‘‘(B) 2 percent of self-employment income 
in the case of any additional self-employment 
income derived by such individual during the 
taxable year, and 
‘‘(C) so much of such self-employment in-
come (not to exceed $5,000) as designated by 
the individual in the same manner as described 
in section 251(c) of the Social Security Act. 
‘‘(3) INFLATION ADJUSTMENTS.—
‘‘(A) IN GENERAL.—In the case of any cal-
endar year beginning after 2006, the $10,000 
amount in paragraphs (1) and (2) shall be in-
creased by an amount equal to—
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the wage increase percentage (if 
any) for such year, 
‘‘(B) DESIGNATED
CONTRIBUTIONS.—In 
the case of any calendar year beginning after 
2008, the $5,000 amount in paragraph (2)(C) 
shall be increased by an amount equal to—
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the percentage increase (if any) 
for such year determined under section 
215(i) of the Social Security Act.
‘‘(C) ROUNDING.—If any dollar amount 
after being increased under subparagraph (A) 
or (B) is not a multiple of $10, such dollar 
amount shall be rounded to the nearest multiple 
of $10. 
‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘wage increase percentage’, with re-
spect to a calendar year, means the percentage in-
crease which would become effective under section 
215(i)(2) of the Social Security Act in such year if 
such increase were determined as described in sec-
tion 215(i)(5)(A)(i) of such Act.’’. 
(3) PART B ELIGIBLE INDIVIDUAL.—
(A) TAXES ON EMPLOYEES.—Section 3121 
of such Code (relating to definitions) is amend-
ed by inserting after subsection (s) the fol-
lowing new subsection: 
‘‘(t) PART B ELIGIBLE INDIVIDUAL.—For purposes 
of this chapter, the term ‘part B eligible individual’ means, 
for any calendar year, an individual who is an eligible indi-
vidual (as defined in section 251(a)(2) of the Social Secu-
rity Act) for such calendar year.’’. 
(B) 
SELF-EMPLOYMENT
TAX.—Section 
1402 of such Code (relating to definitions) is
amended by adding at the end the following 
new subsection: 
‘‘(k) PART B ELIGIBLE INDIVIDUAL.—The term 
‘part B eligible individual’ means, for any calendar year, 
an individual who is an eligible individual (as defined in 
section 251(a)(2) of the Social Security Act) for such cal-
endar year.’’. 
(4) EFFECTIVE DATES.—
(A) EMPLOYEES.—The amendments made 
by paragraphs (1) and (3)(A) apply to remu-
neration paid after December 31, 2005. 
(B) SELF-EMPLOYED
INDIVIDUALS.—The 
amendments made by paragraphs (2) and 
(3)(B) apply to taxable years beginning after 
December 31, 2005. 
(c) MATCHING CONTRIBUTIONS.—
(1) IN GENERAL.—Part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 (re-
lating to credits against tax) is amended by adding 
at the end the following new subpart: 
‘‘Subpart H—Individual Security Account Credits
‘‘Sec. 54. Individual security account credit.
‘‘SEC. 54. INDIVIDUAL SECURITY ACCOUNT CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—Each part B eligible 
individual is entitled to a credit for the taxable year in 
an amount equal to the sum of—
‘‘(1) $150, 
‘‘(2) 50 percent of the designated wages of such 
individual for the taxable year, 
‘‘(3) 50 percent of the designated self-employ-
ment income of such individual for the taxable year, 
and 
‘‘(4) 50 percent of the designated earned in-
come credit. 
‘‘(b) LIMITATIONS.—
‘‘(1) AMOUNT.—The amount determined under 
paragraphs (2) and (3) of subsection (a) with re-
spect to such individual for any taxable year may 
not exceed the excess (if any) of—
‘‘(A) $600, over 
‘‘(B) the sum of the amounts received by 
the Secretary on behalf of such individual under 
subparagraphs 
(A) 
and 
(B) 
of 
section 
3101(a)(2) and subparagraphs (A) and (B) of 
1401(a)(2) for the taxable year. 
‘‘(2) FAILURE TO MAKE VOLUNTARY CONTRIBU-
TIONS.—In the case of a part B eligible individual 
with respect to whom the amount of wages des-
ignated under section 3101(a)(2)(C) plus the 
amount self-employment income designated under 
section 1401(a)(2)(C) for the taxable year is zero, 
the credit to which such individual is entitled under 
this section shall be equal to zero. 
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) PART B ELIGIBLE INDIVIDUAL.—The term 
‘part B eligible individual’ means, for any calendar 
year, an individual who is an eligible individual (as 
defined in section 251(a)(2) of the Social Security 
Act) for such calendar year. 
‘‘(2) DESIGNATED
WAGES.—The term ‘des-
ignated wages’ means with respect to any taxable 
year 
the 
amount 
designated 
under 
section 
3101(a)(2)(C). 
‘‘(3) 
DESIGNATED
SELF-EMPLOYMENT
IN-
COME.—The term ‘designated self-employment in-
come’ means with respect to any taxable year the 
amount designated under section 1401(a)(2)(C) for 
such taxable year. 
‘‘(4) DESIGNATED EARNED INCOME CREDIT.—
The term ‘designated earned income credit’ means 
the amount of the credit allowed under section 32 
for the taxable year that is designated by the part
‘‘(2) CREDIT USED ONLY FOR INDIVIDUAL SE-
CURITY ACCOUNT.—For purposes of this title, the 
amount designated under paragraph (1) with respect 
to any part B individual—
‘‘(A) shall not be treated as a credit al-
lowed under this section, but 
‘‘(B) shall be treated as an overpayment of 
tax under section 6401(b)(3) which may, in ac-
cordance with section 6402(l), only be trans-
ferred to an individual security account estab-
lished under part B of title II of the Social Se-
curity Act with respect to such individual.’’. 
(3) CONTRIBUTION OF CREDITED AMOUNTS TO 
INDIVIDUAL SECURITY ACCOUNT.—
(A) CREDITED
AMOUNTS
TREATED
AS 
OVERPAYMENT OF TAX.—Subsection (b) of sec-
tion 6401 (relating to excessive credits) is 
amended by adding at the end the following 
new paragraph: 
‘‘(3) SPECIAL RULE FOR CREDIT UNDER SEC-
TIONS 32 AND 54.—Subject to the provisions of sec-
tion 6402(l), the following sum shall be considered 
an overpayment—
‘‘(A) SECTION 54 CREDIT.—The amount of 
any credit allowed under section 54 for any tax-
able year, plus 
‘‘(B) SECTION 32 DESIGNATED EARNED IN-
COME CREDIT CONTRIBUTION.—The amount of 
the earned income credit designated as a con-
tribution to an individual security account 
under section 32(n) for the taxable year.’’. 
(B) TRANSFER OF CREDIT AMOUNT TO IN-
DIVIDUAL SECURITY ACCOUNT.—Section 6402 
of such Code (relating to authority to make 
credits or refunds) is amended by adding at the 
end the following new subsection: 
‘‘(l) OVERPAYMENTS ATTRIBUTABLE TO INDIVIDUAL 
SECURITY ACCOUNT CREDIT.—In the case of any over-
payment described in section 6401(b)(3) with respect to 
any individual, the Secretary shall transfer for crediting 
by the Commissioner of Social Security to the individual 
security account of an such individual, an amount equal 
to the amount of such overpayment.’’. 
(4) NOTICE TO EITC RECIPIENTS OF MATCHING 
CONTRIBUTIONS
TO
INDIVIDUAL
SECURITY
AC-
COUNTS.—In connection with information and tax 
forms relating to the credit allowed under section 32 
of the Internal Revenue Code of 1986, the Secretary
of the Treasury shall provide notice of the avail-
ability of matching contributions pursuant to section 
54 of such Code (as added by subsection (a) of this 
section) to individual security accounts under part B 
of title II of the Social Security Act. 
