II

106TH CONGRESS

1ST SESSION S. 1383

To amend title II of the Social Security Act to provide for individual savings

accounts funded by employee and employer social security payroll deductions, to extend the solvency of the old-age, survivors, and disability

insurance program, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 16, 1999

Mr. GREGG (for himself, Mr. KERREY, Mr. BREAUX, Mr. GRASSLEY, Mr.

THOMPSON, Mr. ROBB, and Mr. THOMAS) introduced the following bill;

which was read twice and referred to the Committee on Finance

A BILL

To amend title II of the Social Security Act to provide

for individual savings accounts funded by employee and

employer social security payroll deductions, to extend

the solvency of the old-age, survivors, and disability insurance program, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Bipartisan Social Security Reform Act of 1999’’.

6 (b) TABLE OF CONTENTS.—The table of contents of

7 this Act is as follows:
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Sec. 1. Short title; table of contents.

TITLE I—INDIVIDUAL SAVINGS ACCOUNTS

Sec. 101. Individual savings accounts.

Sec. 102. Social security KidSave Accounts.

Sec. 103. Adjustments to primary insurance amounts under part A of title II

of the Social Security Act.

TITLE II—SOCIAL SECURITY SYSTEM ADJUSTMENTS

Sec. 201. Adjustments to bend points in determining primary insurance

amounts.

Sec. 202. Adjustment of widows’ and widowers’ insurance benefits.

Sec. 203. Elimination of earnings test for individuals who have attained early

retirement age.

Sec. 204. Gradual increase in number of benefit computation years; use of all

years in computation.

Sec. 205. Maintenance of benefit and contribution base.

Sec. 206. Reduction in the amount of certain transfers to Medicare Trust

Fund.

Sec. 207. Actuarial adjustment for retirement.

Sec. 208. Improvements in process for cost-of-living adjustments.

Sec. 209. Modification of increase in normal retirement age.

Sec. 210. Modification of PIA factors to reflect changes in life expectancy.

Sec. 211. Mechanism for remedying unforeseen deterioration in social security

solvency.

1 TITLE I—INDIVIDUAL SAVINGS

2 ACCOUNTS

3 SEC. 101. INDIVIDUAL SAVINGS ACCOUNTS.

4 (a) ESTABLISHMENT AND MAINTENANCE OF INDI5 VIDUAL SAVINGS ACCOUNTS.—Title II of the Social Secu6 rity Act (42 U.S.C. 401 et seq.) is amended—

7 (1) by inserting before section 201 the fol8 lowing:

9 ‘‘PART A—INSURANCE BENEFITS’’;

10 and

11 (2) by adding at the end the following:
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1 ‘‘PART B—INDIVIDUAL SAVINGS ACCOUNTS

2 ‘‘INDIVIDUAL SAVINGS ACCOUNTS

3 ‘‘SEC. 251. (a) ESTABLISHMENT.—

4 ‘‘(1) IN GENERAL.—

5 ‘‘(A) ESTABLISHMENT IN ABSENCE OF

6 KIDSAVE ACCOUNT.—Except as provided in sub7 paragraph (B), the Commissioner of Social Se8 curity, within 30 days of the receipt of the first

9 contribution received pursuant to subsection (b)

10 with respect to an eligible individual, shall es11 tablish in the name of such individual an indi12 vidual savings account. The individual savings

13 account shall be identified to the account holder

14 by means of the account holder’s Social Secu15 rity account number.

16 ‘‘(B) USE OF KIDSAVE ACCOUNT.—If a

17 KidSave Account has been established in the

18 name of an eligible individual under section

19 262(a) before the date of the first contribution

20 received by the Commissioner pursuant to sub21 section (b) with respect to such individual, the

22 Commissioner shall redesignate the KidSave

23 Account as an individual savings account for

24 such individual.
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1 ‘‘(2) DEFINITION OF ELIGIBLE INDIVIDUAL.—

2 In this part, the term ‘eligible individual’ means any

3 individual born after December 31, 1937.

4 ‘‘(b) CONTRIBUTIONS.—

5 ‘‘(1) AMOUNTS TRANSFERRED FROM THE

6 TRUST FUND.—The Secretary of the Treasury shall

7 transfer from the Federal Old-Age and Survivors In8 surance Trust Fund, for crediting by the Commis9 sioner of Social Security to an individual savings ac10 count of an eligible individual, an amount equal to

11 the sum of any amount received by such Secretary

12 on behalf of such individual under section

13 3101(a)(2) or 1401(a)(2) of the Internal Revenue

14 Code of 1986.

15 ‘‘(2) OTHER CONTRIBUTIONS.—For provisions

16 relating to additional contributions credited to indi17 vidual savings accounts, see sections 531(c)(2) and

18 6402(l) of the Internal Revenue Code of 1986.

19 ‘‘(c) DESIGNATION OF INVESTMENT TYPE OF INDI20 VIDUAL SAVINGS ACCOUNT.—

21 ‘‘(1) DESIGNATION.—Each eligible individual

22 who is employed or self-employed shall designate the

23 investment type of individual savings account to

24 which the contributions described in subsection (b)

25 on behalf of such individual are to be credited.
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1 ‘‘(2) FORM OF DESIGNATION.—The designation

2 described in paragraph (1) shall be made in such

3 manner and at such intervals as the Commissioner

4 of Social Security may prescribe in order to ensure

5 ease of administration and reductions in burdens on

6 employers.

7 ‘‘(3) SPECIAL RULE FOR 2000.—Not later than

8 January 1, 2000, any eligible individual that is em9 ployed or self-employed as of such date shall execute

10 the designation required under paragraph (1).

11 ‘‘(4) DESIGNATION IN ABSENCE OF DESIGNA12 TION BY ELIGIBLE INDIVIDUAL.—In any case in

13 which no designation of the individual savings ac14 count is made, the Commissioner of Social Security

15 shall make the designation of the individual savings

16 account in accordance with regulations that take

17 into account the competing objectives of maximizing

18 returns on investments and minimizing the risk in19 volved with such investments.

20 ‘‘(d) TREATMENT OF INCOMPETENT INDIVIDUALS.—

21 Any designation under subsection (c)(1) to be made by

22 an individual mentally incompetent or under other legal

23 disability may be made by the person who is constituted

24 guardian or other fiduciary by the law of the State of resi25 dence of the individual or is otherwise legally vested with
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1 the care of the individual or his estate. Payment under

2 this part due an individual mentally incompetent or under

3 other legal disability may be made to the person who is

4 constituted guardian or other fiduciary by the law of the

5 State of residence of the claimant or is otherwise legally

6 vested with the care of the claimant or his estate. In any

7 case in which a guardian or other fiduciary of the indi8 vidual under legal disability has not been appointed under

9 the law of the State of residence of the individual, if any

10 other person, in the judgment of the Commissioner, is re11 sponsible for the care of such individual, any designation

12 under subsection (c)(1) which may otherwise be made by

13 such individual may be made by such person, any payment

14 under this part which is otherwise payable to such indi15 vidual may be made to such person, and the payment of

16 an annuity payment under this part to such person bars

17 recovery by any other person.

18 ‘‘DEFINITION OF INDIVIDUAL SAVINGS ACCOUNT;

19 TREATMENT OF ACCOUNTS

20 ‘‘SEC. 252. (a) INDIVIDUAL SAVINGS ACCOUNT.—In

21 this part, the term ‘individual savings account’ means any

22 individual savings account in the Individual Savings Fund

23 (established under section 254) which is administered by

24 the Individual Savings Fund Board.

25 ‘‘(b) TREATMENT OF ACCOUNT.—Except as other26 wise provided in this part and in section 531 of the Inter-
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1 nal Revenue Code of 1986, any individual savings account

2 described in subsection (a) shall be treated in the same

3 manner as an individual account in the Thrift Savings

4 Fund under subchapter III of chapter 84 of title 5, United

5 States Code.

6 ‘‘INDIVIDUAL SAVINGS ACCOUNT DISTRIBUTIONS

7 ‘‘SEC. 253. (a) DATE OF INITIAL DISTRIBUTION.—

8 Except as provided in subsection (c), distributions may

9 only be made from an individual savings account of an

10 eligible individual on and after the earliest of—

11 ‘‘(1) the date the eligible individual attains nor12 mal retirement age, as determined under section 216

13 (or early retirement age (as so determined) if elected

14 by such individual), or

15 ‘‘(2) the date on which funds in the eligible in16 dividual’s individual savings account are sufficient to

17 provide a monthly payment over the life expectancy

18 of the eligible individual (determined under reason19 able actuarial assumptions) which, when added to

20 the eligible individual’s monthly benefit under part A

(if any), is at least equal to an amount equal to 1 21 ⁄12

22 of the poverty line (as defined in section 673(2) of

23 the Community Services Block Grant Act (42 U.S.C.

24 9902(2) and determined on such date for a family

25 of the size involved) and adjusted annually there-
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1 after by the adjustment determined under section

2 215(i).

