I

103D CONGRESS

2D SESSION H. R. 4275

To amend title II of the Social Security Act to assure that the social

security system remains viable for the baby boom generation and that

the level of social security taxation remains affordable for their children.

IN THE HOUSE OF REPRESENTATIVES

APRIL 21, 1994

Mr. PICKLE introduced the following bill; which was referred to the Committee

on Ways and Means

A BILL

To amend title II of the Social Security Act to assure that

the social security system remains viable for the baby

boom generation and that the level of social security

taxation remains affordable for their children.

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 AND TABLE OF CONTENTS.

4 This Act may be cited as the ‘‘Social Security Entitle5 ment Reform Amendments of 1994’’.

TABLE OF CONTENTS

Sec. 1. Short title and table of contents.

Sec. 2. Gradual increase in retirement age to age 70 by the year 2029.

Sec. 3. Reductions in benefits for early retirement.

Sec. 4. Repeal of further increases in delayed retirement credit.

Sec. 5. Permanently establishing age 65 as conversion age from entitlement to

disability benefits to entitlement to old-age retirement benefits.
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Sec. 6. Phased reduction in spousal benefits other than survivor’s benefits to

one-third of primary insurance amount.

Sec. 7. Coverage of State and local employees hired after 1999.

Sec. 8. Repeal of limitation on drop out years for disabled workers.

Sec. 9. Cost-of-living adjustments first payable in July and effective on biennial

basis unless annual adjustment would exceed 4 percent.

Sec. 10. Repeal of limitation on widow’s and widower’s insurance benefits by

reason of early retirement of the deceased spouse.

Sec. 11. Adjustment in reduction of widow’s and widower’s insurance benefits

upon attainment of age 85 after calendar year 2019.

Sec. 12. General increase in benefits for individuals attaining age 85 or more

years of age after calendar year 2019.

Sec. 13. Increase in surviving child’s insurance benefits.

Sec. 14. Gradual reduction in age necessary for eligibility for supplemental security income benefits on the basis of age.

1 SEC. 2. GRADUAL INCREASE IN RETIREMENT AGE TO AGE

2 70 BY THE YEAR 2029.

3 (a) IN GENERAL.—Section 216(l) of the Social Secu4 rity Act (42 U.S.C. 416(l)) is amended—

5 (1) by striking subparagraphs (B) through (E)

6 of paragraph (1) and inserting the following:

7 ‘‘(B) with respect to an individual who attains

8 early retirement age after December 31, 1999, and

9 before January 1, 2029, 65 years of age plus the

10 number of months in the age increase factor (as de11 termined under paragraph (3)) for the calendar year

12 in which such individual attains early retirement

13 age; and

14 ‘‘(C) with respect to an individual who attains

15 early retirement age after December 31, 2028, 70

16 years of age.’’;

17 and
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1 (2) by striking paragraph (3) and inserting the

2 following:

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

4 attains early retirement age in the 30-year period consist5 ing of calendar years 2000 through 2029 shall be equal

to 2 6 ⁄12 of the number of months in the period beginning

7 with January 2000 and ending with December of the year

8 in which the individual attains early retirement age.’’.

9 (b) EFFECTIVE DATE.—The amendments made by

10 this section shall apply with respect to benefits of individ11 uals attaining early retirement age (as defined in section

12 216(l)(2) of the Social Security Act) after 1999.

13 SEC. 3. REDUCTIONS IN BENEFITS FOR EARLY RETIRE14 MENT.

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

16 Security Act (42 U.S.C. 402(q)(1)) is amended to read

17 as follows:

18 ‘‘(q)(1) If the first month for which an individual is

19 entitled to an old-age, wife’s, husband’s, widow’s, or wid20 ower’s insurance benefit is a month before the month in

21 which such individual attains retirement age, the amount

22 of such benefit for such month and for any subsequent

23 month shall, subject to the succeeding paragraphs of this

24 subsection, be reduced by a percentage of such amount,

25 consisting of the sum of the primary reduction percentage
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1 for such benefit and (if any) the second, third, and fourth

2 reduction percentages for such benefit, determined as fol3 lows:

4 ‘‘(A) The primary reduction percentage for a

5 benefit is the product derived by multiplying—

6 ‘‘(i) the monthly reduction percentage for

7 such benefit for the primary reduction phase for

8 such benefit, by

9 ‘‘(ii) the number of months in such pri10 mary reduction phase.

11 ‘‘(B) The second reduction percentage for such

12 benefit is the product derived by multiplying—

13 ‘‘(i) the monthly reduction percentage for

14 such benefit for the second reduction phase for

15 such benefit, by

16 ‘‘(ii) the number of months in such second

17 reduction phase.

18 ‘‘(C) The third reduction percentage for such

19 benefit is the product derived by multiplying—

20 ‘‘(i) the monthly reduction percentage for

21 such benefit for the third reduction phase for

22 such benefit, by

23 ‘‘(ii) the number of months in such third

24 reduction phase.
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1 ‘‘(D) The fourth reduction percentage for such

2 benefit is the product derived by multiplying—

3 ‘‘(i) the monthly reduction percentage for

4 such benefit for the fourth reduction phase for

5 such benefit, by

6 ‘‘(ii) the number of months in such fourth

7 reduction phase.’’.

8 (b) REDUCTION PHASES AND REDUCTION PERCENT9 AGES FOR SUCH PHASES.—Section 202(q) of such Act

10 (42 U.S.C. 402(q)) is further amended—

11 (1) by striking paragraph (9);

12 (2) by redesignating paragraphs (6), (7), and

13 (8) as paragraphs (7), (8), and (9), respectively; and

14 (3) by inserting after paragraph (5) the follow15 ing new paragraph:

16 ‘‘(6)(A) For purposes of this subsection—

17 ‘‘(i) in the case of an old-age insurance bene18 fit—

19 ‘‘(I) the primary reduction phase consists

20 of the last 36 months of the reduction period

21 (determined under paragraph (7)), and the

22 monthly reduction percentage for such phase is

5 23 ⁄9 of 1 percent,

24 ‘‘(II) the second reduction phase consists

25 of the months in such reduction period, not ex-
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1 ceeding 12 in number, which precede the pri2 mary reduction phase, and the monthly reduction percentage for such phase is 5 3 ⁄12 of 1 per4 cent,

5 ‘‘(III) the third reduction phase consists of

6 the months in such reduction period, not ex7 ceeding 24 in number, which precede the second

8 reduction phase, and the monthly reduction percentage for such phase is 1 9 ⁄3 of 1 percent, and

10 ‘‘(IV) the fourth reduction phase consists

11 of the months in such reduction period which

12 precede the third reduction phase, and the

13 monthly reduction percentage for such phase is

7 14 ⁄24 of 1 percent,

15 ‘‘(ii) in the case of a wife’s or husband’s insur16 ance benefit—

17 ‘‘(I) the primary reduction phase consists

18 of the last 36 months in the reduction period

19 (determined under paragraph (7)), and the

20 monthly reduction percentage for such phase is

25 21 ⁄36 of 1 percent,

22 ‘‘(II) the second reduction phase consists

23 of the months in such reduction period, not ex24 ceeding 12 in number, which precede the pri25 mary reduction phase, and the monthly reduc-
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tion percentage for such phase is 5 1 ⁄12 of 1 per2 cent,

