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Major differences in the present social security law and H.R. 12580 as passed by the House of

Representatives

OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE

I. COVERAGE

(References are to the sections of the bill as referred to the Senate, and the pages to H. Rept. 1799, 86th Cong., 2d sess.)

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2. Ministers...

Covers duly ordained, commissioned or licensed

ministers, Christian Science practitioners, and members of religious orders (other than those who have taken a vow of poverty) serving in the United States, and those serving outside the country who are citizens and either working for United States employers or serving a congregation predominantly made up of United States citizens. Coverage is available under the selfemployment coverage provisions on an individual voluntary basis regardless whether they are employees or self-em

ployed. Allows election of coverage by filing of cer

tificate for present minister, generally up until Apr. 15, 1959.

H.R. 12580

Covers physicians.
Effective date: Taxable years ending on or

after Dec. 31, 1960. Bill: Sec. 104. House report, pp. 4, 5, 17, 75–77. (Also covers as employees medical and dental

interns and medical and dental residents in training who are employed in hospitals of the Federal Government, and interns in the employ of a privately operated hospital who have completed a 4-year course in a medical school chartered according to State law.)

Extends the period of time generally through

Apr. 15, 1962, within which present ministers

may elect coverage. Bill: Sec. 101. House report, pp. 21, 22, 59. Permits the validation of coverage of certain

clergymen who filed tax returns reporting self-employment earnings from the ministry for certain years after 1954 and before 1960 even though, through error, they had not filed waiver certificates effective for those years.

Waiver certificate must be filed and taxes for these years must be paid by Apr.

15, 1962 Bill: Sec. 101(c). House report: Pp. 22, 59, 60.

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I. COVERAGE-Continued

Present law

Covers employees including certain agent or

commission drivers, life-insurance salesmen, homeworkers, traveling salesmen, and officers of corporations regardless of the

common law definition of employee. Covers persons performing domestic service

in private nonfarm homes if they receive $50 or more during & calendar quarter from 1 employer. Noncash remuneration

is excluded. Excludes students performing domestic serv

ice in clubs or fraternities if enrolled and regularly attending classes at a school,

college, or university. Covers cash remuneration for service not in

the course of the employer's trade or business if the remuneration is $50 or more from 1 employer during a calendar quarter.

Covers employees of State and local govern

ments provided the individual State enters into an agreement with the Federal Government to provide such coverage, with the following special provisions:

a. Employees who are in positions covered under an existing State or local retirement system (except policemen and firemen in most States) may be covered under State agreements only if a referendum is held by a secret written ballot, after not less than 90 days' notice, and if the majority of eligible employees under the retirement system vote in favor of coverage.

The Governor of a State must personally certify that certain Social Security Act requirements under the referendum procedure have been properly carried out.

In most States, all members of a retirement system (with minor exceptions) must be covered if any members are covered.

Employees of any institution of higher learning (including a junior college or a teachers' college) under a retirement system can, if the State so desires, be covered seperate coverage group. 1 or more political subdivisions may be considered as a separate coverage group even though its employees are under a statewide retirement system.

OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE-Continued

Item

H.R. 12580

B. Employees.

No change.

1. Domestic workers

Lowers coverage requirements to $25 or more

during a calendar quarter from 1 employer.
Excludes from coverage all earnings of
domestic workers who are under the age

of 16.
Effective date: Jan. 1, 1961.
Bill: Sec. 108.
House report: Pp. 17-18, 83–84.

2. Casual labor...

Lowers coverage requirements to $25 or more

during a calendar quarter from 1 employer.
Excludes from coverage all earnings of casual

workers who are under the age of 16.
Effective date: Jan. 1, 1961.
Bill: Sec. 108.
House report: Pp. 17-18, 83-84.

3. State and local government employees.

Permits the Governor of a State to delegate to

a designated State official the making of the
certifications required under the referendum

procedure.
Bill: Sec. 102(a).
House report: pp. 24, 61, 62.

Allows employees of municipal or county hos

pital to be treated as a separate coverage

group if the State so desires.
Bill: Sec. 102(g).
House report: pp. 25, 67, 68.

а

OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE-Continued

I. COVERAGE-Continued

Item

Present law

H.R. 12580

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Allows agreements or modifications made after

1959 to begin as early as 5 years before the year in which an agreement is made, but no earlier than Jan. 1, 1956. Where a retirement system is covered as a single retirement system coverage group, permits the State to provide different beginning dates for coverage of the employees of different

political subdivisions. Bill: Sec. 102(c). House report: pp. 22-23, 62–63. Provides that where an individual who has

chosen not to be covered under the divided retirement system provision becomes a member of a different retirement system group because of the annexation of the employing political subdivision by another political subdivision, or through some other action taken by a political subdivision, such individual will continue to be excluded from

coverage. Bill: Sec. 102(b). House report: pp. 23-24, 62.

Exceptions to general law authorizing coverage in named States:

(1) Split-system provision.--Authorizes California, Connecticut, Florida, Georgia, Hawaii, Massachusetts, Minnesota, New York, North Dakota, Pennsylvania, Rhode Island, Tennessee, Vermont, Washington, and Wisconsin, and all inter-State instrumentalities, at their option, to extend coverage to the members of a State retirement system by dividing such a system into 2 divisions, 1 to be composed of those persons who desire coverage and the other of those persons who do not wish coverage, provided that new members of the retirement system coverage group are covered compulsorily. Also authorizes similar treatment of political subdivision retirement systems of these States.

