (D); and (B) by striking out "(2)(A) Except" and all that follows down through "If such deceased individual" and inserting in lieu thereof the following: "(2)(A) Except as provided in subsection (q), paragraph (8) of this subsection, and subparagraph (D) of this paragraph, such widow's insurance benefit for each month shall be equal to the primary insurance amount (as determined for purposes of this subsection after application of subparagraphs (B) and (O) of such deceased individual. "(B)(i) For purposes of this subsection, in any case in which such deceased individual dies before attaining age 62 and section 215(a)(1) 42 USC 415. (as in effect after December 1978) is applicable in determining such individual's primary insurance amount— ^ "(I) such primary insurance amount shall be determined under the formula set forth in section 215(a)(l)(B)(i) and (ii) which is applicable to individuals who initially become eligible for old-ag:e insurance benefits in the second year after the year specified in clause (ii), "(II) the year specified in clause (ii) shall be substituted for the second calendar year specified in section 215(b)(3)(A)(ii)(I), and "(III) such primary insurance amount shall be increased under section 215(i) as if it were the primary insurance amount referred to in section 215(i)(2)(A)(ii)(II), except that it shall be increased only for years beginning after the first year after the year specified in clause (ii).

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 97 STAT. 96 PUBLIC LAW 98-21 —APR. 20, 1983 "(ii) The year specified in this clause is the earlier of— "(I) the year in which the deceased individual attained age 60, or would have attained age 60 had he lived to that age, or "(II) the second year preceding the year in which the widow or surviving divorced wife first meets the requirements of para- graph (1)(B) or the second year preceding the year in which the deceased individual died, whichever is later, "(iii) This subparagraph shall apply with respect to any benefit under this subsection only to the extent its application does not result in a primary insurance amount for purposes of this subsection which is less than the primary insurance amount otherwise deter- 42 USC 415. mined for such deceased individual under section 215. "(C) If such deceased individual.". (2) Section 202(e) of such Act (as amended by paragraph (1) of this subsection) is further amended— (A) in paragraph (1)(D) and in the matter in paragraph (1) following subparagraph (F)(ii), by inserting "(as determined after application of subparagraphs (B) and (C) of paragraph (2))" after "primary insurance amount"; and (B) in paragraph (2)(D)(ii), by inserting "(as determined with- out regard to subparagraph (C))" after "primary insurance amount". 42 USC 402. (b)(1) Section 202(f)(3) of such Act is amended— (A) by redesignating subparagraph (B) as subparagraph (D); and (B) by striking out "(3)(A) Except" and all that follows down through "If such deceased individual" and inserting in lieu thereof the following: "(3)(A) Except as provided in subsection (q), paragraph (2) of this subsection, and subparagraph (D) of this paragraph, such widower's insurance benefit for each month shall be equal to the primary insurance amount (as determined for purposes of this subsection after application of subparagraphs (B) and (O) of such deceased individual. "(B)(i) For purposes of this subsection, in any case in which such deceased individual dies before attaining age 62 and section 215(a)(1) (as in effect after December 1978) is applicable in determining such individual's primary insurance amount— "(I) such primary insurance amount shall be determined under the formula set forth in section 215(a)(l)(B)(i) and (ii) which is applicable to individuals who initially become eligible for old-age insurance benefits in the second year after the year specified in clause (ii), "(II) the year specified in clause (ii) shall be substituted for the second calendar year specified in section 215(b)(3)(A)(iiXI), and "(III) such primary insurance amount shall be increased under section 215(i) as if it were the primary insurance amount referred to in section 215(i)(2)(A)(ii)(II), except that it shall be increased only for years beginning after the first year after the year specified in clause (ii). "(ii) The year specified in this clause is the earlier of— "(I) the year in which the deceased individual attained age 60, or would have attained age 60 had she lived to that age, or "(II) the second year preceding the year in which the widower first meets the requirements of paragraph dXB) or the second