(5) CONFORMING AMENDMENTS.—
(A) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting before the 
period at the end ‘‘, or enacted by the Bipar-
tisan Retirement Security Act of 2004’’. 
(B) The table of subparts for part IV of 
subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by adding at the 
end the following new item:
‘‘SUBPART H. INDIVIDUAL SECURITY ACCOUNT CREDITS.’’.
(6) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to refunds payable 
after December 31, 2005. 
SEC. 3. MINIMUM SOCIAL SECURITY BENEFIT. 
Section 215 of the Social Security Act (42 U.S.C. 
415) is amended by adding at the end the following: 
‘‘(j) MINIMUM MONTHLY INSURANCE BENEFIT.—(1) 
Notwithstanding the preceding provisions of this section—
‘‘(A) the primary insurance amount of a quali-
fied individual shall be equal to the greater of—
‘‘(i) the primary insurance amount deter-
mined under this section (without regard to this 
subsection), or 
‘‘(ii) 1⁄12 of the applicable percentage of 
the applicable amount, and 
rounded, if not a multiple of $0.10, to the next lower 
multiple of $0.10, and thereafter increased as pro-
vided in subsection (i), and 
‘‘(B) any recomputation of the primary insur-
ance amount of a qualified individual shall not result 
in a primary insurance amount less than the pri-
mary insurance amount as in effect immediately 
prior to such recomputation. 
‘‘(2) For purposes of this subsection—
‘‘(A) The term ‘qualified individual’ means an 
individual—
‘‘(i) who initially becomes eligible for old-
age or disability insurance benefits, or dies (be-
fore becoming eligible for such benefits) for a 
month beginning after December 31, 2009, and 
‘‘(ii) who, in the case of any such indi-
vidual other than an individual eligible for old-
age insurance benefits, has quarters of coverage 
greater in number than the number of such in-
dividual’s elapsed years (as defined in sub-
section (a)(1)(C)(ii)). 
‘‘(B) The term ‘applicable amount’ means, in 
connection with an individual, $8,628, adjusted an-
nually for years after 2002—
‘‘(i) by the CPI increase percentage deter-
mined under section 215(i) for 2003 through 
the earlier of—
‘‘(I) the year prior to the year of the 
individual’s initial eligibility, or 
‘‘(II) 2012; and 
‘‘(ii) by the wage increase percentage de-
termined under such section for 2013 through 
the second year prior to the year of such indi-
vidual’s initial eligibility. 
‘‘(C)(i) In the case of a qualified individual de-
scribed in subparagraph (A)(i), the term ‘applicable 
percentage’ means the sum of—
‘‘(I) the product derived by multiplying 2.0 
percent by the number of such individual’s 
quarters of coverage, to the extent that the 
number of such quarters of coverage does not 
exceed 80, and 
‘‘(II) the product derived by multiplying 
0.5 percent by the number of such individual’s
quarters of coverage, to the extent that the 
number of such quarters of coverage is in ex-
cess of 80 but does not exceed 120. 
‘‘(ii) In the case of a qualified individual de-
scribed in subparagraph (A)(ii), the term ‘applicable 
percentage’ means the sum of—
‘‘(I) the product derived by multiplying the 
higher pro-rated percentage increment by the 
number of such individual’s quarters of cov-
erage, to the extent that the number of such 
quarters of coverage exceeds the number of 
such individual’s elapsed years (as defined in 
subsection (a)(10(C)(ii)) but does not exceed 
twice the number of such elapsed years, and 
‘‘(II) the product derived by multiplying 
the lower pro-rated percentage increment by the 
number of such individual’s quarters of cov-
erage, to the extent that the number of such 
quarters of coverage exceeds twice the number 
of such elapsed years but does not exceed 4 
times the number of such elapsed years. 
‘‘(iii) For purposes of clause (ii)—
‘‘(I) the higher pro-rated percentage incre-
ment, in connection with the qualified indi-
vidual, is the quotient obtained by dividing 80
percent by the number of the individual’s 
elapsed years, and 
‘‘(II) the lower pro-rated percentage incre-
ment, in connection with the qualified indi-
vidual, is the quotient obtained by dividing 40 
percent by twice the number of the individual’s 
elapsed years, 
each of which is rounded, if a multiple of 0.05 per-
cent and not of 0.10 percent, to the next higher mul-
tiple of 0.10 percent, and in any other case to the 
next higher multiple of 0.10 percent. 
‘‘(3) In the case of a qualified individual who becomes 
eligible for old-age or disability insurance benefits, or who 
dies (before becoming eligible to such benefits) in a year 
prior to 2013, in lieu of the amount otherwise determined 
under paragraph (a)(A)(ii), the amount provided under 
paragraph (1)(A)(ii) shall be deemed to be equal to the 
the product derived by multiplying such amount otherwise 
determined by the percentage set forth in the following 
table in connection with such year, rounded, if not a mul-
tiple of $0.10, to the next lower multiple of $0.10.
The applicable 
‘‘If the year is: 
percentage is: 
2009 ...................................................................................................
2010 ...................................................................................................
2011 ...................................................................................................
2012 ...................................................................................................
80.’’.
SEC. 4. REDUCTION IN THE AMOUNT OF CERTAIN TRANS-
FERS TO MEDICARE TRUST FUND. 
Subparagraph (A) of section 121(e)(1) of the Social 
Security Amendments of 1983 (42 U.S.C. 401 note), as 
amended by section 13215(c)(1) of the Omnibus Budget 
Reconciliation Act of 1993, is amended—
(1) in clause (ii), by striking ‘‘the amounts’’ 
and inserting ‘‘the applicable percentage of the 
amounts’’; and 
(2) by adding at the end the following: ‘‘For 
purposes of clause (ii), the applicable percentage for 
a year is equal to 100 percent, reduced (but not 
below zero) by 10 percentage points for each year 
after 2010.’’. 
SEC. 
5. 
REVISED 
FORMULA 
FOR 
AVERAGE 
INDEXED 
MONTHLY EARNINGS. 
(a) IN GENERAL.—So much of subsection (b) of sec-
tion 215 of the Social Security Act (42 U.S.C. 415) as 
precedes paragraph (3) is amended to read as follows: 
‘‘Average Indexed Monthly Earnings; Average Monthly 
Wage 
‘‘(b)(1)(A) In the case of an individual who is entitled 
to old-age insurance benefits (except as provided in para-
graph (2)(C)), or who has died (before becoming eligible 
for such benefits or disability insurance benefits), such in-
dividual’s average indexed monthly earnings shall be equal 
to the quotient obtained by dividing—
‘‘(i) the total (after adjustment under para-
graph (3)) of his wages paid in and self-employment 
income credited to his computation base years (de-
termined under subparagraph (C)(i)), by 
‘‘(ii) the product derived by multiplying—
‘‘(I) the number of such individual’s 
elapsed years (determined under subparagraph 
(C)(ii)), by 
‘‘(II) 12. 
‘‘(B)(i) For purposes of clause (i) of subparagraph 
(A), in the case of an individual who becomes eligible for 
old-age insurance benefits, or dies (before becoming eligi-
ble for such benefits or disability insurance benefits), in 
any calendar year after 2004 and before 2013, if the num-
ber of such individual’s computation base years exceed in 
number the maximum number for such calendar year, 
those computation base years referred to in such clause 
shall consist only of those computation base years, equal 
in number to such maximum number, for which the total 
of such individual’s wages and self-employment income, 
after adjustment under paragraph (3), is the largest. For 
purposes of this clause, the maximum number for a cal-
endar year is the maximum number set forth in connection 
with such calendar year in the following table:
The maximum number 
‘‘If the calendar year is: 
of years is: 
2005 or 2006 .....................................................................................
