(B) CHAINED CPI.—The Chained CPI for 
any period means, in connection with any ben-
efit described in paragraph (4), the average 
monthly Chained Consumer Price Index for all 
urban consumers (published by the Bureau of 
Labor Statistics of the Department of Labor) 
for such period, determined under applicable 
law in the same manner as the CPI for such pe-
riod would be determined. 
(4) RULES TO APPLY ONLY TO COMPUTATION 
OF BENEFIT AMOUNTS.—The preceding provisions of 
this subsection shall apply only for purposes of de-
termining the amount of benefits and not for pur-
poses of determining—
(A) whether a threshold increase in the 
Consumer Price Index has been met, or 
(B) increases in amounts under other pro-
visions of law not described in paragraph (5) 
which operate by reference to increases in such 
benefits. 
(5) BENEFITS
TO
WHICH
SUBSECTION
AP-
PLIES.—For purposes of this subsection, the benefits 
described in this paragraph are—
(A) retired and retainer pay subject to ad-
justment under section 1401a of title 10, 
United States Code; 
(B) civil service retirement benefits under 
section 8340 of title 5, United States Code, for-
eign service retirement benefits under section 
826 of the Foreign Service Act of 1980, Central 
Intelligence Agency retirement benefits under 
part J of the Central Intelligence Agency Re-
tirement Act of 1964 for certain employees, and 
any other benefits under any similar provision 
under any retirement system for employees of 
the government of the United States; 
(C) Federal workers’ compensation under 
section 8146a of title 5, United States Code; 
(D) benefits under section 3(a), 4(a), or 
4(f) of the Railroad Retirement Act of 1974; 
and 
(E) benefits and expenditure limits under 
title XVIII or XIX of the Social Security Act. 
(6) BENEFIT.—For purposes of this section, 
the term ‘‘benefit’’ includes a payment. 
(d) RECAPTURE TO FEDERAL OLD-AGE AND SUR-
VIVORS INSURANCE TRUST FUND.—Section 201 of the
Social Security Act (42 U.S.C. 401) is amended by adding 
at the end the following new subsection: 
‘‘(o) On July 1 of each calendar year specified in the 
following table, the Secretary of the Treasury shall trans-
fer, from the general fund of the Treasury to the Federal 
Old-Age and Survivors Insurance Trust Fund, an amount 
equal to the applicable percentage for such year, specified 
in such table, of the total wages paid in and self-employ-
ment income credited to such year.
‘‘For the following 
The applicable 
calendar years: 
percentage is: 
After 2006 and before 2008 .............................................................. 0.02
After 2007 and before 2009 .............................................................. 0.04
After 2008 and before 2010 .............................................................. 0.10
After 2009 and before 2011 .............................................................. 0.12
After 2010 and before 2012 .............................................................. 0.13
After 2011 and before 2013 .............................................................. 0.20
After 2012 and before 2014 .............................................................. 0.24
After 2013 and before 2015 .............................................................. 0.29
After 2014 and before 2021 .............................................................. 0.33
After 2020 and before 2045 .............................................................. 0.39
After 2044 and before 2065 .............................................................. 0.47
After 2064 .......................................................................................... 0.57.’’.
SEC. 8. ADJUSTMENTS TO BEND POINTS IN DETERMINING 
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 to read as follows: 
‘‘(a)(1)(A)(i) Subject to clause (ii), the primary in-
surance amount of an individual shall (except as otherwise 
provided in this section) be equal to the sum of—
‘‘(I) 90 percent of the individual’s average in-
dexed monthly earnings (determined under sub-
section (b)) to the extent that such earnings do not 
exceed the amount established for purposes of this 
subclause by subparagraph (B), 
‘‘(II) 70 percent of the individual’s average in-
dexed monthly earnings to the extent that such 
earnings exceed the amount established for purposes 
of subclause (I) but do not exceed the amount estab-
lished for purposes of this subclause by subpara-
graph (B), 
‘‘(III) 20 percent of the individual’s average in-
dexed monthly earnings to the extent that such 
earnings exceed the amount established for purposes 
of subclause (II) but do not exceed the amount es-
tablished for purposes of this subclause by subpara-
graph (B), and 
‘‘(IV) 10 percent of the individual’s average in-
dexed monthly earnings to the extent that such 
earnings exceed the amount established for purposes 
of this clause by subparagraph (B). 
‘‘(ii) In the case of individuals becoming eligible for 
old-age or disability insurance benefits, or dying (before 
becoming eligible for such benefits), in any calendar year 
after 2005 and before 2016—
‘‘(I) In lieu of the percentage specified in sub-
clause (II) of clause (i), the applicable percentage
set forth in the following table in connection with 
such calendar year shall apply:
The applicable 
‘‘If the calendar year is: 
percentage is: 
2006 ...................................................................................................
