IIA
104TH CONGRESS
1ST SESSION
H. R. 2684
IN THE SENATE OF THE UNITED STATES
DECEMBER 6, 1995
Received; read twice and referred to the Committee on Finance
AN ACT
To amend title II of the Social Security Act to provide
for increases in the amounts of allowable earnings under
the social security earnings limit for individuals who
have attained retirement age, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Senior Citizens’ Right
to Work Act of 1995’’.
SEC. 2. INCREASES IN MONTHLY EXEMPT AMOUNT FOR
PURPOSES OF THE SOCIAL SECURITY EARN-
INGS LIMIT.
(a) INCREASE IN MONTHLY EXEMPT AMOUNT FOR
INDIVIDUALS
WHO
HAVE
ATTAINED
RETIREMENT
AGE.—Section 203(f)(8)(D) of the Social Security Act (42
U.S.C. 403(f)(8)(D)) is amended to read as follows:
‘‘(D) Notwithstanding any other provision of
this subsection, the exempt amount which is applica-
ble to an individual who has attained retirement age
(as defined in section 216(l)) before the close of the
taxable year involved shall be—
‘‘(i) for each month of any taxable year
ending 
after 
1995 
and 
before 
1997,
$1,166.662⁄3,
‘‘(ii) for each month of any taxable year
ending after 1996 and before 1998, $1,250.00,
‘‘(iii) for each month of any taxable year
ending 
after 
1997 
and 
before 
1999,
$1,333.331⁄3,
‘‘(iv) for each month of any taxable year
ending 
after 
1998 
and 
before 
2000,
$1,416.662⁄3,
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‘‘(v) for each month of any taxable year
ending after 1999 and before 2001, $1,500.00,
‘‘(vi) for each month of any taxable year
ending 
after 
2000 
and 
before 
2002,
$2,083.331⁄3, and
‘‘(vii) for each month of any taxable year
ending 
after 
2001 
and 
before 
2003,
$2,500.00.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 203(f)(8)(B)(ii) of such Act (42
U.S.C. 403(f)(8)(B)(ii)) is amended—
(A) by striking ‘‘the taxable year ending
after 1993 and before 1995’’ and inserting ‘‘the
taxable year ending after 2001 and before 2003
(with respect to individuals described in sub-
paragraph (D)) or the taxable year ending after
1993 and before 1995 (with respect to other in-
dividuals)’’; and
(B) in subclause (II), by striking ‘‘for
1992’’ and inserting ‘‘for 2000 (with respect to
individuals described in subparagraph (D)) or
1992 (with respect to other individuals)’’.
(2) The second sentence of section 223(d)(4)(A)
of such Act (42 U.S.C. 423(d)(4)(A)) is amended by
striking ‘‘the exempt amount under section 203(f)(8)
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which is applicable to individuals described in sub-
paragraph (D) thereof’’ and inserting the following:
‘‘an amount equal to the exempt amount which
would be applicable under section 203(f)(8), to indi-
viduals described in subparagraph (D) thereof, if
section 2 of the Senior Citizens’ Right to Work Act
of 1995 had not been enacted’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to taxable years end-
ing after 1995.
SEC. 3. ESTABLISHMENT OF DISABILITY INSURANCE CON-
TINUING DISABILITY REVIEW ADMINISTRA-
TION REVOLVING ACCOUNT.
(a) CONTINUING DISABILITY REVIEW ADMINISTRA-
TION REVOLVING ACCOUNT FOR TITLE II DISABILITY
BENEFITS
IN
THE FEDERAL DISABILITY INSURANCE
TRUST FUND.—
(1) IN GENERAL.—Section 201 of the Social
Security Act (42 U.S.C. 401) is amended by adding
at the end the following new subsection:
‘‘(n)(1) There is hereby created in the Federal Dis-
ability Insurance Trust Fund a Continuing Disability Re-
view Administration Revolving Account (hereinafter in
this subsection referred to as the ‘Account’). The Account
shall consist initially of $300,000,000 (which is hereby
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transferred to the Account from amounts otherwise avail-
able in such Trust Fund) and shall also consist thereafter
of such other amounts as may be transferred to it under
this subsection. The balance in the Account shall be avail-
able solely for expenditures certified under paragraph (2).
