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SEC. 404. AVAILABILITY OF FEDERAL AND STATE WORK IN-
CENTIVE SERVICES TO ADDITIONAL INDIVID-
UALS.
(a) FEDERAL WORK INCENTIVES OUTREACH PRO-
GRAM.—
(1) IN GENERAL.—Section 1149(c)(2) of the So-
cial Security Act (42 U.S.C. 1320b–20(c)(2)) is
amended to read as follows:
‘‘(2) DISABLED
BENEFICIARY.—The term ‘dis-
abled beneficiary’ means an individual—
‘‘(A) who is a disabled beneficiary as de-
fined in section 1148(k)(2) of this Act;
‘‘(B) who is receiving a cash payment de-
scribed in section 1616(a) of this Act or a sup-
plementary 
payment 
described 
in 
section
212(a)(3) of Public Law 93–66 (without regard
to whether such payment is paid by the Commis-
sioner pursuant to an agreement under section
1616(a) of this Act or under section 212(b) of
Public Law 93–66);
‘‘(C) who, pursuant to section 1619(b) of
this Act, is considered to be receiving benefits
under title XVI of this Act; or
‘‘(D) who is entitled to benefits under part
A of title XVIII of this Act by reason of the pe-
nultimate sentence of section 226(b) of this Act.’’.
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(2) EFFECTIVE DATE.—The amendment made by
this subsection shall apply with respect to grants, co-
operative agreements, or contracts entered into on or
after the date of the enactment of this Act.
(b) STATE GRANTS FOR WORK INCENTIVES ASSIST-
ANCE.—
(1) DEFINITION OF DISABLED BENEFICIARY.—
Section 1150(g)(2) of such Act (42 U.S.C. 1320b–
21(g)(2)) is amended to read as follows:
‘‘(2) DISABLED
BENEFICIARY.—The term ‘dis-
abled beneficiary’ means an individual—
‘‘(A) who is a disabled beneficiary as de-
fined in section 1148(k)(2) of this Act;
‘‘(B) who is receiving a cash payment de-
scribed in section 1616(a) of this Act or a sup-
plementary 
payment 
described 
in 
section
212(a)(3) of Public Law 93–66 (without regard
to whether such payment is paid by the Commis-
sioner pursuant to an agreement under section
1616(a) of this Act or under section 212(b) of
Public Law 93–66);
‘‘(C) who, pursuant to section 1619(b) of
this Act, is considered to be receiving benefits
under title XVI of this Act; or
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‘‘(D) who is entitled to benefits under part
A of title XVIII of this Act by reason of the pe-
nultimate sentence of section 226(b) of this Act.’’.
(2) ADVOCACY OR OTHER SERVICES NEEDED TO
MAINTAIN
GAINFUL
EMPLOYMENT.—Section
1150(b)(2) of such Act (42 U.S.C. 1320b–21(b)(2)) is
amended by striking ‘‘secure or regain’’ and inserting
‘‘secure, maintain, or regain’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply with respect to pay-
ments provided after the date of the enactment of this
Act.
SEC. 405. TECHNICAL AMENDMENT CLARIFYING TREAT-
MENT FOR CERTAIN PURPOSES OF INDI-
VIDUAL WORK PLANS UNDER THE TICKET TO
WORK AND SELF-SUFFICIENCY PROGRAM.
(a) IN GENERAL.—Section 1148(g)(1) of the Social Se-
curity Act (42 U.S.C. 1320b–19(g)(1)) is amended by add-
ing at the end, after and below subparagraph (E), the fol-
lowing:
‘‘An individual work plan established pursuant to
this subsection shall be treated, for purposes of section
51(d)(6)(B)(i) of the Internal Revenue Code of 1986,
as an individualized written plan for employment
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under a State plan for vocational rehabilitation serv-
ices approved under the Rehabilitation Act of 1973.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect as if included in section 505
of the Ticket to Work and Work Incentives Improvement
Act of 1999 (Public Law 106–170; 113 Stat. 1921).
SEC. 406. GAO STUDY REGARDING THE TICKET TO WORK
AND SELF-SUFFICIENCY PROGRAM.
(a) GAO REPORT.—Not later than 12 months after the
date of enactment of this Act, the Comptroller General of
the United States shall submit a report to Congress regard-
ing the Ticket to Work and Self-Sufficiency Program estab-
lished under section 1148 of the Social Security Act (42
U.S.C. 1320b–19) that—
(1) examines the annual and interim reports
issued by States, the Ticket to Work and Work Incen-
tives Advisory Panel established under section 101(f)
of the Ticket to Work and Work Incentives Improve-
ment Act of 1999 (42 U.S.C. 1320b–19 note), and the
Commissioner of Social Security regarding such pro-
gram;
(2) assesses the effectiveness of the activities car-
ried out under such program; and
(3) recommends such legislative or administra-
tive changes as the Comptroller General determines
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are appropriate to improve the effectiveness of such
program.
