(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Individual security accounts.
Sec. 3. Minimum social security benefit.
Sec. 4. Elimination of earnings test for individuals who have attained retire-
ment age.
Sec. 5. Reduction in the amount of certain transfers to Medicare Trust Fund.
Sec. 6. Coverage of newly hired State and local employees.
Sec. 7. Gradual increase in number of benefit computation years; use of all
years in computation.
Sec. 8. Actuarial adjustment for retirement.
Sec. 9. Improvements in process for cost-of-living adjustments.
Sec. 10. Phased reduction in spousal benefits other than survivor’s benefits to
33 percent of primary insurance amount.
Sec. 11. Adjustment to upper 2 benefit formula factors.
Sec. 12. Phased-in increase in social security retirement ages.
Sec. 13. Mechanism for remedying unforeseen deterioration in social security
solvency.
SEC. 2. INDIVIDUAL SECURITY ACCOUNTS.
(a) ESTABLISHMENT AND MAINTENANCE OF INDI-
VIDUAL SECURITY ACCOUNTS.—Title II of the Social Se-
curity Act (42 U.S.C. 401 et seq.) is amended—
(1) by inserting before section 201 the follow-
ing:
‘‘PART A—INSURANCE BENEFITS’’;
and
(2) by adding at the end the following:
‘‘PART B—INDIVIDUAL SECURITY ACCOUNTS
‘‘INDIVIDUAL SECURITY ACCOUNTS
‘‘SEC. 251. (a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—The Commissioner of So-
cial Security, within 30 days of the receipt of the
first contribution received pursuant to subsection (b)
with respect to an eligible individual, shall establish
in the name of such individual an individual security
account. The individual security account shall be
identified to the account holder by means of the ac-
count holder’s Social Security account number.
‘‘(2) DEFINITION OF ELIGIBLE INDIVIDUAL.—
In this part, the term ‘eligible individual’ means any
individual born after December 31, 1944.
‘‘(b) CONTRIBUTIONS.—The Secretary of the Treas-
ury shall transfer from the Federal Old-Age and Survivors
Insurance Trust Fund, for crediting by the Commissioner
of Social Security to an individual security account of an
eligible individual, an amount equal to the sum of any
amount received by such Secretary on behalf of such indi-
vidual under section 3101(a)(2) or 1401(a)(2) of the In-
ternal Revenue Code of 1986.
‘‘(c) DESIGNATION OF INVESTMENT TYPE OF INDI-
VIDUAL SECURITY ACCOUNT.—
‘‘(1) DESIGNATION.—Each eligible individual
who is employed or self-employed shall designate the
investment type of individual security account to
which the contributions described in subsection (b)
on behalf of such individual are to be credited.
‘‘(2) FORM OF DESIGNATION.—The designation
described in paragraph (1) shall be made in such
manner and at such intervals as the Commissioner
of Social Security may prescribe in order to ensure
ease of administration and reductions in burdens on
employers.
‘‘(3) SPECIAL RULE FOR 2000.—Not later than
January 1, 2000, any eligible individual that is em-
ployed or self-employed as of such date shall execute
the designation required under paragraph (1).
‘‘(4) DESIGNATION IN ABSENCE OF DESIGNA-
TION
BY
ELIGIBLE
INDIVIDUAL.—In any case in
which no designation of the individual security ac-
count is made, the Commissioner of Social Security
shall make the designation of the individual security
account in accordance with regulations that take
into account the competing objectives of maximizing
returns on investments and minimizing the risk in-
volved with such investments.
‘‘DEFINITION OF INDIVIDUAL SECURITY ACCOUNT;
TREATMENT OF ACCOUNTS
‘‘SEC. 252. (a) INDIVIDUAL SECURITY ACCOUNT.—
In this part, the term ‘individual security account’ means
any individual security account in the Individual Security
Fund (established under section 254) which is adminis-
tered by the Individual Security Fund Board.
‘‘(b) TREATMENT OF ACCOUNT.—Except as other-
wise provided in this part, any individual security account
described in paragraph (1)(A) shall be treated in the same
manner as an individual account in the Thrift Savings
Fund under subchapter III of chapter 84 of title 5, United
States Code.
‘‘INDIVIDUAL SECURITY ACCOUNT DISTRIBUTIONS
‘‘SEC. 253. (a) DATE OF INITIAL DISTRIBUTION.—
Except as provided in subsection (c), distributions may
only be made from an individual security account of an
eligible individual on and after the earliest of—
‘‘(1) the date the eligible individual attains nor-
mal retirement age, as determined under section 216
(or early retirement age (as so determined) if elected
by such individual), or
‘‘(2) the date on which funds in the eligible in-
dividual’s individual security account are sufficient
to provide a monthly payment over the life expect-
ancy of the eligible individual (determined under rea-
sonable actuarial assumptions) which, when added to
the eligible individual’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 Services Block Grant Act (42 U.S.C.
9902(2) and determined on such date for a family
of the size involved) and adjusted annually there-
after by the adjustment determined under section
215(i).
‘‘(b) FORMS OF DISTRIBUTION.—
‘‘(1) REQUIRED MONTHLY PAYMENTS.—Except
as provided in paragraph (2), beginning with the
date determined under subsection (a), the balance in
an individual security account available to provide
monthly payments not in excess of the amount de-
scribed in subsection (a)(2) shall be paid, as elected
by the account holder (in such form and manner as
shall be prescribed in regulations of the Individual
Security Fund Board), by means of the purchase of
annuities or equal monthly payments over the life
expectancy of the eligible individual (determined
under reasonable actuarial assumptions) in accord-
ance with requirements (which shall be provided in
regulations of the Board) similar to the require-
ments applicable to payments of benefits under sub-
chapter III of chapter 84 of title 5, United States
Code, and providing for indexing for inflation.
