I

103D CONGRESS

1ST SESSION H. R. 505

To amend title II of the Social Security Act so as to remove the limitation

upon the amount of outside income which an individual may earn while

receiving benefits thereunder.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 21, 1993

Mr. DARDEN introduced the following bill; which was referred to the

Committee on Ways and Means

A BILL

To amend title II of the Social Security Act so as to remove

the limitation upon the amount of outside income which

an individual may earn while receiving benefits thereunder.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Relief for Older Work5 ers Act of 1991’’.
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1 SEC. 2. REPEAL OF PROVISIONS RELATING TO DEDUC2 TIONS ON ACCOUNT OF WORK.

3 (a) IN GENERAL.—Subsections (b), (c)(1), (d), (f),

4 (h), (j), and (k) of section 203 of the Social Security Act

5 (42 U.S.C. 403) are repealed.

6 (b) CONFORMING AMENDMENTS.—Section 203 of

7 such Act (as amended by subsection (a)) is further amend8 ed—

9 (1) in subsection (c), by redesignating such sub10 section as subsection (b), and—

11 (A) by striking ‘‘NONCOVERED WORK

12 OUTSIDE THE UNITED STATES OR’’ in the

13 heading;

14 (B) by redesignating paragraphs (2), (3),

15 and (4) as paragraphs (1), (2), and (3), respec16 tively;

17 (C) by striking ‘‘For purposes of para18 graphs (2), (3), and (4)’’ and inserting in lieu

19 thereof ‘‘For purposes of paragraphs (1), (2),

20 and (3)’’; and

21 (D) by striking the last sentence;

22 (2) in subsection (e), by redesignating such sub23 section as subsection (c), and by striking ‘‘sub24 sections (c) and (d)’’ and inserting ‘‘subsection (b)’’;

25 (3) in subsection (g), by redesignating such

26 subsection as subsection (d), and by striking ‘‘sub-
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1 section (c)’’ each place it appears and inserting

2 ‘‘subsection (b)’’;

3 (4) in subsection (i), by redesignating such sub4 section as subsection (e), and by striking ‘‘sub5 section (b), (c), (g), or (h)’’ and inserting ‘‘sub6 section (b) or (d)’’; and

7 (5) in subsection (l), by redesignating such sub8 section as subsection (f), and by striking ‘‘subsection

9 (g) or (h)(1)(A)’’ and inserting ‘‘subsection (d)’’.

10 (c) CONFORMING AMENDMENTS TO OTHER PROVI11 SIONS.—

12 (1) PROVISIONS RELATING TO BENEFITS TER13 MINATED UPON DEPORTATION.—Section 202(n)(1)

14 of such Act (42 U.S.C. 402(n)(1)) is amended by

15 striking ‘‘Sections 203 (b), (c), and (d)’’ and insert16 ing ‘‘Section 203(b)’’.

17 (2) PROVISIONS RELATING TO EXEMPTIONS

18 FROM REDUCTIONS BASED ON EARLY RETIRE19 MENT.—

20 (A) Section 202(q)(5)(B) of such Act (42

21 U.S.C. 402(q)(5)(B)) is amended by striking

22 ‘‘section 203(c)(2)’’ and inserting ‘‘section

23 203(b)(1)’’.

24 (B) Section 202(q)(7)(A) of such Act (42

25 U.S.C. 402(q)(7)(A)) is amended by striking
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1 ‘‘deductions under section 203(b), 203(c)(1),

2 203(d)(1), or 222(b)’’ and inserting ‘‘deduc3 tions on account of work under section 203 or

4 deductions under section 222(b)’’.

5 (3) PROVISIONS RELATING TO EXEMPTIONS

6 FROM REDUCTIONS BASED ON DISREGARD OF CER7 TAIN ENTITLEMENTS TO CHILD’S INSURANCE BENE8 FITS.—

9 (A) Section 202(s)(1) of such Act (42

10 U.S.C. 402(s)(1)) is amended by striking

11 ‘‘paragraphs (2), (3), and (4) of section 203(c)’’

12 and inserting ‘‘paragraphs (1), (2), and (3) of

13 section 203(b)’’.

14 (B) Section 202(s)(3) of such Act (42

15 U.S.C. 402(s)(3)) is amended by striking ‘‘The

16 last sentence of subsection (c) of section 203,

17 subsection (f)(1)(C) of section 203, and sub18 sections’’ and inserting ‘‘Subsections’’.

19 (4) PROVISIONS RELATING TO SUSPENSION OF

20 ALIENS’ BENEFITS.—Section 202(t)(7) of such Act

21 (42 U.S.C. 402(t)(7)) is amended by striking ‘‘Sub22 sections (b), (c), and (d)’’ and inserting ‘‘Subsection

23 (b)’’.