SEC. 407. REAUTHORIZATION OF APPROPRIATIONS FOR
CERTAIN WORK INCENTIVES PROGRAMS.
(a) BENEFITS PLANNING, ASSISTANCE, AND OUT-
REACH.—Section 1149(d) of the Social Security Act (42
U.S.C. 1320b–20(d)) is amended by striking ‘‘2004’’ and
inserting ‘‘2009’’.
(b) PROTECTION AND ADVOCACY.—Section 1150(h) of
the Social Security Act (42 U.S.C. 1320b–21(h)) is amend-
ed by striking ‘‘2004’’ and inserting ‘‘2009’’.
Subtitle B—Miscellaneous
Amendments
SEC. 411. ELIMINATION OF TRANSCRIPT REQUIREMENT IN
REMAND CASES FULLY FAVORABLE TO THE
CLAIMANT.
(a) IN GENERAL.—Section 205(g) of the Social Secu-
rity Act (42 U.S.C. 405(g)) is amended in the sixth sen-
tence by striking ‘‘and a transcript’’ and inserting ‘‘and,
in any case in which the Commissioner has not made a
decision fully favorable to the individual, a transcript’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply with respect to final determinations
issued (upon remand) on or after the date of the enactment
of this Act.
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SEC. 412. NONPAYMENT OF BENEFITS UPON REMOVAL
FROM THE UNITED STATES.
(a) IN GENERAL.—Section 202(n) of the Social Secu-
rity Act (42 U.S.C. 402(n)) is amended—
(1) in paragraph (1), by striking ‘‘section 241(a)
(other than under paragraph (1)(C) or (1)(E) thereof)
of the Immigration and Nationality Act’’ and insert-
ing ‘‘section 237(a) of the Immigration and Nation-
ality Act (other than under paragraph (1)(C) of such
section) or under section 212(a)(6)(A) of such Act’’;
(2) in paragraph (2), by striking ‘‘section 241(a)
of the Immigration and Nationality Act (other than
under paragraph (1)(C) or (1)(E) thereof)’’ and in-
serting ‘‘section 237(a) of the Immigration and Na-
tionality Act (other than under paragraph (1)(C) of
such section) or under section 212(a)(6)(A) of such
Act’’;
(3) in paragraph (3), by striking ‘‘paragraph
(19) of section 241(a) of the Immigration and Nation-
ality Act (relating to persecution of others on account
of race, religion, national origin, or political opinion,
under the direction of or in association with the Nazi
government of Germany or its allies) shall be consid-
ered to have been deported under such paragraph
(19)’’ and inserting ‘‘paragraph (4)(D) of section
241(a) of the Immigration and Nationality Act (re-
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(A) subsection (a)(1) shall apply to individ-
uals with respect to whom the Commissioner of
Social Security receives a removal notice after
the date of the enactment of this Act;
(B) subsection (a)(2) shall apply with re-
spect to notifications of removals received by the
Commissioner of Social Security after the date of
enactment of this Act; and
(C) subsection (a)(3) shall be effective as if
enacted on March 1, 1991.
(2) SUBSEQUENT
CORRECTION
OF
CROSS-REF-
ERENCE AND TERMINOLOGY.—The amendments made
by subsections (a)(4) and (b)(1) shall be effective as
if enacted on April 1, 1997.
(3) REFERENCES TO THE SECRETARY OF HOME-
LAND
SECURITY.—The amendment made by sub-
section (b)(2) shall be effective as if enacted on March
1, 2003.
SEC. 413. REINSTATEMENT OF CERTAIN REPORTING RE-
QUIREMENTS.
Section 3003(a)(1) of the Federal Reports Elimination
and Sunset Act of 1995 (31 U.S.C. 1113 note) shall not
apply to any report required to be submitted under any
of the following provisions of law:
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(1)(A) Section 201(c)(2) of the Social Security
Act (42 U.S.C. 401(c)(2)).
(B) Section 1817(b)(2) of the Social Security Act
(42 U.S.C. 1395i(b)(2)).
(C) Section 1841(b)(2) of the Social Security Act
(42 U.S.C. 1395t(b)(2)).
