110 HR 1090 IH: Social Security Guarantee Plus Act of 2007
U.S. House of Representatives
2007-02-15
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of
contents
(a)This Act may be cited as the Social Security Guarantee Plus Act of
2007
.
(b)The table of contents is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and statement of purpose.
Title I—Social Security Guarantee Program
Sec. 101. Social Security guarantee refundable
credit.
Sec. 3511. Social Security guarantee refundable
credit.
Sec. 102. Establishment of the Social Security Guarantee
Program.
Part A—Insurance benefits
Part B—Social Security Guarantee Program
Sec. 251. Definitions.
Sec. 252. Establishment of Program.
Sec. 253. Social Security guarantee accounts.
Sec. 254. Investment of accounts.
Sec. 255. Determination of monthly annuity amounts and use in
determining account distribution supplements.
Sec. 256. Disposition of account assets.
Sec. 257. Administration of the
Program.
Sec. 103. Benefit increases.
Sec. 104. Tax treatment.
Sec. 2059. Social Security guarantee
accounts.
Sec. 105. Annual account statements.
Sec. 106. Protection of social security
surpluses.
Sec. 316. Lock-box for social security
surpluses.
Title II—Benefit updates
Sec. 201. Elimination of the Social Security earnings test for
individuals who have attained age 62.
Sec. 202. Increase in widow’s and widower’s insurance
benefits.
Sec. 203. Benefits for disabled widows and widowers without
regard to age.
Sec. 204. Repeal of 7-YEAR restriction on eligibility for
widow’s and widower’s insurance benefits based on disability.
Sec. 205. Exemption from two-year waiting period for divorced
spouse’s benefits upon other spouse’s remarriage.
Sec. 206. Increase in amount of wages and self-employment
income credited to years taken into account in determining average indexed
monthly earnings for beneficiaries precluded from remunerative work by need to
provide child care.
Sec. 207. Government pension offset reduced from two-thirds to
one-third of the Government pension.
2.Findings and
statement of purpose
(a)The
Congress finds as follows:
(1)The Social
Security program provides essential income security for about 48 million
Americans of all ages through its retirement, disability, and survivor
benefits.
(2)Social Security’s
benefit structure is designed to help lower-wage workers, and its family
benefits are of particular importance to women.
(3)The Board of
Trustees of the Social Security trust funds project that, because people are
living longer, families are having fewer children, and the baby boom generation
is approaching retirement, the Social Security program’s benefit costs will
exceed its tax revenues beginning in 2017. By 2040, the Social Security trust
funds will be depleted and the program will be able to honor only 74 percent of
benefit commitments, and even less thereafter.
(4)Each payday,
American workers send their hard-earned payroll taxes to Social Security and in
return are promised protection for themselves and their families upon
retirement, disability, or death. That commitment must be kept.
(5)Reducing benefits
will result in more seniors and individuals with disabilities living in
poverty.
(6)Workers who are
more in need of early retirement, such as police officers, firefighters, and
manual laborers, would be especially harmed by increases in the age of
eligibility for Social Security benefits.
(7)Inasmuch as
payroll taxes already constitute the single largest tax burden for most
American families, further tax increases would contribute to erosion in public
support for Social Security and would not result in sustainable financing for
the long term.
(8)Allowing the
Federal Government to invest workers’ payroll taxes in private financial assets
risks political interference in investment decisions and may reduce economic
efficiency.
(9)Workers’ ability
to save and invest for their own economic security in retirement will continue
to be particularly important, especially for younger workers.
(10)The creation of
Social Security guarantee accounts as provided for in this Act is a critical
goal in light of Social Security’s financial challenges, the options available
to address these challenges, and the Nation’s interest in preserving and
strengthening Social Security for the next 75 years and beyond.
(b)The purpose of this Act is to preserve and strengthen the
Social Security program through the creation of Social Security guarantee
accounts that will—
(1)ensure the payment
of Social Security benefits promised under current law, or greater benefits, to
all eligible workers and their families;
(2)provide for the
long-run sustainability of the Social Security program; and
(3)provide personal
account assets to be used exclusively for the financial security of the account
holder and his or her family that this and future Congresses cannot redirect
for any other purpose.
<enum>I</enum><header>Social Security
Guarantee Program</header>
<section id="HFA8FBE0A47B44878A126EF1551100D"><enum>101.</enum><header>Social Security
guarantee refundable credit</header>
<subsection id="H985BE7B82A2245149690452400CDF681"><enum>(a)</enum><header>In
general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/25">Chapter 25</external-xref> of the Internal Revenue Code of 1986 (relating
to general provisions relating to employment taxes) is amended by adding at the
end the following new section:</text>
<quoted-block id="HE41E9C9386E543158B02A22E49BDA23">
<section id="H13E4EF1B9E924DBCA36EE2DAC09472EA"><enum>3511.</enum><header>Social
Security guarantee refundable credit</header>
<subsection id="HD75AB9F0D0EB43368CF124E09FA2EEED"><enum>(a)</enum><header>In
general</header><text>The Social Security guarantee account established under
section 253 of the <act-name parsable-cite="SSA">Social Security Act</act-name>
for each individual who has filed an election under section 253(b) of such Act
shall receive for each calendar year following such election, during which such
individual has earned wages or to which self-employment income of such
individual is credited, a payment equal to the credit amount determined under
subsection (b) for the individual for such calendar year.</text>
</subsection><subsection id="HA5427C99C573410F9939134D4ED46454"><enum>(b)</enum><header>Credit
amount</header>
<paragraph id="HFD4D56D446414CBBA0FFB6060091BBAF"><enum>(1)</enum><header>In
general</header><text>For purposes of subsection (a), the credit amount
determined under this subsection for an individual for a calendar year is an
amount equal to the lesser of—</text>
<subparagraph id="H52414CE6D2A141629C6297966C61D316"><enum>(A)</enum><text>4 percent of the
sum of—</text>
<clause id="H014FB4087C75415400ED785021BCE340"><enum>(i)</enum><text>wages (as defined
in section 3121(a)) received by such individual during such year on which tax
is imposed by section 3101, and</text>
</clause><clause id="H24BAB73651414267AABE02D9CD9C289"><enum>(ii)</enum><text>self-employment
income (as defined in 1402(b)) of such individual for the taxable year of such
individual ending in such calendar year on which tax is imposed by section
1401, or</text>
</clause></subparagraph><subparagraph id="H887B60F7336F48AF90ACCD0006B74122"><enum>(B)</enum><text>$1,000 (in the
case of the calendar year ending after the date of the enactment of the
<short-title>Social Security Guarantee Plus Act of
2007</short-title>) and the amount determined under paragraph (2) for the
calendar year (in the case of subsequent calendar years).</text>
</subparagraph></paragraph><paragraph id="H0467F3C894D449B5964441E4F8D239EE"><enum>(2)</enum><header>Wage-based
adjustments</header><text>The Secretary shall, on or before November 1 of the
first calendar year ending after the date of the enactment of the
<short-title>Social Security Guarantee Plus Act of
2007</short-title> and of every calendar year thereafter, determine and publish
in the Federal Register the dollar amount under paragraph (1)(B) for the
succeeding calendar year. Such amount shall be the larger of—</text>
<subparagraph id="HB54F83CBBAB64333A0F5973FBEE40087"><enum>(A)</enum><text>the amount in
effect in the calendar year in which the determination under this paragraph is
made, or</text>
</subparagraph><subparagraph id="H35B1816F7821426D8435D31F8FC61245"><enum>(B)</enum><text>the product of
$1,000 and the ratio of the national average wage index (as defined in section
209(k)(1) of the <act-name parsable-cite="SSA">Social Security Act</act-name>)
for the calendar year before the year in which the determination under this
paragraph is made to the national average wage index (as so defined) for the
first of the 2 calendar years preceding the calendar year ending after the date
of the enactment of the <short-title>Social Security
Guarantee Plus Act of 2007</short-title>,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">with such
product, if not a multiple of $10, being rounded to the next higher multiple of
$10 where such amount is a multiple of $5 but not of $10 and to the nearest
multiple of $10 in any other case.</continuation-text></paragraph></subsection><subsection id="H55E6DECDA96D45789B1F7800ECB1BDC0"><enum>(c)</enum><header>Special
rules</header>
<paragraph id="HE79E2AEAE50749EBBE8945E6684F45B1"><enum>(1)</enum><header>Agreements by
American employers of foreign affiliates</header><text>Any amounts paid
pursuant to an agreement under section 3121(l) (relating to agreements entered
into by American employers with respect to foreign affiliates) which are
equivalent to the taxes referred to in subsection (b)(1)(A) shall be treated as
taxes referred to in such subsection.</text>
</paragraph><paragraph id="HA3BD055F7E7B4F74895C28F4D60098D4"><enum>(2)</enum><header>Coordination
with special refund of Social Security taxes</header><text>For purposes of
subsection (b)(1)(A), tax imposed by section 3101 shall not include any taxes
to the extent the individual is entitled to a special refund of such taxes
under section 6413(c).</text>
</paragraph></subsection><subsection id="HF2CB1768B27B464FA1C4839C5722CE23"><enum>(d)</enum><header>Payment</header><text>Notwithstanding
any other provision of this title, the payment under subsection (a) shall be
paid only as provided in section 253 of the <act-name parsable-cite="SSA">Social Security
Act</act-name>.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HEEED9F0D24984F59924909D7D0ED6E44"><enum>(b)</enum><header>Conforming
amendment</header><text>The table of sections for chapter 25 of such Code is
amended by adding at the end the following new item:</text>
<quoted-block id="HBE1E021E1EDC4B0880D8371D407588E1" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 3511. Social Security guarantee
refundable
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2858A54D9AB64987988D008B952089DF"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
remuneration received, and net earnings for self-employment for services
performed, in calendar years ending after the date of the enactment of this
Act.</text>
</subsection></section><section id="HB03D394AD0514756B88F03C1EEEF6F5D"><enum>102.</enum><header>Establishment
of the Social Security Guarantee Program</header>
<subsection id="H854433EC10864F3BB4B29B610A1A4C7"><enum>(a)</enum><header>In
general</header><text>Title II of the <act-name parsable-cite="SSA">Social
Security Act</act-name> is amended—</text>
<paragraph id="H6C2044238E6448E3BE4C68AE284F0562"><enum>(1)</enum><text>by inserting
before section 201 the following:</text>
<quoted-block id="HE8FC6D335D17494F804774799EBC4C34" style="traditional">
<part id="H9BFBA1B21F8D49EA9BCAB28200A828B6"><enum>A</enum><header>Insurance
benefits</header>
</part><after-quoted-block>;</after-quoted-block></quoted-block>
<continuation-text continuation-text-level="paragraph">and</continuation-text></paragraph><paragraph id="H7AAE3DC25DAB497FB85F5F58C0B3E95"><enum>(2)</enum><text>by
adding at the end of such title the following new part:</text>
<quoted-block id="HF7059D641291411B90B4ED129ADDAE6" style="traditional">
<part id="HB52DD762EDBD429A81006700EC85C9B4"><enum>B</enum><header>Social Security
Guarantee Program</header>
<section id="H8241690F531942BAB0FE9F1E3EA008B"><enum>251.</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this part—</text>
<paragraph id="H03A0E1D7F5C84F369D070091659F25E4"><enum>(1)</enum><header>Covered
individual</header><text>The term <term>covered individual</term> means an
individual who has filed an election under section 253(b).</text>
</paragraph><paragraph id="HAF78E1E9923342619C7BF717D4119700"><enum>(2)</enum><header>Account
assets</header><text>The term <term>account assets</term> means, with respect
to a Social Security guarantee account, the total amount transferred to such
account, increased by earnings credited under this part and reduced by losses
and administrative expenses under this part.</text>
</paragraph><paragraph id="H6E8AF61EEFD44DF39539C05763151B03"><enum>(3)</enum><header>Certified
account manager</header><text>The term <term>certified account manager</term>
means a person who is certified under section 257(b).</text>
</paragraph><paragraph id="H9A8F0E6A671347B680C3052788096849"><enum>(4)</enum><header>Board</header><text>The
term <term>Board</term> means the Social Security Guarantee Board established
under section 257(a).</text>
</paragraph><paragraph id="H8D3341106861431DADAE876C29B73D4"><enum>(5)</enum><header>Commissioner</header><text>The
term <term>Commissioner</term> means the Commissioner of Social
Security.</text>
</paragraph><paragraph id="H22709728D4DF4A8BAF1DAA858168F4F8"><enum>(6)</enum><header>Program</header><text>The
term <term>Program</term> means the Social Security Guarantee Program
established under this part.</text>
</paragraph><paragraph id="H37CEE3CACB8B4502A45217E576788378"><enum>(7)</enum><header>Covered monthly
insurance benefit</header><text>The term <term>covered monthly insurance
benefit</term> means a monthly insurance benefit under section 202 or 223,
other than a child’s insurance benefit under section 202(d) of a child who has
not attained age 18 (or who is a full-time elementary or secondary school
student (as defined in section 202(d)(7)(A)) and has not attained age
19).</text>
</paragraph></section><section id="HD87278525AD049D088867E97F5009764"><enum>252.</enum><header>Establishment of
Program</header><text display-inline="yes-display-inline">There is hereby established a Social
Security Guarantee Program. The Program shall be governed by regulations which
shall be prescribed by the Social Security Guarantee Board. The Board, the
Executive Director appointed by the Board, the Commissioner, and the Secretary
of the Treasury shall consult with each other in issuing regulations relating
to their respective duties under this part. Such regulations shall provide for
appropriate exchange of information to assist them in performing their duties
under this part.</text>
</section><section id="H26C64C2B31164375B45FA4800785E5F"><enum>253.</enum><header>Social Security guarantee
accounts</header><subsection commented="no" display-inline="yes-display-inline" id="H1C809E968823472EB534BC55BB87EBA9"><enum>(a)</enum><header>Establishment of
accounts</header><text>Under regulations which shall be prescribed by the Board
in consultation with the Secretary of the Treasury—</text>
<paragraph id="H7325804F8F1D43B0A2EA37BBE26DD135"><enum>(1)</enum><text>the Board shall
establish a Social Security guarantee account for each covered individual (for
whom a Social Security guarantee account has not otherwise been established
under this part) upon initial receipt of a transfer under subsection (c) with
respect to such covered individual, and</text>
</paragraph><paragraph id="HE1E7849C8D894C599932EE8C00E213B1"><enum>(2)</enum><text>in any case
described in paragraph (2) of section 256(d), the Board shall establish a
Social Security guarantee account for the divorced spouse referred to in such
paragraph (2).</text>
</paragraph></subsection><subsection id="H785657541E2C480EBA52AB78E8A70059"><enum>(b)</enum><header>Election of
status as covered individual</header>
<paragraph id="HF0C2DE6753FD47ECBCD7831DA87CECE"><enum>(1)</enum><header>In
general</header><text>Any individual who has attained age 18 and has been
assigned a social security account number under section 205(c) may elect to be
a covered individual under this part upon filing an election under this
subsection in a form and manner which shall be prescribed in regulations of the
Commissioner of Social Security, in consultation with the Board. Such
regulations shall provide for the filing of such elections during regularly
scheduled intervals. Such an election shall be irrevocable and shall be
effective with respect to wages earned, and self-employment income derived, on
or after January 1 following the date of such filing.</text>
</paragraph><paragraph id="HC436DBF0702142B4B8A6705FFFAA54FB"><enum>(2)</enum><header>Requirements</header><text>An
election by an individual under this subsection is an election, filed with the
Commissioner, in such form and manner as shall be prescribed in regulations of
the Commissioner, consisting of a written and signed declaration of such
individual’s intention to become a covered individual under this part. The
Commissioner shall provide for immediate notification to the Board and the
Executive Director of such election.</text>
</paragraph></subsection><subsection id="HAFF0395C516A4B7AAC5DF53535EB6655"><enum>(c)</enum><header>Transfers of
Social Security guarantee refundable credits</header>
<paragraph id="H57D19CA4F4E94BF8BC77EBDFDB0029B"><enum>(1)</enum><header>In
general</header><text>Under regulations which shall be prescribed by the
Secretary of the Treasury in consultation with the Board, as soon as
practicable during the 1-year period after each calendar year, while minimizing
capital market distortions, the Secretary of the Treasury shall transfer to
each covered individual’s Social Security guarantee account, from amounts
otherwise available in the general fund of the Treasury, an amount equal to the
sum of—</text>
<subparagraph id="H61B9F71BC2C4405EA23FB100D52F3ED9"><enum>(A)</enum><text>the amount payable
to the covered individual’s Social Security guarantee account under section
3511 of the Internal Revenue Code of 1986 (relating to the Social Security
guarantee refundable credit) with respect to wages received during such
calendar year by the covered individual and self-employment income derived by
the covered individual during such individual’s taxable year ending in such
calendar year, and</text>
</subparagraph><subparagraph id="H4DD881DED44F464A8856A9BA5F8B6B5B"><enum>(B)</enum><text>deemed interest on
the amount determined under subparagraph (A) for the period commencing with
July 1 of such calendar year and ending with the date of the transfer, computed
at a rate equal to the average market yield (computed by the Managing Trustee
on the basis of market quotations as of the end of the calendar month next
preceding the date of the transfer) on all marketable interest-bearing
obligations of the United States then forming a part of the public debt which
are not due or callable earlier than 4 years after the end of such calendar
month (rounding any average market yield computed under this paragraph which is
not a multiple of <fraction>1/8</fraction> of 1 percent to the nearest multiple
of <fraction>1/8</fraction> of 1 percent).</text>
</subparagraph></paragraph><paragraph id="HCC4CF9B72C4E42D5B3C22CC9A3BB9F70"><enum>(2)</enum><header>Transition
rule</header><text>Notwithstanding paragraph (1), amounts payable to Social
Security guarantee accounts under paragraph (1) with respect to the first
calendar year described in paragraph (1)(A) ending after the date of the
enactment of the <short-title>Social Security Guarantee
Plus Act of 2007</short-title> shall be paid by the Secretary of the Treasury
as soon as practicable after such Secretary determines that the administrative