‘‘(2) PAYMENT OF EXCESS FUNDS.—To the ex-
tent funds remain in an eligible individual’s individ-
ual security account after the application of para-
graph (1), such funds shall be payable to the eligible
individual in such manner and in such amounts as
determined by the eligible individual, subject to the
provisions of subchapter III of chapter 84 of title 5,
United States Code.
‘‘(c) DISTRIBUTION IN THE EVENT OF DEATH BE-
FORE THE DATE OF INITIAL DISTRIBUTION.—If the eligi-
ble individual dies before the date determined under sub-
section (a), the balance in such individual’s individual se-
curity account shall be distributed in a lump sum, under
rules established by the Individual Security Fund Board,
to the employee’s heirs.
‘‘INDIVIDUAL SECURITY FUND
‘‘SEC. 254. (a) ESTABLISHMENT.—There is estab-
lished and maintained in the Treasury of the United
States an Individual Security Fund in the same manner
as the Thrift Savings Fund under sections 8437, 8438,
and 8439 (but not section 8440) of title 5, United States
Code.
‘‘(b) INDIVIDUAL SECURITY FUND BOARD.—
‘‘(1) IN GENERAL.—There is established and
operated in the Social Security Administration an
Individual Security Fund Board in the same manner
as the Federal Retirement Thrift Investment Board
under subchapter VII of chapter 84 of title 5,
United States Code.
‘‘(2) SPECIFIC
INVESTMENT
AND
REPORTING
DUTIES.—
‘‘(A) IN GENERAL.—The Individual Secu-
rity Fund Board shall manage and report on
the activities of the Individual Security Fund
and the individual security accounts of such
Fund in the same manner as the Federal Re-
tirement Thrift Investment Board manages and
reports on the Thrift Savings Fund and the in-
dividual accounts of such Fund under sub-
chapter VII of chapter 84 of title 5, United
States Code.
‘‘(B) STUDY AND REPORT ON INCREASED
INVESTMENT OPTIONS.—
‘‘(i) STUDY.—The Individual Security
Fund Board shall conduct a study regard-
ing ways to increase an eligible individual’s
investment options with respect to such in-
dividual’s individual security account and
with respect to rollovers or distributions
from such account.
‘‘(ii) REPORT.—Not later than 2
years after the date of enactment of the
Strengthening Social Security Act of 1998,
the Individual Security Fund Board shall
submit a report to the President and Con-
gress that contains a detailed statement of
the results of the study conducted pursu-
ant to clause (i), together with the Board’s
recommendations for such legislative ac-
tions as the Board considers appropriate.
‘‘BUDGETARY TREATMENT OF INDIVIDUAL SECURITY
FUND AND ACCOUNTS
‘‘SEC. 255. The receipts and disbursements of the In-
dividual Security Fund and any accounts within such fund
shall not be included in the totals of the budget of the
United States Government as submitted by the President
or of the congressional budget and shall be exempt from
any general budget limitation imposed by statute on ex-
penditures and net lending (budget outlays) of the United
States Government.’’.
(b) MODIFICATION OF FICA RATES.—
(1) EMPLOYEES.—Section 3101(a) of the Inter-
nal Revenue Code of 1986 (relating to tax on em-
ployees) is amended to read as follows:
‘‘(a) OLD-AGE, SURVIVORS, AND DISABILITY INSUR-
ANCE.—
‘‘(1) IN GENERAL.—
‘‘(A) INDIVIDUALS COVERED UNDER PART
A OF TITLE II OF THE SOCIAL SECURITY ACT.—
In addition to other taxes, there is hereby im-
posed on the income of every individual who is
not a part B eligible individual a tax equal to
6.2 percent of the wages (as defined in section
3121(a)) received by him with respect to em-
ployment (as defined in section 3121(b)).
‘‘(B) INDIVIDUALS COVERED UNDER PART
B OF TITLE II OF THE SOCIAL SECURITY ACT.—
In addition to other taxes, there is hereby im-
posed on the income of every part B eligible in-
dividual a tax equal to 4.2 percent of the wages
(as defined in section 3121(a)) received by such
individual with respect to employment (as de-
fined in section 3121(b)).
‘‘(2) CONTRIBUTION OF OASDI TAX REDUCTION
TO INDIVIDUAL SECURITY ACCOUNTS.—
‘‘(A) IN GENERAL.—In addition to other
taxes, there is hereby imposed on the income of
every part B eligible individual an individual se-
curity account contribution equal to the sum
of—
‘‘(i) 2 percent of the wages (as so de-
fined) received by such individual with re-
spect to employment (as so defined), plus
‘‘(ii) so much of such wages (not to
exceed $2,000) as designated by the indi-
vidual in the same manner as described in
section 251(c) of the Social Security Act.
‘‘(B) INFLATION ADJUSTMENT.—
‘‘(i) IN GENERAL.—In the case of any
calendar year beginning after 2000, the
dollar amount in subparagraph (A)(ii)
shall be increased by an amount equal to—
‘‘(I) such dollar amount, multi-
plied by
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3)
for the calendar year, determined by
substituting ‘calendar year 1999’ for
‘calendar year 1992’ in subparagraph
(B) thereof.