2007 or 2008 .....................................................................................
2009 or 2010 .....................................................................................
2011 or 2012 .....................................................................................
43.
‘‘(ii) For purposes of subclause (I) of subparagraph 
(A)(ii), in the case of an individual who becomes eligible 
for old-age insurance benefits, or dies (before becoming 
eligible for such benefits or disability insurance benefits), 
in any calendar year after 2004, if the number of such 
individual’s elapsed years exceed in number the maximum 
number for such calendar year, the number of elapsed 
years referred to in such subclause shall be deemed equal 
to such maximum number. For purposes of this clause, 
the maximum number for a calendar year is the maximum 
number set forth in connection with such calendar year 
in the following table:
The maximum number 
‘‘If the calendar year is: 
of years is: 
2005 or 2006 .....................................................................................
2007 or 2008 .....................................................................................
2009 or 2010 .....................................................................................
2011 or 2012 .....................................................................................
after 2012 ..........................................................................................
40.
‘‘(iii) In any case in which—
‘‘(I) an individual described in clause (ii) is 
married at the time the individual becomes eligible 
for old-age insurance benefits or dies (before becom-
ing eligible for such benefits), and
‘‘(II) the total of the wages paid in and self-em-
ployment income credited to the individual’s com-
putation base years under subparagraph (A)(i) is 
less that the total of the wages paid in and self-em-
ployment income credited to the computation base 
years of the individual’s spouse under subparagraph 
(A)(i), 
then the maximum number of such individual’s elapsed 
years determined under clause (ii) shall be deemed to be 
35. 
‘‘(C) For purposes of this subsection with respect to 
any individual—
‘‘(i) the term ‘contribution base year’ means the 
calendar years after 1950 and before—
‘‘(I) in the case of an individual entitled to 
old-age insurance benefits or disability insur-
ance benefits, the year in which occurred 
(whether by reason of section 202(j)(1) or oth-
erwise) the first month of that entitlement, or 
‘‘(II) in the case of an individual who has 
died (without having become entitled to old-age 
insurance benefits), the year succeeding the 
year of his death, 
except that such term excludes any calendar year en-
tirely included in a period of disability, and
‘‘(ii) the term ‘elapsed year’ means (except as 
otherwise provided by section 104(j)(2) of the Social 
Security Amendments of 1972) a calendar year—
‘‘(I) after 1950 (or, if later, the year in 
which the individual attained age 21), and 
‘‘(II) before the year in which the indi-
vidual died, or, if it occurred earlier (but after 
1960), the year in which he attained age 62; 
except that such term excludes any calendar year 
any part of which is included in a period of dis-
ability. 
‘‘(2)(A) In the case of an individual who is entitled 
to disability insurance benefits, such individual’s average 
indexed monthly earnings shall be equal to the quotient 
obtained by dividing—
‘‘(i) the total (after adjustment under para-
graph (3)) of his wages paid in and self-employment 
income credited to his elapsed years (determined 
under paragraph (1)(C)(ii)) prior to his current pe-
riod of disability, equal in number to the reduced 
number determined under subparagraph (B), for 
which the total of such individual’s wages and self-
employment income, after adjustment under para-
graph (3), is the largest, by 
‘‘(ii) the product derived by multiplying—
‘‘(I) the number of the individual’s elapsed 
years, by 
‘‘(II) 12. 
‘‘(B) The reduced number of an individual’s elapsed 
years, determined under this subparagraph for purposes 
of subparagraph (A)(i), is the number of such elapsed 
years, reduced by the number of years equal to one-fifth 
of such number of elapsed years (disregarding any result-
ing fractional part of a year), but not by more than 5 
years. 
‘‘(C)(i) This paragraph, once applicable with respect 
to any individual, shall continue to apply for purposes of 
determining such individual’s primary insurance amount 
for purposes of any subsequent eligibility for disability or 
old-age insurance benefits, unless, prior to the month in 
which such eligibility begins, there occurs a period of at 
least 12 consecutive months for which he was not entitled 
to a disability or an old-age insurance benefit. 
‘‘(ii) If an individual to which this paragraph applies 
is living with a child (of such individual or his or her 
spouse) under the age of 3 in any calendar year which 
is included in such individual’s elapsed years, but which 
is not disregarded pursuant to subparagraphs (A)(i) and 
(B) by reason of the reduction in the number of such indi-
vidual’s elapsed years under subparagraph (B), the num-
ber by which the number of such elapsed years is reduced 
under subparagraph (B) shall be increased by one (up to 
a combined total not exceeding 3) for each such calendar 
year, except that—
‘‘(I) no calendar year shall be disregarded by 
reason of this clause (in determining elapsed years 
to be taken into account under subparagraph (A)(i)) 
unless the individual was living with such child sub-
stantially throughout the period in which the child 
was alive and under the age of 3 in such year and 
the individual had no earnings as described in sec-
tion 203(f)(5) in such year, 
‘‘(II) the particular calendar years to be dis-
regarded under this clause (in determining such 
elapsed years) shall be those years (not otherwise 
disregarded under subparagraph (B)) which, before 
the application of section 215(f), meet the conditions 
of subclause (I), and 
‘‘(III) this clause shall apply only to the extent 
that its application would not result in a lower pri-
mary insurance amount. 
‘‘(D) The reduction in the number of elapsed years 
taken into account under subparagraph (A)(i) resulting 
from the application of subparagraphs (B) and (C) shall
not in any case reduce the number of elapsed years taken 
into account under subparagraph (A)(i) to less than 2.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
215(b)(3)(A) of such Act (42 U.S.C. 415(b)(3)(A)) is 
amended by striking ‘‘computation base years for purposes 
of the selection therefrom of benefit computation years 
under paragraph (2)’’ and inserting ‘‘for purposes of para-
graphs (1)(B)(i) and (2)(A)(i)’’. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to individuals ini-
tially becoming eligible for old-age or disability insurance 
benefits, or dying (before becoming eligible for such bene-
fits), in any calendar year after 2008. For purposes of 
this subsection, and individual shall be deemed eligible for 
a benefit for a month if, upon filing application therefor 
in such month, such individual would be entitled to such 
benefit for such month. 
SEC. 6. ACTUARIAL ADJUSTMENT FOR RETIREMENT. 
(a) EARLY RETIREMENT.—
(1) IN GENERAL.—Section 202(q) of the Social 
Security Act (42 U.S.C. 402(q)) is amended—
(A) in paragraph (1)(A), by striking ‘‘5⁄9’’ 
and inserting ‘‘the applicable old-age benefit 
fraction 
(determined 
under 
paragraph 
(12)(A))’’, and by striking ‘‘25⁄36’’ and inserting
‘‘the applicable spousal benefit fraction (deter-
mined under paragraph (12)(B))’’; and 
(B) by adding at the end the following: 
‘‘(12) For purposes of paragraph (1)(A)—
‘‘(A) the ‘applicable old-age benefit fraction’ for 
an individual who attains the age of 62 in—
‘‘(i) any year before 2004, is 5⁄9; 
‘‘(ii) 2004, is 7⁄12; 
‘‘(iii) 2005, is 11⁄18; 
‘‘(iv) 2006, is 23⁄36; 
‘‘(v) 2007, is 2⁄3; and 
‘‘(vi) 2008 or any succeeding year, is 25⁄36; 
and 
‘‘(B) the ‘applicable spousal benefit fraction’ for 
an individual who becomes eligible for wife’s or hus-
band’s insurance benefits in—
‘‘(i) any year before 2004, is 25⁄36; 
‘‘(ii) 2004, is 13⁄18; 
‘‘(iii) 2005, is 27⁄36; 
‘‘(iv) 2006, is 7⁄9; 
‘‘(v) 2007, is 29⁄36; and 
‘‘(vi) 2008 or any succeeding year, is 5⁄6.’’. 
