II

106TH CONGRESS

2D SESSION S. 2774

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

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

insurance program, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 22, 2000

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

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

which was read twice and referred to the Committee on Finance

A BILL

To amend title II of the Social Security Act to provide

for individual savings accounts funded by employee and

employer social security payroll deductions, to extend

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

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

5 ‘‘Bipartisan Social Security Reform Act of 2000.’’

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

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

TITLE I—INDIVIDUAL SAVINGS ACCOUNTS

Sec. 101. Individual savings accounts.

Sec. 102. Social security KidSave Accounts.

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

of the Social Security Act.

TITLE II—SOCIAL SECURITY SYSTEM ADJUSTMENTS

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

amounts.

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

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

retirement age.

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

years in computation.

Sec. 205. Maintenance of benefit and contribution base.

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

Fund.

Sec. 207. Actuarial adjustment for retirement.

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

Sec. 209. Modification of PIA factors to reflect changes in life expectancy.

Sec. 210. Mechanism for remedying unforeseen deterioration in social security

solvency.

1 TITLE I—INDIVIDUAL SAVINGS

2 ACCOUNTS

3 SEC. 101. INDIVIDUAL SAVINGS ACCOUNTS.

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

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

9 ‘‘PART A—INSURANCE BENEFITS’’;

10 and

11 (2) by adding at the end the following:

12 ‘‘PART B—INDIVIDUAL SAVINGS ACCOUNTS

13 ‘‘INDIVIDUAL SAVINGS ACCOUNTS

14 ‘‘SEC. 251. (a) ESTABLISHMENT.—
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1 ‘‘(1) IN GENERAL.—

2 ‘‘(A) ESTABLISHMENT IN ABSENCE OF

3 KIDSAVE ACCOUNT.—Except as provided in sub4 paragraph (B), the Commissioner of Social Se5 curity, within 30 days of the receipt of the first

6 contribution received pursuant to subsection (b)

7 with respect to an eligible individual, shall es8 tablish in the name of such individual an indi9 vidual savings account. The individual savings

10 account shall be identified to the account holder

11 by means of the account holder’s Social Secu12 rity account number.

13 ‘‘(B) USE OF KIDSAVE ACCOUNT.—If a

14 KidSave Account has been established in the

15 name of an eligible individual under section

16 262(a) before the date of the first contribution

17 received by the Commissioner pursuant to sub18 section (b) with respect to such individual, the

19 Commissioner shall redesignate the KidSave

20 Account as an individual savings account for

21 such individual.

22 ‘‘(2) DEFINITION OF ELIGIBLE INDIVIDUAL.—

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

24 individual born after December 31, 1937.

25 ‘‘(b) CONTRIBUTIONS.—
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1 ‘‘(1) AMOUNTS TRANSFERRED FROM THE

2 TRUST FUND.—The Secretary of the Treasury shall

3 transfer from the Federal Old-Age and Survivors In4 surance Trust Fund, for crediting by the Commis5 sioner of Social Security to an individual savings ac6 count of an eligible individual, an amount equal to

7 the sum of any amount received by such Secretary

8 on behalf of such individual under section

9 3101(a)(2) or 1401(a)(2) of the Internal Revenue

10 Code of 1986.

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

12 relating to additional contributions credited to indi13 vidual savings accounts, see sections 531(c)(2) and

14 6402(l) of the Internal Revenue Code of 1986.

15 ‘‘(c) DESIGNATION OF INVESTMENT TYPE OF INDI16 VIDUAL SAVINGS ACCOUNT.—

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

18 who is employed or self-employed shall designate the

19 investment type of individual savings account to

20 which the contributions described in subsection (b)

21 on behalf of such individual are to be credited.

22 ‘‘(2) FORM OF DESIGNATION.—The designation

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

24 manner and at such intervals as the Commissioner

25 of Social Security may prescribe in order to ensure
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1 ease of administration and reductions in burdens on

2 employers.

3 ‘‘(3) SPECIAL RULE FOR 2001.—Not later than

4 January 1, 2001, any eligible individual that is em5 ployed or self-employed as of such date shall execute

6 the designation required under paragraph (1).

7 ‘‘(4) DESIGNATION IN ABSENCE OF DESIGNA8 TION BY ELIGIBLE INDIVIDUAL.—In any case in

9 which no designation of the individual savings ac10 count is made, the Commissioner of Social Security

11 shall make the designation of the individual savings

12 account in accordance with regulations that take

13 into account the competing objectives of maximizing

14 returns on investments and minimizing the risk in15 volved with such investments.

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

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

18 an individual mentally incompetent or under other legal

19 disability may be made by the person who is constituted

20 guardian or other fiduciary by the law of the State of resi21 dence of the individual or is otherwise legally vested with

22 the care of the individual or his estate. Payment under

23 this part due an individual mentally incompetent or under

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

25 constituted guardian or other fiduciary by the law of the
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1 State of residence of the claimant or is otherwise legally

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

3 case in which a guardian or other fiduciary of the indi4 vidual under legal disability has not been appointed under

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

6 other person, in the judgment of the Commissioner, is re7 sponsible for the care of such individual, any designation

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

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

10 under this part which is otherwise payable to such indi11 vidual may be made to such person, and the payment of

12 an annuity payment under this part to such person bars

13 recovery by any other person.

14 ‘‘DEFINITION OF INDIVIDUAL SAVINGS ACCOUNT;

15 TREATMENT OF ACCOUNTS

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

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

18 individual savings account in the Individual Savings Fund

19 (established under section 254) which is administered by

20 the Individual Savings Fund Board.

21 ‘‘(b) TREATMENT OF ACCOUNT.—Except as other22 wise provided in this part and in section 531 of the Inter23 nal Revenue Code of 1986, any individual savings account

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

25 manner as an individual account in the Thrift Savings
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1 Fund under subchapter III of chapter 84 of title 5, United

2 States Code.

3 ‘‘INDIVIDUAL SAVINGS ACCOUNT DISTRIBUTIONS

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

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

6 only be made from an individual savings account of an

7 eligible individual on and after the earliest of—

8 ‘‘(1) the date the eligible individual attains nor9 mal retirement age, as determined under section 216

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

11 by such individual), or

12 ‘‘(2) the date on which funds in the eligible in13 dividual’s individual savings account are sufficient to

14 provide a monthly payment over the life expectancy

15 of the eligible individual (determined under reason16 able actuarial assumptions) which, when added to

17 the eligible individual’s monthly benefit under part A

(if any), is at least equal to an amount equal to 1 18 ⁄12

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

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

21 9902(2) and determined on such date for an indi22 vidual) and adjusted annually thereafter by the ad23 justment determined under section 215(i).

24 ‘‘(b) FORMS OF DISTRIBUTION.—

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

26 as provided in paragraph (2), beginning with the
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1 date determined under subsection (a), the balance in

2 an individual savings account available to provide

3 monthly payments not in excess of the amount de4 scribed in subsection (a)(2) shall be paid, as elected

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

6 shall be prescribed in regulations of the Individual

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

8 annuities or equal monthly payments over the life

9 expectancy of the eligible individual (determined

10 under reasonable actuarial assumptions) in accord11 ance with requirements (which shall be provided in

12 regulations of the Board) similar to the require13 ments applicable to payments of benefits under sub14 chapter III of chapter 84 of title 5, United States

15 Code, and providing for indexing for inflation.

16 ‘‘(2) PAYMENT OF EXCESS FUNDS.—To the ex17 tent funds remain in an eligible individual’s indi18 vidual savings account after the application of para19 graph (1), such funds shall be payable to the eligible

20 individual in such manner and in such amounts as

21 determined by the eligible individual, subject to the

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

23 United States Code.

24 ‘‘(c) DISTRIBUTION IN THE EVENT OF DEATH BE25 FORE THE DATE OF INITIAL DISTRIBUTION.—If the eligi-
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1 ble individual dies before the date determined under sub2 section (a), the balance in such individual’s individual sav3 ings account shall be distributed in a lump sum, under

4 rules established by the Individual Savings Fund Board,

5 to the individual’s heirs.

