A bill to eliminate the social security earnings test for individuals who have attained retirement age, to protect and preserve the social security trust funds, and for other purposes.

TITLE I--ELIMINATION OF SOCIAL SECURITY EARNINGS TEST

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Older Americans Freedom to Work 
Act''.

SEC. 102. ELIMINATION OF EARNINGS TEST FOR INDIVIDUALS WHO HAVE 
              ATTAINED RETIREMENT AGE.

    (a) In General.--Section 203 of the Social Security Act (42 U.S.C. 
403) is amended--
            (1) in subsection (c)(1), by striking ``the age of 
        seventy'' and inserting ``retirement age (as defined in section 
        216(l))'';
            (2) in paragraphs (1)(A) and (2) of subsection (d), by 
        striking ``the age of seventy'' each place it appears and 
        inserting ``retirement age (as defined in section 216(l))'';
            (3) in subsection (f)(1)(B), by striking ``was age seventy 
        or over'' and inserting ``was at or above retirement age (as 
        defined in section 216(l))'';
            (4) in subsection (f)(3)--
                    (A) by striking ``33\1/3\ percent'' and all that 
                follows through ``any other individual,'' and inserting 
                ``50 percent of such individual's earnings for such 
                year in excess of the product of the exempt amount as 
                determined under paragraph (8),''; and
                    (B) by striking ``age 70'' and inserting 
                ``retirement age (as defined in section 216(l))'';
            (5) in subsection (h)(1)(A), by striking ``age 70'' each 
        place it appears and inserting ``retirement age (as defined in 
        section 216(l))''; and
            (6) in subsection (j)--
                    (A) in the heading, by striking ``Age Seventy'' and 
                inserting ``Retirement Age''; and
                    (B) by striking ``seventy years of age'' and 
                inserting ``having attained retirement age (as defined 
                in section 216(l))''.
    (b) Conforming Amendments Eliminating the Special Exempt Amount for 
Individuals Who Have Attained Retirement Age.--
            (1) Uniform exempt amount.--Section 203(f)(8)(A) of the 
        Social Security Act (42 U.S.C. 403(f)(8)(A)) is amended by 
        striking ``the new exempt amounts (separately stated for 
        individuals described in subparagraph (D) and for other 
        individuals) which are to be applicable'' and inserting ``a new 
        exempt amount which shall be applicable''.
            (2) Conforming amendments.--Section 203(f)(8)(B) of the 
        Social Security Act (42 U.S.C. 403(f)(8)(B)) is amended--
                    (A) in the matter preceding clause (i), by striking 
                ``Except'' and all that follows through ``whichever'' 
                and inserting ``The exempt amount which is applicable 
                for each month of a particular taxable year shall be 
                whichever'';
                    (B) in clauses (i) and (ii), by striking 
                ``corresponding'' each place it appears; and
                    (C) in the last sentence, by striking ``an exempt 
                amount'' and inserting ``the exempt amount''.
            (3) Repeal of basis for computation of special exempt 
        amount.--Section 203(f)(8)(D) of the Social Security Act (42 
        U.S.C. (f)(8)(D)) is repealed.
    (c) Additional Conforming Amendments.--
            (1) Elimination of redundant references to retirement 
        age.--Section 203 of the Social Security Act (42 U.S.C. 403) is 
        amended--
                    (A) in subsection (c), in the last sentence, by 
                striking ``nor shall any deduction'' and all that 
                follows and inserting ``nor shall any deduction be made 
                under this subsection from any widow's or widower's 
                insurance benefit if the widow, surviving divorced 
                wife, widower, or surviving divorced husband involved 
                became entitled to such benefit prior to attaining age 
                60.''; and
                    (B) in subsection (f)(1), by striking clause (D) 
                and inserting the following: ``(D) for which such 
                individual is entitled to widow's or widower's 
                insurance benefits if such individual became so 
                entitled prior to attaining age 60,''.
            (2) Conforming amendment to provisions for determining 
        amount of increase on account of delayed retirement.--Section 
        202(w)(2)(B)(ii) of the Social Security Act (42 U.S.C. 
        402(w)(2)(B)(ii)) is amended--
                    (A) by striking ``either''; and
                    (B) by striking ``or suffered deductions under 
                section 203(b) or 203(c) in amounts equal to the amount 
                of such benefit''.
            (3) Provisions relating to earnings taken into account in 
        determining substantial gainful activity of blind 
        individuals.--The second sentence of section 223(d)(4)(A) of 
        the Social Security Act (42 U.S.C. 423(d)(4)(A)) is amended by 
        striking ``if section 102 of the Senior Citizens' Right to Work 
        Act of 1996 had not been enacted'' and inserting the following: 
        ``if the amendments to section 203 made by section 102 of the 
        Senior Citizens' Right to Work Act of 1996 and by the Senior 
        Citizens' Freedom to Work Act of 1999 had not been enacted''.
    (d) Effective Date.--The amendments and repeals made by this 
section shall apply with respect to taxable years ending after December 
31, 1998.

