An Act to amend title II of the Social Security Act to provide disability insurance benefits for certain disabled individuals who have attained age 50, to reduce to age 62 the age on the basis of which benefits are payable to certain women, to provide for continue
PL 84-880 (H.R.7225), enacted 08/01/1956

70 S T A T . ] 
PUBLIC LAW 880-AUG. 1, 1956 
S
O
T 
Public Law 880 
CHAPTER 836 
AN ACT 
To amend title II of the Social Security Act to provide disability insurance bene-
fits for certain disabled individuals who have attained age fifty, to reduce to 
age sixty-two the age on the basis of which benefits are payable to certain 
women, to provide for child's insurance benefits for children who are disabled 
before attaining age eighteen, to extend coverage, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
nited States of America in Congress assembled, Thai 
be cited as the "Social Security Amendments of 1956". 
August 1, 195(5 
[H. R. 7225] 
United States of America in Congress assembled, That this Act may Amend^men*t^"f 
TITLE I—AMENDMENTS TO TITLE I I OF T H E SOCIAL 
SECURITY ACT 
1956. 
49 Stat. 622. 
42 use 40U422. 
CHILD'S I N S U R A N C E B E N E F I T S rOR CHILDREN WHO ARE DISABLED BEFORE 
ATTAINING AGE EIGHTEEN 
SEC. 101. (a) Section 202 (d) (1) of the Social Security Act is 
amended to read as follows: 
"(1) Every child (as defined in section 216 (e)) of an individual 
entitled to old-age insurance benefits, or of an individual who died a 
fully or currently insured individual after 1939, if such child— 
"(A) has filed application for child's insurance benefits, 
"(B) at the time such application was filed was unmarried and 
either (i) had not attained the age of eighteen, or (ii) was under 
a disability (as defined in section 223 (c) which began before 
he attained the age of eighteen, and 
"(C) was dependent upon such individual at the time such 
application was filed, or, if such individual has diedj was depend-
ent upon such individual at the time of such individual's death, 
shall be entitled to a child's insurance benefit for each month, begin-
ning with the first month after August 1950 in which such child be-
comes so entitled to such insurance benefits and ending with the month 
preceding the first month in which any of the following occurs: such 
child dies, marries, is adopted (except for adoption by a stepparent, 
grandparent, aunt, or uncle subsequent to the death of such fully or 
currently insured individual), attains the age of eighteen and is not 
under a disability (as defined in section 223 (c)) which began before 
he attained such age, or ceases to be under a disability (as so defined) 
on or after the day on which he attains age eighteen." 
(b) (1) Paragraphs (3), (4), and (5) of section 202 (d) of such Act 
are each amended by striking out "A child" wherever it appears and 
inserting in lieu thereof "A child who has not attained the age of 
eighteen". 
(2) Section 202 (d) of such Act is further amended by adding at the 
end thereof the following new paragraph: 
"(6) A child who has attained the age of eighteen and who is under 
a disability (as defined in section 223 (c)) which began before he 
attained the age of eighteen shall be deemed dependent upon his nat-
ural or adopting father, his natural or adopting mother, his stepfather, 
or his stepmother at the time specified in paragraph (1) (C) if the 
child— 
"(A) was or would, upon filing an application therefor, have 
been entitled to a child's insurance benefit on the basis of the wages 
and self-employment income of such father, mother, stepfather, 
or stepmother for any month before the month in which he at-
tained the age of eighteen, or 
42 use 402. 
42 
use 416. 
Post, p. 815. 
Post, p. 815. 
Post, 
p. 815. 
Poat, p. 815. 
42 use 403. 
808 
PUBLIC LAW 880-AUG 1, 1956 
[70 STAT. 
"(B) was, at the time specified in paragraph (1) (C), receiv-
ing at least one-half of his support from such father, mother, 
stepfather, or stepmother." 
42 use 402. 
(c) Section 202 (h) (1) of such Act (relating to parent's benefits) 
is amended by striking out "or an unmarried child under the age of 
eighteen deemed dependent on such individual under subsection (d) 
(3), (4), or (5)" and inserting in lieu thereof "an unmarried child 
under the age of eighteen deemed dependent on such individual under 
subsection (d) (3), (4), or (5), or an unmarried child who has 
attained the age of eighteen and is under a disability (as defined in 
section 223 (c)) which began before he attained such age and who is 
deemed dependent on such individual under subsection (d) (6)". 
(d) The first sentence of section 203 (a) of such Act (relating to 
maximum benefits) is amended by striking out "after any deductions 
under this section," each place it appears and inserting in lieu thereof 
"after any deductions under this section, after any deductions under 
816.*""' ^^' *'^' section 222 (b), and after any reduction under section 224,". 
Post, p. 814. 
^g^ Section 203 (b) of such Act (relating to deductions from bene-
fits on account of certain events) is amended by adding after para-
graph (5) the following: 
"For purposes of paragraphs (3), (4), and (5), a child shall not be 
considered to be entitled to a child's insurance benefit for any month 
Post, p. 817. 
-j^ which an event specified in section 222 (b) occurs with respect to 
such child. 
No deduction shall be made under this subsection from 
any child's insurance benefit for the month in which the child entitled 
to such benefit attained the age of eighteen or any subsequent month." 
(f) Section 203 (d) of such Act (relating to occurrence of more 
than one event) is amended by inserting after "(c)" the following: 
"and section 222 (b)". 
(g) Section 203 (h) of such Act (relating to circumstances under 
which deductions not required) is amended to read as follows: 
"Circumstances Under Which Deductions and Reductions Not 
Required 
"(h) In the case of any individual— 
"(1) deductions by reason of the provisions of subsection (b), 
Post, p. 817. 
^j^^ Qj. ^g^ QI |.j^-g section, or the provisions of section 222 (b), 
shall, notwithstanding such provisions, be made from the benefits 
to which such individual is entitled, and 
Post, p. 816. 
u^2) any reduction by reason of the provisions of section 224 
shall, notwithstanding the provisions of such section, be made 
with respect to the benefits to which such individual is entitled, 
only to the extent that such deductions and reduction reduce the total 
amount which would otherwise be paid, on the basis of the same wages 
and self-employment income, to such individual and the other indi-
viduals living in the same household." 
(h) (1) The amendments made by this section, other than subsection 
(c), shall apply with respect to monthly benefits under section 202 
42 use 402. 
of the Social Security Act for months after December 1956, but only, 
except as provided in paragraph (2), on the basis of an application 
filed after September 1956. For purposes of title I I of the Social Secu-
rity Act, as amended by this Act, an application for wife's, child's, or 
mother's insurance benefits under such title II filed, by reason of this 
paragraph, by an individual who was entitled to benefits prior to, 
but not for, December 1956 and whose entitlement terminated as a 
result of a child's attainment of age eighteen J.iall be treated as the 
su^^V^p^'soV.^' application referred to in subsection (b), (d), and (g), respectively, 
* of section 202 of such Act. 
70 S T A T . ] 
PUBLIC LAW 880-AUG. 1, 1956 
809 
Ante, p. 807. 
^plicability., 
Ante, p. 808. 
(2) In the case of an individual who was entitled, without the 
application of subsection (j) (1) of such section 202, to a child's 
insurance benefit under subsection (d) of such section for December 
1956, such amendments shall apply with respect to benetits under 
such section 202 for months after December 1956. 
(3) The amendment made by subsection (c) shall apply in the 
case of benefits under section 202 (h) of the Social Security Act based 
on the wages and self-employment income of an individual who dies 
after August 1956. 
RETIREMENT AGE FOR WOMEN 
SEC. 102. (a) Section 216 (a) of the Social Security Act is amended 
« use 4i6. 
to read as follows: 
"Retirement Age 
"(a) The term 'retirement age' means— 
" (1) in the case of a man, age sixty-five, or 
" (2) in the case of a woman, age sixty-two." 
(b) (1) The amendment made by subsection (a) shall apply in the 
case of benefits under subsection (e) of section 202 of the Social 
Security Act for months after October 1956, but only, except in the 
case of an individual who was entitled to wife's or mother's insurance 
benefits under such section 202 for October 1956, or any month there-
after, on the basis of applications filed after the date of enactment of 
this Act. 
The amendment made by subsection (a) shall apply in the 
case of benefits under subsection (h) of such section 202 for months 
after October 1956 on the basis of applications filed after the date of 
enactment of this Act. 
(2) Except as provided in paragraphs (1) and (4), the amendment 
made by subsection (a) shall apply in the case of lump-sum death pay-
ments under section 202 (i) of the Social Security Act with respect to 
deaths after October 1956, and in the case of monthly benefits under 
title I I of such Act for months after October 1956 on the basis of 
applications filed after the date of enactment of this Act. 
(3) For purposes of section 215 (b) (3) (B) of the Social Security 
Act (but subject to paragraphs (1) and (2) of this subsection)— 
(A) a woman who attains the age of sixty-two prior to Novem-
ber 1956 and who was not eligible for old-age insurance benefits 
under section 202 of such Act (as in effect prior to the enactment 
of this Act) for any month prior to November 1956 shall be 
deemed to have attained the age of sixty-two in 1956 or, if earlier, 
the year in which she died; 
(B) a woman shall not, by reason of the amendment made by 
subsection (a), be deemed to be a fully insured individual before 
November 1956 or the month in which she died, whichever month 
is the earlier; and 
(C) the amendment made by subsection (a) shall not be appli-
cable in the case of any woman who was eligible for old-age insur-
ance benefits under such section 202 for any month prior to 
November 1956. 
A woman shall, for purposes of this paragraph, be deemed eligible for 
old-age insurance benefits under section 202 of the Social Security Act 
for any month if she was or would have been, upon filing application 
therefor in such month, entitled to such benefits for such month. 
(4) For purposes of section 209 (i) of such Act, the amendment 
made by subsection (a) shall apply only with respect to remuneration 
paid after October 1956. 
Post, 
p. 831. 
Ante, p. 
808. 
Post, 
p. 
871. 
42 
use 415. 
42 
use 409. 
810 
PUBLIC LAW 880-AUG. 1, 1956 
[70 STAT. 
Poat, p. 832. 
(c) Section 202 of the Social Security Act is amended by adding 
after subsection (p) (added by section 114 of this Act) the following 
new subsections: 
"Adjustment of Old-Age and Wife's Insurance Benefit Amounts in 
Accordance With Age of Female Beneficiary 
" (q) (1) The old-age insurance benefit of any woman for any month 
prior to the month in which she attains the age of sixty-five shall be 
reduced by— 
"(A) 5/9 of 1 per centum, multiplied by 
"(B) the number equal to the number of months in the period 
beginning with the first day of the first month for which she is 
entitled to an old-age insurance benefit and ending with the last 
day of the month before the month in which she would attain 
the age of sixty-five. 
"(2) The wife's insurance benefit of any wife for any month after 
the month preceding the month in which she attains the age of sixty-
two and prior to the month in which she attains the age of sixty-five 
shall be reduced by— 
" (A) 25/36 of 1 per centum, multiplied by 
"(B) the number equal to the number of months in the period 
beginning with the first day of the first month for which she is 
entitled to such wife's insurance benefit and ending with the last 
day of the month before the month in which she would attain the 
age of sixty-five, except that in no event shall such period start 
earlier than the first day of the month in which she attains the 
age of sixty-two. 
^^^onappiicabii- 'j'jjg preceding provisions of this paragraph shall not apply to the 
benefit for any month in which such wife has in her care (individually 
or jointly with the individual on whose wages and self-employment 
income such wife's insurance benefit is based) a child entitled to child's 
insurance benefits on the basis of such wages and self-employment 
income. With respect to any month in the period specified in clause 
(B) of the first sentence, if such wife does not have in such month such 
a child in her care (individually or jointly with such individual), she 
shall be deemed to have such a child in her care in such month for the 
purposes of the preceding sentence unless there is in effect for such 
month a certificate filed by her with the Secretary, in accordance with 
regulations prescribed by him, in which she elects to receive wife's 
insurance benefits reduced as provided in this subsection. Any certifi-
cate filed pursuant to the preceding sentence shall be effective for pur-
poses of such sentence— 
(i) for the month in which it is filed, and for any month there-
after, if in such month she does not have such a child in her care 
(individually or jointly with such individual), and 
(ii) for the period of one or more consecutive months (not ex-
ceeding twelve} immediately preceding the month in which such 
certificate is filed which is designated by her (not including as 
part of such period any month m which she had such a child in 
her care (individually or jointly with such individual)). 
If such a certificate is filed, the period referred to in clause (B) of the 
first sentence of this paragraph shall commence with the first day of 
the first month (i) for which she is entitled to a wife's insurance bene-
fit, (ii) which occurs after the month preceding the month in which 
she attained the age of sixty-two, and (iii) for which such certificate 
is effective. 
"(3) In the case of any woman who is entitled to an old-age insur-
ance benefit to which paragraph (1) is applicable and who, for the 
V
O STAT.] 
PUBLIC LAW 880-AUG. 1, 1956 
811 
first month for which she is so entitled (but not for any prior month) 
or for any later month occurring before the month in which she attains 
the age of sixt^-five, is entitled to a wife's insurance benefit to which 
paragraph (2) is applicable, the amount of such wife's insurance bene-
fit for any month prior to the month in which she attains the age of 
sixty-five shall, in lieu of the reduction provided in paragraph (2), be 
reduced by the sum of— 
"(A) an amount equal to the amount by which such old-age in-
surance benefit for such month is reduced under paragraph (1), 
plus 
"(B) an amount equal to— 
"(i) the number equal to the number of months specified 
in clause (B) of paragraph (2), multiplied by 
"(ii) 25/36 of 1 per centum, and further multiplied by 
"(iii) the excess of such wife's insurance benefit prior to 
reduction under this subsection over the old-age insurance 
benefit prior to reduction under this subsection. 
"(4) In the case of any woman who is or was entitled to a wife's 
insurance benefit to which paragraph (2) is applicable and who, for 
any month after the first month for which she is or was so entitled 
(but not for such first month or any earlier month) occurring before 
the month in which she attains the age of sixty-five, is entitled to an 
old-age insurance benefit, the amount of such old-age insurance bene-
fit for any month prior to the month in which she attains the age of 
sixty-five shall, in lieu of the reduction provided in paragraph (1), 
be reduced by the sum of— 
"(A) an amount equal to the amount by which such wife's 
insurance benefit is reduced under paragraph (2) for such month 
(or, if she is not entitled to a wife's insurance benefit for such 
month, by an amount equal to the amount by which such benefit 
was reduced for the last month for which she was entitled thereto), 
plus 
"(B) if the old-age insurance benefit for such month prior to 
reduction under this subsection exceeds such wife's insurance 
benefit prior to reduction under this subsection, an amount equal 
to— 
" (i) the number equal to the number of months specified in 
clause (B) of paragraph (1), multiplied by 
" (ii) % of 1 per centum, and further multiplied by 
"(iii) the excess of such old-age insurance benefit over such 
wife's insurance benefit. 
. "(5) In the case of any woman who is entitled to an old-age in-
surance benefit for the month in which she attains the age of sixty-
five or any month thereafter, such benefit for such month shall, if 
she was also entitled to such benefit for any one or more months prior 
to the month in which she attained the age of sixty-five and such 
benefit for any such prior month was reduced under paragraph (1) 
or (4), be reduced as provided in such paragraph, except that there 
shall be subtracted, from the number specified in clause (B) of such 
paragraph— 
"(A) the number equal to the number of months for which 
such benefit was reduced under such paragraph, but for which 
such benefit was subject to deductions under paragraph (1) or 
(2) of section 203 (b), 
42 use 403. 
and except that, in the case of any such benefit reduced under para-
graph (4), there also shall be subtracted from the number specified 
in clause (B) of paragraph (2), for the purpose of computing the 
amount referred to in clause (A) of paragraph (4)— 
812 
PUBLIC LAW 880-AUG. 1, 1956 
[70 STAT. 
"(B) the number equal to the number of months for which 
the wife's insurance benefit was reduced under such paragraph 
(2), but for which such benefit was subject to deductions under 
42 use 403. 
paragraph (1) or (2) of section 203 (b) or under section 203 
(c),and 
"(C) the number equal to the number of months occurring after 
the first month for which such wife's insurance benefit was re-
duced under such paragraph (2) in which she had in her care 
(individually or jointly with the individual on whose wages and 
self-employment income such benefit is based) a child of such 
individual entitled to child's insurance benefits. 
Such subtraction shall be made only if the total of such months speci-
fied in clauses (A), (B), and (C) of the preceding sentence is not less 
than three. For purposes of clauses (B) and (C) of this paragraph, 
a wife's insurance benefit shall not be considered terminated for any 
reason prior to the month in which she attains the age of sixty-five. 
" (6) In the case of any woman who is entitled to a wife's insurance 
benefit for the month in which she attains the age of sixty-five or any 
month thereafter, such benefit for such month shall, if she was also 
entitled to such benefit for any one or more months prior to the month 
in which she attained the age of sixty-five and such benefit for any 
such prior month was reduced under paragraph (2) or (3), be reduced 
as provided in such paragraph, except that there shall be be subtracted 
from the number specified in clause (B) of such paragraph— 
" (A) the number equal to the number of months for which such 
benefit was reduced under such paragraph, but for which such 
benefit was subject to deductions under paragraph (1) or (2) of 
42 use 403. 
section 203 (b) or under section 203 (c), and 
"(B) the number equal to the number of months, occurring 
after the first month for which such benefit was reduced under 
such paragraph, in which she had in her care (individually or 
jointly with the individual on whose wages and self-employment 
income such benefit is based) a child of such individual entitled 
to child's insurance benefits, 
and except that, in the case of any such benefit reduced under para-
graph (3), there also shall be subtracted from the number specified 
in clause )B) of paragraph (1), for the purpose of computing the 
amount referred to in clause (A) of paragraph (3)— 
"(C) the number equal to the number of months for which 
the old-age insurance benefit was reduced under such paragraph 
(1) but for which such benefit was subject to deductions under 
42 use 403. 
paragraph (1) or (2) of section 203 (b). 
Such subtraction shall be made only if the total of such months 
specified in clauses (A), (B), and (C) of the preceding sentence is 
not less than three. 
"(7) In the case of a woman who is entitled to an old-age insurance 
benefit to w^hich paragraph (5) is applicable and who, for the month 
in which she attains the age of sixty-five (but not for any prior month) 
or for any later month, is entitled to a wife's insurance benefit, the 
amount of such wife's insurance benefit for any month shall be 
reduced by an amount equal to the amount by which the old-age insur-
ance benefit is reduced under paragraph (5) for such month. 
" (8) In the case of a woman who is or was entitled to a wife's insur-
ance benefit to which paragraph (2) was applicable and who, for the 
month in which she attains the age of sixty-five (but not for any prior 
month) or for any later month, is entitled to an old-age insurance 
benefit, the amount of such old-age insurance benefit for any month 
shall be reduced by an amount equal to the amount by which the wife's 
insurance benefit is reduced under paragraph (6) for such month (or, 
T
O STAT.] 
PUBLIC LAW 880-AUG. 1, 1956 
813 
if she is not entitled to a wife's insurance benefit for such month, by (i) 
an amount equal to the amount by which such benefit for the last 
month for which she was entitled thereto was reduced, or (ii) if 
smaller, an amount equal to the amount by which such benefit would 
have been reduced under paragraph (6) for the month in which she 
attained the age of sixty-five if entitlement to such benefit had not 
terminated before such month). 
"(9) The preceding paragraphs shall be applied to old-age insur-
ance benefits and wife's insurance benefits after reduction under sec-
tion 203 (a) and application of section 215 (g). 
If the amount of any p.l^^f'^*^'^s; post, 
reduction computed under paragraph (1), under paragraph (2), un-
der clause (A) or clause (B) of paragraph (3), or under clause (A) or 
clause (B) of paragraph (4) is not a multiple of $0.10, it shall be 
reduced to the next lower multiple of $0.10. 
