‘‘(A) LIFETIME OPTION.—Distributions in
equal annual or more frequent periodic install-
ments payable to the account holder in equal
annual or more frequent periodic installments
over the life of the account holder. The trustee
of the account shall be liable under the terms
of the account to the account holder for the
timely payment of such periodic payments.
‘‘(B) NONLIFETIME OPTION.—
‘‘(i) IN
GENERAL.—Distributions in
equal annual or more frequent periodic in-
stallments of interest only, or of interest
and principal. Any such payment of equal
installments shall continue until—
‘‘(I) payment ceases at the direc-
tion of the account holder to the
trustee,
‘‘(II) payment continues in ac-
cordance with this subparagraph but
at an adjusted level at the direction of
the account holder to the trustee, or
‘‘(III) the distribution converts to
an option described in subparagraph
(A) at the direction of the account
holder to the trustee.
‘‘(ii) LIMITATIONS.—Payments from
the account under a distribution described
in clause (i) shall be limited as of any date
to the extent necessary to ensure that
funds in the account are sufficient at all
times to provide a monthly payment over
the life expectancy of the account holder
(determined under reasonable actuarial as-
sumptions) which, when added to the ac-
count holder’s monthly benefit under part
A (if any), is at least equal to an amount
equal to 1⁄12 of the poverty line (as defined
in section 673(2) of the Community Serv-
ices Block Grant Act (42 U.S.C. 9902(2))
and determined on such date for a family
of the size involved).
‘‘(C) ADDITIONAL OPTIONS.—Distributions
in any other manner permitted under regula-
tions prescribed by the Secretary.
‘‘(e) ACCOUNT EXEMPT FROM TAX.—
‘‘(1) GENERAL RULE.—Any personal retirement
savings account is exempt from taxation under this
subtitle. Notwithstanding the preceding sentence,
any such account is subject to the taxes imposed by
section 511 (relating to imposition of tax on unre-
lated business income of charitable, etc. organiza-
tions).
‘‘(2) APPLICATION
OF
PROHIBITED
TRANS-
ACTIONS RULES, ETC.—Rules similar to the rules of
paragraphs (2), (3), and (4) of section 408(e) shall
apply to personal retirement savings accounts.
‘‘(f) DISTRIBUTIONS TAXED AS IF SOCIAL SECURITY
BENEFITS.—
‘‘(1) GENERAL RULE.—Amounts paid or dis-
tributed from a personal retirement savings account
shall be includible in gross income only if so includ-
ible under section 86, determined by treating such
amounts as social security benefits (as defined in
such section).
‘‘(2) TRUSTEE-TO-TRUSTEE
TRANSFERS.—No
amount shall be includible in gross income by reason
of a direct trustee-to-trustee transfer between per-
sonal retirement savings accounts of the same indi-
vidual.
‘‘(3) RETURN
OF
EXCESS
CONTRIBUTIONS.—
Paragraph (1) shall not apply to the distribution of
any contribution (other than a deposit made under
section 251(c) of the Social Security Act) made dur-
ing a taxable year to the extent that such contribu-
tion exceeds the dollar amount specified in sub-
section (b)(1)(B) if—
‘‘(A) such distribution is received on or be-
fore the last day prescribed by law (including
extensions) for filing such individual’s return
for such taxable year,
‘‘(B) such contribution is not taken into
account in determining the deduction allowed
under section 222, and
‘‘(C) such distribution is accompanied by
the amount of net income attributable to such
contribution.
Any net income described in subparagraph (C) shall
be included in gross income for the taxable year in
which such contribution is made.
‘‘(g) CERTAIN OTHER RULES TO APPLY.—The fol-
lowing rules shall apply to personal retirement savings ac-
counts in the same manner that such rules apply to indi-
vidual retirement accounts:
‘‘(1) Section 408(h) (relating to custodial ac-
counts).
‘‘(2) Section 408(i) (relating to reports).
‘‘(h) TREATMENT
AFTER
DEATH
OF
ACCOUNT
HOLDER.—A personal retirement savings account shall
cease to be such on the date of the account holder’s death,
but no amount shall be includible in gross income by rea-
son of such cessation.’’
(c) DEDUCTION ALLOWED WHETHER OR NOT TAX-
PAYER ITEMIZES OTHER DEDUCTIONS.—Subsection (a)
of section 62 of such Code is amended by inserting after
paragraph (17) the following new paragraph:
‘‘(18) PERSONAL
RETIREMENT
SAVINGS
AC-
COUNTS.—The deduction allowed by section 222.’’