mechanisms necessary to provide for accurate and efficient payment of such
amounts have been established.</text>
</paragraph><paragraph id="HE43DEA0CA7ED4FC1A04851CFD0008BFC"><enum>(3)</enum><header>Availability of
Trust Funds for transfers</header>
<subparagraph id="H9AEEBB310E384FD98F4F3749C88427EF"><enum>(A)</enum><header>Recommendations
by Managing Trustee</header><text>As determined appropriate from time to time
by the Managing Trustee of the Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust Fund, the Managing Trustee
shall transmit to each House of the Congress the Managing Trustee’s
recommendation that amounts to be transferred to Social Security guarantee
accounts under paragraph (1) be transferred from such Trust Funds in lieu of
the general fund. Any such recommendation shall take effect only upon
ratification thereof by an Act of Congress.</text>
</subparagraph><subparagraph id="H227134BF3D344718A90029091E1642B8"><enum>(B)</enum><header>Determinations
of availability</header><text>The Managing Trustee may not determine that any
such transfer from the Trust Funds is appropriate at any time unless the
Managing Trustee has determined that amounts in such Trust Fund are available
at such time for such transfers. For purposes of this subparagraph, amounts in
either of the Trust Funds shall be considered to be available for such
transfers at any time only to the extent that the balance in such Trust Fund at
such time exceeds the best estimate of the Managing Trustee of the projected
withdrawals otherwise required from such Trust Fund during the next following
1-year period.</text>
</subparagraph><subparagraph id="H36D3FAAF97CD4E39859EFC5BDB1E0FA"><enum>(C)</enum><header>Assumptions</header><text>In
making recommendations under this paragraph, the Managing Trustee shall utilize
the intermediate actuarial assumptions utilized by the Board of Trustees of the
Trust Funds for its most recent annual report issued under section
201(c).</text>
</subparagraph><subparagraph id="HE8C002F9E7544B87995518373C070027"><enum>(D)</enum><header>Report on use of
Social Security surpluses</header><text>The Managing Trustee shall annually
prepare a report consisting of—</text>
<clause id="H1C5F506A49EC41AD96BF25608B576E41"><enum>(i)</enum><text>the Managing
Trustee’s determination of the extent to which amounts have been appropriated
from the Trust Funds under this paragraph in connection with Social Security
guarantee refundable credits under section 3511 of such Code, and</text>
</clause><clause id="H2F21322CA8C0482CBA47C100CF75819F"><enum>(ii)</enum><text>the Managing
Trustee’s recommendations, based on the Managing Trustee’s review of the
financial status of such Trust Funds, with respect to whether or to what extent
that portion of the taxes under chapters 2 and 21 of the Internal Revenue Code
of 1986 to which surpluses in the Trust Funds may be attributed should be
reduced or should be maintained so as to allow for continued appropriations
from the Trust Funds under this paragraph in connection with such
credits.</text>
</clause><continuation-text continuation-text-level="subparagraph">The
Board of Trustees of the Trust Funds shall include such report in the Board’s
annual report to the President and the Congress under section 201(c)(2).</continuation-text></subparagraph></paragraph></subsection><subsection id="HDAD83FA42D1540C28BB0642705342D4B"><enum>(d)</enum><header>Requirements for
accounts</header><text>The following requirements shall be met with respect to
each Social Security guarantee account:</text>
<paragraph id="H1D091BEBFC1D4A93BC4171CDB25F2BED"><enum>(1)</enum><text>Amounts
transferred to the account consist solely of amounts transferred pursuant to
this part.</text>
</paragraph><paragraph id="H70EEB3315C9D4BB3ADBF5E2833846FD4"><enum>(2)</enum><text>In accordance with
section 254, the account assets are held for purposes of investment under the
Program by a certified account manager designated by (or on behalf of) the
covered individual for whom such account is established under the
Program.</text>
</paragraph><paragraph id="H7D557205ECCD4EB893FB6BD79DA6F37"><enum>(3)</enum><text>Disposition of the
account assets is made solely in accordance with section 256.</text>
</paragraph></subsection><subsection id="H99574116160A4669A1D78BA02FCBDD4C"><enum>(e)</enum><header>Accounting of
receipts and disbursements under the Program</header><text>The Board shall
provide by regulation for an accounting system for purposes of this
part—</text>
<paragraph id="HA53BB491F2BE40179FFC764B56EFA94D"><enum>(1)</enum><text>which shall be
maintained by or under the Executive Director,</text>
</paragraph><paragraph id="HE8E6BF03371C48CEA517D9209E738389"><enum>(2)</enum><text>which shall
provide for crediting of earnings from, and debiting of losses and
administrative expenses from, amounts held in Social Security guarantee
accounts, and</text>
</paragraph><paragraph id="H68EBBAD78C154142007F043C2BE300ED"><enum>(3)</enum><text>under which
receipts and disbursements under the Program which are attributable to each
account are separately accounted for with respect to such account.</text>
</paragraph></subsection><subsection id="H17EF7351CB66473E99C51B764FA400C3"><enum>(f)</enum><header>Correction of
erroneous transfers</header><text>The Board, in consultation with the
Commissioner, shall provide by regulation rules similar to paragraphs (4)
through (7) and (9) of section 205(c) and section 205(g) with respect to the
correction of erroneous or omitted transfers of amounts to Social Security
guarantee accounts.</text>
</subsection></section><section id="H379D7723F15A427FB1783243B4AA17ED"><enum>254.</enum><header>Investment of
accounts</header><subsection commented="no" display-inline="yes-display-inline" id="HF77D674E5BA5494C8496FFE045EE586"><enum>(a)</enum><header>Designation of
certified account managers</header><text>Under the Program, a certified account
manager shall be designated by or on behalf of each covered individual to hold
for investment under this section such individual’s Social Security guarantee
account assets.</text>
</subsection><subsection id="HFBE34430277B434FA7BC1C00ECE15560"><enum>(b)</enum><header>Procedure for
designation</header><text>Any designation made under subsection (a) shall be
made in such form and manner as shall be prescribed in regulations prescribed
by the Board, following the initiation of an educational campaign as provided
in section 257(a)(3)(C). Such regulations shall provide for annual selection
periods during which covered individuals may make designations pursuant to
subsection (a). Designations made pursuant to subsection (a) during any such
period shall be irrevocable for the one-year period following such period,
except that such regulations shall provide for such interim designations as may
be necessitated by the decertification of a certified account manager. Such
regulations shall provide for such designations made by the Board on behalf of
a covered individual in any case in which a timely designation is not made by
the covered individual.</text>
</subsection><subsection id="H455C378D08E341A8AFDB27E237C1EAEA"><enum>(c)</enum><header>Investment
guidelines</header>
<paragraph id="HEDC50A92123349EB98BFC6ABFE424252"><enum>(1)</enum><header>In
general</header><text>For purposes of investment of amounts held in each Social
Security guarantee account, the Board shall provide by regulation for 3
investment options. Such options shall consist of the 60/40 investment option,
the 65/35 investment option, and the 70/30 investment option.</text>
</paragraph><paragraph id="HCBD59B37F03B43B199C337636B85AD0"><enum>(2)</enum><header>Alternative
investment options</header>
<subparagraph id="H5A4E1B73956147200001F015AD04806C"><enum>(A)</enum><header>The 60/40
investment option</header><text>Under the 60/40 investment option, amounts are
held in the Social Security guarantee account so as to ensure, to the maximum
extent practicable, that, of the total balance credited to the account and
available for investment (after allowing for administrative expenses)—</text>
<clause id="HC98723D7F5524D7893A58EE3003C4C76"><enum>(i)</enum><text>60
percent is invested in common stock as provided in paragraph (4), and</text>
</clause><clause id="H333CC689D12E4A95B5A33F9C47F9001B"><enum>(ii)</enum><text>40 percent is
invested in fixed income securities as provided in paragraph (5).</text>
</clause><continuation-text continuation-text-level="subparagraph">For
such purpose, certified account managers shall offer each account holder a
choice of one or more portfolios of each such type of investment. Except as
provided in an election under paragraph (3), amounts held in a Social Security
guarantee account shall be invested under the 60/40 investment option.</continuation-text></subparagraph><subparagraph id="H2AA45BB15A4640F283EB52A8BDABD656"><enum>(B)</enum><header>The 65/35
investment option</header><text>Under the 65/35 investment option, amounts are
held in the Social Security guarantee account so as to ensure, to the maximum
extent practicable, that, of the total balance credited to the account and
available for investment (after allowing for administrative expenses)—</text>
<clause id="H00A6FFF21CC5474DABB0273FB000F8C9"><enum>(i)</enum><text>65
percent is invested in common stock as provided in paragraph (4), and</text>
</clause><clause id="HF87550C2813C48BD90FCFE21A6AD06BF"><enum>(ii)</enum><text>35 percent is
invested in fixed income securities as provided in paragraph (5).</text>
</clause><continuation-text continuation-text-level="subparagraph">For
such purpose, certified account managers shall offer each account holder a
choice of one or more portfolios of each such type of investment.</continuation-text></subparagraph><subparagraph id="HD47FC4F4502B49498767E19B1DB9419"><enum>(C)</enum><header>The 70/30
investment option</header><text>Under the 70/30 investment option, amounts are
held in the Social Security guarantee account so as to ensure, to the maximum
extent practicable, that, of the total balance credited to the account and
available for investment (after allowing for administrative expenses)—</text>
<clause id="H50846C514ECD4D61849DA768B606BEF4"><enum>(i)</enum><text>70
percent is invested in common stock as provided in paragraph (4), and</text>
</clause><clause id="HBDF8757389FE4AB785DD92A6D69FA1EF"><enum>(ii)</enum><text>30 percent is
invested in fixed income securities as provided in paragraph (5).</text>
</clause><continuation-text continuation-text-level="subparagraph">For
such purpose, certified account managers shall offer each account holder a
choice of one or more portfolios of each such type of investment.</continuation-text></subparagraph></paragraph><paragraph id="HCD679477CC2C4026BADA607EAE192D95"><enum>(3)</enum><header>Elections among
investment options</header><text>Pursuant to any individual’s written election
filed in accordance with regulations of the Board during annual open seasons
specified in such regulations, the certified account manager of the
individual’s Social Security guarantee account shall, in accordance with such
regulations, provide for disinvestment and reinvestment of amounts held in the
account under any of the investment options described in paragraph (2) so as to
provide for investment of amounts held in the account in any of the other such
investment options specified in such election.</text>
</paragraph><paragraph id="HBF2D6A8D24F1401EBE6231406CCDEDEE"><enum>(4)</enum><header>Common stock
index requirements</header><text>The Board shall establish by regulation
standards which must be met by any portfolio of common stock selected for
investment of account assets as provided in subparagraph (A)(i), (B)(i), or
(C)(i) of paragraph (2), consistent with the requirement that such portfolio
replicate the performance of one or more common stock indices comprised of
common stock the aggregate market value of which is, in each case, a reasonably
broad representation of publicly held companies whose shares are traded on the
equity markets.</text>
</paragraph><paragraph id="H476866D3AFF046058E45F380DA74AE43"><enum>(5)</enum><header>Fixed income
securities requirements</header><text>The Board shall establish by regulation
standards which must be met by fixed income securities selected for investment
of account assets as provided in subparagraph (A)(ii), (B)(ii), or (C)(ii) of
paragraph (2). Amounts invested in fixed income securities by a certified
account manager under the Program shall be held in a portfolio which shall
consist of a diverse range of high-grade corporate bonds.</text>
</paragraph></subsection><subsection id="HF6D2D253B5FF4726B8FCEBA4143BFFCE"><enum>(d)</enum><header>Diversification
standards</header><text>The Board shall specify by regulation standards
governing investments under this section to ensure prudent diversification
among the investments under the Program.</text>
</subsection></section><section id="HBE57091A9D154B26849CA12149DC42F0"><enum>255.</enum><header>Determination of monthly annuity
amounts and use in determining account distribution
supplements</header><subsection commented="no" display-inline="yes-display-inline" id="HBDB12091200045E385D1BB19EE870269"><enum>(a)</enum><header>Monthly annuity
amounts</header>
<paragraph id="H66838A998EE84EB9917BD1ED6E113232"><enum>(1)</enum><header>In
general</header><text>In accordance with regulations of the Board meeting the
requirements of this section, the Commissioner shall determine a monthly
annuity amount in connection with such covered individual’s Social Security
guarantee account, for each month—</text>
<subparagraph id="HE8EFDE96008342679FEC6DABF2DEC29E"><enum>(A)</enum><text>which commences
after such individual becomes a covered individual,</text>
</subparagraph><subparagraph id="HEB98CA8C4AC649A8B400AF98ED4E100"><enum>(B)</enum><text>for which such
individual is entitled to a covered monthly insurance benefit under part A,
and</text>
</subparagraph><subparagraph id="HBF303D1E90DF414884F6E018E702D597"><enum>(C)</enum><text>which ends prior
to or with—</text>
<clause id="H0AA55A09433C4402A69DFFD5CAFC53F"><enum>(i)</enum><text>the
date of the covered individual’s death, or</text>
</clause><clause id="HD97BD2B6B5914AC692ED05B8F79FB586"><enum>(ii)</enum><text>if later, the
date of the death of the covered individual’s spouse (if any), except as
provided in regulations prescribed by the Board pursuant to paragraph
(5).</text>
</clause></subparagraph></paragraph><paragraph id="H9F58E1FF88E544E7896245F6D04E5485"><enum>(2)</enum><header>Amount</header><text>The
monthly annuity amount shall be equal to the amount which would be the initial
monthly payment under—</text>
<subparagraph id="HE54596A412984A9300A3FE2B8256E03E"><enum>(A)</enum><text>if the covered
individual is not married on such date, an immediate single life annuity for
the covered individual, or</text>
</subparagraph><subparagraph id="HAA9F1CF6890B48E6BD77CAA2EEF07738"><enum>(B)</enum><text>if the covered
individual is married on such date, an immediate annuity for the joint lives of
the covered individual and the covered individual’s spouse, together with a
survivor annuity to the one of them who survives the other of them for the life
of the survivor payable in monthly installments equal to
66<fraction>2/3</fraction> percent of the monthly payment of the annuity that
would be payable if both spouses remained alive,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">purchased
with the balance of the account (determined after payment of the initial lump
sum payment under section 256(c)).</continuation-text></paragraph><paragraph id="H8BF55A2D09AB43D19462CBB4B5B009F"><enum>(3)</enum><header>Assumptions</header><text>The
assumptions under this subsection include the probability of survival for
persons born in the same year as the covered individual (and the spouse, in the
case of a joint annuity), future projection of investment earnings based on
investment of the account assets in the 65/35 investment option under section
254(c)(2)(B), and expected price inflation. Determinations under this
subsection shall be made in accordance with regulations which shall be
prescribed by the Board, otherwise using generally accepted actuarial
assumptions, except that no differentiation shall be made in such assumptions
on the basis of sex, race, health status, or other characteristics other than
age.</text>
</paragraph><paragraph id="H91137EE9C3DD4B818116EEA7B3F2D95"><enum>(4)</enum><header>Adjustments based
on additional Social Security guarantee refundable credits</header><text>The
Board shall annually augment the monthly annuity amount in connection with each
Social Security guarantee account by an additional monthly annuity amount,
determined under this subsection on the basis of any additional transfer to the
account of a Social Security guarantee refundable credit for the year (plus
deemed interest) under section 253(c), after subtracting the amount of the
annual lump sum payment made from such account under section 256(c)(2).</text>
</paragraph><paragraph id="H8B7A1C3502C945618C40B4CA9F2E15C3"><enum>(5)</enum><header>Treatment of
changes in marital status and benefit eligibility after commencement of
entitlement to benefits</header><text>The Board shall provide by regulation for
recalculation or adjustment of the monthly annuity amount determined under this
subsection in connection with any covered individual’s Social Security
guarantee account so as to appropriately take into account any entry into
marriage or divorce or changes in eligibility for benefits.</text>
</paragraph></subsection><subsection id="H7927C3E9C68945ED946B77F9D87760DB"><enum>(b)</enum><header>Amount of
account distribution supplement</header><text>The Board shall determine for
each month the amount of the monthly account distribution supplement (if any)
in connection with a covered individual’s Social Security guarantee account and
shall certify such amount to the Commissioner so as to allow inclusion of such
supplement in each covered monthly insurance benefit payment pursuant to
section 202(z) or 223(k). The amount of the supplement for each benefit shall
be the excess (if any) of—</text>
<paragraph id="HFE5923B7E81443BF883EB973C5BD2ED0"><enum>(1)</enum><text>the sum of—</text>
<subparagraph id="H318417CB30294DA4A105ED448BFE8B7F"><enum>(A)</enum><text>the monthly
annuity amount in connection with such account, plus</text>
</subparagraph><subparagraph id="HE052098AB1B643B198508221A40097D3"><enum>(B)</enum><text>in the case of a
covered individual surviving a deceased spouse, a monthly amount which would be
the monthly equivalent of the survivor annuity described in subsection
(a)(2)(B) in connection with the Social Security guarantee account of the
deceased spouse, over</text>
</subparagraph></paragraph><paragraph id="H403792F395304AA2AF4B1E1D8D686DB5"><enum>(2)</enum><text>the amount of the
benefit (as determined before applying sections 202(z) and 223(k) and before
applying any reduction or deduction applicable under part A).</text>
</paragraph></subsection></section><section id="HBA9A3647E56E4E32BBE3A00000C2894C"><enum>256.</enum><header>Disposition of account
assets</header><subsection commented="no" display-inline="yes-display-inline" id="H70168DAA3F8546E9B36304E998347580"><enum>(a)</enum><header>In
general</header><text>Account assets with respect to covered individuals shall
be distributed solely as provided in this section.</text>
</subsection><subsection id="HC5CA588172F642C9B8925E472EB75340"><enum>(b)</enum><header>Account manager
transfers to the Trust Funds</header>
<paragraph id="H9B7AF2FB23E74F188DA7BAFB6487800"><enum>(1)</enum><header>In
general</header><text>In accordance with a schedule which shall be prescribed
in regulations of the Board, each certified account manager holding account
assets shall make account manager transfers to the Secretary of the Treasury.