(2)(A) Section 221(c)(3)(C) of the Social Secu-
rity Act (42 U.S.C. 421(c)(3)(C)).
(B) Section 221(i)(3) of the Social Security Act
(42 U.S.C. 421(i)(3)).
SEC. 414. CLARIFICATION OF DEFINITIONS REGARDING
CERTAIN SURVIVOR BENEFITS.
(a) WIDOWS.—Section 216(c) of the Social Security
Act (42 U.S.C. 416(c)) is amended—
(1) by redesignating subclauses (A) through (C)
of clause (6) as subclauses (i) through (iii), respec-
tively;
(2) by redesignating clauses (1) through (6) as
clauses (A) through (F), respectively;
(3) in clause (E) (as redesignated), by inserting
‘‘except as provided in paragraph (2),’’ before ‘‘she
was married’’;
(4) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(5) by adding at the end the following:
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‘‘(2) The requirements of paragraph (1)(E) in connec-
tion with the surviving wife of an individual shall be treat-
ed as satisfied if—
‘‘(A) the individual had been married prior to
the individual’s marriage to the surviving wife,
‘‘(B) the prior wife was institutionalized during
the individual’s marriage to the prior wife due to
mental incompetence or similar incapacity,
‘‘(C) during the period of the prior wife’s insti-
tutionalization, the individual would have divorced
the prior wife and married the surviving wife, but the
individual did not do so because such divorce would
have been unlawful, by reason of the prior wife’s in-
stitutionalization, under the laws of the State in
which the individual was domiciled at the time (as
determined based on evidence satisfactory to the Com-
missioner of Social Security),
‘‘(D) the prior wife continued to remain institu-
tionalized up to the time of her death, and
‘‘(E) the individual married the surviving wife
within 60 days after the prior wife’s death.’’.
(b) WIDOWERS.—Section 216(g) of such Act (42
U.S.C. 416(g)) is amended—
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(1) by redesignating subclauses (A) through (C)
of clause (6) as subclauses (i) through (iii), respec-
tively;
(2) by redesignating clauses (1) through (6) as
clauses (A) through (F), respectively;
(3) in clause (E) (as redesignated), by inserting
‘‘except as provided in paragraph (2),’’ before ‘‘he was
married’’;
(4) by inserting ‘‘(1)’’ after ‘‘(g)’’; and
(5) by adding at the end the following:
‘‘(2) The requirements of paragraph (1)(E) in connec-
tion with the surviving husband of an individual shall be
treated as satisfied if—
‘‘(A) the individual had been married prior to
the individual’s marriage to the surviving husband,
‘‘(B) the prior husband was institutionalized
during the individual’s marriage to the prior husband
due to mental incompetence or similar incapacity,
‘‘(C) during the period of the prior husband’s in-
stitutionalization, the individual would have divorced
the prior husband and married the surviving hus-
band, but the individual did not do so because such
divorce would have been unlawful, by reason of the
prior husband’s institutionalization, under the laws
of the State in which the individual was domiciled at
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the time (as determined based on evidence satisfactory
to the Commissioner of Social Security),
‘‘(D) the prior husband continued to remain in-
stitutionalized up to the time of his death, and
‘‘(E) the individual married the surviving hus-
band within 60 days after the prior husband’s
death.’’.
(c) CONFORMING AMENDMENT.—Section 216(k) of
such Act (42 U.S.C. 416(k)) is amended by striking ‘‘clause
(5) of subsection (c) or clause (5) of subsection (g)’’ and
inserting ‘‘clause (E) of subsection (c)(1) or clause (E) of
subsection (g)(1)’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall be effective with respect to applications for ben-
efits under title II of the Social Security Act filed during
months ending after the date of the enactment of this Act.
SEC. 415. CLARIFICATION RESPECTING THE FICA AND SECA
TAX 
EXEMPTIONS 
FOR 
AN 
INDIVIDUAL
WHOSE EARNINGS ARE SUBJECT TO THE
LAWS OF A TOTALIZATION AGREEMENT PART-
NER.
Sections 1401(c), 3101(c), and 3111(c) of the Internal
Revenue Code of 1986 are each amended by striking ‘‘to
taxes or contributions for similar purposes under’’ and in-
serting ‘‘exclusively to the laws applicable to’’.
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SEC. 416. COVERAGE UNDER DIVIDED RETIREMENT SYSTEM
FOR PUBLIC EMPLOYEES IN KENTUCKY AND
LOUISIANA.