"Presumed Filing of Application by "Woman Eligible for Old-Age 
and Wife's Insurance Benefits 
"(r) Any woman who becomes entitled to an old-age insurance 
benefit for any month prior to the month in which she attains the age 
of sixty-five and who is eligible for a wife's insurance benefit for the 
same month shall be deemedto have filed an application in such month 
for wife's insurance benefits. Any woman who becomes entitled to a 
wife's insurance benefit for any month prior to the month in which 
she attains the age of sixty-five and who is eligible for an old-age 
insurance benefit for the same month shall be deemed, unless she has 
in such month a child in her care (individually or jointly with the 
individual on whose wages and self-employment income her wife's 
insurance benefits are based) a child entitled to child's insurance bene-
fits on the basis of such wages and self-employment income, to have 
filed an application in such month for old-age insurance benefits. For 
E
urposes of this subsection an individual shall be deemed eligible for a 
enefit for a month if, upon filing application therefor in such month, 
she would have been entitled to such benefit for such month. 
"Female Disability Insurance Beneficiary 
"(s) (1) If any woman becomes entitled to a widow's insurance 
benefit or parent's insurance benefit for a month before the month in 
which she attains the age of sixty-five, or becomes entitled to an old-
age insurance benefit or wife's insurance benefit for a month before 
the month in which she attains the age of sixty-five which is reduced 
under the provisions of subsection (q), such individual may not there- 
^*®' P* 8io. 
after become entitled to disability insurance benefits under this title. 
" (2) If a woman would, but for the provisions of subsection (k) (2) 
(B), be entitled for any month to a disability insurance benefit and to 
^°^*' P* ^is. 
a wife's insurance benefit, subsection (q) ghall be applicable to such 
wife's insurance benefit for such month only to the extent it exceeds 
such disability insurance benefit for such month. 
"(3) The entitlement of any woman to disability insurance benefits 
shall terminate with the month before the month in which she becomes 
entitled to old-age insurance benefits." 
(d) (1) The last sentence of subsection (a) of section 202 of such 
••s use 402. 
Act IS amended by striking out "Such" and inserting in lieu thereof 
"Except as provided in subsection (q), such". 
(2) Clause (D) of subsection (b) (1) of such section is amended 
to read as follows: 
"(D) is not entitled to old-age insurance benefits, or is entitled 
to old-age insurance benefits based on a primary insurance amount 
814 
PUBLIC DAW 880-AUG. 1, 1966 
[70 STAT^ 
V • which is less than one-half of an old-age insurance benefit of her 
husband,". 
(3) So much of such subsection as follows clause (D) is amended 
by striking out "or she becomes entitled to an old-age insurance benefit 
equal to or exceeding one-half of an old-age insurance benefit of her 
husband" and inserting in lieu thereof "or she becomes entitled to an 
old-age insurance benefit based on a primary insurance amount which 
is equal to or exceeds one-half of an old-age insurance benefit of her 
husband". 
(4) Subsection (b) (2) of such section is amended by striking out 
"Such" and inserting in lieu thereof "Except as provided in subsection 
(q),such". 
(5) Paragraph (1) (E) of subsection (c) of section 202 of such 
Act is amended by striking out "an old-age insurance benefit of his 
wife" and inserting in lieu thereof "the primary insurance amount of 
his wife". 
(6) So much of paragraph (1) of such subsection as follows clause 
(E) is amended by striking out "an old-age insurance benefit of his 
wife" and inserting in lieu thereof "the primary insurance amount 
of his wife". 
(7) Paragraph (2) of such subsection and the first sentence of sub-
section (d) (2) of such section are each amended by striking out "old-
age insurance benefit" and inserting in lieu thereof "primary insurance 
amount". 
(8) Subsection (j) of such section is amended by adding at the 
end thereof the following new paragraph: 
*^^^*'' 
"(3) Notwithstanding the provisions of paragraph (1), a woman 
may, at her option, waive entitlement to old-age insurance benefits or 
wife's insurance benefits for any one or more consecutive months which 
occur— 
"(A) after the month before the month in which she attains 
the age of sixty-two, 
' 
"(B) prior to the month in which she attains the age of sixty-
five, and 
"(C) prior to the month in which she files application for such 
benefits; 
and, in such case, she shall not be considered as entitled to such benefits 
for any such month or months before she filed such application. 
A 
woman shall be deemed to have waived such entitlement for any such 
month for which such benefit would, under the second sentence of 
paragraph (1), be reduced to zero." 
(9) Subsection (k) (3) of such section is amended to read as 
follows: 
"(3) If an individual is entitled to an old-age insurance benefit for 
any month and to any other monthly insurance benefit for such month, 
such other insurance benefit for such month, after any reduction under 
42 use 403. 
subsection (q) and any reduction under section 203 (a), shall be re-
duced, but not below zero, by an amount equal to such old-age insur-
ance benefit (after reduction under such subsection (q))." 
(10) Subsection (m) of such section is amended by inserting "and 
subsection (q)" after "subsection (k) (3)" each time it appears 
therein. 
42 use 403. 
(11) Section 203 (b) (3) of such Act is amended to read as follows: 
"(3) in which such individual, if a wife under age 65 entitled 
to a wife's insurance benefit, did not have in her care (individually 
or jointly with her husband) a child of her husband entitled to a 
child's insurance benefit and such wife's insurance benefit for such 
Ante, p. 810. 
mouth was not reduced under the provisions of section 20^ (q); 
or". 
70 S T A T . ] 
P U B U C LiAW 880-AUG. 1, 1956 
816 
(12) The second and fourth sentences of section 216 (i) (2) of such 
"^^ "^^ '*^*' 
Act are each amended by striking out "retirement age" and inserting 
in lieu thereof "the age of sixty-five". 
DISABILITY INSURANCE BENEFITS FOR CERTAIN DISABLED INDIVIDUALS 
WHO HAVE ATTAINED AGE FIFTY 
SEC. 103. (a) Title I I of the Social Security Act is amended by 
inserting after section 222 the following new sections: 
Post, p. 8i7. 
" D I S A B I L I T Y I N S U R A N C E BENEFIT PAYMENTS 
"Disability Insurance Benefits 
"SEC. 223. (a) (1) Every individual who— 
"(A) is insured for disability insurance benefits (as deter-
mined under subsection (c) (1)), 
"(B) has attained the age of fifty and has not attained the 
age of sixty-five, 
"(C) has filed application for disability insurance benefits, 
and 
"(D) is under a disability (as defined in subsection (c) (2)) 
at the time such application is filed, 
shall be entitled to a disability insurance benefit for each month, begin-
ning with the first month after his waiting period (as defined in sub-
section (c) (3)) in which he becomes so entitled to such insurance 
benefits and ending with the month preceding the first month in which 
any of the following occurs: his disability ceases, he dies, or he attains 
the age of sixty-five. 
"(2) Such individual's disability insurance benefit for any month 
shall be equal to his primary insurance amount for such month deter-
mined under section 215 as though he became entitled to old-age insur- g^°§^!^ ^83*3.*'^*' 
ance benefits in the first month of his waiting period. 
"Filing of Application 
"(b) No application for disability insurance benefits which is filed 
more than nine months before the first month for which the applicant 
becomes entitled to such benefits shall be accepted as a valid applica-
tion for purposes of this section. 
"Definitions 
"(c) For purposes of this section— 
"(1) An individual shall be insured for disability insurance 
benefits in any month if— 
"(A) he would have been a fully and currently insured 
individual (as defined in section 214) had he attained retire- 
rflffccUos"' 
ment age and filed application for benefits under section 202 
(a) on the first day of such month, and 
"(B) he had not less than twenty quarters of coverage dur-
ing the forty-quarter period ending with the quarter in which 
such first day occurred, not counting as part of such forty-
quarter period any quarter any part of which was included 
in a period of disability (as defined in section 216 (i)) unless 
^2 use 4i6. 
such quarter was a quarter of coverage. 
"(2) The term 'disability' means inability to engage in any 
"Diiabiiuy". 
substantial gainful activity by reason of any medically determin-
able physical or mental impairment which can be expected to 
result in death or to be of long-continued and indefinite duration. 
816 
PUBLIC LAW 880-AUG. 1, 1956 
[70 STAT. 
An individual shall not be considered to be under a disability 
unless he furnishes such proof of the existence thereof as may be 
required. 
rio'S^*^"^ ^ *" 
. " (3) The term 'waiting period' means, in the case of any applica-
tion for disability insurance benefits, the earliest period of six 
consecutive calendar months— 
"(A) throughout which the individual who files such ap-
plication has been under a disability, and 
"(B) (i) which begins not earlier than with the first day 
of the sixth month before the month in which such application 
is filed if such individual is insured for disability insurance 
benefits in such sixth month, or (ii) if he is not so insured in 
such month, which begins not earlier than with the first day 
of the first month after such sixth month in which he is so 
insured. 
Notwithstanding the preceding provisions of this paragraph, no 
waiting period may begin for any individual before January 1, 
1957; nor may any such period begin for any individual before 
the first day of the sixth month before the month in which he 
attains the age of fifty. 
"REDUCTION OF BENEFITS BASED ON DISABILITY 
"SEC. 224. (a) If-;-
"(1) any individual is entitled to a disability insurance benefit 
for any month, or to a child's insurance benefit for the month in 
which he attained the age of eighteen or any subsequent month, 
and 
"(2) either (A) it is determined by any agency of the United 
States under any other law of the United States or under a system 
established by such agency that a periodic benefit is payable by 
such agency for such month to such individual, and the amount 
of or eligibility for such periodic benefit is based (in whole or 
in part) on a physical or mental impairment of such individual, 
or (B) it is determined that a periodic benefit is payable for such 
month to such individual under a workmen's compensation law 
or plan of the United States or of a State on account of a physical 
or mental impairment of such individual, 
then the benefit referred to in paragraph (1) shall be reduced (but not 
below zero) by an amount equal to such periodic benefit or benefits for 
such month. 
If such benefit referred to in paragraph (1) for any 
month is a child's insurance benefit and the periodic benefit or benefits 
referred to in paragraph (2) exceed such child's insurance benefit, the 
monthly benefit for such month to which an individual is entitled 
gj^"**' PP* 8^3, under subsection (b) or (g) of section 202 shall also be reduced (but 
not below zero) by the amount of such excess, but only if such indi-
vidual (i) did not attain retirement age in such month or in any prior 
month, and (ii) would not be entitled to such monthly benefit if she 
did not have such child in her care (individually or jointly with her 
husband, in the case of a wife). 
"(b) If any periodic benefit referred to in subsection (a) (2) is 
determined to be payable on other than a monthly basis (excluding a 
benefit payable in a lump sum unless it is a commutation of, or a 
substitute for, periodic payments), reduction of the benefits under this 
section shall be made at such time or times and in such amounts as the 
Secretary finds will approximate, as nearly as practicable, the reduc-
tion prescribed in subsection (a). 
"(c) In order to assure that the purposes of this section will be car-
ried out, the Secretary may, as a condition to certification for payment 
of any monthly insurance benefit payable to an individual under 
this title (if it appears to him that such individual may be eligible for 
a periodic benefit which would give rise to a reduction under this 
section), require adequate assurance of reimbursement to the Federal 
70 S T A T . ] 
PUBLIC LIAW 8 8 0 - A U G . 1, 1956 
817 
Disability Insurance Trust Fund in case periodic benefits, with respect 
to which such a reduction should be made, become payable to such 
individual and such reduction is not made. 
"(d) Any agency of the United States which is authorized by any 
law of the United States to pay periodic benefits, or has a system of 
periodic benefits, which are based in whole or in part on physical or 
mental impairment, shall (at the request of the Secretary) certify to 
him, with respect to any individual, such information as the Secretary 
deems necessary to carry out his functions under subsection (a). 
"(e) For purposes of this section, the term 'agency of the United u,(i'^|*|fJte8'»."'* 
States' means any department or other agency of the United States 
or any instrumentality which is wholly owned by the United States. 
ii 
Ante, p. 815. 
42 u s e 422. 
SUSPENSION OF BENEFITS BASED ON DISABILITY 
"SEC. 225. If the Secretary, on the basis of information obtained by 
or submitted to him, believes that an individual entitled to benefits 
under section 223, or that a child who has attained the age of eighteen 
and is entitled to benefits under section 202 (d), may have ceased to 
'^**' P* *°^* 
be under a disability, the Secretary may suspend the payment of 
benefits under such section 223 or 202 (d) until it is determined 
(as provided in section 221) whether or not such individual's dis- 
••2 use 421. 
ability has ceased or until the Secretary believes that such disability 
has not ceased. 
In the case of any individual whose disability is sub-
ject to determination under an agreement with a State under section 
221 (b), the Secretary shall promptly notify the appropriate State 
of his action under this section and shall request a prompt determina-
tion of whether such individual's disability has ceased. 
For purposes 
of this section, the term 'disability' has the meaning assigned to such 
term in section223 (c) (2)." 
(b) Section 222 of such Act is amended to read as follows: 
"REHABILITATION SERVICES 
"Referral for Rehabilitation Services 
"SEC. 222. (a) It is hereby declared to be the policy of the Congress 
that disabled individuals applying for a determination of disability, 
and disabled individuals who are entitled to child's insurance benefits, 
shall be promptly referred to the State agency or agencies administer-
ing or supervising the administration of the State plan approved 
under the Vocational Rehabilitation Act for necessary vocational re- 
| | ^^ |f note, 
habilitation services, to the end that the maximum number of such 
individuals may be rehabilitated into productive activity. 
"Deductions on Account of Refusal To Accept Rehabilitation Services 
"(b) Deductions, in such amounts and at such time or times as the 
Secretary shall determine, shall be made from any payment or pay-
ments under this title to which an individual is entitled, until the total 
of such deductions equals such individual's benefit or benefits under 
sections 202 and 223 for any month in which such individual, if a 
^^^^^ ^g^j 
child who has attained the age of eighteen and is entitled to child's 
*' ^* 
insurance benefits or if an individual entitled to disability insurance 
benefits, refuses without good cause to accept rehabilitation services 
available to him under a State plan approved under the Vocational 
Rehabilitation Act. 
Any individual who is a member or adherent 
| | stat. 6S2. 
of any recognized church or religious sect which teaches its membei-s 
or adherents to rely solely, in the treatment and cure of any physical 
or mental impairment, upon prayer or spiritual means through the 
692Z5 O - 5 7 - 5 6 (Vol. 70) 
818 
PUBLIC LAW 880-AUG. 1, 1956 
[70 ST A T . 
42 u s e 416. 
Ante, p. 815. 
68 Stat. 652. 
29 u s e 31 note. 
42 u s e 402. 
Ante, p. 815. 
Ante, p. 815. 
42 u s e 415. 
Ante, 
pp. 815, 
816. 
42 u s e 416. 
Ante, 
pp. 815, 
817. 
42 u s e 421. 
Ante, p. 815. 
Ante, p. 815. 
Applicability. 
application and use of the tenets or teachings of such church or sect, 
and who, solely because of his adherence to the teachings or tenets of 
such church, or sect, refuses to accept rehabilitation services available 
to him under a State plan approved under the Vocational Rehabilita-
tion Act, shall, for the purposes of the first sentence of this subsection, 
be deemed to have done so with good cause. 
"Service Performed Under Rehabilitation Program 
"(c) For purposes of sections 216 (i) and 223, an individual shall 
not be regarded as able to engage in substantial gainful activity solely 
by reason of services rendered by him pursuant to a program for his 
rehabilitation carried on under a State plan approved under the Voca-
tional Rehabilitation Act. This subsection shall not apply with respect 
to any such services rendered after the eleventh month following the 
first month during which such services are rendered." 
(c) (1) Section 202 (a) (3) of such Act (relating to old-age insur-
ance benefits) is amended to read as follows: 
"(3) has filed application for old-age insurance benefits or was 
entitled to disability insurance benefits for the month preceding 
the month in which he attained the age of 65,". 
(2) Section 202 (k) (2) (B) of such Act (relating to entitlement 
to more than one benefit) is amended by striking out "who under the 
preceding provisions of this section" and inserting in lieu thereof 
"who, under the preceding provisions of this section and under the 
provisions of section 223,". 
(3) Section 202 (n) (1) (A) of such Act (relating to denial of 
benefits in certain cases of deportation) is amended by inserting "or 
section 223" after "this section". 
(4) Section 215 (a) of such Act (relating to computation of the 
primary insurance amount) is amended by adding at the end thereof 
the following new paragraph: 
"(3) Notwithstanding paragraphs (1) and (2), in the case of any 
individual who in the month before the month in which he becomes 
entitled to old-age insurance benefits or dies, whichever first occurs, 
was entitled to a disability insurance benefit, his primary insurance 
amount shall be the amount computed as provided in this section 
(without regard to this paragraph) or his disability insurance benefit 
for such earlier month, whichever is the larger." 
(5) Section 215 (g) of such Act (relating to rounding of benefits) 
is amended (A) by striking out "section 202" and inserting in lieu 
thereof "section 202 or 223" and (B) by striking out "section 203 (a)" 
and inserting in lieu thereof "sections 203 (a) and 224". 
(6) The first sentence of section 216 (i) (1) of such Act (defining 
"disability" for purposes of preserving insurance rights during pe-
riods of disability) is amended by striking out "The" at the beginning 
and inserting in lieu thereof "Except for purposes of sections 202 (d), 
223, and 225, the". 
(7) The first sentence of section 221 (a) of such Act (relating to 
determinations of disability by State agencies) is amended by striking 
out "(as defined in section 216 ( i ) ) " and inserting in lieu thereof "(as 
defined in section 216 (i) or 223 (c))". 
(8) Section 221 (c) of such Act (relating to review by Secretary 
of determinations of disability) is amended by striking out "a dis-
ability" the two places it appears and inserting in lieu thereof "a dis-
ability (as defined in section 216 (i) or 223 (c))" the first place it ap-
pears and "a disability (as so defined)" the second place it appears. 
(d) (1) The amendment made by subsection (a) shall apply only 
with respect to monthly benefits under title I I of the Social Security 
Act for months after June 1957. 
70 STAT.] 
PUBLIC LAW 880-AUG. 1, 1956 
819 
(2) For purposes of determining entitlement to a disability insur-
ance benefit for any month after June 1957 and before December 1957, 
an application for disability insurance benefits filed by any individual 
after July 1957 and before January 1958 shall be deemed to have been 
filed during the first month after June 1957 for which such individual 
would (without regard to this paragraph) have been entitled to a 
disability insurance benefit had he filed application before the end of 
such month. 
(e) Section 201 of such Act is amended to read as follows: 
42 use 40i. 
"FEDERAL OLD-AGE AND SURVIVORS INSTJRANCE TRUST FUND AND FEDERAL 
DISABILITY INSURANCE TRUST FUND 
"SEC. 201. (a) There is hereby created on the books of the Treasury 
of the United States a trust fund to be known as the 'Federal Old-Age 
and Survivors Insurance Trust Fund'. 
The Federal Old-Age and 
Survivors Insurance Trust Fund shall consist of the securities held 
by the Secretary of the Treasury for the Old-Age Reserve Account and 
the amount standing to the credit of the Old-Age Reserve Account on 
the books of the Treasury on January 1, 1940, which securities and 
amount the Secretary of the Treasury is authorized and directed to 
transfer to the Federal Old-Age and Survivors Insurance Trust Fund, 
and, in addition, such amounts as may be appropriated to, or deposited 
in, the Federal Old-Age and Survivors Insurance Trust Fund as here-
inafter provided. 
There is hereby appropriated to the Federal Old- 
Appropriation. 
