Commissioner of Social Security, in consultation
with the Board. Such regulations shall provide for
the filing of such elections during regularly sched-
uled intervals. Such an election shall be irrevocable
and shall be effective with respect to wages earned,
and self-employment income derived, on or after
January 1 following the date of such filing.
‘‘(2) REQUIREMENTS.—An election by an indi-
vidual under this subsection is an election, filed with
the Commissioner, in such form and manner as shall
be prescribed in regulations of the Commissioner,
consisting of a written and signed declaration of
such individual’s intention to become a covered indi-
vidual under this part. The Commissioner shall pro-
vide for immediate notification to the Board and the
Executive Director of such election.
‘‘(c) TRANSFERS OF SOCIAL SECURITY GUARANTEE
REFUNDABLE CREDITS.—
‘‘(1) IN
GENERAL.—Under regulations which
shall be prescribed by the Secretary of the Treasury
in consultation with the Board, as soon as prac-
ticable during the 1-year period after each calendar
year, while minimizing capital market distortions,
the Secretary of the Treasury shall transfer to each
covered individual’s Social Security guarantee ac-
count, from amounts otherwise available in the gen-
eral fund of the Treasury, an amount equal to the
sum of—
‘‘(A) the amount payable to the covered in-
dividual’s Social Security guarantee account
under section 3511 of the Internal Revenue
Code of 1986 (relating to the Social Security
guarantee refundable credit) with respect to
wages received during such calendar year by the
covered individual and self-employment income
derived by the covered individual during the
such individual’s taxable year ending in such
calendar year, and
‘‘(B) deemed interest on the amount deter-
mined under subparagraph (A) for the period
commencing with July 1 of such calendar year
and ending with the date of the transfer, com-
puted at a rate equal to the average market
yield (computed by the Managing Trustee on
the basis of market quotations as of the end of
the calendar month next preceding the date of
the transfer) on all marketable interest-bearing
obligations of the United States then forming a
part of the public debt which are not due or
callable earlier than 4 years after the end of
such calendar month (rounding any average
market yield computed under this paragraph
which is not a multiple of 1⁄8 of 1 percent to the
nearest multiple of 1⁄8 of 1 percent).
‘‘(2) 
TRANSITION
RULE.—Notwithstanding
paragraph (1), amounts payable to Social Security
guarantee accounts under paragraph (1) with re-
spect to the first calendar year described in para-
graph (1)(A) ending after the date of the enactment
of the Social Security Guarantee Plus Act of 2001
shall be paid by the Secretary of the Treasury as
soon as practicable after such Secretary determines
that the administrative mechanisms necessary to
provide for accurate and efficient payment of such
amounts have been established.
‘‘(3) AVAILABILITY
OF
TRUST
FUNDS
FOR
TRANSFERS.—
‘‘(A) RECOMMENDATIONS
BY
MANAGING
TRUSTEE.—As determined appropriate from
time to time by the Managing Trustee of the
Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance
Trust Fund, the Managing Trustee shall trans-
mit to each House of the Congress the Man-
aging Trustee’s recommendation that amounts
to be transferred to Social Security guarantee
accounts under paragraph (1) be transferred
from such Trust Funds in lieu of the general
fund. Any such recommendation shall take ef-
fect only upon ratification thereof by an Act of
Congress.
‘‘(B) 
DETERMINATIONS
OF
AVAIL-
ABILITY.—The Managing Trustee may not de-
termine that any such transfer from the Trust
Funds is appropriate at any time unless the
Managing 
Trustee 
has 
determined 
that
amounts in such Trust Fund are available at
such time for such transfers. For purposes of
this subparagraph, amounts in either of the
Trust Funds shall be considered to be available
for such transfers at any time only to the ex-
tent that the balance in such Trust Fund at
such time exceeds the best estimate of the Man-
aging Trustee of the projected withdrawals oth-
erwise required from such Trust Fund during
the next following 1-year period.
‘‘(C) 
ASSUMPTIONS.—In 
making 
rec-
ommendations under this paragraph, the Man-
aging Trustee shall utilize the intermediate ac-
tuarial assumptions utilized by the Board of
Trustees of the Trust Funds for its most recent
annual report issued under section 201(c).
‘‘(d) REQUIREMENTS
FOR
ACCOUNTS.—The fol-
lowing requirements shall be met with respect to each So-
cial Security guarantee account:
‘‘(1) Amounts transferred to the account con-
sist solely of amounts transferred pursuant to this
part.
‘‘(2) In accordance with section 254, the ac-
count assets are held for purposes of investment
under the Program by a certified account manager
designated by (or on behalf of) the covered indi-
vidual for whom such account is established under
the Program.
‘‘(3) Disposition of the account assets is made
solely in accordance with section 256.
‘‘(e) ACCOUNTING
OF RECEIPTS
AND DISBURSE-
MENTS UNDER THE PROGRAM.—The Board shall provide
by regulation for an accounting system for purposes of
this part—
‘‘(1) which shall be maintained by or under the
Executive Director,
‘‘(2) which shall provide for crediting of earn-
ings from, and debiting of losses and administrative
expenses from, amounts held in Social Security
guarantee accounts, and
‘‘(3) under which receipts and disbursements
under the Program which are attributable to each
account are separately accounted for with respect to
such account.
‘‘(f) CORRECTION
OF ERRONEOUS TRANSFERS.—
The Board, in consultation with the Commissioner, shall
provide by regulation rules similar to paragraphs (4)
through (7) and (9) of section 205(c) and section 205(g)
with respect to the correction of erroneous or omitted
transfers of amounts to Social Security guarantee ac-
counts.
‘‘INVESTMENT OF ACCOUNTS
‘‘SEC. 254. (a) DESIGNATION OF CERTIFIED AC-
COUNT MANAGERS.—Under the Program, a certified ac-
count manager shall be designated by or on behalf of each
covered individual to hold for investment under this sec-
tion such individual’s Social Security guarantee account
assets.
‘‘(b) PROCEDURE FOR DESIGNATION.—Any designa-
tion made under subsection (a) shall be made in such form
and manner as shall be prescribed in regulations pre-
scribed by the Board, following the initiation of an edu-
cational campaign as provided in section 257(a)(3)(C).
Such regulations shall provide for annual selection periods
during which covered individuals may make designations
pursuant to subsection (a). Designations made pursuant
to subsection (a) during any such period shall be irrev-
ocable for the one-year period following such period, ex-
cept that such regulations shall provide for such interim
designations as may be necessitated by the decertification
of a certified account manager. Such regulations shall pro-
vide for such designations made by the Board on behalf
of a covered individual in any case in which a timely des-
ignation is not made by the covered individual.
‘‘(c) INVESTMENT GUIDELINES.—
‘‘(1) IN
GENERAL.—An amount equal to 60
percent of the balance in each Social Security guar-
antee account shall be invested in common stock as
provided in paragraph (2), and an amount equal to
40 percent of such balance shall be invested in fixed
income securities as provided in paragraph (3). For
such purpose, certified account managers shall offer
each account holder a choice of one or more port-
folios of each such type of investment.
‘‘(2) COMMON STOCK INDEX REQUIREMENTS.—
The Board shall establish by regulation standards
which must be met by any portfolio of common stock
selected for investment of account assets pursuant to
paragraph (1), consistent with the requirement that
such portfolio replicate the performance of one or
more common stock indices comprised of common
stock the aggregate market value of which is, in
each case, a reasonably broad representation of pub-
licly held companies whose shares are traded on the
equity markets.
‘‘(3) FIXED
INCOME
SECURITIES
REQUIRE-
MENTS.—The Board shall establish by regulation
standards which must be met by fixed income securi-
ties selected for investment of account assets pursu-
ant to paragraph (1). Amounts invested in fixed in-
come securities by a certified account manager
under the Program shall be held in a portfolio which
shall consist of a diverse range of high-grade cor-
porate bonds.
‘‘(d) DIVERSIFICATION
STANDARDS.—The Board
shall specify by regulation standards governing invest-
ments under this section to ensure prudent diversification
among the investments under the Program.
‘‘DETERMINATION OF MONTHLY ANNUITY AMOUNTS AND
USE IN DETERMINING ACCOUNT DISTRIBUTION SUP-
PLEMENTS
‘‘SEC. 255. (a) MONTHLY ANNUITY AMOUNTS.—
‘‘(1) IN GENERAL.—In accordance with regula-
tions of the Board meeting the requirements of this
section, the Commissioner shall determine a monthly
annuity amount in connection with such covered in-
dividual’s Social Security guarantee account, for
each month—
‘‘(A) which commences after such indi-
vidual becomes a covered individual,
‘‘(B) for which such individual is entitled
to a covered monthly insurance benefit under
part A, and
‘‘(C) which ends prior to or with—
‘‘(i) the date of the covered individ-
ual’s death, or
‘‘(ii) if later, the date of the death of
the covered individual’s spouse (if any), ex-
cept as provided in regulations prescribed
by the Board pursuant to paragraph (5).
‘‘(2) AMOUNT.—The monthly annuity amount
shall be equal to the amount which would be the ini-
tial monthly payment under—
‘‘(A) if the covered individual is not mar-
ried on such date, an immediate single life an-
nuity for the covered individual, or
‘‘(B) if the covered individual is married
on such date, an immediate annuity for the
joint lives of the covered individual and the cov-
ered individual’s spouse, together with a sur-
vivor annuity to the one of them who survives
the other of them for the life of the survivor
payable in monthly installments equal to 662⁄3
percent of the monthly payment of the annuity
that would be payable if both spouses remained
alive,
purchased with the balance of the account (deter-
mined after payment of the initial lump sum pay-
ment under section 256(c)).