(a) IN GENERAL.—Section 218(d)(6)(C) of the Social
Security Act (42 U.S.C. 418(d)(6)(C)) is amended by in-
serting ‘‘Kentucky, Louisiana,’’ after ‘‘Illinois,’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) takes effect on January 1, 2003.
SEC. 417. COMPENSATION FOR THE SOCIAL SECURITY ADVI-
SORY BOARD.
(a) IN GENERAL.—Subsection (f) of section 703 of the
Social Security Act (42 U.S.C. 903(f)) is amended to read
as follows:
‘‘Compensation, Expenses, and Per Diem
‘‘(f) A member of the Board shall, for each day (includ-
ing traveltime) during which the member is attending meet-
ings or conferences of the Board or otherwise engaged in
the business of the Board, be compensated at the daily rate
of basic pay for level IV of the Executive Schedule. While
serving on business of the Board away from their homes
or regular places of business, members may be allowed trav-
el expenses, including per diem in lieu of subsistence, as
authorized by section 5703 of title 5, United States Code,
for persons in the Government employed intermittently.’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall be effective as of January 1, 2003.
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SEC. 418. 60-MONTH PERIOD OF EMPLOYMENT REQUIRE-
MENT FOR APPLICATION OF GOVERNMENT
PENSION OFFSET EXEMPTION.
(a) IN GENERAL.—Section 202(k) of the Social Secu-
rity Act (42 U.S.C. 402(k)) is amended by adding at the
end the following:
‘‘(5)(A) The amount of a monthly insurance benefit
of any individual for each month under subsection (b), (c),
(e), (f), or (g) (as determined after application of the provi-
sions of subsection (q) and the preceding provisions of this
subsection) shall be reduced (but not below zero) by an
amount equal to two-thirds of the amount of any monthly
periodic benefit payable to such individual for such month
which is based upon such individual’s earnings while in
the service of the Federal Government or any State (or po-
litical subdivision thereof, as defined in section 218(b)(2))
if, during any portion of the last 60 months of such service
ending with the last day such individual was employed by
such entity—
‘‘(i) such service did not constitute ‘employment’
as defined in section 210, or
‘‘(ii) such service was being performed while in
the service of the Federal Government, and constituted
‘employment’ as so defined solely by reason of—
‘‘(I) clause (ii) or (iii) of subparagraph (G)
of section 210(a)(5), where the lump-sum pay-
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ment described in such clause (ii) or the ces-
sation of coverage described in such clause (iii)
(whichever is applicable) was received or oc-
curred on or after January 1, 1988, or
‘‘(II) an election to become subject to the
Federal Employees’ Retirement System provided
in chapter 84 of title 5, United States Code, or
the Foreign Service Pension System provided in
subchapter II of chapter 8 of title I of the For-
eign Service Act of 1980 made pursuant to law
after December 31, 1987,
unless subparagraph (B) applies.
The amount of the reduction in any benefit under this sub-
paragraph, if not a multiple of $0.10, shall be rounded to
the next higher multiple of $0.10.
‘‘(B)(i) Subparagraph (A)(i) shall not apply with re-
spect to monthly periodic benefits based wholly on service
as a member of a uniformed service (as defined in section
210(m)).
‘‘(ii) Subparagraph (A)(ii) shall not apply with re-
spect to monthly periodic benefits based in whole or in part
on service which constituted ‘employment’ as defined in sec-
tion 210 if such service was performed for at least 60
months in the aggregate during the period beginning Janu-
ary 1, 1988, and ending with the close of the first calendar
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month as of the end of which such individual is eligible
for benefits under this subsection and has made a valid ap-
plication for such benefits.
‘‘(C) For purposes of this paragraph, any periodic ben-
efit which otherwise meets the requirements of subpara-
graph (A), but which is paid on other than a monthly basis,
shall be allocated on a basis equivalent to a monthly benefit
(as determined by the Commissioner of Social Security)
and such equivalent monthly benefit shall constitute a
monthly periodic benefit for purposes of subparagraph (A).
For purposes of this subparagraph, the term ‘periodic ben-
efit’ includes a benefit payable in a lump sum if it is a
commutation of, or a substitute for, periodic payments.’’.
(b) CONFORMING AMENDMENTS.—
(1) 
WIFE’S
INSURANCE
BENEFITS.—Section
202(b) of the Social Security Act (42 U.S.C. 402(b))
is amended—
(A) in paragraph (2), by striking ‘‘sub-
section (q) and paragraph (4) of this subsection’’
and inserting ‘‘subsections (k)(5) and (q)’’; and
(B) by striking paragraph (4) and redesig-
nating paragraph (5) as paragraph (4).
