reduced benefits fob spouses receiving government pensions

reduced benefits fob spouses receiving government pensions Sec. 334. (a) (1) Section 202(b) (2) of the Social Security Act is amended by inserting after “subsection (q)” the following: “and paragraph (4) of this subsection”. (2) Section 202(b) of such Act is further amended by adding at the end thereof the following new paragraph: “(4) (A) The amount of a wife’s insurance benefit for each month as determined after application of the provisions of subsections (q) and (k) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such wife (or divorced wife) for such month which is based upon her earnings while in the service of the Federal Government or any State (or political subdivision thereof, as defined in section 218(b) (2)) if, on the last day she was employed by such entity, such service did not constitute ‘employment’ as defined in section 210. “(B) For purposes of this paragraph, any periodic benefit which otherwise meets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shall be allocated on a basis equivalent to a monthly benefit (as determined by the Secretary) and such equivalent monthly benefit shall constitute a monthly periodic benefit for purposes of subparagraph (A). For purposes of this subparagraph, the term ‘periodic benefit’ includes a benefit payable in a lump sum if it is a commutation of, or a substitute for, periodic payments.”. (b) (1) Section 202(c) (1) of such Act is amended— (A) by striking out subparagraph (C); (B) by adding “and” at the end of subparagraph (B); and (C) by redesignating subparagraph (D) as subparagraph (C). (2) Section 202(c) (2) of such Act is amended to read as follows: “(2) (A) The amount of a husband’s insurance benefit for each month as determined after application of the provisions of subsections (q) and (k) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such husband for such month which is based upon his earnings while in the service of the Federal Government or any State (or political sub-91 STAT. 1545division thereof, as defined in section 218 (b) (2)) if, on the last day he was employed by such entity, such service did not constitute ‘employment’ as defined in section 210. “(B) For purposes of this paragraph, any periodic benefit which otherwise meets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shall be allocated on a basis equivalent to a monthly benefit (as determined by the Secretary) and such equivalent monthly benefit shall constitute a monthly periodic benefit for purposes of subparagraph (A). For purposes of this subparagraph, the term ‘periodic benefit’ includes a benefit payable in a lump sum if it is a commutation of, or a substitute for, periodic payments.”. (3) Section 202(c) (3) of such Act is amended by inserting after “subsection (q)” the following: “and paragraph (2) of this subsection”. (c) (1) Section 202(e) (2) (A) of such Act (as amended by section 204(a) of this Act) is amended by striking out “paragraph (4)” in the first sentence and inserting in lieu thereof “paragraphs (4) and (8)”. (2) Section 202(e) of such Act is further amended by adding at the end thereof the following new paragraph: “(8) (A) The amount of a widow’s insurance benefit for each month as determined (after application of the provisions of subsections (q) and (k), paragraph (2) (B), and paragraph (4)) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such widow (or surviving divorced wife) for such month which is based upon her earnings while in the service of the Federal Government or any State (or any political subdivision thereof, as defined in section 218(b) (2)) if, on the last day she was employed by such entity, such service did not constitute ‘employment’ as defined in section 210. “(B) For purposes of this paragraph, any periodic benefit which otherwise meets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shall be allocated on a basis equivalent to a monthly benefit (as determined by the Secretary) and such equivalent monthly benefit shall constitute a monthly periodic benefit for purposes of subparagraph (A). For purposes of this subparagraph, the term ‘periodic benefit’ includes a benefit payable in a lump sum if it is a commutation of, or a substitute for, periodic payments.”