HR 1793 IH
106th CONGRESS
1st Session
H. R. 1793
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
May 13, 1999
Mr. KOLBE (for himself, Mr. STENHOLM, Mr. SMITH of Michigan, Mr. DOOLEY of California, Mr. SANFORD, Ms. MCCARTHY of Missouri, and Mr. GREENWOOD) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to th
e 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. Increase in number of years taken into account in
determining average indexed monthly earnings.
Sec. 7. Actuarial adjustment for retirement.
Sec. 8. Improvements in process for cost-of-living
adjustments.
Sec. 9. Adjustment to upper 2 benefit formula
factors.
Sec. 10. Phased-in increase in social security retirement
ages.
Sec. 11. Modifications in PIA formula to reflect changes in
life expectancy.
Sec. 12. 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';
(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 indivi
dual 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.
`(1) AMOUNTS TRANSFERRED FROM THE TRUST FUND- 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.
`(2) OTHER CONTRIBUTIONS- For provisions relating to additional contributions credited to individual security accounts, see sections 531(c)(2) and 6402(l) 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 credi
ted.
`(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 o
n 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 accou
nt 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 Securit
y Fund Board.
`(b) TREATMENT OF ACCOUNT- Except as otherwise provided in this part and in section 531 of the Internal Revenue Code of 1986, any individual security account described in subsection (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, w
hen 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 s
uch 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 desc
ribed 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 subchapte
r 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) and to the extent not inconsistent with the provisions of subchapter III of chapter 84 of
title 5, United States Code, such funds shall be payable to the eligible individual in such manner and in such amounts as determined by the eligible individual.
`(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 individual'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, Uni
ted 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 21st Century Retirement Act of 1999, 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-
`(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 sec
tion 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-
`(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 c
alendar 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.'.
(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.
(c) MATCHING CONTRIBUTIONS-
(1) IN GENERAL- Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating 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--
`(2) 50 percent of the designated wages of such individual for the taxable year,
`(3) 50 percent of the designated self-employment income of such individual for the taxable year, and
`(4) 50 percent of the designated earned income credit.
`(1) AMOUNT- The amount determined under subparagraphs (A) and (B) of paragraph (1) with respect to such individual for any taxable year may not exceed the excess (if any) of--
`(B) the sum of the amounts received by the Secretary on behalf of such individual under sections 3101(a)(2)(A)(i) and 1401(a)(2)(A)(i) for the taxable year.
`(2) FAILURE TO MAKE VOLUNTARY CONTRIBUTIONS- In the case of a part B eligible individual with respect to whom the amount of wages designated under section 3101(a)(2)(A)(ii) plus the
amount self-employment income designated under section 1401(a)(2)(A)(ii) 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 `designated wages' means with respect to any taxable year the amount designated under section 3101(a)(2)(A)(ii).
`(3) DESIGNATED SELF-EMPLOYMENT INCOME- The term `designated self-employment income' means with respect to any taxable year the amount designated under section 1401(a)(2)(A)(ii) 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 B eligible individual in the same manner as described
in section 251(c) of the Social Security Act.
`(d) CREDIT USED ONLY FOR INDIVIDUAL SECURITY ACCOUNT- For purposes of this title, the credit allowed under this section with respect to any part B eligible individual--
`(1) shall not be treated as a credit allowed under this part, but
`(2) shall be treated as an overpayment of tax under section 6401(b)(3) which may, in accordance with section 6402(l), only be transferred to an individual security account established under part B of title II of the Social Security Act with
respect to such individual.'.
(2) CONTRIBUTION OF EITC AMOUNTS TO INDIVIDUAL SECURITY ACCOUNTS- Section 32 of such Code (relating to earned income) is amended by adding at the end the following new subsection:
`(o) CONTRIBUTION TO INDIVIDUAL SECURITY ACCOUNT-
`(1) IN GENERAL- An eligible part B individual who is allowed a credit under this section may designate all or a portion of such credit as a contribution to the individual security account established on behalf of such individual.
`(2) CREDIT USED ONLY FOR INDIVIDUAL SECURITY ACCOUNT- For purposes of this title, the amount designated under paragraph (1) with respect to any part B eligible individual--
`(A) shall not be treated as a credit allowed under this section, but
`(B) shall be treated as an overpayment of tax under section 6401(b)(3) which may, in accordance with section 6402(l), only be transferred to an individual security account established under part B of title II of the Social Security Act w
ith respect to such individual.'.
