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(C) by inserting after paragraph (5) the
following:
‘‘(6) such plan is a personal investment payroll
deduction plan established under part B of title II
of the Social Security Act and does not provide for
employer contributions.’’.
(4) EFFECTIVE DATE AND NOTICE REQUIRE-
MENTS.—
(A) EFFECTIVE DATE.—The amendments
made by this subsection (and any personal in-
vestment payroll deduction plan required there-
under) apply with respect to wages paid after
December 31, 1997, for pay periods ending
after such date and self-employment income for
taxable years beginning after such date.
(B) NOTICE REQUIREMENTS.—
(i) IN GENERAL.—Not later than Oc-
tober 1, 1999, the Commissioner of Social
Security shall—
(I) send to the last known ad-
dress of each eligible individual a de-
scription of the program established
by the amendments made by this sec-
tion, which shall be written in the
form of a pamphlet in language which
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may be readily understood by the av-
erage worker,
(II) provide for toll-free access by
telephone from all localities in the
United States to the Social Security
Administration through which individ-
uals may obtain information and an-
swers to questions regarding such pro-
gram, and
(III) provide information to the
media in all localities of the United
States about such program and such
toll-free access by telephone.
(ii) ELIGIBLE INDIVIDUAL.—For pur-
poses of this subparagraph, the term ‘‘eli-
gible individual’’ means an individual who,
as of the date of the pamphlet sent pursu-
ant to clause (i), is indicated within the
records of the Social Security Administra-
tion as—
(I) not having attained age 55,
and
(II) being credited with 1 or
more quarters of coverage under sec-
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tion 213 of the Social Security Act
(42 U.S.C. 413).
(iii) MATTERS
TO
BE
INCLUDED.—
The Commissioner shall include with the
pamphlet sent to each eligible individual
pursuant to clause (i)—
(I) a statement of the number of
quarters of coverage indicated in the
records of the Social Security Admin-
istration as of the date of the descrip-
tion as credited to such individual
under section 213 of such Act and the
date as of which such records may be
considered accurate, and
(II) the number for toll-free ac-
cess by telephone established by the
Commissioner pursuant to clause (i).
(c) 
ADJUSTMENTS
TO
PRIMARY
INSURANCE
AMOUNTS.—
(1) IN GENERAL.—Section 215 of the Social
Security Act (42 U.S.C. 415) is amended by adding
at the end the following:
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‘‘Adjustment of Primary Insurance Amount of Eligible
Employees and Eligible Self-Employed Individuals
Under Part B
‘‘(j)(1) Except as provided in paragraph (2), in the
case of an individual who is—
‘‘(A) an eligible employee, as defined under sec-
tion 255(3), or
‘‘(B) an eligible self-employed individual, as de-
fined under section 255(4),
such individual’s primary insurance amount shall be deter-
mined under subsection (a)(1)(A) (before subsequent ad-
justments made under subsection (i)), by substituting the
first, second, and third primary insurance amount factors
determined in the following table for the primary insur-
ance amount factors ‘‘90’’, ‘‘32’’, and ‘‘15’’ in clauses (i),
(ii), and (iii), respectively:
‘‘If individual’s age in 2000 is:
The PIA factors for such in-
dividual are—
First
Second
Third
25 and under ..........................................................
26 to 35 ..................................................................
35 to 45 ..................................................................
45 to 55 ..................................................................
55 and over .............................................................
‘‘(2)(A) In the case of an individual described in
paragraph (1) who has not attained age 55 in 1998 and
who becomes entitled to disability insurance benefits under
section 223 or dies before attaining age 62, such individ-
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ual’s second and third primary insurance amount factors
shall equal such factors contained in the table in para-
graph (1) for individuals who have attained age 55 or over
in 2000, reduced by the amount described in subpara-
graph (B).
