Title 42 — The Public Health and Welfare
Chapter 7 — Social Security
§ 413. Quarter and quarter of coverage
Statutory text
Definitions
For the purposes of this subchapter—
The term “quarter”, and the term “calendar quarter”, mean a period of three calendar months ending on March 31, June 30, September 30, or December 31.
The term “quarter of coverage” means—
for calendar years before 1978, and subject to the provisions of subparagraph (B), a quarter in which an individual has been paid $50 or more in wages (except wages for agricultural labor paid after 1954) or for which he has been credited (as determined under section 412 of this title) with $100 or more of self-employment income; and
for calendar years after 1977, and subject to the provisions of subparagraph (B), each portion of the total of the wages paid and the self-employment income credited (pursuant to section 412 of this title) to an individual in a calendar year which equals the amount required for a quarter of coverage in that calendar year (as determined under subsection (d)), with such quarter of coverage being assigned to a specific calendar quarter in such calendar year only if necessary in the case of any individual who has attained age 62 or died or is under a disability and the requirements for insured status in subsection (a) or (b) of section 414 of this title, the requirements for entitlement to a computation or recomputation of his primary insurance amount, or the requirements of paragraph (3) of section 416(i) of this title would not otherwise be met.
Notwithstanding the provisions of subparagraph (A)—
no quarter after the quarter in which an individual dies shall be a quarter of coverage, and no quarter any part of which is included in a period of disability (other than the initial quarter and the last quarter of such period) shall be a quarter of coverage;
if the wages paid to an individual in any calendar year equal $3,000 in the case of a calendar year before 1951, or $3,600 in the case of a calendar year after 1950 and before 1955, or $4,200 in the case of a calendar year after 1954 and before 1959, or $4,800 in the case of a calendar year after 1958 and before 1966, or $6,600 in the case of a calendar year after 1965 and before 1968, or $7,800 in the case of a calendar year after 1967 and before 1972, or $9,000 in the case of the calendar year 1972, or $10,800 in the case of the calendar year 1973, or $13,200 in the case of the calendar year 1974, or an amount equal to the contribution and benefit base (as determined under section 430 of this title) in the case of any calendar year after 1974 and before 1978 with respect to which such contribution and benefit base is effective, each quarter of such year shall (subject to clauses (i) and (v)) be a quarter of coverage;
if an individual has self-employment income for a taxable year, and if the sum of such income and the wages paid to him during such year equals $3,600 in the case of a taxable year beginning after 1950 and ending before 1955, or $4,200 in the case of a taxable year ending after 1954 and before 1959, or $4,800 in the case of a taxable year ending after 1958 and before 1966, or $6,600 in the case of a taxable year ending after 1965 and before 1968, or $7,800 in the case of a taxable year ending after 1967 and before 1972, or $9,000 in the case of a taxable year beginning after 1971 and before 1973, or $10,800 in the case of a taxable year beginning after 1972 and before 1974, or $13,200 in the case of a taxable year beginning after 1973 and before 1975, or an amount equal to the contribution and benefit base (as determined under section 430 of this title) which is effective for the calendar year in the case of any taxable year beginning in any calendar year after 1974 and before 1978, each quarter any part of which falls in such year shall (subject to clauses (i) and (v)) be a quarter of coverage;
if an individual is paid wages for agricultural labor in a calendar year after 1954 and before 1978, then, subject to clauses (i) and (v), (I) the last quarter of such year which can be but is not otherwise a quarter of coverage shall be a quarter of coverage if such wages equal or exceed $100 but are less than $200; (II) the last two quarters of such year which can be but are not otherwise quarters of coverage shall be quarters of coverage if such wages equal or exceed $200 but are less than $300; (III) the last three quarters of such year which can be but are not otherwise quarters of coverage shall be quarters of coverage if such wages equal or exceed $300 but are less than $400; and (IV) each quarter of such year which is not otherwise a quarter of coverage shall be a quarter of coverage if such wages are $400 or more;
no quarter shall be counted as a quarter of coverage prior to the beginning of such quarter;
not more than one quarter of coverage may be credited to a calendar quarter; and
no more than four quarters of coverage may be credited to any calendar year after 1977.
If in the case of an individual who has attained age 62 or died or is under a disability and who has been paid wages for agricultural labor in a calendar year after 1954 and before 1978, the requirements for insured status in subsection (a) or (b) of section 414 of this title, the requirements for entitlement to a computation or recomputation of his primary insurance amount, or the requirements of paragraph (3) of section 416(i) of this title are not met after assignment of quarters of coverage to quarters in such year as provided in clause (iv) of the preceding sentence, but would be met if such quarters of coverage were assigned to different quarters in such year, then such quarters of coverage shall instead be assigned, for purposes only of determining compliance with such requirements, to such different quarters. If, in the case of an individual who did not die prior to , and who attained age 62 (if a woman) or age 65 (if a man) or died before , the requirements for insured status in section 414(a)(3) of this title are not met because of his having too few quarters of coverage but would be met if his quarters of coverage in the first calendar year in which he had any covered employment had been determined on the basis of the period during which wages were earned rather than on the basis of the period during which wages were paid (any such wages paid that are reallocated on an earned basis shall not be used in determining quarters of coverage for subsequent calendar years), then upon application filed by the individual or his survivors and satisfactory proof of his record of wages earned being furnished by such individual or his survivors, the quarters of coverage in such calendar year may be determined on the basis of the periods during which wages were earned.
Crediting of wages paid in 1937
With respect to wages paid to an individual in the six-month periods commencing either , or ; (A) if wages of not less than $100 were paid in any such period, one-half of the total amount thereof shall be deemed to have been paid in each of the calendar quarters in such period; and (B) if wages of less than $100 were paid in any such period, the total amount thereof shall be deemed to have been paid in the latter quarter of such period, except that if in any such period, the individual attained age sixty-five, all of the wages paid in such period shall be deemed to have been paid before such age was attained.
Alternative method for determining quarters of coverage with respect to wages in period from 1937 to 1950
For purposes of sections 414(a) and 415(d) of this title, an individual shall be deemed to have one quarter of coverage for each $400 of his total wages prior to 1951 (as defined in section 415(d)(1)(C) of this title), except where such individual is not a fully insured individual on the basis of the number of quarters of coverage so derived plus the number of quarters of coverage derived from the wages and self-employment income credited to such individual for periods after 1950.
Amount required for a quarter of coverage
The amount of wages and self-employment income which an individual must have in order to be credited with a quarter of coverage in any year under subsection (a)(2)(A)(ii) shall be $250 in the calendar year 1978 and the amount determined under paragraph (2) of this subsection for years after 1978.
The Commissioner of Social Security shall, on or before November 1 of 1978 and of every year thereafter, determine and publish in the Federal Register the amount of wages and self-employment income which an individual must have in order to be credited with a quarter of coverage in the succeeding calendar year. The amount required for a quarter of coverage shall be the larger of—
the amount in effect in the calendar year in which the determination under this subsection is made, or
the product of the amount prescribed in paragraph (1) which is required for a quarter of coverage in 1978 and the ratio of the national average wage index (as defined in section 409(k)(1) of this title) for the calendar year before the year in which the determination under this paragraph is made to the national average wage index (as so defined) for 1976,
with such product, if not a multiple of $10, being rounded to the next higher multiple of $10 where such amount is a multiple of $5 but not of $10 and to the nearest multiple of $10 in any other case.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 81–531 · 64 Stat. 404
Enacted · 42 U.S.C. § 413
Aug. 14, 1935, ch. 531, title II, § 213, as added Aug. 28, 1950, ch. 809, title I, § 104(a), 64 Stat. 492, 504
Source evidence
Code source credit
Aug. 14, 1935, ch. 531, title II, § 213, as added Aug. 28, 1950, ch. 809, title I, § 104(a), 64 Stat. 492, 504Public Law not identified
Changed · 42 U.S.C. § 413(a)(2)(A)
Subsec. (a)(2)(A). Act July 18, 1952, § 3(a)(1), redefined “quarter of coverage”
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Subsec. (a)(2)(A). Act July 18, 1952, § 3(a)(1), redefined “quarter of coverage”.Public Law not identified
Inserted · 42 U.S.C. § 413(a)(2)(B)(i)
Subsec. (a)(2)(B)(i). Act July 18, 1952, § 3(a)(2), inserted “and no quarter any part of which was included in a period of disability (other than the initial quarter and the last quarter of such period) shall be a quarter of coverage”
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Subsec. (a)(2)(B)(i). Act July 18, 1952, § 3(a)(2), inserted “and no quarter any part of which was included in a period of disability (other than the initial quarter and the last quarter of such period) shall be a quarter of coverage”.Public Law not identified
Substituted · 42 U.S.C. § 413(a)(2)(B)(iii)
Subsec. (a)(2)(B)(iii). Act July 18, 1952, § 3(a)(3), substituted “shall (subject to clause (i) of this subparagraph) be a quarter of coverage” for “shall be a quarter of coverage”
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Subsec. (a)(2)(B)(iii). Act July 18, 1952, § 3(a)(3), substituted “shall (subject to clause (i) of this subparagraph) be a quarter of coverage” for “shall be a quarter of coverage”.Public Law not identified
Changed · 42 U.S.C. § 413(a)(2)(A)
Subsec. (a)(2)(A). Act Sept. 1, 1954, § 106(a)(1), redefined “quarter of coverage,” in the case of quarters occurring before 1951, to exclude any quarter any part of which was included in a period of disability, other than the initial quarter of such period, and which provided that any quarter any part of which was included in a period of disability, other than the first quarter of such period, could not be counted as a quarter of coverage in a calendar year in which wages of $3,000 or more were paid
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Subsec. (a)(2)(A). Act Sept. 1, 1954, § 106(a)(1), redefined “quarter of coverage,” in the case of quarters occurring before 1951, to exclude any quarter any part of which was included in a period of disability, other than the initial quarter of such period, and which provided that any quarter any part of which was included in a period of disability, other than the first quarter of such period, could not be counted as a quarter of coverage in a calendar year in which wages of $3,000 or more were paid.Public Law not identified
Changed · 42 U.S.C. § 413(a)(2)(B)
Subsec. (a)(2)(B). Act Sept. 1, 1954, § 104(c), provided that for calendar years after 1954 an individual shall be credited with a quarter of coverage for each quarter of the year if his wages for the year equal $4,200 and he shall be credited with a quarter of coverage for each quarter of a taxable year ending after 1954 in which the sum of his wages and self-employment income equal $4,200
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Subsec. (a)(2)(B). Act Sept. 1, 1954, § 104(c), provided that for calendar years after 1954 an individual shall be credited with a quarter of coverage for each quarter of the year if his wages for the year equal $4,200 and he shall be credited with a quarter of coverage for each quarter of a taxable year ending after 1954 in which the sum of his wages and self-employment income equal $4,200.Act Sept. 1, 1954, § 108(b), provided for crediting quarters of coverage on basis of annual amounts of wages received for agricultural labor.
Public Law not identified
Changed · 42 U.S.C. § 413(a)(2)(B)(i)
Subsec. (a)(2)(B)(i). Act Sept. 1, 1954, § 106(a)(2), redefined “quarter of coverage”, for quarters occurring after 1950, to exclude any quarter any part of which was included in a period of disability, other than the first and last quarters of such period
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Subsec. (a)(2)(B)(i). Act Sept. 1, 1954, § 106(a)(2), redefined “quarter of coverage”, for quarters occurring after 1950, to exclude any quarter any part of which was included in a period of disability, other than the first and last quarters of such period.Public Law not identified
Substituted · 42 U.S.C. § 413(a)(2)(B)(iv)
Subsec. (a)(2)(B)(iv). Act Aug. 1, 1956, substituted “if such wages equal or exceed $100 but are less than $200” for “if such wages are less than $200”
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Subsec. (a)(2)(B)(iv). Act Aug. 1, 1956, substituted “if such wages equal or exceed $100 but are less than $200” for “if such wages are less than $200”.Social Security Amendments of 1958
Pub. L. 85–840 title I § 102(c) · 72 Stat. 1013
Inserted · 42 U.S.C. § 413(a)(2)(B)
Pub. L. 85–840 inserted “and before 1959, or $4,800 in the case of a calendar year after 1958” after “after 1954” in cl. (ii), and “and before 1959, or $4,800 in the case of a taxable year ending after 1958” after “after 1954” in cl. (iii)
Source evidence
Code amendment note
Subsec. (a)(2)(B). Pub. L. 85–840 inserted “and before 1959, or $4,800 in the case of a calendar year after 1958” after “after 1954” in cl. (ii), and “and before 1959, or $4,800 in the case of a taxable year ending after 1958” after “after 1954” in cl. (iii).Enacted provision · exact public law section
(c) Definitions of Quarter and Quarter of Coverage Clauses (ii) and (iii) of section 213 (a) (2) (B) of the Social 42 USC 413. Security Act are amended to read as follows: “(ii) if the wages paid to any individual in any calendar year equal $3,600 in the case of a calendar year after 1950 and before 1955, or $4,200 in the case of a calendar year after 1954 and before 1959, or $4,800 in the case of a calendar year after 1958, each quarter of such year shall (subject to clause (i)) be a quarter of coverage; “(iii) if an individual has self-employment income for a taxable year, and if the sum of such income and the wages paid to him during such year equals $3,600 in the case of a taxable year beginning after 1950 and ending before 1955, or $4,200 in the case of a taxable year ending after 1954 and before 1959, or $4,800 in the case of a taxable year ending after 1958, each quarter any part of which falls in such year shall (subject to clause (i)) be a quarter of coverage;”.Pub. L. 86–442 § 3 · 74 Stat. 79
Inserted · 42 U.S.C. § 413(a)(2)
Pub. L. 86–442 inserted sentence in cl. (B) to permit the quarters of coverage in a calendar year to be determined on the basis of the periods during which wages were earned in the case of individuals who did not die prior to Jan. 1, 1955, and who attained retirement age or died before July 1, 1957, who did not meet the requirements for insured status because of having too few quarters of coverage but who would meet the requirements if the quarters of coverage in the first calendar year in which they had any covered employment had been determined on the basis of the period during which wages were earned rather than on the basis of the period during which wages were paid
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 86–442 inserted sentence in cl. (B) to permit the quarters of coverage in a calendar year to be determined on the basis of the periods during which wages were earned in the case of individuals who did not die prior to Jan. 1, 1955, and who attained retirement age or died before July 1, 1957, who did not meet the requirements for insured status because of having too few quarters of coverage but who would meet the requirements if the quarters of coverage in the first calendar year in which they had any covered employment had been determined on the basis of the period during which wages were earned rather than on the basis of the period during which wages were paid.Enacted provision · exact public law section
Sec. 3. Section 213(a)2(B) of the Social Security Act is amended by adding at the end thereof the following language: “If, in the case of an individual who did not die prior to January 1, 1955, and who attained retirement age or died before July 1, 1957, the requirements 42 USC 414. for insured status in section 214(a)(3) are not met because of his having too few quarters of coverage but would be met if his quarters of coverage in the first calendar year in which he had any covered employment had been determined on the basis of the period during which wages were earned rather than on the basis of the period during which wages were paid (any such wages paid that are reallocated on an earned basis shall not be used in determining quarters of coverage for subsequent calendar years), then upon application filed by the individual or his survivors and satisfactory proof of his record of wages earned being furnished by such individual or his survivors, the quarters of coverage in such calendar year may be determined on the basis of the periods during which wages were earned.” 42 USC 401–425. This amendment shall be applicable in the case of monthly benefits under title II of the Social Security Act for months after June 1957, and in the case of the lump-sum death payments under such title, with respect to deaths occurring after such month; the requirements for filing applications for such benefits and payments within certain time 42 USC 402. limits, as prescribed in sections 202(i) and 202(j) of such title, shall not apply if an application is filed within the one-year period beginning with the first day of the month after the month in which this Act is enacted.Social Security Amendments of 1960
Pub. L. 86–778 title II § 206(a) · 74 Stat. 924
Changed · 42 U.S.C. § 413(a)(2)
Pub. L. 86–778 required each quarter of a calendar year before 1951 to be counted as a quarter of coverage if the individual received wages equal to $3,000 in the calendar year
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 86–778 required each quarter of a calendar year before 1951 to be counted as a quarter of coverage if the individual received wages equal to $3,000 in the calendar year.Enacted provision · exact public law section
(a) Section 213(a)(2) of the Social Security Act is amended by striking out all that precedes “$3,600 in the case of a calendar year after 1950 and before 1955” in clause (ii) of subparagraph (B) and inserting in lieu thereof the following: “(2) The term ‘quarter of coverage’ means a quarter in which the individual has been paid $50 or more in wages (except wages for agricultural labor paid after 1954) or for which he has been credited (as determined under section 212) with $100 or more of self-employment 42 USC 412. income, except that— “(i) no quarter after the quarter in which such individual died shall be a quarter of coverage, and no quarter any part of which was included in a period of disability (other than the initial quarter and the last quarter of such period) shall lie a quarter of coverage; “(ii) if the wages paid to any individual in any calendar year equal $3,000 in the case of a calendar year before 1951, or”.Social Security Amendments of 1961