3 ‘‘(III) the third reduction phase consists of

4 the months in such reduction period, not ex5 ceeding 24 in number, which precede the second

6 reduction phase, and the monthly reduction percentage for such phase is 1 7 ⁄3 of 1 percent, and

8 ‘‘(IV) the fourth reduction phase consists

9 of the months in such reduction period which

10 precede the third reduction phase, and the

11 monthly reduction percentage for such phase is

7 12 ⁄24 of 1 percent, and

13 ‘‘(iii) in the case of a widow’s or widower’s in14 surance benefit—

15 ‘‘(I) the primary reduction phase consists

16 of the last 60 months in such reduction period

17 (determined under paragraph (7)), and the

18 monthly reduction percentage for such phase is

19 19 ⁄40 of 1 percent,

20 ‘‘(II) the second reduction phase consists

21 of the months in such reduction period, not ex22 ceeding 12 in number, which precede the pri23 mary reduction phase, and the monthly reduction percentage for such phase is 1 24 ⁄4 of 1 per25 cent,
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1 ‘‘(III) the third reduction phase consists of

2 the months in such reduction period, not ex3 ceeding 12 in number, which precede the second

4 reduction phase, and the monthly reduction percentage for such phase is 5 5 ⁄24 of 1 percent, and

6 ‘‘(IV) the fourth reduction phase consists

7 of the months in such reduction period which

8 precede the third reduction phase, and the

9 monthly reduction percentage for such phase is

1 10 ⁄6 of 1 percent.

11 ‘‘(B) Effective with any individual’s benefit (i) for the

12 month in which such individual attains age 62, and (ii)

13 for the month in which such individual attains retirement

14 age (as defined in section 216(l)) and for each month (if

15 earlier) in which such individual attains age 65, 66, 67,

16 68, or 69, if the number of months in the adjusted reduc17 tion period for such benefit (determined under paragraph

18 (8) as of the end of such month) is less than the number

19 of months in the reduction period (determined under para20 graph (7)), then each reference to the reduction period

21 in subparagraph (A) shall be deemed a reference to such

22 adjusted reduction period (as so determined).’’.

23 (c) TREATMENT OF WIDOW’S AND WIDOWER’S IN24 SURANCE BENEFITS BASED ON DISABILITY.—Section
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1 202(q)(3) of such Act (42 U.S.C. 402(q)(3)) is amended

2 by adding at the end the following new subparagraph:

3 ‘‘(F) In the case of any individual who is entitled to

4 a widow’s or widower’s insurance benefit for the month

5 in which such individual attains age 60 and such individ6 ual was entitled to a widow’s or widower’s insurance bene7 fit for a month within the 1-year period preceding the

8 month in which such individual attains age 60, the amount

9 of the reduction for early retirement applicable under this

10 subsection to such widow’s or widower’s insurance benefit

11 for a month ending after such individual attains age 60

12 shall not exceed the amount of the reduction which would

13 be determined under this subsection if such individual had

14 attained age 60 in such individual’s first month of entitle15 ment to a widow’s or widower’s insurance benefit (based

16 on the same wages and self-employment income).’’.

17 (d) TREATMENT OF OLD-AGE INSURANCE BENEFITS

18 AFTER CONVERSION FROM DISABILITY INSURANCE BEN19 EFITS.—Section 202(q)(3) of such Act (as amended by

20 subsection (c)) is further amended by adding at the end

21 the following new subparagraph:

22 ‘‘(G) In the case of any individual whose first month

23 of entitlement to an old-age insurance benefit is the month

24 in which such individual attains age 65 and who was enti25 tled to a disability insurance benefit for the preceding
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1 month, the amount of the reduction for early retirement

2 applicable under this subsection to such old-age insurance

3 benefit shall not exceed the amount of the reduction which

4 would be determined under this subsection if such individ5 ual had attained age 65 in such individual’s first month

6 of entitlement to such disability insurance benefit.’’.

7 (e) ADJUSTMENT TO MOTHER’S AND FATHER’S IN8 SURANCE BENEFITS.—

9 (1) IN GENERAL.—Section 202(g)(2) of such

10 Act (42 U.S.C. 402(g)(2)) is amended to read as fol11 lows:

12 ‘‘(2) Except as provided in paragraph (4) of this sub13 section, such mother’s or father’s insurance benefit for

14 each month shall be equal to the amount which would be

15 the amount of such individual’s widow’s or widower’s in16 surance benefit for such month, if such individual had be17 come entitled to such widow’s or widower’s insurance ben18 efit in such individual’s first month of entitlement to such

19 mother’s or father’s insurance benefit and had attained

20 age 60 in that month.’’.

21 (2) CONFORMING AMENDMENT.—Section

22 202(g)(1)(C) of such Act (42 U.S.C 402(g)(1)(C)) is

23 amended by striking ‘‘three-fourths of the primary

24 insurance amount of such individual’’ and inserting

25 ‘‘the amount which would be determined under para-
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1 graph (2) for such month upon entitlement under

2 this subsection for such month’’.

3 (f) CONFORMING AMENDMENTS.—

4 (1) Section 202(q)(4) of such Act (42 U.S.C.

5 402(q)(4)) is amended by striking ‘‘paragraph (7)’’

6 and inserting ‘‘paragraph (8)’’.

7 (2) Section 202(q)(8) of such Act (as redesig8 nated by subsection (b)(2)) is amended by striking

9 ‘‘paragraph (6)’’ and inserting ‘‘paragraph (7)’’.

10 (3) Section 202(q)(10) of such Act (42 U.S.C.

11 402(q)(10)) is amended by striking ‘‘paragraph (8)’’

12 and inserting ‘‘paragraph (9)’’.

13 (4) Section 202(s)(1) of such Act (42 U.S.C.

14 402(s)(1)) is amended by striking ‘‘(q)(7)’’ and in15 serting ‘‘(q)(8)’’.

16 (g) EFFECTIVE DATES.—

17 (1) The amendments made by subsections (a),

18 (b), (c), (d), and (f) shall apply with respect to bene19 fits of individuals attaining early retirement age (as

20 defined in section 216(l)(2) of the Social Security

21 Act) after 1999.

22 (2) The amendments made by subsection (e)

23 shall apply with respect to benefits for which individ24 uals first become eligible after December 1999. For

25 purposes of this paragraph, an individual shall be
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1 treated as ‘‘eligible’’ for a mother’s or father’s insur2 ance benefit under section 202(g) of the Social Secu3 rity Act if such individual meets all requirements for

4 entitlement to such benefit under such section (as

5 amended by subsection (c)) except the filing of an

6 application for such benefit.

7 SEC. 4. REPEAL OF FURTHER INCREASES IN DELAYED RE8 TIREMENT CREDIT.

9 Section 202(w)(6) of the Social Security Act (42

10 U.S.C. 402(w)(6)) is amended—

11 (1) in subparagraph (C), by striking ‘‘2005’’

12 and inserting ‘‘1993’’; and

(2) in subparagraph (D), by striking ‘‘2 13 ⁄3 of 1

percent’’ and inserting ‘‘3 14 ⁄8 of 1 percent’’, and by

15 striking ‘‘2004’’ and inserting ‘‘1992’’.

