amount which bears the same ratio to the total 
amount of such payment as the portion of so-
cial security benefits included in gross income 
under paragraphs (1) and (2) bears to the total 
amount of such benefits.’’. 
(B) SPECIAL
RULE
RELATING
TO
NON-
RESIDENT
ALIEN
INDIVIDUALS.—Section 
871(a)(3)(A) of such Code is amended by in-
serting ‘‘and of any lump sum payment received 
under section 256(c) of the Social Security Act’’ 
after ‘‘section 86(d))’’. 
(C) TRANSFERS TO TRUST FUNDS.— 
(i) IN
GENERAL.—Paragraph (1) of 
section 121(e) of the Social Security 
Amendments of 1983 (Public Law 98–21; 
42 U.S.C. 401 note) is amended by adding 
at the end the following new subparagraph: 
‘‘(C) There are hereby appropriated to each 
payor fund amounts equivalent to the aggregate in-
crease in tax liabilities under chapter 1 of the Inter-
nal Revenue Code of 1986 which is attributable to 
the application of section 86 and section 871(a)(3) 
of such Code to lump sum payments received under 
section 256(c) of the Social Security Act by individ-
uals entitled to benefits payable from such payor 
fund.’’. 
(ii) CONFORMING AMENDMENT.—Sec-
tion 121(e)(2) of such Act is amended by 
striking ‘‘paragraph (1)(A)’’ and inserting 
‘‘paragraphs (1)(A) and (C)’’. 
(3) SPECIAL RULES RELATING TO DISTRIBU-
TION OF CLOSED ACCOUNT UNDER SECTION 256(F) 
OF SOCIAL SECURITY ACT.—Section 86(a) of such 
Code (as amended by paragraph (2)) is amended by 
adding at the end the following new paragraph: 
‘‘(4) EXTENSION OF PARAGRAPH (2)(B) TO DIS-
TRIBUTIONS OF CLOSED ACCOUNT UNDER SECTION 
256(F) OF SOCIAL SECURITY ACT.—Notwithstanding 
any other provision of this subsection, in the case of 
any amount received pursuant to the closing of an 
account under section 256(f) of the Social Security 
Act, paragraph (2)(B) shall apply to such amounts, 
and for such purposes the amount allocated to the 
investment in the contract shall be zero.’’. 
(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after the end of the calendar year in which this 
Act is enacted.
(c) ESTATE TAX NOT TO APPLY TO ASSETS OF SO-
CIAL SECURITY GUARANTEE ACCOUNTS.— 
(1) IN GENERAL.—Part IV of subchapter A of 
chapter 11 of the Internal Revenue Code of 1986 
(relating to taxable estate) is amended by adding at 
the end the following new section: 
‘‘SEC. 2059. SOCIAL SECURITY GUARANTEE ACCOUNTS. 
‘‘For purposes of the tax imposed by section 2001, 
the value of the taxable estate shall be determined by de-
ducting from the value of the gross estate an amount 
equal to the value of the assets of a Social Security guar-
antee account transferred by the Secretary to the estate 
of the decedent under section 256 of the Social Security 
Act.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for part IV of subchapter A of chapter 11 of 
such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 2059. Social Security guarantee accounts.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to decedents dying in 
or after the calendar year in which this Act is en-
acted.
SEC. 105. ANNUAL ACCOUNT STATEMENTS. 
Section 1143 of the Social Security Act (42 U.S.C. 
1320b–13) is amended by adding at the end the following 
new subsection: 
‘‘Performance of Social Security Guarantee Accounts 
‘‘(d) Beginning not later than 1 year after the date 
of the first deposit is made to an eligible individual’s So-
cial Security guaranty account, each statement provided 
to such eligible individual under this section shall include 
information determined by the Social Security Guarantee 
Board as sufficient to fully inform such eligible individual 
annually of the balance, investment performance, and ad-
ministrative expenses of such account.’’. 
SEC. 106. PROTECTION OF SOCIAL SECURITY SURPLUSES. 
