Calendar No. 282

104TH CONGRESS

1ST SESSION S. 1470

A BILL

To amend title II of the Social Security Act to proand for other purposes. for individuals who have attained retirement age, earnings under the social security earnings limit vide for increases in the amounts of allowable

DECEMBER 15, 1995

Reported with an amendment
II

Calendar No. 282

104TH CONGRESS

1ST SESSION S. 1470

To amend title II of the Social Security Act to provide for increases in

the amounts of allowable earnings under the social security earnings

limit for individuals who have attained retirement age, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

DECEMBER 12, 1995

Mr. MCCAIN (for himself, Mr. ROTH, Mr. DOLE, Mr. BIDEN, Mr. WARNER,

and Mr. STEVENS) introduced the following bill; which was read twice

and referred to the Committee on Finance

DECEMBER 15, 1995

Reported by Mr. ROTH, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To amend title II of the Social Security Act to provide

for increases in the amounts of allowable earnings under

the social security earnings limit for individuals who

have attained retirement age, 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,
2

•S 1470 RS

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Senior Citizens’ Free3 dom to Work Act of 1995’’.

4 SEC. 2. INCREASES IN MONTHLY EXEMPT AMOUNT FOR

5 PURPOSES OF THE SOCIAL SECURITY EARN6 INGS LIMIT.

7 (a) INCREASE IN MONTHLY EXEMPT AMOUNT FOR

8 INDIVIDUALS WHO HAVE ATTAINED RETIREMENT

9 AGE.—Section 203(f)(8)(D) of the Social Security Act (42

10 U.S.C. 403(f)(8)(D)) is amended to read as follows:

11 ‘‘(D) Notwithstanding any other provision of

12 this subsection, the exempt amount which is applica13 ble to an individual who has attained retirement age

14 (as defined in section 216(l)) before the close of the

15 taxable year involved shall be—

16 ‘‘(i) for each month of any taxable year

17 ending after 1995 and before 1997,

$1,166.662 18 ⁄3,

19 ‘‘(ii) for each month of any taxable year

20 ending after 1996 and before 1998, $1,250.00,

21 ‘‘(iii) for each month of any taxable year

22 ending after 1997 and before 1999,

$1,333.331 23 ⁄3,

24 ‘‘(iv) for each month of any taxable year

25 ending after 1998 and before 2000,

$1,416.662 26 ⁄3,
3

•S 1470 RS

1 ‘‘(v) for each month of any taxable year

2 ending after 1999 and before 2001, $1,500.00,

3 ‘‘(vi) for each month of any taxable year

4 ending after 2000 and before 2002,

$2,083.331 5 ⁄3, and

6 ‘‘(vii) for each month of any taxable year

7 ending after 2001 and before 2003,

8 $2,500.00.’’.

9 (b) CONFORMING AMENDMENTS.—

10 (1) Section 203(f)(8)(B)(ii) of such Act (42

11 U.S.C. 403(f)(8)(B)(ii)) is amended—

12 (A) by striking ‘‘the taxable year ending

13 after 1993 and before 1995’’ and inserting ‘‘the

14 taxable year ending after 2001 and before 2003

15 (with respect to individuals described in sub16 paragraph (D)) or the taxable year ending after

17 1993 and before 1995 (with respect to other in18 dividuals)’’; and

19 (B) in subclause (II), by striking ‘‘for

20 1992’’ and inserting ‘‘for 2000 (with respect to

21 individuals described in subparagraph (D)) or

22 1992 (with respect to other individuals)’’.

23 (2) The second sentence of section 223(d)(4)(A)

24 of such Act (42 U.S.C. 423(d)(4)(A)) is amended by

25 striking ‘‘the exempt amount under section 203(f)(8)
4

•S 1470 RS

1 which is applicable to individuals described in sub2 paragraph (D) thereof’’ and inserting the following:

3 ‘‘an amount equal to the exempt amount which

4 would be applicable under section 203(f)(8), to indi5 viduals described in subparagraph (D) thereof, if

6 section 2 of the Senior Citizens’ Right to Work Act

7 of 1995 had not been enacted’’.

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

9 this section shall apply with respect to taxable years end10 ing after 1995.

11 SEC. 3. DENIAL OF DISABILITY BENEFITS TO DRUG AD12 DICTS AND ALCOHOLICS.

13 (a) AMENDMENTS RELATING TO TITLE II DISABIL14 ITY BENEFITS.—

15 (1) IN GENERAL.—Section 223(d)(2) of the So16 cial Security Act (42 U.S.C. 423(d)(2)) is amended

17 by adding at the end the following:

18 ‘‘(C) An individual shall not be considered to be

19 disabled for purposes of this title if alcoholism or

20 drug addiction would (but for this subparagraph) be

21 a contributing factor material to the Commissioner’s

22 determination that the individual is disabled.’’.

23 (2) REPRESENTATIVE PAYEE REQUIRE24 MENTS.—
5

•S 1470 RS

1 (A) Section 205(j)(1)(B) of such Act (42

2 U.S.C. 405(j)(1)(B)) is amended to read as fol3 lows:

4 ‘‘(B) In the case of an individual entitled to benefits

5 based on disability, the payment of such benefits shall be

6 made to a representative payee if the Commissioner of So7 cial Security determines that such payment would serve

8 the interest of the individual because the individual also

9 has an alcoholism or drug addiction condition (as deter10 mined by the Commissioner) that prevents the individual

11 from managing such benefits.’’.

12 (B) Section 205(j)(2)(C)(v) of such Act

13 (42 U.S.C. 405(j)(2)(C)(v)) is amended by

14 striking ‘‘entitled to benefits’’ and all that fol15 lows through ‘‘under a disability’’ and inserting

16 ‘‘described in paragraph (1)(B)’’.

17 (C) Section 205(j)(2)(D)(ii)(II) of such

18 Act (42 U.S.C. 405(j)(2)(D)(ii)(II)) is amended

19 by striking all that follows ‘‘15 years, or’’ and

20 inserting ‘‘described in paragraph (1)(B).’’.

21 (D) Section 205(j)(4)(A)(i)(II) (42 U.S.C.

