42 U.S.C. § 417 — Benefits for veterans

Page 2036 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 417 old-age insurance benefits under section 202 of such Act (as in effect prior to the enactment of this Act) for any month prior to November 1956 shall be deemed to have attained the age of sixty-two in 1956 or, if earlier, the year in which she died; ‘‘(B) a woman shall not, by reason of the amend- ment made by subsection (a), be deemed to be a fully insured individual before November 1956 or the month in which she died, whichever month is the earlier; and ‘‘(C) the amendment made by subsection (a) shall not be applicable in the case of any woman who was eligible for old-age insurance benefits under such sec- tion 202 for any month prior to November 1956. A woman shall, for purposes of this paragraph, be deemed eligible for old-age insurance benefits under section 202 of the Social Security Act for any month if she was or would have been, upon filing application therefor in such month, entitled to such benefits for such month. ‘‘(4) For purposes of section 209(i) of such Act [42 U.S.C. 409(i)], the amendment made by subsection (a) shall apply only with respect to remuneration paid after October 1956.’’ EFFECTIVE DATE OF 1954 AMENDMENT Amendment by section 106(d) of act Sept. 1, 1954, ap- plicable with respect to monthly benefits under sub- chapter II of this chapter for months after June 1955, and with respect to lump-sum death payments under such subchapter in the case of deaths occurring after June 1955; but that no recomputation of benefits by reason of such amendments shall be regarded as a re- computation for purposes of section 415(f) of this title, see section 106(h) of act Sept. 1, 1954, set out as a note under section 413 of this title. EFFECTIVE AND TERMINATION DATE OF 1952 AMENDMENT For effective and termination dates of amendment by Act July 18, 1952, see section 3(f), (g) of act July 18, 1952, set out as a note under section 413 of this title. EFFECTIVE DATE Section applicable (1) in case of monthly benefits for months after August 1950, and (2) in the case of lump- sum death payments with respect to deaths after Au- gust 1950, see section 104(b) of act Aug. 28, 1950, set out as an Effective Date of 1950 Amendment note under sec- tion 409 of this title. RETROACTIVE BENEFITS For provisions relating to entitlement to retroactive benefits under section 2 of Pub. L. 98–460 (which amend- ed subsec. (i)(2)(D) of this section), see section 2(f) of Pub. L. 98–460, set out as a note under section 423 of this title. PROMULGATION OF REGULATIONS For provisions requiring the Secretary of Health and Human Services to prescribe regulations necessary to implement amendment to subsec. (i)(2)(D) of this sec- tion by section 2(b) of Pub. L. 98–460 not later than 180 days after Oct. 9, 1984, see section 2(g) of Pub. L. 98–460, set out as a note under section 423 of this title. STUDY OF EFFECT OF RAISING RETIREMENT AGE ON THOSE UNLIKELY TO BENEFIT FROM IMPROVEMENTS IN LONGEVITY Pub. L. 98–21, title II, § 201(d), Apr. 20, 1983, 97 Stat. 109, required the Secretary to conduct a comprehensive study and analysis of the implications of the changes made by this section (amending sections 402, 403, 415, 416, and 423 of this title) in retirement age in the case of certain individuals and submit to Congress no later than January 1, 1986, a full report on the study and analysis, including any recommendations for legisla- tive changes. SPECIAL INSURED STATUS TEST IN CERTAIN CASES FOR DISABILITY PURPOSES Pub. L. 86–778, title IV, § 404, Sept. 13, 1960, 74 Stat. 970, provided that: ‘‘(a) In the case of any individual who does not meet the requirements of section 216(i)(3) of the Social Secu- rity Act [42 U.S.C. 416(i)(3)] with respect to any quarter, or who is not insured for disability insurance benefits as determined under section 223(c)(1) of such Act [42 U.S.C. 423(c)(1)] with respect to any month in a quarter, such individual shall be deemed to have met such re- quirements with respect to such quarter or to be so in- sured 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 [42 U.S.C. 413]) 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 ap- plications for disability insurance benefits under sec- tion 223 of the Social Security Act, or for disability de- terminations under section 216(i) of such Act, filed in or after the month in which this Act is enacted [Sep- tember 1960], and then only with respect to an indi- vidual who, but for such subsection (a), would not meet the requirements for a period of disability under sec- tion 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 [42 U.S.C. 401 et seq.] 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.’’ § 417. Benefits for veterans (a) Determination of benefits (1) For purposes of determining entitlement to and the amount of any monthly benefit for any month after August 1950, or entitlement to and the amount of any lump-sum death payment in case of a death after such month, payable under this subchapter on the basis of the wages and self-employment income of any World War II veteran, and for purposes of section 416(i)(3) of this title, such veteran shall be deemed to have been paid wages (in addition to the wages, if any, actually paid to him) of $160 in each month during any part of which he served in the active military or naval service of the United States during World War II. This subsection shall not be applicable in the case of any monthly benefit or lump-sum death payment if— (A) a larger such benefit or payment, as the case may be, would be payable without its ap- plication; or (B) a benefit (other than a benefit payable in a lump sum unless it is a commutation of, or a substitute for, periodic payments) which is based, in whole or in part, upon the active military or naval service of such veteran dur- ing World War II is determined by any agency or wholly owned instrumentality of the United States (other than the Department of Vet- erans Affairs) to be payable by it under any other law of the United States or under a sys- tem established by such agency or instrumen- tality. The provisions of clause (B) of this paragraph shall not apply in the case of any monthly ben- Page 2037 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 417 efit or lump-sum death payment under this sub- chapter if its application would reduce by $0.50 or less the primary insurance amount (as com- puted under section 415 of this title prior to any recomputation thereof pursuant to section 415(f) of this title) of the individual on whose wages and self-employment income such benefit or payment is based. The provisions of clause (B) of this paragraph shall also not apply for purposes of section 416(i)(3) of this title. (2) Upon application for benefits or a lump- sum death payment on the basis of the wages and self-employment