(2) HUSBAND’S INSURANCE BENEFITS.—Section
202(c) of the Social Security Act (42 U.S.C. 402(c))
is amended—
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(A) by striking paragraph (2) and redesig-
nating paragraphs (3) through (5) as para-
graphs (2) through (4), respectively; and
(B) in paragraph (2) as so redesignated, by
striking ‘‘subsection (q) and paragraph (2) of
this subsection’’ and inserting ‘‘subsections (k)(5)
and (q)’’.
(3) WIDOW’S
INSURANCE
BENEFITS.—Section
202(e) of the Social Security Act (42 U.S.C. 402(e))
is amended—
(A) in paragraph (2)(A), by striking ‘‘sub-
section (q), paragraph (7) of this subsection,’’
and inserting ‘‘subsection (k)(5), subsection (q),’’;
and
(B) by striking paragraph (7) and redesig-
nating paragraphs (8) and (9) as paragraphs
(7) and (8), respectively.
(4) WIDOWER’S INSURANCE BENEFITS.—
(A) IN GENERAL.—Section 202(f) of the So-
cial 
Security 
Act 
(42 
U.S.C. 
402(f)) 
is
amended—
(i) by striking paragraph (2) and re-
designating paragraphs (3) through (9) as
paragraphs (2) through (8), respectively;
and
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(ii) in paragraph (2) as so redesig-
nated, by striking ‘‘subsection (q), para-
graph (2) of this subsection,’’ and inserting
‘‘subsection (k)(5), subsection (q),’’.
(B) CONFORMING AMENDMENTS.—
(i) Section 202(f)(1)(B) of the Social
Security Act (42 U.S.C. 402(f)(1)(B)) is
amended by striking ‘‘paragraph (5)’’ and
inserting ‘‘paragraph (4)’’.
(ii) Section 202(f)(1)(F) of the Social
Security Act (42 U.S.C. 402(f)(1)(F)) is
amended by striking ‘‘paragraph (6)’’ and
‘‘paragraph (5)’’ (in clauses (i) and (ii))
and inserting ‘‘paragraph (5)’’ and ‘‘para-
graph (4)’’, respectively.
(iii) Section 202(f)(5)(A)(ii) of the So-
cial Security Act (as redesignated by sub-
paragraph (A)(i)) is amended by striking
‘‘paragraph (5)’’ and inserting ‘‘paragraph
(4)’’.
(iv) Section 202(k)(2)(B) of the Social
Security Act (42 U.S.C. 402(k)(2)(B)) is
amended by striking ‘‘or (f)(4)’’ each place
it appears and inserting ‘‘or (f)(3)’’.
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(v) Section 202(k)(3)(A) of the Social
Security Act (42 U.S.C. 402(k)(3)(A)) is
amended by striking ‘‘or (f)(3)’’ and insert-
ing ‘‘or (f)(2)’’.
(vi) Section 202(k)(3)(B) of the Social
Security Act (42 U.S.C. 402(k)(3)(B)) is
amended by striking ‘‘or (f)(4)’’ and insert-
ing ‘‘or (f)(3)’’.
(vii) Section 226(e)(1)(A)(i) of the So-
cial 
Security 
Act 
(42 
U.S.C.
426(e)(1)(A)(i)) is amended by striking
‘‘and 
202(f)(5)’’ 
and 
inserting 
‘‘and
202(f)(4)’’.
(5) MOTHER’S AND FATHER’S INSURANCE BENE-
FITS.—Section 202(g) of the Social Security Act (42
U.S.C. 402(g)) is amended—
(A) in paragraph (2), by striking ‘‘Except
as provided in paragraph (4) of this subsection,
such’’ and inserting ‘‘Such’’; and
(B) by striking paragraph (4).
(c) EFFECTIVE DATE AND TRANSITIONAL RULE.—
(1) IN
GENERAL.—The amendments made by
this section shall apply with respect to applications
for benefits under title II of the Social Security Act
filed on or after the first day of the first month that
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begins after the date of enactment of this Act, except
that such amendments shall not apply in connection
with monthly periodic benefits of any individual
based on earnings while in service described in section
202(k)(5)(A) of the Social Security Act (in the matter
preceding clause (i) thereof) if the last day of such
service occurs before July 1, 2004.