(2) MONTHS BEYOND FIRST 36 MONTHS.—Sec-
tion 202(q) of such Act (42 U.S.C. 402(q)(9)) (as 
amended by paragraph (1)) is amended—
(A) in paragraph (9)(A), by striking ‘‘five-
twelfths’’ and inserting ‘‘the applicable fraction 
(determined under paragraph (13))’’; and 
(B) by adding at the end the following: 
‘‘(13) For purposes of paragraph (9)(A), the ‘applica-
ble fraction’ for an individual who becomes eligible for old-
age, wife’s, or husband’s insurance benefits in—
‘‘(A) any year before 2004, is 5⁄12; 
‘‘(B) 2004, is 16⁄36; 
‘‘(C) 2005, is 16⁄36; 
‘‘(D) 2006, is 17⁄36; 
‘‘(E) 2007, is 17⁄36; and 
‘‘(F) 2008 or any succeeding year, is 1⁄2.’’. 
(3) ELIGIBILITY.—Section 202(q) of such Act 
(as amended by the preceding provisions of this sub-
section) is amended further by adding at the end the 
following new paragraph: 
‘‘(14) For purposes of this subsection, an individual 
shall be deemed eligible for a benefit for a month if, upon 
filing application therefor in such month, such individual 
would be entitled to such benefit for such month.’’. 
(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to individuals who, in 
connection with old-age, wife’s, and husband’s insur-
ance benefits under title II of the Social Security
Act, become eligible for such benefits (within the 
meaning of section 202(q)(14) of such Act (as 
amended by this subsection) in years after 2003. 
(b) DELAYED RETIREMENT.—Section 202(w)(6) of 
the Social Security Act (42 U.S.C. 402(w)(6)) is amend-
ed—
(1) in subparagraph (C), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (D), by striking ‘‘2004.’’ 
and inserting ‘‘2004 and before 2007;’’; and 
(3) by adding at the end the following: 
‘‘(E) 17⁄24 of 1 percent in the case of an indi-
vidual who attains the age of 62 in a calendar year 
after 2006 and before 2009; 
‘‘(F) 3⁄4 of 1 percent in the case of an indi-
vidual who attains the age of 62 in a calendar year 
after 2008 and before 2011; 
‘‘(G) 19⁄24 of 1 percent in the case of an indi-
vidual who attains the age of 62 in a calendar year 
after 2010 and before 2013; and 
‘‘(H) 5⁄6 of 1 percent in the case of an indi-
vidual who attains the age of 62 in a calendar year 
after 2012.’’.
SEC. 7. CPI OVERSTATEMENT. 
(a) ANNUAL DECLARATIONS OF CPI OVERSTATE-
MENT.—
(1) IN GENERAL.—Whenever the Commissioner 
of the Bureau of Labor Statistics publishes the Con-
sumer Price Index for All Urban Consumers for any 
month ending after the date of the enactment of this 
Act, such Commissioner shall also publish the CPI 
overstatement for such month. Not later than No-
vember 1, 2004, such Commissioner shall also pub-
lish the CPI overstatement for each month prior to 
the month in which this Act is enacted. 
(2) DETERMINATION
OF
CPI 
OVERSTATE-
MENT.—For purposes of paragraph (1), the CPI 
overstatement for a month is the excess (not less 
than zero) of—
(A) the Consumer Price Index for All 
Urban Consumers for such month, over 
(B) the Chained Consumer Price Index for 
All Urban Consumers published by the Bureau 
of Labor Statistics for such month (or the most 
recent prior month for which it was published, 
based on availability of necessary data). 
(b) MODIFICATIONS TO COST-OF-LIVING INDEXING 
OF BENEFITS.—
(1) IN GENERAL.—Section 215(i)(1)(G) of the 
Social Security Act (42 U.S.C. 415(i)(1)(G)) is 
amended to read as follows: 
‘‘(G) the Consumer Price Index for a base 
quarter, a cost-of-living computation quarter, or any 
other calendar quarter shall be the arithmetical 
mean of such index for the 3 months in such quar-
ter, except that, for purposes of this subparagraph, 
the Consumer Price Index for a month shall be 
deemed to be the excess of—
‘‘(i) the Consumer Price Index for All 
Urban Consumers published by the Bureau of 
Labor Statistics for such month, over 
‘‘(ii) the CPI overstatement published by 
the Bureau of Labor Statistics for such 
month.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply with respect to in-
creases under section 215(i) of the Social Security 
Act effective with the month of December of years 
after 2004. 
(c) CONSUMER PRICE INDEX ADJUSTMENTS APPLI-
CABLE
TO
THE
INTERNAL
REVENUE
CODE
PROVI-
SIONS.—
(1) IN
GENERAL.—Paragraph (5) of section 
1(f) of the Internal Revenue Code of 1986 (defining 
Consumer Price Index) is amended to read as fol-
lows: 
‘‘(5) CONSUMER PRICE INDEX.—For purposes 
of paragraph (4), the term ‘Consumer Price Index’ 
means the excess of—
‘‘(A) the last Consumer Price Index for All 
Urban Consumers published by the Bureau of 
Labor Statistics for any month, over 
‘‘(B) the CPI overstatement published by 
the Bureau of Labor Statistics for such 
month.’’. 
(2) LIMITATION ON INCREASES.—Subsection (f) 
of section 1 of such Code is amended by adding at 
the end the following new paragraph: 
‘‘(9) COMPUTATION OF BASE TO REFLECT LIMI-
TATION
ON
CPI.—The Secretary shall adjust the 
number taken into account under paragraph (3)(B) 
so that any increase which is not taken into account 
by reason of the CPI overstatement referred to in 
paragraph (5)(B) shall not be taken into account at 
any time so as to allow such increase for any pe-
riod.’’.
(d) CORRESPONDING AMENDMENTS TO OTHER PRO-
VISIONS UTILIZING THE CONSUMER PRICE INDEX.—
(1) IN GENERAL.—For purposes of determining 
the amount of any cost-of-living adjustment which 
takes effect for benefits payable after December 31, 
2004, with respect to any benefit described in para-
graph (4)—
(A) any increase in the Consumer Price 
Index effective for any month (determined with-
out regard to this subsection) shall be reduced 
(to not less than zero) by the CPI overstate-
ment (published by the Bureau of Labor Statis-
tics) for such month, and 
(B) the amount of the increase in such 
benefit shall be equal to the product of—
(i) the increase in the Consumer Price 
Index (as reduced under subparagraph 
(A)), and 
(ii) the average such benefit for the 
preceding calendar year under the program 
described in paragraph (5) which provides 
such benefit. 
(2) PARAGRAPH (1) TO APPLY ONLY TO COM-
PUTATION OF BENEFIT AMOUNTS.—Paragraph (1) 
shall apply only for purposes of determining the
amount of benefits and not for purposes of deter-
mining—
(A) whether a threshold increase in the 
Consumer Price Index has been met, or 
(B) increases in amounts under other pro-
visions of law not described in paragraph (5) 
which operate by reference to increases in such 
benefits. 
(3) DEFINITION.—For purposes of this sub-
section, the term ‘‘cost of living adjustment’’ means 
any adjustment in the amount of benefits described 
in paragraph (5) which is determined by reference to 
changes in the Consumer Price Index. 