‘‘(ii) 
ROUNDING.—If 
any 
dollar
amount after being increased under clause
(i) is not a multiple of $10, such dollar
amount shall be rounded to the nearest
multiple of $10.’’.
(2) SELF-EMPLOYED.—Section 1401(a) of the
Internal Revenue Code of 1986 (relating to tax on
self-employment income) is amended to read as fol-
lows:
‘‘(a) OLD-AGE, SURVIVORS, AND DISABILITY INSUR-
ANCE.—
‘‘(1) IN GENERAL.—
‘‘(A) INDIVIDUALS COVERED UNDER PART
A OF THE SOCIAL SECURITY ACT.—In addition
to other taxes, there shall be imposed for each
taxable year, on the self-employment income of
every individual who is not a part B eligible in-
dividual for the calendar year ending with or
during such taxable year, a tax equal to 12.40
percent of the amount of the self-employment
income for such taxable year.
‘‘(B) INDIVIDUALS COVERED UNDER PART
B OF TITLE II OF THE SOCIAL SECURITY ACT.—
In addition to other taxes, there is hereby im-
posed for each taxable year, on the self-employ-
ment income of every part B eligible individual,
a tax equal to 10.4 percent of the amount of
the self-employment income for such taxable
year.
‘‘(2) CONTRIBUTION OF OASDI TAX REDUCTION
TO INDIVIDUAL SECURITY ACCOUNTS.—
‘‘(A) IN GENERAL.—In addition to other
taxes, there is hereby imposed for each taxable
year, on the self-employment income of every
individual, an individual security account con-
tribution equal to the sum of—
‘‘(i) 2 percent of the amount of the
self-employment income for each individual
for such taxable year; and
‘‘(ii) so much of such self-employment
income (not to exceed $2,000) as des-
ignated by the individual in the same man-
ner as described in section 251(c) of the
Social Security Act.
‘‘(B) INFLATION ADJUSTMENT.—
‘‘(i) IN GENERAL.—In the case of any
taxable year beginning after 2000, the dol-
lar amount in subparagraph (A)(ii) shall
be increased by an amount equal to—
‘‘(I) such dollar amount, multi-
plied by
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3)
for the calendar year in which the tax-
able year begins, determined by sub-
stituting ‘calendar year 1999’ for ‘cal-
endar year 1992’ in subparagraph (B)
thereof.
‘‘(ii) 
ROUNDING.—If 
any 
dollar
amount after being increased under clause
(i) is not a multiple of $10, such dollar
amount shall be rounded to the nearest
multiple of $10.’’.
(3) PART B ELIGIBLE INDIVIDUAL.—
(A) TAXES ON EMPLOYEES.—Section 3121
of such Code (relating to definitions) is amend-
ed by inserting after subsection (s) the follow-
ing new subsection:
‘‘(t) PART B ELIGIBLE INDIVIDUAL.—For purposes
of this chapter, the term ‘part B eligible individual’ means,
for any calendar year, an individual who is an eligible indi-
vidual (as defined in section 251(a)(2) of the Social Secu-
rity Act) for such calendar year.’’.
(B) 
SELF-EMPLOYMENT
TAX.—Section
1402 of such Code (relating to definitions) is
amended by adding at the end the following
new subsection:
‘‘(k) PART B ELIGIBLE INDIVIDUAL.—The term
‘part B eligible individual’ means, for any calendar year,
an individual who is an eligible individual (as defined in
section 251(a)(2) of the Social Security Act) for such cal-
endar year.’’.
(4) EFFECTIVE DATES.—
(A) EMPLOYEES.—The amendments made
by paragraphs (1) and (3)(A) apply to remu-
neration paid after December 31, 1999.
(B) SELF-EMPLOYED
INDIVIDUALS.—The
amendments made by paragraphs (2) and
(3)(B) apply to taxable years beginning after
December 31, 1999.
SEC. 3. MINIMUM SOCIAL SECURITY BENEFIT.
Section 215 of the Social Security Act (42 U.S.C.
415) is amended by adding at the end the following:
‘‘Minimum Monthly Insurance Benefit
‘‘(j)(1) Notwithstanding the preceding provisions of
this section—
‘‘(A) the primary insurance amount of a quali-
fied individual shall be equal to the greater of—
‘‘(i) the primary insurance amount deter-
mined under this section (without regard to this
subsection), or
‘‘(ii) 1⁄12 of the applicable percentage of
the applicable amount, and
‘‘(B) any recomputation of the primary insur-
ance amount of a qualified individual shall not result
in a primary insurance amount less than the pri-
mary insurance amount as in effect immediately
prior to such recomputation.
‘‘(2) For purposes of this subsection—
‘‘(A) The term ‘qualified individual’ means an
individual—
‘‘(i) who initially becomes eligible for old-
age or disability insurance benefits, or dies (be-
fore becoming eligible for such benefits) for a
month beginning after December 31, 2005, and
‘‘(ii) who has at least twice the minimum
number of quarters required to be fully insured.
‘‘(B) The term ‘applicable amount’ means, in
connection with an individual, $7,992 adjusted an-
nually—
‘‘(i)(I) with respect to an individual whose
initial month of eligibility occurs in a year prior
to 2011, by the CPI increase percentage deter-
mined under section 215(i) for 1996 through
the year prior to such year of eligibility; and
‘‘(II) with respect to an individual whose
initial month of eligibility occurs in a year after
2010, by the CPI increase percentage deter-
mined under such section for 1996 through
2009, and by the wage increase percentage de-
termined under such section for 2009 through
the second year prior to the year of such eligi-
bility; and
‘‘(ii) by the CPI increase percentage deter-
mined under such section for all years begin-
ning with the year of an individual’s initial eli-
gibility.
