I

103D CONGRESS

1ST SESSION H. R. 622

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 26, 1993

Mr. MCCANDLESS 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 That subsections (b), (d), (f), (h), (j), and (k) of section

4 203 of the Social Security Act are repealed.

5 SEC. 2. (a) Subsection (c) of section 203 of the Social

6 Security Act is redesignated as subsection (b); and such

7 subsection as so redesignated is amended—
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1 (1) by striking out ‘‘NONCOVERED WORK OUT2 SIDE THE UNITED STATES OR’’ in the heading;

3 (2) by striking out paragraph (1);

4 (3) by redesignating paragraphs (2), (3), and

5 (4) as paragraphs (1), (2), and (3), respectively;

6 (4) by striking out ‘‘For purposes of para7 graphs (2), (3), and (4)’’ and inserting in lieu there8 of ‘‘For purposes of paragraphs (1), (2), and (3)’’;

9 and

10 (5) by striking out the last sentence.

11 (b) Subsection (e) of such section 203 is redesignated

12 as subsection (c); and such subsection as so redesignated

13 is amended by striking out ‘‘subsections (c) and (d)’’ and

14 inserting in lieu thereof ‘‘subsection (b)’’.

15 (c) Subsection (g) of such section 203 is redesignated

16 as subsection (d); and such subsection as so redesignated

17 is amended by striking out ‘‘subsection (c)’’ each place it

18 appears and inserting in lieu thereof ‘‘subsection (b)’’.

19 (d) Subsection (i) of such section 203 is redesignated

20 as subsection (e); and such subsection as so redesignated

21 is amended by striking out ‘‘subsection (b), (c), (g), or

22 (h)’’ and inserting in lieu thereof ‘‘subsection (b) or (d)’’.

23 (e) Subsection (l) of such section 203 is redesignated

24 as subsection (f); and such subsection as so redesignated
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1 is amended by striking out ‘‘subsection (g) or (h)(1)(A)’’

2 and inserting in lieu thereof ‘‘subsection (d)’’.

3 SEC. 3. (a) Section 202(j)(4)(B) of the Social Secu4 rity Act is amended by striking out clause (iv), and by

5 redesignating clause (v) as clause (iv).

6 (b) Section 202(n)(1) of such Act is amended by

7 striking out ‘‘Sections 203 (b), (c), and (d)’’ and inserting

8 in lieu thereof ‘‘Section 203(b)’’.

9 (c)(1) Section 202(q)(5)(B) of such Act is amended

10 by striking out ‘‘section 203(c)(2)’’ and inserting in lieu

11 thereof ‘‘section 203(b)(1)’’.

12 (2) Section 202(q)(7)(A) of such Act is amended by

13 striking out ‘‘deductions under section 203(b), 203(c)(1),

14 203(d)(1), or 222(b)’’ and inserting in lieu thereof ‘‘de15 ductions on account of work under section 203 or deduc16 tions under section 222(b)’’.

17 (d)(1) Section 202(s)(1) of such Act is amended by

18 striking out ‘‘paragraphs (2), (3), and (4) of section

19 203(c)’’ and inserting in lieu thereof ‘‘paragraphs (1), (2),

20 and (3) of section 203(b)’’.

21 (2) Section 202(s)(3) of such Act is amended by

22 striking out ‘‘The last sentence of subsection (c) of section

23 203, subsection (f)(1)(C) of section 203, and subsections’’

24 and inserting in lieu thereof ‘‘Subsections’’.
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1 (e) Section 202(t)(7) of such Act is amended by strik2 ing out ‘‘Subsections (b), (c), and (d)’’ and inserting in

3 lieu thereof ‘‘Subsection (b)’’.

4 (f) Section 202(w)(2)(B)(ii) of such Act is amended

5 to read as follows:

6 ‘‘(ii) such individual (I) was not enti7 tled to an old-age insurance benefit, (II)

8 suffered deductions, in amounts equal to

9 the amount of such benefit, under section

10 203(b) as in effect in the month or months

11 involved, or (III) would have suffered de12 ductions on account of work, in amounts

13 equal to the amount of such benefit (as de14 termined under regulations of the Sec15 retary), under subsections (b) through (l)

16 of section 203 as in effect immediately

17 prior to the enactment of this clause (III)

18 if such subsections (other than paragraph

19 (8) of subsection (f)) had remained in ef20 fect through such month or months.’’.

21 (g) Section 203(a)(3)(B)(iii) of such Act is amended

22 by striking out ‘‘and subsections (b), (c), and (d)’’ and

23 inserting in lieu thereof ‘‘and subsection (b)’’.

24 (h) Section 208(a)(3) of such Act is amended by

25 striking out ‘‘under section 203(f) of this title for purposes
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1 of deductions from benefits’’ and inserting in lieu thereof

2 ‘‘under section 203 for purposes of deductions from bene3 fits on account of work’’.

4 (i) Clause (I) in the last sentence of section

5 215(b)(2)(A) of such Act is amended by striking out ‘‘no

6 earnings as described in section 203(f)(5) in such year’’

7 and inserting in lieu thereof ‘‘no wages, and no net earn8 ings from self-employment (in excess of net loss from self9 employment), in such year’’.

10 (j) Section 215(g) of such Act is amended by striking

11 out ‘‘and any deduction under section 203(b)’’.

12 (k) The third sentence of section 223(d)(4) of such

13 Act is amended by striking out ‘‘the exempt amount under

14 section 203(f)(8) which is applicable to individuals de15 scribed in subparagraph (D) thereof’’ and inserting in lieu

16 thereof the following: ‘‘an amount equal to the exempt

17 amount which would have been applicable under section

18 203(f)(8), to individuals described in subparagraph (D)

19 thereof, if subsections (b) through (l) of section 203 as

20 in effect in December 1984 had remained in effect through

21 the month in which such earnings were derived’’.

22 (l) Section 1612(a) of such Act is amended—

23 (1) by striking out ‘‘as determined under sec24 tion 203(f)(5)(C)’’ in paragraph (1)(A) and insert-
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1 ing in lieu thereof ‘‘as defined in the last sentence

2 of this subsection’’, and

3 (2) by adding at the end thereof the following

4 new sentence: ‘‘For purposes of paragraph (1)(A),

5 the term ‘‘wages’’ means wages as defined in section

6 209, but computed without regard to the limitations

7 as to amounts of remuneration specified in sub8 sections (a), (g)(2), (g)(3), (h)(2), and (j) of such

9 section; and in making such computation services

10 which do not constitute employment as defined in

11 section 210, performed within the United States by

12 an individual as an employee or performed outside

13 the United States in the active military or naval

14 service of the United States, shall be deemed to be

15 employment as so defined if the remuneration for

16 such services is not includible in computing the indi17 vidual’s net earnings or net loss from self-employ18 ment for purposes of title II; but such term does not

19 include (i) the amount of any payment made to or

20 on behalf of an employee or any of his dependents

21 (including any amount paid by an employer for in22 surance or annuities, or into a fund, to provide for

23 any such payment) on account of retirement, or (ii)

24 any payment or series of payments by an employer

25 to an employee or any of his dependents upon or
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1 after the termination of the employee’s employment

2 relationship because of retirement after attaining an

3 age specified in a plan referred to in section

4 209(m)(2) or in a pension plan of the employer.’’.

5 (m) Section 2 of the Railroad Retirement Act of 1974

6 is amended by striking out subsections (f) and (g)(2).

7 SEC. 4. The amendments and repeals made by this

8 Act shall be effective with respect to taxable years ending

9 on and after the date of the enactment of this Act.

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