3 ‘‘(b) FORMS OF DISTRIBUTION.—

4 ‘‘(1) REQUIRED MONTHLY PAYMENTS.—Except

5 as provided in paragraph (2), beginning with the

6 date determined under subsection (a), the balance in

7 an individual savings account available to provide

8 monthly payments not in excess of the amount de9 scribed in subsection (a)(2) shall be paid, as elected

10 by the account holder (in such form and manner as

11 shall be prescribed in regulations of the Individual

12 Savings Fund Board), by means of the purchase of

13 annuities or equal monthly payments over the life

14 expectancy of the eligible individual (determined

15 under reasonable actuarial assumptions) in accord16 ance with requirements (which shall be provided in

17 regulations of the Board) similar to the require18 ments applicable to payments of benefits under sub19 chapter III of chapter 84 of title 5, United States

20 Code, and providing for indexing for inflation.

21 ‘‘(2) PAYMENT OF EXCESS FUNDS.—To the ex22 tent funds remain in an eligible individual’s indi23 vidual savings account after the application of para24 graph (1), such funds shall be payable to the eligible

25 individual in such manner and in such amounts as
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1 determined by the eligible individual, subject to the

2 provisions of subchapter III of chapter 84 of title 5,

3 United States Code.

4 ‘‘(c) DISTRIBUTION IN THE EVENT OF DEATH BE5 FORE THE DATE OF INITIAL DISTRIBUTION.—If the eligi6 ble individual dies before the date determined under sub7 section (a), the balance in such individual’s individual sav8 ings account shall be distributed in a lump sum, under

9 rules established by the Individual Savings Fund Board,

10 to the individual’s heirs.

11 ‘‘INDIVIDUAL SAVINGS FUND

12 ‘‘SEC. 254. (a) ESTABLISHMENT.—There is estab13 lished and maintained in the Treasury of the United

14 States an Individual Savings Fund in the same manner

15 as the Thrift Savings Fund under sections 8437, 8438,

16 and 8439 (but not section 8440) of title 5, United States

17 Code.

18 ‘‘(b) INDIVIDUAL SAVINGS FUND BOARD.—

19 ‘‘(1) IN GENERAL.—There is established and

20 operated in the Social Security Administration an

21 Individual Savings Fund Board in the same manner

22 as the Federal Retirement Thrift Investment Board

23 under subchapter VII of chapter 84 of title 5,

24 United States Code.

25 ‘‘(2) SPECIFIC INVESTMENT AND REPORTING

26 DUTIES.—
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1 ‘‘(A) IN GENERAL.—The Individual Sav2 ings Fund Board shall manage and report on

3 the activities of the Individual Savings Fund

4 and the individual savings accounts of such

5 Fund in the same manner as the Federal Re6 tirement Thrift Investment Board manages and

7 reports on the Thrift Savings Fund and the in8 dividual accounts of such Fund under sub9 chapter VII of chapter 84 of title 5, United

10 States Code.

11 ‘‘(B) STUDY AND REPORT ON INCREASED

12 INVESTMENT OPTIONS.—

13 ‘‘(i) STUDY.—The Individual Savings

14 Fund Board shall conduct a study regard15 ing ways to increase an eligible individual’s

16 investment options with respect to such in17 dividual’s individual savings account and

18 with respect to rollovers or distributions

19 from such account.

20 ‘‘(ii) REPORT.—Not later than 2

21 years after the date of enactment of the

22 Bipartisan Social Security Reform Act of

23 1999, the Individual Savings Fund Board

24 shall submit a report to the President and

25 Congress that contains a detailed state-
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1 ment of the results of the study conducted

2 pursuant to clause (i), together with the

3 Board’s recommendations for such legisla4 tive actions as the Board considers appro5 priate.

6 ‘‘BUDGETARY TREATMENT OF INDIVIDUAL SAVINGS FUND

7 AND ACCOUNTS

8 ‘‘SEC. 255. The receipts and disbursements of the In9 dividual Savings Fund and any accounts within such fund

10 shall not be included in the totals of the budget of the

11 United States Government as submitted by the President

12 or of the congressional budget and shall be exempt from

13 any general budget limitation imposed by statute on ex14 penditures and net lending (budget outlays) of the United

15 States Government.’’.

16 (b) MODIFICATION OF FICA RATES.—

17 (1) EMPLOYEES.—Section 3101(a) of the Inter18 nal Revenue Code of 1986 (relating to tax on em19 ployees) is amended to read as follows:

20 ‘‘(a) OLD-AGE, SURVIVORS, AND DISABILITY INSUR21 ANCE.—

22 ‘‘(1) IN GENERAL.—

23 ‘‘(A) INDIVIDUALS COVERED UNDER PART

24 A OF TITLE II OF THE SOCIAL SECURITY ACT.—

25 In addition to other taxes, there is hereby im26 posed on the income of every individual who is
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1 not a part B eligible individual a tax equal to

2 6.2 percent of the wages (as defined in section

3 3121(a)) received by him with respect to em4 ployment (as defined in section 3121(b)).

5 ‘‘(B) INDIVIDUALS COVERED UNDER PART

6 B OF TITLE II OF THE SOCIAL SECURITY ACT.—

7 In addition to other taxes, there is hereby im8 posed on the income of every part B eligible in9 dividual a tax equal to 4.2 percent of the wages

10 (as defined in section 3121(a)) received by such

11 individual with respect to employment (as de12 fined in section 3121(b)).

13 ‘‘(2) CONTRIBUTION OF OASDI TAX REDUCTION

14 TO INDIVIDUAL SAVINGS ACCOUNTS.—

15 ‘‘(A) IN GENERAL.—In addition to other

16 taxes, there is hereby imposed on the income of

17 every part B eligible individual an individual

18 savings account contribution equal to the sum

19 of—

20 ‘‘(i) 2 percent of the wages (as so de21 fined) received by such individual with re22 spect to employment (as so defined), plus

23 ‘‘(ii) so much of such wages (not to

24 exceed $2,000) as designated by the indi-
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1 vidual in the same manner as described in

2 section 251(c) of the Social Security Act.

3 ‘‘(B) INFLATION ADJUSTMENT.—

4 ‘‘(i) IN GENERAL.—In the case of any

5 calendar year beginning after 2000, the

6 dollar amount in subparagraph (A)(ii)

7 shall be increased by an amount equal to—

8 ‘‘(I) such dollar amount, multi9 plied by

10 ‘‘(II) the cost-of-living adjust11 ment determined under section 1(f)(3)

12 for the calendar year, determined by

13 substituting ‘calendar year 1999’ for

14 ‘calendar year 1992’ in subparagraph

15 (B) thereof.

16 ‘‘(ii) ROUNDING.—If any dollar

17 amount after being increased under clause

18 (i) is not a multiple of $10, such dollar

19 amount shall be rounded to the nearest

20 multiple of $10.’’.

21 (2) SELF-EMPLOYED.—Section 1401(a) of the

22 Internal Revenue Code of 1986 (relating to tax on

23 self-employment income) is amended to read as fol24 lows:
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1 ‘‘(a) OLD-AGE, SURVIVORS, AND DISABILITY INSUR2 ANCE.—

3 ‘‘(1) IN GENERAL.—

4 ‘‘(A) INDIVIDUALS COVERED UNDER PART

5 A OF THE SOCIAL SECURITY ACT.—In addition

6 to other taxes, there shall be imposed for each

7 taxable year, on the self-employment income of

8 every individual who is not a part B eligible in9 dividual for the calendar year ending with or

10 during such taxable year, a tax equal to 12.40

11 percent of the amount of the self-employment

12 income for such taxable year.

13 ‘‘(B) INDIVIDUALS COVERED UNDER PART

14 B OF TITLE II OF THE SOCIAL SECURITY ACT.—

15 In addition to other taxes, there is hereby im16 posed for each taxable year, on the self-employ17 ment income of every part B eligible individual,

18 a tax equal to 10.4 percent of the amount of

19 the self-employment income for such taxable

20 year.

21 ‘‘(2) CONTRIBUTION OF OASDI TAX REDUCTION

22 TO INDIVIDUAL SAVINGS ACCOUNTS.—

23 ‘‘(A) IN GENERAL.—In addition to other

24 taxes, there is hereby imposed for each taxable

25 year, on the self-employment income of every
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1 individual, an individual savings account con2 tribution equal to the sum of—

3 ‘‘(i) 2 percent of the amount of the

4 self-employment income for each individual

5 for such taxable year, and

6 ‘‘(ii) so much of such self-employment

7 income (not to exceed $2,000) as des8 ignated by the individual in the same man9 ner as described in section 251(c) of the

10 Social Security Act.

11 ‘‘(B) INFLATION ADJUSTMENT.—

12 ‘‘(i) IN GENERAL.—In the case of any

13 taxable year beginning after 2000, the dol14 lar amount in subparagraph (A)(ii) shall

15 be increased by an amount equal to—

16 ‘‘(I) such dollar amount, multi17 plied by

18 ‘‘(II) the cost-of-living adjust19 ment determined under section 1(f)(3)

20 for the calendar year in which the tax21 able year begins, determined by sub22 stituting ‘calendar year 1999’ for ‘cal23 endar year 1992’ in subparagraph (B)

24 thereof.
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1 ‘‘(ii) ROUNDING.—If any dollar

2 amount after being increased under clause

3 (i) is not a multiple of $10, such dollar

4 amount shall be rounded to the nearest

5 multiple of $10.’’.

6 (3) PART B ELIGIBLE INDIVIDUAL.—

7 (A) TAXES ON EMPLOYEES.—Section 3121

8 of such Code (relating to definitions) is amend9 ed by inserting after subsection (s) the fol10 lowing:

11 ‘‘(t) PART B ELIGIBLE INDIVIDUAL.—For purposes

12 of this chapter, the term ‘part B eligible individual’ means,

13 for any calendar year, an individual who is an eligible indi14 vidual (as defined in section 251(a)(2) of the Social Secu15 rity Act) for such calendar year.’’.

16 (B) SELF-EMPLOYMENT TAX.—Section

17 1402 of such Code (relating to definitions) is

18 amended by adding at the end the following:

19 ‘‘(k) PART B ELIGIBLE INDIVIDUAL.—The term

20 ‘part B eligible individual’ means, for any calendar year,

21 an individual who is an eligible individual (as defined in

22 section 251(a)(2) of the Social Security Act) for such cal23 endar year.’’.

24 (4) EFFECTIVE DATES.—
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1 (A) EMPLOYEES.—The amendments made

2 by paragraphs (1) and (3)(A) apply to remu3 neration paid after December 31, 1999.