Such Secretary shall immediately credit each such transfer to the Federal
Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance
Trust Fund, according to an appropriate distribution formula which shall be
prescribed in regulations of the Executive Director. The Executive Director
shall provide to the certified account manager timely information necessary to
carry out such account manager’s duties under this section.</text>
</paragraph><paragraph id="HD4E6FEE3E55D4BABA06FA187A5C09E34"><enum>(2)</enum><header>Determination of
amount of account manager transfer</header><text>The amount of each account
manager transfer due from a certified account manager for any period shall be
an amount equal to the sum of—</text>
<subparagraph id="HEC77E207AC714F6F89CB0585A1C7056C"><enum>(A)</enum><text>the aggregate
monthly annuity amount or amounts determined under paragraph (3) for the month
or months ending during such period in connection with the Social Security
guarantee accounts under the management of the certified account manager under
the Program, and</text>
</subparagraph><subparagraph id="HD97C8097CFA24641B46EDC71FBC6AF21"><enum>(B)</enum><text>the aggregate
monthly account remittance for such period described in paragraph (4) in
connection with such accounts.</text>
</subparagraph></paragraph><paragraph id="H496AD334EA5146AE8606421F9428FA7C"><enum>(3)</enum><header>Aggregate
monthly annuity amount</header><text>The aggregate monthly annuity amount for
any month in connection with the Social Security guarantee accounts under the
management of any certified account manager under the Program is equal to the
sum of all monthly annuity amounts in connection with such accounts, determined
under section 255.</text>
</paragraph><paragraph id="H12250FB70D43487CB7A398D8AA672F5B"><enum>(4)</enum><header>Aggregate
monthly account remittance</header><text>The aggregate monthly account
remittance for any month in connection with the Social Security guarantee
accounts under the management of any certified account manager under the
Program is equal to the sum of all the amounts required to be transferred
during such month from the certified account manager to the Secretary of the
Treasury for crediting to the Federal Old-Age and Survivors Insurance Trust
Fund or the Federal Disability Insurance Trust Fund under subsection (e)(2) in
connection with the deaths of covered individuals for whom such accounts were
established under this part.</text>
</paragraph><paragraph id="HCF5A293E9BF64706B93F04F318347254"><enum>(5)</enum><header>Withdrawals from
account balances for purposes of account manager transfers</header><text>In
advance of each account manager transfer required under this subsection to be
made by a certified account manager managing one or more Social Security
guarantee accounts under the Program, the Commissioner shall certify to the
Executive Director and to such certified account manager the monthly annuity
amount in connection with each such account for each month during the period
for which such transfer is to be made. At the time of such transfer, the
certified account manager may withdraw from the assets of each such account the
monthly annuity amount in connection with such account taken into account in
determining each of the aggregate monthly annuity amounts included in the
amount of the account manager transfer. Such withdrawn assets shall be
available to the certified account manager solely for purposes of making such
account manager transfer.</text>
</paragraph></subsection><subsection id="H42E6FF88237343C3BF8259EC446B7D10"><enum>(c)</enum><header>Lump sum
payments</header><text>Upon initial entitlement of a covered individual to
covered monthly insurance benefits under part A, such individual shall be
entitled to—</text>
<paragraph id="HD44FCC78C779456085145FB72B56C919"><enum>(1)</enum><text>an initial lump
sum payment, from such individual’s Social Security guarantee account, equal to
5 percent of the balance in such account, and</text>
</paragraph><paragraph id="H0AE5886304CB4FF8A4E3E392AFB6B156"><enum>(2)</enum><text>a lump sum payment
in connection with each subsequent transfer to such account (pursuant to
section 253(c)) of such individual’s social security guarantee refundable
credits for years beginning after commencement of such initial entitlement,
payable as soon as practicable after the transfer, equal to 5 percent of the
transferred amount (including deemed interest).</text>
</paragraph><continuation-text continuation-text-level="subsection">The
Executive Director shall certify to the certified account manager managing such
account the amount of each lump sum payment, and upon receipt of such
certification, the certified account manager shall transfer such certified
amount to the Secretary of the Treasury for subsequent transfer to the covered
individual. Such certification shall also include such information as may be
necessary to make each lump sum payment in a timely manner.</continuation-text></subsection><subsection id="HE36A8D1ACBF04CF3BFDA06D2D2E7E14"><enum>(d)</enum><header>Splitting of
account assets upon divorce after 1 year of marriage</header><text>Upon the
divorce of a covered individual for whom a Social Security guarantee account
has been established under this part, from a spouse to whom the covered
individual had been married for at least 1 year—</text>
<paragraph id="H274CA0461CD64567812D7E1FA31DD3D2"><enum>(1)</enum><text>if a Social
Security guarantee account has been established under this part for the
divorced spouse of the covered individual, the Board shall direct the
appropriate certified account manager to transfer—</text>
<subparagraph id="H41240DB8866343CABAABE0CEF3FF323"><enum>(A)</enum><text>from the Social
Security guarantee account with the greater amount of accruals (including
earnings) during the time of the marriage,</text>
</subparagraph><subparagraph id="H06799A86C59941A6A1821B02794096E5"><enum>(B)</enum><text>to the other such
account,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">an amount
equal to one-half of the difference between the amounts of such accruals in
such accounts, or</continuation-text></paragraph><paragraph id="HF149E8BC1C644463A3B9D35E1E6B2F2"><enum>(2)</enum><text>if a Social
Security guarantee account has not been established for the divorced spouse,
the Board shall establish a Social Security guarantee account for the divorced
spouse, and shall direct the appropriate certified account manager to
transfer—</text>
<subparagraph id="H116D36FD897A4DF1BAEF66F6EAF223AD"><enum>(A)</enum><text>from the Social
Security guarantee account of the covered individual,</text>
</subparagraph><subparagraph id="H16E3B5B953604F1383123952552F3E23"><enum>(B)</enum><text>to the Social
Security guarantee account of the divorced spouse,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">an amount
equal to one-half of the amount of accruals (including earnings) during the
time of the marriage in the Social Security guarantee account of the covered
individual.</continuation-text></paragraph><continuation-text continuation-text-level="subsection">In the
case of any transfer directed under this subsection, the Executive Director
shall certify to the appropriate certified account manager the information
necessary to make such transfer.</continuation-text></subsection><subsection id="H9F67E1303F044353A737F7D4925CBEC9"><enum>(e)</enum><header>Closing of
account upon the death of the covered individual</header>
<paragraph id="HEDDA52A0ADBD45A58E6EDA0000B32FE7"><enum>(1)</enum><header>Transfers upon
death before entitlement</header><text>Upon the death of a covered individual
before the individual has become entitled to covered monthly insurance
benefits, the Executive Director shall close out the covered individual’s
Social Security guarantee account. In closing out the account, the Executive
Director shall certify to the certified account manager the amount of the
account assets, and, upon receipt of such certification, such certified account
manager shall transfer from such account an amount equal to such certified
amount to the Secretary of the Treasury for subsequent transfer to the estate
of such covered individual.</text>
</paragraph><paragraph id="H7B149A20D273428E82D144BF10A3B68F"><enum>(2)</enum><header>Transfers upon
death after entitlement</header>
<subparagraph id="H7E8DF000C0EC4B20ABA9C53200B96546"><enum>(A)</enum><header>In
general</header><text>In any case in which the covered individual dies after
the individual has become entitled to covered monthly insurance benefits, the
Executive Director shall, except as provided in subparagraph (B), close out the
covered individual’s Social Security guarantee account upon such covered
individual’s death.</text>
</subparagraph><subparagraph id="H4E41D1315F3E494AA584A48DCDF73916"><enum>(B)</enum><header>Delayed closing
in the case of surviving spouse</header><text>If the covered individual was
married at the time of the covered individual’s death, the Executive Director
shall close out the covered individual’s Social Security guarantee account with
the close, upon the surviving spouse’s death, of the period to which the
survivor annuity portion of the monthly annuity amount in connection with such
account is applicable under section 255(a). The Board shall from time to time
propose to the Congress recommendations for legislative changes necessary to
provide for closing of the account in a manner and time consistent with
regulations prescribed pursuant to section 255(a)(5).</text>
</subparagraph><subparagraph id="H6DC586CB996F4355B0C508EF85DDE9A6"><enum>(C)</enum><header>Certification
and transfer to Trust Funds</header><text>In closing out the account, the
Executive Director shall certify to the certified account manager holding the
covered individual’s account assets the amount of the account assets, and such
certified account manager shall transfer an amount equal to such certified
amount to the Secretary of the Treasury for crediting to the Federal Old-Age
and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust
Fund, as determined appropriate under regulations of the Board.</text>
</subparagraph></paragraph></subsection><subsection id="HBD00FD3573144F0B8F8E2B65D5F626C"><enum>(f)</enum><header>Closing of
account of covered individuals who are ineligible for benefits upon attaining
Retirement Age</header><text>In any case in which, as of the date on which a
covered individual attains retirement age (as defined in section 216(l)), such
individual is not eligible for a covered monthly insurance benefit, the
Commissioner shall so certify to the Executive Director and, upon receipt of
such certification, the Executive Director shall close out the covered
individual’s Social Security guarantee account. In closing out the account, the
Executive Director shall certify to the certified account manager the amount of
the account assets, and upon receipt of such certification from the Executive
Director, the account manager shall transfer from such account an amount equal
to such certified amount to the Secretary of the Treasury for subsequent
transfer to the covered individual.</text>
</subsection><subsection id="HF59B279A28AF4EDB90FB706156C3077"><enum>(g)</enum><header>Administrative
expenses</header>
<paragraph id="H07D175299DB34470B9EE6D06580058F"><enum>(1)</enum><header>In
general</header><text>Under regulations which shall be prescribed by the Board,
account assets are available for payment of the reasonable administrative costs
of the Program (including reasonable administration fees charged by certified
account managers under the Program), but in no event to exceed 25 basis points
per year of the assets under management.</text>
</paragraph><paragraph id="HE03BEC9DE2114631AE70BB00004D7ED1"><enum>(2)</enum><header>Temporary
authorization of appropriations for startup administrative
costs</header><text>For any such administrative costs that remain after
applying paragraph (1) for each of the first five fiscal years that end after
the date of the enactment of this part, there are authorized to be appropriated
such sums as may be necessary for each of such fiscal years.</text>
</paragraph></subsection></section><section id="HBF97878DA7CE43F1932B283CF990CAF6"><enum>257.</enum><header>Administration of the
Program</header><subsection commented="no" display-inline="yes-display-inline" id="H33E4EC995ED8474B9C22007BD8087B37"><enum>(a)</enum><header>General
provisions</header>
<paragraph id="HCF2F3586E4D9447F877611228D97A023"><enum>(1)</enum><header>Establishment
and duties of the Social Security Guarantee Board</header>
<subparagraph id="HB11AFB3B0652473280DBBBDFFFE5D8"><enum>(A)</enum><header>Establishment</header><text>There
is established in the Social Security Administration a Social Security
Guarantee Board.</text>
</subparagraph><subparagraph id="HF0FBD245D5564C639F025F3501B6184F"><enum>(B)</enum><header>Membership</header><text>The
Board shall be composed of 6 members appointed by the Board of Trustees of the
Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability
Insurance Trust Fund. One member shall serve as Chairman, as designated by the
Board of Trustees. Members of the Board shall have substantial experience,
training, and expertise in the area of pension benefits, finance, investment,
or insurance.</text>
</subparagraph><subparagraph id="H0138413CA0C7480E9D16521C97DAC392"><enum>(C)</enum><header>Terms</header>
<clause id="H8C084A58091F408FABC8032FFA97B8E7"><enum>(i)</enum><header>In
general</header><text>A member of the Board shall be appointed for a term of 9
years, subject only to removal by the Board of Trustees for cause, except that
of the members first appointed—</text>
<subclause id="HDD192C1569A34F9898D1DF93884BBB55"><enum>(I)</enum><text>two shall be
appointed for a term of 3 years;</text>
</subclause><subclause id="H0DAD631A27DA447EBE9D5FA55B21C5AB"><enum>(II)</enum><text>two shall be
appointed for a term of 6 years; and</text>
</subclause><subclause id="H21F6800B58E24EBBAAF7DDD778C2A3DD"><enum>(III)</enum><text>two shall be
appointed for a term of 9 years.</text>
</subclause></clause><clause id="H563CFE23723F40DC8EAEB262285B9D9B"><enum>(ii)</enum><header>Vacancies</header><text>A
vacancy on the Board shall be filled in the manner in which the original
appointment was made and shall be subject to any conditions which applied with
respect to the original appointment. An individual chosen to fill a vacancy
shall be appointed for the unexpired term of the member replaced. The term of
any member shall not expire before the date on which the member’s successor
takes office.</text>
</clause></subparagraph><subparagraph id="H585D840D614340CC804817CD339B75D3"><enum>(D)</enum><header>Powers and
duties of the Board</header>
<clause id="H0E04D818AE204A99835BCABBF0606121"><enum>(i)</enum><header>In
general</header><text>The Board shall have powers and duties solely as provided
in this part. The Board shall prescribe by regulation the terms of the Social
Security Guarantee Program established under this part, including policies for
investment under the Program of account assets, and policies for the
certification and decertification of account managers under the Program, which
shall include consideration of the appropriateness of the marketing materials
and plans of such person.</text>
</clause><clause id="HE8A72D1190E542E58F65DDB493F7F85F"><enum>(ii)</enum><header>Budgetary
requirements</header><text>The Board shall prepare and submit to the President
and to the appropriate committees of Congress an annual budget of the expenses
and other items relating to the Board which shall be included as a separate
item in the budget required to be transmitted to the Congress under section
1105 of title 31, United States Code. The Board shall provide for low
administrative costs such that, to the extent practicable, overall
administrative costs of the Program do not exceed 25 basis points in relation
to assets under management under the Program.</text>
</clause></subparagraph><subparagraph id="H9929462DDED24493A0E17DD3DE3815D"><enum>(E)</enum><header>Additional
authorities of the Board</header><text>The Board may—</text>
<clause id="HE2F37C8A35DB4D108300F1711999FF11"><enum>(i)</enum><text>adopt, alter, and
use a seal;</text>
</clause><clause id="H806E97D78DA344EEBD9D5FCE602E6698"><enum>(ii)</enum><text>establish
policies with which the Commissioner shall comply under this part; and</text>
</clause><clause id="HD04332A746AF4029909C14C5231B00CA"><enum>(iii)</enum><text>appoint and
remove the Executive Director, as provided in paragraph (2).</text>
</clause></subparagraph><subparagraph id="H6EDC90BE4ACB46C989A39C706C2100B2"><enum>(F)</enum><header>Independence of
certified account managers</header><text>The policies of the Board may not
require a certified account manager to invest or to cause to be invested any
account assets in a specific asset or to dispose of or cause to be disposed of
any specific asset so held.</text>
</subparagraph><subparagraph id="HD111CBAA5FF74CC0BFDA7400485E94AB"><enum>(G)</enum><header>Meetings of the
Board</header><text>The Board shall meet at the call of the Chairman or upon
the request of a quorum of the Board. The Board shall perform the functions and
exercise the powers of the Board on a majority vote of a quorum of the Board.
Four members of the Board shall constitute a quorum for the transaction of
business.</text>
</subparagraph><subparagraph id="H4FB3AC7DCDB64EE782FDFCECB5251F3"><enum>(H)</enum><header>Compensation of
Board members</header>
<clause id="H9216C6115551424D86A272DD88E7A793"><enum>(i)</enum><header>In
general</header><text>Each member of the Board who is not an officer or
employee of the Federal Government shall be compensated at the daily rate of
basic pay for level I of the Executive Schedule for each day during which such
member is engaged in performing a function of the Board. Any member who is such
an officer or employee shall not suffer any loss of pay or deduction from
annual leave on the basis of any time used by such member in performing such a
function.</text>
</clause><clause id="HD4C07608255C4EDF8B50C45F72B42C0"><enum>(ii)</enum><header>Travel, per
diem, and expenses</header><text>A member of the Board shall be paid travel,
per diem, and other necessary expenses under subchapter I of chapter 57 of
title 5, United States Code, while traveling away from such member’s home or
regular place of business in the performance of the duties of the Board.</text>
</clause></subparagraph><subparagraph id="H8FD38CCA7B29419BA002032C26417F50"><enum>(I)</enum><header>Standard for
board’s discharge of responsibilities</header><text>The members of the Board
shall discharge their responsibilities solely in the interest of covered
individuals and the Program.</text>
</subparagraph><subparagraph id="HE082AABAC53B49A99660CE66AB16ABA6"><enum>(J)</enum><header>Annual
report</header><text>The Board shall submit an annual report to the President,
to each House of the Congress, and to the Board of Trustees of the Federal
Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance
Trust Fund regarding the financial and operating condition of the
Program.</text>
</subparagraph><subparagraph id="H2FDE950D54404A6FB7ABF840AB7226FF"><enum>(K)</enum><header>Public
accountant</header>
<clause id="H9B005CB41CB04E69866CE5C6A6DCF9B3"><enum>(i)</enum><header>Definition</header><text>For
purposes of this subparagraph, the term <term>qualified public
accountant</term> shall have the same meaning as provided in section
103(a)(3)(D) of the <act-name parsable-cite="ERISA">Employee Retirement Income
Security Act of 1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/29/1023">29 U.S.C. 1023(a)(3)(D)</external-xref>).</text>
</clause><clause id="H7B7476909DBC43E38397BEEFD9BF49E2"><enum>(ii)</enum><header>Engagement</header><text>The
Executive Director, in consultation with the Board, shall annually engage, on
behalf of all individuals for whom a Social Security guarantee account is
established under this part, an independent qualified public accountant, who
shall conduct an examination of all records maintained in the administration of
this part that the public accountant considers necessary.</text>
</clause><clause id="H857FFF852E094B5CA4C0A9CDE72DCB82"><enum>(iii)</enum><header>Duties</header><text>The
public accountant conducting an examination under clause (ii) shall determine
whether the records referred to in such clause have been maintained in
conformity with generally accepted accounting principles. The public accountant
shall transmit to the Board a report on his examination.</text>
</clause><clause id="H2A00FE69962A4A949CF6D4B610A61FA6"><enum>(iv)</enum><header>Reliance on
certified actuarial matters</header><text>In making a determination under
clause (iii), a public accountant may rely on the correctness of any actuarial
matter certified by an enrolled actuary if the public accountant states his
reliance in the report transmitted to the Board under such clause.</text>
</clause></subparagraph></paragraph><paragraph id="H3D23424430874AAC9370BD784B136D41"><enum>(2)</enum><header>Executive
Director</header>
<subparagraph id="HAAD3AC1319DE4E2DB36D5FD35D00FB4F"><enum>(A)</enum><header>Appointment and
removal</header><text>The Board shall appoint, without regard to the provisions
of law governing appointments in the competitive service, an Executive Director
by action agreed to by a majority of the members of the Board. The Executive
Director shall have substantial experience, training, and expertise in the
management of financial investments and pension benefit plans. The Board may,
with the concurrence of 4 members of the Board, remove the Executive Director
from office for good cause shown.</text>
</subparagraph><subparagraph id="HCBE8BC8EAD9D44E695EF7B51A68E376"><enum>(B)</enum><header>Powers and duties
of Executive Director</header><text>The Executive Director shall—</text>
<clause id="H27B1F78D57DF419094A8470099FDA1D"><enum>(i)</enum><text>carry out the
policies established by the Board,</text>
</clause><clause id="H856363D1E00F40BCBE8E7C6360EFDFA9"><enum>(ii)</enum><text>administer the
provisions of this part in accordance with the policies of the Board,</text>
</clause><clause id="HC06F6F5351B8488B94DA3FC1135C4F65"><enum>(iii)</enum><text>in consultation
with the Board, prescribe such regulations (other than regulations relating to
fiduciary responsibilities) as may be necessary for the administration of this
part, and</text>
</clause><clause id="H1423194CB1CE4D2A94B5D13C37834DBE"><enum>(iv)</enum><text>meet from time to
time with the Board upon request of the Board.</text>
</clause></subparagraph><subparagraph id="H12D23ED64DCB4D1790F6FCF145003ED2"><enum>(C)</enum><header>Administrative
authorities of Executive Director</header><text>The Executive Director
may—</text>
<clause id="H377B196E5ED34E3DB7A9B848AC16F999"><enum>(i)</enum><text>appoint such
personnel as may be necessary to carry out the provisions of this part,</text>
</clause><clause id="HAD733C761EAF44B99699B184DEDD43EE"><enum>(ii)</enum><text>subject to
approval by the Board, procure the services of experts and consultants under
<external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109</external-xref> of title 5, United States Code,</text>
</clause><clause id="HFEC15411C09E4D1FAA8842D9ACE3D3A8"><enum>(iii)</enum><text>secure directly
from any agency or instrumentality of the Federal Government any information
which, in the judgment of the Executive Director, is necessary to carry out the
provisions of this part and the policies of the Board, and which shall be
provided by such agency or instrumentality upon the request of the Executive
Director,</text>
</clause><clause id="H4B40F4416B494FB4B2291470EC5CC292"><enum>(iv)</enum><text>pay the
compensation, per diem, and travel expenses of individuals appointed under
clauses (i), (ii), and (v) of this subparagraph, subject to such limits as may
be established by the Board,</text>
</clause><clause id="H47D6E164F37240BD00268DEF25E0075"><enum>(v)</enum><text>accept and use the
services of individuals employed intermittently in the Government service and
reimburse such individuals for travel expenses, as authorized by section 5703
of title 5, United States Code, including per diem as authorized by section
5702 of such title, and</text>
</clause><clause id="H72B79F9DCE5F4043A4D4ADF57FFCCB48"><enum>(vi)</enum><text>except as
otherwise expressly prohibited by law or the policies of the Board, delegate
any of the Executive Director’s functions to such employees under the Board as
the Executive Director may designate and authorize such successive
redelegations of such functions to such employees under the Board as the
Executive Director may consider to be necessary or appropriate.</text>
</clause></subparagraph></paragraph><paragraph id="H21DB340C4AF6474A9CCD200977C60047"><enum>(3)</enum><header>Role of the
Commissioner of Social Security</header><text>The Commissioner shall—</text>
<subparagraph id="HE1E5EA3213A1470A921F5CDCFB03134"><enum>(A)</enum><text>prescribe such
regulations (supplementary to and consistent with the regulations prescribed by
the Board and the Executive Director) as may be necessary for carrying out the
duties of the Commissioner under this part,</text>
</subparagraph><subparagraph id="HE326C4D8AB914912B9E2346C4F3FA83B"><enum>(B)</enum><text>meet from time to
time with, and provide information to, the Board upon request of the Board
regarding matters relating to the Social Security Guarantee Program, and</text>
</subparagraph><subparagraph id="HFCDC05331183414888A7404E4CF6E01E"><enum>(C)</enum><text>in consultation
with the Board and utilizing available Federal agencies and resources, develop
a campaign to educate workers about the Program.</text>
</subparagraph></paragraph></subsection><subsection id="H0C8144B2DABF4324BD6584A62BD0D100"><enum>(b)</enum><header>Certification
and oversight of account managers</header>
<paragraph id="H502D8C3D98AE49EBAB025E47BC29CB74"><enum>(1)</enum><header>Certification by
the Board</header>
<subparagraph id="H9DE7B06C16F842CEB99220C3639E8CE2"><enum>(A)</enum><header>In
general</header><text>Any person that is a qualified professional asset manager
(as defined in <external-xref legal-doc="usc" parsable-cite="usc/5/8438">section 8438(a)(8)</external-xref> of title 5, United States Code) may apply to
the Board (in such form and manner as shall be provided by the Board by
regulation) for certification under this subsection as a certified account
manager. In making certification decisions, the Board shall consider the
applicant’s general character and fitness, financial history and future
earnings prospects, and ability to serve covered individuals under the Program,
and such other criteria as the Board deems necessary to carry out this part.
Certification of any person under this subsection shall be contingent upon
entry into a contractual arrangement between the Board and such person.</text>
</subparagraph><subparagraph id="H88D24F1710D448AAA0503DED2B259F44"><enum>(B)</enum><header>Nondelegation
requirement</header><text>The authority of the Board to make any determination
to deny any application under this subsection may not be delegated by the
Board.</text>
</subparagraph></paragraph><paragraph id="HE58C6EA8DC38405EA0F41B42459FF00"><enum>(2)</enum><header>Oversight of
certified account managers</header>
<subparagraph id="H6E45AE59D12D473CA128D4A23E619700"><enum>(A)</enum><header>Role of
regulatory agencies</header><text>The Board may enter into cooperative
arrangements with Federal and State regulatory agencies identified by the Board
as having jurisdiction over persons eligible for certification under this
subsection so as to ensure that the provisions of this part are enforced with
respect to certified account managers in a manner consistent with and
supportive of the requirements of other provisions of Federal law applicable to
them. Such Federal regulatory agencies shall cooperate with the Board to the
extent that the Board determines that such cooperation is necessary and
appropriate to ensure that the provisions of this part are effectively
implemented.</text>
</subparagraph><subparagraph id="H42F5A4E0E93F452B9FA6AB11007632A6"><enum>(B)</enum><header>Access to
records</header><text>The Board may from time to time require any certified
account manager to file such reports as the Board may specify by regulation as
necessary for the administration of this part. In prescribing such regulations,
the Board shall minimize the regulatory burden imposed upon certified account
managers while taking into account the benefit of the information to the Board
in carrying out its functions under this part.</text>
</subparagraph></paragraph><paragraph id="H7062E032E8B44C29B299B57A295F662"><enum>(3)</enum><header>Revocation of
certification</header><text>The Board shall provide, in the contractual
arrangements entered into under this subsection with each certified account
manager, for revocation of such person’s status as a certified account manager
upon determination by the Board of such person’s failure to comply with the
requirements of such contractual arrangements. Such arrangements shall include
provision for notice and opportunity for review of any such revocation.</text>
</paragraph></subsection><subsection id="H0839C29FAC2C488F00B5EF1B3151A4A4"><enum>(c)</enum><header>Fiduciary
responsibilities</header>
<paragraph id="HE3407F0B78824BF992A4C68B5F39224E"><enum>(1)</enum><header>In
general</header><text>Rules similar to the provisions of section 8477 of title
5, United States Code (relating to fiduciary responsibilities; liability and
penalties) shall apply in connection with account assets, in accordance with
regulations which shall be issued by the Board. The Board shall issue
regulations with respect to the investigative authority of appropriate Federal
agencies in cases involving account assets.</text>
</paragraph><paragraph id="H4450A75F427645A3A479246810F38ED"><enum>(2)</enum><header>Exculpatory
provisions voided</header><text>Any provision in an agreement or instrument
which purports to relieve a fiduciary from responsibility or liability for any
responsibility, obligation, or duty under this part shall be void.</text>
</paragraph></subsection><subsection id="HEE2C95F0491E46E991C2F0076489EF38"><enum>(d)</enum><header>Civil actions by
Board</header><text>If any person fails to meet any requirement of this part or
of any contract entered into under this part, the Board may bring a civil
action in any district court of the United States within the jurisdiction of
which such person’s assets are located or in which such person resides or is
found, without regard to the amount in controversy, for appropriate relief to
redress the violation or enforce the provisions of this part, and process in
such an action may be served in any district.</text>
</subsection><subsection id="H50A0A83F71294DABAA3DBE05F836A8E9"><enum>(e)</enum><header>Preemption of
inconsistent State law</header><text>A provision of this part shall not be
construed to preempt any provision of the law of any State or political
subdivision thereof, or prevent a State or political subdivision thereof from
enacting any provision of law with respect to the subject matter of this part,
except to the extent that such provision of State law is inconsistent with this
part, and then only to the extent of the
inconsistency.</text>
</subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H9A1E4052F8CB4E4B8D3E0067F7F4B43"><enum>(b)</enum><header>Conforming
amendments</header><paragraph commented="no" display-inline="yes-display-inline" id="H712B1A99CBD84D0DA01D81CF2163B0F7"><enum>(1)</enum><text>Section 701(b) of the
<act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/901">42 U.S.C. 901(b)</external-xref>)
is amended by striking <quote>title II</quote> and inserting <quote>part A of
title II, the Social Security Guarantee Program under part B of title
II,</quote>.</text>
</paragraph><paragraph id="HE58B47B069F346F89100E709E8C57BA" indent="up1"><enum>(2)</enum><text>Section 702(a)(4) of the
<act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.