(a) PROTECTION
OF
SOCIAL
SECURITY
SUR-
PLUSES.—Title III of the Congressional Budget Act of 
1974 is amended by adding at the end the following new 
section: 
‘‘LOCK-BOX FOR SOCIAL SECURITY SURPLUSES 
‘‘SEC. 316. (a) LOCK-BOX FOR SOCIAL SECURITY 
SURPLUSES.— 
‘‘(1) CONCURRENT
RESOLUTIONS
ON
THE 
BUDGET.—It shall not be in order in the House of 
Representatives or the Senate to consider any con-
current resolution on the budget, or an amendment 
thereto or conference report thereon, that would set
forth a deficit for any fiscal year for which there is 
a projected net surplus in the Federal Old-Age and 
Survivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund which is attrib-
utable to the Social Security Guarantee Program 
under part B of title II of the Social Security Act. 
‘‘(2) SPENDING
AND
TAX
LEGISLATION.—It 
shall not be in order in the House of Representatives 
or the Senate to consider any bill, joint resolution, 
amendment, motion, or conference report if— 
‘‘(A) the enactment of that bill or resolu-
tion, as reported; 
‘‘(B) the adoption and enactment of that 
amendment; or 
‘‘(C) the enactment of that bill or resolu-
tion in the form recommended in that con-
ference report, 
would cause a deficit for any fiscal year for which 
there is a projected net surplus in the Federal Old- 
Age and Survivors Insurance Trust Fund and the 
Federal Disability Insurance Trust Fund attrib-
utable to the Social Security Guarantee Program 
under part B of title II of the Social Security Act. 
‘‘(b) ENFORCEMENT.—
‘‘(1) BUDGETARY LEVELS WITH RESPECT TO 
CONCURRENT RESOLUTIONS ON THE BUDGET.—For 
purposes of enforcing any point of order under sub-
section (a)(1), the extent to which there is a deficit 
for any fiscal year shall be determined on the basis 
of budgetary aggregates set forth in the later of the 
concurrent resolution on the budget, as reported, or 
in the conference report on the concurrent resolution 
on the budget, adjusted to the maximum extent al-
lowable under all procedures that allow budgetary 
aggregates to be adjusted for legislation that would 
cause a decrease in any surplus or an increase in 
any deficit for any fiscal year covered by the concur-
rent resolution on the budget (other than procedures 
described in paragraph (2)(A)(ii)). 
‘‘(2) CURRENT
LEVELS
WITH
RESPECT
TO 
SPENDING AND TAX LEGISLATION.— 
‘‘(A) IN GENERAL.—For purposes of en-
forcing subsection (a)(2), the extent to which 
there is a deficit for any fiscal year shall be— 
‘‘(i) calculated using the following as-
sumptions— 
‘‘(I) direct spending and revenue 
levels at the baseline levels underlying
the most recently agreed to concur-
rent resolution on the budget; and 
‘‘(II) for the budget year, discre-
tionary spending levels at current law 
levels and, for outyears, discretionary 
spending levels at the baseline levels 
underlying the most recently agreed to 
concurrent resolution on the budget; 
and 
‘‘(ii) adjusted for changes in the sur-
plus or deficit levels set forth in the most 
recently agreed to concurrent resolution on 
the budget pursuant to procedures in such 
resolution that authorize adjustments in 
budgetary aggregates for updated economic 
and technical assumptions in the mid-ses-
sion report of the Director of the Congres-
sional Budget Office. 
Such revisions shall be included in the first cur-
rent level report on the congressional budget 
submitted for publication in the Congressional 
Record after the release of such mid-session re-
port. 
‘‘(c) WAIVER AND APPEAL.—Subsection (a) may be 
waived or suspended in the Senate only by an affirmative
vote of three-fifths of the Members, duly chosen and 
sworn. An affirmative vote of three-fifths of the Members 
of the Senate, duly chosen and sworn, shall be required 
in the Senate to sustain an appeal of the ruling of the 
Chair on a point of order raised under this section.’’. 
(b) CONFORMING AMENDMENT.—The item relating 
to section 316 in the table of contents set forth in section 
1(b) of the Congressional Budget and Impoundment Con-
trol Act of 1974 is amended to read as follows: 
‘‘Sec. 316. Lock-box for social security surpluses.’’. 
TITLE II—BENEFIT UPDATES 
SEC. 201. ELIMINATION OF THE SOCIAL SECURITY EARN-
INGS TEST FOR INDIVIDUALS WHO HAVE AT-
TAINED AGE 62. 
