< Back to H.R. 4824 (105th Congress, 1997–1998)

Text of the 21st Century Retirement Act

This bill was introduced on October 13, 1998, in a previous session of Congress, but was not enacted. The text of the bill below is as of Oct 13, 1998 (Introduced).

Source: GPO

HR 4824 IH

105th CONGRESS

2d Session

H. R. 4824

To amend title II of the Social Security Act to provide for individual security accounts funded by employee and employer social security payroll deductions, to extend the solvency of the old-age, survivors, and disability insurance program, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

October 13, 1998

Mr. KOLBE (for himself and Mr. STENHOLM) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


A BILL

To amend title II of the Social Security Act to provide for individual security accounts funded by employee and employer social security payroll deductions, to extend the solvency of the old-age, survivors, and disability insurance program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘21st Century Retirement Act’.

    (b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

      Sec. 1. Short title; table of contents.

      Sec. 2. Individual security accounts.

      Sec. 3. Minimum social security benefit.

      Sec. 4. Elimination of earnings test for individuals who have attained retirement age.

      Sec. 5. Reduction in the amount of certain transfers to Medicare Trust Fund.

      Sec. 6. Coverage of newly hired State and local employees.

      Sec. 7. Gradual increase in number of benefit computation years; use of all years in computation.

      Sec. 8. Actuarial adjustment for retirement.

      Sec. 9. Improvements in process for cost-of-living adjustments.

      Sec. 10. Phased reduction in spousal benefits other than survivor’s benefits to 33 percent of primary insurance amount.

      Sec. 11. Adjustment to upper 2 benefit formula factors.

      Sec. 12. Phased-in increase in social security retirement ages.

      Sec. 13. Mechanism for remedying unforeseen deterioration in social security solvency.

SEC. 2. INDIVIDUAL SECURITY ACCOUNTS.

    (a) ESTABLISHMENT AND MAINTENANCE OF INDIVIDUAL SECURITY ACCOUNTS- Title II of the Social Security Act (42 U.S.C. 401 et seq.) is amended--

      (1) by inserting before section 201 the following:

‘Part A--Insurance Benefits’;

      and

      (2) by adding at the end the following:

‘Part B--Individual Security Accounts

‘INDIVIDUAL SECURITY ACCOUNTS

    ‘SEC. 251. (a) ESTABLISHMENT-

      ‘(1) IN GENERAL- The Commissioner of Social Security, within 30 days of the receipt of the first contribution received pursuant to subsection (b) with respect to an eligible individual, shall establish in the name of such individual an individual security account. The individual security account shall be identified to the account holder by means of the account holder’s Social Security account number.

      ‘(2) DEFINITION OF ELIGIBLE INDIVIDUAL- In this part, the term ‘eligible individual’ means any individual born after December 31, 1944.

    ‘(b) CONTRIBUTIONS- The Secretary of the Treasury shall transfer from the Federal Old-Age and Survivors Insurance Trust Fund, for crediting by the Commissioner of Social Security to an individual security account of an eligible individual, an amount equal to the sum of any amount received by such Secretary on behalf of such individual under section 3101(a)(2) or 1401(a)(2) of the Internal Revenue Code of 1986.

    ‘(c) DESIGNATION OF INVESTMENT TYPE OF INDIVIDUAL SECURITY ACCOUNT-

      ‘(1) DESIGNATION- Each eligible individual who is employed or self-employed shall designate the investment type of individual security account to which the contributions described in subsection (b) on behalf of such individual are to be credited.

      ‘(2) FORM OF DESIGNATION- The designation described in paragraph (1) shall be made in such manner and at such intervals as the Commissioner of Social Security may prescribe in order to ensure ease of administration and reductions in burdens on employers.

      ‘(3) SPECIAL RULE FOR 2000- Not later than January 1, 2000, any eligible individual that is employed or self-employed as of such date shall execute the designation required under paragraph (1).

      ‘(4) DESIGNATION IN ABSENCE OF DESIGNATION BY ELIGIBLE INDIVIDUAL- In any case in which no designation of the individual security account is made, the Commissioner of Social Security shall make the designation of the individual security account in accordance with regulations that take into account the competing objectives of maximizing returns on investments and minimizing the risk involved with such investments.

‘DEFINITION OF INDIVIDUAL SECURITY ACCOUNT; TREATMENT OF ACCOUNTS

    ‘SEC. 252. (a) INDIVIDUAL SECURITY ACCOUNT- In this part, the term ‘individual security account’ means any individual security account in the Individual Security Fund (established under section 254) which is administered by the Individual Security Fund Board.

    ‘(b) TREATMENT OF ACCOUNT- Except as otherwise provided in this part, any individual security account described in paragraph (1)(A) shall be treated in the same manner as an individual account in the Thrift Savings Fund under subchapter III of chapter 84 of title 5, United States Code.

‘INDIVIDUAL SECURITY ACCOUNT DISTRIBUTIONS

    ‘SEC. 253. (a) DATE OF INITIAL DISTRIBUTION- Except as provided in subsection (c), distributions may only be made from an individual security account of an eligible individual on and after the earliest of--

      ‘(1) the date the eligible individual attains normal retirement age, as determined under section 216 (or early retirement age (as so determined) if elected by such individual), or

      ‘(2) the date on which funds in the eligible individual’s individual security account are sufficient to provide a monthly payment over the life expectancy of the eligible individual (determined under reasonable actuarial assumptions) which, when added to the eligible individual’s monthly benefit under part A (if any), is at least equal to an amount equal to 1/12 of the poverty line (as defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2) and determined on such date for a family of the size involved) and adjusted annually thereafter by the adjustment determined under section 215(i).