35.8
2007 ...................................................................................................
39.6
2008 ...................................................................................................
43.4
2009 ...................................................................................................
47.2
2010 ...................................................................................................
51.0
2011 ...................................................................................................
54.8
2012 ...................................................................................................
58.6
2013 ...................................................................................................
62.4
2014 ...................................................................................................
66.2.
‘‘(II) In lieu of the percentage specified in sub-
clause (III) of clause (i), the applicable percentage 
set forth in the following table in connection with 
such calendar year shall apply:
The applicable 
‘‘If the calendar year is: 
percentage is: 
2006 ...................................................................................................
30.8
2007 ...................................................................................................
29.6
2008 ...................................................................................................
28.4
2009 ...................................................................................................
27.2
2010 ...................................................................................................
26.0
2011 ...................................................................................................
24.8
2012 ...................................................................................................
23.6
2013 ...................................................................................................
22.4
2014 ...................................................................................................
21.2.
‘‘(III) In lieu of the percentage specified in sub-
clause (IV) of clause (i), the applicable percentage 
set forth in the following table in connection with 
such calendar year shall apply:
The applicable 
‘‘If the calendar year is: 
percentage is: 
2006 ................................................................................................... 14.5
2007 ................................................................................................... 14.0
2008 ................................................................................................... 13.5
2009 ................................................................................................... 13.0
2010 ................................................................................................... 12.5
2011 ................................................................................................... 12.0
2012 ................................................................................................... 11.5
The applicable 
‘‘If the calendar year is: 
percentage is: 
2013 ................................................................................................... 11.0
2014 ................................................................................................... 10.5.’’.
(b) INITIAL LEVEL OF ADDITIONAL BEND POINT.—
Section 
215(a)(1)(B) 
of 
such 
Act 
(42 
U.S.C. 
415(a)(1)(B)) is amended—
(1) in clause (i), by inserting ‘‘(as then in ef-
fect)’’ after ‘‘subparagraph (A)’’, and by adding at 
the end the following new sentence: ‘‘For individuals 
who initially become eligible for old-age or disability 
insurance benefits, or who die (before becoming eli-
gible for such benefits) after 2005, such dollar 
amounts shall be deemed to have been so established 
in 1979 for purposes of subclauses (I) and (III) of 
subparagraph (A)(i), respectively, as in effect with 
respect to such individuals.’’; 
(2) by redesignating clause (iii) as clause (iv); 
(3) by inserting after clause (ii) the following 
new clause: 
‘‘(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 2005, the amount established for purposes of clause 
(ii) of subparagraph (A) for such calendar year after 2005 
shall be 183.8 percent of the amount established for pur-
poses of clause (i) for such calendar year.’’; and
(4) in clause (iv) (as redesignated by paragraph 
(1)), by striking ‘‘clause (ii)’’ and inserting ‘‘clauses 
(ii) and (iii)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to individuals becom-
ing eligible for old-age insurance benefits or disability in-
surance benefits, or dying (before becoming eligible for 
such benefits), after 2005. 
SEC. 9. ADJUSTMENT TO BENEFIT FORMULA FACTORS. 
Section 215(a)(1)(B) of the Social Security Act (42 
U.S.C. 415(a)(1)(B)) (as amended by section 8) is amend-
ed further—
(1) by redesignating clause (iv) as clause (vii); 
and 
(2) by inserting after clause (iii) the following: 
‘‘(iv) For an individual who initially becomes eligible 
for old-age insurance benefits, or who dies (before becom-
ing eligible for such benefits or disability insurance bene-
fits), in any calendar year after 2011, each of the amounts 
otherwise established for purposes of subclauses (I), (II), 
(III), and (IV) of subparagraph (A)(i) under this subpara-
graph shall be substituted with the product derived by suc-
cessively multiplying, once for each year of the factoring 
period for such individual—
‘‘(I) such amount (after applying this clause for 
earlier years of the factoring period), by 
‘‘(II) the designated factor for such year. 
‘‘(v) For purposes of clause (iii), the term ‘factoring 
period’ means, for an individual, the period beginning with 
2012 and ending with the earlier of—
‘‘(I) the year of the individual’s initial eligibility 
or death, or 
‘‘(II) 2060. 
‘‘(vi) For purposes of clause (iii), the term ‘des-
ignated factor’ means—
‘‘(I) for a year prior to 2031, 0.975, except 
that, for any such year, such factor shall be 1.000 
with respect to amounts otherwise established for 
purposes of subclause (I) of subparagraph (A)(i) 
under this subparagraph, and 
‘‘(II) for a year after 2030, 0.985.’’. 
