PUBLIC LAW 98-21 98TH CONGRESS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000900110001-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 22, 2016
• Document Release Date: January 11, 2011
• Sequence Number: 1
• Publication Date: April 20, 1983
• Content Type: REGULATION

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PUBLIC LAW 98-21-APR. 20,1--3
Public Law 98-21
98th Congress
itLU Liff-I
e MAY 1983
To assure the solvency of the Social Security Trust Funds, to reform the medicare
reimbursement of hospitals, to extend the Federal supplemental compensation
program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. This Act, with the following table of contents, may be
cited as the "Social Security Amendments of 1983".
TABLE OF CONTENTS
Apr. 20, 1983
11-1.11. 1900)
Social Security
Amendments of
1983.
42 USC 1305
note.
Sec. 1. Short title.
TITLE 1-PROVISIONS AFFECTING THE FINANCING OF THE SOCIAL
SECURITY SYSTEM
PART A-COVERAGE
Sec. 101. Coverage of newly hired Federal employees.
Sec. 102. Coverage of employees of nonprofit organizations.
Sec. 103. Duration of agreements for coverage of State and local employees.
PART B-COMPUTATION OF BENEFIT AMOUNTS
Sec. Ill. Shift of cost-of-living adjustments to calendar year basis.
Sec. 112. Cost-of-living increases to be based on either wages or prices (whichever is
lower) when balance in OASDI trust funds falls below specified level.
Sec. 113. Elimination of windfall benefits for individuals receiving pensions from
noncovered employment.
Sec.. 114. Increase in old-age insurance benefit amounts on account of delayed
retirement.
PART C-REVENUE PROVISIONS
Sec. 121. Taxation of social security and tier 1 railroad retirement benefits.
Sec. 122. Credit for the elderly and the permanently and totally disabled.
Sec. 123. Acceleration of increases in FICA taxes; 1984 employee tax credit.
Sec. 124. Taxes on self-employment income; credit against such taxes for years
before 1990; deduction of such taxes for years after 1989.
Sec. 125. Treatment of certain faculty practice plans.
Sec. 126. Allocations to disability insurance trust fund.
PART D-BENEFITS FOR CERTAIN SURVIVING, DIVORCED, AND DISABLED SPOUSES
Sec. 131. Benefits for surviving divorced spouses and disabled widows and widowers
who remarry.
Sec. 132. Entitlement to divorced spouse's benefits without regard to entitlement of
insured individual to benefits; exemption of divorced spouse's benefits
from deduction on account of work.
Sec. 133. Indexing of deferred surviving spouse's benefits to recent wage levels.
Sec. 134. Limitation on benefit reduction for early retirement in case of disabled
widows and widowers.
PART E-MECHANISMS TO ASSURE CONTINUED BENEFIT PAYMENTS IN UNEXPECTEDLY
ADVERSE CONDITIONS
Sec. 141. Normalized crediting of social security taxes to trust funds.
Sec. 142. Interfund borrowing extension.
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97 STAT. 66 PUBLIC LAW 98-21-APR. 20, 1983
Sec. 143. Recommendations by Board of Trustees to remedy inadequate balances in
the Social Security Trust Funds.
PART F-OTHER FINANCING AMENDMENTS
Sec. 151. Financing of noncontributory military wage credits.
Sec. 152. Accounting for certain unnegotiated checks for benefits under the social
security program.
Sec. 153. Float periods.
Sec. 154. Trust fund trustees' reports.
TITLE II-ADDITIONAL PROVISIONS RELATING TO LONG-TERM FINANCING
OF THE SOCIAL SECURITY SYSTEM
Sec. 201. Increase in retirement age.
TITLE III-MISCELLANEOUS AND TECHNICAL PROVISIONS
PART A-EWMINATION OF GENDER-BASED DISTINCTIONS
Sec. 301. Divorced husbands.
Sec. 302. Remarriage of surviving spouse before age of eligibility.
Sec. 303. Illegitimate children.
Sec. 304. Transitional insured status.
Sec. 305. Equalization of benefits under section 228.
Sec. 306. Father's insurance benefits.
Sec. 307. Effect of marriage on childhood disability benefits and on other depend-
ents' or survivors' benefits.
Sec. 308. Credit for certain military service.