Pub. L. 87–64 title I § 102(c)(2)(A) · 75 Stat. 131
Substituted · 42 U.S.C. § 413(a)
Pub. L. 87–64 substituted “has attained age 62” for “has attained retirement age”
Substituted · 42 U.S.C. § 413(a)
Pub. L. 87–64 substituted “who attained age 62 (if a woman) or age 65 (if a man)” for “who attained retirement age”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 87–64 substituted “has attained age 62” for “has attained retirement age”, and “who attained age 62 (if a woman) or age 65 (if a man)” for “who attained retirement age”.Enacted provision · exact public law section
(A) the next to the last sentence of section 213(a),Social Security Amendments of 1965
Pub. L. 89–97 § 320(a)(3)(A) · 79 Stat. 288
Substituted · 42 U.S.C. § 413(a)(2)(ii)
Pub. L. 89–97, § 320(a)(3)(A), substituted “after 1958 and before 1966, or $6,600 in the case of a calendar year after 1965” for “after 1958”
Source evidence
Code amendment note
Subsec. (a)(2)(ii). Pub. L. 89–97, § 320(a)(3)(A), substituted “after 1958 and before 1966, or $6,600 in the case of a calendar year after 1965” for “after 1958”.Enacted provision · exact public law section
(A) Section 213(a)(2)(ii) of such Act is amended by striking 72 Stat. 1019; 74 Stat. 949. 42 USC 413. out “after 1958” and inserting in lieu thereof “after 1958 and before 1966, or $6,600 in the case of a calendar year after 1965”.Social Security Amendments of 1965
Pub. L. 89–97 § 320(a)(3)(B) · 79 Stat. 288
Substituted · 42 U.S.C. § 413(a)(2)(iii)
Pub. L. 89–97, § 320(a)(3)(B), substituted “after 1958 and before 1966, or $6,600 in the case of a taxable year ending after 1965” for “after 1958”
Source evidence
Code amendment note
Subsec. (a)(2)(iii). Pub. L. 89–97, § 320(a)(3)(B), substituted “after 1958 and before 1966, or $6,600 in the case of a taxable year ending after 1965” for “after 1958”.Enacted provision · exact public law section
(B) Section 213(a)(2)(iii) of such Act is amended by striking out “after 1958” and inserting in lieu thereof “after 1958 and before 1966, or $6,600 in the case of a taxable year ending after 1965”.Social Security Amendments of 1967
Pub. L. 90–248 § 108(a)(3)(A) · 81 Stat. 821
Inserted · 42 U.S.C. § 413(a)(2)(ii)
Pub. L. 90–248, § 108(a)(3)(A), inserted “and before 1968, or $7,800 in the case of a calendar year after 1967” after “1965”
Source evidence
Code amendment note
Subsec. (a)(2)(ii). Pub. L. 90–248, § 108(a)(3)(A), inserted “and before 1968, or $7,800 in the case of a calendar year after 1967” after “1965”.Enacted provision · exact public law section
(A) Section 213(a)(2)(ii) of such Act is amended by striking out “after 1965” and inserting in lieu thereof “after 1965 and before 1968, or $7,800 in the case of a calendar year after 1967”.Social Security Amendments of 1967
Pub. L. 90–248 § 108(a)(3)(B) · 81 Stat. 821
Inserted · 42 U.S.C. § 413(a)(2)(iii)
Pub. L. 90–248, § 108(a)(3)(B), inserted “and before 1968, or $7,800 in the case of a taxable year ending after 1967” after “1965”
Source evidence
Code amendment note
Subsec. (a)(2)(iii). Pub. L. 90–248, § 108(a)(3)(B), inserted “and before 1968, or $7,800 in the case of a taxable year ending after 1967” after “1965”.Enacted provision · exact public law section
(B) Section 213(a)(2)(iii) of such Act is amended by striking out “after 1965” and inserting in lieu thereof “after 1965 and before 1968, or $7,800 in the case of a taxable year ending after 1967”.Social Security Amendments of 1967
Pub. L. 90–248 § 155(b)(1) · 81 Stat. 821
Added · 42 U.S.C. § 413(c)
Pub. L. 90–248, § 155(b)(1), added subsec. (c)
Source evidence
Code amendment note
Subsec. (c). Pub. L. 90–248, § 155(b)(1), added subsec. (c).Enacted provision · exact public law section
(1) Section 213 of the Social Security Act is amended by adding 64 Stat. 504. 42 USC 413. at the end thereof the following new subsection: “(c) “Alternative Method for Determining Quarters of Coverage With Respect to Wages in the Period from 1937 to 1950 For purposes of section 214(a), an individual shall be deemed to have one quarter of coverage for each $400 of his total wages prior Ante, p. 864. to 1951 (as defined in section 215(d)(1)(C)), except where— “(1) such individual is not a fully insured individual on the basis of the number of quarters of coverage so derived plus the number of quarters of coverage derived from the wages and self-employment income credited to him for periods after 1950, or “(2) such individual’s elapsed years (for purposes of section 214(a)(1)) are less than 7.”Pub. L. 92–5 § 203(a)(3)(A) · 85 Stat. 5
Substituted · 42 U.S.C. § 413(a)(2)(ii)
Pub. L. 92–5, § 203(a)(3)(A), substituted “after 1967 and before 1972, or $9,000 in the case of a calendar year after 1971” for “after 1967”
Source evidence
Code amendment note
Subsec. (a)(2)(ii). Pub. L. 92–5, § 203(a)(3)(A), substituted “after 1967 and before 1972, or $9,000 in the case of a calendar year after 1971” for “after 1967”.Enacted provision · exact public law section
(A) Section 213(a) (2) (ii) of such Act is amended by striking out “after 1967” and inserting in lieu thereof “after 1967 and before 1972, or $9,000 in the case of a calendar year after 1971”.Pub. L. 92–5 § 203(a)(3)(B) · 85 Stat. 5
Substituted · 42 U.S.C. § 413(a)(2)(iii)
Pub. L. 92–5, § 203(a)(3)(B), substituted “after 1967 and beginning before 1972, or $9,000 in the case of a taxable year beginning after 1971” for “after 1967”
Source evidence
Code amendment note
Subsec. (a)(2)(iii). Pub. L. 92–5, § 203(a)(3)(B), substituted “after 1967 and beginning before 1972, or $9,000 in the case of a taxable year beginning after 1971” for “after 1967”.Enacted provision · exact public law section
(B) Section 213(a) (2) (iii) of such Act is amended by striking out “after 1967” and inserting in lieu thereof “after 1967 and beginning before 1972, or $9,000 in the case of a taxable year beginning after 1971”.Pub. L. 92–336 § 203(a)(3)(A) · 86 Stat. 406
Inserted · 42 U.S.C. § 413(a)(2)(ii)
Pub. L. 92–336, § 203(a)(3)(A), inserted provisions for determining a quarter of coverage based on amounts earned as wages after 1971 and before 1975, and amounts equal to the contribution and benefit base in the case of any calendar year after 1974 with respect to which such contribution and benefit base is effective
Source evidence
Code amendment note
Subsec. (a)(2)(ii). Pub. L. 92–336, § 203(a)(3)(A), inserted provisions for determining a quarter of coverage based on amounts earned as wages after 1971 and before 1975, and amounts equal to the contribution and benefit base in the case of any calendar year after 1974 with respect to which such contribution and benefit base is effective.Enacted provision · exact public law section
(A) Section 213(a)(2)(ii) of such Act is amended by striking out “after 1971” and inserting in lieu thereof “after 1971 and before 1973, or $10,800 in the ease of a calendar year after 1972 and before 1974, or $12,000 in the case of a calendar year after 1973 and before 1975, or an amount equal to the contribution and benefit base (as determined under section 230) in the case of any calendar year after 1974 with respect to which such contribution and benefit base is effective”.Pub. L. 92–336 § 203(a)(3)(B) · 86 Stat. 406
Inserted · 42 U.S.C. § 413(a)(2)(iii)
Pub. L. 92–336, § 203(a)(3)(B), inserted provisions for determining a quarter of coverage based on amounts earned as wages after 1971 and before 1975, and amounts equal to the contribution and benefit base which is effective for the calendar year in the case of any taxable year beginning in any calendar year after 1974
Source evidence
Code amendment note
Subsec. (a)(2)(iii). Pub. L. 92–336, § 203(a)(3)(B), inserted provisions for determining a quarter of coverage based on amounts earned as wages after 1971 and before 1975, and amounts equal to the contribution and benefit base which is effective for the calendar year in the case of any taxable year beginning in any calendar year after 1974.Enacted provision · exact public law section
(B) Section 213(a)(2)(iii) of such Act is amended by striking out “after 1971” and inserting in lieu thereof “after 1971 and before 1973, or $10,800 in the case of a taxable year beginning after 1972 and before 1974, or $12,000 in the case of a taxable year beginning after 1973 and before 1975, or an amount equal to the contribution and benefit base (as determined under section 230) which is effective for the calendar year in the case of any taxable year beginning in any calendar year after 1974”.Pub. L. 93–66 title II § 203(a)(3) · 87 Stat. 152
Substituted · 42 U.S.C. § 413(a)(2)(ii); 42 U.S.C. § 413(a)(2)(iii)
Pub. L. 93–66 substituted “$12,600” for “$12,000”, in cls. (ii) and (iii)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 93–66 substituted “$12,600” for “$12,000”, in cls. (ii) and (iii).Enacted provision · exact public law section
(3) Sections 213(a) (2) (ii) and 213(a) (2) (iii) of such Act are 42 USC 413. each amended by striking out “$12,000” and inserting in lieu thereof “$12,600”.Pub. L. 93–233 § 5(a)(3) · 87 Stat. 946
Substituted · 42 U.S.C. § 413(a)(2)(ii); 42 U.S.C. § 413(a)(2)(iii)
Pub. L. 93–233 substituted “$13,200” for “$12,600”
Source evidence
Code amendment note
Subsec. (a)(2)(ii), (iii). Pub. L. 93–233 substituted “$13,200” for “$12,600”.Enacted provision · exact public law section
(3) Sections 213(a) (2) (ii) and 213(a) (2) (iii) of such Act are each amended by striking out “$12,600” and inserting in lieu thereof “$13,200”.Social Security Amendments of 1977
Pub. L. 95–216 title III · 91 Stat. 1509
Substituted · 42 U.S.C. § 413(a)(2)
Pub. L. 95–216, §§ 351(c), 352(a), substituted provisions relating to factors respecting definition of “quarters of coverage” for calendar years before 1978, subject to the provisions of subpar. (B) of this par., and for calendar years after 1977, subject to the provisions of subpar. (B) of this par., for provisions relating to factors respecting definition of “quarter of coverage” as a quarter in which the individual has been paid $50 or more in wages (except wages for agricultural labor paid after 1954) or for which he has been credited (as determined under section 412 of this title) with $100 or more of self-employment income
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 95–216, §§ 351(c), 352(a), substituted provisions relating to factors respecting definition of “quarters of coverage” for calendar years before 1978, subject to the provisions of subpar. (B) of this par., and for calendar years after 1977, subject to the provisions of subpar. (B) of this par., for provisions relating to factors respecting definition of “quarter of coverage” as a quarter in which the individual has been paid $50 or more in wages (except wages for agricultural labor paid after 1954) or for which he has been credited (as determined under section 412 of this title) with $100 or more of self-employment income.Enacted provision · exact public law
TITLE III— OTHER CHANGES IN PROVISIONS RELATING TO THE OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE PROGRAM Part A— Changes in Earnings Test Sec. 301. liberalization of earnings test for individuals age 65 and over (a) Section 203(f) (8) (A) of the Social Security Act is amended by striking out “a new exempt amount which shall be effective (unless such new exempt amount is prevented from becoming effective by subparagraph (C) of this paragraph) with respect to any individual’s taxable year which ends after the calendar year” and inserting in lieu thereof “the new exempt amounts (separately stated for individuals described in subparagraph (D) and for other individuals) which are to be applicable (unless prevented from becoming effective by subparagraph (C)) with respect to taxable years ending in (or with the close of) the calendar year after the calendar year”. (b) (1) Section 203(f) (8) (B) of such Act is amended by striking out “The exempt amount for each month of a particular taxable year shall be” in the matter preceding clause (i) and inserting in lieu thereof “Except as otherwise provided in subparagraph (D), the exempt amount which is applicable to individuals described in such subparagraph and the exempt amount which is applicable to other individuals, for each month of a particular taxable year, shall each be”. (2) Section 203(f) (8) (B) (i) of such Act is amended by striking out “the exempt amount” and inserting in lieu thereof “the corresponding exempt amount”. (3) The last sentence of section 203(f) (8) (B) of such Act is amended by striking out “the exempt amount” and inserting in lieu thereof “an exempt amount”. (c) (1) Section 203(f) (8) of such Act is further amended by adding at the end thereof the following new subparagraph: “(D) Notwithstanding any other provision or this subsection, the exempt amount which is applicable to an individual who has attained age 65 before the close of the taxable year involved— “(i) shall be $333.33% for each month of any taxable year ending after 1977 and before 1979, “(ii) shall be $375 for each month of any taxable year ending after 1978 and before 1980, “(iii) shall be $116.66% for each month of any taxable year ending after 1979 and before 1981, “(iv) shall be $458.33% for each month of any taxable year ending after 1980 and before 1982, and “(v) shall be $500 for each month of any taxable year ending after 1981 and before 1983.”. (2) No notification with respect to an increased exempt amount for individuals described in section 203(f) (8) (D) of the Social Security Supra. Act (as added by paragraph (1) of this subsection) shall be required under the last sentence of section 203(f) (8) (B) of such Act in 1977, 1978, 1979, 1980, or 1981; and section 203(f) (8) (C) of such Act shall not prevent the new exempt amount determined and published under section 203(f) (8) (A) in 1977 from becoming effective to the extent that such new exempt amount applies to individuals other than those described in section 203(f) (8) (D) of such Act (as so added). (d) Subsections (f) (1), (f) (3), (f) (4) (B), and (h) (1) (A) of section 203 of such Act are each amended by striking out “$200 or the exempt amount” and inserting in lieu thereof “the applicable exempt amount”. (e) The amendments made by this section shall apply with respect Effective date. 42 USC 403 note. to taxable years ending after December 1977. Sec. 302. repeal of earnings limitation for individuals age 70 and over (a) Subsections (c) (1), (d) (1), (f) (1) (B), and (j) of section 203 of the Social Security Act are each amended by striking 42 USC 403. out “seventy-two” and inserting in lieu thereof “seventy”. (b) Subsection (f) (3) of section 203 of such Act is amended by striking out “age 72” and inserting in lieu thereof “age 70”. (c) Subsection (h) (1) (A) of section 203 of such Act is amended by striking out “the age of 72” and “age 72” and inserting in lieu thereof in each instance “age 70”. (d) The heading of subsection (j) of section 203 of such Act is amended by striking out “Seventy-two” and inserting in lieu thereof “Seventy”. (e) The amendments made by this section shall apply only with Effective date. 42 USC 403 note. respect to taxable years ending after December 31, 1981. Sec. 303. elimination of monthly earnings test (a) Clause (E) of the last sentence of section 203(f) (1) of the Social Security Act (as amended by section 301(d) of this Act) Ante, p. 1530. is further amended by inserting before the period at the end thereof the following: “, if such month is in the taxable year in which occurs the first month that is both (i) a month for which the individual is entitled to benefits under subsection (a), (b), (c), (d), (e), (f), (g), or (h) of section 202 (without having been entitled for the preceding 42 USC 402. month to a benefit under any other of such subsections), and (ii) a month in which the individual did not engage in self-employment and did not render services for wages (determined as provided in paragraph (5)) of more than the applicable exempt amount as determined under paragraph (8)”. (b) The amendment made by subsection (a) shall apply only with Effective date. 42 USC 403 note. respect to monthly benefits payable for months after December 1977. Part B— Coverage Sec. 311. study of universal coverage (a) The Secretary of Health, Education, and Welfare is 42 USC 902 note. directed to undertake, as soon as possible after the date of the enactment of this Act, a thorough study with respect to the extent of the coverage under the old-age, survivors, and disability insurance programs and under the programs established by title XVIII of the Social Security Act. The study shall examine the feasibility and desirability 42 USC 1395. of covering, under such social security programs. Federal employees, State and local governmental employees, and employees of non-profit organizations who are not now covered. The study shall include alternative methods of accomplishing such coverage together with any appropriate alternatives to extending coverage to such employees. (b) With respect to each major alternative method or proposal included in the study described in subsection (a), such study shall also include an analysis of the changes which would be required in the programs established by the Social Security Act and in any other systems 42 USC 1305. or programs (such as retirement, survivorship, disability, and health programs) affecting the individuals who would be covered under such social security programs under such alternative method or proposal. Such analysis shall include the structural changes required in such programs, the financial impact of such changes, and the effect of such changes on the benefit rights and contribution liabilities of the affected individuals. (c) In conducting the study required by subsection (a), the Secretary of Health, Education, and Welfare shall consult, as appropriate, with the Secretary of the Treasury, the Director of the Office of Management and Budget, and the Chairman of Civil Service Commission, and those officials shall provide him with such information and assistance as he may require. The Secretary shall also solicit the views of other appropriate officials and organizations. (d) The Secretary of Health, Education, and Welfare shall submit to the President and the Congress, not later than 2 years after the date of the enactment of this Act, a report of the findings of the study required by subsection (a) together with his recommendations for any appropriate legislative changes. Sec. 312. coverage of nonprofit organizations which failed to file waiver certificates (a) (1) Section 3121 (k) (5) of the Internal Revenue Code 26 USC 3121. of 1954 (relating to constructive filing of certificate where refund or credit has been made and new certificate is not filed) is amended— (A) by striking out “prior to the expiration of 180 days after the date of the enactment of this paragraph,” in subparagraph (B) and inserting in lieu thereof “prior to April 1, 1978,”; and (B) by striking out “the 181st day after the date of the enactment of this paragraph,” and “such 181st day” in the matter following subparagraph (B) and inserting in lieu thereof in each instance “April 1, 1978,”. (2) Section 3121 (k) (7) of such Code (relating to payment of both employee and employer taxes for retroactive period by organization in cases of constructive filing) is amended— (A) by striking out “prior to the expiration of 180 days after the date of the enactment of this paragraph” and inserting in lieu thereof “prior to April 1, 1978,”; (B) by striking out “the 181st day after such date,” and inserting in lieu thereof “April 1, 1978,” and (C) by striking out “prior to the first day of the calendar quarter in which such 181st day occurs” and inserting in lieu thereof “prior to that date”. (3) Section 3121 (k) (8) of such Code (relating to extended period for payment of taxes for retroactive coverage) is amended— (A) by striking out “by the end of the 180-day period following the date of the enactment of this paragraph” and inserting in lieu thereof “prior to April 1, 1978,”; (B) by striking out “within that period” and inserting in lieu thereof “prior to April 1, 1978”; and (C) by striking out “on the 181st day following that date” and inserting in lieu thereof “on that date”. (b) (1) Section 3121 (k) (4) of such Code (relating to constructive filing of certificate where no refund or credit of taxes has been made) is amended by adding at the end thereof the following new subparagraph: “(C) In the case of any organization which is deemed under Waiver certificate, filing. this paragraph to have filed a valid waiver certificate under paragraph (1), if— “(i) the period with respect to which the taxes imposed by sections 3101 and 3111 were paid by such organization Ante, p. 1510. Post, p. 1540. Ante, p. 1512. Post, pp. 1537, 1540. (as described in subparagraph (A) (ii)) terminated prior to October 1, 1976, or “(ii) the taxes imposed by sections 3101 and 3111 were not paid during the period referred to in clause (i) (whether such period has terminated or not) with respect to remuneration paid by such organization to individuals who became its employees after the close of the calendar quarter in which such period began, taxes under sections 3101 and 3111— “(iii) in the case of an organization which meets the requirements of this subparagraph by reason of clause (i), with respect to remuneration paid by such organization after the termination of the period referred to in clause (i) and prior to July 1, 1977; or “(iv) in the case of an organization which meets the requirements of this subparagraph by reason of clause (ii), with respect to remuneration paid prior to July 1, 1977, to individuals who became its employees after the close of the calendar quarter in which the period referred to in clause (i) began, which remain unpaid on the date of the enactment of this subparagraph, or which were paid after October 19, 1976, but prior to the date of the enactment of this subparagraph, shall not be due or payable (or, if paid, shall be refunded); and the certificate which such organization is deemed under this paragraph to have filed shall not apply to any service with respect to the remuneration for which the taxes imposed by sections 3101 and 3111 (which remain unpaid on the date of the enactment of this subparagraph, or were paid after October 19, 1976, but prior to the date of the enactment of this subparagraph) are not due and payable (or are refunded) by reason of the preceding provisions of this subparagraph. In applying this subparagraph for purposes of title II of the Social Security Act, the period 42 USC 401. during which reports of wages subject to the taxes imposed by sections 3101 and 3111 were made by any organization may be conclusively treated as the period (described in subparagraph (A) (ii)) during which the taxes imposed by such sections were paid by such organization.”