§ 401. — Trust Funds.
Code Resources
Search this Code
in Google Scholar
on the Web
Google Web Search
MSN Web Search
Yahoo! Web Search
in the News
Google News Search
Google News Archive Search
Yahoo! News Search
in the Blogs
BlawgSearch.com Search
Google Blog Search
Technorati Blog Search
in other Databases
Google Book Search
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 42USC401]
TITLE 42--THE PUBLIC HEALTH AND WELFARE
CHAPTER 7--SOCIAL SECURITY
SUBCHAPTER II--FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE
BENEFITS
Sec. 401. Trust Funds
(a) Federal Old-Age and Survivors Insurance Trust Fund
There is hereby created on the books of the Treasury of the United
States a trust fund to be known as the ``Federal Old-Age and Survivors
Insurance Trust Fund''. The Federal Old-Age and Survivors Insurance
Trust Fund shall consist of the securities held by the Secretary of the
Treasury for the Old-Age Reserve Account and the amount standing to the
credit of the Old-Age Reserve Account on the books of the Treasury on
January 1, 1940, which securities and amount the Secretary of the
Treasury is authorized and directed to transfer to the Federal Old-Age
and Survivors Insurance Trust Fund, and, in addition, such gifts and
bequests as may be made as provided in subsection (i)(1) of this
section, and such amounts as may be appropriated to, or deposited in,
the Federal Old-Age and Survivors Insurance Trust Fund as hereinafter
provided. There is hereby appropriated to the Federal Old-Age and
Survivors Insurance Trust Fund for the fiscal year ending June 30, 1941,
and for each fiscal year thereafter, out of any moneys in the Treasury
not otherwise appropriated, amounts equivalent to 100 per centum of--
(1) the taxes (including interest, penalties, and additions to
the taxes) received under subchapter A of chapter 9 of the Internal
Revenue Code of 1939 (and covered into the Treasury) which are
deposited into the Treasury by collectors of internal revenue before
January 1, 1951; and
(2) the taxes certified each month by the Commissioner of
Internal Revenue as taxes received under subchapter A of chapter 9
of such Code which are deposited into the Treasury by collectors of
internal revenue after December 31, 1950, and before January 1,
1953, with respect to assessments of such taxes made before January
1, 1951; and
(3) the taxes imposed by subchapter A of chapter 9 of such Code
with respect to wages (as defined in section 1426 of such Code), and
by chapter 21 (other than sections 3101(b) and 3111(b)) of the
Internal Revenue Code of 1954 with respect to wages (as defined in
section 3121 of such Code) reported to the Commissioner of Internal
Revenue pursuant to section 1420(c) of the Internal Revenue Code of
1939 after December 31, 1950, or to the Secretary of the Treasury or
his delegates pursuant to subtitle F of the Internal Revenue Code of
1954 after December 31, 1954, as determined by the Secretary of the
Treasury by applying the applicable rates of tax under such
subchapter or chapter 21 (other than sections 3101(b) and 3111(b))
to such wages, which wages shall be certified by the Commissioner of
Social Security on the basis of the records of wages established and
maintained by such Commissioner in accordance with such reports,
less the amounts specified in clause (1) of subsection (b) of this
section; and
(4) the taxes imposed by subchapter E of chapter 1 of the
Internal Revenue Code of 1939, with respect to self-employment
income (as defined in section 481 of such Code), and by chapter 2
(other than section 1401(b)) of the Internal Revenue Code of 1954
with respect to self-employment income (as defined in section 1402
of such Code) reported to the Commissioner of Internal Revenue on
tax returns under such subchapter or to the Secretary of the
Treasury or his delegate on tax returns under subtitle F of such
Code, as determined by the Secretary of the Treasury by applying the
applicable rate of tax under such subchapter or chapter (other than
section 1401(b)) to such self-employment income, which self-
employment income shall be certified by the Commissioner of Social
Security on the basis of the records of self-employment income
established and maintained by the Commissioner of Social Security in
accordance with such returns, less the amounts specified in clause
(2) of subsection (b) of this section.
The amounts appropriated by clauses (3) and (4) of this subsection shall
be transferred from time to time from the general fund in the Treasury
to the Federal Old-Age and Survivors Insurance Trust Fund, and the
amounts appropriated by clauses (1) and (2) of subsection (b) of this
section shall be transferred from time to time from the general fund in
the Treasury to the Federal Disability Insurance Trust Fund, such
amounts to be determined on the basis of estimates by the Secretary of
the Treasury of the taxes, specified in clauses (3) and (4) of this
subsection, paid to or deposited into the Treasury; and proper
adjustments shall be made in amounts subsequently transferred to the
extent prior estimates were in excess of or were less than the taxes
specified in such clauses (3) and (4) of this subsection. All amounts
transferred to either Trust Fund under the preceding sentence shall be
invested by the Managing Trustee in the same manner and to the same
extent as the other assets of such Trust Fund. Notwithstanding the
preceding sentence, in any case in which the Secretary of the Treasury
determines that the assets of either such Trust Fund would otherwise be
inadequate to meet such Fund's obligations for any month, the Secretary
of the Treasury shall transfer to such Trust Fund on the first day of
such month the amount which would have been transferred to such Fund
under this section as in effect on October 1, 1990; and such Trust Fund
shall pay interest to the general fund on the amount so transferred on
the first day of any month at a rate (calculated on a daily basis, and
applied against the difference between the amount so transferred on such
first day and the amount which would have been transferred to the Trust
Fund up to that day under the procedures in effect on January 1, 1983)
equal to the rate earned by the investments of such Fund in the same
month under subsection (d) of this section.
(b) Federal Disability Insurance Trust Fund
There is hereby created on the books of the Treasury of the United
States a trust fund to be known as the ``Federal Disability Insurance
Trust Fund''. The Federal Disability Insurance Trust Fund shall consist
of such gifts and bequests as may be made as provided in subsection
(i)(1) of this section, and such amounts as may be appropriated to, or
deposited in, such fund as provided in this section. There is hereby
appropriated to the Federal Disability Insurance Trust Fund for the
fiscal year ending June 30, 1957, and for each fiscal year thereafter,
out of any moneys in the Treasury not otherwise appropriated, amounts
equivalent to 100 per centum of--
(1)(A) \1/2\ of 1 per centum of the wages (as defined in section
3121 of the Internal Revenue Code of 1954) paid after December 31,
1956, and before January 1, 1966, and reported to the Secretary of
the Treasury or his delegate pursuant to subtitle F of the Internal
Revenue Code of 1954, (B) 0.70 of 1 per centum of the wages (as so
defined) paid after December 31, 1965, and before January 1, 1968,
and so reported, (C) 0.95 of 1 per centum of the wages (as so
defined) paid after December 31, 1967, and before January 1, 1970,
and so reported, (D) 1.10 per centum of the wages (as so defined)
paid after December 31, 1969, and before January 1, 1973, and so
reported, (E) 1.1 per centum of the wages (as so defined) paid after
December 31, 1972, and before January 1, 1974, and so reported, (F)
1.15 per centum of the wages (as so defined) paid after December 31,
1973, and before January 1, 1978, and so reported, (G) 1.55 per
centum of the wages (as so defined) paid after December 31, 1977,
and before January 1, 1979, and so reported, (H) 1.50 per centum of
the wages (as so defined) paid after December 31, 1978, and before
January 1, 1980, and so reported, (I) 1.12 per centum of the wages
(as so defined) paid after December 31, 1979, and before January 1,
1981, and so reported, (J) 1.30 per centum of the wages (as so
defined) paid after December 31, 1980, and before January 1, 1982,
and so reported, (K) 1.65 per centum of the wages (as so defined)
paid after December 31, 1981, and before January 1, 1983, and so
reported, (L) 1.25 per centum of the wages (as so defined) paid
after December 31, 1982, and before January 1, 1984, and so
reported, (M) 1.00 per centum of the wages (as so defined) paid
after December 31, 1983, and before January 1, 1988, and so
reported, (N) 1.06 per centum of the wages (as so defined) paid
after December 31, 1987, and before January 1, 1990, and so
reported, (O) 1.20 per centum of the wages (as so defined) paid
after December 31, 1989, and before January 1, 1994, and so
reported, (P) 1.88 per centum of the wages (as so defined) paid
after December 31, 1993, and before January 1, 1997, and so
reported, (Q) 1.70 per centum of the wages (as so defined) paid
after December 31, 1996, and before January 1, 2000, and so
reported, and (R) 1.80 per centum of the wages (as so defined) paid
after December 31, 1999, and so reported, which wages shall be
certified by the Commissioner of Social Security on the basis of the
records of wages established and maintained by such Commissioner in
accordance with such reports; and
(2)(A) \3/8\ of 1 per centum of the amount of self-employment
income (as defined in section 1402 of the Internal Revenue Code of
1954) reported to the Secretary of the Treasury or his delegate on
tax returns under subtitle F of the Internal Revenue Code of 1954
for any taxable year beginning after December 31, 1956, and before
January 1, 1966, (B) 0.525 of 1 per centum of the amount of self-
employment income (as so defined) so reported for any taxable year
beginning after December 31, 1965, and before January 1, 1968, (C)
0.7125 of 1 per centum of the amount of self-employment income (as
so defined) so reported for any taxable year beginning after
December 31, 1967, and before January 1, 1970, (D) 0.825 of 1 per
centum of the amount of self-employment income (as so defined) so
reported for any taxable year beginning after December 31, 1969, and
before January 1, 1973, (E) 0.795 of 1 per centum of the amount of
self-employment income (as so defined) so reported for any taxable
year beginning after December 31, 1972, and before January 1, 1974,
(F) 0.815 of 1 per centum of the amount of self-employment income
(as so defined) as reported for any taxable year beginning after
December 31, 1973, and before January 1, 1978, (G) 1.090 per centum
of the amount of self-employment income (as so defined) so reported
for any taxable year beginning after December 31, 1977, and before
January 1, 1979, (H) 1.0400 per centum of the amount of self-
employment income (as so defined) so reported for any taxable year
beginning after December 31, 1978, and before January 1, 1980, (I)
0.7775 per centum of the amount of self-employment income (as so
defined) so reported for any taxable year beginning after December
31, 1979, and before January 1, 1981, (J) 0.9750 per centum of the
amount of self-employment income (as so defined) so reported for any
taxable year beginning after December 31, 1980, and before January
1, 1982, (K) 1.2375 per centum of the amount of self-employment
income (as so defined) so reported for any taxable year beginning
after December 31, 1981, and before January 1, 1983, (L) 0.9375 per
centum of the amount of self-employment income (as so defined) so
reported for any taxable year beginning after December 31, 1982, and
before January 1, 1984, (M) 1.00 per centum of the amount of self-
employment income (as so defined) so reported for any taxable year
beginning after December 31, 1983, and before January 1, 1988, (N)
1.06 per centum of the self-employment income (as so defined) so
reported for any taxable year beginning after December 31, 1987, and
before January 1, 1990, (O) 1.20 per centum of the amount of self-
employment income (as so defined) so reported for any taxable year
beginning after December 31, 1989, and before January 1, 1994, (P)
1.88 per centum of the amount of self-employment income (as so
defined) so reported for any taxable year beginning after December
31, 1993, and before January 1, 1997, (Q) 1.70 per centum of the
amount of self-employment income (as so defined) so reported for any
taxable year beginning after December 31, 1996, and before January
1, 2000, and (R) 1.80 per centum of the amount of self-employment
income (as so defined) so reported for any taxable year beginning
after December 31, 1999, which self-employment income shall be
certified by the Commissioner of Social Security on the basis of the
records of self-employment income established and maintained by the
Commissioner of Social Security in accordance with such returns.
(c) Board of Trustees; duties; reports to Congress
With respect to the Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust Fund (hereinafter in
this subchapter called the ``Trust Funds'') there is hereby created a
body to be known as the Board of Trustees of the Trust Funds
(hereinafter in this subchapter called the ``Board of Trustees'') which
Board of Trustees shall be composed of the Commissioner of Social
Security, the Secretary of the Treasury, the Secretary of Labor, and the
Secretary of Health and Human Services, all ex officio, and of two
members of the public (both of whom may not be from the same political
party), who shall be nominated by the President for a term of four years
and subject to confirmation by the Senate. A member of the Board of
Trustees serving as a member of the public and nominated and confirmed
to fill a vacancy occurring during a term shall be nominated and
confirmed only for the remainder of such term. An individual nominated
and confirmed as a member of the public may serve in such position after
the expiration of such member's term until the earlier of the time at
which the member's successor takes office or the time at which a report
of the Board is first issued under paragraph (2) after the expiration of
the member's term. The Secretary of the Treasury shall be the Managing
Trustee of the Board of Trustees (hereinafter in this subchapter called
the ``Managing Trustee''). The Deputy Commissioner of Social Security
shall serve as Secretary of the Board of Trustees. The Board of Trustees
shall meet not less frequently than once each calendar year. It shall be
the duty of the Board of Trustees to--
(1) Hold the Trust Funds;
(2) Report to the Congress not later than the first day of April
of each year on the operation and status of the Trust Funds during
the preceding fiscal year and on their expected operation and status
during the next ensuing five fiscal years;
(3) Report immediately to the Congress whenever the Board of
Trustees is of the opinion that the amount of either of the Trust
Funds is unduly small;
(4) Recommend improvements in administrative procedures and
policies designed to effectuate the proper coordination of the old-
age and survivors insurance and Federal-State unemployment
compensation program; and
(5) Review the general policies followed in managing the Trust
Funds, and recommend changes in such policies, including necessary
changes in the provisions of the law which govern the way in which
the Trust Funds are to be managed.
