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Page:United States Statutes at Large Volume 91.djvu/1541

 PUBLIC LAW 95-215—DEC. 19, 1977 year of study in a course of study or program described in subsection (b)(1)(B) in such school year; "(B) for the school year beginning in calendar year 1979, by individuals who are entering their first or second year of study in a course of study or program described in subsection (b)(1)(B) in such school year; and "(C) for each school year thereafter, by individuals who are entering their first year of study in a course of study or program described in subsection (b)(1)(B) in such school year.". SEC. 6. (a)(1) Section 1515(b)(2) of the Public Health Service Act is amended (1) by striking out "which may not" and inserting in lieu thereof "which, except as otherwise provided in this paragraph, may not", and (2) by adding after the first sentence the following: "The Secretary may, upon application of a conditionally designated entity, extend for an additional period of not to exceed 12 months the period of such entity's conditional designation if the Secretary determines that (A) unusual circumstances exist or existed which prevent such entity from qualifying for designation under subsection (c) within 24 months of such entity's conditional designation under this subsection, (B) such extension should enable such entity to qualify for designation under subsection (c), and (C) such extension is necessary to carry out the purposes of this title. Each such determination shall be in writing: and shall include a summary of the reasons for it.". (2) The second sentence of section 1516(a) of such Act is amended by inserting before the period at the end a comma and the following: "except that in the case of a grant made to a conditionally designated entity with which the Secretary will not enter into a designation agreement under section 1515(c), such grant shall be available for obligation for such additional period as the Secretary determines such entity will require to satisfactorily terminate its activities under the agreement for its conditional designation". (b) Section 1521(b)(2)(B) of the Public Health Service Act is amended by striking out "twenty-four months" and inserting in lieu thereof "thirty-six months". SEC. 7. The Secretary of Health, Education, and Welfare shall conduct a study to determine whether schools of medicine, nursing, or osteopathy deny admission or otherwise discriminate against any applicant to such schools because of the applicant's reluctance, or willingness, to counsel, suggest, recommend, assist, or in any way participate in the performance of abortions or sterilizations contrary to his or her religious beliefs or moral convictions. Not later than February 1, 1978, the Secretary shall complete such study and report his findings and recommendations to the Committee on Interstate and Foreign Commerce of the House of Representatives and the Committee on Human Resources of the Senate. SEC. 8. (a) Section 1121(b)(5) of the Public Health Service Act is amended by inserting "fiscal year" before "ending September 30, 1977". (b) Section 206(b)(6) of the Public Health Service Act is amended by striking out "senior" and inserting in lieu thereof "junior". (c) Section 772(b) of the Public Health Service Act is amended by striking out "section 778" and inserting in lieu thereof "section 788''.

91 STAT. 1507

Health systems agencies, conditional
 * nation.

42 USC 300/-4.

Planning grants, availability. 42 USC 300/-5. 42 USC 300/-4.

42 USC 300m. Study. 42 USC 300 note.

Report to congressional committees.

42USe300c-ll,. 42 USC 207. 42 USC 295f-2.

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 91 STAT. 1508 Saint Elizabeths Hospital, excess nv sunent

PUBLIC LAW 95-215—DEC. 19, 1977 SEC. 9. Section 4839 of the Revised Statutes (24 U.S.C. 165) is amended by inserting after the fourth sentence the following: "With may invest funds of the account in excess of current needs in interestbearing obligations of the United States with maturities suitable for the needs of the account, and any interest on such investment shall be credited to and form a part of the account.". Approved December 19, 1977.
 * ^® approval of the Secretary of the Treasury, the disbursing agent

_-

LEGISLATIVE HISTORY: HOUSE REPORTS: No. 95-707 (Comm. on Interstate and Foreign Commerce) and No. 95-828 (Comm. of Conference). SENATE REPORTS: No. 95-545 accompanying S. 2159 (Comm. on Human Resources) and No. 95-608 (Comm. of Conference). CONGRESSIONAL RECORD, Vol. 123 (1977): Oct. 17, considered and passed House. Nov. 4, considered and passed Senate, amended, in lieu of S. 2159. Dec. 1, Senate agreed to conference report. Dec. 7, House agreed to conference report.

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Page:United States Statutes at Large Volume 91.djvu/1543

 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1509

Public Law 95-216 95th Congress An Act To amend the Social Security Act and the Internal Revenue Code of 1954 to strengthen the financing of the social security system, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That t h i s Act, w i t h the following t a b l e of c o n t e n t s, may b e c i t e d a s the " S o c i a l S e c u r i t y Amendments of 1977 ". TABLE OF CONTENTS TITLE I—PROVISIONS RELATING TO THE FINANCING OF THE OLDAGE, SURVIVORS, AND DISABILITY INSURANCE PROGRAM Sec. 101. Adjustments in tax rates. Sec. 102. Allocations to disability insurance trust fund. Sec. 103. Increases in earnings base. Sec. 104. Effective date. TITLE II—STABILIZATION OF REPLACEMENT RATES IN THE OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE PROGRAM Sec. Sec. Sec. Sec.

201. 202. 203. 204.

Computation of primary insurance amount. Maximum benefits. Increase in old-age benefit amounts for delayed retirement. Widow's and widower's insurance benefits in cases of delayed retirement. Sec. 205. Conforming amendments. Sec. 206. Effective date. TITLE III—OTHER CHANGES IN PROVISIONS RELATING TO THE OLDAGE, SURVIVORS, AND DISABILITY INSURANCE PROGRAM PART A—CHANGES IN EARNINGS T E S T

^

Sec. 301. Liberalization of earnings test for individuals age 65 and over. Sec. 302. Repeal of earnings limitation for individuals age 70 and over. Sec. 303. Elimination of monthly earnings test. PART B—COVERAGE

Sec. 311. Study of universal coverage. Sec. 312. Coverage of nonprofit organizations which failed to file waiver certificates. Sec. 313. Exclusion from coverage of certain limited partnership income. Sec. 314. Employees of members of related groups of corporations. Sec. 315. Tax on employers of individuals who receive income from tips. Sec. 316. Revocation of exemption from coverage by clergymen. Sec. 317. International agreements with respect to social security benefits. Sec. 318. Modification of agreement with Illinois to provide coverage for certain policemen and firemen. Sec. 319. Coverage for policemen and firemen in Mississippi. Sec. 320. Coverage under divided retirement system for public employees in New Jersey. Sec. 321. Coverage of service under Wisconsin retirement system. PART C — B E N E F I T AMOUNTS AND ELIGIBILITY

Sec. 331. Actuarial reduction of benefit increases to be applied as of time of original entitlement. Sec. 332. Limitation on retroactive benefits. Sec. 333. Delivery of benefit checks. Sec. 334. Reduced benefits for spouses receiving Government pensions.

Dec. 20, 197 7_ [H.R. 9346]

Social Security Amendments of l o Trir i ^n^ ^^ ^ ^ ^ ^"^"^ note.

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Page:United States Statutes at Large Volume 91.djvu/1544

 91 STAT. 1510

PUBLIC LAW 95-216—DEC. 20, 1977 TABLE OF CONTENTS—Continued

PART C — B E N E F I T AMOUNTS AND BLIGIBILITT—Continued

Sec. 335. Substantial gainful activity in case of blind individuals. Sec. 336. Remarriage of widows and widowers. Sec. 337. Duration-of-marriage requirement. PART D — S T U D Y W I T H RESPECT TO GENDER-BASED DISTINCTIONS

Sec. 341. Study of proposals to eliminate dependency and sex discrimination under the social security program. PART B—COMBINED SOCIAL SECURITY AND INCOME T A X ANNUAL REPORTING

Subpart 1—Amendments to Title II of the Social Security Act Sec. 351. Annual crediting of quarters of coverage. Sec. 352. Adjustment in amount required for a quarter of coverage. Sec. 353. Technical and conforming amendments. Subpart 2—Amendments to the Internal Revenue Code of 1954 Sec. 355. Deduction of tax from wages. Sec. 356. Technical and conforming amendments. Subpart 3—Conforming Amendment to the Railroad Retirement Act of 1974 Sec. 358. Computation of employee annuities. PART F—^NATIONAL COMMISSION ON SOCIAL SECURITY

Sec. 361. Establishment of Commission. PART G—MISCELLANEOUS PROVISIONS

Sec. 371. Appointment of hearing examiners. Sec. 372. Report of Advisory Council on Social Security. TITLE IV—PROVISIONS RELATING TO CERTAIN STATE WELFARE AND SERVICE PROGRAMS RECEIVING FEDERAL FINANCIAL ASSISTANCE Sec. 401. Fiscal relief for States and political subdivisions with respect to costs of welfare programs. Sec. 402. Incentive adjustments for quality control in Federal financial participation in aid to families with dependent children programs. Sec. 403. Access to wage information. Sec. 404. State demonstration projects. Sec. 405. Reimbursement for erroneous State supplementary payments. TITLE V—MISCELLANEOUS Sec. 501. Coverage under medicare of certain power-operated wheelchairs. Sec. 502. Federal Election Campaign Act amendments.