4 (B) SELF-EMPLOYED INDIVIDUALS.—The

5 amendments made by paragraphs (2) and

6 (3)(B) apply to taxable years beginning after

7 December 31, 1999.

8 (c) MATCHING CONTRIBUTIONS.—

9 (1) IN GENERAL.—Part IV of subchapter A of

10 chapter 1 of the Internal Revenue Code of 1986 (re11 lating to credits against tax) is amended by adding

12 at the end the following:

13 ‘‘Subpart H—Individual Savings Account Credits

‘‘Sec. 54. Individual savings account credit.’’.

14 ‘‘SEC. 54. INDIVIDUAL SAVINGS ACCOUNT CREDIT.

15 ‘‘(a) ALLOWANCE OF CREDIT.—Each part B eligible

16 individual is entitled to a credit for the taxable year in

17 an amount equal to the sum of—

18 ‘‘(1) $100, plus

19 ‘‘(2) 100 percent of the designated wages of

20 such individual for the taxable year, plus

21 ‘‘(3) 100 percent of the designated self-employ22 ment income of such individual for the taxable year.

23 ‘‘(b) LIMITATIONS.—
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1 ‘‘(1) AMOUNT.—The amount determined under

2 subsection (a) with respect to such individual for

3 any taxable year may not exceed the excess (if any)

4 of—

5 ‘‘(A) an amount equal to 1 percent of the

6 contribution and benefit base for such taxable

7 year (as determined under section 230 of the

8 Social Security Act), over

9 ‘‘(B) the sum of the amounts received by

10 the Secretary on behalf of such individual under

11 sections 3101(a)(2)(A)(i) and 1401(a)(2)(A)(i)

12 for such taxable year.

13 ‘‘(2) FAILURE TO MAKE VOLUNTARY CONTRIBU14 TIONS.—In the case of a part B eligible individual

15 with respect to whom the amount of wages des16 ignated under section 3101(a)(2)(A)(ii) plus the

17 amount self-employment income designated under

18 section 1401(a)(2)(A)(ii) for the taxable year is less

19 that $1, the credit to which such individual is enti20 tled under this section shall be equal to zero.

21 ‘‘(c) DEFINITIONS.—For purposes of this section—

22 ‘‘(1) PART B ELIGIBLE INDIVIDUAL.—The term

23 ‘part B eligible individual’ means, for any calendar

24 year, an individual who—
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1 ‘‘(A) is an eligible individual (as defined in

2 section 251(a)(2) of the Social Security Act) for

3 such calendar year, and

4 ‘‘(B) is not an individual with respect to

5 whom another taxpayer is entitled to a deduc6 tion under section 151(c).

7 ‘‘(2) DESIGNATED WAGES.—The term ‘des8 ignated wages’ means with respect to any taxable

9 year the amount designated under section

10 3101(a)(2)(A)(ii).

11 ‘‘(3) DESIGNATED SELF-EMPLOYMENT IN12 COME.—The term ‘designated self-employment in13 come’ means with respect to any taxable year the

14 amount designated under section 1401(a)(2)(A)(ii)

15 for such taxable year.

16 ‘‘(d) CREDIT USED ONLY FOR INDIVIDUAL SAVINGS

17 ACCOUNT.—For purposes of this title, the credit allowed

18 under this section with respect to any part B eligible

19 individual—

20 ‘‘(1) shall not be treated as a credit allowed

21 under this part, but

22 ‘‘(2) shall be treated as an overpayment of tax

23 under section 6401(b)(3) which may, in accordance

24 with section 6402(l), only be transferred to an indi25 vidual savings account established under part B of
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1 title II of the Social Security Act with respect to

2 such individual.’’.

3 (2) CONTRIBUTION OF CREDITED AMOUNTS TO

4 INDIVIDUAL SAVINGS ACCOUNT.—

5 (A) CREDITED AMOUNTS TREATED AS

6 OVERPAYMENT OF TAX.—Subsection (b) of sec7 tion 6401 of such Code (relating to excessive

8 credits) is amended by adding at the end the

9 following:

10 ‘‘(3) SPECIAL RULE FOR CREDIT UNDER SEC11 TION 54.—Subject to the provisions of section

12 6402(l), the amount of any credit allowed under sec13 tion 54 for any taxable year shall be considered an

14 overpayment.’’.

15 (B) TRANSFER OF CREDIT AMOUNT TO IN16 DIVIDUAL SAVINGS ACCOUNT.—Section 6402 of

17 such Code (relating to authority to make credits

18 or refunds) is amended by adding at the end

19 the following:

20 ‘‘(l) OVERPAYMENTS ATTRIBUTABLE TO INDIVIDUAL

21 SAVINGS ACCOUNT CREDIT.—In the case of any overpay22 ment described in section 6401(b)(3) with respect to any

23 individual, the Secretary shall transfer for crediting by the

24 Commissioner of Social Security to the individual savings
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1 account of such individual, an amount equal to the amount

2 of such overpayment.’’.

3 (4) CONFORMING AMENDMENTS.—

4 (A) Section 1324(b)(2) of title 31, United

5 States Code, is amended by inserting before the

6 period at the end ‘‘, or enacted by the Bipar7 tisan Social Security Reform Act of 1999’’.

8 (B) The table of subparts for part IV of

9 subchapter A of chapter 1 of the Internal Rev10 enue Code of 1986 is amended by adding at the

11 end the following:

‘‘Subpart H. Individual Savings Account Credits.’’.

12 (5) EFFECTIVE DATE.—The amendments made

13 by this subsection shall apply to refunds payable

14 after December 31, 1999.

15 (d) TAX TREATMENT OF INDIVIDUAL SAVINGS AC16 COUNTS.—

17 (1) IN GENERAL.—Subchapter F of chapter 1

18 of the Internal Revenue Code of 1986 (relating to

19 exempt organizations) is amended by adding at the

20 end the following:

21 ‘‘PART IX—INDIVIDUAL SAVINGS FUND AND

22 ACCOUNTS

‘‘Sec. 531. Individual Savings Fund and Accounts.
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1 ‘‘SEC. 531. INDIVIDUAL SAVINGS FUND AND ACCOUNTS.

2 ‘‘(a) GENERAL RULE.—The Individual Savings Fund

3 and individual savings accounts shall be exempt from tax4 ation under this subtitle.

5 ‘‘(b) INDIVIDUAL SAVINGS FUND AND ACCOUNTS

6 DEFINED.—For purposes of this section, the terms ‘Indi7 vidual Savings Fund’ and ‘individual savings account’

8 means the fund and account established under sections

9 254 and 251, respectively, of part B of title II of the So10 cial Security Act.

11 ‘‘(c) CONTRIBUTIONS.—

12 ‘‘(1) IN GENERAL.—No deduction shall be al13 lowed for contributions credited to an individual sav14 ings account under section 251 of the Social Secu15 rity Act or section 6402(l).

16 ‘‘(2) ROLLOVER OF INHERITANCE.—Any por17 tion of a distribution to an heir from an individual

18 savings account made by reason of the death of the

19 beneficiary of such account may be rolled over to the

20 individual savings account of the heir after such

21 death.

22 ‘‘(d) DISTRIBUTIONS.—

23 ‘‘(1) IN GENERAL.—Any distribution from an

24 individual savings account under section 253 of the

25 Social Security Act shall be included in gross income

26 under section 72.
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1 ‘‘(2) PERIOD IN WHICH DISTRIBUTIONS MUST

2 BE MADE FROM ACCOUNT OF DECEDENT.—In the

3 case of amounts remaining in an individual savings

4 account from which distributions began before the

5 death of the beneficiary, rules similar to the rules of

6 section 401(a)(9)(B) shall apply to distributions of

7 such remaining amounts.

8 ‘‘(3) ROLLOVERS.—Paragraph (1) shall not

9 apply to amounts rolled over under subsection (c)(2)

10 in a direct transfer by the Commissioner of Social

11 Security, under regulations which the Commissioner

12 shall prescribe.’’.

13 (2) CLERICAL AMENDMENT.—The table of

14 parts for subchapter F of chapter 1 of such Code is

15 amended by adding after the item relating to part

16 VIII the following:

‘‘Part IX. Individual savings fund and accounts.’’.

17 (3) EFFECTIVE DATE.—The amendments made

18 by this subsection shall apply to taxable years begin19 ning after December 31, 1999.

20 SEC. 102. SOCIAL SECURITY KIDSAVE ACCOUNTS.

21 Title II of the Social Security Act (42 U.S.C. 401

22 et seq.), as amended by section 101(a), is amended by

23 adding at the end the following:
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1 ‘‘PART C—KIDSAVE ACCOUNTS

2 ‘‘KIDSAVE ACCOUNTS

3 ‘‘SEC. 261. (a) ESTABLISHMENT.—The Commis4 sioner of Social Security shall establish in the name of

5 each individual born on or after January 1, 1995, a

6 KidSave Account upon the later of—

7 ‘‘(1) the date of enactment of this part, or

8 ‘‘(2) the date of the issuance of a Social Secu9 rity account number under section 205(c)(2) to such

10 individual.

11 The KidSave Account shall be identified to the account

12 holder by means of the account holder’s Social Security

13 account number.

14 ‘‘(b) CONTRIBUTIONS.—

15 ‘‘(1) IN GENERAL.—There are authorized to be

16 appropriated and are appropriated such sums as are

17 necessary in order for the Secretary of the Treasury

18 to transfer from the general fund of the Treasury

19 for crediting by the Commissioner to each account

20 holder’s KidSave Account under subsection (a), an

21 amount equal to the sum of—

22 ‘‘(A) in the case of any individual born on

23 or after January 1, 2000, $1,000, on the date

24 of the establishment of such individual’s

25 KidSave Account, and
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1 ‘‘(B) in the case of any individual born on

2 or after January 1, 1995, $500, on the 1st,

3 2nd, 3rd, 4th, and 5th birthdays of such indi4 vidual occurring on or after January 1, 2000.