The report provided for in paragraph (2) of this subsection shall
include a statement of the assets of, and the disbursements made from,
the Trust Funds during the preceding fiscal year, an estimate of the
expected future income to, and disbursements to be made from, the Trust
Funds during each of the next ensuing five fiscal years, and a statement
of the actuarial status of the Trust Funds. Such statement shall include
a finding by the Board of Trustees as to whether the Federal Old-Age and
Survivors Insurance Trust Fund and the Federal Disability Insurance
Trust Fund, individually and collectively, are in close actuarial
balance (as defined by the Board of Trustees). Such report shall include
an actuarial opinion by the Chief Actuary of the Social Security
Administration certifying that the techniques and methodologies used are
generally accepted within the actuarial profession and that the
assumptions and cost estimates used are reasonable. Such report shall
also include an actuarial analysis of the benefit disbursements made
from the Federal Old-Age and Survivors Insurance Trust Fund with respect
to disabled beneficiaries. Such report shall be printed as a House
document of the session of the Congress to which the report is made. A
person serving on the Board of Trustees shall not be considered to be a
fiduciary and shall not be personally liable for actions taken in such
capacity with respect to the Trust Funds.
(d) Investments
It shall be the duty of the Managing Trustee to invest such portion
of the Trust Funds as is not, in his judgment, required to meet current
withdrawals. Such investments may be made only in interest-bearing
obligations of the United States or in obligations guaranteed as to both
principal and interest by the United States. For such purpose such
obligations may be acquired (1) on original issue at the issue price, or
(2) by purchase of outstanding obligations at the market price. The
purposes for which obligations of the United States may be issued under
chapter 31 of title 31 are hereby extended to authorize the issuance at
par of public-debt obligations for purchase by the Trust Funds. Such
obligations issued for purchase by the Trust Funds shall have maturities
fixed with due regard for the needs of the Trust Funds and shall bear
interest at a rate equal to the average market yield (computed by the
Managing Trustee on the basis of market quotations as of the end of the
calendar month next preceding the date of such issue) on all marketable
interest-bearing obligations of the United States then forming a part of
the public debt which are not due or callable until after the expiration
of four years from the end of such calendar month; except that where
such average market yield is not a multiple of one-eighth of 1 per
centum, the rate of interest of such obligations shall be the multiple
of one-eighth of 1 per centum nearest such market yield. Each obligation
issued for purchase by the Trust Funds under this subsection shall be
evidenced by a paper instrument in the form of a bond, note, or
certificate of indebtedness issued by the Secretary of the Treasury
setting forth the principal amount, date of maturity, and interest rate
of the obligation, and stating on its face that the obligation shall be
incontestable in the hands of the Trust Fund to which it is issued, that
the obligation is supported by the full faith and credit of the United
States, and that the United States is pledged to the payment of the
obligation with respect to both principal and interest. The Managing
Trustee may purchase other interest-bearing obligations of the United
States or obligations guaranteed as to both principal and interest by
the United States, on original issue or at the market price, only where
he determines that the purchase of such other obligations is in the
public interest.
(e) Sale of acquired obligations
Any obligations acquired by the Trust Funds (except public-debt
obligations issued exclusively to the Trust Funds) may be sold by the
Managing Trustee at the market price, and such public-debt obligations
may be redeemed at par plus accrued interest.
(f) Proceeds from sale or redemption of obligations; interest
The interest on, and the proceeds from the sale or redemption of,
any obligations held in the Federal Old-Age and Survivors Insurance
Trust Fund and the Federal Disability Insurance Trust Fund shall be
credited to and form a part of the Federal Old-Age and Survivors
Insurance Trust Fund and the Disability Insurance Trust Fund,
respectively. Payment from the general fund of the Treasury to either of
the Trust Funds of any such interest or proceeds shall be in the form of
paper checks drawn on such general fund to the order of such Trust Fund.
(g) Payments into Treasury
(1)(A) The Managing Trustee of the Trust Funds (which for purposes
of this paragraph shall include also the Federal Hospital Insurance
Trust Fund and the Federal Supplementary Medical Insurance Trust Fund
established by subchapter XVIII of this chapter) is directed to pay from
the Trust Funds into the Treasury--
(i) \1\ the amounts estimated by the Managing Trustee, the
Commissioner of Social Security, and the Secretary of Health and
Human Services which will be expended, out of moneys appropriated
from the general fund in the Treasury, during a three-month period
by the Department of Health and Human Services for the
administration of subchapter XVIII of this chapter, and by the
Department of the Treasury for the administration of subchapters II
and XVIII of this chapter and chapters 2 and 21 of the Internal
Revenue Code of 1986, less
---------------------------------------------------------------------------
\1\ So in original. Two cls. (i) and (ii) have been enacted.
---------------------------------------------------------------------------
(ii) \1\ the amounts estimated (pursuant to the applicable
method prescribed under paragraph (4) of this subsection) by the
Commissioner of Social Security which will be expended, out of
moneys made available for expenditures from the Trust Funds, during
such three-month period to cover the cost of carrying out the
functions of the Social Security Administration, specified in
section 432 of this title, which relate to the administration of
provisions of the Internal Revenue Code of 1986 other than those
referred to in clause (i) and the functions of the Social Security
Administration in connection with the withholding of taxes from
benefits, as described in section 407(c) of this title, pursuant to
requests by persons entitled to such benefits or such persons'
representative payee.
Such payments shall be carried into the Treasury as the net amount of
repayments due the general fund account for reimbursement of expenses
incurred in connection with the administration of subchapters II and
XVIII of this chapter and chapters 2 and 21 of the Internal Revenue Code
of 1986. A final accounting of such payments for any fiscal year shall
be made at the earliest practicable date after the close thereof. There
are hereby authorized to be made available for expenditure, out of any
or all of the Trust Funds, such amounts as the Congress may deem
appropriate to pay the costs of the part of the administration of this
subchapter, subchapter VIII of this chapter, subchapter XVI of this
chapter, and subchapter XVIII of this chapter for which the Commissioner
of Social Security is responsible, the costs of subchapter XVIII of this
chapter for which the Secretary of Health and Human Services is
responsible, and the costs of carrying out the functions of the Social
Security Administration, specified in section 432 of this title, which
relate to the administration of provisions of the Internal Revenue Code
of 1986 other than those referred to in clause (i) of the first sentence
of this subparagraph and the functions of the Social Security
Administration in connection with the withholding of taxes from
benefits, as described in section 407(c) of this title, pursuant to
requests by persons entitled to such benefits or such persons'
representative payee. Of the amounts authorized to be made available out
of the Federal Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund under the preceding sentence,
there are hereby authorized to be made available from either or both of
such Trust Funds for continuing disability reviews--
(i) \1\ for fiscal year 1996, $260,000,000;
(ii) \1\ for fiscal year 1997, $360,000,000;
(iii) for fiscal year 1998, $570,000,000;
(iv) for fiscal year 1999, $720,000,000;
(v) for fiscal year 2000, $720,000,000;
(vi) for fiscal year 2001, $720,000,000; and
(viii) \2\ for fiscal year 2002, $720,000,000.
---------------------------------------------------------------------------
\2\ So in original. Probably should be ``(vii)''.
For purposes of this subparagraph, the term ``continuing disability
review'' means a review conducted pursuant to section 421(i) of this
title and a review or disability eligibility redetermination conducted
to determine the continuing disability and eligibility of a recipient of
benefits under the supplemental security income program under subchapter
XVI of this chapter, including any review or redetermination conducted
pursuant to section 207 or 208 of the Social Security Independence and
Program Improvements Act of 1994 (Public Law 103-296).
(B) After the close of each fiscal year--
(i) the Commissioner of Social Security shall determine--
(I) the portion of the costs, incurred during such fiscal
year, of administration of this subchapter, subchapter VIII of
this chapter, subchapter XVI of this chapter, and subchapter
XVIII of this chapter for which the Commissioner is responsible
and of carrying out the functions of the Social Security
Administration, specified in section 432 of this title, which
relate to the administration of provisions of the Internal
Revenue Code of 1986 (other than those referred to in clause (i)
of the first sentence of subparagraph (A)) and the functions of
the Social Security Administration in connection with the
withholding of taxes from benefits, as described in section
407(c) of this title, pursuant to requests by persons entitled
to such benefits or such persons' representative payee, which
should have been borne by the general fund of the Treasury,
(II) the portion of such costs which should have been borne
by the Federal Old-Age and Survivors Insurance Trust Fund,
(III) the portion of such costs which should have been borne
by the Federal Disability Insurance Trust Fund,
(IV) the portion of such costs which should have been borne
by the Federal Hospital Insurance Trust Fund, and
(V) the portion of such costs which should have been borne
by the Federal Supplementary Medical Insurance Trust Fund, and
(ii) the Secretary of Health and Human Services shall
determine--
(I) the portion of the costs, incurred during such fiscal
year, of the administration of subchapter XVIII of this chapter
for which the Secretary is responsible, which should have been
borne by the general fund of the Treasury,
(II) the portion of such costs which should have been borne
by the Federal Hospital Insurance Trust Fund, and
(III) the portion of such costs which should have been borne
by the Federal Supplementary Medical Insurance Trust Fund.
(C) After the determinations under subparagraph (B) have been made
for any fiscal year, the Commisioner \3\ of Social Security and the
Secretary shall each certify to the Managing Trustee the amounts, if
any, which should be transferred from one to any of the other such Trust
Funds and the amounts, if any, which should be transferred between the
Trust Funds (or one of the Trust Funds) and the general fund of the
Treasury, in order to ensure that each of the Trust Funds and the
general fund of the Treasury have borne their proper share of the costs,
incurred during such fiscal year, for--
---------------------------------------------------------------------------
\3\ So in original. Probably should be ``Commissioner''.
---------------------------------------------------------------------------
(i) the parts of the administration of this subchapter,
subchapter VIII of this chapter, subchapter XVI of this chapter, and
subchapter XVIII of this chapter for which the Commissioner of
Social Security is responsible,
(ii) the parts of the administration of subchapter XVIII of this
chapter for which the Secretary is responsible, and
(iii) carrying out the functions of the Social Security
Administration, specified in section 432 of this title, which relate
to the administration of provisions of the Internal Revenue Code of
1986 (other than those referred to in clause (i) of the first
sentence of subparagraph (A)) and the functions of the Social
Security Administration in connection with the withholding of taxes
from benefits, as described in section 407(c) of this title,
pursuant to requests by persons entitled to such benefits or such
persons' representative payee.
The Managing Trustee shall transfer any such amounts in accordance with
any certification so made.
(D) The determinations required under subclauses (IV) and (V) of
subparagraph (B)(i) shall be made in accordance with the cost allocation
methodology in existence on August 15, 1994, until such time as the
methodology for making the determinations required under such subclauses
is revised by agreement of the Commissioner and the Secretary, except
that the determination of the amounts to be borne by the general fund of
the Treasury with respect to expenditures incurred in carrying out the
functions of the Social Security Administration specified in section 432
of this title and the functions of the Social Security Administration in
connection with the withholding of taxes from benefits as described in
section 407(c) of this title shall be made pursuant to the applicable
method prescribed under paragraph (4).
(2) The Managing Trustee is directed to pay from time to time from
the Trust Funds into the Treasury the amount estimated by him as taxes
imposed under section 3101(a) of the Internal Revenue Code of 1986 which
are subject to refund under section 6413(c) of such Code with respect to
wages (as defined in section 3121 of such Code). Such taxes shall be
determined on the basis of the records of wages maintained by the
Commissioner of Social Security in accordance with the wages reported to
the Secretary of the Treasury or his delegate pursuant to subtitle F of
such Code, and the Commissioner of Social Security shall furnish the
Managing Trustee such information as may be required by the Trustee for
such purpose. The payments by the Managing Trustee shall be covered into
the Treasury as repayments to the account for refunding internal revenue
collections. Payments pursuant to the first sentence of this paragraph
shall be made from the Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust Fund in the ratio in
which amounts were appropriated to such Trust Funds under clause (3) of
subsection (a) of this section and clause (1) of subsection (b) of this
section.
(3) Repayments made under paragraph (1) or (2) of this subsection
shall not be available for expenditures but shall be carried to the
surplus fund of the Treasury. If it subsequently appears that the
estimates under either such paragraph in any particular period were too
high or too low, appropriate adjustments shall be made by the Managing
Trustee in future payments.
(4) The Commissioner of Social Security shall utilize the method
prescribed pursuant to this paragraph, as in effect immediately before
August 15, 1994, for determining the costs which should be borne by the
general fund of the Treasury of carrying out the functions of the
Commissioner, specified in section 432 of this title, which relate to
the administration of provisions of the Internal Revenue Code of 1986
(other than those referred to in clause (i) of the first sentence of
paragraph (1)(A)). The Board of Trustees of such Trust Funds shall
prescribe the method of determining the costs which should be borne by
the general fund in the Treasury of carrying out the functions of the
Social Security Administration in connection with the withholding of
taxes from benefits, as described in section 407(c) of this title,
pursuant to requests by persons entitled to such benefits or such
persons' representative payee. If at any time or times thereafter the
Boards of Trustees of such Trust Funds consider such action advisable,
they may modify the method of determining such costs.
(h) Benefit payments
Benefit payments required to be made under section 423 of this
title, and benefit payments required to be made under subsection (b),
(c), or (d) of section 402 of this title to individuals entitled to
benefits on the basis of the wages and self-employment income of an
individual entitled to disability insurance benefits, shall be made only
from the Federal Disability Insurance Trust Fund. All other benefit
payments required to be made under this subchapter (other than section
426 of this title) shall be made only from the Federal Old-Age and
Survivors Insurance Trust Fund.
(i) Gifts and bequests
(1) The Managing Trustee may accept on behalf of the United States
money gifts and bequests made unconditionally to the Federal Old-Age and
Survivors Insurance Trust Fund, the Federal Disability Insurance Trust
Fund, the Federal Hospital Insurance Trust Fund, or the Federal
Supplementary Medical Insurance Trust Fund or to the Social Security
Administration, the Department of Health and Human Services, or any part
or officer thereof, for the benefit of any of such Funds or any activity
financed through such Funds.
(2) Any such gift accepted pursuant to the authority granted in
paragraph (1) of this subsection shall be deposited in--
(A) the specific trust fund designated by the donor or
(B) if the donor has not so designated, the Federal Old-Age and
Survivors Insurance Trust Fund.