TITLE I—PROVISIONS RELATING TO THE FINANCING OF THE OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE PROGRAM ADJUSTMENTS I N TAX RATES

26 USC 3101.

SEC. 101. (a)(1) Section 3101(a) of the I n t e r n a l Revenue Code of 1954 ( r e l a t i n g to r a t e of tax on employees for purposes of old-age, survivors, and disability insurance) is amended by striking out paragraph s (1) and (2) and inserting in lieu thereof the following: " (1) w i t h respect to wages received during the calendar years 1974 through 1977, the r a t e shall be 4.95 p e r c e n t; " (2) w i t h respect to wages received during the calendar year 1978, the r a t e shall be 5.05 p e r c e n t; " (3) w i t h respect to wages received during the calendar year s 1979 and 1980, the r a t e shall be 5.08 p e r c e n t; " (4) w i t h respect to wages received during the calendar year 1981, the r a t e shall be 5.35 p e r c e n t;

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 PUBLIC LAW 95-216—DEC. 20, 1977 "(5) with respect to wages received during the calendar years 1982 through 1984, the rate shall be 5.40 percent; "(6) with respect to wages received during the calendar years 1985 through 1989, the rate shall be 5.70 percent; and "(7) with respect to wages received ^fter December 31, 1989, the rate shall be 6.20 percent.". (2) Section 3111(a) of such Code (relating to rate of tax on employers for purposes of old-age, survivors, and disability insurance) is amended by striking out paragraphs (1) and (2) and inserting in lieu thereof the following: "(1) with respect to wages paid during the calendar years 1974 through 1977, the rate shall be 4.95 percent; "(2) with respect to wages paid during the calendar year 1978, the rate shall be 5.05 percent; "(3) with respect to wages paid during the calendar years 1979 and 1980, the rate shall be 5.08 percent; "(4) with respect to wages paid during the calendar year 1981, the rate shall be 5.35 percent; "(5) with respect to wages paid during the calendar years 1982 through 1984, the rate shall be 5.40 percent; "(6) with respect to wages paid during the calendar years 1985 through 1989, the rate shall be 5.70 percent; and "(7) with respect to wages paid after December 31, 1989, the rate shall be 6.20 percent.". (3) Section 1401(a) of such Code (relating to rate of tax on selfemployment income for purposes of old-age, survivors, and disability insurance) is amended by striking out "a tax" and all that follows and inserting in lieu thereof the following: "a tax as follows: "(1) in the case of any taxable year beginning before January 1, 1978, the tax shall be equal to 7.0 percent of the amount of the self-employment income for such taxable year; "(2) in the case of any taxable year beginning after December 31, 1977, and before January 1, 1979, the tax shall be equal to 7.10 percent of the amount of the self-employment income for such taxable year; "(3) in the case of any taxable year beginning after December 31, 1978, and before January 1, 1981, the tax shall be equal to 7.05 percent of the amount of the self-employment income for such taxable ^ear; "(4) m the case of any taxable year beginning after December 31, 1980, and before January 1, 1982, the tax shall be equal to 8.00 percent of the amount of the self-employment income for such taxable year; "(5) in the case of any taxable year beginning after December 31, 1981, and before January 1, 1985, the tax shall be equal to 8.05 percent of the amount of the self-employment income for such taxable year; "(6) in the case of any taxable year beginning after December 31, 1984, and before January 1, 1990, the tax shall be equal to 8.55 percent of the amount of the self-employment income for such taxable year; and "(7) in the case of any taxable year beginning after December 31, 1989, the tax shall be equal to 9.30 percent of the amount of the self-employment income for such taxable year.", (b)(1) Section 3101(b) of such Code (relating to rate of tax on employees for purposes of hospital insurance) is amended by striking

91 STAT. 1511

Post, p. 1537. 26 USC 3111,.

26 USC 1401.

Hospital insurance. 26 USC 3101.

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 91 STAT. 1512

PUBLIC LAW 95-216—DEC. 20, 1977

out paragraphs (1) through (4) and inserting in lieu thereof the following: "(1) with respect to wages received during the calendar years 1974 through 1977, the rate shall be 0.90 percent; " (2) with respect to wages received during the calendar year 1978, the rate shall be 1.00 percent; .^. "(3) with respect to wages received during the calendar years ' 1979 and 1980, the rate shall be 1.05 percent; "(4) with respect to wages received during the calendar years 1981 through 1984, the rate shall be 1.30 percent; "(5) with respect to wages received during the calendar year 1985, the rate shall be 1.35 percent; and "(6) with respect to wages received after December 31, 1985, the rate shall be 1.45 percent.". 26 USC 3111. (2) Section 3111(b) of such Code (relating to rate of tax on employers for purposes of hospital insurance) is amended by striking out paragraphs (1) through (4) and inserting in lieu thereof the following: " (1) with respect to wages paid during the calendar years 1974 through 1977, the rate shall be 0.90 percent; " (2) with respect to wages paid during the calendar year 1978, the rate shall be 1.00 percent; "(3) with respect to wages paid during the calendar years 1979 and 1980, the rate shall be 1.05 percent; " (4) with respect to wages paid during the calendar years 1981 throus^h 1984, the rate shall be 1.30 percent; " (5) with respect to wages paid during the calendar year 1985, the rate shall be 1.35 percent; and "(6) with respect to wages paid after December 31, 1985, the rate shall be 1.45 percent,". 26 USC 1401. (3) Section 1401(b) of such Code (relating to tax on self-employment income for purposes of hospital insurance) is amended by strikina: out paragraphs (1) through (4) and inserting in lieu thereof the following: "(1) in the case of any taxable year beginning after December 31, 1973, and before January 1, 1978, the tax shall be equal to 0.90 percent of the amount of the self-employment income for such taxable year; "(2) in the case of any taxable year beginninflf aft«r December 31, 1977, and before January 1, 1979, the tax shall be equal to 1,00 oercent of the amount of the self-employment income for such taxable year; "(3) in the case of any taxable year beginning after December 31, 1978, and before January 1, 1981, the tax shall be equal to 1.05 percent of the amount of the self-employment income for such taxable year; "(4) in the case of any taxable year beginning after December 31, 1980, and before January 1, 1985, the tax shall be equal to 1.30 percent of the amount of the self-employment income for such taxable year; "(5) in the case of any taxable year beginning after December 31, 1984, and before January 1, 1986, the tax shall be equal to 1.35 percent of the amount of the self-employment income for such taxable year; and "(6) in the case of any taxable year beginning after December 31, 1985, the tax shall be equal to 1.45 percent of the amount of the self-employment income for such taxable year.".

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Page:United States Statutes at Large Volume 91.djvu/1547

 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1513

ALLOCATIONS TO DISABILITY INSURANCE TRUST F U N D

SEC. 102. (a)(1) Section 201(b)(1) of the Social Security Act is 42 USC 401. amended by striking out clauses (G) through (J) and inserting in lieu thereof the following: "(G) 1.55 per centum of the wages (as so defined) paid after December 31, 1977, and before January 1, 1979, and so reported, (H) 1.50 per centum of the wages (as so defined) paid after December 31, 1978, and before January 1, 1981, and so reported, (I) 1.65 per centum of the wages (as so defined) paid after December 31, 1980, and before January 1, 1985, and so reported, (J) 1.90 per centum of the wages (as so defined) paid after December 31, 1984, and before January 1, 1990, and so reported, and (K) 2.20 per centum of the wages (as so defined) paid after December 31, 1989, and so reported,". (2) Section 201(b)(2) of such Act is amended by striking out clauses (G) through (J) and inserting in lieu thereof the following: "(G) 1.090 per centum of the amount of self-employment income (as so defined) so reported for any taxable year begiiming after December 31, 1977, and before January 1, 1979, (H) 1.0400 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1978, and before January 1, 1981, (I) 1, 2375 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1980, and before January 1, 1985, (J) 1.4250 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1984, and before January 1, 1990, and (K) 1.650 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1989,". INCREASES I N EARNINGS BASE

SEC. 103. (a)(1) Section 230(a) of the Social Security Act is 42 USC 430. amended by inserting "or (c)" after "determined under subsection in the ''shall (b)
 * 2)

Section 230(b) of such Act is amended by striking out "shall be" matter preceding paragraph (1) and inserting m lieu thereof (subject to subsection (c)) be". Section 230(c) of such Act is amended— (1) by inserting " (1) " immediately before "the 'contribution and benefit base' "; and (2) by striking out "section." and inserting in lieu thereof the following: "section, and (2) the 'contribution and benefit base' with respect to remuneration paid (and taxable years beginning)— " (A) in 1978 shall be $17,700, "(B) in 1979 shall be $22,900, "(C) in 1980 shall be $25,900, and "(D) in 1981 shall be $29,700. For purposes of determining under subsection (b) the 'contribution and benefit base' with respect to remuneration paid (and taxable years beginning) in 1982 and subsequent years, the dollar amounts specified in clause (2) of the preceding sentence shall be considered to have resulted from the application of such subsection (b) and to be the amount determined (with respect to the years involved) under that subsection. For purposes of determining employer tax liability under section 3221(a) of the Internal Revenue Code of 1954, for purposes of

Infra. Contribution and benefit base,

26 USC 3221.

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Page:United States Statutes at Large Volume 91.djvu/1548

 91 STAT. 1514

PUBLIC LAW 95-216—DEC. 20, 1977

determining the portion of the employee representative tax liability 26 USC 3211. under section 3211(a) of such Code which results from the application of the 9.5 percent rate specified therein, and for purposes of computing average monthly compensation undei; section 3(j) of the 4'5 USC 231b. Kailroad Eetirement xict of 1974, except with respect to annuity amounts determined under section 3(a) or (3)(f)(3) of such Act, clause (2) and the preceding sentence of this subsection shall be disregarded.". 42 USC 430. (c)(1) Section 230 of such Act is further amended by adding at the end thereof the following new subsection: "(d) Notwithstanding any other provision of law, the contribution and benefit base determined under this section for any calendar year after 1976 for purposes of section 4022(b)(3)(B) of Public Law 29 USC 1322. 93-406, with respect to any plan, shall be the contribution and benefit base that would have been determined for such year if this section as in effect immediately prior to the enactment of the Social Security Amendments of 1977 had remained in effect without change.". Effective date. (2) The amendment made by paragraph (1) shall apply with 42 USC 430 note, respect to plan terminations occurring after the date of the enactment of this Act. (d)(1) The second sentence of section 215(i)(2)(D)(v) of such 42 USC 415. Act is amended by striking out "is equal to one-twelfth of the new contribution and benefit base" and inserting in lieu thereof "is equal to, or exceeds by less than $5, one-twelfth of the new contribution and benefit base". (2) The third sentence of section 215(i)(2)(D)(v) of such Act is amended by striking out all that follows "clause (iv)" and inserting in lieu thereof "plus 20 percent of the excess of the second figure in the last line of column III as extended under the preceding sentence over such second figure for the calendar year in which the table of benefits is revised.". EFFECTIVE DATE

26 USC 1401 "''*^-

SEC. 104. The amendments made by this title shall apply with respect to remuneration paid or received, and taxable years beginning, after 1977. TITLE II—STABILIZATION OF KEPLACEMENT RATES I N THE OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE PROGRAM COMPUTATION OF PRIMARY INSURANCE A M O U N T

