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directly or through the retention of independent
investment managers;
‘‘(C) adopt bylaws and other rules to govern
its operations;
‘‘(D) employ professional staff, and contract
with outside advisers, including the Railroad Re-
tirement Board, to provide legal, accounting, in-
vestment advisory or management services (com-
pensation for which may be on a fixed contract
fee basis or on such other terms as are customary
for such services), or other services necessary for
the proper administration of the Trust;
‘‘(E) sue and be sued and participate in
legal proceedings, have and use a seal, conduct
business, carry on operations, and exercise its
powers within or without the District of Colum-
bia, form, own, or participate in entities of any
kind, enter into contracts and agreements nec-
essary to carry out its business purposes, lend
money for such purposes, and deal with property
as security for the payment of funds so loaned,
and possess and exercise any other powers ap-
propriate to carry out the purposes of the Trust;
‘‘(F) pay administrative expenses of the
Trust from the assets of the Trust; and
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‘‘(G) transfer money to the disbursing agent
or as otherwise provided in section 7(b)(4), to
pay benefits payable under this Act from the as-
sets of the Trust.’’.
(c) STATE AND LOCAL TAXES.—Section 15(j)(6) of the
Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(6)) is
amended to read as follows:
‘‘(6) STATE AND LOCAL TAXES.—The Trust shall
be exempt from any income, sales, use, property, or
other similar tax or fee imposed or levied by a State,
political subdivision, or local taxing authority. The
district courts of the United States shall have original
jurisdiction over a civil action brought by the Trust
to enforce this subsection and may grant equitable or
declaratory relief requested by the Trust.’’.
(d) FUNDING.—Section 15(j)(8) of the Railroad Re-
tirement Act of 1974 (45 U.S.C. 231n(j)(8)) is repealed.
(e) TRANSFERS.—Section 15A(d)(2) of the Railroad
Retirement Act of 1974 (45 U.S.C. 231n–1(d)(2)) is
amended—
(1) by inserting ‘‘or the Railroad Retirement Ac-
count’’ after ‘‘National Railroad Retirement Invest-
ment Trust’’ the second place it appears;
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(2) by inserting ‘‘or the Railroad Retirement
Board’’ after ‘‘National Railroad Retirement Invest-
ment Trust’’ the third place it appears;
(3) by inserting ‘‘(either directly or through a
commingled account consisting only of such obliga-
tions)’’ after ‘‘United States’’ the first place it ap-
pears; and
(4) in the third sentence, by inserting before the
period at the end the following: ‘‘or to purchase such
additional obligations’’.
(f) CLERICAL AMENDMENTS.—Section 15(j)(5) of the
Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(5)) is
amended—
(1) in subparagraph (B), by striking ‘‘trustee’s’’
each place it appears and inserting ‘‘Trustee’s’’;
(2) in subparagraph (C), by striking ‘‘trustee’’
and ‘‘trustees’’ each place it appears and inserting
‘‘Trustee’’ and ‘‘Trustees’’, respectively; and
(3) in the matter preceding clause (i) of subpara-
graph (D), by striking ‘‘trustee’’ and inserting
‘‘Trustee’’.
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Subtitle D—Amendments Related to
Title XVI
SEC. 430. EXCLUSION FROM INCOME FOR CERTAIN INFRE-
QUENT OR IRREGULAR INCOME AND CERTAIN
INTEREST OR DIVIDEND INCOME.
(a) INFREQUENT
OR IRREGULAR INCOME.—Section
1612(b)(3) of the Social Security Act (42 U.S.C.
1382a(b)(3)) is amended to read as follows—
‘‘(3) in any calendar quarter, the first—
‘‘(A) $60 of unearned income, and
‘‘(B) $30 of earned income,
of such individual (and such spouse, if any) which,
as determined in accordance with criteria prescribed
by the Commissioner of Social Security, is received
too infrequently or irregularly to be included;’’.
(b) 
INTEREST
OR
DIVIDEND
INCOME.—Section
1612(b) of the Social Security Act (42 U.S.C. 1382a(b)) is
amended—
(1) in paragraph (21), by striking ‘‘and’’ at the
end;
(2) in paragraph (22), by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(23) 
interest 
or 
dividend 
income 
from
resources—
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‘‘(A) not excluded under section 1613(a), or
‘‘(B) excluded pursuant to Federal law
other than section 1613(a).’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall be effective with respect to benefits payable for
months in calendar quarters that begin more than 90 days
after the date of the enactment of this Act.
SEC. 431. UNIFORM 9-MONTH RESOURCE EXCLUSION PERI-
ODS.
(a) 
UNDERPAYMENTS
OF
BENEFITS.—Section
1613(a)(7) of the Social Security Act (42 U.S.C.
1382b(a)(7)) is amended—
(1) by striking ‘‘6’’ and inserting ‘‘9’’; and
(2) by striking ‘‘(or to the first 9 months fol-
lowing such month with respect to any amount so re-
ceived during the period beginning October 1, 1987,
and ending September 30, 1989)’’.