(j) Travel expenses
There are authorized to be made available for expenditure, out of
the Federal Old-Age and Survivors Insurance Trust Fund, or the Federal
Disability Insurance Trust Fund (as determined appropriate by the
Commissioner of Social Security), such amounts as are required to pay
travel expenses, either on an actual cost or commuted basis, to
individuals for travel incident to medical examinations requested by the
Commissioner of Social Security in connection with disability
determinations under this subchapter, and to parties, their
representatives, and all reasonably necessary witnesses for travel
within the United States (as defined in section 410(i) of this title) to
attend reconsideration interviews and proceedings before administrative
law judges with respect to any determination under this subchapter. The
amount available under the preceding sentence for payment for air travel
by any person shall not exceed the coach fare for air travel between the
points involved unless the use of first-class accommodations is required
(as determined under regulations of the Commissioner of Social Security)
because of such person's health condition or the unavailability of
alternative accommodations; and the amount available for payment for
other travel by any person shall not exceed the cost of travel (between
the points involved) by the most economical and expeditious means of
transportation appropriate to such person's health condition, as
specified in such regulations. The amount available for payment under
this subsection for travel by a representative to attend an
administrative proceeding before an administrative law judge or other
adjudicator shall not exceed the maximum amount allowable under this
subsection for such travel originating within the geographic area of the
office having jurisdiction over such proceeding.
(k) Experiment and demonstration project expenditures
Expenditures made for experiments and demonstration projects under
section 434 of this title shall be made from the Federal Disability
Insurance Trust Fund and the Federal Old-Age and Survivors Insurance
Trust Fund, as determined appropriate by the Commissioner of Social
Security.
(l) Interfund borrowing
(1) If at any time prior to January 1988 the Managing Trustee
determines that borrowing authorized under this subsection is
appropriate in order to best meet the need for financing the benefit
payments from the Federal Old-Age and Survivors Insurance Trust Fund or
the Federal Disability Insurance Trust Fund, the Managing Trustee may
borrow such amounts as he determines to be appropriate from the other
such Trust Fund, or, subject to paragraph (5), from the Federal Hospital
Insurance Trust Fund established under section 1395i of this title, for
transfer to and deposit in the Trust Fund whose need for financing is
involved.
(2) In any case where a loan has been made to a Trust Fund under
paragraph (1), there shall be transferred on the last day of each month
after such loan is made, from the borrowing Trust Fund to the lending
Trust Fund, the total interest accrued to such day with respect to the
unrepaid balance of such loan at a rate equal to the rate which the
lending Trust Fund would earn on the amount involved if the loan were an
investment under subsection (d) of this section (even if such an
investment would earn interest at a rate different than the rate earned
by investments redeemed by the lending fund in order to make the loan).
(3)(A) If in any month after a loan has been made to a Trust Fund
under paragraph (1), the Managing Trustee determines that the assets of
such Trust Fund are sufficient to permit repayment of all or part of any
loans made to such Fund under paragraph (1), he shall make such
repayments as he determines to be appropriate.
(B)(i) If on the last day of any year after a loan has been made
under paragraph (1) by the Federal Hospital Insurance Trust Fund to the
Federal Old-Age and Survivors Insurance Trust Fund or the Federal
Disability Insurance Trust Fund, the Managing Trustee determines that
the OASDI trust fund ratio exceeds 15 percent, he shall transfer from
the borrowing Trust Fund to the Federal Hospital Insurance Trust Fund an
amount that--
(I) together with any amounts transferred from another borrowing
Trust Fund under this paragraph for such year, will reduce the OASDI
trust fund ratio to 15 percent; and
(II) does not exceed the outstanding balance of such loan.
(ii) Amounts required to be transferred under clause (i) shall be
transferred on the last day of the first month of the year succeeding
the year in which the determination described in clause (i) is made.
(iii) For purposes of this subparagraph, the term ``OASDI trust fund
ratio'' means, with respect to any calendar year, the ratio of--
(I) the combined balance in the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability Insurance Trust
Fund, as of the last day of such calendar year, to
(II) the amount estimated by the Commissioner of Social Security
to be the total amount to be paid from the Federal Old-Age and
Survivors Insurance Trust Fund and the Federal Disability Insurance
Trust Fund during the calendar year following such calendar year for
all purposes authorized by this section (other than payments of
interest on, and repayments of, loans from the Federal Hospital
Insurance Trust Fund under paragraph (1), but excluding any transfer
payments between such trust funds and reducing the amount of any
transfer to the Railroad Retirement Account by the amount of any
transfers into either such trust fund from that Account).
(C)(i) The full amount of all loans made under paragraph (1)
(whether made before or after January 1, 1983) shall be repaid at the
earliest feasible date and in any event no later than December 31, 1989.
(ii) For the period after December 31, 1987, and before January 1,
1990, the Managing Trustee shall transfer each month to the Federal
Hospital Insurance Trust Fund from any Trust Fund with any amount
outstanding on a loan made from the Federal Hospital Insurance Trust
Fund under paragraph (1) an amount not less than an amount equal to (I)
the amount owed to the Federal Hospital Insurance Trust Fund by such
Trust Fund at the beginning of such month (plus the interest accrued on
the outstanding balance of such loan during such month), divided by (II)
the number of months elapsing after the preceding month and before
January 1990. The Managing Trustee may, during this period, transfer
larger amounts than prescribed by the preceding sentence.
(4) The Board of Trustees shall make a timely report to the Congress
of any amounts transferred (including interest payments) under this
subsection.
(5)(A) No amounts may be borrowed from the Federal Hospital
Insurance Trust Fund under paragraph (1) during any month if the
Hospital Insurance Trust Fund ratio for such month is less than 10
percent.
(B) For purposes of this paragraph, the term ``Hospital Insurance
Trust Fund ratio'' means, with respect to any month, the ratio of--
(i) the balance in the Federal Hospital Insurance Trust Fund,
reduced by the outstanding amount of any loan (including interest
thereon) theretofore made to such Trust Fund under this subsection,
as of the last day of the second month preceding such month, to
(ii) the amount obtained by multiplying by twelve the total
amount which (as estimated by the Secretary) will be paid from the
Federal Hospital Insurance Trust Fund during the month for which
such ratio is to be determined (other than payments of interest on,
or repayments of loans from another Trust Fund under this
subsection), and reducing the amount of any transfers to the
Railroad Retirement Account by the amount of any transfer into the
Hospital Insurance Trust Fund from that Account.
(m) Accounting for unnegotiated benefit checks
(1) The Secretary of the Treasury shall implement procedures to
permit the identification of each check issued for benefits under this
subchapter that has not been presented for payment by the close of the
sixth month following the month of its issuance.
(2) The Secretary of the Treasury shall, on a monthly basis, credit
each of the Trust Funds for the amount of all benefit checks (including
interest thereon) drawn on such Trust Fund more than 6 months previously
but not presented for payment and not previously credited to such Trust
Fund, to the extent provided in advance in appropriation Acts.
(3) If a benefit check is presented for payment to the Treasury and
the amount thereof has been previously credited pursuant to paragraph
(2) to one of the Trust Funds, the Secretary of the Treasury shall
nevertheless pay such check, if otherwise proper, recharge such Trust
Fund, and notify the Commissioner of Social Security.
(4) A benefit check bearing a current date may be issued to an
individual who did not negotiate the original benefit check and who
surrenders such check for cancellation if the Secretary of the Treasury
determines it is necessary to effect proper payment of benefits.
(Aug. 14, 1935, ch. 531, title II, Sec. 201, 49 Stat. 622; Aug. 10,
1939, ch. 666, title II, Sec. 201, 53 Stat. 1362; Feb. 25, 1944, ch. 63,
title IX, Sec. 902, 58 Stat. 93; Aug. 28, 1950, ch. 809, title I,
Sec. 109(a), 64 Stat. 521; Aug. 1, 1956, ch. 836, title I, Sec. 103(e),
70 Stat. 819; Pub. L. 85-840, title II, Sec. 205(a), Aug. 28, 1958, 72
Stat. 1021; Pub. L. 86-346, title I, Sec. 104(2), Sept. 22, 1959, 73
Stat. 622; Pub. L. 86-778, title VII, Sec. 701(a)-(e), Sept. 13, 1960,
74 Stat. 992, 993; Pub. L. 89-97, title I, Sec. 108(a), title III,
Secs. 305, 327, July 30, 1965, 79 Stat. 338, 370, 400; Pub. L. 90-248,
title I, Secs. 110, 169, Jan. 2, 1968, 81 Stat. 837, 875; Pub. L. 91-
172, title X, Sec. 1005, Dec. 30, 1969, 83 Stat. 741; Pub. L. 92-336,
title II, Sec. 205, July 1, 1972, 86 Stat. 422; Pub. L. 92-603, title I,
Secs. 132(a)-(c), 136, title III, Sec. 305(a), Oct. 30, 1972, 86 Stat.
1360, 1364, 1484; Pub. L. 93-233, Sec. 7, Dec. 31, 1973, 87 Stat. 955;
Pub. L. 94-202, Sec. 8(d), Jan. 2, 1976, 89 Stat. 1137; Pub. L. 95-216,
title I, Sec. 102(a), Dec. 20, 1977, 91 Stat. 1513; Pub. L. 96-265,
title III, Sec. 310(a), title V, Sec. 505(a)(5), June 9, 1980, 94 Stat.
459, 474; Pub. L. 96-403, Sec. 1, Oct. 9, 1980, 94 Stat. 1709; Pub. L.
97-123, Sec. 1(a), Dec. 29, 1981, 95 Stat. 1659; Pub. L. 98-21, title I,
Secs. 126, 141(a), 142(a)(1), (2)(A), (3), (4), 152(a), 154(a), title
III, Sec. 341(a), Apr. 20, 1983, 97 Stat. 91, 98-100, 105, 107, 135;
Pub. L. 98-369, div. B, title VI, Secs. 2661(a), 2663(a)(1),
(j)(2)(A)(i), July 18, 1984, 98 Stat. 1156, 1160, 1170; Pub. L. 99-272,
title IX, Sec. 9213(a), Apr. 7, 1986, 100 Stat. 180; Pub. L. 100-360,
title II, Sec. 212(c)(1), July 1, 1988, 102 Stat. 741; Pub. L. 100-647,
title VIII, Sec. 8005(a), Nov. 10, 1988, 102 Stat. 3781; Pub. L. 101-
234, title II, Sec. 202(a), Dec. 13, 1989, 103 Stat. 1981; Pub. L. 101-
508, title V, Secs. 5106(c), 5115(a), title XIII, Sec. 13304, Nov. 5,
1990, 104 Stat. 1388-268, 1388-274, 1388-627; Pub. L. 103-296, title I,
Sec. 107(b), title III, Secs. 301(a), (b), 321(a)(1), (c)(1)(A)(i),
(B)(i), (C), Aug. 15, 1994, 108 Stat. 1478, 1517, 1535, 1537; Pub. L.
103-387, Sec. 3(a), (b), Oct. 22, 1994, 108 Stat. 4074, 4075; Pub. L.
104-121, title I, Sec. 103(a), Mar. 29, 1996, 110 Stat. 848; Pub. L.
105-277, div. J, title IV, Sec. 4005(b), Oct. 21, 1998, 112 Stat. 2681-
911; Pub. L. 106-169, title II, Sec. 251(b)(1), Dec. 14, 1999, 113 Stat.
1854; Pub. L. 106-170, title III, Sec. 301(b)(1)(B), Dec. 17, 1999, 113
Stat. 1902.)
References in Text
Subchapter A of chapter 9 of the Internal Revenue Code of 1939,
referred to in subsec. (a)(1) to (3), was comprised of sections 1400 to
1432, and was repealed (subject to certain exceptions) by section
7851(a)(3) of the Internal Revenue Code of 1986.
Sections 1426 and 1420(c) of the Internal Revenue Code of 1939,
referred to in subsec. (a)(3), were a part of subchapter A of chapter 9
of the 1939 Code. See above.
Internal Revenue Code of 1954, referred to in subsecs. (a)(3), (4)
and (b)(1)(A), (2)(A), redesignated Internal Revenue Code of 1986 by
Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095.
Subchapter E of chapter 1 of the Internal Revenue Code of 1939,
referred to in subsec. (a)(4), was comprised of sections 480 to 482, and
was repealed (subject to certain exceptions) by section 7851(a)(1)(A) of
the Internal Revenue Code of 1986.
Section 481 of the Internal Revenue Code of 1939, referred to in
subsec. (a)(4), was a part of subchapter E of chapter 1 of the 1939
Code. See above.
For provision deeming a reference in other laws to a provision of
the 1939 Code as a reference to the corresponding provision of the 1986
Code, see section 7852(b) if the 1986 Code. For table of comparisons of
the 1939 Code to the 1986 Code, see table preceding section 1 of Title
26, Internal Revenue Code. The Internal Revenue Code of 1986 is
classified generally to Title 26.
Chapters 2 and 21 and subtitle F of the Internal Revenue Code of
1986, referred to in subsec. (g)(1)(A), (2), are classified to sections
1401 et seq., 3101 et seq., and 6001 et seq., respectively, of Title 26,
Internal Revenue Code.
Section 207 or 208 of the Social Security Independence and Program
Improvements Act of 1994, referred to in subsec. (g)(1)(A), are sections
207 and 208 of Pub. L. 103-296. Section 208 of Pub. L. 103-296 is set
out as a note under section 1382 of this title. Section 207 of Pub. L.
103-296 was set out as a note under section 1382 of this title prior to
repeal by Pub. L. 104-193, title II, Sec. 212(b)(2), (d), Aug. 22, 1996,
110 Stat. 2193, 2194.
Amendments
1999--Subsec. (g)(1)(A). Pub. L. 106-169, Sec. 251(b)(1)(A),
inserted ``subchapter VIII of this chapter,'' after ``this subchapter,''
in fourth sentence.