Age and Survivors Insurance Trust Fund for the fiscal year ending 
June 30, 1941, and for each fiscal year thereafter, out of any moneys 
in the Treasury not otherwise appropriated, amounts equivalent to 
100 per centum of— 
"(1) the taxes (including interest, penalties, and additions to 
the taxes) received under subchapter A of chapter 9 of the Inter-
nal Revenue Code of 1939 (and covered into the Treasury) which ^^^6 ^u s^c a pp. 
are deposited into the Treasury by collectors of internal revenue 
before January 1,1951; and 
"(2) the taxes certified each month by the Commissioner of 
Internal Revenue as taxes received under subchapter A of chapter 
9 of such Code which are deposited into the Treasury by col-
lectors of internal revenue after December 31, 1950, and before 
January 1, 1953, with respect to assessments of such taxes made 
before January 1, 1951; and 
"(3) the taxes imposed by subchapter A of chapter 9 of such 
Code with respect to wages (as defined in section 1426 of such 
fe^ifs^c a^^o 
Code), and by chapter 21 of the Internal Revenue Code of 1954 312s. 
with respect to wages (as defined in section 3121 of such Code) 839-*841', 8^3',845!' 
reported to the Commissioner of Internal Revenue pursuant to 
section 1420 (c) of the Internal Revenue Code of 1939 after 
December 31, 1950, or to the Secretary of the Treasury or his 
delegates pursuant to subtitle F of the Internal Revenue Code of 
1954 after December 31, 1954, as determined by the Secretary of 
f e^us^c 60^6 1-
the Treasury by applying the applicable rates of tax under such 78S2. 
subchapter or chapter 21 to such wages, which wages shall be 
certified by the Secretary of Health, Education, and Welfare on 
the basis of the records of wages established and maintained by 
such Secretary in accordance with such reports, less the amounts 
specified in clause (1) of subsection (b) of this section; and 
"(4) the taxes imposed by subchapter E of chapter 1 of the 
Internal Revenue Code of 1939, with respect to self-employment 
^*^ ^tat. 936. 
income (as defined in section 481 of such Code), and by chapter 2 
of the Internal Revenue Code of 1954 with respect to self- 140!^^*^ 1401-
Post, p. 845. 
820 
PUBLIC L
t
A
W 880-AUG. 1, 1966 
[70 STAT. 
employment income (as defined in section 1402 of such Code) 
reported to the Commissioner of Internal Revenue on tax returns 
under such subchapter or to the Secretary of the Treasury or 
7852."^^ 60 0 1- 
]^j^ delegate on tax returns under subtitle F of such Code, as 
determined by the Secretary of the Treasury by applying the 
applicable rate of tax under such subchapter or chapter to such 
self-employment income, which self-employment income shall be 
certified by the Secretary of Health, Education, and Welfare on 
the basis of the records of self-employment income established 
and maintained by the Secretary of Health, Education, and 
Welfare in accordance with such returns, less the amounts 
specified in clause (2) of subsection (b) of this section. 
The amounts appropriated by clauses (3) and (4) shall be transferred 
from time to time from the general fund in the Treasury to the 
Federal Old-Age and Survivors Insurance Trust Fund, and the 
amounts appropriated by clauses (1) and (2) of subsection (b) shall 
be transferred from time to time from the general fund in the Treasury 
to the Federal Disability Insurance Trust Fund, such amounts to be 
determined on the basis of estimates by the Secretary of the Treasury 
of the taxes, specified in clauses (3) and (4) of this subsection, paid 
to or deposited into the Treasury; and proper adjustments shall be 
made in amounts subsequently transferred to the extent prior estimates 
were in excess of or were less than the taxes specified in such clauses 
(3) and (4) of this subsection, 
biut* *!n*8*ur ?n'"e 
"(^) There is hereby created on the books of the Treasury of the 
Trust Fund. 
United States a trust fund to be known as the 'Federal Disability In-
surance Trust Fund'. 
The Federal Disability Insurance Trust Fund 
shall consist of such amounts as may be appropriated to, or deposited 
Appropriation, 
jj^^ such f 
uud as provided in this section. 
There is hereby appropriated 
to the Federal Disability Insurance Trust Fund for the fiscal year 
ending June 30, 1957, and for each fiscal year thereafter, out of any 
moneys in the Treasury not otherwise appropriated, amounts equiva-
lent to 100 per centum of— 
"(1) 1/^ of 1 per centum of the wages (as defined in section 
p*o"^(^p^p.^'824, 
^^^^ ^^ *^^^ Internal Revenue Code of 1954) paid after December 
839-84 il 843. 
' 
31, 1956, and reported to the Secretary of the Treasury or his 
delegate pursuant to subtitle F of the Internal Revenue Code of 
7852."^^ 60 0 1
- 
1954, which wages shall be certified by the Secretary of Health, 
Education, and Welfare on the basis of the records of wages estab-
lished and maintained by such Secretary in accordance with such 
reports; and 
"(2) % of 1 per centum of the amount of self-employment 
84^***'' ^^* *^^ 
income (as defined in section 1402 of the Internal Revenue Code 
of 1954) reported to the Secretary of the Treasury or his delegate 
on tax returns under subtitle F of the Internal Revenue Code of 
78^52."^^ 60 0 1- 
j[954 fQj. g^j^y taxable year beginning after December 31, 1956, 
which self-employment income shall be certified by the Secretary 
of Health, Education, and Welfare on the basis of the records 
of self-employment income established and maintained by the 
Secretary of Health, Education, and Welfare in accordance with 
such returns, 
tefs** %'AhJ Tmst 
" (^) With respect to the Federal Old-Age and Survivors Insurance 
Funds! 
* "
^
"
^ Trust Fund and the Federal Disability Insurance Trust Fund (here-
inafter in this title called the 'Trust Funds') there is hereby created 
a body to be known as the Board of Trustees of the Trust Funds 
(hereinafter in this title called the 'Board of Trustees') which Board 
of Trustees shall be composed of the Secretary of the Treasury, the 
Secretary of Labor, and the Secretary of Health, Education, and Wei-
Managing trus- fare, all ex officio. 
The Secretary of the Treasury shall be the Man-
70 STAT.] 
PUBLIC LAW 880-AUG. 1, 1956 
821 
aging Trustee of the Board of Trustees (hereinafter in this title 
called the 'Managing Trustee'). 
The Commissioner of Social Secur-
ity shall serve as Secretary of the Board of Trustees. It shall be the 
duty of the Board of Trustees to— 
"(1) Hold the Trust Funds; 
"(2) Report to the Congress not later than the first day of 
March of each year on the operation and status of the Trust 
Funds during the preceding hscal year and on their expected 
operation and status during the next ensuing five fiscal years; 
"(3) Eeport immediately to the Congress whenever the Board 
of Trustees is of the opinion that during the ensuing five fiscal 
years either of the Trust Funds will exceed three times the high-
est annual expenditures from such Trust Fund anticipated dur-
ing that five-fiscal-year period, and whenever the Board of 
Trustees is of the opinion that the amount of either of the Trust 
Funds is unduly small; and 
"(4) Recommend improvements in administrative procedures 
and policies designed to effectuate the proper coordination of the 
old-age and survivors insurance and Federal-State unemployment 
compensation program. 
The report provided for in paragraph (2) above shall include a state- 
_ _ 
ment of the assets of, and the disbursements made from, the Trust me'rts 
Funds during the preceding fiscal year, an estimate of the expected 
future income to, and disbursements to be made from, the Trust Funds 
during each of the next ensuing five fiscal years, and a statement of the 
actuarial status of the Trust Funds. 
Such report shall be printed 
as a House document of the session of the Congress to which the report 
is made. 
"(d) It shall be the duty of the Managing Trustee to invest such 
portion of the Trust Funds as is not, in his judgment, required to meet 
current withdrawals. Such investments may be made only in interest-
bearing obligations of the United States or in obligations guaranteed 
as to both principal and interest by tlie United States. 
For such 
purpose such obligations may be acquired (1) on original issue at 
par, or (2) by purchase of outstanding obligations at the market price. 
The purposes for which obligations of the United States may be issued 
under the Second Liberty Bond Act, as amended, are hereby extended 
to authorize the issuance at par of public-debt obligations for pur-
chase by the Trust Funds. 
Such obligations issued for purchase by 
the Trust Funds shall have maturities fixed with due regard for the 
needs of the Trust Funds, and bear interest at a rate equal to the 
average rate of interest, computed as to the end of the calendar month 
next preceding the date of such issue, borne by all marketable interest-
bearing obligations of the United States then forming a part of the 
Public Debt that are not due or callable until after the expiration of 
five years from the date of original issue; except that where such 
average rate is not a multiple of one-eighth of 1 per centum, the 
rate of interest of such obligations shall be the multiple of one-eighth 
of 1 per centum nearest such average rate. 
Such obligations shall be 
issued for purchase by the Trust Funds only if the Managing Trustee 
determines that the purchase in the market of other interest-bearing 
obligations of the United States, or of obligations guaranteed as to 
both principal and interest by the United States on original issue or at 
the market price, is not in the public interest. 
"(e) Any obligations acquired by the Trust Funds (except special 
obligations issued exclusively to the Trust Funds) may be sold by the 
Managing Trustee at the market price, and such special obligations 
may be redeemed at par plus accrued interest. 
Reports to Con-
gress. 
Statement of ae-
sets and disburse-
Investmftntj 
40 Stat. 28e. 
31 use 774. 
* of obllga-
822 
PUBLIC LAW 880-AUG. 1, 1956 
[70 ST A T . 
Credit of inter-
est and proceeds. 
42 u s e 401-422, 
1001 note. 
2 6 U S C app. 
1400 et 
seq. 
2 6 u s e 
1401-
1403, 3101-3125. 
Post, 
pp. 824, 
839-841,843, 845. 
Tax refunds. 
26 u s e 6413. 
26 u s e 
app. 
1426. 
26 u s e 3121. 
Post, 
pp. 824, 
839-841, 843. 
a p p . 
26 U S C 
1420. 
26 u s e 
6 0 0 l-
7852. 
"(f) The interest on, and the proceeds from the sale or redemption 
of, any obligations held in the Federal Old-Age and Survivors Insur-
ance Trust Fund and the Federal Disability Insurance Trust Fund 
shall be credited to and form a part of the Federal Old-Age and Sur-
vivors Insurance Trust Fund and the Disability Insurance Trust 
Fund, respectively. 
"(g). (1) The Managing Trustee is directed to pay from the Trust 
Funds into the Treasury the amounts estimated by him and the Secre-
tary of Health, Education, and Welfare which will be expended, out 
of moneys appropriated from the general funds in the Treasury, dur-
ing a three-month period by the Department of Health, Education, 
and Welfare and the Treasury Department for the administration 
of titles I I and V I I I of this Act and subchapter E of chapter 1 and 
subchapter A of chapter 9 of the Internal Revenue Code of 1939, and 
chapters 2 and 21 of the Internal Revenue Code of 1954. Such pay-
ments shall be covered into the Treasury as repayments to the account 
for reimbursement of expenses incurred in connection with the admin-
istration of titles II and VIII of this Act and subchapter E of chapter 
1 and subchapter A of chapter 9 of the Internal Revenue Code of 1939, 
and chapters 2 and 21 of the Internal Revenue Code of 1954. 
There 
are hereby authorized to be made available for expenditure, out of 
either or both of the Trust Funds, such amounts as the Congress 
may deem appropriate to pay the costs of administration of this title. 
After the close of each fiscal year, the Secretary of Health, Education, 
and Welfare shall analyze the costs of administration of this title 
incurred during such fiscal year in order to determine the portion of 
such costs which should have been borne by each of the Trust Funds 
and shall certify to the Managing Trustee the amount, if any, which 
should be transferred from one to the other of such Trust Funds in 
order to insure that each of the Trust Funds has borne its proper share 
of the costs of administration of this title incurred during such fiscal 
year. 
The Managing Trustee is authorized and directed to transfer 
any such amount from one to the other of such Trust Funds in accord-
ance with any certification so made. 
"(2) The Managing Trustee is directed to pay from time to time 
from the Trust Funds into the Treasury the amount estimated by him 
as taxes which are subject to refund under section 6413 (c) of the 
Internal Revenue Code of 1954 with respect to wages (as defined in 
section 1426 of the Internal Revenue Code of 1939 and section 3121 
of the Internal Revenue Code of 1954) paid after December 31, 1950. 
Such taxes shall be determined on the basis of the records of wages 
established and maintained by the Secretary of Health, Education, 
and Welfare in accordance with the wages reported to the (Commis-
sioner of Internal Revenue pursuant to section 1420 (c) of the Internal 
Revenue Code of 1939 and to the Secretary of the Treasury or his 
delegate pursuant to subtitle F of the Internal Revenue Code of 1954, 
and the Secretary shall furnish the Managing Trustee such information 
as may be required by the Trustee for such purpose. The payments 
by the Managing Trustee shall be covered into the Treasury as repay-
ments to the account for refunding internal revenue collections. Pay-
ments pursuant to the first sentence of this paragraph shall be made 
from the Federal Old-Age and Survivors Insurance Trust Fund and 
the Federal Disability Insurance Trust Fund in the ratio in which 
amounts were appropriated to such Trust Funds under clause (3) 
of subsection (a) of this section and clause (1) of subsection (b) of 
this section. 
"(3) Repayments made under paragraph (1) or (2) shall not be 
available for expenditures but shall be carried to the surplus fund of 
the Treasury. 
If it subsequently appears that the estimates under 
70 STAT.] 
PUBLIC LAW 880-AUG. 1, 1956 
823 
either such paragraph in any particular period were too high or too 
low, appropriate adjustments shall be made by the Managing Trustee 
in future payments. 
"(h) Benefit payments required to be made under section 223 shall 
^^^' ^' ^^^' 
be made only from the Federal Disability Insurance Trust Fund. 
All 
other benefit payments required to be made under this title shall be 
made only from the Federal Old-Age and Survivors Insurance Trust 
Fund." 
(f) Subsection (h) (1) of section 218 of such Act is amended to 
42 use 4i8. 
read as follows: 
"(h) (1) All amounts received by the Secretary of the Treasury 
under an agreement made pursuant to this section shall be deposited 
in the Trust Funds in the ratio in which amounts are appropriated 
to such Funds pursuant to subsections (a) (3) and (b) (1) of 
section 201." 
(g) Subsection (j) of section 218 of such Act is amended to read 
as follows: 
"Failure To Make Payments 
"(j) In case any State does not make, at the time or times due, the 
payments provided for under an agreement pursuant to this section, 
there shall be added, as part of the amounts due, interest at the rate of 
6 per centum per annum from the date due until paid, and the Secre-
tary of Health, Education, and Welfare may, in his discretion, deduct 
such amounts plus interest from any amounts certified by him to the 
Secretary of the Treasury for payment to such State under any other 
provision of this Act. 
Amounts so deducted shall be deemed to have 
been paid to the State under such other provision of this Act. Amounts 
equal to the amounts deducted under this subsection are hereby appro-
priated to the Trust Funds in the ratio in which amounts are deposited 
m such Funds pursuant to subsection (h) (1)." 
(h) Subsections (e) and (f) of section 221 of such Act are amended 
^2 use 421. 
to read as follows: 
"(e) Each State which has an agreement with the Secretary under 
^**** coats, 
this section shall be entitled to receive from the Trust Funds, in ad-
vance or by way of reimbursement, as may be mutually agreed upon, 
the cost to the State of carrying out the agreement under this section. 
The Secretary shall from time to time certify such amount as is neces-
sary for this purpose to the Managing Trustee, reduced or increased, 
as the case may be, by any sum (for which adjustment hereunder has 
not previously been made) by which the amount certified for any prior 
period was greater or less than the amount which should have been 
paid to the State under this subsection for such period; and the Man-
aging Trustee, prior to audit or settlement by the General Accounting 
Office, shall make payment from the Trust Funds at the time or times 
fixed by the Secretary, in accordance with such certification. 
Appro-
priate adjustments between the Federal Old-Age and Survivors In-
surance Trust Fund and the Federal Disability Insurance Trust Fund 
with respect to the payments made under this subsection shall be made 
in accordance with paragraph (1) of subsection (g) of section 201 
(but taking into account any refunds under subsection (f) of this 
section) to insure that the Federal Disability Trust Fund is charged 
with all expenses incurred which are attributable to the administration 
of section 223 and the Federal Old-Age and Survivors Insurance 
^ ' « ' ?• ^is. 
Trust Fund is charged with all other expenses. 
"(f) All money paid to a State under this section shall be used solely 
for the purposes for which it is paid; and any money so paid which 
is not used for such purposes shall be returned to the Treasury of the 
United States for deposit in the Trust Funds." 
65 Stat. 119. 
7 u s e 1461 e( 
824 
PUBLIC LAW 880-AUG. 1, 1956 
[70 STAT. 
(i) The heading of title I I of the Social Security Act is amended 
to read as follows: 
"TITLE II—FEDERAL OLD-AGE, SURVIVORS, AND DIS-
ABILITY INSURANCE B E N E F I T S " 
26 use 3121. 
(j) Section 3121 (1) (6) of the Internal Revenue Code of 1954 is 
amended— 
(1) by striking "TRUST FUND", in the heading, and inserting 
in lieu thereof "TRUST FUNDS" ; and 
(2) by inserting after "Federal Old-Age and Survivors Insur-
ance Trust Fund" the following: "and the Federal Disability 
Insurance Trust Fund". 
EXTENSION o r COVERAGE 
Foreign Agricultural Workers 
42 use 410, 
SEC. 104. (a) Section 210 (a) (1) (B) of the Social Security Act is 
amended to read as follows: 
"(B) Service performed by foreign agricultural workers (i) 
under contracts entered into in accordance with title V of the 
Agricultural Act of 1949, as amended, or (ii) lawfully admitted 
e g " 
" 
to the United States from the Bahamas, Jamaica, and the other 
British West Indies, or from any foreign country or possession 
thereof, on a temporary basis to perform agricultural labor;". 
Employees of Federal Home Loan Banks and of the Tennessee Valley 
Authority 
(b) (1) Section 210 (a) (6) (B) (ii) of such Act is amended by 
inserting "a Federal Home Loan Bank," after "a Federal Reserve 
Bank,". 
(2) Section 210 (a) (6) (C) (vi) of such Act is amended to read as 
follows: 
"(vi) by any individual to whom the Civil Service Retirement 
Act does not apply because such individual is subject to another 
retirement system (other than the retirement system of the Ten-
nessee Valley Authority);". 
Share-Farming Arrangements 
(c) (1) Section 210 (a) of such Act is amended by striking out 
"or" at the end of paragraph (14), by striking out the period at the 
end of paragraph (15) and inserting in lieu thereof a semicolon, and 
by addmg after paragraph (15) the following new paragraph: 
"(16) Service performed by an individual under an arrange-
ment with the owner or tenant of land pursuant to which— 
"(A) such individual undertakes to produce agricultural 
or horticultural commodities (including livestock, bees, poul-
try, and fur-bearing animals and wildlife) on such land, 
"(B) the agricultural or horticultural commodities pro-
duced by such individual, or the proceeds therefrom, are to 
be divided between such individual and such owner or tenant, 
and 
"(C) the amount of such individuaPs share depends on 
the amount of the agricultural or horticultural commodities 
produced; or". 