(b) 
ADVANCEABLE
TAX
CREDITS.—Section
1613(a)(11) of the Social Security Act (42 U.S.C.
1382b(a)(11)) is amended to read as follows:
‘‘(11) for the 9-month period beginning after the
month in which received—
‘‘(A) notwithstanding section 203 of the
Economic Growth and Tax Relief Reconciliation
Act of 2001, any refund of Federal income taxes
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made to such individual (or such spouse) under
section 24 of the Internal Revenue Code of 1986
(relating to child tax credit) by reason of sub-
section (d) thereof; and
‘‘(B) any refund of Federal income taxes
made to such individual (or such spouse) by rea-
son of section 32 of the Internal Revenue Code
of 1986 (relating to earned income tax credit),
and any payment made to such individual (or
such spouse) by an employer under section 3507
of such Code (relating to advance payment of
earned income credit);’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the date of enactment of this Act,
and shall apply to amounts described in paragraph (7) of
section 1613(a) of the Social Security Act and refunds of
Federal income taxes described in paragraph (11) of such
section, that are received by an eligible individual or eligi-
ble spouse on or after such date.
SEC. 432. ELIMINATION OF CERTAIN RESTRICTIONS ON THE
APPLICATION OF THE STUDENT EARNED IN-
COME EXCLUSION.
(a) IN GENERAL.—Section 1612(b)(1) of the Social Se-
curity Act (42 U.S.C. 1382a(b)(1)) is amended by striking
‘‘a child who’’ and inserting ‘‘under the age of 22 and’’.
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after the first day of such month, bear the same ratio
to the amount of the benefit which would have been
payable to such individual if eligibility had been re-
stored on the first day of such month as the number
of days in such month including and following the
date of restoration of eligibility bears to the total
number of days in such month.’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall be effective with respect to benefits payable for
months that begin on or after 1 year after the date of enact-
ment of this Act.
SEC. 434. REMOVAL OF RESTRICTION ON PAYMENT OF BEN-
EFITS TO CHILDREN WHO ARE BORN OR WHO
BECOME BLIND OR DISABLED AFTER THEIR
MILITARY PARENTS ARE STATIONED OVER-
SEAS.
(a) IN GENERAL.—Section 1614(a)(1)(B)(ii) of the So-
cial Security Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is
amended—
(1) by inserting ‘‘and’’ after ‘‘citizen of the
United States,’’; and
(2) by striking ‘‘, and who,’’ and all that follows
and inserting a period.
(b) EFFECTIVE DATE.—The amendments made by this
section shall be effective with respect to benefits payable for
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months beginning after the date of enactment of this Act,
but only on the basis of an application filed after such date.
SEC. 435. TREATMENT OF EDUCATION-RELATED INCOME
AND RESOURCES.
(a) EXCLUSION FROM INCOME OF GIFTS PROVIDED
FOR TUITION AND OTHER EDUCATION-RELATED FEES.—
Section 1612(b)(7) of the Social Security Act (42 U.S.C.
1382a(b)(7)) is amended by striking ‘‘or fellowship received
for use in paying’’ and inserting ‘‘fellowship, or gift (or
portion of a gift) used to pay’’.
(b) EXCLUSION FROM RESOURCES FOR 9 MONTHS OF
GRANTS, SCHOLARSHIPS, FELLOWSHIPS, OR GIFTS PRO-
VIDED
FOR TUITION
AND OTHER EDUCATION-RELATED
FEES.—Section 1613(a) of the Social Security Act (42
U.S.C. 1382b(a)) (as amended by section 101(c)(2)) is
amended—
(1) in paragraph (13), by striking ‘‘and’’ at the
end;
(2) in paragraph (14), by striking the period
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (14) the fol-
lowing:
‘‘(15) for the 9-month period beginning after the
month in which received, any grant, scholarship, fel-
lowship, or gift (or portion of a gift) used to pay the
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cost of tuition and fees at any educational (including
technical or vocational education) institution.’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to benefits payable for months that begin
more than 90 days after the date of enactment of this Act.
SEC. 436. MONTHLY TREATMENT OF UNIFORMED SERVICE
COMPENSATION.
(a) TREATMENT
OF
PAY
AS
RECEIVED
WHEN
EARNED.—Section 1611(c) of the Social Security Act (42
U.S.C. 1382(c)), as amended by section 435(a), is amended
by adding at the end the following:
‘‘(10) For purposes of this subsection, remuneration for
service performed as a member of a uniformed service may
be treated as received in the month in which it was earned,
if the Commissioner of Social Security determines that such
treatment would promote the economical and efficient ad-
ministration of the program authorized by this title.’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to benefits payable for months that begin
more than 90 days after the date of enactment of this Act.
Attest:
Secretary.