  TITLE II--PROTECTING AND PRESERVING THE SOCIAL SECURITY TRUST FUNDS

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Protecting and Preserving the 
Social Security Trust Funds Act''.

SEC. 202. FINDINGS.

    Congress finds that--
            (1) the $69,246,000,000 unified budget surplus achieved in 
        fiscal year 1998 was entirely due to surpluses generated by the 
        social security trust funds and the cumulative unified budget 
        surpluses projected for subsequent fiscal years are primarily 
        due to surpluses generated by the social security trust funds;
            (2) Congress and the President should not use the social 
        security trust funds surpluses to balance the budget or fund 
        existing or new non-social security programs;
            (3) all surpluses generated by the social security trust 
        funds must go towards saving and strengthening the social 
        security system; and
            (4) at least 62 percent of the on-budget (non-social 
        security) surplus should be reserved and applied to the social 
        security trust funds.

SEC. 203. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS.

    (a) Protection by Congress.--
            (1) Reaffirmation of support.--Congress reaffirms its 
        support for the provisions of section 13301 of the Budget 
        Enforcement Act of 1990 that provides that the receipts and 
        disbursements of the social security trust funds shall not be 
        counted for the purposes of the budget submitted by the 
        President, the congressional budget, or the Balanced Budget and 
        Emergency Deficit Control Act of 1985.
            (2) Protection of social security benefits.--Balances in 
        the Federal Old-Age and Survivors Insurance Trust Fund and the 
        Federal Disability Insurance Trust Fund shall be used solely 
        for paying social security benefit payments as promised to be 
        paid by law.
    (b) Points of Order.--Section 301 of the Congressional Budget Act 
of 1974 is amended by adding at the end the following:
    ``(j) Social Security Point of Order.--It shall not be in order in 
the Senate to consider a concurrent resolution on the budget, an 
amendment thereto, or a conference report thereon that violates section 
13301 of the Budget Enforcement Act of 1990.
    ``(k) Social Security Surplus Protection Point of Order.--It shall 
not be in order in the Senate to consider a concurrent resolution on 
the budget, an amendment thereto, or a conference report thereon 
that would cause or increase an on-budget deficit for any fiscal year.
    ``(l) Subsequent Legislation.--
            ``(1) In general.--It shall not be in order in the Senate 
        to consider any bill, joint resolution, amendment, motion, or 
        conference report if--
                    ``(A) the enactment of the bill or resolution as 
                reported;
                    ``(B) the adoption and enactment of that amendment; 
                or
                    ``(C) the enactment of the bill or resolution in 
                the form recommended in the conference report;
        would cause or increase an on-budget deficit for any fiscal 
        year.
            ``(2)  Exception to point of order.--This subsection shall 
        not apply to social security reform legislation that would 
        protect the social security system from insolvency and preserve 
        benefits as promised to beneficiaries.''.
    (c) Supermajority Waiver and Appeal.--Subsections (c)(1) and (d)(2) 
of section 904 of the Congressional Budget Act of 1974 are amended by 
striking ``305(b)(2),'' and inserting ``301(j), 301(k), 301(l), 
305(b)(2)''.

SEC. 204. SEPARATE BUDGET FOR SOCIAL SECURITY.

