[S. 3725, 86th Cong., 2d sess.]

A BILL To amend title II of the Social and Security Act and the Internal Revenue Code so as to increase the minimum insurance benefits payable under such title, to increase the amount of earnings upon which such benefits are based, to increase the amount of such benefits payable to widows, widowers, and parents, to increase the amount of earnings permitted without loss of benefits, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Social Security Amendments of 1960".

TITLE I-AMENDMENTS TO TITLE II OF THE SOCIAL SECURITY ACT

INCREASE IN MINIMUM BENEFTS

SEC. 101. (a) The table in section 215 (a) of the Social Security Act is amended by striking out all the figures in columns I, II, III, IV, and V down to, and including, the line which reads

"13.01 13.48 36.10 37.00 66 67 40 and inserting in lieu thereof the following:

60.00"

67 40 $60.00".

(b) The amendments made by subsection (a) shall be applicable only in the case of monthly benefits under title II of the Social Security Act for months after the month following the month in which this Act is enacted, and in the case of lump-sum death payments under such title with respect to deaths occurring after the month following the month in which this Act is enacted.

INCREASE IN EARNINGS BASE

SEC. 102. (a) (1) Section 209(a)(3) of the Social Security Act is amended' by inserting "and prior to 1961" after "1958".

(2) Section 209 (a) of such Act is further amended by adding at the end thereof the following new paragraph:

"(4) That part of remuneration which, after remuneration (other than remuneration referred to in the succeeding subsections of this section) equal to $6,000 with respect to employment has been paid to an individual during any calendar year after 1960, is paid to such individual during such calendar year;".

(b) (1) Section 211(b) (1) (C) of such Act is amended by inserting "and prior to 1961" after "1958", and by striking out "; or" and inserting in lieu thereof “; and".

(2) Section 211(b) (1) of such Act is further amended by adding at the end thereof the following new subparagraph:

(D) For any taxable year ending after 1960, (i) $6,000 minus (ii) the amount of the wages paid to such individual during the taxable year; or". (c) (1) Section 213(a) (2) (B) (ii) of such Act is amended by striking out "after 1958" and inserting in lieu therof "after 1958 and before 1961, or $6,000in the case of a calendar year ending after 1960".

(2) Section 213 (a) (2) (B) (iii) of such Act is amended by striking out "after 1958" and inserting in lieu thereof "after 1958 and before 1961, or $6,000 in the case of a taxable year ending after 1960".

(d) The table in section 215(a) of such Act is amended by striking out all the figures in columns II, III, IV, and V beginning with, and following, the line which reads

(e) Section 215(e)(1) of such Act is amended by striking out "after 1958" and inserting in lieu thereof "after 1958 and before 1961, and the excess over $6,000 in the case of any calendar year after 1960".

(f) The amendments made by subsections (a) and (c) (1) shall apply only with respect to remuneration paid after 1960. The amendments made by subsections (b) and (c) (2) shall apply only with respect to taxable years beginning after 1960. The amendment made by subsection (d) shall apply only with respect to monthly insurance benefits under title II of the Social Security Act for months after the month following the month in which this Act is enacted, and lump-sum death payments under such title in the case of deaths occurring after the month following the month in which this Act is enacted.

INCREASE IN WIDOW'S, WIDOWER'S, AND PARENT'S INSURANCE BENEFITS

SEC. 103. (a) Paragraph (2) of subsection (e) of section 202 of such Act is amended to read as follows:

"(2) Such widow's insurance benefit for each month shall be equal to 85 per centum of the primary insurance amount of her deceased husband."

(b) Paragraph (3) of subsection (f) of such section is amended to read as follows:

"(3) Such widower's insurance benefit for each month shall be equal to 85 per centum of the primary insurance amount of his deceased wife."

(c) Paragraph (2) of subsection (h) of such section is amended to read as follows:

"(2) (A) Except as provided in subparagraph (B), such parent's insurance benefit for each month shall be equal to 85 per centum of the primary insurance amount of such deceased individual.

"(B) For any month for which more than one parent is entitled to parent's insurance benefits on the basis of such deceased individual's wages and selfemployment income, such benefit for each such parent for such month shall be equal to 75 per centum of the primary insurance amount of such deceased individual.