6 ‘‘INDIVIDUAL SAVINGS FUND

7 ‘‘SEC. 254. (a) ESTABLISHMENT.—There is estab8 lished and maintained in the Treasury of the United

9 States an Individual Savings Fund in the same manner

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

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

12 Code.

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

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

15 operated in the Social Security Administration an

16 Individual Savings Fund Board in the same manner

17 as the Federal Retirement Thrift Investment Board

18 under subchapter VII of chapter 84 of title 5,

19 United States Code.

20 ‘‘(2) SPECIFIC INVESTMENT AND REPORTING

21 DUTIES.—

22 ‘‘(A) IN GENERAL.—The Individual Sav23 ings Fund Board shall manage and report on

24 the activities of the Individual Savings Fund

25 and the individual savings accounts of such

26 Fund in the same manner as the Federal Re-
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1 tirement Thrift Investment Board manages and

2 reports on the Thrift Savings Fund and the in3 dividual accounts of such Fund under sub4 chapter VII of chapter 84 of title 5, United

5 States Code.

6 ‘‘(B) STUDY AND REPORT ON INCREASED

7 INVESTMENT OPTIONS.—

8 ‘‘(i) STUDY.—The Individual Savings

9 Fund Board shall conduct a study regard10 ing ways to increase an eligible individual’s

11 investment options with respect to such in12 dividual’s individual savings account and

13 with respect to rollovers or distributions

14 from such account.

15 ‘‘(ii) REPORT.—Not later than 2

16 years after the date of enactment of the

17 Bipartisan Social Security Reform Act of

18 2000, the Individual Savings Fund Board

19 shall submit a report to the President and

20 Congress that contains a detailed state21 ment of the results of the study conducted

22 pursuant to clause (i), together with the

23 Board’s recommendations for such legisla24 tive actions as the Board considers appro25 priate.
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1 ‘‘BUDGETARY TREATMENT OF INDIVIDUAL SAVINGS FUND

2 AND ACCOUNTS

3 ‘‘SEC. 255. The receipts and disbursements of the In4 dividual Savings Fund and any accounts within such fund

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

6 United States Government as submitted by the President

7 or of the congressional budget and shall be exempt from

8 any general budget limitation imposed by statute on ex9 penditures and net lending (budget outlays) of the United

10 States Government.’’.

11 (b) MODIFICATION OF FICA RATES.—

12 (1) EMPLOYEES.—Section 3101(a) of the Inter13 nal Revenue Code of 1986 (relating to tax on em14 ployees) is amended to read as follows:

15 ‘‘(a) OLD-AGE, SURVIVORS, AND DISABILITY INSUR16 ANCE.—

17 ‘‘(1) IN GENERAL.—

18 ‘‘(A) INDIVIDUALS COVERED UNDER PART

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

20 In addition to other taxes, there is hereby im21 posed on the income of every individual who is

22 not a part B eligible individual a tax equal to

23 6.2 percent of the wages (as defined in section

24 3121(a)) received by him with respect to em25 ployment (as defined in section 3121(b)).
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1 ‘‘(B) INDIVIDUALS COVERED UNDER PART

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

3 In addition to other taxes, there is hereby im4 posed on the income of every part B eligible in5 dividual a tax equal to 4.2 percent of the wages

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

7 individual with respect to employment (as de8 fined in section 3121(b)).

9 ‘‘(2) CONTRIBUTION OF OASDI TAX REDUCTION

10 TO INDIVIDUAL SAVINGS ACCOUNTS.—

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

12 taxes, there is hereby imposed on the income of

13 every part B eligible individual an individual

14 savings account contribution equal to the sum

15 of—

16 ‘‘(i) 2 percent of the wages (as so de17 fined) received by such individual with re18 spect to employment (as so defined), plus

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

20 exceed $2,000) as designated by the indi21 vidual in the same manner as described in

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

23 ‘‘(B) INFLATION ADJUSTMENT.—

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

25 calendar year beginning after 2001, the
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1 dollar amount in subparagraph (A)(ii)

2 shall be increased by an amount equal to—

3 ‘‘(I) such dollar amount, multi4 plied by

5 ‘‘(II) the cost-of-living adjust6 ment determined under section 1(f)(3)

7 for the calendar year, determined by

8 substituting ‘calendar year 2000’ for

9 ‘calendar year 1992’ in subparagraph

10 (B) thereof.

11 ‘‘(ii) ROUNDING.—If any dollar

12 amount after being increased under clause

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

14 amount shall be rounded to the nearest

15 multiple of $10.’’.

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

17 Internal Revenue Code of 1986 (relating to tax on

18 self-employment income) is amended to read as fol19 lows:

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

22 ‘‘(1) IN GENERAL.—

23 ‘‘(A) INDIVIDUALS COVERED UNDER PART

24 A OF THE SOCIAL SECURITY ACT.—In addition

25 to other taxes, there shall be imposed for each
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1 taxable year, on the self-employment income of

2 every individual who is not a part B eligible in3 dividual for the calendar year ending with or

4 during such taxable year, a tax equal to 12.40

5 percent of the amount of the self-employment

6 income for such taxable year.

7 ‘‘(B) INDIVIDUALS COVERED UNDER PART

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

9 In addition to other taxes, there is hereby im10 posed for each taxable year, on the self-employ11 ment income of every part B eligible individual,

12 a tax equal to 10.4 percent of the amount of

13 the self-employment income for such taxable

14 year.

15 ‘‘(2) CONTRIBUTION OF OASDI TAX REDUCTION

16 TO INDIVIDUAL SAVINGS ACCOUNTS.—

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

18 taxes, there is hereby imposed for each taxable

19 year, on the self-employment income of every

20 individual, an individual savings account con21 tribution equal to the sum of—

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

23 self-employment income for each individual

24 for such taxable year, and
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1 ‘‘(ii) so much of such self-employment

2 income (not to exceed $2,000) as des3 ignated by the individual in the same man4 ner as described in section 251(c) of the

5 Social Security Act.

6 ‘‘(B) INFLATION ADJUSTMENT.—

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

8 taxable year beginning after 2001, the dol9 lar amount in subparagraph (A)(ii) shall

10 be increased by an amount equal to—

11 ‘‘(I) such dollar amount, multi12 plied by

13 ‘‘(II) the cost-of-living adjust14 ment determined under section 1(f)(3)

15 for the calendar year in which the tax16 able year begins, determined by sub17 stituting ‘calendar year 2000’ for ‘cal18 endar year 1992’ in subparagraph (B)

19 thereof.

20 ‘‘(ii) ROUNDING.—If any dollar

21 amount after being increased under clause

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

23 amount shall be rounded to the nearest

24 multiple of $10.’’.

25 (3) PART B ELIGIBLE INDIVIDUAL.—
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1 (A) TAXES ON EMPLOYEES.—Section 3121

2 of such Code (relating to definitions) is amend3 ed by inserting after subsection (s) the fol4 lowing:

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

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

7 for any calendar year, an individual who is an eligible indi8 vidual (as defined in section 251(a)(2) of the Social Secu9 rity Act) for such calendar year.’’.