‘‘(3) ASSUMPTIONS.—The assumptions under
this subsection include the probability of survival for
persons born in the same year as the covered indi-
vidual (and the spouse, in the case of a joint annu-
ity), future projection of investment earnings based
on continued investment of the account assets, and
expected price inflation. Determinations under this
subsection shall be made in accordance with regula-
tions which shall be prescribed by the Board, other-
wise using generally accepted actuarial assumptions,
except that no differentiation shall be made in such
assumptions on the basis of sex, race, health status,
or other characteristics other than age.
‘‘(4) ADJUSTMENTS BASED ON ADDITIONAL SO-
CIAL
SECURITY
GUARANTEE
REFUNDABLE
CRED-
ITS.—The Board shall annually augment the month-
ly annuity amount in connection with each Social
Security guarantee account by an additional monthly
annuity amount, determined under this subsection
on the basis of any additional transfer to the ac-
count of a Social Security guarantee refundable
credit for the year (plus deemed interest) under sec-
tion 253(c), after subtracting the amount of the an-
nual lump sum payment made from such account
under section 256(c)(2).
‘‘(5) TREATMENT
OF
CHANGES
IN
MARITAL
STATUS
AND
BENEFIT
ELIGIBILITY
AFTER
COM-
MENCEMENT OF ENTITLEMENT TO BENEFITS.—The
Board shall provide by regulation for recalculation
or adjustment of the monthly annuity amount deter-
mined under this subsection in connection with any
covered individual’s Social Security guarantee ac-
count so as to appropriately take into account any
entry into marriage or divorce or changes in eligi-
bility for benefits.
‘‘(b) AMOUNT OF ACCOUNT DISTRIBUTION SUPPLE-
MENT.—The Board shall determine for each month the
amount of the monthly account distribution supplement
(if any) in connection with a covered individual’s Social
Security guarantee account and shall certify such amount
to the Commissioner so as to allow inclusion of such sup-
plement in each covered monthly insurance benefit pay-
ment pursuant to section 202(z) or 223(j). The amount
of the supplement for each benefit shall be the excess (if
any) of—
‘‘(1) the sum of—
‘‘(A) the monthly annuity amount in con-
nection with such account, plus
‘‘(B) in the case of a covered individual
surviving a deceased spouse, a monthly amount
which would be the monthly equivalent of the
survivor annuity described in paragraph (2)(B)
in connection with the Social Security guar-
antee account of the deceased spouse, over
‘‘(2) the amount of the benefit (as determined
before applying sections 202(z) and 223(j) and be-
fore applying any reduction or deduction applicable
under part A).
‘‘DISPOSITION OF ACCOUNT ASSETS
‘‘SEC. 256. (a) IN GENERAL.—Account assets with
respect to covered individuals shall be distributed solely
as provided in this section.
‘‘(b) ACCOUNT MANAGER TRANSFERS TO THE TRUST
FUNDS.—
‘‘(1) IN
GENERAL.—In accordance with a
schedule which shall be prescribed in regulations of
the Board, each certified account manager holding
account assets shall make account manager trans-
fers to the Secretary of the Treasury. Such Sec-
retary shall immediately credit each such transfer to
the Federal Old-Age and Survivors Insurance Trust
Fund or the Federal Disability Insurance Trust
Fund, according to an appropriate distribution for-
mula which shall be prescribed in regulations of the
Executive Director. The Executive Director shall
provide to the certified account manager timely in-
formation necessary to carry out such account man-
ager’s duties under this section.
‘‘(2) DETERMINATION OF AMOUNT OF ACCOUNT
MANAGER TRANSFER.—The amount of each account
manager transfer due from a certified account man-
ager for any period shall be an amount equal to the
sum of—
‘‘(A) 
the 
aggregate 
monthly 
annuity
amount or amounts determined under para-
graph (3) for the month or months ending dur-
ing such period in connection with the Social
Security guarantee accounts under the manage-
ment of the certified account manager under
the Program, and
‘‘(B) the aggregate monthly account remit-
tance for such period described in paragraph
(4) in connection with such accounts.
‘‘(3) 
AGGREGATE
MONTHLY
ANNUITY
AMOUNT.—The aggregate monthly annuity amount
for any month in connection with the Social Security
guarantee accounts under the management of any
certified account manager under the Program is
equal to the sum of all monthly annuity amounts in
connection with such accounts, determined under
section 255.
‘‘(4) AGGREGATE MONTHLY ACCOUNT REMIT-
TANCE.—The aggregate monthly account remittance
for any month in connection with the Social Security
guarantee accounts under the management of any
certified account manager under the Program is
equal to the sum of all the amounts required to be
transferred during such month from the certified ac-
count manager to the Secretary of the Treasury for
crediting to the Federal Old-Age and Survivors In-
surance Trust Fund or the Federal Disability Insur-
ance Trust Fund under subsection (e)(2) in connec-
tion with the deaths of covered individuals for whom
such accounts were established under this part.
‘‘(5) WITHDRAWALS FROM ACCOUNT BALANCES
FOR
PURPOSES
OF
ACCOUNT
MANAGER
TRANS-
FERS.—In advance of each account manager trans-
fer required under this subsection to be made by a
certified account manager managing one or more
Social Security guarantee accounts under the Pro-
gram, the Commissioner shall certify to the Execu-
tive Director and to such certified account manager
the monthly annuity amount in connection with each
such account for each month during the period for
which such transfer is to be made. At the time of
such transfer, the certified account manager may
withdraw from the assets of each such account the
monthly annuity amount in connection with such ac-
count taken into account in determining each of the
aggregate monthly annuity amounts included in the
amount of the account manager transfer. Such with-
drawn assets shall be available to the certified ac-
count manager solely for purposes of making such
account manager transfer.
‘‘(c) LUMP SUM PAYMENTS.—Upon initial entitle-
ment of a covered individual to monthly insurance benefits
under part A, such individual shall be entitled to—
‘‘(1) an initial lump sum payment, from such
individual’s Social Security guarantee account, equal
to 5 percent of the balance in such account, and
‘‘(2) a lump sum payment in connection with
each subsequent transfer to such account (pursuant
to section 253(c)) of such individual’s social security
guarantee refundable credits for years beginning
after commencement of such initial entitlement, pay-
able as soon as practicable after the transfer, equal
to 5 percent of the transferred amount (including
deemed interest).
The Executive Director shall certify to the certified ac-
count manager managing such account the amount of
each lump sum payment, and upon receipt of such certifi-
cation, the certified account manager shall transfer such
certified amount to the Secretary of the Treasury for sub-
sequent transfer to the covered individual. Such certifi-
cation shall also include such information as may be nec-
essary to make each lump sum payment in a timely man-
ner.
‘‘(d) SPLITTING
OF ACCOUNT ASSETS UPON DI-
VORCE AFTER 1 YEAR OF MARRIAGE.—Upon the divorce
of a covered individual for whom a Social Security guar-
antee account has been established under this part, from
a spouse to whom the covered individual had been married
for at least 1 year—
‘‘(1) if a Social Security guarantee account has
been established under this part for the divorced
spouse of the covered individual, the Board shall di-
rect the appropriate certified account manager to
transfer—
‘‘(A) from the Social Security guarantee
account with the greater amount of accruals
(including earnings) during the time of the
marriage,
‘‘(B) to the other such account,
an amount equal to one-half of the difference be-
tween the amounts of such accruals in such ac-
counts, or
‘‘(2) if a Social Security guarantee account has
not been established for the divorced spouse, the
Board shall establish a Social Security guarantee ac-
count for the divorced spouse, and shall direct the
appropriate certified account manager to transfer—
‘‘(A) from the Social Security guarantee
account of the covered individual,
‘‘(B) to the Social Security guarantee ac-
count of the divorced spouse,
an amount equal to one-half of the amount of accru-
als (including earnings) during the time of the mar-
riage in the Social Security guarantee account of the
covered individual.
In the case of any transfer directed under this subsection,
the Executive Director shall certify to the appropriate cer-
tified account manager the information necessary to make
such transfer.
‘‘(e) CLOSING OF ACCOUNT UPON THE DEATH OF
THE COVERED INDIVIDUAL.—
‘‘(1) TRANSFERS UPON DEATH BEFORE ENTI-
TLEMENT.—Upon the death of a covered individual
before the individual has become entitled to covered
monthly insurance benefits, the Executive Director
shall close out the covered individual’s Social Secu-
rity guarantee account. In closing out the account,
the Executive Director shall certify to the certified
account manager the amount of the account assets,
and, upon receipt of such certification, such certified
account manager shall transfer from such account
an amount equal to such certified amount to the
Secretary of the Treasury for subsequent transfer to
the estate of such covered individual.
‘‘(2) TRANSFERS
UPON
DEATH
AFTER
ENTI-
TLEMENT.—
‘‘(A) IN GENERAL.—In any case in which
the covered individual dies after the individual
has become entitled to covered monthly insur-
ance benefits, the Executive Director shall, ex-
cept as provided in subparagraph (B), close out
the covered individual’s Social Security guar-
antee account upon such covered individual’s
death.
‘‘(B) DELAYED CLOSING IN THE CASE OF
SURVIVING SPOUSE.—If the covered individual
was married at the time of the covered individ-
ual’s death, the Executive Director shall close
out the covered individual’s Social Security
guarantee account with the close, upon the sur-
viving spouse’s death, of the period to which the
survivor annuity portion of the monthly annuity
amount in connection with such account is ap-
plicable under section 255(a). The Board shall
from time to time propose to the Congress rec-
ommendations for legislative changes necessary
to provide for closing of the account in a man-
ner and time consistent with regulations pre-
scribed pursuant to section 255(a)(5).