. (2) Section 3121 (k) (4) (A) of such Code is amended by inserting 26 USC 3121. “(subject to subparagraph (C))” after “effective” in the matter following clause (ii). (3) Section 3121(k) (6) of such Code (relating to application of certain provisions to cases of constructive filing) is amended by inserting “(except as provided in paragraph (4) (C))” after “services involved” in the matter preceding subparagraph (A). (4) Section 3121 (k) (4) of such Code is amended by striking out “date” in subparagraph (B) (ii) and inserting in lieu thereof “first day of the calendar quarter”. (c) In any case, where— 26 USC 3121 note. (1) an individual performed service, as an employee of an organization which is deemed under section 3121(k) (4) of the Ante, p. 1533. Post, p. 1535. 26 USC 3121. Internal Revenue Code of 1954 to have filed a waiver certificate under section 3121 (k) (1) of such Code, on or after the first day of the applicable period described in subparagraph (A) (ii) of such section 3121(k) (4) and before July 1, 1977; and (2) the service so performed does not constitute employment Post, p. 1549. Post, p. 1555. (as defined in section 210(a) of the Social Security Act and section 3121(b) of such Code) because the waiver certificate which the organization is deemed to have filed is made inapplicable to such service by section 3121 (k) (4) (C) of such Code, but would constitute employment (as so defined) in the absence of such section Ante, p. 1532. 3121(k) (4) (C), the remuneration paid for such service shall, upon the request of such individual (filed on or before April 15, 1980, in such manner and form, and with such official, as may be prescribed by regulations made under 42 USC 401. title II of the Social Security Act) accompanied by full payment of all of the taxes which would have been paid under section 3101 of such Ante, p. 1510. Post, p. 1540. Code with respect to such remuneration but for such section 3121 (k) (4) (C) (or by satisfactory evidence that appropriate arrangements have been made for the payment of such taxes in installments as provided Infra. in section 3121(k) (8) of such Code), be deemed to constitute remuneration for employment as so defined. In any case where remuneration paid by an organization to an individual is deemed under the preceding sentence to constitute remuneration for employment, such organization shall be liable (notwithstanding any other provision of such Code) for payment of the, taxes which it would have been Ante, p. 1511. Post, pp. 1537, 1540. Ante, p. 1532. required to pay under section 3111 of such Code with respect to such remuneration in the absence of such section 3121 (k) (4) (C). (d) Section 3121(k) (8) of the Internal Revenue Code of 1954 (relating to extended period for payment of taxes for retroactive coverage), as amended by subsection (a) (3) of this section, is amended to read as follows: “(8) Extended period for payment of taxes for retroactive coverage.— Notwithstanding any other provision of this title, in any case where— “(A) an organization is deemed under paragraph (4) to have filed a valid waiver certificate under paragraph (1), but the applicable period described in paragraph (4) (A) (ii) has terminated and part or all of the taxes imposed by sections 3101 and 3111 with respect to remuneration paid by such organization to its employees after the close of such period remains payable notwithstanding paragraph (4) (C), or “(B) an organization described in paragraph (5) (A) files a valid waiver certificate under paragraph (1) by March 31, 1978, as described in paragraph (5) (B), or (not having filed such a certificate, by that date) is deemed under paragraph (5) to have filed such a certificate on April 1, 1978, or “(C) an individual files a request under section 3 of Public Law 94–563, or under section 312(c) of the Social Security Amendments of 1977, to have, service treated as constituting remuneration for employment (as defined in section 3121(b) and in section 210(a) of the Social Security Act), the taxes due under sections 3101 and 3111 with respect to services constituting employment by reason of such certificate for any period prior to the first day of the calendar quarter in which the date of such filing or constructive filing occurs, or with respect to service constituting employment by reason of such request, may be paid in installments over an appropriate period of time, as determined under regulations prescribed by the Secretary, rather than in a lump sum.”. (e) The first sentence of section 3 of Public Law 94–563 (in the 26 USC 3121 note. matter following paragraph (3)) is amended— (1) by inserting “on or before April 15, 1980,” after “filed”; and (2) by inserting “(or by satisfactory evidence that appropriate arrangements have been made for the repayment of such taxes in installments as provided in section 3121(k) (8) of such Code)” Ante, p. 1534. after “so refunded or credited”. (f) Section 3121 (k) (4) (A) (i) of the Internal Revenue Code of 1954 (relating to constructive filing of certificate where no refund or 26 USC 3121. credit of taxes has been made) is amended by striking out “or any subsequent date” and inserting in lieu thereof “(or, if later, as of the earliest date on which it satisfies clause (ii) of this subparagraph.)”. (g) Section 3121 (k) (4) (B) of such Code (relating to constructive filing of certificate where no refund or credit of taxes has been made) is amended— (1) by striking out the period at the end of clause (ii) and inserting in lieu thereof or”; and (2) by adding after clause (ii) the following new clause: “(iii) the organization, prior to the end of the period referred to in clause (ii) of such subparagraph (and, in the case of an organization organized on or before October 9, 1969, prior to October 19, 1976), had applied for a ruling or determination letter acknowledging it to be exempt from income tax under section 501 (c) (3), and it subsequently 26 USC 501. received such railing or determination letter and did not pay any taxes under sections 3101 and 3111 with respect to any Ante, p. 1510. Post, p. 1540. Ante, p. 1511. Post, pp. 1537, 1540. employee with respect to any quarter ending after the twelfth month following the date of mailing of such ruling or determination letter and did not pay any such taxes with respect to any quarter beginning after the later of (I) December 31, 1975 or (II) the date on which such ruling or determination letter was issued.”. (h) The amendments made by subsections (a), (b), (d), (e), (f), Effective date. 26 USC 3121 note. and (g) of this section shall be effective as though they had been included as a part of the amendments made to section 3121 (k) of the Internal Revenue Code of 1954 by the first section of Public Law 94–563 (or, in the case of the amendments made by subsection (e), as a part of section 3 of such Public Law). Sec. 313. exclusion from coverage of certain limited partnership income (a) Section 211(a) of the Social Security Act is amended— 42 USC 411. (1) by striking out “and” at the end of paragraph (9); (2) by striking out the period at the end of paragraph (10) and inserting in lieu thereof “; and”; and (3) by inserting after paragraph (10) the following new paragraph: “(11) There shall be excluded the distributive share of any item of income or loss of a limited partner, as such, other than guaranteed payments described in section 707(c) of the Internal Revenue Code of 1954 to that partner for services actually rendered 26 USC 707. to or on behalf of the partnership to the extent that those payments are established to be in the nature of remuneration for those services.”. (b) Section 1402(a) of the Internal Revenue Code of 1954 (relating to definition of net earnings from self-employment) is amended— (1) by striking out “and” at the end of paragraph (10); (2) by striking out the period at the end of paragraph (11) and inserting in lieu thereof “; and”; and (3) by inserting after paragraph (11) the following new paragraph: “(12) there shall be excluded the distributive share of any item of income or loss of a limited partner, as such, other than guaranteed 26 USC 707. payments described in section 707(c) to that partner for services actually rendered to or on behalf of the partnership to the extent that those payments are established to be in the nature of remuneration for those services.”. (c) The amendments made by this section shall apply with respect to taxable years beginning after December 31, 1977. Sec. 314. employees of members of related groups of corporations (a) Section 3121 of the Internal Revenue Code of 1954 (definitions for purposes of the Federal Insurance Contributions Act) is amended by adding at the end thereof the following new subsection: “(s) Concurrent Employment by Two or More Employers.— For Post, p. 1555. Ante, p. 1511. Post, pp. 1537, 1540. purposes of sections 3102,3111, and 3121(a) (1), if two or more related corporations concurrently employ the same individual and compensate such individual through a common paymaster which is one of such corporations, each such corporation shall be considered to have paid as remuneration to such individual only the amounts actually disbursed by it to such individual and shall not be considered to have paid as remuneration to such individual amounts actually disbursed to such individual by another of such corporations.”. (b) Section 3306 of such Code (relating to definitions in respect of unemployment tax) is amended by adding at the end thereof the following new subsection: “(p) Concurrent Employment by Two or More Employers.— For 26 USC 3301, 3302. purposes of sections 3301, 3302, and 3306(b) (1), if two or more related corporations concurrently employ the same individual and compensate such individual through a common paymaster which is one of such corporations, each such corporation shall be considered to have paid as remuneration to such individual only the amounts actually disbursed by it to such individual and shall not be considered to have paid as remuneration to such individual amounts actually disbursed to such individual by another of such corporations.”. (c) The amendments made by this section shall apply with respect to wages paid after December 31, 1978. Sec. 315. tax on employers of individuals who receive income from tips (a) Section 3121 of the Internal Revenue Code of 1954 (definitions for purposes of the Federal Insurance Contributions Act) is amended by adding at the end thereof (after the new subsection added by section 314(a) of this Act) the following new subsection: “(t) Special Rule for Determining Wages Subject to Employer Tax in Case of Certain Employers Whose Employees Receive Income From Tips.— If the wages paid by an employer with respect to the employment during any month of an individual who (for services performed in connection with such employment) receives tips which Post, p. 1555. constitute wages, and to which section 3102(a) applies, are less than the total amount which would be payable (with respect to such employment) at the minimum wage rate applicable to such individual under section 6(a) (1) of the Fair Labor Standards Act of 1938 Ante, p. 1245. 29 USC 203. (determined without regard to section 3(m) of such Act), the wages so paid shall be deemed for purposes of section 3111 to be equal to such total amount.”. (b) Section 3111 of such Code is amended by inserting “and (t)” Ante, pp. 1511, 1512. Effective date. 26 USC 3111 note. after “3121(a)” in subsections (a) and (b). (c) The amendments made by this section shall apply with respect to wages paid with respect to employment performed in months after December 1977. Sec. 316. revocation of exemption from coverage by clergymen (a) Notwithstanding section 1402(e) (3) of the Internal 26 USC 1402 note. 26 USC 1402. Revenue Code of 1954, any exemption which has been received under section 1402(e) (1) of such Code by a duly ordained, commissioned, or licensed minister of a church or a Christian Science practitioner, and which is effective for the taxable year in which this Act is enacted, may be revoked by filing an application therefor (in such form and manner, and with such official, as may be prescribed in regulations made under chapter 2 of such Code), if such application is filed— 26 USC 1401. (1) before the applicant becomes entitled to benefits under section 202(a) or 223 of the Social Security Act (without regard to 42 USC 402, 423. Post, p. 1542. section 202(j) (1) or 223(b) of such Act), and (2) no later than the due date of the Federal income tax return (including any extension thereof) for the applicant’s first taxable year beginning after the date of the enactment of this Act. Any such revocation shall be effective (for purposes of chapter 2 of the Internal Revenue Code of 1954 and title II of the Social Security Act), as specified in the application, either with respect to the applicant’s 42 USC 401. first taxable year ending on or after the date of the enactment of this Act or with respect to the applicant’s first taxable year beginning after such date, and for all succeeding taxable years: and the applicant for any such revocation may not thereafter again file application for an exemption under such section 1402(e) (1). If the application is filed on or after the due date of the applicant’s first taxable year ending on or after the date of the enactment of this Act and is effective with respect to that taxable year, it shall include or be accompanied by payment in full of an amount equal to the total of the taxes that would have been imposed by section 1401 of the Internal Revenue Code of 1954 with respect to all of the applicant’s income derived in 26 USC 1401. that taxable year which would have constituted net earnings from self-employment for purposes of chapter 2 of such Code (notwithstanding section 1402(c) (4) or (c) (5) of such Code) except for the exemption under section 1402(e) (1) of such Code. (b) Subsection (a) shall apply with respect to service performed (to the extent specified in such subsection) in taxable years ending on or after the date of the enactment of this Act, and with respect to monthly insurance benefits payable under title II of the Social Security Act on the basis of the wages and self-employment income of any 42 USC 401. individual for months in or after the calendar year in which such individual’s application for revocation (as described in such subsection) is filed (and lump-sum death payments payable under such title on the basis of such wages and self-employment income in the case of deaths occurring in or after such calendar year). Sec. 317. international agreements with respect to social security benefits (a) Title II of the Social Security Act is amended by adding at the end thereof the following new section: “Sec. 233. “international agreements “Purpose of Agreement (a) The President is authorized (subject to the succeeding provisions of this section) to enter into agreements establishing totalization arrangements between the social security system established by this title and the social security system of any foreign country, for the purposes of establishing entitlement to and the amount of old-age, survivors, disability, or derivative benefits based on a combination of an individual’s periods of coverage under the social security system established by this title and the social security system of such foreign country. “(b) “Definitions For the purposes of this section— “(1) the term ‘social security system’ means, with respect to a foreign country, a social insurance or pension system which is of general application in the country and under which periodic benefits, or the actuarial equivalent thereof, are paid on account of old age, death, or disability; and “(2) the term ‘period of coverage’ means a period of payment of contributions or a period of earnings based on wages for employment or on self-employment income, or any similar period recognized as equivalent thereto under this title or under the social security system of a country which is a party to an agreement entered into under this section. “(c) “Crediting Periods of Coverage; Conditions of Payment of Benefits (1) Any agreement establishing a totalization arrangement pursuant to this section shall provide— “(A) that in the case of an individual who has at least 6 quarters Post, pp. 1550, 1552. of coverage as defined in section 213 of this Act and periods of coverage under the social security system of a foreign country which is a party to such agreement, periods of coverage of such individual under such social security system of such foreign country may be combined with periods of coverage under this title and otherwise considered for the purposes of establishing entitlement to and the amount of old-age, survivors, and disability insurance benefits under this title; “(B) (i) that employment or self-employment, or any service which is recognized as equivalent to employment or self-employment under this title or the social security system of a foreign country which is a party to such agreement, shall, on or after the effective date of such agreement, result in a period of coverage under the system established under this title or under the system established under the laws of such foreign country, but not under both, and (ii) the methods and conditions for determining under which system employment, self-employment, or other service shall result in a period of coverage; and “(C) that where an individual’s periods of coverage are combined, the benefit amount payable under this title shall be based on the proportion of such individual’s periods of coverage which was completed under this title. “(2) Any such agreement may provide that— “(A) an individual who is entitled to cash benefits under this title shall, notwithstanding the provisions of section 202 (t), 42 USC 402. receive such benefits while he resides in a foreign country which is a party to such agreement; and “(B) the benefit paid by the United States to an individual who legally resides in the United States shall, if less when added to the benefit paid by such foreign country than the benefit amount which would be payable to an entitled individual based on the first figure in (or deemed to be in) column IV of the table in section 215(a) in the case of an individual becoming eligible for Ante, p. 1514. such benefit before January 1, 1979, or based on a primary insurance amount determined under section 215(a) (1) (C) (i) (I) in the case of an individual becoming eligible for such benefit on or after that date, be increased so that the total of the two benefits is equal to the benefit amount which would be so payable. “(3) Section 226 shall not apply in the case of any individual to Post, pp. 1543, 1546. whom it would not be applicable but for this section or any agreement or regular ion under this section. “(4) Any such agreement may contain other provisions which are not inconsistent with the other provisions of this title and which the President deems appropriate to carry out the purposes of this section. “(d) “Regulations The Secretary of Health, Education, and Welfare shall make rules and regulations and establish procedures which are reasonable and necessary to implement and administer any agreement which has been entered into in accordance with this section. “(e) “Reports to Congress; Effective Date of Agreements (1) Any agreement to establish a totalization arrangement entered into pursuant to this section shall be transmitted by the President to the Congress together with a report on the estimated number of individuals who will be affected by the agreement and the effect of the agreement on the estimated income and expenditures of the programs established by this Act. “(2) Such an agreement shall become effective on any date, provided in the agreement, which occurs after the expiration of the period (following the date on which the agreement is transmitted in accordance with paragraph (1)) during which each House of the Congress has been in session on each of 90 days; except that such agreement shall not become effective if, during such period, either House of the Congress adopts a resolution of disapproval of the agreement.”