10 (B) SELF-EMPLOYMENT TAX.—Section

11 1402 of such Code (relating to definitions) is

12 amended by adding at the end the following:

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

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

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

16 section 251(a)(2) of the Social Security Act) for such cal17 endar year.’’.

18 (4) EFFECTIVE DATES.—

19 (A) EMPLOYEES.—The amendments made

20 by paragraphs (1) and (3)(A) apply to remu21 neration paid after December 31, 2000.

22 (B) SELF-EMPLOYED INDIVIDUALS.—The

23 amendments made by paragraphs (2) and

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

25 December 31, 2000.
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1 (c) MATCHING CONTRIBUTIONS.—

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

3 chapter 1 of the Internal Revenue Code of 1986 (re4 lating to credits against tax) is amended by adding

5 at the end the following:

6 ‘‘Subpart H—Individual Savings Account Credits

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

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

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

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

10 an amount equal to the sum of—

11 ‘‘(1) $100, plus

12 ‘‘(2) 100 percent of the designated wages of

13 such individual for the taxable year, plus

14 ‘‘(3) 100 percent of the designated self-employ15 ment income of such individual for the taxable year.

16 ‘‘(b) LIMITATIONS.—

17 ‘‘(1) AMOUNT.—The amount determined under

18 subsection (a) with respect to such individual for

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

20 of—

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

22 contribution and benefit base for such taxable

23 year (as determined under section 230 of the

24 Social Security Act), over
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1 ‘‘(B) the sum of the amounts received by

2 the Secretary on behalf of such individual under

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

4 for such taxable year.

5 ‘‘(2) FAILURE TO MAKE VOLUNTARY CONTRIBU6 TIONS.—In the case of a part B eligible individual

7 with respect to whom the amount of wages des8 ignated under section 3101(a)(2)(A)(ii) plus the

9 amount self-employment income designated under

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

11 that $1, the credit to which such individual is enti12 tled under this section shall be equal to zero.

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

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

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

16 year, an individual who—

17 ‘‘(A) is an eligible individual (as defined in

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

19 such calendar year, and

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

21 whom another taxpayer is entitled to a deduc22 tion under section 151(c).

23 ‘‘(2) DESIGNATED WAGES.—The term ‘des24 ignated wages’ means with respect to any taxable
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1 year the amount designated under section

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

3 ‘‘(3) DESIGNATED SELF-EMPLOYMENT IN4 COME.—The term ‘designated self-employment in5 come’ means with respect to any taxable year the

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

7 for such taxable year.

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

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

10 under this section with respect to any part B eligible

11 individual—

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

13 under this part, but

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

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

16 with section 6402(l), only be transferred to an indi17 vidual savings account established under part B of

18 title II of the Social Security Act with respect to

19 such individual.’’.

20 (2) CONTRIBUTION OF CREDITED AMOUNTS TO

21 INDIVIDUAL SAVINGS ACCOUNT.—

22 (A) CREDITED AMOUNTS TREATED AS

23 OVERPAYMENT OF TAX.—Subsection (b) of sec24 tion 6401 of such Code (relating to excessive
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1 credits) is amended by adding at the end the

2 following:

3 ‘‘(3) SPECIAL RULE FOR CREDIT UNDER SEC4 TION 54.—Subject to the provisions of section

5 6402(l), the amount of any credit allowed under sec6 tion 54 for any taxable year shall be considered an

7 overpayment.’’.

8 (B) TRANSFER OF CREDIT AMOUNT TO IN9 DIVIDUAL SAVINGS ACCOUNT.—Section 6402 of

10 such Code (relating to authority to make credits

11 or refunds) is amended by adding at the end

12 the following:

13 ‘‘(l) OVERPAYMENTS ATTRIBUTABLE TO INDIVIDUAL

14 SAVINGS ACCOUNT CREDIT.—In the case of any overpay15 ment described in section 6401(b)(3) with respect to any

16 individual, the Secretary shall transfer for crediting by the

17 Commissioner of Social Security to the individual savings

18 account of such individual, an amount equal to the amount

19 of such overpayment.’’.

20 (3) CONFORMING AMENDMENTS.—

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

22 States Code, is amended by inserting before the

23 period at the end ‘‘, or enacted by the Bipar24 tisan Social Security Reform Act of 2000’’.
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1 (B) The table of subparts for part IV of

2 subchapter A of chapter 1 of the Internal Rev3 enue Code of 1986 is amended by adding at the

4 end the following:

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

5 (4) EFFECTIVE DATE.—The amendments made

6 by this subsection shall apply to refunds payable

7 after December 31, 2000.

8 (d) TAX TREATMENT OF INDIVIDUAL SAVINGS AC9 COUNTS.—

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

11 of the Internal Revenue Code of 1986 (relating to

12 exempt organizations) is amended by adding at the

13 end the following:

14 ‘‘PART IX—INDIVIDUAL SAVINGS FUND AND

15 ACCOUNTS

‘‘Sec. 531. Individual Savings Fund and Accounts.

16 ‘‘SEC. 531. INDIVIDUAL SAVINGS FUND AND ACCOUNTS.

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

18 and individual savings accounts shall be exempt from tax19 ation under this subtitle.

20 ‘‘(b) INDIVIDUAL SAVINGS FUND AND ACCOUNTS

21 DEFINED.—For purposes of this section, the terms ‘Indi22 vidual Savings Fund’ and ‘individual savings account’

23 means the fund and account established under sections
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1 254 and 251, respectively, of part B of title II of the So2 cial Security Act.

3 ‘‘(c) CONTRIBUTIONS.—

4 ‘‘(1) IN GENERAL.—No deduction shall be al5 lowed for contributions credited to an individual sav6 ings account under section 251 of the Social Secu7 rity Act or section 6402(l).

8 ‘‘(2) ROLLOVER OF INHERITANCE.—Any por9 tion of a distribution to an heir from an individual

10 savings account made by reason of the death of the

11 beneficiary of such account may be rolled over to the

12 individual savings account of the heir after such

13 death.

14 ‘‘(d) DISTRIBUTIONS.—

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

16 individual savings account under section 253 of the

17 Social Security Act shall be included in gross income

18 under section 72.

19 ‘‘(2) PERIOD IN WHICH DISTRIBUTIONS MUST

20 BE MADE FROM ACCOUNT OF DECEDENT.—In the

21 case of amounts remaining in an individual savings

22 account from which distributions began before the

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

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

25 such remaining amounts.
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1 ‘‘(3) ROLLOVERS.—Paragraph (1) shall not

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

3 in a direct transfer by the Commissioner of Social

4 Security, under regulations which the Commissioner

5 shall prescribe.’’.

6 (2) CLERICAL AMENDMENT.—The table of

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

8 amended by adding after the item relating to part

9 VIII the following:

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

10 (3) EFFECTIVE DATE.—The amendments made

11 by this subsection shall apply to taxable years begin12 ning after December 31, 2000.

13 SEC. 102. SOCIAL SECURITY KIDSAVE ACCOUNTS.

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

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

16 adding at the end the following:

17 ‘‘PART C—KIDSAVE ACCOUNTS

18 ‘‘KIDSAVE ACCOUNTS

19 ‘‘SEC. 261. (a) ESTABLISHMENT.—The Commis20 sioner of Social Security shall establish in the name of

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

22 KidSave Account upon the later of—

23 ‘‘(1) the date of enactment of this part, or
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1 ‘‘(2) the date of the issuance of a Social Secu2 rity account number under section 205(c)(2) to such

3 individual.