42 USC 415.

S E C 201. (a) Section 215(a) of the Social Security Act is amended to read as follows: "(a)(1)(A) The primary insurance amount of an individual shall (except as otherwise provided in this section) be equal to the sum of— "(i) 90 percent of the individual's average indexed monthly earnings (determined under subsection (b)) to the extent that such earnings do not exceed the amount established for purposes of this clause by subparagraph (B), "(ii) 32 percent of the individual's average indexed monthly earnings to the extent that such earnings exceed the amount established for purposes of clause (i) but do not exceed the amount established for purposes of this clause by subparagraph (B), and

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Page:United States Statutes at Large Volume 91.djvu/1549

 PUBLIC LAW 95-216—DEC. 20, 1977 "(iii) 15 percent of the individual's average indexed monthly earnings to the extent that such earnings exceed the amount established for purposes of clause (ii), rounded in accordance with subsection (g), and thereafter increased as provided in subsection (i). "(B)(i) For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming eligible of such benefits), in the calendar year 1979, the amount established for purposes of clause (i) and (ii) of subparagraph (A) shall be $180 and $1,085, respectively. "(ii) For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming eligible for such benefits), in any calendar year after 1979, each of the amounts so established shall equal the product of the corresponding amount established with respect to the calendar year 1979 under clause (i) of this subparagraph and the quotient obtained by dividing— " (I) the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 209(a)) reported to the Secretary of the Treasury or his delegate for the second calendar year preceding the calendar year for which the determination is made, by " ( II) the average of the total wages (as so defined and computed) reported to the Secretary of the Treasury or his delegate for the calendar year 1977. "(iii) Each amount established under clause (ii) for any calendar year shall be rounded to the nearest $1, except that any amounts so established which is a multiple of $0.50 but not of $1 shall be rounded to the next higher $1. "(C)(i) No primary insurance amount computed under subparagraph (A) may be less than— " (I) the dollar amount set forth on the first line of column IV in the table of benefits contained in (or deemed to be contained in) this subsection as in effect in December 1978, rounded (if not a multiple of $1) to the next higher multiple of $1, or " ( II) an amount equal to $11.50 multiplied by the individual's years of coverage in excess of 10, or the increased amount determined for purposes of this subdivision under subsection (i), whichever is greater. No increase under subsection (i), except as provided in subsection (i)(2)(A), shall apply to the dollar amount specified in subdivision (I) of this clause. "(ii) For purposes of clause (i) ( II), the term 'years of coverage' with respect to any individual means the number (not exceeding 30) equal to the sum of (I) the number (not exceeding 14 and disregarding any fraction) determined by dividing (a) the total of the wages credited to such individual (mcludin^ wages deemed to be paid prior to 1951 to such individual under section 217, compensation under the Railroad Retirement Act of 1937 prior to 1951 which is creditable to such individual pursuant to this title, and wages deemed to be paid prior to 1951 to such individual under section 231) for years after 1936 and before 1951 by (b) $900, plus (II) the number equal to the number of years after 1950 each of which is a computation base year (within the meaning of subsection (b)(2)(B) (ii)) and in each of which he is credited with wages (including wages deemed to be paid to such individual under section 217, compensation under the Railroad Retirement Act of 1937 or 1974 which is creditable to such individual pursuant to this title, and wages deemed to be paid to such individual under section 229) and self-employment income of not less than 25

91 STAT. 1515

42 USC 409.

"Years of coverage."

Post, p. 1529. 45 USC 228a. 42 USC 431.

45 USC 228a, 231. Post, p. 1554.

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Page:United States Statutes at Large Volume 91.djvu/1550

 91 STAT. 1516

Ante, p. 1513, Post, p. 1554. Publication in Federal Register.

Publication in Federal Register.

PUBLIC LAW 95-216—DEC. 20, 1977 percent of the maximum amount which, pursuant to subsection (e), may be counted for such year, or of not less than 25 percent of the maximum amount which could be so counted for such year (in the case of a year after 1977) if section 230 as in effect immediately prior to the enactment of the Social Security Amendments of 1977 had remained in effect without change. "(D) In each calendar year after 1978 the Secretary shall publish in the Federal Register, on or before November 1, the formula for computing benefits under this paragraph and for adjusting wages and self-employment income under subsection (b)(8) in the case of an individual who becomes eligible for an old-age insurance benefit, or (if earlier) becomes eligible for a disability insurance benefit or dies, in the following year, and the average of the total wages (as described in subparagraph (B) (ii)(I)) on which that formula is based. With the initial publication required by this subparagraph, the Secretary shall also publish in the Federal Register the average of the total wages (as so described) for each calendar year after 1950. "(2)(A) A year shall not be counted as the year of an individual's death or eligibility for purposes of this subsection or subsection (i) in any case where such individual was entitled to a disability insurance benefit for any of the 12 months immediately preceding the month of such death or eligibility (but there shall be counted instead the year of the individual's eligibility for the disability insurance benefit or benefits to which he was entitled during such 12 months). "(B) In the case of an individual who was entitled to a disability insurance benefit for any of the 12 months before the month in which he became entitled to an old-age insurance benefit, became reentitled to a disability insurance benefit, or died, the primary insurance amount for determining any benefit attributable to that entitlement, rentitlement, or death is the greater of— "(i) the primary insurance amount upon which such disability insurance benefit was based, increased by the amount of each general benefit increase (as defined in subsection (i)(3)), and each increase provided under subsection (i)(2), that would have applied to such primary insurance amount had the individual remained entitled to such disability insurance benefit until the month in which he became so entitled or reentitled or died, or "(ii) the amount computed under paragraph (1)(C). "(C) In the case of an individual who was entitled to a disability insurance benefit for any month, and with respect to whom a primary insurance amount is required to be computed at any time after the close of the period of the individual's disability (whether because of such individual's subsequent entitlement to old-age insurance benefits or to a disability insurance benefit based upon a subsequent period of disability, or because of such individual's death), the primary insurance amount so computed may in no case be less than the primary insurance amount with respect to which such former disability insurance benefit was most recently determined. "(8)(A) Paragraph (1) applies only to an individual who was not eligible for an old-age insurance benefit prior to January 1979 and who in that or any succeeding month— " (i) becomes eligible for such a benefit, "(ii) becomes eligible for a disability insurance benefit, or "(iii) dies, and (except for subparagraph (C)(i) ( II) thereof) it applies to every such individual except to the extent otherwise provided by paragraph (4).

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 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1517

"(B) For purposes of this title, an individual is deemed to be Eligibility, eligible— "(i) for old-age insurance benefits, for months beginning with the month in which he attains age 62, or "(ii) for disability insurance benefits, for months beginning with the month in which his period of disability began as provided under section 216(i)(2)(C), 42 USC 416. except as provided in paragraph (2)(A) in cases where fewer than 12 months have elapsed since the termination of a prior period of disability. "(4) Paragraph (1) (except for subparagraph (C)(i) (II) thereof) Limitations. does not apply to the computation or recomputation of a primary insurance amount for— "(A) an individual who was eligible for a disability insurance benefit for a month prior to January 1979 unless, prior to the month in which occurs the event described in clause (i), (ii), or (iii) of paragraph (3)(A), there occurs a period of at least 12 consecutive months for which he was not entitled to a disability insurance benefit, or "(B) an individual who had wages or self-employment income credited for one or more years prior to 1979, and who was not eligible; for an old-age or disability insurance benefit, and did not die, prior to January 1979, if in the year for which the computation or recommendation would be made the individual's primary insurance amount would be greater if computed or recomputed— "(i) tinder section 215(a) as in effect in December 1978, for purposes of old-age insurance benefits in the case of an individual who becomes eligible for such benefits prior to 1984, or " (ii) as provided by section 215(d), in the case of an individual Post, pp. 1519. 1520. to whom such section applies. In determining whether an individual's primary insurance amount would be greater if computed or recomputed as provided in subparagraph (B), (I) the table of benefits in effect in December 1978 shall be applied without regard to any increases in that table which may' become effective (in accordance with subsection (i)(4)) for years after 1978 (subject to clause (iii) of subsection (i)(2)(A) but without regard to clauses (iv) and (v) thereof) and ( II) such individual's average monthly wage shall be computed as provided by subsection (b)(4). "(5) For purposes of computinsr the primary insurance amount (after December 1978) of an individual to whom paragraph (1) does not applv (other than an individual described in paragraph (4)(B)), this section as in effect in December 1978 shall remain in effect, except that, effective for January 1979, the dollar amount specified in paragraph (3) of subsection (a) shall be increased to $11.50, The table for determining primary insurance amounts and maximum family benefits contained in this section in December 1978 shall be revised as provided by subsection (i) for each year after 1978.". (b) Section 215(b) of such Act is amended to read as follows: 42 USC 415. "Average Indexed Monthly Earnings; Average Monthly "Wage "(b)(1) An individual's average indexed monthly earnings shall be equal to the ouotient obtained by dividing— "(A) the total (after adjustment under paragraph (3)) of his wages paid in and self-employment income credited to his benefit computation years (determined under paragraph (2)), by " (B) the number of months in those years.