5 ‘‘(2) ADJUSTMENT FOR INFLATION.—For any

6 calendar year after 2009, each of the dollar amounts

7 under paragraph (1) shall be increased by the cost8 of-living adjustment determined under section 215(i)

9 for the calendar year.

10 ‘‘(c) DESIGNATIONS REGARDING KIDSAVE AC11 COUNTS.—

12 ‘‘(1) INITIAL DESIGNATIONS OF INVESTMENT

13 VEHICLE.—A person described in subsection (d)

14 shall, on behalf of the individual described in sub15 section (a), designate the investment vehicle for the

16 KidSave Account to which contributions on behalf of

17 such individual are to be deposited. Such designation

18 shall be made on the application for such individ19 ual’s Social Security account number.

20 ‘‘(2) CHANGES IN INVESTMENT VEHICLES.—

21 The Commissioner shall by regulation provide the

22 time and manner by which an individual or a person

23 described in subsection (d) on behalf of such indi24 vidual may change 1 or more investment vehicles for

25 a KidSave Account.
26

•S 1383 IS

1 ‘‘(d) TREATMENT OF MINORS AND INCOMPETENT IN2 DIVIDUALS.—Any designation under subsection (c) to be

3 made by a minor, or an individual mentally incompetent

4 or under other legal disability, may be made by the person

5 who is constituted guardian or other fiduciary by the law

6 of the State of residence of the individual or is otherwise

7 legally vested with the care of the individual or his estate.

8 Payment under this part due a minor, or an individual

9 mentally incompetent or under other legal disability, may

10 be made to the person who is constituted guardian or

11 other fiduciary by the law of the State of residence of the

12 claimant or is otherwise legally vested with the care of the

13 claimant or his estate. In any case in which a guardian

14 or other fiduciary of the individual under legal disability

15 has not been appointed under the law of the State of resi16 dence of the individual, if any other person, in the judg17 ment of the Commissioner, is responsible for the care of

18 such individual, any designation under subsection (c)

19 which may otherwise be made by such individual may be

20 made by such person, any payment under this part which

21 is otherwise payable to such individual may be made to

22 such person, and the payment of an annuity payment

23 under this part to such person bars recovery by any other

24 person.
27

•S 1383 IS

1 ‘‘DEFINITIONS AND SPECIAL RULES

2 ‘‘SEC. 262. (a) KIDSAVE ACCOUNTS.—In this part,

3 the term ‘KidSave Account’ means any KidSave Account

4 in the Individual Savings Fund (established under section

5 254) which is administered by the Individual Savings

6 Fund Board.

7 ‘‘(b) TREATMENT OF ACCOUNTS.—

8 ‘‘(1) IN GENERAL.—Except as provided in para9 graph (2), any KidSave Account described in sub10 section (a) shall be treated in the same manner as

11 an individual savings account under part B.

12 ‘‘(2) DISTRIBUTIONS.—Notwithstanding any

13 other provision of law, distributions may only be

14 made from a KidSave Account of an individual on

15 or after the earlier of—

16 ‘‘(A) the date on which the individual be17 gins receiving benefits under this title, or

18 ‘‘(B) the date of the individual’s death.’’.

19 SEC. 103. ADJUSTMENTS TO PRIMARY INSURANCE

20 AMOUNTS UNDER PART A OF TITLE II OF THE

21 SOCIAL SECURITY ACT.

22 (a) IN GENERAL.—Section 215 of the Social Security

23 Act (42 U.S.C. 415) is amended by adding at the end the

24 following:
28

•S 1383 IS

1 ‘‘Adjustment of Primary Insurance Amount in Relation

2 to Deposits Made to Individual Savings Accounts

3 and KidSave Accounts

4 ‘‘(j)(1) Except as provided in paragraph (2), an indi5 vidual’s primary insurance amount as determined in ac6 cordance with this section (before adjustments made

7 under subsection (i)) shall be equal to the excess (if any)

8 of—

9 ‘‘(A) the amount which would be so determined

10 without the application of this subsection, over

11 ‘‘(B) the monthly amount of an immediate life

12 annuity, determined on the basis of the sum of—

13 ‘‘(A) the total of all amounts which have

14 been credited pursuant to section 251(b) (in15 dexed in the same manner as is applicable with

16 respect to average indexed monthly earnings

17 under subsection (b)) to the individual savings

18 account held by such individual, plus

19 ‘‘(B) 50 percent of the accumulated value

20 of the KidSave Account (established on behalf

21 of such individual under section 261(a)) deter22 mined on the date such KidSave Account is re23 designated as an individual savings account

24 held by such individual under section

25 251(a)(1)(B), plus
29

•S 1383 IS

1 ‘‘(C) accrued interest on such amounts

2 compounded annually—

3 ‘‘(i) assuming an interest rate equal

4 to the projected interest rate of the Fed5 eral Old-Age and Survivors Trust Fund,

6 and

7 ‘‘(ii) using the mortality table used

8 under 412(l)(7)(C)(ii) of the Internal Rev9 enue Code of 1986.

10 ‘‘(2) In the case of an individual who becomes entitled

11 to disability insurance benefits under section 223, such in12 dividual’s primary insurance amount shall be determined

13 without regard to paragraph (1).

14 ‘‘(3) For purposes of this subsection, the term ‘imme15 diate life annuity’ means an annuity—

16 ‘‘(A) the annuity starting date (as defined in

17 section 72(c)(4) of the Internal Revenue Code of

18 1986) of which commences with the first month fol19 lowing the date of the determination, and

20 ‘‘(B) which provides for a series of substantially

21 equal monthly payments over the life expectancy of

22 the individual.’’.

23 (b) CONFORMING AMENDMENT TO RAILROAD RE24 TIREMENT ACT OF 1974.—Section 1 of the Railroad Re-
30

•S 1383 IS

1 tirement Act of 1974 (45 U.S.C. 231) is amended by add2 ing at the end the following:

3 ‘‘(s) In applying applicable provisions of the Social

4 Security Act for purposes of determining the amount of

5 the annuity to which an individual is entitled under this

6 Act, section 215(j) of the Social Security Act and part

7 B of title II of such Act shall be disregarded.’’

8 (c) EFFECTIVE DATE.—The amendments made by

9 this section shall apply with respect to computations and

10 recomputations of primary insurance amounts occurring

11 after December 31, 1999.

12 TITLE II—SOCIAL SECURITY

13 SYSTEM ADJUSTMENTS

14 SEC. 201. ADJUSTMENTS TO BEND POINTS IN DETER15 MINING PRIMARY INSURANCE AMOUNTS.

16 (a) ADDITIONAL BEND POINT.—Section

17 215(a)(1)(A) of the Social Security Act (42 U.S.C.

18 415(a)(1)(A)) is amended—

19 (1) in clause (ii), by striking ‘‘and’’ at the end;

20 (2) in clause (iii)—

21 (A) by striking ‘‘15 percent’’ and inserting

22 ‘‘32 percent’’;

23 (B) by striking ‘‘clause (ii),’’ and inserting

24 the following: ‘‘clause (ii) but do not exceed the
31

•S 1383 IS

1 amount established for purposes of this clause

2 by subparagraph (B), and’’; and

3 (3) by inserting after clause (iii) the following:

4 ‘‘(iv) 15 percent of the individual’s average in5 dexed monthly earnings to the extent that such

6 earnings exceed the amount established for purposes

7 of clause (iii),’’.

8 (b) INITIAL LEVEL OF ADDITIONAL BEND POINT.—

9 Section 215(a)(1)(B)(i) of such Act (42 U.S.C.

10 415(a)(1)(B)(i)) is amended—

11 (1) by striking ‘‘clause (i) and (ii)’’ and insert12 ing ‘‘clauses (i) and (iii)’’; and

13 (2) by adding at the end the following: ‘‘For in14 dividuals who initially become eligible for old-age or

15 disability insurance benefits, or who die (before be16 coming eligible for such benefit), in the calendar

17 year 2000, the amount established for purposes of

18 clause (ii) of subparagraph (A) shall be equal to

19 197.5 percent of the amount established for pur20 poses of clause (i).’’.

21 (c) ADJUSTMENTS TO PIA FORMULA FACTORS.—

22 Section 215(a)(1)(B) of such Act (42 U.S.C.

23 415(a)(1)(B)) is amended further—

24 (1) by redesignating clause (iii) as clause (iv);

25 (2) by inserting after clause (ii) the following:
32

•S 1383 IS

1 ‘‘(iii) For individuals who initially become eligible for

2 old-age or disability insurance benefits, or who die (before

3 becoming eligible for such benefits), in any calendar year

4 after 2005, effective for such calendar year—

5 ‘‘(I) the percentage in effect under clause (ii) of

6 subparagraph (A) shall be equal to the percentage in

7 effect under such clause for calendar year 2005 in8 creased the applicable number of times by 3.8 per9 centage points,

10 ‘‘(II) the percentage in effect under clause (iii)

11 of subparagraph (A) shall be equal to the percentage

12 in effect under such clause for calendar year 2005

13 decreased the applicable number of times by 1.2 per14 centage points, and

15 ‘‘(III) the percentage in effect under clause (iv)

16 of subparagraph (A) shall be equal to the percentage

17 in effect under such clause for calendar year 2005

18 decreased the applicable number of times by 0.5 per19 centage points.