(2) Section 211 (a) (1) of such Act is amended by adding at the 
end thereof the following: "except that the preceding provisions of 
70 STAT.] 
PUBLIC LAW 880-AUG. 1, 1956 
826 
this paragraph shall not apply to any income derived by the owner 
or tenant of land if (A) such income is derived under an arrangement, 
between the owner or tenant and another individual, which provides 
that such other individual shall produce agricultural or horticultural 
commodities (including livestock, bees, poultry, and fur-bearing ani-
mals and wildlife) on such land, and that there shall be material 
participation by the owner or tenant in the production or the manage-
ment of the production of such agricultural or horticultural commodi-
ties, and (B) there is material participation by the owner or tenant 
with respect to any such agricultural or horticultural commodity;", 
(3) Section 211 (c) (2) of such Act is amended to read as follows: 
« use 4i u 
"(2) The performance of service by an individual as an em-
ployee (other than service described in section 210 (a) (14) (B) 
^
^
2 use AIO. 
performed by an individual who has attained the age of eighteen, 
service described in section 210 (a) (16), and service described in 
paragraph (4) of this subsection) ;". 
Professional Self-Employed 
(d) Paragraph (5) of section 211 (c) of such Act is amended to read 
as follows: 
"(5) The performance of service by an individual in the exer-
cise of his profession as a doctor of medicine or Christian Science 
practitioner; or the performance of such service by a partnership." 
Certain State and Local Employees 
(e) Section 218 (d) (6) of such Act is amended by adding at the 
^^ use 4i8. 
end thereof the following new sentences: "For the purposes of this 
subsection, any retirement system established by the State of Florida, 
Georgia, New York, North Dakota, Pennsylvania, Tennessee, Wash-
ington, Wisconsin, or the Territon'^ of Hawaii, or any political 
subdivision of any such State or Territory, which, on, before, or 
after the date of enactment of this sentence is divided into two di-
visions or parts, one of which is composed of positions of members 
of such system who desire coverage under an agreement under this 
section and the other of which is composed of positions of members of 
such system who do not desire such coverage, shall, if the State or 
Territory so desires and if it is provided that there shall be included 
in such division or part composed of members desiring such coverage 
the positions of individuals who become members of such system after 
such coverage is extended, be deemed to be a separate retirement 
system with respect to each such division or part. 
The position of any 
individual which is covered by any retirement system to which the 
P
receding sentence is applicable shall, if such individual is ineligible to 
ecome a member of such system on the date of enactment of such 
sentence or, if later, the day he first occupies such position, be deemed 
to be covered by the separate retirement system consisting of the 
positions of members of the division or part who do not desire coverage 
under the insurance system established under this title. 
For the pur-
poses of this subsection, in the case of any retirement system oi the 
State of Florida, Georgia, Minnesota, North Dakota, Pennsylvania, 
Washington, or the Territory of Hawaii which covers positions of 
employees of such State or Territory who are compensated in whole 
or in part from grants made to such State or Territory under title III, 
there shall be deemed to be, if such State or Territory so desires, a 
separate retirement system with respect to any of the following: (A) 
the positions of such employees; (B) the positions of all employees 
of such State or Territory covered Isy such retirement system who 
are employed in the department of such State or Territory in which 
826 
PUBLIC LAW 880-AUG. 1, 1956 
[70 STAT. 
the employees referred to in clause (A) are employed; or (C) em-
ployees of such State or Territory covered by such retirement system 
who are employed in such department of such State or Territory in 
positions other than those referred to in clause (A)." 
Certain Nonprofessional School District Employees 
(f) Notwithstanding the provisions of subsection (d) of section 
42 use 418. 
218 of the Social Security Act, any agreement under such section 
entered into prior to the date of enactment of this Act by the State 
of Florida, Nevada, New Mexico, Minnesota, Oklahoma, Pennsyl-
vania, Texas, Washington, or the Territory of Hawaii shall if the 
State or Territory concerned so requests, be modified prior to July 1, 
1957, so as to apply to services performed by employees of the respec-
tive public school districts of such State or Territory who, on the 
date such agreement is made applicable to such services, are not in 
positions the incumbents of which are required by State or Terri-
torial law or regulation to have valid State or Territorial teachers' 
or administrators' certificates in order to receive pay for their services. 
The provisions of this subsection shall not apply to services of any 
such employees to which any such agreement applies without regard 
to this subsection. 
Policemen and Firemen in the States of Florida, North Carolina, 
Oregon, South Carolina, and South Dakota 
(g) Section 218 of such Act is amended by adding at the end thereof 
the following new subsection: 
42 use 418. 
Policemen and Firemen in Certain States 
"(p) Any agreement with the State of Florida, North Carolina, 
Oregon, South Carolina, or South Dakota entered into pursuant to 
this section prior to the date of enactment of this subsection may, not-
withstanding the provisions of subsection (d) (5) (A) and the refer-
ences thereto in subsections (d) (1) and (d) (3), be modified pursuant 
to subsection (c) (4) to apply to service performed by employees of 
such State or any political subdivision thereof in any policeman's or 
fireman's position covered by a retirement system in effect on or after 
the date of the enactment of this subsection, but only upon compliance 
with the requirements of subsection (d) (3). 
For the purposes of the 
preceding sentence, a retirement system which covers positions of 
policemen or firemen, or both, and other positions shall, if the State 
concerned so desires, be deemed to be a separate retirement system with 
respect to the positions of such policemen or firemen, or both, as the 
case may be." 
Ministers 
42 use 411. 
(h) Paragraph (7) (B) of section 211 (a) of the Social Security 
Act is amended to read as follows: 
"(B) a citizen of the United States performing service de-
scribed in subsection (c) (4) as an employee of an American 
42 use 410. 
employer (as defined in section 210 (e)) or as a minister in a 
foreign country who has a congregation which is composed 
predominantly of citizens of the United States,". 
Effective Dates 
(i) (1) The amendment made by subsection (a) shall apply with 
respect to service performed after 1956. The amendments made by 
70 STAT.] 
PUBLIC LAW 880-AUG. 1, 1956 
82!7 
paragraph (1) of subsection (c) shall apply with respect to service 
performed after 1954. The amendment made by paragraph (2) of 
subsection (c) shall apply with respect to taxable years ending after 
1955. The amendment made by paragraph (3) of subsection (c) 
shall apply with respect to taxable years ending after 1954. 
The 
amendment made by subsection (d) shall apply with respect to taxable 
years ending after 1955. The amendment made by subsection (h) 
shall apply with respect to the same taxable years with respect to 
which the amendment made by section 201 (g) of this Act applies, 
^'e- P« 822. 
(2) (A) Except as provided in subparagraphs (B) and (C), the 
amendments made by subsection (b) shall apply only wdth respect to 
service performed after June 30, 1957, and only if— 
(1) in the case of the amendment made by paragraph (1) of 
such subsection, the conditions prescribed in subparagraph (B) 
are met; and 
(ii) in the case of the amendment made by paragraph (2) of 
such subsection, the conditions prescribed in subparagraph (C) 
are met. 
(B) The amendtnent made by paragraph (1) of subsection (b) shall 
be effective only if— 
(i) the Federal Home Loan Bank Board submits to the Sec-
retary of Health, Education, and Welfare, and the Secretary 
approves, before July 1, 1957, a plan, with respect to employees 
of Federal Home Loan Banks, for the coordination, on an 
equitable basis, of the benefits provided by the retirement system 
applicable to such employees with the benefits provided by title 
I I of the Social Security Act; and 
(ii) such plan specifies, as the effective date of the plan, July 
1, 1957, or the first day of a prior calendar quarter beginning 
not earlier than January 1, 1956. 
If the plan specifies as the effective date of the plan a day before July 
1, 1957, the amendment made by paragraph (1) of subsection (b) 
shall apply with respect to service performed on or after such effec-
tive date; except that, if such effective date is prior to the day on 
which the Secretary approves the plan, such amendment shall not 
apply with respect to service performed, prior to the day on which 
the Secretary approves the plan, by an individual who is not an 
employee of a Federal Home Loan Bank on such day. 
(C) The amendment made by paragraph (2) of subsection (b) 
shall be effective only if— 
(i) the Board of Directors of the Tennessee Valley Authority 
submits to the Secretary of Health, Education, and Welfare, and 
the Secretary approves, before July 1, 1957, a plan, with respect 
to employees of the Tennessee Valley Authority, for the coordi-
nation, on an equitable basis, of the benefits provided by the 
retirement system applicable to such employees with the benefits 
provided by title I I of the Social Security Act; and 
(ii) such plan specifies, as the effective date of the plan, July 1, 
1957, or the first day of a prior calendar quarter beginning not 
earlier than January 1,1956. 
If the plan specifies as the effective date of the plan a day before 
July 1,1957, the amendment made by paragraph (2) of subsection (b) 
shall apply with respect to service performed on or after such effective 
date; except that, if such effective date is prior to the day on which 
the Secretary approves the plan, such amendment shall not apply 
with respect to service performed, prior to the day on which the 
Secretary approves the plan, by an individual who is not an employee 
of the Tennessee Valley Authority on such day. 
(D) The Secretary of Health, Education, and Welfare shall, on 
Report to Con-
or before July 31, 1957, submit a report to the Congress setting forth ^®'^* 
828 
PUBLIC LAW 880-AUG. 1, 1956 
[70 STAT. 
the details of any plan app>u\e'i by him under subparagraph (B) or 
(C). 
AMENDMENTS W I T H RESPECT TO AGRICULTURAL LABOR 
42 use 409. 
SEC. 105. (a) Paragraph (2) of subsection (h) of section 209 of the 
Social Security Act is amended to read as follows : 
"(2) Cash remuneration paid by an employer in any calendar 
year to an employee for agricultural labor unless (A) the cash re-
muneration paid in such year by the employer to the employee for 
such labor is $150 or more, or (B) the employee performs agricul-
tural labor for the employer on twenty days or more during such 
year for cash remuneration computed on a time basis;" 
(b) Section 210 of such Act is amended hj adding at the end thereof 
the following new subsection: 
42 u s e 410. 
"Crew Leader 
"(o) The term 'crew leader' means an individual who furnishes 
individuals to perform agricultural labor for another person, if such 
individual pays (either on his own behalf or on behalf of such 
person) the individuals so furnished by him for the agricultural labor 
performed by them and if such individual has not entered into a 
written agreement with such person whereby such individual has been 
designated as an employee of such person; and such individuals fur-
nished by the crew leader to perform agricultural labor for another 
person shall be deemed to be the employees of such crew leader. 
A 
crew leader shall, with respect to services performed in furnishing 
individuals to perform agricultural labor for another person and 
service performed as a member of the crew, be deemed not to be an 
employee of such other person." 
42 use 413. 
fc) Section 213 (a) (2) (B) (iy) of such Act (relating to quarters 
of coverage) is amended by striking out "if such wages are less than 
$200" and inserting in lieu thereof "if such wages equal or exceed $100 
but are less than $200". 
(d) The amendment made by subsection (a) of this section shall 
apply with respect to remuneration paid after 1956, and the amend-
ment made by subsection (b) of this section shall apply with respect 
to service performed after 1956. 
COMPUTATION OF SELF-EMPLOYMENT INCOME BY FARM OPERATORS 
42 use 411, 
gj5C_ 106. (a) Subsection (a) of section 211 of the Social Security 
Act is amended by striking out the last two sentences and inserting 
in lieu thereof the following: "In the case of any trade or business 
which is carried on by an individual or by a partnership and in which, 
if such trade or business were carried on exclusively by employees, the 
major portion of the services would constitute agricultural labor as 
42 use 410. 
defined in section 210 (f) — 
"(i) in the case of an individual, if the gross income derived 
by him from such trade or business is not more than $1,800, the 
net earnings from self-employment derived by him from such 
trade or business may, at his option, be deemed to be 66% percent 
of such gross income; or 
"(ii) in the case of an individual, if the gross income derived 
by him from such trade or business is more than $1,800 and the 
net earnings from self-employment derived by him from such 
trade or business (computed under this subsection without regard 
to this sentence) are less than $1,200, the net earnings from self-
70 STAT.] 
PUBLIC LAW 880-AUG. 1, 1956 
82^9 
employment derived by him from such trade or business may, at 
his option, be deemed to be $1,200; and 
"(lii) in the case of a member of a pr^rtnership, if his distribu-
tive share of the gross income of the partnership derived from 
such trade or business (after such groos income has been reduced 
by the sum of all pavments to which section 707 (c) of the Internal 
Kevenue Code of 1954 applies) is not more than $1,800, his dis- 
^6 use 707. 702,. 
tributive share of income described in section 702 (a) (9) of such 
Code derived from such trade or business may, at his option, be 
deemed to be an amount equal to 66% percent of his distributive 
share of such gross income (after such gross income has been so 
reduced); or 
"(iv) in the case of a member of a partnership, if his distribu-
tive share of the gross income of the partnership derived from 
such trade or business (after such gross income has been reduced 
by the sum of all payments to which section 707 (c) of the Internal 
Revenue Code of 1954 applies) is more than $1,800 and his dis-
tributive share (whether or not distributed) of income described 
in section 702 (a) (9) of such Code derived from such trade or 
business (computed under this subsection without regard to this 
sentence) is less than $1,200, his distributive share of income 
described in such section 702 (a) (9) derived from such trade 
or business may, at his option, be deemed to be $1,200. 
For purposes of the preceding sentence, gross income means— 
"(v) in the case of any such trade or business in which the 
income is computed under a cash receipts and disbursements 
method, the gross receipts from such trade or business reduced 
by the cost or other basis of property which was purchased and 
sold in carrying on such trade or business, adjusted (after such 
reduction) in accordance with the provisions of paragraphs (1) 
through (6) of this subsection; and 
"(vi) in the case of any such trade or business in which the 
income is computed under an accrual method, the gross income 
from such trade or business, adjusted in accordance with the pro-
visions of paragraphs (1) through (6) of this subsection; 
and, for purposes of such sentence, if an individual (including a mem-
ber of a partnership) derives gross income from more than one such 
trade or business, such gross income (including his distributive share 
of the gross income of any partnership derived from any such trade 
or business) shall be deemed to have been derived from one trade or 
business." 
(b) The amendment made by subsection (a) shall be effective with 
EffecUvity. 
respect to taxable years ending on or after December 31, 1956. 
TIME FOR FILING REPORTS OF EARNINGS AND FOR CORRECTING SECRETARY'S 
RECORDS 
SEC. 107. (a) The second sentence of section 203 (g) (1) of the So-
cial Security Act (relating to report of earnings to Secretary) is 
••2 use 403. 
amended by striking out "third" and inserting in lieu thereof "fourth". 
The amendment made by the preceding sentence shall apply in the 
case of monthly benefits under title I I of such Act for months in any 
taxable year (of the individual entitled to such benefits) beginning 
after 1954. 
(b) Section 205 (c) (1) (B) of such Act (relating to period of lim- 
^2 use 405. 
itation for correcting records) is amended by striking out "two" and 
inserting in lieu thereof "three". 
830 
PUBLIC LtAW 880-AUG. 1, 1956 
[70 S T A T . 
ALTERNATIVE INSURED STATUS 
42 use 414. 
SEC. 108. Section 214 (a) (3) of the Social Security Act is amended 
to read as follows: 
individu^'\"'"'*** 
"(^) Iri the case of any individual who did not die prior to Janu-
ary 1, 1955, the term 'fully insured individual' means any individual 
who meets the requirements of paragraph (2) and, in addition, any 
individual with respect to whom all but four of the quarters elapsing 
after 1954 and prior to (i) July 1, 1957, or (ii) if later, the quarter in 
which he attained retirement age or died, whichever first occurred, are 
quarters of coverage, but only if not fewer than six of such quarters 
so elapsing are quarters of coverage." 
42 u s e 415. 
42 u s e 402. 
DROP-OUT o r FIVE YEARS OF LOW EARNINGS 
SEC. 109. (a) Section 215 (b) (4) of the Social Security Act is 
amended by striking out the last sentence and by striking out "four" 
in the first sentence and inserting in lieu thereof "live". 
(b) The amendment made by subsection (a) shall apply in the case 
of monthly benefits under section 202 of the Social Security Act, and 
the lump-sum death payment under such section, based on the wages 
and self-employment income of an individual— 
(1) who becomes entitled to benefits under subsection (a) of 
such section on the basis of an application filed on or after the 
date of enactment of this Act; or 
(2) who is (but for the provisions of subsection (f) (6) of 
section 215 of the Social Security Act) entitled to a recomputation 
of his primary insurance amount under subsection (f) (2) (A) 
of such section 215 based on an application filed on or after the date 
of enactment of this Act; or 
(3) who dies without becoming entitled to benefits under sub-
section (a) of such section 202 and no individual was entitled to 
survivor's benefits and no lump-sum death payment was payable 
under such section 202 on the basis of an application filed prior 
to such date of enactment; or 
(4) who dies on or after such date of enactment and whose sur-
vivors are (but for the provisions of subsection (f) (6) of such 
section 215) entitled to a recomputation of his primary insurance 
amount under subsection (f) (4) (A) of such section 215; or 
(5) who dies prior to such date of enactment and (A) whose 
survivors are (but for the provisions of subsection (f) (6) of such 
section 215) entitled to a recomputation of his primary insurance 
amount under subsection (f) (4) (A) of such section 215, and 
(B) on the basis of whose wages and self-employment income 
no individual was entitled to survivor's benefits under such sec-
tion 202, and no lump-sum death payment was payable under such 
section, on the basis of an application filed prior to such date of 
enactment and no individual was entitled to such a benefit, with-
out the filing of an application for the month in which this Act 
is enacted or any month prior thereto. 
SPECIAL STARTING AND CLOSING DATES FOR CERTAIN INDIVIDUALS 
SEC. 110. In the case of an individual who died or became (witli-
42 use 402. 
out the application of section 202 (j) (1) of the Social Security Act) 
entitled to old-age insurance benefits in 1957 and with respect to whom 
not less than six of the quarters elapsing after 1955 and prior to the 
quarter following the quarter in which he died or became entitled to 
old-age insurance benefits, whichever first occurred, are quarters of 
coverage, his primary insurance amount shall be computed under 
70 STAT.] 
PUBLIC LAW 880-AUG. 1, 1956 
881 
section 215 (a) (1) (A) of such Act, with a starting date of December 
'•2 use 4is. 
31,1955, and a closing date of July 1,1957, but only if it would result 
in a higher primary insurance amount. 
For the purposes of section 
215 (f) (3) (C) of such Act, the determination of an individual's clos-
ing date under the preceding sentence shall be considered as a deter-
mination of the individual's closing date under section 215 (b) (3) 
(A) of such Act, and the recomputation provided for by such section 
215 (f) (3) (C) shall be made using July 1,1957, as the closing date, 
but only if it would result in a higher primary insurance amount. 
In 
any such computation on the basis of a July 1, 1957, closing date, the 
total of his wages and self-employment income after December 31, 
1956, shall, if it is in excess of $2,100, be reduced to such amount. 
TIME LIMITATION ON FILING REQUESTS FOR HEARING 
SEC. 111. (a) Section 205 (b) of the Social Security Act is amended 
^2 use 40S. 
by striking out the second sentence and inserting in lieu thereof the 
following: "Upon request by any such individual or upon request by 
a wife, widow, former wife divorced, husband, widower, child, or 
parent who makes a showing in writing that his or her rights may be 
prejudiced by any decision the Secretary has rendered, he shall give 
such applicant and such other individual reasonable notice and oppor-
tunity for a hearing with respect to such decision, and, if a hearing 
is held, shall, on the basis of evidence adduced at the hearing, affirm, 
modify, or reverse his findings of fact and such decision. Any such 
request with respect to such a decision must be filed within such 
period after such decision as may be prescribed in regulations of the 
Secretary, except that the period so prescribed may not be less than 
six months after notice of such decision is mailed to the individual 
making such request." 
(b) The amendment made by subsection (a) shall be effective upon 
enactment; except that the period of time prescribed by the Secretary 
pursuant to the third sentence of section 205 (b) of the Social Security 
Act, as amended by subsection (a) of this section, with respect to 
decisions notice of which has been mailed by him to any individual 
prior to the enactment of this Act may not terminate for such individ-
ual less than six months after the date of enactment of this Act. 