"(C) In any case in which (i) any parent is entitled to a parent's insurance benefit for a month on the basis of a deceased individual's wages and self-employment income and (ii) another parent of such deceased individual becomes entitled to a parent's insurance benefit for such month on the basis of such wages and self-employment income and on the basis of an application filed after such month and after the month in which the application of the parent referred to in clause (i) was filed, the amount of the parent's insurance benefit of the parent referred to in clause (i) for the month referred to in such clause shall be 85 per centum of the primary insurance amount of such deceased individual and the amount of the parent's insurance benefit of the parent referred to in clause (ii) for such month shall be 65 per centum of such primary insurance amount."

(d) The amendment made by this section shall apply with respect to monthly benefits payable under section 202 of the Social Security Act for months after the month following the month in which this Act is enacted.

SEC. 104. Where-

SAVINGS PROVISIONS

(1) one or more persons were entitled (without the application of section 202 (j) (1) of the Social Security Act) to monthly benefits under section 202 of such Act for the month after the month in which this Act is enacted on the basis of the wages and self-employment income of a deceased individual; and

(2) one or more persons are entitled to benefits under section 202 (e), (f), or (h) of the Social Security Act for any subsequent month on the basis of such individual's wages and self-employment income; and

(3) no person, other than those persons referred to in paragraph (1) of this section, is entitled to benefits under such section 202 on the basis of such individual's wages and self-employment income for such subsequent month or for any month after the month following the month in which this Act is enacted and prior to such subsequent month; and

(4) the total of the benefits to which all persons are entitled under section 202 of the Social Security Act on the basis of such individual's wages and self-employment income for such subsequent month would, but for this section, be reduced by reason of the application of section 203 (a) of such Act, as amended by this Act;

then the amount of the benefit to which each such person referred to in paragraph (1) of this section is entitled for such subsequent month shall be determined

(5) in case such person is entitled to benefits under subsection (d) or (g) of such section 202, as though this Act had not been enacted; or

(6) in case such person is entitled to benefits under subsection (e), (f), or (h) of such section 202, without regard to any provision of this Act other than section 103;

except that the provisions of this section shall not apply with respect to any such person if the amount of the benefit to which he is entitled is larger, after the application of section 203(a), as amended by this Act, without the application of this section.

MAXIMUM FAMILY BENEFITS IN CERTAIN CASES

SEC. 105. (a) Section 203(a)(3) of the Social Security Act is amended(1) by striking out "and is not less than $68, then such total of benefits shall not be reduced to less than the smaller of" and inserting in lieu thereof ", then such total of benefits shall not be reduced to less than $99.10 if such primary insurance amount is $66, to less than $102.40 if such primary insurance amount is $67, to less than $106.50 if such primary insurance amount is $68, or, if such primary insurance amount is higher than $68, to less than the smaller of"; and

(2) by striking out "the last figure in column V of the table appearing in section 215 (a)” and inserting in lieu thereof "the amount determined under this subsection without regard to this paragraph, or $206.60, whichever is larger".

(b) The amendments made by subsection (a) shall apply in the case of monthly benefits under section 202 or section 223 of the Social Security Act for months after the month following the month in which this Act is enacted, but only (1) if the insured individual on the basis of whose wages and self-employment income such monthly benefits are payable became entitled (without the application of section 202 (j) (1) or section 223 (b) of such Act) to benefits under section 202 (a) or section 223 of such Act after the month following the month in which this Act is enacted, or (2) if such insured individual died before becoming so entitled and no person was entitled (without the application of section 202 (j) (1) or section 223 (b) of such Act) on the basis of such wages and self-employment income to monthly benefits under title II of the Social Security Act for the month following the month in which this Act is enacted or any prior month, or (3) if such insured individual was entitled, for the month following the month in which this Act is enacted, to benefits under section 202 (a) or 223 of the Social Security Act based on a primary insurance amount of more than $108.

RETIREMENT TEST

SEC. 106. (a) So much of section 203 of such Act as follows subsection (a) thereof is amended to read as follows:

"DEDUCTIONS ON ACCOUNT OF EXCESSIVE EARNINGS

"(b) Deductions, in such amounts and at such time or times as the Secretary shall determine, shall be made from any payment or payments under this title to which an individual is entitled and from any payment or payments to which any other persons are entitled on the basis of such individual's wages and selfemployment income until the total of such deductions equals—