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 PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 97 42 USC 415. year preceding the year in which the deceased individual died, whichever is later. "(iii) This subparagraph shall apply with respect to any benefit under this subsection only to the extent its application does not result in a primary insurance amount for purposes of this subsection which is less than the primary insurance amount otherwise deter- mined for such deceased individual under section 215. "(C) If such deceased individual. ". (2) Section 202(f) of such Act (as amended by paragraph (1) of this 42 USC 402 subsection) is further amended— (A) in paragraph (1)(D) and in the matter in paragraph (1) following subparagraph (F)(ii), by inserting "(as determined after application of subparagraphs (B) and (C) of paragraph (3))" after "primary insurance amount"; and (B) in paragraph (3)(D)(ii), by inserting "(as determined with- out regard to subparagraph (C))" after "primary insurance amount". (c) The amendments made by this section shall apply with respect to monthly insurance benefits for months after December 1984 for individuals who first meet all criteria for entitlement to benefits under section 202(e) or (f) of the Social Security Act (other than making application for such benefits) after December 1984. Effective date. 42 USC 402 note. LIMITATION ON BENEFIT REDUCTION FOR EARLY RETIREMENT IN CASE OF DISABLED WIDOWS AND WIDOWERS SEC. 134. (a)(1) Section 202(q)(l) of the Social Security Act is 42 USC 402. amended by striking out the semicolon at the end of subparagraph (B)(ii) and all that follows and inserting in lieu thereof a period. (2)(A) Section 202(q)(6) of such Act is amended to read as follows: "(6) For purposes of this subsection, the 'reduction period' for an individual's old-age, wife's, husband's, widow's, or widower's insur- ance benefit is the period— "(A) 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, "(ii) in the case of a wife's insurance benefit, with the first day of the first month for which a certificate described in paragraph (5)(A)(i) is effective, or (iii) in the case of a widow's or widower's insurance benefit, with the first day of the first month for which such individual is entitled to such benefit or the first day of the month in which such individual attains age 60, whichever is the later, and "(B) ending with the last day of the month before the month in which such individual attains retirement age.". (B) Section 202(q)(3)(G) of such Act is amended by striking out "paragraph (6)(A) (or, if such paragraph does not apply, the period specified in paragraph (6)(B))" and inserting in lieu thereof para- graph (6)". (C) Section 202(q) of such Act is further amended, in paragraphs (IXBXi), (3)(E)(ii), and (3)(F)(iiXI), by striking out "paragraph (6)(A)" and inserting in lieu thereof "paragraph (6). (3) Section 202(q)(7) of such Act is amended by striking out the matter preceding subparagraph (A) and inserting in lieu thereof the following: 11-1940-85 —5:QL3

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 97 STAT. 98 PUBLIC LAW 98-21 —APR. 20, 1983 42 USC 402. 95 Stat. 1660. Effective date. 42 USC 402 note. "(7) For purposes of this subsection, the 'adjusted reduction period' for an individual's old-age, wife's, husband's, widow's, or widower's insurance benefit is the reduction period prescribed in paragraph (6) for such benefit, excluding—". (4) Section 202(q)(10) of such Act is amended— (A) in that part of the second sentence preceding clause (A), by striking out "or an additional adjusted reduction period"; (B) in clauses (B)(i) and (C)(i), by striking out ", plus the number of months in the adjusted additional reduction period multiplied by ''%4o of 1 percent"; (C) in clause (B)(ii), by striking out "plus the number of months in the additional reduction period multiplied by *%4o of 1 percent,"; and (D) in clause (C)(ii), by striking out "plus the number of months in the adjusted additional reduction period multiplied by *%4o of 1 percent.". (b) Section 202(m)(2)(B) of such Act (as applicable after the enact- ment of section 2 of Public Law 97-123) is amended by striking out "subsection (q)(6)(A)(ii)" and inserting in lieu thereof "subsection (q)(6)(B)". (c) The amendments made by this section shall apply with respect to benefits for months after December 1983. PART E—MECHANISMS TO ASSURE CONTINUED BENEFIT PAYMENTS IN UNEXPECTEDLY ADVERSE CONDITIONS NORMALIZED CREDITING OF SOCIAL SECURITY TAXES TO TRUST FUNDS 42 USC 401. SEC. 141. (a)(1) The last sentence of section 201(a) of the Social Security Act is amended— (A) by striking out "from time to time" each place it appears and inserting in lieu thereof "monthly on the first day of each calendar month"; and (B) by striking out "paid to or deposited into the Treasury" and inserting in lieu thereof "to be paid to or deposited into the Treasury during such month". (2) Section 201(a) of such Act is further amended by adding at the end thereof the following new sentence: "All amounts transferred to either Trust Fund under the preceding sentence shall be invested by the Managing Trustee in the same manner and to the same extent as the other assets of such Trust Fund; and such Trust Fund shall pay interest to the general fund on the amount so transferred on the first day of any month at a rate (calculated on a daily basis, and applied against the difference between the amount so transferred on such first day and the amount which would have been transferred to the Trust Fund up to that day under the procedures in effect on January 1, 1983) equal to the rate earned by the investments of such Fund in the same month under subsection (d).". 42 USC 13951. (b)(1) The last sentence of section 1817(a) of such Act is amended— (A) by striking out "from time to time" and inserting in lieu thereof "monthly on the first day of each calendar month"; and (B) by striking out "paid to or deposited into the Treasury" and inserting in lieu thereof "to be paid to or deposited into the Treasury during such month". (2) Section 1817(a) of such Act is further amended by adding at the end thereof the following new sentence: "All amounts transferred to the Trust Fund under the preceding sentence shall be invested by

