I

103D CONGRESS

1ST SESSION H. R. 314

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 5, 1993

Mr. QUILLEN 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 ‘‘Social Security Earn5 ings Test Repeal Act of 1993’’.
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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5 (42 U.S.C. 403) are repealed.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 Outside

12 the United States or’’ in the heading;

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

14 and (4) as paragraphs (1), (2), and (3), respec15 tively;

16 (C) by striking ‘‘For purposes of para17 graphs (2), (3), and (4)’’ and inserting in lieu

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

19 and (3)’’; and

20 (D) by striking the last sentence;

21 (2) in subsection (e), by redesignating such sub22 section as subsection (c), and by striking ‘‘sub23 sections (c) and (d)’’ and inserting ‘‘subsection (b)’’;

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

25 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 SEC. 3. ADDITIONAL CONFORMING AMENDMENTS.

11 (a) PROVISIONS RELATING TO BENEFITS TERMI12 NATED UPON DEPORTATION.—Section 202(n)(1) of the

13 Social Security Act (42 U.S.C. 402(n)(1)) is amended by

14 striking ‘‘Section 203 (b), (c), and (d)’’ and inserting

15 ‘‘Section 203(b)’’.

16 (b) PROVISIONS RELATING TO EXEMPTIONS FROM

17 REDUCTIONS BASED ON EARLY RETIREMENT.—

18 (1) Section 202(q)(5)(B) of such Act (42

19 U.S.C. 402(q)(5)(B)) is amended by striking ‘‘sec20 tion 203(c)(2)’’ and inserting ‘‘section 203(b)(1)’’.

21 (2) Section 202(q)(7)(A) of such Act (42

22 U.S.C. 402(q)(7)(A)) is amended by striking ‘‘de23 ductions under section 203(b), 203(c)(1), 203(d)(1),

24 or 222(b)’’ and inserting ‘‘deductions on account of
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1 work under section 203 or deductions under section

2 222(b)’’.

3 (c) PROVISIONS RELATING TO EXEMPTIONS FROM

4 REDUCTIONS BASED ON DISREGARD OF CERTAIN ENTI5 TLEMENTS TO CHILD’S INSURANCE BENEFITS.—

6 (1) Section 202(s)(1) of such Act (42 U.S.C.

7 402(s)(1)) is amended by striking ‘‘paragraphs (2),

8 (3), and (4) of section 203(c)’’ and inserting ‘‘para9 graphs (1), (2), and (3) of section 203(b)’’.

10 (2) Section 202(s)(3) of such Act (42 U.S.C.

11 402(s)(3)) is amended by striking ‘‘The last sen12 tence of subsection (c) of section 203, subsection

13 (f)(1)(C) of section 203, and subsections’’ and in14 serting —‘‘Subsections’’.

15 (d) PROVISIONS RELATING TO SUSPENSION OF

16 ALIENS’ BENEFITS.—Section 202(t)(7) of such Act (42

17 U.S.C. 402(t)(7)) is amended by striking ‘‘Subsections

18 (b), (c), and (d)’’ and inserting ‘‘Subsection (b)’’.

19 (e) PROVISIONS RELATING TO BENEFITS INCREASED

20 ON ACCOUNT OF DELAYED RETIREMENT.—Section

21 202(w)(2)(B)(ii) of such Act (42 U.S.C. 402(w)(2)(B)(ii))

22 is amended by striking ‘‘or 203(c)’’.

23 (f) PROVISIONS RELATING TO REDUCTIONS IN BEN24 EFITS BASED ON MAXIMUM BENEFITS.—Section

25 203(a)(3)(B)(iii) of such Act (42 U.S.C.
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1 403(a)(3)(B)(iii)) is amended by striking ‘‘and subsections

2 (b), (c), and (d)’’ and inserting ‘‘and subsection (b)’’.