‘‘(C)(i) The term ‘applicable percentage’ means,
for computations and recomputations of a qualified
individual’s primary insurance amount under this
section whose initial eligibility occurs in any calendar
year specified in the table under clause (ii), the sum
of—
‘‘(I) the applicable base percentage speci-
fied in such table in connection with such year,
plus
‘‘(II) the product derived by multiplying
the applicable percentage increment specified in
such table in connection with such year by the
ratio of the number of such individual’s quar-
ters of coverage (if any) in excess of the mini-
mum number of quarters required to be fully
insured but not in excess of twice such mini-
mum, to such minimum.
‘‘(ii) For purposes of clause (i), the applicable
base percentages and applicable percentage incre-
ments are set forth in connection with calendar
years in the following table:
‘‘If the calendar
year is:
The applicable
base percentage
is:
And the applicable
percentage incre-
ment is:
2006 ............................
12 percent ...................
8 percent
2007 ............................
24 percent ...................
16 percent
2008 ............................
36 percent ...................
24 percent
2009 ............................
48 percent ...................
32 percent
After 2009 ..................
60 percent ...................
40 percent.’’
SEC. 4. ELIMINATION OF EARNINGS TEST FOR INDIVID-
UALS WHO HAVE ATTAINED RETIREMENT
AGE.
(a) IN GENERAL.—Section 203 of the Social Security
Act (42 U.S.C. 403) is amended—
(1) in subsection (c)(1), by striking ‘‘the age of
seventy’’ and inserting ‘‘retirement age (as defined
in section 216(l))’’;
(2) in paragraphs (1)(A) and (2) of subsection
(d), by striking ‘‘the age of seventy’’ each place it
appears and inserting ‘‘retirement age (as defined in
section 216(l))’’;
(3) in subsection (f)(1)(B), by striking ‘‘was
age seventy or over’’ and inserting ‘‘was at or above
retirement age (as defined in section 216(l))’’;
(4) in subsection (f)(3)—
(A) by striking ‘‘331⁄3 percent’’ and all
that follows through ‘‘any other individual,’’
and inserting ‘‘50 percent of such individual’s
earnings for such year in excess of the product
of the exempt amount as determined under
paragraph (8),’’; and
(B) by striking ‘‘age 70’’ and inserting
‘‘retirement age (as defined in section 216(l))’’;
(5) in subsection (h)(1)(A), by striking ‘‘age
70’’ each place it appears and inserting ‘‘retirement
age (as defined in section 216(l))’’; and
(6) in subsection (j)—
(A) in the heading, by striking ‘‘Age Sev-
enty’’ and inserting ‘‘Retirement Age’’; and
(B) by striking ‘‘seventy years of age’’ and
inserting ‘‘having attained retirement age (as
defined in section 216(l))’’.
(b) CONFORMING AMENDMENTS ELIMINATING THE
SPECIAL EXEMPT AMOUNT FOR INDIVIDUALS WHO HAVE
ATTAINED RETIREMENT AGE.—
(1) 
UNIFORM
EXEMPT
AMOUNT.—Section
203(f)(8)(A) of the Social Security Act (42 U.S.C.
403(f)(8)(A)) is amended by striking ‘‘the new ex-
empt amounts (separately stated for individuals de-
scribed in subparagraph (D) and for other individ-
uals) 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 particu-
lar taxable year shall be whichever’’;
(B) in clauses (i) and (ii), by striking ‘‘cor-
responding’’ each place it appears; and
(C) in the last sentence, by striking ‘‘an
exempt amount’’ and inserting ‘‘the exempt
amount’’.
(3) REPEAL OF BASIS FOR COMPUTATION OF
SPECIAL EXEMPT AMOUNT.—Section 203(f)(8)(D) of
such Act (42 U.S.C. 403(f)(8)(D)) is repealed.
(c) ADDITIONAL CONFORMING AMENDMENTS.—
(1) ELIMINATION OF REDUNDANT REFERENCES
TO RETIREMENT AGE.—Section 203 of the Social
Security Act (42 U.S.C. 403) is amended—
(A) in subsection (c), in the last sentence,
by striking ‘‘nor shall any deduction’’ and all
that follows and inserting ‘‘nor shall any deduc-
tion be made under this subsection from any
widow’s or widower’s insurance benefit if the
widow, surviving divorced wife, widower, or sur-
viving divorced husband involved became enti-
tled to such benefit prior to attaining age 60.’’;
and
(B) in subsection (f)(1), by striking sub-
paragraph (D) and inserting the following: ‘‘(D)
for which such individual is entitled to widow’s
or widower’s insurance benefits if such individ-
ual became so entitled prior to attaining age
60,’’.
(2) CONFORMING AMENDMENT TO PROVISIONS
FOR DETERMINING AMOUNT OF INCREASE ON AC-
COUNT
OF
DELAYED
RETIREMENT.—Section
202(w)(2)(B)(ii) 
of 
such 
Act 
(42 
U.S.C.
402(w)(2)(B)(ii)) is amended—
(A) by striking ‘‘either’’; and
(B) by striking ‘‘or suffered deductions
under section 203(b) or 203(c) in amounts
equal to the amount of such benefit’’.