22 405(j)(4)(A)(ii)(II)) is amended by striking

23 ‘‘entitled to benefits’’ and all that follows

24 through ‘‘under a disability’’ and inserting ‘‘de25 scribed in paragraph (1)(B)’’.
6

•S 1470 RS

1 (3) TREATMENT REFERRALS FOR INDIVIDUALS

2 WITH AN ALCOHOLISM OR DRUG ADDICTION CONDI3 TION.—Section 222 of such Act (42 U.S.C. 422) is

4 amended by adding at the end the following new

5 subsection:

6 ‘‘Treatment Referrals for Individuals with an Alcoholism

7 or Drug Addiction Condition

8 ‘‘(e) In the case of any individual whose benefits

9 under this title are paid to a representative payee pursu10 ant to section 205(j)(1)(B), the Commissioner of Social

11 Security shall refer such individual to the appropriate

12 State agency administering the State plan for substance

13 abuse treatment services approved under subpart II of

14 part B of title XIX of the Public Health Service Act (42

15 U.S.C. 300x–21 et seq.).’’.

16 (4) CONFORMING AMENDMENT.—Subsection (c)

17 of section 225 of such Act (42 U.S.C. 425(c)) is re18 pealed.

19 (5) EFFECTIVE DATES.—

20 (A) The amendments made by paragraphs

21 (1) and (4) shall apply to any individual who

22 applies for, or whose claim is adjudicated with

23 respect to, benefits under title II of the Social

24 Security Act based on disability on or after the

25 date of the enactment of this Act, and, in the
7

•S 1470 RS

1 case of any individual who has applied for, and

2 whose claim has been adjudicated with respect

3 to, such benefits before such date of enactment,

4 such amendments shall apply only with respect

5 to such benefits for months beginning on or

6 after January 1, 1997.

7 (B) The amendments made by paragraphs

8 (2) and (3) shall apply with respect to benefits

9 for which applications are filed on or after the

10 date of the enactment of this Act.

11 (C) If an individual who is entitled to

12 monthly insurance benefits under title II of the

13 Social Security Act based on disability for the

14 month in which this Act is enacted and whose

15 entitlement to such benefits would terminate by

16 reason of the amendments made by this sub17 section reapplies for benefits under title II of

18 such Act (as amended by this Act) based on

19 disability within 120 days after the date of the

20 enactment of this Act, the Commissioner of So21 cial Security shall, not later than January 1,

22 1997, complete the entitlement redetermination

23 with respect to such individual pursuant to the

24 procedures of such title.

25 (b) AMENDMENTS RELATING TO SSI BENEFITS.—
8

•S 1470 RS

1 (1) IN GENERAL.—Section 1614(a)(3) of the

2 Social Security Act (42 U.S.C. 1382c(a)(3)) is

3 amended by adding at the end the following:

4 ‘‘(I) Notwithstanding subparagraph (A), an individ5 ual shall not be considered to be disabled for purposes of

6 this title if alcoholism or drug addiction would (but for

7 this subparagraph) be a contributing factor material to

8 the Commissioner’s determination that the individual is

9 disabled.’’.

10 (2) REPRESENTATIVE PAYEE REQUIRE11 MENTS.—

12 (A) Section 1631(a)(2)(A)(ii)(II) of such

13 Act (42 U.S.C. 1383(a)(2)(A)(ii)(II)) is amend14 ed to read as follows:

15 ‘‘(II) In the case of an individual eligible for benefits

16 under this title by reason of disability, the payment of

17 such benefits shall be made to a representative payee if

18 the Commissioner of Social Security determines that such

19 payment would serve the interest of the individual because

20 the individual also has an alcoholism or drug addiction

21 condition (as determined by the Commissioner) that pre22 vents the individual from managing such benefits.’’.

23 (B) Section 1631(a)(2)(B)(vii) of such Act

24 (42 U.S.C. 1383(a)(2)(B)(vii)) is amended by

25 striking ‘‘eligible for benefits’’ and all that fol-
9

•S 1470 RS

1 lows through ‘‘is disabled’’ and inserting ‘‘de2 scribed in subparagraph (A)(ii)(II)’’.

3 (C) Section 1631(a)(2)(B)(ix)(II) of such

4 Act (42 U.S.C. 1383(a)(2)(B)(ix)(II)) is

5 amended by striking all that follows ‘‘15 years,

6 or’’ and inserting ‘‘described in subparagraph

7 (A)(ii)(II).’’.

8 (D) Section 1631(a)(2)(D)(i)(II) of such

9 Act (42 U.S.C. 1383(a)(2)(D)(i)(II)) is amend10 ed by striking ‘‘eligible for benefits’’ and all

11 that follows through ‘‘is disabled’’ and inserting

12 ‘‘described in subparagraph (A)(ii)(II)’’.

13 (3) TREATMENT SERVICES FOR INDIVIDUALS

14 WITH A SUBSTANCE ABUSE CONDITION.—Title XVI

15 of such Act (42 U.S.C. 1381 et seq.) is amended by

16 adding at the end the following new section:

17 ‘‘TREATMENT SERVICES FOR INDIVIDUALS WITH A

18 SUBSTANCE ABUSE CONDITION

19 ‘‘SEC. 1636. In the case of any individual whose bene20 fits under this title are paid to a representative payee pur21 suant to section 1631(a)(2)(A)(ii)(II), the Commissioner

22 of Social Security shall refer such individual to the appro23 priate State agency administering the State plan for sub24 stance abuse treatment services approved under subpart

25 II of part B of title XIX of the Public Health Service Act

26 (42 U.S.C. 300x–21 et seq.).’’.
10

•S 1470 RS

1 (4) CONFORMING AMENDMENTS.—

2 (A) Section 1611(e) of such Act (42

3 U.S.C. 1382(e)) is amended by striking para4 graph (3).

5 (B) Section 1634 of such Act (42 U.S.C.

6 1383c) is amended by striking subsection (e).

7 (5) EFFECTIVE DATES.—

8 (A) The amendments made by paragraphs

9 (1) and (4) shall apply to any individual who

10 applies for, or whose claim is adjudicated with

11 respect to, supplemental security income bene12 fits under title XVI of the Social Security Act

13 based on disability on or after the date of the

14 enactment of this Act, and, in the case of any

15 individual who has applied for, and whose claim

16 has been adjudicated with respect to, such ben17 efits before such date of enactment, such

18 amendments shall apply only with respect to

19 such benefits for months beginning on or after

20 January 1, 1997.

21 (B) The amendments made by paragraphs

22 (2) and (3) shall apply with respect to supple23 mental security income benefits under title XVI

24 of the Social Security Act for which applica-
11

•S 1470 RS

1 tions are filed on or after the date of the enact2 ment of this Act.

3 (C) If an individual who is eligible for sup4 plemental security income benefits under title

5 XVI of the Social Security Act for the month

6 in which this Act is enacted and whose eligi7 bility for such benefits would terminate by rea8 son of the amendments made by this subsection

9 reapplies for supplemental security income ben10 efits under title XVI of such Act (as amended

11 by this Act) within 120 days after the date of

12 the enactment of this Act, the Commissioner of

13 Social Security shall, not later than January 1,

14 1997, complete the eligibility redetermination

15 with respect to such individual pursuant to the

16 procedures of such title.