3 (g) PROVISIONS RELATING TO PENALTIES FOR MIS4 REPRESENTATIONS CONCERNING EARNINGS FOR PERI5 ODS SUBJECT TO DEDUCTIONS ON ACCOUNT OF WORK.—

6 Section 208(a)(1)(C) of such Act (42 U.S.C.

7 408(a)(1)(C)) is amended by striking ‘‘under section

8 203(f) of this title for purposes of deductions from bene9 fits’’ and inserting ‘‘under section 203 for purposes of de10 ductions from benefits on account of work’’.

11 (h) PROVISIONS TAKING INTO ACCOUNT EARNINGS

12 IN DETERMINING BENEFIT COMPUTATION YEARS.—

13 Clause (I) in the next to last sentence of section

14 215(b)(2)(A) of such Act (42 U.S.C. 415(b)(2)(A)) is

15 amended by striking ‘‘no earnings as described in section

16 203(f)(5) in such year’’ and inserting ‘‘no wages, and no

17 net earnings from self-employment (in excess of net loss

18 from self-employment), in such year’’.

19 (i) PROVISIONS RELATING TO ROUNDING OF BENE20 FITS.—Section 215(g) of such Act (42 U.S.C. 415(g)) is

21 amended by striking ‘‘and any deduction under section

22 203(b)’’.

23 (j) PROVISIONS RELATING TO EARNINGS TAKEN

24 INTO ACCOUNT IN DETERMINING SUBSTANTIAL GAINFUL

25 ACTIVITY OF BLIND INDIVIDUALS.—The second sentence
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1 of section 223(d)(4) of such Act (42 U.S.C. 423(d)(4))

2 is amended by striking ‘‘the exempt amount under section

3 203(f)(8) which is applicable to individuals described in

4 subparagraph (D) thereof’’ and inserting the following:

5 ‘‘an amount equal to the exempt amount which would have

6 been applicable under section 203(f)(8), to individuals de7 scribed in subparagraph (D) thereof, if subsections (b)

8 through (l) of section 203, as in effect for taxable years

9 ending before the date of the enactment of the Social Se10 curity Earnings Test Repeal Act of 1993, had remained

11 in effect through the month in which such earnings were

12 derived’’.

13 (k) PROVISIONS DEFINING INCOME FOR PURPOSES

14 OF SSI.—Section 1612(a) of such Act (42 U.S.C.

15 1382a(a)) is amended—

16 (1) by striking ‘‘as determined under section

17 203(f)(5)(C)’’ in paragraph (1)(A) and inserting ‘‘as

18 defined in the last two sentences of this subsection’’;

19 and

20 (2) by adding at the end (after and below para21 graph (2)(F)) the following new sentences:

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

23 means wages as defined in section 209, but computed

24 without regard to the limitations as to amounts of remu25 neration specified in subsections (a), (g)(2), (g)(3), (h)(2),
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1 and (j) of such section. In making the computation under

2 the preceding sentence, (A) services which do not con3 stitute employment as defined in section 210, performed

4 within the United States by an individual as an employee

5 or performed outside the United States in the active mili6 tary or naval services of the United States, shall be

7 deemed to be employment as so defined if the remunera8 tion for such services is not includible in computing the

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

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

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

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

13 her dependents (including any amount paid by an em14 ployer for insurance or annuities, or into a fund, to pro15 vide for any such payment) on account of retirement, or

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

17 to an employee or any of his or her dependents upon or

18 after the termination of the employee’s employment rela19 tionship because of retirement after attaining an age spec20 ified in a plan referred to in section 209(m)(2) or in a

21 pension plan of the employer.’’.

22 (l) REPEAL OF DEDUCTIONS ON ACCOUNT OF WORK

23 UNDER THE RAILROAD RETIREMENT PROGRAM.—Section

24 2 of the Railroad Retirement Act of 1974 (45 U.S.C.

25 231a) is amended by striking subsections (f) and (g)(2).
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1 SEC. 4. EFFECTIVE DATE.

2 The amendments and repeals made by this Act shall

3 be effective with respect to taxable years ending on or

4 after the date of the enactment of this Act.

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