I

103D CONGRESS

1ST SESSION H. R. 1045

To amend title II of the Social Security Act to provide in certain cases

for an exchange of credits between the old-age, survivors, and disability

insurance system and the civil service retirement system so as to enable

individuals who have coverage under both systems to obtain maximum

benefits based on their combined service.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 23, 1993

Mrs. BYRNE introduced the following bill; which was referred jointly to the

Committees on Ways and Means and Post Office and Civil Service

A BILL

To amend title II of the Social Security Act to provide

in certain cases for an exchange of credits between the

old-age, survivors, and disability insurance system and

the civil service retirement system so as to enable individuals who have coverage under both systems to obtain

maximum benefits based on their combined service.

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

3 That title II of the Social Security Act is amended by add4 ing at the end thereof the following new section:
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1 ‘‘EXCHANGE OF CREDITS BETWEEN SOCIAL SECURITY

2 AND CIVIL SERVICE RETIREMENT SYSTEMS

3 ‘‘SEC. 230. UNDER REGULATIONS PRESCRIBED BY

4 THE SECRETARY IN CONSULTATION WITH THE CIVIL

5 SERVICE COMMISSION.—

6 ‘‘(a)(1) If an individual age 65 or over—

7 ‘‘(A) is eligible for any annuity under sub8 chapter III of chapter 83 of title 5, United

9 States Code, and has been credited with wages

10 or self-employment income (or both) for pur11 poses of this title but is not eligible for benefits

12 under section 202(a), or

13 ‘‘(B) is eligible both for benefits under sec14 tion 202(a) and for an annuity under sub15 chapter III of chapter 83 of such title 5, but

16 the monthly total of such benefits plus such an17 nuity is less than the monthly amount to which

18 such annuity would be increased if the wages

19 and self-employment income with which he has

20 been credited for purposes of this title had in21 stead constituted basic pay for employment

22 creditable for civil service retirement purposes

23 under section 8332 of such title 5, or

24 ‘‘(C) is not eligible either for benefits

25 under section 202(a) or for an annuity under
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1 subchapter III of chapter 83 of such title 5, but

2 (i) he would be eligible for an annuity under

3 such subchapter III if all wages and self-em4 ployment income with which he has been cred5 ited for purposes of this title had instead con6 stituted basic pay for employment creditable for

7 civil service retirement purposes under section

8 8332 of such title 5, and (ii) the monthly

9 amount of such annuity would be greater than

10 the monthly amount of any benefits for which

11 he would be eligible under section 202(a) if the

12 amount of any basic pay which he actually re13 ceived for employment so creditable had instead

14 constituted wages or self-employment income

15 for purposes of this title,

16 then, upon written request filed by or on behalf of

17 such individual (in such manner and form as may be

18 provided in such regulations), all wages and self-em19 ployment income with which such individual has

20 theretofore been credited for purposes of this title

21 shall be treated for purposes of such subchapter III

22 (effective with respect to months after the month in

23 which the request is filed) as constituting basic pay

24 received by such individual for employment cred25 itable under section 8332 of such title 5, and as hav-
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1 ing been received in the same amounts and at the

2 same times as they were actually received for pur3 poses of this title; and the entries in the Secretary’s

4 records with respect to such wages and self-employ5 ment income shall thereupon be deleted.

6 ‘‘(2) If an individual age 65 or over—

7 ‘‘(A) is eligible for benefits under section

8 202(a), and has been credited with basic pay

9 for employment creditable for civil service re10 tirement purposes under section 8332 of title 5,

11 United States Code, but is not eligible for an

12 annuity under subchapter III of chapter 83 of

13 such title, or

14 ‘‘(B) is eligible both for benefits under sec15 tion 202(a) and for an annuity under sub16 chapter III of chapter 83 of such title 5, but

17 the monthly total of such benefits plus such an18 nuity is less than the monthly amount to which

19 such benefits would be increased if the basic

20 pay with which he has been credited for civil

21 service retirement purposes under section 8332

22 of such title 5 had instead constituted wages or

23 self-employment income for purposes of this

24 title, or
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1 ‘‘(C) is not eligible either for benefits

2 under section 202(a) or for an annuity under

3 subchapter III of chapter 83 of such title 5, but

4 (i) he would be eligible for benefits under sec5 tion 202(a) if all basic pay with which he has