EARNINGS TEST FOR BENEFICIARIES IN ACTIVE MILITARY OR NAVAL SERVICE 
OVERSEAS 
SEC. 112. (a) Section 203 (e) (4) (C) of the Social Security Act is 
^^ use 403. 
amended by inserting "or performed outside the United States in the 
active militarjr or naval service of the United States" after "performed 
within the United States by the individual as an employee". 
(b) The first sentence of section 203 (k) of such Act is amended by 
inserting "and are not performed in the active military or naval serv-
ice of the United States" after "if he performs services outside the 
United States as an employee and such services do not constitute em-
ployment as defined in section 210". 
(c) The amendments made by subsections (a) and (b) shall be ap-
plicable with respect to taxable years ending after 1955. 
E F F E C T OF REMARRIAGE I N CASE O F C E R T A I N WIDOWS 
SEC. 113. Section 202 (e) of the Social Security Act is amended by 
adding after paragraph (2) the following new paragraph: 
"(3) In the case of any widow of an individual— 
"(A) who marries another individual, and 
42 u s e 402. 
42 u s e 416. 
42 u s e 402. 
832 
PUBLIC liAW 880-AUG. 1, 1956 
[70 S T A T . 
"(B) whose marriage to the individual referred to in subpara-
graph (A) is terminated by his death but she is not his widow 
(as defined in section 216 (c)), 
the marriage to the individual referred to in clause (A) shall, for 
purposes of paragraph (1), be deemed not to have occurred. 
No bene-
fits shall be payable under this subsection by reason of the preceding 
sentence for any month prior to whichever of the following is the 
latest: (i) the month in which the death referred to in subparagraph 
(B) of the preceding sentence occurs, (ii) the twelfth month before 
the month in which such widow files application for purposes of this 
paragraph, or (iii) November 1956." 
EXTENSION OF PERIOD FOR FILING PROOF OF SUPPORT AND APPLICATIONS 
FOR LUMP-SUM DEATH PAYMENT 
SEC. 114. (a) Section 202 of the Social Security Act is amended by 
inserting after subsection (o) the following new subsection: 
"Extension of Period for Filing Proof of Support and Applications 
for Lump-Sum Death Payment 
" (p) In any case in which there is a failure— 
"(1) to file proof of support under subpar^rgraph (D) of sub-
section (c) (1), clause (i) or (ii) of subparagraph (E) of subsec-
tion (f) (1), or subparagraph (B) of subsection (h) (1), or under 
clause (B) of subsection (f) (1) of this section as in effect prior 
42us^*3oinote. 
^ ^^^ Social Security Act Amendments of 1950 within the period 
prescribed by such subparagraph or clause, or 
"(2) to file, in the case of a death after 1946, application for a 
lump-sum death payment under subsection (i), or under subsec-
tion (g) of this section as in effect prior to the Social Security 
Act Amendments of 1950, within the period prescribed by such 
subsection, 
and it is shown to the satisfaction of the Secretary that there was good 
cause for failure to file such proof or application, as the case may be, 
within such period, such proof or application shall be deemed to have 
been filed within such period if it is filed within two years following 
such period or within two years following August 1956, whichever is 
later. 
The determination of what constitutes good cause for purposes 
of this subsection shall be made in accordance with regulations of the 
Secretary." 
(b) The amendment made by subsection (a) shall apply in the 
case of lump-sum death payments under title I I of the Social Security 
Act, and monthly benefits under such title for months after August 
1956, based on applications filed after August 1956. 
COMPUTATION OF AVERAGE MONTHLY WAGE 
42 use 415. 
gjj^j 115 (a) Section 215 (b) (1) of the Social Security Act is 
amended to read as follows: 
"(b) (1) An individual's 'average monthly wage' shall be the quo-
tient obtained by dividing the total of his wages and self-employment 
income after his starting date (determined under paragraph (2)) and 
prior to his closing date (determined under paragraph (3)), by the 
number of months elapsing after such starting date and prior to such 
closing date, excluding from such elapsed monUis— 
" (A) the months in any year prior to the year in which he at-
tained the age of twenty-two if less than two quarters of such prior 
year were quarters of coverage, and 
to S T A T . ] 
PUBLIC L)AW 8 8 0 - A U G . 1, 1966 
833 
"(B) the months in any year any part of which was included 
in a period of disability except the months in the year in which 
such period of disability began if their inclusion in such elapsed 
months (together with the inclusion of the wages paid in and self-
employment income credited to such year) will result in a higher 
primary insurance amount. 
Notwithstanding the preceding provisions of this paragraph when the 
number of the elapsed months computed under such provisions (includ-
ing a computation after the application of paragraph (4)) is less than 
eighteen, it shall be increased to eighteen." 
(b) Section 215 (d) (5) of such Act is amended by striking out 
^^ "^^ '*^** 
"any quarter prior to 1951 any part of which was included in a period 
of disabilitv shall be excluded from the elapsed quarters unless it was 
a quarter of coverage, and any wages paid in any such quarter shall not 
be counted." and inserting in lieu thereof "all quarters, in any year 
prior to 1951 any part of which was included in a period of disability, 
shall be excluded from the elapsed quarters and any wages paid in such 
year shall not be counted. 
Notwithstanding the preceding sentence, 
the quarters in the year in which a period of disability began shall 
not be excluded from the elapsed quarters and the wages paid in such 
year shall be counted if the inclusion of such quarters and the counting 
of such wages result in a higher primary insurance amount." 
(c) Section 215 (e) (4) of such Act is amended to read as follows: 
"(4) in computing an individual's average monthly wage, 
there shall not be counted— 
"(A) any wages paid such individual in any year any part 
of which was included in a period of disability, or 
"(B) any self-employment income of such individual cred-
ited pursuant to section 212 to any year any part of which 
"^^ "^^ ^^2. 
was included in a period of disability, 
unless the months of such year are included as elapsed months 
pursuant to section 215 (b) (1) (B)." 
(d) The amendments made by this section shall apply in the case 
of an individual (1) who becomes entitled (without the application 
of section 202 (j) (1) of the Social Security Act) to benefits under 
*^ ^^^ ^°^' 
section 202 (a) of such Act after the date of enactment of this Act, 
or (2) who dies without becoming entitled to benefits under such 
section 202 (a) and on the basis of whose wages and self-employment 
income an application for benefits or a lump-sum death payment 
under section 202 of such Act is filed after the date of enactment of 
this Act, or (3) who becomes entitled to benefits under section 223 
of such Act, or (4) who files, after the date of enactment of this Act, an 
42'^sc'/ie!* 
application for a disability determination which is accepted as an 
application for purposes of section 216 (i) of such Act. 
ADVISORY COUNCIL ON SOCIAL SECURITY FINANCING 
SEC. 116. (a) There is hereby established an Advisory Council on 
Social Security Financing for the purpose of reviewing the status of 
the Federal Old-A^e and Survivors Insurance Trust Fund and of 
the Federal Disability Insurance Trust Fund in relation to the long-
term commitments 01 the old-age, survivors, and disability insurance 
program. 
(b) The Council shall be appointed by the Secretary after Febru- 
Appointment, 
ary 1957 and before January 1958 without regard to the civil-service 
laws and shall consist of the Commissioner of Social Security, as 
chairman, and of twelve other persons who shall, to the extent possi-
ble, represent employers and employees in equal numbers, and self-
employed persons and the public. 
692Z5 0 - 5 7 -57(Vol. 70) 
834 
PUBLIC L
i
A
W 880-AUG. 1, 1956 
[TO STAT. 
Tec hnlcal as-
sistance. 
(c) (1) The Council is authorized to engage such technical assist-
ance, including actuarial services, as may be required to carry out its 
functions, and the Secretary shall, in addition, make available to the 
Council such secretarial, clerical, and other assistance and such actu-
arial and other pertinent data prepared by the Department of Health, 
Education, and Welfare as it may require to carry out such functions. 
Compensation. 
(2) Members of the Council, while serving on business of the Coun-
cil (inclusive of travel time), shall receive compensation at rates fixed 
by the Secretary, but not exceeding $50 per day; and shall be en-
titled to receive actual and necessary traveling expenses and per diem 
in lieu of subsistence while so serving away from their places of 
residence. 
*
*
*
P
*
"
*
* 
(d) The Council shall make a report of its findings and recommen-
dations (including recommendations for changes in the tax rates in 
Post, p. 84S. 
sections 1401, 3101, and 3111 of the Internal Revenue Code of 1954) 
to the Secretary of the Board of Trustees of the Federal Old-Age and 
Survivors Insurance Trust Fund and the Federal Disability Insur-
ance Trust Fund, such report to be submitted not later than January 
1,1959, after which date such Council shall cease to exist. 
Such find-
ings and recommendations shall be included in the annual report of 
the Board of Trustees to be submitted to the Congress not later 
than March 1,1959. 
(e) Not earlier than three years and not later than two years prior 
to January 1 of the first year for which each ensuing scheduled in-
crease (after 1960) in the tax rates is effective under the provisions 
Post, p. 845. 
of sections 3101 and 3111 of the Internal Revenue Code of 1954, the 
Secretary shall appoint an Advisory Council on Social Security 
Financing with the same functions, and constituted in the same man-
ner, as prescribed in the preceding subsections of this section. 
Each 
such Council shall report its findings and recommendations, as pre-
scribed in subsection (d), not later than January 1 of the year pre-
ceding the year in which such scheduled change in the tax rates occurs, 
after which date such Council shall cease to exist, and such report 
and recommendations shall be included in the annual report of the 
Board of Trustees to be submitted to the Congress not later than the 
March 1 following such January 1. 
42 u s e 405. 
CORRECTION OF RECORDS OF SELF-EMPLOYMENT INCOME 
SEC. 117. Section 205 (c) (5) of the Social Security Act is amended 
by striking out "in excess of the amount which has been deleted pur-
suant to this subparagraph as payments erroneously included in such 
records as wages paid to such individual in such taxable year" in sub-
paragraph (F), striking out "or" at the end of subparagraph (H), 
striking out the period at the end of subparagraph (I) and inserting 
in lieu thereof "; or", and adding after subparagraph (I) the follow-
ing new subparagraph: 
"(J) to include self-employment income for any taxable year, 
up to, but not in excess of, the amount of wages deleted by the 
Secretary as payments erroneously included in such records as 
wages paid to such individual, if such income (or net earnings 
from self-employment), not already included in such records as 
self-employment income, is included in a return or statement (re-
ferred to m subparagraph (F)) filed before the expiration of 
the time limitation following the taxable y^ar in which such dele-
tion of wages is made." 
Ante, p. 815. 
70 STAT.] 
PUBLIC LAW 880-AUG. 1, 1956 
835 
SUSPENSION OF BENEFITS OF ALIENS WHO ARE OUTSIDE THE UNITED STATES 
SEC. 118. (a) Section 202 of the Social Security Act is amended by 
^/^s^.Yis*. 
adding after subsection (s) (added by section 102 of this Act) the 
following new subsection: 
"Suspension of Benefits of Aliens Who Are Outside the United States 
"(t) (1) Notwithstanding any other provision of this title, no 
monthly benefits shall be paid under this section or under section 223 
to any individual who is not a citizen or national of the United States 
for any month which is— 
"(A) after the sixth consecutive calendar month during all of 
which the Secretary finds, on the basis of information furnished 
to him by the Attorney General or information which otherwise 
comes to his attention, that such individual is outside the United 
States, and 
"(B) prior t6 the first month thereafter for all of which such 
individual has been in the United States. 
"(2) Paragraph (1) shall not apply to any individual who is a 
citizen of a foreign country which the Secretary finds has in effect a 
social insurance or pension system which is of general application in 
such country and under which— 
"(A) periodic benefits, or the actuarial equivalent thereof, 
are paid on account of old age, retirement, or death, and 
"(B) individuals who are citizens of the United States but not 
citizens of such foreign countrv and who qualify for such benefits 
are permitted to receive such benefits or the actuarial equivalent 
thereof while outside such foreign country without regard to the 
duration of the absence. 
"(3) Paragraph (1) shall not apply in any case where its applica-
tion would m contrary to any treaty obligation of the United States 
in effect on the date of the enactment of this subsection. 
"(4) Paragraph (1) shall not apply to any benefit for any month 
if— 
"(A) not less than forty of the quarters elapsing before such 
month are quarters of coverage for the individual on whose v/ages 
and self-employment income such benefit is based, or 
"(B) the individual on whose wages and seli-employment in-
come such benefit is based has, before such month, resided in the 
United States for a period or periods aggregating ten years or 
more, or 
"(C) the individual entitled to such benefit is outside the 
United States while in the active military or naval service of the 
United States. 
"(5) No person who is, or upon application would be, entitled to a 
monthly benefit under this section for December 1956 shall be deprived, 
by reason of paragraph (1), of such benefit or any other benefit based 
on the wages and self-employment income of the individual on whose 
wages and self-employment income such monthly benefit for December 
1956 is based. 
"(6) If an individual is outside the United States when he dies and 
no benefit may, by reason of paragraph (1), be paid to him for the 
month preceding the month in which he dies, no lump-sum death pay-
ment may be made on the basis of such individual's wages and self-
employment income. 
"(7) Subsections (b) and (c) of section 203 shall not apply with 
^'«'' P* ^^'^• 
respect to any individual for any month for which no monthly benefit 
may be paid to him by reason of paragraph (1) of this subsection. 
888 
PUBLIC LAW 880-AUG. 1, 1956 
[70 ST 
AT. 
" (8) The Attorney General shall certify to the Secretary such infor-
mation regarding aliens who depart from the United States to any 
foreign country (other than a foreign country which is territorially 
contiguous to the continental United States) as may be necessary to 
enable the Secretary to carry out the purposes of this subsection and 
shall otherwise aid, assist, and cooperate with the Secretary in obtain-
ing such other information as may De necessary to enable the Secretary 
to carry out the purposes of this subsection." 
(b) The amendment made bv subsection (a) shall appl;y in the case 
of monthly benefits under title II of the Social Security Act for 
months after December 1056 and in the case of lump-sum death pay-
42 use 402. 
ments under section 202 (i) of such Act with respect to deaths 
occurring after December 1956. 
DEriNmON OF SECRETARY 
SEC. 119. As used in this Act and in the provisions of the Social 
Security Act set forth in this Act, the term "Secretary" means the 
Secretary of Health, Education, and Welfare. 
AMENDMENTS PRESERVING RELATIONSHIP BETWEEN RAILROAD RETIREMENT 
AND OLD-AGE AND SURVIVORS INSURANCE 
Po»i, p. 877. 
SEC. 120. (a) Section 1 (q) of the Kailroad Retirement Act of 
1937, as amended, is amended by striking out "1954" and inserting in 
lieu thereof "1956". 
45 use 228«. 
(b) Section 5 (f) (2) of the Railroad Retirement Act of 1937, as 
amended, is amended— 
(1) by striking out "age sixty-five" each place it appears and 
inserting in lieu thereof "retirement age (as defined m section 
216 (a) of the Social Securitjr Act)"; and 
(2) by striking out "section 202" each place it appears and 
inserting in lieu thereof "title II". 
(c) Section 5 (k) (2) of the Railroad Retirement Act of 1937, as 
amended, is amended to read as follows: 
"(2) (A) The Board and the Secretair of Health, Education, and 
Welfare shall determine, no later than January 1, 1954, the amount 
which would place the Federal Old-Age and Survivors Insurance 
Trust Fund in the same position in which it would have been at the 
close of the fiscal year ending June 30,1952, if service as an employee 
after December 31,1936, had been included in the term 'employment' 
as defined in the Social Security Act and in the Federal Insurance 
6i?iut!%. 
Contributions Act. 
21 use* 3161- 
"(B) On January 1,1954, for the fiscal year ending June 30,1953, 
^^inta,p. a2^poat, and at the close of each fiscal year beginning with the fiscal year end-
1^.^839^841. 843, jj^g j^ne 30,1954, the Board and the Secretary of Health, Education, 
and Welfare shall determine, and the Board shall certify to the Secre-
tary of the Treasury for transfer from the Railroad Retirement 
Account (hereafter termed 'Retirement Account') to the Federal Old-
Age and Survivors Insurance Trust Fund, interest for such fiscal year 
at the rate specified in subparagraph (D) on the amount determined 
under subparagraph (A) less the sum of all offsets made under sub-
paragraph (C) (i). 
"(C) (i) At the close of the fiscal year ending June 30, 1953, and 
each fiscal year thereafter, the Board and thfe Secretary of Health. 
Education, and Welfare shall determine the amount, if any, which ii 
added to or subtracted from the Federal Old-Age and Survivors 
Insurance Trust Fund would place such Fund in the same position in 
which it would have been if service as an employee after December 
70 STAT.] 
P U B U C LAW 880-AUG. 1, 1966 
88T 
31, 1936, had been included in the term 'employment' as defined in 
the Social Security Act and in the Federal Insurance Contributions 
Act. For the purposes of this subparagraph, the amount determined 
Je^sc ^
3 I'o i-
under subparagraph (A)j less such onsets as have theretofore been 3i^.^ 
^^ 
made under this subdivision of this subparagraph, and the amount pp. sfd^Mi/'Ma' 
determined under subparagraph (B) for the fiscal year under con- ***• 
sideration shall be deemed to be part of the Federal Old-Age and 
Survivors Insurance Trust Fund. Such determination shall be made 
no later than June 15, following the close of the fiscal year. If such 
amount is to be added to the Federal Old-Age and Survivors Insur-
ance Trust Fund, the board shall, within ten days after the determina-
tion, certify such amount to the Secretary of the Treasury for transfer 
from the Eetirement Account to the Federal Old-Age and Survivors 
Insurance Trust Fund; if such amount is to be subtracted from the 
Federal Old-Age and Survivors Insurance Trust Fund, the Secretary 
of Health, Education, and Welfare shall, within ten days after the 
determination, certify such amount to the Secretary of the Treasury 
for transfer from the Federal Old-Age and Survivors Insurance Trust 
Fund to the Retirement Account. The amount so certified shall fur-
ther include interest (at the rate determined in subparagraph (D) 
for the fiscal year under consideration) payable from the close of such 
fiscal year until the date of certification. In the event the Secretary 
of Health, Education, and Welfare is required under the provisions 
of this subdivision of this subparagraph to certify to the Secretary of 
the Treasury an amount to be transferred to the Retirement Account 
from the Federal Old-Age and Survivors Insurance Trust Fund, 
the Secretary of Health, Education, and Welfare, in lieu of such 
certification, may offset the amount determined under the first sentence 
of this subdivision of this subparagraph against the amount deter-
mined under subparagraph (A) as diminished by any prior offsets 
and the offsets shall be made to be effective as of the first day of the 
fiscal year following the fiscal year under consideration. 
"(ii) At the close of the fiscal year ending June 30, 1958, and each 
fiscal year thereafter, the Board and the Secretary of Health, Educa-
tion, and Welfare shall determine the amount, if any, which, if added 
to or subtracted from the Federal Disability Insurance Trust Fund 
would place such Fund in the same position in which it would have 
been if service as an employee after December 31, 1936, had been 
included in the term 'employment' as defined in the Social Security 
Act and in the Federal Insurance Contributions Act. Such determi- 
2 6^sc*3 lo i-
nation shall be made no later than June 15, following the close of the 3125. 
fiscal year. If such amount is to be added to the Federal Disability pp. 83l.'84i,"^43' 
Insurance Trust Fund the Board shall, within ten days after the ***' 
determination, certify such amount to the Secretary of the Treasury 
for transfer from the Retirement Account to the Federal Disability 
Insurance Trust Fund; if such amount is to be subtracted from the 
Federal Disability Insurance Trust Fund the Secretary of Health, 
Education, and Welfare shall, within ten days after the determina-
tion, certify such amount to the Secretary of the Treasury for trans-
fer from the Federal Disability Insurance Trust Fund to the Retire-
ment Account. The amount so certified shall further include interest 
(at the rate determined in subparagraph (D) for the fiscal year under 
consideration) payable from the close of such fiscal year until the date 
of certification. 