(3) 
PROVISIONS
RELATING
TO
EARNINGS
TAKEN INTO ACCOUNT IN DETERMINING SUBSTAN-
TIAL GAINFUL ACTIVITY OF BLIND INDIVIDUALS.—
The second sentence of section 223(d)(4) of such
Act (42 U.S.C. 423(d)(4)) is amended by striking
‘‘if section 102 of the Senior Citizens’ Right to
Work Act of 1996 had not been enacted’’ and insert-
ing the following: ‘‘if the amendments to section 203
made by section 102 of the Senior Citizens’ Right to
Work Act of 1996 and by the Strengthening Social
Security Act of 1998 had not been enacted’’.
(d) EFFECTIVE DATE.—The amendments and re-
peals made by this section shall apply with respect to tax-
able years ending after December 31, 1999.
SEC. 5. REDUCTION IN THE AMOUNT OF CERTAIN TRANS-
FERS TO MEDICARE TRUST FUND.
Subparagraph (A) of section 121(e)(1) of the Social
Security Amendments of 1983 (42 U.S.C. 401 note), as
amended by section 13215(c)(1) of the Omnibus Budget
Reconciliation Act of 1993, is amended—
(1) in clause (ii), by striking ‘‘the amounts’’
and inserting ‘‘the applicable percentage of the
amounts’’; and
(2) by adding at the end the following: ‘‘For
purposes of clause (ii), the applicable percentage for
a year is equal to 100 percent, reduced (but not
below zero) by 10 percentage points for each year
after 2009.’’.
SEC. 6. 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:
‘‘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 1 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 on
December 31, 1999, had remained in effect, and (ii)
the requirements of paragraph (2) are met with re-
spect 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, 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 Secretary shall adjust
the amount referred to in subparagraph (A)(v) at
the same time and in the same manner as is pro-
vided under section 215(a)(1)(B)(ii) with respect to
the amounts referred 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 $50, shall be rounded to the nearest
multiple of $50.
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 on December 31, 1999’’ after
‘‘section’’.
(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:
‘‘(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 1 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 on December 31, 1999, had remained
in effect, and (ii) the requirements of para-
graph (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, 2000,
‘‘(II) who is a bona fide employee
of that employer on December 31,
1999, 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, 1999.
‘‘(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 2000, 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 section 3121 of such
Code (relating to covered transportation serv-
ice) 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
on December 31, 1999’’ 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, 1999.
SEC. 7. GRADUAL INCREASE IN NUMBER OF BENEFIT COM-
PUTATION YEARS; USE OF ALL YEARS IN
COMPUTATION.
(a) IN GENERAL.—Section 215(b)(2)(A) of the Social
Security Act (42 U.S.C. 415(b)(2)(A)) is amended—
(1) in clause (i), by striking ‘‘5 years’’ and in-
serting ‘‘the applicable number of years for purposes
of this clause’’; and
(2) by striking ‘‘Clause (ii),’’ in the matter fol-
lowing clause (ii) and inserting the following:
‘‘For purposes of clause (i), the applicable number of years
is the number of years specified in connection with the
year in which such individual reaches early retirement age
(as defined in section 216(l)(2)), or, if earlier, the calendar
year in which such individual dies, as set forth in the fol-
lowing table:
‘‘If such calendar year is:
The applicable number of years
is:
2002 ...................................................................................................
4.
2003 ...................................................................................................
4.
2004 ...................................................................................................
3.
2005 ...................................................................................................
3.
2006 ...................................................................................................
2.
2007 ...................................................................................................
2.
2008 ...................................................................................................
1.
2009 ...................................................................................................
1.
After 2009 ..........................................................................................
0.
Clause (ii),’’.
(b) USE OF ALL YEARS IN COMPUTATION.—
(1) IN GENERAL.—Section 215(b)(2)(B) of the
Social Security Act (42 U.S.C. 415(b)(2)(B)) is
amended by striking clauses (i) and (ii) and insert-
ing the following:
‘‘(i)(I) for calendar years after 2001 and before
2010, the term ‘benefit computation years’ means
those computation base years equal in number to the
number determined under subparagraph (A) plus
the applicable number of years determined under
subclause (III), for which the total of such individ-
ual’s wages and self-employment income, after ad-
justment under paragraph (3), is the largest;
‘‘(II) for calendar years after 2009, the term
‘benefit computation years’ means all of the com-
putation base years; and
‘‘(III) for purposes of subclause (I), the applica-
ble number of years is the number of years specified
in connection with the year in which such individual
reaches early retirement age (as defined in section
216(l)(2)), or, if earlier, the calendar year in which
such individual dies, as set forth in the following
table:
‘‘If such calendar year is:
The applicable number of years
is:
Before 2002 .......................................................................................
0.
2002 ...................................................................................................
1.
2003 ...................................................................................................
1.
2004 ...................................................................................................
2.
2005 ...................................................................................................
2.
2006 ...................................................................................................
3.
2007 ...................................................................................................
3.
2008 ...................................................................................................
4.
2009 ...................................................................................................
4.
‘‘(ii) the term ‘computation base years’ means
the calendar years after 1950, except that such term
excludes any calendar year entirely included in a pe-
riod of disability; and’’.
(2) 
CONFORMING
AMENDMENT.—Section
215(b)(1)(B) of the Social Security Act (42 U.S.C.
415(b)(1)(B)) is amended by striking ‘‘in those
years’’ and inserting ‘‘in an individual’s computation
base years determined under paragraph (2)(A)’’.