Subsec. (g)(1)(B)(i)(I). Pub. L. 106-169, Sec. 251(b)(1)(B),
inserted ``subchapter VIII of this chapter,'' after ``this
subchapter,''.
Subsec. (g)(1)(C)(i). Pub. L. 106-169, Sec. 251(b)(1)(C), inserted
``subchapter VIII of this chapter,'' after ``this subchapter,''.
Subsec. (k). Pub. L. 106-170 substituted ``section 434 of this
title'' for ``section 505(a) of the Social Security Disability
Amendments of 1980''.
1998--Subsec. (g)(1)(A). Pub. L. 105-277, Sec. 4005(b)(2), which
directed the amendment of subsec. (g) by inserting ``and the functions
of the Social Security Administration in connection with the withholding
of taxes from benefits, as described in section 407(c) of this title,
pursuant to requests by persons entitled to such benefits or such
persons' representative payee'' before period at end of paragraph
(1)(A), was executed by inserting this material after ``the first
sentence of this subparagraph'' in provisions following cl. (ii) to
reflect the probable intent of Congress.
Subsec. (g)(1)(A)(ii). Pub. L. 105-277, Sec. 4005(b)(1), inserted
before period at end ``and the functions of the Social Security
Administration in connection with the withholding of taxes from
benefits, as described in section 407(c) of this title, pursuant to
requests by persons entitled to such benefits or such persons'
representative payee''.
Subsec. (g)(1)(B)(i)(I). Pub. L. 105-277, Sec. 4005(b)(3),
substituted ``subparagraph (A)) and the functions of the Social Security
Administration in connection with the withholding of taxes from
benefits, as described in section 407(c) of this title, pursuant to
requests by persons entitled to such benefits or such persons'
representative payee,'' for ``subparagraph (A)),''.
Subsec. (g)(1)(C)(iii). Pub. L. 105-277, Sec. 4005(b)(4), inserted
before period at end ``and the functions of the Social Security
Administration in connection with the withholding of taxes from
benefits, as described in section 407(c) of this title, pursuant to
requests by persons entitled to such benefits or such persons'
representative payee''.
Subsec. (g)(1)(D). Pub. L. 105-277, Sec. 4005(b)(5), inserted ``and
the functions of the Social Security Administration in connection with
the withholding of taxes from benefits as described in section 407(c) of
this title'' after ``section 432 of this title''.
Subsec. (g)(4). Pub. L. 105-277, Sec. 4005(b)(6), inserted after
first sentence ``The Board of Trustees of such Trust Funds shall
prescribe the method of determining the costs which should be borne by
the general fund in the Treasury of carrying out the functions of the
Social Security Administration in connection with the withholding of
taxes from benefits, as described in section 407(c) of this title,
pursuant to requests by persons entitled to such benefits or such
persons' representative payee.''
1996--Subsec. (g)(1)(A). Pub. L. 104-121 inserted at end ``Of the
amounts authorized to be made available out of the Federal Old-Age and
Survivors Insurance Trust Fund and the Federal Disability Insurance
Trust Fund under the preceding sentence, there are hereby authorized to
be made available from either or both of such Trust Funds for continuing
disability reviews--
``(i) for fiscal year 1996, $260,000,000;
``(ii) for fiscal year 1997, $360,000,000;
``(iii) for fiscal year 1998, $570,000,000;
``(iv) for fiscal year 1999, $720,000,000;
``(v) for fiscal year 2000, $720,000,000;
``(vi) for fiscal year 2001, $720,000,000; and
``(viii) for fiscal year 2002, $720,000,000.
For purposes of this subparagraph, the term `continuing disability
review' means a review conducted pursuant to section 421(i) of this
title and a review or disability eligibility redetermination conducted
to determine the continuing disability and eligibility of a recipient of
benefits under the supplemental security income program under subchapter
XVI of this chapter, including any review or redetermination conducted
pursuant to section 207 or 208 of the Social Security Independence and
Program Improvements Act of 1994 (Public Law 103-296).''
1994--Subsec. (a). Pub. L. 103-296, Sec. 321(a)(1), in closing
provisions substituted ``and'' for ``and and'' before ``such Trust Fund
shall pay''.
Subsec. (a)(3). Pub. L. 103-296, Sec. 107(b)(1), (2), substituted
``Commissioner of Social Security'' and ``such Commissioner'' for
``Secretary of Health and Human Services'' and ``such Secretary'',
respectively.
Subsec. (a)(4). Pub. L. 103-296, Sec. 107(b)(1), substituted
``Commissioner of Social Security'' for ``Secretary of Health and Human
Services'' in two places.
Subsec. (b)(1). Pub. L. 103-296, Sec. 107(b)(1), (2), substituted
``Commissioner of Social Security'' and ``such Commissioner'' for
``Secretary of Health and Human Services'' and ``such Secretary'',
respectively.
Subsec. (b)(1)(O) to (R). Pub. L. 103-387, Sec. 3(a), substituted
``(O) 1.20 per centum of the wages (as so defined) paid after December
31, 1989, and before January 1, 1994, and so reported, (P) 1.88 per
centum of the wages (as so defined) paid after December 31, 1993, and
before January 1, 1997, and so reported, (Q) 1.70 per centum of the
wages (as so defined) paid after December 31, 1996, and before January
1, 2000, and so reported, and (R) 1.80 per centum of the wages (as so
defined) paid after December 31, 1999, and so reported,'' for ``(O) 1.20
per centum of the wages (as so defined) paid after December 31, 1989,
and before January 1, 2000, and so reported, and (P) 1.42 per centum of
the wages (as so defined) paid after December 31, 1999, and so
reported,''.
Subsec. (b)(2). Pub. L. 103-296, Sec. 107(b)(1), substituted
``Commissioner of Social Security'' for ``Secretary of Health and Human
Services'' in two places.
Subsec. (b)(2)(O) to (R). Pub. L. 103-387, Sec. 3(b), substituted
``(O) 1.20 per centum of the amount of self-employment income (as so
defined) so reported for any taxable year beginning after December 31,
1989, and before January 1, 1994, (P) 1.88 per centum of the amount of
self-employment income (as so defined) so reported for any taxable year
beginning after December 31, 1993, and before January 1, 1997, (Q) 1.70
per centum of the amount of self-employment income (as so defined) so
reported for any taxable year beginning after December 31, 1996, and
before January 1, 2000, and (R) 1.80 per centum of the amount of self-
employment income (as so defined) so reported for any taxable year
beginning after December 31, 1999,'' for ``(O) 1.20 per centum of the
amount of self-employment income (as so defined) so reported for any
taxable year beginning after December 31, 1989, and before January 1,
2000, and (P) 1.42 per centum of the self-employment income (as so
defined) so reported for any taxable year beginning after December 31,
1999,''.
Subsec. (c). Pub. L. 103-296, Sec. 107(b)(3), in introductory
provisions, inserted ``the Commissioner of Social Security,'' after
``shall be composed of'' and inserted ``Deputy'' before ``Commissioner
of Social Security shall serve''.
Subsec. (d). Pub. L. 103-296, Sec. 301(a), inserted after fifth
sentence ``Each obligation issued for purchase by the Trust Funds under
this subsection shall be evidenced by a paper instrument in the form of
a bond, note, or certificate of indebtedness issued by the Secretary of
the Treasury setting forth the principal amount, date of maturity, and
interest rate of the obligation, and stating on its face that the
obligation shall be incontestable in the hands of the Trust Fund to
which it is issued, that the obligation is supported by the full faith
and credit of the United States, and that the United States is pledged
to the payment of the obligation with respect to both principal and
interest.''
Subsec. (f). Pub. L. 103-296, Sec. 301(b), inserted at end ``Payment
from the general fund of the Treasury to either of the Trust Funds of
any such interest or proceeds shall be in the form of paper checks drawn
on such general fund to the order of such Trust Fund.''
Subsec. (g)(1)(A). Pub. L. 103-296, Sec. 107(b)(4)(C), in text as
amended by Pub. L. 103-296, Sec. 321(c)(1)(A)(i)(III), substituted
``subchapters II and XVIII'' for ``subchapters II, XVI, and XVIII'' in
second sentence and amended last sentence generally. Prior to amendment,
last sentence read as follows: ``There are hereby authorized to be made
available for expenditure, out of any or all of the Trust Funds, such
amounts as the Congress may deem appropriate to pay the costs of the
part of the administration of this subchapter, subchapter XVI, and
subchapter XVIII of this chapter for which the Secretary of Health and
Human Services is responsible and of carrying out the functions of the
Department of Health and Human Services, specified in section 432 of
this title, which relate to the administration of provisions of the
Internal Revenue Code of 1986 other than those referred to in clause (i)
of the first sentence of this subparagraph.''
Pub. L. 103-296, Sec. 321(c)(1)(A)(i)(III), substituted ``chapters 2
and 21 of the Internal Revenue Code of 1986'' for ``subchapter E of
chapter 1 and subchapter A of chapter 9 of the Internal Revenue Code of
1939, and chapters 2 and 21 of the Internal Revenue Code of 1954'' in
second sentence and ``1986 other'' for ``1954 other'' in last sentence.
Subsec. (g)(1)(A)(i). Pub. L. 103-296, Sec. 321(c)(1)(A)(i)(I),
substituted ``and chapters 2 and 21 of the Internal Revenue Code of
1986'' for ``and subchapter E of chapter 1 and subchapter A of chapter 9
of the Internal Revenue Code of 1939, and chapters 2 and 21 of the
Internal Revenue Code of 1954''.
Pub. L. 103-296, Sec. 107(b)(4)(A), substituted ``by the Managing
Trustee, the Commissioner of Social Security, and the Secretary of
Health and Human Services'' for ``by him and the Secretary of Health and
Human Services'' and ``by the Department of Health and Human Services
for the administration of subchapter XVIII of this chapter, and by the
Department of the Treasury for the administration of subchapters II and
XVIII of this chapter'' for ``by the Department of Health and Human
Services and the Treasury Department for the administration of
subchapters II, XVI, and XVIII of this chapter''.
Subsec. (g)(1)(A)(ii). Pub. L. 103-296, Sec. 321(c)(1)(A)(i)(II),
substituted ``Internal Revenue Code of 1986'' for ``Internal Revenue
Code of 1954''.
Pub. L. 103-296, Sec. 107(b)(4)(B), substituted ``applicable method
prescribed under paragraph (4)'' for ``method prescribed by the Board of
Trustees under paragraph (4)'', ``Commissioner of Social Security'' for
``Secretary of Health and Human Services'', and ``Social Security
Administration'' for ``Department of Health and Human Services''.
Subsec. (g)(1)(B). Pub. L. 103-296, Sec. 107(b)(4)(A), added subpar.
(B) and struck out former subpar. (B), as amended by Pub. L. 103-296,
Sec. 321(c)(1)(A)(i)(IV), which read as follows: ``After the close of
each fiscal year the Secretary of Health and Human Services shall
determine the portion of the costs, incurred during such fiscal year, of
administration of this subchapter, subchapter XVI, and subchapter XVIII
of this chapter and of carrying out the functions of the Department of
Health and Human Services, specified in section 432 of this title, which
relate to the administration of provisions of the Internal Revenue Code
of 1986 (other than those referred to in clause (i) of the first
sentence of subparagraph (A)), which should have been borne by the
general fund in the Treasury and the portion of such costs which should
have been borne by each of the Trust Funds; except that the
determination of the amounts to be borne by the general fund in the
Treasury with respect to expenditures incurred in carrying out such
functions specified in section 432 of this title shall be made pursuant
to the method prescribed by the Board of Trustees under paragraph (4) of
this subsection. After such determination has been made, the Secretary
of Health and Human Services shall certify to the Managing Trustee the
amounts, if any, which should be transferred from one to any of the
other of such Trust Funds and the amounts, if any, which should be
transferred between the Trust Funds (or one of the Trust Funds) and the
general fund in the Treasury, in order to insure that each of the Trust
Funds and the general fund in the Treasury have borne their proper share
of the costs, incurred during such fiscal year, for the part of the
administration of this subchapter, subchapter XVI, and subchapter XVIII
of this chapter for which the Secretary of Health and Human Services is
responsible and of carrying out the functions of the Department of
Health and Human Services, specified in section 432 of this title, which
relate to the administration of provisions of the Internal Revenue Code
of 1986 (other than those referred to in clause (i) of the first
sentence of subparagraph (A)). The Managing Trustee is authorized and
directed to transfer any such amounts in accordance with any
certification so made.''
Pub. L. 103-296, Sec. 321(c)(1)(A)(i)(IV), substituted ``Internal
Revenue Code of 1986'' for ``Internal Revenue Code of 1954'' in two
places.
Subsec. (g)(1)(C), (D). Pub. L. 103-296, Sec. 107(b)(4)(A), added
subpars. (C) and (D).
Subsec. (g)(2). Pub. L. 103-296, Sec. 321(c)(1)(B)(i), in first
sentence substituted ``section 3101(a) of the Internal Revenue Code of
1986 which are subject to refund under section 6413(c) of such Code with
respect to wages (as defined in section 3121 of such Code).'' for
``section 3101(a) which are subject to refund under section 6413(c) of
the Internal Revenue Code of 1954 with respect to wages (as defined in
section 1426 of the Internal Revenue Code of 1939 and section 3121 of
the Internal Revenue Code of 1954) paid after December 31, 1950.'' and
in second sentence substituted ``wages reported to the Secretary of the
Treasury or his delegate pursuant to subtitle F of such Code,'' for
``wages reported to the Commissioner of Internal Revenue pursuant to
section 1420(c) of the Internal Revenue Code of 1939 and to the
Secretary of the Treasury or his delegate pursuant to subtitle F of the
Internal Revenue Code of 1954,''.
Pub. L. 103-296, Sec. 107(b)(5), in second sentence substituted
``maintained by the Commissioner of Social Security'' for ``established
and maintained by the Secretary of Health and Human Services'' and
``Commissioner of Social Security shall furnish'' for ``Secretary shall
furnish''.