‘‘(C) CERTIFICATION
AND
TRANSFER
TO
TRUST FUNDS.—In closing out the account, the
Executive Director shall certify to the certified
account manager holding the covered individ-
ual’s account assets the amount of the account
assets, and such certified account manager shall
transfer an amount equal to such certified
amount to the Secretary of the Treasury for
crediting to the Federal Old-Age and Survivors
Insurance Trust Fund or the Federal Disability
Insurance Trust Fund, as determined appro-
priate under regulations of the Board.
‘‘(f) CLOSING OF ACCOUNT OF COVERED INDIVID-
UALS WHO ARE INELIGIBLE FOR BENEFITS UPON AT-
TAINING RETIREMENT AGE.—In any case in which, as of
the date on which a covered individual attains retirement
age (as defined in section 216(l)), such individual is not
eligible for a covered monthly insurance benefit, the Com-
missioner shall so certify to the Executive Director and,
upon receipt of such certification, the Executive Director
shall close out the covered individual’s Social Security
guarantee account. In closing out the account, the Execu-
tive Director shall certify to the certified account manager
the amount of the account assets, and upon receipt of such
certification from the Executive Director, the account
manager shall transfer from such account an amount
equal to such certified amount to the Secretary of the
Treasury for subsequent transfer to the covered indi-
vidual.
‘‘(g) ADMINISTRATIVE EXPENSES.—
‘‘(1) IN
GENERAL.—Under regulations which
shall be prescribed by the Board, account assets are
available for payment of the reasonable administra-
tive costs of the Program (including reasonable ad-
ministration fees charged by certified account man-
agers under the Program), but in no event to exceed
25 basis points per year of the assets under manage-
ment.
‘‘(2) TEMPORARY AUTHORIZATION OF APPRO-
PRIATIONS FOR STARTUP ADMINISTRATIVE COSTS.—
For any such administrative costs that remain after
applying paragraph (1) for each of the first five fis-
cal years that end after the date of the enactment
of this part, there are authorized to be appropriated
such sums as may be necessary for each of such fis-
cal years.
‘‘ADMINISTRATION OF THE PROGRAM
‘‘SEC. 257. (a) GENERAL PROVISIONS.—
‘‘(1) ESTABLISHMENT AND DUTIES OF THE SO-
CIAL SECURITY GUARANTEE BOARD.—
‘‘(A) ESTABLISHMENT.—There is estab-
lished in the Social Security Administration a
Social Security Guarantee Board.
‘‘(B) MEMBERSHIP.—The Board shall be
composed of 6 members appointed by the Board
of Trustees of the Federal Old-Age and Sur-
vivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund. One member
shall serve as Chairman, as designated by the
Board of Trustees. Members of the Board shall
have substantial experience, training, and ex-
pertise in the area of pension benefits, finance,
investment, or insurance.
‘‘(C) TERMS.—
‘‘(i) IN GENERAL.—A member of the
Board shall be appointed for a term of 9
years, subject only to removal by the
Board of Trustees for cause, except that of
the members first appointed—
‘‘(I) two shall be appointed for a
term of 3 years;
‘‘(II) two shall be appointed for a
term of 6 years; and
‘‘(III) two shall be appointed for
a term of 9 years.
‘‘(ii) VACANCIES.— A vacancy on the
Board shall be filled in the manner in
which the original appointment was made
and shall be subject to any conditions
which applied with respect to the original
appointment. An individual chosen to fill a
vacancy shall be appointed for the unex-
pired term of the member replaced. The
term of any member shall not expire before
the date on which the member’s successor
takes office.
‘‘(D) POWERS
AND
DUTIES
OF
THE
BOARD.—
‘‘(i) IN GENERAL.—The Board shall
have powers and duties solely as provided
in this part. The Board shall prescribe by
regulation the terms of the Social Security
Guarantee Program established under this
part, including policies for investment
under the Program of account assets, and
policies for the certification and decerti-
fication of account managers under the
Program, which shall include consideration
of the appropriateness of the marketing
materials and plans of such person.
‘‘(ii) BUDGETARY
REQUIREMENTS.—
The Board shall prepare and submit to the
President and to the appropriate commit-
tees of Congress an annual budget of the
expenses and other items relating to the
Board which shall be included as a sepa-
rate item in the budget required to be
transmitted to the Congress under section
1105 of title 31, United States Code. The
Board shall provide for low administrative
costs such that, to the extent practicable,
overall administrative costs of the Program
do not exceed 25 basis points in relation to
assets under management under the Pro-
gram.
‘‘(E) ADDITIONAL
AUTHORITIES
OF
THE
BOARD.—The Board may—
‘‘(i) adopt, alter, and use a seal;
‘‘(ii) establish policies with which the
Commissioner shall comply under this
part; and
‘‘(iii) appoint and remove the Execu-
tive Director, as provided in paragraph (2).
‘‘(F) INDEPENDENCE
OF
CERTIFIED
AC-
COUNT MANAGERS.—The policies of the Board
may not require a certified account manager to
invest or to cause to be invested any account
assets in a specific asset or to dispose of or
cause to be disposed of any specific asset so
held.
‘‘(G) MEETINGS
OF
THE
BOARD.—The
Board shall meet at the call of the Chairman or
upon the request of a quorum of the Board.
The Board shall perform the functions and ex-
ercise the powers of the Board on a majority
vote of a quorum of the Board. Four members
of the Board shall constitute a quorum for the
transaction of business.
‘‘(H) COMPENSATION
OF
BOARD
MEM-
BERS.—
‘‘(i) IN GENERAL.—Each member of
the Board who is not an officer or em-
ployee of the Federal Government shall be
compensated at the daily rate of basic pay
for level I of the Executive Schedule for
each day during which such member is en-
gaged in performing a function of the
Board. Any member who is such an officer
or employee shall not suffer any loss of pay
or deduction from annual leave on the
basis of any time used by such member in
performing such a function.
‘‘(ii) TRAVEL, PER
DIEM, AND
EX-
PENSES.—A member of the Board shall be
paid travel, per diem, and other necessary
expenses under subchapter I of chapter 57
of title 5, United States Code, while trav-
eling away from such member’s home or
regular place of business in the perform-
ance of the duties of the Board.
‘‘(I) STANDARD FOR BOARD’S DISCHARGE
OF
RESPONSIBILITIES.—The members of the
Board shall discharge their responsibilities sole-
ly in the interest of covered individuals and the
Program.
‘‘(J) ANNUAL REPORT.—The Board shall
submit an annual report to the President, to
each House of the Congress, and to the Board
of Trustees of the Federal Old-Age and Sur-
vivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund regarding the
financial and operating condition of the Pro-
gram.
‘‘(K) PUBLIC ACCOUNTANT.—
‘‘(i) DEFINITION.—For purposes of
this subparagraph, the term ‘qualified pub-
lic accountant’ shall have the same mean-
ing as provided in section 103(a)(3)(D) of
the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1023(a)(3)(D)).
‘‘(ii) ENGAGEMENT.—The Executive
Director, in consultation with the Board,
shall annually engage, on behalf of all indi-
viduals for whom a Social Security guar-
antee account is established under this
part, an independent qualified public ac-
countant, who shall conduct an examina-
tion of all records maintained in the ad-
ministration of this part that the public ac-
countant considers necessary.
‘‘(iii) DUTIES.—The public account-
ant conducting an examination under
clause (ii) shall determine whether the
records referred to in such clause have
been maintained in conformity with gen-
erally accepted accounting principles. The
public accountant shall transmit to the
Board a report on his examination.
‘‘(iv) RELIANCE ON CERTIFIED ACTU-
ARIAL MATTERS.—In making a determina-
tion under clause (iii), a public accountant
may rely on the correctness of any actu-
arial matter certified by an enrolled actu-
ary if the public accountant states his reli-
ance in the report transmitted to the
Board under such clause.
‘‘(2) EXECUTIVE DIRECTOR.—
‘‘(A) APPOINTMENT AND REMOVAL.—The
Board shall appoint, without regard to the pro-
visions of law governing appointments in the
competitive service, an Executive Director by
action agreed to by a majority of the members
of the Board. The Executive Director shall have
substantial experience, training, and expertise
in the management of financial investments and
pension benefit plans. The Board may, with the
concurrence of 4 members of the Board, remove
the Executive Director from office for good
cause shown.
‘‘(B) POWERS AND DUTIES OF EXECUTIVE
DIRECTOR.—The Executive Director shall—
‘‘(i) carry out the policies established
by the Board,
‘‘(ii) administer the provisions of this
part in accordance with the policies of the
Board,
‘‘(iii) in consultation with the Board,
prescribe such regulations (other than reg-
ulations relating to fiduciary responsibil-
ities) as may be necessary for the adminis-
tration of this part, and
‘‘(iv) meet from time to time with the
Board upon request of the Board.