    ‘(b) FORMS OF DISTRIBUTION-

      ‘(1) REQUIRED MONTHLY PAYMENTS- Except as provided in paragraph (2), beginning with the date determined under subsection (a), the balance in an individual security account available to provide monthly payments not in excess of the amount described in subsection (a)(2) shall be paid, as elected by the account holder (in such form and manner as shall be prescribed in regulations of the Individual Security Fund Board), by means of the purchase of annuities or equal monthly payments over the life expectancy of the eligible individual (determined under reasonable actuarial assumptions) in accordance with requirements (which shall be provided in regulations of the Board) similar to the requirements applicable to payments of benefits under subchapter III of chapter 84 of title 5, United States Code, and providing for indexing for inflation.

      ‘(2) PAYMENT OF EXCESS FUNDS- To the extent funds remain in an eligible individual’s individual security account after the application of paragraph (1), such funds shall be payable to the eligible individual in such manner and in such amounts as determined by the eligible individual, subject to the provisions of subchapter III of chapter 84 of title 5, United States Code.

    ‘(c) DISTRIBUTION IN THE EVENT OF DEATH BEFORE THE DATE OF INITIAL DISTRIBUTION- If the eligible individual dies before the date determined under subsection (a), the balance in such individual’s individual security account shall be distributed in a lump sum, under rules established by the Individual Security Fund Board, to the employee’s heirs.

‘INDIVIDUAL SECURITY FUND

    ‘SEC. 254. (a) ESTABLISHMENT- There is established and maintained in the Treasury of the United States an Individual Security Fund in the same manner as the Thrift Savings Fund under sections 8437, 8438, and 8439 (but not section 8440) of title 5, United States Code.

    ‘(b) INDIVIDUAL SECURITY FUND BOARD-

      ‘(1) IN GENERAL- There is established and operated in the Social Security Administration an Individual Security Fund Board in the same manner as the Federal Retirement Thrift Investment Board under subchapter VII of chapter 84 of title 5, United States Code.

      ‘(2) SPECIFIC INVESTMENT AND REPORTING DUTIES-

        ‘(A) IN GENERAL- The Individual Security Fund Board shall manage and report on the activities of the Individual Security Fund and the individual security accounts of such Fund in the same manner as the Federal Retirement Thrift Investment Board manages and reports on the Thrift Savings Fund and the individual accounts of such Fund under subchapter VII of chapter 84 of title 5, United States Code.

        ‘(B) STUDY AND REPORT ON INCREASED INVESTMENT OPTIONS-

          ‘(i) STUDY- The Individual Security Fund Board shall conduct a study regarding ways to increase an eligible individual’s investment options with respect to such individual’s individual security account and with respect to rollovers or distributions from such account.

          ‘(ii) REPORT- Not later than 2 years after the date of enactment of the Strengthening Social Security Act of 1998, the Individual Security Fund Board shall submit a report to the President and Congress that contains a detailed statement of the results of the study conducted pursuant to clause (i), together with the Board’s recommendations for such legislative actions as the Board considers appropriate.

‘BUDGETARY TREATMENT OF INDIVIDUAL SECURITY FUND AND ACCOUNTS

    ‘SEC. 255. The receipts and disbursements of the Individual Security Fund and any accounts within such fund shall not be included in the totals of the budget of the

United States Government as submitted by the President or of the congressional budget and shall be exempt from any general budget limitation imposed by statute on expenditures and net lending (budget outlays) of the United States Government.’.

    (b) MODIFICATION OF FICA RATES-

      (1) EMPLOYEES- Section 3101(a) of the Internal Revenue Code of 1986 (relating to tax on employees) is amended to read as follows:

    ‘(a) OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE-

      ‘(1) IN GENERAL-

        ‘(A) INDIVIDUALS COVERED UNDER PART A OF TITLE II OF THE SOCIAL SECURITY ACT- In addition to other taxes, there is hereby imposed on the income of every individual who is not a part B eligible individual a tax equal to

6.2 percent of the wages (as defined in section 3121(a)) received by him with respect to employment (as defined in section 3121(b)).

        ‘(B) INDIVIDUALS COVERED UNDER PART B OF TITLE II OF THE SOCIAL SECURITY ACT- In addition to other taxes, there is hereby imposed on the income of every part B eligible individual a tax equal to 4.2 percent of the wages (as defined in section 3121(a)) received by such individual with respect to employment (as defined in section 3121(b)).

      ‘(2) CONTRIBUTION OF OASDI TAX REDUCTION TO INDIVIDUAL SECURITY ACCOUNTS-

        ‘(A) IN GENERAL- In addition to other taxes, there is hereby imposed on the income of every part B eligible individual an individual security account contribution equal to the sum of--

          ‘(i) 2 percent of the wages (as so defined) received by such individual with respect to employment (as so defined), plus

          ‘(ii) so much of such wages (not to exceed $2,000) as designated by the individual in the same manner as described in section 251(c) of the Social Security Act.

        ‘(B) INFLATION ADJUSTMENT-

          ‘(i) IN GENERAL- In the case of any calendar year beginning after 2000, the dollar amount in subparagraph (A)(ii) shall be increased by an amount equal to--

            ‘(I) such dollar amount, multiplied by

            ‘(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting ‘calendar year 1999’ for ‘calendar year 1992’ in subparagraph (B) thereof.

          ‘(ii) ROUNDING- If any dollar amount after being increased under clause (i) is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10.’.