"(1) such individual's benefit or benefits under section 202 for any month, and

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‘(2) if such individual was entitled to old-age insurance benefits under section 202(a) for such month, the benefit or benefits for such month under section 202 of all other persons based on such individual's wages and self-employment income,

if in such month such individual (except a child entitled to child's insurance benefits who has attained the age of 18) is under age 72 and if for such month he is charged with excess earnings, under the provisions of subsection (f) of this section, equal to the total of such benefits referred to in clauses (1) and (2); except that if the excess earnings so charged are less than such total of benefits, such deductions with respect to such month shall be equal only to the amount of such excess. If a child who has attained the age of 18 and is entitled to child's insurance benefits, or a person who is entitled to mother's insurance benefits, is married to an individual entitled to old-age insurance benefits under section 202(a), such child or such person, as the case may be, shall, for the purposes of this subsection and subsection (f), be deemed to be entitled to such benefits on the basis of the wages and self-employment income of such individual entitled to old-age insurance benefits. If a deduction has already been made under this subsection with respect to a person's benefit or benefits under section 202 for a month, he shall be deemed entitled to payments under such section for such month for purposes of further deductions under this subsection and charging of other excess earnings under subsection (f) only to the extent of the total of his benefits remaining after such earlier deductions have been made. For purposes of this subsection and subsection (f)—

"(A) if an individual's benefit or benefits under subsection (a) would, but for the penultimate sentence thereof, be reduced, he shall be deemed to be entitled to payments under section 202 equal to the amount of such benefit or benefits for such month which would remain (but for such penultimate sentence) after application of subsection (a); and

"(B) if a deduction is made with respect to an individual's benefit or benefits under section 202 because of the occurrence in any month of an event specified in subsection (c) or (d) of this section or in section 222 (b), such individual shall not be considered to be entitled to any benefits under such section 202 for such month.

"DEDUCTIONS ON ACCOUNT OF NONCOVERED REMUNERATIVE ACTIVITY OR FAILURE TO HAVE CHILD IN CARE

"(c) Deductions, in such amounts and at such time or times as the Secretary shall determine, shall be made from any payment or payments under this title to which an individual is entitled, until the total of such deductions equals such individual's benefit or benefits under section 202 for any month

"(1) in which such individual is under the age of seventy-two and on seven or more different calendar days of which he engaged in noncovered remunerative activity outside the United States; or

"(2) in which such individual, if a wife under age 65 entitled to a wife's insurance benefit, did not have in her care (individually or jointly with her husband) a child of her husband entitled to a child's insurance benefit and such wife's insurance benefit for such month was not reduced under the provisions of section 202 (q); or

"(3) in which such individual, if a widow entitled to a mother's insurance benefit, did not have in her care a child of her deceased husband entitled to a child's insurance benefit; or

"(4) in which such individual, if a former wife divorced entitled to a mother's insurance benefit, did not have in her care a child of her deceased former husband, who (A) is her son, daughter, or legally adopted child and (B) is entitled to a child's insurance benefit on the basis of the wages and self-employment income of her deceased husband.

For purposes of paragraphs (2), (3), and (4) of this subsection, a child shall not be considered to be entitled to a child's insurance benefit for any month in which an event specified in section 222(b) occurs with respect to such child. No deduction shall be made under this subsection from any child's insurance benefit for the month in which the child entitled to such benefit attained the age of 18 or any subsequent month.

"DEDUCTIONS FROM DEPENDENTS' BENEFITS BECAUSE OF NONCOVERED REMUNERATIVE ACTIVITY OF OLD-AGE INSURANCE BENEFICIARY

"(d) (1) Deductions shall be made from any wife's husband's, or child's insurance benefit, based on the wages and self-employment income of an individual entitled to old-age insurance benefits to which a wife, husband, or child is entitled, until the total of such deductions equals such wife's, husband's, or child's insurance benefit or benefits under section 202 for any month in which the individual, on the basis of whose wages and self-employment income such benefit was payable, is under the age of seventy-two and on seven or more different calendar days of which he engaged in noncovered remunerative activity outside the United States.

"(2) Deductions shall be made from any child's insurance benefit to which a child who has attained the age of eighteen is entitled or from any mother's insurance benefit to which a person is entitled, until the total of such deductions equals such child's insurance benefit or benefits or mother's insurance benefit or benefits under section 202 for any month in which such child or person entitled to mother's insurance benefits is married to an individual entitled to old-age insurance benefits under section 202(a) who is under the age of seventy-two and on seven or more different calendar days of which he engaged in noncovered remunerative activity outside the United States.