(2) TRANSITIONAL RULE.—In the case of any in-
dividual whose last day of service described in sub-
paragraph (A) of section 202(k)(5) of the Social Secu-
rity Act (as added by subsection (a) of this section)
occurs within 5 years after the date of enactment of
this Act—
(A) the 60-month period described in such
subparagraph (A) shall be reduced (but not to
less than 1 month) by the number of months of
such service (in the aggregate and without regard
to whether such months of service were contin-
uous) which—
(i) were performed by the individual
under the same retirement system on or be-
fore the date of enactment of this Act, and
(ii) constituted ‘‘employment’’ as de-
fined in section 210 of the Social Security
Act; and
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(B) months of service necessary to fulfill the
60-month period as reduced by subparagraph
(A) of this paragraph must be performed after
the date of enactment of this Act.
SEC. 419. DISCLOSURE TO WORKERS OF EFFECT OF WIND-
FALL ELIMINATION PROVISION AND GOVERN-
MENT PENSION OFFSET PROVISION.
(a) INCLUSION OF NONCOVERED EMPLOYEES AS ELI-
GIBLE INDIVIDUALS ENTITLED TO SOCIAL SECURITY AC-
COUNT STATEMENTS.—Section 1143(a)(3) of the Social Se-
curity Act (42 U.S.C. 1320b–13(a)(3)) is amended—
(1) by striking ‘‘who’’ after ‘‘an individual’’ and
inserting ‘‘who’’ before ‘‘has’’ in each of subpara-
graphs (A) and (B);
(2) by inserting ‘‘(i) who’’ after ‘‘(C)’’; and
(3) by inserting before the period the following:
‘‘, or (ii) with respect to whom the Commissioner has
information that the pattern of wages or self-employ-
ment income indicate a likelihood of noncovered em-
ployment’’.
(b) EXPLANATION
IN SOCIAL SECURITY ACCOUNT
STATEMENTS OF POSSIBLE EFFECTS OF PERIODIC BENE-
FITS UNDER STATE AND LOCAL RETIREMENT SYSTEMS ON
SOCIAL SECURITY BENEFITS.—Section 1143(a)(2) of the
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Social Security Act (42 U.S.C. 1320b–13(a)(2)) is
amended—
(1) in subparagraph (C), by striking ‘‘and’’ at
the end;
(2) in subparagraph (D), by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(E) in the case of an eligible individual de-
scribed in paragraph (3)(C)(ii), an explanation, in
language calculated to be understood by the average
eligible individual, of the operation of the provisions
under sections 202(k)(5) and 215(a)(7) and an expla-
nation of the maximum potential effects of such pro-
visions on the eligible individual’s monthly retire-
ment, survivor, and auxiliary benefits.’’.
(c) TRUTH IN RETIREMENT DISCLOSURE TO GOVERN-
MENTAL EMPLOYEES OF EFFECT OF NONCOVERED EM-
PLOYMENT ON BENEFITS UNDER TITLE II.—Section 1143
of the Social Security Act (42 U.S..C. 1320b–13) is amend-
ed further by adding at the end the following:
‘‘Disclosure to Governmental Employees of Effect of
Noncovered Employment
‘‘(d)(1) In the case of any individual commencing em-
ployment on or after January 1, 2005, in any agency or
instrumentality of any State (or political subdivision there-
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of, as defined in section 218(b)(2)) in a position in which
service performed by the individual does not constitute ‘em-
ployment’ as defined in section 210, the head of the agency
or instrumentality shall ensure that, prior to the date of
the commencement of the individual’s employment in the
position, the individual is provided a written notice setting
forth an explanation, in language calculated to be under-
stood by the average individual, of the maximum effect on
computations of primary insurance amounts (under section
215(a)(7)) and the effect on benefit amounts (under section
202(k)(5)) of monthly periodic payments or benefits pay-
able based on earnings derived in such service. Such notice
shall be in a form which shall be prescribed by the Commis-
sioner of Social Security.
‘‘(2) The written notice provided to an individual pur-
suant to paragraph (1) shall include a form which, upon
completion and signature by the individual, would con-
stitute certification by the individual of receipt of the no-
tice. The agency or instrumentality providing the notice to
the individual shall require that the form be completed and
signed by the individual and submitted to the agency or
instrumentality and to the pension, annuity, retirement, or
similar fund or system established by the governmental en-
tity involved responsible for paying the monthly periodic
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payments or benefits, before commencement of service with
the agency or instrumentality.’’.
(d) EFFECTIVE DATES.—The amendments made by
subsections (a) and (b) of this section shall apply with re-
spect to social security account statements issued on or after
January 1, 2007.
SEC. 420. POST-1956 MILITARY WAGE CREDITS.