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 PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 99 Effective date. 42 USC 401 note. the Managing Trustee in the same manner and to the same extent as the other assets of the Trust Fund; and the Trust Fund shall pay interest to the general fund on the amount so transferred on the first day of any month at a rate (calculated on a daily basis, and applied against the difference between the amount so transferred on such first day and the amount which would have been transferred to the Trust Fund up to that day under the procedures in effect on January 1, 1983) equal to the rate earned by the investments of the Trust Fund in the same month under subsection (c).". (c) The amendments made by this section shall become effective on the first day of the month following the month in which this Act is enacted. INTERFUND BORROWING EXTENSION SEC. 142. (a)(1) Section 201(1)(1) of the Social Security Act is 42 USC 40i amended— (A) by striking out "January 1983" and inserting in lieu thereof "January 1988"; and (B) by inserting after "or" the second place it appears ", subject to paragraph (5),". (2)(A) Section 201(1)(2) of such Act is amended— (i) by striking out "from time to time" and inserting in lieu thereof "on the last day of each month after such loan is made"; (ii) by striking out "interest" and inserting in lieu thereof "the total interest accrued to such day"; and (iii) by inserting before the period at the end thereof the following: "(even if such an investment would earn interest at a rate different than the rate earned by investments redeemed by the lending fund in order to make the loan)". (B) The amendment made by this paragraph shall apply with respect to months beginning more than thirty days after the date of enactment of this Act. (3) Section 201(1)(3) of such Act is amended— (A) by inserting "(A)" after the paragraph designation; and (B) by adding at the end thereof the following new subpara- graphs: "(B)(i) If on the last day of any year after a loan has been made under paragraph (1) by the Federal Hospital Insurance Trust Fund to the Federal Old-Age and Survivors Trust Fund or the Federal Disability Insurance Trust Fund, the Managing Trustee determines that the OASDI trust fund ratio exceeds 15 percent, he shall trans- fer from the borrowing Trust Fund to the Federal Hospital Insur- ance Trust Fund an amount that— "(I) together with any amounts transferred from another borrowing Trust Fund under this paragraph for such year, will reduce the OASDI trust fund ratio to 15 percent; and "(II) does not exceed the outstanding balance of such loan. "(ii) Amounts required to be transferred under clause (i) shall be transferred on the last day of the first month of the year succeeding the year in which the determination described in clause (i) is made, "(iii) For purposes of this subparagraph, the term 'OASDI trust fund ratio' means, with respect to any calendar year, the ratio of— "(I) the combined balance in the Federal Old-Age and Survi- vors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, as of the last day of such calendar year, to "(II) the amount estimated by the Secretary to be the total amount to be paid from the Federal Old-Age and Survivors Effective date. 42 USC 401 note.

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 97 STAT. 100 PUBLIC LAW 98-21 —APR. 20, 1983 Insurance Trust Fund and the Federal Disability Insurance Trust Fund during the calendar year following such calendar year for all purposes authorized by section 201 (other than payments of interest on, and repayments of, loans from the Federal Hospital Insurance Trust Fund under paragraph (1), but excluding any transfer payments between such trust funds and reducing the amount of any transfer to the Railroad Retire- ment Account by the amount of any transfers into either such trust fund from that Account). Repayment date. "(C)(i) The full amount of all loans made under paragraph (1) (whether made before or after January 1, 1983) shall be repaid at the earliest feasible date and in any event no later than Decem- ber 31, 1989. "(ii) For the period after December 31, 1987, and before January 1, 1990, the Managing Trustee shall transfer each month to the Fed- eral Hospital Insurance Trust Fund from any Trust Fund with any amount outstanding on a loan made from the Federal Hospital Insurance Trust Fund under paragraph (1) an amount not less than an amount equal to (I) the amount owed to the Federal Hospital Insurance Trust Fund by such Trust Fund at the beginning of such month (plus the interest accrued on the outstanding balance of such loan during such month), divided by (II) the number of months elapsing after the preceding month and before January 1990. The Managing Trustee may, during this period, transfer larger amounts than prescribed by the preceding sentence.". 42 USC 401. (4) Section 201(1) of such Act is further amended by adding at the end thereof the following new paragraph: "(5)(A) No amounts may be borrowed from the Federal Hospital Insurance Trust Fund under paragraph (1) during any month if the Hospital Insurance Trust Fund ratio for such month is less than 10 percent. "(B) For purposes of this paragraph, the term 'Hospital Insurance Trust Fund ratio' means, with respect to any month, the ratio of— "(i) the balance in the Federal Hospital Insurance Trust Fund, reduced by the outstanding amount of any loan (including interest thereon) theretofore made to such Trust Fund under this subsection, as of the last day of the second month preceding such month, to "(ii) the amount obtained by multiplying by twelve the total amount which (as estimated by the Secretary) will be paid from the Federal Hospital Insurance Trust Fund during the month for which such ratio is to be determined (other than payments of interest on, or repayments of loans from another Trust Fund ^ under this subsection), and reducing the amount of any trans- fers to the Railroad Retirement Account by the amount of any transfer into the Hospital Insurance Trust Fund from that Account. ". 42 USC 13951. (b)(1) Section 1817(j)(l) of such Act is amended— (A) by striking out "January 1983" and inserting in lieu thereof "January 1988"; and (B) by inserting ", subject to paragraph (5)," after "may". (2)(A) Section 1817(j)(2) of such Act is amended— (i) by striking out "from time to time" and inserting in lieu thereof "on the last day of each month after such loan is made"; (ii) by striking out "interest" and inserting in lieu thereof "the total interest accrued to such day"; and "Hospital Insurance Trust Fund ratio."