16 SEC. 5. PERMANENTLY ESTABLISHING AGE 65 AS CONVER17 SION AGE FROM ENTITLEMENT TO DISABIL18 ITY BENEFITS TO ENTITLEMENT TO OLD-AGE

19 RETIREMENT BENEFITS.

20 (a) SUBSTITUTION OF AGE 65 FOR RETIREMENT

21 AGE WITH RESPECT TO TERMINATION OF DISABILITY

22 INSURANCE BENEFITS.—Section 223(a)(1) of the Social

23 Security Act (42 U.S.C. 423(a)(1)) is amended, in sub24 paragraph (B) and in the matter following subparagraph
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1 (D), by striking ‘‘retirement age (as defined in section

2 216(l))’’ each place it appears and inserting ‘‘age 65’’.

3 (b) TRANSITION FROM ENTITLEMENT TO DISABIL4 ITY INSURANCE BENEFITS TO ENTITLEMENT TO OLD5 AGE INSURANCE BENEFITS AT AGE 65.—Section

6 202(a)(3) of such Act (42 U.S.C. 402(a)(3)) is amended

7 by striking ‘‘retirement age (as defined in section 216(l))’’

8 and inserting ‘‘age 65’’.

9 (c) DISABILITY INSURANCE BENEFIT LIMITED TO

10 OLD-AGE INSURANCE BENEFIT AMOUNT COMPUTED AS

11 IF MONTH OF ONSET OF DISABILITY WERE MONTH OF

12 ATTAINMENT OF AGE 65.—Section 223(a)(2) of such Act

13 (42 U.S.C. 423(a)(2)) is amended—

14 (1) by redesignating subparagraphs (A) and

15 (B) as clauses (i) and (ii), respectively;

16 (2) by striking ‘‘(2) Except’’ and inserting

17 ‘‘(2)(A) Except’’;

18 (3) by inserting ‘‘and subparagraph (B) of this

19 paragraph’’ after ‘‘section 215(b)(2)(A)(ii)’’;

20 (4) in the last sentence, by striking ‘‘subpara21 graph (A) or (B)’’ and inserting ‘‘clause (i) or (ii)’’;

22 and

23 (5) by adding at the end the following new sub24 paragraph:
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1 ‘‘(B) The amount determined under subparagraph

2 (A) shall not exceed the amount which would be such indi3 vidual’s old-age insurance benefit if—

4 ‘‘(i) such individual were entitled to an old-age

5 insurance benefit equal (without the application of

6 section 202(q) to such old-age insurance benefit) to

7 such individual’s disability insurance benefit as de8 termined under subparagraph (A), and

9 ‘‘(ii) section 202(q) were applied to such old10 age insurance benefit as if such individual had at11 tained age 65 in the first month, described in clause

12 (i) or (ii) of subparagraph (A), which is applicable

13 under subparagraph (A) in determining such individ14 ual’s benefit.’’.

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

16 this section shall apply to any disability insurance benefit

17 if the first month applicable under clause (i) or (ii) of sec18 tion 223(a)(2)(A) of the Social Security Act (as amended

19 by this section) in the case of such benefit occurs after

20 July 2003.
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1 SEC. 6. PHASED REDUCTION IN SPOUSAL BENEFITS OTHER

2 THAN SURVIVOR’S BENEFITS TO 33 PERCENT

3 OF PRIMARY INSURANCE AMOUNT.

4 (a) WIFE’S INSURANCE BENEFITS.—Section

5 202(b)(2) of the Social Security Act (42 U.S.C. 402(b)(2))

6 is amended to read as follows:

7 ‘‘(2)(A) Except as provided in subsection (q) and

8 paragraph (4) of this subsection, such wife’s insurance

9 benefit for each month shall be equal to the applicable per10 centage of the primary insurance amount of her husband

11 (or, in the case of a divorced wife, her former husband)

12 in connection with the calendar year in which such individ13 ual becomes eligible for such benefit, as specified in the

14 following table:

‘‘If the calendar year in

which the individual becomes eligible is:

The applicable percentage shall

be:

Before calendar year 2000 ............ 50 percent

Calendar year 2000 ....................... 49 percent

Calendar year 2001 ....................... 48 percent

Calendar year 2002 ....................... 47 percent

Calendar year 2003 ....................... 46 percent

Calendar year 2004 ....................... 45 percent

Calendar year 2005 ....................... 44 percent

Calendar year 2006 ....................... 43 percent

Calendar year 2007 ....................... 42 percent

Calendar year 2008 ....................... 41 percent

Calendar year 2009 ....................... 40 percent

Calendar year 2010 ....................... 39 percent

Calendar year 2011 ....................... 38 percent

Calendar year 2012 ....................... 37 percent

Calendar year 2013 ....................... 36 percent

Calendar year 2014 ....................... 35 percent

Calendar year 2015 ....................... 34 percent

After calendar year 2015 .............. 33 percent.’’.

15 ‘‘(B) For purposes of subparagraph (A)—
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1 ‘‘(i) an individual shall be treated as eligible for

2 a wife’s insurance benefit if such individual meets

3 the requirements of subparagraphs (B), (C), and

4 (D) of paragraph (1), and

5 ‘‘(ii) in determining when an individual becomes

6 eligible for a wife’s insurance benefit, any break in

7 eligibility of less than 12 consecutive months shall

8 not be taken into account.’’.

9 (b) HUSBAND’S INSURANCE BENEFITS.—Section

10 202(c)(3) of such Act (42 U.S.C. 402(c)(3)) is amended

11 to read as follows:

12 ‘‘(3)(A) Except as provided in subsection (q) and

13 paragraph (2) of this subsection, such husband’s insur14 ance benefit for each month shall be equal to the applica15 ble percentage of the primary insurance amount of his wife

16 (or, in the case of a divorced husband, his former wife)

17 in connection with the calendar year in which such individ18 ual becomes eligible for such benefit, as specified in the

19 following table:

‘‘If the calendar year inwhich

the individual becomes

eligible is:

The applicable percentage shall

be:

Before calendar year 2000 ............ 50 percent

Calendar year 2000 ....................... 49 percent

Calendar year 2001 ....................... 48 percent

Calendar year 2002 ....................... 47 percent

Calendar year 2003 ....................... 46 percent

Calendar year 2004 ....................... 45 percent

Calendar year 2005 ....................... 44 percent

Calendar year 2006 ....................... 43 percent

Calendar year 2007 ....................... 42 percent

Calendar year 2008 ....................... 41 percent

Calendar year 2009 ....................... 40 percent
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‘‘If the calendar year inwhich

the individual becomes

eligible is:

The applicable percentage shall

be:

Calendar year 2010 ....................... 39 percent

Calendar year 2011 ....................... 38 percent

Calendar year 2012 ....................... 37 percent

Calendar year 2013 ....................... 36 percent

Calendar year 2014 ....................... 35 percent

Calendar year 2015 ....................... 34 percent

After calendar year 2015 .............. 33 percent.’’.