‘‘(2)(A) Before October 1 of each calendar year, the
Chief Actuary of the Social Security Administration
shall—
‘‘(i) estimate the present value of savings to the
Federal Old-Age and Survivors Insurance Trust
Fund, the Federal Disability Insurance Trust Fund,
the Federal Hospital Insurance Trust Fund, and the
Federal Supplementary Medical Insurance Trust
Fund which will accrue for all years as a result of
cessations of benefit payments resulting from con-
tinuing disability reviews carried out pursuant to the
requirements of section 221(i) during the fiscal year
ending on September 30 of such calendar year (in-
creased or decreased as appropriate to account for
deviations of estimates for prior fiscal years from
the actual amounts for such fiscal years), and
‘‘(ii) certify the amount of such estimate to the
Managing Trustee.
‘‘(B) Upon receipt of certification by the Chief Actu-
ary under subparagraph (A), the Managing Trustee shall
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transfer to the Account from amounts otherwise in the
Trust Fund an amount equal to the estimated savings so
certified.
‘‘(C) To the extent of available funds in the Account,
upon certification by the Chief Actuary that such funds
are currently required to meet expenditures necessary to
provide for continuing disability reviews required under
section 221(i), the Managing Trustee shall make available
to the Commissioner of Social Security from the Account
the amount so certified.
‘‘(D) The expenditures referred to in subparagraph
(C) shall include, but not be limited to, the cost of staffing,
training, purchase of medical and other evidence, and
processing related to appeals (including appeal hearings)
and to overpayments and related indirect costs.
‘‘(E) The Commissioner shall use funds made avail-
able pursuant to this paragraph solely for the purposes
described in subparagraph (C).’’.
(2) 
CONFORMING
AMENDMENT.—Section
201(g)(1)(A) of such Act (42 U.S.C. 401(g)(1)(A))
is amended in the last sentence by inserting ‘‘(other
than expenditures from available funds in the Con-
tinuing Disability Review Administration Revolving
Account in the Federal Disability Insurance Trust
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Fund made pursuant to subsection (n))’’ after ‘‘is
responsible’’ the first place it appears.
(3) ANNUAL
REPORT.—Section 221(i)(3) of
such Act (42 U.S.C. 421(i)(3)) is amended—
(A) by striking ‘‘and the number’’ and in-
serting ‘‘the number’’;
(B) by striking the period at the end and
inserting a comma; and
(C) by adding at the end the following:
‘‘and a final accounting of amounts transferred
to the Continuing Disability Review Adminis-
tration Revolving Account in the Federal Dis-
ability Insurance Trust Fund during the year,
the amount made available from such Account
during such year pursuant to certifications
made by the Chief Actuary of the Social Secu-
rity Administration under section 201(n)(2)(C),
and expenditures made by the Commissioner of
Social Security for the purposes described in
section 201(n)(2)(C) during the year, including
a comparison of the number of continuing dis-
ability reviews conducted during the year with
the estimated number of continuing disability
reviews upon which the estimate of such ex-
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penditures 
was 
made 
under 
section
201(n)(2)(A).’’.
(b) EFFECTIVE DATE AND SUNSET.—
(1) EFFECTIVE DATE.—The amendments made
by subsection (a) shall apply for fiscal years begin-
ning on or after October 1, 1995, and ending on or
before September 30, 2002.
(2) SUNSET.—Effective October 1, 2002, the
Continuing Disability Review Administration Revolv-
ing Account in the Federal Disability Insurance
Trust Fund shall cease to exist, any balance in such
Account shall revert to funds otherwise available in
such Trust Fund, and sections 201 and 221 of the
Social Security Act shall read as if the amendments
made by subsection (a) had not been enacted.