902(a)(4)) is amended by inserting <quote>other than those of the Social
Security Guarantee Board</quote> after <quote>Administration</quote>, and by
striking <quote>thereof</quote> and inserting <quote>of the Administration in
connection with the exercise of such powers and the discharge of such
duties</quote>.</text>
</paragraph></subsection></section><section id="H4B106E6067B24437AA006FA87CBC202D"><enum>103.</enum><header>Benefit
increases</header>
<subsection id="H2FD525247DD64C5BA8001874766290BC"><enum>(a)</enum><header>Old-age
insurance benefits and other benefits under Section 202</header><text>Section
202 of the <act-name parsable-cite="SSA">Social Security Act</act-name> (42
U.S.C. 402) is amended by adding at the end the following new
subsection:</text>
<quoted-block act-name="Social Security Act" id="HABC50E148CDD427EB9C5E1578D073FDE" other-style="archaic" style="other">
<subsection id="H01B2AE089C2C40FBBAD06CAE68AAC3EC"><enum>(z)</enum><header>Account distribution supplements</header><text>Each monthly
insurance benefit under this section (after application of any reduction or
deduction applicable under this section or under any other provision of this
part) shall be increased by the amount of the account distribution supplement
determined for such benefit under section
255.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H9B3CF8CC14C544CFBB20DDFEF25C82F9"><enum>(b)</enum><header>Disability
insurance benefits</header><text>Section 223 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/423">42 U.S.C. 423</external-xref>) is
amended by adding at the end the following new subsection:</text>
<quoted-block id="HB9E2FE133D634981A29BC25FF9DD8D5E" other-style="archaic" style="other"><subsection id="H28350C4016D04445ACFD17923DCEC385"><enum>(k)</enum><header>Account distribution
supplements</header><text>Each monthly
insurance benefit under this section (after application of any reduction or
deduction applicable under this part) shall be increased by the amount of the
account distribution supplement determined for such benefit under section
255.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H4CF5E29C82FF4C57969EDBE600A1E8F"><enum>104.</enum><header>Tax
treatment</header>
<subsection id="HC6DB70EE941C459994E3D7E138F62929"><enum>(a)</enum><header>Tax treatment of
Social Security guarantee accounts</header><text>Section 7701 of the Internal
Revenue Code of 1986 (relating to definitions) is amended by redesignating
subsection (p) as subsection (q) and by inserting after subsection (o) the
following new subsection:</text>
<quoted-block id="H198FB681909C4844B129B35F6833FD13">
<subsection id="H91393926D4D94A39A63EE94F2CFE0009"><enum>(p)</enum><header>Tax treatment of
Social Security guarantee accounts</header><text>All Social Security guarantee
accounts established under part B of title II of the
<act-name parsable-cite="SSA">Social Security Act</act-name> shall be exempt
from taxation under this
title.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0FEEEC8A0FDE4E53A4BE3D400364DA84"><enum>(b)</enum><header>Benefits taxable
as Social Security benefits</header>
<paragraph id="H08F421251DDE4092BCC01CE97F93AF4B"><enum>(1)</enum><header>Monthly
benefits</header><text>Section 86(d)(1)(A) of such Code (relating to definition
of Social Security benefit) is amended to read as follows:</text>
<quoted-block id="H0AD4696C65B54F4D9EB3A4D56B39B945">
<subparagraph id="H648D3A9583414552A16E7B008FB6300"><enum>(A)</enum><text>a monthly benefit
under part A of title II of the <act-name parsable-cite="SSA">Social Security
Act</act-name> (including an account distribution supplement referred to in
section 202(z) and 223(k) of such Act),
or</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6A98D201CC13499D9161EC0096376B6D"><enum>(2)</enum><header>Special rules
relating to lump sum payment under Section
<enum-in-header>256(c)</enum-in-header> of <act-name parsable-cite="SSA">Social
Security Act</act-name></header>
<subparagraph id="HEC4AE379382044D3B170B3BB9050C284"><enum>(A)</enum><text>Section 86(a) of
such Code is amended by adding at the end the following new paragraph:</text>
<quoted-block id="HA5ABC7BA804D4831BEC3508FE809C2E8">
<paragraph id="H9EEC9587DC984AEC9800CC6842D854A1"><enum>(3)</enum><header>Inclusion in
gross income of lump sum payment under section
<enum-in-header>256(c)</enum-in-header> of <act-name parsable-cite="SSA">Social
Security Act</act-name></header>
<subparagraph id="H27DF074860044BBFBA8F21ABA13C6560"><enum>(A)</enum><header>In
general</header><text>A lump sum payment received under section 256(c) of the
<act-name parsable-cite="SSA">Social Security Act</act-name> shall be
includible in gross income in the amount provided by subparagraph (B). Such
payment shall not be treated as a social security benefit for purposes of this
section.</text>
</subparagraph><subparagraph id="H7158CF1022CC41F4A5E3499450CEB1DF"><enum>(B)</enum><header>Amount included
in income</header><text>The portion of such lump sum payment that is includible
in gross income shall be equal to an amount which bears the same ratio to the
total amount of such payment as the portion of social security benefits
included in gross income under paragraphs (1) and (2) bears to the total amount
of such
benefits.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HE2DCD8DF2AA14596B1B983564CEBB5E3"><enum>(B)</enum><header>Special rule
relating to nonresident alien individuals</header><text>Section 871(a)(3)(A) of
such Code is amended by inserting <quote>and of any lump sum payment received
under section 256(c) of the <act-name parsable-cite="SSA">Social Security
Act</act-name></quote> after <quote>section 86(d))</quote>.</text>
</subparagraph><subparagraph id="H5E2CD59960BC46C4962EA8E2ADF09015"><enum>(C)</enum><header>Transfers to
Trust Funds</header>
<clause id="HA57076EB7F4B4DFEBF5FF088A98B47F0"><enum>(i)</enum><header>In
general</header><text>Paragraph (1) of section 121(e) of the Social Security
Amendments of 1983 (<external-xref legal-doc="public-law" parsable-cite="pl/98/21">Public Law 98–21</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/42/401">42 U.S.C. 401</external-xref> note) is amended by adding
at the end the following new subparagraph:</text>
<quoted-block id="HF91E436F804849EAAFB9C9D3AE00A041">
<subparagraph id="H1930F7908F36417EB2AFCDC2B681E53D" indent="up1"><enum>(C)</enum><text>There are hereby appropriated to each
payor fund amounts equivalent to the aggregate increase in tax liabilities
under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 which is attributable to
the application of section 86 and section 871(a)(3) of such Code to lump sum
payments received under section 256(c) of the <act-name parsable-cite="SSA">Social Security Act</act-name> by individuals entitled to
benefits payable from such payor
fund.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause><clause id="HF875D0F901A84EDFB8C4C2E5986377B"><enum>(ii)</enum><header>Conforming
amendment</header><text>Section 121(e)(2) of such Act is amended by striking
<quote>paragraph (1)(A)</quote> and inserting <quote>paragraphs (1)(A) and
(C)</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="HC892622381FE498EB9D427B5311EADB"><enum>(3)</enum><header>Special rules
relating to distribution of closed account under Section
<enum-in-header>256(f)</enum-in-header> of <act-name parsable-cite="SSA">Social
Security Act</act-name></header><text display-inline="yes-display-inline">Section 86(a) of such Code (as amended by
paragraph (2)) is amended by adding at the end the following new
paragraph:</text>
<quoted-block id="HD3AE9893057440E6A773C200E33F8EA9">
<paragraph id="HBDBBD12FCBF942DFA6ECB2F4E794C653"><enum>(4)</enum><header>Extension of
paragraph (2)(b) to distributions of closed account under Section
<enum-in-header>256(f)</enum-in-header> of <act-name parsable-cite="SSA">Social
Security Act</act-name></header><text>Notwithstanding any other provision of
this subsection, in the case of any amount received pursuant to the closing of
an account under section 256(f) of the <act-name parsable-cite="SSA">Social
Security Act</act-name>, paragraph (2)(B) shall apply to such amounts, and for
such purposes the amount allocated to the investment in the contract shall be
zero.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA7B855C798BA4064B4005F53092F6677"><enum>(4)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
taxable years beginning after the end of the calendar year in which this Act is
enacted.</text>
</paragraph></subsection><subsection id="HDCD34A0A3DEE48A2A93651C99312B3BA"><enum>(c)</enum><header>Estate tax not
to apply to assets of Social Security guarantee accounts</header>
<paragraph id="HF84FF7EC24234E4D9DD71800A5BD1ECA"><enum>(1)</enum><header>In
general</header><text>Part IV of subchapter A of chapter 11 of the Internal
Revenue Code of 1986 (relating to taxable estate) is amended by adding at the
end the following new section:</text>
<quoted-block id="HCA8B701C577C491C8BD4FBC318A300D2">
<section id="H5B7830DA450C4CF2B0B1AE12E500A7DE"><enum>2059.</enum><header>Social
Security guarantee accounts</header><text display-inline="no-display-inline">For purposes of the tax imposed by section
2001, the value of the taxable estate shall be determined by deducting from the
value of the gross estate an amount equal to the value of the assets of a
Social Security guarantee account transferred by the Secretary to the estate of
the decedent under section 256 of the <act-name parsable-cite="SSA">Social
Security
Act</act-name>.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1876F970D0ED4E83BDBFD29B0F57131"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections for part IV of subchapter A of
chapter 11 of such Code is amended by adding at the end the following new
item:</text>
<quoted-block id="HE33EC34E97FA437B9939CEB5488D256F" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 2059. Social Security guarantee
accounts.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA3B47A8C078C413C889D34E7006E6B82"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
decedents dying in or after the calendar year in which this Act is
enacted.</text>
</paragraph></subsection></section><section id="HAD71F33C320641F1BD5056BCF5EABA5"><enum>105.</enum><header>Annual account
statements</header><text display-inline="no-display-inline">Section 1143 of the
<act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.
1320b–13) is amended by adding at the end the following new subsection:</text>
<quoted-block act-name="Social Security Act" id="H4F173D4C1B25462200E3E45377F4FED4" other-style="archaic" style="other">
<subsection id="HE5940EDACEC044A194059F8C538C82B3"><enum>(e)</enum><header>Performance of Social Security guarantee
accounts</header><text>Beginning not
later than 1 year after the date of the first deposit is made to an eligible
individual’s Social Security guaranty account, each statement provided to such
eligible individual under this section shall include information determined by
the Social Security Guarantee Board as sufficient to fully inform such eligible
individual annually of the balance, investment performance, and administrative
expenses of such
account.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section display-inline="no-display-inline" id="HDEF2661396A0447BA9580178CBF54193" section-type="subsequent-section"><enum>106.</enum><header>Protection of social
security surpluses</header>
<subsection id="H8E38B2FDC4A94764AA54C0675B58DBE3"><enum>(a)</enum><header>Protection of
social security surpluses</header><text>Title III of the Congressional Budget
Act of 1974 is amended by adding at the end the following new section:</text>
<quoted-block id="H1719A5E311FD473A8E1676455BF929D5" style="traditional">
<section id="H94C4DAA0E7C54536B6222DD000F1944B"><enum>316.</enum><header>Lock-box for social security surpluses</header><subsection commented="no" display-inline="yes-display-inline" id="H7EFD36FD7F394AE1B7AD3775004795AB"><enum>(a)</enum><header>Lock-box for social
security surpluses</header>
<paragraph id="HEE49EC9C3B87439C92B4764E06EB09C3"><enum>(1)</enum><header>Concurrent
resolutions on the budget</header><text>It shall not be in order in the House
of Representatives or the Senate to consider any concurrent resolution on the
budget, or an amendment thereto or conference report thereon, that would set
forth a deficit for any fiscal year for which there is a projected net surplus
in the Federal Old-Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund which is attributable to the Social Security
Guarantee Program under part B of title II of the <act-name parsable-cite="SSA">Social Security Act</act-name>.</text>
</paragraph><paragraph id="HCE957A48EEF1430F9B1ED0C4A994156E"><enum>(2)</enum><header>Spending and tax
legislation</header><text>It shall not be in order in the House of
Representatives or the Senate to consider any bill, joint resolution,
amendment, motion, or conference report if—</text>
<subparagraph id="H28E458A471E449B3965591D92CC2B899"><enum>(A)</enum><text>the enactment of
that bill or resolution, as reported;</text>
</subparagraph><subparagraph id="H3EF92692AED742289ECF72679FA9A439"><enum>(B)</enum><text>the adoption and
enactment of that amendment; or</text>
</subparagraph><subparagraph id="HC06E6B90B8C0465B0024D77D3C45BACD"><enum>(C)</enum><text>the enactment of
that bill or resolution in the form recommended in that conference
report,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">would
cause a deficit for any fiscal year for which there is a projected net surplus
in the Federal Old-Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund attributable to the Social Security Guarantee
Program under part B of title II of the Social Security Act.</continuation-text></paragraph></subsection><subsection id="H04942117E9F84BB2A373018056C1F5E2"><enum>(b)</enum><header>Enforcement</header>
<paragraph id="H356015BF337E449AB905D3D123B4952"><enum>(1)</enum><header>Budgetary levels
with respect to concurrent resolutions on the budget</header><text>For purposes
of enforcing any point of order under subsection (a)(1), the extent to which
there is a deficit for any fiscal year shall be determined on the basis of
budgetary aggregates set forth in the later of the concurrent resolution on the
budget, as reported, or in the conference report on the concurrent resolution
on the budget, adjusted to the maximum extent allowable under all procedures
that allow budgetary aggregates to be adjusted for legislation that would cause
a decrease in any surplus or an increase in any deficit for any fiscal year
covered by the concurrent resolution on the budget (other than procedures
described in paragraph (2)(A)(ii)).</text>
</paragraph><paragraph id="H7237EBE9EFAB471C91DA00DDD8853B"><enum>(2)</enum><header>Current levels
with respect to spending and tax legislation</header>
<subparagraph id="HFD5A292BDA504E21942B232DF2CEE9EB"><enum>(A)</enum><header>In
general</header><text>For purposes of enforcing subsection (a)(2), the extent
to which there is a deficit for any fiscal year shall be—</text>
<clause id="H493A789C9E2B4DDA89E81D67113E6852"><enum>(i)</enum><text>calculated using
the following assumptions—</text>
<subclause id="H0156436BE0CA4E59B789740094935CBB"><enum>(I)</enum><text>direct spending
and revenue levels at the baseline levels underlying the most recently agreed
to concurrent resolution on the budget; and</text>
</subclause><subclause id="H6329DFB5EEB944EE9337DEBEE87C33B"><enum>(II)</enum><text>for the budget
year, discretionary spending levels at current law levels and, for outyears,
discretionary spending levels at the baseline levels underlying the most
recently agreed to concurrent resolution on the budget; and</text>
</subclause></clause><clause id="H6B791A273D854423B66EC39EFF5E15D"><enum>(ii)</enum><text>adjusted for
changes in the surplus or deficit levels set forth in the most recently agreed
to concurrent resolution on the budget pursuant to procedures in such
resolution that authorize adjustments in budgetary aggregates for updated
economic and technical assumptions in the mid-session report of the Director of
the Congressional Budget Office.</text>
</clause><continuation-text continuation-text-level="subparagraph">Such
revisions shall be included in the first current level report on the
congressional budget submitted for publication in the Congressional Record
after the release of such mid-session report.</continuation-text></subparagraph></paragraph></subsection><subsection id="H9DC83DE5C7FC4D49BF45352068111C83"><enum>(c)</enum><header>Waiver and
appeal</header><text>Subsection (a) may be waived or suspended in the Senate
only by an affirmative vote of three-fifths of the Members, duly chosen and
sworn. An affirmative vote of three-fifths of the Members of the Senate, duly
chosen and sworn, shall be required in the Senate to sustain an appeal of the
ruling of the Chair on a point of order raised under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA151B18D8E33452594A4072B1517B6A9"><enum>(b)</enum><header>Conforming
amendment</header><text>The item relating to section 316 in the table of
contents set forth in section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H7CB3D2DDAB4F492A97A26DB7C9B6DC02" other-style="archaic" style="other">
<toc container-level="quoted-block-container" idref="H1719A5E311FD473A8E1676455BF929D5" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H94C4DAA0E7C54536B6222DD000F1944B" level="section">Sec. 316. Lock-box for social security
surpluses.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><enum>II</enum><header>Benefit
updates</header>
<section id="H0F3D1972793A48F5AB650943E7D2082"><enum>201.</enum><header>Elimination of
the Social Security earnings test for individuals who have attained age
62</header>
<subsection id="HC3F61B07E37847A687A9144465F02391"><enum>(a)</enum><header>In
general</header><text>Section 203 of the <act-name parsable-cite="SSA">Social
Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/403">42 U.S.C. 403</external-xref>) is amended—</text>
<paragraph id="HD4713A2A50334F12A1556B3E37E2FA"><enum>(1)</enum><text>in
subsection (c)(1), by striking <quote>retirement age (as defined in section
216(l))</quote> and inserting <quote>the age of 62</quote>;</text>
</paragraph><paragraph id="HB9157BD72B7D4A65AC956BBC25A781DF"><enum>(2)</enum><text>in clause (B) of
the last sentence of subsection (f)(1), by striking <quote>retirement age (as
defined in section 216(l))</quote> and inserting <quote>the age of
62</quote>;</text>
</paragraph><paragraph id="H8005FD3D3F224881BCB68C3CE41558A0"><enum>(3)</enum><text>in subsection
(f)(3), by striking <quote>retirement age (as defined in section
216(l))</quote> and inserting <quote>the age of 62</quote>;</text>
</paragraph><paragraph id="H1339D667D3E043CBB159E9F6C24D0253"><enum>(4)</enum><text>in subsection
(h)(1)(A), by striking <quote>retirement age (as defined in section
216(l))</quote> each place it appears and inserting <quote>the age of
62</quote>; and</text>
</paragraph><paragraph id="HDE7C6CA74F374AAFA11257F1D0640869"><enum>(5)</enum><text>in subsection
(j)—</text>
<subparagraph id="HB3E798004C78443C94284B9FA527CCD0"><enum>(A)</enum><text>in the heading, by
striking <quote>retirement age</quote> and inserting <quote>Age 62</quote>;
and</text>
</subparagraph><subparagraph id="H7C9988E3721B488892CC33663F23C25"><enum>(B)</enum><text>by striking
<quote>retirement age (as defined in section 216(l))</quote> and inserting
<quote>the age of 62</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H0DBDDD69456445EEBA24CDB4547F721D"><enum>(b)</enum><header>Conforming
amendments eliminating the special exempt amount for year of attaining
Retirement Age</header>
<paragraph id="HFDAE23D78CCB493796FF19967C2730AD"><enum>(1)</enum><header>Uniform exempt
amount</header><text>Section 203(f)(8)(A) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/403">42 U.S.C. 403(f)(8)(A)</external-xref>)
is amended by striking <quote>the new exempt amounts (separately stated for
individuals described in subparagraph (D) and for other individuals) which are
to be applicable</quote> and inserting <quote>a new exempt amount which shall
be applicable</quote>.</text>
</paragraph><paragraph id="H660EFD1B0A7D4EE5A3F7471FF9415654"><enum>(2)</enum><header>Conforming
amendments</header><text>Section 203(f)(8)(B) of such Act (42 U.S.C.