24 (5) PROVISIONS RELATING TO BENEFITS IN25 CREASED ON ACCOUNT OF DELAYED RETIRE-
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1 MENT.—Section 202(w)(2)(B)(ii) of such Act (42

2 U.S.C. 402(w)(2)(B)(ii)) is amended by striking ‘‘or

3 203(c)’’.

4 (6) PROVISIONS RELATING TO REDUCTIONS IN

5 BENEFITS BASED ON MAXIMUM BENEFITS.—Section

6 203(a)(3)(B)(iii) of such Act (42 U.S.C.

7 403(a)(3)(B)(iii)) is amended by striking ‘‘and sub8 sections (b), (c), and (d)’’ and inserting ‘‘and sub9 section (b)’’.

10 (7) PROVISIONS RELATING TO PENALTIES FOR

11 MISREPRESENTATIONS CONCERNING EARNINGS FOR

12 PERIODS SUBJECT TO DEDUCTIONS ON ACCOUNT OF

13 WORK.—Section 208(a)(3) of such Act (42 U.S.C.

14 408(a)(3)) is amended by striking ‘‘under section

15 203(f) of this title for purposes of deductions from

16 benefits’’ and inserting ‘‘under section 203 for pur17 poses of deductions from benefits on account of

18 work’’.

19 (8) PROVISIONS TAKING INTO ACCOUNT EARN20 INGS IN DETERMINING BENEFIT COMPUTATION

21 YEARS.—Clause (I) in the next to last sentence of

22 section 215(b)(2)(A) of such Act (42 U.S.C.

23 415(b)(2)(A)) is amended by striking ‘‘no earnings

24 as described in section 203(f)(5) in such year’’ and

25 inserting ‘‘no wages, and no net earnings from self-
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1 employment (in excess of net loss from self-employ2 ment), in such year’’.

3 (9) PROVISIONS RELATING TO ROUNDING OF

4 BENEFITS.—Section 215(g) of such Act (42 U.S.C.

5 415(g)) is amended by striking ‘‘and any deduction

6 under section 203(b)’’.

7 (10) PROVISIONS RELATING TO EARNINGS

8 TAKEN INTO ACCOUNT IN DETERMINING SUBSTAN9 TIAL GAINFUL ACTIVITY OF BLIND INDIVIDUALS.—

10 The second sentence of section 223(d)(4) of such

11 Act (42 U.S.C. 423(d)(4)) is amended by striking

12 ‘‘the exempt amount under section 203(f)(8) which

13 is applicable to individuals described in subpara14 graph (D) thereof’’ and inserting the following: ‘‘an

15 amount equal to the exempt amount which would

16 have been applicable under section 203(f)(8), to in17 dividuals described in subparagraph (D) thereof, if

18 the Relief for Older Workers Act of 1991 had not

19 been enacted’’.

20 (11) PROVISIONS DEFINING INCOME FOR PUR21 POSES OF SSI.—Section 1612(a) of such Act (42

22 U.S.C. 1382a(a)) is amended—

23 (A) by striking ‘‘as determined under sec24 tion 203(f)(5)(C)’’ in paragraph (1)(A) and in-
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1 serting ‘‘as defined in the last two sentences of

2 this subsection’’; and

3 (B) by adding at the end (after and below

4 paragraph (2)(F)) the following new sentences:

5 ‘‘For purposes of paragraph (1)(A), the term ‘wages’

6 means wages as defined in section 209, but computed

7 without regard to the limitations as to amounts of remu8 neration specified in subsections (a), (g)(2), (g)(3), (h)(2),

9 and (j) of such section. In making the computation under

10 the preceding sentence, (A) services which do not con11 stitute employment as defined in section 210, performed

12 within the United States by an individual as an employee

13 or performed outside the United States in the active mili14 tary or naval services of the United States, shall be

15 deemed to be employment as so defined if the remunera16 tion for such services is not includible in computing the

17 individual’s net earnings or net loss from self-employment

18 for purposes of title II, and (B) the term ‘wages’ shall

19 be deemed not to include (i) the amount of any payment

20 made to, or on behalf of, an employee or any of his or

21 her dependents (including any amount paid by an em22 ployer for insurance or annuities, or into a fund, to pro23 vide for any such payment) on account of retirement, or

24 (ii) any payment or series of payments by an employer

25 to an employee or any of his or her dependents upon or
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1 after the termination of the employee’s employment rela2 tionship because of retirement after attaining an age spec3 ified in a plan referred to in section 209(m)(2) or in a

4 pension plan of the employer.’’.

5 (12) REPEAL OF DEDUCTIONS ON ACCOUNT OF

6 WORK UNDER THE RAILROAD RETIREMENT PRO7 GRAM.—Section 2 of the Railroad Retirement Act of

8 1974 (45 U.S.C. 231a) is amended by striking sub9 sections (f) and (g)(2).

10 SEC. 3. EFFECTIVE DATE.

11 The amendments and repeals made by this Act shall

12 be effective with respect to taxable years ending on and

13 after the date of the enactment of this Act.

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