I

103D CONGRESS

1ST SESSION H. R. 413

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. STUMP 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4 203 of the Social Security are repealed.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 Outside

2 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 (iii), and by

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

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

7 striking out ‘‘Section 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,’’.
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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 entitled to

7 an old-age insurance benefit, (II) suffered de8 ductions, in amounts equal to the amount of

9 such benefit, under section 203(b) as in effect

10 in the month or months involved, or (III) would

11 have suffered deductions on account of work, in

12 amounts equal to the amount of such benefit

13 (as determined under regulations of the Sec14 retary), under subsections (b) through (l) of

15 section 203 as in effect immediately prior to the

16 enactment of this clause (III) if such sub17 sections (other than paragraph (8) of sub18 section (f) had remained in effect through such

19 month or months.’’.

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

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

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

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

24 striking out ‘‘under section 203(f) of this title for purposes

25 of deductions from benefits’’ and inserting in lieu thereof
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1 ‘‘under section 203 for purposes of deductions from bene2 fits on account of work’’.

3 (i) Section 215(g) of such Act is amended by striking

4 out ‘‘and deductions under section 203(b)’’.

5 (j) The last sentence of section 223(d)(4) of such Act

6 is amended by striking out ‘‘the exempt amount under sec7 tion 203(f)(8) which is applicable to individuals described

8 in subparagraph (D) thereof’’ and inserting in lieu thereof

9 the following: ‘‘an amount equal to the exempt amount

10 which would have been applicable under section 203(f)(8),

11 to individuals described in subparagraph (D) thereof, if

12 subsections (b) through (l) of section 203 as in effect in

13 January 1979 had remained in effect through the month

14 in which such earnings were derived.’’

15 (k) Section 1612(a) of such Act is amended—

16 (1) by striking out ‘‘as determined under sec17 tion 203(f)(5)(C)’’ in paragraph (1)(A) and insert18 ing in lieu thereof ‘‘as defined in the last sentence

19 of this subsection’’; and

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

21 new sentence:

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; and in making such computation

2 services which do not constitute employment as defined

3 in section 210, performed within the United States by an

4 individual as an employee or performed outside the United

5 States in the active military or naval service of the United

6 States, shall be deemed to be employment as so defined

7 if the remuneration for such services is not includible in

8 computing the individual’s net earnings or new loss from

9 self-employment for purposes of title II.’’.

10 (l) Section 2 of the Railroad Retirement Act of 1974

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

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

13 Act shall be effective with respect to taxable years ending

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

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