1 ‘‘(B) For purposes of subparagraph (A)—

2 ‘‘(i) an individual shall be treated as eligible for

3 a husband’s insurance benefit if such individual

4 meets the requirements of subparagraphs (B), (C),

5 and (D) of paragraph (1), and

6 ‘‘(ii) in determining when an individual becomes

7 eligible for a husband’s insurance benefit, any break

8 in eligibility of less than 12 consecutive months shall

9 not be taken into account.’’.

10 SEC. 7. COVERAGE OF STATE AND LOCAL EMPLOYEES

11 HIRED AFTER 1999.

12 (a) AMENDMENTS TO THE SOCIAL SECURITY ACT.—

13 (1) IN GENERAL.—Paragraph (7) of section

14 210(a) of the Social Security Act (42 U.S.C.

15 410(a)(7)) is amended to read as follows:

16 ‘‘(7) Service described in subsection (r) (relat17 ing to excluded State or local government employ18 ment);’’.

19 (2) EXCLUDED STATE OR LOCAL GOVERNMENT

20 EMPLOYMENT.—
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1 (A) IN GENERAL.—Section 210 of such

2 Act (42 U.S.C. 410) is amended by adding at

3 the end the following new subsection:

4 ‘‘(r) EXCLUDED STATE OR LOCAL GOVERNMENT

5 EMPLOYMENT.—(1) IN GENERAL.—Service is described

6 in this subsection if such service is performed in the em7 ploy of a State, of any political subdivision thereof, or of

8 any instrumentality of any one or more of the foregoing

9 which is wholly owned thereby, and—

10 ‘‘(A)(i) such service would be excluded from the

11 term ‘employment’ for purposes of this title if sub12 sections (a)(7) and (h) as in effect in March 1994

13 had remained in effect, and (ii) the requirements of

14 paragraph (2) are met with respect to such service,

15 or

16 ‘‘(B) the requirements of paragraph (3) are met

17 with respect to such service.

18 ‘‘(2) EXCEPTION FOR CURRENT EMPLOYMENT

19 WHICH CONTINUES.—

20 ‘‘(A) IN GENERAL.—The requirements of this

21 paragraph are met with respect to service for any

22 employer if such service is performed by an individ23 ual who continuously performs service described in

24 paragraph (1)(A)(i) since December 31, 1999.
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1 ‘‘(B) ALLOWABLE BREAKS IN SERVICE.—For

2 purposes of this clause—

3 ‘‘(i) if an individual performing service de4 scribed in paragraph (1)(A)(i) returns to the

5 performance of such service after being sepa6 rated therefrom for a period of less than 366

7 consecutive days, regardless of whether the pe8 riod begins before, on, or after December 31,

9 1999, then such service shall be considered con10 tinuous, and

11 ‘‘(ii) if an individual performing service de12 scribed in paragraph (1)(A)(i) returns to the

13 performance of such service after performing

14 service as a member of a uniformed service (in15 cluding, for purposes of this clause, service in

16 the National Guard and temporary service in

17 the Coast Guard Reserve) and after exercising

18 restoration or reemployment rights as provided

19 under chapter 43 of title 38, United States

20 Code, then the service so performed as a mem21 ber of a uniformed service shall be considered

22 service described in paragraph (1)(A)(i).

23 ‘‘(C) TREATMENT OF MULTIPLE JURISDIC24 TIONS.—For purposes of subparagraph (A), under

25 regulations (consistent with regulations established
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1 under section 3121(t)(2)(C) of the Internal Revenue

2 Code of 1986)—

3 ‘‘(i) MULTIPLE AGENCIES AND INSTRU4 MENTALITIES.—All agencies and instrumental5 ities of a State (as defined in section 218(b))

6 and of the political subdivisions thereof shall be

7 treated as a single employer, and all agencies

8 and instrumentalities of the District of Colum9 bia shall be treated as a single employer.

10 ‘‘(ii) MULTIPLE STATES.—If an individual,

11 after separation from service described in para12 graph (1)(A)(I) for any State, commences serv13 ice described in paragraph (1)(A)(I) for any

14 other State and such service for such other

15 State does not consist of service covered under

16 an agreement entered into under section 218,

17 such commencement of such service for such

18 other State shall be treated as a return to the

19 performance of the service from which such sep20 aration occurred. For purposes of this clause,

21 the term ‘service’ for a State means service—

22 ‘‘(I) for such State (as defined in sec23 tion 218(b)),

24 ‘‘(II) for any political subdivision (as

25 so defined) of such State, or
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1 ‘‘(III) for any agency or instrumental2 ity of such State or political subdivision.

3 For purposes of subclauses (I) and (III), the

4 term ‘State’ includes the District of Columbia.

5 ‘‘(3) EXCEPTION FOR CERTAIN SERVICES.—

6 ‘‘(A) IN GENERAL.—The requirements of this

7 paragraph are met with respect to service if such

8 service is performed—

9 ‘‘(i) by an individual who is employed by a

10 State or political subdivision thereof to relieve

11 such individual from unemployment,

12 ‘‘(ii) in a hospital, home, or other institu13 tion by a patient or inmate thereof as an em14 ployee of a State or political subdivision thereof

15 or of the District of Columbia,

16 ‘‘(iii) by an individual, as an employee of

17 a State or political subdivision thereof or of the

18 District of Columbia, serving on a temporary

19 basis in case of fire, storm, snow, earthquake,

20 flood, or other similar emergency,

21 ‘‘(iv) by any individual as an employee in22 cluded under section 5351(2) of title 5, United

23 States Code (relating to certain interns, student

24 nurses, and other student employees of hos25 pitals of the District of Columbia Government),
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1 other than as a medical or dental intern or a

2 medical or dental resident in training,

3 ‘‘(v) by an election official or election

4 worker if the remuneration paid in a calendar

5 year for such service is less than $100, except

6 to the extent that service by such election offi7 cial or election worker is included in employ8 ment under an agreement under section 218, or

9 ‘‘(vi) by an employee in a position com10 pensated solely on a fee basis which is treated

11 pursuant to section 211(c)(2)(E) as a trade or

12 business for purposes of inclusion of such fees

13 in net earnings from self-employment.

14 ‘‘(B) DEFINITIONS.—As used in this para15 graph, the terms ‘State’ and ‘political subdivision’

16 have the meanings given those terms in section

17 218(b).’’.

18 (3) CONFORMING AMENDMENTS.—

19 (A) Subsection (k) of section 210 of such

20 Act (42 U.S.C. 410(k)) (relating to covered

21 transportation service) is repealed.

22 (B) Section 210(p) of such Act (42 U.S.C.

23 410(p)) is amended—

24 (i) in paragraph (2), by striking

25 ‘‘service is performed’’ and all that follows
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1 and inserting ‘‘service is service described

2 in subsection (r)(3)(A).’’; and

3 (ii) in paragraph (3)(A), by inserting

4 ‘‘under subsection (a)(7) as in effect in

5 March 1994 and applicable with respect to

6 service performed before January 1,

7 2000,’’ after ‘‘section’’.

8 (C) Section 218(c)(6) of such Act (42

9 U.S.C. 418(c)(6)) is amended—

10 (i) by striking subparagraph (C);

11 (ii) by redesignating subparagraphs

12 (D) and (E) as subparagraphs (C) and

13 (D), respectively; and

14 (iii) by striking subparagraph (F) and

15 inserting the following:

16 ‘‘(E) service which is included as employment

17 under section 210(a).’’