17 (D) For purposes of this paragraph, the

18 phrase ‘‘supplemental security income benefits

19 under title XVI of the Social Security Act’’ in20 cludes supplementary payments pursuant to an

21 agreement for Federal administration under

22 section 1616(a) of the Social Security Act and

23 payments pursuant to an agreement entered

24 into under section 212(b) of Public Law 93–66.
12

•S 1470 RS

1 (c) CONFORMING AMENDMENT.—Section 201(c) of

2 the Social Security Independence and Program Improve3 ments Act of 1994 (42 U.S.C. 425 note) is repealed.

4 (d) SUPPLEMENTAL FUNDING FOR ALCOHOL AND

5 SUBSTANCE ABUSE TREATMENT PROGRAMS.—

6 (1) IN GENERAL.—Out of any money in the

7 Treasury not otherwise appropriated, there are here8 by appropriated to supplement State and Tribal pro9 grams funded under section 1933 of the Public

10 Health Service Act (42 U.S.C. 300x–33),

11 $100,000,000 for each of the fiscal years 1997 and

12 1998.

13 (2) ADDITIONAL FUNDS.—Amounts appro14 priated under paragraph (1) shall be in addition to

15 any funds otherwise appropriated for allotments

16 under section 1933 of the Public Health Service Act

17 (42 U.S.C. 300x–33) and shall be allocated pursuant

18 to such section 1933.

19 (3) USE OF FUNDS.—A State or Tribal govern20 ment receiving an allotment under this subsection

21 shall consider as priorities, for purposes of expend22 ing funds allotted under this subsection, activities

23 relating to the treatment of the abuse of alcohol and

24 other drugs.
13

•S 1470 RS

1 SEC. 4. ENTITLEMENT OF STEPCHILDREN TO CHILD’S IN2 SURANCE BENEFITS BASED ON ACTUAL DE3 PENDENCY ON STEPPARENT SUPPORT.

4 (a) REQUIREMENT OF ACTUAL DEPENDENCY FOR

5 FUTURE ENTITLEMENTS.—

6 (1) IN GENERAL.—Section 202(d)(4) of the So7 cial Security Act (42 U.S.C. 402(d)(4)) is amended

8 by striking ‘‘was living with or’’.

9 (2) EFFECTIVE DATE.—The amendment made

10 by paragraph (1) shall apply with respect to benefits

11 of individuals who become entitled to such benefits

12 for months after the third month following the

13 month in which this Act is enacted.

14 (b) TERMINATION OF CHILD’S INSURANCE BENE15 FITS BASED ON WORK RECORD OF STEPPARENT UPON

16 NATURAL PARENT’S DIVORCE FROM STEPPARENT.—

17 (1) IN GENERAL.—Section 202(d)(1) of the So18 cial Security Act (42 U.S.C. 402(d)(1)) is amend19 ed—

20 (A) by striking ‘‘or’’ at the end of subpara21 graph (F);

22 (B) by striking the period at the end of

23 subparagraph (G) and inserting ‘‘; or’’; and

24 (C) by inserting after subparagraph (G)

25 the following new subparagraph:
14

•S 1470 RS

1 ‘‘(H) if the benefits under this subsection are

2 based on the wages and self-employment income of

3 a stepparent who is subsequently divorced from such

4 child’s natural parent, the month after the month in

5 which such divorce becomes final.’’.

6 (2) NOTIFICATION.—Section 202(d) of such Act

7 (42 U.S.C. 402(d)) is amended by adding the follow8 ing new paragraph:

9 ‘‘(10) For purposes of paragraph (1)(H)—

10 ‘‘(A) each stepparent shall notify the Commis11 sioner of Social Security of any divorce upon such

12 divorce becoming final; and

13 ‘‘(B) the Commissioner shall annually notify

14 any stepparent of the rule for termination described

15 in paragraph (1)(H) and of the requirement de16 scribed in subparagraph (A).’’.

17 (3) EFFECTIVE DATES.—

18 (A) The amendments made by paragraph

19 (1) shall apply with respect to notifications of

20 divorces received by the Commissioner of Social

21 Security on or after the date of the enactment

22 of this Act.

23 (B) The amendment made by paragraph

24 (2) shall take effect on the date of the enact25 ment of this Act.
15

•S 1470 RS

1 SEC. 5. ESTABLISHMENT OF DISABILITY INSURANCE CON2 TINUING DISABILITY REVIEW ADMINISTRA3 TION REVOLVING ACCOUNT.

4 (a) CONTINUING DISABILITY REVIEW ADMINISTRA5 TION REVOLVING ACCOUNT FOR TITLE II DISABILITY

6 BENEFITS IN THE FEDERAL DISABILITY INSURANCE

7 TRUST FUND.—

8 (1) IN GENERAL.—Section 201 of the Social

9 Security Act (42 U.S.C. 401) is amended by adding

10 at the end the following new subsection:

11 ‘‘(n)(1) There is hereby created in the Federal Dis12 ability Insurance Trust Fund a Continuing Disability Re13 view Administration Revolving Account (hereinafter in

14 this subsection referred to as the ‘Account’). The Account

15 shall consist initially of $300,000,000 (which is hereby

16 transferred to the Account from amounts otherwise avail17 able in such Trust Fund) and shall also consist thereafter

18 of such other amounts as may be transferred to it under

19 this subsection. Such amounts in the Account shall be con20 sidered amounts in the Federal Disability Insurance Trust

21 Fund for purposes of subsections (d), (e), and (f), and

22 the Managing Trustee shall credit the investment proceeds

23 with respect to such amounts to the Account. The balance

24 in the Account shall be available solely for expenditures

25 certified under paragraph (2).
16

•S 1470 RS

1 ‘‘(2)(A) Before October 1 of each calendar year, the

2 Chief Actuary of the Social Security Administration

3 shall—

4 ‘‘(i) estimate the present value of savings to the

5 Federal Old-Age and Survivors Insurance Trust

6 Fund, the Federal Disability Insurance Trust Fund,

7 the Federal Hospital Insurance Trust Fund, and the

8 Federal Supplementary Medical Insurance Trust

9 Fund which will accrue for all years as a result of

10 cessations of benefit payments resulting from con11 tinuing disability reviews carried out pursuant to the

12 requirements of section 221(i) during the fiscal year

13 ending on September 30 of such calendar year (in14 creased or decreased as appropriate to account for

15 deviations of estimates for prior fiscal years from

16 the actual amounts for such fiscal years), and

17 ‘‘(ii) certify the amount of such estimate to the

18 Managing Trustee.

19 ‘‘(B) Upon receipt of certification by the Chief Actu20 ary under subparagraph (A), the Managing Trustee shall

21 transfer to the Account from amounts otherwise in the

22 Trust Fund an amount equal to the estimated savings so

23 certified.