Sec. 309. Conforming amendments.
Sec. 310. Effective date of part A.
PART B-COVERAGE
Sec. 321. Coverage of employees of foreign affiliates of American employers.
Sec. 322. Extension of coverage by international social security agreement.
Sec. 323. Treatment of certain service performed outside the United States.
Sec. 324. Amount received under certain deferred compensation and salary reduc-
tion arrangements treated as wages for FICA taxes. in Utah.
Sec. 325. Effect of changes in names of State and local employee groups
Sec. 326. Effective dates of international social security agreements.
Sec. 327. Codification of Rowan decision with respect to meals and lodging.
Sec. 328. Treatment of contributions under simplified employee pensions.
PART C-OTHER AMENDMENTS
Sec. 331. Technical and conforming amendments to maximum family benefit provi-
sions.
Sec. 332. Relaxation of insured status requirements for certain workers previously
entitled to a period of disability.
Sec. 333. Protection of benefits of illegitimate children of disabled beneficiaries.
Sec. 334. One-month retroactivity of widow's and widower's insurance benefits.
Sec. 335. Nonassignability of benefits.
Sec. 336. Use of death certificates to prevent erroneous benefit payments to de-
ceased individuals.
Sec. 337. Public pension offset.
Sec. 338. Study independent concerning fthe agency. of the Social Security Administration
as an Sec. 339. Limitation on payments to prisoners.
Sec. 340. Requirement of previous United States residency for alien dependents and
survivors living outside the United States.
Sec. 341. Addition of public members to Trust Fund Board of Trustees.
Sec. 342. Payment schedule by State and local governments.
Sec. 343. Earnings sharing implementation report.
Sec. 344. Veterans' Administration reorganization.
Sec. 345. Social security cards.
Sec. 346. Budgetary treatment of Trust Fund operations.
Sec. 347. Liberalization of earnings test.
TITLE IV-SUPPLEMENTAL SECURITY INCOME BENEFITS
Sec. 401. Increase in Federal SSI benefit standard.
provisions.
Sec. 402. Adjustments in Federal SSI pass-through prov
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PUBLIC LAW 98- -APR. 20, 1983 97 STA'x.-67
Sec. 403. SSI ell ibility for temporary residents of emergency shelters fbr the home.
Sec. 404. ing of emergency and other in-kind assistance provided by non-
e organizations
Sec. 405. Notifi Lion regarding SST.
TITLE V-UNEMPLOYMENT COMPENSATION PROVISIONS
PART A-FEDERAL SUPPLEMENTAL COMPENSATION
Sec. 501. Extension of program.
Sec. 502. Number of weeks for which compensation payable.
Sec. 503. Effective date.
Sec. 504. Training.
Sec. 505. Coordination with trade readjustment program.
PART B-PROVISIONS RIM ATINO TO INTEREST AND CREDIT REDUCTIONS
Sec. 511. Deferral of interest.
Sec. 512. Cap on credit reduction.
Sec. 513. Average employer contribution rate.
Sec. 514. Date for payment of interest.
Sec. 515. Penalty for failure to pay interest.
PART C-MISCELLANEOUS PROVISIONS
Sec. 521. Treatment of employees providing services to educational institutions.
Sec. 522. Extended benefits for individuals who are hospitalized or on jury duty.
Sec. 523. Voluntary health insurance programs permitted.
Sec. 524. Treatment of certain organizations retroactively determined to be de-
scribed in section 501(c$3) of the Internal Revenue Code of 1954.
TITLE VI-PROSPECTIVE PAYMENTS FOR MEDICARE INPATIENT
HOSPITAL SERVICES
Sec. 601. Medicare payments for inpatient hospital services on the basis of prospec-
tive rates.
Sec. 602. Conforming amendments.
Sec. 603. Reports, experiments, and demonstration projects.
Sec. 604. Effective dates.
Sec. 605. Delay in provision relating to hospital-based skilled nursing facilities.
Sec. 606. Shift in medicare premiums to coincide with cost-of-living increase.