      (2) SELF-EMPLOYED- Section 1401(a) of the Internal Revenue Code of 1986 (relating to tax on self-employment income) is amended to read as follows:

    ‘(a) OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE-

      ‘(1) IN GENERAL-

        ‘(A) INDIVIDUALS COVERED UNDER PART A OF THE SOCIAL SECURITY ACT- In addition to other taxes, there shall be imposed for each taxable year, on the self-employment income of every individual who is not a part B eligible individual for the calendar year ending with or during such taxable year, a tax equal to 12.40 percent of the amount of the self-employment income for such taxable year.

        ‘(B) INDIVIDUALS COVERED UNDER PART B OF TITLE II OF THE SOCIAL SECURITY ACT- In addition to other taxes, there is hereby imposed for each taxable year, on the self-employment income of every part B eligible individual, a tax equal to 10.4 percent of the amount of the self-employment income for such taxable year.

      ‘(2) CONTRIBUTION OF OASDI TAX REDUCTION TO INDIVIDUAL SECURITY ACCOUNTS-

        ‘(A) IN GENERAL- In addition to other taxes, there is hereby imposed for each taxable year, on the self-employment income of every individual, an individual security account contribution equal to the sum of--

          ‘(i) 2 percent of the amount of the self-employment income for each individual for such taxable year; and

          ‘(ii) so much of such self-employment income (not to exceed $2,000) as designated by the individual in the same manner as described in section 251(c) of the Social Security Act.

        ‘(B) INFLATION ADJUSTMENT-

          ‘(i) IN GENERAL- In the case of any taxable year beginning after 2000, the dollar amount in subparagraph (A)(ii) shall be increased by an amount equal to--

            ‘(I) such dollar amount, multiplied by

            ‘(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 1999’ for ‘calendar year 1992’ in subparagraph (B) thereof.

          ‘(ii) ROUNDING- If any dollar amount after being increased under clause (i) is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10.’.

      (3) PART B ELIGIBLE INDIVIDUAL-

        (A) TAXES ON EMPLOYEES- Section 3121 of such Code (relating to definitions) is amended by inserting after subsection (s) the following 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 individual (as defined in section 251(a)(2) of the Social Security 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 calendar year.’.

      (4) EFFECTIVE DATES-

        (A) EMPLOYEES- The amendments made by paragraphs (1) and (3)(A) apply to remuneration paid after December 31, 1999.

        (B) SELF-EMPLOYED INDIVIDUALS- The amendments made by paragraphs (2) and (3)(B) apply to taxable years beginning after December 31, 1999.

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:

‘Minimum Monthly Insurance Benefit

    ‘(j)(1) Notwithstanding the preceding provisions of this section--

      ‘(A) the primary insurance amount of a qualified individual shall be equal to the greater of--

        ‘(i) the primary insurance amount determined under this section (without regard to this subsection), or

        ‘(ii) 1/12 of the applicable percentage of the applicable amount, and

      ‘(B) any recomputation of the primary insurance amount of a qualified individual shall not result in a primary insurance amount less than the primary 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 (before becoming eligible for such benefits) for a month beginning after December 31, 2005, and

        ‘(ii) who has at least twice the minimum number of quarters required to be fully insured.

      ‘(B) The term ‘applicable amount’ means, in connection with an individual, $7,992 adjusted annually--

        ‘(i)(I) with respect to an individual whose initial month of eligibility occurs in a year prior to 2011, by the CPI increase percentage determined under section 215(i) for 1996 through the year prior to such year of eligibility; and

        ‘(II) with respect to an individual whose initial month of eligibility occurs in a year after 2010, by the CPI increase percentage determined under such section for 1996 through 2009, and by the wage increase percentage determined under such section for 2009 through the second year prior to the year of such eligibility; and

        ‘(ii) by the CPI increase percentage determined under such section for all years beginning with the year of an individual’s initial eligibility.

      ‘(C)(i) The term ‘applicable percentage’ means, for computations and recomputations of a qualified individual’s primary insurance amount under this section whose initial eligibility occurs in any calendar year specified in the table under clause (ii), the sum of--

        ‘(I) the applicable base percentage specified in such table in connection with such year, plus

        ‘(II) the product derived by multiplying the applicable percentage increment specified in such table in connection with such year by the ratio of the number of such individual’s quarters of coverage (if any) in excess of the minimum number of quarters required to be fully insured but not in excess of twice such minimum, to such minimum.

      ‘(ii) For purposes of clause (i), the applicable base percentages and applicable percentage increments are set forth in connection with calendar years in the following table:

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‘If the calendar year is: The applicable base percentage is: And the applicable percentage increment is: 
2006                             12 percent                                8 percent                                          
2007                             24 percent                                16 percent                                         
2008                             36 percent                                24 percent                                         
2009                             48 percent                                32 percent                                         
After 2009                       60 percent                                40 percent.’                                       
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SEC. 4. ELIMINATION OF EARNINGS TEST FOR INDIVIDUALS WHO HAVE ATTAINED RETIREMENT AGE.

    (a) IN GENERAL- Section 203 of the Social Security Act (42 U.S.C. 403) is amended--

      (1) in subsection (c)(1), by striking ‘the age of seventy’ and inserting ‘retirement age (as defined in section 216(l))’;

      (2) in paragraphs (1)(A) and (2) of subsection (d), by striking ‘the age of seventy’ each place it appears and inserting ‘retirement age (as defined in section 216(l))’;

      (3) in subsection (f)(1)(B), by striking ‘was age seventy or over’ and inserting ‘was at or above retirement age (as defined in section 216(l))’;

      (4) in subsection (f)(3)--

        (A) by striking ‘33 1/3 percent’ and all that follows through ‘any other individual,’ and inserting ‘50 percent of such individual’s earnings for such year in excess of the product of the exempt amount as determined under paragraph (8),’; and

        (B) by striking ‘age 70’ and inserting ‘retirement age (as defined in section 216(l))’;

      (5) in subsection (h)(1)(A), by striking ‘age 70’ each place it appears and inserting ‘retirement age (as defined in section 216(l))’; and

      (6) in subsection (j)--

        (A) in the heading, by striking ‘Age Seventy’ and inserting ‘Retirement Age’; and

        (B) by striking ‘seventy years of age’ and inserting ‘having attained retirement age (as defined in section 216(l))’.