. (b) (1) Section 1401 of the Internal Revenue Code of 1954 26 USC 1401. is amended by adding at the end thereof the following new subsection: “(c) Relief From Taxes in Cases Covered by Certain International Agreements.— During any period in which there is in effect an agreement entered into pursuant to section 233 of the Social Security Act with any foreign country, the self-employment income of an Ante, p. 1538. individual shall be exempt from the taxes imposed by this section to the extent that such self-employment income is subject under such agree-ment to taxes or contributions for similar purposes under the social security system of such foreign country.”. (2) Sections 3101 and 3111 of such Code are each amended by adding at the end thereof the following new subsection: “(c) Relief From Taxes in Cases Covered by Certain International Agreements.— During any period in which there is in effect an agreement entered into pursuant to section 233 of the Social Security Ante, p. 1538. Act with any foreign country, wages received by or paid to an individual shall be exempt from the taxes imposed by this section to the extent that such wages are subject under such agreement to taxes or contributions for similar purposes under the social security system of such foreign country.”. (3) Section 6051(a) of such Code is amended by adding at the end thereof the following new sentence: “The amounts required to be shown by paragraph (5) shall not include wages which are exempted Supra. pursuant to sections 3101(c) and 3111(c) from the taxes imposed by sections 3101 and 3111.”. (4) Notwithstanding any other provision of law, taxes paid by any individual to any foreign country with respect to any period of employment or self-employment which is covered under the social security system of such foreign country in accordance with the terms of an agreement entered into pursuant to section 233 of the Social Security Act shall not, under the income tax laws of the United States, be deductible by, or creditable against the income tax of, any such individual. Sec. 318. modification of agreement with illinois to provide coverage for certain policemen and firemen (a) Notwithstanding the provisions of subsection (d) (5) (A) of section 218 of the Social Security Act and the references thereto in subsections (d) (1) and (d) (3) of such section 218, the agreement with the State of Illinois heretofore entered into pursuant to such section 218 may, at any time prior to January 1, 1979, be modified pursuant to subsection (c) (4) of such section 218 so as to apply to services performed in policemen’s or firemen’s positions covered by the Illinois Municipal Retirement Fund on the date of the enactment of this Act if the State of Illinois has at any time prior to the date of the enactment of this Act paid to the Secretary of the Treasury, with respect to any of the services performed in such positions, the sums prescribed pursuant to subsection (e) (1) of such section 218. For purposes of this section, a retirement system which covers positions of policemen or firemen shall, if the State of Illinois so desires, be deemed to be a separate retirement system with respect to the positions of such policemen or firemen, as the case may be. (b) Notwithstanding the provisions of subsection (f) of section 218 of the Social Security Act, any modification in the agreement with the State of Illinois under subsection (a) of this section, to the extent that it involves services performed by a policeman or fireman in positions covered under the Illinois Municipal Retirement Fund, shall be made effective with respect to— (1) all services performed by policemen or firemen, in positions to which the modification relates, on or after the date of the enactment of this Act: and (2) all services performed by such individuals in such positions before such date of enactment with respect to which the State of Illinois has paid to the Secretary of the Treasury the sums pre-scribed pursuant to subsection (e) (1) of such section 218 at the 42 USC 418. time or times established pursuant to such subsection (e) (1), if and to the extent that— (A) no refund of the sums so paid has been obtained, or (B) a refund of part or all of the sums so paid has been obtained but the State of Illinois repays to the Secretary of the Treasury the amount of such refund within 90 days after the date that the modification is agreed to by the State and the Secretary of Health, Education, and Welfare. Sec. 319. coverage for policemen and firemen in mississippi Section 218(p) (1) of the Social Security Act is amended 42 USC 418. by inserting “Mississippi,” after “Maryland,”. Sec. 320. coverage under divided retirement system for public employees in new jersey Section 218(d) (6) (C) of the Social Security Act is amended by inserting “New Jersey,” after “Nevada,”. Sec. 321. coverage of service under wisconsin retirement system Section 218(m) (1) of the Social Security Act is amended by inserting after “Wisconsin retirement fund” the following: “or any successor system”. Part C— Benefit Amounts and Eligibility Sec. 331. actuarial reduction of benefit increases to be applied as of time of original entitlement (a) Section 202(q) (4) of the Social Security Act is 42 USC 402. amended by striking out all that follows subparagraph (B) and inserting in lieu thereof the following: “then the amount of the reduction of such benefit (after the application of any adjustment under paragraph (7)) for each month beginning with the month of such increase in the primary insurance amount shall be computed under paragraph (1) or (3), whichever applies, as though the increased primary insurance amount had been in effect for and after the month for which the individual first became, entitled to such monthly benefit reduced under such paragraph (1) or (3).”. (b) Section 202(q) of such Act is further amended by adding at the end thereof the following new paragraphs: “(10) For purposes of applying paragraph (4), with respect to monthly benefits payable for any month after December 1977 to an individual who was entitled to a monthly benefit as reduced under paragraph (1) or (3) prior to January 1978, the amount of reduction in such benefit for the first month for which such benefit is increased by reason of an increase in the primary insurance amount of the individual on whose wages and self-employment income such benefit is based and for all subsequent months (and similarly for all subsequent increases) shall be increased by a percentage equal to the percentage increase in such primary insurance amount (such increase being made in accordance with the provisions of paragraph (8)). In the case of an individual whose reduced benefit under this section is increased as a result of the use of an adjusted reduction period or an additional adjusted reduction period (in accordance with paragraphs (1) and (3) of this subsection), then for the first month for which such increase is effective, and for all subsequent months, the amount of such reduction (after the application of the previous sentence, if applicable) shall be determined— “(A) in the case of old-age, wife’s, and husband’s insurance benefits, by multiplying such amount by the ratio of (i) the number of months in the adjusted reduction period to (ii) the number of months in the reduction period, “(B) in the case of widow’s and widower’s insurance benefits for the month in which such individual attains age 62, by multiplying such amount by the ratio of (i) the number of months in the reduction period beginning with age 62 multiplied by 1940 of 1 percent, plus the number of months in the adjusted reduction period prior to age 62 multiplied by 1940 of 1 percent, plus the number of months in the adjusted additional reduction period multiplied by 43240 of 1 percent to (ii) the number of months in the reduction period multiplied by 1940 of 1 percent, plus the number of months in the additional reduction period multiplied by 43240 of 1 percent, and “(C) in the case of widow’s and widower’s insurance benefits for the month in which such individual attains age 65, by multiplying such amount by the ratio of (i) the number of months in the adjusted reduction period multiplied by 1940 of 1 percent, plus the number of months in the adjusted additional reduction period multiplied by 43240 of 1 percent to (ii) the number of months in the reduction period beginning with age 62 multiplied by 1940 of 1 percent, plus the number of months in the adjusted reduction period prior to age 62 multiplied by 1940 of 1 percent, plus the number of months in the adjusted additional reduction period multiplied by 43240 of 1 percent. such determination being made in accordance with the provisions of paragraph (8). “(11) When an individual is entitled to more than one monthly benefit under this title and one or more of such benefits are reduced under this subsection, paragraph (10) shall apply separately to each such benefit reduced under this subsection before the application of subsection (k) (pertaining to the method by which monthly benefits are offset when an individual is entitled to more than one kind of benefit) and the application of this paragraph shall operate in conjunction with paragraph (3).”. (c) (1) Section 202(q) (7) (C) of such Act is amended by striking out “because” and all that follows and inserting in lieu thereof “because of the occurrence of an event that terminated her or his entitlement to such benefits,”. (2) Section 202(q) (3) (H) of such Act is amended by inserting “for that month or” after “first entitled”. (d) The amendments made by this section shall be effective with respect to monthly benefits payable for months after December 1977. Sec. 332. limitation on retroactive benefits (a) (1) The first sentence of section 202(j) (1) of the Social Security Act is amended by striking out “An individual” and inserting in lieu thereof “Subject to the limitations contained in paragraph (4), an individual”. (2) Section 202(j) of such Act is further amended by adding at the 42 USC 402. end thereof the following new paragraph: “(4) (A) Except as provided in subparagraph (B), no individual shall be entitled to a monthly benefit under subsection (a), (b), (c), (e), or (f) for any month prior to the month in which he or she files an application for benefits under that subsection if the effect of entitlement to such benefit would be to reduce, pursuant to subsection (q), the amount of the monthly benefit to which such individual would otherwise be entitled for the month in which such application is filed. “(B) (i) If the individual applying for retroactive benefits is applying for such benefits under subsection (a), and there are one or more other persons who would (except for subparagraph (A)) be entitled for any month, on the basis of the wages and self-employment income of such individual and because of such individual’s entitlement to such retroactive benefits, to retroactive benefits under subsection (b), (c), or (d) not subject to reduction under subsection (q), then subparagraph (A) shall not apply with respect to such month or any subsequent month. “(ii) If the individual applying for retroactive benefits is a widow, surviving divorced wife, or widower and is under a disability (as defined in section 223(d)), and such individual would, except for subparagraph 42 USC 423. (A), be entitled to retroactive benefits as a disabled widow or widower or disabled surviving divorced wife for any month before attaining the age of 60, then subparagraph (A) shall not apply with respect to such month or any subsequent month. “(iii) If the individual applying for retroactive benefits has excess earnings (as defined in section 203(f)) in the year in which he or she 42 USC 403. files an application for such benefits which could, except for subparagraph (A), be charged to months in such year prior to the month of application, then subparagraph (A) shall not apply to so many of such months immediately preceding the month of application as are required to charge such excess earnings to the maximum extent possible. “(iv) As used in this subparagraph, the term ‘retroactive benefits’ “Retroactive benefits.” means benefits to which an individual becomes entitled for a month prior to the month in which application for such benefits is filed.”. (3) Section 226(h) of such Act is amended by adding at the end 42 USC 426. thereof the following new paragraph: “(4) For purposes of determining entitlement to hospital insurance benefits under subsection (b) in the case of an individual described in clause (iii) of subsection (b) (2) (A), the entitlement of such individual to widow’s or widower’s insurance benefits under section 202 (e) or (f) by reason of a disability shall be deemed to be the 42 USC 402. entitlement to such benefits that would result if such entitlement were determined without regard to the provisions of section 202(j) (4).”. (b) The amendments made by subsection (a) shall be effective with Effective date. 42 USC 402 note. 42 USC 401. respect to monthly insurance benefits under title II of the Social Security Act to which an individual becomes entitled on the basis of an application filed on or after January 1, 1978. Sec. 333. delivery of benefit checks (a) Title VII of the Social Security Act is amended by adding at the end thereof the following new section: “Sec. 708. “delivery of benefit checks (a) If the day regularly designated for the delivery of benefit checks under title II or title XVI falls on a Saturday, Sunday, or legal public holiday (as defined in section 6103 of title 5, United States Code) in any month, the benefit checks which would otherwise be delivered on such day shall be mailed for delivery on the first day preceding such day which is not a Saturday, Sunday, or legal public holiday (as so defined), without regard to whether the delivery of such checks would as a result have to be made before the end of the month for which such checks are issued. “(b) If more than the correct amount of payment under title II or XVI is made to any individual as a result of the receipt of a benefit check pursuant to subsection (a) before the, end of the month for which such check is issued, no action shall be taken (under section 42 USC 404, 1383. Effective date. 42 USC 909 note. 204 or 1631(b) or otherwise) to recover such payment or the incorrect portion thereof.”. (b) The amendment made by subsection (a) of this section shall apply with respect to benefit checks the regularly designated day for delivery of which occurs on or after the thirtieth day after the date of the enactment of this Act. Sec. 334. reduced benefits fob spouses receiving government pensions (a) (1) Section 202(b) (2) of the Social Security Act is amended by inserting after “subsection (q)” the following: “and paragraph (4) of this subsection”. (2) Section 202(b) of such Act is further amended by adding at the end thereof the following new paragraph: “(4) (A) The amount of a wife’s insurance benefit for each month as determined after application of the provisions of subsections (q) and (k) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such wife (or divorced wife) for such month which is based upon her earnings while in the service of the Federal Government or any State (or political 42 USC 418. subdivision thereof, as defined in section 218(b) (2)) if, on the last day she was employed by such entity, such service did not constitute 42 USC 410. ‘employment’ as defined in section 210. “(B) For purposes of this paragraph, any periodic benefit which otherwise meets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shall be allocated on a basis equivalent to a monthly benefit (as determined by the Secretary) and such equivalent monthly benefit shall constitute a monthly periodic “Periodic benefit.” benefit for purposes of subparagraph (A). For purposes of this subparagraph, the term ‘periodic benefit’ includes a benefit payable in a lump sum if it is a commutation of, or a substitute for, periodic payments.”. (b) (1) Section 202(c) (1) of such Act is amended— (A) by striking out subparagraph (C); (B) by adding “and” at the end of subparagraph (B); and (C) by redesignating subparagraph (D) as subparagraph (C). (2) Section 202(c) (2) of such Act is amended to read as follows: “(2) (A) The amount of a husband’s insurance benefit for each month as determined after application of the provisions of subsections (q) and (k) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such husband for such month which is based upon his earnings while in the service of the Federal Government or any State (or political sub-division thereof, as defined in section 218 (b) (2)) if, on the last day 42 USC 418. he was employed by such entity, such service did not constitute ‘employment’ as defined in section 210. Post, p. 1549. “(B) For purposes of this paragraph, any periodic benefit which otherwise meets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shall be allocated on a basis equivalent to a monthly benefit (as determined by the Secretary) and such equivalent monthly benefit shall constitute a monthly periodic benefit for purposes of subparagraph (A). For purposes of this subparagraph, “Periodic benefit.” the term ‘periodic benefit’ includes a benefit payable in a lump sum if it is a commutation of, or a substitute for, periodic payments.”