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 there-
under.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That subsections (b), (d), (f), (h), (j), and (k) of section
203 of the Social Security Act are repealed.
SEC. 2. (a) Subsection (c) of section 203 of the Social
Security Act is redesignated as subsection (b); and such
subsection as so redesignated is amended—
(1) by striking out ‘‘NONCOVERED WORK OUT-
SIDE THE UNITED STATES OR’’ in the heading;
(2) by striking out paragraph (1);
(3) by redesignating paragraphs (2), (3), and
(4) as paragraphs (1), (2), and (3), respectively;
(4) by striking out ‘‘For purposes of para-
graphs (2), (3), and (4)’’ and inserting in lieu there-
of ‘‘For purposes of paragraphs (1), (2), and (3)’’;
and
(5) by striking out the last sentence.
(b) Subsection (e) of such section 203 is redesignated
as subsection (c); and such subsection as so redesignated
is amended by striking out ‘‘subsections (c) and (d)’’ and
inserting in lieu thereof ‘‘subsection (b)’’.
(c) Subsection (g) of such section 203 is redesignated
as subsection (d); and such subsection as so redesignated
is amended by striking out ‘‘subsection (c)’’ each place it
appears and inserting in lieu thereof ‘‘subsection (b)’’.
(d) Subsection (i) of such section 203 is redesignated
as subsection (e); and such subsection as so redesignated
is amended by striking out ‘‘subsection (b), (c), (g), or
(h)’’ and inserting in lieu thereof ‘‘subsection (b) or (d)’’.
(e) Subsection (l) of such section 203 is redesignated
as subsection (f); and such subsection as so redesignated
is amended by striking out ‘‘subsection (g) or (h)(1)(A)’’
and inserting in lieu thereof ‘‘subsection (d)’’.
SEC. 3. (a) Section 202(j)(4)(B) of the Social Secu-
rity Act is amended by striking out clause (iv), and by
redesignating clause (v) as clause (iv).
(b) Section 202(n)(1) of such Act is amended by
striking out ‘‘Sections 203 (b), (c), and (d)’’ and inserting
in lieu thereof ‘‘Section 203(b)’’.
(c)(1) Section 202(q)(5)(B) of such Act is amended
by striking out ‘‘section 203(c)(2)’’ and inserting in lieu
thereof ‘‘section 203(b)(1)’’.
(2) Section 202(q)(7)(A) of such Act is amended by
striking out ‘‘deductions under section 203(b), 203(c)(1),
203(d)(1), or 222(b)’’ and inserting in lieu thereof ‘‘de-
ductions on account of work under section 203 or deduc-
tions under section 222(b)’’.
(d)(1) Section 202(s)(1) of such Act is amended by
striking out ‘‘paragraphs (2), (3), and (4) of section
203(c)’’ and inserting in lieu thereof ‘‘paragraphs (1), (2),
and (3) of section 203(b)’’.
(2) Section 202(s)(3) of such Act is amended by
striking out ‘‘The last sentence of subsection (c) of section
203, subsection (f)(1)(C) of section 203, and subsections’’
and inserting in lieu thereof ‘‘Subsections’’.
(e) Section 202(t)(7) of such Act is amended by strik-
ing out ‘‘Subsections (b), (c), and (d)’’ and inserting in
lieu thereof ‘‘Subsection (b)’’.
(f) Section 202(w)(2)(B)(ii) of such Act is amended
to read as follows:
‘‘(ii) such individual (I) was not enti-
tled to an old-age insurance benefit, (II)
suffered deductions, in amounts equal to
the amount of such benefit, under section
203(b) as in effect in the month or months
involved, or (III) would have suffered de-
ductions on account of work, in amounts
equal to the amount of such benefit (as de-
termined under regulations of the Sec-
retary), under subsections (b) through (l)
of section 203 as in effect immediately
prior to the enactment of this clause (III)
if such subsections (other than paragraph
(8) of subsection (f)) had remained in ef-
fect through such month or months.’’.
(g) Section 203(a)(3)(B)(iii) of such Act is amended
by striking out ‘‘and subsections (b), (c), and (d)’’ and
inserting in lieu thereof ‘‘and subsection (b)’’.
(h) Section 208(a)(3) of such Act is amended by
striking out ‘‘under section 203(f) of this title for purposes
of deductions from benefits’’ and inserting in lieu thereof
‘‘under section 203 for purposes of deductions from bene-
fits on account of work’’.
(i) Clause (I) in the last sentence of section
215(b)(2)(A) of such Act is amended by striking out ‘‘no
earnings as described in section 203(f)(5) in such year’’
and inserting in lieu thereof ‘‘no wages, and no net earn-
ings from self-employment (in excess of net loss from self-
employment), in such year’’.
(j) Section 215(g) of such Act is amended by striking
out ‘‘and any deduction under section 203(b)’’.
(k) The third sentence of section 223(d)(4) of such
Act is amended by striking out ‘‘the exempt amount under
section 203(f)(8) which is applicable to individuals de-
scribed in subparagraph (D) thereof’’ and inserting in lieu
thereof the following: ‘‘an amount equal to the exempt
amount which would have been applicable under section
203(f)(8), to individuals described in subparagraph (D)
thereof, if subsections (b) through (l) of section 203 as
in effect in December 1984 had remained in effect through
the month in which such earnings were derived’’.
(l) Section 1612(a) of such Act is amended—
(1) by striking out ‘‘as determined under sec-
tion 203(f)(5)(C)’’ in paragraph (1)(A) and insert-
ing in lieu thereof ‘‘as defined in the last sentence
of this subsection’’, and
(2) by adding at the end thereof the following
new sentence: ‘‘For purposes of paragraph (1)(A),
the term ‘‘wages’’ means wages as defined in section
209, but computed without regard to the limitations
as to amounts of remuneration specified in sub-
sections (a), (g)(2), (g)(3), (h)(2), and (j) of such
section; and in making such computation services
which do not constitute employment as defined in
section 210, performed within the United States by
an individual as an employee or performed outside
the United States in the active military or naval
service of the United States, shall be deemed to be
employment as so defined if the remuneration for
such services is not includible in computing the indi-
vidual’s net earnings or net loss from self-employ-
ment for purposes of title II; but such term does not
include (i) the amount of any payment made to or
on behalf of an employee or any of his dependents
(including any amount paid by an employer for in-
surance or annuities, or into a fund, to provide for
any such payment) on account of retirement, or (ii)
any payment or series of payments by an employer
to an employee or any of his dependents upon or
after the termination of the employee’s employment
relationship because of retirement after attaining an
age specified in a plan referred to in section
209(m)(2) or in a pension plan of the employer.’’.
(m) Section 2 of the Railroad Retirement Act of 1974
is amended by striking out subsections (f) and (g)(2).
SEC. 4. The amendments and repeals made by this
Act shall be effective with respect to taxable years ending
on and after the date of the enactment of this Act.
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