    (b) CONFORMING AMENDMENTS ELIMINATING THE SPECIAL EXEMPT AMOUNT FOR INDIVIDUALS WHO HAVE ATTAINED RETIREMENT AGE-

      (1) UNIFORM EXEMPT AMOUNT- Section 203(f)(8)(A) of the Social Security Act (42 U.S.C. 403(f)(8)(A)) is amended by striking ‘the new exempt amounts (separately stated for individuals described in subparagraph (D) and for other individuals) which are to be applicable’ and inserting ‘a new exempt amount which shall be applicable’.

      (2) CONFORMING AMENDMENTS- Section 203(f)(8)(B) of such Act (42 U.S.C. 403(f)(8)(B)) is amended--

        (A) in the matter preceding clause (i), by striking ‘Except’ and all that follows through ‘whichever’ and inserting ‘The exempt amount which is applicable for each month of a particular taxable year shall be whichever’;

        (B) in clauses (i) and (ii), by striking ‘corresponding’ each place it appears; and

        (C) in the last sentence, by striking ‘an exempt amount’ and inserting ‘the exempt amount’.

      (3) REPEAL OF BASIS FOR COMPUTATION OF SPECIAL EXEMPT AMOUNT- Section 203(f)(8)(D) of such Act (42 U.S.C. 403(f)(8)(D)) is repealed.

    (c) Additional Conforming Amendments-

      (1) ELIMINATION OF REDUNDANT REFERENCES TO RETIREMENT AGE- Section 203 of the Social Security Act (42 U.S.C. 403) is amended--

        (A) in subsection (c), in the last sentence, by striking ‘nor shall any deduction’ and all that follows and inserting ‘nor shall any deduction be made under this subsection from any widow’s or widower’s insurance benefit if the widow, surviving divorced wife, widower, or surviving divorced husband involved became entitled to such benefit prior to attaining age 60.’; and

        (B) in subsection (f)(1), by striking subparagraph (D) and inserting the following: ‘(D) for which such individual is entitled to widow’s or widower’s insurance benefits if such individual became so entitled prior to attaining age 60,’.

      (2) CONFORMING AMENDMENT TO PROVISIONS FOR DETERMINING AMOUNT OF INCREASE ON ACCOUNT OF DELAYED RETIREMENT- Section 202(w)(2)(B)(ii) of such Act (42 U.S.C. 402(w)(2)(B)(ii)) is amended--

        (A) by striking ‘either’; and

        (B) by striking ‘or suffered deductions under section 203(b) or 203(c) in amounts equal to the amount of such benefit’.

      (3) PROVISIONS RELATING TO EARNINGS TAKEN INTO ACCOUNT IN DETERMINING SUBSTANTIAL GAINFUL ACTIVITY OF BLIND INDIVIDUALS- The second sentence of section 223(d)(4) of such Act (42 U.S.C. 423(d)(4)) is amended by striking ‘if section 102 of the Senior Citizens’ Right to Work Act of 1996 had not been enacted’ and inserting the following: ‘if the amendments to section 203 made by section 102 of the Senior Citizens’ Right to Work Act of 1996 and by the Strengthening Social Security Act of 1998 had not been enacted’.

    (d) EFFECTIVE DATE- The amendments and repeals made by this section shall apply with respect to taxable years ending after December 31, 1999.

SEC. 5. REDUCTION IN THE AMOUNT OF CERTAIN TRANSFERS 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 2009.’.

SEC. 6. COVERAGE OF NEWLY HIRED STATE AND LOCAL EMPLOYEES.

    (a) AMENDMENTS TO THE SOCIAL SECURITY ACT-

      (1) IN GENERAL- Paragraph (7) of section 210(a) of the Social Security Act (42 U.S.C. 410(a)(7)) is amended to read as follows:

      ‘(7) Excluded State or local government employment (as defined in subsection (s));’.

      (2) EXCLUDED STATE OR LOCAL GOVERNMENT EMPLOYMENT-

        (A) IN GENERAL- Section 210 of such Act (42 U.S.C. 410) is amended by adding at the end the following:

‘Excluded State or Local Government Employment

    ‘(s)(1) IN GENERAL- The term ‘excluded State or local government employment’ means any service performed in the employ of a State, of any political subdivision thereof, or of any instrumentality of any 1 or more of the foregoing which is wholly owned thereby, if--

      ‘(A)(i) such service would be excluded from the term ‘employment’ for purposes of this title if the preceding provisions of this section as in effect on December 31, 1999, had remained in effect, and (ii) the requirements of paragraph (2) are met with respect to such service, or

      ‘(B) the requirements of paragraph (3) are met with respect to such service.

    ‘(2) EXCEPTION FOR CURRENT EMPLOYMENT WHICH CONTINUES-

      ‘(A) IN GENERAL- The requirements of this paragraph are met with respect to service for any employer if--

        ‘(i) such service is performed by an individual--

          ‘(I) who was performing substantial and regular service for remuneration for that employer before January 1, 2000,

          ‘(II) who is a bona fide employee of that employer on December 31, 1999, and

          ‘(III) whose employment relationship with that employer was not entered into for purposes of meeting the requirements of this subparagraph, and

        ‘(ii) the employment relationship with that employer has not been terminated after December 31, 1999.