6 been credited for civil service retirement pur7 poses under section 8332 of such title 5 had in8 stead constituted wages or self-employment in9 come for purposes of this title, and (ii) the

10 monthly amount of such benefits would be

11 greater than the monthly amount of any annu12 ity for which he would be eligible under sub13 chapter III of chapter 83 of such title 5 if the

14 amount of any wages and self-employment in15 come which he actually received for purposes of

16 this title had instead constituted basic pay cred17 itable under section 8332 of such title 5,

18 then, upon written request filed by or on behalf of

19 such individual (in such manner and form as may be

20 provided in such regulations), all basic pay with

21 which such individual has theretofore been credited

22 for civil service retirement purposes under section

23 8332 of such title 5 shall be treated for purposes of

24 this title (effective with respect to months after the

25 month in which the request is filed) as constituting
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1 wages and self-employment income, and as having

2 been received in the same amounts and at the same

3 times as they were actually received for purposes of

4 such subchapter III; and the entries in the Civil

5 Service Commission’s records with respect to such

6 basic pay shall thereupon be deleted.

7 ‘‘(3) For purposes of paragraphs (1) and (2),

8 the ‘monthly amount’ of an individual’s benefit or

9 annuity includes (in addition to the monthly amount

10 which is or would be payable to such individual) the

11 monthly amount of any benefit or annuity which is

12 or would be payable to other persons on the basis of

13 such individual’s wages and self-employment income

14 (in the case of benefits under section 202) or on the

15 basis of his employment creditable under section

16 8332 of title 5, United States Code (in the case of

17 annuities under subchapter III of chapter 83 of such

18 title).

19 ‘‘(b)(1) Subject to paragraph (3), if a survivor

20 of a deceased individual—

21 ‘‘(A) is eligible for an annuity under sub22 chapter III of chapter 83 of title 5, United

23 States Code, on the basis of such individual’s

24 creditable employment, and such individual was

25 credited with wages or self-employment income
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1 (or both) for purposes of this title but such sur2 vivor is not eligible for benefits under section

3 202(a) on the basis of such individual’s wages

4 and self-employment income, or

5 ‘‘(B) is eligible both for benefits under sec6 tion 202(a) on the basis of such individual’s

7 wages and self-employment income and for an

8 annuity under subchapter III of chapter 83 of

9 such title 5 on the basis of such individual’s

10 creditable employment, but the monthly total of

11 such benefits plus such annuity for all survivors

12 of such individual is less than the monthly

13 amount to which such annuity for all such sur14 vivors would be increased if the wages and self15 employment income with which such individual

16 was credited for purposes of this title had in17 stead constituted basic pay for employment

18 creditable for civil service retirement purposes

19 under section 8332 of such title 5, or

20 ‘‘(C) is not eligible either for benefits

21 under section 202(a) on the basis of such indi22 vidual’s wages and self-employment income or

23 for an annuity under subchapter III of chapter

24 83 of such title 5 on the basis of such individ25 ual’s creditable employment, but (i) such survi-
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1 vor would be eligible for an annuity under such

2 subchapter III on the basis of such individual’s

3 creditable employment if all wages and self-em4 ployment income with which such individual

5 was credited for purposes of this title had in6 stead constituted basic pay for employment

7 creditable for civil service retirement purposes

8 under section 8332 of such title 5, and (ii) the

9 monthly amount of such annuity for all survi10 vors of such individual would be greater than

11 the monthly amount of any benefit for which

12 such survivors would be eligible under section

13 202(a) on the basis of such individual’s wages

14 and self-employment income if the amount of

15 any basic pay which he actually received for

16 employment so creditable had instead con17 stituted wages of self-employment income for

18 purposes of this title,

19 then, upon written request filed by or on behalf of

20 such survivor (in such manner and form as may be

21 provided in such regulations), all wages and self-em22 ployment income with which such individual was

23 credited for purposes of this title shall be treated for

24 purposes of such subchapter III (effective with re25 spect to months after the month in which the re-
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1 quest is filed) as constituting basic pay received by

2 such individual for employment creditable under sec3 tion 8332 of such title 5, and as having been re4 ceived in the same amounts and at the same times

5 as they were actually received for purposes of this

6 title; and the entries in the Secretary’s records with

7 respect to such wages and self-employment income

8 shall thereupon be deleted.