income of any World War II veteran, the Commissioner of Social Security shall make a decision without regard to clause (B) of paragraph (1) of this subsection unless the Commissioner has been notified by some other agency or instrumentality of the United States that, on the basis of the military or naval serv- ice of such veteran during World War II, a ben- efit described in clause (B) of paragraph (1) of this subsection has been determined by such agency or instrumentality to be payable by it. If the Commissioner has not been so notified, the Commissioner of Social Security shall then as- certain whether some other agency or wholly owned instrumentality of the United States has decided that a benefit described in clause (B) of paragraph (1) of this subsection is payable by it. If any such agency or instrumentality has de- cided, or thereafter decides, that such a benefit is payable by it, it shall so notify the Commis- sioner of Social Security, and the Commissioner of Social Security shall certify no further bene- fits for payment or shall recompute the amount of any further benefits payable, as may be re- quired by paragraph (1) of this subsection. (3) Any agency or wholly owned instrumen- tality of the United States which is authorized by any law of the United States to pay benefits, or has a system of benefits which are based, in whole or in part, on military or naval service during World War II shall, at the request of the Commissioner of Social Security, certify to the Commissioner, with respect to any veteran, such information as the Commissioner of Social Se- curity deems necessary to carry out the Com- missioner’s functions under paragraph (2) of this subsection. (b) Determination of insurance status (1) Subject to paragraph (3), any World War II veteran who died during the period of three years immediately following his separation from the active military or naval service of the United States shall be deemed to have died a fully insured individual whose primary insur- ance amount is the amount determined under section 415(c) of this title as in effect in Decem- ber 1978. Notwithstanding section 415(d) of this title as in effect in December 1978, the primary insurance benefit (for purposes of section 415(c) of this title as in effect in December 1978) of such veteran shall be determined as provided in this subchapter as in effect prior to August 28, 1950, except that the 1 per centum addition pro- vided for in section 409(a)(4)(B) of this title as in effect prior to August 28, 1950, shall be applica- ble only with respect to calendar years prior to 1951. This subsection shall not be applicable in the case of any monthly benefit or lump-sum death payment if— (A) a larger such benefit or payment, as the case may be, would be payable without its ap- plication; (B) any pension or compensation is deter- mined by the Secretary of Veterans Affairs to be payable by him on the basis of the death of such veteran; (C) the death of the veteran occurred while he was in the active military or naval service of the United States; or (D) such veteran has been discharged or re- leased from the active military or naval serv- ice of the United States subsequent to July 26, 1951. (2) Upon an application for benefits or a lump- sum death payment on the basis of the wages and self-employment income of any World War II veteran, the Commissioner of Social Security shall make a decision without regard to para- graph (1)(B) of this subsection unless the Com- missioner has been notified by the Secretary of Veterans Affairs that pension or compensation is determined to be payable by that Secretary by reason of the death of such veteran. The Commissioner of Social Security shall there- upon report such decision to the Secretary of Veterans Affairs. If the Secretary of Veterans Affairs in any such case has made an adjudica- tion or thereafter makes an adjudication that any pension or compensation is payable under any law administered by it, the Secretary of Veterans Affairs shall notify the Commissioner of Social Security, and the Commissioner of So- cial Security shall certify no further benefits for payment, or shall recompute the amount of any further benefits payable, as may be required by paragraph (1) of this subsection. Any payments theretofore certified by the Commissioner of So- cial Security on the basis of paragraph (1) of this subsection to any individual, not exceeding the amount of any accrued pension or compensa- tion payable to him by the Secretary of Vet- erans Affairs, shall (notwithstanding the provi- sions of section 5301 of title 38) be deemed to have been paid to him by that Secretary on ac- count of such accrued pension or compensation. No such payment certified by the Commissioner of Social Security, and no payment certified by the Commissioner for any month prior to the first month for which any pension or compensa- tion is paid by the Secretary of Veterans Affairs shall be deemed by reason of this subsection to have been an erroneous payment. (3)(A) The preceding provisions of this sub- section shall apply for purposes of determining the entitlement to benefits under section 402 of this title, based on the primary insurance amount of the deceased World War II veteran, of any surviving individual only if such surviving individual makes application for such benefits before the end of the 18-month period after No- vember 1990. (B) Subparagraph (A) shall not apply if any person is entitled to benefits under section 402 of this title based on the primary insurance amount of such veteran for the month preceding the month in which such application is made. (c) Filing proof of support In the case of any World War II veteran to whom subsection (a) is applicable, proof of sup- Page 2038 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 417 port required under section 402(h) of this title may be filed by a parent at any time prior to July 1951 or prior to the expiration of two years after the date of the death of such veteran, whichever is the later. (d) Definitions For the purposes of this section— (1) The term ‘‘World War II’’ means the pe- riod beginning with September 16, 1940, and ending at the close of July 24, 1947. (2) The term ‘‘World War II veteran’’ means any individual who served in the active mili- tary or naval service of the United States at any time during World War II and who, if dis- charged or released therefrom, was so dis- charged or released under conditions other than dishonorable after active service of nine- ty days or more or by reason of a disability or injury incurred or aggravated in service in line of duty; but such term shall not include any individual who died while in the active military or naval service of the United States if his death was inflicted (other than by an enemy of the United States) as lawful punish- ment for a