(c) OFFICE OF CHIEF ACTUARY IN THE SOCIAL SE-
CURITY ADMINISTRATION.—
(1) IN GENERAL.—Section 702 of such Act (42
U.S.C. 902) is amended—
(A) by redesignating subsections (c) and
(d) as subsections (d) and (e), respectively; and
(B) by inserting after subsection (b) the
following new subsection:
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‘‘Chief Actuary
‘‘(c)(1) There shall be in the Administration a Chief
Actuary, who shall be appointed by, and in direct line of
authority to, the Commissioner. The Chief Actuary shall
be appointed from individuals who have demonstrated, by
their education and experience, superior expertise in the
actuarial sciences. The Chief Actuary shall serve as the
chief actuarial officer of the Administration, and shall ex-
ercise such duties as are appropriate for the office of the
Chief Actuary and in accordance with professional stand-
ards of actuarial independence. The Chief Actuary may
be removed only for cause.
‘‘(2) The Chief Actuary shall be compensated at the
highest rate of basic pay for the Senior Executive Service
under section 5382(b) of title 5, United States Code.’’.
(2) EFFECTIVE
DATE
OF
SUBSECTION.—The
amendments made by this subsection shall take ef-
fect on the date of the enactment of this Act.
SEC. 4. ENTITLEMENT OF STEPCHILDREN TO CHILD’S IN-
SURANCE BENEFITS BASED ON ACTUAL DE-
PENDENCY ON STEPPARENT SUPPORT.
(a) REQUIREMENT OF ACTUAL DEPENDENCY FOR
FUTURE ENTITLEMENTS.—
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(1) IN GENERAL.—Section 202(d)(4) of the So-
cial Security Act (42 U.S.C. 402(d)(4)) is amended
by striking ‘‘was living with or’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall apply with respect to benefits
of individuals who become entitled to such benefits
for months after the third month following the
month in which this Act is enacted.
(b) TERMINATION OF CHILD’S INSURANCE BENE-
FITS BASED ON WORK RECORD OF STEPPARENT UPON
NATURAL PARENT’S DIVORCE FROM STEPPARENT.—
(1) IN GENERAL.—Section 202(d)(1) of the So-
cial Security Act (42 U.S.C. 402(d)(1)) is amend-
ed—
(A) by striking ‘‘or’’ at the end of subpara-
graph (F);
(B) by striking the period at the end of
subparagraph (G) and inserting ‘‘; or’’; and
(C) by inserting after subparagraph (G)
the following new subparagraph:
‘‘(H) if the benefits under this subsection are
based on the wages and self-employment income of
a stepparent who is subsequently divorced from such
child’s natural parent, the sixth month after the
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month in which the Commissioner of Social Security
receives formal notification of such divorce.’’.
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply with respect to notifi-
cations of divorces received by the Commissioner of
Social Security on or after the date of the enactment
of this Act.
SEC. 5. RECOMPUTATION OF BENEFITS AFTER NORMAL
RETIREMENT AGE.
(a) IN GENERAL.—Section 215(f)(2)(D)(i) of the So-
cial Security Act (42 U.S.C. 415(f)(2)(D)(i)) is amended
to read as follows:
‘‘(i) in the case of an individual who did not die
in the year with respect to which the recomputation
is made, for monthly benefits beginning with bene-
fits for January of—
‘‘(I) the second year following the year
with respect to which the recomputation is
made, in any such case in which the individual
is entitled to old-age insurance benefits, the in-
dividual has attained retirement age (as defined
in section 216(l)) as of the end of the year pre-
ceding the year with respect to which the re-
computation is made, and the year with respect
to which the recomputation is made would not
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be substituted in recomputation under this sub-
section for a benefit computation year in which
no wages or self-employment income have been
credited previously to such individual, or
‘‘(II) the first year following the year with
respect to which the recomputation is made, in
any other such case; or’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 215(f)(7) of such Act (42 U.S.C.
415(f)(7)) is amended by inserting ‘‘, and as
amended by section 5(b)(2) of the Senior Citizens’
Right to Work Act of 1995,’’ after ‘‘This subsection
as in effect in December 1978’’.