(3) CONTRIBUTION OF CREDITED AMOUNTS TO INDIVIDUAL SECURITY ACCOUNT-
(A) CREDITED AMOUNTS TREATED AS OVERPAYMENT OF TAX- Subsection (b) of section 6401 (relating to excessive credits) is amended by adding at the end the following new paragraph:
`(3) SPECIAL RULE FOR CREDIT UNDER SECTIONS 32 AND 54- Subject to the provisions of section 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 taxable year, plus
`(B) SECTION 32 DESIGNATED EARNED INCOME CREDIT CONTRIBUTION- The amount of the earned income credit designated as a contribution to an individual security account under section 32(o) for the taxable year.'.
(B) TRANSFER OF CREDIT AMOUNT TO INDIVIDUAL 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 overpayment 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 ACCOUNTS- 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 T
reasury shall provide notice of the availability 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 21st Century Retirement Act'.
(B) The table of subparts for part IV of subchapter A of chapter 1 of the Internal Revenue 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, 1999.
(d) TAX TREATMENT OF INDIVIDUAL SECURITY ACCOUNTS-
(1) IN GENERAL- Subchapter F of chapter 1 of the Internal Revenue Code of 1986 (relating to exempt organizations) is amended by adding at the end the following new part:
`PART IX--INDIVIDUAL SECURITY FUND AND ACCOUNTS
`Sec. 531. Individual Security Fund and Accounts.
`SEC. 531. INDIVIDUAL SECURITY FUND AND ACCOUNTS.
`(a) GENERAL RULE- The Individual Security Fund and individual security accounts shall be exempt from taxation under this subtitle.
`(b) INDIVIDUAL SECURITY FUND AND ACCOUNTS DEFINED- For purposes of this section, the terms `Individual Security Fund' and `individual security account' means the fund and account established under sections 254 and 251, respectively, of part B o
f title II of the Social Security Act.
`(1) IN GENERAL- No deduction shall be allowed for contributions credited to an individual security account under section 251 of the Social Security Act or section 6402(l).
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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
(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) whi
ch 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, sur
viving 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. INCREASE IN NUMBER OF YEARS TAKEN INTO ACCOUNT IN DETERMINING AVERAGE INDEXED MONTHLY EARNINGS.
(a) IN GENERAL- Section 215(b) of the Social Security Act (42 U.S.C. 415(b)(1)) is amended--
(1) by striking subparagraph (B) of paragraph (1) and inserting the following:
`(B) the product derived by multiplying--
`(i) the number of elapsed years, reduced (in any case to which paragraph (2)(A)(i) applies) to the extent provided in paragraph (2)(C), by
(2) in subparagraph (A) of paragraph (2), by striking all of such subparagraph as precedes `Clause (ii),' and inserting the following:
`(2)(A) The number of an individual's benefit computation years equals--
`(i) in the case of an individual who is entitled to old-age insurance benefits (except as provided in the second sentence of this subparagraph), or who has died, the number of his computation base years, and
`(ii) in the case of an individual who is entitled to disability insurance benefits, the number of elapsed years reduced by the number of years equal to one-fifth of the number of elapsed years (disregarding any resulting fractional part of a
year), but not by more than 5 years.'; and
(3) by adding at the end of paragraph (2) the following new subparagraph:
`(C)(i) For purposes of clause (i) of paragraph (1)(B), the number of elapsed years shall be reduced
pursuant to such clause by the number of years specified in connection with the calendar year in which such individual becomes eligible for old-age insurance benefits, or dies (before becoming eligible for such benefits), as set forth in the following
table:
`If such calendar year is:
The applicable number of years is:
2000 or 2001
--5.
2002 or 2003
--4.
2004 or 2005
--3.
2006 or 2007
--2.
2008 or 2009
--1.
After 2009
--0.
`(ii) The reduction provided in clause (i) of paragraph (1)(B) shall not apply in any case in which--
`(I) the individual is married at the time the individual becomes eligible for old-age insurance benefits or dies (before becoming eligible for such benefits), and
`(II) the total of the wages paid in and self-employment income credited to the preceding calendar year with respect to the individual is less than the total of the wages paid in and self-employment income credited to such year with respe
ct to the individual's spouse.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply with respect to individuals attaining early retirement age (as defined in section 216(l)(2) of the Social Security Act) or dying after December 31, 1999.