4 The KidSave Account shall be identified to the account

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

6 account number.

7 ‘‘(b) CONTRIBUTIONS.—

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

9 appropriated and are appropriated such sums as are

10 necessary in order for the Secretary of the Treasury

11 to transfer from the general fund of the Treasury

12 for crediting by the Commissioner to each account

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

14 amount equal to the sum of—

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

16 or after January 1, 2001, $1,000, on the date

17 of the establishment of such individual’s

18 KidSave Account, and

19 ‘‘(B) in the case of any individual born on

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

21 2nd, 3rd, 4th, and 5th birthdays of such indi22 vidual occurring on or after January 1, 2001.

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

24 calendar year after 2001, each of the dollar amounts

25 under paragraph (1) shall be increased by the cost-
25

•S 2774 IS

1 of-living adjustment using the wage increase per2 centage determined under section 215(i) for the cal3 endar year.

4 ‘‘(c) DESIGNATIONS REGARDING KIDSAVE AC5 COUNTS.—

6 ‘‘(1) INITIAL DESIGNATIONS OF INVESTMENT

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

8 shall, on behalf of the individual described in sub9 section (a), designate the investment vehicle for the

10 KidSave Account to which contributions on behalf of

11 such individual are to be deposited. Such designation

12 shall be made on the application for such individ13 ual’s Social Security account number.

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

15 The Commissioner shall by regulation provide the

16 time and manner by which an individual or a person

17 described in subsection (d) on behalf of such indi18 vidual may change 1 or more investment vehicles for

19 a KidSave Account.

20 ‘‘(d) TREATMENT OF MINORS AND INCOMPETENT IN21 DIVIDUALS.—Any designation under subsection (c) to be

22 made by a minor, or an individual mentally incompetent

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

24 who is constituted guardian or other fiduciary by the law

25 of the State of residence of the individual or is otherwise
26

•S 2774 IS

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

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

3 mentally incompetent or under other legal disability, may

4 be made to the person who is constituted guardian or

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

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

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

8 or other fiduciary of the individual under legal disability

9 has not been appointed under the law of the State of resi10 dence of the individual, if any other person, in the judg11 ment of the Commissioner, is responsible for the care of

12 such individual, any designation under subsection (c)

13 which may otherwise be made by such individual may be

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

15 is otherwise payable to such individual may be made to

16 such person, and the payment of an annuity payment

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

18 person.

19 ‘‘DEFINITIONS AND SPECIAL RULES

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

21 the term ‘KidSave Account’ means any KidSave Account

22 in the Individual Savings Fund (established under section

23 254) which is administered by the Individual Savings

24 Fund Board.

25 ‘‘(b) TREATMENT OF ACCOUNTS.—
27

•S 2774 IS

1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), any KidSave Account described in sub3 section (a) shall be treated in the same manner as

4 an individual savings account under part B.

5 ‘‘(2) DISTRIBUTIONS.—Notwithstanding any

6 other provision of law, distributions may only be

7 made from a KidSave Account of an individual on

8 or after the earlier of—

9 ‘‘(A) the date on which the individual be10 gins receiving benefits under this title, or

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

12 SEC. 103. ADJUSTMENTS TO PRIMARY INSURANCE

13 AMOUNTS UNDER PART A OF TITLE II OF THE

14 SOCIAL SECURITY ACT.

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

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

17 following:

18 ‘‘Adjustment of Primary Insurance Amount in Relation

19 to Deposits Made to Individual Savings Accounts

20 and KidSave Accounts

21 ‘‘(j)(1) Except as provided in paragraph (2), an indi22 vidual’s primary insurance amount as determined in ac23 cordance with this section (before adjustments made

24 under subsection (i)) shall be equal to—
28

•S 2774 IS

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

2 without the application of this subsection, multiplied

3 by

4 ‘‘(B) 1 minus the ratio of—

5 ‘‘(i) the sum of—

6 ‘‘(I) the total of all amounts which

7 have been credited pursuant to sections

8 3101(a)(2)(A)(i) and 1401(a)(2)(A)(i) of

9 the Internal Revenue Code of 1986 to the

10 individual savings account held by such in11 dividual, plus

12 ‘‘(II) 50 percent of the accumulated

13 value of the KidSave Account (established

14 on behalf of such individual under section

15 261(a)) determined on the date such

16 KidSave Account is redesignated as an in17 dividual savings account held by such indi18 vidual under section 251(a)(1)(B), plus

19 ‘‘(III) accrued interest on such

20 amounts compounded annually up to the

21 date of initial benefit entitlement based on

22 the individual’s earnings, assuming an in23 terest rate equal to the projected interest

24 rate of the Federal Old-Age and Survivors

25 Trust Fund, to
29

•S 2774 IS

1 ‘‘(ii) the expected present value of all fu2 ture benefits paid based on the individual’s

3 earnings, as of the date of initial benefit entitle4 ment based on such earnings, assuming future

5 mortality and interest rates for the Federal

6 Old-Age and Survivors Trust Fund used in the

7 intermediate projections of the most recent

8 Board of Trustees report under section 201.

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

10 to disability insurance benefits under section 223, such in11 dividual’s primary insurance amount shall be determined

12 without regard to paragraph (1).’’.

13 (b) CONFORMING AMENDMENT TO RAILROAD RE14 TIREMENT ACT OF 1974.—Section 1 of the Railroad Re15 tirement Act of 1974 (45 U.S.C. 231) is amended by add16 ing at the end the following:

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

18 Security Act for purposes of determining the amount of

19 the annuity to which an individual is entitled under this

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

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

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

23 this section shall apply with respect to computations and

24 recomputations of primary insurance amounts occurring

25 after December 31, 2000.
30

•S 2774 IS

1 TITLE II—SOCIAL SECURITY

2 SYSTEM ADJUSTMENTS

3 SEC. 201. ADJUSTMENTS TO BEND POINTS IN DETER4 MINING PRIMARY INSURANCE AMOUNTS.

5 (a) ADDITIONAL BEND POINT.—Section

6 215(a)(1)(A) of the Social Security Act (42 U.S.C.

7 415(a)(1)(A)) is amended—

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

9 (2) in clause (iii)—

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

11 ‘‘32 percent’’;

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

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

14 amount established for purposes of this clause

15 by subparagraph (B), and’’; and

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

17 ‘‘(iv) 15 percent of the individual’s average in18 dexed monthly earnings to the extent that such

19 earnings exceed the amount established for purposes

20 of clause (iii),’’.

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

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

23 415(a)(1)(B)(i)) is amended—

24 (1) by striking ‘‘clause (i) and (ii)’’ and insert25 ing ‘‘clauses (i) and (iii)’’; and
31

•S 2774 IS

1 (2) by adding at the end the following: ‘‘For in2 dividuals who initially become eligible for old-age or

3 disability insurance benefits, or who die (before be4 coming eligible for such benefit), in the calendar

5 year 2001, the amount established for purposes of

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

7 197.5 percent of the amount established for pur8 poses of clause (i).’’.

9 (c) ADJUSTMENTS TO PIA FORMULA FACTORS.—

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

11 415(a)(1)(B)) is amended further—

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

13 (2) by inserting after clause (ii) the following:

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

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

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

17 after 2005, effective for such calendar year—

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

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

20 effect under such clause for calendar year 2005 in21 creased the applicable number of times by 3.8 per22 centage points,

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

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

25 in effect under such clause for calendar year 2005
32

•S 2774 IS

1 decreased the applicable number of times by 1.2 per2 centage points, and

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

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

5 in effect under such clause for calendar year 2005

6 decreased the applicable number of times by 0.5 per7 centage points.