(c) EFFECTIVE DATE.—
(1) SUBSECTION (a).—The amendments made
by subsection (a) shall apply with respect to individ-
uals attaining early retirement age (as defined in
section 216(l)(2) of the Social Security Act) after
December 31, 2001.
(2) SUBSECTION (b).—The amendment made
by subsection (b) shall apply to benefit computation
years beginning after December 31, 1999.
SEC. 8. ACTUARIAL ADJUSTMENT FOR RETIREMENT.
(a) EARLY RETIREMENT.—
(1) IN GENERAL.—Section 202(q) of the Social
Security Act (42 U.S.C. 402(q)) is amended—
(A) in paragraph (1)(A), by striking ‘‘5⁄9’’
and inserting ‘‘the applicable fraction (deter-
mined under paragraph (12))’’; and
(B) by adding at the end the following:
‘‘(12) For purposes of paragraph (1)(A), the ‘applica-
ble fraction’ for an individual who attains the age of 62
in—
‘‘(A) any year before 2001, is 5⁄9;
‘‘(B) 2001, is 7⁄12;
‘‘(C) 2002, is 11⁄18;
‘‘(D) 2003, is 23⁄36;
‘‘(E) 2004, is 2⁄3; and
‘‘(F) 2005 or any succeeding year, is 25⁄36.’’.
(2) MONTHS BEYOND FIRST 36 MONTHS.—Sec-
tion 202(q) of such Act (42 U.S.C. 402(q)(9)) (as
amended by paragraph (1)) is amended—
(A) in paragraph (9)(A), by striking ‘‘five-
twelfths’’ and inserting ‘‘the applicable fraction
(determined under paragraph (13))’’; and
(B) by adding at the end the following:
‘‘(13) For purposes of paragraph (9)(A), the ‘applica-
ble fraction’ for an individual who attains the age of 62
in—
‘‘(A) any year before 2001, is 5⁄12;
‘‘(B) 2001, is 16⁄36;
‘‘(C) 2002, is 16⁄36;
‘‘(D) 2003, is 17⁄36;
‘‘(E) 2004, is 17⁄36; and
‘‘(F) 2005 or any succeeding year, is 1⁄2.’’.
(3) EFFECTIVE DATE.—The amendments made
by paragraphs (1) and (2) shall apply to individuals
who attain the age of 62 in years after 1999.
(b) DELAYED RETIREMENT.—Section 202(w)(6) of
the Social Security Act (42 U.S.C. 402(w)(6)) is amend-
ed—
(1) in subparagraph (C), by striking ‘‘and’’ at
the end;
(2) in subparagraph (D), by striking ‘‘2004.’’
and inserting ‘‘2004 and before 2007;’’; and
(3) by adding at the end the following:
‘‘(E) 17⁄24 of 1 percent in the case of an individ-
ual who attains the age of 62 in a calendar year
after 2006 and before 2009;
‘‘(F) 3⁄4 of 1 percent in the case of an individ-
ual who attains the age of 62 in a calendar year
after 2008 and before 2011;
‘‘(G) 19⁄24 of 1 percent in the case of an individ-
ual who attains the age of 62 in a calendar year
after 2010 and before 2013; and
‘‘(H) 5⁄6 of 1 percent in the case of an individ-
ual who attains the age of 62 in a calendar year
after 2012.’’.
(b) FUNDING FOR CPI IMPROVEMENTS.—
(1) IN
GENERAL.—There is hereby appro-
priated to the Bureau of Labor Statistics in the De-
partment of Labor, for each of fiscal years 1998,
1999, and 2000, $30,000,000 for use by the Bureau
for the following purposes:
(A) Research, evaluation, and implementa-
tion of a superlative index to estimate upper
level substitution bias in the Consumer Price
Index.
(B) Expansion of the Consumer Expendi-
ture Survey and the Point of Purchase Survey.
(C) Implementation of revisions to the
Consumer Price Index with respect to programs
under title II of the Social Security Act (42
U.S.C. 401 et seq.).
(2) REPORTS.—The Commissioner of the Bu-
reau of Labor Statistics shall submit reports regard-
ing the use of appropriations made under paragraph
(1) to the Committee on Appropriations of the
House of Representative and the Committee on Ap-
propriations of the Senate upon the request of each
Committee.
(c) INFORMATION SHARING.—The Commissioner of
the Bureau of Labor Statistics may secure directly from
the Secretary of Commerce information necessary for pur-
poses of calculating the Consumer Price Index. Upon re-
quest of the Commissioner of the Bureau of Labor Statis-
tics, the Secretary of Commerce shall furnish that infor-
mation to the Commissioner.
(d) ADMINISTRATIVE ADVISORY COMMITTEE.—The
Bureau of Labor Statistics shall, in consultation with the
National Bureau of Economic Research, the American
Economic Association, and the National Academy of Stat-
isticians, establish an administrative advisory committee.
The advisory committee shall periodically advise the Bu-
reau of Labor Statistics regarding revisions of the Con-
sumer Price Index and conduct research and experimen-
tation with alternative data collection and estimating ap-
proaches.
