(b) 
WIDOW’S
INSURANCE
BENEFITS.—Section 
202(e)(2) of such Act (42 U.S.C. 402(e)(2)) is amended—
(1) in subparagraph (A), by striking ‘‘the pri-
mary insurance amount’’ and inserting ‘‘110 percent 
of the primary insurance amount’’; 
(2) in subparagraph (D)(i), by inserting ‘‘110 
percent of’’ before ‘‘the amount’’; and 
(3) in subparagraph (D)(ii), by striking ‘‘821⁄2 
percent’’ and inserting ‘‘901⁄4 percent’’. 
(c) WIDOWER’S
INSURANCE
BENEFITS.—Section 
202(f)(3) of such Act (42 U.S.C. 402(f)(3)) is amended—
(1) in subparagraph (A), by striking ‘‘the pri-
mary insurance amount’’ and inserting ‘‘110 percent 
of the primary insurance amount’’; 
(2) in subparagraph (D)(i), by inserting ‘‘110 
percent of’’ before ‘‘the amount’’; and 
(3) in subparagraph (D)(ii), by striking ‘‘821⁄2 
percent’’ and inserting ‘‘901⁄4 percent’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to benefits for months 
after December 2004. 
SEC. 306. 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 at-
tain retirement age after calendar year 2004. 
SEC. 307. 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) 
is amended further by adding at the end the following new 
subsection: 
‘‘Reimbursement of Federal Disability Insurance Trust 
Fund for Certain Costs of Disability Insurance Benefits 
‘‘(p) Clauses (vi) and (vii) of section 215(a)(1)(B) 
shall apply with respect to benefits paid during any fiscal 
year only to the extent provided for in advance in an Ap-
propriation Act providing for reimbursement of the Fed-
eral Disability Insurance Trust Fund for any portion of 
such benefits representing a net increase resulting from 
the operation of such clauses. The Commissioner of Social 
Security shall report to each House of the Congress as
soon as practicable before each fiscal year the Commis-
sioner’s determination of the amounts necessary to provide 
for any such net increase for such fiscal year.’’.
SEC. 308. STUDY TO DEVELOP RECOMMENDATIONS FOR 
PROVIDING FOR ELECTIONS UNDER WHICH 
INDIVIDUALS 
MAY 
OPT 
FOR 
EXCLUSION 
FROM SOCIAL SECURITY COVERAGE. 
(a) IN GENERAL.—As soon as practicable after the 
date of the enactment of this Act, the Commissioner of 
Social Security shall conduct a thorough and comprehen-
sive study of the most appropriate and feasible means of 
providing for elections under which individuals may opt 
for exclusion from coverage under the old-age, survivors, 
and disability insurance program under part A of title II 
of the Social Security Act and chapters 2 and 21 of the 
Internal Revenue Code of 1986. 
(b) REQUIREMENTS.—In conducting the study pursu-
ant to this section, the Commissioner shall prepare and 
make full use, as appropriate, of such econometric models 
and actuarial analyses as are necessary to carry out such 
study. Such study shall take into account the extent to 
which the old-age, survivors, and disability insurance pro-
gram may accommodate such elections and the terms and 
conditions for such elections which would most effectively 
permit such accommodation. The Commissioner shall con-
duct the study pursuant to this section in consultation 
with the Board of Trustees of the Federal Old-Age and 
Survivors Insurance Trust Fund and the Federal Dis-
ability Insurance Trust Fund and with other appropriate 
departments and agencies of the Federal Government, and 
such other departments and agencies shall provide to the 
Commissioner such assistance, on a reimbursable basis, as 
may be necessary and appropriate. 
(c) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Commissioner of Social 
Security shall submit to the Committee on Ways and 
Means of the House of Representatives and the Committee 
on Finance of the Senate a written report containing a 
recommendation, or alternative recommendations, for pro-
viding for elections described in subsection (a). Such re-
port shall contain a complete description of the models and 
analyses used in carrying out the study pursuant to this 
section and shall be accompanied by draft legislation 
which, if enacted, would carry out the recommendations 
contained in the report.
SEC. 309. INCREASE IN NUMBER OF YEARS DISREGARDED 
IN DETERMINING AVERAGE ANNUAL EARN-
INGS ON WHICH BENEFIT AMOUNTS ARE 
BASED WHERE REMUNERATIVE WORK IS 
PRECLUDED BY NEED TO PROVIDE CHILD 
CARE. 