(2) Subparagraph (A) of section 215(f)(2) of
the Social Security Act as in effect in December
1978 and applied in certain cases under the provi-
sions of such Act as in effect after December 1978
is amended—
(A) by striking ‘‘in the case of an individ-
ual who did not die’’ and all that follows and
inserting ‘‘in the case of an individual who did
not die in the year with respect to which the re-
computation is made, for monthly benefits be-
ginning with benefits for January of—’’; and
(B) by adding at the end the following:
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‘‘(i) the second year following the year with
respect to which the recomputation is made, in
any such case in which the individual is entitled
to old-age insurance benefits, the individual has
attained age 65 as of the end of the year pre-
ceding the year with respect to which the re-
computation is made, and the year with respect
to which the recomputation is made would not
be substituted in recomputation under this sub-
section for a benefit computation year in which
no wages or self-employment income have been
credited previously to such individual, or
‘‘(ii) the first year following the year with
respect to which the recomputation is made, in
any other such case; or’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to recomputations of
primary insurance amounts based on wages paid and self
employment income derived after 1994 and with respect
to benefits payable after December 31, 1995.
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SEC. 6. ELIMINATION OF THE ROLE OF THE SOCIAL SECU-
RITY ADMINISTRATION IN PROCESSING AT-
TORNEY FEES.
(a) ACTIONS BEFORE THE COMMISSIONER.—Section
206(a) of the Social Security Act (42 U.S.C. 406(a)) is
amended—
(1) in paragraph (1), by striking the fourth and
fifth sentences;
(2) by striking paragraphs (2), (3), and (4);
(3) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2)(A) No person, agent, or attorney may charge in
excess of $4,000 (or, if higher, the amount set pursuant
to subparagraph (B)) for services performed in connection
with any claim before the Commissioner under this title,
or for services performed in connection with concurrent
claims before the Commissioner under this title and title
XVI.
‘‘(B) The Commissioner may increase the dollar
amount under subparagraph (A) whenever the Commis-
sioner determines that such an increase is warranted. The
Commissioner shall publish any such increased amount in
the Federal Register.
‘‘(C) Any agreement in violation of this paragraph
shall be void.
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‘‘(D) Whenever the Commissioner makes a favorable
determination in connection with any claim for benefits
under this title by a claimant who is represented by a per-
son, agent, or attorney, the Commissioner shall provide
the claimant and such person, agent, or attorney a written
notice of—
‘‘(i) the determination,
‘‘(ii) the dollar amount of any benefits payable
to the claimant, and
‘‘(iii) the maximum amount under paragraph
(2) that may be charged for services performed in
connection with such claim.’’; and
(4) by redesignating paragraph (5) as para-
graph (3).
(b) JUDICIAL PROCEEDINGS.—Section 206(b)(1) of
such Act (42 U.S.C. 406(b)(1)) is amended—
(1) in the first sentence of subparagraph (A),
by striking ‘‘representation,’’ and all that follows
and inserting the following: ‘‘representation. In de-
termining a reasonable fee, the court shall take into
consideration the amount of the fee, if any, that
such attorney, or any other person, agent, or attor-
ney, may charge the claimant for services performed
in connection with the claimant’s claim when it was
pending before the Commissioner.’’;
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(2) in the second sentence of subparagraph (A),
by striking ‘‘or certified for payment’’;
(3) by striking subparagraph (B); and
(4) by striking ‘‘(b)(1)(A)’’ and inserting
‘‘(b)(1)’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 223(h)(3) of such Act (42 U.S.C.
423(h)(3)) is amended by striking all that follows
‘‘obtained)’’ and inserting a period.
(2) Section 1127(a) of such Act (42 U.S.C.
1320a–6(a)) is amended by striking the last sen-
tence.
(3) Section 1631(d)(2)(A) of such Act (42
U.S.C. 1383(d)(2)(A)) is amended—
(A) by striking ‘‘(other than paragraph (4)
thereof)’’; and
(B) by striking all that follows ‘‘title II’’
and inserting a period.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to—
(1) any claim for benefits under the old-age,
survivors, and disability insurance program under
title II of the Social Security Act, the supplemental
security income program under title XVI of such
Act, or the black lung program under part B of the
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Black Lung Benefits Act that is initially filed on or
after the 60th day following the date of the enact-
ment of this Act, and
(2) any claim for such benefits filed before such
60th day by a claimant who is first represented by
any person, agent, or attorney in connection with
such claim on or after such 60th day.