"(D) For the purposes of subparagraphs (B) and (C), for any 
fiscal year, the rate of interest to be used shall be equal to the average 
rate of interest, computed as of May 31 preceding the close of such 
fiscal year, borne by all interest-bearing obligations of the United 
States then forming a part of the public debt; except that where such 
838 
PUBLIC LAW 880-AUG. 1, 1966 
[70 ST A T . 
average rate is not a multiple of one-eighth of 1 per centum, the rate 
of interest shall be the multiple of one-eighth of 1 per centum next 
lower than such average rate. 
"(E) The Secretary of the Treasury is authorized and directed 
to transfer to the Federal Old-Age and Survivors Insurance Trust 
Fund or the Federal Disability Insurance Trust Fund from the Retire-
ment Account or to the Retirement Account from the Federal Old-Age 
and Survivors Insurance Trust Fund or the Federal Disability Insur-
ance Trust Fund, as the case may be, such amounts as, from time 
to time, may be determined by the Board and the Secretary of Health, 
Education, and Welfare pursuant to the provisions of subparagraphs 
(B) and (C) of this subsection, and certified by the Board or the 
Secretary of Health, Education, and Welfare for transfer from the 
Retirement Account or from the Federal Old-Age and Survivors In-
surance Trust Fund or the Federal Disability Insurance Trust Fund." 
42 u s e 402. 
Ante, p. 835. 
«2 Stat. 736, 798, 
807. 
64 Stat. 991. 
50 u s e 783, 822, 
823. 
Ante, p. 815. 
68 Stat. 1142. 
5 U S C 7 4 0 b -
7401. 
EFFECT ON BENEFITS OF CONVICTTION OF ESPIONAGE, SABOTAGE, TREASON, 
SEDITION, OR SUBVERSIVE ACTIVITIES; EMPLOYMENT BY 
COMMUNIST 
ORGANIZATIONS 
SEC. 121. (a) Section 202 of the Social Security Act is amended by 
adding after subsection (t) (added by section 118 of this Act) the 
following new subsection: 
"Conviction of Subversive Activities, Etc. 
"(u) (1) If any individual is convicted of any offense (committed 
after the date of the enactment of this subsection) under— 
"(A) chapter 37 (relating to espionage and censorship), chap-
ter 105 (relating to sabotage), or chapter 115 (relating to treason, 
sedition, and subversive activities) of title 18 of the United States 
Code, or 
"(B) section 4, 112, or 113 of the Internal Security Act of 
1950, as amended, 
then the court may, in addition to all other penalties provided by law, 
impose a penalty that in determining whether any monthly insurance 
benefit under this section or section 223 is payable to such individual 
for the month in which he is convicted or for any month thereafter, 
and in determining the amount of any such benefit payable to such 
individual for any such month, there shall not be taken into account— 
"(C) any wages paid to such individual or to any other indi-
vidual in the calendar quarter in which such conviction occurs or 
in any prior calendar quarter, and 
"(D) any net earnings from self-employment derived by such 
individual or by any other individual during a taxable year in 
which such conviction occurs or during any prior taxable year. 
"(2) As soon as practicable after an additional penalty has, pur-
suant to paragraph (1), been imposed with respect to any individual, 
the Attorney General shall notify the Secretary of such imposition. 
"(3) If any individual with respect to whom an additional penalty 
has been imposed pursuant to paragraph (1) is granted a pardon of the 
offense by the President of the United States, such additional penalty 
shall not apply for any month beginning after the date on which such 
pardon is granted." 
(b) The amendment made by subsection (a) of this section shall not 
be construed to restrict or otherwise affect any of the provisions of 
the Act entitled "An Act to prohibit payments of annuities to officers 
and employees of the United States convicted of certain offenses, and 
for other purposes", approved September 1, 1954 (Public Law 769, 
Eighty-third Congress). 
Y
O S T A T . ] 
PUBLIC LAW 880-AUG. 1, 1956 
(c) Section 210 (a) of the Social Security Act is amended by 
adding at the end thereof the following new paragraph: 
42 use 4io. 
"(17) Service in the employ of any organization which is 
performed (A) in any quarter during any part of which such 
organization is registered, or there is in effect a final order of the 
Subversive Activities Control Board requiring such organiza-
tion to register, under the Internal Security Act of 1950, as 
so use 781 note, 
amended, as a Communist-action organization, a Communist-
front organization, or a Communist-infiltrated organization, and 
(B) after June 30,1956." 
(d) Section 3121 (b) of the Internal Eevenue Code of 1954 is ^^f^ stat. 4i7, 
amended by adding at the end thereof the following new paragraph: 
26 use 3121. 
"(17) service in the employ of any organization which is per-
formed (A) in any quarter during any part of which such 
organization is registered, or there is in effect a final order of 
the Subversive Activities Control Board requiring such organ-
ization to register, under the Internal Security Act of 1950, as 
souse78inote. 
amended, as a Communist-action organization, a Communist-
front organization, or a Communist-infiltrated organization, and 
(B) after June 30,1956." 
TITLE II—AMENDMENTS TO INTERNAL REVENUE CODE 
OF 1954 
DISTRICT OF COLUMBIA CREDIT U N I O N S 
SEC. 201. (a) (1) Subchapter B of chapter 21 of the Internal Rev-
enue Code of 1954 is amended by adding at the end thereof the follow- 
68A stat. 416., 
.• 
"^ 
*
= 
26 use 311.1, 
mg new section: 
3112. 
"SEC. 3113. DISTRICT OF COLUMBIA CREDIT UNIONS. 
''"**' ^' ^^^' 
"Notwithstanding the provisions of section 16 of the Act of June 
23,1932 (D. C. Code, sec. 26-516; 47 Stat. 331), or any other provision 
of law (whether enacted before or after the enactment of this section) 
which grants to any credit union chartered pursuant to such Act of 
June 23,1932, an exemption from taxation, such credit union shall not 
be exempt from the tax imposed by section 3111." 
(2) The table of sections for such subchapter is amended by adding 
at the end thereof 
"Sec. 3113. District of Columbia credit unions." 
STAND-BY PAY 
(b) Section 3121 (a) (9) of the Internal Revenue Code of 1954 is 
26 use 3121. 
amended to read as follows: 
"(9) any payment (other than vacation or sick pay) made to 
an employee after the month in which— 
"(A) in the case of a man, he attains the age of 65, or 
"(B) in the case of a woman, she attains the age of 62, 
if such employee did not work for the employer in the period for 
which such payment is made; or". 
Ante, p. 743. 
840 
PUBLIC L
t
A
W 880-AUG. 1, 1966 
[70 STAT. 
FOREIGN AGRICUMTTRAI, WORKERS 
26 use 3171. 
(c) Section 3121 (b) (1) (B) of such Code is amended to read as 
follows: 
"(B) service performed b^ foreign agricultural workers 
(i) under contracts entered mto in accordance with title V 
of the Agricultural Act of 1949, as amended (65 Stat. 119; 
7 U. S. C. 1461-1468), or (ii) lawfully admitted to the United 
States from the Bahamas, Jamaica, and the other British 
West Indies, or from any foreign country or possession 
thereof, on a temporary basis to perform agricultural labor;". 
EMPLOYEES OF FEDERAL HOME LOAN BANKS AND OF THE TENNESSEE 
VALLEY AUTHORITY 
2
6 use 3121. 
(d) (1) Section 3121 (b) (6) (B) (ii) of such Code is amended by 
inserting "a Federal Home Loan Bank," after "a Federal Keserve 
Bank,". 
(2) Section 3121 (b) (6) (C) (vi) of such Code is amended to read 
as follows: 
"(^vi) by any individual to whom the Civil Service 
Retirement Act does not apply because such individual 
is subject to another retirement system (other than the 
retirement system of the Tennessee Valley Authority);". 
SHARE-FARMING ARRANGEMENTS 
(e) (1) Section 3121 (b) of such Code is amended by striking out 
"or" at the end of paragraph (14), by striking out the period at the 
end of paragraph (16) and inserting in lieu thereof a semicolon, and 
by adding after paragraph (15) the following new paragraph: 
"(16) service performed by an individual under an arrange-
ment with the owner or tenant of land pursuant to which— 
"(A) such individual undertakes to produce agricultural 
or horticultural commodities (including livestock, bees, poul-
try, and fur-bearing animals and wildlife) on such land, 
"(B) the agricultural or horticultural commodities pro-
duced by such individual, or the proceeds therefrom, are to 
be divided between such individual and such owner or tenant, 
and 
"(C) the amount of such individual's share depends on the 
amount of the agricultural or horticultural commodities 
produced; or". 
26 use 1402. 
(2) Section 1402 (a) (1) of such Code is amended by adding at 
the end thereof the following: "except that the preceding provisions 
of this paragraph shall not apply to any income derived by the owner 
or tenant of land if (A) such income is derived under an arran^-
ment, between the owner or tenant and another individual, which 
provides that such other individual shall produce agricultural or 
horticultural commodities (including livestock, bees, poultry, and 
fur-bearing animals and wildlife) on such land, and that there shall 
be material participation by the owner or tenant in the production or 
the management of the production of such agricultural or horticul-
tural commodities, and (B) there is material participation by the 
owner or tenant with respect to any such agricultural or horticultural 
commodity;". 
70 STAT.] 
PUBLIC U
A
W 880-AUG. 1, 1966 
841 
(3) Section 1402 (c) (2) of such Code is amended to read as follows: 
"(2) the performance of service by an individual as an em-
ployee (other than service described in section 3121 (b) (14) 
(B) performed by an individual who has attained the age of 18, 
service described in section 3121 (b) (16), and service described in 
^'«. P* 840. 
paragraph (4) of this subsection) ;". 
PROFESSIONAL SEXF-EMPLOYED 
(f) Section 1402 (c) (5) of such Code is amended to read as follows: 
"(5) the performance of service by an individual in the exer-
cise of his profession as a doctor of medicine, or Christian Science 
practitioner; or the performance of such service by a partnership." 
26 use 1402. 
MINISTERS 
26 u s e 1402. 
(g) Paragraph (8) (B) of section 1402 (a) of the Internal Kevenue 
Code of 1954 is amended to read as follows: 
"(B) a citizen of the United States performing service 
described in subsection (c) (4) as an employee of an Ameri-
can employer (as defined in section 3121 (h)) or as a minister 
^e use 3121. 
in a foreign country who has a congregation which is com-
posed predominantly of citizens of the United States,". 
AMENDMENTS W^ITH RESPECT TO AGRICULTURAL LABOR 
(h) (1) Paragraph (8) (B) of section 3121 (a) of the Internal 
26 use 3121. 
Revenue Code of 1954 is amended to read as follows: 
"(B) cash remuneration paid by an employer in any calen-
dar year to an employee for agricultural labor unless (i) the 
cash remuneration paid in such year by the employer to the 
employee for such labor is $150 or more, or (ii) the employee 
performs agricultural labor for the employer on 20 days or 
more during such year for cash remuneration computed on a 
time basis;". 
(2) Section 3121 of such Code is amended by adding at the end 
thereof the following new subsection: 
"(o) CREW LEADER.—For purposes of this chapter, the term 'crew 
leader' means an individual who furnishes individuals to perform agri-
cultural labor for another person, if such individual pays (either on 
his own behalf or on behalf of such person) the individuals so fur-
nished b^ him for the agricultural labor performed by them and if 
such individual has not entered into a written agreement with such 
person whereby such individual has been designated as an employee 
of such person; and such individuals furnished by the crew leader 
to perform agricultural labor for another person shall be deemed to 
be the employees of such crew leader. For purposes of this chapter 
and chapter 2, a crew leader shall, with respect to service performed ^^^6 use 140 
in furnishing individuals to perform agricultural labor for another 
Po'at, p. 84S. 
person and service performed as a member of the crew, be deemed 
not to be an employee of such other person." 
(3) Section 3102 (a) of such Code is amended by striking out 
26 use 3102. 
"$100" in the last sentence thereof, and inserting in lieu thereof''$150 
and the employee has not performed agricultural labor for the em-
ployer on 20 days or more in the calendar year for cash remuneration 
computed on a time basis". 
842 
PUBLIC LAW 880-AUG. 1, 1956 
[70 STAT, 
COMPUTATION OF SELF-EMPLOYMENT INCOME BY FARM OPERATORS 
26 use 1402. 
(j) Subsection (a) of section 1402 of the Internal Revenue Code of 
1954 is amended by striking out the last two sentences thereof and 
inserting in lieu thereof the following: "In the case of any trade or 
business which is carried on by an individual or by a partnership and 
in which, if such trade or business were carried on exclusively by em-
ployees, the major portion of the services would constitute agricul-
26 use 3121. 
tural labor as defined in section 3121 (g)— 
"(i) in the case of an individual, if the gross income derived 
by him from such trade or business is not more than $1,800, the 
net earnings from self-employment derived by him from such 
trade or business may, at his option, be deemed to be 66% percent 
of such ^ross income; or 
"(ii) m the case of an individual, if the gross income derived 
by him from such trade or business is more than $1,800 and the net 
earnings from self-employment derived by him from such trade 
or business (computed under this subsection without regard to 
this sentence) are less than $1,200, the net earnings from self-
employment derived by him from such trade or business may, 
at his option, be deemed to be $1,200; and 
"(iii) in the case of a member of a partnership, if his distribu-
tive share of the gross income of the partnership derived from 
such trade or business (after such gross income has been reduced 
26 use 707. 
Y)y the sum of all payments to which section 707^ (c) applies) is 
not more than $1,800, his distributive share of income described 
26 use 702. 
ijj section 702 (a) (9) derived from such trade or business may, 
at his option, be deemed to be an amount equal to 66% percent 
of his distributive share of such gross income (after such gross 
income has been so reduced); or 
"(iv) in the case of a member of a partnership, if his distribu-
tive share of the gross income of the partnership derived from 
such trade or business (after such gross income has been reduced 
26 use 707. 
]jy ^j^g gyjjj Qf oil payments to which section 707 (c) applies) is 
more than $1,800 and his distributive share (whether or not dis-
26 use 702. 
tributed) of income described in section 702 (a) (9) derived 
from such trade or business (computed under this subsection 
without regard to this sentence) is less than $1,200, his distribu-
tive share of income described in section 702 (a) (9) derived from 
such trade or business may, at his option, be deemed to be $1,200. 
For purposes of the preceding sentence, gross income means— 
"(v) in the case of any such trade or business in which the 
income is computed under a cash receipts and disbursements 
method, the gross receipts from such trade or business reduced 
by the cost or other basis of property which was purchased and 
sold in carrying on such trade or business, adjusted (after such 
reduction) in accordance with the provisions of paragraphs (1) 
through (7) of this subsection; and 
"(vi) in the case of any such trade or business in which the 
income is computed under an accrual method, the gross income 
from such trade or business, adjusted in accordance with the pro-
visions of paragraphs (1) through (7) of this subsection; 
and, for purposes of such sentence, if an individual (including a mem-
ber of a partnership) derives gross income from more than one such 
trade or business, such gross income (including his distributive share 
of the gross income of any partnership derived from any such trade 
or business) shall be deemed to have been derived from one trade or 
business." 
70 STAT.] 
PUBLIC LAW 880-AUG. 1, 1956 
843 
FOKEIGN SUBSIDIARIES 
(j) Subparagraph (A) of paragraph (8) of section 3121 (1) of the 
26 use 3121. 
Internal Revenue Code of 1954 is amended to read as follows: 
''(A.) a foreign corporation not less than 20 percent of the 
voting stock of which is owned by such domestic corporation; 
or". 
26 u s e 3121. 
FILING OF SUPPLEMENTAL LISTS BY NONPROFIT ORGANIZATIONS 
(k) The third sentence of section 3121 (k) (1) of such Code is 
amended by inserting "or at any time prior to January 1,1959, which-
ever is the later," after "the certificate is in effect,". 
EFFECTIVE DATE FOR WAIVER CERTIFICATES FILED BY NONPROFIT 
ORGANIZATIONS 
(1) The fifth sentence of section 3121 (k) (1) of such Code is 
26 use 3121. 
amended by striking out "the first day following the close of the 
calendar quarter in which such certificate is filed," and inserting in lieu 
thereof "the first day of the calendar quarter in which such certificate 
is filed or the first day of the succeeding calendar quarter, as may be 
specified in the certificate,". 
EFFECTIVE DATES 
(m) 
(1) The amendments made by subsection (a) and para-
graph (1) of subsection (h) shall apply Avith respect to remuneration 
l^aid after 1956. The amendment made by subsection (b) shall apply 
with respect to remuneration paid after October 1956. The amend-
ments made by subsection (c) and paragraph (2) of subsection (h) 
shall apply with respect to service performed after 1956. The amend-
ments made by paragraphs (1) and (2) of subsection (d) shall apply 
with respect to service with respect to which the amendments made by 
paragraphs (1) and (2) of subsection (b) of section 104 of this Act 
^^'«' P- ^24. 
apply. The amendments made by paragraph (1) of subsection (e) 
shall apply with respect to service performed after 1954. The amend-
ment made by paragraph (3) of such subsection shall apply with re-
spect to taxable years ending after 1954. The amendments made by 
paragraph (2) of subsection (e) and by subsection (f) shall apply with 
respect to taxable years ending after 1955. The amendment made by 
subsection (i) shall apply witJi respect to taxable years ending on or 
after December 31, 1956. Thdxamendment made by subsection (1) 
sliall apply with respect to certificates filed after 1956 under section 
3121 (k) of the Internal Revenue Code of 1954. 
(2) (A) Except as provided in subparagraph (B), the amendment 
made by subsection (g) shall apply only with respect to taxable years 
ending after 1956. 
(B) Any individual who, for a taxable year ending after 1951 
and prior to 1957, had income which by reason of the amendment made 
by subsection (g) would have been included within the meaning of 
"net earnings from self-employment" (as such term is defined in section 
1402 (a) of the Internal Revenue Code of 1954), if such income had 
26 use i402. 
been derived in a taxable year ending after 1956 by an individual who 
had filed a waiver certificate under section 1402 (e) of such Code, 
may elect to have the amendment made by subsection (g) apply to his 
taxable years ending after 1954 and prior to 1957. No election made 
by any individual under this subparagraph shall be valid unless such 
individual has filed a waiver certificate under section 1402 (e) of such 
844 
PUBLIC L
A
W 880-AUG. 1, 1966 
[70 ST AT. 
26 use 1402. 
26 use 1402. 
26 use 1402. 
Code prior to the making of such election or files a waiver certificate 
at the time he makes such election. 
(C) Any individual described in subparagraph (B) who has filed 
a waiver certificate under section 1402 (e) of such Code prior to the 
date of enactment of this Act, or who files a waiver certificate under 
such section on or before the due date of his return (including any 
extension thereof) for his last taxable year ending prior to 1957, 
must make such election on or before the due date of his return (includ-
ing any extension thereof) for his last taxable year ending prior to 
1957, or before April 16,1957, whichever is the later. 
(D) Any individual described in subparagraph (B) who has not 
filed a waiver certificate under section 1402 (e) of such Code on or 
before the due date of his return (including any extension thereof) 
for his last taxable year ending prior to 1957 must make such election 
on or before the due date of his return (including any extension 
thereof) for his first taxable year ending after 1956. Any individual 
described in this subparagraph whose period for filing a waiver cer-
tificate under section 1402 (e) of such Code has expired at the time 
he makes such election may, notwithstanding the provisions of para-
graph (2) of such section, file a waiver certificate at the time he 
makes such election. 