military or naval offense. (e) Determination based on wages and self-em- ployment (1) For purposes of determining entitlement to and the amount of any monthly benefit or lump- sum death payment payable under this sub- chapter on the basis of wages and self-employ- ment income of any veteran (as defined in para- graph (4) of this subsection), and for purposes of section 416(i)(3) of this title, such veteran shall be deemed to have been paid wages (in addition to the wages, if any, actually paid to him) of $160 in each month during any part of which he served in the active military or naval service of the United States on or after July 25, 1947, and prior to January 1, 1957. This subsection shall not be applicable in the case of any monthly benefit or lump-sum death payment if— (A) a larger such benefit or payment, as the case may be, would be payable without its ap- plication; or (B) a benefit (other than a benefit payable in a lump sum unless it is a commutation of, or a substitute for, periodic payments) which is based, in whole or in part, upon the active military or naval service of such veteran on or after July 25, 1947, and prior to January 1, 1957, is determined by any agency or wholly owned instrumentality of the United States (other than the Department of Veterans Affairs) to be payable by it under any other law of the United States or under a system established by such agency or instrumentality. The provisions of clause (B) of this paragraph shall not apply in the case of any monthly ben- efit or lump-sum death payment under this sub- chapter if its application would reduce by $0.50 or less the primary insurance amount (as com- puted under section 415 of this title prior to any recomputation thereof pursuant to subsection (f) of section 415 of this title) of the individual on whose wages and self-employment income such benefit or payment is based. The provisions of clause (B) of this paragraph shall also not apply for purposes of section 416(i)(3) of this title. In the case of monthly benefits under this subchapter for months after December 1956 (and any lump-sum death payment under this sub- chapter with respect to a death occurring after December 1956) based on the wages and self-em- ployment income of a veteran who performed service (as a member of a uniformed service) to which the provisions of section 410(l)(1) of this title are applicable, wages which would, but for the provisions of clause (B) of this paragraph, be deemed under this subsection to have been paid to such veteran with respect to his active mili- tary or naval service performed after December 1950 shall be deemed to have been paid to him with respect to such service notwithstanding the provisions of such clause, but only if the bene- fits referred to in such clause which are based (in whole or in part) on such service are payable solely by the Army, Navy, Air Force, Marine Corps, Coast Guard, Coast and Geodetic Survey, National Oceanic and Atmospheric Administra- tion Corps, or Public Health Service. (2) Upon application for benefits or a lump- sum death payment on the basis of the wages and self-employment income of any veteran, the Commissioner of Social Security shall make a decision without regard to clause (B) of para- graph (1) of this subsection unless the Commis- sioner has been notified by some other agency or instrumentality of the United States that, on the basis of the military or naval service of such veteran on or after July 25, 1947, and prior to January 1, 1957, a benefit described in clause (B) of paragraph (1) of this subsection has been de- termined by such agency or instrumentality to be payable by it. If the Commissioner has not been so notified, the Commissioner of Social Se- curity shall then ascertain whether some other agency or wholly owned instrumentality of the United States has decided that a benefit de- scribed in clause (B) of paragraph (1) of this sub- section is payable by it. If any such agency or instrumentality has decided, or thereafter de- cides, that such a benefit is payable by it, it shall so notify the Commissioner of Social Secu- rity, and the Commissioner of Social Security shall certify no further benefits for payment or shall recompute the amount of any further bene- fits payable, as may be required by paragraph (1) of this subsection. (3) Any agency or wholly owned instrumen- tality of the United States which is authorized by any law of the United States to pay benefits, or has a system of benefits which are based, in whole or in part, on military or naval service on or after July 25, 1947, and prior to January 1, 1957, shall, at the request of the Commissioner of Social Security, certify to the Commissioner, with respect to any veteran, such information as the Commissioner of Social Security deems nec- essary to carry out the Commissioner’s func- tions under paragraph (2) of this subsection. (4) For the purposes of this subsection, the term ‘‘veteran’’ means any individual who served in the active military or naval service of the United States at any time on or after July 25, 1947, and prior to January 1, 1957, and who, if discharged or released therefrom, was so dis- charged or released under conditions other than dishonorable after active service of ninety days or more or by reason of a disability or injury in- Page 2039 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 417 1 See References in Text note below. curred or aggravated in service in line of duty; but such term shall not include any individual who died while in the active military or naval service of the United States if his death was in- flicted (other than by an enemy of the United States) as lawful punishment for a military or naval offense. (f) Right to annuity; waiver (1) In any case where a World War II veteran (as defined in subsection (d)(2)) or a veteran (as defined in subsection (e)(4)) has died or shall hereafter die, and his or her surviving spouse or child is entitled under subchapter III of chapter 83 of title 5 to an annuity in the computation of which his or her active military or naval service was included, clause (B) of subsection (a)(1) or clause (B) of subsection (e)(1) shall not operate (solely by reason of such annuity) to make such subsection inapplicable in the case of any monthly benefit under section 402 of this title which is based on his or her wages and self-em- ployment income; except that no such surviving spouse or child shall be entitled under section 402 of this title to any monthly benefit in the computation of which such service is included by reason of this subsection (A) unless such sur- viving spouse or child after December 1956 waives his or her right to receive such annuity, or (B) for any month prior to the first month with respect to which the Director of the Office of Personnel Management certifies to the Com- missioner of Social