SEC. 10. MODIFICATION TO PIA FORMULA TO REFLECT 
CHANGES TO LIFE EXPECTANCY. 
(a) IN GENERAL.—Section 215(a)(1) of the Social 
Security Act (42 U.S.C. 415(a)(1)(B)) is amended by re-
designating subparagraph (C) and (D) as subparagraphs 
(D) and (E), respectively, and by inserting after subpara-
graph (B) the following new subparagraph:
‘‘(C)(i) For individuals who initially become eligible 
for old-age insurance benefits (or who die before becoming 
eligible for such benefits) in any calendar year after 2011, 
the primary insurance amount computed under this para-
graph shall be the product derived by multiplying such 
amount as computed under the preceding subparagraphs 
of this paragraph by the life expectancy ratio for such cal-
endar year. 
‘‘(ii) The Commissioner of Social Security, using gen-
erally accepted actuarial principles, shall determine and 
publish in the Federal Register on or before November 1 
of each calendar year the life expectancy ratio for the fol-
lowing calendar year. 
‘‘(iii) For purposes of clause (ii), the life expectancy 
ratio for any calendar year is the ratio of—
‘‘(I) the period life expectancy of an individual 
attaining age 62 on January 1, 2008, to 
‘‘(II) the period life expectancy of an individual 
attaining age 62 on January 1 of the third calendar 
year preceding the calendar year in which the deter-
mination under clause (ii) is made.’’. 
(b) STUDY OF THE EFFECT OF INCREASES IN LIFE 
EXPECTANCY.—
(1) STUDY
PLAN.—Not later than December 
15, 2006, the Commissioner of Social Security shall
submit to Congress a detailed study plan for evalu-
ating the effects of increases in life expectancy on 
the expected level of retirement income from social 
security, pensions, and other sources. The study 
plan shall include a description of the methodology, 
data, and funding that will be required in order to 
provide to the Congress not later than February 15, 
2008—
(A) an evaluation of trends in mortality 
and their relationship to trends in health sta-
tus, among individuals approaching eligibility 
for old-age insurance benefits under title II of 
the Social Security Act; 
(B) an evaluation of trends in labor force 
participation among individuals approaching eli-
gibility for such benefits and among individuals 
receiving such benefits, and of the factors that 
influence the choice between retirement and 
participation in the labor force; 
(C) an evaluation of changes, if any, in the 
disability insurance program under title II of 
the Social Security Act that would reduce the 
impact of changes in the retirement income of 
workers in poor health or physically demanding 
occupations;
(D) an evaluation of the methodology used 
to develop projections for trends in mortality, 
health status, and labor force participation 
among individuals approaching eligibility for 
old-age insurance benefits and among individ-
uals receiving such benefits; and 
(E) an evaluation of such other matters as 
the Commissioner deems appropriate for evalu-
ating the effects of increases in life expectancy. 
(2) REPORT ON RESULTS OF STUDY.—Not later 
than February 15, 2008, the Commissioner of Social 
Security shall provide to the Congress an evaluation 
of the implications of the trends studied under para-
graph (1), along with recommendations, if any, of 
the extent to which the conclusions of such evalua-
tions indicate that projected increases in life expect-
ancy require modification in the disability insurance 
program under title II of the Social Security Act 
and other income support programs. 
SEC. 11. TREATMENT OF DISABLED BENEFICIARIES. 
Section 215(a) of the Social Security Act (42 U.S.C. 
415(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(8)(A) Notwithstanding the preceding provisions of 
this subsection, in the case of an individual who has or
has had a period of disability and becomes entitled to old-
age insurance benefits under section 202(a) (or dies) in 
or after 2006, the primary insurance amount of such indi-
vidual shall be the sum of—
‘‘(i) the amount determined under subpara-
graph (B), and 
‘‘(ii) the product derived by multiplying—
‘‘(I) the excess of the amount determined 
under subparagraph (C) over the amount deter-
mined under subparagraph (B), by 
‘‘(II) the adjustment factor for such indi-
vidual determined under subparagraph (D). 
‘‘(B) The amount determined under this subpara-
graph is the amount of such individual’s primary insur-
ance amount as determined under this section without re-
gard to this paragraph. 
‘‘(C) The amount determined under this subpara-
graph is the amount of such individual’s primary insur-
ance amount as determined under this section as in effect 
with respect to individuals becoming eligible for old-age 
or disability insurance benefits under section 202(a) in 
2004. 
‘‘(D)(i) Subject to clause (ii), the adjustment factor 
determined under this subparagraph for any individual is 
the ratio (not greater than 1) of—