(4) BENEFITS
TO
WHICH
SUBSECTION
AP-
PLIES.—For purposes of this subsection, the benefits 
described in this paragraph are—
(A) retired and retainer pay subject to ad-
justment under section 1401a of title 10, 
United States Code; 
(B) civil service retirement benefits under 
section 8340 of title 5, United States Code, for-
eign service retirement benefits under section 
826 of the Foreign Service Act of 1980, Central 
Intelligence Agency retirement benefits under 
part J of the Central Intelligence Agency Re-
tirement Act of 1964 for certain employees, and 
any other benefits under any similar provision 
under any retirement system for employees of 
the government of the United States; 
(C) Federal workers’ compensation under 
section 8146a of title 5, United States Code; 
(D) benefits under section 3(a), 4(a), or 
4(f) of the Railroad Retirement Act of 1974; 
and 
(E) benefits and expenditure limits under 
title XVIII or XIX of the Social Security Act. 
(5) BENEFIT.—For purposes of this section, 
the term ‘‘benefit’’ includes a payment. 
(e) 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.
The applicable percentage 
‘‘For a calendar year— 
for the year is— 
After 2004 and before 2006 .............................................................. 0.02
The applicable percentage 
‘‘For a calendar year— 
for the year is— 
After 2005 and before 2007 .............................................................. 0.04
After 2006 and before 2008 .............................................................. 0.10
After 2007 and before 2009 .............................................................. 0.12
After 2008 and before 2010 .............................................................. 0.13
After 2009 and before 2011 .............................................................. 0.20
After 2010 and before 2012 .............................................................. 0.24
After 2011 and before 2013 .............................................................. 0.29
After 2012 and before 2019 .............................................................. 0.33
After 2018 and before 2043 .............................................................. 0.39
After 2042 and before 2063 .............................................................. 0.47
After 2062 .......................................................................................... 0.57.’’.
SEC. 8. ADJUSTMENTS TO BEND POINTS IN DETERMINING 
PRIMARY INSURANCE AMOUNTS. 
(a) 
ADDITIONAL
BEND
POINT.—Section 
215(a)(1)(A) of the Social Security Act (42 U.S.C. 
415(a)(1)(A)) is amended to read as follows: 
‘‘(a)(1)(A)(i) Subject to clause (ii), the primary in-
surance amount of an individual shall (except as otherwise 
provided in this section) be equal to the sum of—
‘‘(I) 90 percent of the individual’s average in-
dexed monthly earnings (determined under sub-
section (b)) to the extent that such earnings do not 
exceed the amount established for purposes of this 
subclause by subparagraph (B), 
‘‘(II) 70 percent of the individual’s average in-
dexed monthly earnings to the extent that such 
earnings exceed the amount established for purposes 
of subclause (I) but do not exceed the amount estab-
lished for purposes of this subclause by subpara-
graph (B),
‘‘(III) 20 percent of the individual’s average in-
dexed monthly earnings to the extent that such 
earnings exceed the amount established for purposes 
of subclause (II) but do not exceed the amount es-
tablished for purposes of this subclause by subpara-
graph (B), and 
‘‘(IV) 10 percent of the individual’s average in-
dexed monthly earnings to the extent that such 
earnings exceed the amount established for purposes 
of this clause by subparagraph (B). 
‘‘(ii) In the case of individuals becoming eligible for 
old-age or disability insurance benefits, or dying (before 
becoming eligible for such benefits), in any calendar year 
after 2005 and before 2016—
‘‘(I) In lieu of the percentage specified in sub-
clause (II) of clause (i), the applicable percentage 
set forth in the following table in connection with 
such calendar year shall apply:
The applicable 
‘‘If the calendar year is: 
percentage is: 
2006 ...................................................................................................
35.8
2007 ...................................................................................................
39.6
2008 ...................................................................................................
43.4
2009 ...................................................................................................
47.2
2010 ...................................................................................................
51.0
2011 ...................................................................................................
54.8
2012 ...................................................................................................
58.6
2013 ...................................................................................................
62.4
2014 ...................................................................................................
66.2.
‘‘(II) In lieu of the percentage specified in sub-
clause (III) of clause (i), the applicable percentage
set forth in the following table in connection with 
such calendar year shall apply:
The applicable 
‘‘If the calendar year is: 
percentage is: 
2006 ...................................................................................................
30.8
2007 ...................................................................................................
29.6
2008 ...................................................................................................
28.4
2009 ...................................................................................................
27.2
2010 ...................................................................................................
26.0
2011 ...................................................................................................
24.8
2012 ...................................................................................................
23.6
2013 ...................................................................................................
22.4
2014 ...................................................................................................
21.2.
‘‘(III) In lieu of the percentage specified in sub-
clause (IV) of clause (i), the applicable percentage 
set forth in the following table in connection with 
such calendar year shall apply:
The applicable 
‘‘If the calendar year is: 
percentage is: 
2006 ................................................................................................... 14.5
2007 ................................................................................................... 14.0
2008 ................................................................................................... 13.5
2009 ................................................................................................... 12.5
2010 ................................................................................................... 12.0
2011 ................................................................................................... 11.5
2012 ................................................................................................... 11.0
2013 ................................................................................................... 10.5
2014 ................................................................................................... 21.2.’’.
(b) INITIAL LEVEL OF ADDITIONAL BEND POINT.—
Section 
215(a)(1)(B) 
of 
such 
Act 
(42 
U.S.C. 
415(a)(1)(B)) is amended—
(1) in clause (i), by inserting ‘‘(as then in ef-
fect)’’ after ‘‘subparagraph (A)’’, and by adding at 
the end the following new sentence: ‘‘For individuals 
who initially become eligible for old-age or disability 
insurance benefits, or who die (before becoming eli-
gible for such benefits) after 2005, such dollar
amounts shall be deemed to have been so established 
in 1979 for purposes of subclauses (I) and (III) of 
subparagraph (A)(i), respectively, as in effect with 
respect to such individuals.’’; 
(2) by redesignating clause (iii) as clause (iv); 
(3) by inserting after clause (ii) the following 
new clause: 
‘‘(iii) For individuals who initially become eligible for 
old-age or disability insurance benefits, or who die (before 
becoming eligible for such benefits), in any calendar year 
after 2005, the amount established for purposes of clause 
(ii) of subparagraph (A) for such calendar year after 2005 
shall be 183.8 percent of the amount established for pur-
poses of clause (i) for such calendar year.’’; and 
(4) in clause (iv) (as redesignated by paragraph 
(1)), by striking ‘‘clause (ii)’’ and inserting ‘‘clauses 
(ii) and (iii)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to individuals becom-
ing eligible for old-age insurance benefits or disability in-
surance benefits, or dying (before becoming eligible for 
such benefits), after 2005.
SEC. 9. ADJUSTMENT TO BENEFIT FORMULA FACTORS. 
Section 215(a)(1)(B) of the Social Security Act (42 
U.S.C. 415(a)(1)(B)) (as amended by section 8) is amend-
ed further—
(1) by redesignating clause (iv) as clause (vii); 
and 
(2) by inserting after clause (iii) the following: 
‘‘(iv) For an individual who initially becomes eligible 
for old-age insurance benefits, or who dies (before becom-
ing eligible for such benefits or disability insurance bene-
fits), in any calendar year after 2011, each of the amounts 
otherwise established for purposes of clauses (i), (ii), and 
(iii) of subparagraph (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—
‘‘(I) such amount (after applying this clause for 
earlier years of the factoring period), by 
‘‘(II) the designated factor for such year. 