. (3) Section 202(c) (3) of such Act is amended by inserting after 42 USC 402. “subsection (q)” the following: “and paragraph (2) of this subsection”. (c) (1) Section 202(e) (2) (A) of such Act (as amended by section 204(a) of this Act) is amended by striking out “paragraph (4)” in the first sentence and inserting in lieu thereof “paragraphs (4) and (8)”. (2) Section 202(e) of such Act is further amended by adding at the end thereof the following new paragraph: “(8) (A) The amount of a widow’s insurance benefit for each month as determined (after application of the provisions of subsections (q) and (k), paragraph (2) (B), and paragraph (4)) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such widow (or surviving divorced wife) for such month which is based upon her earnings while in the service of the Federal Government or any State (or any political subdivision thereof, as defined in section 218(b) (2)) if, on the last day she was employed by such entity, such service did not constitute ‘employment’ as defined in section 210. “(B) For purposes of this paragraph, any periodic benefit which otherwise meets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shall be allocated on a basis equivalent to a monthly benefit (as determined by the Secretary) and such equivalent monthly benefit shall constitute a monthly periodic benefit for purposes of subparagraph (A). For purposes of this subparagraph, “Periodic benefit.” the term ‘periodic benefit’ includes a benefit payable in a lump sum if it is a commutation of, or a substitute for, periodic payments.”. (d) (1) Section 202(f) (1) of such Act is amended— 42 USC 402. (A) by striking out subparagraph (D); and (B) by redesignating subparagraphs (E), (F), and (G) as subparagraphs (D), (E), and (F), respectively. (2) Section 202(f) (2) of such Act is amended to read as follows: “(2) (A) The amount of a widower’s insurance benefit for each month (as determined after application of the provisions of subsections (k) and (q), paragraph (3) (B), and paragraph (5)) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such widower for such month which is based upon his earnings while in the service of the Federal Government or any State (or any political subdivision thereof, as defined in section 218(b) (2)) if, on the last day he was employed by such entity, such service did not constitute ‘employment’ as defined in section 210. “(B) For purposes of this paragraph, any periodic benefit which otherwise meets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shall be allocated on a basis equivalent to a monthly benefit (as determined by the Secretary) and such equivalent monthly benefit shall constitute a monthly periodic benefit “Periodic benefit.” for purposes of subparagraph (A). For purposes of this subparagraph, the term ‘periodic benefit’ includes a benefit payable in a lump sum if it is a commutation of, or a substitute for, periodic payments.”. (3) Section 202(f) (3) (A) of such Act (as amended by section 204 Ante, p. 1528. (c) of this Act) is amended by striking out “paragraph (5)” in the first sentence and inserting in lieu thereof “paragraphs (2) and (5)”. (4) (A) Section 202(f) (7) of such Act is amended by striking out “paragraph (1) (G)” and inserting in lieu thereof “paragraph (1) (F).”. (B) Section 226(h) (1) (B) of such Act is amended by striking out “subparagraph (G) of section 202 (f) (1)” and inserting in lieu thereof “subparagraph (F) of section 202(f) (1)”. (5) Sect ion 202 (p) (1) of such Act is amended by striking out “subparagraph (C) of subsection (c) (1), clause (i) or (ii) of subparagraph (D) of subsection (f) (1), or”. (6) Section 202(s) (3) of such Act is amended by striking out “Subsections” and all that follows down through “so much” and inserting in lieu thereof “So much”. (e) (1) Section 202(g) (2) of such Act is amended by striking out “Such” and inserting in lieu thereof “Except as provided in paragraph (4) of this subsection, such”. (2) Section 202(g) of such Act is further amended by adding at the end thereof the following new paragraph: “(4) (A) The amount of a mother’s insurance benefit for each month to which any individual is entitled under this subsection (as determined after application of subsection (k)) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such individual for such month which is based upon such individual’s earnings while in the service of the Federal Government or any State (or political subdivision thereof, as 42 USC 418. defined in section 218(b) (2)) if, on the last day such individual was employed by such entity, such service did not constitute ‘employment’ Post, p. 1549. as defined in section 210. “(B) For purposes of this paragraph, any periodic benefit which otherwise meets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shall be allocated on a basis equivalent to a monthly benefit (as determined by the Secretary) and such equivalent monthly benefit shall constitute a monthly periodic benefit “Periodic benefit.” for purposes of subparagraph (A). For purposes of this subparagraph, the term ‘periodic benefit’ includes a benefit payable in a lump sum if it is a commutation of, or a substitute for, periodic payments.”. (f) The amendments made by this section shall apply with respect to monthly insurance benefits payable under title IT of the Social Security Act for months beginning with the month in which this Act is enacted, on the basis of applications filed in or after the month in which this Act is enacted. (g) (1) The amendments made by the preceding provisions of this section shall not apply with respect to any monthly insurance benefit payable, under subsection (b), (c), (e), (f), or (g) (as the case may tie) of section 202 of the Social Security Act, to an individual— (A) to whom there is payable for any month within the 60-month period beginning with the month in which this Act is enacted (or who is eligible in any such month for) a monthly periodic benefit (within the meaning of such provisions) based upon such individual’s earnings while in the service of the Federal Government or any State (or political subdivision thereof, as defined in section 218(b) (2) of the Social Security Act); and 42 USC 418. (B) who at time of application for or initial entitlement to such monthly insurance benefit under such subsection (b), (c), (e), (f), or (g) meets the requirements of that subsection as it was in effect and being administered in January 1977. (2) For purposes of paragraph (1) (A), an individual is eligible Eligibility. for a monthly periodic benefit for any month if such benefit would be payable to such individual for that month if such individual were not employed during that month and had made proper application for such benefit. (3) If any provision of this subsection, or the application thereof Separability. to any person or circumstance, is held invalid, the remainder of this section shall not be affected thereby, but the application of this subsection to any other persons or circumstances shall also be considered invalid. Sec. 335. substantial gainful activity in case of blind individuals Section 223(d) (4) of the Social Security Act is amended 42 USC 423. by inserting after the first sentence the following new sentence: “No individual who is blind shall be regarded as having demonstrated an ability to engage in substantial gainful activity on the basis of earnings that do not exceed the exempt amount under section 203(f) (8) which is applicable to individuals described in subparagraph (D) thereof.”. Ante, p. 1530. Sec. 336. remarriage of widows and widowers (a) (1) Section 202(e) (2) (A) of the Social Security Act (as amended by sections 204(a) and 334(c) (1) of this Act) is amended Ante, pp. 1527, 1544. by striking out “paragraphs (4) and (8)” and inserting in lieu thereof “paragraph (8)”. (2) Section 202(e) (3) of such Act is amended by striking out “In the case of a widow or surviving divorced wife who marries” in the matter preceding subparagraph (A) and inserting in lieu thereof “If a widow, before attaining age 60, or a surviving divorced wife, marries”. (3) Section 202(e) (4) of such Act is amended to read as follows: 42 USC 402. “(4) If a widow, after attaining age 60, marries, such marriage shall, for purposes of paragraph (1), be deemed not to have occurred.”. (b) (1) Section 202(f) (3) (A) of such Act (as amended by sections Ante, pp. 1528, 1546. 204(c) and 334(d) (3) of this Act) is further amended by striking out “paragraphs (2) and (5)” and inserting in lieu thereof “paragraph (2)” (2) Section 202(f) (4) of such Act is amended by striking out “In the case of a widower who remarries” in the matter preceding subparagraph (A) and inserting in lieu thereof “If a widower, before attaining age 60, remarries”. (3) Section 202(f) (5) of such Act is amended to read as follows: “(5) If a widower, after attaining age 60, marries, such marriage shall, for purposes of paragraph (1), be deemed not to have occurred.” (c) (1) The amendments made by this section shall apply only with Effective date. 42 USC 402 note. 42 USC 401. respect to monthly benefits payable under title II of the Social Security Act for months after December 1978, and, in the case of individuals who are not entitled to benefits of the type involved for December 1978, only on the basis of applications filed on or after January 1, 1979. (2) In the case of an individual who was entitled for the month of December 1978 to monthly insurance benefits under subsection (e) or Ante, pp. 1545, 1547. Ante, pp. 1528, 1546. (f) of section 202 of the Social Security Act to which the provisions of subsection (e) (4) or (f) (5) applied, the Secretary shall, if such benefits would be increased by the amendments made by this section, redetermine the amount of such benefits for months after December 1978 as if such amendments had been in effect for the first month for which the provisions of section 202(e) (4) or 202(f) (5) became applicable. (d) Where— (1) two or more persons are entitled to monthly benefits under 42 USC 402. section 202 of the Social Security Act for December 1978 on the basis of the wages and self-employment income of a deceased individual, and one or more of such persons is so entitled under subsection (e) or (f) of such section 202, and (2) one or more of such persons is entitled on the basis of such wages and self-employment income to monthly benefits under subsection (e) or (f) of such section 202 (as amended by this section) for January 1979, and (3) the total of benefits to which all persons are entitled under section 202 of such Act on the basis of such wages and self-employment income for January 1979 is reduced by reason of section Ante, p. 1524. 203(a) of such Act as amended by this Act (or would, but for the first sentence of section 203(a) (4), be so reduced), then the amount of the benefit to which each such person referred to in paragraph (1) is entitled for months after December 1978 shall in no case be less after the application of this section and such section 203(a) than the amount it would have been without the application of this section. Sec. 337. duration-of-marriage requirement (a) Section 216(d) of the Social Security Act is amended by striking out “20 years” in paragraphs (1) and (2) and inserting in lieu thereof in each instance “10 years”. (b) Section 202(b) (1) (G) of such Act is amended by striking out “20 years” and inserting in lieu thereof “l0years”. (c) The amendments made by this section shall apply with respect to monthly benefits payable under title II of the Social Security Act for months after December 1978, and, in the case of individuals who are not entitled to benefits of the type involved for December 1978, only on the basis of applications filed on or after January 1, 1979. Part D— Study With Respect to Gender-Based Distinctions Sec. 341. study of proposals to eliminate dependency and sex discrimination under the social security program (a) The Secretary of Health, Education, and Welfare, in consultation with the Task Force on Sex Discrimination in the Department of Justice, shall make a detailed study, within the Department of Health, Education, and Welfare and the Social Security Administration, of proposals to eliminate dependency as a factor in the determination of entitlement to spouse’s benefits under the program established under title II of the Social Security Act, and of proposals to bring about equal treatment for men and women in any and all respects under such program, taking into account the practi-cal effects (particularly the effect upon women’s entitlement to such benefits) of factors such as— (1) changes in the nature and extent of women’s participation in the labor force (2) the increasing divorce rate, and (3) the economic value of women’s work in the home. The study shall include appropriate cost analyses. (b) The Secretary shall submit to the Congress within six months Report to Congress. after the date of the enactment of this Act a full and complete report on the study carried out under subsection (a). Part E— Combined Social Security and Income Tax Annual Reporting Subpart 1— Amendments to Title II of the Social Security Act Sec. 351. annual crediting of quarters of coverage (a) (1) Sections 209(g) (3), 209(j), 210(a) (17) (A), and 210(f) (4) (B) of the Social Security Act are each amended by striking 42 USC 409, 410. out “quarter” wherever it appears and inserting in lieu thereof “year”. (2) Sections 209(g) (3) and 209(j) of such Act are each further amended by striking out “$50” and inserting in lieu thereof “$100”. (3) (A) Section 209 of such Act is amended by striking out “or” at the end of subsection (n), by striking out the period at the end of subsection (o) and inserting in lieu thereof “; or”, and by inserting after subsection (o) the following new subsection: “(p) Remuneration paid by an organization exempt from income tax under section 501 of the Internal Revenue Code of 1954 in any 26 USC 501. calendar year to an employee for service rendered in the employ of such organization, if the remuneration paid in such year by the organization to the employee for such service is less than $100.”. (B) Section 210(a) (10) of such Act is amended by striking out “(10) (A)” and all that follows down through “(B) Service” and inserting in lieu thereof “(10) Service”, and by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively. (b) Section 212 of such Act is amended to read as follows: 42 USC 412. “Sec. 212. “crediting of self-employment income to calendar years (a) For the purposes of determining average monthly wage and quarters of coverage the amount of self-employment income derived during any taxable year which begins before 1978 shall— “(1) in the case of a taxable year which is a calendar year, be credited equally to each quarter of such calendar year; and “(2) in the case of any other taxable year, be credited equally to the calendar quarter in which such taxable year ends and to each of the next three or fewer preceding quarters any part of which is in such taxable year. “(b) For the purposes of determining average indexed monthly earnings, average monthly wage, and quarters of coverage the amount of self-employment income derived during any taxable year which begins after 1977 shall— “(1) in the case of a taxable year which is a calendar year or which begins with or during a calendar year and ends with or during such year, be credited to such calendar year; and “(2) in the case of any other taxable year, be allocated proportionately to the two calendar years, portions of which are included within such taxable year, on the basis of the number of months in each such calendar year which are included completely within the taxable year. For purposes of clause (2), the calendar month in which a taxable year ends shall be treated as included completely within that taxable year.”. (c) Section 213(a) (2) of such Act is amended to read as follows: “(2) (A) The term ‘quarters of coverage’ means— “(i) for calendar years before 1978 and subject to the provisions of subparagraph (B), a quarter in which an individual has been paid $50 or more in wages (except wages for agricultural labor paid after 1954) or for which he has been credited (as Ante, p. 1549. determined under section 212) with $100 or more of self-employment income; and “(ii) for calendar years after 1977, and subject to the provisions of subparagraph (B), each portion of the total of the wages paid and the self-employment income credited (pursuant to section 212) to an individual in a calendar year which equals $250, with such quarter of coverage being assigned to a specific calendar quarter in such calendar year only if necessary in the case of any individual who has attained age 62 or died or is under a disability and the requirements for insured status in subsection 42 USC 414. (a) or (b) of section 214, the requirements for entitlement to a computation or recomputation of his primary insurance amount, 42 USC 416. or the requirements of paragraph (3) of section 216(i) would not otherwise be met. “(B) Notwithstanding the provisions of subparagraph (A)— “(i) no quarter after the quarter in which an individual dies shall be a quarter of coverage, and no quarter any part of which is included in a period of disability (other than the initial quarter and the last quarter of such period) shall be a quarter of coverage; “(ii) if the wages paid to an individual in any calendar year equal to $3,000 in the case of a calendar year before 1951, or $3,600 in the case of a calendar year after 1950 and before 1955, or $4,200 in the case of a calendar year after 1954 and before 1959, or $4,800 in the case of a calendar year after 1958 and before 1966, or $6,600 in the case of a calendar year after 1965 and before 1968, or $7,800 in the case of a calendar year after 1967 and before 1972, or $9,000 in the case of the calendar year 1972, or $10,800 in the case of the calendar year 1973, or $13,200 in the case of the calendar year 1974, or an amount equal to the contribution and Ante, p. 1513. Post, p. 1554. benefit base (as determined under section 230) in the case of any calendar year after 1974 and before 1978 with respect to which such contribution and benefit base is effective, each quarter of such year shall (subject to clauses (i) and (v)) be a quarter of coverage; “(iii) if an individual has self-employment income for a taxable year, and if the sum of such income and the wages paid to him during such year equals $3,600 in the case of a taxable year beginning after 1950 and ending before 1955, or $4,200 in the case of a taxable year ending after 1954 and before 1959, or $4,800 in the case of a taxable year ending after 1958 and before 1966, or $6,600 in the case of a taxable year ending after 1965 and before 1968, or $7,800 in the case of a taxable year ending after 1967 and before 1972, or $9,000 in the case of a taxable year beginning after 1971 and before 1973, or $10,800 in the case of a taxable year beginning after 1972 and before 1974, or $13,200 in the case of a taxable year beginning after 1973 and before 1975, or an amount equal to the contribution and benefit base (as determined under section 230) Ante, p. 1513. Post, p. 1554. which is effective for the calendar year in the case of any taxable year beginning in any calendar year after 1974 and before 1978, each quarter any part of which falls in such year shall (subject to clauses (i) and (v)) be a quarter of coverage; “(iv) if an individual is paid wages for agricultural labor in a calendar year after 1954 and before 1978, then, subject to clauses (i) and (v), (I) the last quarter of such year which can be but is not otherwise a quarter of coverage shall be a quarter of coverage if such wages equal or exceed $100 but are less than $200; (II) the last two quarters of such year which can be but are not otherwise quarters of coverage shall be quarters of coverage if such wages equal or exceed $200 but are less than $300; (III) the last three quarters of such year which can be but are not otherwise quarters of coverage shall be quarters of coverage if such wages equal or exceed $300 but are less than $400; and (IV) each quarter of such year which is not otherwise a quarter of coverage shall be a quarter of coverage if such wages are $100 or more; “(v) no quarter shall be counted as a quarter of coverage prior to the beginning of such quarter; “(vi) not more than one quarter of coverage may be credited to a calendar quarter; and “(vii) no more than four quarters of coverage may be credited to any calendar year after 1977. If in the case of an individual who has attained age 62 or died or is under a disability and who has been paid wages for agricultural labor in a calendar year after 1954 and before 1978, the requirements for insured status in subsection (a) or (b) of section 214, the requirements 42 USC 414. for entitlement to a computation or recomputation of his primary insurance amount, or the requirements of paragraph (3) of section 216(i) are not met after assignment of quarters of coverage to quarters in such year as provided in clause (iv) of the preceding sentence, but would be met if such quarters of coverage were assigned to different quarters in such year, then such quarters of coverage shall instead be assigned, for purposes only of determining compliance with such requirements, to such different quarters. If, in the case of an individual who did not die prior to January 1, 1955, and who attained age 62 (if a woman) or age 65 (if a man) or died before July 1, 1957, the requirements for insured status in section 214(a) (3) are not met because of his having too few quarters of coverage but would be met if his quarters of coverage in the first calendar year in which he had any covered employment had been determined on the basis of the period during which wages were earned rather than on the basis of the period during which wages were paid (any such wages paid that are reallocated on an earned basis shall not be used in determining quarters of coverage for subsequent calendar years), then upon application filed by the individual or his survivors and satisfactory proof of his record of wages earned being furnished by such individual or his survivors, the quarters of coverage in such calendar year may be determined on the basis of the periods during which wages were earned.”