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Page:United States Statutes at Large Volume 91.djvu/1552

 91 STAT. 1518

PUBLIC LAW 95-216—DEC. 20, 1977

"(2)(A) The number of an individual's benefit computation years equals the number of elapsed years, reduced by five, except that the number of an individual's benefit computation years may not be less than two. Definitions. "(B) For purposes of this subsection with respect to any individual— " (i) the term 'benefit computation years' means those computation base years, equal in number to the number determined under subparagraph (A), for which the total of such individual's wages and self-employment income, after adjustment under paragraph (3), is the largest; "(ii) the term 'computation base years' means the calendar years after 1950 and before— " (I) in the case of an individual entitled to old-age insurance benefits, the year in which occurred (whether by reason Post, p. 1542. of section 202(j)(1) or otherwise) the first month of that entitlement; or " ( II) in the case of an individual who has died (without having become entitled to old-age insurance benefits), the year succeeding the year of his death; except that such term excludes any calendar year entirely included in a period of disability; and "(iii) the term 'number of elapsed years' means (except as otherwise provided by section 104(j)(2) of the Social Security 42 USC 414 note. Amendments of 1972) the number of calendar years after 1950 (or, if later, the year in which the individual attained age 21) and before the year in which the individual died, or, if it occurred earlier (but after 1960), the year in which he attained age 62; except that such term excludes any calendar year any part of which is included in a period of disability. " (3)(A) Except as provided by subparagraph (B), the wages paid in and self-employment income credited to each of an individual's computation base years for purposes of the selection therefrom of benefit computation years under paragraph (2) shall be deemed to be equal to the product of— " (i) the wages and self-employment income paid in or credited to such year (as determined without regard to this subparagraph), and " (ii) the quotient obtained by dividing— " (I) the average of the total wages (as defined in regulations of the Secretary and computed without regard to the 42 USC 409. limitations specified in section 209(a)) reported to the Secretary of the Treasury or his delegate for the second calendar year (after 1976) preceding the earliest of the year of the individual's death, eligibility for an old-age insurance benefit, or eligibility for a disability insurance benefit (except that the year in which the individual dies, or becomes eligible, shall not be considered as such year if the individual was entitled to disability insurance benefits for any month in the 12-month period immediately preceding such death or eligibility, but there shall be counted instead the year of the individual's eligibility for the disability insurance benefit to which he was entitled in such 12-month period), by " ( II) the average of the total wages (as so defined and computed) reported to the Secretary of the Treasury or his

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Page:United States Statutes at Large Volume 91.djvu/1553

 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1519

delegate for the computation base year for which the determination is made. " (B) Wages paid in or self-employment income credited to an individual's computation base year which— " (i) occurs after the second calendar year specified in subparagraph (A)(ii)(I), or "(ii) is a year treated under subsection (f)(2)(C) as though it were the last year of the period specified in paragraph (2) (B)(ii), shall be available for use in determining an individual's benefit computation years, but without applying subparagraph (A) of this paragraph. " (4) For purposes of determining the average monthly wage of an individual whose primary insurance amount is computed (after 1978) under section 215(a) or 215(d) as in eifect (except with respect to the Ante, p. 1514, table contained therein) in December 1978, by reason of subsection (a) Post, p. 1520. (4)(B), this subsection as in effect in December 1978 shall remain in effect, except that paragraph (2)(C) (as then in effect) shall be deemed to provide that 'computation base years' include only calendar years in the period after 1950 (or 1936, if applicable) and prior to the year in which occurred the first month for which the individual was eligible (as defined in subsection (a)(3)(B) as in effect in January 1979) for an old-age or disability insurance benefit, or, if earlier, the year in which he died. Any calendar year all of which is included in a period of disability shall not be included as a computation base year for such purposes.". 42 USC 415. (c) Section 215(c) of such Act is amended to read as follows: "Application of Prior Provisions in Certain Cases "(c) This subsection as in effect in December 1978 shall remain in effect with respect to an individual to whom subsection (a)(1) does not apply by reason of the individual's eligibility for an old-age or disability insurance benefit, or the individual's death, prior to 1979.". (d)(1) The matter in the text of section 215(d) of such Act which Primary insurance benefit, precedes paragraph (1)(C) is amended to read as follows: "(d)(1) For purposes of column I of the table appearing in sub- computation. section (a), as that subsection was in effect in December 1977, an individual's primary insurance benefit shall be computed as follows: "(A) The individual's average monthly wage shall be determined as provided in subsection (b), as in effect in December 1977 (but without regard to paragraph (4) thereof), except that for purposes of paragraphs (2)(C) and (3) of that subsection (as so in effect) 1936 shall be used instead of 1950. "(B) For purposes of subparagraphs (B) and (C) of subsection (b)(2) (as so in effect)— "(i) the total wages prior to 1951 (as defined in subparagraph (C) of this paragraph) of an individual who attained age 21 after 1936 and prior to 1950 shall be divided by the number of years (hereinafter in this subparagraph referred to as the 'divisor') elapsing after the year in which the individual attained age 20 and prior to 1951; and "(ii) the total wages prior to 1951 (as defined in subparagraph (C) of this paragraph) of an individual who attained age 21 after 1949 shall be divided by the number of years (hereinafter in this subparagraph referred to as the 'divisor') elapsing after 1949 and prior to 1951.

29-194

0 - 8 0

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Page:United States Statutes at Large Volume 91.djvu/1554

 91 STAT. 1520

42 USC 415.

42 USC 420.

42 USC 415.

Recomputation.

PUBLIC LAW 95-216—DEC. 20, 1977 The quotient so obtained shall be deemed to be the individual's wages credited to each of the years which were used in computing the amount of the divisor, except that— "(iii) if the quotient exceeds $3,000, only $3,000 shall be deemed to be the individual's wages for each of the years which were used in computing the amount of the divisor, and the remainder of the individual's total wages prior to 1951 (I) if less than $3,000, shall be deemed credited to the year immediately preceding the earliest year used in computing the amount of the divisor, or (II) if $3,000 or more, shall be deemed credited, in $3,000 increments, to the year immediately preceding the earliest year used in computing the amount of the divisor and to each year consecutively preceding that year, with any remainder less than $3,000 being credited to the year immediately preceding the earliest year to which a full $3,000 increment was credited; and "(iv) no more than $42,000 may be taken into account, for purposes of this subparagraph, as total wages after 1936 and prior to 1951.". (2) Section 215(d)(1)(D) of such Act is amended to read as follows: "(D) The individual's primary insurance benefit shall be 40 percent of the first $50 of his average monthly wage as computed under this subsection, plus 10 percent of the next $200 of his average monthly wage, increased by 1 percent for each increment year. The number of increment years is the number, not more than 14 nor less than 4, that is equal to the individual's total wages prior to 1951 divided by $1,650 (disregarding any fraction).". (3) Section 215(d)(3) of such Act is amended (A) by striking out "in the case of an individual" and all that follows and inserting in lieu thereof the following "in the case of an individual who had a period of disability which began prior to 1951, but only if the primary insurance amount resulting therefrom is higher than the primary insurance amount resulting from the application of this section (as amended by the Social Security Amendments of 1967) and section 220.". (4) Section 215(d) of such Act is further amended by adding at the end thereof the following new paragraph: "(4) The provisions of this subsection as in effect in December 1977 shall be applicable to individuals who become eligible for old-age or disability insurance benefits or die prior to 1978.". (e) Section 215(e) of such Act is amended—• (1) by striking out "average monthly wage" each place it appears and inserting in lieu thereof "average indexed monthly earnings or, in the case of an individual whose primary insurance amount is computed under section 215(a) as in effect prior to January 1979, average monthly wage," and (2) by inserting immediately before "of (A) " in paragraph (1) the following: "(before the application, in the case of average indexed monthly earnings, of subsection (b)(3)(A)) ". (f)(1) Section 215(f)(2) of this Act is amended to read as follows: "(2)(A) If an individual has wages or self-employment income for a year after 1978 for any part of which he is entitled to old-age or disability insurance benefits, the Secretary shall, at such time or times and within such period as he may by regulation prescribe, recompute the individual's primary insurance account for that year.

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Page:United States Statutes at Large Volume 91.djvu/1555

 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1521

(B) For the purpose of applying subparagraph (A) of subsection (a)(1) to the average indexed monthly earnings of an individual to whom that subsection applies and who receives a recomputation under this paragraph, there shall be used, in lieu of the amounts established by subsection (a)(1)(B) for purposes of clauses (i) and (ii) of subsection (a)(1)(A), the amounts so established that were (or, in the case of an individual described in subsection (a)(4)(B), would have been) used in the computation of such individual's primary insurance amount prior to the application of this subsection. "(C) A recomputation of any individual's primary insurance amount under this paragraph shall be made as provided in subsection (a)(1) as though the year with respect to which it is made is the last year of the period specified in subsection (b)(2)(B) ( i i); and subsection (b)(3)(A) shall apply with respect to any such recomputation as it applied in the computation of such individual's primary insurance amount prior to the application of this subsection. " (D) A recomputation under this paragraph with respect to any year shall be effective— "(i) in the case of an individual who did not die in that year, for monthly benefits beginning with benefits for January of the following year; or "(ii) in the case of an individual who died in that year, for monthly benefits beginning with benefits for the month in which he died.". (2) Section 215(f)(3) of such Act is repealed. Repeal. (3) Section 215(f)(4) of such Act is amended to read as follows: 42 USC 415. " (4) A recomputation shall be effective under this subsection only if it increases the primary insurance amount by at least $1.". (4) Section 215(f) of such Act is further amended by adding at the end thereof the following new p a r a ^ a p h s: "(7) This subsection as in effect m December 1978 shall continue to apply to the recomputation of a primary insurance amount computed under subsection (a) or (d) as in effect (without regard to the table in subsection (a)) in that month, and, where appropriate, under subsection (d) as in effect in December 1977. For purposes of recomputing a primary insurance amount determined under subsection (a) or (d) (as so in effect) in the case of an individual to whom those subsections apply by reason of subsection (a)(4)(B) as in effect after December 1978, no remuneration shall be taken into account for the year in which the individual initially became eligible for an old-age or disability insurance benefit or died, or for any year thereafter. "C8) The Secretary shall recompute the primary insurance amounts applicable to beneficiaries whose benefits are based on a primary insurance amount which was computed under subsection (a)(3) effective prior to January 1979, or would have been so computed if the dollar amount specified therein were $11.50. Such recomputation shall be effective January 1979, and shall include the effect of the increase in the dollar amount provided by subsection (a)(1)(C)(i) ( II). Such primary insurance amount shall be deemed to be provided under such section for purposes of subsection (i).". (g)(1) Section 215(i)(2)(A) (ii) of such Act is amended to read as Cost-of-living follows:

computation

"(ii) If the Secretary determines that the base quarter in any year quarter, is a cost-of-living computation quarter, he shall, effective with the month of June of that year as provided in subparagraph (B), increase—

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Page:United States Statutes at Large Volume 91.djvu/1556