Subsec. (g)(4). Pub. L. 103-296, Sec. 107(b)(6), amended generally
par. (4) as amended by Pub. L. 103-296, Sec. 321(c)(1)(C). Prior to
amendment, par. (4) read as follows: ``If at any time or times the
Boards of Trustees of such Trust Funds deem such action advisable, they
may modify the method prescribed by such Boards of determining the costs
which should be borne by the general fund in the Treasury of carrying
out the functions of the Department of Health and Human Services,
specified in section 432 of this title, which relate to the
administration of provisions of the Internal Revenue Code of 1986 (other
than those referred to in clause (i) of the first sentence of paragraph
(1)(A)).''
Pub. L. 103-296, Sec. 321(c)(1)(C), substituted ``If at any time or
times the Boards of Trustees of such Trust Funds deem such action
advisable, they may modify the method prescribed by such Boards'' for
``The Board of Trustees shall prescribe before January 1, 1981, the
method'' and ``Code of 1986'' for ``Code of 1954'' and struck out at end
``If at any time or times thereafter the Boards of Trustees of such
Trust Funds deem such action advisable they may modify the method so
determined.''
Subsec. (i)(1). Pub. L. 103-296, Sec. 107(b)(7), amended par. (1)
generally. Prior to amendment, par. (1) read as follows: ``The Managing
Trustee 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
is authorized to accept on behalf of the United States money gifts and
bequests made unconditionally to any one or more of such Trust Funds or
to the Department of Health and Human Services, or any part or officer
thereof, for the benefit of any of such Funds or any activity financed
through such Funds.''
Subsec. (j). Pub. L. 103-296, Sec. 107(b)(8), substituted
``Commissioner of Social Security'' for ``Secretary'' wherever
appearing.
Subsec. (k). Pub. L. 103-296, Sec. 107(b)(8), substituted
``Commissioner of Social Security'' for ``Secretary''.
Subsec. (l)(3)(B)(iii)(II). Pub. L. 103-296, Sec. 107(b)(9),
substituted ``Commissioner of Social Security'' for ``Secretary''.
Subsec. (m)(3). Pub. L. 103-296, Sec. 107(b)(10), substituted
``Commissioner of Social Security'' for ``Secretary of Health and Human
Services''.
1990--Subsec. (a). Pub. L. 101-508, Sec. 5115(a), in first sentence
following cl. (4), substituted ``from time to time'' for ``monthly on
the first day of each calendar month'' in two places and ``paid to or
deposited into the Treasury'' for ``to be paid to or deposited into the
Treasury during such month'', and in last sentence substituted ``Fund.
Notwithstanding the preceding sentence, in any case in which the
Secretary of the Treasury determines that the assets of either such
Trust Fund would otherwise be inadequate to meet such Fund's obligations
for any month, the Secretary of the Treasury shall transfer to such
Trust Fund on the first day of such month the amount which would have
been transferred to such Fund under this section as in effect on October
1, 1990; and'' for ``Fund;''.
Subsec. (c). Pub. L. 101-508, Sec. 13304, inserted after first
sentence following cl. (5) ``Such statement shall include a finding by
the Board of Trustees as to whether the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability Insurance Trust Fund,
individually and collectively, are in close actuarial balance (as
defined by the Board of Trustees).''
Subsec. (j). Pub. L. 101-508, Sec. 5106(c), inserted at end ``The
amount available for payment under this subsection for travel by a
representative to attend an administrative proceeding before an
administrative law judge or other adjudicator shall not exceed the
maximum amount allowable under this subsection for such travel
originating within the geographic area of the office having jurisdiction
over such proceeding.''
1989--Subsecs. (g)(1)(A), (i)(1). Pub. L. 101-234 repealed Pub. L.
100-360, Sec. 212(c)(1), and provided that the provisions of law amended
or repealed by such section are restored or revised as if such section
had not been enacted, see 1988 Amendment note below.
1988--Subsec. (c). Pub. L. 100-647 inserted after first sentence ``A
member of the Board of Trustees serving as a member of the public and
nominated and confirmed to fill a vacancy occurring during a term shall
be nominated and confirmed only for the remainder of such term. An
individual nominated and confirmed as a member of the public may serve
in such position after the expiration of such member's term until the
earlier of the time at which the member's successor takes office or the
time at which a report of the Board is first issued under paragraph (2)
after the expiration of the member's term.''
Subsec. (g)(1)(A). Pub. L. 100-360, Sec. 212(c)(1)(A), substituted
``, Federal Supplementary Medical Insurance Trust Fund, and the Federal
Catastrophic Drug Insurance Trust Fund'' for ``and the Federal
Supplementary Medical Insurance Trust Fund''.
Subsec. (i)(1). Pub. L. 100-360, Sec. 212(c)(1)(B), substituted ``,
Federal Hospital Insurance Catastrophic Coverage Reserve Fund, Federal
Supplementary Medical Insurance Trust Fund, and the Federal Catastrophic
Drug Insurance Trust Fund'' for ``and the Federal Supplementary Medical
Insurance Trust Fund''.
1986--Subsec. (c). Pub. L. 99-272, in provisions following par. (5),
substituted ``. Such report shall'' for ``: Provided, That the
certification shall not refer to economic assumptions underlying the
Trustee's report, and shall''.
1984--Subsecs. (a)(3), (4), (b)(1), (2). Pub. L. 98-369,
Sec. 2663(j)(2)(A)(i), substituted ``Health and Human Services'' for
``Health, Education, and Welfare''.
Subsec. (d). Pub. L. 98-369, Sec. 2663(a)(1)(A), substituted
``chapter 31 of title 31'' for ``the Second Liberty Bond Act, as
amended'' and ``public-debt obligations'' for ``public-debt
obligation''.
Subsec. (g)(1). Pub. L. 98-369, Sec. 2663(j)(2)(A)(i), substituted
``Health and Human Services'' for ``Health, Education, and Welfare''.
Subsec. (g)(1)(B). Pub. L. 98-369, Sec. 2663(a)(1)(B), substituted
``clause'' for ``clauses'' in first sentence.
Subsecs. (g)(2), (4), (i)(1). Pub. L. 98-369, Sec. 2663(j)(2)(A)(i),
substituted ``Health and Human Services'' for ``Health, Education, and
Welfare''.
Subsec. (l)(3)(B)(i). Pub. L. 98-369, Sec. 2661(a), inserted
``Insurance'' after ``Survivors''.
1983--Subsec. (a). Pub. L. 98-21, Sec. 141(a), in provisions
following par. (4), substituted ``monthly on the first day of each
calendar month'' for ``from time to time'', wherever appearing, and ``to
be paid or deposited into the Treasury during such month'' for ``paid to
or deposited into the Treasury'', and inserted provision that all
amounts transferred to either Trust Fund under the preceding sentence
shall be invested by the Managing Trustee in the same manner and to the
same extent as the other assets of such Trust Fund; and such Trust Fund
shall pay interest to the general fund on the amount so transferred on
the first day of any month at a rate (calculated on a daily basis, and
applied against the difference between the amount so transferred on such
first day and the amount which would have been transferred to the Trust
Fund up to that day under the procedures in effect on Jan. 1, 1983)
equal to the rate earned by the investments of such Fund in the same
month under subsection (d) of this section.
Subsec. (b)(1)(K) to (P). Pub. L. 98-21, Sec. 126(a), substituted,
in cls. (K), (L), and (M), appropriations equivalent to 100 per centum
of (K) 1.65 per centum of the wages (as so defined) paid after Dec. 31,
1981, and before Jan. 1, 1983, and so reported, (L) 1.25 per centum of
the wages (as so defined) paid after Dec. 31, 1982, and before Jan. 1,
1984, and so reported, (M) 1.00 per centum of the wages (as so defined)
paid after Dec. 31, 1983, and before Jan. 1, 1988, and so reported, for
such appropriations of (K) 1.65 per centum of the wages (as so defined)
paid after Dec. 31, 1981, and before Jan. 1, 1985, and so reported, (L)
1.90 per centum of the wages (as so defined) paid Dec. 31, 1984, and
before Jan. 1, 1990, and so reported, and (M) 2.20 per centum of the
wages (as so defined) paid after Dec. 31, 1989, and so reported, and
added cls. (N) to (P).
Subsec. (b)(2)(K) to (P). Pub. L. 98-21, Sec. 126(b), substituted,
in cls. (K), (L), and (M), appropriations equivalent to 100 per centum
of (K) 1.2375 per centum of the amount of self-employment income (as so
defined) so reported for any taxable year beginning after Dec. 31, 1981,
and before Jan. 1, 1983, (L) 0.9375 per centum of the amount of self-
employment income (as so defined) so reported for any taxable year
beginning after Dec. 31, 1982, and before Jan. 1, 1984, (M) 1.00 per
centum of the amount of self-employment income (as so defined) so
reported for any taxable year beginning after Dec. 31, 1983, and before
Jan. 1, 1988, for such appropriations of (K) 1.2375 per centum of the
amount of self-employment income (as so defined) so reported for any
taxable year beginning after Dec. 31, 1981, and before Jan. 1, 1985, (L)
1.4250 per centum of the amount of self-employment income (as so
defined) so reported for any taxable year beginning after Dec. 31, 1984,
and before Jan. 1, 1990, and (M) 1.6500 per centum of the amount of
self-employment income (as so defined) so reported for any taxable year
beginning after Dec. 31, 1989, and added cls. (N) to (P).
Subsec. (c). Pub. L. 98-21, Sec. 341(a), substituted ``Secretary of
Health and Human Services, all ex officio, and of two members of the
public (both of whom may not be from the same political party), who
shall be nominated by the President for a term of four years and subject
to confirmation by the Senate'' for ``Secretary of Health, Education,
and Welfare, all ex officio'' in provisions preceding par. (1), and
inserted provision that a person serving on the Board of Trustees shall
not be considered to be a fiduciary and shall not be personally liable
for actions taken in such capacity with respect to the Trust Funds, in
provisions following par. (5).
Pub. L. 98-21, Sec. 154(a), in provisions following par. (5),
inserted provision that the report referred to in par. (2) shall include
an actuarial opinion by the Chief Actuary of the Social Security
Administration certifying that the techniques and methodologies used are
generally accepted within the actuarial profession and that the
assumptions and cost estimates used are reasonable, and provided further
that the certification shall not refer to economic assumptions
underlying the Trustee's report.
Subsec. (l)(1). Pub. L. 98-21, Sec. 142(a)(1), substituted reference
to January 1988 for reference to January 1983, and inserted ``, subject
to paragraph (5),'' after ``such Trust Fund, or''.
Subsec. (l)(2). Pub. L. 98-21, Sec. 142(a)(2)(A), substituted ``on
the last day of each month after such loan is made'' for ``from time to
time'', substituted ``the total interest accrued to such day'' for
``interest'', and inserted ``(even if such an investment would earn
interest at a rate different than the rate earned by investments
redeemed by the lending fund in order to make the loan)''.
Subsec. (l)(3). Pub. L. 98-21, Sec. 142(a)(3), designated existing
provisions as subpar. (A) and added subpars. (B) and (C).
Subsec. (l)(5). Pub. L. 98-21, Sec. 142(a)(4), added par. (5).
Subsec. (m). Pub. L. 98-21, Sec. 152(a), added subsec. (m).
1981--Subsec. (l). Pub. L. 97-123 added subsec. (l).
1980--Subsec. (b)(1)(H) to (M). Pub. L. 96-403, Sec. 1(a),
substituted in cl. (H) reference to Jan. 1, 1980, for Jan. 1, 1981;
added cls. (I) and (J); redesignated as cl. (K) former cl. (I)
substituting reference to Dec. 31, 1981, for Dec. 31, 1980; and
redesignated as cls. (L) and (M) former cls. (J) and (K).
Subsec. (b)(2)(H) to (M). Pub. L. 96-403, Sec. 1(b), substituted in
cl. (H) reference to Jan. 1, 1980, for Jan. 1, 1981; added cls. (I) and
(J); redesignated as cl. (K) former cl. (I) substituting reference to
Dec. 31, 1981, for Dec. 31, 1980; and redesignated as cls. (L) and (M)
former cls. (J) and (K).
Subsec. (j). Pub. L. 96-265, Sec. 310(a), added subsec. (j).
Subsec. (k). Pub. L. 96-265, Sec. 505(a)(5), added subsec. (k).
1977--Subsec. (b)(1)(G) to (K). Pub. L. 95-216, Sec. 102(a)(1),
substituted ``(G) 1.55 per centum of the wages (as so defined) paid
after December 31, 1977, and before January 1, 1979, and so reported,
(H) 1.50 per centum of the wages (as so defined) paid after December 31,
1978, and before January 1, 1981, and so reported, (I) 1.65 per centum
of the wages (as so defined) paid after December 31, 1980, and before
January 1, 1985, and so reported, (J) 1.90 per centum of the wages (as
so defined) paid after December 31, 1984, and before January 1, 1990,
and so reported, and (K) 2.20 per centum of the wages (as so defined)
paid after December 31, 1989, and so reported'' for ``(G) 1.2 per centum
of the wages (as so defined) paid after December 31, 1977, and before
January 1, 1981, and so reported, (H) 1.3 per centum of the wages (as so
defined) paid after December 31, 1980, and before January 1, 1986, and
so reported, (I) 1.4 per centum of the wages (as so defined) paid after
December 31, 1985, and before January 1, 2011, and so reported, and (J)
1.7 per centum of the wages (as so defined) paid after December 31,
2010, and so reported''.
