(4) in case such person is entitled to benefits under section 202 (e), (f), (g), or (h), as though this section and section 208 had not been enacted, or

(5) in case such person is entitled to benefits under section 202 (d), as though (i) no person is entitled to benefits under section 202 (e), (f), (g), or (h) for such subsequent month, and (ii) the maximum of benefits payable, as described in paragraph (3), is such maximum less the amount of each person's benefit for such month determined pursuant to paragraph (4).

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COMPUTATIONS AND RECOMPUTATIONS OF PRIMARY INSURANCE AMOUNTS

SEC. 303. (g) (1) In the case of any individual who both was fully insured and had attained retirement age prior to 1961 and (A) who becomes entitled to old-age insurance benefits after 1960, or (B) who dies after 1960 without being entitled to such benefits, then, notwithstanding the amendments made by the preceding subsections of this section, the Secretary shall also compute such individual's primary insurance amount on the basis of such individual's average monthly wage determined under the provisions of section 215 of the Social Security Act in effect prior to the enactment of this Act with a closing date determined under section 215 (b) (3) (B) of such Act as then in effect, but only if such closing date would have been applicable to such computation had this section not been enacted. If the primary insurance amount resulting from the use of such an average monthly wage is higher than the primary insurance amount resulting from the use of an average monthly wage determined pursuant to the provisions of section 215 of the Social Security Act, as amended by the Social Security Amendments of 1960, such higher primary insurance amount shall be the individual's primary insurance amount for purposes of such section 215. The terms used in this subsection shall have the meaning assigned to them by title II of the Social Security Act. (2) Notwithstanding the amendments made by the preceding subsections of this section, in the case of any individual who was entitled (without regard to the provisions of section 223 (b) of the Social Security Act) to a disability insurance benefit under such section 223 for the month before the month in which he became entitled to an old-age insurance benefit under section 202 (a) of such Act, or in which he died, and such disability insurance benefit was based upon a primary insurance amount determined under the provisions of section 215 of the Social Security Act in effect prior to the enactment of this Act, the Secretary shall, in applying the provisions of such section 215 (a) (except paragraph (4) thereof), for purposes of determining benefits payable under section 202 of such Act on the basis of such individual's wages and self-employment income, determine such individual's average monthly wage under the provisions of section 215 of the Social Security Act in effect prior to the enactment of this Act. The provisions of this paragraph shall not apply with respect to any such individual, entitled to such old-age insurance benefits, (i) who applies, after 1960, for a recomputation (to which he is entitled) of his primary insurance amount under section 215 (f) (2) of such Act, or (ii) who dies after 1960 and meets the conditions for a recomputa

tion of his primary insurance amount under section 215 (f) (4) of such Act.

(h) In any case where application for recomputation under section 215 (f) (3) of the Social Security Act is filed on or after the date of the enactment of this Act with respect to an individual for whom the last previous computation of the primary insurance amount was based on an application filed prior to 1961, or who died before 1961, the provisions of section 215 of such Act as in effect prior to the enactment of this Act shall apply except that—

(1) such recomputation shall be made as provided in section 215 (a) of the Social Security Act (as in effect prior to the enactment of this Act) and as though such individual first became entitled to old-age insurance benefits in the month in which he filed his application for such recomputation or died without filing such an application, and his closing date for such purposes shall be as specified in such section 215 (f) (3); and

(2) the provisions of section 215 (b) (4) of the Social Security Act (as in effect prior to the enactment of this Act) shall apply only if they were applicable to the last previous computation of such individual's primary insurance amount, or would have been applicable to such computation if there had been taken into

account

(A) his wages and self-employment income in the year in which he became entitled to old-age insurance benefits or filed application for the last previous recomputation of his primary insurance amount, where he is living at the time of the application for recomputation under this subsection, or

(B) his wages and self-employment income in the year in which he died without becoming entitled to old-age insurance benefits, or (if he was entitled to such benefits) the year in which application was filed for the last previous computation of his primary insurance amount or in which he died, whichever first occurred, where he has died at the time of the application for such recomputation.