      ‘(B) TREATMENT OF MULTIPLE AGENCIES AND INSTRUMENTALITIES- For purposes of subparagraph (A), under regulations (consistent with regulations established under section 3121(t)(2)(B) of the Internal Revenue Code of 1986)--

        ‘(i) all agencies and instrumentalities of a State (as defined in section 218(b)) or of the District of Columbia shall be treated as a single employer, and

        ‘(ii) all agencies and instrumentalities of a political subdivision of a State (as so defined) shall be treated as a single employer and shall not be treated as described in clause (i).

    ‘(3) EXCEPTION FOR CERTAIN SERVICES-

      ‘(A) IN GENERAL- The requirements of this paragraph are met with respect to service if such service is performed--

        ‘(i) by an individual who is employed by a State or political subdivision thereof to relieve such individual from unemployment,

        ‘(ii) in a hospital, home, or other institution by a patient or inmate thereof as an employee of a State or political subdivision thereof or of the District of Columbia,

        ‘(iii) by an individual, as an employee of a State or political subdivision thereof or of the District of Columbia, serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or other similar emergency,

        ‘(iv) by any individual as an employee included under section 5351(2) of title 5, United States Code (relating to certain interns, student nurses, and other student employees of hospitals of the District of Columbia Government), other than as a medical or dental intern or a medical or dental resident in training,

        ‘(v) by an election official or election worker if the remuneration paid in a calendar year for such service is less than $1,000 with respect to service performed during 2000, and the adjusted amount determined under subparagraph (C) for any subsequent year with respect to service performed during such subsequent year, except to the extent that service by such election official or election worker is included in employment under an agreement under section 218, or

        ‘(vi) by an employee in a position compensated solely on a fee basis which is treated pursuant to section 211(c)(2)(E) as a trade or business for purposes of inclusion of such fees in net earnings from self-employment.

      ‘(B) DEFINITIONS- As used in this paragraph, the terms ‘State’ and ‘political subdivision’ have the meanings given those terms in section 218(b).

      ‘(C) ADJUSTMENTS TO DOLLAR AMOUNT FOR ELECTION OFFICIALS AND ELECTION WORKERS- For each year after 2000, the Secretary shall adjust the amount referred to in subparagraph (A)(v) at the same time and in the same manner as is provided under section 215(a)(1)(B)(ii) with respect to the amounts referred to in section 215(a)(1)(B)(i), except that--

        ‘(i) for purposes of this subparagraph, 1997 shall be substituted for the calendar year referred to in section 215(a)(1)(B)(ii)(II), and

        ‘(ii) such amount as so adjusted, if not a multiple of $50, shall be rounded to the nearest multiple of $50.

      The Commissioner of Social Security shall determine and publish in the Federal Register each adjusted amount determined under this subparagraph not later than November 1 preceding the year for which the adjustment is made.’.

        (B) CONFORMING AMENDMENTS-

          (i) Subsection (k) of section 210 of such Act (42 U.S.C. 410(k)) (relating to covered transportation service) is repealed.

          (ii) Section 210(p) of such Act (42 U.S.C. 410(p)) is amended--

            (I) in paragraph (2), by striking ‘service is performed’ and all that follows and inserting ‘service is service described in subsection (s)(3)(A).’; and

            (II) in paragraph (3)(A), by inserting ‘under subsection (a)(7) as in effect on December 31, 1999’ after ‘section’.

          (iii) Section 218(c)(6) of such Act (42 U.S.C. 418(c)(6)) is amended--

            (I) by striking subparagraph (C);

            (II) by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively; and

            (III) by striking subparagraph (F) and inserting the following:

      ‘(E) service which is included as employment under section 210(a).’.

    (b) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986-

      (1) IN GENERAL- Paragraph (7) of section 3121(b) of the Internal Revenue Code of 1986 (relating to employment) is amended to read as follows:

      ‘(7) excluded State or local government employment (as defined in subsection (t));’.

      (2) EXCLUDED STATE OR LOCAL GOVERNMENT EMPLOYMENT- Section 3121 of such Code is amended by inserting after subsection (s) the following:

    ‘(t) EXCLUDED STATE OR LOCAL GOVERNMENT EMPLOYMENT-

      ‘(1) IN GENERAL- For purposes of this chapter, the term ‘excluded State or local government employment’ means any service performed in the employ of a State, of any political subdivision thereof, or of any instrumentality of any 1 or more of the foregoing which is wholly owned thereby, if--

        ‘(A)(i) such service would be excluded from the term ‘employment’ for purposes of this chapter if the provisions of subsection (b)(7) as in effect on December 31, 1999, had remained in effect, and (ii) the requirements of paragraph (2) are met with respect to such service, or

        ‘(B) the requirements of paragraph (3) are met with respect to such service.

      ‘(2) EXCEPTION FOR CURRENT EMPLOYMENT WHICH CONTINUES-

        ‘(A) IN GENERAL- The requirements of this paragraph are met with respect to service for any employer if--

          ‘(i) such service is performed by an individual--

            ‘(I) who was performing substantial and regular service for remuneration for that employer before January 1, 2000,

            ‘(II) who is a bona fide employee of that employer on December 31, 1999, and

            ‘(III) whose employment relationship with that employer was not entered into for purposes of meeting the requirements of this subparagraph, and

          ‘(ii) the employment relationship with that employer has not been terminated after December 31, 1999.