403(f)(8)(B)) is amended—</text>
<subparagraph id="HFE435E0B5403448DB4D5E38700863B7B"><enum>(A)</enum><text>in the matter
preceding clause (i), by striking <quote>Except</quote> and all that follows
through <quote>whichever</quote> and inserting <quote>The exempt amount which
is applicable for each month of a particular taxable year shall be
whichever</quote>;</text>
</subparagraph><subparagraph id="HE46DFE641A724C1AA0EF20E91D1210D5"><enum>(B)</enum><text>in clause (i), by
striking <quote>corresponding</quote>;</text>
</subparagraph><subparagraph id="HBB572023226644EC91839DEDBCE0D203"><enum>(C)</enum><text>in clause
(ii)—</text>
<clause id="H5BE84A4A263C41E1B59CC5DCA4CE7965"><enum>(i)</enum><text>by
striking <quote>the product</quote> and all that follows through <quote>other
individuals), and</quote> and inserting <quote>the product derived by
multiplying the exempt amount which is in effect with respect to months in the
taxable year ending after 1993 and before 1995, by</quote>; and</text>
</clause><clause id="H3252C185873649DBABAD56D8F279C1C9"><enum>(ii)</enum><text>by
striking subclause (II) and inserting the following:</text>
<quoted-block id="H0ADF9F06A1F741E9BD70D949BA00D0A6">
<subclause id="H5CCACA02BA5F4F369B942B5DB36725C6" indent="up1"><enum>(II)</enum><text>the national average wage index (as so
defined) for 1992,</text>
</subclause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="HEAB62A6E812C4B06AFA18423AEA50088"><enum>(D)</enum><text>in the last
sentence, by striking <quote>an exempt amount</quote> and inserting <quote>the
exempt amount</quote>.</text>
</subparagraph></paragraph><paragraph id="H722BAD2A8DE84BA4A3D276B4EB20D1E1"><enum>(3)</enum><header>Repeal of basis
for computation of special exempt amount</header><text>Subparagraphs (D) and
(E) of section 203(f)(8) of such Act (42 U.S.C. (f)(8)(D), (E)) are
repealed.</text>
</paragraph></subsection><subsection id="HF70D795A9FF342FBA361DC60DF055C9B"><enum>(c)</enum><header>Additional
conforming amendments</header>
<paragraph id="H6580B52BF24D4015A8F22E96C8D7D3C8"><enum>(1)</enum><text>Section 203 of
such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/403">42 U.S.C. 403</external-xref>) is amended—</text>
<subparagraph id="H6D505B52D27345DEB9E36CE738FA4579"><enum>(A)</enum><text>in subsection
(b)(1)—</text>
<clause id="H99B92381BCF44427ADC7C2A84DDE4D69"><enum>(i)</enum><text>by
striking <quote>(b)(1) Deductions</quote> and inserting <quote>(b)
Deductions</quote>;</text>
</clause><clause id="H0808AF694612400A98ECD23653CA500"><enum>(ii)</enum><text>by
striking <quote>and from any payment or payments to which any other persons are
entitled on the basis of such individual’s wages and self-employment
income,</quote>;</text>
</clause><clause id="H28F07CA2592A47818BCBD58C42F6C366"><enum>(iii)</enum><text>by
striking <quote>until the total</quote> and all that follows through <quote>if
for such month</quote> and inserting the following: <quote>until the total of
such deductions equals such individual’s benefit or benefits under section 202
for any month, if for such month</quote>;</text>
</clause><clause id="H98C2F7286E184ADFA92D35DAE65F2192"><enum>(iv)</enum><text>by
striking <quote>total of benefits referred to in clauses (A) and (B)</quote>
and inserting <quote>the total of such benefits</quote>; and</text>
</clause><clause id="H71AF27CAA98143828C97F90030E98D18"><enum>(v)</enum><text>by
striking <quote>If a child</quote> and all that follows through <quote>have
been made.</quote>;</text>
</clause></subparagraph><subparagraph id="HFF2EBE1B40954678BBB65EEC09ED15AF"><enum>(B)</enum><text>by striking
subsection (b)(2);</text>
</subparagraph><subparagraph id="HDAE44824821748A59013061700999C17"><enum>(C)</enum><text>by striking
subsection (d);</text>
</subparagraph><subparagraph id="H388826A9F43649118336F216AD7386DB"><enum>(D)</enum><text>in subsection
(f)(1), by striking <quote>The amount of</quote> and all that follows through
<quote>Notwithstanding</quote> and inserting the following: <quote>The amount
of an individual’s excess earnings (as defined in paragraph (3)) shall be
charged to months as follows: There shall be charged to the first month of such
taxable year an amount of his excess earnings equal to the payment to which he
is entitled for such month under section 202 (or the total of his excess
earnings if such excess earnings are less than such payment), and the balance,
if any, of such excess earnings shall be charged to each succeeding month in
such year to the extent, in the case of each such month, of the payment to
which such individual is entitled for such month under section 202, until the
total of such excess has been so charged. Notwithstanding</quote>;</text>
</subparagraph><subparagraph id="H6FAC53CC18DA41D800C3ECF2E310AF2F"><enum>(E)</enum><text>in subsection
(f)(3), by striking <quote>33<fraction>1/3</fraction> percent</quote> and all
that follows through <quote>other individual,</quote> and inserting <quote>50
percent of such individual’s earnings for such year in excess of the product of
the exempt amount as determined under paragraph (8),</quote>;</text>
</subparagraph><subparagraph id="HCD8336539FF84A2CA95D00F483142EFD"><enum>(F)</enum><text>by striking
subsection (f)(7);</text>
</subparagraph><subparagraph id="H66AB4C1F03BD4231A4E902B9EB8B9842"><enum>(G)</enum><text>by striking
subsection (f)(9); and</text>
</subparagraph><subparagraph id="HDAAE32ADC094413CA627FA24A9D6A791"><enum>(H)</enum><text>in subsection
(h)(1)(A)(ii), by striking subclauses (I), (II), and (III) and inserting the
following:</text>
<quoted-block id="H0971432025DC4072ABB963C76EF7ACEB">
<subclause id="H5908E30929DE4F69BF01BA9CAF37D859" indent="up2"><enum>(I)</enum><text>such individual’s benefits under
section 202 are reduced under subsection (a) of this section for any month in
such taxable year, and</text>
</subclause><subclause id="H4E7D3D671CD34D5D912720CEF498D837" indent="up2"><enum>(II)</enum><text>in any such month there is another
person who also is entitled to benefits under subsection (b), (c), (d), (e),
(f), (g), or (h) of section 202 on the basis of the same wages and
self-employment income and who does not live in the same household as such
individual.</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H9C7E0B55D7574E5B85E35B30AB3BE06F"><enum>(2)</enum><text>The second
sentence of section 223(d)(4) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/423">42 U.S.C. 423(d)(4)</external-xref>) is amended by
striking <quote>if section 102 of the Senior Citizens’ Right to Work Act of
1996 had not been enacted</quote> 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 section 201 of the <short-title>Social Security Guarantee Plus Act of 2007</short-title>
had not been enacted.</text>
</paragraph></subsection><subsection id="HBC3E5341865243A3A97190F47419822E"><enum>(d)</enum><header>Effective date
and transitional rule</header>
<paragraph id="H15F0BF6DB4C241358E5FBF1511570333"><enum>(1)</enum><header>Effective
date</header><text>The amendments and repeals made by this section shall apply
with respect to taxable years ending after December 31, 2012.</text>
</paragraph><paragraph id="H388B596D4C6D4DD79839B5A735D1024D"><enum>(2)</enum><header>Transitional
rule</header><text>Notwithstanding paragraph (8) of section 203(f) of the
<act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.
403(f)(8)), the exempt amount which is applicable, for purposes of such section
203(f), to an individual who is entitled to monthly insurance benefits under
section 202 of such Act but who has not attained retirement age (as defined in
section 216(<italic>l</italic>) of such Act) before the close of the taxable
year involved shall be—</text>
<subparagraph id="H96ECD81D42DD4A90809FF4E3E436AEE"><enum>(A)</enum><text>for each month of
any taxable year ending after 2007 and before 2009, $1,250.00,</text>
</subparagraph><subparagraph id="HE4D22F7E838644BC9D8207FECDAAC16B"><enum>(B)</enum><text>for each month of
any taxable year ending after 2008 and before 2010,
$1,666.66<fraction>2/3</fraction>,</text>
</subparagraph><subparagraph id="H661A42E759C64AA2925B65BF93F4F7FD"><enum>(C)</enum><text>for each month of
any taxable year ending after 2009 and before 2011,
$2,083.33<fraction>1/3</fraction>,</text>
</subparagraph><subparagraph id="H1853AC2896234D1CB3029BAA2497DF82"><enum>(D)</enum><text>for each month of
any taxable year ending after 2010 and before 2012, $2,500.00, and</text>
</subparagraph><subparagraph id="HC678CFD6182B4ECE9DC137C24411D0E7"><enum>(E)</enum><text>for each month of
any taxable year ending after 2011 and before 2013,
$2,916.66<fraction>2/3</fraction>.</text>
</subparagraph></paragraph></subsection></section><section id="HA413488FBE42495FB1E687C7BAB6E9D2"><enum>202.</enum><header>Increase in
widow’s and widower’s insurance benefits</header>
<subsection id="H1A6BA6BA86054650BD551CB6BEBC3D00"><enum>(a)</enum><header>Widow’s
insurance benefits</header><text>Section 202(e) of the
<act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/402">42 U.S.C. 402(e)</external-xref>)
is amended by adding at the end the following new paragraph:</text>
<quoted-block act-name="Social Security Act" id="H549223A4BB9548848DCE983514B90296" style="traditional">
<paragraph id="H3EA09448F128493A88D492287380F547" indent="up1"><enum>(9)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H0165A90D9D954B64A2C7A07F00CD9B5D"><enum>(A)</enum><text>In any case in which the
amount of a widow’s insurance benefit (as determined under the preceding
paragraphs of this subsection) for the entitlement month of the widow (or
surviving divorced wife) is less than the minimum benefit amount for such month
determined under subparagraph (C), the amount of such benefit for such month
and each succeeding month shall be increased to such minimum benefit amount (or
the amount most recently established in lieu thereof under section
215(i)).</text>
</subparagraph><subparagraph id="HE49FDA2D39B3471F9C91C68C33C1E7F" indent="up1"><enum>(B)</enum><text>For purposes of this paragraph, the
term <term>entitlement month</term> of a widow (or surviving divorced wife)
means, in connection with her benefit under this subsection, the first month of
her entitlement to such benefit.</text>
</subparagraph><subparagraph id="HAD1889CA494E41EEA9ECFAE4A2B54974" indent="up1"><enum>(C)</enum><text>For purposes of subparagraph (A), the
minimum benefit amount determined under this subparagraph for the entitlement
month of the widow (or surviving divorced wife) is an amount equal to the
lesser of—</text>
<clause id="H05F3FF474B9742E298DA7D3F45439637"><enum>(i)</enum><text>75 percent of the sum of—</text>
<subclause id="H2BF67223EBAF4811A02B4D1CB071A7A"><enum>(I)</enum><text>the imputed deceased individual’s
benefit for such month, as determined under subparagraph (D) or (E) (as
applicable), and</text>
</subclause><subclause id="HDED5052C30EE43A0B21158F211B5B7F1"><enum>(II)</enum><text>the imputed survivor benefit for
such month, as determined under subparagraph (F), or</text>
</subclause></clause><clause id="H37C8211648644954BA002434B091C536"><enum>(ii)</enum><text>the increased benefit cap determined
under subparagraph (G) for such month.</text>
</clause></subparagraph><subparagraph id="H0AC9E9DC35084520B467A07F73A6E6B8" indent="up1"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="H52A9D99586FC427BA5D0FA5905BDD04"><enum>(i)</enum><text>For purposes of
subparagraph (C)(i)(I), if the deceased individual died in a month for which he
was not entitled to any benefit under this title based on his wages or
self-employment income or the wages and self-employment income of the widow (or
surviving divorced wife), the imputed deceased individual’s benefit for the
entitlement month of the widow (or surviving divorced wife) is the sum
of—</text>
<subclause id="H26E2F4CB97024A738670DE1100C26591" indent="up1"><enum>(I)</enum><text>the imputed old-age insurance benefit
(determined under clause (ii)) of the deceased individual for her entitlement
month (if any), and</text>
</subclause><subclause id="H00F0E6F2B72D4AD59F1152EDB7CC0081" indent="up1"><enum>(II)</enum><text>the imputed husband’s insurance
benefit (determined under clause (iii)) of the deceased individual for her
entitlement month (if any).</text>
</subclause></clause><clause id="H7AC41EC24DFD4CF7A7AB09D759B2399" indent="up1"><enum>(ii)</enum><text>The amount of the imputed old-age
insurance benefit of the deceased individual for the entitlement month of the
widow (or surviving divorced wife) is the amount of the old-age insurance
benefit to which he would have been entitled for such month—</text>
<subclause id="HC431F25C47A34A75A299640000B73091"><enum>(I)</enum><text>determined, in the case of such a
deceased individual who had attained age 62 as of the date of his death, as if
he had applied for such benefit in the month of his death and had survived
throughout the subsequent period ending with her entitlement month, or</text>
</subclause><subclause id="HD154B048E1C5476E8FF9536C85370177"><enum>(II)</enum><text>determined, in the case of such a
deceased individual who died before attaining age 62 but would have attained
age 62 before the end of her entitlement month, as if he had survived
throughout the subsequent period ending with her entitlement month, and had
applied for such benefit during the first month for which he would have been
eligible for such benefit (assuming a primary insurance amount for the deceased
individual determined under paragraph (2)(B) of this subsection).</text>
</subclause><continuation-text continuation-text-level="clause">For purposes
of determining the deceased individual’s imputed old-age insurance benefit
under this clause, the determination of whether the deceased individual was a
fully-insured individual (as defined in section 214(a)) shall be made as of the
date of his death. In any case in which the deceased individual died before
attaining age 62 and would not have attained age 62 before the end of the
entitlement month of the widow (or surviving divorced wife), the deceased
individual’s imputed old-age insurance benefit shall be deemed to be
zero.</continuation-text></clause><clause id="H2C6A9ABBF2084B629051B0099C5FA0B" indent="up1"><enum>(iii)</enum><text>The amount of the imputed husband’s
insurance benefit of the deceased individual for the entitlement month of the
widow (or surviving divorced wife) is the amount of the husband’s insurance
benefit under subsection (c) to which he would have been entitled for such
month (assuming, for purposes of reduction under subsection (k)(3)(A), the
entitlement to an old-age insurance benefit for such month, if any, as
described in clause (ii))—</text>
<subclause id="H148411598CD64EC78EE12150FC8D2436"><enum>(I)</enum><text>determined, in the case of such a
deceased individual who had attained age 62 as of the date of his death, as if
he had applied for such benefit in the month of his death and had survived
throughout the subsequent period ending with her entitlement month, or</text>
</subclause><subclause id="HC232396BB69348CF9112279861099B11"><enum>(II)</enum><text>determined, in the case of such a
deceased individual who died before attaining age 62 but would have attained
age 62 before the end of her entitlement month, as if he had survived
throughout the subsequent period ending with her entitlement month and had
applied for such benefit during the first month for which he would have been
eligible for such benefit.</text>
</subclause><continuation-text continuation-text-level="clause">In any case
in which the deceased individual died before he attained age 62 and would not
have attained age 62 before the end of the entitlement month of the widow (or
surviving divorced spouse), the deceased individual’s imputed husband’s
insurance benefit shall be deemed to be zero.</continuation-text></clause></subparagraph><subparagraph id="H6234BDFD69404B739DC7A24ECEBDB22D" indent="up1"><enum>(E)</enum><clause commented="no" display-inline="yes-display-inline" id="H1B339096068A4B7F85C2ABA76F70139F"><enum>(i)</enum><text>For purposes of
subparagraph (C), if the deceased individual died during a month for which he
otherwise would have been entitled (but for his death) to an old-age insurance
benefit under subsection (a) or a disability insurance benefit under section
223, or to a husband’s insurance benefit under subsection (c) based on the
wages and self-employment income of the widow (or surviving divorced wife), the
imputed deceased individual’s benefit for the entitlement month of the widow
(or surviving divorced wife) is the sum of—</text>
<subclause id="HE66ACEC70C264B00BC063DF6D8D5C774" indent="up1"><enum>(I)</enum><text>the amount of the old-age or
disability insurance benefit (if any) to which he would have been entitled for
her entitlement month if he had survived throughout the period subsequent to
his death and ending with such month, and</text>
</subclause><subclause id="H0CED91F3205D4A199800426CF5A1C0A4" indent="up1"><enum>(II)</enum><text>the amount of the husband’s insurance
benefit (if any) to which he would have been entitled for her entitlement month
based on her wages and self-employment income if he had survived throughout the
period subsequent to his death and ending with such month (assuming, for
purposes of reduction under subsection (k)(3)(A), the entitlement to an old-age
or disability insurance benefit for such month, if any, as described in
subclause (I)).</text>
</subclause></clause><clause id="H34B0AC83E1A346849ED5B6282718F4DF" indent="up1"><enum>(ii)</enum><text>If the deceased individual otherwise
would have been entitled (but for his death) to a disability insurance benefit
under section 223 for the month in which he died, the amount determined under
clause (i) shall be determined as if he had survived throughout the period
commencing with the month of his death and ending with the entitlement month of
the widow (or surviving divorced wife) and he had remained entitled to
disability insurance benefits throughout such period (or until becoming
entitled to old-age insurance benefits under subsection (a) during such
period).</text>
</clause></subparagraph><subparagraph id="HF4028A834BF64F5C9BDAEA41A58DBD57" indent="up1"><enum>(F)</enum><text>For purposes of subparagraph
(C)(i)(II)—</text>
<clause id="H6056FA68E30140E7A768060011A0B801"><enum>(i)</enum><text>In the case of a widow (or surviving
divorced wife) who is entitled for her entitlement month to an old-age
insurance benefit under subsection (a) or a disability insurance benefit under
section 223, or otherwise would have been entitled (but for the deceased
individual’s death) to a wife’s insurance benefit under subsection (b) for such
month, the amount of her imputed survivor benefit for such month is the sum
of—</text>
<subclause id="HF81756ACAFFF459992FDB5A4A5EB5C54"><enum>(I)</enum><text>the amount of such old-age or
disability insurance benefit (if any), and</text>
</subclause><subclause id="H6F910A5C030A4659ACD0D12E57AB08A8"><enum>(II)</enum><text>the amount of such wife’s
insurance benefit (if any), assuming, for purposes of reduction under
subsection (k)(3)(A), the entitlement to an old-age insurance or disability
insurance benefit for such month (if any), as described in subclause
(I).</text>
</subclause></clause><clause id="H553AF1082A954520BA3F64631469BBC3"><enum>(ii)</enum><text>In the case of a widow (or surviving
divorced wife) who is not described in clause (i) but has attained (or would
attain) age 62 as of the end of her entitlement month, the amount of her
imputed survivor benefit is the sum of—</text>
<subclause id="H6AC8870E6B0A488B902F14B320B50037"><enum>(I)</enum><text>the amount of the old-age insurance
benefit under subsection (a) to which she would be entitled for such month if
she filed application for such benefit during such month, and</text>
</subclause><subclause id="H20EFB67BB9174F9BB9ACBE665CB4E2DF"><enum>(II)</enum><text>the amount to which she otherwise
would have been entitled (but for the deceased individual’s death) as a wife’s
insurance benefit under subsection (b) for such month, based on the deceased
individual’s wages and self-employment income, if she had filed application for
such benefit during such month (assuming a primary insurance amount for the
deceased individual determined under paragraph (2)(B) of this subsection and
assuming, for purposes of reduction under subsection (k)(3)(A), the entitlement
to an old-age insurance benefit for such month, if any, as described in
subclause (I)).</text>
</subclause></clause><continuation-text continuation-text-level="subparagraph">In any
case in which the widow (or surviving divorced wife) would not attain age 62