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 PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 101 Effective date. 42 USC 13951 note. 42 USC 1395i. "Hospital Insurance Trust Fund ratio." (iii) by inserting before the period at the end thereof the following: "(even if such an investment would earn interest at a rate different than the rate earned by investments redeemed by the lending fund in order to make the loan)". (B) The amendment made by this paragraph shall apply with respect to months beginning more than 30 days after the date of enactment of this Act. (3) Section 1817(j)(3) of such Act is amended— (A) by inserting "(A)" after the paragraph designation; and (B) by adding at the end thereof the following new subpara- graphs: "(B)(i) If on the last day of any year after a loan has been made under paragraph (1) by the Federal Old-Age and Survivors Insur- ance Trust Fund or the Federal Disability Insurance Trust Fund to the Federal Hospital Insurance Trust Fund, the Managing Trustee determines that the Hospital Insurance Trust Fund ratio exceeds 15 percent, he shall transfer from such Trust Fund to the lending trust fund an amount that— "(I) together with any amounts transferred to another lending trust fund under this paragraph for such year, will reduce the Hospital Insurance Trust Fund ratio to 15 percent; and "(II) does not exceed the outstanding balance of such loan. "(ii) Amounts required to be transferred under clause (i) shall be transferred on the last day of the first month of the year succeeding the year in which the determination described in clause (i) is made. "(iii) For purposes of this subparagraph, the term 'Hospital Insur- ance Trust Fund ratio' means, with respect to any calendar year, the ratio of— "(I) the balance in the Federal Hospital Insurance Trust Fund, as of the last day of such calendar year; to "(II) the amount estimated by the Secretary to be the total amount to be paid from the Federal Hospital Insurance Trust Fund during the calendar year following such calendar year (other than payments of interest on, and repayments of, loans from the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund under para- graph (D), and reducing the amount of any transfer to the Railroad Retirement Account by the amount of any transfers into such Trust Fund from the Railroad Retirement Account. "(C)(i) The full amount of all loans made under paragraph (1) Repayment date (whether made before or after January 1, 1983) shall be repaid at the earliest feasible date and in any event no later than Decem- ber 31, 1989.". "(ii) For the period after December 31, 1987 and before January 1, 1990, the Managing Trustee shall transfer each month from the Federal Hospital Insurance Trust Fund to any Trust Fund that is owed any amount by the Federal Hospital Insurance Trust Fund on a loan made under paragraph (1), an amount not less than an amount equal to (I) the amount owed to such Trust Fund by the Federal Hospital Insurance Trust Fund at the beginning of such month (plus the interest accrued on the outstanding balance of such loan during such month), divided by (II) the number of months elapsing after the preceding month and before January 1990. The Managing Trustee may, during this period, transfer larger amounts than prescribed by the preceding sentence.". (4) Section 1817(j) of such Act is further amended by adding at the end thereof the following new paragraph:

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 97 STAT. 102 PUBLIC LAW 98-21—APR. 20, 1983 "OASDI trust fund ratio." 42 USC 401. "(5)(A) No amounts may be loaned by the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund under paragraph (1) during any month if the OASDI trust fund ratio for such month is less than 10 percent. "(B) For purposes of this paragraph, the term 'OASDI trust fund ratio' means, with respect to any month, the ratio of^ "(i) the combined balance in the Federal Old-Age and Survi- vors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, reduced by the outstanding amount of any loan (including interest thereon) theretofore made to either such Trust Fund from the Federal Hospital Insurance Trust Fund under section 201(1), as of the last day of the second month preceding such month, to "(ii) the amount obtained by multiplying by twelve the total amount which (as estimated by the Secretary) will be paid from the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund during the month for which such ratio is to be determined for all purposes author- ized by section 201 (other than payments of interest on, or repayments of, loans from the Federal Hospital Insurance Trust Fund under section 201(1)), but excluding any transfer payments between such trust funds and reducing the amount of any transfers to the Railroad Retirement Account by the amount of any transfers into either such trust fund from that Account.". RECOMMENDATIONS BY BOARD OF TRUSTEES TO REMEDY INADEQUATE BALANCES IN THE SOCIAL SECURITY TRUST FUNDS SEC. 143. Title VII of the Social Security Act is amended by adding at the end thereof the following new section: Report to Congress. 42 USC 910. 26 USC 1401, 3101, 3111. "Balance ratio.' RECOMMENDATIONS BY BOARD OF TRUSTEES TO REMEDY INADEQUATE BALANCES IN THE SOCIAL SECURITY TRUST FUNDS "SEC. 709. (a) If the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insur- ance Trust Fund, the Federal Hospital Insurance Trust Fund, or the Federal Supplementary Medical Insurance Trust Fund determines at any time that the balance ratio of any such Trust Fund for any calendar year may become less than 20 percent, the Board shall promptly submit to each House of the Congress a report setting forth its recommendations for statutory adjustments affecting the receipts and disbursements of such Trust Fund necessary to main- tain the balance ratio of such Trust Fund at not less than 20 percent, with due regard to the economic conditions which created such inadequacy in the balance ratio and the amount of time necessary to alleviate such inadequacy in a prudent manner. The report shall set forth specifically the extent to which benefits would have to be reduced, taxes under section 1401, 3101, or 3111 of the Internal Revenue Code of 1954 would have to be increased, or a combination thereof, in order to obtain the objectives referred to in the preceding sentence. "(b) For purposes of this section, the term 'balance ratio' means, with respect to any calendar year in connection with any Trust Fund referred to in subsection (a), the ratio of— "(1) the balance in such Trust Fund, reduced by the outstand- ing amount of any loan (including interest thereon) theretofore