(a) PAYMENT
TO
THE SOCIAL SECURITY TRUST
FUNDS
IN
SATISFACTION
OF
OUTSTANDING
OBLIGA-
TIONS.—Section 201 of the Social Security Act (42 U.S.C.
401) is amended by adding at the end the following:
‘‘(n) Not later than July 1, 2004, the Secretary of the
Treasury shall transfer, from amounts in the general fund
of the Treasury that are not otherwise appropriated—
‘‘(1) $624,971,854 to the Federal Old-Age and
Survivors Insurance Trust Fund;
‘‘(2) $105,379,671 to the Federal Disability In-
surance Trust Fund; and
‘‘(3) $173,306,134 to the Federal Hospital Insur-
ance Trust Fund.
Amounts transferred in accordance with this subsection
shall be in satisfaction of certain outstanding obligations
for deemed wage credits for 2000 and 2001.’’.
(b) CONFORMING AMENDMENTS.—
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(1) REPEAL OF AUTHORITY FOR ANNUAL APPRO-
PRIATIONS
AND
RELATED
ADJUSTMENTS
TO
COM-
PENSATE THE SOCIAL SECURITY TRUST FUND FOR
MILITARY WAGE CREDITS.—Section 229 of the Social
Security Act (42 U.S.C. 429) is amended—
(A) by striking ‘‘(a)’’; and
(B) by striking subsection (b).
(2) AMENDMENT TO REFLECT THE TERMINATION
OF WAGE CREDITS EFFECTIVE AFTER CALENDAR YEAR
2001 BY SECTION 8134 OF PUBLIC LAW 107–117.—Sec-
tion 229(a)(2) of the Social Security Act (42 U.S.C.
429(a)(2)), as amended by paragraph (1), is amended
by inserting ‘‘and before 2002’’ after ‘‘1977’’.
SEC. 420A. ELIMINATION OF DISINCENTIVE TO RETURN-TO-
WORK FOR CHILDHOOD DISABILITY BENE-
FICIARIES.
(a) IN GENERAL.—Section 202(d)(6)(B) of the Social
Security Act (42 U.S.C. 402(d)(6)(B)) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘began’’; and
(2) by adding after ‘‘such disability,’’ the fol-
lowing: ‘‘or (ii) after the close of the 84th month fol-
lowing the month in which his most recent entitle-
ment to child’s insurance benefits terminated because
he ceased to be under such disability due to perform-
ance of substantial gainful activity,’’.
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(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall be effective with respect to benefits payable
for months beginning with the 7th month that begins after
the date of enactment of this Act.
Subtitle C—Technical Amendments
SEC. 421. TECHNICAL CORRECTION RELATING TO RESPON-
SIBLE AGENCY HEAD.
Section 1143 of the Social Security Act (42
U.S.C. 1320b–13) is amended—
(1) by striking ‘‘Secretary’’ the first place it ap-
pears and inserting ‘‘Commissioner of Social Secu-
rity’’; and
(2) by striking ‘‘Secretary’’ each subsequent place
it appears and inserting ‘‘Commissioner’’.
SEC. 422. TECHNICAL CORRECTION RELATING TO RETIRE-
MENT BENEFITS OF MINISTERS.
(a) IN GENERAL.—Section 211(a)(7) of the Social Se-
curity Act (42 U.S.C. 411(a)(7)) is amended by inserting
‘‘, but shall not include in any such net earnings from self-
employment the rental value of any parsonage or any par-
sonage allowance (whether or not excluded under section
107 of the Internal Revenue Code of 1986) provided after
the individual retires, or any other retirement benefit re-
ceived by such individual from a church plan (as defined
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in section 414(e) of such Code) after the individual retires’’
before the semicolon.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to years beginning before, on, or after
December 31, 1994.
SEC. 423. TECHNICAL CORRECTIONS RELATING TO DOMES-
TIC EMPLOYMENT.
(a) AMENDMENT TO INTERNAL REVENUE CODE.—Sec-
tion 3121(a)(7)(B) of the Internal Revenue Code of 1986
is amended by striking ‘‘described in subsection (g)(5)’’ and
inserting ‘‘on a farm operated for profit’’.
(b) AMENDMENT TO SOCIAL SECURITY ACT.—Section
209(a)(6)(B) 
of 
the 
Social 
Security 
Act 
(42
U.S.C. 409(a)(6)(B)) is amended by striking ‘‘described in
section 210(f)(5)’’ and inserting ‘‘on a farm operated for
profit’’.