18 (b) AMENDMENTS TO THE INTERNAL REVENUE

19 CODE OF 1986.—

20 (1) IN GENERAL.—Paragraph (7) of section

21 3121(b) of the Internal Revenue Code of 1986 (re22 lating to employment) is amended to read as follows:

23 ‘‘(7) service described in subsection (t) (relating

24 to excluded State or local government employ25 ment);’’.
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1 (2) EXCLUDED STATE OR LOCAL GOVERNMENT

2 EMPLOYMENT.—Section 3121 of such Code is

3 amended by inserting after subsection (s) the follow4 ing new subsection:

5 ‘‘(t) EXCLUDED STATE OR LOCAL GOVERNMENT EM6 PLOYMENT.—

7 ‘‘(1) IN GENERAL.—Service is described in this

8 subsection if such service is performed in the employ

9 of a State, of any political subdivision thereof, or of

10 any instrumentality of any one or more of the fore11 going which is wholly owned thereby, and—

12 ‘‘(A)(i) such service would be excluded

13 from the term ‘employment’ for purposes of this

14 chapter if the provisions of subsections (b)(7)

15 and (j) as in effect in March 1994 had re16 mained in effect, and (ii) the requirements of

17 paragraph (2) are met with respect to such

18 service, or

19 ‘‘(B) the requirements of paragraph (3)

20 are met with respect to such service.

21 ‘‘(2) EXCEPTION FOR CURRENT EMPLOYMENT

22 WHICH CONTINUES.—

23 ‘‘(A) IN GENERAL.—The requirements of

24 this paragraph are met with respect to service

25 for any employer if such service is performed by
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1 an individual who continuously performs service

2 described in paragraph (1)(A)(i) since Decem3 ber 31, 1999.

4 ‘‘(B) ALLOWABLE BREAKS IN SERVICE.—

5 For purposes of this clause—

6 ‘‘(i) if an individual performing serv7 ice described in paragraph (1)(A)(i) re8 turns to the performance of such service

9 after being separated therefrom for a pe10 riod of less than 366 consecutive days, re11 gardless of whether the period begins be12 fore, on, or after December 31, 1999, then

13 such service shall be considered continu14 ous, and

15 ‘‘(ii) if an individual performing serv16 ice described in paragraph (1)(A)(i) re17 turns to the performance of such service

18 after performing service as a member of a

19 uniformed service (including, for purposes

20 of this clause, service in the National

21 Guard and temporary service in the Coast

22 Guard Reserve) and after exercising res23 toration or reemployment rights as pro24 vided under chapter 43 of title 38, United

25 States Code, then the service so performed
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1 as a member of a uniformed service shall

2 be considered service described in para3 graph (1)(A)(i).

4 ‘‘(C) TREATMENT OF MULTIPLE AGENCIES

5 AND INSTRUMENTALITIES.—For purposes of

6 subparagraph (A), under regulations:

7 ‘‘(i) MULTIPLE AGENCIES AND IN8 STRUMENTALITIES WITHIN STATES.—All

9 agencies and instrumentalities of a State

10 (as defined in section 218(b) of the Social

11 Security Act) and of the political subdivi12 sions thereof shall be treated as a single

13 employer, and all agencies and instrumen14 talities of the District of Columbia shall be

15 treated as a single employer.

16 ‘‘(ii) MULTIPLE STATES.—If an indi17 vidual, after separation from service de18 scribed in paragraph (1)(A)(I) for any

19 State, commences service described in

20 paragraph (1)(A)(I) for any other State

21 and such service for such other State does

22 not consist of service covered under an

23 agreement entered into under section 218

24 of the Social Security Act, such commence25 ment of such service for such other State
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1 shall be treated as a return to the perform2 ance of the service from which such sepa3 ration occurred. For purposes of this

4 clause, the term ‘service’ for a State means

5 service—

6 ‘‘(I) for such State (as defined in

7 section 218(b) of the Social Security

8 Act),

9 ‘‘(II) for any political subdivision

10 (as so defined) of such State, or

11 ‘‘(III) for any agency or instru12 mentality of such State or political

13 subdivision.

14 For purposes of subclauses (I) and (III),

15 the term ‘State’ includes the District of

16 Columbia.

17 ‘‘(3) EXCEPTION FOR CERTAIN SERVICES.—

18 ‘‘(A) IN GENERAL.—The requirements of

19 this paragraph are met with respect to service

20 if such service is performed—

21 ‘‘(i) by an individual who is employed

22 by a State or political subdivision thereof

23 to relieve such individual from unemploy24 ment,
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1 ‘‘(ii) in a hospital, home, or other in2 stitution by a patient or inmate thereof as

3 an employee of a State or political subdivi4 sion thereof or of the District of Columbia,

5 ‘‘(iii) by an individual, as an employee

6 of a State or political subdivision thereof

7 or of the District of Columbia, serving on

8 a temporary basis in case of fire, storm,

9 snow, earthquake, flood, or other similar

10 emergency,

11 ‘‘(iv) by any individual as an employee

12 included under section 5351(2) of title 5,

13 United States Code (relating to certain in14 terns, student nurses, and other student

15 employees of hospitals of the District of

16 Columbia Government), other than as a

17 medical or dental intern or a medical or

18 dental resident in training,

19 ‘‘(v) by an election official or election

20 worker if the remuneration paid in a cal21 endar year for such service is less than

22 $100, except to the extent that service by

23 such election official or election worker is

24 included in employment under an agree-
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1 ment under section 218 of the Social Secu2 rity Act, or

3 ‘‘(vi) by an employee in a position

4 compensated solely on a fee basis which is

5 treated pursuant to section 1402(c)(2)(E)

6 as a trade or business for purposes of in7 clusion of such fees in net earnings from

8 self-employment.

9 ‘‘(B) DEFINITIONS.—As used in this para10 graph, the terms ‘State’ and ‘political subdivi11 sion’ have the meanings given those terms in

12 section 218(b) of the Social Security Act.’’.

13 (3) CONFORMING AMENDMENTS.—

14 (A) Subsection (j) of such section 3121

15 (relating to covered transportation service) is

16 repealed.

17 (B) Paragraph (2) of section 3121(u) of

18 such Code (relating to application of hospital

19 insurance tax to Federal, State, and local em20 ployment) is amended—

21 (i) in subparagraph (B), by striking

22 ‘‘service is performed’’ in clause (ii) and all

23 that follows through the end of such sub24 paragraph and inserting ‘‘service is service

25 described in subsection (t)(3)(A).’’; and
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1 (ii) in subparagraph (C)(i), by insert2 ing ‘‘under subsection (b)(7) as in effect in

3 March 1994 and applicable with respect to

4 service performed before January 1,

5 2000,’’ after ‘‘chapter’’.

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

7 this section shall apply with respect to service performed

8 after December 31, 1999.

9 SEC. 8. REPEAL OF LIMITATION ON DROP OUT YEARS FOR

10 DISABLED WORKERS.

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

12 Security Act (42 U.S.C. 415(b)(2)(A)) is amended to read

13 as follows:

14 ‘‘(2)(A) The number of an individual’s benefit com15 putation years equals the number of elapsed years reduced

16 by 5 years, except that the number of an individual’s bene17 fit computation years shall in no case be less than two.’’.