. (d) (1) Section 202(f) (1) of such Act is amended— (A) by striking out subparagraph (D); and (B) by redesignating subparagraphs (E), (F), and (G) as subparagraphs (D), (E), and (F), respectively. (2) Section 202(f) (2) of such Act is amended to read as follows: “(2) (A) The amount of a widower’s insurance benefit for each month (as determined after application of the provisions of subsections (k) and (q), paragraph (3) (B), and paragraph (5)) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such widower for such month which is based upon his earnings while in the service of the Federal Government or any State (or any political subdivision thereof, as defined in section 218(b) (2)) if, on the last day he was employed by such entity, such service did not constitute ‘employment’ as defined in section 210. “(B) For purposes of this paragraph, any periodic benefit which otherwise meets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shall be allocated on a basis equivalent to a monthly benefit (as determined by the Secretary) and such 91 STAT. 1546equivalent monthly benefit shall constitute a monthly periodic benefit for purposes of subparagraph (A). For purposes of this subparagraph, the term ‘periodic benefit’ includes a benefit payable in a lump sum if it is a commutation of, or a substitute for, periodic payments.”. (3) Section 202(f) (3) (A) of such Act (as amended by section 204 (c) of this Act) is amended by striking out “paragraph (5)” in the first sentence and inserting in lieu thereof “paragraphs (2) and (5)”. (4) (A) Section 202(f) (7) of such Act is amended by striking out “paragraph (1) (G)” and inserting in lieu thereof “paragraph (1) (F).”. (B) Section 226(h) (1) (B) of such Act is amended by striking out “subparagraph (G) of section 202 (f) (1)” and inserting in lieu thereof “subparagraph (F) of section 202(f) (1)”. (5) Sect ion 202 (p) (1) of such Act is amended by striking out “subparagraph (C) of subsection (c) (1), clause (i) or (ii) of subparagraph (D) of subsection (f) (1), or”. (6) Section 202(s) (3) of such Act is amended by striking out “Subsections” and all that follows down through “so much” and inserting in lieu thereof “So much”. (e) (1) Section 202(g) (2) of such Act is amended by striking out “Such” and inserting in lieu thereof “Except as provided in paragraph (4) of this subsection, such”. (2) Section 202(g) of such Act is further amended by adding at the end thereof the following new paragraph: “(4) (A) The amount of a mother’s insurance benefit for each month to which any individual is entitled under this subsection (as determined after application of subsection (k)) shall be reduced (but not below zero) by an amount equal to the amount of any monthly periodic benefit payable to such individual for such month which is based upon such individual’s earnings while in the service of the Federal Government or any State (or political subdivision thereof, as defined in section 218(b) (2)) if, on the last day such individual was employed by such entity, such service did not constitute ‘employment’ as defined in section 210. “(B) For purposes of this paragraph, any periodic benefit which otherwise meets the requirements of subparagraph (A), but which is paid on other than a monthly basis, shall be allocated on a basis equivalent to a monthly benefit (as determined by the Secretary) and such equivalent monthly benefit shall constitute a monthly periodic benefit for purposes of subparagraph (A). For purposes of this subparagraph, the term ‘periodic benefit’ includes a benefit payable in a lump sum if it is a commutation of, or a substitute for, periodic payments.”. (f) The amendments made by this section shall apply with respect to monthly insurance benefits payable under title IT of the Social Security Act for months beginning with the month in which this Act is enacted, on the basis of applications filed in or after the month in which this Act is enacted. (g) (1) The amendments made by the preceding provisions of this section shall not apply with respect to any monthly insurance benefit payable, under subsection (b), (c), (e), (f), or (g) (as the case may tie) of section 202 of the Social Security Act, to an individual— (A) to whom there is payable for any month within the 60-month period beginning with the month in which this Act is enacted (or who is eligible in any such month for) a monthly periodic benefit (within the meaning of such provisions) based upon such individual’s earnings while in the service of the Federal Government or any State (or political subdivision thereof, as 91 STAT. 1547defined in section 218(b) (2) of the Social Security Act); and (B) who at time of application for or initial entitlement to such monthly insurance benefit under such subsection (b), (c), (e), (f), or (g) meets the requirements of that subsection as it was in effect and being administered in January 1977. (2) For purposes of paragraph (1) (A), an individual is eligible for a monthly periodic benefit for any month if such benefit would be payable to such individual for that month if such individual were not employed during that month and had made proper application for such benefit. (3) If any provision of this subsection, or the application thereof to any person or circumstance, is held invalid, the remainder of this section shall not be affected thereby, but the application of this subsection to any other persons or circumstances shall also be considered invalid.