. (d) The amendments made, by subsection (a) shall apply with Effective dates. 42 USC 409 note. respect to remuneration paid and services rendered after December 31, 1977. The amendments made by subsections (b) and (c) shall be effective January 1, 1978. Sec. 352. adjustment in amount required for a quarter of coverage (a) Section 213(a) (2) (A) (ii) of the Social Security Act, as amended by section 351(c) of this Act, is amended by striking out “$250” and inserting in lieu thereof “the amount required for a quarter of coverage in that calendar year (as determined under subsection (d))”. (b) Section 213 of such Act is further amended by adding at the end thereof the following new subsection: “(d) “Amount Required for a Quarter of Coverage (1) The amount of wages and self-employment income which an individual must have in order to be credited with a quarter of coverage in any year under subsection (a) (2) (A) (ii) shall be $250 in the calendar year 1978 and the amount determined under paragraph (2) of this subsection for years after 1978. “(2) The Secretary shall, on or before November 1 of 1978 and of every year thereafter, determine and publish in the Federal Register the amount of wages and self-employment income which an individual must have in order to be credited with a quarter of coverage in the succeeding calendar year. The amount required for a quarter of coverage shall be the larger of— “(A) the amount in effect in the calendar year in which the determination under this subsection is made, or “(B) the product of the amount prescribed in paragraph (1) which is required for a quarter of coverage in 1978 and the ratio of the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified 42 USC 409. in section 209(a)) reported to the Secretary of the Treasury or his delegate for the calendar year before the year in which the determination under this paragraph is made to the average of the total wages (as so defined and computed) reported to the Secretary of the Treasury or his delegate for 1976 (as published in the Ante, p. 1514. Federal Register in accordance with section 215(a) (1) (D)), with such product, if not a multiple of $10, being rounded to the next higher multiple of $10 where such amount is a multiple of $5 but not of $10 and to the nearest multiple of $10 in any other case.”. (c) The amendments made by this section shall be effective January 1, 1978. Sec. 353. technical and conforming amendments (a) (1) Section 203(f) (8) (B) (i) of the Social Security 42 USC 403. Act is amended by striking out “was” wherever it appears and inserting in lieu thereof “is”. (2) Section 203(f) (8) (B) (ii) of such Act is amended to read as follows: “(ii) the product of the exempt amount described in clause (i) and the ratio of (I) the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 209(a)) reported to the Secretary of the Treasury or his delegate for the calendar year before the calendar year in which the determination under subparagraph (A) is made to (II) the average of the total wages (as so defined and computed) reported to the Secretary of the Treasury or his delegate for the calendar year before the most recent calendar year in which an increase in the exempt amount was enacted or a determination resulting in such an increase was made under subparagraph (A), with such product, if not a multiple of $10, being rounded to the next higher multiple of $10 where such product is a multiple of $5 but not of $10 and to the nearest multiple of $10 in any other case.”. (b) (1) The first sentence of section 218(c) (8) of such Act is 42 USC 418. amended by striking out “quarter” wherever it appears and inserting in lieu thereof “year”, and by striking out “$50” and inserting in lieu thereof “$100”. (2) Section 218(g) (1) of such Act is amended by striking out “quarter” and inserting in lieu thereof “year”. (3) Section 218(q) (4) (B) of such Act is amended by striking out “any calendar quarters” and inserting in lieu thereof “a calendar year” and by striking out “such calendar quarters” and inserting in lieu thereof “such calendar year”. (4) Section 218(q) (6) (B) of such Act is amended by striking out “calendar quarters designated by the State in such wage reports as the” and inserting in lieu thereof “period or periods designated by the State in such wage reports as the period or”. (5) Section 218(r) (1) of such Act is amended— (A) by striking out “quarter” in the matter before clause (A) and inserting in lieu thereof “year”, (B) by striking out “in which occurred the calendar quarter” in clause (A), and (C) by striking out “quarter” in clause (B) and inserting in lieu thereof “year”. (c) (1) Effective with respect to estimates for calendar years beginning after December 31, 1977, section 224(a) of such Act is amended Ante, p. 1529. by striking out the last sentence. (2) Section 224(f) (2) of such Act is amended to read as follows: “(2) In making the redetermination required by paragraph (1), the individual’s average current earnings (as defined in subsection (a)) shall be deemed to be the product of— “(A) his average current earnings as initially determined under subsection (a); “(B) the ratio of (i) the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 209(a)) reported to the Secretary 42 USC 409. of the Treasury or his delegate for the calendar year before the year in which such redetermination is made to (ii) the average of the total wages (as so defined and computed) reported to the Secretary of the Treasury or his delegate for calendar year 1977 or, if later, the calendar year before the year in which the reduction was first computed (but not counting any reduction made in benefits for a previous period of disability); and “(C) in any case in which the reduction was first computed before 1978, the ratio of (i) the average of the taxable wages reported to the Secretary for the first calendar quarter of 1977 to (ii) the average of the taxable wages reported to the Secretary for the first calendar quarter of the calendar year before the year in which the reduction was first computed (but not counting any reduction made in benefits for a previous period of disability). Any amount determined under this paragraph which is not a multiple of $1 shall be reduced to the next lower multiple of $1.”. (d) Section 229 (a) of such Act is amended— (1) by striking out “shall be deemed to have been paid, in each calendar quarter occurring after 1956 in which he” and inserting in lieu thereof “, if he”, and (2) by striking out “wages (in addition to the wages actually paid to him for such service) of $300.” at the end thereof and inserting in lieu thereof the following: “shall be deemed to have been paid— “(1) in each calendar quarter occurring after 1956 and before 1978 in which he was paid such wages, additional wages of $300, and “(2) in each calendar year occurring after 1977 in which he was paid such wages, additional wages of $100 for each $300 of such wages, up to a maximum of $1,200 of additional wages for any calendar year.”. (e) (1) Section 230(b) of such Act is amended by striking out the last sentence. (2) Section 230(b) (1) of such Act is amended to read as follows: “(1) the contribution and benefit base which is in effect with respect to remuneration paid in (and taxable years beginning in) the calendar year in which the determination under subsection (a) is made, and”. (3) Section 230(b) (2) of such Act is amended to read as follows: “(2) the ratio of (A) the average of the total wages (as defined in regulations of the Secretary and computed without 42 USC 409. regard to the limitations specified in section 209(a)) reported to the Secretary of the Treasury or his delegate for the calendar year before the calendar year in which the determination under subsection (a) is made to (B) the average of the total wages (as so defined and computed) reported to the Secretary of the Treasury or his delegate for the calendar year before the most recent calendar year in which an increase in the contribution and benefit base was enacted or a determination resulting in such an increase was made under subsection (a),”. (f) (1) Effective with respect to convictions after December 31, 1977, 42 USC 402. section 202(u) (1) (C) of such Act is amended by striking out “quarter” wherever it appears and inserting in lieu thereof “year”. (2) (A) 42 USC 405. Section 205(c) (1) of such Act is amended by striking out “(as defined in section 211 (e))”. (B) Section 205(c) (1) of such Act is further amended by adding at the end thereof the following new subparagraph: “(D) The term ‘period’ when used with respect to self-employment income means a taxable year and when used with respect to wages means— “(i) a quarter if wages were reported or should have been reported on a quarterly basis on tax returns filed with the Secretary of the Treasury or his delegate under section 6011 26 USC 6011. 42 USC 418. of the Internal Revenue Code of 1954 or regulations thereunder (or on reports filed by a State under section 218(e) or regulations thereunder), “(ii) a year if wages were reported or should have been reported on a yearly basis on such tax returns or reports, or “(iii) the half year beginning January 1 or July 1 in the case of wages which were reported or should have been reported for calendar year 1937.”. (C) Section 205 (o) of such Act is amended by inserting “before 42 USC 405. 1978” after “calendar year”. (g) The amendments made by subsection (b) of this section shall Effective dates. 42 USC 418 note. apply with respect to remuneration paid after December 31, 1977, except that the amendment made by subsection (b) (2) shall apply with respect to notices submitted by the States to the Secretary after the date of the enactment of this Act. The amendments made by subsections (d) and (f) (2) shall be effective January 1, 1978. Except as otherwise specifically provided, the remaining amendments made by this section shall be effective January 1, 1979. Subpart 2— Amendments to the Internal Revenue Code of 1954 Sec. 355. deduction of tax from wages (a) Section 3102(a) of the Internal Revenue Code of 1954 26 USC 3102. is amended by striking out “or (C) or (10)”, and by inserting after “is less than $50;” the following: “and an employer who in any calendar year pays to an employee cash remuneration to which paragraph (7) (C) or (10) of section 3121(a) is applicable may deduct Infra. an amount equivalent to such tax from any such payment of remuneration, even though at the time of payment the total amount of such remuneration paid to the employee by the employer in the calendar year is less than $100;”, (b) (1) Paragraphs (1) and (2) of section 3102(c) of such Code are each amended by striking out “quarter” wherever it appears and by inserting in lieu thereof “year”. (2) Paragraph (3) of section 3102(c) of such Code is amended— (A) by striking out “quarter of the” in subparagraph (A); and (B) by striking out “quarter” wherever it appears in subparagraphs (B) and (C) and inserting in lieu thereof “year”. (c) The amendments made by this section shall apply with respect Effective date. 26 USC 3102 note. to remuneration paid and to tips received after December 31, 1977. Sec. 356. technical and conforming amendments (a) Sections 3121(a) (7) (C) and 3121(a) (10) of the Internal 26 USC 3121. Revenue Code of 1954 are each amended by striking out “quarter” wherever it appears and inserting in lieu thereof “year”, and by striking out “$50” and inserting in lieu thereof “$100”. (b) Section 3121(a) 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 (15) and inserting in lieu thereof “; or”, and by adding after paragraph (15) the following new paragraph: “(16) remuneration paid by an organization exempt from income tax under section 501(a) (other than an organization 26 USC 501. 26 USC 401, 521. described in section 401 (a)) or under section 521 in any calendar year to an employee for service rendered in the employ of such organization, if the remuneration paid in such year by the organization to the employee for such service is less than $100.”. (c) Section 3121(b) (10) of such Code is amended by striking out “(10) (A)” and all that follows down through “(B) service” and inserting in lieu thereof “(10) service”, and redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively. (d) Sections 3121(b) (17) (A) and 3121(g) (4) (B) of such Code are each amended by striking out “quarter” and inserting in lieu thereof “year”. (e) The amendments made by this section shall apply with respect to remuneration paid and services rendered after December 31, 1977. Subpart 3— Conforming Amendment to the Railroad Retirement Act of 1974 Sec. 358. computation of employee annuities (a) The last sentence of section 3(f) (1) of the Railroad 45 USC 231b. Retirement Act of 1974 is amended— (1) by inserting “paid before 1978” after “in the case of wages”, and (2) by inserting “and in the case of wages paid after 1977” before the period at the end thereof. (b) The amendments made by this section shall be effective January 1, 1978. Part F— National Commission on Social Security Sec. 361. establishment of commission (a) (1) There is hereby established a commission to be known as the National Commission on Social Security (hereinafter referred to as the “Commission”). (2) (A) The Commission shall consist of— (i) five members to be appointed by the President, by and with the advice and consent of the Senate, one of whom shall, at the time of appointment, be designated as Chairman of the Commission; (ii) two members to be appointed by the Speaker of the House of Representatives; and (iii) two members to be appointed by the President pro tempore of the Senate. (B) At no time shall more than three of the members appointed by the President, one of the members appointed by the Speaker of the House of Representatives, or one of the members appointed by the President pro tempore of the Senate be members of the same political party. (C) The membership of the Commission shall consist of individuals who are of recognized standing and distinction and who possess the demonstrated capacity to discharge the duties imposed on the Commission, and shall include representatives of the private insurance industry and of recipients and potential recipients of benefits under the programs involved as well as individuals whose capacity is based on a special knowledge or expertise in those programs. No individual who is otherwise an officer or full-time employee of the United States shall serve as a member of the Commission. (D) The Chairman of the Commission shall designate a member of the Commission to act as Vice Chairman of the Commission. (E) A majority of the members of the Commission shall constitute a quorum, but a lesser number may conduct hearings. (F) Members of the Commission shall be appointed for a term of two years. (G) A vacancy in the Commission shall not affect its powers, but shall be filled in the same manner as that herein provided for the appointment of the member first appointed to the vacant position. (3) Members of the Commission shall receive $138 per diem while Compensation. engaged in the actual performance of the duties vested in the Commission. plus reimbursement for travel, subsistence, and other necessary expenses incurred in the performance, of such duties. (4) The Commission shall meet at the call of the Chairman, or at the Meetings. call of a majority of the members of the Commission; but meetings of the Commission shall be held not less frequently than once in each calendar month which begins after a majority of the authorized membership of the Commission has first been appointed. (b) (1) It shall be the duty and function of the Commission to conduct Study, investigation and review of programs. 42 USC 401. 42 USC 1395. a continuing study, investigation, and review of— (A) the Federal old-age, survivors, and disability insurance program established by title II of the Social Security Act; and (B) the health insurance programs established by title XVIII of such Act. (2) Such study, investigation, and review of such programs shall Contents. include (but not be limited to) — (A) the fiscal status of the trust funds established for the financing of such programs and the adequacy of such trust funds to meet the immediate and long-range financing needs of such programs; (B) the scope of coverage, the adequacy of benefits including the measurement of an adequate retirement income, and the conditions of qualification for benefits provided by such programs including the application of the retirement income test to unearned as well as earned income; (C) the impact of such programs on, and their relation to, public assistance programs, nongovernmental retirement and annuity programs, medical service delivery systems, and national employment practices; (D) any inequities (whether attributable to provisions of law relating to the establishment and operation of such programs, to rules and regulations promulgated in connection with the administration of such programs, or to administrative practices and procedures employed in the carrying out of such programs) which affect substantial numbers of individuals who are insured or otherwise eligible for benefits under such programs, including inequities and inequalities arising out of marital status, sex, or similar classifications or categories; (E) possible alternatives to the current Federal programs or particular aspects thereof, including but not limited to (i) a phasing out of the payroll tax with the financing of such programs being accomplished in some other manner (including general revenue funding and the retirement bond), (ii) the establishment of a system providing for mandatory participation in any or all of the Federal programs, (iii) the integration of such current Federal programs with private retirement programs, and (iv) the establishment of a system permitting covered individuals a choice of public or private programs or both; (F) the need to develop a special Consumer Price Index for the elderly, including the financial impact that such an index would have on the costs of the programs established under the Social Security Act; and 42 USC 1305. (G) methods for effectively implementing the recommendations of the Commission. (3) In order to provide an effective opportunity for the general public to participate fully in the study, investigation, and review under this section, the Commission, in conducting such study, investigation, and review, shall hold public hearings in as many different geographical areas of the country as possible. The residents of each area where such a hearing is to be held shall be given reasonable advance notice of the hearing and an adequate opportunity to appear and express their views on the matters under consideration. (c) (1) No later than four months after the date on which a majority of the authorized membership of the Commission is initially appointed, the Commission shall submit to the President and the Congress a special report describing the Commission’s plans for conducting the study, investigation, and review under subsection (b), with particular reference to the scope of such study, investigation, and review and the methods proposed to be used in conducting it. (2) At or before the close of each of the first two years after the date on which a majority of the