8 For purposes of the preceding sentence, the term ‘applica9 ble number of times’ means a number equal to the lesser

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

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

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

13 ‘‘amount’’ and inserting ‘‘dollar amount’’.

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

15 this section shall apply with respect to primary insurance

16 amounts of individuals attaining early retirement age (as

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

18 dying, after December 31, 2000.

19 SEC. 202. ADJUSTMENT OF WIDOWS’ AND WIDOWERS’ IN20 SURANCE BENEFITS.

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

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

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

24 ‘‘equal to the greater of—
33

•S 2774 IS

1 ‘‘(i) the primary insurance amount (as deter2 mined for purposes of this subsection after applica3 tion of subparagraphs (B) and (C)) of such deceased

4 individual, or

5 ‘‘(ii) the lesser of—

6 ‘‘(I) the applicable percentage of the joint

7 benefit which would have been received by the

8 widow or surviving divorced wife and the de9 ceased individual for such month if such indi10 vidual had not died, or

11 ‘‘(II) the benefit which would have been re12 ceived by the widow or surviving divorced wife

13 if such individual’s contributions were based on

14 the maximum contribution and benefit base

15 amount (determined under section 230) for

16 each contribution base year (as determined

17 under section 215(b)(2)(B)(ii)) of such indi18 vidual.

19 For purposes of clause (ii)(I), the applicable percentage

20 is equal to 50 percent in 2001, increased (but not above

21 75 percent) by 1 percentage point in every second year

22 thereafter.’’.

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

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

•S 2774 IS

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

2 inserting ‘‘equal to the greater of—

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

6 individual, or

7 ‘‘(ii) the lesser of—

8 ‘‘(I) the applicable percentage of the joint

9 benefit which would have been received by the

10 widow or surviving divorced wife and the de11 ceased individual for such month if such indi12 vidual had not died, or

13 ‘‘(II) the benefit which would have been re14 ceived by the widower or surviving divorced hus15 band if such individual’s contributions were

16 based on the maximum contribution and benefit

17 base amount (determined under section 230)

18 for each contribution base year (as determined

19 under section 215(b)(2)(B)(ii)) of such indi20 vidual.

21 For purposes of clause (ii)(II), the applicable percentage

22 is equal to 50 percent in 2001, increased (but not above

23 75 percent) by 1 percentage point in every second year

24 thereafter.’’.
35

•S 2774 IS

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

2 this section shall apply individuals entitled to benefits

3 after the date of enactment of this Act.

4 SEC. 203. ELIMINATION OF EARNINGS TEST FOR INDIVID5 UALS WHO HAVE ATTAINED EARLY RETIRE6 MENT AGE.

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

8 Act (42 U.S.C. 403) is amended—

9 (1) in subsection (c)(1), by striking ‘‘retirement

10 age’’ and inserting ‘‘early retirement age’’;

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

12 (d), by striking ‘‘retirement age’’ each place it ap13 pears and inserting ‘‘early retirement age’’;

14 (3) in subsection (f)(1)(B), by striking ‘‘retire15 ment age’’ and inserting ‘‘early retirement age’’;

16 (4) in subsection (f)(3)—

(A) by striking ‘‘331 17 ⁄3 percent’’ and all

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

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

20 earnings for such year in excess of the product

21 of the exempt amount as determined under

22 paragraph (8),’’; and

23 (B) by striking ‘‘retirement age’’ and in24 serting ‘‘early retirement age’’;
36

•S 2774 IS

1 (5) in subsection (f)(5)(D)(i), by striking ‘‘re2 tirement age’’ and inserting ‘‘early retirement age’’;

3 (6) in subsection (f)(9)—

4 (A) by striking ‘‘, (5)(D)(i), and (8)(D)’’

5 and inserting ‘‘and (5)(D)(i)’’; and

6 (B) by striking ‘‘retirement age’’ both

7 places it appears and inserting ‘‘early retire8 ment age’’;

9 (7) in subsection (h)(1)(A), by striking ‘‘retire10 ment age (as defined in section 216(l))’’ each place

11 it appears and inserting ‘‘early retirement age (as

12 defined in section 216(l))’’; and

13 (8) in subsection (j)—

14 (A) in the heading, by striking ‘‘Retire15 ment Age’’ and inserting ‘‘Early Retirement

16 Age’’; and

17 (B) by striking ‘‘having attained retire18 ment age (as defined in section 216(l))’’ and in19 serting ‘‘having attained early retirement age

20 (as defined in section 216(l))’’.

21 (b) CONFORMING AMENDMENTS ELIMINATING THE

22 SPECIAL EXEMPT AMOUNT FOR INDIVIDUALS WHO HAVE

23 ATTAINED AGE 62.—

24 (1) UNIFORM EXEMPT AMOUNT.—Section

25 203(f)(8)(A) of the Social Security Act (42 U.S.C.
37

•S 2774 IS

1 403(f)(8)(A)) is amended by striking ‘‘the new ex2 empt amounts (separately stated for individuals de3 scribed in subparagraph (D) and for other individ4 uals) which are to be applicable’’ and inserting ‘‘a

5 new exempt amount which shall be applicable’’.

6 (2) CONFORMING AMENDMENTS.—Section

7 203(f)(8)(B) of the Social Security Act (42 U.S.C.

8 403(f)(8)(B)) is amended—

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

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

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

12 which is applicable for each month of a par13 ticular taxable year shall be whichever’’;

14 (B) in clauses (i) and (ii), by striking ‘‘cor15 responding’’ each place it appears; and

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

17 exempt amount’’ and inserting ‘‘the exempt

18 amount’’.

19 (3) REPEAL OF BASIS FOR COMPUTATION OF

20 SPECIAL EXEMPT AMOUNT.—Subparagraphs (D)

21 and (E) of section 203(f)(8) of the Social Security

22 Act (42 U.S.C. 403(f)(8)) are repealed.

23 (c) ADDITIONAL CONFORMING AMENDMENTS.—
38

•S 2774 IS

1 (1) ELIMINATION OF REDUNDANT REFERENCES

2 TO RETIREMENT AGE.—Section 203 of the Social

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

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

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

6 that follows and inserting ‘‘nor shall any deduc7 tion be made under this subsection from any

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

9 widow, surviving divorced wife, widower, or sur10 viving divorced husband involved became enti11 tled to such benefit prior to attaining age 60.’’;

12 and

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

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

15 such individual is entitled to widow’s or wid16 ower’s insurance benefits if such individual be17 came so entitled prior to attaining age 60,’’.

18 (2) PROVISIONS RELATING TO EARNINGS

19 TAKEN INTO ACCOUNT IN DETERMINING SUBSTAN20 TIAL GAINFUL ACTIVITY OF BLIND INDIVIDUALS.—

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

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

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

24 Work Act of 1996 had not been enacted’’ and insert25 ing the following: ‘‘if the amendments to section 203
39

•S 2774 IS

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

2 Work Act of 1996 and by the Bipartisan Social Se3 curity Reform Act of 2000 had not been enacted’’.

4 (d) STUDY OF THE EFFECT OF TAKING EARNINGS

5 INTO ACCOUNT IN DETERMINING SUBSTANTIAL GAINFUL

6 ACTIVITY OF DISABLED INDIVIDUALS.—

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

8 2001, the Commissioner of Social Security shall con9 duct a study on the effect that taking earnings into

10 account in determining substantial gainful activity of

11 individuals receiving disability insurance benefits has

12 on the incentive for such individuals to work and

13 submit to Congress a report on the study.