9 ‘‘(2) Subject to paragraph (3), if a survivor of

10 a deceased individual—

11 ‘‘(A) is eligible for benefits under section

12 202(a) on the basis of such individual’s wages

13 and self-employment income, and such individ14 ual was credited with basic pay for employment

15 creditable for civil service retirement purposes

16 under section 8332 of title 5, United States

17 Code, but no such survivor is eligible for an an18 nuity under subchapter III of chapter 83 of

19 such title on the basis of such individual’s cred20 itable employment, or

21 ‘‘(B) is eligible both for benefits under sec22 tion 202(a) on the basis of such individual’s

23 wages and self-employment income and for an

24 annuity under subchapter III of chapter 83 of

25 title 5 on the basis of such individual’s cred-
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1 itable employment, but the monthly total of

2 such benefits plus such annuity for all survivors

3 of such individual is less than the monthly

4 amount to which such benefits for all such sur5 vivors would be increased if the basic pay with

6 which such individual was credited for civil

7 service retirement purposes under section 8332

8 of such title 5 had instead constituted wages or

9 self-employment income for purposes of this

10 title, or

11 ‘‘(C) is not eligible either for benefits

12 under section 202(a) on the basis of such indi13 vidual’s wages and self-employment income or

14 for an annuity under subchapter III of chapter

15 83 of such title 5 on the basis of such individ16 ual’s creditable employment, but (i) such survi17 vor would be eligible for benefits under section

18 202(a) on the basis of such individual’s wages

19 on self-employment income if all basic pay with

20 which such individual was credited for civil

21 service retirement purposes under section 8332

22 of such title 5 had instead constituted wages or

23 self-employment income for purposes of this

24 title, and (ii) the monthly amount of such bene25 fits for all survivors of such individual would be
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1 greater than the monthly amount of any annu2 ity for which such survivors would be eligible

3 under subchapter III of chapter 83 of such title

4 5 on the basis of such individual’s creditable

5 employment if the amount of any wages and

6 self-employment income which he actually re7 ceived for purposes of this title had instead con8 stituted basic pay creditable under section 8332

9 of such title 5,

10 then, upon written request filed by or on behalf of

11 such survivor (in such manner and form as may be

12 provided in such regulations), all basic pay with

13 which such individual was credited for civil service

14 retirement purposes under section 8332 of such title

15 5 shall be treated for purposes of this title (effective

16 with respect to months after the month in which the

17 request is filed) as constituting wages and self-em18 ployment income, and as having been received in the

19 same amounts and at the same times as they were

20 actually received for purposes of such subchapter

21 III; and the entries in the Civil Service Commis22 sion’s records with respect to such basic pay shall

23 thereupon be deleted.

24 ‘‘(3)(A) No request filed by a survivor of a de25 ceased individual under paragraph (1) or (2) of this
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1 subsection shall be accepted by the Secretary as a

2 valid request unless—

3 ‘‘(i) a request is also filed under such para4 graph by every other living survivor of such in5 dividual who is eligible for benefits under sec6 tion 202 on the basis of such individual’s wages

7 and self-employment income or for an annuity

8 under subchapter III of chapter 83 of title 5,

9 United State Code, on the basis of such individ10 ual’s employment creditable under section 8332

11 of such title; and

12 ‘‘(ii) written consent to the filing of such

13 request is given by any living survivor of such

14 individual who is not eligible for such benefits

15 or such annuity but who could become so eligi16 ble upon attaining a specified age, upon the fil17 ing of such request or requests, or upon the oc18 currence of some other event.

19 ‘‘(B) No request may be filed by any survivor

20 of a deceased individual under this subsection if a

21 request was filed by such individual under subsection

22 (a) prior to his death.

23 ‘‘(c) No request may be filed by any individual

24 under subsection (a) or by any survivor of such indi25 vidual under subsection (b) if such individual has re-
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1 ceived a refund of any part of the retirement deduc2 tions made from his basic pay under section 8334 of

3 title 5, United States Code, or the corresponding

4 provisions of prior law, unless and until the full

5 amount of such refund has been deposited with in6 terest as provided in section 8334(d) of such title.

7 ‘‘(d) Any request made under subsection (a) or

8 (b) shall be irrevocable.

9 ‘‘(e) For purposes of this section, an individual

10 is ‘eligible’ for benefits under section 202 or an an11 nuity under subchapter III of chapter 83 of title 5,

12 United States Code, if he is actually entitled to such

13 benefits or annuity or would be so entitled upon fil14 ing application therefor.