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 PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 103 made to such Trust Fund under section 201(1) or 1817(j), as of 42 USC 40i, the beginning of such year, to ^^^^^• "(2) the total amount which (as estimated by the Secretary) will be paid from such Trust Fund during such calendar year for all purposes authorized by section 201, 1817, or 1841 (as appli- 42 USC I395t. cable), other than payments of interest on, or repayments of, loans under section 201(1) or 1817(j), but excluding any transfer pay- ments between such Trust Fund and any other Trust Fund referred to in subsection (a) and reducing the amount of any transfers to the Railroad Retirement Account by the amount of any transfers into such Trust Fund from that Account.". PART F—OTHER FINANCING AMENDMENTS FINANCING OF NONCONTRIBUTORY MILITARY WAGE CREDITS SEC. 151. (a) Section 217(g) of the Social Security Act is amended to 42 USC 417. read as follows: "Appropriation to Trust Funds "(g)(1) Within thirty days after the date of the enactment of the Social Security Amendments of 1983, the Secretary shall determine the amount equal to the excess of— "(A) the actuarial present value as of such date of enactment of the past and future benefit payments from the Federal Old- Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund under this title and title XVIII, together with 42 USC 1395. associated administrative costs, resulting from the operation of this section (other than this subsection) and section 210 of this Act as in effect before the enactment of the Social Security 42 USC 4io. Amendments of 1950, over 42 USC 1305 "(B) any amounts previously transferred from the general "°*® fund of the Treasury to such Trust Funds pursuant to the provisions of this subsection as in effect immediately before the date of the enactment of the Social Security Amendments of 1983. Such actuarial present value shall be based on the relevant actuar- ial assumptions set forth in the report of the Board of Trustees of each such Trust Fund for 1983 under sections 201(c) and 1817(b). Post,pp.m,m. Within thirty days after the date of the enactment of the Social Security Amendments of 1983, the Secretary of the Treasury shall transfer the amount determined under this paragraph with respect to each such Trust Fund to such Trust Fund from amounts in the general fund of the Treasury not otherwise appropriated. "(2) The Secretary shall revise the amount determined under paragraph (1) with respect to each such Trust Fund in 1985 and each fifth year thereafter, as determined appropriate by the Secretary from data which becomes available to him after the date of the determination under paragraph (1) on the basis of the amount of benefits and administrative expenses actually paid from such Trust Fund under this title or title XVIII and the relevant actuarial assumptions set forth in the report of the Board of Trustees of such Trust Fund for such year under section 201(c) or 1817(b). Within 30 days after any such revision, the Secretary of the Treasury, to the extent provided in advance in appropriation Acts, shall transfer to such Trust Fund, from amounts in the general fund of the Treasury