    (a) Exclusion.--The outlays and receipts of the social security 
program under title II of the Social Security Act, including the 
Federal Old-Age and Survivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund and the related provisions of the 
Internal Revenue Code of 1986, shall be excluded from--
            (1) any official documents by Federal agencies regarding 
        the surplus or deficit totals of the budget of the Federal 
        Government as submitted by the President or of the surplus or 
        deficit totals of the congressional budget; and
            (2) any description or reference in any official 
        publication or material issued by any other agency or 
        instrumentality of the Federal Government.
    (b) Separate Budget.--The outlays and receipts of the social 
security program under title II of the Social Security Act, including 
the Federal Old-Age and Survivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund and the related provisions of the 
Internal Revenue Code of 1986, shall be submitted as a separate budget.

SEC. 205. PRESIDENT'S BUDGET.

    Section 1105(f) of title 31, United States Code, is amended by 
striking ``in a manner consistent'' and inserting ``in compliance''.

                TITLE III--SAVING SOCIAL SECURITY FIRST

SEC. 301. DESIGNATION OF ON-BUDGET SURPLUS.

    (a) In General.--Notwithstanding any other provision of law, not 
less than the amount referred to in subsection (b) for a fiscal year 
shall be reserved for and applied to the social security trust funds 
for that fiscal year in addition to the social security trust fund 
surpluses.
    (b) Amount Reserved.--The amount referred to in this subsection 
is--
            (1) for fiscal year 2001, $6,820,000,000;
            (2) for fiscal year 2002, $36,580,000,000;
            (3) for fiscal year 2003, $31,620,000,000;
            (4) for fiscal year 2004, $42,160,000,000;
            (5) for fiscal year 2005, $48,980,000,000;
            (6) for fiscal year 2006, $71,920,000,000;
            (7) for fiscal year 2007, $83,080,000,000;
            (8) for fiscal year 2008, $90,520,000,000; and
            (9) for fiscal year 2009, $102,300,000,000.

SEC. 302. SENSE OF THE SENATE ON DEDICATING ADDITIONAL SURPLUS AMOUNTS.

    It is the sense of the Senate if the budget surplus in future years 
is greater than the currently projected surplus, serious consideration 
should be given to directing more of the surplus to strengthening the 
social security trust funds.

Summary: TABLE OF CONTENTS: Title I: Elimination of Social Security Earnings Test Title II: Protecting and Preserving the Social Security Trust Funds Title I: Elimination of Social Security Earnings Test - Older Americans Freedom to Work Act - Amends title II (OASDI) of the Social Security Act to remove the limitation on the amount of outside income which beneficiaries who have attained retirement age may earn without incurring a reduction in benefits. Title II: Protecting and Preserving the Social Security Trust Funds - Protecting and Preserving the Social Security Trust Funds Act - Declares that Congress reaffirms its support for section 13301 of the Omnibus Budget Reconciliation Act of 1990, which provides that the receipts and disbursements of the Social Security Trust Funds shall not be counted for the purposes of the budget submitted by the President, the congressional budget, or the Balanced Budget and Emergency Deficit Control Act of 1985 . Amends the Congressional Budget Act of 1974 to declare out of order in the Senate consideration of any concurrent resolution on the budget that violates section 13301 of the Budget Enforcement Act of 1990. Provides a point of order in the Senate against consideration of any concurrent budget resolution that would cause or increase an on-budget deficit for any fiscal year. Makes it out of order in the Senate to consider any bill, joint resolution, amendment, motion, or conference report if the enactment of the reported bill or resolution, the adoption and enactment of an amendment, or the enactment of a bill or resolution in the form recommended in the conference report would cause or increase an on-budget deficit for any fiscal year. Makes such point of order inapplicable to social security reform legislation that would protect the social security system from insolvency and preserve benefits as promised to beneficiaries. Authorizes a waiver or suspension in the Senate of points of order under this title only with a three-fifths majority. Requires the same majority to sustain an appeal on a ruling on such points of order. Requires any official Federal Government statement of the Federal or congressional budget surplus or deficit totals to exclude the outlays and receipts of the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund under title II of the Social Security Act and related provisions of the Internal Revenue Code. Requires such outlays and receipts to be submitted in separate social security budget documents. Requires the President's budget to comply with certain congressional budget rules. Title III: Saving Social Security First - Requires that specified amounts, from non-social security on-budget surpluses, for FY 2001 through 2009, be transferred to the social security trust funds, in addition to the surpluses in those Funds. Expresses the sense of the Senate that, if the budget surplus in future years is greater than the currently projected surplus, serious consideration should be given to directing more of the surplus to strengthening the social security trust funds.