Security that (by reason of such waiver) no further annuity will be paid to such surviving spouse or child under such sub- chapter III on the basis of such veteran’s mili- tary or civilian service. Any such waiver shall be irrevocable. (2) Whenever a surviving spouse waives his or her right to receive such annuity such waiver shall constitute a waiver on his or her own be- half; a waiver by a legal guardian or guardians, or, in the absence of a legal guardian, the person (or persons) who has the child in his or her care, of the child’s right to receive such annuity shall constitute a waiver on behalf of such child. Such a waiver with respect to an annuity based on a veteran’s service shall be valid only if the sur- viving spouse and all children, or, if there is no surviving spouse, all the children, waive their rights to receive annuities under subchapter III of chapter 83 of title 5 based on such veteran’s military or civilian service. (g) Appropriation to trust funds (1) Within thirty days after April 20, 1983, the Commissioner of Social Security shall deter- mine the amount equal to the excess of— (A) the actuarial present value as of April 20, 1983, of the past and future benefit payments from the Federal Old-Age and Survivors Insur- ance Trust Fund, the Federal Disability Insur- ance Trust Fund, and the Federal Hospital In- surance Trust Fund under this subchapter and subchapter XVIII, together with associated ad- ministrative costs, resulting from the oper- ation of this section (other than this sub- section) and section 410 of this title as in ef- fect before the enactment of the Social Secu- rity Amendments of 1950,1 over (B) any amounts previously transferred from the general fund of the Treasury to such Trust Funds pursuant to the provisions of this sub- section as in effect immediately before April 20, 1983. Such actuarial present value shall be based on the relevant actuarial assumptions set forth in the report of the Board of Trustees of each such Trust Fund for 1983 under sections 401(c) and 1395i(b) of this title. Within thirty days after April 20, 1983, the Secretary of the Treasury shall transfer the amount determined under this paragraph with respect to each such Trust Fund to such Trust Fund from amounts in the general fund of the Treasury not otherwise appropriated. (2) The Commissioner of Social Security shall revise the amount determined under paragraph (1) with respect to each such Trust Fund in 1985 and each fifth year thereafter through 2010, as determined appropriate by the Commissioner of Social Security from data which becomes avail- able to the Commissioner after the date of the determination under paragraph (1) on the basis of the amount of benefits and administrative ex- penses actually paid from such Trust Fund under this subchapter or subchapter XVIII and the relevant actuarial assumptions set forth in the report of the Board of Trustees of such Trust Fund for such year under section 401(c) or 1395i(b) of this title. The Secretary of Health and Human Services shall revise the amount de- termined under paragraph (1) with respect to the Federal Hospital Insurance Trust Fund under subchapter XVIII in 2015 and each fifth year thereafter through such date, and using such data, as the Secretary determines appropriate on the basis of the amount of benefits and ad- ministrative expenses actually paid from such Trust Fund under subchapter XVIII and the rel- evant actuarial assumptions set forth in the re- port of the Board of Trustees of such Trust Fund for such year under section 1395i(b) of this title. Within 30 days after any such revision, the Sec- retary of the Treasury, to the extent provided in advance in appropriation Acts, shall transfer to such Trust Fund, from amounts in the general fund of the Treasury not otherwise appropriated, or from such Trust Fund to the general fund of the Treasury, such amounts as the Secretary of the Treasury determines necessary to take into account such revision. (h) Determination of veterans status (1) For the purposes of this section, any indi- vidual who the Commissioner of Social Security finds— (A) served during World War II (as defined in subsection (d)(1)) in the active military or naval service of a country which was on Sep- tember 16, 1940, at war with a country with which the United States was at war during World War II; (B) entered into such active service on or be- fore December 8, 1941; (C) was a citizen of the United States throughout such period of service or lost his United States citizenship solely because of his entrance into such service; (D) had resided in the United States for a pe- riod or periods aggregating four years during the five-year period ending on the day of, and Page 2040 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 417 was domiciled in the United States on the day of, such entrance into such active service; and (E)(i) was discharged or released from such service under conditions other than dishonor- able after active service of ninety days or more or by reason of a disability or injury in- curred or aggravated in service in line of duty, or (ii) died while in such service, shall be considered a World War II veteran (as defined in subsection (d)(2)) and such service shall be considered to have been performed in the active military or naval service of the United States. (2) In the case of any individual to whom para- graph (1) applies, proof of support required under section 402(f) or (h) of this title may be filed at any time prior to the expiration of two years after the date of such individual’s death or Au- gust 28, 1958, whichever is the later. (Aug. 14, 1935, ch. 531, title II, § 217, as added Aug. 28, 1950, ch. 809, title I, § 105, 64 Stat. 512; amend- ed July 18, 1952, ch. 945, § 5(a), (d)(1), 66 Stat. 773, 775; Aug. 14, 1953, ch. 483, § 1, 67 Stat. 580; Sept. 1, 1954, ch. 1206, title I, § 106(e), 68 Stat. 1081; Aug. 9, 1955, ch. 685, § 1, 69 Stat. 621; Aug. 1, 1956, ch. 837, title IV, §§ 404(a), (b), 406, 70 Stat. 872, 873, 875; Pub. L. 85–840, title III, § 314(a), (b), Aug. 28, 1958, 72 Stat. 1036, 1037; Pub. L. 85–857, § 13(i)(2), Sept. 2, 1958, 72 Stat. 1265; Pub. L. 86–778, title I, § 103(j)(2)(C), Sept. 13, 1960, 74 Stat. 937; Pub. L. 89–97, title III, § 322, July 30, 1965, 79 Stat. 396; Pub. L. 90–248, title IV, § 403(c), Jan. 2, 1968, 81 Stat. 932; Pub. L. 94–273, §§ 2(23), 16, Apr. 21, 1976, 90 Stat. 376, 379; Pub. L. 95–216, title II, § 205(c), Dec. 20, 1977, 91 Stat. 1529; Pub. L. 97–35, title XXII, § 2201(c)(7), Aug. 13, 1981, 95 Stat. 832; Pub. L. 97–123, § 2(g), Dec. 29, 1981, 95 Stat. 1661; Pub. L. 98–21, title I, § 151(a), title III, § 308, Apr. 20, 1983, 97 Stat. 103, 115; Pub. L. 98–369, div. B, title VI, § 2663(a)(12), (j)(3)(A)(ii), July 18, 1984, 98 Stat. 1164, 1170; Pub. L. 101–239, title X, § 10208(d)(2)(A)(iv), Dec. 19, 1989, 