14 (2) CONTENTS OF STUDY.—The study con15 ducted under paragraph (1) shall include the evalua16 tion of—

17 (A) the effect of the current limit on earn18 ings on the incentive for individuals receiving

19 disability insurance benefits to work;

20 (B) the effect of increasing the earnings

21 limit or changing the manner in which disability

22 insurance benefits are reduced or terminated as

23 a result of substantial gainful activity (includ24 ing reducing the benefits gradually when the

25 earnings limit is exceeded) on—
40

•S 2774 IS

1 (i) the incentive to work; and

2 (ii) the financial status of the Federal

3 Disability Insurance Trust Fund;

4 (C) the effect of extending eligibility for

5 the Medicare program to individuals during the

6 period in which disability insurance benefits of

7 the individual are gradually reduced as a result

8 of substantial gainful activity and extending

9 such eligibility for a fixed period of time after

10 the benefits are terminated on—

11 (i) the incentive to work; and

12 (ii) the financial status of the Federal

13 Hospital Insurance Trust Fund and the

14 Federal Supplementary Medical Insurance

15 Trust Fund; and

16 (D) the relationship between the effect of

17 substantial gainful activity limits on blind indi18 viduals receiving disability insurance benefits

19 and other individuals receiving disability insur20 ance benefits.

21 (3) CONSULTATION.—The analysis under para22 graph (2)(C) shall be done in consultation with the

23 Administrator of the Health Care Financing Admin24 istration.
41

•S 2774 IS

1 (e) EFFECTIVE DATE.—The amendments and re2 peals made by subsections (a), (b), and (c) shall apply with

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

4 SEC. 204. GRADUAL INCREASE IN NUMBER OF BENEFIT

5 COMPUTATION YEARS; USE OF ALL YEARS IN

6 COMPUTATION.

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

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

9 (1) in clause (i), by striking ‘‘5 years’’ and in10 serting ‘‘the applicable number of years for purposes

11 of this clause’’; and

12 (2) by striking ‘‘Clause (ii),’’ in the matter fol13 lowing clause (ii) and inserting the following:

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

15 is the number of years specified in connection with the

16 year in which such individual reaches early retirement age

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

18 year in which such individual dies, as set forth in the fol19 lowing table:

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

is:

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

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

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

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

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

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

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

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

After 2009 .......................................................................................... 0.
42

•S 2774 IS

1 Notwithstanding the preceding sentence, the applicable

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

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

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

5 so entitled) who has greater total wages and self-employ6 ment income credited to benefit computation years than

7 the individual. Clause (ii),’’.

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

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

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

11 amended by striking clauses (i) and (ii) and insert12 ing the following:

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

14 2010, the term ‘benefit computation years’ means

15 those computation base years equal in number to the

16 number determined under subparagraph (A) plus

17 the applicable number of years determined under

18 subclause (III), for which the total of such individ19 ual’s wages and self-employment income, after ad20 justment under paragraph (3), is the largest;

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

22 ‘benefit computation years’ means all of the com23 putation base years; and

24 ‘‘(III) for purposes of subclause (I), the applica25 ble number of years is the number of years specified
43

•S 2774 IS

1 in connection with the year in which such individual

2 reaches early retirement age (as defined in section

3 216(l)(2)), or, if earlier, the calendar year in which

4 such individual dies, as set forth in the following

5 table:

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

is:

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

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

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

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

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

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

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

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

2009 ................................................................................................... 4;

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

7 the calendar years after 1950, except that such term

8 excludes any calendar year entirely included in a pe9 riod of disability; and’’.

10 (2) CONFORMING AMENDMENT.—Section

11 215(b)(1)(B) of the Social Security Act (42 U.S.C.

12 415(b)(1)(B)) is amended by striking ‘‘in those

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

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

15 (c) EFFECTIVE DATE.—

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

17 by subsection (a) shall apply with respect to individ18 uals attaining early retirement age (as defined in

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

20 December 31, 2001.
44

•S 2774 IS

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

2 by subsection (b) shall apply to benefit computation

3 years beginning after December 31, 2000.

4 SEC. 205. MAINTENANCE OF BENEFIT AND CONTRIBUTION

5 BASE.

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

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

8 MAINTENANCE OF THE CONTRIBUTION AND BENEFIT

9 BASE

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

11 shall determine and publish in the Federal Register on or

12 before November 1 of each calendar year the contribution

13 and benefit base determined under subsection (b) which

14 shall be effective with respect to remuneration paid after

15 such calendar year and taxable years beginning after such

16 year.

17 ‘‘(b) For purposes of this section, for purposes of de18 termining wages and self-employment income under sec19 tions 209, 211, 213, and 215 of this Act and sections 54,

20 1402, 3121, 3122, 3125, 6413, and 6654 of the Internal

21 Revenue Code of 1986, and for purposes of section

22 4022(b)(3)(B) of Public Law 93–406, the contribution

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

24 taxable years beginning in) any calendar year is an

25 amount equal to 84.5 percent of the total wages and self-
45

•S 2774 IS

1 employment income for the preceding calendar year (with2 in the meaning of section 209).’’.

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

4 this section shall apply to remuneration paid in (and tax5 able years beginning in) any calendar year after 2000.

6 SEC. 206. REDUCTION IN THE AMOUNT OF CERTAIN TRANS7 FERS TO MEDICARE TRUST FUND.

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

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

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

11 Reconciliation Act of 1993, is amended—

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

13 and inserting ‘‘the applicable percentage of the

14 amounts’’; and

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

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

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

18 below zero) by 10 percentage points for each year

19 after 2004.’’.

20 SEC. 207. ACTUARIAL ADJUSTMENT FOR RETIREMENT.

21 (a) EARLY RETIREMENT.—

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

23 Security Act (42 U.S.C. 402(q)) is amended—
46

•S 2774 IS

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

2 and inserting ‘‘the applicable fraction (deter3 mined under paragraph (12))’’; and

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

5 ‘‘(12) For purposes of paragraph (1)(A), the ‘applica6 ble fraction’ for an individual who attains the age of 62

7 in—

‘‘(A) any year before 2001, is 5 8 ⁄9;

‘‘(B) 2001, is 7 9 ⁄12;

‘‘(C) 2002, is 11 10 ⁄18;

‘‘(D) 2003, is 23 11 ⁄36;

‘‘(E) 2004, is 2 12 ⁄3; and

‘‘(F) 2005 or any succeeding year, is 25 13 ⁄36.’’.

14 (2) MONTHS BEYOND FIRST 36 MONTHS.—Sec15 tion 202(q) of such Act (42 U.S.C. 402(q)(9)) (as

16 amended by paragraph (1)) is amended—

17 (A) in paragraph (9)(A), by striking ‘‘five18 twelfths’’ and inserting ‘‘the applicable fraction

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

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

21 ‘‘(13) For purposes of paragraph (9)(A), the ‘applica22 ble fraction’ for an individual who attains the age of 62

23 in—

‘‘(A) any year before 2001, is 5 24 ⁄12;

‘‘(B) 2001, is 16 25 ⁄36;
47

•S 2774 IS

‘‘(C) 2002, is 16 1 ⁄36;

‘‘(D) 2003, is 17 2 ⁄36;

‘‘(E) 2004, is 17 3 ⁄36; and

‘‘(F) 2005 or any succeeding year, is 1 4 ⁄2.’’.