Subsec. (b)(2)(G) to (K). Pub. L. 95-216, Sec. 102(a)(2),
substituted ``(G) 1.090 per centum of the amount of self-employment
income (as so defined) so reported for any taxable year beginning after
December 31, 1977, and before January 1, 1979, (H) 1.0400 per centum of
the amount of self-employment income (as so defined) so reported for any
taxable year beginning after December 31, 1978, and before January 1,
1981, (I) 1.2375 per centum of the amount of self-employment income (as
so defined) so reported for any taxable year beginning after December
31, 1980, and before January 1, 1985, (J) 1.4250 per centum of the
amount of self-employment income (as so defined) so reported for any
taxable year beginning after December 31, 1984, and before January 1,
1990, and (K) 1.650 per centum of the amount of self-employment income
(as so defined) so reported for any taxable year beginning after
December 31, 1989'' for ``(G) 0.850 of 1 per centum of the amount of
self-employment income (as so defined) so reported for any taxable year
beginning after December 31, 1977, and before January 1, 1981, (H) 0.920
of 1 per centum of the amount of self-employment income (as so defined)
so reported for any taxable year beginning after December 31, 1980, and
before January 1, 1986, (I) 0.990 of 1 per centum of the amount of self-
employment income (as so defined) so reported for any taxable year
beginning after December 31, 1985, and before January 1, 2011, and (J) 1
per centum of the amount of self-employment income (as so defined) so
reported for any taxable year beginning after December 31, 2010''.
1976--Subsec. (g)(1). Pub. L. 94-202, Sec. 8(d)(1), incorporated
changes in the operations and responsibilities of the Managing Trustee
of the Trust Funds and the Secretary of Health, Education, and Welfare
occasioned by changes in the annual method of reporting wages for social
security purposes, by directing that estimated amounts paid from the
Trust Funds into the Treasury, to replace amounts expended from the
general fund in the Treasury, be estimated by both the Managing Trustee
and the Secretary and that the Secretary determine the portion of costs
attributable to the general fund in the Treasury and the portion
attributable to the Trust Funds at the close of the fiscal year, by
striking out reference to section 1381 of this title, and by inserting
reference to par. (4) of this section, section 432 of this title, and
subchapter E of chapter 1 and subchapter A of chapter 9 of the Internal
Revenue Code of 1939.
Subsec. (g)(4). Pub. L. 94-202, Sec. 8(d)(2), added par. (4).
1973--Subsec. (b)(1)(E) to (J). Pub. L. 93-233, Sec. 7(a),
substituted in: cl. (E) ``January 1, 1974'' for ``January 1, 1978''; cl.
(F) ``December 31, 1973'' and ``January 1, 1978'' for ``December 31,
1977'' and January 1, 2011''; cl. (G) ``1.2'' for ``1.5'' per centum and
``paid after December 31, 1977, and before January 1, 1981'' for ``paid
after December 31, 2010,'' and added cls. (H) to (J).
Subsec. (b)(2)(E) to (J). Pub. L. 93-233, Sec. 7(b), substituted in:
cl. (E) ``January 1, 1974'' for January 1, 1978''; cl. (F) ``0.815 of 1
per centum'' for ``0.84 per centum'' and ``as reported for any taxable
year beginning after December 31, 1973, and before January 1, 1978'' for
``so reported for any taxable year beginning after December 31, 1977,
and before January 1, 2011''; cl. (G) ``0.850 of 1 percentum'' for
``0.895 per centum'' and ``taxable year beginning after December 31,
1977, and before January 1, 1981'' for ``taxable year beginning after
December 31, 2010''; and added cls. (H) to (J).
1972--Subsec. (a). Pub. L. 92-603, Sec. 132(a), inserted ``such
gifts and bequests as may be made as provided in subsection (i)(1) of
this section, and'' after ``in addition,'' in provisions preceding par.
(1).
Subsec. (b). Pub. L. 92-603, Sec. 132(b), inserted ``such gifts and
bequests as may be made as provided in subsection (i)(1) of this
section, and'' after ``consist of'' in provisions preceding par. (1).
Subsec. (b)(1). Pub. L. 92-603, Sec. 136(a), substituted ``1.1'' for
``1.0'' in cl. (E), ``1.15'' for ``1.1'' in cl. (F), and ``1.5'' for
``1.4'' in cl. (G).
Pub. L. 92-336, Sec. 205(a), struck out ``and'' before ``(D)'',
inserted reference to wages paid before January 1, 1973, in cl. (D), and
added cls. (E), (F), and (G).
Subsec. (b)(2). Pub. L. 92-603, Sec. 136(b), substituted ``0.795''
for ``0.75'' in cl. (E), ``0.84'' for ``0.825'' in cl. (F), and
``0.895'' for ``0.915'' in cl. (G).
Pub. L. 92-336, Sec. 205(b), struck out ``and'' before ``(D)'',
inserted reference to self-employment income before January 1, 1973, in
cl. (D), and added cls. (E), (F), and (G).
Subsec. (g)(1)(A). Pub. L. 92-603, Sec. 305(a), inserted references
to subchapter XVI of this chapter and provisions relating to the general
revenues of the United States with respect to subchapter XVI of this
chapter and to the appropriations made pursuant to section 1381 of this
title.
Subsec. (i). Pub. L. 92-603, Sec. 132(c), added subsec. (i).
1969--Subsec. (b)(1). Pub. L. 91-172, Sec. 1005(a), inserted
reference to wages paid before Jan. 1, 1969, and inserted provision for
the appropriation of amounts equal to 1.10 per centum of wages paid
after Dec. 31, 1969.
Subsec. (b)(2). Pub. L. 91-172, Sec. 1005(b), inserted reference to
self-employment income before Jan. 1, 1970, and inserted provision for
the appropriation of 0.825 of 1 percent of the amount of self-employment
income for taxable years beginning after Dec. 31, 1969.
1968--Subsec. (b)(1). Pub. L. 90-248, Sec. 110(a), designated
existing provisions as cls. (A) and (B), inserted ``and before January
1, 1968,'' after ``1965,'' in cl. (B), and added cl. (C).
Subsec. (b)(2). Pub. L. 90-248, Sec. 110(b), designated existing
provisions as cls. (A) and (B), inserted ``and before January 1, 1968,
and'' after ``1965,'' in cl. (B), and added cl. (C).
Subsec. (c)(2). Pub. L. 90-248, Sec. 169(a), substituted ``April''
for ``March''.
Subsec. (c). Pub. L. 90-248, Sec. 169(b), inserted penultimate
sentence for inclusion in reports of board of trustees to Congress of an
actuarial analysis of the benefit disbursements made from the Federal
Old-Age and Survivors Insurance Trust Fund with respect to disabled
beneficiaries.
1965--Subsec. (a)(3). Pub. L. 89-97, Sec. 108(a)(1), inserted
``(other than sections 3101(b) and 3111(b))'' after ``chapter 21'' in
two places.
Subsec. (a)(4). Pub. L. 89-97, Sec. 108(a)(2), inserted ``(other
than section 1401(b))'' after ``chapter 2'' and ``such subchapter or
chapter''.
Subsec. (b)(1). Pub. L. 89-97, Sec. 305(a), inserted ``and before
January 1, 1966,'' after ``December 31, 1956,'' and ``and 0.70 of 1 per
centum of the wages (as so defined) paid after December 31, 1965, and so
reported,'' after ``1954,''.
Subsec. (b)(2). Pub. L. 89-97, Sec. 305(b), inserted ``and before
January 1, 1966, and 0.525 of 1 per centum of the amount of self-
employment income (as so defined) so reported for any taxable year
beginning after December 31, 1965,'' after ``December 31, 1956,''.
Subsec. (c). Pub. L. 89-97, Sec. 327, extended from once each six
months to once each calendar year the minimum number of times the Board
of Trustees must meet.
Subsec. (g)(1). Pub. L. 89-97, Sec. 108(a)(3), included the Federal
Hospital Insurance Trust Fund and the Federal Supplementary Medical
Insurance Trust Fund among the Trust Funds available for reimbursement
of the Treasury for administrative costs of this subchapter and
subchapter XVIII of this chapter, deleted references to administrative
costs of subchapter VIII of this chapter and subchapter E of chapter 1
and subchapter 9 of the Internal Revenue Code of 1939, and also provided
for adjustment among the Trust Funds during each fiscal year so that the
Funds bear the proportionate share of the administration costs.
Subsec. (g)(2). Pub. L. 89-97, Sec. 108(a)(4), inserted ``imposed
under section 3101(a)'' after ``the amount estimated by him as taxes''.
Subsec. (h). Pub. L. 89-97, Sec. 108(a)(5), inserted ``(other than
section 426 of this title)'' after ``this subchapter''.
1960--Subsec. (c). Pub. L. 86-778, Sec. 701(a)-(c), required the
Board of Trustees to meet not less frequently than once each six months,
struck out provisions from cl. (3) which required the Board to report
immediately to the Congress whenever the Board is of the opinion that
during the ensuing five fiscal years either of the Trust Funds will
exceed three times the highest annual expenditures from such Trust Fund
anticipated during that five-fiscal-year period, and added cl. (5).
Subsec. (d). Pub. L. 86-778, Sec. 701(d), substituted ``shall bear
interest at a rate equal to the average market yield (computed by the
Managing Trustee on the basis of market quotations as of the end of the
calendar month next preceding the date of such issue) on all marketable
interest-bearing obligations of the United States then forming a part of
the public debt which are not due or callable until after the expiration
of four years from the end of such calendar month'' for ``bear interest
at a rate equal to the average rate of interest, computed as to the end
of the calendar month next preceding the date of such issue, borne by
all marketable interest-bearing obligations of the United States then
forming a part of the Public Debt that are not due or callable until
after the expiration of five years from the date of original issue'',
and substituted provisions authorizing the purchase of other interest-
bearing obligations when the Managing Trustee determines that it is in
the public interest for provisions which authorized the issuance of
obligations by the Trust Funds only if the Managing Trustee determined
that the purchase of other obligations was not in the public interest.
Subsec. (e). Pub. L. 86-778, Sec. 701(e), substituted ``public-debt
obligations'' for ``special obligations'' in two places.
1959--Subsec. (d). Pub. L. 86-346 substituted ``on original issue at
the issue price'' for ``on original issue at par''.
1958--Subsec. (h). Pub. L. 85-840 provided that benefit payments
required to be made under subsection (b), (c), or (d) of section 402 of
this title to individuals entitled to benefits on the basis of the wages
and self-employment income of an individual entitled to disability
insurance benefits be made only from the Federal Disability Insurance
Trust Fund.
1956--Act Aug. 1, 1956, amended section generally, inserting
references to taxes imposed by the Internal Revenue Code of 1954,
substituting ``Secretary of Health, Education, and Welfare'' for
``Federal Security Administrator,'' creating the Federal Disability
Insurance Trust Fund, requiring obligations issued for purchase by the
Trust Funds to have maturities fixed with due regard for the needs of
the Trust Funds, authorizing to be made available for expenditure out of
the Trust Funds such amounts as Congress deems necessary to pay costs of
administration of subchapter, and requiring the Secretary of Health,
Education, and Welfare to analyze costs of administration so that each
Trust Fund may be charged with its proper share.
1950--Subsec. (a). Act Aug. 28, 1950, Sec. 109(a)(1)-(3),
substituted ``such amounts as may be appropriated to, or deposited in,
the Trust Fund'' for ``such amounts as may be appropriated to the Trust
Fund'' in second sentence, simplified the accounting and collection
processes required for determining the amounts appropriated to the trust
fund, as set out in third sentence, and struck out fourth sentence
authorizing appropriation of additional funds.
Subsec. (b). Act Aug. 28, 1950, Sec. 109(a)(4)-(8), substituted
``Federal Security Administrator'' for ``Chairman of the Social Security
Board'', changed filing date for annual report from first day of each
regular session of Congress to March 1 of each year, added par. (4),
inserted sentence to require report to be printed as a House document,
and made Commissioner of Social Security the Secretary of the Board of
Trustees.
Subsec. (f). Act. Aug. 28, 1950, Sec. 109(a)(9), changed reference
in text from Title II of the Federal Insurance Contributions Act to
subchapter A of chapter 9 and subchapter E of chapter 1 of the Internal
Revenue Code of 1939 to avoid confusion and to include the new
provisions of such Code relating to the collection of taxes from the
self-employed.
1944--Subsec. (a). Act Feb. 25, 1944, inserted sentence authorizing
appropriation of additional funds.
1939--Act Aug. 10, 1939, amended section generally.
Effective Date of 1998 Amendment
Pub. L. 105-277, div. J, title IV, Sec. 4005(c), Oct. 21, 1998, 112
Stat. 2681-912, provided that: ``The amendments made by subsection (b)
[amending this section] shall apply to benefits paid on or after the
first day of the second month beginning after the month in which this
Act is enacted [October 1998].''
Effective Date of 1994 Amendments
Section 3(c) of Pub. L. 103-387 provided that: ``The amendments made
by this section [amending this section] shall apply with respect to
wages paid after December 31, 1993, and self-employment income for
taxable years beginning after such date.''
Section 110 of title I of Pub. L. 103-296 provided that:
``(a) In General.--Except as otherwise provided in this title, this
title [see Tables for classification], and the amendments made by such
title, shall take effect March 31, 1995.
``(b) Transition Rules.--Section 106 [amending section 5315 of Title
5, Government Organization and Employees, and enacting provisions set
out as a note under section 901 of this title] shall take effect on the
date of the enactment of this Act [Aug. 15, 1994].
``(c) Exceptions.--The amendments made by section 103 [amending
section 903 of this title], subsections (b)(4) and (c) of section 105
[enacting provisions set out in a note under section 901 of this title],
and subsections (a)(1), (e)(1), (e)(2), (e)(3), and (l)(2) of section
108 [enacting section 913 of this title and amending sections 5312,
5313, and 5315 of Title 5 and section 11 of Pub. L. 95-452, Inspector
General Act of 1978, set out in the Appendix to Title 5] shall take
effect on the date of the enactment of this Act.''
Section 301(c) of Pub. L. 103-296 provided that:
``(1) In general.--The amendments made by this section [amending
this section] shall apply with respect to obligations issued, and
payments made, after 60 days after the date of the enactment of this Act
[Aug. 15, 1994].