103 Stat. 2481; Pub. L. 101–508, title V, § 5117(b), Nov. 5, 1990, 104 Stat. 1388–277; Pub. L. 102–40, title IV, § 402(d)(2), May 7, 1991, 105 Stat. 239; Pub. L. 102–54, § 13(q)(3)(A)(i), (D), (E), June 13, 1991, 105 Stat. 279; Pub. L. 103–296, title I, § 107(a)(4), Aug. 15, 1994, 108 Stat. 1478; Pub. L. 114–74, title VIII, § 842, Nov. 2, 2015, 129 Stat. 617.) Editorial Notes REFERENCES IN TEXT The Social Security Amendments of 1950, referred to in subsec. (g)(1)(A), probably means act Aug. 28, 1950, ch. 809, 64 Stat. 477, known as the Social Security Act Amendments of 1950. For complete classification of this Act to the Code, see Short Title of 1950 Amendment note set out under section 1305 of this title and Tables. AMENDMENTS 2015—Subsec. (g)(2). Pub. L. 114–74 inserted ‘‘through 2010’’ after ‘‘each fifth year thereafter’’ in first sen- tence and inserted after first sentence ‘‘The Secretary of Health and Human Services shall revise the amount determined under paragraph (1) with respect to the Federal Hospital Insurance Trust Fund under sub- chapter XVIII in 2015 and each fifth year thereafter through such date, and using such data, as the Sec- retary determines appropriate on the basis of the amount of benefits and administrative expenses actu- ally paid from such Trust Fund under subchapter XVIII and the relevant actuarial assumptions set forth in the report of the Board of Trustees of such Trust Fund for such year under section 1395i(b) of this title.’’ 1994—Subsec. (a)(2), (3). Pub. L. 103–296, § 107(a)(4), substituted ‘‘Commissioner of Social Security’’ for ‘‘Secretary’’ wherever appearing, ‘‘unless the Commis- sioner’’ for ‘‘unless he’’ and ‘‘If the Commissioner’’ for ‘‘If he’’ in par. (2), and ‘‘to the Commissioner’’ for ‘‘to him’’ and ‘‘the Commissioner’s functions’’ for ‘‘his functions’’ in par. (3). Subsec. (b)(2). Pub. L. 103–296, § 107(a)(4), substituted ‘‘Commissioner of Social Security’’ for ‘‘Secretary’’ wherever appearing except where appearing before ‘‘of Veterans Affairs’’ or after ‘‘that’’ and substituted ‘‘un- less the Commissioner’’ for ‘‘unless he’’ and ‘‘certified by the Commissioner’’ for ‘‘certified by him’’. Subsec. (e)(2), (3). Pub. L. 103–296, § 107(a)(4), sub- stituted ‘‘Commissioner of Social Security’’ for ‘‘Sec- retary’’ wherever appearing, ‘‘the Commissioner has’’ for ‘‘he has’’ in two places in par. (2), and ‘‘certify to the Commissioner’’ for ‘‘certify to him’’ and ‘‘the Com- missioner’s’’ for ‘‘his’’ in par. (3). Subsec. (f)(1). Pub. L. 103–296, § 107(a)(4), substituted ‘‘Commissioner of Social Security’’ for ‘‘Secretary’’. Subsec. (g). Pub. L. 103–296, § 107(a)(4), substituted ‘‘Commissioner of Social Security’’ for ‘‘Secretary’’ wherever appearing, except where appearing before ‘‘of the Treasury’’ and substituted ‘‘the Commissioner after’’ for ‘‘him after’’ in par. (2). Subsec. (h)(1). Pub. L. 103–296, § 107(a)(4), substituted ‘‘Commissioner of Social Security’’ for ‘‘Secretary’’ in introductory provisions. 1991—Subsec. (a)(1)(B). Pub. L. 102–54, § 13(q)(3)(A)(i), substituted ‘‘Department of Veterans Affairs’’ for ‘‘Vet- erans’ Administration’’. Subsec. (b)(1)(B). Pub. L. 102–54, § 13(q)(3)(D), sub- stituted ‘‘Secretary of Veterans Affairs to be payable by him’’ for ‘‘Veterans’ Administration to be payable by it’’. Subsec. (b)(2). Pub. L. 102–54, § 13(q)(3)(E), substituted references to Secretary of Veterans Affairs and Sec- retary for references to Veterans’ Administration and Administration, wherever appearing. Pub. L. 102–40 substituted ‘‘section 5301 of title 38’’ for ‘‘section 3101 of title 38’’. Subsec. (e)(1)(B). Pub. L. 102–54, § 13(q)(3)(A)(i), sub- stituted ‘‘Department of Veterans Affairs’’ for ‘‘Vet- erans’ Administration’’. 1990—Subsec. (b)(1). Pub. L. 101–508, § 5117(b)(1), sub- stituted ‘‘Subject to paragraph (3), any’’ for ‘‘Any’’. Subsec. (b)(3). Pub. L. 101–508, § 5117(b)(2), added par. (3). 1989—Subsec. (b)(1). Pub. L. 101–239 substituted ‘‘409(a)(4)(B)’’ for ‘‘409(e)(2)’’ in introductory provisions. 1984—Subsecs. (a)(2), (3), (b)(2). Pub. L. 98–369, § 2663(j)(3)(A)(ii), struck out ‘‘of Health, Education, and Welfare’’ after ‘‘Secretary’’ wherever appearing. Subsec. (d). Pub. L. 98–369, § 2663(a)(12)(A), realigned margins of subsec. (d). Subsec. (e)(1). Pub. L. 98–369, § 2663(a)(12)(B), inserted reference to National Oceanic and Atmospheric Admin- istration. Subsec. (e)(2), (3). Pub. L. 98–369, § 2663(j)(3)(A)(ii), struck out ‘‘of Health, Education, and Welfare’’ after ‘‘Secretary’’ wherever appearing. Subsec. (f)(1). Pub. L. 98–369, § 2663(a)(12)(C), sub- stituted ‘‘Director of the Office of Personnel Manage- ment’’ for ‘‘Civil Service Commission’’. Pub. L. 98–369, § 2663(j)(3)(A)(ii), struck out ‘‘of Health, Education, and Welfare’’ after ‘‘Secretary’’. 1983—Subsec. (f). Pub. L. 98–21, § 308(2), substituted ‘‘his or her’’ for ‘‘his’’ and ‘‘her’’ wherever appearing, except in cl. (A) of par. (1). Pub. L. 98–21, § 308(1), substituted ‘‘surviving spouse’’ for ‘‘widow’’ wherever appearing. Subsec. (g). Pub. L. 98–21, § 151(a), amended subsec. generally, substituting provisions relating to deter- mination of amounts to be appropriated to trust funds and to revisions of such amounts for provisions which Page 2041 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 417 had formerly required that, in September of 1965, 1970, and 1975, and in October 1980 and in every fifth October thereafter up to and including October 2010, the Sec- retary determine the amount which, if paid in equal in- stallments at the beginning of each fiscal year in the period beginning (A) with July 1, 1965, in the case of the first such determination, and (B) with the beginning of the first fiscal year commencing after the determina- tion in the case of all other such determinations, and ending with the close of September 30, 2015, would accu- mulate, with interest compounded annually, to an amount equal to the amount needed to place each of the Trust Funds and the Federal Hospital Insurance Trust Fund in the same position at the close of Sep- tember 30, 2015, as he estimated they would otherwise be in at the close of that date if section 410 of this title as in effect prior to the Social Security Act Amend- ments of 1950, and this section, had not been enacted, with the interest to be used in determining such amount to be the rate determined under section 401(d) of this title for public-debt obligations which were or could have been issued for purchase by the Trust Funds in the June preceding the September in which the de- terminations in 1965, 1970, and 1975 were made and in the September preceding the October in which all other determinations were made. 1981—Subsec. (b)(1). Pub. L. 97–123 struck out ‘‘, and as modified by the application of section 415(a)(6) of this title’’. Pub. L. 97–35 inserted ‘‘, and as modified by the appli- cation of section 415(a)(6) of this title’’. 