(e) MODIFICATIONS TO COST-OF-LIVING INDEXING
OF BENEFITS.—Section 215(i)(1) of the Social Security
Act (42 U.S.C. 415(i)(1)) is amended—
(1) by striking ‘‘Consumer Price Index’’ each
place it occurs and inserting ‘‘Social Security Con-
sumer Price Index’’;
(2) in subparagraph (D), by striking ‘‘(as pre-
pared by the Department of Labor)’’; and
(3) in subparagraph (G), by striking the period
at the end and inserting ‘‘; and’’;
(4) by adding at the end the following:
‘‘(H) the term ‘Social Security Consumer Price
Index’, for a month in any year after 1999, means
the Consumer Price Index for such month (as pre-
pared by the Department of Labor), reflecting ad-
justments to the annual rate of growth in such index
equal to the greater of—
‘‘(i) the excess of 0.5 percentage points
over the achieved bias correction (as last pub-
lished by the Secretary of Labor pursuant to
section 211(a)(1) of the Strengthening Social
Security Act of 1998), or
‘‘(ii) the upper level substitution bias (as
last published by the Secretary of Labor pursu-
ant to section 211(a)(2) of the Strengthening
Social Security Act of 1998).’’.
SEC. 10. 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-
number of times by .98. For purposes of the preceding
sentence, the term ‘applicable number of times’ means a
number equal to the lesser of 20 or the number of years
beginning with 2003 and ending with the year of initial
eligibility or death.’’
SEC. 12. PHASED-IN INCREASE IN SOCIAL SECURITY RE-
TIREMENT AGES.
(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
(B), (C), (D), and (E) and inserting the following:
‘‘(B)(i) with respect to an individual who
attains 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, 2029,
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 bene-
fit, age 60),
‘‘(ii) 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, 2028, 70 years of age, and
‘‘(iii) 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, 2029, 70 years of age plus 1⁄18 of
the number of months in the period beginning
with January 2030 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 in-
surance benefit, age 60) (rounded down to a
full month).’’; and
(2) by striking paragraph (3).
(b) EARLY RETIREMENT AGE.—Section 216(l)(2) of
the Social Security Act (42 U.S.C. 416(l)(2)) is amended
to read as follows:
‘‘(2) The term ‘early retirement age’ means—
‘‘(A)(i) in the case of an old-age, wife’s, or
husband’s insurance benefit, except as provided
in subparagraph (B), age 62, and
‘‘(ii) in the case of a widow’s or widower’s
insurance benefit, age 60;
‘‘(B)(i) with respect to an individual who
attains age 62 after December 31, 2011, and
before January 1, 2029, 62 years of age plus
2⁄12 of the number of months in the period be-
ginning with January 2012 and ending with
December of the year in which the individual
attains age 62,
‘‘(ii) with respect to an individual who at-
tains age 62 after December 31, 2028, 65 years
of age, and
‘‘(iii) with respect to an individual who at-
tains age 62 after December 31, 2029, 65 years
of age plus 1⁄18 of the number of months in the
period beginning with January 2030 and ending
with December of the year in which the individ-
ual attains age 62 (rounded down to a full
month); and
SEC. 13. MECHANISM FOR REMEDYING UNFORESEEN DETE-
RIORATION IN SOCIAL SECURITY SOLVENCY.
(a) IN GENERAL.—Section 709 of the Social Security
Act (42 U.S.C. 910) is amended—
(1) by redesignating subsection (b) as sub-
section (c); and
(2) by striking ‘‘SEC. 709. (a) If the Board of
Trustees’’ and all that follows through ‘‘any such
Trust Fund’’ and inserting the following:
‘‘SEC. 709. (a)(1)(A) If the Board of Trustees of the
Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund determines
at any time, using intermediate actuarial assumptions,
that the balance ratio of either such Trust Fund for any
calendar year during the succeeding period of 75 calendar
years will be zero, the Board shall promptly submit to each
House of the Congress and to the President a report set-
ting forth its recommendations for statutory adjustments
affecting the receipts and disbursements of such Trust
Fund necessary to maintain the balance ratio of such
Trust Fund at not less than 20 percent, with due regard
to the economic conditions which created such inadequacy
in the balance ratio and the amount of time necessary to
alleviate such inadequacy in a prudent manner. The report
shall set forth specifically the extent to which benefits
would have to be reduced, taxes under section 1401, 3101,
or 3111 of the Internal Revenue Code of 1986 would have
to be increased, or a combination thereof, in order to ob-
tain the objectives referred to in the preceding sentence.
‘‘(B) In addition to any reports under subparagraph
(A), the Board shall, not later than May 30, 2001, prepare
and submit to Congress and the President recommenda-
tions for statutory adjustments to the disability insurance
program under title II of this Act to modify the changes
in disability benefits under the Strengthening Social Secu-
rity Act of 1998 without reducing the balance ratio of the
Federal Disability Insurance Trust Fund. The Board shall
develop such recommendations in consultation with the
National Council on Disability, taking into consideration
the adequacy of benefits under the program, the relation-
ship of such program with old age benefits under such
title, and changes in the process for determining initial
eligibility and reviewing continued eligibility for benefits
under such program.
‘‘(2)(A) The President shall, no later than 30 days
after the submission of the report to the President, trans-
mit to the Board and to the Congress a report containing
the President’s approval or disapproval of the Board’s rec-
ommendations.
‘‘(B) If the President approves all the recommenda-
tions of the Board, the President shall transmit a copy
of such recommendations to the Congress as the Presi-
dent’s recommendations, together with a certification of
the President’s adoption of such recommendations.
‘‘(C) If the President disapproves the recommenda-
tions of the Board, in whole or in part, the President shall
transmit to the Board and the Congress the reasons for
that disapproval. The Board shall then transmit to the
Congress and the President, no later than 60 days after
the date of the submission of the original report to the
President, a revised list of recommendations.
