I

104TH CONGRESS

1ST SESSION H. R. 374

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 4, 1995

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 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Social Security Earn5 ings Test Repeal Act of 1995’’.
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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5 (42 U.S.C. 403) are repealed.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 ‘‘For

18 purposes of paragraphs (1), (2), and (3)’’; and

19 (D) by striking the last sentence;

20 (2) in subsection (e), by redesignating such sub21 section as subsection (c), and by striking ‘‘sub22 sections (c) and (d)’’ and inserting ‘‘subsection (b)’’;

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

24 subsection as subsection (d), and by striking ‘‘sub25 section (c)’’ each place it appears and inserting

26 ‘‘subsection (b)’’;
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1 (4) in subsection (i), by redesignating such sub2 section as subsection (e), and by striking ‘‘sub3 section (b), (c), (g), or (h)’’ and inserting ‘‘sub4 sections (b) or (d)’’; and

5 (5) in subsection (l), by redesignating such sub6 section as subsection (f), and by striking ‘‘subsection

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

8 SEC. 3. ADDITIONAL CONFORMING AMENDMENTS.

9 (a) PROVISIONS RELATING TO BENEFITS TERMI10 NATED UPON DEPORTATION.—Section 202(n)(1) of the

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

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

13 ‘‘Section 203(b)’’.

14 (b) PROVISIONS RELATING TO EXEMPTIONS FROM

15 REDUCTIONS BASED ON EARLY RETIREMENT.—

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

17 U.S.C. 402(q)(5)(B)) is amended by striking ‘‘sec18 tion 203(c)(2)’’ and inserting ‘‘section 203(b)(1)’’.

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

20 U.S.C. 402(q)(7)(A)) is amended by striking ‘‘de21 ductions under section 203(b), 203(c)(1), 203(d)(1),

22 or 222(b)’’ and inserting ‘‘deductions on account of

23 work under section 203 or deductions under section

24 222(b)’’.
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1 (c) PROVISIONS RELATING TO EXEMPTIONS FROM

2 REDUCTIONS BASED ON DISREGARD OF CERTAIN ENTI3 TLEMENTS TO CHILD’S INSURANCE BENEFITS.—

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

5 402(s)(1)) is amended by striking ‘‘paragraphs (2),

6 (3), and (4) of section 203(c)’’ and inserting ‘‘para7 graphs (1), (2), and (3) of section 203(b)’’.

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

9 402(s)(3)) is amended by striking ‘‘The last sen10 tence of subsection (c) of section 203, subsection

11 (f)(1)(C) of section 203, and subsections’’ and in12 serting ‘‘Subsections’’.

13 (d) PROVISIONS RELATING TO SUSPENSION OF

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

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

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

17 (e) PROVISIONS RELATING TO BENEFITS INCREASED

18 ON ACCOUNT OF DELAYED RETIREMENT.—Section

19 202(w)(2)(B)(ii) of such Act (42 U.S.C. 402(w)(2)(B)(ii))

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

21 (f) PROVISIONS RELATING TO REDUCTIONS IN BEN22 EFITS BASED ON MAXIMUM BENEFITS.—Section

23 203(a)(3)(B)(iii) of such Act (42 U.S.C.

24 403(a)(3)(B)(iii)) is amended by striking ‘‘and subsections

25 (b), (c), and (d)’’ and inserting ‘‘and subsection (b)’’.
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1 (g) PROVISIONS RELATING TO PENALTIES FOR MIS2 REPRESENTATIONS CONCERNING EARNINGS FOR PERI3 ODS SUBJECT TO DEDUCTIONS ON ACCOUNT OF WORK.—

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

5 408(a)(1)(C)) is amended by striking ‘‘under section

6 203(f) of this title for purposes of deductions from bene7 fits’’ and inserting ‘‘under section 203 for purposes of de8 ductions from benefits on account of work’’.

9 (h) PROVISIONS TAKING INTO ACCOUNT EARNINGS

10 IN DETERMINING BENEFIT COMPUTATION YEARS.—

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

12 215(b)(2)(A) of such Act (42 U.S.C. 415(b)(2)(A)) is

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

14 203(f)(5) in such year’’ and inserting ‘‘no wages, and no

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

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

17 (i) PROVISIONS RELATING TO ROUNDING OF BENE18 FITS.—Section 215(g) of such Act (42 U.S.C. 415(g)) is

19 amended by striking ‘‘and any deduction under section

20 203(b)’’.

21 (j) PROVISIONS RELATING TO EARNINGS TAKEN

22 INTO ACCOUNT IN DETERMINING SUBSTANTIAL GAINFUL

23 ACTIVITY OF BLIND INDIVIDUALS.—The second sentence

24 of section 223(d)(4) of such Act (42 U.S.C. 423(d)(4))

25 is amended by striking ‘‘the exempt amount under section
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1 203(f)(8) which is applicable to individuals described in

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

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

4 been applicable under section 203(f)(8), to individuals de5 scribed in subparagraph (D) thereof, if subsections (b)

6 through (l) of section 203, as in effect for the last taxable

7 years ending before the date of the enactment of the Social

8 Security Earnings Test Repeal Act of 1995, had remained

9 in effect through the month in which such earnings were

10 derived’’.

11 (k) PROVISIONS DEFINING INCOME FOR PURPOSES

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

13 1382a(a)) is amended—

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

15 203(f)(5)(C)’’ in paragraph (1)(A) and inserting ‘‘as

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

17 and

18 (2) by adding at the end (after and below para19 graph (2)(F)) the following new sentences:

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

21 means wages as defined in section 209, but computed

22 without regard to the limitations as to amounts of remu23 neration specified in paragraphs (1), (6)(B), (6)(C),

24 (7)(B), and (8) of section 209(a). In making the computa25 tion under the preceding sentence, (A) services which do
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1 not constitute employment as defined in section 210, per2 formed within the United States by an individual as an

3 employee or performed outside the United States in the

4 active military or naval services of the United States, shall

5 be deemed to be employment as so defined if the remu6 neration for such services is not includible in computing

7 the individual’s net earnings or net loss from self-employ8 ment for purposes of title II, and (B) the term ‘wages’

9 shall be deemed not to include (i) the amount of any pay10 ment made to, or on behalf of, an employee or any of his

11 or her dependents (including any amount paid by an em12 ployer for insurance or annuities, or into a fund, to pro13 vide for any such payment) on account of retirement, or

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

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

16 after the termination of the employee’s employment rela17 tionship because of retirement after attaining an age spec18 ified in a plan referred to in section 209(m)(2) or in a

19 pension plan of the employer.’’.

20 (l) REPEAL OF DEDUCTIONS ON ACCOUNT OF WORK

21 UNDER THE RAILROAD RETIREMENT PROGRAM.—Section

22 2 of the Railroad Retirement Act of 1974 (45 U.S.C.

23 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 apply with respect to taxable years ending on or after the

4 date of the enactment of this Act.

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