5 (3) EFFECTIVE DATE.—The amendments made

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

7 who attain the age of 62 in years after 2000.

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

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

10 amended—

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

12 the end;

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

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

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

‘‘(E) 17 16 ⁄24 of 1 percent in the case of an indi17 vidual who attains the age of 62 in a calendar year

18 after 2006 and before 2009;

‘‘(F) 3 19 ⁄4 of 1 percent in the case of an indi20 vidual who attains the age of 62 in a calendar year

21 after 2008 and before 2011;

‘‘(G) 19 22 ⁄24 of 1 percent in the case of an indi23 vidual who attains the age of 62 in a calendar year

24 after 2010 and before 2013; and
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‘‘(H) 5 1 ⁄6 of 1 percent in the case of an indi2 vidual who attains the age of 62 in a calendar year

3 after 2012.’’.

4 SEC. 208. IMPROVEMENTS IN PROCESS FOR COST-OF-LIV5 ING ADJUSTMENTS.

6 (a) ANNUAL DECLARATIONS OF PERSISTING UPPER

7 LEVEL SUBSTITUTION BIAS, QUALITY-CHANGE BIAS,

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

9 2000, and annually thereafter, the Commissioner of the

10 Bureau of Labor Statistics shall publish in the Federal

11 Register an estimate of the upper level substitution bias,

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

13 Consumer Price Index, expressed in terms of a percentage

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

15 Price Index determined through the use of a superlative

16 index that accounts for changes that consumers make in

17 the quantities of goods and services consumed.

18 (b) MODIFICATION OF COST-OF-LIVING ADJUST19 MENT.—

20 (1) IN GENERAL.—Notwithstanding any other

21 provision of law, for each calendar year after 2000

22 any cost-of-living adjustment described in subsection

23 (f) shall be further adjusted by the greater of—

24 (A) the applicable percentage point, or
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1 (B) the correction for the upper level sub2 stitution bias, quality-change bias, and new3 product bias (as last published by the Commis4 sioner of the Bureau of Labor Statistics pursu5 ant to subsection (a)).

6 (2) APPLICABLE PERCENTAGE POINT.—For

7 purposes of paragraph (1)(A), the applicable per8 centage point shall be determined in accordance with

9 the following table:

Applicable

Calendar year: Percentage Point:

2001 ......................................................................................... 0.1

2002 ......................................................................................... 0.2

2003 ......................................................................................... 0.3

2004 and thereafter ................................................................. 0.33.

10 (c) FUNDING FOR CPI IMPROVEMENTS.—

11 (1) IN GENERAL.—There is hereby appro12 priated to the Bureau of Labor Statistics in the De13 partment of Labor, for each of fiscal years 2001,

14 2002, and 2003, $60,000,000 for use by the Bureau

15 for the following purposes:

16 (A) Research, evaluation, and implementa17 tion of a superlative index to estimate upper

18 level substitution bias, quality-change bias, and

19 new-product bias in the Consumer Price Index.

20 (B) Expansion of the Consumer Expendi21 ture Survey and the Point of Purchase Survey.
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1 (2) REPORTS.—The Commissioner of the Bu2 reau of Labor Statistics shall submit reports regard3 ing the use of appropriations made under paragraph

4 (1) to the Committee on Appropriations of the

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

7 Committee.

8 (d) INFORMATION SHARING.—The Commissioner of

9 the Bureau of Labor Statistics may secure directly from

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

15 (e) ADMINISTRATIVE ADVISORY COMMITTEE.—The

16 Bureau of Labor Statistics shall, in consultation with the

17 National Bureau of Economic Research, the American

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

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

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

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

4 2000 determined by reference to a percentage change in

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

9 (1) The Internal Revenue Code of 1986.

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

12 case of an individual who attains early retirement

13 age before January 1, 2001).

14 (3) Any other Federal program.

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

19 the following:

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

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

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

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

‘‘For a calendar year— The applicable percentage for

the year is—

After 2001 and before 2020 .......... 0.4 percent

After 2019 and before 2040 .......... 0.53 percent

After 2039 and before 2060 .......... 0.67 percent

After 2059 ..................................... 0.8 percent.’’.

3 SEC. 209. MODIFICATION OF PIA FACTORS TO REFLECT

4 CHANGES IN LIFE EXPECTANCY.

5 (a) MODIFICATION OF PIA FACTORS.—Section

6 215(a)(1) of the Social Security Act (42 U.S.C.

7 415(a)(1)(B)) is amended by redesignating subparagraph

8 (D) as subparagraph (F) and by inserting after subpara9 graph (C) the following:

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

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

12 2005, each of the percentages under clauses (i), (ii), (iii),

13 and (iv) of subparagraph (A) shall be multiplied the appli14 cable number of times by the applicable factor.

15 ‘‘(ii) For purposes of clause (i)—

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

17 means a number equal to the sum of—

18 ‘‘(aa) the number of years beginning with

19 2006 and ending with the earlier of 2016 or the

20 year of initial eligibility; plus

21 ‘‘(bb) if the year of initial eligibility has

22 not occurred, the number of years beginning
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1 with 2023 and ending with the earlier of 2053

2 or the year of initial eligibility; and

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

4 with respect to the first 6 applicable number of

5 times and .997 with respect to the applicable num6 ber of times in excess of 6.

7 ‘‘(E) For any individual who initially becomes eligible

8 for disability insurance benefits in any calendar year after

9 2005, the primary insurance amount for such individual

10 shall be equal to the greater of—

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

12 paragraph, or

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

14 paragraph without regard to subparagraph (D)

15 thereof.’’.

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

17 EXPECTANCY.—

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

19 2001, the Commissioner of Social Security shall sub20 mit to Congress a detailed study plan for evaluating

21 the effects of increases in life expectancy on the ex22 pected level of retirement income from social secu23 rity, pensions, and other sources. The study plan

24 shall include a description of the methodology, data,
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1 and funding that will be required in order to provide

2 to Congress not later than February 15, 2006—

3 (A) an evaluation of trends in mortality

4 and their relationship to trends in health sta5 tus, among individuals approaching eligibility

6 for social security retirement benefits;

7 (B) an evaluation of trends in labor force

8 participation among individuals approaching eli9 gibility for social security retirement benefits

10 and among individuals receiving retirement ben11 efits, and of the factors that influence the

12 choice between retirement and participation in

13 the labor force;

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

15 social security disability program that would re16 duce the impact of changes in the retirement

17 income of workers in poor health or physically

18 demanding occupations;

19 (D) an evaluation of the methodology used

20 to develop projections for trends in mortality,

21 health status, and labor force participation

22 among individuals approaching eligibility for so23 cial security retirement benefits and among in24 dividuals receiving retirement benefits; and
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1 (E) an evaluation of such other matters as

2 the Commissioner deems appropriate for evalu3 ating the effects of increases in life expectancy.

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

5 than February 15, 2006, the Commissioner of Social

6 Security shall provide to Congress an evaluation of

7 the implications of the trends studied under para8 graph (1), along with recommendations, if any, of

9 the extent to which the conclusions of such evalua10 tions indicate that projected increases in life expect11 ancy require modification in the social security dis12 ability program and other income support programs.