18 (b) EFFECTIVE DATE.—The amendments made by

19 this section shall apply to any disability insurance benefit

20 if the first month applicable under clause (i) or (ii) of sec21 tion 223(a)(2)(A) of the Social Security Act (as amended

22 by section 5) in the case of such benefit occurs after July

23 2003.
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1 SEC. 9. COST-OF-LIVING ADJUSTMENTS FIRST PAYABLE IN

2 JULY AND EFFECTIVE ON BIENNIAL BASIS

3 UNLESS ANNUAL ADJUSTMENT WOULD EX4 CEED 4 PERCENT.

5 (a) ADJUSTMENTS PAYABLE IN JULY RATHER THAN

6 JANUARY.—

7 (1) IN GENERAL.—Section 215(i)(2) of the So8 cial Security Act (42 U.S.C. 415(i)(2)) is amend9 ed—

10 (A) in subparagraph (A)(ii), by striking

11 ‘‘December’’ and inserting ‘‘June’’;

12 (B) in subparagraph (A)(iii), by striking

13 ‘‘November’’ and inserting ‘‘May’’; and

14 (C) in subparagraph (B), by striking ‘‘No15 vember’’ each place it appears and inserting

16 ‘‘May’’.

17 (2) BASE QUARTER.—Section 215(i)(1)(A) of

18 such Act (42 U.S.C. 415(i)(1)(A)) is amended by

19 striking ‘‘September 30’’ and inserting ‘‘March 31’’,

20 and by striking ‘‘1982’’ and inserting ‘‘1998’’.

21 (3) CONFORMING AMENDMENTS.—

22 (A) Section 215(i)(5)(A) of such Act (42

23 U.S.C. 415(i)(5)(A)) is amended, in the matter

24 following clause (ii), by striking ‘‘December’’

25 and inserting ‘‘June’’.
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1 (B) Section 203(f)(8)(A) of such Act (42

2 U.S.C. 403(f)(8)(A)) is amended by striking

3 ‘‘December’’ and inserting ‘‘June’’.

4 (C) Section 230(a) of such Act (42 U.S.C.

5 430(a)) is amended by striking ‘‘December’’

6 and inserting ‘‘June’’.

7 (4) PRIOR APPLICABLE LAW.—

8 (A) IN GENERAL.—

9 (i) Section 215(i) of such Act as in ef10 fect in December 1978, and as applied in

11 certain cases under the provisions of such

12 Act as in effect after December 1978, is

13 amended by striking ‘‘December’’ in sub14 paragraph (A)(ii) and inserting ‘‘June’’,

15 and by striking ‘‘November’’ each place it

16 appears and inserting ‘‘May’’.

17 (ii) Section 215(i)(1)(A) of such Act

18 as in effect in December 1978, and as ap19 plied in certain cases after December

20 1978, is amended by striking ‘‘September

21 30’’ and inserting ‘‘March 31’’, and by

22 striking ‘‘1982’’ and inserting ‘‘1998’’.

23 (iii) Section 215(i)(4) of such Act (42

24 U.S.C. 415(i)(4)) is amended—
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1 (I) by striking ‘‘and by section

2 9001’’ and inserting ‘‘, by section

3 9001’’; and

4 (II) by inserting ‘‘and by section

5 7 of the Social Security Entitlement

6 Reform Amendments of 1994,’’ after

7 ‘‘1986,’’.

8 (B) MINIMUM BENEFITS.—Section 202(m)

9 of such Act (as it applies in certain cases by

10 reason of section 2 of Public Law 97–123) is

11 amended by striking ‘‘November’’ and inserting

12 ‘‘May’’.

13 (5) EFFECTIVE DATE.—

14 (A) IN GENERAL.—The amendments made

15 by this subsection shall apply with respect to in16 creases under section 215(i) of the Social Secu17 rity Act which take effect with months after

18 December 1998.

19 (B) TRANSITION RULE.—For purposes of

20 section 215(i) of the Social Security Act (or

21 section 215(i) of such Act as in effect in De22 cember 1978, and as applied in certain cases

23 under the provisions of such Act as in effect

24 after December 1978), notwithstanding any

25 provision to the contrary in such section, the
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1 ‘‘base quarter’’ (as defined in paragraph

2 (1)(A)(i) of such section as amended by para3 graph (2) or (4)) in the calendar year 1999

4 shall not be a ‘‘cost-of-living computation quar5 ter’’ within the meaning of such section.

6 (b) ADJUSTMENTS EFFECTIVE ON BIENNIAL BASIS

7 UNLESS ANNUAL ADJUSTMENT WOULD EXCEED 4 PER8 CENT.—

9 (1) IN GENERAL.—Section 215(i)(1)(B) of such

10 Act (42 U.S.C. 415(i)(1)(B)) is amended to read as

11 follows:

12 ‘‘(B) the term ‘cost-of-living computation quar13 ter’ means a base quarter, as defined in subpara14 graph (A)(i); except that there shall be no cost-of15 living computation quarter in any calendar year—

16 ‘‘(i) if the base quarter, as defined in sub17 paragraph (A)(i), in the prior calendar year was

18 a cost-of-living computation quarter, and the

19 applicable increase percentage (as determined

20 under subclause (I) or (II), as applicable, of

21 subparagraph (C)(i)) does not exceed 4 percent,

22 or

23 ‘‘(ii) if in the year prior to such year a law

24 has been enacted providing a general benefit in25 crease under this title or if in such prior year
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1 such a general benefit increase becomes effec2 tive;’’.

3 (2) RULES APPLICABLE IN CASES OF INITIAL

4 ELIGIBILITY.—

5 (A) INITIAL APPLICABILITY OF IN6 CREASES.—Section 215(i)(2)(A)(iii) of such Act

7 (42 U.S.C. 415(i)(2)(A)(iii)) is amended to

8 read as follows:

9 ‘‘(iii)(I) Except as otherwise provided in this clause,

10 in the case of an individual who becomes eligible for an

11 old-age or disability insurance benefit (or who dies prior

12 to becoming so eligible) in any year, the individual’s pri13 mary insurance amount (without regard to the time of en14 titlement to that benefit) shall be increased only by appli15 cable increases provided under clause (ii) in years subse16 quent to such year, and only with respect to benefits pay17 able for months after June of the year following such year.

18 ‘‘(II) Subclause (I) shall not apply with respect to

19 increases other than those provided under this subsection.

20 ‘‘(III) With respect to a primary insurance amount

21 determined under subsection (a)(1)(C)(i)(I) in the case of

22 an individual to whom that subsection (as in effect in De23 cember 1981) applied, subclause (I) shall apply subject to

24 the provisions of subsection (a)(1)(C)(i) and clauses (iv)

25 and (v) of this subparagraph (as then in effect).’’.
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1 (B) SPECIAL RULE FOR DETERMINING

2 CERTAIN INITIAL INCREASES.—Section

3 215(i)(1)(C) of such Act (42 U.S.C.