 91 STAT. 1522

PUBLIC LAW 95-216—DEC. 20, 1977

" (I) the benefit amount to which individuals are entitled for 42 USC 427, that month under section 227 or 228, 4'28. " ( II) the primary insurance amount of each other individual on which benefit entitlement is based under this title (including a primary insurance amount determined under subsection (a) (l) ( C H i)(I), but subject to the provisions of such subsection (a) (l)(C)(i) and clauses (iv) and (v) of this subparagraph), and " ( III) the amount of total monthly benefits based on any priPost, p. 1524. mary insurance amount which is permitted under section 203 (and such total shall be increased, unless otherwise so increased under another provision of this title, at the same time as such primary insurance amount) or, in the case of a primary insurance amount computed under subsection (a) as in effect (without regard to the table contained therein) prior to January 1979, the amount to which the beneficiaries may be entitled under section 203 as in effect in December 1978, except as provided by section Post, pp. 1526, 203(a)(6) and (7) as in effect after December 1978. 1527, The increase shall be derived by multiplying each of the amounts described in subdivisions (I), ( II), and ( III) (including each of those amounts as previously increased under this subparagraph) by the same percentage (rounded to the nearest one-tenth of 1 percent) as the percentage by which the Consumer Price Index for that cost-ofliving computation quarter exceeds such index for the most recent prior calendar quarter which was a base quarter under paragraph (1)(A) (ii) or, if later, the most recent cost-of-living computation (Quarter under paragraph (1)(B); and any amount so increased that is not a multiple of $0.10 shall be increased to the next higher multiple of $0.10. Any increase under this subsection in a primary insurance amount determined under subparagraph (C)(i) (II) of subsection (a)(1) shall be applied after the initial determination of such primary insurance amount under that subparagraph (with the amount of such increase, in the case of an individual who becomes eligible for old-age or disability insurance benefits or dies in a calendar year after 1979, being determined from the range of possible primary insurance amounts published by the Secretary under the last sentence of subparagraph (D)).". 42 USC 415. (2) Section 215(i)(2)(A) of such Act is amended by adding at the end thereof the following new clauses: "(iii) In the case of an individual who becomes eligible for an oldage or disability insurance benefit, or who dies prior to becoming so eligible, in a year in which there occurs an increase provided under clause (ii), the individual's primary insurance amount (without regard to the time of entitlement to that benefit) shall be increased (unless otherwise so increased under another provision of this title and, with respect to a primary insurance amount determined under subsecAnte, p. 1514. tion (a)(1)(C)(i)(T), subiect to the provisions of subsection (a)(1) (C)(i) and clauses (iv) and (v) of this subparagraph) by the amount of that increase and subsequent applicable increases, but only with respect to benefits payable for months after May of that year. " (iv)(I) In the case of an individual who is entitled to an old-age insurance benefit that is based on a primary insurance amount determined under subsection (a)(1)(C)(i)(I), such primary insurance amount shall not be increased under this subsection for any year before the year in which occurs the first month with respect to which there is payable to such individual all or some part of such benefit after application of the provisions of section 203 relating to deductions on account of work, or, if earlier, the year in which he attains age 65.

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Page:United States Statutes at Large Volume 91.djvu/1557

 PUBLIC LAW 95-216—DEC. 20, 1977 "(II) In the case of an individual who is entitled to an insurance benefit under subsection (e) or (f) of section 202 that is based on a primary insurance amount determined under subsection (a)(1)(C) (i)(I), such primary insurance amount shall not be increased under this subsection for any year (except as provided in subdivision ( III)) before the year in which occurs the first month with respect to which there is payable to such individual all or some part of such benefit after application of the provisions of section 203 relating to deductions on account of work, or, if earlier, the year in which he attains age 65. " ( I l l) Any increase under this subsection which would otherwise be applied to a primary insurance amount except for the provisions of subdivision (IT) of this clause, shall apply to such primary insurance amount if, during any month of the year in which the increase occurs, any individual is entitled to a benefit under subsection (d), (g), or (h) of section 202 based on such primary insurance amount, and such primary insurance amount is based upon the wages and selfemployment income of a deceased individual. " ( IV) No primary insurance amount determined under subsection (a)(1)(C)(i)(I) shall be increased under this subsection for any year during which no individual was entitled to any benefit based thereon under section 202 or 223 for any month of such year. "(V) In any case in which an increase under this subsection which occurs during any year applies to a primary insurance amount determined under subsection (a)(l)(C)(i)(I), and such an increase occurring in a later year does not apply to such primary insurance amount on account of the provisions of this clause, any such increase which occurs in a later year which is applicable to such primary insurance amount shall be based upon such primary insurance amount as previously increased under this subsection. "(v) Notwithstanding clause (iv), no primary insurance amount shall be less than that provided under section 215(a)(1) without regard to subparagraph (C)(i)(I) thereof, as subsequently increased by applicable increases under this section.". (3) Section 215(i)(2)(D) of such Act (as amended by section 103(d) of this Act) is further amended by striking out all that follows the first sentence and inserting in lieu thereof the following: "He shall also publish in the Federal Register at that time (i) a revision of the range of the primary insurance amounts which are possible after the application of this subsection based on the dollar amount specified in subparagraph (C)(i) (II) of subsection (a)(1) (with such revised primary insurance amounts constituting the increased amounts determined for purposes of such subparagraph (C)(i) (II) under this subsection), or specified in subsection (a)(3) as in effect prior to 1979, and (ii) a revision of the range of maximum family benefits which correspond to such primary insurance amounts (with such maximum benefits being effective notwithstanding section 203(a) except for paragraph (3)(B) thereof (or paragraph (2) thereof as in effect prior to 1979)).''. (4) Section 215(i) of such Act is further amended by adding at the end thereof the following new paragraph: "(4) This subsection as in effect in December 1978 shall continue to apply to subsections (a) and (d), as then in effect, for purposes of computing the primary insurance amount of an individual to whom subsection (a), as in effect after December 1978, does not apply (including an individual to whom subsection (a) does not apply in any year by reason of paragraph (4)(B) of that subsection (but the

91 STAT. 1523 42 USC 402. Ante, p. 1514.

Post, p. 1524.

Post, pp. 1544, 1547.

Primary insurance amounts, revision. Ante, p. 1514. Publication in Federal Register.

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Page:United States Statutes at Large Volume 91.djvu/1558

 91 STAT. 1524

Publication in Federal Register.

PUBLIC LAW 95-216—DEC. 20, 1977 application of this subsection in such cases shall be modified by the application of subdivision (I) in the last sentence of paragraph (4) oi that subsection)). For purposes of computing primary insurance amounts and maximum family benefits (other than primary insurance amounts and maximum family benefits for individuals to whom such paragraph (4)(B) applies), the Secretary shall publish in the Federal Register revisions of the table of benefits contained in subsection (a), as m effect in December 1978, as required by paragraph (2)(D) of this subsection as then in effect.". MAXIMUM BENEFITS

42 USC 403.

SEC. 202. The text of section 203(a) of the Social Security Act is amended to read as follows: "(a)(1) In the case of an individual whose primary insurance Ante, p. 1514. amount has been computed or recomputed under section 215(a)(1) Ante, p. 1519. or (4), or section 215(d), as in effect after December 1978, the total monthly benefits to which beneficiaries may be entitled under section Post, pp. 1544, 202 or 223 for a month on the basis of the wages and self-employment 1547. income of such individual shall, except as provided by paragraph (3) (but prior to any increases resulting from the application of paraAnte, p. 1521. graph (2)(A) (ii) ( III) of section 215(i)), be reduced as necessary so as not to exceed— "(A) 150 percent of such individual's primary insurance amount to the extent that it does not exceed the amount established with respect to this subparagraph by paragraph (2), "(B) 272 percent of such individual's primary insurance amount to the extent that it exceeds the amount established with respect to subparagraph (A) but does not exceed the amount established with respect to this subparagraph by paragraph (2), "(C) 134 percent of such individual's primary insurance amount to the extent that it exceeds the amount established with respect to subparagraph (B) but does not exceed the amount established with respect to this subparagraph by paragraph (2), and "(D) 175 percent of such individual's primary insurance amount to the extent that it exceeds the amount established with respect to subparagraph (C). Any such amount that is not a multiple of $0.10 shall be increased to the next higher multiple of $0.10. "(2)(A) For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming so eligible for such benefits), in the calendar year 1979, the amounts established with respect to subparagraphs (A), (B), and (C) of paragraph (1) shall be $230, $332, and $433, respectively. "(B) For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming so eligible for such benefits), in any calendar year after 1979, each of the amounts so established shall equal the product of the corresponding amount established for the calendar year 1979 by subparagraph (A) of this paragraph and the quotient obtained under subparagraph (B) (ii) of Ante, p. 1514. section 215(a)(1), with such product being rounded in the manner prescribed by section 215(a)(1)(B) (iii). Publication in "(C) In each calendar year after 1978 the Secretary shall publish Federal Register, in the Federal Register, on or before November 1, the formula which Ante, p. 1523. (except as provided in section 215(i)(2)(D)) is to be applicable under this paragraph to individuals who become eligible for old-age or dis-

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Page:United States Statutes at Large Volume 91.djvu/1559

 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1525

ability insurance benefits, or who die (before becoming eligible for such benefits), in the following calendar year. " (P) A year shall not be counted as the year of an individual's death or eligibility for purposes of this paragraph or paragraph (7) in any case where such individual was entitled to a disability insurance benefit for any of the 12 months immediately preceding the month of such death or eligibility (but there shall be counted instead the year of the individual's eligibility for the disability insurance benefits to which he was entitled during such 12 months). "(3)(A) When an individual who is entitled to benefits on the basis of the wages and self-employment income of any insured individual and to whom this subsection applies would (but for the provisions of section 202(k)(2)(A)) be entitled to child's insurance benefits for a 42 USC 402. month on the basis of the wages and self-employment income of one or more other insured individuals, the total monthly benefits to which all beneficiaries are entitled on the bases of such wages and selfemployment income shall not be reduced under this subsection to less than the smaller of— "(i) the sum of the maximum amounts of benefits payable on the basis of the wages and self-employment income of all such insured individuals, or "(ii) an amount equal to the product of 1.75 and the primary insurance amount that would be computed under section 215(a) (1) for that month with respect to average indexed monthly Jnte, p. 1514. earnings equal to one-twelfth of the contribution and benefit base determined for that year under section 230. Ante, p. 1513, "(B) When two or more persons were entitled (without the appli- Post, p. 1554. cation of section 202(j)(1) and section 223(b)) to monthly benefits Post, p. 1542. under section 202 or 22«3 for January 1971 or any prior month on the 42 USC 423. basis of the wages and self-employment income of such insured individual and the provisions of this subsection as in effect for any such month were applicable in determining the benefit amount of any persons on the basis of such wages and self-employment income, the total of benefits for any month after January 1971 shall not be reduced to less than the largest of— "(i) the amount determined under this subsection without regard to this subparagraph, "(ii) the largest amount which has been determined for any month under this subsection for persons entitled to monthly ^ benefits on the basis of such insured individual's wages and selfemployment income, or "(iii) if any persons are entitled to benefits on the basis of such wages and self-employment income for the month before the effective month (after September 1972) of a general benefit increase under this title (as defined in section 215(i)(3)) or a benefit 42 USC 415. increase under the provisions of section 215(i), an amount equal Ante, pp. 1514, to the sum of amounts derived by multiplying the benefit amount 1521.
 * determined under this title (excluding any part thereof determined under section 202(w)) for the month before such effective Post, pp. 1527,

month (including this subsection, but without the application of 1529. section 222(b), section 202(q), and subsections (b), (c), and (d) 42 USC 422. of this section), for each such person for such month, by a per- P^^^' P- 1541. centage equal to the percentage of the increase provided under such benefit increase (with any such increased amount which is not a multiple of $0.10 being rounded to the next higher multiple of $0.10);

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Page:United States Statutes at Large Volume 91.djvu/1560

 91 STAT. 1526

42 USC 402.

42 USC 422.

Posf, p. 1541.