1977—Subsec. (b)(1). Pub. L. 95–216 substituted ‘‘sec- tion 415(c) of this title as in effect in December 1978’’ for ‘‘section 415(c) of this title’’ in two places and ‘‘sec- tion 415(d) of this title as in effect in December 1978’’ for ‘‘section 415(d) of this title’’. 1976—Subsec. (g)(1). Pub. L. 94–273, § 16, substituted provisions relating to determination of the required amount for payment in September of 1965, 1970, and 1975, and in October 1980 and in every fifth October thereafter up to and including October 2010, and ending with the close of September 30, 2015, for provisions re- lating to determination of the required amount for pay- ment in September 1965, and in every fifth September thereafter up to and including September 2010, and end- ing with the close of June 30, 2015, and inserted provi- sions relating to the rate of interest for the determina- tion of the required amount in the Septembers pre- ceding the Octobers for all the other determinations subsequent to the 1975 determination. Subsec. (g)(2)(B), (3), (4). Pub. L. 94–273, § 2(23), sub- stituted ‘‘September’’ for ‘‘June’’ wherever appearing. 1968—Subsec. (f)(1). Pub. L. 90–248, § 403(c)(1), sub- stituted ‘‘subchapter III of chapter 83 of title 5’’ and ‘‘such subchapter III’’ for ‘‘the Civil Service Retire- ment Act of May 29, 1930, as amended,’’ and ‘‘such Act of May 29, 1930, as amended,’’, respectively. Subsec. (f)(2). Pub. L. 90–248, § 403(c)(2), substituted ‘‘subchapter III of chapter 83 of title 5’’ for ‘‘the Civil Service Retirement Act of May 29, 1930, as amended’’. 1965—Subsec. (g)(1). Pub. L. 89–97 substituted provi- sions requiring the Secretary to determine, in Sep- tember 1965, and every fifth September thereafter, up to and including September 2010, the amount necessary to place each of the Trust Funds and the Federal Hos- pital Insurance Trust Fund in the same position at the close of June 30, 2015, as they would otherwise have been in at the close of that date if section 410 of this title, as in effect prior to the Social Security Act Amendments of 1950, and this section had not been en- acted and providing for determination of interest in ac- cordance with section 401(d) of this title, for provisions authorizing the appropriation of sums necessary to meet additional costs resulting from payment of bene- fits after June 1956 under subsecs. (a), (b), and (e), in- cluding lump-sum death payments. Subsec. (g)(2). Pub. L. 89–97 substituted provisions au- thorizing appropriation to the Trust Funds and the Federal Hospital Insurance Trust Fund in the fiscal years ending with the close of June 30, 2015, for provi- sions requiring the Secretary to determine before Octo- ber 1, 1958, the amount necessary to place the Federal Old-Age and Survivors Insurance Trust Fund in the same position it would have been at the close of June 30, 1956, if section 410 of this title, as in effect prior to the Social Security Act Amendments of 1950, and this section had not been enacted and authorizing appro- priations during the first ten years beginning after such determination had been made aggregating the sum so determined plus interest. Subsec. (g)(3), (4). Pub. L. 89–97 added pars. (3) and (4). 1960—Subsec. (e)(1). Pub. L. 86–778 substituted ‘‘sec- tion 410(l)(1) of this title’’ for ‘‘section 410(m)(1) of this title’’. 1958—Subsec. (b)(2). Pub. L. 85–857 substituted ‘‘sec- tion 3101 of title 38’’ for ‘‘section 454a of title 38’’. Subsec. (g). Pub. L. 85–840, § 314(b), substituted ‘‘Trust Funds’’ for ‘‘Trust Fund’’ in par. (1), and ‘‘the Federal Old-Age and Survivors Insurance Trust Fund in’’ for ‘‘the Trust Fund in’’, ‘‘such Trust Fund annually’’, for ‘‘the Trust Fund annually’’, and ‘‘such Trust Fund dur- ing’’ for ‘‘the Trust Fund during’’ in par. (2). Subsec. (h). Pub. L. 85–840, § 314(a), added subsec. (h). 1956—Subsec. (e). Act Aug. 1, 1956, § 404(a), amended subsec. (e) generally, substituting ‘‘January 1, 1957’’ for ‘‘April 1, 1956’’ in five places, and inserting provisions in par. (1) relating to monthly benefits for months after December 1956 and any lump-sum death payment under this subchapter with respect to a death occurring after December 1956. Subsecs. (f), (g). Act Aug. 1, 1956, §§ 404(b), 406, added subsecs. (f) and (g), respectively. 1955—Subsec. (e). Act Aug. 9, 1955, substituted ‘‘April 1, 1956’’ for ‘‘July 1, 1955’’ wherever appearing. 1954—Subsec. (a)(1). Act Sept. 1, 1954, § 106(e)(1), (3), inserted ‘‘and for purposes of section 416(i)(3) of this title’’ after ‘‘World War II veteran’’ in first sentence, and inserted sentence at end. Subsec. (e)(1). Act Sept. 1, 1954, § 106(e)(2), (3), inserted ‘‘and for purposes of section 416(i)(3) of this title’’ after ‘‘veteran (as defined in paragraph (4) of this sub- section)’’ and inserted sentence at end. 1953—Subsec. (e). Act Aug. 14, 1953, substituted ‘‘July 1, 1955’’ for ‘‘January 1, 1954’’ wherever appearing. 1952—Act July 18, 1952, § 5(a), struck out reference to World War II veterans in section catchline. Subsec. (a)(1). Act July 5, 1952, § 5(d)(1), inserted pro- vision following cl. (B) that cl. (B) not apply in the case of any monthly benefits or lump-sum death payments under this subchapter. Subsec. (e). Act July 18, 1952, § 5(a), added subsec. (e). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–296 effective Mar. 31, 1995, see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–369 effective July 18, 1984, but not to be construed as changing or affecting any right, liability, status, or interpretation which existed (under the provisions of law involved) before that date, see section 2664(b) of Pub. L. 98–369, set out as a note under section 401 of this title. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by section 308 of Pub. L. 98–21 applicable only with respect to monthly payments payable under this subchapter for months after April 1983, see section 310 of Pub. L. 98–21, set out as a note under section 402 of this title. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by section 2201(c)(7) of Pub. L. 97–35 and by section 2(g) of Pub. L. 97–123 applicable with respect to benefits for months after December 1981 with certain exceptions, see section 2(j)(2)–(4) of Pub. L. 97–123, set out as a note under section 415 of this title. Page 2042 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 417 EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95–216 effective with respect to monthly benefits and lump-sum death payments for deaths occurring after December 1978, see section 206 of Pub. L. 95–216, set out as a note under section 402 of this title. EFFECTIVE DATE OF 1960 AMENDMENT Amendment by Pub. L. 86–778 effective Sept. 13, 1960, see section 103(v)(1) of Pub. L. 86–778, set out as a note under section 402 of this title. EFFECTIVE DATE OF 1958 AMENDMENT Amendment by Pub. L. 85–857 effective Jan. 1, 1959, see section 2 of Pub. L. 85–857, set out as an Effective Date note preceding Part I of Title 38, Veterans’ Bene- fits. Pub. L. 85–840, title III, § 314(c)(1), Aug. 28, 1958, 72 Stat. 1037, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall apply only with respect to (A) monthly benefits under sections 202 and 223 of the Social Security Act [42 U.S.C. 402, 423] for months after the month in which this Act is enacted [August 1958], (B) lump-sum death payments under such section 202 in the case of deaths occurring after the month in which this Act is enacted, and (C) periods of disability under section 216(i) [42 U.S.C. 416(i)] in the case of applications for a disability determination filed after the month in which this Act is enacted.’’ EFFECTIVE DATE OF 1956 AMENDMENT Act Aug. 1, 1956, ch. 837, title IV, § 404(d), 70 Stat. 874, provided that: ‘‘Except for the last sentence of section 217(e)(1) of the Social Security Act [42 U.S.C. 417(e)(1)] as amended by subsection (a) of this section, the amendments made by such subsection (a) [amending this section] shall be effective as though they had been enacted on March 31, 1956. Such last sentence of section 217(e)(1) of the Social Security Act shall become effec- tive January 1, 1957.’’ Amendment by section 406 of act Aug. 1, 1956, effec- tive Jan. 1, 1957, see act Aug. 1, 1956, ch. 837, title VI, § 603(a), 70 Stat. 887. EFFECTIVE DATE OF 1954 AMENDMENT Amendment by section 106(e) of act Sept. 1, 1954, ap- plicable with respect to monthly benefits under sub- chapter II of this chapter for months after June 1955, and with respect to lump-sum death payments under such subchapter in the case of deaths occurring after June 1955; but that no recomputation of benefits by reason of such amendments shall be regarded as a re- computation for purposes of section 415(f) of this title, see section 106(h) of act Sept. 1, 1954, set out as a note under section 413 of this title. EFFECTIVE DATE OF 1952 AMENDMENT Act of July 18, 1952, ch. 945, § 5(c), 66 Stat. 775, as amended by Pub. L. 86–778, title III, § 304(d), Sept. 13, 1960, 74 Stat. 966, provided that: ‘‘(1) The amendments made by subsections (a) and (b) [amending this section and section 405 of this title] shall apply with respect to monthly benefits under sec- tion 202 of the Social Security Act [42 U.S.C. 402] for months after August 1952, and with respect to lump- sum death payments in the case of deaths occurring after August 1952, except that, in the case of any indi- vidual who is entitled, on the basis of the wages and self-employment income of any individual to whom sec- tion 217(e) of the Social Security Act [42 U.S.C. 417(e)] applies, to monthly benefits under such section 202 for August 1952, such amendments shall apply (A) only if an application for recomputation by reason of such amendments is filed by such individual, or any other individual, entitled to benefits under such section 202 on the basis of such wages and self-employment in- come, and (B) only with respect to such benefits for months after whichever of the following is the later: August 1952 of the seventh month before the month in which such application was filed. Recomputations of benefits as required to carry out the provisions of this paragraph shall be made notwithstanding the provi- sions of section 215(f)(1) of the Social Security Act [42 U.S.C. 415(f)(1)]; but no such recomputation shall be re- garded as a recomputation for purposes of section 215(f) of such act. Notwithstanding the preceding provisions of this paragraph, the primary insurance amount of an individual shall not be recomputed under such provi- sions unless such individual files the application re- ferred to in clause (A) of the first sentence of this para- graph prior to January 1961 or, if he dies without filing such application, his death occurred prior to January 1961. ‘‘(2) In the case of any veteran (as defined in section 217(e)(4) of the Social Security Act [42 U.S.C. 417(e)(4)]) who died prior to September 1952, the requirement in subsections (f) and (h) of section 202 of the Social Secu- rity Act that proof of support be filed within two years of the date of such death shall not apply if such proof is filed prior to September 1954.’’ Act July 18, 1952, ch. 945, § 5(d)(2), 66 Stat. 775, pro- vided that: ‘‘The amendment made by paragraph (1) of this subsection [amending this section] shall apply only in the case of applications for benefits under sec- tion 202 of the Social Security Act [42 U.S.C. 402] filed after August 1952.’’ EFFECTIVE DATE Act Aug. 28, 1950, ch. 809, title I, § 105, 64 Stat. 512, pro- vided that this section is effective Sept. 1, 1950. TRANSFER OF FUNCTIONS For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relat- ing thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, set out as a note under section 542 of Title 6. Coast Guard transferred to Department of Transpor- tation, and functions, powers, and duties relating to Coast Guard, of Secretary of the Treasury and of other officers and offices of Department of the Treasury transferred to Secretary of Transportation by Pub. L. 89–670, § 6(b)(1), Oct. 15, 1966, 80 Stat. 938. Section 6(b)(2) of Pub. L. 89–670, however, provided that notwith- standing such transfer of functions, Coast Guard shall operate as part of Navy in time of war or when Presi- dent directs as provided in former section 3 (now 103) of Title 14, Coast Guard. See section 108 of Title 49, Trans- portation. RECOMPUTATION OF PRIMARY INSURANCE AMOUNT OF CERTAIN INDIVIDUALS Pub. L. 85–840, title III, § 314(c)(2), Aug. 28, 1958, 72 Stat. 1037, provided that: ‘‘In the case of any indi- vidual— ‘‘(A) who is a World War II veteran (as defined in section 217(d)(2) of the Social Security Act [42 U.S.C. 417(d)(2)]) wholly or partly by reason of service de- scribed in section 217(h)(1)(A) of such Act; and ‘‘(B) who (i) became entitled to old-age insurance benefits under section 202(a) of the Social Security Act [42 U.S.C. 402(a)] or to disability insurance bene- fits under section 223 of such Act [42 U.S.C. 423] prior to the first day of the month following the month in which this Act is enacted [August 1958], or (i) died prior to such first day, and whose widow, former wife divorced, widower, child, or parent is entitled for the month in which this Act is enacted, on the basis of his wages and self-employment income, to a monthly benefit under section 202 of such Act; and ‘‘(C) any part of whose service described in section 217(h)(1)(A) of the Social Security Act was not in- cluded in the computation of his primary insurance Page 2043 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 418 amount under section 215 of such Act [42 U.S.C. 415] but would have been included in such computation if the amendment made by subsection (a) of