ployment income. Any such election filed after December
31, 2001, shall be null and void and of no effect.
‘‘(iii) Upon receipt by the Commissioner of a timely
election filed by the individual described in paragraph
(4)(B) in accordance with clause (ii)—
‘‘(I) the Commissioner shall certify receipt of
such election to the Secretary of the Treasury, and
the Secretary of the Treasury, after receipt of such
certification, 
shall 
pay 
such 
individual, 
from
amounts in the Federal Old-Age and Survivors In-
surance Trust Fund, a total amount equal to
$5,000, in 4 annual lump sum installments of
$1,250, the first of which shall be made during fis-
cal year 2002 not later than July 1, 2002, and
‘‘(II) subparagraph (A) shall not apply in deter-
mining such individual’s primary insurance amount.
‘‘(iv) Upon receipt by the Commissioner as of Decem-
ber 31, 2001, of a timely election filed in accordance with
clause (ii) by at least one beneficiary entitled to benefits
on the basis of the wages and self-employment income of
a deceased individual described in paragraph (4)(B), if
such deceased individual has filed no timely election in ac-
cordance with clause (ii)—
‘‘(I) the Commissioner shall certify receipt of all
such elections received as of such date to the Sec-
retary of the Treasury, and the Secretary of the
Treasury, after receipt of such certification, shall
pay each beneficiary filing such a timely election,
from amounts in the Federal Old-Age and Survivors
Insurance Trust Fund, a total amount equal to
$5,000 (or, in the case of 2 or more such bene-
ficiaries, such amount distributed evenly among such
beneficiaries), in 4 equal annual lump sum install-
ments, the first of which shall be made during fiscal
year 2002 not later than July 1, 2002, and
‘‘(II) solely for purposes of determining the
amount of such beneficiary’s benefits, subparagraph
(A) shall be deemed not to apply in determining the
deceased individual’s primary insurance amount.’’.
(b) EFFECTIVE DATE AND RELATED RULES.—
(1) APPLICABILITY OF AMENDMENTS.—
(A) IN GENERAL.—Except as provided in
paragraph (2), the amendments made by this
Act shall be effective as though they had been
included or reflected in section 201 of the So-
cial Security Amendments of 1977.
(B) APPLICABILITY.—No monthly benefit
or primary insurance amount under title II of
the Social Security Act shall be increased by
reason of such amendments for any month be-
fore July 2002. The amendments made to this
section shall apply with respect to benefits pay-
able in months in any fiscal year after fiscal
year 2002 only if the corresponding decrease in
adjusted discretionary spending limits for budg-
et authority and outlays under section 3 of this
Act for fiscal years prior to fiscal year 2003 is
extended by Federal law to such fiscal year
after fiscal year 2002.
(2) RECOMPUTATION TO REFLECT BENEFIT IN-
CREASES.—In any case in which an individual is en-
titled to monthly insurance benefits under title II of
the Social Security Act for June 2002, if such bene-
fits are based on a primary insurance amount
computed—
(A) under section 215 of such Act as in ef-
fect (by reason of the Social Security Amend-
ments of 1977) after December 1978, or
(B) under section 215 of such Act as in ef-
fect prior to January 1979 by reason of sub-
section (a)(4)(B) of such section (as amended
by the Social Security Amendments of 1977),
the Commissioner of Social Security (notwith-
standing section 215(f)(1) of the Social Security
Act) shall recompute such primary insurance
amount so as to take into account the amendments
made by this Act.
SEC. 
3. 
OFFSET 
THROUGH 
REDUCTIONS 
IN 
DISCRE-
TIONARY SPENDING LIMITS.
Whenever the Director of the Office of Management
and Budget estimates this legislation under section
252(d)(2) of the Balanced Budget and Emergency Deficit
Control Act of 1985, the Director shall decrease the ad-
justed discretionary spending limits for budget authority
and outlays for fiscal year 2002 set forth in section
251(c)(6)(A) of such Act by the increase in direct spend-
ing estimated to result from enactment of this legislation
for that fiscal year. For purposes of section 252(b) of such
Act, an amount equal to that decrease in the discretionary
spending limit for outlays for such fiscal year shall be
treated as direct spending legislation decreasing the deficit
for that fiscal year.
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