‘‘(B) The amount described in this subparagraph is
equal to—
‘‘(i) the excess of—
‘‘(I) the second (or third) primary insur-
ance amount factor contained in the table in
paragraph (1) for individuals who have attained
age 55 or over in 2000, over
‘‘(II) the second (or third) primary insur-
ance amount factor contained in such table for
individuals of the age of the individual in 2000;
multiplied by—
‘‘(ii) the fraction—
‘‘(I) the numerator of which is the number
of years such individual is alive and not dis-
abled after age 21 (or after 2000, if later) and
before age 62, and
‘‘(II) the denominator of which is 40 (or
the number of years after 2000 and before the
year the individual attains age 62, if less).’’.
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(2) CONFORMING
AMENDMENT
TO
RAILROAD
RETIREMENT ACT OF 1974.—Section 1 of the Rail-
road Retirement Act of 1974 (45 U.S.C. 231) is
amended by adding at the end the following:
‘‘(s) In applying applicable provisions of the Social
Security Act for purposes of determining the amount of
the annuity to which an individual is entitled under this
Act, such individual shall not be treated as an ‘eligible
individual’ as defined in section 253(4) of the Social Secu-
rity Act.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection apply with respect to months after
December 1999.
SEC. 3. PHASED-IN INCREASE IN SOCIAL SECURITY RETIRE-
MENT 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)(I) except as provided in clause (ii),
with respect to an individual who attains age 62
after December 31, 1999, and before January
1, 2029, 65 years of age plus 2⁄12 of the num-
ber of months in the period beginning with Jan-
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uary 2000 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, 70 years
of age, and
‘‘(III) with respect to an individual who at-
tains age 62 after December 31, 2029, 70 years
of age plus 1⁄24 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
‘‘(ii)(I) in the case of widow’s or widower’s
insurance benefits, with respect to an individual
who attains age 60 after December 31, 1999,
and before January 1, 2029, 63 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 60,
‘‘(II) with respect to an individual who at-
tains age 60 after December 31, 2028, 68 years
of age, and
‘‘(III) with respect to an individual who at-
tains age 60 after December 31, 2029, 68 years
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of age plus 1⁄24 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 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) except as otherwise provided in this
paragraph, age 62 in the case of an old-age,
wife’s, or husband’s insurance benefit, and age
60 in the case of a widow’s or widower’s insur-
ance benefit;
‘‘(B)(i)(I) except as provided in clause (ii),
with respect to an individual who attains age 62
after December 31, 1999, and before January
1, 2017, 62 years of age plus 2⁄12 of the num-
ber of months in the period beginning with Jan-
uary 2000 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, 2016, 65 years
of age, and
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‘‘(III) with respect to an individual who at-
tains age 62 after December 31, 2029, 65 years
of age plus 1⁄24 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
‘‘(ii)(I) in the case of widow’s and widow-
er’s insurance benefits, with respect to an indi-
vidual who attains age 60 after December 31,
1999, and before January 1, 2017, 60 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 individ-
ual attains age 60,
‘‘(II) with respect to such an individual
who attains age 60 after December 31, 2016,
63 years of age, and
‘‘(III) with respect to such an individual
who attains age 60 after December 31, 2029,
63 years of age plus 1⁄24 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 60 (rounded
down to a full month).’’.
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(c) REDUCTION IN BENEFITS FOR EARLY RETIREES
MAINTAINED
AT
CURRENT
LEVEL.—Section
202(q)(9)(A) of the Social Security Act (42 U.S.C.
402(q)(9)(A)) is amended by inserting ‘‘, but in no event
shall be greater than 30 percent’’ before the semicolon.
SEC. 4. MODIFICATION OF CPI CALCULATION FOR SOCIAL
SECURITY COLAS.
Notwithstanding any other provision of title II of the
Social Security Act, with respect to calculations made
after December 31, 1999, with respect to any cost-of-liv-
ing calculation under such title, the Bureau of Labor Sta-
tistics of the Department of Labor shall reduce the annual
percentage change in the Consumer Price Indexes, as de-
termined without regard to this section, by 0.5 percentage
point.
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