An Act to amend title II of the Social Security Act to provide full retroactivity for disability determinations, to extend the period within which ministers may elect coverage, and to validate wages erroneously reported for certain engineering aids employed by soil and water conservation districts in Oklahoma, and for other purposes
PL 88-650 (H.R.9393), enacted 10/13/1964

78 STAT. ] 
PUBLIC LAW 88-650-OCT. 13, 1964 
1075 
Public Law 88-650 
AN A C T 
October 13, 1964 
To amend title II of the Social Security Act to provide full retroactivity for dis- 
[H. R. 9393] 
ability determinations, to extend the period within which ministers may elect 
coverage, and to validate wages erroneously reported for certain engineering 
aides employed by soil and water conservation districts in Oklahoma, and for 
other purposes. 
Be it enoMed hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That (a) section Act^^lm ^d^"'"t^ 
216(i) (2) of the Social Security Act is amended by striking out the es'st^t.^io'so! 
third sentence and inserting in lieu thereof the following: "A period of 
42 use 4i6. 
disability shall (subject to section 223 (a) (3)) begin— 
pe^iodf""^ 
" (A) on the day the disability began, but only if the individual 
satisfies the requirements of paragraph (3) on such day; or 
"(B) if such individual does not satisfy the requirements of 
paragraph (3) on such day, then on the first day of the first 
quarter thereafter in which he satisfies such requirements." 
(b) Section 216 (i) (3) of such Act is amended by striking out "of 
paragraphs (2) and (4)" and inserting in lieu thereof "of paragraph 
(2)". 
(c) Section 216 (i) (4) of such Act is repealed. 
Repeal. 
(d) (1) The amendments made by subsections (a), (b), and (c) 
shall apply in the case of applications for disability determinations 
under section 216(i) of the Social Security Act filed after the month 
following the month in which this Act is enacted. 
(2) Except as provided in the succeeding paragraphs, such amend-
ments shall also apply, and as though such amendments had been 
enacted on July 1, 1962, in the case of applications for disability 
determinations filed under section 216(i) or the Social Security Act 
during the period beginning July 1, 1962, and ending with the close 
of the month followmg the month in which this Act is enacted, by 
an individual who— 
(A) has been under a disability (as defined in such section 
216(i)) continuously since he filed such application and up to 
(i) the first day of the second month following the month in 
which this Act is enacted or (ii) if earlier, the first day of the 
month in which he attained the age of 65, and 
(B) is living on the day specified in subparagraph (A) (i). 
(3) In the case of an individual to whom paragraph (2) applies 
and who filed an application for disability insurance benefits under 
section 223 of the Social Security Act during the period specified in 
^° ^g^- ®
2
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such paragraph— 
(A) it such individual was under a disability (as defined in 
•section 223(c) of such Act) throughout such period and was not 
entitled to disability insurance benefits under such section 223 
for any month in such period (except for the amendments made 
by this section), such application and any application filed 
during such period for benefits under section 202 of the Social 
Security Act on the basis of the wages and self-employment 
^^ ^*^^- ^^^2-
income of such individual shall, notwithstanding section 202(j) 
(2) and the first sentence of section 223(b), be deemed an effec-
tive application, or 
(B) if such individual was entitled (without the application 
of this section) to disability insurance benefits under section 223 
for a continuous period of months immediately preceding— 
(i) the second month following the month in which this 
Act was enacted, or 
(ii) if earlier, the month in which he became entitled to 
benefits under section 202(a), 
1076 
PUBLIC LAW 88-650-OCT. 13, 1%4 
[78 STAT. 
42 u s e 401-
425. 
64 Stat. 482. 
42 u s e 402. 
75 Stat. 131. 
70 Stat. 815. 
42 u s e 423. 
75 Stat. 134. 
Ministers, cov-
erage. 
71 Stat. 521; 
74 Stat. 926. 
26 u s e 1402. 
his primary insurance amount shall be recomputed, but only if 
such amount would be increased solely by reason of the enact-
ment of this section. 
(4) No monthly insurance benefits, and no increase in monthly 
insurance benefits, may be paid under title I I of the Social Security 
Act by reason of the enactment of this section for any month before 
the eleventh montli before the month in which this Act is enacted. 