(a) IN GENERAL.—Section 203 of the Social Security 
Act (42 U.S.C. 403) is amended— 
(1) in subsection (c)(1), by striking ‘‘retirement 
age (as defined in section 216(l))’’ and inserting 
‘‘the age of 62’’; 
(2) in clause (B) of the last sentence of sub-
section (f)(1), by striking ‘‘retirement age (as de-
fined in section 216(l))’’ and inserting ‘‘the age of 
62’’; 
(3) in subsection (f)(3), by striking ‘‘retirement 
age (as defined in section 216(l))’’ and inserting 
‘‘the age of 62’’;
(4) in subsection (h)(1)(A), by striking ‘‘retire-
ment age (as defined in section 216(l))’’ each place 
it appears and inserting ‘‘the age of 62’’; and 
(5) in subsection (j)— 
(A) in the heading, by striking ‘‘retirement 
age’’ and inserting ‘‘Age 62’’; and 
(B) by striking ‘‘retirement age (as defined 
in section 216(l))’’ and inserting ‘‘the age of 
62’’. 
(b) CONFORMING AMENDMENTS ELIMINATING THE 
SPECIAL EXEMPT AMOUNT FOR YEAR OF ATTAINING RE-
TIREMENT AGE.— 
(1) 
UNIFORM
EXEMPT
AMOUNT.—Section 
203(f)(8)(A) of such Act (42 U.S.C. 403(f)(8)(A)) is 
amended by striking ‘‘the new exempt amounts (sep-
arately stated for individuals described in subpara-
graph (D) and for other individuals) which are to be 
applicable’’ and inserting ‘‘a new exempt amount 
which shall be applicable’’. 
(2) 
CONFORMING
AMENDMENTS.—Section 
203(f)(8)(B) of such Act (42 U.S.C. 403(f)(8)(B)) 
is amended— 
(A) in the matter preceding clause (i), by 
striking ‘‘Except’’ and all that follows through 
‘‘whichever’’ and inserting ‘‘The exempt amount
which is applicable for each month of a par-
ticular taxable year shall be whichever’’; 
(B) in clause (i), by striking ‘‘cor-
responding’’; 
(C) in clause (ii)— 
(i) by striking ‘‘the product’’ and all 
that follows through ‘‘other individuals), 
and’’ and inserting ‘‘the product derived by 
multiplying the exempt amount which is in 
effect with respect to months in the tax-
able year ending after 1993 and before 
1995, by’’; and 
(ii) by striking subclause (II) and in-
serting the following: 
‘‘(II) the national average wage index 
(as so defined) for 1992,’’; and 
(D) in the last sentence, by striking ‘‘an 
exempt amount’’ and inserting ‘‘the exempt 
amount’’. 
(3) REPEAL OF BASIS FOR COMPUTATION OF 
SPECIAL
EXEMPT
AMOUNT.—Subparagraphs (D) 
and (E) of section 203(f)(8) of such Act (42 U.S.C. 
(f)(8)(D), (E)) are repealed. 
(c) ADDITIONAL CONFORMING AMENDMENTS.—
(1) Section 203 of such Act (42 U.S.C. 403) is 
amended— 
(A) in subsection (b)(1)— 
(i) by striking ‘‘(b)(1) Deductions’’ 
and inserting ‘‘(b) Deductions’’; 
(ii) by striking ‘‘and from any pay-
ment or payments to which any other per-
sons are entitled on the basis of such indi-
vidual’s wages and self-employment in-
come,’’; 
(iii) by striking ‘‘until the total’’ and 
all that follows through ‘‘if for such 
month’’ and inserting the following: ‘‘until 
the total of such deductions equals such in-
dividual’s benefit or benefits under section 
202 for any month, if for such month’’; 
(iv) by striking ‘‘total of benefits re-
ferred to in clauses (A) and (B)’’ and in-
serting ‘‘the total of such benefits’’; and 
(v) by striking ‘‘If a child’’ and all 
that follows through ‘‘have been made.’’; 
(B) by striking subsection (b)(2); 
(C) by striking subsection (d); 
(D) in subsection (f)(1), by striking ‘‘The 
amount of’’ and all that follows through ‘‘Not-