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 97 STAT. 104 PUBLIC LAW 98-21—APR. 20, 1983 not otherwise appropriated, or from such Trust Fund to the general fund of the Treasury, such amounts as the Secretary of the Treasury determines necessary to take into account such revision.". 42 USC 429. (b)(1) Section 229(b) of such Act is amended to read as follows: "(b) There are authorized to be appropriated to each of the Trust Funds, consisting of the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund, for transfer on July 1 of each calendar year to such Trust Fund from amounts in the general fund in the Treasury not otherwise appropriated, an amount equal to the total of the additional amounts which would be appropriated to such Trust Fund for the fiscal year ending September 30 of such 42 USC 401, calendar year under section 201 or 1817 of this Act if the amounts of the additional wages deemed to have been paid for such calendar year by reason of subsection (a) constituted remuneration for em- ployment (as defined in section 3121(b) of the Internal Revenue Code 26 USC 3121. of 1954) for purposes of the taxes imposed by sections 3101 and 3111 26 USC 3101, of the Internal Revenue Code of 1954. Amounts authorized to be ^^^^- appropriated under this subsection for transfer on July 1 of each calendar year shall be determined on the basis of estimates of the Secretary of the wages deemed to be paid for such calendar year under subsection (a); and proper adjustments shall be made in amounts authorized to be appropriated for subsequent transfer to the extent prior estimates were in excess of or were less than such wages so deemed to be paid.". Effective date. (2) The amendment made by paragraph (1) shall be effective with 42 USC 429 note, respect to wages deemed to have been paid for calendar years after 1983 42 USC 429 note. (3)(A) Within thirty days after the date of the enactment of this Act, the Secretary of Health and Human Services shall determine the additional amounts which would have been appropriated to the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insur- ance Trust Fund under sections 201 and 1817 of the Social Security Act if the additional wages deemed to have been paid under section 42 USC 429. 229(a) of the Social Security Act prior to 1984 had constituted remuneration for employment (as defined in section 312105) of the Internal Revenue Code of 1954) for purposes of the taxes imposed by sections 3101 and 3111 of the Internal Revenue Code of 1954, and the amount of interest which would have been earned on such amounts if they had been so appropriated. (B)(i) Within thirty days after the date of the enactment of this Act, the Secretary of the Treasury shall transfer to each such Trust Fund, from amounts in the general fund of the Treasury not other- wise appropriated, an amount equal to the amount determined with respect to such Trust Fund under subparagraph (A), less any amount appropriated to such Trust Fund pursuant to the provisions Supra. of section 229(b) of the Social Security Act prior to the date of the determination made under subparagraph (A) with respect to wages deemed to have been paid for calendar years prior to 1984. (ii) The Secretary of Health and Human Services shall revise the amount determined under clause (i) with respect to each such Trust Fund within one year after the date of the transfer made to such Trust Fund under clause (i), as determined appropriate by such Secretary from data which becomes available to him after the date of the transfer under clause (i). Within 30 days after any such revision, the Secretary of the Treasury shall transfer to such Trust

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 PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 105 Fund, from amounts in the general fund of the Treasury not other- wise appropriated, or from such Trust Fund to the general fund of the Treasury, such amounts as the Secretary of Health and Human Services certifies as necessary to take into account such revision. ACCOUNTING FOR CERTAIN UNNEGOTIATED CHECKS FOR BENEFITS UNDER THE SOCIAL SECURITY PROGRAM SEC. 152. (a) Section 201 of the Social Security Act is amended by adding at the end thereof the following new subsection: "(m)(l) The Secretary of the Treasury shall implement procedures to permit the identification of each check issued for benefits under this title that has not been presented for payment by the close of the sixth month following the month of its issuance. "(2) The Secretary of the Treasury shall, on a monthly basis, credit each of the Trust Funds for the amount of all benefit checks (including interest thereon) drawn on such Trust Fund more than 6 months previously but not presented for payment and not pre- viously credited to such Trust Fund, to the extent provided in advance in appropriation Acts. "(3) If a benefit check is presented for payment to the Treasury and the amount thereof has been previously credited pursuant to paragraph (2) to one of the Trust Funds, the Secretary of the Treasury shall nevertheless pay such check, if otherwise proper, recharge such Trust Fund, and notify the Secretary of Health and Human Services. "(4) A benefit check bearing a current date may be issued to an individual who did not negotiate the original benefit check and who surrenders such check for cancellation if the Secretary of the Treas- ury determines it is necessary to effect proper payment of benefits.". (b) The amendment made by subsection (a) shall apply with respect to all checks for benefits under title II of the Social Security Act which are issued on or after the first day of the twenty-fourth month following the month in which this Act is enacted. (c)(1) The Secretary of the Treasury shall transfer from the general fund of the Treasury to the Federal Old-Age and Survivors Insurance Trust Fund and to the Federal Disability Insurance Trust Fund, in the month following the month in which this Act is enacted and in each of the succeeding 30 months, such sums as may be necessary to reimburse such Trust Funds in the total amount of all checks (including interest thereof) which he and the Secretary of Health and Human Services jointly determine to be unnegotiated benefit checks, to the extent provided in advance in appropriation Acts. After any amounts authorized by this subsection have been transferred to a Trust Fund with respect to any benefit check, the provisions of paragraphs (3) and (4) of section 201(m) of the Social Security Act (as added by subsection (a) of this section) shall be applicable to such check. (2) As used in paragraph (1), the term "unnegotiated benefit checks" means checks for benefits under title II of the Social Security Act which are issued prior to the twenty-fourth month following the month in which this Act is enacted, which remain unnegotiated after the sixth month following the date on which they were issued, and with respect to which no transfers have previously been made in accordance with the first sentence of such paragraph. 42 USC 401. Effective date. 42 USC 401 note. 42 USC 401. Transfers from general Treasury fund. 42 USC 401 note. "Unnegotiated benefit checks."