before the end of the her entitlement month, her imputed survivor benefit shall
be deemed to be zero.</continuation-text></subparagraph><subparagraph id="H6E29A199F884461BA5CD007021E13675" indent="up1"><enum>(G)</enum><text>The increased benefit cap determined
under this subparagraph for the entitlement month of the widow (or surviving
divorced wife) is the amount which would be the amount of a theoretical
individual’s old-age insurance benefit under subsection (a) (reduced as
provided in subsection (q)) if—</text>
<clause id="H579A7B83135B48568F85DB86F5238B60"><enum>(i)</enum><text>such theoretical individual’s primary
insurance amount for the first month of entitlement were equal to the average
of the primary insurance amounts upon which old-age insurance benefits under
subsection (a) are payable for—</text>
<subclause id="H66319CD7D5AB4F7E9E791DF9686C1DDA"><enum>(I)</enum><text>in any case in which the
entitlement month of the widow (or surviving divorced wife) is the month of
December, such month, or</text>
</subclause><subclause id="H40C2EBA3A5D94A5EB8A984733267AFF6"><enum>(II)</enum><text>in any other case, the latest
month of December preceding such entitlement month,</text>
</subclause></clause><clause id="H48316B698320435689E543641E0233F3"><enum>(ii)</enum><text>such first month of such theoretical
individual’s entitlement to such old-age insurance benefit were the entitlement
month of the widow (or surviving divorced spouse), and</text>
</clause><clause id="HF2B63CB6962248A4BBC8637D02708C83"><enum>(iii)</enum><text>the month in which the theoretical
individual attained or would attain retirement age (as defined in section
216(l)) were the month in which the widow (or surviving divorced wife) attained
or would attain retirement age (as so defined).</text>
</clause></subparagraph><subparagraph id="HFDAC89C7FA67422986CA2E00647CA27D" indent="up1"><enum>(H)</enum><text>If, in determining the amount of the
benefit under this section pursuant to this paragraph, the imputed old-age
insurance benefit or imputed husband’s insurance benefit of the deceased
individual was deemed to be zero pursuant to the last sentence of clause (ii)
or (iii) of subparagraph (D), or the imputed survivor benefit of the widow (or
surviving divorced wife) was deemed to be zero pursuant to the last sentence of
subparagraph (F), effective for any month after the entitlement month of the
widow (or surviving divorced wife) in which the deceased individual would have
attained age 62 or she attains age 62, the Commissioner shall recompute the
amount of the benefit under this paragraph by substituting a reference to such
later month for each reference in the preceding provisions of this paragraph to
her entitlement month.</text>
</subparagraph><subparagraph id="H698CDEE64D2C400194007FCA55304139" indent="up1"><enum>(I)</enum><clause commented="no" display-inline="yes-display-inline" id="H1EE57057BC9243CB9144677D948578B6"><enum>(i)</enum><text>Any reference in this
paragraph to the widow’s insurance benefit (as determined under the preceding
paragraphs of this subsection) shall be deemed a reference to such benefit,
taking into account all applicable reductions and deductions under this
title.</text>
</clause><clause id="H2C41B3E7EF4D466BA4F382DC9793722B" indent="up1"><enum>(ii)</enum><text>Any reference in this paragraph to
the imputed old-age insurance benefit or imputed husband’s insurance benefit
described in subparagraph (D), the old-age insurance benefit, disability
insurance benefit, or husband’s insurance benefit described in subparagraph
(E), or the old-age insurance benefit, disability insurance benefit, or wife’s
insurance benefit described in subparagraph (F) shall be deemed a reference to
such benefit, taking into account applicable reductions under this section but
disregarding reductions or deductions otherwise applicable under this
title.</text>
</clause><clause id="HDD5A0A8BAF954EBB85113E5700F7CA0" indent="up1"><enum>(iii)</enum><text>A widow’s insurance benefit which
has been increased under this paragraph shall be subject to all reductions and
deductions otherwise applicable to widow’s insurance benefits under this title,
except that such benefit shall not be subject to any reduction otherwise
applicable under subsection
(q)(1).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H80EF920D04134A5FA240677EA69FDC"><enum>(b)</enum><header>Widower’s
insurance benefits</header><text>Section 202(f) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/402">42 U.S.C. 402(f)</external-xref>)
is amended by adding at the end the following new paragraph:</text>
<quoted-block id="H023D57DEC10C44D3A5D8C5B93E2EAAC7" style="traditional">
<paragraph id="H07CC1817E6BC4019A44705D82EBEED11" indent="up1"><enum>(9)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H6FF6B8C16FEF4DCCBF00C1CA3ED27CD"><enum>(A)</enum><text>In any case in which the
amount of a widower’s insurance benefit (as determined under the preceding
paragraphs of this subsection) for the entitlement month of the widower (or
surviving divorced husband) is less than the minimum benefit amount for such
month determined under subparagraph (C), the amount of such benefit for such
month and each succeeding month shall be increased to such minimum benefit
amount (or the amount most recently established in lieu thereof under section
215(i)).</text>
</subparagraph><subparagraph id="H112DFE7CC2DB478A8CE7DE5D7BC7C14" indent="up1"><enum>(B)</enum><text>For purposes of this paragraph, the
term <term>entitlement month</term> of a widower (or surviving divorced
husband) means, in connection with his benefit under this subsection, the first
month of his entitlement to such benefit.</text>
</subparagraph><subparagraph id="H5E4949FEC0AF4E9CBEEA6901B72F126C" indent="up1"><enum>(C)</enum><text>For purposes of subparagraph (A), the
minimum benefit amount determined under this subparagraph for the entitlement
month of the widower (or surviving divorced husband) is an amount equal to the
lesser of—</text>
<clause id="H6ABA12F772DD4892BEB2C4E85208668B"><enum>(i)</enum><text>75 percent of the sum of—</text>
<subclause id="HD100F8DFBB4246B986A659C0022C9C2"><enum>(I)</enum><text>the imputed deceased individual’s
benefit for such month, as determined under subparagraph (D) or (E) (as
applicable), and</text>
</subclause><subclause id="H06D249F698C84B6B961BB81C645D4026"><enum>(II)</enum><text>the imputed survivor benefit for
such month, as determined under subparagraph (F), or</text>
</subclause></clause><clause id="HA9DD3CB89E834434B754195354939764"><enum>(ii)</enum><text>the increased benefit cap determined
under subparagraph (G) for such month.</text>
</clause></subparagraph><subparagraph id="H134369C766BC47FD87D0BBDF3510E8E" indent="up1"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="H9CCB53F8EB144D14BD99B068EFA299CB"><enum>(i)</enum><text>For purposes of
subparagraph (C)(i)(I), if the deceased individual died in a month for which
she was not entitled to any benefit under this title based on her wages or
self-employment income or the wages and self-employment income of the widower
(or surviving divorced husband), the imputed deceased individual’s benefit for
the entitlement month of the widower (or surviving divorced husband) is the sum
of—</text>
<subclause id="H86A985B1F558453C98A7C42C13148BE4" indent="up1"><enum>(I)</enum><text>the imputed old-age insurance benefit
(determined under clause (ii)) of the deceased individual for his entitlement
month (if any), and</text>
</subclause><subclause id="H9BC5A9111C5B4D0E89E0F61E8F25AD74" indent="up1"><enum>(II)</enum><text>the imputed wife’s insurance benefit
(determined under clause (iii)) of the deceased individual for his entitlement
month (if any).</text>
</subclause></clause><clause id="H447E088229F94E6AA2D711B9ECE9CDBE" indent="up1"><enum>(ii)</enum><text>The amount of the imputed old-age
insurance benefit of the deceased individual for the entitlement month of the
widower (or surviving divorced husband) is the amount of the old-age insurance
benefit to which she would have been entitled for such month—</text>
<subclause id="H949442074D634178B0DBE88F42A15B10"><enum>(I)</enum><text>determined, in the case of such a
deceased individual who had attained age 62 as of the date of her death, as if
she had applied for such benefit in the month of her death and had survived
throughout the subsequent period ending with his entitlement month, or</text>
</subclause><subclause id="H781B2EE1414747629D16C86620ABE11"><enum>(II)</enum><text>determined, in the case of such a
deceased individual who died before attaining age 62 but would have attained
age 62 before the end of his entitlement month, as if she had survived
throughout the subsequent period ending with his entitlement month, and had
applied for such benefit during the first month for which she would have been
eligible for such benefit (assuming a primary insurance amount for the deceased
individual determined under paragraph (2)(B) of this subsection).</text>
</subclause><continuation-text continuation-text-level="clause">For purposes
of determining the deceased individual’s imputed old-age insurance benefit
under this clause, the determination of whether the deceased individual was a
fully-insured individual (as defined in section 214(a)) shall be made as of the
date of her death. In any case in which the deceased individual died before
attaining age 62 and would not have attained age 62 before the end of the
entitlement month of the widower (or surviving divorced husband), the deceased
individual’s imputed old-age insurance benefit shall be deemed to be
zero.</continuation-text></clause><clause id="HC9083DB7E1AF4896A009928BA3403287" indent="up1"><enum>(iii)</enum><text>The amount of the imputed wife’s
insurance benefit of the deceased individual for the entitlement month of the
widower (or surviving divorced husband) is the amount of the wife’s insurance
benefit under subsection (c) to which she would have been entitled for such
month (assuming, for purposes of reduction under subsection (k)(3)(A), the
entitlement to an old-age insurance benefit for such month, if any, as
described in clause (ii))—</text>
<subclause id="H5E1B0B376C884E17BFD6A4D13CA9E4BA"><enum>(I)</enum><text>determined, in the case of such a
deceased individual who had attained age 62 as of the date of her death, as if
she had applied for such benefit in the month of her death and had survived
throughout the subsequent period ending with his entitlement month, or</text>
</subclause><subclause id="H3EEDF85D6A7A4E7A8C6393D0CF037300"><enum>(II)</enum><text>determined, in the case of such a
deceased individual who died before attaining age 62 but would have attained
age 62 before the end of his entitlement month, as if she had survived
throughout the subsequent period ending with his entitlement month and had
applied for such benefit during the first month for which she would have been
eligible for such benefit.</text>
</subclause><continuation-text continuation-text-level="clause">In any case
in which the deceased individual died before she attained age 62 and would not
have attained age 62 before the end of the entitlement month of the widower (or
surviving divorced husband), the deceased individual’s imputed wife’s insurance
benefit shall be deemed to be zero.</continuation-text></clause></subparagraph><subparagraph id="HCBD128ED3F6842FE926BC247F7D28900" indent="up1"><enum>(E)</enum><clause commented="no" display-inline="yes-display-inline" id="H963A1A598AA940B5BB222E29030509A3"><enum>(i)</enum><text>For purposes of
subparagraph (C), if the deceased individual died during a month for which she
otherwise would have been entitled (but for his death) to an old-age insurance
benefit under subsection (a) or a disability insurance benefit under section
223, or to a wife’s insurance benefit under subsection (c) based on the wages
and self-employment income of the widower (or surviving divorced husband), the
imputed deceased individual’s benefit for the entitlement month of the widower
(or surviving divorced husband) is the sum of—</text>
<subclause id="H8FA85B54AF4744EB88C0960B5FC6421" indent="up1"><enum>(I)</enum><text>the amount of the old-age or
disability insurance benefit (if any) to which she would have been entitled for
his entitlement month if she had survived throughout the period subsequent to
her death and ending with such month, and</text>
</subclause><subclause id="H6260E7896BE34215A91686D64C218961" indent="up1"><enum>(II)</enum><text>the amount of the wife’s insurance
benefit (if any) to which she would have been entitled for his entitlement
month based on his wages and self-employment income if she had survived
throughout the period subsequent to her death and ending with such month
(assuming, for purposes of reduction under subsection (k)(3)(A), the
entitlement to an old-age or disability insurance benefit for such month, if
any, as described in subclause (I)).</text>
</subclause></clause><clause id="HC0088B3C4D7341660063536689207972" indent="up1"><enum>(ii)</enum><text>If the deceased individual otherwise
would have been entitled (but for her death) to a disability insurance benefit
under section 223 for the month in which she died, the amount determined under
clause (i) shall be determined as if she had survived throughout the period
commencing with the month of her death and ending with the entitlement month of
the widower (or surviving divorced husband) and she had remained entitled to
disability insurance benefits throughout such period (or until becoming
entitled to old-age insurance benefits under subsection (a) during such
period).</text>
</clause></subparagraph><subparagraph id="HE267D10752884849ACBE30FFDDB97DAE" indent="up1"><enum>(F)</enum><text>For purposes of subparagraph
(C)(i)(II)—</text>
<clause id="H45E35D55A0064A8BB6865F9C266D11D5"><enum>(i)</enum><text>In the case of a widower (or surviving
divorced husband) who is entitled for his entitlement month to an old-age
insurance benefit under subsection (a) or a disability insurance benefit under
section 223, or otherwise would have been entitled (but for the deceased
individual’s death) to a husband’s insurance benefit under subsection (b) for
such month, the amount of his imputed survivor benefit for such month is the
sum of—</text>
<subclause id="HC8A9D45D67E244939875A8E5CE32C2A7"><enum>(I)</enum><text>the amount of such old-age or
disability insurance benefit (if any), and</text>
</subclause><subclause id="H7AA520125AE44350844FCF855D5C5CF"><enum>(II)</enum><text>the amount of such husband’s
insurance benefit (if any), assuming, for purposes of reduction under
subsection (k)(3)(A), the entitlement to an old-age insurance or disability
insurance benefit for such month (if any), as described in subclause
(I).</text>
</subclause></clause><clause id="HFFAC16BDF0EC410287270093DFA1074"><enum>(ii)</enum><text>In the case of a widower (or
surviving divorced husband) who is not described in clause (i) but has attained
(or would attain) age 62 as of the end of his entitlement month, the amount of
his imputed survivor benefit is the sum of—</text>
<subclause id="H76FF1211BC7D451C82FB6DA48D62C725"><enum>(I)</enum><text>the amount of the old-age insurance
benefit under subsection (a) to which he would be entitled for such month if he
filed application for such benefit during such month, and</text>
</subclause><subclause id="H526E21C22CA34CA19D3957BC8762F2D0"><enum>(II)</enum><text>the amount to which he otherwise
would have been entitled (but for the deceased individual’s death) as a
husband’s insurance benefit under subsection (c) for such month, based on the
deceased individual’s wages and self-employment income, if he had filed
application for such benefit during such month (assuming a primary insurance
amount for the deceased individual determined under paragraph (2)(B) of this
subsection and assuming, for purposes of reduction under subsection (k)(3)(A),
the entitlement to an old-age insurance benefit for such month, if any, as
described in subclause (I)).</text>
</subclause></clause><continuation-text continuation-text-level="subparagraph">In any
case in which the widower (or surviving divorced husband) would not attain age
62 before the end of his entitlement month, his imputed survivor benefit shall
be deemed to be zero.</continuation-text></subparagraph><subparagraph id="H05317AC0675A4C59B5BCD61AC6F5DF9" indent="up1"><enum>(G)</enum><text>The increased benefit cap determined
under this subparagraph for the entitlement month of the widower (or surviving
divorced husband) is the amount which would be the amount of a theoretical
individual’s old-age insurance benefit under subsection (a) (reduced as
provided in subsection (q)) if—</text>
<clause id="HE4145EA3AB094247BCADC7771BA59622"><enum>(i)</enum><text>such theoretical individual’s primary
insurance amount for the first month of entitlement were equal to the average
of the primary insurance amounts upon which old-age insurance benefits under
subsection (a) are payable for—</text>
<subclause id="HCA3A1E351EB3458993B4C2CB87B111B7"><enum>(I)</enum><text>in any case in which the
entitlement month of the widower (or surviving divorced husband) is the month
of December, such month, or</text>
</subclause><subclause id="H7BFDCD327AD242918E9763F551FEA2E1"><enum>(II)</enum><text>in any other case, the latest
month of December preceding such entitlement month,</text>
</subclause></clause><clause id="H8EA63E22368A4C71B7DED9282269A7BD"><enum>(ii)</enum><text>such first month of such theoretical
individual’s entitlement to such old-age insurance benefit were the entitlement
month of the widower (or surviving divorced husband), and</text>
</clause><clause id="HCCA65FE982244E40004BEE8950C1F3A7"><enum>(iii)</enum><text>the month in which the theoretical
individual attained or would attain retirement age (as defined in section
216(l)) were the month in which the widower (or surviving divorced husband)
attained or would attain retirement age (as so defined).</text>
</clause></subparagraph><subparagraph id="HCB31E98949FD4F228CF3CE343DDC8740" indent="up1"><enum>(H)</enum><text>If, in determining the amount of the
benefit under this section pursuant to this paragraph, the imputed old-age
insurance benefit or imputed wife’s insurance benefit of the deceased
individual was deemed to be zero pursuant to the last sentence of clause (ii)
or (iii) of subparagraph (D), or the imputed survivor benefit of the widower
(or surviving divorced husband) was deemed to be zero pursuant to the last
sentence of subparagraph (F), effective for any month after the entitlement
month of the widower (or surviving divorced husband) in which the deceased
individual would have attained age 62 or he attains age 62, the Commissioner
shall recompute the amount of the benefit under this paragraph by substituting
a reference to such later month for each reference in the preceding provisions
of this paragraph to his entitlement month.</text>
</subparagraph><subparagraph id="HFF6AD315D80C493AACE35101CFC08E6D" indent="up1"><enum>(I)</enum><clause commented="no" display-inline="yes-display-inline" id="HE288463F514D4AEEA47594924FA290E6"><enum>(i)</enum><text>Any reference in this
paragraph to the widower’s insurance benefit (as determined under the preceding
paragraphs of this subsection) shall be deemed a reference to such benefit,
taking into account all applicable reductions and deductions under this
title.</text>
</clause><clause id="H31E5B27854C94186B69700EF23036792" indent="up1"><enum>(ii)</enum><text>Any reference in this paragraph to
the imputed old-age insurance benefit or imputed wife’s insurance benefit
described in subparagraph (D), the old-age insurance benefit, disability
insurance benefit, or wife’s insurance benefit described in subparagraph (E),
or the old-age insurance benefit, disability insurance benefit, or husband’s
insurance benefit described in subparagraph (F) shall be deemed a reference to
such benefit, taking into account applicable reductions under this section but
disregarding reductions or deductions otherwise applicable under this
title.</text>
</clause><clause id="H8C75A8FE0358470BAB07FC037301227C" indent="up1"><enum>(iii)</enum><text>A widower’s insurance benefit which
has been increased under this paragraph shall be subject to all reductions and
deductions otherwise applicable to widower’s insurance benefits under this
title, except that such benefit shall not be subject to any reduction otherwise
applicable under subsection
(q)(1).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H49B5B99DD0B548658444833D2F240077"><enum>(c)</enum><header>Cost-of-living
adjustments to guaranteed widow’s and widower’s insurance
benefits</header><text>Section 215(i)(2)(A)(ii) of such Act (42 U.S.C.
