(6) BENEFIT.—For purposes of this section,
the term ‘‘benefit’’ includes a payment.
(h) RECAPTURE TO FEDERAL OLD-AGE AND SUR-
VIVORS INSURANCE TRUST FUND.—Section 201 of the
Social Security Act (42 U.S.C. 401) is amended by adding
at the end the following new subsection:
‘‘(n) On July 1 of each calendar year specified in the
following table, the Secretary of the Treasury shall trans-
fer, from the general fund of the Treasury to the Federal
Old-Age and Survivors Insurance Trust Fund, an amount
equal to the applicable percentage for such year, specified
in such table, of the total wages paid in and self-employ-
ment income credited to such year.
‘‘For a calendar year—
The applicable percentage for
the year is—
After 1999 and before 2001 ..........
0.03 percent.
After 2000 and before 2002 ..........
0.07 percent.
After 2001 and before 2003 ..........
0.13 percent.
After 2002 and before 2004 ..........
0.15 percent.
After 2003 and before 2005 ..........
0.20 percent.
After 2004 and before 2006 ..........
0.24 percent.
After 2005 and before 2007 ..........
0.28 percent.
After 2006 and before 2008 ..........
0.32 percent.
After 2007 and before 2009 ..........
0.35 percent.
After 2008 and before 2010 ..........
0.38 percent.
After 2009 and before 2016 ..........
0.47 percent.
After 2015 and before 2040 ..........
0.55 percent.
After 2039 and before 2060 ..........
0.66 percent.
After 2059 .....................................
0.80 percent.’’.
SEC. 9. ADJUSTMENT TO UPPER 2 BENEFIT FORMULA FAC-
TORS.
Section 215(a)(1)(B) of the Social Security Act (42
U.S.C. 415(a)(1)(B)) is amended—
(1) by redesignating clause (iii) as clause (vi);
and
(2) by inserting after clause (ii) the following:
‘‘(iii) For an individual who initially becomes eligible
for old-age or disability insurance benefits, or who dies
(before becoming eligible for such benefits), in any cal-
endar year after 2005, each of the amounts otherwise es-
tablished for purposes of clauses (ii) and (iii) of subpara-
graph (A) under this subparagraph shall be substituted
with the product derived by successively multiplying, once
for each year of the factoring period for such individual
commencing with 2006—
‘‘(I) such amount (after applying this clause for
earlier years of the factoring period), by
‘‘(II) the designated factor for such year.
‘‘(iv) For purposes of clause (iii), the term ‘factoring
period’ means, for an individual, the period beginning with
2006 and ending with the earlier of—
‘‘(I) the year of the individual’s initial eligibility
or death, or
‘‘(II) 2030.
‘‘(v) For purposes of clause (iii), the term ‘designated
factor’ means—
‘‘(I) for a year prior to 2011, 0.985, and
‘‘(II) for a year after 2010, 0.980.’’.
SEC. 10. PHASED-IN INCREASE IN SOCIAL SECURITY RE-
TIREMENT 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
(A), (B), (C), (D), and (E) and inserting the fol-
lowing:
‘‘(A) with respect to an individual who at-
tains age 62 (or in the case of a widow’s or
widower’s insurance benefit, age 60) before
January 1, 2000, 65 years of age;
‘‘(B) with respect to an individual who at-
tains age 62 (or in the case of a widow’s or
widower’s insurance benefit, age 60) after De-
cember 31, 1999 and before January 1, 2011,
65 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 62 (or in the
case of a widow’s or widower’s insurance ben-
efit, age 60);
‘‘(C) with respect to an individual who at-
tains age 62 (or in the case of a widow’s or
widower’s insurance benefit, age 60) after De-
cember 31, 2010, and before January 1, 2012,
67 years of age; and
‘‘(D) with respect to an individual who at-
tains age 62 (or in the case of a widow’s or
widower’s insurance benefit, age 60) after De-
cember 31, 2011, 67 years of age plus 1⁄24 of
the number of months in the period beginning
with January 2012 and ending with December
of the year in which the individual attains age
62 (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)(i) in the case of an old-age, wife’s, or
husband’s insurance benefit, except as provided
in subparagraph (B), age 62, and
‘‘(ii) in the case of a widow’s or widower’s
insurance benefit, age 60; and
‘‘(B) in the case of an old-age, wife’s, or
husband’s insurance benefit with respect to an
individual who attains age 62 after December
31, 2011, 62 years of age plus 1⁄18 of the num-
ber of whole months elapsing since such date.’’.