(a) IN GENERAL.—Section 215(b)(2) of the Social 
Security Act (42 U.S.C. 415(b)(2)) is amended—
(1) by striking the period at the end of clause 
(ii) of subparagraph (A) and inserting a comma; 
(2) by striking ‘‘Clause (ii), once’’ after and 
below clause (ii) of subparagraph (A) and inserting 
the following: 
‘‘and reduced further to the extent provided in subpara-
graph (B). Clause (ii), once’’; 
(3) by striking ‘‘If an individual’’ in the matter 
following clause (ii) of subparagraph (A) and all that 
follows through the end of subparagraph (A); 
(4) by redesignating subparagraph (B) as sub-
paragraph (F); and 
(5) by inserting after subparagraph (A) the fol-
lowing new subparagraphs: 
‘‘(B) Subject to subparagraph (C), in any case in 
which—
‘‘(i) in any calendar year which is included in 
an individual’s computation base years, such indi-
vidual is living with a child (of such individual or his 
or her spouse) under the age of 13, 
‘‘(ii) such calendar year is not disregarded pur-
suant to subparagraphs (A) and (E) (in determining 
such individual’s benefit computation years) by rea-
son of the reduction in the number of such individ-
ual’s elapsed years under subparagraph (A), and 
‘‘(iii) during such calendar year, such individual 
submits to the Commissioner of Social Security, in 
such form as the Commissioner shall prescribe by 
regulations, a written statement that the require-
ments of clause (i) are met with respect to such cal-
endar year, 
then the number by which such elapsed years are reduced 
under this paragraph pursuant to subparagraph (A) shall 
be increased by one (up to a combined total not exceeding 
5) for each such calendar year. 
‘‘(C)(i) No calendar year shall be disregarded by rea-
son of subparagraph (B) (in determining such individual’s 
benefit computation years) unless the individual had no 
earnings as described in section 203(f)(5) for such year. 
‘‘(ii) No calendar year shall be disregarded by reason 
of subparagraph (B) (in determining such individual’s 
benefit computation years) in connection with a child re-
ferred to in subparagraph (B)(i) unless the individual was
living with the child substantially throughout the period 
in such year in which the child was alive and under the 
age of 13 in such year. 
‘‘(iii) The particular calendar years to be disregarded 
under this subparagraph (in determining such benefit 
computation years) shall be those years (not otherwise dis-
regarded under subparagraph (A)) which, before the appli-
cation of subsection (f), meet the conditions of the pre-
ceding provisions of this subparagraph. 
‘‘(iv) This subparagraph shall apply only to the extent 
that its application would not result in a lower primary 
insurance amount. 
‘‘(D) The number of an individual’s benefit computa-
tion years as determined under this paragraph shall in no 
case be less than 2.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply only with respect to computation 
base years after 2003. 
SEC. 310. EXCLUSION OF DISABLED ADULT CHILDREN 
FROM REDUCTION IN BENEFITS UNDER THE 
FAMILY MAXIMUM PROVISIONS. 
(a) IN GENERAL.—Section 203(a)(3) of the Social 
Security Act (42 U.S.C. 403(a)(3)) is amended by adding 
at the end the following new subparagraph:
‘‘(E) When any of the individuals who are entitled 
to benefits on the basis of the wages and self-employment 
income of any insured individual and to whom this sub-
section applies is entitled to child’s insurance benefits 
under section 202(d) on the basis of such wages and self-
employment 
income 
and 
is 
described 
in 
section 
202(d)(1)(G), the benefit to which he or she is so entitled 
for any month shall be determined without regard to this 
subsection, and the benefits of all other individuals who 
are entitled for such month to monthly benefits under sec-
tion 202 on the basis of the wages and self-employment 
income of such insured individual shall be determined as 
if no such child were entitled to benefits for such month.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply with respect to benefits for months 
after December 2003. 
TITLE IV—RETIREMENT 
SECURITY 
SEC. 401. PENSIONS AND INDIVIDUAL RETIREMENT AR-
RANGEMENT PROVISIONS OF THE ECONOMIC 
GROWTH AND TAX RELIEF RECONCILIATION 
ACT OF 2001 MADE PERMANENT. 
(a) IN GENERAL.—Section 901 of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 is
amended by adding at the end the following new sub-
section: 
‘‘(c) EXCEPTION.—Subsections (a) and (b) shall not 
apply to the provisions of, and amendments made by, sub-
titles (A) through (F) of title VI (relating to pension and 
individual retirement arrangement provisions).’’. 