24 ‘‘(C) To the extent of available funds in the Account,

25 upon certification by the Chief Actuary that such funds
17

•S 1470 RS

1 are currently required to meet expenditures necessary to

2 provide for continuing disability reviews required under

3 section 221(i), the Managing Trustee shall make available

4 to the Commissioner of Social Security from the Account

5 the amount so certified.

6 ‘‘(D) The expenditures referred to in subparagraph

7 (C) shall include, but not be limited to, the cost of staffing,

8 training, purchase of medical and other evidence, and

9 processing related to appeals (including appeal hearings)

10 and to overpayments and related indirect costs.

11 ‘‘(E) The Commissioner shall use funds made avail12 able pursuant to this paragraph solely for the purposes

13 described in subparagraph (C).’’.

14 (2) CONFORMING AMENDMENT.—Section

15 201(g)(1)(A) of such Act (42 U.S.C. 401(g)(1)(A))

16 is amended in the last sentence by inserting ‘‘(other

17 than expenditures from available funds in the Con18 tinuing Disability Review Administration Revolving

19 Account in the Federal Disability Insurance Trust

20 Fund made pursuant to subsection (n))’’ after ‘‘is

21 responsible’’ the first place it appears.

22 (3) ANNUAL REPORT.—Section 221(i)(3) of

23 such Act (42 U.S.C. 421(i)(3)) is amended—

24 (A) by striking ‘‘and the number’’ and in25 serting ‘‘the number’’;
18

•S 1470 RS

1 (B) by striking the period at the end and

2 inserting a comma; and

3 (C) by adding at the end the following:

4 ‘‘and a final accounting of amounts transferred

5 to the Continuing Disability Review Adminis6 tration Revolving Account in the Federal Dis7 ability Insurance Trust Fund during the year,

8 the amount made available from such Account

9 during such year pursuant to certifications

10 made by the Chief Actuary of the Social Secu11 rity Administration under section 201(n)(2)(C),

12 and expenditures made by the Commissioner of

13 Social Security for the purposes described in

14 section 201(n)(2)(C) during the year, including

15 a comparison of the number of continuing dis16 ability reviews conducted during the year with

17 the estimated number of continuing disability

18 reviews upon which the estimate of such ex19 penditures was made under section

20 201(n)(2)(A).’’.

21 (b) EFFECTIVE DATE AND SUNSET.—

22 (1) EFFECTIVE DATE.—The amendments made

23 by subsection (a) shall apply for fiscal years begin24 ning on or after October 1, 1995, and ending on or

25 before September 30, 2002.
19

•S 1470 RS

1 (2) SUNSET.—Effective October 1, 2002, the

2 Continuing Disability Review Administration Revolv3 ing Account in the Federal Disability Insurance

4 Trust Fund shall cease to exist, any balance in such

5 Account shall revert to funds otherwise available in

6 such Trust Fund, and sections 201 and 221 of the

7 Social Security Act shall read as if the amendments

8 made by subsection (a) had not been enacted.

9 (c) OFFICE OF CHIEF ACTUARY IN THE SOCIAL SE10 CURITY ADMINISTRATION.—

11 (1) IN GENERAL.—Section 702 of such Act (42

12 U.S.C. 902) is amended—

13 (A) by redesignating subsections (c) and

14 (d) as subsections (d) and (e), respectively; and

15 (B) by inserting after subsection (b) the

16 following new subsection:

17 ‘‘Chief Actuary

18 ‘‘(c)(1) There shall be in the Administration a Chief

19 Actuary, who shall be appointed by, and in direct line of

20 authority to, the Commissioner. The Chief Actuary shall

21 be appointed from individuals who have demonstrated, by

22 their education and experience, superior expertise in the

23 actuarial sciences. The Chief Actuary shall serve as the

24 chief actuarial officer of the Administration, and shall ex25 ercise such duties as are appropriate for the office of the
20

•S 1470 RS

1 Chief Actuary and in accordance with professional stand2 ards of actuarial independence. The Chief Actuary may

3 be removed only for cause.

4 ‘‘(2) The Chief Actuary shall be compensated at the

5 highest rate of basic pay for the Senior Executive Service

6 under section 5382(b) of title 5, United States Code.’’.

7 (2) EFFECTIVE DATE OF SUBSECTION.—The

8 amendments made by this subsection shall take ef9 fect on the date of the enactment of this Act.

10 SEC. 6. APPLICABILITY OF PUBLIC DEBT LIMIT TO FED11 ERAL TRUST FUNDS AND OTHER FEDERAL

12 ACCOUNTS.

13 (a) PROTECTION OF FEDERAL FUNDS.—Notwith14 standing any other provision of law—

15 (1) no officer or employee of the United States

16 may—

17 (A) delay the deposit of any amount into

18 (or delay the credit of any amount to) any Fed19 eral fund or otherwise vary from the normal

20 terms, procedures, or timing for making such

21 deposits or credits, or

22 (B) refrain from the investment in public

23 debt obligations of amounts in any Federal

24 fund,
21

•S 1470 RS

1 if a purpose of such action or inaction is to not in2 crease the amount of outstanding public debt obliga3 tions, and

4 (2) no officer or employee of the United States

5 may disinvest amounts in any Federal fund which

6 are invested in public debt obligations if a purpose

7 of the disinvestment is to reduce the amount of out8 standing public debt obligations.

9 (b) PROTECTION OF BENEFITS AND EXPENDITURES

10 FOR ADMINISTRATIVE EXPENSES.—

11 (1) IN GENERAL.—Notwithstanding subsection

12 (a), during any period for which cash benefits or ad13 ministrative expenses would not otherwise be payable

14 from a Federal fund by reason of an inability to

15 issue further public debt obligations because of the

16 applicable public debt limit, public debt obligations

17 held by such Federal fund shall be sold or redeemed

18 only for the purpose of making payment of such

19 benefits or administrative expenses and only to the

20 extent cash assets of the Federal fund are not avail21 able from month to month for making payment of

22 such benefits or administrative expenses.

23 (2) ISSUANCE OF CORRESPONDING DEBT.—For

24 purposes of undertaking the sale or redemption of

25 public debt obligations held by a Federal fund pur-
22

•S 1470 RS

1 suant to paragraph (1), the Secretary of the Treas2 ury may issue corresponding public debt obligations

3 to the public, in order to obtain the cash necessary

4 for payment of benefits or administrative expenses

5 from such Federal fund, notwithstanding the public

6 debt limit.