‘‘(v) For purposes of clause (iii), the term ‘factoring 
period’ means, for an individual, the period beginning with 
2012 and ending with the earlier of—
‘‘(I) the year of the individual’s initial eligibility 
or death, or 
‘‘(II) 2060.
‘‘(vi) For purposes of clause (iii), the term ‘des-
ignated factor’ means—
‘‘(I) for a year prior to 2031, 0.975, except 
that, for any such year, such factor shall be 1.000 
with respect to amounts otherwise established for 
purposes of clause (i) of subparagraph (A) under 
this subparagraph, and 
‘‘(II) for a year after 2030, 0.985.’’. 
SEC. 10. MODIFICATION TO PIA FORMULA TO REFLECT 
CHANGES TO LIFE EXPECTANCY. 
(a) IN GENERAL.—Section 215(a)(1) of the Social 
Security Act (42 U.S.C. 415(a)(1)(B)) is amended by re-
designating subparagraph (C) and (D) as subparagraphs 
(D) and (E), respectively, and by inserting after subpara-
graph (B) the following new subparagraph: 
‘‘(C)(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 by the life expectancy ratio for such cal-
endar year. 
‘‘(ii) The Commissioner of Social Security, using gen-
erally accepted actuarial principles, shall determine and
publish in the Federal Register on or before November 1 
of each calendar year the life expectancy ratio for the fol-
lowing calendar year. 
‘‘(iii) For purposes of clause (ii), the life expectancy 
ratio for any calendar year is the ratio of—
‘‘(I) the period life expectancy of an individual 
attaining age 62 on January 1, 2008, to 
‘‘(II) the period life expectancy of an individual 
attaining age 62 on January 1 of the third calendar 
year preceding the calendar year in which the deter-
mination under clause (ii) is made.’’. 
(b) STUDY OF THE EFFECT OF INCREASES IN LIFE 
EXPECTANCY.—
(1) STUDY PLAN.—Not later than February 15, 
2005, 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, 2008—
(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, 2008, 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. 11. TREATMENT OF DISABLED BENEFICIARIES. 
Section 215(a) of the Social Security Act (42 U.S.C. 
415(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(8)(A) Notwithstanding the preceding provisions of 
this subsection, in the case of an individual who has or 
has had a period of disability and becomes entitled to old-
age insurance benefits under section 202(a) (or dies) in 
or after 2006, the primary insurance amount of such indi-
vidual shall be the sum of—
‘‘(i) the amount determined under subpara-
graph (B), and 
‘‘(ii) the product derived by multiplying—
‘‘(I) the excess of the amount determined 
under subparagraph (C) over the amount deter-
mined under subparagraph (B), by
‘‘(II) the adjustment factor for such indi-
vidual determined under subparagraph (D). 
‘‘(B) The amount determined under this subpara-
graph is the amount of such individual’s primary insur-
ance amount as determined under this section without re-
gard to this paragraph. 
‘‘(C) The amount determined under this subpara-
graph is the amount of such individual’s primary insur-
ance amount as determined under this section as in effect 
with respect to individuals becoming eligible for old-age 
or disability insurance benefits under section 202(a) in 
2004. 
‘‘(D) The adjustment factor determined under this 
subparagraph for any individual is the ratio (not greater 
than 1) of—
‘‘(i) the number of months, preceding the ear-
lier of such individual’s first month of entitlement to 
old-age insurance benefits under section 202(a) or 
the month of such individual’s death, which occurred 
during a period of disability of such individual, to 
‘‘(ii) 480.’’.
SEC. 12. MAINTENANCE OF BENEFIT AND CONTRIBUTION 
BASE. 
(a) IN GENERAL.—So much of section 230 of the So-
cial Security Act (42 U.S.C. 430) as precedes subsection 
(d) is amended to read as follows: 
‘‘MAINTENANCE OF BENEFIT AND CONTRIBUTION BASE 
‘‘SEC. 230. (a) Not later than November 1 of each 
calendar year (beginning with 2004), the Commissioner 
shall determine and publish in the Federal Register the 
contribution and benefit base determined under sub-
sections (b) and (c) which shall be effective with respect 
to remuneration paid after such calendar year and taxable 
years beginning after such year. 
‘‘(b) For purposes of this section, and for purposes 
of determining wages and self-employment income under 
sections 209, 211, 213, and 215 of this Act and sections 
54, 1402, 3121, 3122, 3125, 6413, and 6654 of the Inter-
nal Revenue Code of 1986—
‘‘(1) the ‘contribution and benefit base’ with re-
spect to remuneration paid (and taxable years begin-
ning)—
‘‘(A) in 2005 shall be $90,225, 
‘‘(B) in 2006 shall be $110,550, 
‘‘(C) in 2007 shall be $121,875, and 
‘‘(D) in 2008 shall be $133,200, and
‘‘(2) the ‘contribution and benefit base’ with re-
spect to remuneration paid (and taxable years begin-
ning) in any calendar year after 2008 shall be equal 
to the dollar amount equal to the lowest amount 
which, if applied under this title as the benefit and 
contribution base for the preceding year, would have 
caused the total untaxed covered remuneration for 
such year to constitute at least 13 percent of the 
total amount of wages paid, and self-employment in-
come derived, in such year by all individuals. 
Each contribution and benefit base determined under 
paragraph (2) shall (if not a multiple of $25) be rounded 
to the nearest multiple of $25. 
‘‘(c) For purposes of this section, the term ‘total 
untaxed covered remuneration’ for a calendar year means 
the total amount of wages paid to, and self-employment 
income derived by, all individuals in such calendar year, 
which was, with respect to each individual paid such wages 
and deriving such self-employment income, in excess of the 
contribution and benefit base for that calendar year.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to remuneration paid in (and tax-
able years beginning in) any calendar year after 2004.
(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 21st Century Retirement 
Security Act 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 
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 
llllll pursuant to section 709(a) of the So-
cial Security Act, as follows:llllllll’, the
first blank space being filled in with the appropriate 
date and the second blank space being filled in with 
the statutory adjustments contained in the rec-
ommendations; 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)’’. 
SEC. 15. 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 
paragraphs of this subsection) for the entitlement 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 ‘enti-
tlement month’ of a widow (or surviving divorced wife) 
means, in connection with her benefit under this sub-
section, the first month of her entitlement to such benefit.
‘‘(C) For purposes of subparagraph (A), the min-
imum benefit amount determined under this subparagraph 
for the entitlement month of the widow (or surviving di-
vorced wife) 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 entitlement 
month of the widow (or surviving divorced wife) is the sum 
of—
‘‘(I) the imputed old-age insurance benefit (de-
termined under clause (ii)) of the deceased indi-
vidual for her entitlement month (if any), and
‘‘(II) the imputed husband’s insurance benefit 
(determined under clause (iii)) of the deceased indi-
vidual for her entitlement month (if any). 
‘‘(ii) The amount of the imputed old-age insurance 
benefit of the deceased individual for the entitlement 
month of the widow (or surviving divorced wife) 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 through-
out the subsequent period ending with her entitle-
ment 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 her en-
titlement month, as if he had survived throughout 
the subsequent period ending with her entitlement 
month, and had applied for such benefit during the 
first month for which he would have been eligible for 
such benefit (assuming a primary insurance amount 
for the deceased individual determined under para-
graph (2)(B) of this subsection).
For purposes of determining the deceased individual’s im-
puted old-age insurance benefit under this clause, the de-
termination of whether the deceased individual was a fully-
insured individual (as defined in section 214(a)) shall be 
made as of the date of his death. In any case in which 
the deceased individual died before attaining age 62 and 
would not have attained age 62 before the end of the enti-
tlement month of the widow (or surviving divorced wife), 
the deceased individual’s imputed old-age insurance ben-
efit shall be deemed to be zero. 