13 SEC. 210. MECHANISM FOR REMEDYING UNFORESEEN DE14 TERIORATION IN SOCIAL SECURITY SOL15 VENCY.

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

17 Act (42 U.S.C. 910) is amended—

18 (1) by redesignating subsection (b) as sub19 section (c); and

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

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

22 Trust Fund’’ and inserting the following:

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

24 Federal Old-Age and Survivors Insurance Trust Fund and

25 the Federal Disability Insurance Trust Fund determines
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1 at any time, using intermediate actuarial assumptions,

2 that the balance ratio of either such Trust Fund during

3 any calendar year within the succeeding period of 75 cal4 endar years will attain zero, the Board shall promptly sub5 mit to each House of the Congress and to the President

6 a report setting forth its recommendations for statutory

7 adjustments affecting the receipts and disbursements of

8 such Trust Fund necessary to maintain the balance ratio

9 of such Trust Fund at not less than 20 percent, with due

10 regard to the economic conditions which created such in11 adequacy in the balance ratio and the amount of time nec12 essary to alleviate such inadequacy in a prudent manner.

13 The report shall set forth specifically the extent to which

14 benefits would have to be reduced, taxes under section

15 1401, 3101, or 3111 of the Internal Revenue Code of

16 1986 would have to be increased, or a combination thereof,

17 in order to obtain the objectives referred to in the pre18 ceding sentence.

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

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

21 and submit to Congress and the President recommenda22 tions for statutory adjustments to the disability insurance

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

24 in disability benefits under the Bipartisan Social Security

25 Reform Act of 2000 without reducing the balance ratio
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1 of the Federal Disability Insurance Trust Fund. The

2 Board shall develop such recommendations in consultation

3 with the National Council on Disability, taking into con4 sideration the adequacy of benefits under the program, the

5 relationship of such program with old age benefits under

6 such title, and changes in the process for determining ini7 tial eligibility and reviewing continued eligibility for bene8 fits under such program.

9 ‘‘(2)(A) The President shall, no later than 30 days

10 after the submission of the report to the President, trans11 mit to the Board and to the Congress a report containing

12 the President’s approval or disapproval of the Board’s rec13 ommendations.

14 ‘‘(B) If the President approves all the recommenda15 tions of the Board, the President shall transmit a copy

16 of such recommendations to the Congress as the Presi17 dent’s recommendations, together with a certification of

18 the President’s adoption of such recommendations.

19 ‘‘(C) If the President disapproves the recommenda20 tions of the Board, in whole or in part, the President shall

21 transmit to the Board and the Congress the reasons for

22 that disapproval. The Board shall then transmit to the

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

24 the date of the submission of the original report to the

25 President, a revised list of recommendations.
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1 ‘‘(D) If the President approves all of the revised rec2 ommendations of the Board transmitted to the President

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

4 copy of such revised recommendations to the Congress as

5 the President’s recommendations, together with a certifi6 cation of the President’s adoption of such recommenda7 tions.

8 ‘‘(E) If the President disapproves the revised rec9 ommendations of the Board, in whole or in part, the Presi10 dent shall transmit to the Board and the Congress the

11 reasons for that disapproval, together with such revisions

12 to such recommendations as the President determines are

13 necessary to bring such recommendations within the

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

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

16 the Congress as the President’s recommendations, to17 gether with a certification of the President’s adoption of

18 such recommendations.

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

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

21 the Senate and the House of Representatives, re22 spectively, and as such it is deemed a part of the

23 rules of each House, respectively, but applicable only

24 with respect to the procedure to be followed in that

25 House in the case of a joint resolution described in
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1 subparagraph (B), and it supersedes other rules only

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

3 and

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

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

6 relating to the procedure of that House) at any time,

7 in the same manner, and to the same extent as in

8 the case of any other rule of that House.

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

10 resolution’ means only a joint resolution which is intro11 duced within the 10-day period beginning on the date on

12 which the President transmits the President’s rec13 ommendations, together with the President’s certification,

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

15 paragraph (2), and—

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

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

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

19 recommendations of the President as transmitted on

20 ll pursuant to section 709(a) of the Social Secu21 rity Act, as follows: llll’, the first blank space

22 being filled in with the appropriate date and the sec23 ond blank space being filled in with the statutory ad24 justments contained in the recommendations; and
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1 ‘‘(iii) the title of which is as follows: ‘Joint reso2 lution approving the recommendations of the Presi3 dent regarding social security.’.

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

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

6 shall be referred to the Committee on Ways and Means

7 of the House of Representatives. A joint resolution de8 scribed in subparagraph (B) introduced in the Senate

9 shall be referred to the Committee on Finance of the Sen10 ate.

11 ‘‘(D) If the committee to which a joint resolution de12 scribed in subparagraph (B) is referred has not reported

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

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

15 which the President transmits the recommendation to the

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

17 at the end of such period, discharged from further consid18 eration of such joint resolution, and such joint resolution

19 shall be placed on the appropriate calendar of the House

20 involved.

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

22 which the committee to which such a joint resolution is

23 referred has reported, or has been discharged (under sub24 paragraph (D)) from further consideration of, such a joint

25 resolution, it is in order (even though a previous motion
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1 to the same effect has been disagreed to) for any Member

2 of the respective House to move to proceed to the consider3 ation of the joint resolution. A Member may make the mo4 tion only on the day after the calendar day on which the

5 Member announces to the House concerned the Member’s

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

7 the House of Representatives, the motion may be made

8 without such prior announcement if the motion is made

9 by direction of the committee to which the joint resolution

10 was referred. All points of order against the joint resolu11 tion (and against consideration of the joint resolution) are

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

13 Representatives and is privileged in the Senate and is not

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

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

16 consideration of other business. A motion to reconsider the

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

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

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

20 shall immediately proceed to consideration of the joint res21 olution without intervening motion, order, or other busi22 ness, and the joint resolution shall remain the unfinished

23 business of the respective House until disposed of.

24 ‘‘(ii) Debate on the joint resolution, and on all debat25 able motions and appeals in connection therewith, shall be
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1 limited to not more than 2 hours, which shall be divided

2 equally between those favoring and those opposing the

3 joint resolution. An amendment to the joint resolution is

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

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

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

7 to recommit the joint resolution is not in order. A motion

8 to reconsider the vote by which the joint resolution is

9 agreed to or disagreed to is not in order.

10 ‘‘(iii) Immediately following the conclusion of the de11 bate on a joint resolution described in subparagraph (B)

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

13 if requested in accordance with the rules of the appro14 priate House, the vote on final passage of the joint resolu15 tion shall occur.

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

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

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

19 relating to a joint resolution described in subparagraph

20 (B) shall be decided without debate.

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

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

23 that House receives from the other House a joint resolu24 tion described in subparagraph (B), then the following

25 procedures shall apply:
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1 ‘‘(I) The joint resolution of the other House

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

3 considered in the House receiving it except in the

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

5 ‘‘(II) With respect to a joint resolution de6 scribed in subparagraph (B) of the House receiving

7 the joint resolution, the procedure in that House

8 shall be the same as if no joint resolution had been

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

10 passage shall be on the joint resolution of the other

11 House.

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

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

14 consider the joint resolution that originated in the receiv15 ing House.

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

17 Insurance Trust Fund or the Federal Supplementary

18 Medical Insurance Trust Fund determines as any time

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

20 (b) CONFORMING AMENDMENTS.—

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

22 (42 U.S.C. 910(b)) (as amended by subsection (a) of

23 this section) is amended by striking ‘‘any such’’ and

24 inserting ‘‘either such’’.
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1 (2) Section 709(c) of such Act (42 U.S.C.

2 910(c)) (as redesignated by subsection (a) of this

3 section) is amended by inserting ‘‘or (b)’’ after ‘‘sub4 section (a)’’.

Æ