4 415(i)(1)(C)) is amended—

5 (i) by redesignating clauses (i) and

6 (ii) as subclauses (I) and (II), respectively;

7 (ii) by inserting ‘‘(i) except as pro8 vided in clause (ii), ’’ after ‘‘(C)’’;

9 (iii) by inserting ‘‘and’’ after ‘‘lower;’’

10 at the end of subclause (II) (as redesig11 nated); and

12 (iv) by adding at the end the following

13 new clause:

14 ‘‘(ii) in the case of the first year in which there

15 occurs (in accordance with paragraph (2)(A)(iii)) an

16 increase under this subsection in the amounts re17 ferred to in subclauses (II) and (III) of paragraph

18 (2)(A)(ii) with respect to any primary insurance

19 amount, if such first year is preceded by a year in

20 which no cost-of-living computation quarter occurs

21 under this subsection, for purposes of deriving under

22 this subsection the increase in such first year in

23 such amounts, the term ‘applicable increase percent24 age’ means the lesser of—
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1 ‘‘(I) the applicable increase percentage as

2 defined in clause (i), or

3 ‘‘(II) the percentage (rounded to the near4 est one-tenth of percent) by which the

5 Consumer Price Index for the first calendar

6 quarter of such first year (as prepared by the

7 Department of Labor) exceeds such index for

8 the first calendar quarter for the preceding cal9 endar year;’’.

10 (C) CONFORMING AMENDMENTS.—

11 (i) Section 215(i)(2)(D) of such Act

12 (42 U.S.C. 415(i)(2)(D)) is amended by

13 striking ‘‘a benefit increase is resultantly

14 required and the percentage thereof’’ and

15 inserting ‘‘benefit increases are resultantly

16 required and the percentages thereof’’.

17 (ii) Section 215(i)(5)(A) of such Act

18 (42 U.S.C. 415(i)(5)(A)) is amended—

19 (I) in clause (i), by striking

20 ‘‘under clause (ii) of paragraph (1)(C)

21 rather than under clause (i) of such

22 paragraph’’ and inserting ‘‘under

23 paragraph (1)(C) by applying

24 subclause (II) of paragraph (1)(C)(i)
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1 rather than subclause (I) thereof’’;

2 and

3 (II) in the matter following

4 clause (ii), by inserting ‘‘with respect

5 to which the ‘applicable increase per6 centage’ was determined as described

7 in clause (i)’’ after ‘‘paragraph

8 (2)(A)(ii)’’.

9 (3) CONTINUED ANNUAL ADJUSTMENT OF

10 EARNINGS TEST EXEMPT AMOUNTS AND CONTRIBU11 TION AND BENEFIT BASE.—

12 (A) EXEMPT AMOUNT UNDER EARNINGS

13 TEST.—Section 203(f)(8)(A) of such Act (42

14 U.S.C. 403(f)(8)(A)) is amended—

15 (i) by striking ‘‘Whenever’’ and all

16 that follows through ‘‘in which such quar17 ter occurs’’ and inserting ‘‘The Secretary

18 shall determine and publish in the Federal

19 Register on or before November 1 of each

20 calendar year’’;

21 (ii) by striking ‘‘the calendar year

22 after the calendar year in which such bene23 fit increase is effective’’ and inserting ‘‘the

24 subsequent calendar year’’; and
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1 (iii) by striking ‘‘the calendar year

2 after the calendar year in which the benefit

3 increase is effective’’ and inserting ‘‘such

4 subsequent calendar year’’.

5 (B) CONTRIBUTION AND BENEFIT BASE.—

6 (i) IN GENERAL.—Section 230(a) of

7 such Act (42 U.S.C. 430(a)) is amended—

8 (I) by striking ‘‘Whenever’’ and

9 all that follows through ‘‘in which

10 such quarter occurs’’ and inserting

11 ‘‘The Secretary shall determine and

12 publish in the Federal Register on or

13 before November 1 of each calendar

14 year’’; and

15 (II) by striking ‘‘the calendar

16 year in which such quarter occurs’’

17 and inserting ‘‘such calendar year’’.

18 (ii) PRIOR APPLICABLE LAW.—Section

19 230(d) of such Act (42 U.S.C. 430(d)) is

20 amended by inserting after ‘‘except that,’’

21 the following: ‘‘for purposes of subsection

22 (a) of such section 230 as so in effect, the

23 Secretary shall make the determination

24 and publication required thereunder on or
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1 before November 1 of each calendar year,

2 and that,’’.

3 (4) AMENDMENT RELATING TO PRIOR APPLICA4 BLE LAW GOVERNING COST-OF-LIVING INCREASES.—

5 Section 215(i)(4) of such Act (42 U.S.C. 415(i)(4))

6 is amended by adding at the end the following new

7 sentence: ‘‘The Secretary shall provide by regulation

8 for the continued application of this subsection as in

9 effect in December 1978 as provided by the preced10 ing provisions of this paragraph and the amend11 ments referred to therein. Such regulations shall

12 provide for the application of the amendments to the

13 provisions of this subsection made by section 7 of

14 the Social Security Entitlement Reform Amend15 ments of 1994 so as to have the same effect on the

16 corresponding provisions of this subsection as in ef17 fect in December 1978 and applicable in accordance

18 with this paragraph.’’.

19 (5) EFFECTIVE DATE.—The amendments made

20 by this subsection shall apply with respect to in21 creases under section 215(i) of the Social Security

22 Act which take effect with the month of June of

23 years after 2000.
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1 SEC. 10. REPEAL OF LIMITATION ON WIDOW’S AND WIDOW2 ER’S INSURANCE BENEFITS BY REASON OF

3 EARLY RETIREMENT OF THE DECEASED

4 SPOUSE.

5 (a) WIDOW’S INSURANCE BENEFITS.—

6 (1) IN GENERAL.—Section 202(e)(2)(D) of the

7 Social Security Act (42 U.S.C. 402(e)(2)(D)) is re8 pealed.

9 (2) CONFORMING AMENDMENTS.—Section

10 202(e) of such Act is further amended—

11 (A) in paragraph (2)(A), by striking ‘‘sub12 section (q), paragraph (7) of this subsection,

13 and subparagraph (D) of this paragraph,’’ and

14 inserting ‘‘subsection (q) and paragraph (7) of

15 this subsection,’’; and

16 (B) in paragraph (7)(A), by striking ‘‘sub17 sections (q) and (k), paragraph (2)(D), and

18 paragraph (3)’’ and inserting ‘‘subsections (q)

19 and (k) and paragraph (3)’’.

20 (b) WIDOWER’S INSURANCE BENEFITS.—

21 (1) IN GENERAL.—Section 202(f)(3)(D) of such

22 Act (42 U.S.C. 402(f)(3)(D)) is repealed.

23 (2) CONFORMING AMENDMENTS.—Section

24 202(f) of such Act is further amended—

25 (A) in paragraph (2)(A), by striking ‘‘sub26 sections (q) and (k), paragraph (3)(D), and
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1 paragraph (4)’’ and inserting ‘‘subsections (q)

2 and (k) and paragraph (4)’’; and

3 (B) in paragraph (3)(A), by striking ‘‘sub4 section (q), paragraph (2) of this subsection,

5 and subparagraph (D) of this paragraph,’’ and

6 inserting ‘‘subsection (q) and paragraph (2) of

7 this subsection,’’.