SEC. 11. MODIFICATION OF PIA FORMULA TO REFLECT
CHANGES IN LIFE EXPECTANCY.
(a) MODIFICATION OF FORMULA.—Section 215(a)(1)
of the Social Security Act (42 U.S.C. 415(a)(1)(B)) is
amended by redesignating subparagraph (D) as subpara-
graph (E) and by inserting after subparagraph (C) the
following new subparagraph:
‘‘(D)(i) For individuals who initially become eligible
for old-age insurance benefits (or who die before becoming
eligible for such benefits) in any calendar year after 2011,
the primary insurance amount computed under this para-
graph shall be the product derived by multiplying such
amount as computed under the preceding subparagraphs
of this paragraph the applicable number of times by 0.995.
‘‘(ii) For purposes of the clause (i), the term ‘applica-
ble number of times’ means a number equal to the number
of years beginning with 2012 and ending with the earlier
of the year of initial eligibility (or death) or 2045.’’.
(b) STUDY OF THE EFFECT OF INCREASES IN LIFE
EXPECTANCY.—
(1) STUDY PLAN.—Not later than February 15,
2001, the Commissioner of Social Security shall sub-
mit to Congress a detailed study plan for evaluating
the effects of increases in life expectancy on the ex-
pected level of retirement income from social secu-
rity, pensions, and other sources. The study plan
shall include a description of the methodology, data,
and funding that will be required in order to provide
to the Congress not later than February 15, 2006—
(A) an evaluation of trends in mortality
and their relationship to trends in health sta-
tus, among individuals approaching eligibility
for old-age insurance benefits under title II of
the Social Security Act;
(B) an evaluation of trends in labor force
participation among individuals approaching eli-
gibility for such benefits and among individuals
receiving such benefits, and of the factors that
influence the choice between retirement and
participation in the labor force;
(C) an evaluation of changes, if any, in the
disability insurance program under title II of
the Social Security Act that would reduce the
impact of changes in the retirement income of
workers in poor health or physically demanding
occupations;
(D) an evaluation of the methodology used
to develop projections for trends in mortality,
health status, and labor force participation
among individuals approaching eligibility for
old-age insurance benefits and among individ-
uals receiving such benefits; and
(E) an evaluation of such other matters as
the Commissioner deems appropriate for evalu-
ating the effects of increases in life expectancy.
(2) REPORT ON RESULTS OF STUDY.—Not later
than February 15, 2006, the Commissioner of Social
Security shall provide to the Congress an evaluation
of the implications of the trends studied under para-
graph (1), along with recommendations, if any, of
the extent to which the conclusions of such evalua-
tions indicate that projected increases in life expect-
ancy require modification in the disability insurance
program under title II of the Social Security Act
and other income support programs.
SEC. 12. MECHANISM FOR REMEDYING UNFORESEEN DETE-
RIORATION IN SOCIAL SECURITY SOLVENCY.
(a) IN GENERAL.—Section 709 of the Social Security
Act (42 U.S.C. 910) is amended—
(1) by redesignating subsection (b) as sub-
section (c); and
(2) by striking ‘‘SEC. 709. (a) If the Board of
Trustees’’ and all that follows through ‘‘any such
Trust Fund’’ and inserting the following:
‘‘SEC. 709. (a)(1)(A) If the Board of Trustees of the
Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund determines
at any time, using intermediate actuarial assumptions,
that the balance ratio of either such Trust Fund for any
calendar year during the succeeding period of 75 calendar
years will be zero, the Board shall promptly submit to each
House of the Congress and to the President a report set-
ting forth its recommendations for statutory adjustments
affecting the receipts and disbursements of such Trust
Fund necessary to maintain the balance ratio of such
Trust Fund at not less than 20 percent, with due regard
to the economic conditions which created such inadequacy
in the balance ratio and the amount of time necessary to
alleviate such inadequacy in a prudent manner. The report
shall set forth specifically the extent to which benefits
would have to be reduced, taxes under section 1401, 3101,
or 3111 of the Internal Revenue Code of 1986 would have
to be increased, or a combination thereof, in order to ob-
tain the objectives referred to in the preceding sentence.