If the primary insurance amount of an individual was recomputed under section 215 (f) (3) of the Social Security Act as in effect prior to the enactment of this Act, and such amount would have been larger if the recomputation had been made under such section as modified by this subsection, then the Secretary shall recompute such primary insurance amount under such section as so modified, but only if an application for such recomputation is filed on or after the date of the enactment of this Act. A recomputation under the preceding sentence shall be effective for and after the first month for which the last previous recomputation of such individual's primary insurance amount under such section 215 was effective, but in no event for any month prior to the twenty-fourth month before the month in which the application for a recomputation is filed under the preceding

sentence.

(i) (1) In the case of an application for a recomputation under section 215 (f) (2) of the Social Security Act filed after 1954 and prior to 1961, the provisions of section 215 (f) (2) of such Act in effect prior to the enactment of this Act shall apply.

(2) In the case of an individual who died after 1954 and prior to 1961 and who was entitled to an old-age insurance benefit under sec

tion 202 (a) at the time of his death, the provisions of section 215 (f) (4) of the Social Security Act in effect prior to the enactment of this Act shall apply.

(j) In the case of an individual whose average monthly wage is computed under the provisions of section 215 (b) of the Social Security Act, as amended by this Act, and

(1) who is entitled, by reason of the provisions of section 202 (j) (1) or section 223 (b) of the Social Security Act, to a monthly benefit for any month prior to January 1961, or

(2) who is (or would, but for the fact that such recomputation would not result in a higher primary insurance amount for such individual, be) entitled, by reason of section 215 (f) of the Social Security Act, to have his primary insurance amount recomputed effective for a month prior to January 1961,

his average monthly wage as determined under the provisions of such section 215 (b) shall be his average monthly wage for the purposes of determining his primary insurance amount for such prior month.

SPECIAL INSURED STATUS TEST IN CERTAIN CASES FOR DISABILITY PURPOSES

SEC. 404. (a) In the case of any individual who does not meet the requirements of section 216 (i) (3) of the Social Security Act with respect to any quarter, or who is not insured for disability insurance benefits as determined under section 223 (c) (1) of such Act with respect to any month in a quarter, such individual shall be deemed to have met such requirements with respect to such quarter or to be so insured with respect to such month of such quarter, as the case may be, if

(1) he had a total of not less than twenty quarters of coverage (as defined in section 213 of such Act) during the period ending with the close of such quarter, and

(2) all of the quarters elapsing after 1950 and up to but excluding such quarter were quarters of coverage with respect to him and there were not fewer than six such quarters of coverage. (b) Subsection (a) shall apply only in the case of applications for disability insurance benefits under section 223 of the Social Security Act, or for disability determinations under section 216 (i) of such Act, filed in or after the month in which this Act is enacted, and then only with respect to an individual who, but for such subsection (a), would not meet the requirements for a period of disability under section 216 (i) with respect to the quarter in which this Act is enacted or any prior quarter and would not meet the requirements for benefits under section 223 with respect to the month in which this Act is enacted or any prior month. No benefits under title II of the Social Security Act for the month in which this Act is enacted or any prior month shall be payable or increased by reason of the amendment made by such subsection.

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AMENDMENT OF TITLE XII OF THE SOCIAL SECURITY ACT

SEC. 522. (b) (1) No amount shall be transferred on or after the date of the enactment of this Act from the Federal unemployment account to the account of any State in the Unemployment Trust Fund

pursuant to any application made under section 1201 (a) of the Social Security Act as in effect before such date; except that, if—

(A) some but not all of an amount certified by the Secretary of Labor to the Secretary of the Treasury for transfer to the account of any State was transferred to such account before such date, and

(B) the Governor of such State, after the date of the enactment of this Act, requests the Secretary of the Treasury to transfer all or any part of the remainder to such account,

the Secretary of the Treasury shall, prior to audit or settlement by the General Accounting Office, transfer from the Federal unemployment account to the account of such State in the Unemployment Trust Fund the amount so requested or (if smaller) the amount available in the Federal unemployment account at the time of the transfer. No such amount shall be transferred under this paragraph after the oneyear period beginning on the date of the enactment of this Act.