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 97 STAT. 106 PUBLIC LAW 98-21 —APR. 20, 1983 Study. 42 USC 401 note. 42 USC 401. Consultation with OMB Director. Reports to President and Congress. FLOAT PERIODS SEC. 153. (a) The Secretary of Health and Human Services and the Secretary of the Treasury shall jointly undertake, as soon as possi- ble after the date of the enactment of this Act, a thorough study with respect to the period of time (hereafter in this section referred to as the "float period") between the issuance of checks from the general fund of the Treasury in payment of monthly insurance benefits under title II of the Social Security Act and the transfer to the general fund from the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, as applicable, of the amounts necessary to compensate the general fund for the issuance of such checks. Each such Secretary shall consult the other regularly during the course of the study and shall, as appropriate, provide the other with such information and assist- ance as he may require. (b) The study shall include— (1) an investigation of the feasibility and desirability of main- taining the float periods which are allowed as of the date of the enactment of this section in the procedures governing the pay- ment of monthly insurance benefits under title II of the Social Security Act, and of the general feasibility and desirability of making adjustments in such procedures with respect to float periods; and (2) a separate investigation of the feasibility and desirability of providing, as a specific form of adjustment in such procedures with respect to float periods, for the transfer each day to the general fund of the Treasury from the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, as appropriate, of amounts equal to the amounts of the checks referred to in subsection (a) which are paid by the Federal Reserve Banks on such day. (c) In conducting the study required by subsection (a), the Secre- taries shall consult, as appropriate, the Director of the Office of Management and Budget, and the Director shall provide the Secre- taries with such information and assistance as they may require. The Secretaries shall also solicit the views of other appropriate officials and organizations. (d)(1) Not later than six months after the date of the enactment of this Act, the Secretaries shall submit to the President and the Congress a report of the findings of the investigation required by subsection (b)(D, and the Secretary of the Treasury shall by regula- tion make such adjustments in the procedures governing the pay- ment of monthly insurance benefits under title II of the Social Security Act with respect to float periods (other than adjustments in the form described in subsection (b)(2)) as may have been found in such investigation to be necessary or appropriate. (2) Not later than twelve months after the date of the enactment of this Act, the Secretaries shall submit to the President and the Congress a report of the findings of the separate investigation required by subsection (b)(2), together with their recommendations with respect thereto; and, to the extent necessary or appropriate to carry out such recommendations, the Secretary of the Treasury shall by regulation make adjustments in the procedures with respect to float periods in the form described in such subsection. 4ik

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 PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 107 42 USC 13951. TRUST FUND TRUSTEES REPORTS SEC. 154. (a) The next to last sentence of section 201(c) of the Social Security Act is amended by striking out "Such report shall also 42 USC 401. include" and inserting in lieu thereof the following: "Such report shall include an actuarial opinion by the Chief Actuary of the Social Security Administration certifying that the techniques and method- ologies used are generally accepted within the actuarial profession and that the assumptions and cost estimates used are reasonable: Provided, That the certification shall not refer to economic assump- tions underlying the Trustee's report, and shall also include". (b) Section 18170?) of such Act is amended by inserting immedi- ately before the last sentence the following new sentence: "Such report shall also include an actuarial opinion by the Chief Actuarial Officer of the Health Care Financing Administration certifying that the techniques and methodologies used are generally accepted within the actuarial profession and that the assumptions and cost estimates used are reasonable: Provided, That the certification shall not refer to economic assumptions underlying the Trustee's report.". (c) Section 18410b) of such Act is amended by inserting immedi- ately before the last sentence the following new sentence: "Such report shall also include an actuarial opinion by the Chief Actuarial Officer of the Health Care Financing Administration certifying that the techniques and methodologies used are generally accepted within the actuarial profession and that the assumptions and cost estimates used are reasonable: Provided, That the certification shall not refer to economic assumptions underlying the Trustee's report.". (d) Notwithstanding sections 201(c)(2), 18170b)(2), and 1841(b)(2) of 42use40i note the Social Security Act, the annual reports of the Boards of Trustees of the Trust Funds which are required in the calendar year 1983 under those sections may be filed at any time not later than forty- five days after the date of the enactment of this Act. (e) The amendments made by this section shall take effect on the date of the enactment of this Act. 42 USC 1395t. Effective date. 42 USC 401 note. TITLE II—ADDITIONAL PROVISIONS RELATING TO LONG- TERM FINANCING OF THE SOCIAL SECURITY SYSTEM INCREASE IN RETIREMENT AGE SEC. 201. (a) Section 216 of the Social Security Act is amended by adding at the end thereof the following new subsection: 42 USC 416. "Retirement Age "(1)(1) The term 'retirement age' means— "(A) with respect to an individual who attains early retire- ment age (as defined in paragraph (2)) before January 1, 2000, 65vearsofage; (B) with respect to an individual who attains early retire- ment age after December 31, 1999, and before January 1, 2005, 65 years of age plus the number of months in the age increase factor (as determined under paragraph (3)) for the calendar year in which such individual attains early retirement age; "(C) with respect to an individual who attains early retire- ment age after December 31, 2004, and before January 1, 2017, 66 years of age;