‘‘(B) In addition to any reports under subparagraph
(A), the Board shall, not later than May 30, 2001, prepare
and submit to Congress and the President recommenda-
tions for statutory adjustments to the disability insurance
program under title II of this Act to modify the changes
in disability benefits under the Strengthening Social Secu-
rity Act of 1998 without reducing the balance ratio of the
Federal Disability Insurance Trust Fund. The Board shall
develop such recommendations in consultation with the
National Council on Disability, taking into consideration
the adequacy of benefits under the program, the relation-
ship of such program with old age benefits under such
title, and changes in the process for determining initial
eligibility and reviewing continued eligibility for benefits
under such program.
‘‘(2)(A) The President shall, no later than 30 days
after the submission of the report to the President, trans-
mit to the Board and to the Congress a report containing
the President’s approval or disapproval of the Board’s rec-
ommendations.
‘‘(B) If the President approves all the recommenda-
tions of the Board, the President shall transmit a copy
of such recommendations to the Congress as the Presi-
dent’s recommendations, together with a certification of
the President’s adoption of such recommendations.
‘‘(C) If the President disapproves the recommenda-
tions of the Board, in whole or in part, the President shall
transmit to the Board and the Congress the reasons for
that disapproval. The Board shall then transmit to the
Congress and the President, no later than 60 days after
the date of the submission of the original report to the
President, a revised list of recommendations.
‘‘(D) If the President approves all of the revised rec-
ommendations of the Board transmitted to the President
under subparagraph (C), the President shall transmit a
copy of such revised recommendations to the Congress as
the President’s recommendations, together with a certifi-
cation of the President’s adoption of such recommenda-
tions.
‘‘(E) If the President disapproves the revised rec-
ommendations of the Board, in whole or in part, the Presi-
dent shall transmit to the Board and the Congress the
reasons for that disapproval, together with such revisions
to such recommendations as the President determines are
necessary to bring such recommendations within the
President’s approval. The President shall transmit a copy
of such recommendations, as so revised, to the Board and
the Congress as the President’s recommendations, to-
gether with a certification of the President’s adoption of
such recommendations.
‘‘(3)(A) This paragraph is enacted by Congress—
‘‘(i) as an exercise of the rulemaking power of
the Senate and the House of Representatives, re-
spectively, and as such it is deemed a part of the
rules of each House, respectively, but applicable only
with respect to the procedure to be followed in that
House in the case of a joint resolution described in
subparagraph (B), and it supersedes other rules only
to the extent that it is inconsistent with such rules;
and
‘‘(ii) with full recognition of the constitutional
right of either House to change the rules (so far as
relating to the procedure of that House) at any time,
in the same manner, and to the same extent as in
the case of any other rule of that House.
‘‘(B) For purposes of this paragraph, the term ‘joint
resolution’ means only a joint resolution which is intro-
duced within the 10-day period beginning on the date on
which the President transmits the President’s rec-
ommendations, together with the President’s certification,
to the Congress under subparagraph (B), (D), or (E) of
paragraph (2), and—
‘‘(i) which does not have a preamble;
‘‘(ii) the matter after the resolving clause of
which is as follows: ‘That the Congress approves the
recommendations of the President as transmitted on
ll pursuant to section 709(a) of the Social Secu-
rity Act, as follows: llll’, the first blank space
being filled in with the appropriate date and the sec-
ond blank space being filled in with the statutory ad-
justments contained in the recommendations; and
‘‘(iii) the title of which is as follows: ‘Joint reso-
lution approving the recommendations of the Presi-
dent regarding social security.’.
‘‘(C) A joint resolution described in subparagraph
(B) that is introduced in the House of Representatives
shall be referred to the Committee on Ways and Means
of the House of Representatives. A joint resolution de-
scribed in subparagraph (B) introduced in the Senate
shall be referred to the Committee on Finance of the Sen-
ate.