(d) TAX ON EXCESS CONTRIBUTIONS.—
(1) IN
GENERAL.—Subsection (a) of section
4973 of such Code is amended by striking ‘‘or’’ at
the end of paragraph (4), by adding ‘‘or’’ at the end
of paragraph (5), and by inserting after paragraph
(5) the following new paragraph:
‘‘(6) a personal retirement savings account (as
defined in section 408B),’’.
(2) EXCESS CONTRIBUTION DEFINED.—Section
4973 is amended by adding at the end the following
new subsection:
‘‘(g) EXCESS CONTRIBUTIONS
TO PERSONAL RE-
TIREMENT SAVINGS ACCOUNTS.—For purposes of this
section—
‘‘(1) IN GENERAL.—In the case of personal re-
tirement savings accounts maintained for the benefit
of any 1 beneficiary, the term ‘excess contributions’
means the amount by which the amount contributed
for the taxable year to such accounts exceeds
$2,000.
‘‘(2) SPECIAL RULES.—For purposes of para-
graph (1), the following contributions shall not be
taken into account:
‘‘(A) Any contributions under section
251(c) of the Social Security Act.
‘‘(B) Any trustee-to-trustee transfer.’’
(e) CONFORMING AMENDMENTS.—
(1) Paragraph (1) of section 4975(e) of such
Code (relating to tax on prohibited transactions) is
amended by redesignating subparagraph (F) as sub-
paragraph (G), by striking ‘‘or’’ at the end of sub-
paragraph (E), and by inserting after subparagraph
(E) the following new subparagraph:
‘‘(F) a personal retirement savings account
described in section 408B(b), or’’.
(2) Paragraph (2) of section 6693(a) of such
Code (relating to failure to provide reports on cer-
tain tax favored accounts or annuities) is amended
by redesignating subparagraphs (C) and (D) as sub-
paragraphs (D) and (E), respectively, and by insert-
ing after subparagraph (B) the following new sub-
paragraph:
‘‘(i) the total amount transferred pursuant to
subparagraph (A) (including accrued net earnings
thereon) to exceed
‘‘(ii) the total amount transferred to the Fed-
eral Old-Age and Survivors Insurance Trust Fund
pursuant to paragraph (1) (including accrued net
earnings thereon),
the amount of such transfer shall be limited to the extent
necessary to ensure that the total amount described in
clause (ii) does not exceed the total amount described in
clause (i), and this paragraph shall not be effective for
subsequent fiscal years.
‘‘(4) For purposes of this subsection—
‘‘(A) The term ‘social security payroll’ for any
fiscal year means the sum of the wages (as defined
in section 3121 of the Internal Revenue Code of
1986) reported to the Secretary of the Treasury or
his delegate during such fiscal year pursuant to sub-
title F of such Code and the self-employment income
(as defined in section 1402 of such Code) reported
to the Secretary of the Treasury or his delegate dur-
ing such fiscal year pursuant to subtitle F of such
Code.
‘‘(B) The term ‘allowable Trust Fund cushion
reduction’ for a fiscal year means the amount by
which the amounts otherwise appropriated for the
fiscal year to the Federal Old-Age and Survivors In-
surance Trust Fund under paragraphs (3) and (4)
of subsection (a) may be reduced so as to maintain
a reserve in the Federal Old-Age and Survivors In-
surance Trust Fund as of the end of such fiscal year
equal to 50 percent of the amount of benefits pro-
jected to be paid from the Trust Fund during such
fiscal year.’’.
SEC. 202. SEQUESTRATION OF FEDERAL SPENDING TO RE-
DUCE DEBT HELD BY THE PUBLIC.
(a) SEQUESTRATION TO REDUCE THE DEBT HELD
BY THE PUBLIC.—Part C of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by
adding after section 253 the following new section:
‘‘SEC. 253A. SEQUESTRATION TO REDUCE THE DEBT HELD
BY THE PUBLIC.
‘‘(a) SEQUESTRATION.—Within 15 days after Con-
gress adjourns to end a session, and on the same day as
a sequestration (if any) under sections 251 and 252, but
after any sequestration of budget-year budgetary re-
sources required by those sections, there shall be a seques-
tration equivalent to the estimated net surplus in the so-
cial security trust funds for the budget year, less addi-
tional appropriations under section 201(o) of the Social
Security Act, as estimated by the Secretary of the Treas-
ury on September 30 of that year.