authorized membership of the Commission is initially appointed, the Commission shall submit to the President and the Congress an annual report on the study, investigation, and review under subsection (b), together with its recommendations with respect to the programs involved. The second such report shall constitute the final report of the Commission on such study, investigation, and review, and shall include its final recommendations; and upon the submission of such final report the Commission shall cease to exist. (d) (1) The Commission shall appoint an Executive Director of the Commission who shall be compensated at a rate fixed by the Commission. but which shall not exceed the rate established for level V of the Executive Schedule by title 5, United States Code. (2) In addition to the Executive Director, the Commission shall have the power to appoint and fix the compensation of such personnel as it deems advisable, in accordance with the provisions of title 5, United States Code, governing appointments to the competitive service, and the provisions of chapter 51 and subchapter III of chapter 53 5 USC 5101 et seq., 5331. Hearings. of such title, relating to classification and General Schedule pay rates. (e) In carrying out its duties under this section, the Commission, or any duly authorized committee thereof, is authorized to hold such hearings, sit and act at such times and places, and take such testimony, with respect to matters with respect to which it has a responsibility under this section, as the, Commission or such committee may deem advisable. The Chairman of the Commission or any member authorized by him may administer oaths or affirmations to witnesses appearing before the Commission or before any committee thereof. (f) The Commission may secure directly from any department or agency of the United States such data and information as may be necessary to enable it to carry out its duties under this section. Upon request of the Chairman of the Commission, any such department or agency shall furnish any such data or information to the Commission. (g) The General Services Administration shall provide to the Commission, on a reimbursable basis such administrative support services as the Commission may request. (h) There are hereby authorized to be appropriated such sums as may be necessary to carry out this section. (i) It shall be the duty of the Health Insurance Benefits Advisory Council (established by section 1867 of the Social Security Act) to provide timely notice to the Commission of any meeting, and the Chairman of the Commission (or his delegate) shall be entitled to attend any such meeting. Part G— Miscellaneous Provisions Sec. 371. appointment of hearing examiners The persons who were appointed to serve as hearing examiners under section 1631 (d) (2) of the Social Security Act (as m effect prior to January 2, 1976), and who by section 3 of Public Law 94–202 were deemed to be appointed under section 3105 of title 5, United States Code (with such appointments terminating no later than at the close of the period ending December 31, 1978), shall be deemed appointed to career-absolute positions as hearing examiners under and in accordance with section 3105 of title 5, United States Code, with the same authority and tenure (without regard to the expiration of such period) as hearing examiners appointed directly under such section 3105, and shall receive compensation at the same rate as hearing examiners appointed by the Secretary of Health, Education, and Welfare directly under such section 3105. All of the provisions of title 5, United States Code, and the regulations promulgated pursuant 5 USC 101 et seq. thereto, which are applicable to hearing examiners appointed under such section 3105, shall apply to the persons described in the preceding sentence. Sec. 372. report of advisory council on social security Notwithstanding the provisions of section 706(d) of the Social Security Act, the report of the Advisory Council on Social 42 USC 907. Security which is due not later than January 1, 1979, may be filed at any date prior to October 1, 1979.Social Security Amendments of 1977
Pub. L. 95–216 § 352(b) · 91 Stat. 1509
Added · 42 U.S.C. § 413(d)
Pub. L. 95–216, § 352(b), added subsec. (d)
Source evidence
Code amendment note
Subsec. (d). Pub. L. 95–216, § 352(b), added subsec. (d).Enacted provision · exact public law section
(b) Section 213 of such Act is further amended by adding at the end thereof the following new subsection: “(d) “Amount Required for a Quarter of Coverage (1) The amount of wages and self-employment income which an individual must have in order to be credited with a quarter of coverage in any year under subsection (a) (2) (A) (ii) shall be $250 in the calendar year 1978 and the amount determined under paragraph (2) of this subsection for years after 1978. “(2) The Secretary shall, on or before November 1 of 1978 and of every year thereafter, determine and publish in the Federal Register the amount of wages and self-employment income which an individual must have in order to be credited with a quarter of coverage in the succeeding calendar year. The amount required for a quarter of coverage shall be the larger of— “(A) the amount in effect in the calendar year in which the determination under this subsection is made, or “(B) the product of the amount prescribed in paragraph (1) which is required for a quarter of coverage in 1978 and the ratio of the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified 42 USC 409. in section 209(a)) reported to the Secretary of the Treasury or his delegate for the calendar year before the year in which the determination under this paragraph is made to the average of the total wages (as so defined and computed) reported to the Secretary of the Treasury or his delegate for 1976 (as published in the Ante, p. 1514. Federal Register in accordance with section 215(a) (1) (D)), with such product, if not a multiple of $10, being rounded to the next higher multiple of $10 where such amount is a multiple of $5 but not of $10 and to the nearest multiple of $10 in any other case.”.Pub. L. 96–473 § 6(c) · 94 Stat. 2263
Substituted · 42 U.S.C. § 413(a)(2)(A)
Pub. L. 96–473 substituted reference to quarter of coverage, for reference to quarters of coverage
Source evidence
Code amendment note
Subsec. (a)(2)(A). Pub. L. 96–473 substituted reference to quarter of coverage, for reference to quarters of coverage.Enacted provision · exact public law section
(c) Section 213(a)(2)(A) of such Act is amended by striking out 42 USC 413. “quarters of coverage” and inserting in lieu thereof “quarter of coverage”.Spending Reduction Act of 1984
Pub. L. 98–369 § 2663(a)(9)(A) · 98 Stat. 494
Substituted · 42 U.S.C. § 413(a)(1)
Pub. L. 98–369, § 2663(a)(9)(A), substituted “mean” for “means”
Source evidence
Code amendment note
Subsec. (a)(1). Pub. L. 98–369, § 2663(a)(9)(A), substituted “mean” for “means”.Enacted provision · exact public law section
(A) Section 213(a)(1) of such Act is amended by striking out “means” and inserting in lieu thereof “mean”.Spending Reduction Act of 1984
Pub. L. 98–369 § 2663(a)(9)(B) · 98 Stat. 494
Substituted · 42 U.S.C. § 413(a)(2)(B)(ii)
Pub. L. 98–369, § 2663(a)(9)(B), substituted “equal $3,000” for “equal to $3,000”
Source evidence
Code amendment note
Subsec. (a)(2)(B)(ii). Pub. L. 98–369, § 2663(a)(9)(B), substituted “equal $3,000” for “equal to $3,000”.Enacted provision · exact public law section
(B) Section 213(a)(2)(B)(ii) of such Act is amended by striking out “equal to $3,000” and inserting in lieu thereof “equal $3,000”.Miscellaneous and Technical Social Security Act Amendments of 1989
Pub. L. 101–239 § 10208(b)(2)(A) · 103 Stat. 2106
Substituted · 42 U.S.C. § 413(d)(2)(B)
Pub. L. 101–239, § 10208(b)(2)(A), (B), substituted “the deemed average total wages (as defined in section 409(k)(1) of this title)” for “the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 409(a)(1) of this title) reported to the Secretary of the Treasury or his delegate”
Substituted · 42 U.S.C. § 413(d)(2)(B)
Pub. L. 101–239, § 10208(b)(2)(A), (B), substituted “(as defined in regulations of the Secretary and computed without regard to the limitations specified in section 409(a)(1) of this title)” for “(as so defined and computed)”
Source evidence
Code amendment note
Subsec. (d)(2)(B). Pub. L. 101–239, § 10208(b)(2)(A), (B), substituted “the deemed average total wages (as defined in section 409(k)(1) of this title)” for “the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 409(a)(1) of this title) reported to the Secretary of the Treasury or his delegate” and “(as defined in regulations of the Secretary and computed without regard to the limitations specified in section 409(a)(1) of this title)” for “(as so defined and computed)”.Enacted provision · exact public law section
(A) by striking “the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 209(a)(1)) reported to the Secretary of the Treasury or his delegate” and inserting “the deemed average total wages (as defined in section 209(k)(1))”;Miscellaneous and Technical Social Security Act Amendments of 1989
Pub. L. 101–239 § 10208(d)(2)(A)(i) · 103 Stat. 2106
Substituted · 42 U.S.C. § 413(d)(2)(B)
Pub. L. 101–239, § 10208(d)(2)(A)(i), substituted “409(a)(1)” for “409(a)”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–239, § 10208(d)(2)(A)(i), substituted “409(a)(1)” for “409(a)”.Enacted provision · exact public law section
(i) in sections 203(f)(8)(B)(ii)(I), 213(d)(2)(B), 215(a)(1)(B)(ii)(I), 215(b)(3)(A)(ii)(I), 224(f)(2)(B)(i), and 230(b)(2)(A) (42 U.S.C. 403(f)(8)(B)(ii)(I), 413(d)(2)(B), 415(a)(1)(B)(ii)(I), 415(b)(3)(A)(ii)(I), 424a(f)(2)(B)(i), and 430(b)(2)(A)), by striking “section 209(a)” and inserting “section 209(a)(1)”;Omnibus Budget Reconciliation Act of 1990
Pub. L. 101–508 title V § 5117(c)(1) · 104 Stat. 1388
Inserted · 42 U.S.C. § 413(c)
Pub. L. 101–508 inserted “and 415(d)” after “section 414(a)”
Substituted · 42 U.S.C. § 413(c)
Pub. L. 101–508 substituted “except where such individual is not a fully insured individual on the basis of the number of quarters of coverage so derived plus the number of quarters of coverage derived from the wages and self-employment income credited to such individual for periods after 1950.” for “except where—
Source evidence
Code amendment note
Subsec. (c). Pub. L. 101–508 inserted “and 415(d)” after “section 414(a)” and substituted “except where such individual is not a fully insured individual on the basis of the number of quarters of coverage so derived plus the number of quarters of coverage derived from the wages and self-employment income credited to such individual for periods after 1950.” for “except where—“(1) such individual is not a fully insured individual on the basis of the number of quarters of coverage so derived plus the number of quarters of coverage derived from the wages and self-employment income credited to him for periods after 1950, or “(2) such individual’s elapsed years (for purposes of section 414(a)(1) of this title) are less than 7.”
Enacted provision · exact public law section
(1) Applicability without regard to number of elapsed years.— Section 213(c) (42 U.S.C. 413(c)) is amended— (A) by inserting “and 215(d)” after “214(a)”; and (B) by striking “except where—” and all that follows and inserting the following: “except where such individual is not a fully insured individual on the basis of the number of quarters of coverage so derived plus the number of quarters of coverage derived from the wages and self-employment income credited to such individual for periods after 1950.”.Pub. L. 103–296 § 321(a)(15) · 108 Stat. 1464
Substituted · 42 U.S.C. § 413(c)
Pub. L. 103–296, § 321(a)(15), substituted “sections” for “section” before “414(a) and 415(d) of this title”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 103–296, § 321(a)(15), substituted “sections” for “section” before “414(a) and 415(d) of this title”.Enacted provision · exact public law section
(15) Section 213(c) of such Act (42 U.S.C. 413(c)) is amended by striking “section” the first place it appears and inserting “sections”Effective date note
Amendment by section 107(a)(4) of Pub. L. 103–296 effective Mar. 31, 1995, see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of this title.Pub. L. 103–296 § 107(a)(4) · 108 Stat. 1464
Substituted · 42 U.S.C. § 413(d)(2)
Pub. L. 103–296, § 107(a)(4), substituted “Commissioner of Social Security” for “Secretary” in introductory provisions
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 103–296, § 107(a)(4), substituted “Commissioner of Social Security” for “Secretary” in introductory provisions.Enacted provision · exact public law section
(4) by striking, wherever it appears, each of the following words (but, in the case of any such word only if such word refers to the Secretary of Health and Human Services): “Secretary”, “Secretary’s”, “his”, “him”, “he”, “her”, and “she”, and inserting (in the case of the word “Secretary”) “Commissioner of Social Security”, (in the case of the word “Secretary’s”) “Commissioner’s”, (in the case of the word “his”) “the Commissioner’s”, (in the case of the word “him”) “the Commissioner”, (in the case of the word “her”) “the Commissioner” or “the Commissioner’s”, as may be appropriate, and (in the case of the words “she” or “he”) the Commissioner”,Effective date note
Amendment by section 107(a)(4) of Pub. L. 103–296 effective Mar. 31, 1995, see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of this title.Pub. L. 103–296 § 321(e)(2)(A) · 108 Stat. 1464
Substituted · 42 U.S.C. § 413(d)(2)(B)
Pub. L. 103–296, § 321(e)(2)(A), substituted “national average wage index” for “deemed average total wages”
Substituted · 42 U.S.C. § 413(d)(2)(B)
Pub. L. 103–296, § 321(e)(2)(A), substituted “the national average wage index (as so defined) for 1976,” for “the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 409(a)(1) of this title) reported to the Secretary of the Treasury or his delegate for 1976 (as published in the Federal Register in accordance with section 415(a)(1)(D) of this title),”
Source evidence
Code amendment note
Subsec. (d)(2)(B). Pub. L. 103–296, § 321(e)(2)(A), substituted “national average wage index” for “deemed average total wages” before “(as defined in” and “the national average wage index (as so defined) for 1976,” for “the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 409(a)(1) of this title) reported to the Secretary of the Treasury or his delegate for 1976 (as published in the Federal Register in accordance with section 415(a)(1)(D) of this title),”.Enacted provision · exact public law section
(A) Section 213(d)(2)(B) of such Act (42 U.S.C. 413(d)(2)(B)) is amended by striking “deemed average total wages” and inserting “national average wage index”, and by striking “the average of the total wages” and all that follows and inserting “the national average wage index (as so defined) for 1976,”.Effective date note
Amendment by section 107(a)(4) of Pub. L. 103–296 effective Mar. 31, 1995, see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of this title.
29 of 38 references resolved to an enrolled provision · 2 partial · 7 unresolved
Editorial Notes
Amendments1952–1994 · 17 rounds
1994
Subsec. (c). Pub. L. 103–296, § 321(a)(15), substituted “sections” for “section” before “414(a) and 415(d) of this title”.
Subsec. (d)(2). Pub. L. 103–296, § 107(a)(4), substituted “Commissioner of Social Security” for “Secretary” in introductory provisions.
Subsec. (d)(2)(B). Pub. L. 103–296, § 321(e)(2)(A), substituted “national average wage index” for “deemed average total wages” before “(as defined in” and “the national average wage index (as so defined) for 1976,” for “the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 409(a)(1) of this title) reported to the Secretary of the Treasury or his delegate for 1976 (as published in the Federal Register in accordance with section 415(a)(1)(D) of this title),”.
1990
Subsec. (c). Pub. L. 101–508 inserted “and 415(d)” after “section 414(a)” and substituted “except where such individual is not a fully insured individual on the basis of the number of quarters of coverage so derived plus the number of quarters of coverage derived from the wages and self-employment income credited to such individual for periods after 1950.” for “except where—
“(1) such individual is not a fully insured individual on the basis of the number of quarters of coverage so derived plus the number of quarters of coverage derived from the wages and self-employment income credited to him for periods after 1950, or
“(2) such individual’s elapsed years (for purposes of section 414(a)(1) of this title) are less than 7.”
1989
Subsec. (d)(2)(B). Pub. L. 101–239, § 10208(b)(2)(A), (B), substituted “the deemed average total wages (as defined in section 409(k)(1) of this title)” for “the average of the total wages (as defined in regulations of the Secretary and computed without regard to the limitations specified in section 409(a)(1) of this title) reported to the Secretary of the Treasury or his delegate” and “(as defined in regulations of the Secretary and computed without regard to the limitations specified in section 409(a)(1) of this title)” for “(as so defined and computed)”.
Pub. L. 101–239, § 10208(d)(2)(A)(i), substituted “409(a)(1)” for “409(a)”.
1984
Subsec. (a)(1). Pub. L. 98–369, § 2663(a)(9)(A), substituted “mean” for “means”.
Subsec. (a)(2)(B)(ii). Pub. L. 98–369, § 2663(a)(9)(B), substituted “equal $3,000” for “equal to $3,000”.
1980
Subsec. (a)(2)(A). Pub. L. 96–473 substituted reference to quarter of coverage, for reference to quarters of coverage.
1977
Subsec. (a)(2). Pub. L. 95–216, §§ 351(c), 352(a), substituted provisions relating to factors respecting definition of “quarters of coverage” for calendar years before 1978, subject to the provisions of subpar. (B) of this par., and for calendar years after 1977, subject to the provisions of subpar. (B) of this par., for provisions relating to factors respecting definition of “quarter of coverage” as a quarter in which the individual has been paid $50 or more in wages (except wages for agricultural labor paid after 1954) or for which he has been credited (as determined under section 412 of this title) with $100 or more of self-employment income.
Subsec. (d). Pub. L. 95–216, § 352(b), added subsec. (d).
1973
Subsec. (a)(2)(ii), (iii). Pub. L. 93–233 substituted “$13,200” for “$12,600”.
Pub. L. 93–66 substituted “$12,600” for “$12,000”, in cls. (ii) and (iii).
1972
Subsec. (a)(2)(ii). Pub. L. 92–336, § 203(a)(3)(A), inserted provisions for determining a quarter of coverage based on amounts earned as wages after 1971 and before 1975, and amounts equal to the contribution and benefit base in the case of any calendar year after 1974 with respect to which such contribution and benefit base is effective.
Subsec. (a)(2)(iii). Pub. L. 92–336, § 203(a)(3)(B), inserted provisions for determining a quarter of coverage based on amounts earned as wages after 1971 and before 1975, and amounts equal to the contribution and benefit base which is effective for the calendar year in the case of any taxable year beginning in any calendar year after 1974.
1971
Subsec. (a)(2)(ii). Pub. L. 92–5, § 203(a)(3)(A), substituted “after 1967 and before 1972, or $9,000 in the case of a calendar year after 1971” for “after 1967”.
Subsec. (a)(2)(iii). Pub. L. 92–5, § 203(a)(3)(B), substituted “after 1967 and beginning before 1972, or $9,000 in the case of a taxable year beginning after 1971” for “after 1967”.
1968
Subsec. (a)(2)(ii). Pub. L. 90–248, § 108(a)(3)(A), inserted “and before 1968, or $7,800 in the case of a calendar year after 1967” after “1965”.
Subsec. (a)(2)(iii). Pub. L. 90–248, § 108(a)(3)(B), inserted “and before 1968, or $7,800 in the case of a taxable year ending after 1967” after “1965”.
Subsec. (c). Pub. L. 90–248, § 155(b)(1), added subsec. (c).
1965
Subsec. (a)(2)(ii). Pub. L. 89–97, § 320(a)(3)(A), substituted “after 1958 and before 1966, or $6,600 in the case of a calendar year after 1965” for “after 1958”.
Subsec. (a)(2)(iii). Pub. L. 89–97, § 320(a)(3)(B), substituted “after 1958 and before 1966, or $6,600 in the case of a taxable year ending after 1965” for “after 1958”.
1961
Subsec. (a). Pub. L. 87–64 substituted “has attained age 62” for “has attained retirement age”, and “who attained age 62 (if a woman) or age 65 (if a man)” for “who attained retirement age”.