15 ‘‘(f)(1) If for any fiscal year beginning with the

16 fiscal year 1982 either the Federal Old-Age and

17 Survivors Insurance Trust Fund or the Civil Service

18 Retirement and Disability Fund, after taking into

19 account any additional administrative expenses in20 curred by it as a result of the operation of this sec21 tion, realizes a net gain (whether in the form of an

22 actual gain or a reduction in the amount of the net

23 loss it would otherwise have suffered) as a result

24 of—
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1 ‘‘(A) the nonpayment of benefits or annu2 ities during such fiscal year with respect to in3 dividuals who would have been entitled to bene4 fits or annuities from such fund (or would have

5 been entitled to such benefits or annuities in

6 larger amounts) but for requests filed under

7 subsections (a) and (b) of this section, and

8 ‘‘(B) the increase in interest earned by

9 such fund because of the nonpayment or re10 duced payment of benefits or annuities pursu11 ant to such requests,

12 the Secretary of Health and Human Services shall

13 transfer from the Federal Old-Age and Survivors In14 surance Trust Fund to the Civil Service Retirement

15 and Disability Fund (if the Federal Old-Age and

16 Survivors Insurance Trust Fund is the fund realiz17 ing the gain), or the Civil Service Commission shall

18 transfer from the Civil Service Retirement and Dis19 ability Fund to the Federal Old-Age and Survivors

20 Insurance Trust Fund (if the Civil Service Retire21 ment and Disability Fund is the fund realizing the

22 gain), such amount as is jointly determined by the

23 Secretary and the Commission (in consultation with

24 the Secretary of the Treasury) to be equal to the

25 gain so realized, so as to place the transferring fund
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1 in the same position (at the close of such fiscal year)

2 as it would have been in if this section had not been

3 enacted.

4 ‘‘(2) If for any fiscal year beginning with the

5 fiscal year 1982, after any transfer for such year

6 under paragraph (1), either the Federal Old-Age

7 and Survivors Insurance Trust Fund or the Civil

8 Service Retirement and Disability Fund is jointly

9 determined by the Secretary and the Commission (in

10 consultation with the Secretary of the Treasury) to

11 have suffered a loss on account of—

12 ‘‘(A) the payment of benefits or annuities

13 from such Fund during such fiscal year with re14 spect to individuals who would not have been

15 entitled to such benefits or annuities (or would

16 have been entitled to such benefits or annuities

17 in smaller amounts) but for requests filed under

18 subsections (a) and (b) of this section.

19 ‘‘(B) additional administrative expenses in20 curred by such Fund as a result of the payment

21 or nonpayment of benefits or annuities pursu22 ant to such requests, and

23 ‘‘(C) any loss of interest to such Fund as

24 a result of the payment of benefits or annuities

25 pursuant to such requests,
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1 there is hereby appropriated to such fund such

2 amount as may be necessary to place it in the same

3 position at the close of such fiscal year as it would

4 have been in if this section had not been enacted.’’.

5 SEC. 2. Section 8332 of title 5, United States Code,

6 is amended by adding at the end thereof the following new

7 subsection:

8 ‘‘(k) In accordance with section 230 of the Social Se9 curity Act (and notwithstanding any other provision of

10 this subchapter)—

11 ‘‘(1) credit shall be allowed for gainful activity

12 otherwise constituting employment or self-employ13 ment for purposes of title II of such Act to the ex14 tent that the wages and self-employment income re15 ceived for or derived from such employment or self16 employment is treated as basic pay for employment

17 creditable under this section pursuant to a request

18 filed pursuant to subsection (a)(1) or (b)(1) of such

19 section 230; and

20 ‘‘(2) credit shall not be allowed for service oth21 erwise creditable under this section to the extent

22 that the basic pay received for such service is treat23 ed as wages and self-employment income for pur24 poses of title II of such Act pursuant to a request
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1 filed pursuant to subsection (a)(2) or (b)(2) of such

2 section 230.’’.

3 SEC. 3. The amendments made by this Act shall

4 apply with respect to monthly benefits payable and annu5 ities accruing (and lump-sum payments in the case of

6 deaths occurring) after the fifth month following the

7 month in which this Act is enacted, on the basis of re8 quests filed (as provided in section 230 of the Social Secu9 rity Act, as added by the first section of this Act) on or

10 after the date of the enactment of this Act.

Æ