‘‘(C) ADMINISTRATIVE
AUTHORITIES
OF
EXECUTIVE DIRECTOR.—The Executive Direc-
tor may—
‘‘(i) appoint such personnel as may be
necessary to carry out the provisions of
this part,
‘‘(ii) subject to approval by the Board,
procure the services of experts and consult-
ants under section 3109 of title 5, United
States Code,
‘‘(iii) secure directly from any agency
or instrumentality of the Federal Govern-
ment any information which, in the judg-
ment of the Executive Director, is nec-
essary to carry out the provisions of this
part and the policies of the Board, and
which shall be provided by such agency or
instrumentality upon the request of the
Executive Director,
‘‘(iv) pay the compensation, per diem,
and travel expenses of individuals ap-
pointed under clauses (i), (ii), and (v) of
this subparagraph, subject to such limits
as may be established by the Board,
‘‘(v) accept and use the services of in-
dividuals employed intermittently in the
Government service and reimburse such in-
dividuals for travel expenses, as authorized
by section 5703 of title 5, United States
Code, including per diem as authorized by
section 5702 of such title, and
‘‘(vi) except as otherwise expressly
prohibited by law or the policies of the
Board, delegate any of the Executive Di-
rector’s functions to such employees under
the Board as the Executive Director may
designate and authorize such successive re-
delegations of such functions to such em-
ployees under the Board as the Executive
Director may consider to be necessary or
appropriate.
‘‘(3) ROLE OF THE COMMISSIONER OF SOCIAL
SECURITY.—The Commissioner shall—
‘‘(A) prescribe such regulations (supple-
mentary to and consistent with the regulations
prescribed by the Board and the Executive Di-
rector) as may be necessary for carrying out the
duties of the Commissioner under this part,
‘‘(B) meet from time to time with, and
provide information to, the Board upon request
of the Board regarding matters relating to the
Social Security Guarantee Program, and
‘‘(C) in consultation with the Board and
utilizing available Federal agencies and re-
sources, develop a campaign to educate workers
about the Program.
‘‘(b) CERTIFICATION AND OVERSIGHT OF ACCOUNT
MANAGERS.—
‘‘(1) CERTIFICATION BY THE BOARD.—
‘‘(A) IN GENERAL.—Any person that is a
qualified professional asset manager (as defined
in section 8438(a)(8) of title 5, United States
Code) may apply to the Board (in such form
and manner as shall be provided by the Board
by regulation) for certification under this sub-
section as a certified account manager. In mak-
ing certification decisions, the Board shall con-
sider the applicant’s general character and fit-
ness, financial history and future earnings pros-
pects, and ability to serve covered individuals
under the Program, and such other criteria as
the Board deems necessary to carry out this
part. Certification of any person under this sub-
section shall be contingent upon entry into a
contractual arrangement between the Board
and such person.
‘‘(B) NONDELEGATION
REQUIREMENT.—
The authority of the Board to make any deter-
mination to deny any application under this
subsection may not be delegated by the Board.
‘‘(2) OVERSIGHT OF CERTIFIED ACCOUNT MAN-
AGERS.—
‘‘(A) ROLE OF REGULATORY AGENCIES.—
The Board may enter into cooperative arrange-
ments with Federal and State regulatory agen-
cies identified by the Board as having jurisdic-
tion over persons eligible for certification under
this subsection so as to ensure that the provi-
sions of this part are enforced with respect to
certified account managers in a manner con-
sistent with and supportive of the requirements
of other provisions of Federal law applicable to
them. Such Federal regulatory agencies shall
cooperate with the Board to the extent that the
Board determines that such cooperation is nec-
essary and appropriate to ensure that the provi-
sions of this part are effectively implemented.
‘‘(B) ACCESS
TO
RECORDS.—The Board
may from time to time require any certified ac-
count manager to file such reports as the Board
may specify by regulation as necessary for the
administration of this part. In prescribing such
regulations, the Board shall minimize the regu-
latory burden imposed upon certified account
managers while taking into account the benefit
of the information to the Board in carrying out
its functions under this part.
‘‘(3) REVOCATION
OF
CERTIFICATION.—The
Board shall provide, in the contractual arrangements
entered into under this subsection with each certified
account manager, for revocation of such person’s
status as a certified account manager upon deter-
mination by the Board of such person’s failure to
comply with the requirements of such contractual ar-
rangements. Such arrangements shall include provi-
sion for notice and opportunity for review of any
such revocation.
‘‘(c) FIDUCIARY RESPONSIBILITIES.—
‘‘(1) IN GENERAL.—Rules similar to the provi-
sions of section 8477 of title 5, United States Code
(relating to fiduciary responsibilities; liability and
penalties) shall apply in connection with account as-
sets, in accordance with regulations which shall be
issued by the Board. The Board shall issue regula-
tions with respect to the investigative authority of
appropriate Federal agencies in cases involving ac-
count assets.
‘‘(2) EXCULPATORY PROVISIONS VOIDED.—Any
provision in an agreement or instrument which pur-
ports to relieve a fiduciary from responsibility or li-
ability for any responsibility, obligation, or duty
under this part shall be void.
‘‘(d) CIVIL ACTIONS BY BOARD.—If any person fails
to meet any requirement of this part or of any contract
entered into under this part, the Board may bring a civil
action in any district court of the United States within
the jurisdiction of which such person’s assets are located
or in which such person resides or is found, without regard
to the amount in controversy, for appropriate relief to re-
dress the violation or enforce the provisions of this part,
and process in such an action may be served in any dis-
trict.
‘‘(e) PREEMPTION OF INCONSISTENT STATE LAW.—
A provision of this part shall not be construed to preempt
any provision of the law of any State or political subdivi-
sion thereof, or prevent a State or political subdivision
thereof from enacting any provision of law with respect
to the subject matter of this part, except to the extent
that such provision of State law is inconsistent with this
part, and then only to the extent of the inconsistency.’’.
(b) 
CONFORMING
AMENDMENTS.—(1) 
Section
701(b) of the Social Security Act (42 U.S.C. 901(b)) is
amended by striking ‘‘title II’’ and inserting ‘‘part A of
title II, the Social Security Guarantee Program under part
B of title II,’’.
(2) Section 702(a)(4) of the Social Security Act (42
U.S.C. 902(a)(4)) is amended by inserting ‘‘other than
those of the Social Security Guarantee Board’’ after ‘‘Ad-
ministration’’, and by striking ‘‘thereof’’ and inserting ‘‘of
the Administration in connection with the exercise of such
powers and the discharge of such duties’’.
SEC. 103. BENEFIT INCREASES.
(a) OLD-AGE INSURANCE BENEFITS
AND OTHER
BENEFITS UNDER SECTION 202.—Section 202 of the So-
cial Security Act (42 U.S.C. 402) is amended by adding
at the end the following new subsection:
‘‘Account Distribution Supplements
‘‘(z) Each monthly insurance benefit under this sec-
tion (after application of any reduction or deduction appli-
cable under this section or under any other provision of
this part) shall be increased by the amount of the account
distribution supplement determined for such benefit under
section 255.’’.
(b) DISABILITY INSURANCE BENEFITS.—Section 223
of such Act (42 U.S.C. 423) is amended by adding at the
end the following new subsection:
‘‘Account Distribution Supplements
‘‘(j) Each monthly insurance benefit under this sec-
tion (after application of any reduction or deduction appli-
cable under this part) shall be increased by the amount
of the account distribution supplement determined for
such benefit under section 255.’’.
SEC. 104. TAX TREATMENT.
(a) TAX TREATMENT OF SOCIAL SECURITY GUAR-
ANTEE ACCOUNTS.—Section 7701 of the Internal Revenue
Code of 1986 (relating to definitions) is amended by redes-
ignating subsection (n) as subsection (o) and by inserting
after (m) the following new subsection:
‘‘(n) TAX TREATMENT OF SOCIAL SECURITY GUAR-
ANTEE ACCOUNTS.—All Social Security guarantee ac-
counts established under part B of title II of the Social
Security Act shall be exempt from taxation under this
title.’’.
(b) BENEFITS TAXABLE AS SOCIAL SECURITY BENE-
FITS.—
(1) MONTHLY
BENEFITS.—Section 86(d) of
such Code of 1986 (relating to definition of Social
Security benefit) is amended to read as follows:
‘‘(A) a monthly benefit under part A of
title II of the Social Security Act (including an
account distribution supplement referred to in
section 202(z) and 223(j) of such Act), or’’.
(2) SPECIAL RULES RELATING TO LUMP SUM
PAYMENT UNDER SECTION 256(c) OF SOCIAL SECU-
RITY ACT.—Section 86(a) of such Code is amended
by adding at the end the following new paragraph:
‘‘(3) INCLUSION IN GROSS INCOME OF LUMP
SUM PAYMENT UNDER SECTION 256(c) OF SOCIAL
SECURITY ACT.—
‘‘(A) IN GENERAL.—A lump sum payment
received under section 256(c) of the Social Se-
curity Act shall be includible in gross income in
the amount provided by subparagraph (B).
Such payment shall not be treated as a social
security benefit for purposes of this section.
‘‘(B) AMOUNT
INCLUDED
IN
INCOME.—
The portion of such lump sum payment that is
includible in gross income shall be equal to an
amount which bears the same ratio to the total
amount of such payment as the portion of so-
cial security benefits included in gross income
under paragraphs (1) and (2) bears to the total
amount of such benefits.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years begin-
ning after the end of the calendar year in which this
Act is enacted.
(c) ESTATE TAX NOT TO APPLY TO ASSETS OF SO-
CIAL SECURITY GUARANTEE ACCOUNTS.—
(1) IN GENERAL.—Part IV of subchapter A of
chapter 11 of the Internal Revenue Code of 1986
(relating to taxable estate) is amended by adding at
the end the following new section:
‘‘SEC. 2059. SOCIAL SECURITY GUARANTEE ACCOUNTS.
‘‘For purposes of the tax imposed by section 2001,
the value of the taxable estate shall be determined by de-
ducting from the value of the gross estate an amount
equal to the value of the assets of a Social Security guar-
antee account transferred by the Secretary to the estate
of the decedent under section 256 of the Social Security
Act.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for part IV of subchapter A of chapter 11 of
such Code is amended by adding at the end the fol-
lowing new item:
‘‘Sec. 2059. Social Security guarantee accounts.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to decedents dying in
or after the calendar year in which this Act is en-
acted.