SEC. 7. DENIAL OF DISABILITY BENEFITS TO DRUG AD-
DICTS AND ALCOHOLICS.
(a) AMENDMENTS RELATING TO TITLE II DISABIL-
ITY BENEFITS.—
(1) IN GENERAL.—Section 223(d)(2) of the So-
cial Security Act (42 U.S.C. 423(d)(2)) is amended
by adding at the end the following:
‘‘(C) An individual shall not be considered to be
disabled for purposes of this title if alcoholism or
drug addiction would (but for this subparagraph) be
a contributing factor material to the Commissioner’s
determination that the individual is disabled.’’.
(2) 
REPRESENTATIVE
PAYEE
REQUIRE-
MENTS.—
(A) Section 205(j)(1)(B) of such Act (42
U.S.C. 405(j)(1)(B)) is amended to read as fol-
lows:
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‘‘(B) In the case of an individual entitled to benefits
based on disability, the payment of such benefits shall be
made to a representative payee if the Commissioner of So-
cial Security determines that such payment would serve
the interest of the individual because the individual also
has an alcoholism or drug addiction condition (as deter-
mined by the Commissioner) that prevents the individual
from managing such benefits.’’.
(B) Section 205(j)(2)(C)(v) of such Act
(42 U.S.C. 405(j)(2)(C)(v)) is amended by
striking ‘‘entitled to benefits’’ and all that fol-
lows through ‘‘under a disability’’ and inserting
‘‘described in paragraph (1)(B)’’.
(C) Section 205(j)(2)(D)(ii)(II) of such
Act (42 U.S.C. 405(j)(2)(D)(ii)(II)) is amended
by striking all that follows ‘‘15 years, or’’ and
inserting ‘‘described in paragraph (1)(B).’’.
(D) Section 205(j)(4)(A)(i)(II) (42 U.S.C.
405(j)(4)(A)(ii)(II)) is amended by striking
‘‘entitled to benefits’’ and all that follows
through ‘‘under a disability’’ and inserting ‘‘de-
scribed in paragraph (1)(B)’’.
(3) TREATMENT REFERRALS FOR INDIVIDUALS
WITH AN ALCOHOLISM OR DRUG ADDICTION CONDI-
TION.—Section 222 of such Act (42 U.S.C. 422) is
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amended by adding at the end the following new
subsection:
‘‘Treatment Referrals for Individuals with an Alcoholism
or Drug Addiction Condition
‘‘(e) In the case of any individual whose benefits
under this title are paid to a representative payee pursu-
ant to section 205(j)(1)(B), the Commissioner of Social
Security shall refer such individual to the appropriate
State agency administering the State plan for substance
abuse treatment services approved under subpart II of
part B of title XIX of the Public Health Service Act (42
U.S.C. 300x–21 et seq.).’’.
(4) CONFORMING AMENDMENT.—Subsection (c)
of section 225 of such Act (42 U.S.C. 425(c)) is re-
pealed.
(5) EFFECTIVE DATES.—
(A) The amendments made by paragraphs
(1) and (4) shall apply with respect to monthly
insurance benefits under title II of the Social
Security Act based on disability for months be-
ginning after the date of the enactment of this
Act, except that, in the case of individuals who
are entitled to such benefits for the month in
which this Act is enacted, such amendments
shall apply only with respect to such benefits
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for months beginning on or after January 1,
1997.
(B) The amendments made by paragraphs
(2) and (3) shall apply with respect to benefits
for which applications are filed on or after the
date of the enactment of this Act.
(C) If an individual who is entitled to
monthly insurance benefits under title II of the
Social Security Act based on disability for the
month in which this Act is enacted and whose
entitlement to such benefits would terminate by
reason of the amendments made by this sub-
section reapplies for benefits under title II of
such Act (as amended by this Act) based on
disability within 120 days after the date of the
enactment of this Act, the Commissioner of So-
cial Security shall, not later than January 1,
1997, complete the entitlement redetermination
with respect to such individual pursuant to the
procedures of such title.