Ante, pp. 1514, 1519.

PUBLIC LAW 95-216—DEC. 20, 1977 but in any such case (I) subparagraph (A) of this paragraph shall not be applied to such total of benefits after the application of clause (ii) or (iii), and ( II) if section 202(k)(2)(A) was applicable in the case of any such benefits for a month, and ceases to apply for a month after such month, the provisions of clause (ii) or (iii) shall be applied, for and after the month in which section 202(k)(2)(A) ceases to apply, as though subparagraph (A) of this paragraph had not been applicable to such total of benefits for the last month for which clause (ii) or (iii) was applicable. "(C) When any of such individuals is entitled to monthly benefits as a divorced spouse under section 202(b) or (c) or as a surviving divorced spouse under section 202(e) or (f) for any month, the benefit to which he or she is entitled on the basis of the wages and selfemployment income of such insured individual for such month shall be determined without regard to this subsection, and the benefits of all other individuals who are entitled for such month to monthly benefits under section 202 on the wages and self-employment income of such insured individual shall be determined as if no such divorced spouse or surviving divorced spouse were entitled to benefits for such month. " (4) In any case in which benefits are reduced pursuant to the preceding provisions of this subsection, the reduction shall be made after any deductions under this section and after any deductions under section 222(b). Whenever a reduction is made under this subsection in the total of monthly benefits to which individuals are entitled for any month on the basis of the wages and self-employment income of an insured individual, each such benefit other than the old-age or disability insurance benefit shall be proportionately decreased. " (5) Notwithstanding any other provision of law, when— " (A) two or more persons are entitled to monthly benefits for a particular month on the basis of the wages and self-employment income of an insured individual and (for such particular month) the provisions of this subsection are applicable to such monthly benefits, and "(B) such individual's primary insurance amount is increased for the following month under any provision of this title, then the total of monthly benefits for all persons on the basis of such wages and self-employment income for such particular month, as determined under the provisions of this subsection, shall for purposes of determining the total monthly benefits for all persons on the basis of such wages and self-employment income for months subsequent to such particular month be considered to have been increased by the smallest amount that would have been required in order to assure that the total of monthly benefits payable on the basis of such wages and self-employment income for any such subsequent month will not be less (after the application of the other provisions of this subsection and section 202(q)) than the total of monthly benefits (after the application of the other provisions of this subsection and section 202 (q)) payable on the basis of such wages and self-employment income for such particular month. "(6) In the case of any individual who is entitled for any month to benefits based upon the primary insurance amounts of two or more insured individuals, one or more of which primary insurance amounts were determined under section 215(a) or 215(d) as in effect (without regard to the table contained therein) prior to January 1979 and one or more of which primary insurance amounts were determined under

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Page:United States Statutes at Large Volume 91.djvu/1561

 PUBLIC LAW 95-216—DEC. 20, 1977 section 215(a)(1) or (4), or section 215(d), as in effect after December 1978, the total benefits payable to that individual and all other individuals entitled to benefits for that month based upon those primary insurance amounts shall be reduced to an amount equal to the product of 1.75 and the primary insurance amount that would be computed under section 215(a)(1) for that month with respect to average indexed monthly earnings equal to one-twelfth of the contribution and benefits base determined under section 230 for the year in which that month occurs. "(7) Subject to paragraph (6), this subsection as in effect in December 1978 shall remain in effect with respect to a primary insurance amount computed under section 215(a) or (d), as in effect (without regard to the table contained therein) in December 1978, except that a primary insurance amount so computed with respect to an individual who first becomes eligible for an old-age or disability insurance benefit, or dies (before becoming eligible for such a benefit), after December 1978, shall instead be governed by this section as in effect after December 1978.".

91 STAT. 1527 Ante, pp. 1514, 1520.

Ante, p. 1513, ^°^^' P- 1^54.

INCREASE I N OLD-AGE B E N E F I T AMOUNTS FOR DELAYED RETIREMENT

SEC. 203. Section 202(w)(1) of Social Security Act is amended— 42 USC 402. (1) by striking out "If the first month" and all that follows down through "to such individual" in the matter preceding subparagraph (A) and inserting in lieu thereof "The amount of an old-age insurance benefit (other than a benefit based on a primary insurance amount determined under section 215(a)(3)) which is Ante, p. 1514. payable without regard to this subsection to an individual"; and (2) by inserting after "such amount," in subparagraph (A) the following: "or, in the case of an individual who first becomes eligible for an old-age insurance benefit after December 1978, onequarter of 1 percent of such amount,". WIDOW'S AND WIDOWER'S INSURANCE BENEFITS IN CASES OF DELAYED RETIREMENT

SEC. 204. (a) Section 202(e)(2)(A) of the Social Security Act is Post, p. 1545. amended (1) by inserting "(as determined after application of the following sentence)" after "primary insurance amount", and (2) by adding at the end thereof the following new sentence: "If such deceased individual was (or upon application would have been) entitled to an old-age insurance benefit which was increased (or subject to being increased) on account of delayed retirement under the provisions of subsection (w), then, for purposes of this subsection, such individual's Supra. primary insurance amount, if less than the old-age insurance benefit (increased, where applicable, under section 215(f)(5) or (6) and 42 USC 415. under section 215(i) as if such individual were still alive in the case of Ante, pp. 1514, an individual who has died) which he was receiving (or would upon 1^21. application have received) for the month prior to the month in which he died, shall be deemed to be equal to such old-age insurance benefit, and (notwithstanding the provisions of paragraph (3) of such subsection (w) the number of increment months shall include any month in the months of the calendar year in which he died, prior to the month in which he died, which satisfy the conditions in paragraph (2) of such subsection (w).".

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Page:United States Statutes at Large Volume 91.djvu/1562

 91 STAT. 1528

PUBLIC LAW 95-216—DEC. 20, 1977

42 USC 402. 42 USC 415.

(b) Section 202(e)(2)(B)(i) of such Act is amended by inserting "and section 215(f)(5) or (6) were applied, where applicable," after "living". Post, pp. 1546, (c) Section 202(f)(3)(A) of such Act is amended (1) by inserting 42 USC 402 "^^? determined after application of the following sentence)" after "primary insurance amount", and (2) by adding at the end thereof the following new sentence: "If such deceased individual was (or upon application would have been) entitled to an old-age insurance benefit which was increased (or subject to being increased) on account of delayed retirement under the provisions of subsection (w), then, for purposes of this subsection, such individual's primary insurance amount, if less than the old-age insurance benefit (increased, where 42 USC 415. applicable, under section 215(f)(5) or (6) and under section 215(i) f ro^i ^P' ^^^^' as if such individual were still alive in the case of an individual who has died) which she was receiving (or would upon application have received) for the month prior to the month in which she died, shall be deemed to be equal to such old-age insurance benefit, and (notwithstanding the provisions of paragraph (3) of such subsection (w)) the number of increment months shall include any month in the months of the calendar year in which she died, prior to the month in which she died, which satisfy the conditions in paragraph (2) of such subsection (w).". 42 USC 402. (d) Section 202(f)(3)(B)(i) of such Act is amended by inserting "and section 215(f)(5) or (6) were applied, where applicable," after "living". (e) Section 203(a) of such Act (as amended by section 202 of this Ante, p. 1524. Act) is further amended by adding at the end thereof the following new paragraph: "(8) When— "(A) one or more persons were entitled (without the applicaPost, p. 1542. tion of section 202(j)(1)) to monthly benefits under section 202 for May 1978 on the basis of the wages and self-employment income of an individual, "(B) the benefit of at least one such person for June 1978 is increased by reason of the amendments made by section 204 of the Social Security Amendments of 1977; and "(C) the total amount of benefits to which all such persons are 42 USC 402. entitled under such section 202 are reduced under the provisions of this subsection (or would be so reduced except for the first Ante, p. 1526. sentence of section 203(a)(4)), then the amount of the benefit to which each such person is entitled for months after May 1978 shall be increased (after such reductions are made under this subsection) to the amount such benefits would have been if the benefit of the person or persons referred to in subparaSupra. graph (B) had not been so increased.". CONFORMING AMENDMENTS

42 USC 402.

SEC. 205. (a) Section 202(m)(l) of the Social Security Act is amended to read as follows: "(1) In any case in which an individual is entitled to a monthly benefit under this section on the basis of a primary insurance amount Ante, pp. 1514, computed under section 215(a) or (d), as in effect after December ^^20. 1978, on the basis of the wages and self-employment income of a deceased individual for any month and no other person is (without

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Page:United States Statutes at Large Volume 91.djvu/1563