        ‘(B) TREATMENT OF MULTIPLE AGENCIES AND INSTRUMENTALITIES- For purposes of subparagraph (A), under regulations--

          ‘(i) all agencies and instrumentalities of a State (as defined in section 218(b) of the Social Security Act) or of the District of Columbia shall be treated as a single employer, and

          ‘(ii) all agencies and instrumentalities of a political subdivision of a State (as so defined) shall be treated as a single employer and shall not be treated as described in clause (i).

      ‘(3) EXCEPTION FOR CERTAIN SERVICES-

        ‘(A) IN GENERAL- The requirements of this paragraph are met with respect to service if such service is performed--

          ‘(i) by an individual who is employed by a State or political subdivision thereof to relieve such individual from unemployment,

          ‘(ii) in a hospital, home, or other institution by a patient or inmate thereof as an employee of a State or political subdivision thereof or of the District of Columbia,

          ‘(iii) by an individual, as an employee of a State or political subdivision thereof or of the District of Columbia, serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or other similar emergency,

          ‘(iv) by any individual as an employee included under section 5351(2) of title 5, United States Code (relating to certain interns, student nurses, and other student employees of hospitals of the District of Columbia Government), other than as a medical or dental intern or a medical or dental resident in training,

          ‘(v) by an election official or election worker if the remuneration paid in a calendar year for such service is less than $1,000 with respect to service performed during 2000, and the adjusted amount determined under section 210(s)(3)(C) of the Social Security Act for any subsequent year with respect to service performed during such subsequent year, except to the extent that service by such election official or election worker is included in employment under an agreement under section 218 of the Social Security Act, or

          ‘(vi) by an employee in a position compensated solely on a fee basis which is treated pursuant to section 1402(c)(2)(E) as a trade or business for purposes of inclusion of such fees in net earnings from self-employment.

        ‘(B) DEFINITIONS- As used in this paragraph, the terms ‘State’ and ‘political subdivision’ have the meanings given those terms in section 218(b) of the Social Security Act.’.

      (3) CONFORMING AMENDMENTS-

        (A) Subsection (j) of section 3121 of such Code (relating to covered transportation service) is repealed.

        (B) Paragraph (2) of section 3121(u) of such Code (relating to application of hospital insurance tax to Federal, State, and local employment) is amended--

          (i) in subparagraph (B), by striking ‘service is performed’ in clause (ii) and all that follows through the end of such subparagraph and inserting ‘service is service described in subsection (t)(3)(A).’; and

          (ii) in subparagraph (C)(i), by inserting ‘under subsection (b)(7) as in effect on December 31, 1999’ after ‘chapter’.

    (c) EFFECTIVE DATE- Except as otherwise provided in this section, the amendments made by this section shall apply with respect to service performed after December 31, 1999.

SEC. 7. GRADUAL INCREASE IN NUMBER OF BENEFIT COMPUTATION YEARS; USE OF ALL YEARS IN COMPUTATION.

    (a) IN GENERAL- Section 215(b)(2)(A) of the Social Security Act (42 U.S.C. 415(b)(2)(A)) is amended--

      (1) in clause (i), by striking ‘5 years’ and inserting ‘the applicable number of years for purposes of this clause’; and

      (2) by striking ‘Clause (ii),’ in the matter following clause (ii) and inserting the following:

    ‘For purposes of clause (i), the applicable number of years is the number of years specified in connection with the year in which such individual reaches early retirement age (as defined in section 216(l)(2)), or, if earlier, the calendar year in which such individual dies, as set forth in the following table:

‘If such calendar year is:

The applicable number of years is:

2002

--4.

2003

--4.

2004

--3.

2005

--3.

2006

--2.

2007

--2.

2008

--1.

2009

--1.

After 2009

--0.

    Clause (ii),’.

    (b) USE OF ALL YEARS IN COMPUTATION-

      (1) IN GENERAL- Section 215(b)(2)(B) of the Social Security Act (42 U.S.C. 415(b)(2)(B)) is amended by striking clauses (i) and (ii) and inserting the following:

      ‘(i)(I) for calendar years after 2001 and before 2010, the term ‘benefit computation years’ means those computation base years equal in number to the number determined under subparagraph (A) plus the applicable number of years determined under subclause (III), for which the total of such individual’s wages and self-employment income, after adjustment under paragraph (3), is the largest;

      ‘(II) for calendar years after 2009, the term ‘benefit computation years’ means all of the computation base years; and

      ‘(III) for purposes of subclause (I), the applicable number of years is the number of years specified in connection with the year in which such individual reaches early retirement age (as defined in section 216(l)(2)), or, if earlier, the calendar year in which such individual dies, as set forth in the following table:

‘If such calendar year is:

The applicable number of years is:

Before 2002

--0.

2002

--1.

2003

--1.

2004

--2.

2005

--2.

2006

--3.

2007

--3.

2008

--4.

2009

--4.

      ‘(ii) the term ‘computation base years’ means the calendar years after 1950, except that such term excludes any calendar year entirely included in a period of disability; and’.

      (2) CONFORMING AMENDMENT- Section 215(b)(1)(B) of the Social Security Act (42 U.S.C. 415(b)(1)(B)) is amended by striking ‘in those years’ and inserting ‘in an individual’s computation base years determined under paragraph (2)(A)’.

    (c) EFFECTIVE DATE-

      (1) SUBSECTION (a)- The amendments made by subsection (a) shall apply with respect to individuals attaining early retirement age (as defined in section 216(l)(2) of the Social Security Act) after December 31, 2001.

      (2) SUBSECTION (b)- The amendment made by subsection (b) shall apply to benefit computation years beginning after December 31, 1999.