‘‘(iii) The amount of the imputed husband’s insur-
ance benefit of the deceased individual for the entitlement 
month of the widow (or surviving divorced wife) is the 
amount of the husband’s insurance benefit under sub-
section (c) to which he would have been entitled for such 
month (assuming, for purposes of reduction under sub-
section (k)(3)(A), the entitlement to an old-age insurance 
benefit for such month, if any, as described in clause 
(ii))—
‘‘(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 through-
out the subsequent period ending with her entitle-
ment month, or
‘‘(I) the amount of the old-age or disability in-
surance benefit (if any) to which he would have been 
entitled for her entitlement month if he had survived 
throughout the period subsequent to his death and 
ending with such month, and 
‘‘(II) the amount of the husband’s insurance 
benefit (if any) to which he would have been entitled 
for her entitlement month based on her wages and 
self-employment income if he had survived through-
out the period subsequent to his death and ending 
with such month (assuming, for purposes of reduc-
tion under subsection (k)(3)(A), the entitlement to 
an old-age or disability insurance benefit for such 
month, if any, as described in subclause (I)). 
‘‘(ii) If the deceased individual otherwise would have 
been entitled (but for his death) to a disability insurance 
benefit under section 223 for the month in which he died, 
the amount determined under clause (i) shall be deter-
mined as if he had survived throughout the period com-
mencing with the month of his death and ending with the 
entitlement month of the widow (or surviving divorced 
wife) and he had remained entitled to disability insurance 
benefits throughout such period (or until becoming enti-
tled 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 her entitlement 
month to an old-age insurance benefit under sub-
section (a) or a disability insurance benefit under 
section 223, or otherwise would have been entitled 
(but for the deceased individual’s death) to a wife’s 
insurance benefit under subsection (b) for such 
month, the amount of her imputed survivor benefit 
for such month is the sum of—
‘‘(I) the amount of such old-age or dis-
ability insurance benefit (if any), and 
‘‘(II) the amount of such wife’s insurance 
benefit (if any), assuming, for purposes of re-
duction under subsection (k)(3)(A), the entitle-
ment to an old-age insurance or disability insur-
ance benefit for such month (if any), as de-
scribed in subclause (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 her entitlement month, the amount of her im-
puted survivor benefit is the sum of—
‘‘(I) the amount of the old-age insurance 
benefit under subsection (a) to which she would
be entitled for such month if she filed applica-
tion for such benefit during such month, and 
‘‘(II) the amount to which she otherwise 
would have been entitled (but for the deceased 
individual’s death) as a wife’s insurance benefit 
under subsection (b) for such month, based on 
the deceased individual’s wages and self-employ-
ment income, if she had filed application for 
such benefit during such month (assuming a 
primary insurance amount for the deceased in-
dividual determined under paragraph (2)(B) of 
this subsection and assuming, for purposes of 
reduction under subsection (k)(3)(A), the enti-
tlement to an old-age insurance benefit for such 
month, if any, as described in subclause (I)). 
In any case in which the widow (or surviving divorced 
wife) would not attain age 62 before the end of the her 
entitlement month, her imputed survivor benefit shall be 
deemed to be zero. 
‘‘(G) The increased benefit cap determined under this 
subparagraph for the entitlement month of the widow (or 
surviving divorced wife) is the amount which would be the 
amount of a theoretical individual’s old-age insurance ben-
efit under subsection (a) (reduced as provided in sub-
section (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—
‘‘(I) in any case in which the entitlement 
month of the widow (or surviving divorced wife) 
is the month of December, such month, or 
‘‘(II) in any other case, the latest month of 
December preceding such entitlement month, 
‘‘(ii) such first month of such theoretical indi-
vidual’s entitlement to such old-age insurance ben-
efit were the entitlement month of the widow (or 
surviving divorced spouse), and 
‘‘(iii) the month in which the theoretical indi-
vidual attained or would attain retirement age (as 
defined in section 216(l)) were the month in which 
the widow (or surviving divorced wife) 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 entitlement month of the 
widow (or surviving divorced wife) in which the deceased 
individual would have attained age 62 or she attains age 
62, the Commissioner shall recompute the amount of the 
benefit under this paragraph by substituting a reference 
to such later month for each reference in the preceding 
provisions of this paragraph to her entitlement month. 
‘‘(I)(i) Any reference in this paragraph to the widow’s 
insurance benefit (as determined under the preceding 
paragraphs of this subsection) shall be deemed a reference 
to such benefit, taking into account all applicable reduc-
tions and deductions under this title. 
‘‘(ii) Any reference in this paragraph to the imputed 
old-age insurance benefit or imputed husband’s insurance 
benefit described in subparagraph (D), the old-age insur-
ance benefit, disability insurance benefit, or husband’s in-
surance benefit described in subparagraph (E), or the old-
age insurance benefit, disability insurance benefit, or 
wife’s insurance benefit described in subparagraph (F) 
shall be deemed a reference to such benefit, taking into 
account applicable reductions under this section but dis-
regarding reductions or deductions otherwise applicable 
under this title.
‘‘(iii) A widow’s insurance benefit which has been in-
creased under this paragraph shall be subject to all reduc-
tions and deductions otherwise applicable to widow’s in-
surance benefits under this title, except that such benefit 
shall not be subject to any reduction otherwise applicable 
under subsection (q)(1).’’. 
(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 paragraphs of this subsection) for the entitlement 
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 ‘enti-
tlement month’ of a widower (or surviving divorced hus-
band) means, in connection with his benefit under this 
subsection, the first month of his entitlement to such ben-
efit.
‘‘(C) For purposes of subparagraph (A), the min-
imum benefit amount determined under this subparagraph 
for the entitlement month of the widower (or surviving di-
vorced husband) 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 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 
entitlement month of the widower (or surviving divorced 
husband) is the sum of—
‘‘(I) the imputed old-age insurance benefit (de-
termined under clause (ii)) of the deceased indi-
vidual for his entitlement month (if any), and
‘‘(II) the imputed wife’s insurance benefit (de-
termined under clause (iii)) of the deceased indi-
vidual for his entitlement month (if any). 
‘‘(ii) The amount of the imputed old-age insurance 
benefit of the deceased individual for the entitlement 
month of the widower (or surviving divorced husband) 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 through-
out the subsequent period ending with his entitle-
ment 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 his en-
titlement month, as if she had survived throughout 
the subsequent period ending with his entitlement 
month, and had applied for such benefit during the 
first month for which she would have been eligible 
for such benefit (assuming a primary insurance 
amount for the deceased individual determined 
under paragraph (2)(B) of this subsection).
For purposes of determining the deceased individual’s im-
puted old-age insurance benefit under this clause, the de-
termination of whether the deceased individual was a fully-
insured individual (as defined in section 214(a)) shall be 
made as of the date of her death. In any case in which 
the deceased individual died before attaining age 62 and 
would not have attained age 62 before the end of the enti-
tlement month of the widower (or surviving divorced hus-
band), the deceased individual’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 entitlement 
month of the widower (or surviving divorced husband) is 
the amount of the wife’s insurance benefit under sub-
section (b) to which she would have been entitled for such 
month (assuming, for purposes of reduction under sub-
section (k)(3)(A), the entitlement to an old-age insurance 
benefit for such month, if any, as described in clause 
(ii))—
‘‘(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 through-
out the subsequent period ending with his entitle-
ment 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 his en-
titlement month, as if she had survived throughout 
the subsequent period ending with his entitlement 
month and had applied for such benefit during the 
first month for which she would have been eligible 
for such benefit. 