‘‘(D) If the President approves all of the revised rec-
ommendations of the Board transmitted to the President
under subparagraph (C), the President shall transmit a
copy of such revised recommendations to the Congress as
the President’s recommendations, together with a certifi-
cation of the President’s adoption of such recommenda-
tions.
‘‘(E) If the President disapproves the revised rec-
ommendations of the Board, in whole or in part, the Presi-
dent shall transmit to the Board and the Congress the
reasons for that disapproval, together with such revisions
to such recommendations as the President determines are
necessary to bring such recommendations within the
President’s approval. The President shall transmit a copy
of such recommendations, as so revised, to the Board and
the Congress as the President’s recommendations, to-
gether with a certification of the President’s adoption of
such recommendations.
‘‘(3)(A) This paragraph is enacted by Congress—
‘‘(i) as an exercise of the rulemaking power of
the Senate and the House of Representatives, re-
spectively, and as such it is deemed a part of the
rules of each House, respectively, but applicable only
with respect to the procedure to be followed in that
House in the case of a joint resolution described in
subparagraph (B), and it supersedes other rules only
to the extent that it is inconsistent with such rules;
and
‘‘(ii) with full recognition of the constitutional
right of either House to change the rules (so far as
relating to the procedure of that House) at any time,
in the same manner, and to the same extent as in
the case of any other rule of that House.
‘‘(B) For purposes of this paragraph, the term ‘joint
resolution’ means only a joint resolution which is intro-
duced within the 10-day period beginning on the date on
which the President transmits the President’s rec-
ommendations, together with the President’s certification,
to the Congress under subparagraph (B), (D), or (E) of
paragraph (2), and—
‘‘(i) which does not have a preamble;
‘‘(ii) the matter after the resolving clause of
which is as follows: ‘That the Congress approves the
recommendations of the President as transmitted on
ll pursuant to section 709(a) of the Social Secu-
rity Act, as follows: llll’, the first blank space
being filled in with the appropriate date and the sec-
ond blank space being filled in with the statutory ad-
justments contained in the recommendations; and
to the same effect has been disagreed to) for any Member
of the respective House to move to proceed to the consider-
ation of the joint resolution. A Member may make the mo-
tion only on the day after the calendar day on which the
Member announces to the House concerned the Member’s
intention to make the motion, except that, in the case of
the House of Representatives, the motion may be made
without such prior announcement if the motion is made
by direction of the committee to which the joint resolution
was referred. All points of order against the joint resolu-
tion (and against consideration of the joint resolution) are
waived. The motion is highly privileged in the House of
Representatives and is privileged in the Senate and is not
debatable. The motion is not subject to amendment, or
to a motion to postpone, or to a motion to proceed to the
consideration of other business. A motion to reconsider the
vote by which the motion is agreed to or disagreed to shall
not be in order. If a motion to proceed to the consideration
of the joint resolution is agreed to, the respective House
shall immediately proceed to consideration of the joint res-
olution without intervening motion, order, or other busi-
ness, and the joint resolution shall remain the unfinished
business of the respective House until disposed of.
‘‘(ii) Debate on the joint resolution, and on all debat-
able motions and appeals in connection therewith, shall be
limited to not more than 2 hours, which shall be divided
equally between those favoring and those opposing the
joint resolution. An amendment to the joint resolution is
not in order. A motion further to limit debate is in order
and not debatable. A motion to postpone, or a motion to
proceed to the consideration of other business, or a motion
to recommit the joint resolution is not in order. A motion
to reconsider the vote by which the joint resolution is
agreed to or disagreed to is not in order.
‘‘(iii) Immediately following the conclusion of the de-
bate on a joint resolution described in subparagraph (B)
and a single quorum call at the conclusion of the debate
if requested in accordance with the rules of the appro-
priate House, the vote on final passage of the joint resolu-
tion shall occur.
‘‘(iv) Appeals from the decisions of the Chair relating
to the application of the rules of the Senate or the House
of Representatives, as the case may be, to the procedure
relating to a joint resolution described in subparagraph
(B) shall be decided without debate.
‘‘(F)(i) If, before the passage by one House of a joint
resolution of that House described in subparagraph (B),
that House receives from the other House a joint resolu-
tion described in subparagraph (B), then the following
procedures shall apply:
‘‘(I) The joint resolution of the other House
shall not be referred to a committee and may not be
considered in the House receiving it except in the
case of final passage as provided in subclause (II).
‘‘(II) With respect to a joint resolution de-
scribed in subparagraph (B) of the House receiving
the joint resolution, the procedure in that House
shall be the same as if no joint resolution had been
received from the other House, but the vote on final
passage shall be on the joint resolution of the other
House.
‘‘(ii) Upon disposition of the joint resolution received
from the other House, it shall no longer be in order to
consider the joint resolution that originated in the receiv-
ing House.
‘‘(b) If the Board of Trustees of the Federal Hospital
Insurance Trust Fund or the Federal Supplementary
Medical Insurance Trust Fund determines as any time
that the balance ratio of either such Trust Fund’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 709(b) of such Act (as amended by
subsection (a) of this section) is amended by striking
‘‘any such’’ and inserting ‘‘either such’’.
(2) Section 709(c) of such Act (as redesignated
by subsection (a) of this section) is amended by in-
serting ‘‘or (b)’’ after ‘‘subsection (a)’’.
Æ