SEC. 8. 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 fraction (determined under paragraph (12))’; and

        (B) by adding at the end the following:

    ‘(12) For purposes of paragraph (1)(A), the ‘applicable fraction’ for an individual who attains the age of 62 in--

      ‘(A) any year before 2001, is 5/9 ;

      ‘(B) 2001, is 7/12 ;

      ‘(C) 2002, is 11/18 ;

      ‘(D) 2003, is 23/36 ;

      ‘(E) 2004, is 2/3 ; and

      ‘(F) 2005 or any succeeding year, is 25/36 .’.

      (2) MONTHS BEYOND FIRST 36 MONTHS- Section 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 ‘applicable fraction’ for an individual who attains the age of 62 in--

      ‘(A) any year before 2001, is 5/12 ;

      ‘(B) 2001, is 16/36 ;

      ‘(C) 2002, is 16/36 ;

      ‘(D) 2003, is 17/36 ;

      ‘(E) 2004, is 17/36 ; and

      ‘(F) 2005 or any succeeding year, is 1/2 .’.

      (3) EFFECTIVE DATE- The amendments made by paragraphs (1) and (2) shall apply to individuals who attain the age of 62 in years after 1999.

    (b) DELAYED RETIREMENT- Section 202(w)(6) of the Social Security Act (42 U.S.C. 402(w)(6)) is amended--

      (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 individual 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 individual 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 individual 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 individual who attains the age of 62 in a calendar year after 2012.’.

SEC. 9. IMPROVEMENTS IN PROCESS FOR COST-OF-LIVING ADJUSTMENTS.

    (a) ANNUAL DECLARATIONS OF ACHIEVED SUBSTITUTION BIAS CORRECTION AND PERSISTING UPPER LEVEL SUBSTITUTION BIAS-

      (1) ACHIEVED SUBSTITUTION BIAS CORRECTION- Not later than October 1, 1998, and annually thereafter, the Commissioner of the Bureau of Labor Statistics shall publish in the Federal Register an estimate of the number of percentage points by which the annual rate of change in the Consumer Price Index is reduced below the rate it would otherwise have attained by reason of adjustments in the determination of such index instituted by the Bureau after December 31, 1997.

      (2) UPPER LEVEL SUBSTITUTION BIAS- Not later than August 1, 1999, and annually thereafter, the Commissioner of the Bureau of Labor Statistics shall publish in the Federal Register an estimate of the upper level substitution bias retained in the Consumer Price Index, expressed in terms of a percentage point effect on the annual rate of change in the Consumer Price Index determined through the use of a superlative index that accounts for changes that consumers make in the quantities of goods and services consumed.

    (b) FUNDING FOR CPI IMPROVEMENTS-

      (1) IN GENERAL- There is hereby appropriated to the Bureau of Labor Statistics in the Department of Labor, for each of fiscal years 1998, 1999, and 2000, $30,000,000 for use by the Bureau for the following purposes:

        (A) Research, evaluation, and implementation of a superlative index to estimate upper level substitution bias in the Consumer Price Index.

        (B) Expansion of the Consumer Expenditure Survey and the Point of Purchase Survey.

        (C) Implementation of revisions to the Consumer Price Index with respect to programs under title II of the Social Security Act (42 U.S.C. 401 et seq.).

      (2) REPORTS- The Commissioner of the Bureau of Labor Statistics shall submit reports regarding the use of appropriations made under paragraph (1) to the Committee on Appropriations of the House of Representative and the Committee on Appropriations of the Senate upon the request of each Committee.

    (c) INFORMATION SHARING- The Commissioner of the Bureau of Labor Statistics may secure directly from the Secretary of Commerce information necessary for purposes of calculating the Consumer Price Index. Upon request of the Commissioner of the Bureau of Labor Statistics, the Secretary of Commerce shall furnish that information to the Commissioner.

    (d) ADMINISTRATIVE ADVISORY COMMITTEE- The Bureau of Labor Statistics shall, in consultation with the National Bureau of Economic Research, the American Economic Association, and the National Academy of Statisticians, establish an administrative advisory committee. The advisory committee shall periodically advise the Bureau of Labor Statistics regarding revisions of the Consumer Price Index and conduct research and experimentation with alternative data collection and estimating approaches.

    (e) MODIFICATIONS TO COST-OF-LIVING INDEXING OF BENEFITS- Section 215(i)(1) of the Social Security Act (42 U.S.C. 415(i)(1)) is amended--

      (1) by striking ‘Consumer Price Index’ each place it occurs and inserting ‘Social Security Consumer Price Index’;

      (2) in subparagraph (D), by striking ‘(as prepared by the Department of Labor)’; and

      (3) in subparagraph (G), by striking the period at the end and inserting ‘; and’;

      (4) by adding at the end the following:

      ‘(H) the term ‘Social Security Consumer Price Index’, for a month in any year after 1999, means the Consumer Price Index for such month (as prepared by the Department of Labor), reflecting adjustments to the annual rate of growth in such index equal to the greater of--

        ‘(i) the excess of 0.5 percentage points over the achieved bias correction (as last published by the Secretary of Labor pursuant to section 211(a)(1) of the Strengthening Social Security Act of 1998), or

        ‘(ii) the upper level substitution bias (as last published by the Secretary of Labor pursuant to section 211(a)(2) of the Strengthening Social Security Act of 1998).’.

SEC. 10. PHASED REDUCTION IN SPOUSAL BENEFITS OTHER THAN SURVIVOR’S BENEFITS TO 33 PERCENT OF PRIMARY INSURANCE AMOUNT.

    (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)(A) Except as provided in subsection (q) and paragraph (4) of this subsection, such wife’s insurance benefit for each month shall be equal to the applicable percentage of the primary insurance amount of her husband (or, in the case of a divorced wife, her former husband) for the calendar year in which such individual becomes eligible for such benefit.