(5) In the case of an individual (A) who is entitled under section 
202 of the Social Security Act (but without the application of sub-
section (j) (1) of such section) to a widow's, widower's, or parent's 
insurance benefit, or to an old-age, wife's, or husband's insurance 
benefit which is reduced under section 202 (q) of such Act, for any 
month in tlie period referred to in paragraph (2) of this subsection, 
(B) who was under a disability (as defined in section 223(c) of the 
Social Security Act) which began prior to the sixth month before 
the first month for which the benefits referred to in clause (A) are 
payable and which continued through the month following the 
month in which this Act is enacted, and (C) who files an application 
for disability insurance benefits under section 223(a)(1) of the 
Social Security Act— 
(i) subsection (a) (3) of section 223 of the Social Security 
Act shall not prevent him from being entitled to such disability 
insurance benefits ; 
(ii) the provisions of subsection (a) (1) of such section 223 ter-
minating entitlement to disability insurance benefits by reason of 
entitlement to old-age insurance benefits shall not apply with 
respect to him unless and until he again becomes entitled to such 
old-age insurance benefits under the provisions of section 202 of 
such Act; 
(iii) such individual shall, for any month for which he is there-
by entitled to both old-age insurance benefits and disability insur-
ance benefits, be entitled only to such disability insurance bene-
fits ; and 
(iv) in case the benefits reduced under subsection (q) of section 
202 of such Act are old-age insurance benefits (I) such old-age 
insurance benefits for the months in the period referred to in para-
graph (2) of this subsection shall not be recomputed solely by 
reason of the enactment of this section, and, if otherwise recom-
puted, the provisions of and amendments made by this section 
shall not apply to such recomputation; and (II) the months for 
which he received such old-age insurance benefits before or during 
the period for which he becomes entitled, by reason of such enact-
ment, to disability insurance benefits under such section 223 and 
the months for which he received such disability insurance benefits 
shall be excluded from the "reduction period" and the "adjusted 
reduction period", as defined in paragraphs (5) and (6), respec-
tively, of such subsection (q) for purposes of determining the 
amount of the old-age insurance benefits to which he may subse-
quently become entitled. 
(6) The entitlement of any individual to benefits under section 202 
of the Social Security Act shall not be terminated solely by reason 
of the enactment of this section, except where such individual is entitled 
to benefits under section 202 (a) or 223 of such Act in an amount which 
(but for this subsection) would have required termination of such 
benefits under such section 202. 
SEC. 2. (a) Clause (B) of section 1402(e) (2) of the Internal Reve-
nue Code of 1954 (relating to time for filing waiver certificate by 
ministers, members of religious orders, and Christian Science prac-
titioners) is amended by striking out "his second taxable year ending 
78 STAT. ] 
PUBLIC LAW 88-650-OCT. 13, 1964 
1077 
after 1959" and inserting in lieu thereof "his second taxable year 
ending after 1962". 
(b) Section 1402(e)(3) of such Code (relating to effective date 
of certificate) is amended by adding at the end thereof the following 
new subparagraph: 
"(C) Notwithstanding the first sentence of 
subparagraph 
(A), if an individual files a certificate after the date of the 
enactment of this subparagraph and on or before the due date 
of the return (including any extension thereof) for his second 
taxable year ending after 1962, such certificate shall be effective 
for his first taxable year ending after 1961 and all succeeding 
years." 
(c) The amendments made by subsections (a) and (b) shall be 
applicable only with respect to certificates filed pursuant to section 
1402(e) of the Internal Revenue Code of 1954 after the date of the 
enactment of this Act; except that no monthly benefits under title I I 
of the Social Security Act for the month in which this Act is enacted 
or any prior month shall be payable or increased by reason of such 
amendments. 
SEC. 3. For purposes of the agreement under section 218 of the 
Social Security Act entered into by the State of Oklahoma, remunera-
tion paid to district engineering aides of soil and water conservation 
districts of the State of Oklahoma which was reported by the State as 
amounts paid to such aides as employees of the State for services per-
formed by them during the period beginning January 1, 1951, and 
ending with the close of June 30, 1962, shall be deemed to have been 
paid to such aides for services performed by them in the employ of 
the State. 
SEC. 4. (a) Section 209 of the Social Security Act (relating to 
definition of wages) is amended— 
(1) by striking out "or" at the end of subsection (i) ; 
(2) by striking out the period at the end of subsection (j) and 
inserting in lieu thereof ", or"; and 
(3) by inserting immediately after subsection (j) the following 
new subsection: 
"(k) Remuneration paid to or on behalf of an employee if (and to 
the extent that) at the time of the payment of such remuneration it is 
reasonable to believe that a corresponding deduction is allowable under 
section 217 of the Internal Revenue Code of 1954." 