SEC. 105. ANNUAL ACCOUNT STATEMENTS.
Section 1143 of the Social Security Act (42 U.S.C.
1320b–13) is amended by adding at the end the following
new subsection:
‘‘Performance of Social Security Guarantee Accounts
‘‘(d) Beginning not later than October 1, 2003, each
statement provided under this section shall include infor-
mation determined by the Social Security Guarantee
Board as sufficient to fully inform eligible individuals an-
nually of the balance, investment performance, and admin-
istrative expenses of their Social Security guarantee ac-
counts under the Social Security Guarantee Program
under part B of title II.’’.
SEC. 106. REPORT ON USE OF SOCIAL SECURITY SUR-
PLUSES.
The Board of Trustees of the Federal Old-Age and
Survivors Insurance Trust Fund and the Federal Dis-
ability Insurance Trust Fund, in the Board’s annual re-
port to the President and the Congress and based on the
Board’s review of the financial status of such Trust
Funds, shall set forth—
(1) the Board’s determination of the extent to
which revenues consisting of that portion of the
taxes under chapters 2 and 21 of the Internal Rev-
enue Code of 1986 to which surpluses in the Trust
Funds may be attributed have been appropriated to
defray the cost of the Social Security guarantee re-
fundable credits under section 3511 of such Code,
and
(2) the Board’s recommendations with respect
to whether or to what extent such portion of such
taxes should be reduced or used further to defray
the cost of such credits.
TITLE II—BENEFIT UPDATES
SEC. 201. ELIMINATION OF THE SOCIAL SECURITY EARN-
INGS TEST FOR INDIVIDUALS WHO HAVE AT-
TAINED AGE 62.
(a) IN GENERAL.—Section 203 of the Social Security
Act (42 U.S.C. 403) is amended—
(1) in subsection (c)(1), by striking ‘‘retirement
age (as defined in section 216(l))’’ and inserting
‘‘the age of 62’’;
(2) in clause (B) of the last sentence of sub-
section (f)(1), by striking ‘‘retirement age (as de-
fined in section 216(l))’’ and inserting ‘‘the age of
62’’;
(3) in subsection (f)(3), by striking ‘‘retirement
age (as defined in section 216(l))’’ and inserting
‘‘the age of 62’’;
(4) in subsection (h)(1)(A), by striking ‘‘retire-
ment age (as defined in section 216(l))’’ each place
it appears and inserting ‘‘the age of 62’’; and
(5) in subsection (j)—
(A) in the heading, by striking ‘‘Retire-
ment Age’’ and inserting ‘‘Age 62’’; and
(B) by striking ‘‘retirement age (as defined
in section 216(l))’’ and inserting ‘‘the age of
62’’.
(b) CONFORMING AMENDMENTS ELIMINATING THE
SPECIAL EXEMPT AMOUNT FOR YEAR OF ATTAINING RE-
TIREMENT AGE.
(1) 
UNIFORM
EXEMPT
AMOUNT.—Section
203(f)(8)(A) of such Act (42 U.S.C. 403(f)(8)(A)) is
amended by striking ‘‘the new exempt amounts (sep-
arately stated for individuals described in subpara-
graph (D) and for other individuals) 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 par-
ticular taxable year shall be whichever’’;
(B) in clause (i), by striking ‘‘cor-
responding’’;
(C) in clause (ii)—
(i) by striking ‘‘the product’’ and all
that follows through ‘‘other individuals),
and’’ and inserting ‘‘the product derived by
multiplying the exempt amount which is in
effect with respect to months in the tax-
able year ending after 1993 and before
1995, by’’; and
(ii) by striking subclause (II) and in-
serting the following:
‘‘(II) the national average wage index
(as so defined) for 1992,’’; and
(D) in the last sentence, by striking ‘‘an
exempt amount’’ and inserting ‘‘the exempt
amount’’.
(3) REPEAL OF BASIS FOR COMPUTATION OF
SPECIAL
EXEMPT
AMOUNT.—Subparagraphs (D)
and (E) of section 203(f)(8) of such Act (42 U.S.C.
(f)(8)(D), (E)) are repealed.
(c) ADDITIONAL CONFORMING AMENDMENTS.—
(1) Section 203 of such Act (42 U.S.C. 403) is
amended—
(A) in subsection (b)(1)—
(i) by striking ‘‘(b)(1) Deductions’’
and inserting ‘‘(b) Deductions’’;
(ii) by striking ‘‘and from any pay-
ment or payments to which any other per-
sons are entitled on the basis of such indi-
vidual’s wages and self-employment in-
come,’’;
(iii) by striking ‘‘until the total’’ and
all that follows through ‘‘if for such
month’’ and inserting the following: ‘‘until
the total of such deductions equals such in-
dividual’s benefit or benefits under section
202 for any month, if for such month’’;
(iv) by striking ‘‘total of benefits re-
ferred to in clauses (A) and (B)’’ and in-
serting ‘‘the total of such benefits’’; and
(v) by striking ‘‘If a child’’ and all
that follows through ‘‘have been made.’’;
(B) by striking subsection (b)(2);
(C) by striking subsection (d);
(D) in subsection (f)(1), by striking ‘‘The
amount of’’ and all that follows through ‘‘Not-
withstanding’’ and inserting the following: ‘‘The
amount of an individual’s excess earnings (as
defined in paragraph (3)) shall be charged to
months as follows: There shall be charged to
the first month of such taxable year an amount
of his excess earnings equal to the payment to
which he is entitled for such month under sec-
tion 202 (or the total of his excess earnings if
such excess earnings are less than such pay-
ment), and the balance, if any, of such excess
earnings shall be charged to each succeeding
month in such year to the extent, in the case
of each such month, of the payment to which
such individual is entitled for such month under
section 202, until the total of such excess has
been so charged. Notwithstanding’’;
(E) in subsection (f)(3), by striking ‘‘331⁄3
percent’’ and all that follows through ‘‘other in-
dividual,’’ and inserting ‘‘50 percent of such in-
dividual’s earnings for such year in excess of
the product of the exempt amount as deter-
mined under paragraph (8),’’;
(F) by striking subsection (f)(7);
(G) by striking subsection (f)(9); and
(H) in subsection (h)(1)(A)(ii), by striking
subclauses (I), (II), and (III) and inserting the
following:
‘‘(I) such individual’s benefits under sec-
tion 202 are reduced under subsection (a) of
this section for any month in such taxable year,
and
‘‘(II) in any such month there is another
person who also is entitled to benefits under
subsection (b), (c), (d), (e), (f), (g), or (h) of
section 202 on the basis of the same wages and
self-employment income and who does not live
in the same household as such individual.’’.
(2) The second sentence of section 223(d)(4) of
such Act (42 U.S.C. 423(d)(4)) is amended by strik-
ing ‘‘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 section 4 of the Social Se-
curity Guarantee Plus Act of 2001 had not been en-
acted’’.
(d) EFFECTIVE DATE AND TRANSITIONAL RULE.—
(1) EFFECTIVE DATE.—The amendments and
repeals made by this section shall apply with respect
to taxable years ending after December 31, 2006.
(2) 
TRANSITIONAL
RULE.—Notwithstanding
paragraph (8) of section 203(f) of the Social Secu-
rity Act (42 U.S.C. 403(f)(8)), the exempt amount
which is applicable, for purposes of such section
203(f), to an individual who is entitled to monthly
insurance benefits under section 202 of such Act but
who has not attained retirement age (as defined in
section 216(l) of such Act) before the close of the
taxable year involved shall be—
(A) for each month of any taxable year
ending after 2001 and before 2003, $1,250.00,
(B) for each month of any taxable year
ending 
after 
2002 
and 
before 
2004,
$1,666.662⁄3,
(C) for each month of any taxable year
ending 
after 
2003 
and 
before 
2005,
$2,083.331⁄3,
(D) for each month of any taxable year
ending after 2004 and before 2006, $2,500.00,
and
(E) for each month of any taxable year
ending 
after 
2005 
and 
before 
2007,
$2,916.662⁄3.
SEC. 202. INCREASE IN WIDOW’S AND WIDOWER’S INSUR-
ANCE BENEFITS.
(a) 
WIDOW’S
INSURANCE
BENEFITS.—Section
202(e) of the Social Security Act (42 U.S.C. 402(e)) is
amended by adding at the end the following new para-
graph:
‘‘(10)(A) In any case in which the amount of a wid-
ow’s insurance benefit (as determined under the preceding
provisions of this section, taking into account applicable
reductions under this section) for the application month
of the widow (or surviving divorced wife) is less than the
minimum benefit amount for such month determined
under subparagraph (C), the amount of such benefit for
such month and each succeeding month shall be increased
to such minimum benefit amount (or the amount most re-
cently established in lieu thereof under section 215(i)).
‘‘(B) For purposes of this paragraph, the term ‘appli-
cation month’ of a widow (or surviving divorced wife)
means the month of the filing of her application for wid-
ow’s insurance benefits.
‘‘(C) For purposes of subparagraph (A), the min-
imum benefit amount determined under this subparagraph
for the application month is an amount equal to the lesser
of—
‘‘(i) 75 percent of the sum of—
‘‘(I) the imputed deceased individual’s ben-
efit for such month, as determined under sub-
paragraph (D) or (E) (as applicable), and
‘‘(II) the imputed survivor benefit for such
month, as determined under subparagraph (F),
or
‘‘(ii) the increased benefit cap determined under
subparagraph (G) for such month.