SEC. 7. ACTUARIAL ADJUSTMENT FOR 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 ;
`(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 ;
`(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. 8. IMPROVEMENTS IN PROCESS FOR COST-OF-LIVING ADJUSTMENTS.
(a) ANNUAL DECLARATIONS OF ACHIEVED SUBSTITUTION BIAS CORRECTION AND RETAINED UPPER LEVEL SUBSTITUTION BIAS-
(1) ACHIEVED SUBSTITUTION BIAS CORRECTION- Not later than October 1, 1999, 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 whi
ch 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, 1998.
(2) UPPER LEVEL SUBSTITUTION BIAS- Not later than August 1, 2000, 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 t
he Consumer Price Index, expressed in terms of a percentage point effect on the annual rate of change in the Consumer Price Index for the preceding calendar year determined through the use of a superlative index that accounts for changes that consumers ma
ke 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 1999, 2000, and 2001, $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 Appropria
tions 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 Bur
eau 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-
(1) IN GENERAL- Section 215(i)(1)(D) of the Social Security Act (42 U.S.C. 415(i)(1)(D)) is amended to to read as follows:
`(D) the term `CPI increase percentage', with respect to a base quarter or cost-of-living computation quarter in any calendar year, means--
`(i) the percentage (rounded to the nearest one-hundredth of 1 percent) by which the Consumer Price Index for that quarter (as prepared by the Department of Labor) exceeds such index for the most recent prior calendar quarter which was a
base quarter under subparagraph (A)(ii) or, if later, the most recent cost-of-living computation quarter under subparagraph (B),
`(ii) reduced (but not below zero) by the upper level substitution bias (rounded to the nearest one-hundredth of 1 percent) retained in such index (as published by the Secretary of Labor pursuant to section 8(a)(2) of the 21st Century Ret
irement Act of 1999 in connection with the annual rate of change in the Consumer Price Index for the preceding calendar year), to the extent applicable to such percentage, and
`(iii) reduced further (but not below zero) by the excess (if any) of 0.33 percentage points over the sum of--
`(I) the reduction in percentage points undergone by the percentage described in clause (i) pursuant to clause (ii), and
`(II) the reduction in percentage points undergone by the percentage described in clause (i) (rounded to the nearest one-hundredth of 1 percent) attributable to the achieved substitution bias correction (as last published by the Secr
etary of Labor pursuant to section 8(a)(1) of the 21st Century Retirement Act of 1999), to the extent applicable to such percentage.'.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply with respect to increases under section 215(i) of the Social Security Act effective with the month of December of years after 1999.
(f) CONSUMER PRICE INDEX ADJUSTMENTS APPLICABLE TO INTERNAL REVENUE CODE PROVISIONS-
(1) IN GENERAL- Paragraph (3) of section 1(f) of the Internal Revenue Code of 1986 (defining cost-of-living adjustment) is amended by striking the period at the end and inserting a comma and by inserting at the end the following flush materia
l:
`reduced (but not below zero) by the number of percentage points determined under paragraph (8) for the calendar year for which such adjustment is being determined.'.
(2) LIMITATION ON INCREASES- Subsection (f) of section 1 of such Code is amended by adding at the end the following new paragraph:
`(8) LIMITATION ON INCREASES IN CPI-
`(A) IN GENERAL- The number of percentage points determined under this paragraph for any calendar year is--
`(i) the upper level substitution bias, to the extent applicable to the percentage adjustment under paragraph (3), plus
`(ii) the excess (if any) of 0.33 percentage points over the sum of--
`(I) such upper level substitution bias, and
`(II) the achieved substitution bias correction, to the extent applicable to the percentage adjustment under paragraph (3).
`(B) COMPUTATION OF BASE TO REFLECT LIMITATION- 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 subparagraph (A) shall not be taken into acc
ount at any time so as to allow such increase for any period.