    ‘(B) For purposes of subparagraph (A), the applicable percentage for any calendar year shall be equal to 50 percent, reduced (but not below 33 percent) by 1 percentage point for each year after 1999.

    ‘(C) For purposes of subparagraph (A)--

      ‘(i) an individual shall be treated as eligible for a wife’s insurance benefit if such individual meets the requirements of subparagraphs (B), (C), and (D) of paragraph (1), and

      ‘(ii) in determining when an individual becomes eligible for a wife’s insurance benefit, any break in eligibility of less than 12 consecutive months shall not be taken into account.’.

    (b) HUSBAND’S INSURANCE BENEFITS- Section 202(c)(3) of the Social Security Act (42 U.S.C. 402(c)(3)) is amended to read as follows:

    ‘(3)(A) Except as provided in subsection (q) and paragraph (2) of this subsection, such husband’s insurance benefit for each month shall be equal to the applicable percentage (as determined under subsection (b)(2)(B)) of the primary insurance amount of his wife (or, in the case of a divorced husband, his former wife) for the calendar year in which such individual becomes eligible for such benefit.

    ‘(B) For purposes of subparagraph (A)--

      ‘(i) an individual shall be treated as eligible for a husband’s insurance benefit if such individual meets the requirements of subparagraphs (B), (C), and (D) of paragraph (1), and

      ‘(ii) in determining when an individual becomes eligible for a husband’s insurance benefit, any break in eligibility of less than 12 consecutive months shall not be taken into account.’.

SEC. 11. ADJUSTMENT TO UPPER 2 BENEFIT FORMULA FACTORS.

    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 (iv); and

      (2) by inserting after clause (ii) the following:

    ‘(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 2002, each of the amounts otherwise established for purposes of clauses (ii) and (iii) of subparagraph (A) under this subparagraph shall be multiplied the applicable number of times by .98. For purposes of the preceding sentence, the term ‘applicable number of times’ means a number equal to the lesser of 20 or the number of years beginning with 2003 and ending with the year of initial eligibility or death.’

SEC. 12. PHASED-IN INCREASE IN SOCIAL SECURITY RETIREMENT AGES.

    (a) NORMAL RETIREMENT AGE- Section 216(l) of the Social Security Act (42 U.S.C. 416(l) is amended--

      (1) in paragraph (1), by striking subparagraphs (B), (C), (D), and (E) and inserting the following:

        ‘(B)(i) with respect to an individual who attains age 62 (or in the case of a widow’s or widower’s insurance benefit, age 60) after December 31, 1999, and before January 1, 2029, 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 benefit, age 60),

        ‘(ii) with respect to an individual who attains age 62 (or in the case of a widow’s or widower’s insurance benefit, age 60) after December 31, 2028, 70 years of age, and

        ‘(iii) with respect to an individual who attains age 62 (or in the case of a widow’s or widower’s insurance benefit, age 60) after December 31, 2029, 70 years of age plus 1/18 of the number of months in the period beginning with January 2030 and ending with December of the year in which the individual attains age 62 (or in the case of a widow’s or widower’s insurance benefit, age 60) (rounded down to a full month).’; and

      (2) by striking paragraph (3).

    (b) EARLY RETIREMENT AGE- Section 216(l)(2) of the Social Security Act (42 U.S.C. 416(l)(2)) is amended to read as follows:

    ‘(2) The term ‘early retirement age’ means--

        ‘(A)(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;

        ‘(B)(i) with respect to an individual who attains age 62 after December 31, 2011, and before January 1, 2029, 62 years of age plus 2/12 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,

        ‘(ii) with respect to an individual who attains age 62 after December 31, 2028, 65 years of age, and

        ‘(iii) with respect to an individual who attains age 62 after December 31, 2029, 65 years of age plus 1/18 of the number of months in the period beginning with January 2030 and ending with December of the year in which the individual attains age 62 (rounded down to a full month); and

SEC. 13. MECHANISM FOR REMEDYING UNFORESEEN DETERIORATION 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 subsection (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 setting 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 obtain 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 recommendations 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 Security 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 relationship 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, transmit to the Board and to the Congress a report containing the President’s approval or disapproval of the Board’s recommendations.

    ‘(B) If the President approves all the recommendations of the Board, the President shall transmit a copy of such recommendations to the Congress as the President’s recommendations, together with a certification of the President’s adoption of such recommendations.

    ‘(C) If the President disapproves the recommendations 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 recommendations 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 certification of the President’s adoption of such recommendations.

    ‘(E) If the President disapproves the revised recommendations of the Board, in whole or in part, the President 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, together 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, respectively, 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 introduced within the 10-day period beginning on the date on which the President transmits the President’s recommendations, 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 XX pursuant to section 709(a) of the Social Security Act, as follows: XXXX’, 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 recommendations; and

      ‘(iii) the title of which is as follows: ‘Joint resolution approving the recommendations of the President 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 described in subparagraph (B) introduced in the Senate shall be referred to the Committee on Finance of the Senate.

    ‘(D) If the committee to which a joint resolution described 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 consideration 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 subparagraph (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 consideration of the joint resolution. A Member may make the motion 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 resolution (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 resolution without intervening motion, order, or other business, 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 debatable 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 debate 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 appropriate House, the vote on final passage of the joint resolution 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 resolution 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 described 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 receiving House.

    ‘(b) If the Board of Trustees of the Federal Hospital Insurance Trust Fund or the Federal Supplementary Medical Insurance Trust Fund determines as 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 inserting ‘or (b)’ after ‘subsection (a)’.