20 For purposes of the preceding sentence, the term ‘applica21 ble number of times’ means a number equal to the lesser

22 of 10 or the number of years beginning with 2006 and

23 ending with the year of initial eligibility or death.’’; and

24 (3) in clause (iv) (as redesignated), by striking

25 ‘‘amount’’ and inserting ‘‘dollar amount’’.
33

•S 1383 IS

1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall apply with respect to primary insurance

3 amounts of individuals attaining early retirement age (as

4 defined in section 216(l) of the Social Security Act), or

5 dying, after December 31, 1999.

6 SEC. 202. ADJUSTMENT OF WIDOWS’ AND WIDOWERS’ IN7 SURANCE BENEFITS.

8 (a) WIDOW’S BENEFIT.—Section 202(e)(2)(A) of the

9 Social Security Act (42 U.S.C. 402(e)(2)(A)) is amended

10 by striking ‘‘equal to’’ and all that follows and inserting

11 ‘‘equal to the greater of—

12 ‘‘(i) the primary insurance amount (as deter13 mined for purposes of this subsection after applica14 tion of subparagraphs (B) and (C)) of such deceased

15 individual, or

16 ‘‘(ii) the applicable percentage of the joint ben17 efit which would have been received by the widow or

18 surviving divorced wife and the deceased individual

19 for such month if such individual had not died.

20 For purposes of clause (ii), the applicable percentage is

21 equal to 50 percent in 2000, increased (but not above 75

22 percent) by 1 percentage point in every second year there23 after.’’.

24 (b) WIDOWER’S BENEFIT.—Section 202(f)(3)(A) of

25 the Social Security Act (42 U.S.C. 402(b)(3)(A)) is
34

•S 1383 IS

1 amended by striking ‘‘equal to’’ and all that follows and

2 inserting ‘‘equal to the greater of—

3 ‘‘(i) the primary insurance amount (as deter4 mined for purposes of this subsection after applica5 tion of subparagraphs (B) and (C)) of such deceased

6 individual, or

7 ‘‘(ii) the applicable percentage of the joint ben8 efit which would have been received by the widow or

9 surviving divorced husband and the deceased indi10 vidual for such month if such individual had not

11 died.

12 For purposes of clause (ii), the applicable percentage is

13 equal to 50 percent in 2000, increased (but not above 75

14 percent) by 1 percentage point in every second year there15 after.’’.

16 SEC. 203. ELIMINATION OF EARNINGS TEST FOR INDIVID17 UALS WHO HAVE ATTAINED EARLY RETIRE18 MENT AGE.

19 (a) IN GENERAL.—Section 203 of the Social Security

20 Act (42 U.S.C. 403) is amended—

21 (1) in subsection (c)(1), by striking ‘‘the age of

22 seventy’’ and inserting ‘‘early retirement age (as de23 fined in section 216(l))’’;

24 (2) in paragraphs (1)(A) and (2) of subsection

25 (d), by striking ‘‘the age of seventy’’ each place it
35

•S 1383 IS

1 appears and inserting ‘‘early retirement age (as de2 fined in section 216(l))’’;

3 (3) in subsection (f)(1)(B), by striking ‘‘was

4 age seventy or over’’ and inserting ‘‘was at or above

5 early retirement age (as defined in section 216(l))’’;

6 (4) in subsection (f)(3)—

(A) by striking ‘‘331 7 ⁄3 percent’’ and all

8 that follows through ‘‘any other individual,’’

9 and inserting ‘‘50 percent of such individual’s

10 earnings for such year in excess of the product

11 of the exempt amount as determined under

12 paragraph (8),’’; and

13 (B) by striking ‘‘age 70’’ and inserting

14 ‘‘early retirement age (as defined in section

15 216(l))’’;

16 (5) in subsection (h)(1)(A), by striking ‘‘age

17 70’’ each place it appears and inserting ‘‘early re18 tirement age (as defined in section 216(l))’’; and

19 (6) in subsection (j)—

20 (A) in the heading, by striking ‘‘Age Sev21 enty’’ and inserting ‘‘Early Retirement Age’’;

22 and

23 (B) by striking ‘‘seventy years of age’’ and

24 inserting ‘‘having attained early retirement age

25 (as defined in section 216(l))’’.
36

•S 1383 IS

1 (b) CONFORMING AMENDMENTS ELIMINATING THE

2 SPECIAL EXEMPT AMOUNT FOR INDIVIDUALS WHO HAVE

3 ATTAINED AGE 62.—

4 (1) UNIFORM EXEMPT AMOUNT.—Section

5 203(f)(8)(A) of the Social Security Act (42 U.S.C.

6 403(f)(8)(A)) is amended by striking ‘‘the new ex7 empt amounts (separately stated for individuals de8 scribed in subparagraph (D) and for other individ9 uals) which are to be applicable’’ and inserting ‘‘a

10 new exempt amount which shall be applicable’’.

11 (2) CONFORMING AMENDMENTS.—Section

12 203(f)(8)(B) of the Social Security Act (42 U.S.C.

13 403(f)(8)(B)) is amended—

14 (A) in the matter preceding clause (i), by

15 striking ‘‘Except’’ and all that follows through

16 ‘‘whichever’’ and inserting ‘‘The exempt amount

17 which is applicable for each month of a par18 ticular taxable year shall be whichever’’;

19 (B) in clauses (i) and (ii), by striking ‘‘cor20 responding’’ each place it appears; and

21 (C) in the last sentence, by striking ‘‘an

22 exempt amount’’ and inserting ‘‘the exempt

23 amount’’.

24 (3) REPEAL OF BASIS FOR COMPUTATION OF

25 SPECIAL EXEMPT AMOUNT.—Section 203(f)(8)(D) of
37

•S 1383 IS

1 the Social Security Act (42 U.S.C. 403(f)(8)(D)) is

2 repealed.

3 (c) ADDITIONAL CONFORMING AMENDMENTS.—

4 (1) ELIMINATION OF REDUNDANT REFERENCES

5 TO RETIREMENT AGE.—Section 203 of the Social

6 Security Act (42 U.S.C. 403) is amended—

7 (A) in subsection (c), in the last sentence,

8 by striking ‘‘nor shall any deduction’’ and all

9 that follows and inserting ‘‘nor shall any deduc10 tion be made under this subsection from any

11 widow’s or widower’s insurance benefit if the

12 widow, surviving divorced wife, widower, or sur13 viving divorced husband involved became enti14 tled to such benefit prior to attaining age 60.’’;

15 and

16 (B) in subsection (f)(1), by striking clause

17 (D) and inserting the following: ‘‘(D) for which

18 such individual is entitled to widow’s or wid19 ower’s insurance benefits if such individual be20 came so entitled prior to attaining age 60,’’.

21 (2) CONFORMING AMENDMENT TO PROVISIONS

22 FOR DETERMINING AMOUNT OF INCREASE ON AC23 COUNT OF DELAYED RETIREMENT.—Section

24 202(w)(2)(B)(ii) of the Social Security Act (42

25 U.S.C. 402(w)(2)(B)(ii)) is amended—
38

•S 1383 IS

1 (A) by striking ‘‘either’’; and

2 (B) by striking ‘‘or suffered deductions

3 under section 203(b) or 203(c) in amounts

4 equal to the amount of such benefit’’.

5 (3) PROVISIONS RELATING TO EARNINGS

6 TAKEN INTO ACCOUNT IN DETERMINING SUBSTAN7 TIAL GAINFUL ACTIVITY OF BLIND INDIVIDUALS.—

8 The second sentence of section 223(d)(4) of such

9 Act (42 U.S.C. 423(d)(4)) is amended by striking

10 ‘‘if section 102 of the Senior Citizens’ Right to

11 Work Act of 1996 had not been enacted’’ and insert12 ing the following: ‘‘if the amendments to section 203

13 made by section 102 of the Senior Citizens’ Right to

14 Work Act of 1996 and by the Bipartisan Social Se15 curity Reform Act of 1999 had not been enacted’’.

16 (d) STUDY OF THE EFFECT OF TAKING EARNINGS

17 INTO ACCOUNT IN DETERMINING SUBSTANTIAL GAINFUL

18 ACTIVITY OF DISABLED INDIVIDUALS.—

19 (1) IN GENERAL.—Not later than February 15,

20 2001, the Commissioner of Social Security shall con21 duct a study on the effect that taking earnings into

22 account in determining substantial gainful activity of

23 individuals receiving disability insurance benefits has

24 on the incentive for such individuals to work and

25 submit to Congress a report on the study.
39

•S 1383 IS

1 (2) CONTENTS OF STUDY.—The study con2 ducted under paragraph (1) shall include the evalua3 tion of—

4 (A) the effect of the current limit on earn5 ings on the incentive for individuals receiving

6 disability insurance benefits to work;

7 (B) the effect of increasing the earnings

8 limit or changing the manner in which disability

9 insurance benefits are reduced or terminated as

10 a result of substantial gainful activity (includ11 ing reducing the benefits gradually when the

12 earnings limit is exceeded) on—

13 (i) the incentive to work; and

14 (ii) the financial status of the Federal

15 Disability Insurance Trust Fund;

16 (C) the effect of extending eligibility for

17 the Medicare program to individuals during the

18 period in which disability insurance benefits of

19 the individual are gradually reduced as a result

20 of substantial gainful activity and extending

21 such eligibility for a fixed period of time after

22 the benefits are terminated on—

23 (i) the incentive to work; and

24 (ii) the financial status of the Federal

25 Hospital Insurance Trust Fund and the
40

•S 1383 IS

1 Federal Supplementary Medical Insurance

2 Trust Fund; and

3 (D) the relationship between the effect of

4 substantial gainful activity limits on blind indi5 viduals receiving disability insurance benefits

6 and other individuals receiving disability insur7 ance benefits.