(E) An election under subparagraph (B) shall be made in such 
manner as the Secretary of the Treasury or his delegate shall prescribe 
by regulations. Notwithstanding the provisions of paragraph (3) 
of section 1402 (e) of such Code, the waiver certificate filed by an 
individual who makes an election under subparagraph (B) (regardless 
of when filed) shall be effective for such individual's first taxable year 
ending after 1954 in which he had income which by reason of the 
amendment made by subsection (g) would have been included within 
the meaning of "net earnings from self-employment" (as such term is 
defined in section 1402 (a) of such Code), if such income had been 
derived in a taxable year ending after 1956 by an individual who had 
filed a waiver certificate under section 1402 (e) of such Code, or for 
the taxable vear prescribed by such paragraph (3) of section 1402 (e), 
if such taxable year is earlier, and for all succeeding taxable years. 
(F) No interest or penalty shall be assessed or collected for failure 
to file a return within the time prescribed by law, if such failure arises 
solely by reason of an election made by an individual under subpara-
graph (B), or for any underpayment of the tax imposed by section 
1401 of such Code arising solely by reason of such election, for the 
period ending with the date such individual makes an election under 
subparagraph (B). 
(3) Any tax under chapter 2 of the Internal Revenue Code of 1954 
which is due, solely by reason of the enactment of subsection (f), or 
paragraph (2) of subsection (e), of this section, for any taxable year 
ending on or before the date of the enactment of this Act shall be con-
sidered timely paid if payment is made in full on or before the last 
day of the sixth calendar month following the month in which this 
Act is enacted. In no event shall interest oe imposed on the amount 
of any tax due under such chapter solely by reason of the enactment 
of subsection (f), or paragraph (2) of subsection (e), of this section 
for any period before the day after the date of enactment of this Act 
(4) Any tax due under chapter 21 of the Internal Revenue Code of 
^(^pp.824,839- 1964 which is due, solely by reason of the enactment of subsection (d) 
II, 843; poet. p. ^^^ ^^ effective date prescribed pursuant to paragraph (2) (B) or 
(2) (C) of section 104 (i), for any calendar quarter beginning prior 
to the day on which the Secretary of Health, Education, and Welfare 
approves the plan which prescribes such effective date shall be con-
sidered timely paid if payment is made in full on or before the last 
Poat, p. 845. 
2 6 u s e 140 1-
1403. 
Poat, p. 845. 
26 
use 
3 125. 
84 
845; 
Ante, p 
3 10 1. 
827. 
70 STAT.] 
PUBLIC L
A
W 880-AUG. 1, 1966 
Mfi 
day of the sixth calendar month following the month in which such 
plan is approved. In no event shall interest be imposed on the amount 
of any such tax due under such chapter for any period before the day 
on which the Secretary of Health, Education, and Welfare approves 
such plan. 
CHANGES IN TAX SCHEDULES 
SEC. 202. (a) Section 1401 of the Internal Revenue Code of 1954 
" use uoi. 
is amended to read as follows: 
"SEC. 1401. RATE OF TAX. 
"In addition to other taxes, there shall be imposed for each taxable 
year, on the self-employment income of every individual, a tax as 
follows: 
"(1) in the case of any taxable year beginning after Decem-
ber 31,1956, and before January 1,1960, the tax shall be equal to 
3% percent of the amount of the self-employment income for such 
taxable year; 
"(2) in the case of any taxable year beginning after Decem-
ber 31, 1959, and before January 1, 1965, me tax shall be equal 
to ^Yg percent of the amount of the self-employment income for 
such taxable year; 
"(3) in the case of any taxable year beginning after Decem-
ber 31, 1964, and before January 1, 1970, the tax shall be equal 
to 4% percent of the amount of the self-employment income for 
such taxable year; 
"(4) in the case of any taxable year beginning after Decem-
ber 31, 1969, and beforei.January 1, 1975, the tax shall be equal 
to 5% percent of the amount of the self-employment income for 
such taxable year; and 
"(6) in the case of any taxable year beginning after Decem-
ber 31,1974, th^ tax shall be equal to 6% percent of the amount of 
the self-employment income for such taxable year." 
(b) Section 3101 of such code is amended to read as follows: 
aeuscaioi. 
"SEC 3101. RATE OF TAX. 
"In addition to other taxes, there is hereby imposed on the inc(Hne 
of every individual a tax equal to the following percentages of the 
wages (as defined in section 3121 (a)) receivedl>y him with respect 
to employment (as defined in section 3121 (b))— 
"(1) with respect to wages received during the calendar years 
1957 to 1959, both inclusive, the rate shall be 2i/4 percent; 
"(2) with respect to wages received during the calendar years 
1960 to 1964, botti inclusive, the rate shall be 2% percent: 
"(3) with respect to wages received during the calendar years 
1965 to 1969, both inclusive, the rate shall be 314 percent; 
"(4) with respect to wages received during the calendar years 
1970 to 1974, both inclusive, the rate shall be 3% percent; and 
"(5) with respect to wages received after December 31, 1974, 
the rate shall be 414 percent." 
(c) Section 3111 of such code is amended to read as follows: 
^a use siii. 
"SEC. Sill. RATE OF TAX. 
"In addition to other taxes, there is hereby imposed on eveij 
employer an excise tax, with respect to having individuals in his 
emi)loy, equal to the following percentages of the wages (as defined in 
section 3121 (a)) paid by him with respect to employment (as defined 
i^„V5^ ^"^124 
in section 3121 (b))— 
t39^s4i', tJti 
' 
"(1) with respect to wages paid during the calendar years 
1957 to 1969, both inclusive, the rate shall be 214 percent; 
PUBLIC LAW 880-AUG. 1, 1956 
[70 STAT, 
"(2) with respect to wages paid during the calendar years 
1960 to 1964, both inclusive, the rate shall be 2% percent; 
"(3) with respect to wages paid during the calendar years 
1965 to 1969, both inclusive, the rate shall be 3i/4 percent; 
"(4) with respect to wages paid during the calendar years 
1970 to 1974, both inclusive, the rate shall be d>% percent; and 
"(5) with respect to wages paid after December 31, 1974, the 
rate shall be 414 percent," 
Appiicabiuty. 
((J) i^j^g amendment made by subsection (a) shall apply with 
respect to taxable years beginnmg after December 31, 1956. 
The 
amendments made by subsections (b) and (c) shall apply with respect 
to remuneration paid after December 31,1956. 
TITLE III—PUBLIC ASSISTANCE AMENDMENTS 
DECLARATION OF PURPOSE 
SEC. 300. It is the purpose of this title (a) to promote the health of 
the Nation by assisting States to extend and broaden their provisions 
for meeting the costs of medical care for persons eligible for public 
assistance by providing for separate matching of assistance expendi-
tures for medical care, (b) to promote the well-bein^ of the Nation by 
encouraging the States to place greater emphasis on helping to 
strengthen family life and helping needy families and individuals 
attain the maximum economic and personal independence of which 
they are capable,, (c) to assist in improving the administration of pub-
lic assistance programs (1) through making grants and contracts, and 
entering into jointly financed cooperative arrangements, for research 
or demonstration projects and (2) through Federal-State programs of 
grants to institutions and traineeships and fellowships so as to provide 
training of public welfare personnel, thereby securing more adequately 
trained personnel, and (d) to improve aid to dependent children. 
PART I—MATCHING or ASSISTANCE EXPENDITURES FOR MEDICAL CARE 
MEDICAL CARE FOR OLD-AGE ASSISTANCE RECIPIENTS 
SEC. 301. (a) Clauses (1) and (2) of section 3 (a) of the Social 
Post, p. 852. 
Security Act are each amended by striking out "during such quarter 
as old-age assistance under the State plan" and inserting in lieu there-
of "during such quarter as old-age assistance in the form of money 
payments under the State plan". 
(b) Section 3 (a) (1) (A) of such Act is amended by striking out 
"who received old-age assistance for such month" and inserting in lieu 
thereof "who received old-age assistance in the form of money pay-
ments for such month". 
(c) Section 3 (a) of such Act is further amended by inserting the 
following new clause immediately before the period at the end thereof: 
", and (4) in the case of any State, an amount equal to one-half of the 
total of the sums expended during such quarter as old-age assistance 
under the State plan in the form of medical or any other type of 
remedial care (including expenditures for insurance premiums for 
such care or the cost thereof), not counting so much of such expendi-
ture for any month as exceeds the product of $6 multiplied by the 
total number of individuals who received old-age assistance under the 
State plan for such month". 
70 STAT.] 
PUBLIC LAW 880-AUG. 1, 1956 
8i7 
MEDICAL CARE FOR RECIPIENTS OF AID TO DEPENDENT CHILDREN 
42 u s e 603. 
P o s t , pp. 852, 
SEC. 302. (a) Clauses (1) and (2) of section 403 (a) of the Social 
Security Act are each amended by striking out "during such quarter 
as aid to dependent children under the State plan" and inserting in lieu 854, 
thereof "during such quarter as aid to dependent children in the form 
of money j)ayments under the State plan''. 
(b) Section 403 (a) (1) (A) of such Act is amended by striking out 
''with respect to whom aid to dependent children is paid for such 
month" and inserting in lieu thereof "with respect to whom aid to 
dependent children in the form of money payments is paid for such 
month". 
(c) Section 403 (a) of such Act is further amended by inserting the 
following new clause immediately before the period at the end thereof: 
"; and (4) in the case of any State, an amount equal to one-half of 
the total of the sums expended during such quarter as aid to dependent 
children under the State plan in the form of medical or any other type 
of remedial care (including expenditures for insurance premiums 
for such care or the cost thereof), not counting so much of such expend-
iture for any month as exceeds (A) the product of $3 multiplied by 
the total number of dependent children who received aid to dependent 
children under the State plan for such month plus (B) the product 
of $6 multiplied by the total number of other individuals who received 
aid to dependent children under the State plan for such month". 
MEDICAL CARE FOR RECIPIENTS OF AID TO THE BLIND 
SEC. 303. (a) Clauses (1) and (2) of section 1003 (a) of the Social 
t'^Tt?pp?h49, 
Security Act are each amended by striking out "during such quarter 853. 
as aid to the blind under the State plan" and inserting m lieu thereof 
"during such quarter as aid to the blind in the form of money pay-
ments under the State plan". 
(b) Section 1003 (a) (1) (A) of such Act is amended by striking 
out "who received aid to the blind for such month" and inserting in 
lieu thereof "who received aid to the blind in the form of money pay-
ments for such month". 
(c) Section 1003 (a) of such Act is further amended by inserting 
the following new clause immediately before the period at the end 
thereof: "; and (4) in the case of any State, an amount equal to 
one-half of the total of the sums expended during such quarter as aid 
to the blind under the State plan in the form of medical or any other 
type of remedial care (including expenditures for insurance premiums 
for such care or the cost thereof), not counting so much of such 
expenditure for any month as exceeds the product of $6 multiplied by 
the total number of individuals who received aid to the blind under 
the State plan for such month". 
MEDICAL CARE FOR RECIPIENTS OF AID TO PERMANENTLY AND TOTALLY 
DISABLED 
SEC. 304. (a) Clauses (1) and (2) of section 1403 (a) of the Social 
Security Act are each amended by striking out "during such quarter 
p\^g^t^ ^^.^^sso 
as aid to the j)ermanently and totally disabled under the State plan" 854." ^ ' 
and inserting in lieu thereof "during such quarter as aid to the perma-
nently and totally disabled in the form of money payments under the 
State plan". 
(b) Section 1403 (a) (1) (A) of such Act is amended by striking 
out "who received aid to the permanently and totally disabled for such 
month" and inserting in lieu thereof "who received aid to the perma-
848 
PUBLIC L
A
W 880-AUG. 1, 1956 
[70 STAT. 
nently and totally disabled in the form of money payments for such 
month". 
(c) Section 1403 (a) of such Act is further amended by inserting the 
following new clause immediately before the period at the end thereof: 
"; and (4) in the case of any State, an amount equal to one-half of the 
total of the sums expended during such quarter as aid to the perma-
nently and totally disabled under the State plan in the form of medi-
cal or any other type of remedial care (including expenditures for 
insurance premiums for such care or the cost thereof), not counting 
so much of such expenditure for any month as exceeds the product of 
$6 multiplied by the total number of individuals who received aid 
to the permanently and totally disabled under the State plan for such 
month". 
EFFECTIVE DATE 
SEO. 305. The amendments made by this part shall become effective 
July 1,1957. 
PART II—SERVICES IN PROGRAMS OF OLD-AGE ASSISTANCE, AID TO 
DEPENDENT CHILDREN, AID TO THE BLIND, AND AID TO THE PERMA-
NENTLY A
N
D TOTALLY DISABLED 
OLD-AGE ASSISTANCE 
42 use 301. 
SEC. 311. (a) The first sentence of section 1 of the Social Security 
Act is amended to read: "For the purpose of enabling each State to 
furnish financial assistance, as far as practicable under the conditions 
in such State, to aged needy individuals and of encouraging each State, 
as far as practic£U)le under such conditions, to help such individuals 
attain self-care, there is hereby authorized to be appropriated for each 
fiscal year a sirni sufficient to carry out the purposes of this title." 
42 use 302. 
(b^ Subsection (a) of section 2 of such Act is amended by striking 
out "and" before clause (10) thereof, and by striking out the period 
at the end of such subsection and inserting in lieu thereof a semicolon 
and the following new clause: "and (11) provide a description of the 
services (if any) which the State agency makes available to applicants 
for and recipients of old-age assistance to help them attain self-care." 
42 use 303. 
(c) (1) Clauses (1) and (2) of section 3 (a) of such Act are each 
Poat. p. 852. 
amended by striking out ", which shall be used exclusively as old-age 
assistance,". 
(2) Clause (3) of such section 3 (a) is amended by striking out 
"which amount shall be used for paying the costs of administering the 
State plan or for old-age assistance, or both, and for no other purpose" 
and inserting in lieu thereof "including services which are provided 
by the staff of the State agency (or of me local agency administering 
the State plan in the political subdivision) to applicants for and 
recipients of old-age assistance to help them attain self-care". 
AID TO D E P E N D E N T CHILDREN 
42 use 601. 
SEC. 312. (a) The first sentence of section 401 of the Social Security 
Act is amended to read: "For the purpose of encouraging the care of 
dependent children in their own homes or in the homes of relatives by 
enabling each State to furnish financial assistance and other services, 
as far as practicable under the conditions in such State, to needy de-
pendent children and the parents or relatives with whom they are liv-
ing to help maintain and strengthen family life and to help such par-
ents or relatives to attain the maximum self-support and personal 
independence consistent with the maintenance of continuing parental 
70 STAT.] 
PUBLIC LAW 880-AUG. 1, 1956 
849 
42 use 602. 
care and protection, there is hereby authorized to be appropriated for 
each fiscal year a sum sufficient to carry out the purposes of this title." 
(b) Subsection (a) of section 402 of such Act is amended by striking 
out "and" before clause (11) thereof, and by striking out the period at 
the end of such subsection and inserting in lieu thereof a semicolon 
and the following new clause: "and (12) provide a description of the 
services (if any) which the State agency makes available to maintain 
and strengthen family life for children, including a description of 
the steps taken to assure, in the provision of such services, maximum 
utilization of other agencies providing similar or related services." 
(c) (1) Clauses (1) and (2) of section 403 (a) of such Act are 
r?oTt?pif'&S2, 
each amended b j striking out ", which shall be used exclusively as aid 8S4. 
to dependent children,". 
(2) Clause (3) of such section 403 (a) is amended bjr striking out 
"which amount shall be used for paying the costs of administering the 
State plan or for aid to dependent children, or both, and for no other 
purpose" and inserting in lieu thereof "including services which are 
provided by the staff of the State agency (or of the local agency ad-
ministering the State plan in the political subdivision), to relatives 
with whom such children (applying for or receiving such aid) are 
living, in order to help such relatives attain self-support or self-care, 
or which are provided to maintain and strengthen family life for 
such children". 
AID TO THE BUND 
SEC. 313. (a) The first sentence of section 1001 of the Social Security 
^2 use 1201. 
Act is amended to read: "For the purpose of enabling each State to 
furnish financial assistance, as far as practicable under the conditions 
in such State, to needy individuals who are blind and of encouraging 
each State, as far as practicable under such conditions, to help such 
individuals attain self-support or self-care, there is hereby authorized 
to be appropriated for each fiscal year a sum sufficient to carry out 
the purposes of this title." 
(b) Subsection (a) of section 1002 of such Act is amended by 
^2 use 1202. 
striking out "and" before clause (12) thereof, and by striking out 
the period at the end of such subsection and inserting in lieu thereof 
a semicolon and the following new clause: "and (13) provide a de-
scription of the services (if any) which the State agency makes avail-
able to applicants for and recipients of aid to the blind to help them 
attain self-support or self-care, including a description of the steps 
taken to assure, in the provision of such services, maximum utilization 
of other agencies providing similar or related services." 
(c) (1) Clauses (1) and (2) of section 1003 (a) of such Act are 
^"'•'gf^ *'''' 
each amended by striking out", which shall be used exclusively as aid ^ 
^' 
to the blind,". 
(2) Clause (3) of such section 1003 (a) is amended by striking out 
"which amount shall be used for paying the costs of administering the 
State plan or for aid to the blind, or both, and for no other purpose" 
and inserting in lieu thereof "including services which are provided by 
the staff of the State agency (or of the local agency administering the 
State plan in the political subdivision) to applicants for and recipients 
of aid to the blind to help them attain self-support or self-care". 
AID TO THE PERMANENTI^Y AND TOTxVLLY DISABLED 
SEC. 314. (a) The first sentence of section 1401 of the Social Security 
42 use 1351. 
Act is amended to read: "For the purpose of enabling each State to 
furnish financial assistance, as far as practicable under the conditions 
in such State, to needy individuals eighteen years of age and older 
M225 O -57 - M (Vol. 70) 
880 
PUBLIC LAW SSO-AUG. 1, 1956 
[70 STAT* 
who are permanently and totally disabled and of encouraging each 
State, as far as practicable under such conditions, to help such in-
dividuals attain self-support or self-care, there is hereby authorized 
to be appropriated for each fiscal year a sum sufficient to carry out 
the purposes of this title." 
42 use 1352. 
^^^ Subsection (a) of section 1402 of such Act is amended by strik-
ing out "and" before clause (11) thereof, and by striking out the 
period at the end of such subsection and inserting in lieu thereof a 
semicolon and the following new clause: "and (12) provide a descrip-
tion of the services (if any) which the State agency makes available 
to applicants for and recipients of aid to the permanently and totally 
disabled to help them attain self-support or self-care, including a 
description of the steps taken to assure, in the provision of such serv-
ices, maximum utilization of other agencies providing similar or re-
lated services." 
po1"p!'854. ^'^^^ 
(c) (1) Clauses (1) and (2) of section 1403 (a) of such Act are 
each amended by striking out", which shall be used exclusively as aid 
to the permanently and totally disabled,". 
(2) Clause (3) of such section 1403 (a) is amended by striking 
out "which amount shall be used for paying the costs of administering 
the State plan or for aid to the permanently and totally disabled, or 
both, and for no other purpose" and inserting in lieu thereof "includ-
ing services which are provided by the staff of the State agency (or of 
the local agency administering the State plan in the political sub-
division) to applicants for and recipients of such aid to help them 
attain self-support or self-care". 
EFFECTIVE DATE 
SEC. 314. The amendments made by sections 311 (b), 312 (b), 313 
(b), and 314 (b) shall become effective July 1,1957. 
PART III—EXTENSION OF AID TO DEPENDENT CHILDREN 
ADDITIONAL RELATIVES 
42 use 606. 
gEc. 321. Sectiou 406 (a) of the Social Security Act is amended by 
striking out "or aunt" and inserting in lieu thereof "aunt, first cousin, 
nephew, or niece". 