‘‘(D) If the committee to which a joint resolution de-
scribed in subparagraph (B) is referred has not reported
such joint resolution (or an identical joint resolution) by
the end of the 20-day period beginning on the date on
which the President transmits the recommendation to the
Congress under paragraph (2), such committee shall be,
at the end of such period, discharged from further consid-
eration of such joint resolution, and such joint resolution
shall be placed on the appropriate calendar of the House
involved.
‘‘(E)(i) On or after the third day after the date on
which the committee to which such a joint resolution is
referred has reported, or has been discharged (under sub-
paragraph (D)) from further consideration of, such a joint
resolution, it is in order (even though a previous motion
to the same effect has been disagreed to) for any Member
of the respective House to move to proceed to the consider-
ation of the joint resolution. A Member may make the mo-
tion only on the day after the calendar day on which the
Member announces to the House concerned the Member’s
intention to make the motion, except that, in the case of
the House of Representatives, the motion may be made
without such prior announcement if the motion is made
by direction of the committee to which the joint resolution
was referred. All points of order against the joint resolu-
tion (and against consideration of the joint resolution) are
waived. The motion is highly privileged in the House of
Representatives and is privileged in the Senate and is not
debatable. The motion is not subject to amendment, or
to a motion to postpone, or to a motion to proceed to the
consideration of other business. A motion to reconsider the
vote by which the motion is agreed to or disagreed to shall
not be in order. If a motion to proceed to the consideration
of the joint resolution is agreed to, the respective House
shall immediately proceed to consideration of the joint res-
olution without intervening motion, order, or other busi-
ness, and the joint resolution shall remain the unfinished
business of the respective House until disposed of.
‘‘(ii) Debate on the joint resolution, and on all debat-
able motions and appeals in connection therewith, shall be
limited to not more than 2 hours, which shall be divided
equally between those favoring and those opposing the
joint resolution. An amendment to the joint resolution is
not in order. A motion further to limit debate is in order
and not debatable. A motion to postpone, or a motion to
proceed to the consideration of other business, or a motion
to recommit the joint resolution is not in order. A motion
to reconsider the vote by which the joint resolution is
agreed to or disagreed to is not in order.
‘‘(iii) Immediately following the conclusion of the de-
bate on a joint resolution described in subparagraph (B)
and a single quorum call at the conclusion of the debate
if requested in accordance with the rules of the appro-
priate House, the vote on final passage of the joint resolu-
tion shall occur.
‘‘(iv) Appeals from the decisions of the Chair relating
to the application of the rules of the Senate or the House
of Representatives, as the case may be, to the procedure
relating to a joint resolution described in subparagraph
(B) shall be decided without debate.
‘‘(F)(i) If, before the passage by one House of a joint
resolution of that House described in subparagraph (B),
that House receives from the other House a joint resolu-
tion described in subparagraph (B), then the following
procedures shall apply:
‘‘(I) The joint resolution of the other House
shall not be referred to a committee and may not be
considered in the House receiving it except in the
case of final passage as provided in subclause (II).
‘‘(II) With respect to a joint resolution de-
scribed in subparagraph (B) of the House receiving
the joint resolution, the procedure in that House
shall be the same as if no joint resolution had been
received from the other House, but the vote on final
passage shall be on the joint resolution of the other
House.
‘‘(ii) Upon disposition of the joint resolution received
from the other House, it shall no longer be in order to
consider the joint resolution that originated in the receiv-
ing House.
‘‘(b) If the Board of Trustees of the Federal Hospital
Insurance Trust Fund or the Federal Supplementary
Medical Insurance Trust Fund determines at any time
that the balance ratio of either such Trust Fund’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 709(b) of such Act (as amended by
subsection (a) of this section) is amended by striking
‘‘any such’’ and inserting ‘‘either such’’.
(2) Section 709(c) of such Act (as redesignated
by subsection (a) of this section) is amended by in-
serting ‘‘or (b)’’ after ‘‘subsection (a)’’.
Æ