‘‘(b) APPLICABILITY.—Each non-exempt account
within a category shall be reduced by a dollar amount cal-
culated by multiplying the level of budgetary resources in
that account at that time by the uniform percentage nec-
essary to carry out subsection (a). All obligational author-
ity reduced under this section shall be done in a manner
that makes such reductions permanent.’’.
(b) REPORTS.—Section 254 of the Balanced Budget
and Emergency Deficit Control Act of 1985 is amended—
(1) in subsection (c)(1), by inserting ‘‘, and se-
questration to reduce debt held by the public,’’;
(2) in subsection (c), by redesignating para-
graph (5) as paragraph (6) and by inserting after
paragraph (4) the following new paragraph:
‘‘(5) REPORTS REGARDING SEQUESTRATION TO
REDUCE DEBT HELD BY THE PUBLIC.—The preview
reports shall set forth for the budget year estimates
for each of the following:
‘‘(A) The net surplus in the social security
trust funds for the budget year, as estimated by
the Secretary of the Treasury.
‘‘(B) The amount of reductions required
under section 253A.
‘‘(C) The sequestration percentage nec-
essary to achieve the required reduction in ac-
counts under section 253A(b).’’; and
(3) in subsection (f), by redesignating para-
graphs (4) and (5) as paragraphs (5) and (6), re-
spectively, and by inserting after paragraph (3) the
following new paragraph:
‘‘(4) REPORTS REGARDING SEQUESTRATION TO
REDUCE DEBT HELD BY THE PUBLIC.—The final re-
ports shall contain the net surplus in the social secu-
rity trust funds for the budget year, as estimated by
the Secretary of the Treasury on September 30.’’.
(c) DEFINITION.—Section 250(c) of the Balanced
Budget and Emergency Deficit Control Act of 1985 is
amended by adding at the end the following new para-
graph:
‘‘(20) The term ‘social security trust funds’ re-
fers to the Federal Old-Age and Survivors Insurance
Trust Fund and the Federal Disability Insurance
Trust Fund.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to fiscal year 2001 and each fiscal
year thereafter and shall cease to have any effect after
the first fiscal year during which there is no debt held
by the public.
TITLE III—SOCIAL SECURITY
BENEFIT REFORMS
SEC. 301. GRADUAL INCREASE IN RETIREMENT AGE AND
EARLY RETIREMENT AGE.
(a) NORMAL RETIREMENT AGE.—Section 216(l) of
the Social Security Act (42 U.S.C. 416(l) is amended—
(1) in paragraph (1), by striking subparagraphs
(A), (B), (C), (D), and (E) and inserting the fol-
lowing:
‘‘(A) with respect to an individual who at-
tains age 62 (or in the case of a widow’s or
widower’s insurance benefit, age 60) before
January 1, 2000, 65 years of age;
‘‘(B) with respect to an individual who at-
tains age 62 (or in the case of a widow’s or
widower’s insurance benefit, age 60) after De-
cember 31, 1999 and before January 1, 2011,
65 years of age plus 2⁄12 of the number of
months in the period beginning with January
2000 and ending with December of the year in
which the individual attains age 62 (or in the
case of a widow’s or widower’s insurance ben-
efit, age 60);
‘‘(C) with respect to an individual who at-
tains age 62 (or in the case of a widow’s or
widower’s insurance benefit, age 60) after De-
cember 31, 2010, and before January 1, 2012,
67 years of age; and
‘‘(D) with respect to an individual who at-
tains age 62 (or in the case of a widow’s or
widower’s insurance benefit, age 60) after De-
cember 31, 2011, 67 years of age plus 1⁄24 of
the number of months in the period beginning
with January 2012 and ending with December
of the year in which the individual attains age
62 (rounded down to a full month).’’; and
(2) by striking paragraph (3).
SEC. 302. ADJUSTMENTS TO BEND POINTS IN DETER-
MINING PRIMARY INSURANCE AMOUNTS.