7 (3) ADVANCE NOTICE OF SALE OR REDEMP8 TION.—Not less than 3 days prior to the date on

9 which, by reason of the public debt limit, the Sec10 retary of the Treasury expects to undertake a sale

11 or redemption authorized under paragraph (1), the

12 Secretary of the Treasury shall report to each House

13 of the Congress and to the Comptroller General of

14 the United States regarding the expected sale or re15 demption. Upon receipt of such report, the Comp16 troller General shall review the extent of compliance

17 with subsection (a) and paragraphs (1) and (2) of

18 this subsection and shall issue such findings and rec19 ommendations to each House of the Congress as the

20 Comptroller General considers necessary and appro21 priate.

22 (c) PUBLIC DEBT OBLIGATION.—For purposes of

23 this section, the term ‘‘public debt obligation’’ means any

24 obligation subject to the public debt limit established

25 under section 3101 of title 31, United States Code.
23

•S 1470 RS

1 (d) FEDERAL FUND.—For purposes of this section,

2 the term ‘‘Federal fund’’ means—

3 (1) the Federal Old-Age and Survivors Insur4 ance Trust Fund;

5 (2) the Federal Disability Insurance Trust

6 Fund;

7 (3) the Federal Hospital Insurance Trust

8 Fund; and

9 (4) the Federal Supplementary Medical Insur10 ance Trust Fund.

11 SECTION 1. SHORT TITLE.

12 This Act may be cited as the ‘‘Senior Citizens’ Free13 dom to Work Act of 1995’’.

14 SEC. 2. INCREASES IN MONTHLY EXEMPT AMOUNT FOR

15 PURPOSES OF THE SOCIAL SECURITY EARN16 INGS LIMIT.

17 (a) INCREASE IN MONTHLY EXEMPT AMOUNT FOR IN18 DIVIDUALS WHO HAVE ATTAINED RETIREMENT AGE.—Sec19 tion 203(f)(8)(D) of the Social Security Act (42 U.S.C.

20 403(f)(8)(D)) is amended to read as follows:

21 ‘‘(D) Notwithstanding any other provision of

22 this subsection, the exempt amount which is applica23 ble to an individual who has attained retirement age

24 (as defined in section 216(l)) before the close of the

25 taxable year involved shall be—
24

•S 1470 RS

1 ‘‘(i) for each month of any taxable year

ending after 1995 and before 1997, $1,166.662 2 ⁄3,

3 ‘‘(ii) for each month of any taxable year

4 ending after 1996 and before 1998, $1,250.00,

5 ‘‘(iii) for each month of any taxable year

ending after 1997 and before 1999, $1,333.331 6 ⁄3,

7 ‘‘(iv) for each month of any taxable year

ending after 1998 and before 2000, $1,416.662 8 ⁄3,

9 ‘‘(v) for each month of any taxable year

10 ending after 1999 and before 2001, $1,500.00,

11 ‘‘(vi) for each month of any taxable year

ending after 2000 and before 2002, $2,083.331 12 ⁄3,

13 and

14 ‘‘(vii) for each month of any taxable year

15 ending after 2001 and before 2003, $2,500.00.’’.

16 (b) CONFORMING AMENDMENTS.—

17 (1) Section 203(f)(8)(B)(ii) of the Social Secu18 rity Act (42 U.S.C. 403(f)(8)(B)(ii)) is amended—

19 (A) by striking ‘‘the taxable year ending

20 after 1993 and before 1995’’ and inserting ‘‘the

21 taxable year ending after 2001 and before 2003

22 (with respect to individuals described in sub23 paragraph (D)) or the taxable year ending after

24 1993 and before 1995 (with respect to other indi25 viduals)’’; and
25

•S 1470 RS

1 (B) in subclause (II), by striking ‘‘for

2 1992’’ and inserting ‘‘for 2000 (with respect to

3 individuals described in subparagraph (D)) or

4 1992 (with respect to other individuals)’’.

5 (2) The second sentence of section 223(d)(4)(A) of

6 such Act (42 U.S.C. 423(d)(4)(A)) is amended by

7 striking ‘‘the exempt amount under section 203(f)(8)

8 which is applicable to individuals described in sub9 paragraph (D) thereof’’ and inserting the following:

10 ‘‘an amount equal to the exempt amount which would

11 be applicable under section 203(f)(8), to individuals

12 described in subparagraph (D) thereof, if section 2 of

13 the Senior Citizens’ Freedom to Work Act of 1995 had

14 not been enacted’’.

15 (c) EFFECTIVE DATE.—The amendments made by this

16 section shall apply with respect to taxable years ending

17 after 1995.

18 SEC. 3. DENIAL OF DISABILITY BENEFITS TO DRUG AD19 DICTS AND ALCOHOLICS.

20 (a) AMENDMENTS RELATING TO TITLE II DISABILITY

21 BENEFITS.—

22 (1) IN GENERAL.—Section 223(d)(2) of the So23 cial Security Act (42 U.S.C. 423(d)(2)) is amended

24 by adding at the end the following:
26

•S 1470 RS

1 ‘‘(C) An individual shall not be considered to be

2 disabled for purposes of this title if alcoholism or drug

3 addiction would (but for this subparagraph) be a con4 tributing factor material to the Commissioner’s deter5 mination that the individual is disabled.’’.

6 (2) REPRESENTATIVE PAYEE REQUIREMENTS.—

7 (A) Section 205(j)(1)(B) of such Act (42

8 U.S.C. 405(j)(1)(B)) is amended to read as fol9 lows:

10 ‘‘(B) In the case of an individual entitled to benefits

11 based on disability, the payment of such benefits shall be

12 made to a representative payee if the Commissioner of So13 cial Security determines that such payment would serve the

14 interest of the individual because the individual also has

15 an alcoholism or drug addiction condition (as determined

16 by the Commissioner) that prevents the individual from

17 managing such benefits.’’.

18 (B) Section 205(j)(2)(C)(v) of such Act (42

19 U.S.C. 405(j)(2)(C)(v)) is amended by striking

20 ‘‘entitled to benefits’’ and all that follows through

21 ‘‘under a disability’’ and inserting ‘‘described in

22 paragraph (1)(B)’’.

23 (C) Section 205(j)(2)(D)(ii)(II) of such Act

24 (42 U.S.C. 405(j)(2)(D)(ii)(II)) is amended by
27

•S 1470 RS

1 striking all that follows ‘‘15 years, or’’ and in2 serting ‘‘described in paragraph (1)(B).’’.

3 (D) Section 205(j)(4)(A)(i)(II) of such Act

4 (42 U.S.C. 405(j)(4)(A)(ii)(II)) is amended by

5 striking ‘‘entitled to benefits’’ and all that follows

6 through ‘‘under a disability’’ and inserting ‘‘de7 scribed in paragraph (1)(B)’’.