(b) CONFORMING AMENDMENTS.—Section 901(b) of 
such Act is amended—
(1) by striking ‘‘and the Employee Retirement 
Income Security Act of 1974’’ in the text, and 
(2) by striking ‘‘OF CERTAIN LAWS’’ in the 
heading. 
SEC. 402. ACCELERATION OF PHASE-INS OF SCHEDULED 
INCREASES IN IRA AND PENSION PLAN CON-
TRIBUTION LIMITS. 
(a) IRA CONTRIBUTION LIMIT.—
(1) DEDUCTIBLE AMOUNT.—Subparagraph (A) 
of section 219(b)(5) of the Internal Revenue Code of 
1986 is amended to read as follows: 
‘‘(A) 
IN
GENERAL.—The 
deductible 
amount shall be $5,000.’’. 
(2) CATCH-UP AMOUNT.—Subparagraph (B) of 
section 219(b)(5) of such Code is amended to read 
as follows:
‘‘(B) CATCH-UP CONTRIBUTIONS FOR INDI-
VIDUALS 50 OR OLDER.—In the case of an indi-
vidual who has attained the age of 50 before 
the close of the taxable year, the dollar amount 
in effect under paragraph (1)(A) for such tax-
able year (determined without regard to this 
paragraph) shall be increased by $1,000.’’. 
(b) ELECTIVE DEFERRALS.—Subparagraph (B) of 
section 402(g)(1) of such Code is amended by striking 
‘‘the amount determined’’ and all that follows and insert-
ing ‘‘$15,000.’’. 
(c) DEFERRED COMPENSATION PLANS
OF STATE 
AND LOCAL GOVERNMENTS AND TAX-EXEMPT ORGANI-
ZATIONS.—Subparagraph (A) of section 457(e)(15) of 
such Code is amended by striking ‘‘the amount deter-
mined’’ and all that follows and inserting ‘‘$15,000.’’. 
(d) SIMPLE RETIREMENT ACCOUNTS.—Clause (i) of 
section 408(p)(2)(E) of such Code is amended by striking 
‘‘the amount determined’’ and all that follows and insert-
ing ‘‘$10,000.’’. 
(e) CATCH-UP CONTRIBUTIONS.—Subparagraph (B) 
of section 414(v)(2)(B) of such Code is amended—
(1) in clause (i) by striking ‘‘determined’’ and 
all that follows and inserting ‘‘$5,000.’’, and
(2) in clause (ii) by striking ‘‘determined’’ and 
all that follows and inserting ‘‘$2,500.’’. 
(f) CONFORMING CHANGES
TO RELATED COLA 
PROVISIONS.—
(1) IRAS.—Clause (i) of section 219(b)(5)(C) 
of such Code is amended—
(A) by striking ‘‘2008’’ and inserting 
‘‘2005’’, and 
(B) by striking ‘‘2007’’ and inserting 
‘‘2004’’. 
(2) ELECTIVE DEFERRALS.—Paragraph (4) of 
section 402(g) of such Code is amended—
(A) by striking ‘‘2006’’ and inserting 
‘‘2005’’, and 
(B) by striking ‘‘2005’’ and inserting 
‘‘2004’’. 
(3) DEFERRED
COMPENSATION
PLANS
OF 
STATE AND LOCAL GOVERNMENTS AND TAX-EXEMPT 
ORGANIZATIONS.—Subparagraph 
(B) 
of 
section 
457(e)(15) of such Code is amended—
(A) by striking ‘‘2006’’ and inserting 
‘‘2005’’, and 
(B) by striking ‘‘2005’’ and inserting 
‘‘2004’’.
(4) CATCH-UP CONTRIBUTIONS.—Subparagraph 
(C) of section 414(v)(2) of such Code is amended—
(A) by striking ‘‘2006’’ and inserting 
‘‘2005’’, and 
(B) by striking ‘‘2005’’ and inserting 
‘‘2004’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to years beginning after December 
31, 2004. 
SEC. 403. REFUNDABLE CREDIT FOR PREMIUMS ON QUALI-
FIED LONG-TERM CARE INSURANCE CON-
TRACTS. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to refundable credits) is amended by redes-
ignating section 36 as section 37 and by inserting after 
section 35 the following new section: 
‘‘SEC. 36. PREMIUMS ON QUALIFIED LONG-TERM CARE IN-
SURANCE CONTRACTS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to 33 percent of the amount of the eligible long-
term care premiums (as defined in section 213(d)(10)) 
paid during the taxable year for coverage for the taxpayer,