‘‘(D)(i) For purposes of subparagraph (C)(i)(I), if the
deceased individual died in a month for which he was not
entitled to any benefit under this title based on his wages
or self-employment income or the wages and self-employ-
ment income of the widow (or surviving divorced wife), the
imputed deceased individual’s benefit for the application
month is the sum of—
‘‘(I) the imputed old-age insurance benefit (de-
termined under clause (ii)) of the deceased indi-
vidual for the application month (if any), and
‘‘(II) the imputed husband’s insurance benefit
(determined under clause (iii)) of the deceased indi-
vidual for the application month (if any).
‘‘(ii) The amount of the imputed old-age insurance
benefit of the deceased individual for the application
month is the amount of the old-age insurance benefit to
which he would have been entitled for such month—
‘‘(I) determined, in the case of such a deceased
individual who had attained age 62 as of the date
of his death, as if he had applied for such benefit
in the month of his death and had survived to the
end of the application month (taking into account
applicable reductions under this section), or
‘‘(II) determined, in the case of such a deceased
individual who died before attaining age 62 but
would have attained age 62 before the end of the ap-
plication month, as if he had survived to the end of
the application month, and had applied for such ben-
efit on such date (assuming a primary insurance
amount for the deceased individual determined
under paragraph (2)(B) of this subsection and tak-
ing into account applicable reductions under this
section).
In any case in which the deceased individual died before
attaining age 62 and would not have attained age 62 be-
fore the end of the application month, the deceased indi-
vidual’s imputed old-age insurance benefit shall be deemed
to be zero.
‘‘(iii) The amount of the imputed husband’s insur-
ance benefit of the deceased individual for the application
month is the amount of the husband’s insurance benefit
under subsection (c) to which he would have been entitled
for such month (reduced under subsection (k)(3)(A) as-
suming the entitlement to an old-age insurance benefit for
such month, if any, as described in clause (ii) and other-
wise taking into account applicable reductions under this
section)—
‘‘(I) determined, in the case of such a deceased
individual who had attained age 62 as of the date
of his death, as if he had applied for such benefit
in the month of his death and had survived to the
end of the application month, or
‘‘(II) determined, in the case of such a deceased
individual who died before attaining age 62 but
would have attained age 62 before the end of the ap-
plication month, as if he had survived to the end of
the application month and had applied for such ben-
efit during the application month.
In any case in which the deceased individual died before
attaining age 62 and would not have attained age 62 be-
fore the end of the application month, the deceased indi-
vidual’s imputed husband’s insurance benefit shall be
deemed to be zero.
‘‘(E)(i) For purposes of subparagraph (C), if the de-
ceased individual died during a month for which he was
entitled to an old-age insurance benefit under subsection
(a) or a disability insurance benefit under section 223, to
a husband’s insurance benefit under subsection (c) based
on the wages and self-employment income of the widow
(or surviving divorced wife), or to both such an old-age
or disability insurance benefit and such a husband’s insur-
ance benefit, the imputed deceased individual’s benefit for
the application month is the sum of—
‘‘(I) the amount of the old-age or disability in-
surance benefit (if any) to which he would have been
entitled for the application month if he had survived
to the end of such month (taking into account appli-
cable reductions under this section), and
‘‘(II) the amount of the husband’s insurance
benefit (if any) to which he would have been entitled
for such month if he had survived to the end of such
month (taking into account applicable reductions
under this section, including any reduction under
subsection (k)(3)(A) based on the assumed entitle-
ment to an old-age or disability insurance benefit for
such month (if any) as described in subclause (I)).
‘‘(ii) If the deceased individual was entitled for the
month in which he died to a disability insurance benefit
under section 223, the amount determined under clause
(i) shall be determined as if he had remained entitled to
disability insurance benefits throughout the period com-
mencing with the month in which he died and ending with
the application month (or until becoming entitled to old-
age insurance benefits under subsection (a) during such
period).
‘‘(F) For purposes of subparagraph (C)(i)(II)—
‘‘(i) In the case of a widow (or surviving di-
vorced wife) who is entitled for the month preceding
the application month to an old-age insurance ben-
efit under subsection (a) or a disability insurance
benefit under section 223, to a wife’s insurance ben-
efit under subsection (b), or to both such an old-age
or disability insurance benefit and such a wife’s in-
surance benefit, the amount of her imputed survivor
benefit for the application month is the sum of—
‘‘(I) the amount of the old-age or disability
insurance benefit for the preceding month (if
any, taking into account applicable reductions
under this section), and
‘‘(II) the amount of the wife’s insurance
benefit for the preceding month (if any, taking
into account applicable reductions under this
section, including any reduction under sub-
section (k)(3)(A) based on the assumed entitle-
ment to an old-age or disability insurance ben-
efit for such month (if any) as described in sub-
clause (I)).
‘‘(ii) In the case of a widow (or surviving di-
vorced wife) who is not described in clause (i) but
has attained (or would attain) age 62 as of the end
of the application month, the amount of her imputed
survivor benefit is the sum of—
‘‘(I) the amount of the old-age insurance
benefit under subsection (a) to which the widow
(or surviving divorced wife) would be entitled
for the application month if she filed applica-
tion for such benefit on the last date of such
month (taking into account applicable reduc-
tions under this section), and
‘‘(II) the amount to which she would be
entitled as a wife’s insurance benefit under sub-
section (b) for the application month, based on
the deceased individual’s wages and self-employ-
ment income, if the deceased individual had
survived to the end of the application month
and she had filed application for such benefit
on the last date of such month (assuming a pri-
mary insurance amount for the deceased indi-
vidual determined under paragraph (2)(B) of
this subsection and taking into account applica-
ble reductions under this section, including any
reduction under subsection (k)(3)(A) based on
the assumed entitlement to an old-age insur-
ance benefit for such month (if any) as de-
scribed in subclause (I)).
In any case in which the widow (or surviving di-
vorced wife) would not attain age 62 before the end
of the application month, her imputed survivor ben-
efit shall be deemed to be zero.
‘‘(G) The increased benefit cap determined under this
subparagraph for the application month is the amount
which would be the amount of a theoretical individual’s
old-age insurance benefit under subsection (a) (reduced as
provided in subsection (q)) if—
‘‘(i) such theoretical individual’s primary insur-
ance amount for the first month of entitlement were
equal to the average of the primary insurance
amounts upon which old-age insurance benefits
under subsection (a) are payable for months in the
calendar year preceding the application month,
‘‘(ii) the application month were such first
month of such theoretical individual’s entitlement to
such old-age insurance benefit, and
‘‘(iii) the month in which the widow (or sur-
viving divorced wife) attained or would attain retire-
ment age (as defined in section 219(l)) were the
month in which the theoretical individual attained or
would attain retirement age (as so defined).
‘‘(H) If, in determining the amount of the benefit
under this section pursuant to this paragraph, the im-
puted old-age insurance benefit or imputed husband’s in-
surance benefit of the deceased individual was deemed to
be zero pursuant to the last sentence of clause (ii) or (iii)
of subparagraph (D), or the imputed survivor benefit of
the widow (or surviving divorced wife) was deemed to be
zero pursuant to the last sentence of subparagraph (F),
effective for any month after the application month in
which the deceased individual attains age 62 or the widow
(or surviving divorced wife) attains age 62, the Commis-
sioner shall recompute the amount of the benefit under
this paragraph by substituting a reference to such month
for each reference in the preceding provisions of this para-
graph to the application month.’’.
(b) WIDOWER’S
INSURANCE
BENEFITS.—Section
202(f) of such Act (42 U.S.C. 402(f)) is amended by add-
ing at the end the following new paragraph:
‘‘(10)(A) In any case in which the amount of a wid-
ower’s insurance benefit (as determined under the pre-
ceding provisions of this section, taking into account appli-
cable reductions under this section) for the application
month of the widower (or surviving divorced husband) is
less than the minimum benefit amount for such month de-
termined under subparagraph (C), the amount of such
benefit for such month and each succeeding month shall
be increased to such minimum benefit amount (or the
amount most recently established in lieu thereof under
section 215(i)).
‘‘(B) For purposes of this paragraph, the term ‘appli-
cation month’ of a widower (or surviving divorced hus-
band) means the month of the filing of his application for
widower’s insurance benefits.
‘‘(C) For purposes of subparagraph (A), the min-
imum benefit amount determined under this subparagraph
for the application month is an amount equal to the lesser
of—
‘‘(i) 75 percent of the sum of—
‘‘(I) the imputed deceased individual’s ben-
efit for such month, as determined under sub-
paragraph (D) or (E) (as applicable), and
‘‘(II) the imputed survivor benefit for such
month, as determined under subparagraph (F),
or
‘‘(ii) the increased benefit cap for such month,
as determined under subparagraph (G) for such
month.
‘‘(D)(i) For purposes of subparagraph (C)(i)(I), if the
deceased individual died in a month for which she was not
entitled to any benefit under this title based on her wages
or self-employment income or the wages and self-employ-
ment income of the widower (or surviving divorced hus-
band), the imputed deceased individual’s benefit for the
application month is the sum of—
‘‘(I) the imputed old-age insurance benefit (de-
termined under clause (ii)) of the deceased indi-
vidual for the application month (if any), and
‘‘(II) the imputed wife’s insurance benefit (de-
termined under clause (iii)) of the deceased indi-
vidual for the application month (if any).