1960
Subsec. (a)(2). Pub. L. 86–778 required each quarter of a calendar year before 1951 to be counted as a quarter of coverage if the individual received wages equal to $3,000 in the calendar year.
Pub. L. 86–442 inserted sentence in cl. (B) to permit the quarters of coverage in a calendar year to be determined on the basis of the periods during which wages were earned in the case of individuals who did not die prior to , and who attained retirement age or died before , who did not meet the requirements for insured status because of having too few quarters of coverage but who would meet the requirements if the quarters of coverage in the first calendar year in which they had any covered employment had been determined on the basis of the period during which wages were earned rather than on the basis of the period during which wages were paid.
1958
Subsec. (a)(2)(B). Pub. L. 85–840 inserted “and before 1959, or $4,800 in the case of a calendar year after 1958” after “after 1954” in cl. (ii), and “and before 1959, or $4,800 in the case of a taxable year ending after 1958” after “after 1954” in cl. (iii).
1956
Subsec. (a)(2)(B)(iv). Act , substituted “if such wages equal or exceed $100 but are less than $200” for “if such wages are less than $200”.
1954
Subsec. (a)(2)(A). Act , § 106(a)(1), redefined “quarter of coverage,” in the case of quarters occurring before 1951, to exclude any quarter any part of which was included in a period of disability, other than the initial quarter of such period, and which provided that any quarter any part of which was included in a period of disability, other than the first quarter of such period, could not be counted as a quarter of coverage in a calendar year in which wages of $3,000 or more were paid.
Subsec. (a)(2)(B). Act , § 104(c), provided that for calendar years after 1954 an individual shall be credited with a quarter of coverage for each quarter of the year if his wages for the year equal $4,200 and he shall be credited with a quarter of coverage for each quarter of a taxable year ending after 1954 in which the sum of his wages and self-employment income equal $4,200.
Act , § 108(b), provided for crediting quarters of coverage on basis of annual amounts of wages received for agricultural labor.
Subsec. (a)(2)(B)(i). Act , § 106(a)(2), redefined “quarter of coverage”, for quarters occurring after 1950, to exclude any quarter any part of which was included in a period of disability, other than the first and last quarters of such period.
1952
Subsec. (a)(2)(A). Act , § 3(a)(1), redefined “quarter of coverage”.
Subsec. (a)(2)(B)(i). Act , § 3(a)(2), inserted “and no quarter any part of which was included in a period of disability (other than the initial quarter and the last quarter of such period) shall be a quarter of coverage”.
Subsec. (a)(2)(B)(iii). Act , § 3(a)(3), substituted “shall (subject to clause (i) of this subparagraph) be a quarter of coverage” for “shall be a quarter of coverage”.
Statutory Notes and Related Subsidiaries
Effective Date of 1994 Amendment
Amendment by section 107(a)(4) of Pub. L. 103–296 effective , see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of this title.
Effective Date of 1990 Amendment
Pub. L. 101–508, title V, § 5117(c)(3), , 104 Stat. 1388–278, provided that:
“The amendments made by this subsection [amending this section and provisions set out as a note below] shall apply only with respect to individuals who—
“(A) make application for benefits under section 202 of the Social Security Act [42 U.S.C. 402] after the 18-month period following the month in which this Act is enacted [November 1990], and
“(B) are not entitled to benefits under section 227 or 228 of such Act [42 U.S.C. 427, 428] for the month in which such application is made.”
Effective Date of 1989 Amendment
Amendment by section 10208(b)(2)(A), (B) of Pub. L. 101–239 applicable with respect to computation of average total wage amounts (under amended provisions) for calendar years after 1990, see section 10208(c) of Pub. L. 101–239, set out as a note under section 430 of this title.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–369 effective , but not to be construed as changing or affecting any right, liability, status, or interpretation which existed (under the provisions of law involved) before that date, see section 2664(b) of Pub. L. 98–369, set out as a note under section 401 of this title.
Effective Date of 1977 Amendment
Amendment by section 351(c) of Pub. L. 95–216 effective , see section 351(d) of Pub. L. 95–216, set out as a note under section 409 of this title.
Pub. L. 95–216, title III, § 352(c), , 91 Stat. 1552, provided that: “The amendments made by this section [amending this section] shall be effective .”
Effective Date of 1973 Amendment
Amendment by Pub. L. 93–233 applicable only with respect to remuneration paid after, and taxable years beginning after, 1973, see section 5(e) of Pub. L. 93–233, set out as a note under section 409 of this title.
Amendment by Pub. L. 93–66 applicable only with respect to remuneration paid after, and taxable years beginning after, 1973, see section 203(e) of Pub. L. 93–66, set out as a note under section 409 of this title.
Effective Date of 1972 Amendment
Amendment by section 203(a)(3)(A) of Pub. L. 92–336 applicable only with respect to remuneration paid after December 1972, and amendment by section 203(a)(3)(B) of Pub. L. 92–336 applicable only with respect to taxable years beginning after 1972, see section 203(c) of Pub. L. 92–336, set out as a note under section 409 of this title.
Effective Date of 1971 Amendment
Amendment by section 203(a)(3)(A) of Pub. L. 92–5 applicable only with respect to remuneration paid after December 1971, and amendment by section 203(a)(3)(B) of Pub. L. 92–5 applicable only with respect to taxable years beginning after 1971, see section 203(c) of Pub. L. 92–5, set out as a note under section 409 of this title.
Effective Date of 1968 Amendment
Amendment by section 108(a)(3)(A) of Pub. L. 90–248 applicable only with respect to remuneration paid after December 1967, and amendment by section 108(a)(3)(B) applicable only with respect to taxable years ending after 1967, see section 108(c) of Pub. L. 90–248, set out as a note under section 409 of this title.
Pub. L. 90–248, title I, § 155(b)(2), , 81 Stat. 866, as amended by Pub. L. 101–508, title V, § 5117(c)(2), , 104 Stat. 1388–278, provided that: “The amendment made by paragraph (1) [amending this section] shall apply only in the case of an individual who applies for benefits under section 202(a) of the Social Security Act [42 U.S.C. 402(a)] after the date of the enactment of this Act [], or who dies without being entitled to benefits under section 202(a) or 223 of the Social Security Act [42 U.S.C. 402(a), 423].”
Effective Date of 1965 Amendment
Amendment by section 320(a)(3)(A) of Pub. L. 89–97 applicable with respect to remuneration paid after December, 1965, and amendment by section 320(a)(3)(B) of Pub. L. 89–97 applicable with respect to taxable years ending after 1965, see section 320(c) of Pub. L. 89–97, set out as a note under section 3121 of Title 26, Internal Revenue Code.
Effective Date of 1961 Amendment
Amendment by Pub. L. 87–64 applicable with respect to monthly benefits for months beginning on or after based on applications filed in or after March 1961, and with respect to lump-sum death payments under title II of the Social Security Act (42 U.S.C. 401 et seq.) in the case of deaths on or after , see sections 102(f) and 109 of Pub. L. 87–64, set out as notes under section 402 of this title.
Effective Date of 1960 Amendment
Pub. L. 86–778, title II, § 206(b), , 74 Stat. 949, provided that:
“(1) Except as provided in paragraph (2), the amendment made by subsection (a) [amending this section] shall apply only in the case of monthly benefits under title II of the Social Security Act [42 U.S.C. 401 et seq.], and the lump-sum death payment under section 202 of such Act [42 U.S.C. 402], based on the wages and self-employment income of an individual—
“(A) who becomes entitled to benefits under section 202(a) or 223 of such Act [42 U.S.C. 402(a), 423] on the basis of an application filed in or after the month in which this Act is enacted [September 1960]; or
“(B) who is (or would, but for the provisions of section 215(f)(6) of the Social Security Act [42 U.S.C. 415(f)(6)], be) entitled to a recomputation of his primary insurance amount under section 215(f)(2)(A) of such Act on the basis of an application filed in or after the month in which this Act is enacted [September 1960]; or
“(C) who dies without becoming entitled to benefits under section 202(a) or 223 of the Social Security Act [42 U.S.C. 402(a), 423], and (unless he dies a currently insured individual but not a fully insured individual (as those terms are defined in section 214 of such Act [42 U.S.C. 414])) without leaving any individual entitled (on the basis of his wages and self-employment income) to survivor’s benefits or a lump-sum death payment under section 202 of such Act [42 U.S.C. 402] on the basis of an application filed prior to the month in which this Act is enacted [September 1960]; or
“(D) who dies in or after the month in which this Act is enacted [September 1960] and whose survivors are (or would, but for the provisions of section 215(f)(6) of the Social Security Act [42 U.S.C. 415(f)(6)], be) entitled to a recomputation of his primary insurance amount under section 215(f)(4)(A) of such Act; or
“(E) who dies prior to the month in which this Act is enacted [September 1960] and (i) whose survivors are (or would, but for the provisions of section 215(f)(6) of the Social Security Act, be) entitled to a recomputation of his primary insurance amount under section 215(f)(4)(A) of such Act [42 U.S.C. 415(f)(4)(A)], and (ii) on the basis of whose wages and self-employment income no individual was entitled to survivor’s benefits or a lump-sum death payment under section 202 of such Act [42 U.S.C. 402] on the basis of an application filed prior to the month in which this Act is enacted [September 1960] (and no individual was entitled to such a benefit, without the filing of an application, for any month prior to the month in which this Act is enacted [September 1960]); or
“(F) who files an application for a recomputation under section 102(f)(2)(B) of the Social Security Amendments of 1954 [set out as a note under section 415 of this title] in or after the month in which this Act is enacted [September 1960] and is (or would, but for the fact that such recomputation would not result in a higher primary insurance amount, be) entitled to have his primary insurance amount recomputed under such subparagraph; or
“(G) who dies and whose survivors are (or would, but for the fact that such recomputation would not result in a higher primary insurance amount for such individual, be) entitled, on the basis of an application filed in or after the month in which this Act [September 1960] is enacted, to have his primary insurance amount recomputed under section 102(f)(2)(B) of the Social Security Amendments of 1954 [set out as a note under section 415 of this title].
“(2) The amendment made by subsection (a) [amending this section] shall also be applicable in the case of applications for disability determination under section 216(i) of the Social Security Act [42 U.S.C. 416(i)] filed in or after the month in which this Act is enacted [September 1960].
“(3) Notwithstanding any other provisions of this subsection, in the case of any individual who would not be a fully insured individual under section 214(a) of the Social Security Act [42 U.S.C. 414(a)] except for the enactment of this section, no benefits shall be payable on the basis of his wages and self-employment income for any month prior to the month in which this Act is enacted [September 1960].”
Pub. L. 86–442, § 3, , 74 Stat. 82, provided in part that: “This amendment [amending this section] shall be applicable in the case of monthly benefits under title II of the Social Security Act [42 U.S.C. 401 et seq.] for months after June 1957, and in the case of the lump-sum death payments under such title, with respect to deaths occurring after such month; the requirements for filing applications for such benefits and payments within certain time limits, as prescribed in sections 202(i) and 202(j) of such title [42 U.S.C. 402(i), (j)], shall not apply if an application is filed within the one-year period beginning with the first day of the month after the month in which this Act is enacted [April 1960].”
Effective Date of 1954 Amendment
Act Sept. 1, 1954, ch. 1206, title I, § 106(h), 68 Stat. 1083, provided that: “Notwithstanding the provisions of section 215(f)(1) of the Social Security Act [42 U.S.C. 415(f)(1)], the amendments made by subsections (a), (b), (c), (d), (e), and (f) of this section [amending this section and sections 414 to 417 of this title and section 228e of Title 45, Railroads] shall apply with respect to monthly benefits under title II of the Social Security Act [42 U.S.C. 401 et seq.] for months after June 1955, and with respect to lump-sum death payments under such title in the case of deaths occurring after June 1955; but no recomputation of benefits by reason of such amendments shall be regarded as a recomputation for purposes of section 215(f) of the Social Security Act [42 U.S.C. 415(f)].”
Effective and Termination Date of 1952 Amendment
Act July 18, 1952, ch. 945, § 3(f), 66 Stat. 773, provided that: “Notwithstanding the provisions of section 215(f)(1) of the Social Security Act [42 U.S.C. 415(f)(1)], the amendments made by subsections (a), (b), (c), and (d) of this section [amending this section and sections 414 to 416, 420, and 421 of this title] shall apply to monthly benefits under title II of the Social Security Act [42 U.S.C. 401 et seq.] for months after June 1953, and to lump-sum death payments under such title in the case of deaths occurring after June 1953; but no recomputation of benefits by reason of such amendments shall be regarded as a recomputation for purposes of section 215(f) of the Social Security Act [42 U.S.C. 415(f)].”
Act July 18, 1952, ch. 945, § 3(g), 66 Stat. 773, provided that: “Notwithstanding the preceding provisions of this section and the amendments made thereby [amending this section and sections 414 to 416, 420, and 421 of this title], such provisions and amendments shall cease to be in effect at the close of , 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 Act had not been enacted.”
Credits
1935–1994 · 20 acts
- 1935Aug. 14, 1935, ch. 531, title II, § 213, as added Aug. 28, 1950, ch. 809, title I, § 104(a), 64 Stat. 492, 504
- 1952amended July 18, 1952, ch. 945, §§ 3(a), 66 Stat. 770
- 1954Sept. 1, 1954, ch. 1206, title I, §§ 104(c), 106(a), 108(b), 68 Stat. 1078, 1084
- 1956Aug. 1, 1956, ch. 836, title I, § 105(c), 70 Stat. 828
- 1958Pub. L. 85–840, title I, § 102(c), , 72 Stat. 1019
- 1960Pub. L. 86–442, § 3, , 74 Stat. 82
- 1960Pub. L. 86–778, title II, § 206(a), , 74 Stat. 949
- 1961Pub. L. 87–64, title I, § 102(c)(2)(A), (3)(B), , 75 Stat. 134, 135
- 1965Pub. L. 89–97, title III, § 320(a)(3), , 79 Stat. 393
- 1968Pub. L. 90–248, title I, §§ 108(a)(3), 155(b)(1), , 81 Stat. 834, 865
- 1971Pub. L. 92–5, title II, § 203(a)(3), , 85 Stat. 10
- 1972Pub. L. 92–336, title II, § 203(a)(3), , 86 Stat. 418
- 1973Pub. L. 93–66, title II, § 203(a)(3), , 87 Stat. 153
- 1973Pub. L. 93–233, § 5(a)(3), , 87 Stat. 953
- 1977Pub. L. 95–216, title III, §§ 351(c), 352(a), (b), , 91 Stat. 1550, 1552
- 1980Pub. L. 96–473, § 6(c), , 94 Stat. 2265
- 1984Pub. L. 98–369, div. B, title VI, § 2663(a)(9), , 98 Stat. 1164
- 1989Pub. L. 101–239, title X, § 10208(b)(2)(A), (B), (d)(2)(A)(i), , 103 Stat. 2477, 2478, 2480
- 1990Pub. L. 101–508, title V, § 5117(c)(1), , 104 Stat. 1388–278
- 1994Pub. L. 103–296, title I, § 107(a)(4), title III, § 321(a)(15), (e)(2)(A), , 108 Stat. 1478, 1536, 1539.
Show as published
(Aug. 14, 1935, ch. 531, title II, § 213, as added Aug. 28, 1950, ch. 809, title I, § 104(a), 64 Stat. 492, 504; amended July 18, 1952, ch. 945, §§ 3(a), 66 Stat. 770; Sept. 1, 1954, ch. 1206, title I, §§ 104(c), 106(a), 108(b), 68 Stat. 1078, 1084; Aug. 1, 1956, ch. 836, title I, § 105(c), 70 Stat. 828; Pub. L. 85–840, title I, § 102(c), , 72 Stat. 1019; Pub. L. 86–442, § 3, , 74 Stat. 82; Pub. L. 86–778, title II, § 206(a), , 74 Stat. 949; Pub. L. 87–64, title I, § 102(c)(2)(A), (3)(B), , 75 Stat. 134, 135; Pub. L. 89–97, title III, § 320(a)(3), , 79 Stat. 393; Pub. L. 90–248, title I, §§ 108(a)(3), 155(b)(1), , 81 Stat. 834, 865; Pub. L. 92–5, title II, § 203(a)(3), , 85 Stat. 10; Pub. L. 92–336, title II, § 203(a)(3), , 86 Stat. 418; Pub. L. 93–66, title II, § 203(a)(3), , 87 Stat. 153; Pub. L. 93–233, § 5(a)(3), , 87 Stat. 953; Pub. L. 95–216, title III, §§ 351(c), 352(a), (b), , 91 Stat. 1550, 1552; Pub. L. 96–473, § 6(c), , 94 Stat. 2265; Pub. L. 98–369, div. B, title VI, § 2663(a)(9), , 98 Stat. 1164; Pub. L. 101–239, title X, § 10208(b)(2)(A), (B), (d)(2)(A)(i), , 103 Stat. 2477, 2478, 2480; Pub. L. 101–508, title V, § 5117(c)(1), , 104 Stat. 1388–278; Pub. L. 103–296, title I, § 107(a)(4), title III, § 321(a)(15), (e)(2)(A), , 108 Stat. 1478, 1536, 1539.)