``(2) Treatment of outstanding obligations.--Not later than 60 days
after the date of the enactment of this Act, the Secretary of the
Treasury shall issue to the Federal Old-Age and Survivors Insurance
Trust Fund or the Federal Disability Insurance Trust Fund, as
applicable, a paper instrument, in the form of a bond, note, or
certificate of indebtedness, for each obligation which has been issued
to the Trust Fund under section 201(d) of the Social Security Act
[subsec. (d) of this section] and which is outstanding as of such date.
Each such document shall set forth the principal amount, date of
maturity, and interest rate of the obligation, and shall state on its
face that the obligation shall be incontestable in the hands of the
Trust Fund to which it was issued, that the obligation is supported by
the full faith and credit of the United States, and that the United
States is pledged to the payment of the obligation with respect to both
principal and interest.''
Section 321(c)(1)(A)(ii) of Pub. L. 103-296 provided that: ``The
amendments made by clause (i) [amending this section] shall apply only
with respect to periods beginning on or after the date of the enactment
of this Act [Aug. 15, 1994].''
Section 321(c)(1)(B)(ii) of Pub. L. 103-296 provided that: ``The
amendments made by clause (i) [amending this section] shall apply only
with respect to wages paid on or after January 1, 1995.''
Effective Date of 1990 Amendment
Section 5106(d) of Pub. L. 101-508 provided that: ``The amendments
made by this section [amending this section and sections 406, 1320a-6,
1383, and 1395i of this title] shall apply with respect to
determinations made on or after July 1, 1991, and to reimbursement for
travel expenses incurred on or after April 1, 1991.''
Section 5115(c)[(b)] of Pub. L. 101-508 provided that: ``The
amendments made by this section [amending this section] shall become
effective on the first day of the month following the month in which
this Act is enacted [November 1991].''
Amendment by section 13304 of Pub. L. 101-508 effective for annual
reports of the Board of Trustees issued in or after calendar year 1991,
see section 13306 of Pub. L. 101-508, set out as a note under section
632 of Title 2, The Congress.
Effective Date of 1989 Amendment
Section 202(b) of Pub. L. 101-234 provided that: ``The provisions of
subsection (a) [set out below] shall take effect January 1, 1990, and
the repeal of section 211 of MCCA [Pub. L. 100-360, which amended
sections 1395r, 1395w, and 1395mm of this title and enacted provisions
set out as a note under section 1395r of this title] shall apply to
premiums for months beginning after December 31, 1989.''
Effective Date of 1988 Amendment
Section 8005(b) of Pub. L. 100-647 provided that: ``The amendments
made by this section [amending this section and sections 1395i and 1395t
of this title] shall apply to members of the Boards of Trustees of the
Federal Old-Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund, of the Federal Hospital Insurance Trust
Fund, and of the Federal Supplementary Medical Insurance Trust Fund
serving on such Boards of Trustees as members of the public on or after
the date of the enactment of this Act [Nov. 10, 1988].''
Effective Date of 1986 Amendment
Section 9213(c) of Pub. L. 99-272 provided that: ``The amendments
made by this section [amending this section and sections 1395i and 1395t
of this title] shall become effective on the date of the enactment of
this Act [Apr. 7, 1986].''
Effective Date of 1984 Amendment
Section 2664 of Pub. L. 98-369 provided that:
``(a) Except as otherwise specifically provided, the amendments made
by sections 2661 and 2662 [amending this section and sections 402, 403,
405, 409, 410, 415, 416, 423, 428, and 429 of this title and sections
86, 134, 422A, 3121, 3306, and 6334 of Title 26, Internal Revenue Code,
enacting provisions set out as notes under sections 402 and 403 of this
title and sections 3121 and 3306 of Title 26, and amending provisions
set out as notes under sections 415 and 902 of this title, section 3121
of Title 26, and section 3023 [now 5123] of Title 38, Veterans'
Benefits] shall be effective as though they had been included in the
enactment of the Social Security Amendments of 1983 (Public Law 98-21).
``(b) Except to the extent otherwise specifically provided in this
subtitle [subtitle D (Secs. 2661-2664) of Pub. L. 98-369], the
amendments made by section 2663 [amending this section and sections 402,
403, 405, 408-410, 411, 413, 415, 416-418, 421-423, 426, 428, 430, 431,
433, 502, 503, 602, 603, 606, 607, 609, 610, 614, 615, 620, 631, 632,
633, 634, 636, 641, 643-645, 652-654, 656, 660, 662, 674, 902, 903, 907,
1101, 1104, 1108, 1301, 1302, 1306, 1307, 1314-1316, 1320, 1320a-5,
1320b-1, 1381a-1382a, 1382c, 1382d, 1382g, 1382j, 1383, 1395i, 1395s-
1395u, 1396, 1397a, and 1397e of this title and sections 51, 1402, 3121,
6057, 6103, and 6511 of Title 26, repealing sections 1331-1336 of this
title, and enacting provisions set out as notes under sections 1301 and
1307 of this title] shall be effective on the date of the enactment of
this Act [July 18, 1984]; but none of such amendments shall be construed
as changing or affecting any right, liability, status, or interpretation
which existed (under the provisions of law involved) before that date.''
Effective Date of 1983 Amendment
Section 141(c) of Pub. L. 98-21 provided that: ``The amendments made
by this section [amending this section and section 1395i of this title]
shall become effective on the first day of the month following the month
in which this Act is enacted [April 1983].''
Section 142(a)(2)(B) of Pub. L. 98-21 provided that: ``The amendment
made by this paragraph [amending this section] shall apply with respect
to months beginning more than thirty days after the date of enactment of
this Act [Apr. 20, 1983].''
Section 152(b) of Pub. L. 98-21 provided that: ``The amendment made
by subsection (a) [amending this section] shall apply with respect to
all checks for benefits under title II of the Social Security Act [this
subchapter] which are issued on or after the first day of the twenty-
fourth month following the month in which this Act is enacted [April
1983].''
Section 154(e) of Pub. L. 98-21 provided that: ``The amendments made
by this section [amending this section and sections 1395i and 1395t of
this title] shall take effect on the date of the enactment of this Act
[Apr. 20, 1983].''
Section 341(d) of Pub. L. 98-21 provided that: ``The amendments made
by this section [amending this section and sections 1395i and 1395t of
this title] shall become effective on the date of enactment of this Act
[Apr. 20, 1983].''
Effective Date of 1981 Amendment
Section 1(c) of Pub. L. 97-123 provided that: ``The amendments made
by this section [amending this section and section 1395i of this title]
shall be effective on the date of the enactment of this Act [Dec. 29,
1981].''
Effective Date of 1980 Amendment
Section 2 of Pub. L. 96-403 provided that: ``The amendments made by
the first section of this Act [amending this section] shall apply with
respect to remuneration paid, and taxable years beginning after December
31, 1979.''
Effective Date of 1977 Amendment
Amendment by Pub. L. 95-216 applicable with respect to remuneration
paid or received, and taxable years beginning after 1977, see section
104 of Pub. L. 95-216, set out as a note under section 1401 of Title 26,
Internal Revenue Code.
Effective Date of 1972 Amendment
Section 132(f) of Pub. L. 92-603 provided that: ``The amendments
made by this section [amending this section and sections 1395i and 1395t
of this title] shall apply with respect to gifts and bequests received
after the date of enactment of this Act [Oct. 30, 1972].''
Section 305(c) of Pub. L. 92-603 provided that: ``The provisions of
this section [amending this section and enacting provisions set out as a
note under this section] shall become effective on the date of enactment
of this Act [Oct. 30, 1972].''
Effective Date of 1960 Amendment
Section 701(f) of Pub. L. 86-778 provided that: ``The amendments
made by this section [amending this section] shall take effect on the
first day of the first month beginning after the date of the enactment
of this Act [Sept. 13, 1960].''
Effective Date of 1958 Amendment
Amendment by Pub. L. 85-840 applicable with respect to monthly
benefits under this subchapter for months after August 1958, but only if
an application for such benefits is filed on or after Aug. 28, 1958, see
section 207(a) of Pub. L. 85-840, set out as a note under section 416 of
this title.
Effective Date of 1939 Amendment
Section 201 of act Aug. 10, 1939, provided that the amendment made
by that section is effective Jan. 1, 1940.
Construction of 1994 Amendment
Section 321(d) of Pub. L. 103-296 provided that:
``(1) The preceding provisions of this section [amending this
section and sections 402, 403, 405, 408 to 411, 413, 415, 416, 418, 423,
429, 430, and 432 of this title, and enacting provisions set out as
notes under this section and sections 402 and 430 of this title] shall
be construed only as technical and clerical corrections and as
reflecting the original intent of the provisions amended thereby.
``(2) Any reference in title II of the Social Security Act [this
subchapter] to the Internal Revenue Code of 1986 [26 U.S.C. 1 et seq.]
shall be construed to include a reference to the Internal Revenue Code
of 1954 to the extent necessary to carry out the provisions of paragraph
(1).''
Termination of Reporting Requirements
For termination, effective May 15, 2000, of provisions of law
requiring submittal to Congress of any annual, semiannual, or other
regular periodic report listed in House Document No. 103-7 (in which
certain reporting requirements under subsec. (c)(2) of this section are
listed in item 7 on page 143), see section 3003 of Pub. L. 104-66, as
amended, and section 1(a)(4) [div. A, Sec. 1402(1)] of Pub. L. 106-554,
set out as notes under section 1113 of Title 31, Money and Finance.
No Impact on Social Security Trust Funds
Pub. L. 107-147, title V, Sec. 501, Mar. 9, 2002, 116 Stat. 58,
provided that:
``(a) In General.--Nothing in this Act [see Tables for
classification] (or an amendment made by this Act) shall be construed to
alter or amend title II of the Social Security Act [this subchapter] (or
any regulation promulgated under that Act [this chapter]).
``(b) Transfers.--
``(1) Estimate of secretary.--The Secretary of the Treasury
shall annually estimate the impact that the enactment of this Act
has on the income and balances of the trust funds established under
section 201 of the Social Security Act (42 U.S.C. 401).
``(2) Transfer of funds.--If, under paragraph (1), the Secretary
of the Treasury estimates that the enactment of this Act has a
negative impact on the income and balances of the trust funds
established under section 201 of the Social Security Act (42 U.S.C.
401), the Secretary shall transfer, not less frequently than
quarterly, from the general revenues of the Federal Government an
amount sufficient so as to ensure that the income and balances of
such trust funds are not reduced as a result of the enactment of
this Act.''
Impact of Pub. L. 107-134 on Social Security Trust Funds
Pub. L. 107-134, title III, Sec. 301, Jan. 23, 2002, 115 Stat. 2444,
provided that:
``(a) In General.--Nothing in this Act [see Short Title of 2002
Amendment note set out under section 1 of Title 26, Internal Revenue
Code] (or an amendment made by this Act) shall be construed to alter or
amend title II of the Social Security Act [this subchapter] (or any
regulation promulgated under that Act [this chapter]).
``(b) Transfers.--
``(1) Estimate of secretary.--The Secretary of the Treasury
shall annually estimate the impact that the enactment of this Act
has on the income and balances of the trust funds established under
section 201 of the Social Security Act (42 U.S.C. 401).
``(2) Transfer of funds.--If, under paragraph (1), the Secretary
of the Treasury estimates that the enactment of this Act has a
negative impact on the income and balances of the trust funds
established under section 201 of the Social Security Act (42 U.S.C.
401), the Secretary shall transfer, not less frequently than
quarterly, from the general revenues of the Federal Government an
amount sufficient so as to ensure that the income and balances of
such trust funds are not reduced as a result of the enactment of
this Act.''
Study by General Accounting Office of Existing Coordination of the DI
and SSI Programs as They Relate to Individuals Entering or Leaving
Concurrent Entitlement
Pub. L. 106-170, title III, Sec. 303(b), Dec. 17, 1999, 113 Stat.
1904, provided that:
``(1) Study.--As soon as practicable after the date of the enactment
of this Act [Dec. 17, 1999], the Comptroller General of the United
States shall undertake a study to evaluate the coordination under
current law of the disability insurance program under title II of the
Social Security Act (42 U.S.C. 401 et seq.) and the supplemental
security income program under title XVI of such Act (42 U.S.C. 1381 et
seq.), as such programs relate to individuals entering or leaving
concurrent entitlement under such programs. In such study, the
Comptroller General shall specifically address the effectiveness of work
incentives under such programs with respect to such individuals and the
effectiveness of coverage of such individuals under titles XVIII and XIX
of such Act (42 U.S.C. 1395 et seq., 1396 et seq.).
``(2) Report.--Not later than 3 years after the date of the
enactment of this Act, the Comptroller General shall transmit to the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a written report presenting the
results of the Comptroller General's study conducted pursuant to this
subsection, together with such recommendations for legislative or
administrative changes as the Comptroller General determines are
appropriate.''
Use of Continuing Disability Review Funds and Report Requirement
Section 103(d) of Pub. L. 104-121, as amended by Pub. L. 104-193,
title II, Sec. 211(d)(5)(D), Aug. 22, 1996, 110 Stat. 2192, provided
that:
``(1) In general.--The Commissioner of Social Security shall ensure
that funds made available for continuing disability reviews (as defined
in section 201(g)(1)(A) of the Social Security Act [subsec. (g)(1)(A) of
this section]) are used, to the greatest extent practicable, to maximize
the combined savings in the old-age, survivors, and disability
insurance, supplemental security income, Medicare, and medicaid
programs, except that the amounts appropriated pursuant to the
authorization and discretionary spending allowance provisions in section
211(d)(2)(5) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 [probably means section 211(d)(5) of Pub. L.
104-193, which amended sections 665e and 901 of Title 2, The Congress,
enacted provisions set out as a note under section 1382c of this title,
and amended this note] shall be used only for continuing disability
reviews and redeterminations under title XVI of the Social Security Act
[subchapter XVI of this chapter].