8 (3) TREATMENT REFERRALS FOR INDIVIDUALS

9 WITH AN ALCOHOLISM OR DRUG ADDICTION CONDI10 TION.—Section 222 of such Act (42 U.S.C. 422) is

11 amended by adding at the end the following new sub12 section:

13 ‘‘Treatment Referrals for Individuals with an Alcoholism

14 or Drug Addiction Condition

15 ‘‘(e) In the case of any individual whose benefits under

16 this title are paid to a representative payee pursuant to

17 section 205(j)(1)(B), the Commissioner of Social Security

18 shall refer such individual to the appropriate State agency

19 administering the State plan for substance abuse treatment

20 services approved under subpart II of part B of title XIX

21 of the Public Health Service Act (42 U.S.C. 300x–21 et

22 seq.).’’.

23 (4) CONFORMING AMENDMENT.—Subsection (c)

24 of section 225 of such Act (42 U.S.C. 425(c)) is re25 pealed.
28

•S 1470 RS

1 (5) EFFECTIVE DATES.—

2 (A) The amendments made by paragraphs

3 (1) and (4) shall apply to any individual who

4 applies for, or whose claim is adjudicated with

5 respect to, benefits under title II of the Social Se6 curity Act based on disability on or after the

7 date of the enactment of this Act, and, in the

8 case of any individual who has applied for, and

9 whose claim has been adjudicated with respect

10 to, such benefits before such date of enactment,

11 such amendments shall apply only with respect

12 to such benefits for months beginning on or after

13 January 1, 1997.

14 (B) The amendments made by paragraphs

15 (2) and (3) shall apply with respect to benefits

16 for which applications are filed on or after the

17 date of the enactment of this Act.

18 (C) If an individual who is entitled to

19 monthly insurance benefits under title II of the

20 Social Security Act based on disability for the

21 month in which this Act is enacted and whose

22 entitlement to such benefits would terminate by

23 reason of the amendments made by this sub24 section reapplies for benefits under title II of

25 such Act (as amended by this Act) based on dis-
29

•S 1470 RS

1 ability within 120 days after the date of the en2 actment of this Act, the Commissioner of Social

3 Security shall, not later than January 1, 1997,

4 complete the entitlement redetermination with

5 respect to such individual pursuant to the proce6 dures of such title.

7 (b) AMENDMENTS RELATING TO SSI BENEFITS.—

8 (1) IN GENERAL.—Section 1614(a)(3) of the So9 cial Security Act (42 U.S.C. 1382c(a)(3)) is amended

10 by adding at the end the following:

11 ‘‘(I) Notwithstanding subparagraph (A), an individ12 ual shall not be considered to be disabled for purposes of

13 this title if alcoholism or drug addiction would (but for this

14 subparagraph) be a contributing factor material to the

15 Commissioner’s determination that the individual is dis16 abled.’’.

17 (2) REPRESENTATIVE PAYEE REQUIREMENTS.—

18 (A) Section 1631(a)(2)(A)(ii)(II) of such

19 Act (42 U.S.C. 1383(a)(2)(A)(ii)(II)) is amended

20 to read as follows:

21 ‘‘(II) In the case of an individual eligible for benefits

22 under this title by reason of disability, the payment of such

23 benefits shall be made to a representative payee if the Com24 missioner of Social Security determines that such payment

25 would serve the interest of the individual because the indi-
30

•S 1470 RS

1 vidual also has an alcoholism or drug addiction condition

2 (as determined by the Commissioner) that prevents the in3 dividual from managing such benefits.’’.

4 (B) Section 1631(a)(2)(B)(vii) of such Act

5 (42 U.S.C. 1383(a)(2)(B)(vii)) is amended by

6 striking ‘‘eligible for benefits’’ and all that fol7 lows through ‘‘is disabled’’ and inserting ‘‘de8 scribed in subparagraph (A)(ii)(II)’’.

9 (C) Section 1631(a)(2)(B)(ix)(II) of such

10 Act (42 U.S.C. 1383(a)(2)(B)(ix)(II)) is amend11 ed by striking all that follows ‘‘15 years, or’’ and

12 inserting ‘‘described in subparagraph

13 (A)(ii)(II).’’.

14 (D) Section 1631(a)(2)(D)(i)(II) of such Act

15 (42 U.S.C. 1383(a)(2)(D)(i)(II)) is amended by

16 striking ‘‘eligible for benefits’’ and all that fol17 lows through ‘‘is disabled’’ and inserting ‘‘de18 scribed in subparagraph (A)(ii)(II)’’.

19 (3) TREATMENT REFERRALS FOR INDIVIDUALS

20 WITH AN ALCOHOLISM OR DRUG ADDICTION CONDI21 TION.—Title XVI of such Act (42 U.S.C. 1381 et seq.)

22 is amended by adding at the end the following new

23 section:
31

•S 1470 RS

1 ‘‘TREATMENT REFERRALS FOR INDIVIDUALS WITH AN

2 ALCOHOLISM OR DRUG ADDICTION CONDITION

3 ‘‘SEC. 1636. In the case of any individual whose bene4 fits under this title are paid to a representative payee pur5 suant to section 1631(a)(2)(A)(ii)(II), the Commissioner of

6 Social Security shall refer such individual to the appro7 priate State agency administering the State plan for sub8 stance abuse treatment services approved under subpart II

9 of part B of title XIX of the Public Health Service Act (42

10 U.S.C. 300x–21 et seq.).’’.

11 (4) CONFORMING AMENDMENTS.—

12 (A) Section 1611(e) of such Act (42 U.S.C.

13 1382(e)) is amended by striking paragraph (3).

14 (B) Section 1634 of such Act (42 U.S.C.

15 1383c) is amended by striking subsection (e).

16 (5) EFFECTIVE DATES.—

17 (A) The amendments made by paragraphs

18 (1) and (4) shall apply to any individual who

19 applies for, or whose claim is adjudicated with

20 respect to, supplemental security income benefits

21 under title XVI of the Social Security Act based

22 on disability on or after the date of the enact23 ment of this Act, and, in the case of any individ24 ual who has applied for, and whose claim has

25 been adjudicated with respect to, such benefits be-
32

•S 1470 RS

1 fore such date of enactment, such amendments

2 shall apply only with respect to such benefits for

3 months beginning on or after January 1, 1997.

4 (B) The amendments made by paragraphs

5 (2) and (3) shall apply with respect to supple6 mental security income benefits under title XVI

7 of the Social Security Act for which applications

8 are filed on or after the date of the enactment of

9 this Act.