(c) CONFORMING AMENDMENT.—Section 3121(g)(5) of
such Code and section 210(f)(5) of such Act (42
U.S.C. 410(f)(5)) are amended by striking ‘‘or is domestic
service in a private home of the employer’’.
SEC. 424. TECHNICAL CORRECTIONS OF OUTDATED REF-
ERENCES.
(a) CORRECTION OF CITATION RESPECTING THE TAX
DEDUCTION RELATING TO HEALTH INSURANCE COSTS OF
SELF-EMPLOYED INDIVIDUALS.—Section 211(a)(15) of the
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Social Security Act (42 U.S.C. 411(a)(15)) is amended by
striking ‘‘section 162(m)’’ and inserting ‘‘section 162(l)’’.
(b) ELIMINATION OF REFERENCE TO OBSOLETE 20-
DAY AGRICULTURAL WORK TEST.—Section 3102(a) of the
Internal Revenue Code of 1986 is amended by striking ‘‘and
the employee has not performed agricultural labor for the
employer on 20 days or more in the calendar year for cash
remuneration computed on a time basis’’.
SEC. 425. TECHNICAL CORRECTION RESPECTING SELF-EM-
PLOYMENT INCOME IN COMMUNITY PROP-
ERTY STATES.
(a) SOCIAL SECURITY ACT AMENDMENT.—Section
211(a)(5)(A) 
of 
the 
Social 
Security 
Act 
(42
U.S.C. 411(a)(5)(A)) is amended by striking ‘‘all of the
gross income’’ and all that follows and inserting ‘‘the gross
income and deductions attributable to such trade or busi-
ness shall be treated as the gross income and deductions
of the spouse carrying on such trade or business or, if such
trade or business is jointly operated, treated as the gross
income and deductions of each spouse on the basis of their
respective distributive share of the gross income and deduc-
tions;’’.
(b) INTERNAL REVENUE CODE
OF 1986 AMEND-
MENT.—Section 1402(a)(5)(A) of the Internal Revenue
Code of 1986 is amended by striking ‘‘all of the gross in-
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come’’ and all that follows and inserting ‘‘the gross income
and deductions attributable to such trade or business shall
be treated as the gross income and deductions of the spouse
carrying on such trade or business or, if such trade or busi-
ness is jointly operated, treated as the gross income and
deductions of each spouse on the basis of their respective
distributive share of the gross income and deductions; and’’.
SEC. 426. TECHNICAL AMENDMENTS TO THE RAILROAD RE-
TIREMENT AND SURVIVORS’ IMPROVEMENT
ACT OF 2001.
(a) QUORUM RULES.—Section 15(j)(7) of the Railroad
Retirement Act of 1974 (45 U.S.C. 231n(j)(7)) is amended
by striking ‘‘entire Board of Trustees’’ and inserting
‘‘Trustees then holding office’’.
(b) POWERS OF THE BOARD OF TRUSTEES.—Section
15(j)(4) of the Railroad Retirement Act of 1974 (45 U.S.C.
231n(j)(4)) is amended to read as follows:
‘‘(4) POWERS OF THE BOARD OF TRUSTEES.—
The Board of Trustees shall—
‘‘(A) retain independent advisers to assist it
in the formulation and adoption of its invest-
ment guidelines;
‘‘(B) invest assets of the Trust in a manner
consistent with such investment guidelines, either
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(b) EFFECTIVE DATE.—The amendment made by this
section shall be effective with respect to benefits payable for
months that begin on or after 1 year after the date of enact-
ment of this Act.
SEC. 433. EXCEPTION TO RETROSPECTIVE MONTHLY AC-
COUNTING FOR NONRECURRING INCOME.
(a) IN GENERAL.—Section 1611(c) of the Social Secu-
rity Act (42 U.S.C. 1382(c)) is amended by adding at the
end the following:
‘‘(9)(A) Notwithstanding paragraphs (1) and (2), any
nonrecurring income which is paid to an individual in the
first month of any period of eligibility shall be taken into
account in determining the amount of the benefit under this
title of such individual (and his eligible spouse, if any) only
for that month, and shall not be taken into account in deter-
mining the amount of the benefit for any other month.
‘‘(B) For purposes of subparagraph (A), payments to
an individual in varying amounts from the same or similar
source for the same or similar purpose shall not be consid-
ered to be nonrecurring income.’’.
(b) DELETION
OF OBSOLETE MATERIAL.—Section
1611(c)(2)(B) of the Social Security Act (42 U.S.C.
1382(c)(2)(B)) is amended to read as follows:
‘‘(B) in the case of the first month following a
period of ineligibility in which eligibility is restored