‘‘Required Estimates of Benefits’’;
(B) by striking ‘‘(c)(1) By not later’’ and
all that follows through ‘‘With respect to’’ in
paragraph (2) and inserting ‘‘(b) With respect
to’’; and
(C) by adding at the end the following new
sentence: ‘‘The Commissioner shall provide such
estimates of retirement benefit amounts to eligi-
ble individuals who have not attained age 50
upon request.’’; and
(10) by adding at the end the following new
subsection:
‘‘Inclusion of Statements to Retirees with Other Mailings
‘‘(c) The Commissioner of Social Security shall en-
sure that statements provided to eligible individuals who
are receiving benefits under title II are included to the
maximum extent practicable with mailings otherwise made
to such individuals. The Commissioner shall consult with
the Secretary of the Treasury in carrying out the require-
ment of this subsection and such Secretary shall provide
such appropriate assistance to the Commissioner as is nec-
essary to carry out such requirements.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply with respect to statements pro-
vided on or after October 1, 1996.
SEC. 205. COVERAGE OF NEWLY HIRED STATE AND LOCAL
EMPLOYEES.
(a) AMENDMENTS TO THE SOCIAL SECURITY ACT.—
(1) IN
GENERAL.—Paragraph (7) of section
210(a) of the Social Security Act (42 U.S.C.
410(a)(7)) is amended to read as follows:
‘‘(7) Excluded State or local government em-
ployment (as defined in subsection (s));’’.
(2) EXCLUDED STATE OR LOCAL GOVERNMENT
EMPLOYMENT.—
(A) IN
GENERAL.—Section 210 of such
Act (42 U.S.C. 410) is amended by adding at
the end the following new subsection:
‘‘Excluded State or Local Government Employment
‘‘(s)(1) IN GENERAL.—The term ‘excluded State or
local government employment’ means any service per-
formed in the employ of a State, of any political subdivi-
sion thereof, or of any instrumentality of any one or more
of the foregoing which is wholly owned thereby, if—
‘‘(A)(i) such service would be excluded from the
term ‘employment’ for purposes of this title if the
preceding provisions of this section as in effect in
March 1997 had remained in effect, and (ii) the re-
quirements of paragraph (2) are met with respect to
such service, or
‘‘(B) the requirements of paragraph (3) are met
with respect to such service.
‘‘(2) EXCEPTION FOR CURRENT EMPLOYMENT WHICH
CONTINUES.—
‘‘(A) IN GENERAL.—The requirements of this
paragraph are met with respect to service for any
employer if—
‘‘(i) such service is performed by an indi-
vidual—
‘‘(I) who was performing substantial
and regular service for remuneration for
that employer before January 1, 1998,
‘‘(II) who is a bona fide employee of
that employer on December 31, 1997, and
‘‘(III) whose employment relationship
with that employer was not entered into
for purposes of meeting the requirements
of this subparagraph, and
‘‘(ii) the employment relationship with that
employer has not been terminated after Decem-
ber 31, 1997.
‘‘(B) TREATMENT OF MULTIPLE AGENCIES AND
INSTRUMENTALITIES.—For purposes of subpara-
graph (A), under regulations (consistent with regula-
tions established under section 3121(t)(2)(B) of the
Internal Revenue Code of 1986)—
‘‘(i) all agencies and instrumentalities of a
State (as defined in section 218(b)) or of the
District of Columbia shall be treated as a single
employer, and
‘‘(ii) all agencies and instrumentalities of a
political subdivision of a State (as so defined)
shall be treated as a single employer and shall
not be treated as described in clause (i).
‘‘(3) EXCEPTION FOR CERTAIN SERVICES.—
‘‘(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 unemployment,
‘‘(ii) in a hospital, home, or other institu-
tion by a patient or inmate thereof as an em-
ployee of a State or political subdivision 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 in-
cluded under section 5351(2) of title 5, United
States Code (relating to certain interns, student
nurses, and other student employees of hos-
pitals of the District of Columbia Government),
other than as a medical or dental intern or a
medical or dental resident in training,
‘‘(v) by an election official or election
worker if the remuneration paid in a calendar
year for such service is less than $1,000 with
respect to service performed during 1998, and
the adjusted amount determined under sub-
paragraph (C) for any subsequent year with re-
spect to service performed during such subse-
quent year, except to the extent that service by
such election official or election worker is in-
cluded in employment under an agreement
under section 218, or
‘‘(vi) by an employee in a position com-
pensated solely on a fee basis which is treated
pursuant to section 211(c)(2)(E) as a trade or
business for purposes of inclusion of such fees
in net earnings from self-employment.
‘‘(B) DEFINITIONS.—As used in this para-
graph, the terms ‘State’ and ‘political subdivision’
have the meanings given those terms in section
218(b).
‘‘(C) ADJUSTMENTS TO DOLLAR AMOUNT FOR
ELECTION OFFICIALS AND ELECTION WORKERS.—
For each year after 1998, the Commissioner of So-
cial Security shall adjust the amount referred to in
subparagraph (A)(v) at the same time and in the
same 
manner 
as 
is 
provided 
under 
section
215(a)(1)(B)(ii) with respect to the amounts re-
ferred to in section 215(a)(1)(B)(i), except that—
‘‘(i) for purposes of this subparagraph,
1995 shall be substituted for the calendar year
referred to in section 215(a)(1)(B)(ii)(II), and
‘‘(ii) such amount as so adjusted, if not a
multiple of $100, shall be rounded to the next
higher multiple of $100 where such amount is
a multiple of $50 and to the nearest multiple
of $100 in any other case.
The Commissioner of Social Security shall determine
and publish in the Federal Register each adjusted
amount determined under this subparagraph not
later than November 1 preceding the year for which
the adjustment is made.’’.
(B) CONFORMING AMENDMENTS.—
(i) Subsection (k) of section 210 of
such Act (42 U.S.C. 410(k)) (relating to
covered transportation service) is repealed.
(ii) Section 210(p) of such Act (42
U.S.C. 410(p)) is amended—
(I) in paragraph (2), by striking
‘‘service is performed’’ and all that
follows and inserting ‘‘service is serv-
ice described in subsection (s)(3)(A).’’;
and
(II) in paragraph (3)(A), by in-
serting ‘‘under subsection (a)(7) as in
effect in December 1997’’ after ‘‘sec-
tion’’.
(iii) Section 218(c)(6) of such Act (42
U.S.C. 418(c)(6)) is amended—
(I) by striking subparagraph (C);
(II) by redesignating subpara-
graphs (D) and (E) as subparagraphs
(C) and (D), respectively; and
(III) by striking subparagraph
(F) and inserting the following:
‘‘(E) service which is included as employment
under section 210(a).’’
(b) AMENDMENTS
TO
THE INTERNAL REVENUE
CODE OF 1986.—
(1) IN
GENERAL.—Paragraph (7) of section
3121(b) of the Internal Revenue Code of 1986 (re-
lating to employment) is amended to read as follows:
‘‘(7) excluded State or local government em-
ployment (as defined in subsection (t));’’.
(2) EXCLUDED STATE OR LOCAL GOVERNMENT
EMPLOYMENT.—Section 3121 of such Code is
amended by inserting after subsection (s) the follow-
ing new subsection:
‘‘(t) EXCLUDED STATE OR LOCAL GOVERNMENT EM-
PLOYMENT.—
‘‘(1) IN GENERAL.—For purposes of this chap-
ter, the term ‘excluded State or local government
employment’ means any service performed in the
employ of a State, of any political subdivision there-
of, or of any instrumentality of any one or more of
the foregoing which is wholly owned thereby, if—
‘‘(A)(i) such service would be excluded
from the term ‘employment’ for purposes of this
chapter if the provisions of subsection (b)(7) as
in effect in December 1997 had remained in ef-
fect, and (ii) the requirements of paragraph (2)
are met with respect to such service, or
‘‘(B) the requirements of paragraph (3)
are met with respect to such service.
‘‘(2) EXCEPTION FOR CURRENT EMPLOYMENT
WHICH CONTINUES.—
‘‘(A) IN GENERAL.—The requirements of
this paragraph are met with respect to service
for any employer if—
‘‘(i) such service is performed by an
individual—
‘‘(I) who was performing sub-
stantial and regular service for remu-
neration for that employer before Jan-
uary 1, 1998,
‘‘(II) who is a bona fide employee
of that employer on December 31,
1997, and
‘‘(III) whose employment rela-
tionship with that employer was not
entered into for purposes of meeting
the requirements of this subpara-
graph, and
‘‘(ii) the employment relationship with
that employer has not been terminated
after December 31, 1997.
‘‘(B) TREATMENT OF MULTIPLE AGENCIES
AND
INSTRUMENTALITIES.—For purposes of
subparagraph (A), under regulations—
‘‘(i) all agencies and instrumentalities
of a State (as defined in section 218(b) of
the Social Security Act) or of the District
of Columbia shall be treated as a single
employer, and
‘‘(ii) all agencies and instrumentalities
of a political subdivision of a State (as so
defined) shall be treated as a single em-
ployer and shall not be treated as de-
scribed in clause (i).
‘‘(3) EXCEPTION FOR CERTAIN SERVICES.—
‘‘(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,
‘‘(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 1998, 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.—
(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
December 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. 206. PHASED REDUCTION IN SPOUSAL BENEFITS
OTHER THAN SURVIVOR’S BENEFITS TO 33
PERCENT OF PRIMARY INSURANCE AMOUNT.
(a) 
WIFE’S
INSURANCE
BENEFITS.—Section
202(b)(2) of the Social Security Act (42 U.S.C. 402(b)(2))
is amended to read as follows:
‘‘(2)(A) Except as provided in subsection (q) and
paragraph (4) of this subsection, such wife’s insurance
benefit for each month shall be equal to the applicable per-
centage of the primary insurance amount of her husband
(or, in the case of a divorced wife, her former husband)
in connection with the calendar year in which such individ-
ual becomes eligible for such benefit, as specified in the
following table:
‘‘If 
the 
calendar 
year 
in
which the individual be-
comes eligible is:
The applicable percentage shall
be:
Before calendar year 2000 ................................................
50 percent
Calendar year 2000 ...........................................................
49 percent
Calendar year 2001 ...........................................................
48 percent
Calendar year 2002 ...........................................................
47 percent
Calendar year 2003 ...........................................................
46 percent
Calendar year 2004 ...........................................................
45 percent
‘‘If 
the 
calendar 
year 
in
which the individual be-
comes eligible is:
The applicable percentage shall
be:
Calendar year 2005 ...........................................................
44 percent
Calendar year 2006 ...........................................................
43 percent
Calendar year 2007 ...........................................................
42 percent
Calendar year 2008 ...........................................................
41 percent
Calendar year 2009 ...........................................................
40 percent
Calendar year 2010 ...........................................................
39 percent
Calendar year 2011 ...........................................................
38 percent
Calendar year 2012 ...........................................................
37 percent
Calendar year 2013 ...........................................................
36 percent
Calendar year 2014 ...........................................................
35 percent
Calendar year 2015 ...........................................................
34 percent
After calendar year 2015 ..................................................
33 percent.’’.
‘‘(B) For purposes of subparagraph (A)—
‘‘(i) an individual shall be treated as eligible for
a wife’s insurance benefit if such individual meets
the requirements of subparagraphs (B), (C), and
(D) of paragraph (1), and
‘‘(ii) in determining when an individual becomes
eligible for a wife’s insurance benefit, any break in
eligibility of less than 12 consecutive months shall
not be taken into account.’’.
(b) HUSBAND’S
INSURANCE
BENEFITS.—Section
202(c)(3) of such Act (42 U.S.C. 402(c)(3)) is amended
to read as follows:
‘‘(3)(A) Except as provided in subsection (q) and
paragraph (2) of this subsection, such husband’s insur-
ance benefit for each month shall be equal to the applica-
ble percentage of the primary insurance amount of his wife
(or, in the case of a divorced husband, his former wife)
in connection with the calendar year in which such individ-
ual becomes eligible for such benefit, as specified in the
following table:
‘‘If 
the 
calendar 
year 
in
which the individual be-
comes eligible is:
The applicable percentage shall
be:
Before calendar year 2000 ................................................
50 percent
Calendar year 2000 ...........................................................
49 percent
Calendar year 2001 ...........................................................
48 percent
Calendar year 2002 ...........................................................
47 percent
Calendar year 2003 ...........................................................
46 percent
Calendar year 2004 ...........................................................
45 percent
Calendar year 2005 ...........................................................
44 percent
Calendar year 2006 ...........................................................
43 percent
Calendar year 2007 ...........................................................
42 percent
Calendar year 2008 ...........................................................
41 percent
Calendar year 2009 ...........................................................
40 percent
Calendar year 2010 ...........................................................
39 percent
Calendar year 2011 ...........................................................
38 percent
Calendar year 2012 ...........................................................
37 percent
Calendar year 2013 ...........................................................
36 percent
Calendar year 2014 ...........................................................
35 percent
Calendar year 2015 ...........................................................
34 percent
After calendar year 2015 ..................................................
33 percent.’’.
‘‘(B) For purposes of subparagraph (A)—
‘‘(i) an individual shall be treated as eligible for
a husband’s insurance benefit if such individual
meets the requirements of subparagraphs (B), (C),
and (D) of paragraph (1), and
‘‘(ii) in determining when an individual becomes
eligible for a husband’s insurance benefit, any break
in eligibility of less than 12 consecutive months shall
not be taken into account.’’.
Æ