(a) 
ADDITIONAL
BEND
POINT.—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’’ at the end;
(2) in clause (iii), by striking ‘‘clause (ii),’’ and
inserting the following: ‘‘clause (ii) but 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) the applicable percentage of the individ-
ual’s average indexed monthly earnings to the extent
that such earnings exceed the amount established
for purposes of clause (iii), determined, in connec-
tion with the calendar year in which the individual
initially becomes eligible for old-age or disability in-
surance benefits, or dies (before becoming eligible
for such benefits), in accordance with the following
table:
Applicable
‘‘Calendar year:
Percentage:
2001 ......................................................................................... 13 percent
2002 ......................................................................................... 11 percent
2003 .........................................................................................
9 percent
2004 .........................................................................................
7 percent
After 2004 ................................................................................
5 percent,’’.
(b) INITIAL LEVEL OF ADDITIONAL BEND POINT.—
Section 
215(a)(1)(B)(i) 
of 
such 
Act 
(42 
U.S.C.
415(a)(1)(B)(i)) is amended by adding at the end the fol-
lowing new sentence: ‘‘For individuals who initially become
eligible for old-age or disability insurance benefits, or who
die (before becoming eligible for such benefit), in the cal-
endar year 2000, the amount established for purposes of
clause (iii) of subparagraph (A) shall be $3,720.’’.
(c) ANNUAL ADJUSTMENTS TO PIA FORMULA.—
(1) IN
GENERAL.—Section 215(a)(1)(B) of
such Act (42 U.S.C. 415(a)(1)(B)) is amended
further—
(A) by redesignating clause (iii) as clause
(viii);
(B) in clause (ii), by striking ‘‘1979, each
of the amounts so established shall equal the
product of the corresponding amount’’ and in-
serting ‘‘2000, the amount established for pur-
poses of clause (i) of subparagraph (A) shall
equal the product of the amount established for
purposes of clause (i) of subparagraph (A)’’;
(C) by inserting after clause (ii) the fol-
lowing new clauses:
‘‘(iii) For individuals who initially become eligible for
old-age or disability insurance benefits, or who die (before
becoming eligible for such benefits), in any calendar year
after 2000, effective for such calendar year, each of the
amounts established under clause (i) for purposes of
clauses (ii) and (iii) of subparagraph (A) shall equal the
corresponding amount in effect for the preceding calendar
year, increased by the same percentage as the percentage
by which the Consumer Price Index for the calendar quar-
ter ending with September 30 of such preceding calendar
year exceeds the Consumer Price Index for the calendar
quarter ending with the preceding September 30. For pur-
poses of this clause, the Consumer Price Index for a cal-
endar quarter shall be the arithmetical mean of the Con-
sumer Price Index for Wage Earners and Clerical Workers
(CPI–W), as prepared by the Department of Labor, for
the 3 months in such quarter.
‘‘(iv) For individuals who initially become eligible for
old-age or disability insurance benefits, or who die (before
becoming eligible for such benefits), in any calendar year
after 2000, effective for such calendar year—
‘‘(I) the percentage in effect under clause (ii) of
subparagraph (A) shall be equal to the product de-
rived by multiplying the percentage in effect under
such clause for the preceding calendar year by 0.98,
and
‘‘(II) the percentage in effect under clause (iii)
of subparagraph (A) shall be equal to the product
derived by multiplying the percentage in effect under
such clause for the preceding calendar year by
0.975.
‘‘(v) For individuals who initially become eligible for
old-age or disability insurance benefits, or who die (before
becoming eligible for such benefits), in any calendar year
after 2005, effective for such calendar year, the percent-
age in effect under clause (iv) of subparagraph (A) shall
be equal to the product derived by multiplying the percent-
age in effect under such clause for the preceding calendar
year by 0.975.
‘‘(vi)(I) Subject to section 201(p), in the case of an
individual who is entitled to disability insurance benefits
and to whom this clause applies, this subparagraph shall
apply as if the amendments made by the Social Security
Solvency Act of 1999 had not been enacted.
‘‘(II) This clause applies to any individual who first
becomes eligible for such benefits in 2000, and whose aver-
age indexed monthly earnings (determined under sub-
section (b)) do not exceed $1,666.662⁄3.
‘‘(III) This clause also applies to any individual who
first becomes eligible for such benefits in any year after
2000, and whose average indexed monthly earnings (deter-
mined under subsection (b)) do not exceed the dollar
amount referred to in subclause (II), after applying
clauses (ii) and (ii) of subsection (a)(1)(B) to such dollar
amount, in connection with such year, in the same manner
and to the same extent as they apply to dollar amounts
in subsection (a)(1)(B)(i), except that, for purposes of this
subclause, the references in such clauses to 1979 and
1977 shall be deemed to be references to 2000 and 1998,
respectively.