`(C) DEFINITIONS- For purposes of this paragraph, the terms `achieved substitution bias correction' and `upper level substitution bias' mean, with respect to any 12-month period ending on August 31 of a calendar year, the achieved substit
ution bias correction and upper level substitution bias most recently published by the Secretary of Labor pursuant to section 8(a) of the 21st Century Retirement Act of 1999 for a period ending on or before August 31 of such calendar year.'.
(g) CORRESPONDING AMENDMENTS TO OTHER PROVISIONS 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, 1999, with respect to any benefit described in paragraph (5)--
(A) any increase in the relevant index (determined without regard to this subsection) shall be reduced by the number of percentage points determined under paragraph (2), and
(B) the amount of the increase in such benefit shall be equal to the product of--
(i) the increase in the relevant 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) LIMITATION ON INCREASES-
(A) IN GENERAL- The number of percentage points determined under this paragraph for any calendar year is--
(i) the upper level substitution bias, to the extent applicable to the percentage adjustment under the relevant index, plus
(ii) the excess (if any) of 0.33 percentage points over the sum of--
(I) such upper level substitution bias, and
(II) the achieved substitution bias correction, to the extent applicable to the percentage adjustment under the relevant index,.
(B) COMPUTATION OF BASE TO REFLECT LIMITATION- Any increase which is not taken into account by reason of subparagraph (A) shall not be taken into account at any time so as to allow such increase for any period.
(3) PARAGRAPH (1) TO APPLY ONLY TO COMPUTATION OF BENEFIT AMOUNTS- Paragraph (1) shall apply only for purposes of determining the amount of benefits and not for purposes of determining--
(A) whether a threshold increase in the relevant index has been met, or
(B) increases in amounts under other provisions of law not described in paragraph (5) which operate by reference to increases in such benefits.
(4) DEFINITIONS- For purposes of this subsection--
(A) COST-OF-LIVING ADJUSTMENT- 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 an index.
(i) INDEX- The term `index' means the Consumer Price Index and any other index of price or wages.
(ii) RELEVANT INDEX- The term `relevant index' means the index on the basis of which the amount of the cost-of-living adjustment is determined.
(C) ACHIEVED SUBSTITUTION BIAS CORRECTION; UPPER LEVEL SUBSTITUTION BIAS- The terms `achieved substitution bias correction' and `upper level substitution bias' mean, with respect to the applicable 12-month period preceding a cost-of-livin
g adjustment, the achieved substitution bias correction and upper level substitution bias most recently published by the Secretary of Labor pursuant to section 8(a) of the 21st Century Retirement Act of 1999.
(5) BENEFITS TO WHICH SUBSECTION APPLIES- For purposes of this subsection, the benefits described in this paragraph are--
(A) retired and retainer pay subject to adjustment under section 1401a of title 10, United States Code;
(B) civil service retirement benefits under section 8340 of title 5, United States Code, foreign 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 Retirement 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.
(6) BENEFIT- For purposes of this section, the term `benefit' includes a payment.
(h) RECAPTURE TO FEDERAL OLD-AGE AND SURVIVORS 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 transfer, from the general fund of the Treasury to the Federal Old-Age and Survivors Insurance Trust Fund, an amount equal to the applicabl
e percentage for such year, specified in such table, of the total wages paid in and self-employment income credited to such year.
`For a calendar year--
The applicable percentage for the year is--
After 1999 and before 2001
0.03 percent.
After 2000 and before 2002
0.07 percent.
After 2001 and before 2003
0.13 percent.
After 2002 and before 2004
0.15 percent.
After 2003 and before 2005
0.20 percent.
After 2004 and before 2006
0.24 percent.
After 2005 and before 2007
0.28 percent.
After 2006 and before 2008
0.32 percent.
After 2007 and before 2009
0.35 percent.
After 2008 and before 2010
0.38 percent.
After 2009 and before 2016
0.47 percent.
After 2015 and before 2040
0.55 percent.
After 2039 and before 2060
0.66 percent.
After 2059
0.80 percent.'.
SEC. 9. ADJUSTMENT TO UPPER 2 BENEFIT FORMULA 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 (vi); and
(2) by inserting after clause (ii) the following:
`(iii) For an individual who initially becomes eligible for old-age or disability insurance benefits, or who dies (before becoming eligible for such benefits), in any calendar year after 2005, each of the amounts otherwise established for purpose
s of clauses (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 commencing with 2006--
`(I) such amount (after applying this clause for earlier years of the factoring period), by
`(II) the designated factor for such year.
