Social Security Amendments of 1977

Summary

Social Security Financing Amendments - Title I: Provisions to Improve the Financing of the Old-Age, Survivors, and Disability Insurance Program - Amends the Internal Revenue Code of 1954 to increase the rate of tax on wages received by employees and paid by employers and on the earnings of the self employed for the purposes of Title II (Old-Age, Survivors, and Disability Insurance)and the hospital insurance program of Title XVIII (Medicare) of the Social Security Act. Sets forth the steps in which such increases shall be made through the taxable years beginning after December 31, 1989. Increases to specified dollar amounts the level of wages and self-employment income to which such rate shall be applied in the years 1978 through 1981. Sets such limit at $27,900 in 1981. Increases, to specified levels, the allocations of revenues from wages and self-employment income from the Treasury to the Federal Disability Insurance Trust Fund in accordance with Title II of the Social Security Act. Establishes measures to maintain a minimum balance in the Federal Old-Age and Survivor Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund by loaning funds from the general fund of the Treasury when one of the Social Security funds is reduced to a specified level. Title II: Stabilization of Replacement Rates in the Old-Age, Survivors, and Disability Insurance Program - Sets forth a new formula for the computation of the primary insurance amount of an individual who becomes eligible for old age insurance benefits or disability insurance benefits under Title II after January, 1979. Bases such amount on the individual's average indexed monthly earnings. Promulgates a method for determining such average indexed monthly earnings. Requires that, in determining the amount on which an individual's primary insurance amount will be based, a worker's wages and self employment income be indexed to reflect the changes between the year in which such individual became eligible for benefits and each year in which the worker had earnings. Sets forth a formula to be used in indexing an individual's earnings for a specified computation base year. Establishes a minimum monthly primary insurance amount. States that the amount of such minimum benefit shall be determined in accordance with existing provisions of the Social Security Act as revised from time to time. Provides for the recomputation of the benefit amounts of current beneficiaries to assure that no individual receives less under the current method of computing benefit amounts than the amount he would receive under this Act. Establishes new maximum limits on the amount of benefits which an individual may receive. Title III: Coverage Under the Old-Age, Survivors, and Disability Insurance Program - Amends Title II of the Social Security Act and the Internal Revenue Code of 1954 to include Federal, State, and local employees and employers of tax-exempt organizations within the coverage of the Social Security system. Excludes from coverage the distributive share of any item of income or loss of a limited partner to the extent that such share represents remuneration for services rendered to the partnership. Directs employers who pay wages at a rate lower than the Federal minimum wage because their employees receive income from tips to base their payment of social security taxes on the amount of wages which would have been paid if the employer had paid the minimum wage. Title IV: Elimination of Gender-Based Distinctions Under the Old-Age, Survivors, and Disability Insurance Program - Amends Title II to eliminate gender-based distinctions in awarding benefits under such Title. Equalizes treatment of fathers, husbands, divorced husbands, surviving divorced husbands, and widowers with the treatment of their female counterparts under the Old-Age, Survivors, and Disability Insurance Program. Eliminates marriage or remarriage of a benefit recipient as a factor in terminating or reducing benefits. Reduces from 20 to five the number of years a divorced spouse must have been married to claim benefits under the former spouse. Directs the Secretary of Health, Education, and Welfare to conduct a study to develop proposals for the elimination of dependency as a factor in awarding benefits under Title II. Title V: Changes in Earnings Test under the Old-Age, Survivors, and Disability Insurance Program - Amends Title II to establish a minimum amount which an individual may earn per month before suffering a loss or reduction of benefits under that Title. Establishes the exempt amount at $375 for each month of any taxable year ending after 1977 and before 1979 ($4,500 per year), and $500 for each month of any taxable year ending after 1978 and before 1980 ($6,000 per year). Requires the determination and publication of new exempt amounts in calendar years after 1978. Eliminates the prohibition against charging excess earnings to a month in which an individual was unemployed in determining eligibility for benefits. Title VI: Combined Social Security and Income Tax Annual Reporting - Sets forth procedures, under Title II, for the crediting of an individual's income to calendar years instead of to specific calendar quarters as is now required. Establishes, for calendar year 1978, the sum of $250 as the amount of income which will be counted as a calendar quarter in the determination of eligibility for benefits. Allows a credit for four such quarters per year. Sets forth a procedure for indexing such amount in succeeding years based on total wages paid in such years. Amends the Internal Revenue Code of 1954 to provide that an employer may deduct social security taxes from the remuneration paid an employee rendering services not in the course of employer's trade or business even though the total remuneration paid the employee in the year by the employer is less than $100. Makes additional amendments to the Code to conform to the changes made by this Act to the Social Security Act. Amends the Railroad Retirement Act of 1974 to conform the provisions of such Act to the changes made by this Act to the Social Security Act. Title VII: Miscellaneous Provisions - Amends Title II to prohibit the retroactive payment of monthly cash benefits, with stated exceptions, for any month before the month in which the application was filed when such payment would permanently reduce an individual's benefits. Requires the payment of Social Security and Supplemental Security Income checks on the day preceding a Saturday, Sunday, or legal public holiday when the regular date of delivery is a Saturday, Sunday, or legal public holiday.

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Documents

3 official files

• Public Law (PDF)

  Public Law · EN · 21 December 1977

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• Conference report filed in House

  summary · EN · 15 December 1977

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• Introduced in House

  summary · EN · 27 September 1977

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