10 (C) If an individual who is eligible for sup11 plemental security income benefits under title

12 XVI of the Social Security Act for the month in

13 which this Act is enacted and whose eligibility

14 for such benefits would terminate by reason of

15 the amendments made by this subsection

16 reapplies for supplemental security income bene17 fits under title XVI of such Act (as amended by

18 this Act) within 120 days after the date of the

19 enactment of this Act, the Commissioner of So20 cial Security shall, not later than January 1,

21 1997, complete the eligibility redetermination

22 with respect to such individual pursuant to the

23 procedures of such title.

24 (D) For purposes of this paragraph, the

25 phrase ‘‘supplemental security income benefits
33

•S 1470 RS

1 under title XVI of the Social Security Act’’ in2 cludes supplementary payments pursuant to an

3 agreement for Federal administration under sec4 tion 1616(a) of the Social Security Act and pay5 ments pursuant to an agreement entered into

6 under section 212(b) of Public Law 93–66.

7 (c) CONFORMING AMENDMENT.—Section 201(c) of the

8 Social Security Independence and Program Improvements

9 Act of 1994 (42 U.S.C. 425 note) is repealed.

10 (d) SUPPLEMENTAL FUNDING FOR ALCOHOL AND SUB11 STANCE ABUSE TREATMENT PROGRAMS.—

12 (1) IN GENERAL.—Out of any money in the

13 Treasury not otherwise appropriated, there are hereby

14 appropriated to supplement State and Tribal pro15 grams funded under section 1933 of the Public Health

16 Service Act (42 U.S.C. 300x–33), $50,000,000 for

17 each of the fiscal years 1997 and 1998.

18 (2) ADDITIONAL FUNDS.—Amounts appropriated

19 under paragraph (1) shall be in addition to any

20 funds otherwise appropriated for allotments under

21 section 1933 of the Public Health Service Act (42

22 U.S.C. 300x–33) and shall be allocated pursuant to

23 such section 1933.

24 (3) USE OF FUNDS.—A State or Tribal govern25 ment receiving an allotment under this subsection
34

•S 1470 RS

1 shall consider as priorities, for purposes of expending

2 funds allotted under this subsection, activities relating

3 to the treatment of the abuse of alcohol and other

4 drugs.

5 SEC. 4. ENTITLEMENT OF STEPCHILDREN TO CHILD’S IN6 SURANCE BENEFITS BASED ON ACTUAL DE7 PENDENCY ON STEPPARENT SUPPORT.

8 (a) REQUIREMENT OF ACTUAL DEPENDENCY FOR FU9 TURE ENTITLEMENTS.—

10 (1) IN GENERAL.—Section 202(d)(4) of the So11 cial Security Act (42 U.S.C. 402(d)(4)) is amended

12 by striking ‘‘was living with or’’.

13 (2) EFFECTIVE DATE.—The amendment made by

14 paragraph (1) shall apply with respect to benefits of

15 individuals who become entitled to such benefits for

16 months after the third month following the month in

17 which this Act is enacted.

18 (b) TERMINATION OF CHILD’S INSURANCE BENEFITS

19 BASED ON WORK RECORD OF STEPPARENT UPON NATURAL

20 PARENT’S DIVORCE FROM STEPPARENT.—

21 (1) IN GENERAL.—Section 202(d)(1) of the So22 cial Security Act (42 U.S.C. 402(d)(1)) is amended—

23 (A) by striking ‘‘or’’ at the end of subpara24 graph (F);
35

•S 1470 RS

1 (B) by striking the period at the end of sub2 paragraph (G) and inserting ‘‘; or’’; and

3 (C) by inserting after subparagraph (G) the

4 following new subparagraph:

5 ‘‘(H) if the benefits under this subsection are

6 based on the wages and self-employment income of a

7 stepparent who is subsequently divorced from such

8 child’s natural parent, the month after the month in

9 which such divorce becomes final.’’.

10 (2) NOTIFICATION.—Section 202(d) of such Act

11 (42 U.S.C. 402(d)) is amended by adding the follow12 ing new paragraph:

13 ‘‘(10) For purposes of paragraph (1)(H)—

14 ‘‘(A) each stepparent shall notify the Commis15 sioner of Social Security of any divorce upon such di16 vorce becoming final; and

17 ‘‘(B) the Commissioner shall annually notify

18 any stepparent of the rule for termination described

19 in paragraph (1)(H) and of the requirement described

20 in subparagraph (A).’’.

21 (3) EFFECTIVE DATES.—

22 (A) The amendments made by paragraph

23 (1) shall apply with respect to final divorces oc24 curring after the third month following the

25 month in which this Act is enacted.
36

•S 1470 RS

1 (B) The amendment made by paragraph (2)

2 shall take effect on the date of the enactment of

3 this Act.

4 SEC. 5. ESTABLISHMENT OF DISABILITY INSURANCE CON5 TINUING DISABILITY REVIEW ADMINISTRA6 TION REVOLVING ACCOUNT.

7 (a) CONTINUING DISABILITY REVIEW ADMINISTRA8 TION REVOLVING ACCOUNT FOR TITLE II DISABILITY BEN9 EFITS IN THE FEDERAL DISABILITY INSURANCE TRUST

10 FUND.—

11 (1) IN GENERAL.—Section 201 of the Social Se12 curity Act (42 U.S.C. 401) is amended by adding at

13 the end the following new subsection:

14 ‘‘(n)(1) There is hereby created in the Federal Disabil15 ity Insurance Trust Fund a Continuing Disability Review

16 Administration Revolving Account (hereinafter in this sub17 section referred to as the ‘Account’). The Account shall con18 sist initially of $300,000,000 (which is hereby transferred

19 to the Account from amounts otherwise available in such

20 Trust Fund) and shall also consist thereafter of such other

21 amounts as may be transferred to it under this subsection.

22 Such amounts in the Account shall be considered amounts

23 in the Federal Disability Insurance Trust Fund for pur24 poses of subsections (d), (e), and (f), and the Managing

25 Trustee shall credit the investment proceeds with respect to
37

•S 1470 RS

1 such amounts to the Account. The balance in the Account

2 shall be available solely for expenditures certified under

3 paragraph (2) and shall remain available until expended.

4 ‘‘(2)(A) Before October 1 of each calendar year, the

5 Chief Actuary of the Social Security Administration

6 shall—

7 ‘‘(i) estimate the present value of savings to the

8 Federal Old-Age and Survivors Insurance Trust

9 Fund, the Federal Disability Insurance Trust Fund,

10 the Federal Hospital Insurance Trust Fund, and the

11 Federal Supplementary Medical Insurance Trust

12 Fund which will accrue for all years as a result of

13 cessations of benefit payments resulting from continu14 ing disability reviews carried out pursuant to the re15 quirements of section 221(i) during the fiscal year

16 ending on September 30 of such calendar year (in17 creased or decreased as appropriate to account for de18 viations of estimates for prior fiscal years from the

19 actual amounts for such fiscal years), and

20 ‘‘(ii) certify the amount of such estimate to the

21 Managing Trustee.

22 ‘‘(B) Upon receipt of certification by the Chief Actuary

23 under subparagraph (A), the Managing Trustee shall trans24 fer to the Account from amounts otherwise available in the
38

•S 1470 RS

1 Federal Disability Insurance Trust Fund an amount equal

2 to the estimated savings so certified.