‘‘(vii) Subject to section 201(p), in the case of an in-
dividual who is entitled to disability insurance benefits,
who first becomes eligible for such benefits in any year
after 1999, and to whom clause (vi) does not apply, the
primary insurance amount of such individual shall not be
less than the primary insurance amount that would be de-
termined for such individual under this section if such in-
dividual’s average indexed monthly earnings (determined
under subsection (b)) were equal to the dollar amount re-
ferred to in clause (vi) in connection with such year.’’; and
(D) in clause (viii) (as redesignated), by
striking 
‘‘amount’’ 
and 
inserting 
‘‘dollar
amount’’, by striking ‘‘clause (ii)’’ and inserting
‘‘clauses (ii) and (iii)’’, and by adding at the
end the following new sentence: ‘‘Each percent-
age established under clause (iv) for any cal-
endar year shall be rounded to the nearest
0.001 percent, except that any percentage so
established which is a multiple of 0.0005 per-
cent but not of 0.001 percent shall be rounded
to the next higher 0.001 percent.’’.
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply with respect to pri-
mary insurance amounts of individuals attaining
early retirement age (as defined in section 216(l) of
the Social Security Act), or dying, after December
31, 1999.
(d) MAXIMUM PERCENT REDUCTION IN PRIMARY IN-
SURANCE AMOUNTS.—
(1) IN GENERAL.—Section 215(a)(1) of such
Act (42 U.S.C. 415(a)(1)) is amended further by
adding at the end the following new subparagraph:
‘‘(E)(i) An individual’s primary insurance amount as
otherwise determined under this section shall in no case
be less than such individual’s primary insurance amount
determined under this section as if the amendments made
by section 302 of the Social Security Solvency Act of 1999
had not been enacted, reduced by the maximum percent
reduction specified, in connection with the specified year
in which such individual initially becomes eligible for old-
age insurance benefits and in connection with the specified
next higher amount of the annual equivalent of average
indexed monthly earnings (determined under subsection
(b)), in the following table:
‘‘Year of initial eligibility
Average indexed monthly earnings (annual equivalent)
$5,000
$10,000
$15,000
$20,000
$21,000
$22,000
$23,000
$24,000
$25,000
2001 ......................................................
0.0
0.0
0.0
0.0
1.0
2.0
3.0
4.0
5.0
2002 ......................................................
0.0
0.0
0.0
0.0
1.0
2.0
3.0
4.0
5.0
2003 ......................................................
1.0
1.0
1.0
1.0
2.0
3.0
4.0
5.0
6.0
2004 ......................................................
2.0
2.0
2.0
2.0
3.0
4.0
5.0
6.0
7.0
2005 ......................................................
3.0
3.0
3.0
3.0
4.0
5.0
6.0
7.0
8.0
2006 ......................................................
4.0
4.0
4.0
4.0
5.0
6.0
7.0
8.0
9.0
2007 ......................................................
5.0
5.0
5.0
5.0
6.0
7.0
8.0
9.0
10.0
2008 ......................................................
6.0
6.0
6.0
6.0
7.0
8.0
9.0
10.0
11.0
2009 ......................................................
7.0
7.0
7.0
7.0
8.0
9.0
10.0
11.0
12.0
2010 ......................................................
8.0
8.0
8.0
8.0
9.0
10.0
11.0
12.0
13.0
2011 ......................................................
9.0
9.0
9.0
9.0
10.0
11.0
12.0
13.0
14.0
2012 ......................................................
10.0
10.0
10.0
10.0
11.0
12.0
13.0
14.0
15.0
2013 ......................................................
11.0
11.0
11.0
11.0
12.0
13.0
14.0
15.0
16.0
2014 ......................................................
12.0
12.0
12.0
12.0
13.0
14.0
15.0
16.0
17.0
‘‘(ii) The dollar amounts set forth in the table under
clause (i) in connection with any year after 2001 shall be
deemed to be such dollar amounts after applying clauses
(ii) and (iii) of subsection (a)(1)(B) to such dollar
amounts, in connection with such year, in the same man-
ner and to the same extent as they apply to dollar amounts
in subsection (a)(1)(B)(i), except that, for purposes of this
clause, the references in such clauses to 1979 and 1977
shall be deemed to be references to 2001 and 1999, re-
spectively.’’.