``(2) Report.--The Commissioner of Social Security shall provide
annually (at the conclusion of each of the fiscal years 1996 through
2002) to the Congress a report on continuing disability reviews which
includes--
``(A) the amount spent on continuing disability reviews in the
fiscal year covered by the report, and the number of reviews
conducted, by category of review;
``(B) the results of the continuing disability reviews in terms
of cessations of benefits or determinations of continuing
eligibility, by program; and
``(C) the estimated savings over the short-, medium-, and long-
term to the old-age, survivors, and disability insurance,
supplemental security income, Medicare, and medicaid programs from
continuing disability reviews which result in cessations of benefits
and the estimated present value of such savings.''
Repeal of Changes in Medicare Part B Monthly Premium and Financing
Section 202(a) of Pub. L. 101-234 provided that: ``Sections 211
through 213 (other than sections 211(b) and 211(c)(3)(B)) of MCCA [Pub.
L. 100-360, which enacted sections 1395t-1 and 1395t-2 of this title,
amended this section and sections 1395i, 1395l, 1395r, 1395s, 1395t,
1395w, and 1395mm of this title, and enacted provisions set out as a
note under section 1395r of this title] are repealed and the provisions
of law amended or repealed by such sections are restored or revised as
if such sections had not been enacted.''
Transfer of Equivalent of 1983 Tax Increases to Payor Funds; Reports
Section 121(e) of Pub. L. 98-21, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 103-66, title XIII,
Sec. 13215(c), Aug. 10, 1993, 107 Stat. 476; Pub. L. 104-188, title I,
Sec. 1703(n)(12), Aug. 20, 1996, 110 Stat. 1877, provided that:
``(1) In general.--(A) There are hereby appropriated to each payor
fund amounts equivalent to (i) the aggregate increase in tax liabilities
under chapter 1 of the Internal Revenue Code of 1986 [26 U.S.C. 1 et
seq.] which is attributable to the application of sections 86 and
871(a)(3) of such Code (as added by this section) [26 U.S.C. 86,
871(a)(3)] to payments from such payor fund, less (ii) the amounts
equivalent to the aggregate increase in tax liabilities under chapter 1
of the Internal Revenue Code of 1986 which is attributable to the
amendments to section 86 of such Code made by section 13215 of the
Revenue Reconciliation Act of 1993 [Pub. L. 103-66].
``(B) There are hereby appropriated to the hospital insurance trust
fund amounts equal to the increase in tax liabilities described in
subparagraph (A)(ii). Such appropriated amounts shall be transferred
from the general fund of the Treasury on the basis of estimates of such
tax liabilities made by the Secretary of the Treasury. Transfers shall
be made pursuant to a schedule made by the Secretary of the Treasury
that takes into account estimated timing of collection of such
liabilities.
``(2) Transfers.--The amounts appropriated by paragraph (1)(A) to
any payor fund shall be transferred from time to time (but not less
frequently than quarterly) from the general fund of the Treasury on the
basis of estimates made by the Secretary of the Treasury of the amounts
referred to in such paragraph. Any such quarterly payment shall be made
on the first day of such quarter and shall take into account social
security benefits estimated to be received during such quarter. Proper
adjustments shall be made in the amounts subsequently transferred to the
extent prior estimates were in excess of or less than the amounts
required to be transferred.
``(3) Definitions.--For purposes of this subsection--
``(A) Payor fund.--The term `payor fund' means any trust fund or
account from which payments of social security benefits are made.
``(B) Hospital insurance trust fund.--The term `hospital
insurance trust fund' means the fund established pursuant to section
1817 of the Social Security Act [section 1395i of this title].
``(C) Social security benefits.--The term `social security
benefits' has the meaning given such term by section 86(d)(1) of the
Internal Revenue Code of 1986 [26 U.S.C. 86(d)(1)].
``(4) Reports.--The Secretary of the Treasury shall submit annual
reports to the Congress and to the Secretary of Health and Human
Services and the Railroad Retirement Board on--
``(A) the transfers made under this subsection during the year,
and the methodology used in determining the amount of such transfers
and the funds or account to which made, and
``(B) the anticipated operation of this subsection during the
next 5 years.''
[For termination, effective May 15, 2000, of provisions relating to
submission of annual reports to Congress in section 121(e)(4) of Pub. L.
98-21, set out above, see section 3003 of Pub. L. 104-66, as amended,
set out as a note under section 1113 of Title 31, Money and Finance, and
item 17 on page 143 of House Document No. 103-7.]
Reimbursement to Trust Funds for Unnegotiated Benefit Checks
Section 152(c) of Pub. L. 98-21 provided that:
``(1) The Secretary of the Treasury shall transfer from the general
fund of the Treasury to the Federal Old-Age and Survivors Insurance
Trust Fund and to the Federal Disability Insurance Trust Fund, in the
month following the month in which this Act is enacted [April 1983] and
in each of the succeeding 30 months, such sums as may be necessary to
reimburse such Trust Funds in the total amount of all checks (including
interest thereof) which he and the Secretary of Health and Human
Services jointly determine to be unnegotiated benefit checks, to the
extent provided in advance in appropriation Acts. After any amounts
authorized by this subsection have been transferred to a Trust Fund with
respect to any benefit check, the provisions of paragraphs (3) and (4)
of section 201(m) of the Social Security Act [subsec. (m)(3), (4) of
this section] (as added by subsection (a) of this section) shall be
applicable to such check.
``(2) As used in paragraph (1), the term `unnegotiated benefit
checks' means checks for benefits under title II of the Social Security
Act [this subchapter] which are issued prior to the twenty-fourth month
following the month in which this Act is enacted [April 1983], which
remain unnegotiated after the sixth month following the date on which
they were issued, and with respect to which no transfers have previously
been made in accordance with the first sentence of such paragraph.''
Study of Float Period of Monthly Insurance Benefit Checks
Section 153 of Pub. L. 98-21 directed Secretary of Health and Human
Services and Secretary of the Treasury jointly to undertake a thorough
study with respect to period of time (referred to as ``float period'')
between issuance of checks from general fund of Treasury in payment of
monthly insurance benefits under title II of the Social Security Act
[this subchapter] and transfer to general fund from Federal Old-Age and
Survivors Insurance Trust Fund or Federal Disability Insurance Trust
Fund, as applicable, of amounts necessary to compensate general fund for
issuance of such checks, with Secretaries to submit a report to
President an Congress not later than twelve months after Apr. 20, 1983,
on their findings as to necessity of making adjustments in procedures
governing payment of monthly insurance benefits.
Due Date for 1983 Report on Operation and Status of Trust Fund
Section 154(d) of Pub. L. 98-21 provided that notwithstanding
sections 401(c)(2), 1395i(b)(2), and 1395t(b)(2) of this title, the
annual reports of the Boards of Trustees of the Trust Funds which are
required in calendar year 1983 under those sections may be filed at any
time not later than forty-five days after Apr. 20, 1983.
Study Relating to Establishment of Time Limitations for Decisions on
Claims for Benefits; Report
Section 308 of Pub. L. 96-265 directed Secretary of Health and Human
Services to submit to Congress, no later than July 1, 1980, a report
recommending establishment of appropriate time limitations governing
decisions on claims for benefits under this subchapter, taking into
account both need for expeditious processing of claims for benefits and
need to assure that all such claims will be thoroughly considered and
accurately determined.
Effects of Certain Amendments by Pub. L. 96-265; Report
Section 312 of Pub. L. 96-265 directed Secretary of Health and Human
Services to submit to Congress, not later than Jan. 1, 1985, a full and
complete report as to effects produced by reason of preceding provisions
of this Act and amendments made thereby (see Tables for classification).
Appointment and Compensation of Individuals Necessary To Assist the
Board of Trustees
Section 8(e) of Pub. L. 94-202 provided that: ``Any persons the
Board of Trustees finds necessary to employ to assist it in performing
its functions under section 201(g)(4) of the Social Security Act
[subsec. (g)(4) of this section] may be appointed without regard to the
civil service or classification laws, shall be compensated, while so
employed at rates fixed by the Board of Trustees, but not exceeding $100
per day, and, while away from their homes or regular places of business,
they may be allowed traveling expenses, including per diem in lieu of
subsistence, as authorized by law for persons in the Government service
employed intermittently.''
Method of Determining Costs Prescribed by the Board of Trustees
Certification and Transfer of Funds
Section 8(f) of Pub. L. 94-202, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``The Secretary
shall not make any estimates pursuant to section 201(g)(1)(A)(ii) of the
Social Security Act [subsec. (g)(1)(A)(ii) of this section] before the
Board of Trustees prescribes the method of determining costs as provided
in section 201(g)(4) of such Act [subsec. (g)(4) of this section]. The
determinations pursuant to section 201(g)(1)(B) of the Social Security
Act [subsec. (g)(1)(B) of this section] with respect to the carrying out
of the functions of the Department of Health, Education, and Welfare
[now Health and Human Services] specified in section 232 of such Act
[section 432 of this title], which relate to the administration of
provisions of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]
(other than those referred to in clause (i) of the first sentence of
section 201(g)(1)(A) of the Social Security Act [subsec. (g)(1)(A) of
this section]), during fiscal years ending before the Board of Trustees
prescribes the method of making such determinations, shall be made after
the Board of Trustees has prescribed such method. The Secretary of
Health, Education, and Welfare [now Health and Human Services] shall
certify to the Managing Trustee the amounts that should be transferred
from the general fund in the Treasury to the Trust Funds (as referred to
in section 201(g)(1)(A) of the Social Security Act [subsec. (g)(1)(A) of
this section]) to insure that the general fund in the Treasury bears its
proper share of the costs of carrying out such functions in such fiscal
years. The Managing Trustee is authorized and directed to transfer any
such amounts in accordance with any certification so made.''
Advances From Trust Funds for Administrative Expenses
Section 305(b) of Pub. L. 92-603 provided that:
``(1) Sums appropriated pursuant to section 1601 of the Social
Security Act [section 1381 of this title] shall be utilized from time to
time, in amounts certified under the second sentence of section
201(g)(1)(A) of such Act [subsec. (g)(1)(A) of this section], to repay
the Trust Funds for expenditures made from such Funds in any fiscal year
under section 201(g)(1)(A) of such Act (as amended by subsection (a) of
this section) [amending subsec. (g)(1)(A) of this section] on account of
the costs of administration of title XVI of such Act [subchapter XVI of
this chapter] (as added by section 301 of this Act).
``(2) If the Trust Funds have not theretofore been repaid for
expenditures made in any fiscal year (as described in paragraph (1)) to
the extent necessary on account of--
``(A) expenditures made from such Funds prior to the end of such
fiscal year to the extent that the amount of such expenditures
exceeded the amount of the expenditures which would have been made
from such Funds if subsection (a) had not been enacted,
``(B) the additional administrative expenses, if any, resulting
from the excess expenditures described in subparagraph (A), and
``(C) any loss in interest to such Funds resulting from such
excess expenditures and such administrative expenses,
in order to place each such Fund in the same position (at the end of
such fiscal year) as it would have been in if such excess expenditures
had not been made, the amendments made by subsection (a) shall cease to
be effective at the close of the fiscal year following such fiscal year.
``(3) As used in this subsection, the term `Trust Funds' has the
meaning given it in section 201(g)(1)(A) of the Social Security Act
[subsec. (g)(1)(A) of this section].''
Advances From Trust Funds for Administrative Purposes; Fiscal Year
Transition Period of July 1, 1976, Through September 30, 1976, Deemed
Fiscal Year
Fiscal year transition period of July 1, 1976, through Sept. 30,
1976, deemed fiscal year for purposes of section 305(b) of Pub. L. 92-
603, set out as a note above, relating to advances from trust funds for
administrative purposes, see section 201(11) of Pub. L. 94-274, title
II, Apr. 21, 1976, 90 Stat. 390, set out as a note under section 343 of
Title 7, Agriculture.
Gifts and Bequests for the Use of the United States and for Exclusively
Public Purposes
Section 132(g) of Pub. L. 92-603 provided that: ``For the purpose of
Federal income, estate, and gift taxes, any gift or bequest to the
Federal Old-Age and Survivors Insurance Trust Fund, the Federal
Disability Insurance Trust Fund, the Federal Hospital Insurance Trust
Fund, or the Federal Supplementary Medical Insurance Trust Fund, or to
the Department of Health, Education, and Welfare [now Health and Human
Services], or any part or officer thereof, for the benefit of any of
such Funds or any activity financed through any of such Funds, which is
accepted by the Managing Trustee of such Trust Funds under the authority
of section 201(i) of the Social Security Act [subsec. (i) of this
section], shall be considered as a gift or bequest to or for the use of
the United States and as made for exclusively public purposes.''
Taxes on Services Rendered by Employees of International Organizations
Prior to Jan. 1, 1946
Section 5(b) of act Dec. 29, 1945, ch. 652, title I, 59 Stat. 671,
prohibited collection of tax under title VIII or IX of the Social
Security Act or under the Federal Insurance Contributions Act or the
Federal Unemployment Tax Act with respect to services rendered prior to
January 1, 1946, which were described in paragraph (16) of sections
1426(b) and 1607(c) of the Internal Revenue Code of 1939, and authorized
refund of taxes collected.
Executive Order No. 12335
Ex. Ord. No. 12335, Dec. 16, 1981, 46 F.R. 61633, as amended by Ex.
Ord. No. 12397, Dec. 23, 1982, 47 F.R. 57651; Ex. Ord. No. 12402, Jan.
15, 1983, 48 F.R. 2311, which established the National Commission on
Social Security Reform and provided for its membership, functions, etc.,
was revoked by Ex. Ord. No. 12534, Sept. 30, 1985, 50 F.R. 40319,
formerly set out as a note under section 14 of the Federal Advisory
Committee Act in the Appendix to Title 5, Government Organization and
Employees.
Section Referred to in Other Sections
This section is referred to in sections 415, 417, 421, 429, 909,
910, 1320b-1, 1395i, 1395t of this title; title 2 section 901; title 26
section 3121.