3 ‘‘(C) To the extent of available funds in the Account,

4 upon certification by the Chief Actuary that such funds are

5 currently required to meet expenditures necessary to provide

6 for continuing disability reviews required under section

7 221(i), the Managing Trustee shall make available to the

8 Commissioner of Social Security from the Account the

9 amount so certified.

10 ‘‘(D) The expenditures referred to in subparagraph (C)

11 shall include, but not be limited to, the cost of staffing,

12 training, purchase of medical and other evidence, and proc13 essing related to appeals (including appeal hearings) and

14 to overpayments and related indirect costs.

15 ‘‘(E) The Commissioner shall use funds made available

16 pursuant to this paragraph solely for the purposes described

17 in subparagraph (C).’’.

18 (2) CONFORMING AMENDMENT.—Section

19 201(g)(1)(A) of such Act (42 U.S.C. 401(g)(1)(A)) is

20 amended in the last sentence by inserting ‘‘(other

21 than expenditures from available funds in the Con22 tinuing Disability Review Administration Revolving

23 Account in the Federal Disability Insurance Trust

24 Fund made pursuant to subsection (n))’’ after ‘‘is re25 sponsible’’ the first place it appears.
39

•S 1470 RS

1 (3) ANNUAL REPORT.—Section 221(i)(3) of such

2 Act (42 U.S.C. 421(i)(3)) is amended—

3 (A) by striking ‘‘and the number’’ and in4 serting ‘‘the number’’;

5 (B) by striking the period at the end and

6 inserting a comma; and

7 (C) by adding at the end the following:

8 ‘‘and a final accounting of amounts transferred

9 to the Continuing Disability Review Administra10 tion Revolving Account in the Federal Disability

11 Insurance Trust Fund during the year, the

12 amount made available from such Account dur13 ing such year pursuant to certifications made by

14 the Chief Actuary of the Social Security Admin15 istration under section 201(n)(2)(C), and ex16 penditures made by the Commissioner of Social

17 Security for the purposes described in section

18 201(n)(2)(C) during the year, including a com19 parison of the number of continuing disability

20 reviews conducted during the year with the esti21 mated number of continuing disability reviews

22 upon which the estimate of such expenditures

23 was made under section 201(n)(2)(A).’’.

24 (b) EFFECTIVE DATE AND SUNSET.—
40

•S 1470 RS

1 (1) EFFECTIVE DATE.—The amendments made

2 by subsection (a) shall apply for fiscal years begin3 ning on or after October 1, 1995, and ending on or

4 before September 30, 2005.

5 (2) SUNSET.—Effective October 1, 2005, the Con6 tinuing Disability Review Administration Revolving

7 Account in the Federal Disability Insurance Trust

8 Fund shall cease to exist, any balance in such Ac9 count shall revert to funds otherwise available in such

10 Trust Fund, and sections 201 and 221 of the Social

11 Security Act shall read as if the amendments made

12 by subsection (a) had not been enacted.

13 (c) OFFICE OF CHIEF ACTUARY IN THE SOCIAL SECU14 RITY ADMINISTRATION.—

15 (1) IN GENERAL.—Section 702 of the Social Se16 curity Act (42 U.S.C. 902) is amended—

17 (A) by redesignating subsections (c) and (d)

18 as subsections (d) and (e), respectively; and

19 (B) by inserting after subsection (b) the fol20 lowing new subsection:

21 ‘‘Chief Actuary

22 ‘‘(c)(1) There shall be in the Administration a Chief

23 Actuary, who shall be appointed by, and in direct line of

24 authority to, the Commissioner. The Chief Actuary shall be

25 appointed from individuals who have demonstrated, by
41

•S 1470 RS

1 their education and experience, superior expertise in the ac2 tuarial sciences. The Chief Actuary shall serve as the chief

3 actuarial officer of the Administration, and shall exercise

4 such duties as are appropriate for the office of the Chief

5 Actuary and in accordance with professional standards of

6 actuarial independence. The Chief Actuary may be removed

7 only for cause.

8 ‘‘(2) The Chief Actuary shall be compensated at the

9 highest rate of basic pay for the Senior Executive Service

10 under section 5382(b) of title 5, United States Code.’’.

11 (2) EFFECTIVE DATE OF SUBSECTION.—The

12 amendments made by this subsection shall take effect

13 on the date of the enactment of this Act.

14 SEC. 6. PROTECTION OF SOCIAL SECURITY AND MEDICARE

15 TRUST FUNDS.

16 (a) IN GENERAL.—Part A of title XI of the Social Se17 curity Act (42 U.S.C. 1301 et seq.) is amended by adding

18 at the end the following new section:

19 ‘‘PROTECTION OF SOCIAL SECURITY AND MEDICARE TRUST

20 FUNDS

21 ‘‘SEC. 1145. (a) IN GENERAL.—No officer or employee

22 of the United States shall—

23 ‘‘(1) delay the deposit of any amount into (or

24 delay the credit of any amount to) any Federal fund

25 or otherwise vary from the normal terms, procedures,

26 or timing for making such deposits or credits,
42

•S 1470 RS

1 ‘‘(2) refrain from the investment in public debt

2 obligations of amounts in any Federal fund, or

3 ‘‘(3) redeem prior to maturity amounts in any

4 Federal fund which are invested in public debt obliga5 tions for any purpose other than the payment of bene6 fits or administrative expenses from such Federal

7 fund.

8 ‘‘(b) PUBLIC DEBT OBLIGATION.—For purposes of this

9 section, the term ‘public debt obligation’ means any obliga10 tion subject to the public debt limit established under sec11 tion 3101 of title 31, United States Code.

12 ‘‘(c) FEDERAL FUND.—For purposes of this section,

13 the term ‘Federal fund’ means—

14 ‘‘(1) the Federal Old-Age and Survivors Insur15 ance Trust Fund;

16 ‘‘(2) the Federal Disability Insurance Trust

17 Fund;

18 ‘‘(3) the Federal Hospital Insurance Trust Fund;

19 and

20 ‘‘(4) the Federal Supplementary Medical Insur21 ance Trust Fund.’’.

22 (b) EFFECTIVE DATE.—The amendment made by this

23 section shall take effect on the date of the enactment of this

24 Act.

S 1470 RS——2
43

•S 1470 RS

S 1470 RS——3

S 1470 RS——4