8 (3) CONSULTATION.—The analysis under para9 graph (2)(C) shall be done in consultation with the

10 Administrator of the Health Care Financing Admin11 istration.

12 (e) EFFECTIVE DATE.—The amendments and re13 peals made by subsections (a), (b), and (c) shall apply with

14 respect to taxable years ending after December 31, 2002.

15 SEC. 204. GRADUAL INCREASE IN NUMBER OF BENEFIT

16 COMPUTATION YEARS; USE OF ALL YEARS IN

17 COMPUTATION.

18 (a) IN GENERAL.—Section 215(b)(2)(A) of the Social

19 Security Act (42 U.S.C. 415(b)(2)(A)) is amended—

20 (1) in clause (i), by striking ‘‘5 years’’ and in21 serting ‘‘the applicable number of years for purposes

22 of this clause’’; and

23 (2) by striking ‘‘Clause (ii),’’ in the matter fol24 lowing clause (ii) and inserting the following:
41

•S 1383 IS

1 ‘‘For purposes of clause (i), the applicable number of years

2 is the number of years specified in connection with the

3 year in which such individual reaches early retirement age

4 (as defined in section 216(l)(2)), or, if earlier, the calendar

5 year in which such individual dies, as set forth in the fol6 lowing table:

‘‘If such calendar year is: The applicable number of years

is:

2002 ................................................................................................... 4.

2003 ................................................................................................... 4.

2004 ................................................................................................... 3.

2005 ................................................................................................... 3.

2006 ................................................................................................... 2.

2007 ................................................................................................... 2.

2008 ................................................................................................... 1.

2009 ................................................................................................... 1.

After 2009 .......................................................................................... 0.

7 Notwithstanding the preceding sentence, the applicable

8 number of years is 5, in the case of any individual who

9 is entitled to old-age insurance benefits, and has a spouse

10 who is also so entitled (or who died without having become

11 so entitled) who has greater total wages and self-employ12 ment income credited to benefit computation years than

13 the individual. Clause (ii),’’.

14 (b) USE OF ALL YEARS IN COMPUTATION.—

15 (1) IN GENERAL.—Section 215(b)(2)(B) of the

16 Social Security Act (42 U.S.C. 415(b)(2)(B)) is

17 amended by striking clauses (i) and (ii) and insert18 ing the following:

19 ‘‘(i)(I) for calendar years after 2001 and before

20 2010, the term ‘benefit computation years’ means
42

•S 1383 IS

1 those computation base years equal in number to the

2 number determined under subparagraph (A) plus

3 the applicable number of years determined under

4 subclause (III), for which the total of such individ5 ual’s wages and self-employment income, after ad6 justment under paragraph (3), is the largest;

7 ‘‘(II) for calendar years after 2009, the term

8 ‘benefit computation years’ means all of the com9 putation base years; and

10 ‘‘(III) for purposes of subclause (I), the applica11 ble number of years is the number of years specified

12 in connection with the year in which such individual

13 reaches early retirement age (as defined in section

14 216(l)(2)), or, if earlier, the calendar year in which

15 such individual dies, as set forth in the following

16 table:

‘‘If such calendar year is: The applicable number of years

is:

Before 2002 ....................................................................................... 0.

2002 ................................................................................................... 1.

2003 ................................................................................................... 1.

2004 ................................................................................................... 2.

2005 ................................................................................................... 2.

2006 ................................................................................................... 3.

2007 ................................................................................................... 3.

2008 ................................................................................................... 4.

2009 ................................................................................................... 4.

17 ‘‘(ii) the term ‘computation base years’ means

18 the calendar years after 1950, except that such term

19 excludes any calendar year entirely included in a pe20 riod of disability; and’’.
43

•S 1383 IS

1 (2) CONFORMING AMENDMENT.—Section

2 215(b)(1)(B) of the Social Security Act (42 U.S.C.

3 415(b)(1)(B)) is amended by striking ‘‘in those

4 years’’ and inserting ‘‘in an individual’s computation

5 base years determined under paragraph (2)(A)’’.

6 (c) EFFECTIVE DATE.—

7 (1) SUBSECTION (a).—The amendments made

8 by subsection (a) shall apply with respect to individ9 uals attaining early retirement age (as defined in

10 section 216(l)(2) of the Social Security Act) after

11 December 31, 2001.

12 (2) SUBSECTION (b).—The amendment made

13 by subsection (b) shall apply to benefit computation

14 years beginning after December 31, 1999.

15 SEC. 205. MAINTENANCE OF BENEFIT AND CONTRIBUTION

16 BASE.

17 (a) IN GENERAL.—Section 230 of the Social Security

18 Act (42 U.S.C. 430) is amended to read as follows:

19 ‘‘MAINTENANCE OF THE CONTRIBUTION AND BENEFIT

20 BASE

21 ‘‘SEC. 230. (a) The Commissioner of Social Security

22 shall determine and publish in the Federal Register on or

23 before November 1 of each calendar year the contribution

24 and benefit base determined under subsection (b) which

25 shall be effective with respect to remuneration paid after
44

•S 1383 IS

1 such calendar year and taxable years beginning after such

2 year.

3 ‘‘(b) For purposes of this section, for purposes of de4 termining wages and self-employment income under sec5 tions 209, 211, 213, and 215 of this Act and sections 54,

6 1402, 3121, 3122, 3125, 6413, and 6654 of the Internal

7 Revenue Code of 1986, and for purposes of section

8 4022(b)(3)(B) of Public Law 93–406, the contribution

9 and benefit base with respect to remuneration paid in (and

10 taxable years beginning in) any calendar year is an

11 amount equal to 86 percent of the total wages for the pre12 ceding calendar year (within the meaning of section

13 209).’’.

14 (b) EFFECTIVE DATE.—The amendment made by

15 this section shall apply to remuneration paid in (and tax16 able years beginning in) any calendar year after 1999.

17 SEC. 206. REDUCTION IN THE AMOUNT OF CERTAIN TRANS18 FERS TO MEDICARE TRUST FUND.

19 Subparagraph (A) of section 121(e)(1) of the Social

20 Security Amendments of 1983 (42 U.S.C. 401 note), as

21 amended by section 13215(c)(1) of the Omnibus Budget

22 Reconciliation Act of 1993, is amended—

23 (1) in clause (ii), by striking ‘‘the amounts’’

24 and inserting ‘‘the applicable percentage of the

25 amounts’’; and
45

•S 1383 IS

1 (2) by adding at the end the following: ‘‘For

2 purposes of clause (ii), the applicable percentage for

3 a year is equal to 100 percent, reduced (but not

4 below zero) by 10 percentage points for each year

5 after 2004.’’.

6 SEC. 207. ACTUARIAL ADJUSTMENT FOR RETIREMENT.

7 (a) EARLY RETIREMENT.—

8 (1) IN GENERAL.—Section 202(q) of the Social

9 Security Act (42 U.S.C. 402(q)) is amended—

(A) in paragraph (1)(A), by striking ‘‘5 10 ⁄9’’

11 and inserting ‘‘the applicable fraction (deter12 mined under paragraph (12))’’; and

13 (B) by adding at the end the following:

14 ‘‘(12) For purposes of paragraph (1)(A), the ‘applica15 ble fraction’ for an individual who attains the age of 62

16 in—

‘‘(A) any year before 2001, is 5 17 ⁄9;

‘‘(B) 2001, is 7 18 ⁄12;

‘‘(C) 2002, is 11 19 ⁄18;

‘‘(D) 2003, is 23 20 ⁄36;

‘‘(E) 2004, is 2 21 ⁄3; and

‘‘(F) 2005 or any succeeding year, is 25 22 ⁄36.’’.

23 (2) MONTHS BEYOND FIRST 36 MONTHS.—Sec24 tion 202(q) of such Act (42 U.S.C. 402(q)(9)) (as

25 amended by paragraph (1)) is amended—
46

•S 1383 IS

1 (A) in paragraph (9)(A), by striking ‘‘five2 twelfths’’ and inserting ‘‘the applicable fraction

3 (determined under paragraph (13))’’; and

4 (B) by adding at the end the following:

5 ‘‘(13) For purposes of paragraph (9)(A), the ‘applica6 ble fraction’ for an individual who attains the age of 62

7 in—

‘‘(A) any year before 2001, is 5 8 ⁄12;

‘‘(B) 2001, is 16 9 ⁄36;

‘‘(C) 2002, is 16 10 ⁄36;

‘‘(D) 2003, is 17 11 ⁄36;

‘‘(E) 2004, is 17 12 ⁄36; and

‘‘(F) 2005 or any succeeding year, is 1 13 ⁄2.’’.

14 (3) EFFECTIVE DATE.—The amendments made

15 by paragraphs (1) and (2) shall apply to individuals

16 who attain the age of 62 in years after 1999.

17 (b) DELAYED RETIREMENT.—Section 202(w)(6) of

18 the Social Security Act (42 U.S.C. 402(w)(6)) is

19 amended—

20 (1) in subparagraph (C), by striking ‘‘and’’ at

21 the end;

22 (2) in subparagraph (D), by striking ‘‘2004.’’

23 and inserting ‘‘2004 and before 2007;’’; and

24 (3) by adding at the end the following:
47

•S 1383 IS

‘‘(E) 17 1 ⁄24 of 1 percent in the case of an indi2 vidual who attains the age of 62 in a calendar year

3 after 2006 and before 2009;

‘‘(F) 3 4 ⁄4 of 1 percent in the case of an indi5 vidual who attains the age of 62 in a calendar year

6 after 2008 and before 2011;

‘‘(G) 19 7 ⁄24 of 1 percent in the case of an indi8 vidual who attains the age of 62 in a calendar year

9 after 2010 and before 2013; and

‘‘(H) 5 10 ⁄6 of 1 percent in the case of an indi11 vidual who attains the age of 62 in a calendar year

12 after 2012.’’.