`(iv) For purposes of clause (iii), the term `factoring period' means, for an individual, the period beginning with 2006 and ending with the earlier of--
`(I) the year of the individual's initial eligibility or death, or
`(v) For purposes of clause (iii), the term `designated factor' means--
`(I) for a year prior to 2011, 0.985, and
`(II) for a year after 2010, 0.980.'.
SEC. 10. PHASED-IN INCREASE IN SOCIAL SECURITY 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 (A), (B), (C), (D), and (E) and inserting the following:
`(A) with respect to an individual who attains age 62 (or in the case of a widow's or widower's insurance benefit, age 60) before January 1, 2000, 65 years of age;
`(B) with respect to an individual who 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, 2011, 65 years of age plus 2/12 of the number of months in the peri
od 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);
`(C) 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, 2010, and before January 1, 2012, 67 years of age; and
`(D) 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, 2011, 67 years of age plus 1/24 of the number of months in the period beginning with January 2
012 and ending with December of the year in which the individual attains age 62 (rounded down to a full month).'; and
(2) by striking paragraph (3).
(b) EARLY RETIREMENT AGE- Section 216(l)(2) of the Social Security Act (42 U.S.C. 416(l)(2)) is amended to read as follows:
`(2) The term `early retirement age' means--
`(A)(i) in the case of an old-age, wife's, or husband's insurance benefit, except as provided in subparagraph (B), age 62, and
`(ii) in the case of a widow's or widower's insurance benefit, age 60; and
`(B) in the case of an old-age, wife's, or husband's insurance benefit with respect to an individual who attains age 62 after December 31, 2011, 62 years of age plus 1/18 of the number of whole months elapsing since such date.'.
SEC. 11. MODIFICATION OF PIA FORMULA TO REFLECT CHANGES IN LIFE EXPECTANCY.
(a) MODIFICATION OF FORMULA- Section 215(a)(1) of the Social Security Act (42 U.S.C. 415(a)(1)(B)) is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph:
`(D)(i) For individuals who initially become eligible for old-age insurance benefits (or who die before becoming eligible for such benefits) in any calendar year after 2011, the primary insurance amount computed under this paragraph shall be the
product derived by multiplying such amount as computed under the preceding subparagraphs of this paragraph the applicable number of times by 0.995.
`(ii) For purposes of the clause (i), the term `applicable number of times' means a number equal to the number of years beginning with 2012 and ending with the earlier of the year of initial eligibility (or death) or 2045.'.
(b) STUDY OF THE EFFECT OF INCREASES IN LIFE EXPECTANCY-
(1) STUDY PLAN- Not later than February 15, 2001, the Commissioner of Social Security shall submit to Congress a detailed study plan for evaluating the effects of increases in life expectancy on the expected level of retirement income from so
cial security, pensions, and other sources. The study plan shall include a description of the methodology, data, and funding that will be required in order to provide to the Congress not later than February 15, 2006--
(A) an evaluation of trends in mortality and their relationship to trends in health status, 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 eligibility for such benefits and among individuals receiving such benefits, and of the factors that influence the choice between retirement and partic
ipation 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 occupat
ions;
(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 individuals receiving such benefits; and
(E) an evaluation of such other matters as the Commissioner deems appropriate for evaluating the effects of increases in life expectancy.
(2) REPORT ON RESULTS OF STUDY- Not later than February 15, 2006, the Commissioner of Social Security shall provide to the Congress an evaluation of the implications of the trends studied under paragraph (1), along with recommendations, if an
y, of the extent to which the conclusions of such evaluations indicate that projected increases in life expectancy require modification in the disability insurance program under title II of the Social Security Act and other income support programs.
SEC. 12. MECHANISM FOR REMEDYING UNFORESEEN 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 ei
ther 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 adjustme
nts 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 a
mount 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 hav
e 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 reviewin
g 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 wi
th 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 H
ouse.
`(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) introd
uced 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 tra
nsmits 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 or
der (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 whi
ch 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 an
d 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 orde
r. 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 sha
ll 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 mot
ion 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 decid
ed 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 o
n 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 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 inserting `or (b)' after `subsection (a)'.
END