 PUBLIC LAW 95-216—DEC. 20, 1977 the application of subsection (j)(l)) entitled to a monthly benefit under this section for that month on the basis of such wages and self-employment income, the individual's benefit amount for that month, prior to reduction under subsection (k)(3), shall not be less than that provided by subparagraph (C)(i)(I) of section 215(a)(1) and increased under section 215(i) for months after May of the year in which the insured individual died as though such benefit were a primary insurance amount.". (b) Section 202(w) of such Act (as amended by section 203 of this Act) is further amended— (1) by inserting after "section 215(a)(3)" in paragraph (1) (in the matter preceding subparagraph (A)) the following: "as in effect in December 1978 or section 215(a)(1)(C)(i) (II) as in effect thereafter"; (2) by inserting "as in effect in December 1978, or section 215 (a)(i)(C)(i) (II) as in effect thereafter," after "paragraph (3) of section 215(a) " in paragraph (5); and (3) by inserting " (whether before, in, or after December 1978)" after "determined under section 215(a)" in paragraph (5). (c) Section 217(b)(1) of such Act is amended by inserting "as in effect in December 1978" after "section 215(c)" each place it appears, and after "section 215(d)". (d) Section 224(a) of such Act is amended by inserting "(determined under section 215(b) as in effect prior to January 1979)" after "(A) the average monthly wage" in the sentence immediately following paragraph (8). (e) Section 1839(c)(3)(B) of such Act is amended to read as follows: "(B) the monthly premium rate most recently promulgated by the Secretary under this paragraph, increased by a percentage determined as follows: The Secretary shall ascertain the primary insurance amount computed under section 215(a)(1), based upon average indexed monthly earnings of $900, that applied to individuals who became eligible for and entitled to old-age insurance benefits on May 1 of the year of the promulgation. He shall increase the monthly premium rate by the same percentage by which that primary insurance amount is increased when, by reason of the law in effect at the time the promulgation is made, it is so computed to apply to those individuals on the following May 1.".

91 STAT. 1529 Post, p. 1542.

Ante, p. 1527. Ante, p. 1514.

42 USC 417. Post, p. 1553. 42 USC 424a. 42 USC 1395r.

EFFECTrVE DATE

SEC. 206. The amendments made by the provisions of this title other 42 USC 402 note, than sections 201(d), 204, and 205(a) shall be effective with respect to monthly benefits under title II of the Social Security Act payable for 42 USC 401. months after December 1978 and with respect to lump-sum death payments with respect to deaths occurring after such month. The amendments made by section 201(d) shall be effective with respect to monthly benefits of an individual who becomes eligible for an old-age or disability insurance benefit, or dies, after December 1977. The amendments made by section 204 shall be effective with respect to monthly benefits for months after May 1978. The amendment made by section 205(a) shall be effective with respect to monthly benefits payable for months after December 1978 based on the wages and self-employment income of individuals who die after December 1978.

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Page:United States Statutes at Large Volume 91.djvu/1564

 91 STAT. 1530

PUBLIC LAW 95-216—DEC. 20, 1977

TITLE III—OTHER CHANGES IN PROVISIONS RELATING TO THE OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE PROGRAM PART A—CHANGES I N EARNINGS TEST LIBERALIZATION OF EARNINGS TEST FOR INDIVIDUALS AGE 6 5 AND OVER

42 USC 403.

SEC. 301. (a) Section 203(f)(8)(A) of the Social Security Act is amended by striking out "a new exempt amount which shall be effective (unless such new exempt amount is prevented from becoming effective by subparagraph (C) of this paragraph) with respect to any individual's taxable year which ends after the calendar year" and inserting in lieu thereof "the new exempt amounts (separately stated for individuals described in subparagraph (D) and for other individuals) which are to be applicable (unless prevented from becoming effective by subparagraph (C)) with respect to taxable years ending in (or with the close of) the calendar year after the calendar year". (b)(1) Section 203(f)(8)(B) of such Act is amended by striking out "The exempt amount for each month of a particular taxable year shall be" in the matter preceding clause (i) and inserting in lieu thereof "Except as otherwise provided in subparagraph (D), the exempt amount which is applicable to individuals described in such subparagraph and the exempt amount which is applicable to other individuals, for each month of a particular taxable year, shall each be". Post, p. 1552. (2) Section 203(f)(8)(B)(i) of such Act is amended by striking out "the exempt amount" and inserting in lieu thereof "the corresponding exempt amount". (3) The last sentence of section 203(f)(8)(B) of such Act is amended by striking out "the exempt amount" and inserting in lieu thereof "an exempt amount". (c)(1) Section 203(f)(8) of such Act is further amended by adding ait the end thereof the following new subparagraph: " (D) Notwithstanding any other provision of this subsection, the exempt amount which is applicable to an individual who has attained age 65 before the close of the taxable year involved— " (i) shall be $333,331/^ for each month of any taxable year ending after 1977 and before 1979, "(ii) shall be $375 for each month of any taxable year ending after 1978 and before 1980, " (iii) shall be $416.66% for each month of any taxable year ending after 1979 and before 1981, " (iv) shall be $458,331/^ for each month of any taxable year ending after 1980 and before 1982, and " (v) shall be $500 for each month of any taxable year ending after 1981 and before 1983.". 42 USC 403 note. (2) No notification with respect to an increased exempt amount for individuals described in section 203(f)(8)(D) of the Social Security Supra. Act (as added by paragraph (1) of this subsection) shall be required under the last sentence of section 203(f)(8)(B) of such Act in 1977, 1978, 1979, 1980, or 1981; and section 203(f)(8)(C) of such Act shall not prevent the new exempt amount determined and published under section 203(f)(8)(A) in 1977 from becoming effective to the extent that such new exempt amount applies to individuals other than those described in section 203(f)(8)(D) of such Act (as so added). (d) Subsections (f)(1), (f)(3), (f)(4)(B), and (h)(1)(A) of section 203 of such Act are each amended by striking out "$200 or the

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Page:United States Statutes at Large Volume 91.djvu/1565

 PUBLIC LAW 95-216—DEC. 20, 1977 exempt amount" and inserting in lieu thereof "the applicable exempt amount". (e) The amendments made by this section shall apply with respect to taxable years ending after December 1977.

91 STAT. 1531

Effective date. 42 USC 403 note.

REPEAL o r EARNINGS LIMITATION EOR INDIVIDUALS AGE 7 0 AND OVER

SEC. 302. (a) Subsections (c)(1), (d)(1), (f)(1)(B), and (j) of section 203 of the Social Security Act are each amended by striking 42 USC 403. out "seventy-two" and inserting in lieu thereof "seventy". (b) Subsection (f)(3) of section 203 of such Act is amended by striking out "age 72" and inserting in lieu thereof "age 70". (c) Subsection (h)(1)(A) of section 203 of such Act is amended by striking out "the age of 72" and "age 72" and inserting in lieu thereof in each instance "age 70". (d) The heading of subsection (j) of section 203 of such Act is amended by striking out "Seventy-two" and inserting in lieu thereof "Seventy". (e) The amendments made by this section shall apply only with Effective date. 42 USC 403 note. respect to taxable years ending after December 31, 1981. E L I M I N A T I O N OF M O N T H L Y EARNINGS TEST

SEC. 303. (a) Clause (E) of the last sentence of section 203(f) (1^ of the Social Security Act (as amended by section 301(d) of this Act) is further amended by inserting before the period at the end thereof the following: ", if such month is in the taxable year in which occurs the first month that is both (i) a month for which the individual is entitled to benefits under subsection (a), (b), (c), (d), (e), (f), (g), or (h) of section 202 (without having been entitled for the preceding month to a benefit under any other of such subsections), and (ii) a month in which the individual did not engage in self-employment and did not render services for wages (determined as provided in paragraph (5)) of more than the applicable exempt amount as determined under paragraph (8)". (b) The amendment made by subsection (a) shall apply only with respect to monthly benefits payable for months after December 1977.

Ante, p. 1530.

42 USC 402.

Effective date, 42 USC 403 note.

PART B—COVERAGE STUDY OF UNIVERSAL COVERAGE

SEC. 311. (a) The Secretary of Health, Education, and Welfare is 42 USC 902 note, directed to undertake, as soon as possible after the date of the enactment of this Act, a thorough study with respect to the extent of the coverage under the old-age, survivors, and disability insurance programs and under the programs established by title X VIII of the Social Security Act. The study shall examine the feasibility and desirability 42 USC 1395. of covering, under such social security programs, Federal employees. State and local governmental employees, and employees of non-profit organizations who are not now covered. The study shall include alternative methods of accomplishing such coverage together with any appropriate alternatives to extending coverage to such employees. (b) With respect to each major alternative method or proposal included in the study described in subsection (a), such study shall also include an analysis of the changes which would be required in the programs established by the Social Security Act and in any other systems 42 USC 1305. or programs (such as retirement, survivorship, disability, and health

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Page:United States Statutes at Large Volume 91.djvu/1566

 91 STAT. 1532

Consultation.

Report to President and Congress. Legislative recommendations.