13 SEC. 208. IMPROVEMENTS IN PROCESS FOR COST-OF-LIV14 ING ADJUSTMENTS.

15 (a) ANNUAL DECLARATIONS OF PERSISTING UPPER

16 LEVEL SUBSTITUTION BIAS, QUALITY-CHANGE BIAS,

17 AND NEW-PRODUCT BIAS.—Not later than December 1,

18 1999, and annually thereafter, the Commissioner of the

19 Bureau of Labor Statistics shall publish in the Federal

20 Register an estimate of the upper level substitution bias,

21 quality-change bias, and new-product bias retained in the

22 Consumer Price Index, expressed in terms of a percentage

23 point effect on the annual rate of change in the Consumer

24 Price Index determined through the use of a superlative
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1 index that accounts for changes that consumers make in

2 the quantities of goods and services consumed.

3 (b) MODIFICATION OF COST-OF-LIVING ADJUST4 MENT.—Notwithstanding any other provision of law, for

5 each calendar year after 1999 any cost-of-living adjust6 ment described in subsection (f) shall be further adjusted

7 by the greater of—

8 (1) 0.5 percentage point, or

9 (2) the correction for the upper level substi10 tution bias, quality-change bias, and new-product

11 bias (as last published by the Commissioner of the

12 Bureau of Labor Statistics pursuant to subsection

13 (a)).

14 (c) FUNDING FOR CPI IMPROVEMENTS.—

15 (1) IN GENERAL.—There is hereby appro16 priated to the Bureau of Labor Statistics in the De17 partment of Labor, for each of fiscal years 2000,

18 2001, and 2002, $60,000,000 for use by the Bureau

19 for the following purposes:

20 (A) Research, evaluation, and implementa21 tion of a superlative index to estimate upper

22 level substitution bias, quality-change bias, and

23 new-product bias in the Consumer Price Index.

24 (B) Expansion of the Consumer Expendi25 ture Survey and the Point of Purchase Survey.
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1 (2) REPORTS.—The Commissioner of the Bu2 reau of Labor Statistics shall submit reports regard3 ing the use of appropriations made under paragraph

4 (1) to the Committee on Appropriations of the

5 House of Representative and the Committee on Ap6 propriations of the Senate upon the request of each

7 Committee.

8 (d) INFORMATION SHARING.—The Commissioner of

9 the Bureau of Labor Statistics may secure directly from

10 the Secretary of Commerce information necessary for pur11 poses of calculating the Consumer Price Index. Upon re12 quest of the Commissioner of the Bureau of Labor Statis13 tics, the Secretary of Commerce shall furnish that infor14 mation to the Commissioner.

15 (e) ADMINISTRATIVE ADVISORY COMMITTEE.—The

16 Bureau of Labor Statistics shall, in consultation with the

17 National Bureau of Economic Research, the American

18 Economic Association, and the National Academy of Stat19 isticians, establish an administrative advisory committee.

20 The advisory committee shall periodically advise the Bu21 reau of Labor Statistics regarding revisions of the Con22 sumer Price Index and conduct research and experimen23 tation with alternative data collection and estimating ap24 proaches.
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1 (f) COST-OF-LIVING ADJUSTMENT DESCRIBED.—A

2 cost-of-living adjustment described in this subsection is

3 any cost-of-living adjustment for a calendar year after

4 1999 determined by reference to a percentage change in

5 a consumer price index or any component thereof (as pub6 lished by the Bureau of Labor Statistics of the Depart7 ment of Labor and determined without regard to this sec8 tion) and used in any of the following:

9 (1) The Internal Revenue Code of 1986.

10 (2) The provisions of this Act (other than pro11 grams under title XVI and any adjustment in the

12 case of an individual who attains early retirement

13 age before January 1, 2000).

14 (3) Any other Federal program.

15 (g) RECAPTURE OF CPI REFORM REVENUES DEPOS16 ITED INTO THE FEDERAL OLD-AGE AND SURVIVORS IN17 SURANCE TRUST FUND.—Section 201 of the Social Secu18 rity Act (42 U.S.C. 401) is amended by adding at the end

19 the following:

20 ‘‘(n) On July 1 of each calendar year specified in the

21 following table, the Secretary of the Treasury shall trans22 fer, from the general fund of the Treasury to the Federal

23 Old-Age and Survivors Insurance Trust Fund, an amount

24 equal to the applicable percentage for such year, specified
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1 in such table, of the total wages paid in and self-employ2 ment income credited to such year.

‘‘For a calendar year— The applicable percentage for

the year is—

After 1999 and before 2020 .......... 0.6 percent.

After 2019 and before 2040 .......... 0.8 percent.

After 2039 and before 2060 .......... 1.0 percent.

After 2059 ..................................... 1.2 percent.’’.

3 SEC. 209. MODIFICATION OF INCREASE IN NORMAL RE4 TIREMENT AGE.

5 (a) IN GENERAL.—Section 216(l)(1) of the Social Se6 curity Act (42 U.S.C. 416(l)(1)) is amended—

7 (1) in subparagraph (B)—

8 (A) by striking ‘‘2005’’ and inserting

9 ‘‘2011’’; and

10 (B) by adding ‘‘and’’ at the end; and

11 (2) by striking subparagraphs (C), (D), and (E)

12 and inserting the following:

13 ‘‘(C) With respect to an individual who attains

14 early retirement age after December 31, 2010, 67

15 years of age.’’.

16 (b) CONFORMING AMENDMENT.—Paragraph (3) of

17 section 216(l) of the Social Security Act (42 U.S.C.

18 416(l)) is amended to read as follows:

19 ‘‘(3) The age increase factor for any individual who

20 attains early retirement age in the period consisting of the

21 calendar years 2000 through 2010, the age increase factor

22 shall be equal to two-twelfths of the number of months
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1 in the period beginning with January 2000 and ending

2 with December of the year in which the individual attains

3 early retirement age.’’.

4 SEC. 210. MODIFICATION OF PIA FACTORS TO REFLECT

5 CHANGES IN LIFE EXPECTANCY.

6 (a) MODIFICATION OF PIA FACTORS.—Section

7 215(a)(1) of the Social Security Act (42 U.S.C.

8 415(a)(1)(B)) is amended by redesignating subparagraph

9 (D) as subparagraph (F) and by inserting after subpara10 graph (C) the following:

11 ‘‘(D)(i) For individuals who initially become eligible

12 for old-age insurance benefits in any calendar year after

13 2011, each of the percentages under clauses (i), (ii), (iii),

14 and (iv) of subparagraph (A) shall be multiplied the appli15 cable number of times by the applicable factor.

16 ‘‘(ii) For purposes of clause (i)—

17 ‘‘(I) the term ‘applicable number of times’

18 means a number equal to the lesser of 54 or the

19 number of years beginning with 2012 and ending

20 with the year of initial eligibility; and

21 ‘‘(II) the term ‘applicable factor’ means .988

22 with respect to the first 6 applicable number of

23 times and .997 with respect to the applicable num24 ber of times in excess of 6.
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1 ‘‘(E) For any individual who initially becomes eligible

2 for disability insurance benefits in any calendar year after

3 2011, the primary insurance amount for such individual

4 shall be equal to the greater of—

5 ‘‘(i) such amount as determined under this

6 paragraph, or

7 ‘‘(ii) such amount as determined under this

8 paragraph without regard to subparagraph (D)

9 thereof.’’.

10 (b) STUDY OF THE EFFECT OF INCREASES IN LIFE

11 EXPECTANCY.—

12 (1) STUDY PLAN.—Not later than February 15,

13 2001, the Commissioner of Social Security shall sub14 mit to Congress a detailed study plan for evaluating

15 the effects of increases in life expectancy on the ex16 pected level of retirement income from social secu17 rity, pensions, and other sources. The study plan

18 shall include a description of the methodology, data,

19 and funding that will be required in order to provide

20 to Congress not later than February 15, 2006—

21 (A) an evaluation of trends in mortality

22 and their relationship to trends in health sta23 tus, among individuals approaching eligibility

24 for social security retirement benefits;
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1 (B) an evaluation of trends in labor force

2 participation among individuals approaching eli3 gibility for social security retirement benefits

4 and among individuals receiving retirement ben5 efits, and of the factors that influence the

6 choice between retirement and participation in

7 the labor force;

8 (C) an evaluation of changes, if any, in the

9 social security disability program that would re10 duce the impact of changes in the retirement

11 income of workers in poor health or physically

12 demanding occupations;

13 (D) an evaluation of the methodology used

14 to develop projections for trends in mortality,

15 health status, and labor force participation

16 among individuals approaching eligibility for so17 cial security retirement benefits and among in18 dividuals receiving retirement benefits; and

19 (E) an evaluation of such other matters as

20 the Commissioner deems appropriate for evalu21 ating the effects of increases in life expectancy.

22 (2) REPORT ON RESULTS OF STUDY.—Not later

23 than February 15, 2006, the Commissioner of Social

24 Security shall provide to Congress an evaluation of

25 the implications of the trends studied under para-
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1 graph (1), along with recommendations, if any, of

2 the extent to which the conclusions of such evalua3 tions indicate that projected increases in life expect4 ancy require modification in the social security dis5 ability program and other income support programs.