REQUIREMENT OF SCHOOL ATTENDANCE ELIMINATED 
42 use 606. 
SEC. 322. Such section 406 (a) is further amended by striking out 
"child under the age of sixteen, or under the age of eighteen if found 
by the State agency to be regularly attending school," and inserting 
in lieu thereof "child under the age of eighteen". 
EFFECTIVE DATt 
SEC. 323. The amendments made by this part shall become effective 
^ July 1,1957. 
PART IV—RESEARCH AND TRAINING 
42 u s e 130 1-
1307, 1309. 
COOPERATIVE RESEARCH OR DEMONSTRATION PROJECTS 
SEC. 331. Title X I of the Social Security Act is amended by adding 
at the end thereof the following new section: 
70 S T A T . ] 
PUBLIC LAW 880-AUG. 1, 1956 
8S1 
"COOPERATIVE RESEARCH OR DEMONSTRATION PROJECTS 
"SEC. 1110. (a) There are hereby authorized to be appropriated for 
Appropriation, 
the fiscal year ending June 30,1957, $5,000,000 and for each fiscal year 
thereafter such sums as the Congress may determine for (1) making 
grants to States and public and other nonprofit organizations and 
agencies for paying part of the cost of research or demonstration 
projects such as those relating to the prevention and reduction of de-
pendency, or which will aid in effecting coordination of planning 
Detween private and public welfare agencies or which will help 
improve the administration and effectiveness of programs carried on 
or assisted under the Social Security Act and programs related thereto, 
and (2) making contracts or jointly financed cooperative arrange-
ments with States and public and other nonprofit organizations and 
agencies for the conduct of research or demonstration projects relat-
ing to such matters. 
(b) No contract or jointly financed cooperative arrangement shall 
be entered into, and no grant shall be made, under subsection (a), 
until the Secretary obtains the advice and recommendations of spe-
cialists who are competent to evaluate the proposed projects as to 
soundness of their design, the possibilities of securing productive 
results, the adequacy of resources to conduct the proposed research or 
demonstrations, and their relationship to other similar research or 
demonstrations already completed or in process. 
"(c) Grants and payments under contracts or cooperative arrange-
ments under subsection (a) may be made either in advance or by way 
of reimbursement, as may be determined by the Secretary; and shall 
be made in such installments and on such conditions as the Secretary 
finds necessary to carry out the purposes of this section." 
TRAINING GRANTS 
SEC. 332. Title VII of the Social Security Act is amended by add-
ing after section 704 the following new section: 
'(. 
TRAINING GRANTS FOR PUBLIC WELFARE PERSONNEL 
"SEC. 705. (a) In order to assist in increasing the effectiveness and 
efficiency of administration of public assistance programs by increas-
ing the number of adequately trained public welfare personnel avail-
able for work in public assistance programs, there are hereby author-
ized to be appropriated for the fiscal year ending June 30, 1958, the 
sum of $5,000,000, and for each of the four succeeding fiscal years such 
sums as the Congress may determine. 
"(b) From the sums appropriated pursuant to subsection (a), the 
Secretary shall make allotments to the States on the basis of (1) popu-
lation, (2) relative need for trained public welfare personnel, particu-
larly for personnel to provide self-support and self-care services, and 
(3) financial need. 
"(c) From each State's allotment under subsection (b), the Secre-
tary shall from time to time pay to such State 80 per centum of the total 
of its expenditures in carrying out the purposes of this section through 
(1) grants to public or other nonprofit institutions of higher learning 
for training personnel employed or preparing for employment in pub-
lic assistance programs, (2) special courses of study or seminars of 
short duration conducted for such personnel by experts hired on a tem-
porary basis for the purpose, and (3) establishing and maintaining, 
directly or through grants to such institutions, fellowships or trainee-
ships for such personnel at such institutions, with such stipends and 
allowances as may be permitted under regulations of the Secretary. 
42 u s e 902-904. 
852 
PUBLIC LAW 880-,AUG. 1, 1956 
[70 8TAT, 
"(d) Payments pursuant to subsection (c) shall be made in advance 
on the basis of estimates by the Secretary and adjustments may be 
made in future payments under this section to take account of over-
payments or underpayments in amounts previously paid. 
"(e) The amount of any allotment to a State under subsection (b) 
for any fiscal year which the State certifies to the Secretary will not be 
required for carrying out the purposes of this section in such State 
shall be available for reallotment from time to time, on such dates as 
the Secretary may fix, to other States which the Secretary determines 
have need in carrying out such purposes for sums in excess of those 
previously allotted to them under this section and will be able to use 
such excess amounts during such fiscal year; such reallotments to be 
made on the basis provided in subsection (b) for the initial allotments 
to the States. Any amount so reallotted to a State shall be deemed 
part of its allotment under such subsection." 
42 use 1301. 
g^^ 333 Section 1101 (a) (1) of the Social Security Act is amended 
by striking out "titles I, IV, V, X, and XIV" and inserting in lieu 
thereof "titles I, IV, V, VII, X, and XIV". 
PART V—^AMENDMENTS TO MATCHING FORMULAS 
AMENDMENT TO MATCHING FORMULA FOR OLD-AGE ASSISTANCE 
Ante, p. 848. 
gj;c. 341. Section 3 (a) of the Social Security Act is amended to 
read as follows: 
"(a) From the sums appropriated therefor, the Secretary of the 
Treasury shall pay to each State which has an approved plan for old-
age assistance, for each quarter, beginning with the quarter com-
mencing October 1, 1956, (1) in the case of any State other than 
Puerto Kico and the Virgin Islands, an amount equal to the sum of 
the following proportions of the total amounts expended during such 
quarter as old-age assistance under the State plan, not counting so 
much of such expenditure with respect to any individual for any 
month as exceeds $60— 
"(A) four-fifths of such expenditures, not counting so much of 
any expenditure with respect to any month as exceeds the product 
of $30 multiplied by the total number of such individuals who 
received old-age assistance for such month; plus 
"(B) one-half of the amount by which such expenditures ex-
ceed the maximum which may be counted under clause (A); 
and (2) in the case of Puerto Eico and the Virgin Islands, an amount, 
which shall be used exclusively as old-age assistance, equal to one-half 
of the total of the sums expended during such quarter as old-age 
assistance under the State plan, not counting so much of such expendi-
ture with respect to any individual for any month as exceeds $30, and 
(3) in the case of any State, an amount equal to one-half of the total 
of the sums expended during such quarter as found necessary by the 
Secretary of Health, Education, and Welfare for the proper and 
efficient administation of the State plan, including services which are 
provided by the staff of the State agency (or of the local agency ad-
ministering the State plan in the political subdivision) to applicants 
for and recipients of old-age assistance to help them attain self-care." 
AMENDMENT TO MATCHING FORMULA FOR AID TO DEPENDENT CHILDREN 
^n **'„P; *^'' 
SEC. 342. Section 403 (a) of the Social Security Act is amended to 
po»t, p. 854. 
J 
j; n 
read as follows: 
"(a) From the sums appropriated therefor, the Secretary of the 
Treasury shall pay to each State which has an approved plan for aid 
to dependent children, for each quarter, beginning with the quarter 
ro S T A T . ] 
PUBLIC LIAW SSO-AUG. 1, 1956 
853 
commencing October 1, 1956, (1) in the case of any State other than 
Puerto Kico and the Virgin Islands, an amount equal to the sum of 
the following proportions of the total amounts expended during such 
quarter as aid to dependent children under the State plan, not count-
ing so much of such expenditure with respect to any dependent child 
for any month as exceeds $32, or if there is more than one dependent 
child in the same home, as exceeds $32 with respect to one such de-
pendent child and $23 with respect to each of the other dependent chil-
dren, and not counting so much of such expenditure for any month 
with respect to a relative with whom any dependent child is living as 
exceeds $32— 
"(A) fourteen-seventeenths of such expenditures, not count-
ing so much of the expenditures with respect to any month as 
exceeds the product of $17 multiplied by the total number of 
dependent children and other individuals with respect to whom 
aid to dependent children is paid for such month; plus 
"(B) one-half of the amount by which such expenditures ex-
ceed the maximum which may be counted under clause ( A ) ; 
and (2) in the case of Puerto Rico and the Virgin Islands, an amount 
equal to one-half of the total of the sums expended during such 
quarter as aid to dependent children under the State plan, not count-
ing so much of such expenditure with respect to any dependent child 
for any month as exceeds $18, or if there is more than one dependent 
child in the same home, as exceeds $18 with respect to one such 
dependent child and $12 with respect to each of the other dependent 
children, and not counting so much of such expenditure for any 
month with respect to a relative with whom any dependent child is 
living as exceeds $18; and (3) in the case of any State, an amount 
equal to one-half of- the total of the sums expended during such 
quarter as found necessary by the Secretary of Health, Education, 
and Welfare for the proper and efficient administration of the State 
plan, including services which are provided by the staff of the State 
agency (or of the local agency administering the State plan in the 
political subdivision) to relatives with whom such children (applying 
for or receiving such aid) are living, in order to help such relatives 
attain self-support or self-care, or which are provided to maintain 
and strengthen family life for such children." 
AMENDMENT TO MATCHING FORMULA FOR All) TO THE BLIND 
SEC. 343. Section 1003 (a) of the Social Security Act is amended 84."*"' ^^' *'*^' 
to read as foUov/s: 
"(a) From the sums appropriated therefor, the Secretary of the 
Treasury shall pay to each State which has an approved plan for aid 
to the blind for each quarter, beginning with the quarter commencing 
October 1, 1956, (1) in the ease of any State other than Puerto Rico 
and the Virgin Islands, an amount equal to the sum of the following 
proportions of the total amounts expended during such quarter as 
aid to the blind under the State plan, not counting so much of 
such expenditure with respect to any individual for any month as 
exceeds $60— 
"(A) four-fifths of such expenditures, not counting so much 
of any expenditure with respect to any month as exceeds the 
product of $30 multiplied by the total number of such individuals 
who received aid to the blind for such month; plus 
"(B) one-half of the amount by which such expenditures exceed 
the maximum which may be counted under clause (A) ; 
and (2) in the case of Puerto Rico and the Virgin Islands, an amount 
equal to one-half of the total of the sums expended during such quar-
854 
PUBLIC LAW 880-AUG. 1, 1956 
[70 STAT, 
ter as aid to the blind under the State ph\n, not counting so much of 
such expenditure with respect to any individual for any month as 
exceeds $30; and (3) in the case of any State, an amount equal to 
one-half of the total of the sums expended during such quarter as 
found necessary by the Secretary of Health, Education, and Welfare 
for the proper and efficient administration of the State plan, including 
services which are provided by the staff of the State agency (or of the 
local agency administering the State plan in the political subdivision) 
to applicants for and recipients of aid to the blind to help them attain 
self-support or self-care," 
AMENDMENT TO MATCHING FORMULA FOR AID TO THE PERMANENTLY AND 
TOTALLY DISABLED 
Ante, 
p p . 847, 
850. 
SEC. 344. Section 1403 (a) of the Social Security Act is amended 
to read as follows: 
"(a) From the sums appropriated therefor, the Secretary of the 
Treasury shall pay to each State which has an approved plan for aid 
to the permanently and totally disabled, for each quarter, beginning 
with the quarter commencing October 1, 1956, (1) in the case of any 
State other than Puerto Rico and the Virgin Islands, an amount equal 
to the sum of the following proportions of the total amounts expended 
during such quarter as aid to the permanently and totally disabled 
under the State plan, not counting so much of such expenditure with 
respect to any individual for any month as exceeds $60— 
"(A) four-fifths of such expenditures, not counting so much of 
any expenditure with respect to any month as exceeds the product 
of $30 multiplied by the total number of such individuals who 
received aid to the permanently and totally disabled for such 
month; plus 
"(B) one-half of the amount by which such expenditures 
exceed the maximum which may be counted under clause (A) ; 
and (2) in the case of Puerto Rico and the Virgin Islands, an amount 
equal to one-half of the total of the sums expended during such quarter 
as aid to the permanently and totally disabled under the State plan, 
not counting so much of such expenditure with respect to any indi-
vidual for any month as exceeds $30; and (3) in the case of any State, 
an amount equal to one-half of the total of the sums expended during 
such quarter as foimd necessary by the Secretary of Health, Educa-
tion, and Welfare for the proper and efficient administration of the 
State plan, including services which are provided by the staff of the 
State agency (or of the local agency administering the State plan in 
the political subdivision) to applicants for and recipients of such aid 
to help them attain self-support or self-care." 
EFFECTIVE DATE 
SEC. 345. The amendments made by this part shall be effective for 
the period beginning October 1, 1956, and ending with the close of 
June 30, 1959, and after such amendments cease to be in effect any 
provision of law amended thereby shall be in full force and effect as 
though this part had not been enacted. 
PART VI—MISCELLANEOUS ASSISTANCE AMENDMENTS 
AID TO D E P E N D E N T CHILDREN I N PUERTO RICO AND T H E VIRGIN ISLANDS 
852."'"' ^^' ^^^' 
SEC. 351. (a) Clause (2) of subsection (a) of section 403 of the 
Social Security Act is amended by inserting immediately before the 
70 S T A T . ] 
PUBLIC LAW 880-AUG. 1, 1956 
865 
semicolon the following: ", and not counting so much of such expendi-
ture for any month with respect to a relative with whom any depend-
ent child is living as exceeds $18". 
(b) Subsection (b) of section 406 of such Act is amended by strik-
ing out "(except when used in clause (2) of section 403 (a))". 
(c) Section 1108 of such Act is amended by striking out "$4,250,000" 
and inserting in lieu thereof "$5,312,500", and by striking out 
"$160,000" and inserting in lieu thereof "$200,000". 
(d) The amendments made by this section shall be effective with 
respect to the fiscal year ending June 30,1957, and all succeeding fiscal 
years. 
42 u s e 606. 
42 u s e 1308. 
Effective years. 
TITLE IV—MISCELLANEOUS PROVISIONS 
SERVICE FOR CERTAIN TAX-EXEMPT ORGANIZATIONS PRIOR TO ENACTMENT 
OF THIS ACT 
SEC 401. Section 403 of the Social Security Amendments of 1954 l%^\f% h°^!pp. 
is amended to read as follows: 
i426 note. 
'SERVICE FOR CERTAIN TAX-EXEMPT ORGANIZATIONS PRIOR TO ENACTMENT 
OF THE SOCIAL SECURITY AMENDMENTS OF 1 9 5 6 
"SEC. 403. (a) In any case in which— 
" (1) an individual has been employed, at any time subsequent 
to 1950 and prior to the enactment of the Social Security Amend-
ments of 1956, by an organization which is described in section 501 
(c) (3) of the Internal Revenue Code of 1954 and which is exempt 
from income tax under section 501 (a) of such Code but which has 
failed to file prior to the enactment of the Social Security Amend-
ments of 1956 a valid waiver certificate under section 1426 (1) 
(1) of the Internal Revenue Code of 1939 or section 3121 (k) (1) 
of the Internal Revenue Code of 1954; 
"(2) the service performed by such individual as an employee 
of such organization during the period subsequent to 1950 and 
prior to 1957 would have constituted employment (as defined in 
section 210 of the Social Security Act and section 1426 (b) of the 
Internal Revenue Code of 1939 or section 3121 (b) of the Internal 
Revenue Code of 1954, as the case may be, at the time such service 
was performed) if such organization had filed prior to the per-
formance of such service such a certificate accompanied by a list 
of the signatures of employees who concurred in the filing of such 
certificate and such individual's signature had appeared on such 
list; 
"(3) the taxes imposed by sections 1400 and 1410 of the 
Internal Revenue Code of 1939 or sections 3101 and 3111 of the 
Internal Revenue Code of 1954, as the case may be, have been 
paid with respect to any part of the remuneration paid to such 
individual by such organization for such service; 
" (4) part of such taxes have been paid prior to the enactment 
of the Social Security Amendments of 1956; 
" (5) so much of such taxes as have been paid prior to the enact-
ment of the Social Security Amendments of 1956 have been paid 
by such organization in good faith and upon the assumption that 
a valid waiver certificate had been filed by it under section 1426 
(l) (1) of the Internal Revenue Code of 1939 or section 3121 (k) 
(1) of the Internal Revenue Code of 1954, as the case may be; and 
26 u s e SOI. 
Ante, p. 843. 
Ante, p. 824, 
Ante, 
840. 
pp. 839, 
Ante, p. 845. 
Ante, p. 843. 
856 
PUBLIC DAW 880-AUG. 1, 1956 
[70 STAT. 
"(6) no refund of such taxes lias been obtained, 
the amount of such remuneration with respect to which such taxes 
have been paid shall, upon the request of such individual (filed in such 
31^."^^ 3 10 1- form and manner, and with such official, as may be prescribed by 
Ante, pp. 824, regulations under chapter 21 of the Internal Revenue Code of 1954), 
^^Anli' ^p.' I24) be deemed to constitute remuneration for employment as defined in 
^^i'nle/pp. 839, sectiou 210 of the Social Security Act and section 1426 (b) of the 
840. 
' 
' 
' Internal Revenue Code of 1939 or section 3121 (b) of the Internal 
Revenue Code of 1954, as the case may be. 
"(b) In any case in which— 
"(1) an individual has been employed, at any time subsequent 
to 1950 and prior to the enactment of the Social Security Amend-
ments of 1956, by an organization which has filed a valid waiver 
certificate under section 1426 (1) (1) of the Internal Revenue 
Code of 1939 or section 3121 (k) (1) of the Internal Revenue 
Ante. p. 843. 
Code of 1954; 
"(2) the service performed by such individual during the time 
he was so employed would have constituted employment (as 
defined in section 210 of the Social Security Act and section 1426 
(b) of the Internal Revenue Code of 1939 or section 3121 (b) 
of the Internal Revenue Code of 1954, as the case may be, at the 
time such service was performed) if such individual's signature 
had appeared on the list of signatures of employees who con-
curred m the filing of such certificate; 
" (3) the taxes imposed by sections 1400 and 1410 of the Internal 
Revenue Code of 1939 or sections 3101 and 3111 of the Internal 
Ante, p. 84S. 
Reveuue Code of 1954, as the case may be, have been paid prior 
to the enactment of the Social Security Amendments of 1956 
with respect to any part of the remuneration paid to such indi-
vidual by such organization for such service; and 
" (4) no refund of such taxes has been obtained, 
the amount of such remuneration with respect to which such taxes 
have been paid shall, upon the request of such individual (filed on 
or before January 1, 1959, and in such form and manner, and with 
such official, as may be prescribed by regulations made under chapter 
21 of the Internal Revenue Code of 1954), be deemed to constitute 
remuneration for employment as defined in section 210 of the Social 
Security Act and section 1426 (b) of the Internal Revenue Code of 
1939 or section 3121 (b) of the Internal Revenue Code of 1954, as 
the case may be, and such individual shall be deemed to have concurred 
in the filing of the waiver certificate filed by such organization under 
section 1426 (1) (1) of the Internal Revenue Code of 1939 or section 
3121 (k) (1) of the Internal Revenue Code of 1954." 
AMENDMENT RELATING TO MATERNAL AND CHILD WELFARE SERVICES 
SEC. 402. The first sentence of subsection (a) of section 521 of the 
42 use 721. 
Social Security Act is amended by striking out "for each fiscal year, 
beginning with the fiscal year ending June 30, 1936, the sum of $10,-
000,000" and inserting in lieu thereof "for each fiscal year, beginning 
with the fiscal year ending June 30, 1958, the sum of $12,000,000". 
EFFECTIVE DATE 
SEC. 403. The amendment made by section 402 shall be effective with 
respect to fiscal years beginning after June 30, 1957. 
Approved August 1, 1956.