‘‘(ii) The amount of the imputed old-age insurance
benefit of the deceased individual for the application
month is the amount of the old-age insurance benefit to
which she would have been entitled for such month—
‘‘(I) determined, in the case of such a deceased
individual who had attained age 62 as of the date
of her death, as if she had applied for such benefit
in the month of her death and had survived to the
end of the application month (taking into account
applicable reductions under this section), or
‘‘(II) determined, in the case of such a deceased
individual who died before attaining age 62 but
would have attained age 62 before the end of the ap-
plication month, as if she had survived to the end
of the application month, and had applied for such
benefit on such date (assuming a primary insurance
amount for the deceased individual determined
under paragraph (2)(B) of this subsection and tak-
ing into account applicable reductions under this
section).
In any case in which the deceased individual died before
attaining age 62 and would not have attained age 62 be-
fore the end of the application month, the deceased indi-
vidual’s imputed old-age insurance benefit shall be deemed
to be zero.
‘‘(iii) The amount of the imputed wife’s insurance
benefit of the deceased individual for the application
month is the amount of the wife’s insurance benefit under
subsection (c) to which she would have been entitled for
such month (reduced under subsection (k)(3)(A) assuming
the entitlement to an old-age insurance benefit for such
month, if any, as described in clause (ii) and otherwise
taking into account applicable reductions under this sec-
tion)—
‘‘(I) determined, in the case of such a deceased
individual who had attained age 62 as of the date
of her death, as if she had applied for such benefit
in the month of her death and had survived to the
end of the application month, or
‘‘(II) determined, in the case of such a deceased
individual who died before attaining age 62 but
would have attained age 62 before the end of the ap-
plication month, as if she had survived to the end
of the application month and had applied for such
benefit during the application month.
In any case in which the deceased individual died before
attaining age 62 and would not have attained age 62 be-
fore the end of the application month, the deceased indi-
vidual’s imputed wife’s insurance benefit shall be deemed
to be zero.
‘‘(E)(i) For purposes of subparagraph (C), if the de-
ceased individual died during a month for which she was
entitled to an old-age insurance benefit under subsection
(a) or a disability insurance benefit under section 223, to
a wife’s insurance benefit under subsection (b) based on
the wages and self-employment income of the widower (or
surviving divorced husband), or to both such an old-age
or disability insurance benefit and such a wife’s insurance
benefit, the imputed deceased individual’s benefit for the
application month is the sum of—
‘‘(I) the amount of the old-age or disability in-
surance benefit (if any) to which she would have
been entitled for the application month if she had
survived to the end of such month (taking into ac-
count applicable reductions under this section), and
‘‘(II) the amount of the wife’s insurance benefit
(if any) to which she would have been entitled for
such month if she had survived to the end of such
month (taking into account applicable reductions
under this section, including any reduction under
subsection (k)(3)(A) based on the assumed entitle-
ment to an old-age or disability insurance benefit for
such month (if any) as described in subclause (I)).
‘‘(ii) If the deceased individual was entitled for the
month in which she died to a disability insurance benefit
under section 223, the amount determined under clause
(i) shall be determined as if she had remained entitled to
disability insurance benefits throughout the period com-
mencing with the month in which she died and ending with
the application month (or until becoming entitled to old-
age insurance benefits under subsection (a) during such
period).
‘‘(F) For purposes of subparagraph (C)(i)(II)—
‘‘(i) In the case of a widower (or surviving di-
vorced husband) who is entitled for the month pre-
ceding the application month to an old-age insurance
benefit under subsection (a) or a disability insurance
benefit under section 223, to a husband’s insurance
benefit under subsection (c), or to both such an old-
age or disability insurance benefit and such a hus-
band’s insurance benefit, the amount of his imputed
survivor benefit for the application month is the sum
of—
‘‘(I) the amount of the old-age or disability
insurance benefit for the preceding month (if
any, taking into account applicable reductions
under this section), and
‘‘(II) the amount of the husband’s insur-
ance benefit for the preceding month (if any,
taking into account applicable reductions under
this section, including any reduction under sub-
section (k)(3)(A) based on the assumed entitle-
ment to an old-age or disability insurance ben-
efit for such month (if any) as described in sub-
clause (I)).
‘‘(ii) In the case of a widower (or surviving di-
vorced husband) who is not described in clause (i)
but has attained (or would attain) age 62 as of the
end of the application month, the amount of his im-
puted survivor benefit is the sum of—
‘‘(I) the amount of the old-age insurance
benefit under subsection (a) to which the wid-
ower (or surviving divorced husband) would be
entitled for the application month if he filed ap-
plication for such benefit on the last date of
such month (taking into account applicable re-
ductions under this section), and
‘‘(II) the amount to which he would be en-
titled as a husband’s insurance benefit under
subsection (b) for the application month, based
on the deceased individual’s wages and self-em-
ployment income, if the deceased individual had
survived to the end of the application month
and he had filed application for such benefit on
the last date of such month (assuming a pri-
mary insurance amount for the deceased indi-
vidual determined under paragraph (2)(B) of
this subsection and taking into account applica-
ble reductions under this section, including any
reduction under subsection (k)(3)(A) based on
the assumed entitlement to an old-age insur-
ance benefit for such month (if any) as de-
scribed in subclause (I)).
In any case in which the widower (or surviving di-
vorced husband) would not attain age 62 before the
end of the application month, his imputed survivor
benefit shall be deemed to be zero.
‘‘(G) The increased benefit cap determined under this
subparagraph for the application month is the amount
which would be the amount of a theoretical individual’s
old-age insurance benefit under subsection (a) (reduced as
provided in subsection (q)) if—
‘‘(i) such theoretical individual’s primary insur-
ance amount for the first month of entitlement were
equal to the average of the primary insurance
amounts upon which old-age insurance benefits
under subsection (a) are payable for months in the
calendar year preceding the application month,
(c) COST-OF-LIVING ADJUSTMENTS TO GUARANTEED
WIDOW’S AND WIDOWER’S INSURANCE BENEFITS.—Sec-
tion 
215(i)(2)(A)(ii) 
of 
such 
Act 
(42 
U.S.C.
415(i)(2)(A)(ii)) is amended—
(1) in subclause (II), by striking ‘‘and’’ at the
end;
(2) in subclause (III), by striking ‘‘1978.’’ and
inserting ‘‘1979, and’’;
(3) by adding at the end the following new sub-
clause:
‘‘(IV) the benefit amount to which an individual
is entitled for that month under subsection (e) or (f)
of section 202 if such benefit amount has been in-
creased under paragraph (10) of such subsection.’’;
and
(4) in the matter following subclause (IV)
(added by paragraph (3)), by striking ‘‘(I), (II), and
(III)’’ and inserting ‘‘(I), (II), (III), and (IV)’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to widow’s and wid-
ower’s insurance benefits for months after November of
the calendar year in which this Act is enacted.
SEC. 203. BENEFITS FOR DISABLED WIDOWS AND WID-
OWERS WITHOUT REGARD TO AGE.
(a) ELIGIBILITY FOR WIDOW’S INSURANCE BENE-
FITS.—Section 202(e)(1)(B)(ii) of the Social Security Act
(42 U.S.C. 402(e)(1)(B)(ii)) is amended by striking ‘‘has
attained age 50 but has not attained age 60 and’’.
(b) ELIGIBILITY FOR WIDOWER’S INSURANCE BENE-
FITS.—Section 202(f)(1)(B)(ii) of such Act (42 U.S.C.
402(f)(1)(B)(ii)) is amended by striking ‘‘has attained age
50 but has not attained age 60 and’’.
(c) 
CONFORMING
AMENDMENT.—Section
202(q)(3)(A) of such Act (42 U.S.C. 402(q)(3)(A)) is
amended by striking ‘‘If the first month’’ and all that fol-
lows through ‘‘widow’s or widower’s insurance benefit)’’
and inserting ‘‘If the first month for which an individual
both is entitled to a wife’s or husband’s insurance benefit
and has attained age 62 or for which an individual is enti-
tled to a widow’s or widower’s insurance benefit’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to monthly insurance
benefits payable under title II of the Social Security Act
for months after November of the calendar year in which
this Act is enacted and for which applications are filed
or pending after November of such year.
SEC. 204. REPEAL OF 7-YEAR RESTRICTION ON ELIGIBILITY
FOR WIDOW’S AND WIDOWER’S INSURANCE
BENEFITS BASED ON DISABILITY.
(a) WIDOW’S INSURANCE BENEFITS.—
(1) IN GENERAL.—Section 202(e) of the Social
Security Act (42 U.S.C. 402(e)) is amended—
(A) in paragraph (1)(B)(ii), by striking
‘‘which began before the end of the period spec-
ified in paragraph (4)’’;
(B) in paragraph (1)(F)(ii), by striking
‘‘(I) in the period specified in paragraph (4)
and (II)’’;
(C) by striking paragraph (4) and by re-
designating paragraphs (5) through (9) as
paragraphs (4) through (8), respectively; and
(D) in paragraph (4)(A)(ii) (as redesig-
nated), by striking ‘‘whichever’’ and all that fol-
lows through ‘‘begins’’ and inserting ‘‘the first
day of the seventeenth month before the month
in which her application is filed’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 202(e)(1)(F)(i) of such Act
(42 U.S.C. 402(e)(1)(F)(i)) is amended by
striking ‘‘paragraph (5)’’ and inserting ‘‘para-
graph (4)’’.
(B) Section 202(e)(1)(C)(ii)(III) of such
Act (42 U.S.C. 402(e)(2)(C)(ii)(III)) is amend-
ed by striking ‘‘paragraph (8)’’ and inserting
‘‘paragraph (7)’’.
(C) Section 202(e)(2)(A) of such Act (42
U.S.C. 402(e)(2)(A)) is amended by striking
‘‘paragraph (7)’’ and inserting ‘‘paragraph
(6)’’.
