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‘‘(A) IN GENERAL.—The requirements of
this paragraph are met with respect to service
if such service is performed—
‘‘(i) by an individual who is employed
by a State or political subdivision thereof
to relieve such individual from unemploy-
ment,
‘‘(ii) in a hospital, home, or other in-
stitution by a patient or inmate thereof as
an employee of a State or political subdivi-
sion thereof or of the District of Columbia,
‘‘(iii) by an individual, as an employee
of a State or political subdivision thereof
or of the District of Columbia, serving on
a temporary basis in case of fire, storm,
snow, earthquake, flood, or other similar
emergency,
‘‘(iv) by any individual as an employee
included under section 5351(2) of title 5,
United States Code (relating to certain in-
terns, student nurses, and other student
employees of hospitals of the District of
Columbia Government), other than as a
medical or dental intern or a medical or
dental resident in training.
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‘‘(v) by an election official or election
worker if the remuneration paid in a cal-
endar year for such service is less than
$1,000 with respect to service performed
during 2000, and the adjusted amount de-
termined under section 210(s)(3)(C) of the
Social Security Act for any subsequent
year with respect to service performed dur-
ing such subsequent year, except to the ex-
tent that service by such election official or
election worker is included in employment
under an agreement under section 218 of
the Social Security Act, or
‘‘(vi) by an employee in a position
compensated solely on a fee basis which is
treated pursuant to section 1402(c)(2)(E)
as a trade or business for purposes of in-
clusion of such fees in net earnings from
self-employment.
‘‘(B) DEFINITIONS.—As used in this para-
graph, the terms ‘State’ and ‘political subdivi-
sion’ have the meanings given those terms in
section 218(b) of the Social Security Act.’’.
(3) CONFORMING AMENDMENTS.—
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(A) Subsection (j) of such section 3121
(relating to covered transportation service) is
repealed.
(B) Paragraph (2) of section 3121(u) of
such Code (relating to application of hospital
insurance tax to Federal, State, and local em-
ployment) is amended—
(i) in subparagraph (B), by striking
‘‘service is performed’’ in clause (ii) and all
that follows through the end of such sub-
paragraph and inserting ‘‘service is service
described in subsection (t)(3)(A).’’; and
(ii) in subparagraph (C)(i), by insert-
ing ‘‘under subsection (b)(7) as in effect in
July 1996’’ after ‘‘chapter’’.
(c) EFFECTIVE DATE.—Except as otherwise provided
in this section, the amendments made by this section shall
apply with respect to service performed after December
31, 1997.
SEC. 610. ADJUSTMENTS IN FORMULA FOR DETERMINING
PRIMARY INSURANCE AMOUNT.
(a) ADDITIONAL
EARNINGS
BRACKET.—Section
215(a)(1)(A) of the Social Security Act (42 U.S.C.
415(a)(1)(A)) is amended—
(1) in clause (ii), by striking ‘‘and’’;
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(2) in clause (iii), by striking ‘‘clause (ii),’’ and
inserting the following: ‘‘clause (ii), but, in the case
of an individual who initially becomes eligible for
old-age insurance benefits (other than solely by rea-
son of prior entitlement to disability insurance bene-
fits), or who dies (before becoming eligible for such
benefits), after calendar year 2001, do not exceed
the amount established for purposes of this clause
by subparagraph (B), and’’; and
(3) by inserting after clause (iii) the following
new clause:
‘‘(iv) in the case of an individual who initially
becomes eligible for old-age insurance benefits (other
than solely by reason of prior entitlement to disabil-
ity insurance benefits), or who dies (before becoming
eligible for such benefits), after calendar year 2001,
10 percent of the individual’s average indexed
monthly earnings to the extent that such earnings
exceed the amount established for purposes of clause
(iii),’’.
(b) BEND POINT AMOUNTS.—Section 215(a)(1)(B)
of the Social Security Act (42 U.S.C. 415(a)(1)(B)) is
amended—
(1) in clause (ii), by inserting ‘‘and before
2002’’ after ‘‘1979’’ the first place it appears, and
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by striking ‘‘by dividing—’’and all that follows and
inserting ‘‘under clause (ix) of this subparagraph.’’;
(2) by redesignating clause (iii) as clause (xii);
(3) by inserting after clause (ii) the following
new clauses:
‘‘(iii) For individuals who initially become eligible for
old-age insurance benefits (other than solely by reason of
prior entitlement to disability insurance benefits), or who
die (before becoming eligible for such benefits), in any cal-
endar year after 2001, the amount established for pur-
poses of clause (i) of subparagraph (A) shall be an amount
equal to the product of the following factors:
‘‘(I) the amount established with respect to cal-
endar year 1979 under clause (i) of this subpara-
graph for purposes of clause (i) of subparagraph
(A), and
‘‘(II) the quotient obtained under clause (ix) of
this subparagraph.
‘‘(iv) For individuals who initially become eligible for
old-age insurance benefits (other than solely by reason of
prior entitlement to disability insurance benefits), or who
die (before becoming eligible for such benefits), in any cal-
endar year after 2001 and before 2026, the amount estab-
lished for purposes of clause (ii) of subparagraph (A) shall
be an amount equal to the product of the following factors: