(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after December 31, 2005. 
(b) EXCLUSION OF INDIVIDUAL INVESTMENT PRO-
GRAM PARTICIPANTS FROM INSURANCE BENEFITS.—Sec-
tion 215 of the Social Security Act (42 U.S.C. 415) is 
amended by adding at the end the following new sub-
section: 
‘‘(j) EXCLUSION OF INDIVIDUAL INVESTMENT PRO-
GRAM PARTICIPANTS.—(1) Except as provided in para-
graph (3), a participant (as defined in section 251(1)) in 
the Individual Social Security Investment Program under 
part B shall not be credited with wages or self-employment 
income under this part for purposes of determining bene-
fits under the old-age, survivors, and disability insurance 
program under this part. 
‘‘(2) In the case of an individual who becomes a par-
ticipant under part B pursuant to an election filed under 
section 259, paragraph (1) shall apply with respect to 
wages paid in calendar years beginning on or after the 
effective date of the election and with respect to self-em-
ployment income derived in taxable years ending after 
such date. 
‘‘(3)(A) Paragraph (1) shall not apply in connection 
with the determination of any such participant’s entitle-
ment to disability insurance benefits under section 223(a), 
the determination of such participant’s primary insurance 
amount in connection with such entitlement, and the de-
termination during such entitlement of benefits based on 
such participant’s wages and self-employment income. 
‘‘(B) In any case in which the first month of such 
participant’s entitlement to old-age insurance benefits 
under section 202(a) immediately follows the last month 
of such participant’s entitlement to disability insurance 
benefits, during such participant’s entitlement to old-age 
insurance benefits, such participant’s primary insurance 
amount shall not be less than the excess of—
‘‘(i) 
such 
participant’s 
primary 
insurance 
amount, determined as if paragraph (1) did not 
apply, over 
‘‘(ii) the monthly payment which would be pay-
able to such participant under a life annuity under 
section 256(c) commencing with such first month of 
entitlement and providing for a series of substan-
tially equal annual payments over the life expectancy 
of the participant. 
‘‘(4) Paragraph (1) shall not apply in connection with 
the determination of child’s insurance benefits under sec-
tion 202(d) or mother’s or father’s insurance benefits
under section 202(g) based on such participant’s wages 
and self-employment income.’’. 
SEC. 4. CPI-INDEXED BENEFITS FOR PART A BENE-
FICIARIES OTHER THAN DISABILITY BENE-
FICIARIES. 
(a) COMPUTATION
OF
BEND
POINTS.—Section 
215(a)(1)(B) of the Social Security Act (42 U.S.C. 
415(a)(1)(B)) is amended—
(1) by redesignating clause (iii) as clause (vi); 
(2) in clause (ii), by striking ‘‘For individuals’’ 
and inserting ‘‘Subject to clause (iii), for individ-
uals’’; 
(3) by inserting after clause (ii) the following 
new clauses: 
‘‘(iii) For individuals who initially become eligible for 
old-age insurance benefits, or who die (before becoming 
eligible for such benefits), in any calendar year after 2013, 
each of the amounts so established under the preceding 
provisions of this subparagraph shall be equal to the prod-
uct derived by multiplying such amount (as determined 
before the application of this clause) by the quotient de-
rived by dividing—
‘‘(I) the applicable change in the CPI for the 
first of the 2 preceding calendar years, by