(D) Section 226(e)(1)(A)(i) of such Act
(42 U.S.C. 426(e)(1)(A)(i)) is amended by
striking ‘‘202(e)(4),’’.
(b) WIDOWER’S INSURANCE BENEFITS.—
(1) IN GENERAL.—Section 202(f) of such Act
(42 U.S.C. 402(f)) is amended—
(A) in paragraph (1)(B)(ii), by striking
‘‘which began before the end of the period spec-
ified in paragraph (5)’’;
(B) in paragraph (1)(F)(ii), by striking
‘‘(I) in the period specified in paragraph (5)
and (II)’’;
(C) by striking paragraph (5) and by re-
designating paragraphs (6) through (9) as
paragraphs (5) through (8), respectively; and
(D) in paragraph (5)(A)(ii) (as redesig-
nated), by striking ‘‘whichever’’ and all that fol-
lows through ‘‘begins’’ and inserting ‘‘the first
day of the seventeenth month before the month
in which his application is filed’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 202(f)(1)(F)(i) of such Act (42
U.S.C. 402(f)(1)(F)(i)) is amended by striking
‘‘paragraph (6)’’ and inserting ‘‘paragraph
(5)’’.
(B) Section 202(f)(1)(C)(ii)(III) of such
Act (42 U.S.C. 402(f)(2)(C)(ii)(III)) is amend-
ed by striking ‘‘paragraph (8)’’ and inserting
‘‘paragraph (7)’’.
(C) Section 226(e)(1)(A)(i) of such Act (as
amended by subsection (a)(2)) is further
amended by striking ‘‘202(f)(1)(B)(ii), and
202(f)(5)’’ 
and 
inserting 
‘‘and
202(f)(1)(B)(ii)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to benefits for months
after November of the calendar year in which this Act is
enacted and for which applications are filed or pending
after November of such year.
SEC. 205. EXEMPTION FROM TWO-YEAR WAITING PERIOD
FOR DIVORCED SPOUSE’S BENEFITS UPON
OTHER SPOUSE’S REMARRIAGE.
(a) 
WIFE’S
INSURANCE
BENEFITS.—Section
202(b)(5)(A) of the Social Security Act (42 U.S.C.
402(b)(5)(A)) is amended by adding at the end the fol-
lowing new sentence: ‘‘The criterion for entitlement under
clause (ii) shall be deemed met upon the remarriage of
the insured individual to someone other than the applicant
during the 2-year period referred to in such clause.’’.
(b) HUSBAND’S
INSURANCE
BENEFITS.—Section
202(c)(5)(A) of such Act (42 U.S.C. 402(c)(5)(A)) is
amended by adding at the end the following new sentence:
‘‘The criterion for entitlement under clause (ii) shall be
deemed met upon the remarriage of the insured individual
to someone other than the applicant during the 2-year pe-
riod referred to in such clause.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to benefits for months
after November of the calendar year in which this Act is
enacted and for which applications are filed or pending
after November of such year.
SEC. 206. INCREASE IN AMOUNT OF WAGES AND SELF-EM-
PLOYMENT INCOME CREDITED TO YEARS
TAKEN INTO ACCOUNT IN DETERMINING AV-
ERAGE INDEXED MONTHLY EARNINGS FOR
BENEFICIARIES PRECLUDED FROM REMU-
NERATIVE WORK OCCASIONED BY NEED TO
PROVIDE CHILD CARE.
(a) IN GENERAL.—Section 215(b)(3) of the Social
Security Act (42 U.S.C. 415(b)(3)) is amended—
(1) in subparagraph (A), by striking ‘‘subpara-
graph (B)’’ and inserting ‘‘subparagraphs (B) and
(C)’’, and
(2) by adding at the end the following new sub-
paragraph:
‘‘(C)(i) Subject to clause (iii), in any case in which—
‘‘(I) in any calendar year which is included in
an individual’s elapsed years, such individual was
living with a child (of such individual or his or her
spouse) under the age of 7, and
‘‘(II) at any time during or after such calendar
year and on or before the date of the application by
such individual for benefits based on such individ-
ual’s wages and self-employment income, such indi-
vidual submits to the Commissioner, in such form as
the Commissioner shall prescribe by regulation, a
written statement that the requirements of subclause
(I) are met with respect to such calendar year,
the amount of the wages and self-employment income paid
in or credited to such year under subparagraph (A), if less
than the minimum credit amount for such individual for
such year under clause (ii), shall be deemed equal to such
minimum credit amount.
‘‘(ii) For purposes of clause (i), the minimum credit
amount for an individual described in clause (i) for any
calendar year shall be an amount equal to the product de-
rived by multiplying—
‘‘(I) 1⁄4 of the average indexed monthly earnings
of such individual, determined as if such individual
became entitled to disability insurance benefits on
January 1 of such year, by
‘‘(II) the number of months in such year during
which such individual meets the requirements of
clause (i)(I).
‘‘(iii) Clause (i) shall apply only with respect to not
more than 5 elapsed years designated by the individual
described in clause (i) with respect to which such indi-
vidual submits a statement under clause (i)(II).
‘‘(iv) Clause (i) shall not apply in the case of an indi-
vidual with respect to any calendar year referred to in
clause (i)(I), if such individual’s spouse referred to in such
clause was also living with the child referred to in such
clause in such year, and—
‘‘(I) the amount of such individual’s wages and
self-employment income paid in or credited to such
year (as determined before the application of this
subparagraph) is greater than the amount of the
wages and self-employment income paid in or cred-
ited to such year (as so determined) of such spouse,
or
‘‘(II) in any case in which the amount of the
wages and self-employment income of each spouse
paid in or credited to such year is equal to the
wages and self-employment income of the other
spouse paid in or credited to such year, such individ-
ual’s minimum credit amount determined under
clause (ii) for such calendar year is greater than the
minimum credit amount determined under clause (ii)
for such individual’s spouse.
In any case in which the requirements of neither subclause
(I) nor subclause (II) are met with respect to such indi-
vidual, the Commissioner of Social Security shall provide
by regulation for the application of clause (i) only with
respect to one of the two spouses in accordance with the
equities of the case.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to benefits for months
after November of the calendar year in which this Act is
enacted.
SEC. 207. GOVERNMENT PENSION OFFSET REDUCED FROM
TWO-THIRDS TO ONE-THIRD OF THE GOVERN-
MENT PENSION.
(a) 
WIFE’S
INSURANCE
BENEFITS.—Section
202(b)(4)(A) of the Social Security Act (42 U.S.C.
402(b)(4)(A)) is amended by striking ‘‘two-thirds’’ and in-
serting ‘‘one-third’’.
(b) HUSBAND’S
INSURANCE
BENEFITS.—Section
202(c)(2)(A) of such Act (42 U.S.C. 402(b)(2)(A)) is
amended by striking ‘‘two-thirds’’ and inserting ‘‘one-
third’’.
(c) 
WIDOW’S
INSURANCE
BENEFITS.—Section
202(e)(7)(A) of such Act (42 U.S.C. 402(e)(7)(A)) is
amended by striking ‘‘two-thirds’’ and inserting ‘‘one-
third’’.
(d) WIDOWER’S
INSURANCE
BENEFITS.—Section
202(f)(2)(A) of such Act (42 U.S.C. 402(f)(2)(A)) is
amended by striking ‘‘two-thirds’’ and inserting ‘‘one-
third’’.
(e) MOTHER’S AND FATHER’S INSURANCE BENE-
FITS.—Section 202(g)(4)(A) of the such Act (42 U.S.C.
402(g)(4)(A)) is amended by striking ‘‘two-thirds’’ and in-
serting ‘‘one-third’’.
(f) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to benefits for months
after November of the calendar year in which this Act is
enacted.
SEC. 208. GUARANTEE OF FULL SOCIAL SECURITY BENE-
FITS WITH ACCURATE ANNUAL COST-OF-LIV-
ING ADJUSTMENT.
(a) IN GENERAL.—Not later than 90 days after the
date of the enactment of this Act, the Secretary of the
Treasury shall issue a benefit guarantee certificate to each
individual who is determined by the Commissioner of So-
cial Security as of the date of the issuance of the certifi-
cate to be entitled to monthly insurance benefits under
title II of the Social Security Act (42 U.S.C. 401 et seq.).
The Secretary shall also issue such a certificate to any
individual on the date such individual is determined there-
after to be entitled to monthly insurance benefits under
such title.
(b) BENEFIT GUARANTEE CERTIFICATE.—The ben-
efit guarantee certificate issued pursuant to subsection (a)
shall represent a legally enforceable guarantee—
(1) of the timely payment of the full amount of
future monthly insurance benefit payments to which
the individual is entitled under title II of the Social
Security Act (as determined under such title as in
effect on the date of the issuance of the certificate);
and
(2) that the benefits will be adjusted thereafter
not less frequently than annually to the extent pre-
scribed in provisions of such title (as in effect on the
date of the issuance of the certificate) providing for
accurate adjustments based on indices reflecting
changes in consumer prices as determined by the
Bureau of Labor Statistics or changes in wages as
determined by the Commissioner of Social Security,
as provided in section 215(i) of the Social Security
Act or its successor provision (as in effect on such
date).
(c) OBLIGATION TO PROVIDE PAYMENTS AS GUAR-
ANTEED.—Any certificate issued under the authority of
this section constitutes budget authority in advance of ap-
propriations Acts and represents the obligation of the Fed-
eral Government to provide for the payment to the indi-
vidual to whom the certificate is issued monthly insurance
benefits under title II of the Social Security Act (42
U.S.C. 401 et seq.) in amounts in accordance with the
guarantee set forth in the certificate.
Æ