Social Security Guarantee and Individual Retirement Security Act of 1983

Summary

Social Security Guarantee and Individual Retirement Security Act of 1983 - Title I: Individual Retirement Security Accounts - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to require the Secretary of Health and Human Services and the Secretary of the Treasury to establish, after December 31, 1993, an individual retirement security account (IRSA) for each individual who: (1) pays the old age, survivors and disability insurance taxes on wages and self-employment income; and (2) does not have an individual retirement security account with a qualified fiduciary. Requires the Secretary of the Treasury to pay into an IRSA an amount equal to the amount of a mandatory tax on wages and self-employment income paid by the individual pursuant to this Act and of an excise tax paid by the individual's employer with respect to such individual's wages. Permits an individual to contribute funds to an IRSA established for him or her under this Act. Permits withdrawals from such an account before the individual reaches age 62 if the amount withdrawn is: (1) used for the purchase of life insurance, health insurance, or disability insurance for the individual; or (2) deposited into an individual retirement account established by the individual. Amends the Internal Revenue Code to allow a tax credit for amounts contributed to an individual retirement security account established either by the taxpayer or by the Secretary of Health and Human Services and the Secretary of the Treasury on the taxpayer's behalf pursuant to this Act. Excludes from gross income any income which accrues on an individual retirement security account and which remains in such account until the taxpayer reaches age 62 or is withdrawn before the taxpayer reaches 62 for the purchase of life insurance, health insurance, or disability insurance for the taxpayer. Exempts individual retirement security accounts from taxation. Provides for a gradual reduction in the old age, survivors and disability insurance tax rates with respect to employees, employers, and self-employment income, beginning in 1994. Provides that a mandatory contribution shall be made for each taxable year, beginning in 1994, from the wages and self-employment income of every individual to such individual's IRSA. Imposes on employers an excise tax for each taxable year, beginning in 1994, on the wages paid by him or her to employees. Amends title II of the Social Security Act to revise the primary insurance amount to reflect the reduction in the old age, survivors and disability insurance tax rates pursuant to this Act. Title II: Old-Age, Survivors, and Disability Insurance Program - Amends title II of the Social Security Act to require the Secretary of Health and Human Services to issue a certificate of guaranteed tax-exempt benefits to each individual who: (1) is entitled to an old-age insurance benefit; or (2) is age 62 and is entitled to any other title II benefit. Requires the Secretary to issue annual contribution and benefit statements (to individuals with social security numbers) which indicate the amount of old age, survivors and disability insurance taxes paid by an individual and project the primary insurance amount for an individual when he or she reaches age 65. Amends the Internal Revenue Code to allow a tax credit for the amount of social security benefits which are paid to the taxpayer from the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund and are returned by the taxpayer to the appropriate trust funds. Eliminates the 1985 and 1990 increases in the old age, survivors and disability insurance taxes on self-employment income, employees, and employers. Amends title II of the Social Security Act and the Internal Revenue Code to provide mandatory coverage under the Old Age, Survivors and Disability Insurance program for Federal employees. Amends title II of the Social Security Act to revise the basis of the automatic cost of living adjustment in OASDI benefits. Revises the formula for determining the initial cost of living adjustment in the primary insurance amount, the maximum benefit amount, the benefit rate for transitional insured status, and the benefit amount for certain uninsured individuals who are age 72. Eliminates the requirement that the Treasury be reimbursed for administrative costs under title II, title XVI (Supplemental Security Income), and title XVIII (Medicare) of the Social Security Act by 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. Requires the Secretary of the Treasury to credit the appropriate title II trust fund for 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). Increases the number of years which can be dropped out of the formula for computing OASDI benefits for persons who leave the workforce to care for children under age 6 at home. (Under current law, a maximum of a worker's five lowest years of earning are dropped from the computation of OASDI benefits, and such reduction is applicable to persons who leave the workforce to care for children under age 3 at home.) 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) disabled 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 62, 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 that the combined earnings of a married couple which are attributable to the period of their marriage shall be shared equally between them for purposes of determining the eligibility for and amount of OASDI benefits to which each spouse is or may become separately entitled. Limits the amount of title II benefits to be paid in the case of: (1) aliens who are not permanent residents of the United States or who have been outside the United States for more than six consecutive months while entitled to benefits; and (2) their dependents and survivors. Provides that the amount of title II benefits to be paid to such an individual shall be limited to: (1) the total amount of social security taxes paid on the wages and self-employment income on which the benefits are based, plus interest, if the individual is the only person entitled to such benefits; or (2) a pro rata share of the social security taxes paid on the wages and self-employment income on which the benefits are based, plus interest, if the individual is one of several persons entitled to such benefits. Makes the limitation on title II benefits under this Act inapplicable in the case of an alien who is not a permanent resident of the United States if the benefit involved is payable to such alien as the wife, husband, child, or survivor of a U.S. citizen or national or of a permanent resident of the United States. Makes such limitation inapplicable in the case of an individual if: (1) the benefit involved is payable to such individual as the dependent or survivor of a U.S. citizen or national who resides outside the United States and who is age 50 (or who died outside the United States after reaching age 50); and (2) the relationship upon which such individual's benefit entitlement is based existed at the time such U.S. citizen or national reached age 50. Provides that the limitation on title II benefits under this Act in the case of an alien who has been outside the United States for more than six consecutive months while entitled to benefits shall not preclude such alien from receiving benefits on the basis of wages and self-employment income other than the wages and self-employment income on which his or her entitlement was based while he or she was outside the United States for more than six consecutive months. Prohibits the termination of disability benefits on the grounds that the physical or mental impairment on which such benefits were based has ceased or did not exist, unless the Secretary of Health and Human Services finds that there has been medical improvement in the beneficiary's condition or that the initial disability determination was clearly erroneous under the disability standards in effect at the time. Makes such required findings inapplicable in the case of: (1) a termination of benefits based upon a finding that the beneficiary is able to engage in substantial gainful activity; or (2) a termination of benefits based on a finding of fraud. Removes the limitation on the amount of outside income which beneficiaries age 65 and over may earn without incurring a reduction in title benefits.

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• Introduced in Senate

  summary · EN · 22 February 1983

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