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

9 this section shall apply with respect to benefits of individ10 uals attaining early retirement age (as defined in section

11 216(l)(2) of the Social Security Act) after 1999.

12 SEC. 11. ADJUSTMENT IN REDUCTION OF WIDOW’S AND

13 WIDOWER’S INSURANCE BENEFITS UPON AT14 TAINMENT OF AGE 85 AFTER CALENDAR

15 YEAR 2019.

16 Section 202(q) of the Social Security Act (42 U.S.C.

17 402(q)) is amended by adding at the end the following

18 new paragraph:

19 ‘‘(12) In the case of any individual’s widow’s or wid20 ower’s insurance benefit for any month in or after a year

21 specified in the following table, if such individual has at22 tained 85 years of age as of the end of such month, the

23 percentage specified in such table in connection with such

24 year shall be applied in paragraph (1) in lieu of the sum

25 of reduction percentages specified in paragraph (1):
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‘‘If the year is: The specified percentage shall

be:

After 2019 and before 2022 .......... 5⁄12 of 1 percent

After 2021 and before 2024 .......... 1⁄3 of 1 percent

After 2023 and before 2026 .......... 1⁄4 of 1 percent

After 2025 and before 2028 .......... 1⁄6 of 1 percent

After 2027 ..................................... 1⁄12 of 1 percent.’’.

1 SEC. 12. GENERAL INCREASE IN BENEFITS FOR INDIVID2 UALS ATTAINING AGE 85 OR MORE YEARS OF

3 AGE AFTER CALENDAR YEAR 2019.

4 (a) IN GENERAL.—Section 202 of the Social Security

5 Act (42 U.S.C. 402) is amended by adding at the end the

6 following new subsection:

7 (y) ‘‘GENERAL BENEFIT INCREASE FOR BENE8 FICIARIES OVER 85 YEARS OF AGE.—(1) The amount of

9 a monthly insurance benefit under this section or section

10 223 payable to an individual for any month ending after

11 such individual attains 85 or more years of age after 2019

12 shall be the amount of such benefit as determined without

13 regard to this subsection, increased by the applicable per14 centage increase specified in the following table:

‘‘If the individual attains 85

or more years of age in:

The applicable percentage increase under this subsection in such benefit for

each month in such year

shall be:

2020 ............................................... 1 percent

2021 ............................................... 2 percent

2022 ............................................... 3 percent

2023 ............................................... 4 percent

2024 or a later year ...................... 5 percent.’’.

15 ‘‘(2) This subsection shall be applied after any reduc16 tion under section 203(a) and any increase under sub17 section (w).’’.
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1 (b) ROUNDING.—Section 215(g) of such Act (42

2 U.S.C. 415(g)) is amended—

3 (1) by striking ‘‘and after’’ and inserting

4 ‘‘after’’; and

5 (2) by inserting ‘‘, and after any increase

6 under section 202(y)’’ after ‘‘section 1840(a)(1)’’.

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

8 this section shall apply with respect to benefits for months

9 after December 2019.

10 SEC. 13. INCREASE IN SURVIVING CHILD’S INSURANCE

11 BENEFITS.

12 Section 202(d)(2) of the Social Security Act (42

13 U.S.C. 402(d)(2)) is amended—

14 (1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and

15 (2) by striking the last sentence and inserting

16 at the end the following new subparagraph:

17 ‘‘(B) Such child’s insurance benefit for each month

18 shall, if the individual on the basis of whose wages and

19 self-employment income the child is entitled to such bene20 fit has died in or prior to such month, be equal to the

21 applicable percentage of the primary insurance amount of

22 such individual in connection with such child’s first month

23 of entitlement, as set forth in the following table:

‘‘If the first month of entitlement occurs:The applicable percentage of

the primary insurance

amount is:

Before 2000 ................................... 75 percent

After 1999 and before 2010 .......... 80 percent
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‘‘If the first month of entitlement occurs:The applicable percentage of

the primary insurance

amount is:

After 2009 and before 2025 .......... 85 percent

After 2024 ..................................... 90 percent.’’.

1 SEC. 14. GRADUAL REDUCTION IN AGE NECESSARY FOR

2 ELIGIBILITY FOR SUPPLEMENTAL SECURITY

3 INCOME BENEFITS ON THE BASIS OF AGE.

4 (a) IN GENERAL.—Section 1614(a)(1)(A) of the So5 cial Security Act (42 U.S.C. 1382c(a)(1)(A)) is amended

6 to read as follows:

7 ‘‘(A)(i) as of the end of a year specified in the

8 following table, attains the age specified in such

9 table in connection with such year:

‘‘If the year is: The specified age is:

Before 2000 ................................... 65 years

2000 ............................................... 64 years, 9 months

2001 ............................................... 64 years, 6 months

2002 ............................................... 64 years, 3 months

2003 ............................................... 64 years

2004 ............................................... 63 years, 9 months

2005 ............................................... 63 years, 6 months

2006 ............................................... 63 years, 3 months

2007 ............................................... 63 years

2008 ............................................... 62 years, 9 months

2009 ............................................... 62 years, 6 months

2010 ............................................... 62 years, 3 months

After 2010 ..................................... 62 years

10 ‘‘(ii) is blind (as determined under paragraph

11 (2)), or

12 ‘‘(iii) is disabled (as determined under para13 graph (3)), and’’.

14 (b) CONFORMING AMENDMENTS.—

15 (1) Section 1601 of such Act, as in effect pur16 suant to the amendment made by section 301 of the
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1 Social Security Amendments of 1972, (42 U.S.C.

2 1381) is amended by striking ‘‘have attained age 65

3 or are blind’’ and inserting ‘‘are aged, blind,’’.

4 (2) Section 1612(b)(4) of such Act (42 U.S.C.

5 1382a(b)(4)) is amended—

6 (A) in each of subparagraphs (A) and

7 (B)—

8 (i) by striking ‘‘not attained age 65’’

9 and inserting ‘‘not, as of the end of a year

10 specified in the table set forth in section

11 1614(a)(1)(A)(i), attained the age specified

12 in such table in connection with such

13 year’’; and

14 (ii) by striking ‘‘he attained age 65’’

15 and inserting ‘‘such individual attained

16 such age’’; and

17 (B) in subparagraph (C), by striking ‘‘at18 tained age 65’’ and inserting ‘‘, as of the end

19 of a year specified in the table set forth in sec20 tion 1614(a)(1)(A)(i), attained the age specified

21 in such table in connection with such year’’.

22 (3) Section 1615(a)(1) of such Act (42 U.S.C.

23 1382d(a)(1)) is amended by striking ‘‘not attained

24 age 65’’ and inserting ‘‘not, as of the end of a year

25 specified in the table set forth in section
47

•HR 4275 IH

1 1614(a)(1)(A)(i), attained the age specified in such

2 table in connection with such year’’.

3 (4) Section 1620(a)(2) of such Act (42 U.S.C.

4 1382i(a)(2)) is amended by striking ‘‘under age 65’’

5 and inserting ‘‘, as of the end of a year specified in

6 the table set forth in section 1614(a)(1)(A)(i), have

7 not attained the age specified in such table in con8 nection with such year’’.

Æ

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