(b) AMENDMENTS RELATING TO SSI BENEFITS.—
(1) IN GENERAL.—Section 1614(a)(3) of the
Social Security Act (42 U.S.C. 1382c(a)(3)) is
amended by adding at the end the following:
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‘‘(I) Notwithstanding subparagraph (A), an individ-
ual shall not be considered to be disabled for purposes of
this title if alcoholism or drug addiction would (but for
this subparagraph) be a contributing factor material to
the Commissioner’s determination that the individual is
disabled.’’.
(2) 
REPRESENTATIVE
PAYEE
REQUIRE-
MENTS.—
(A) Section 1631(a)(2)(A)(ii)(II) of such
Act (42 U.S.C. 1383(a)(2)(A)(ii)(II)) is amend-
ed to read as follows:
‘‘(II) In the case of an individual eligible for benefits
under this title by reason of disability, the payment of
such benefits shall be made to a representative payee if
the Commissioner of Social Security determines that such
payment would serve the interest of the individual because
the individual also has an alcoholism or drug addiction
condition (as determined by the Commissioner) that pre-
vents the individual from managing such benefits.’’.
(B) Section 1631(a)(2)(B)(vii) of such Act
(42 U.S.C. 1383(a)(2)(B)(vii)) is amended by
striking ‘‘eligible for benefits’’ and all that fol-
lows through ‘‘is disabled’’ and inserting ‘‘de-
scribed in subparagraph (A)(ii)(II)’’.
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(C) Section 1631(a)(2)(B)(ix)(II) of such
Act 
(42 
U.S.C. 
1383(a)(2)(B)(ix)(II)) 
is
amended by striking all that follows ‘‘15 years,
or’’ and inserting ‘‘described in subparagraph
(A)(ii)(II).’’.
(D) Section 1631(a)(2)(D)(i)(II) of such
Act (42 U.S.C. 1383(a)(2)(D)(i)(II)) is amend-
ed by striking ‘‘eligible for benefits’’ and all
that follows through ‘‘is disabled’’ and inserting
‘‘described in subparagraph (A)(ii)(II)’’.
(3) TREATMENT
SERVICES
FOR
INDIVIDUALS
WITH A SUBSTANCE ABUSE CONDITION.—Title XVI
of such Act (42 U.S.C. 1381 et seq.) is amended by
adding at the end the following new section:
‘‘TREATMENT SERVICES FOR INDIVIDUALS WITH A
SUBSTANCE ABUSE CONDITION
‘‘SEC. 1636. In the case of any individual whose bene-
fits under this title are paid to a representative payee pur-
suant to section 1631(a)(2)(A)(ii)(II), the Commissioner
of Social Security shall refer such individual to the appro-
priate State agency administering the State plan for sub-
stance abuse treatment services approved under subpart
II of part B of title XIX of the Public Health Service Act
(42 U.S.C. 300x–21 et seq.).’’.
(4) CONFORMING AMENDMENTS.—
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(A) Section 1611(e) of such Act (42
U.S.C. 1382(e)) is amended by striking para-
graph (3).
(B) Section 1634 of such Act (42 U.S.C.
1383c) is amended by striking subsection (e).
(5) EFFECTIVE DATES.—
(A) The amendments made by paragraphs
(1) and (4) shall apply with respect to supple-
mental security income benefits under title XVI
of the Social Security Act based on disability
for months beginning after the date of the en-
actment of this Act, except that, in the case of
individuals who are eligible for such benefits for
the month in which this Act is enacted, such
amendments shall apply only with respect to
such benefits for months beginning on or after
January 1, 1997.
(B) The amendments made by paragraphs
(2) and (3) shall apply with respect to supple-
mental security income benefits under title XVI
of the Social Security Act for which applica-
tions are filed on or after the date of the enact-
ment of this Act.
(C) If an individual who is eligible for sup-
plemental security income benefits under title