PUBLIC LAW 95-216—DEC. 20, 1977 programs) affecting the individuals who would be covered under such social security programs under such alternative method or proposal. Such analysis shall include the structural changes required in such programs, the financial impact of such changes, and the effect of such changes on the benefit rights and contribution liabilities of the affected individuals. (c) I n conducting the study required by subsection (a), the Secretary of Health, Education, and Welfare snail consult, as appropriate, with the Secretary of the Treasury, the Director of the Office of Management and Budget, and the Chairman of Civil Service Commission, and those officials shall provide him with such information and assistance as he may require. The Secretary shall also solicit the views of other appropriate officials and organizations. (d) The Secretary of Health, Education, and Welfare shall submit to the President and the Congress, not later than 2 years after the date of the enactment of this Act, a report of the findings of the study required by subsection (a) together with his recommendations for any appropriate legislative changes. COVERAGE OF NONPROFIT ORGANIZATIONS W H I C H FAILED TO F I L E WAIVER CERTIFICATES

26 USC 3121.

SEC. 312. (a)(1) Section 3121(k)(5) of the Internal Revenue Code of 1954 (relating to constructive filing of certificate where refund or credit has been made and new certificate is not filed) is amended— (A) by striking out "prior to the expiration of 180 days after the date of the enactment of this paragraph," in subparagraph (B) and inserting in lieu thereof "prior to April 1, 1978,"; and (B) by striking out "the 181st day after the date of the enactment of this paragraph," and "such 181st day" in the matter following subparagraph (B) and inserting in lieu thereof in each instance "April 1, 1978,". (2) Section 3121(k)(7) of such Code (relating to payment of both employee and employer taxes for retroactive period by organization in cases of constructive filing) is amended— (A) by striking out "prior to the expiration of 180 days after the date of the enactment of this paragraph" and inserting in lieu thereof "prior to April 1, 1978,"; (B) by striking out "the 181st day after such date," and inserting in lieu thereof "April 1, 1978,"; and (C) by striking out "prior to the first day of the calendar quarter in which such 181st day occurs" and inserting in lieu thereof "prior to that date". (3) Section 3121(k)(8) of such Code (relating to extended period for payment of taxes for retroactive coverage) is amended— (A) by striking out "by the end of the 180-day period following the date of the enactment of this paragraph" and inserting in lieu thereof "prior to April 1, 1978,"; (B) by striking out "within that period" and inserting in lieu thereof "prior to April 1, 1978"; and (C) by striking out "on the 181st day following that date" and inserting in lieu thereof "on that date". (b)(1) Section 3121(k)(4) of such Code (relating to constructive filing of certificate where no refund or credit of taxes has been made) is amended by adding at the end thereof the following new subparagraph:

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 PUBLIC LAW 95-216—DEC. 20, 1977 "(C) In the case of any organization which is deemed under this paragraph to have filed a valid waiver certificate under paragraph (1), if— "(i) the period with respect to which the taxes imposed by sections 3101 and 3111 were paid by such organization (as described in subparagraph (A) (ii)) terminated prior to October 1, 1976, or "(ii) the taxes imposed by sections 3101 and 3111 were not paid during the period referred to in clause (i) (whether such period has terminated or not) with respect to remuneration paid by such organization to individuals who became its employees after the close of the calendar quarter in which such period began, taxes under sections 3101 and 3111— "(iii) in the case of an organization which meets the requirements of this subparagraph by reason of clause (i), with respect to remuneration paid by such organization ' after the termination of the period referred to in clause (i) and prior to July 1, 1977; or "(iv) in the case of an organization which meets the requirements of this subparagraph by reason of clause (ii), with respect to remuneration paid prior to July 1, 1977, to individuals who became its employees after the close of the calendar quarter in which the period referred to in clause (i) began, which remain unpaid on the date of the enactment of this subparagraph, or which were paid after October 19, 1976, but prior to the date of the enactment of this subparagraph, shall not be due or payable (or, if paid, shall be refunded); and the certificate which such organization is deemed under this paragraph to have filed shall not apply to any service with respect to the remuneration for which the taxes imposed by sections 3101 and 3111 (which remain unpaid on the date of the enactment of this subparagraph, or were paid after October 19, 1976, but prior to the date of the enactment of this subparagraph) are not due and payable (or are refunded) by reason of the preceding provisions of this subparagraph. In applying this subparagraph for purposes of title II of the Social Security Act, the period during which reports of wages subject to the taxes imposed by sections 3101 and 3111 were made by any organization may be conclusively treated as the period (described in subparagraph (A.) (ii)) during which the taxes imposed by such sections were paid by such organization.". (2) Section 3121(k)(4)(A) of such Code is amended by inserting "(subject to subparagraph (C)) " after "effective" in the matter following clause (ii). (3) Section 3121(k)(6) of such Code (relating to application of certain provisions to cases of constructive filing) is amended by inserting "(except as provided in paragraph (4)(C)) " after "services involved" in the matter preceding subparagraph (A). (4) Section 3121(k)(4) of such Code is amended by striking out "date" in subparagraph (B) (ii) and inserting in lieu thereof "first day of the calendar quarter". (c) In any case where— (1) an individual performed service, as an employee of an organization which is deemed under section 3121(k)(4) of the

91 STAT. 1533 Waiver certificate, filing, Ante, p. 1510, ^ost, p. 1540. ^«^«' P- \\12, jg^j^PP* ^ " ' f

.

42 USC 401.

26 USC 3121.

26 USC 3121 °°*®-

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 PUBLIC LAW 95-216—DEC. 20, 1977

91 STAT. 1534 Ante, p. 1533, Post, p. 1535. 26 USC 3121.

Post, p. 1549. Post, p. 1555.

Ante, p. 1532.

42 USC 401. Ante, p. 1510, Post, p. 1540.

Infra.

Ante, p. 1511. Post, pp. 1537, 1540. Ante, p. 1532.

Internal Revenue Code of 1954 to have filed a waiver certificate under section 3121(k)(1) of such Code, on or after the first day of the applicable period described in subparagraph (A) (ii) of such section 3121(k)(4) and before July 1, 1977; and (2) the service so performed does not constitute employment (as defined in section 210(a) of the Social Security Act and section 3121(b) of such Code) because the waiver certificate which the organization is deemed to have filed is made inapplicable to such service by section 3121(k)(4)(C) of such Code, but would constitute employment (as so defined) in the absence of such section 3121(k)(4)(C), the remuneration paid for such service shall, upon the request of such individual (filed on or before April 15, 1980, in such manner and form, and with such official, as may be prescribed by regulations made under title II of the Social Security Act) accompanied by full payment of all of the taxes which would have been paid under section 3101 of such Code with respect to such remuneration but for such section 3121(k) (4)(C) (or by satisfactory evidence that appropriate arrangements have been made for the payment of such taxes in installments as provided in section 3121(k)(8) of such Code), be deemed to constitute remuneration for employment as so defined. In any case where remuneration paid by an organization to an individual is deemed under the preceding sentence to constitute remuneration for employment, such organization shall be liable (notwithstanding any other provision of such Code) for payment of the taxes which it would have been required to pay under section 3111 of such Code with respect to such remuneration in the absence of such section 3121(k)(4)(C). (d) Section 3121(k)(8) of the Internal Revenue Code of 1954 (relating to extended period for payment of taxes for retroactive coverage), as amended by subsection (a)(3) of this section, is amended to read as follows: "(8)

Remuneration. 26 USC 3121 note.

EXTENDED PERIOD FOR PAYMENT or TAXES FOR RETROACTIVE

COVERAGE.—Notwithstanding any other provision of this title, in any case where— "(A) an organization is deemed under paragraph (4) to have filed a valid waiver certificate under paragraph (1), but the applicable period described in paragraph (4)(A) (ii) has terminated and part or all of the taxes imposed by sections 3101 and 3111 with respect to remuneration paid by such organization to its employees after the close of such period remains payable notwithstanding paragraph (4)(C), or "(B) an organization described in paragraph (5)(A) files a valid waiver certificate under paragraph (1) by March 31, 1978, as described in paragraph (5)(B), or (not having filed such a certificate by that date) is deemed under paragraph (5) to have filed such a certificate on April 1, 1978, or .. " (C) an individual files a request under section 3 of Public Law 94-563, or under section 312(c) of the Social Security Amendments of 1977, to have service treated as constituting remuneration for employment (as defined in section 3121(b) and in section 210Ca) of the Social Security Act), the taxes due under sections 3101 and 3111 with respect to services constituting employment by reason of such certificate for any period prior to the first day of the calendar quarter in which the date of such filing or constructive filing occurs, or with respect to service constituting employment by reason of such request, may

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Page:United States Statutes at Large Volume 91.djvu/1569

 PUBLIC LAW 95-216—DEC. 20, 1977 be paid in installments over an appropriate period of time, as determined under regulations prescribed by the Secretary, rather than in a lump sum.". (e) The first sentence of section 3 of Public Law 94-563 (in the matter following paragraph (3)) is amended— (1) by inserting "on or before April 15, 1980," after "filed"; and (2) by inserting "(or by satisfactory evidence that appropriate arrangements have been made for the repayment of such taxes in installments as provided in section 3121(k)(8) of such Code)" after "so refunded or credited". (f) Section 3121(k)(4)(A)(i) of the Internal lievenue Code of 1954 (relating to constructive filing of certificate where no refund or credit of taxes has been made) is amended by striking out "or any subsequent date" and inserting in lieu thereof "(or, if later, as of the earliest date on which it satisfies clause (ii) of this subparagraph.)". (g) Section 3121(k)(4)(B) of such Code (relating to constructive filing of certificate where no refund or credit of taxes has been made) is amended— (1) by striking out the period at the end of clause (ii) and inserting in lieu thereof ", or"; and (2) by adding after clause (ii) the following new clause: "(iii) the organization, prior to the end of the period referred to in clause (ii) of such subparagraph (and, in the case of an organization organized on or before October 9, 1969, prior to October 19, 1976), had applied for a ruling or determination letter acknowledging it to be exempt from income tax under section 501(c)(3), and it subsequently received such ruling or determination letter and did not pay any taxes under sections 3101 and 3111 with respect to any employee with respect to any quarter ending after the twelfth month following the date of mailing of such ruling or determination letter and did not pay any such taxes with respect to any quarter beginning after the later of (I) December 31, 1975 or (II) the date on which such ruling or determination letter was issued.", (h) The amendments made by subsections (a), (b), (d), (e), (f), and (g) of this section shall be effective as though they had been included as a part of the amendments made to section 3121(k) of the Internal Revenue Code of 1954 by the first section of Public Law 94-563 (or, in the case of the amendments made by subsection (e), as a part of section 3 of such Public Law).

91 STAT. 1535

26 USC 3121 note.

Ante, p. 1534 26 USC 3121

26 USC 501. Ante, p. 1510, Post, p. 1540. Ante, p. 1511, Post, pp. 1537, 1540.

Effective date. 26 USC 3121 note.

EXCLUSION FROM COVERAGE OF CERTAIN LIMITED PARTNERSHIP INCOME

SEC. 313. (a) Section 211(a) of the Social Security Act is amended— 42 USC 411. (1) by striking out "and" at the end of paragraph (9); (2) by striking out the period at the end of paragraph (10) and inserting in lieu thereof "; and"; and (3) by inserting after paragraph (10) the following new paragraph: " (11) There shall be excluded the distributive share of any item of income or loss of a limited partner, as such, other than guaranteed payments described in section 707(c) of the Internal Revenue Code of 1954 to that partner for services actually ren- 26 USC 707. dered to or on behalf of the partnership to the extent that those payments are established to be in the nature of remuneration for those services.".

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