this section had been effective prior to the date of such computa- tion, the Secretary of Health, Education, and Welfare [now Health and Human Services] shall, notwithstanding the provisions of section 215(f)(1) of the Social Security Act, recompute the primary insurance amount of such individual upon the filing of an application, after the month in which this Act is enacted [Aug. 1958], by him or (if he has died without filing such an application) by any person entitled to monthly benefits under section 202 of the Social Security Act on the basis of his wages and self-employment income. Such recomputation shall be made only in the manner provided in title II of the Social Security Act [42 U.S.C. 401 et seq.] as in effect at the time of the last previous computation or recompu- tation of such individual’s primary insurance amount, and as though application therefor was filed in the month in which application for such last previous com- putation or recomputation was filed. No recomputation made under this subsection shall be regarded as a re- computation under section 215(f) of the Social Security Act. Any such recomputation shall be effective for and after the twelfth month before the month in which the application is filed, but in no case for the month in which this Act is enacted or any prior month.’’ RECOMPUTATION OF SOCIAL SECURITY BENEFITS OF WIDOWS AND CHILDREN WHO WAIVE RIGHT TO ANNU- ITY UNDER CIVIL SERVICE RETIREMENT ACT Act Aug. 1, 1956, ch. 837, title IV, § 404(c), 70 Stat. 874, provided that: ‘‘In the case of any deceased individual— ‘‘(1) who is a World War II veteran (as defined in section 217(d)(2) of the Social Security Act [42 U.S.C. 417(d)(2)]) or a veteran (as defined in section 217(e)(4) of such Act); and ‘‘(2) whose widow or child is entitled under the Civil Service Retirement Act of May 29, 1930, as amended [see section 8301 et seq. of Title 5, Government Orga- nization and Employees], to an annuity in the com- putation of which his active military or naval service after September 15, 1940, and before January 1, 1957, was included; and ‘‘(3) whose widow or child is entitled under section 202 of the Social Security Act [42 U.S.C. 402], on the basis of his wages and self-employment income, to a monthly benefit in the computation of which such ac- tive military or naval service was excluded (under clause (B) of subsection (a)(1) or (e)(1) of section 217 of such Act) solely by reason of the annuity described in the preceding paragraph; and ‘‘(4) whose widow or child is entitled by reason of section 217(f) of the Social Security Act to have such active military or naval service included in the com- putation of such monthly benefit, the Secretary of Health, Education, and Welfare [now Health and Human Services] shall, notwithstanding the provisions of section 215(f)(1) of the Social Security Act [42 U.S.C. 415(f)(1)], recompute the primary insurance amount of such individual upon the filing of an applica- tion, after December 1956, by or on behalf of such widow or child. Such recomputation shall be made only in the manner provided in title II of the Social Security Act [42 U.S.C. 401 et seq.] as in effect at the time of such in- dividual’s death, and as though application therefor was filed in the month in which he died. No recomputa- tion made under this subsection shall be regarded as a recomputation under section 215(f) of the Social Secu- rity Act. Any such recomputation shall be effective for and after the twelfth month before the month in which the application is filed, but in no case for any month before the first month with respect to which such widow or child is entitled by reason of section 217(f) of the Social Security Act to have such active military or naval service included in the computation of such monthly benefits. The terms used in this subsection shall have the same meaning as when used in title II of the Social Security Act.’’ Executive Documents CHANGE OF NAME Coast and Geodetic Survey consolidated with Weath- er Bureau to form a new agency in Department of Com- merce to be known as Environmental Science Services Administration, and commissioned officers of Survey transferred to ESSA, by Reorg. Plan No. 2 of 1965, eff. July 13, 1965, 30 F.R. 8819, 79 Stat. 1318, set out in the Appendix to Title 5, Government Organization and Em- ployees. Reorg. Plan No. 4 of 1970, eff. Oct. 3, 1970, 35 F.R. 15627, 84 Stat. 2090, abolished Environmental Science Services Administration, established National Oceanic and Atmospheric Administration, and redesig- nated Commissioned Officer Corps of ESSA as Commis- sioned Officer Corps of NOAA. For further details, see Transfer of Functions note set out under section 851 of Title 33, Navigation and Navigable Waters. § 418. Voluntary agreements for coverage of State and local employees (a) Purpose of agreement (1) The Commissioner of Social Security shall, at the request of any State, enter into an agree- ment with such State for the purpose of extend- ing the insurance system established by this subchapter to services performed by individuals as employees of such State or any political sub- division thereof. Each such agreement shall con- tain such provisions, not inconsistent with the provisions of this section, as the State may re- quest. (2) Notwithstanding section 410(a) of this title, for the purposes of this subchapter the term ‘‘employment’’ includes any service included under an agreement entered into under this sec- tion. (b) Definitions For the purposes of this section— (1) The term ‘‘State’’ does not include the District of Columbia, Guam, or American Samoa. (2) The term ‘‘political subdivision’’ includes an instrumentality of (A) a State, (B) one or more political subdivisions of a State, or (C) a State and one or more of its political subdivi- sions. (3) The term ‘‘employee’’ includes an officer of a State or political subdivision. (4) The term ‘‘retirement system’’ means a pension, annuity, retirement, or similar fund or system established by a State or by a polit- ical subdivision thereof. (5) The term ‘‘coverage group’’ means (A) employees of the State other than those en- gaged in performing service in connection with a proprietary function; (B) employees of a political subdivision of a State other than those engaged in performing service in connec- tion with a proprietary function; (C) employ- ees of a State engaged in performing service in connection with a single proprietary function; or (D) employees of a political subdivision of a State engaged in performing service in connec- tion with a single proprietary function. If under the preceding sentence an employee would be included in more than one coverage group by reason of the fact that he performs service in connection with two or more propri- etary functions or in connection with both a proprietary function and a nonproprietary