6 SEC. 211. MECHANISM FOR REMEDYING UNFORESEEN DE7 TERIORATION IN SOCIAL SECURITY SOL8 VENCY.

9 (a) IN GENERAL.—Section 709 of the Social Security

10 Act (42 U.S.C. 910) is amended—

11 (1) by redesignating subsection (b) as sub12 section (c); and

13 (2) by striking ‘‘SEC. 709. (a) If the Board of

14 Trustees’’ and all that follows through ‘‘any such

15 Trust Fund’’ and inserting the following:

16 ‘‘SEC. 709. (a)(1)(A) If the Board of Trustees of the

17 Federal Old-Age and Survivors Insurance Trust Fund and

18 the Federal Disability Insurance Trust Fund determines

19 at any time, using intermediate actuarial assumptions,

20 that the balance ratio of either such Trust Fund for any

21 calendar year during the succeeding period of 75 calendar

22 years will be zero, the Board shall promptly submit to each

23 House of the Congress and to the President a report set24 ting forth its recommendations for statutory adjustments

25 affecting the receipts and disbursements of such Trust
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1 Fund necessary to maintain the balance ratio of such

2 Trust Fund at not less than 20 percent, with due regard

3 to the economic conditions which created such inadequacy

4 in the balance ratio and the amount of time necessary to

5 alleviate such inadequacy in a prudent manner. The report

6 shall set forth specifically the extent to which benefits

7 would have to be reduced, taxes under section 1401, 3101,

8 or 3111 of the Internal Revenue Code of 1986 would have

9 to be increased, or a combination thereof, in order to ob10 tain the objectives referred to in the preceding sentence.

11 ‘‘(B) In addition to any reports under subparagraph

12 (A), the Board shall, not later than May 30, 2001, prepare

13 and submit to Congress and the President recommenda14 tions for statutory adjustments to the disability insurance

15 program under title II of this Act to modify the changes

16 in disability benefits under the Bipartisan Social Security

17 Reform Act of 1999 without reducing the balance ratio

18 of the Federal Disability Insurance Trust Fund. The

19 Board shall develop such recommendations in consultation

20 with the National Council on Disability, taking into con21 sideration the adequacy of benefits under the program, the

22 relationship of such program with old age benefits under

23 such title, and changes in the process for determining ini24 tial eligibility and reviewing continued eligibility for bene25 fits under such program.
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1 ‘‘(2)(A) The President shall, no later than 30 days

2 after the submission of the report to the President, trans3 mit to the Board and to the Congress a report containing

4 the President’s approval or disapproval of the Board’s rec5 ommendations.

6 ‘‘(B) If the President approves all the recommenda7 tions of the Board, the President shall transmit a copy

8 of such recommendations to the Congress as the Presi9 dent’s recommendations, together with a certification of

10 the President’s adoption of such recommendations.

11 ‘‘(C) If the President disapproves the recommenda12 tions of the Board, in whole or in part, the President shall

13 transmit to the Board and the Congress the reasons for

14 that disapproval. The Board shall then transmit to the

15 Congress and the President, no later than 60 days after

16 the date of the submission of the original report to the

17 President, a revised list of recommendations.

18 ‘‘(D) If the President approves all of the revised rec19 ommendations of the Board transmitted to the President

20 under subparagraph (C), the President shall transmit a

21 copy of such revised recommendations to the Congress as

22 the President’s recommendations, together with a certifi23 cation of the President’s adoption of such recommenda24 tions.
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1 ‘‘(E) If the President disapproves the revised rec2 ommendations of the Board, in whole or in part, the Presi3 dent shall transmit to the Board and the Congress the

4 reasons for that disapproval, together with such revisions

5 to such recommendations as the President determines are

6 necessary to bring such recommendations within the

7 President’s approval. The President shall transmit a copy

8 of such recommendations, as so revised, to the Board and

9 the Congress as the President’s recommendations, to10 gether with a certification of the President’s adoption of

11 such recommendations.

12 ‘‘(3)(A) This paragraph is enacted by Congress—

13 ‘‘(i) as an exercise of the rulemaking power of

14 the Senate and the House of Representatives, re15 spectively, and as such it is deemed a part of the

16 rules of each House, respectively, but applicable only

17 with respect to the procedure to be followed in that

18 House in the case of a joint resolution described in

19 subparagraph (B), and it supersedes other rules only

20 to the extent that it is inconsistent with such rules;

21 and

22 ‘‘(ii) with full recognition of the constitutional

23 right of either House to change the rules (so far as

24 relating to the procedure of that House) at any time,
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1 in the same manner, and to the same extent as in

2 the case of any other rule of that House.

3 ‘‘(B) For purposes of this paragraph, the term ‘joint

4 resolution’ means only a joint resolution which is intro5 duced within the 10-day period beginning on the date on

6 which the President transmits the President’s rec7 ommendations, together with the President’s certification,

8 to the Congress under subparagraph (B), (D), or (E) of

9 paragraph (2), and—

10 ‘‘(i) which does not have a preamble;

11 ‘‘(ii) the matter after the resolving clause of

12 which is as follows: ‘That the Congress approves the

13 recommendations of the President as transmitted on

14 ll pursuant to section 709(a) of the Social Secu15 rity Act, as follows: llll’, the first blank space

16 being filled in with the appropriate date and the sec17 ond blank space being filled in with the statutory ad18 justments contained in the recommendations; and

19 ‘‘(iii) the title of which is as follows: ‘Joint reso20 lution approving the recommendations of the Presi21 dent regarding social security.’.

22 ‘‘(C) A joint resolution described in subparagraph

23 (B) that is introduced in the House of Representatives

24 shall be referred to the Committee on Ways and Means

25 of the House of Representatives. A joint resolution de-
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1 scribed in subparagraph (B) introduced in the Senate

2 shall be referred to the Committee on Finance of the Sen3 ate.

4 ‘‘(D) If the committee to which a joint resolution de5 scribed in subparagraph (B) is referred has not reported

6 such joint resolution (or an identical joint resolution) by

7 the end of the 20-day period beginning on the date on

8 which the President transmits the recommendation to the

9 Congress under paragraph (2), such committee shall be,

10 at the end of such period, discharged from further consid11 eration of such joint resolution, and such joint resolution

12 shall be placed on the appropriate calendar of the House

13 involved.

14 ‘‘(E)(i) On or after the third day after the date on

15 which the committee to which such a joint resolution is

16 referred has reported, or has been discharged (under sub17 paragraph (D)) from further consideration of, such a joint

18 resolution, it is in order (even though a previous motion

19 to the same effect has been disagreed to) for any Member

20 of the respective House to move to proceed to the consider21 ation of the joint resolution. A Member may make the mo22 tion only on the day after the calendar day on which the

23 Member announces to the House concerned the Member’s

24 intention to make the motion, except that, in the case of

25 the House of Representatives, the motion may be made
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1 without such prior announcement if the motion is made

2 by direction of the committee to which the joint resolution

3 was referred. All points of order against the joint resolu4 tion (and against consideration of the joint resolution) are

5 waived. The motion is highly privileged in the House of

6 Representatives and is privileged in the Senate and is not

7 debatable. The motion is not subject to amendment, or

8 to a motion to postpone, or to a motion to proceed to the

9 consideration of other business. A motion to reconsider the

10 vote by which the motion is agreed to or disagreed to shall

11 not be in order. If a motion to proceed to the consideration

12 of the joint resolution is agreed to, the respective House

13 shall immediately proceed to consideration of the joint res14 olution without intervening motion, order, or other busi15 ness, and the joint resolution shall remain the unfinished

16 business of the respective House until disposed of.

17 ‘‘(ii) Debate on the joint resolution, and on all debat18 able motions and appeals in connection therewith, shall be

19 limited to not more than 2 hours, which shall be divided

20 equally between those favoring and those opposing the

21 joint resolution. An amendment to the joint resolution is

22 not in order. A motion further to limit debate is in order

23 and not debatable. A motion to postpone, or a motion to

24 proceed to the consideration of other business, or a motion

25 to recommit the joint resolution is not in order. A motion
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1 to reconsider the vote by which the joint resolution is

2 agreed to or disagreed to is not in order.

3 ‘‘(iii) Immediately following the conclusion of the de4 bate on a joint resolution described in subparagraph (B)

5 and a single quorum call at the conclusion of the debate

6 if requested in accordance with the rules of the appro7 priate House, the vote on final passage of the joint resolu8 tion shall occur.

9 ‘‘(iv) Appeals from the decisions of the Chair relating

10 to the application of the rules of the Senate or the House

11 of Representatives, as the case may be, to the procedure

12 relating to a joint resolution described in subparagraph

13 (B) shall be decided without debate.

14 ‘‘(F)(i) If, before the passage by one House of a joint

15 resolution of that House described in subparagraph (B),

16 that House receives from the other House a joint resolu17 tion described in subparagraph (B), then the following

18 procedures shall apply:

19 ‘‘(I) The joint resolution of the other House

20 shall not be referred to a committee and may not be

21 considered in the House receiving it except in the

22 case of final passage as provided in subclause (II).

23 ‘‘(II) With respect to a joint resolution de24 scribed in subparagraph (B) of the House receiving

25 the joint resolution, the procedure in that House
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1 shall be the same as if no joint resolution had been

2 received from the other House, but the vote on final

3 passage shall be on the joint resolution of the other

4 House.

5 ‘‘(ii) Upon disposition of the joint resolution received

6 from the other House, it shall no longer be in order to

7 consider the joint resolution that originated in the receiv8 ing House.

9 ‘‘(b) If the Board of Trustees of the Federal Hospital

10 Insurance Trust Fund or the Federal Supplementary

11 Medical Insurance Trust Fund determines as any time

12 that the balance ratio of either such Trust Fund’’.

13 (b) CONFORMING AMENDMENTS.—

14 (1) Section 709(b) of the Social Security Act

15 (as amended by subsection (a) of this section) is

16 amended by striking ‘‘any such’’ and inserting ‘‘ei17 ther such’’.

18 (2) Section 709(c) of such Act (as redesignated

19 by subsection (a) of this section) is amended by in20 serting ‘‘or (b)’’ after ‘‘subsection (a)’’.

Æ