(b) Section 3121(a) of the Internal Revenue Code of 1954 
(relating to definition of wages) is amended— 
(1) by striking out "or" at the end of paragraph (9); 
(2) by striking out the period at the end of paragraph (10) 
and inserting in lieu thereof "; or"; and 
(3) by adding after paragraph 
(10) the following new 
paragraph: 
"(11) remuneration paid to or on behalf of an employee if 
(and to the extent that) at the time of the payment of such 
remuneration it is reasonable to believe that a corresponding 
deduction is allowable under section 217." 
(c) Section 3306(b) of such Code (relating to definition of wages) 
is amended— 
(1) by striking out the period at the end of paragraph (8) 
and inserting in lieu thereof "; or"; and 
(2) by adding after paragraph (8) the following new para-
graph : 
"(9) remuneration paid to or on behalf of an employee if 
(and to the extent that) at the time of the payment of such 
74 Stat. 926. 
26 u s e 1402. 
42 use 401-425. 
Oklahoma, 
Conservation 
district emploj'^ 
ees. 
64 Stat. 514. 
42 u s e 418. 
"Wages.»» 
64 Stat. 492. 
42 u s e 409. 
Ante, p. 51. 
68A Stat. 417. 
26 use 3121. 
Unemployment 
taxes. 
26 use 3306. 
1078 
PUBLIC LAW 88-651-OCT. 13, 1964 
[78 STAT. 
Ante, 
p. 51. 
Aid to the blind. 
74 Stat. 997; 
76 Stat. 206. 
42 u s e 1202. 
76 Stat. 198. 
42 u s e 1382. 
remuneration it is reasonable to believe that a corresponding 
deduction is allowable under section 217." 
(d) The amendments made by this section shall apply with 
respect to remuneration paid on or after the first day of the first 
calendar month which begins more than ten days after the date of the 
enactment of this Act. 
SEC. 5. (a) Clause (8) of section 1002(a) of the Social Security 
Act is amended to read as follows: "(8) provide that the State 
agency shall, in determining need, take into consideration any other 
income and resources of the individual claiming aid to the blind, 
as well as any expenses reasonably attributable to the earning of any 
such income, except that, in making such determination, the State 
agency (A) shall disregard the first $85 per month of earned income, 
plus one-half of earned income in excess of $85 per month, (B) shall, 
for a period not in excess of twelve months, and may, for a period 
not in excess of thirty-six months, disregard such additional amounts 
of other income and resources, in the case of an individual who has 
a plan for achieving self-support approved by the State agency, 
as may be necessary for the fulfillment of such plan;". 
(b) Clause (14) of section 1602(a) of such Act is amended to 
read as follows: 
"(14) provide that the State agency shall, in determining 
need for aid to the aged, blind, or disabled, take into considera-
tion any other income and resources of an individual claiming 
such aid, as well as any expenses reasonably attributable to the 
earning of any such income; except that, in making such de-
termination with respect to any individual who is blind, the 
State agency (A) shall disregard the first $85 per month of 
earned income plus one-half of earned income in excess of $85 
per month, and (B) shall, for a period not in excess of twelve 
months, and may, for a period not in excess of thirty-six months, 
disregard such additional amounts of other income and resources, 
in the case of an individual who has a plan for achieving self-
support approved by the State agency, as may be necessary for 
the fulfillment of such plan, and in making such determination 
with respect to any other individual who has attained age 65 
and is claiming aid to the aged, blind, or disabled, of the first $50 
per month of earned income the State agency may, after Decem-
ber 31, 1962, disregard not more than the first $10 thereof plus 
one-half of the remainder; and". 
Approved October 13, 1964. 
October 13, 1964 
[H. R. 2434] 
Public Law 88-651 
AN ACT 
To amend section 560 of title 38, United States Code, to permit the payment of 
special pension to holders of the Congressional Medal of Honor awarded 
such medal for actions not involving conflict with an enemy, and for other 
purposes. 
Veterans. 
Medal of Honor 
Roll. 
77 Stat. 95. 
Be It enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 560(b) 
of title 38, LTnited States Code, is amended (1) by striking out "fifty 
years" and inserting in lieu thereof "forty years" and (2) lay striking 
out "beyond the call of duty" and all that follows through the end 
thereof and inserting in lieu thereof "beyond the call of duty while 
so serving." 
Approved October 13, 1964.