Sec. 607. Section 1122 amendments
TITLE I-PROVISIONS AFFECTING THE FI-
NANCING OF THE SOCIAL SECURITY
SYSTEM
COVERAGE OF NEWLY HIRED FEDERAL EMPLOYEl38
SEC. 101. (aX1) Section 210(a) of the Social Security Act is amended
by striking out paragraphs (5) and (6) and inserting in lieu thereof
the following:
"(5) Service performed in the employ of the United States or
any instrumentality of the United States, if such service-
"(A) would be excluded from the term 'employment' for
purposes of this title if the provisions of paragraphs (5) and
(6) of this subsection as in effect in January 1983 had
remained in effect, and
"(B) is performed by an individual who (i) has been
continuously in the employ of the United States or an
instrumentality thereof since December 31, 1983 (and for
this purpose an individual who returns to the performance
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97 STAT. 68 PUBLIC LAW 98-21-APR. 20, 1983
of such service after being separated therefrom following a
previous period of such service shall nevertheless be consid-
ered upon such return as having been continuously in the
employ of the United States or an instrumentality thereof',
regardless of whether the period of such separation began
before, on, or after December 31, 1983, if the period of such
separation does not exceed 365 consecutive days), or (ii) is
receiving an annuity from the Civil Service Retirement and
Disability Fund, or benefits (for service as an employee)
under another retirement system established by a law of
the United States for employees of the Federal Government
(other than for members of the uniformed services);
except that this paragraph shall not apply with respect to-
"(i) service performed as the President or Vice President
of the United States,
"(ii) service performed-
"(I) in a position placed in the Executive Schedule
under sections 5312 through 5317 of title 5, United
States Code,
"(II) as a noncareer appointee in the Senior Execu-
tive Service or a noncareer member of the Senior For-
eign Service, or
"(III) in a position to which the individual is
appointed by the President (or his designee) or the Vice
President under section 105(aXl), 106(aXl), or 107 (aX 1)
or (bXl) of title 3, United States Code, if the maximum
rate of basic pay for such position is at or above the
rate for level V of the Executive Schedule,
"(iii) service performed as the Chief Justice of the United
States, an Associate Justice of the Supreme Court, a judge
of a United States court of appeals, a judge of a United
States district court (including the district court of a terri-
tory), a judge of the United States Claims Court, a judge of
the United States Court of International Trade, a judge of
the United States Tax Court, a United States magistrate. or
a referee in bankruptcy or United States bankruptcy judge.
"(iv) service performed as a Member, Delegate, or Resi-
dent Commissioner of or to the Congress, or
"(v) any other service in the legislative branch of the
Federal Government if such service is performed by an
individual who, on December 31, 1983, is not subject to
5 Usc 8331. subchapter III of chapter 83 of title 5, United States Code;
"(6) Service performed in the employ of the United States or
any instrumentality of the United States if such service is
performed-
"(A) in a penal institution of the United States by an
inmate thereof;
"(B) by any individual as an employee included under
section 5351(2) of title 5, United States Code (relating to
certain interns, student nurses, and other student employ-
ees of hospitals of the Federal Government), oth r than as a
medical or dental intern or a medical or dental resident in
training; or
"(C) by any individual as an employee serving on a
temporary basis in case of fire, storm, earthquake, flood, or
other similar emergency;".
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PUBLIC LAW 98-2i-:APR. 20, 1983
(2) Section 210(p) of such Act is amended by striking out "provi-
sions of-" anc ll that follows and inserting in lieu thereof "provi-
sions of subsection (05).".
(bXl) Section 3121(b) of the Internal Revenue Code of 1954 is
amended by striking out paragraphs (5) and (6) and inserting in lieu
thereof the following:
"(5) service performed in the employ of the United States or
any instrumentality of the United States, if such service-
"(A) would be excluded from the term 'employment' for
purposes of this title if the provisions of paragraphs 15, and
(6) of this subsection as in effect in January 1983 had
remained in effect, and
"(B) is performed by an individual who (i) has been
continuously in the employ of the United States or an
instrumentality thereof since December 31, 1983 (and for
this purpose an individual who returns to the performance
of such service after being separated therefrom following a
previous period of such service shall nevertheless be consid-
ered upon such return as having been continuously in the
employ of the United States or an instrumentality thereof,
regardless of whether the period of such separation began
before, on, or after December 31, 1983, if the period of such
separation does not exceed 365 consecutive days), or (ii) is
receiving an annuity from the Civil Service Retirement and
Disability Fund, or benefits (for service as an employee)
under another retirement system established by law of the
United States for employees of the Federal Government
(other than for members of the uniformed services);
except that this paragraph shall not apply with respect to-.