(2) EFFECTIVE DATE.—The amendment made
by this subsection shall apply with respect to bene-
fits for months after November 1999.
SEC. 303. INFORMATION RELATING TO BENEFIT LIMITA-
TIONS PROVIDED IN SOCIAL SECURITY AC-
COUNT STATEMENTS.
(a) IN GENERAL.—Section 1143 of the Social Secu-
rity Act (42 U.S.C. 1320b–13) is amended—
(1) in the heading for subsection (a), by strik-
ing ‘‘Upon Request’’ and inserting ‘‘of Annual
Statements’’;
(2) in subsection (a)(1), by striking ‘‘Begin-
ning’’ and all that follows and inserting the fol-
lowing: ‘‘The Commissioner of Social Security shall
provide an annual social security account statement
(hereinafter in this section referred to as the ‘state-
ment’) to each eligible individual for whom a mailing
address can be determined through such methods as
the Commissioner determines to be appropriate.’’;
(3) in subsection (a)(2)(A), by striking ‘‘at the
date of the request’’;
(4) in subsection (a)(2)(B), by striking ‘‘on the
date of the request’’;
(5) in subsection (a)(2)(C), by striking ‘‘on the
date of the request’’ and by striking ‘‘and’’ at the
end;
(6) in subsection (a)(2)(D), by inserting ‘‘in the
case of individuals not receiving benefits,’’ after
‘‘(D)’’, and by striking ‘‘title XVIII.’’ and inserting
‘‘title XVIII; and’’;
(7) by adding after subparagraph (D) the fol-
lowing:
‘‘(E) a table setting forth an estimate, in rela-
tion to 1980 and every 10th year thereafter through
2030, of the following information:
‘‘(i) the total amount of the current ad-
justed values of all employee, employer, and
self-employment contributions made with re-
spect to the wages and self-employment income
of the average earner retiring at retirement age
in each such year;
‘‘(ii) the total amount of the current ad-
justed values of the social security old-age or
survivors 
benefits 
(as 
defined 
in 
section
202(y)(3)(D)) paid for all prior months on the
basis of the wages and self-employment income
of the average earner retiring at retirement age
in each such year; and
‘‘(iii) the total amount of the current ad-
justed values of the monthly benefits which will
have been paid under such subsections, as of
the time of the death of the average earner re-
tiring at retirement age in each such year, on
the basis of his or her wages and self-employ-
ment income, as projected under the inter-
mediate actuarial assumptions utilized by the
Board of Trustees of the Federal Old-Age and
Survivors Insurance Trust Fund for its most
recent annual report issued under section
201(c).
For purposes of subparagraph (E), the term ‘current ad-
justed value’ has the meaning provided in section
202(y)(3)(C).’’;
(8) by striking subsection (b);
(9) in subsection (c)—
(A) by striking the heading and inserting
the following:
‘‘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, 2000.
SEC. 304. 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
December 2000 had remained in effect, 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 substantial
and regular service for remuneration for
that employer before January 1, 2000,
‘‘(II) who is a bona fide employee of
that employer on December 31, 1999, 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, 1999.
‘‘(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 2000, 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 2000, 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,
1997 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 1999’’ 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
203 made by section 102 of the Senior Citizens’ Right
to Work Act of 1996 and by the Senior Citizens’ Freedom
to Work Act of 1999 had not been enacted’’.
(h) The amendments and repeals made by this Sec-
tion shall apply with respect to taxable years ending after
December 31, 2000.
SEC. 307. ACCELERATION OF INCREASE IN DELAYED RE-
TIREMENT CREDIT.
(a) IN GENERAL.—Section 202(w) of the Social Se-
curity Act (42 U.S.C. 402(w)) is amended—
(1) in paragraph (1)(A), by striking ‘‘the appli-
cable percentage (as determined under paragraph
(6))’’ and inserting ‘‘2⁄3 of 1 percent’’; and
(2) by striking paragraph (6).
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to individuals who
have earnings in calendar years 2000 or later, after having
attained their retirement age.
SEC. 308. AUTHORIZATION FOR REIMBURSEMENT OF FED-
ERAL DISABILITY INSURANCE TRUST FUND
FOR CERTAIN COSTS OF DISABILITY INSUR-
ANCE BENEFITS.
(a) IN GENERAL.—Section 201 of the Social Security
Act (as amended by the preceding provisions of this Act)