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 97 STAT. 108 PUBLIC LAW 98-21—APR. 20, 1983 "(D) with respect to an individual who attains early retire- ment age after December 31, 2016, and before January 1, 2022, 66 years of age plus the number of months in the age increase factor (as determined under paragraph (3)) for the calendar year in which such individual attains early retirement age; and "(E) with respect to an individual who attains early retire- ment age after December 31, 2021,67 years of age. "Early "(2) The term 'early retirement age' means age 62 in the case of retirement age." ^j^ old-age, wife's, or husband's insurance benefit, and age 60 in the case of a widow's or widower's insurance benefit. Age increase "(3) The age increase factor for any individual who attains early factor. retirement age in a calendar year within the period to which subparagraph (B) or (D) of paragraph (1) applies shall be determined as follows: "(A) With respect to an individual who attains early retire- ment age in the 5-year period consisting of the calendar years 2000 through 2004, the age increase factor shall be equal to two- twelfths of the number of months in the period beginning with January 2000 and ending with December of the year in which the individual attains early retirement age. "(B) With respect to an individual who attains early retire- ment age in the 5-year period consisting of the calendar years 2017 through 2021, the age increase factor shall be equal to two- twelfths of the number of months in the period beginning with January 2017 and ending with December of the year in which the individual attains early retirement age.". 42 USC 402. (b)(1) Section 202(q)(9) of such Act is amended to read as follows: "(9) The amount of the reduction for early retirement specified in parargaph (D— "(A) for old-age insurance benefits, wife's insurance benefits, and husband's insurance benefits, shall be the amount specified in such paragraph for the first 36 months of the reduction period (as defined in paragraph (6)) or adjusted reduction period (as defined in paragraph (7)), and five-twelfths of 1 percent for any additional months included in such periods; and "(B) for widow's insurance benefits and widower's insurance benefits, shall be periodically revised by the Secretary such that— "(i) the amount of the reduction at early retirement age Post, p. 112. as defined in section 216(a) shall be 28.5 percent of the full benefit; and "(ii) the amount of the reduction for each month in the reduction period (specified in paragraph (6)) or the adjusted reduction period (specified in paragraph (7)) shall be estab- lished by linear interpolation between 28.5 percent at the month of attainment of early retirement age and 0 percent at the month of attainment of retirement age.". (2) Section 202(q)(l) of such Act is amended by striking out "If and inserting in lieu thereof "Subject to paragraph (9), if. 42 USC 401. (c) Title II of the Social Security Act is further amended— (1) by striking out "age 65 or "age of 65", as the case may be, each place it appears in the following sections and inserting in lieu thereof in each instance "retirement age (as defined in section 216(1))": (A) subsections (a), (b), (c), (d), (e), (f), (q), (r), and (w) of 42 USC 402. section 202;

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Page:United States Statutes at Large Volume 97.djvu/141

 PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 109 (B) subsections (c) (as amended by section 309(g) of this Act) and (f) of section 203; (C) subsection (f) of section 215; (D) subsections (h) and (i) of section 216; and (E) section 223(a); and (2) by striking out "age sixty-five" in section 203(c) (as amended by section 309(g) of this Act) and inserting in lieu thereof "retirement age (as defined in section 216(1))"; and (3) by striking out "age of sixty-five" in section 223(a) and inserting in lieu thereof "retirement age (as defined in section 216(1))". (d) The Secretary shall conduct a comprehensive study and analy- sis of the implications of the changes made by this section in retirement age in the case of those individuals (affected by such changes) who, because they are engaged in physically demanding employment or because they are unable to extend their working careers for health reasons, may not benefit from improvements in longevity. The Secretary shall submit to the Congress no later than January 1, 1986, a full report on the study and analysis. Such report shall include any recommendations for legislative changes, includ- ing recommendations with respect to the provision of protection against the risks associated with early retirement due to health considerations, which the Secretary finds necessary or desirable as a result of the findings contained in this study. TITLE III—MISCELLANEOUS AND TECHNICAL PROVISIONS PART A—EUMINATION OF GENDER-BASED DISTINCTIONS 42 USC 403. 42 USC 415. 42 USC 416. 42 USC 423. 42 USC 403. 42 USC 423. Implications of changes, study and analysis. 42 USC 416 note. Report to Congress. DIVORCED HUSBANDS SEC. 301. (a)(1) Section 202(c)(1) of the Social Security Act is 42 USC 402. amended, in the matter preceding subparagraph (A), by inserting "and every divorced husband (as defined in section 216(d))" before "of an individual" and by inserting "or such divorced husband" after "if such husband". (2) Section 202(c)(1) of such Act is further amended— (A) by striking out "and" at the end of subparagraph (B); (B) by redesignating subparagraph (C) as subparagraph (D), and by inserting after subparagraph (B) the following new subparagraph: "(C) in the case of a divorced husband, is not married, and"; and (C) by striking out the matter following subparagraph (D) (as so redesignated) and inserting in lieu thereof the following: "shall be entitled to a husband's insurance benefit for each month, beginning with— "(i) in the case of a husband or divorced husband (as so defined) of an individual who is entitled to an old-age insurance benefit, if such husband or divorced husband has attained age 65, the first month in which he meets the criteria specified in subparagraphs (A), (B), (C), and (D), or "(ii) in the case of a husband or divorced husband (as so defined) of— "(I) an individual entitled to old-age insurance benefits, if such husband or divorced husband has not attained age 65, or

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