In any case in which the deceased individual died before 
she attained age 62 and would not have attained age 62 
before the end of the entitlement month of the widower 
(or surviving divorced husband), the deceased individual’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 she other-
wise would have been entitled (but for her death) to an 
old-age insurance benefit under subsection (a) or a dis-
ability insurance benefit under section 223, or to a wife’s 
insurance benefit under subsection (b) based on the wages 
and self-employment income of the widower (or surviving 
divorced husband), the imputed deceased individual’s ben-
efit for the entitlement month of the widower (or surviving 
divorced husband) 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 his entitlement month if she had 
survived throughout the period subsequent to her 
death and ending with such month, and 
‘‘(II) the amount of the wife’s insurance benefit 
(if any) to which she would have been entitled for 
his entitlement month based on his wages and self-
employment income if she had survived throughout 
the period subsequent to her death and ending with 
such month (assuming, for purposes of reduction 
under subsection (k)(3)(A), the entitlement to an 
old-age or disability insurance benefit for such 
month, if any, as described in subclause (I)). 
‘‘(ii) If the deceased individual otherwise would have 
been entitled (but for her death) to a disability insurance 
benefit under section 223 for the month in which she died, 
the amount determined under clause (i) shall be deter-
mined as if she had survived throughout the period com-
mencing with the month of her death and ending with the 
entitlement month of the widower (or surviving divorced 
husband) and she had remained entitled to disability in-
surance benefits throughout such period (or until becom-
ing 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 his entitlement 
month to an old-age insurance benefit under sub-
section (a) or a disability insurance benefit under 
section 223, or otherwise would have been entitled 
(but for the deceased individual’s death) to a hus-
band’s insurance benefit under subsection (c) for 
such month, the amount of her imputed survivor 
benefit for such month is the sum of—
‘‘(I) the amount of such old-age or dis-
ability insurance benefit (if any), and 
‘‘(II) the amount of such husband’s insur-
ance benefit (if any), assuming, for purposes of 
reduction under subsection (k)(3)(A), the enti-
tlement to an old-age insurance or disability in-
surance benefit for such month (if any), as de-
scribed in subclause (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 his entitlement 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 he would
be entitled for such month if he filed applica-
tion for such benefit during such month, and 
‘‘(II) the amount to which he otherwise 
would have been entitled (but for the deceased 
individual’s death) as a husband’s insurance 
benefit under subsection (c) for such month, 
based on the deceased individual’s wages and 
self-employment income, if he had filed applica-
tion for such benefit during such month (as-
suming a primary insurance amount for the de-
ceased individual determined under paragraph 
(2)(B) of this subsection and assuming, for 
purposes 
of 
reduction 
under 
subsection 
(k)(3)(A), the 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 divorced 
husband) would not attain age 62 before the end of the 
his entitlement month, his imputed survivor benefit shall 
be deemed to be zero. 
‘‘(G) The increased benefit cap determined under this 
subparagraph for the entitlement month of the widower 
(or surviving divorced husband) is the amount which 
would be the amount of a theoretical individual’s old-age
insurance benefit under subsection (a) (reduced as pro-
vided 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—
‘‘(I) in any case in which the entitlement 
month of the widower (or surviving divorced 
husband) is the month of December, such 
month, or 
‘‘(II) in any other case, the latest month of 
December preceding such entitlement month, 
‘‘(ii) such first month of such theoretical indi-
vidual’s entitlement to such old-age insurance ben-
efit were the entitlement month of the widower (or 
surviving divorced husband), and 
‘‘(iii) the month in which the theoretical indi-
vidual attained or would attain retirement age (as 
defined in section 216(l)) were the month in which 
the widower (or surviving divorced husband) at-
tained or would attain retirement age (as so de-
fined). 
‘‘(H) If, in determining the amount of the benefit 
under this section pursuant to this paragraph, the im-
100
puted old-age insurance benefit or imputed wife’s insur-
ance 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 widower (or surviving divorced husband) was deemed 
to be zero pursuant to the last sentence of subparagraph 
(F), effective for any month after the entitlement month 
of the widower (or surviving divorced husband) in which 
the deceased individual would have attained age 62 or he 
attains age 62, the Commissioner shall recompute the 
amount of the benefit under this paragraph by sub-
stituting a reference to such later month for each ref-
erence in the preceding provisions of this paragraph to her 
entitlement month. 
‘‘(I)(i) Any reference in this paragraph to the wid-
ower’s insurance benefit (as determined under the pre-
ceding paragraphs of this subsection) shall be deemed a 
reference to such benefit, taking into account all applicable 
reductions and deductions under this title. 
‘‘(ii) Any reference in this paragraph to the imputed 
old-age insurance benefit or imputed wife’s insurance ben-
efit described in subparagraph (D), the old-age insurance 
benefit, disability insurance benefit, or wife’s insurance 
benefit described in subparagraph (E), or the old-age in-
surance benefit, disability insurance benefit, or husband’s
101
insurance benefit described in subparagraph (F) shall be 
deemed a reference to such benefit, taking into account 
applicable reductions under this section but disregarding 
reductions or deductions otherwise applicable under this 
title. 
‘‘(iii) A widower’s insurance benefit which has been 
increased under this paragraph shall be subject to all re-
ductions and deductions otherwise applicable to widower’s 
insurance benefits under this title, except that such benefit 
shall not be subject to any reduction otherwise applicable 
under subsection (q)(1).’’. 
(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-
102
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 
2005. 
SEC. 16. LIMITATION ON BENEFITS OF MARRIED COUPLE 
TO LEVEL OF MAXIMUM WORKER BENEFITS. 
(a) 
WIFE’S
INSURANCE
BENEFITS.—Section 
202(b)(2) of the Social Security Act (42 U.S.C. 402(b)(2)) 
is amended to read as follows: 
‘‘(2) Except as provided in subsection (q) and para-
graph (4) of this subsection, such wife’s insurance benefit 
for each month shall be equal to the excess (not less than 
zero) of—
‘‘(A) 150 percent of her husband’s primary in-
surance amount, over 
‘‘(B) the primary insurance amount for such 
month of a hypothetical individual who is entitled to 
old-age insurance insurance benefits for such month, 
who became entitled to such benefit upon attaining 
age 62 during the month in which her husband be-
103
came entitled to old-age insurance benefits, and to 
whom wages and self-employment income were cred-
ited in each of such hypothetical individual’s elapsed 
years 
(within 
the 
meaning 
of 
section 
215(b)(2)(B)(iii)) in an amount equal to the max-
imum amount includible under this title as wages 
and self-employment income for such year.’’. 
(b) HUSBAND’S
INSURANCE
BENEFITS.—Section 
202(c)(2) of such Act (42 U.S.C. 402(c)(2)) is amended 
to read as follows: 
‘‘(2) Except as provided in subsection (q) and para-
graph (4) of this subsection, such husband’s insurance 
benefit for each month shall be equal to the excess (not 
less than zero) of—
‘‘(A) 150 percent of his wife’s primary insur-
ance amount, over 
‘‘(B) the primary insurance amount for such 
month of a hypothetical individual who is entitled to 
old-age insurance insurance benefits for such month, 
who became entitled to such benefit upon attaining 
age 62 during the month in which his wife became 
entitled to old-age insurance benefits, and to whom 
wages and self-employment income were credited in 
each of such hypothetical individual’s elapsed years 
(within the meaning of section 215(b)(2)(B)(iii)) in
104
an amount equal to the maximum amount includible 
under this title as wages and self-employment in-
come for such year.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to benefits for months 
after November 2004.
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