Social Security Amendments of 1983

Summary

Social Security Amendments of 1983 - Title I: Changes in Coverage - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act and the Internal Revenue Code to provide mandatory coverage under the Old Age, Survivors and Disability Insurance program as of January 1, 1984, for new Federal employees, members of Congress, the President, the Vice President, and employees of nonprofit organizations. Prohibits the termination of State coverage agreements (under which State and local government employees may be covered under title II) on or after the enactment of this Act. Makes such prohibition applicable to any agreements in effect on the date of the enactment of this Act, notwithstanding pending termination notices. (Currently, coverage under such an agreement may be terminated if the State gives two years' written notice of such intent, following at least five years of coverage of the State or local group involved.) Title II: Changes in Benefits - Provides that the automatic cost of living adjustment in OASDI benefits shall be provided on a calendar year basis beginning in 1984. Provides that OASDI beneficiaries who become eligible for a pension based on non-covered employment after 1983 shall have their old-age or disability (but not survivors) benefits reduced. Prohibits the reduction of an individual's primary insurance amount below the minimum primary insurance amount under current law. Permits the continued payment of OASDI benefits to: (1) surviving divorced spouses who remarry after age 60; (2) disabled widows and disabled widowers who remarry after age 50; and (3) diabled surviving divorced wives who remarry after age 50. Provides that in the case of deferred survivor benefits, the primary insurance amount of the deceased individual shall be determined, for benefit computation purposes, as if the deceased individual died in the year in which the beneficiary first became eligible for such benefits or in the year in which the deceased individual would have reached age 60, whichever is earlier. Makes wife's insurance benefits payable to divorced wives at age 62 in the case of wives who have been divorced for at least two years if the former husband is eligible for retirement benefits (regardless of whether such benefits have been applied for). Provides that the amount of the benefit for such a divorced wife shall be determined without regard to reductions which may be made because of the former husband's excess earnings. Increases the benefit amount for disabled widows and widowers to 71.5 percent of the primary insurance amount. Provides for a decrease in the cost of living adjustments to OASDI benefits, beginning in 1988, whenever the reserves in the Federal Old-Age and Survivors Insurance Trust Fund and in the Federal Disability Insurance Trust Fund fall below a certain amount, calculated as of January 1 of each year. Requires the payment of additional benefits to beneficiaries when the reserves in the trust funds have increased above a certain amount. Provides for a gradual increase in the delayed retirement credit received by workers who delay retirement beyond age 65. Makes the increase in such credit effective for workers who reach age 65 in 1990 and thereafter. Title III: Revenue Provisions - Amends the Internal Revenue Code to include one-half of an individual's OASDI benefits in adjusted gross income if the individual's other adjusted gross income exceeds: (1) $20,000 in the case of a single taxpayer or married taxpayer filing separately; (2) $25,000 in the case of a joint return; and (3) zero in the case of a married taxpayer who does not file a joint return and who does not live apart from his or her spouse at all times during the taxable year. Requires the Secretary of Health and Human Services to file information returns indicating: (1) the aggregate amount of beneifts paid to any individual during a calendar year; and (2) such individual's name and address. Requires that such information be furnished to the individuals named in the returns. Appropriates to the Federal Old-Age and Survivors Insurance Trust Fund and to the Federal Disability Insurance Trust Fund the revenues generated under this title for each fiscal year, beginning in FY 1984. Revises the OASDI tax rates on employees and employers so as to: (1) increase the tax rate for 1984; (2) keep the current tax rate for 1985 through 1987; and (3) increase the tax rate for 1988-1989. Allows a refundable tax credit for employees for OASDI tax increases attributable to this title for calendar year 1984. Requires employers to make advance payments of such tax credit to their employees. Increases the OASDI tax rate on self-employment income for taxable years 1984 through 1990. Allows self-employed individuals an income tax deduction of 50 percent of the OASDI taxes paid on self-employment income, beginning in 1984. Includes in taxable wages for purposes of OASDI and hospital insurance taxes those salary reductions made under qualified cash or deferred arrangement plans of employers. Title IV: Miscellaneous Financing Provisions - Amends title II of the Social Security Act to revise the allocations of wages and self-employment income from the Treasury to the Federal Disability Insurance Trust Fund beginning in 1984. Extends until January 1988 the authority for borrowing among the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund whenever the Managing Trustee of the trust funds determines that additional funds are needed to pay benefits from one of the funds. (Currently, interfund borrowing is authorized through December 31, 1982.) Requires the Secretary of the Treasury to credit the appropriate title II trust fund with the amount of all social security benefit checks issued under title II which have not been negotiated within 12 months after issuance. Authorizes appropriations to reimburse the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund for the total amount of unnegotiated benefit checks as of the enactment of this Act. Provides for a transfer, within 30 days after enactment of this Act, to each of the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund of amounts equal to: (1) the estimated cost of providing future benefits based on pre-1957 military wage credits; and (2) the taxes plus interest that would have been collected if credits for military service after 1956 had been taxed as they were earned (less any reimbursements already received). Amends title II and title XVIII (Medicare) of the Social Security Act to establish the following accounts in the Treasury: (1) the Old-Age and Survivors Insurance Depositary Account; (2) the Disability Insurance Depositary Account; and (3) the Hospital Insurance Depositary Account. Requires the Managing Trustee of the social security trust funds to deposit the portions of the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund that are not required to meet current withdrawals from such funds into the corresponding depositary accounts so established. Revises investment requirements with respect to trust fund assets deposited in such accounts. Requires the addition of two members of the public from different political parties to the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, the Federal Hospital Insurance Trust Fund, and the Federal Supplementary Medical Insurance Trust Fund.

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2 official files

• Reported to Senate with amendment(s)

  summary · EN · 11 March 1983

  Open at official source

• Introduced in Senate

  summary · EN · 26 January 1983

  Open at official source

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