(2) Policemen and firemen.-Allows the States of Alabama, California, Florida, Georgia, Hawaii, Kansas, Maryland, New York, North Carolina North Dakota, Oregon, South Carolina, South Dakota, Tennessee, Vermont, and Washington and all inter-State instrumentalities to make coverage available to policemen and firemen in those States, subject to the same conditions that apply to coverage of other employees who are under State and local retirement systems, except that where the policemen and firemen are in a retirement system with other classes of employees the policemen and firemen may, at the option of the State, hold a separate referendum and

be covered as a separate group. Covers employees of religious, charitable, edu

cational, and other nonprofit organizations (which are exempt from income tax and are described in sec. 501(c)(3) of the Internal Revenue Code) on a voluntary basis if

Adds Virginia to the list.
Bill: Sec. 102(d).
House report: p. 24, 63.
Validation of coverage.—Validates the coverage

of certain teachers and school administrar tive personnel who, for the period Mar. 1, 1951, to Oct. 1, 1959, were reported under the Mississippi coverage agreement as State employees, rather than as employees of the

various school districts in Mississippi. Bill: Sec. 102(h). House report: p. 25, 68.

4. Employees of nonprofit organizations.

OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE-Continued

I. COVERAGE--Continued

Item

Present law

H.R. 12580

B. Employees-Continued

4. Employees of nonprofit organization-Con.

Eliminates requirement that 3 of the employees

concur in filing a certificate. Effective date: Certificates filed after date of

enactment. Bill: Sec. 106(a). House report: pp. 20, 78–79.

a. the employer organization certifies that it desires to extend coverage to its employees, and

b. at least % of the organization's employees concur in the filing of a waiver certificate. Employees who do not concur in the filing of the certificate are not covered except that all employees hired after & certificate becomes effective are covered.

Waiver certificate may be made effective at the option of the organization on the 1st day of the quarter in which the certificate is filed or the 1st day of the succeeding

quarter. Employees of nonprofit organizations who are

in positions covered by State and local retirement systems and are members or eligible to become members of such systems must be treated apart from those not in such positions. Certificates must be filed separately for each group and %% of the employees in each group must concur in the filing of its certificate. All new employees who belong to a group for which a certificate has been filed are automatically covered, and new employees who belong to a group for which a certificate has not been filed are not covered.

Eliminates requirement that % of the employees

in the group concur in filing a certificate. Effective date: Certificates filed after date of

enactment. Bill: Sec. 106(a). House report: pp. 20, 78–79.

Validates wages for services performed after

1950 and before July 1, 1960, by certain employees of nonprofit organizations where the organization has been reporting and paying taxes but did not comply with certain provisions of the law: i.e., failed to file a certificate, filed it too late to cover employees who had left, or failed to obtain the signatures of

employees who wished coverage. Effective date: No benefits payable or in

creased for month of enactment or prior month; no lump sum death payment payable or increased if individual died prior to

date of enactment. Bill: Sec. 106(b). House report: pp. 20-21, 79-80. Validates remuneration erroneously reported

as self-employment income for taxable years ending after 1954 and before 1962 by certain

lay missionaries (and others). Effective date: No benefits payable or in

creased for months of enactment or prior month; no lump sum death payment payable or increased if individual died prior to date

of enactment. Bill: Sec. 106(c). House report: pp. 20, 80-81.

H.R. 12580

Covers parents in the employ of their children,

but not if it is domestic service performed in the home of the child or other work not in

the course of the child's trade or business. Effective as to services after 1960. Bill: Sec. 105. House report: pp. 18-19, 78. Extends coverage to Guam and American

Samoa. Effective for employees, except governmental

employees, on Jan, 1, 1960, and for selfemployed for taxable years beginning after

1960. Coverage of employees of the governments of Guam

and

OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE-Continued

I. COVERAGE-Continued

Item

Present law

B. Employees—Continued)
5. Family employment Excludes persons in the employ of a son,

daughter, or spouse; or child under 21, if
in the employ of a parent.

C. Geographical scope..

Covers the 50 States, Puerto Rico and the

Virgin Islands, and the District of Colum-
bia.

American Samoa-including members of the legislature, their political subdivisions, and their wholly owned instrumentalities--would be on a mandatory basis rather than under the State-Federal

agreement method. Coverage will not be extended to these em

ployees until the legislatures of these territories express a desire for coverage. In no

event can this coverage start before 1961. Filipino workers who come to Guam under

contract to work temporarily will be ex

cluded from coverage. The Secretary of the Treasury would have the

tax-collecting authority, and would be

authorized to delegate this function,
Bill: Sec. 103.
House report: pp. 19-20, 68–75.
No change except-

Excludes the following from coverage within
the United States:

a. Nonresident aliens engaged in self-
employment.

b. Employees of foreign governments and their instrumentalities.

b. Covers U.S. citizens so employed within the United States on self-employment basis. Effective as to taxable years ending after 1960; for retirement test purposes effective for years beginning after date of enactment.

Bill: Sec. 107.
House report: pp. 22, 82-83.
c. Covers as in b. (above).

c. Employees of international organiza-
tions entitled to certain privileges under the
International Organizations Immunities
Act.

d. Employees on foreign registered aircraft or ships who also perform services while the plane or ship is outside of the United States, if the employee is not a citizen of the United States or the employer is not an American employer.

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