(2) For purposes of section 3302 (c) of the Federal Unemployment Tax Act and titles IX and XII of the Social Security Act, if any amount is transferred pursuant to paragraph (1) to the unemployment account of any State, such amount shall be treated as an advance made before the date of the enactment of this Act.

FEDERAL INSTRUMENTALITIES

SEC. 531. (g) Notwithstanding section 203 (b) of the Farm Credit Act of 1959, sections 3305 (b), 3306 (c) (6), and 3308 of the Internal Revenue Code of 1954 and sections 1501 (a) and 1507 (a) of the Social Security Act shall be applicable, according to their terms, to the Federal land banks, Federal intermediate credit banks, and banks for cooperatives.

EXTENSION OF FEDERAL UNEMPLOYMENT TAX ACT

SEC. 543. (b) The unemployment compensation law of the Commonwealth of Puerto Rico shall be considered as meeting the requirements of

(1) Section 3304 (a) (2) of the Federal Unemployment Tax Act, if such law provides that no compensation is payable with respect to any day of unemployment occurring before January 1, 1959.

(2) Section 3304 (a) (3) of the Federal Unemployment Tax Act and section 303 (a) (4) of the Social Security Act, if such law contains the provisions required by those sections and if it requires that, on or before February 1, 1961, there be paid over to the Secretary of the Treasury, for credit to the Puerto Rico account in the Unemployment Trust Fund, an amount equal to the excess of

(A) the aggregate of the moneys received in the Puerto Rico unemployment fund before January 1, 1961, over

(B) the aggregate of the moneys paid from such fund before January 1, 1961, as unemployment compensation or as refunds of contributions erroneously paid.

REPEALED PROVISIONS OF THE SOCIAL

SECURITY ACT

SOCIAL SECURITY ACT OF 1935

[Note.-The following sections of the original Social Security Act remain effective as indicated in footnotes to the text.]

TITLE II-FEDERAL OLD-AGE BENEFITS1

DEFINITIONS'

SEC. 210. When used in this title

(a) The term "wages" means all remuneration for employment, including the cash value of all remuneration paid in any medium other than cash; except that such terms shall not include that part of the remuneration which, after remuneration equal to $3,000 has been paid to an individual by an employer with respect to employment during any calendar year, is paid to such individual by such employer with respect to employment during such calendar year.

8

(b) The term "employment" means any service of whatever nature, performed within the United States by an employee for his employer, except

(1) Agricultural labor;

(2) Domestic service in a private home;

(3) Casual labor not in the course of the employer's trade or business;

(4) Service performed as an officer or member of the crew of a vessel documented under the laws of the United States or of any foreign country;

(5) Service performed in the employ of the United States Government or of an instrumentality of the United States;

(6) Service performed in the employ of a State, a political subdivision thereof, or an instrumentality of one or more States or political subdivisions;

(7) Service performed in the employ of a corporation, community chest, fund, or foundation, organized and operated exclu

1 This title as amended is shown beginning at p. 9.

These definitions of "wages" and "employment" remain effective as to services performed in 1937, 1938, or 1939. See secs. 209 and 210 of the Social Security Act, as amended, pp. 57 and 60, respectively, and former sec. 209 (a) and (b), pp. 236 and 237, respectively.

See sec. 902 (f) of Social Security Act Amendments of 1939, p. 160, with respect to exemption of service performed prior to January 1, 1940, in the employ of foreign governments and their wholly owned instrumentalities.

Sec. 17 of the Railroad Retirement Act of 1937 modified the term "employment" as used above as follows:

"The term 'employment,' as defined in subsection (b) of section 210 of Title II of the Social Security Act, shall not include service performed by an individual as an employee as defined in section 1 (b).”

See sec. 2 of the Act of August 11, 1939, p. 351, with respect to exemption of service performed prior to January 1, 1940, in clearing land after a hurricane.