"(i) service performed as the President or Vice President
of the United States,
"(ii) service performed-
"(I) in a position placed in the Executive Schedule
under sections 5312 through 5317 of title 5, United
States Code,
"(II) as a noncareer appointee in the Senior Execu
tive Service or a noncareer member of the Senior For
eign Service, or
"(III) in a position to which the individual is
appointed by the President (or his designee) or the Vice
President under section 105(aXl), 106(a)(1), or 107 (aX1)
or (bXl) of title 3, United States Code, if the maximum
rate of basic pay for such position is at or above the
rate for level V of the Executive Schedule,
"(iii) service performed as the Chief Justice of the United
States, an Associate Justice of the Supreme Court, a judge
of a United States court of appeals, a judge of a United
States district court (including the district court of a terri-
tory), a judge of the United States Claims Court, a judge of
the United States Court of International Trade, a judge of
the United States Tax Court, a United States magistrate, or
a referee in bankruptcy or United States bankruptcy judge,
"(iv) service performed as a Member, Delegate, or Resi-
dent Commissioner of or to the Congress, or
"(v) an other service in the legislative branch of the
Federal Government if such service is performed by an
97 STAT. t) a
96 Stat. 560.
42 USC 410.
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97 STAT. 70 PUBLIC LAW 98-21-APR. 20, 1983
individual who, on December 31, 1983, is not subject to
5 USC 8331. subchapter III of chapter 83 of title 5, United States Code;
"(6) service performed in the employ of the United States or
any instrumentality of the United States if such service is
performed-
"(A) in a penal institution of the United States by an
inmate thereof;
"(B) by any individual as an employee included under
section 5351(2) of title 5, United States Code (relating to
certain interns, student nurses, and other student employ-
ees of hospitals of the Federal Government), other than as a
medical or dental intern or a medical or dental resident in
training; or
"(C) by any individual as an employee serving on a
temporary basis in case of fire, storm, earthquake, flood, or
other similar emergency;".
96 Stat. 559. (2) Section 3121(uXl) of such Code is amended to read as follows:
26 USC 3121. "(1) IN GENERAL.-For purposes of the taxes imposed by sec-
tions 3101(b) and 3111(b), subsection (b) shall be applied without.
regard to paragraph (5) thereof.".
42 USC 409. (cXl) Section 209 of the Social Security Act is amended by adding
at the end thereof the following new paragraph:
"For purposes of this title, in the case of an individual performing
service under the provisions of section 294 of title 28, United States
Code (relating to assignment of retired justices and judges to active
duty), the term 'wages' shall, subject to the provisions of subsection
(a) of this section, include any payment under section 371(b) of such
title 28 which is received during the period of such service.".
26 USC 3121. (2) Section 3121(i) of the Internal Revenue Code of 1954 (relating to
computation of wages in certain cases) is amended by adding at the
end thereof the following new paragraph:
"(5) SERVICE PERFORMED BY CERTAIN. RETIRED JUSTICES AND
JuDGEs.-For purposes of this chapter, in the case of an individ-
ual performing service under the provisions of section 294 of
title 28, United States Code (relating to assignment of retired
justices and judges to active duty), the term 'wages' shall,
subject to the provisions of subsection (aXi) of this section.
include any payment under section 371(b) of such title 28 which
is received during the period of such service.".
Effective date. (d) The amendments made by this section shall be effective with
26 USC 3121 respect to remuneration paid after December 31, 1983.
ttOte (e) Nothing in this Act shall reduce the accrued entitlements to
Entitlements.
employees and their Retirement System of current and
42 Usc 4w not,. future
COVERAGE OF EMPLOYEES OF NONPROFIT ORGANIZATIONS
SEC. 102. (a) Section 210(aX8) of the Social Security Act is
amended-
(1) by striking out "(A)" immediately after "(8)";
(2) by striking out "subparagraph" where it first appears and
inserting in lieu thereof "paragraph"; and
(3) by striking out subparagraph (B).
(bXl) Section 3121(bX8) of the Internal Revenue Code of 1954 i-
amended-
(A) by striking out "(A)" immediately after "(8)";
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