415(i)(2)(A)(ii)) is amended—</text>
<paragraph id="HB0FAFD231A464BA5946204B7D8F2064"><enum>(1)</enum><text>in
subclause (II), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H01329779E27C4505A25D6FC430E10074"><enum>(2)</enum><text>in subclause
(III), by striking <quote>1978.</quote> and inserting <quote>1979,
and</quote>;</text>
</paragraph><paragraph id="H50B50670F9CE4C18938007516E5009F4"><enum>(3)</enum><text>by adding at the
end the following new subclause:</text>
<quoted-block id="HAED6F11844DA40CAAB6699E078E657F" style="traditional">
<subclause id="HB5B48B1998EF4A10A54C00FE14829C1" indent="up3"><enum>(IV)</enum><text>the benefit amount to which an
individual is entitled for that month under subsection (e) or (f) of section
202 if such benefit amount has been increased under paragraph (9) of such
subsection.</text>
</subclause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H20A809F9F7D9414B9C107FC18B10016"><enum>(4)</enum><text>in
the matter following subclause (IV) (added by paragraph (3)), by striking
<quote>(I), (II), and (III)</quote> and inserting <quote>(I), (II), (III), and
(IV)</quote>.</text>
</paragraph></subsection><subsection id="H452B7EB8C49E4AF7AE41FE99F7A82394"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to widow’s and widower’s insurance benefits for months after November of the
calendar year in which this Act is enacted.</text>
</subsection></section><section id="H8A5119070A564C55B2568504ADE55EE6"><enum>203.</enum><header>Benefits for
disabled widows and widowers without regard to age</header>
<subsection id="H95CA96E43AD2426580D900EB444D3E4F"><enum>(a)</enum><header>Eligibility for
widow’s insurance benefits</header><text>Section 202(e)(1)(B)(ii) of the
<act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.
402(e)(1)(B)(ii)) is amended by striking <quote>has attained age 50 but has not
attained age 60 and</quote>.</text>
</subsection><subsection id="H2B5D7895A1F8499C96C92E6B54E0543"><enum>(b)</enum><header>Eligibility for
widower’s insurance benefits</header><text>Section 202(f)(1)(B)(ii) of such Act
(<external-xref legal-doc="usc" parsable-cite="usc/42/402">42 U.S.C. 402(f)(1)(B)(ii)</external-xref>) is amended by striking <quote>has attained age 50
but has not attained age 60 and</quote>.</text>
</subsection><subsection id="H017625A73BFE4735ACDBE10377F00E8"><enum>(c)</enum><header>Conforming
amendment</header><text>Section 202(q)(3)(A) of such Act (42 U.S.C.
402(q)(3)(A)) is amended by striking <quote>If the first month</quote> and all
that follows through <quote>widow’s or widower’s insurance benefit)</quote> and
inserting <quote>If the first month for which an individual both is entitled to
a wife’s or husband’s insurance benefit and has attained age 62 or for which an
individual is entitled to a widow’s or widower’s insurance
benefit</quote>.</text>
</subsection><subsection id="HED55085D4E2741CB92883841D8002B00"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to monthly insurance benefits payable under title II of the
<act-name parsable-cite="SSA">Social Security Act</act-name> for months after
November of the calendar year in which this Act is enacted and for which
applications are filed or pending after November of such year.</text>
</subsection></section><section id="H7891A00F394F4F95A36F5F55985DAFF9"><enum>204.</enum><header>Repeal of
7-YEAR restriction on eligibility for widow’s and widower’s insurance benefits
based on disability</header>
<subsection id="H09B28C98D1744323A7662B0068B2B0C"><enum>(a)</enum><header>Widow’s insurance
benefits</header>
<paragraph id="HEF2DFF8DCA93423D8F34093780C62BBE"><enum>(1)</enum><header>In
general</header><text>Section 202(e) of the <act-name parsable-cite="SSA">Social Security Act</act-name> (as amended by section
202(a) of this Act) is further amended—</text>
<subparagraph id="H3C8EFBEC81164270A3D526CEDAE4543B"><enum>(A)</enum><text>in paragraph
(1)(B)(ii), by striking <quote>which began before the end of the period
specified in paragraph (4)</quote>;</text>
</subparagraph><subparagraph id="HA62C79A257284E2DA99973942CC27100"><enum>(B)</enum><text>in paragraph
(1)(F)(ii), by striking <quote>(I) in the period specified in paragraph (4) and
(II)</quote>;</text>
</subparagraph><subparagraph id="H0BA19E8BF835422E857B3922D7167F88"><enum>(C)</enum><text>by striking
paragraph (4) and by redesignating paragraphs (5) through (9) as paragraphs (4)
through (8), respectively; and</text>
</subparagraph><subparagraph id="H6195A44105964FF4A1CF5FEDDC57B600"><enum>(D)</enum><text>in paragraph
(4)(A)(ii) (as redesignated), by striking <quote>whichever</quote> and all that
follows through <quote>begins</quote> and inserting <quote>the first day of the
seventeenth month before the month in which her application is
filed</quote>.</text>
</subparagraph></paragraph><paragraph id="H9FB99CFA56AB4EECB1DE13BCCCCD44A"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="HFEDCD53F15A24E4283CA96ADC37EE450"><enum>(A)</enum><text>Section
202(e)(1)(F)(i) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/402">42 U.S.C. 402(e)(1)(F)(i)</external-xref>) is amended by striking
<quote>paragraph (5)</quote> and inserting <quote>paragraph (4)</quote>.</text>
</subparagraph><subparagraph id="HA3F600F29B6B464B902BBD7BA54E7DF4"><enum>(B)</enum><text>Section
202(e)(1)(C)(ii)(III) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/402">42 U.S.C. 402(e)(2)(C)(ii)(III)</external-xref>) is amended
by striking <quote>paragraph (8)</quote> and inserting <quote>paragraph
(6)</quote>.</text>
</subparagraph><subparagraph id="H4CE7F42C56ED40CB96DCD25947A0C3AB"><enum>(C)</enum><text>Section
226(e)(1)(A)(i) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/426">42 U.S.C. 426(e)(1)(A)(i)</external-xref>) is amended by striking
<quote>202(e)(4),</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H90F9DD62F81B4CF38BA6AA1F9CF8E7B"><enum>(b)</enum><header>Widower’s
insurance benefits</header>
<paragraph id="HC95BF8FE3F374066B9DC10C8251D138"><enum>(1)</enum><header>In
general</header><text>Section 202(f) of such Act (as amended by section 202(b)
of this Act) is further amended—</text>
<subparagraph id="HFCB83DDB601C4451B0562EF5E0428646"><enum>(A)</enum><text>in paragraph
(1)(B)(ii), by striking <quote>which began before the end of the period
specified in paragraph (4)</quote>;</text>
</subparagraph><subparagraph id="H3D9170630D52499EA7AA17827421353B"><enum>(B)</enum><text>in paragraph
(1)(F)(ii), by striking <quote>(I) in the period specified in paragraph (4) and
(II)</quote>;</text>
</subparagraph><subparagraph id="H6E245F261A1F4DACA776BE83D9E1209F"><enum>(C)</enum><text>by striking
paragraph (4) and by redesignating paragraphs (5) through (9) as paragraphs (4)
through (8), respectively; and</text>
</subparagraph><subparagraph id="H5C2DC3F91B62476AAFCFE54EB9B079E9"><enum>(D)</enum><text>in paragraph
(4)(A)(ii) (as redesignated), by striking <quote>whichever</quote> and all that
follows through <quote>begins</quote> and inserting <quote>the first day of the
seventeenth month before the month in which his application is
filed</quote>.</text>
</subparagraph></paragraph><paragraph id="H0196A6EBEC4B4DE98336D8DE37B274A0"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="HCFA66682103A4A15A38EBA86DCAF4B9B"><enum>(A)</enum><text>Section
202(f)(1)(F)(i) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/402">42 U.S.C. 402(f)(1)(F)(i)</external-xref>) is amended by striking
<quote>paragraph (5)</quote> and inserting <quote>paragraph (4)</quote>.</text>
</subparagraph><subparagraph id="H8D138C533E04407AADC0E5BD52E5D728"><enum>(B)</enum><text>Section
202(f)(1)(C)(ii)(III) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/402">42 U.S.C. 402(f)(2)(C)(ii)(III)</external-xref>) is amended
by striking <quote>paragraph (8)</quote> and inserting <quote>paragraph
(6)</quote>.</text>
</subparagraph><subparagraph id="H58F298836EBC404CA3FD3155B64085C0"><enum>(C)</enum><text>Section
226(e)(1)(A)(i) of such Act (as amended by subsection (a)(2)) is further
amended by striking <quote>202(f)(1)(B)(ii), and 202(f)(4)</quote> and
inserting <quote>and 202(f)(1)(B)(ii)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HF875B0D6AE014B8A96D50017F47BFAC2"><enum>(c)</enum><header>Conforming
amendment</header><text>Section 215(i)(2)(A)(ii)(IV) of such Act (as added by
section 202(c)(3) of this Act) is amended by striking <quote>paragraph
(9)</quote> and inserting <quote>paragraph (8)</quote>.</text>
</subsection><subsection id="HE035DF9312C54678A6591490C222AEEB"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to benefits for months after November of the calendar year in which this Act is
enacted and for which applications are filed or pending after November of such
year.</text>
</subsection></section><section id="H977A04159BB34C15BC19550043AAFFE5"><enum>205.</enum><header>Exemption from
two-year waiting period for divorced spouse’s benefits upon other spouse’s
remarriage</header>
<subsection id="H6D91082C283045CC815F4B28B3AB8300"><enum>(a)</enum><header>Wife’s insurance
benefits</header><text>Section 202(b)(4)(A) of the
<act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.
402(b)(4)(A)) is amended by adding at the end the following new sentence:
<quote>The criterion for entitlement under clause (ii) shall be deemed met upon
the remarriage of the insured individual to someone other than the applicant
during the 2-year period referred to in such clause.</quote>.</text>
</subsection><subsection id="H8B57C17366534344B5755436C4659E01"><enum>(b)</enum><header>Husband’s
insurance benefits</header><text>Section 202(c)(4)(A) of such Act (42 U.S.C.
402(c)(4)(A)) is amended by adding at the end the following new sentence:
<quote>The criterion for entitlement under clause (ii) shall be deemed met upon
the remarriage of the insured individual to someone other than the applicant
during the 2-year period referred to in such clause.</quote>.</text>
</subsection><subsection id="HB0EF0DC9C700402EA7A9AE66A1AAE15B"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to benefits for months after November of the calendar year in which this Act is
enacted and for which applications are filed or pending after November of such
year.</text>
</subsection></section><section id="H88BE3E4D78F64EE5B84F9D122D564726"><enum>206.</enum><header>Increase in
amount of wages and self-employment income credited to years taken into account
in determining average indexed monthly earnings for beneficiaries precluded
from remunerative work by need to provide child care</header>
<subsection id="H0782ACB47CC14BF29ECC74777C289F21"><enum>(a)</enum><header>In
general</header><text>Section 215(b)(3) of the <act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C. 415(b)(3)</external-xref>) is
amended—</text>
<paragraph id="H05A9E80E475F47E1BD1FC882345D15B"><enum>(1)</enum><text>in
subparagraph (A), by striking <quote>subparagraph (B)</quote> and inserting
<quote>subparagraphs (B) and (C)</quote>, and</text>
</paragraph><paragraph id="H0524B91EC9E149639FC2592E74D55144"><enum>(2)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block id="H3FE423B472D8424AA0A62EF28B922DB1" style="traditional">
<subparagraph id="HE41A90EC6287444EA56E2966B14E4FDF" indent="up2"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="H6E484FD270C44DBBA5F24BE210158310"><enum>(i)</enum><text>Subject to clause (iii),
in any case in which—</text>
<subclause id="H02D7E6DE1741402EBA3E80407FB077DB" indent="up1"><enum>(I)</enum><text>in any calendar year which is included
in an individual’s elapsed years, such individual was living with a child (of
such individual or his or her spouse) under the age of 7, and</text>
</subclause><subclause id="H1F062DA2C928435F00DE1D1DE6E0CB29" indent="up1"><enum>(II)</enum><text>at any time during or after such
calendar year and on or before the date of the application by such individual
for benefits based on such individual’s wages and self-employment income, such
individual submits to the Commissioner, in such form as the Commissioner shall
prescribe by regulation, a written statement that the requirements of subclause
(I) are met with respect to such calendar year,</text>
</subclause><continuation-text continuation-text-level="clause" indent="subsection">the amount of the wages and self-employment income
paid in or credited to such year under subparagraph (A), if less than the
minimum credit amount for such individual for such year, shall be deemed equal
to such minimum credit amount.</continuation-text></clause><clause id="H3E804B3C26EC4F8B98DD28CC7B2DCD2" indent="up1"><enum>(ii)</enum><text>For purposes of clause (i), the
minimum credit amount for an individual described in clause (i) for any
calendar year shall be an amount equal to the product derived by
multiplying—</text>
<subclause id="H3317FE1F01B24520A4866D847CB4E7F3"><enum>(I)</enum><text>subject to clause (iii),
<fraction>1/4</fraction> of the average indexed monthly earnings of such
individual, determined as if such individual became entitled to disability
insurance benefits on January 1 of such year (disregarding any elapsed year
with respect to which wages and self-employment income of such individual are
deemed to be increased under this subparagraph), by</text>
</subclause><subclause id="H7CA8164B0D824DCC99579767A8F2B28"><enum>(II)</enum><text>the number of months in such year
during which such individual meets the requirements of clause (i)(I).</text>
</subclause></clause><clause id="H1717B2F59689498E832126A0DBC8A913" indent="up1"><enum>(iii)</enum><text>In any case in which a minimum
credit amount for an individual is determined under clause (ii) for 2 or more
elapsed years, the amount determined in the case of such individual under
clause (ii)(I) in connection with each such elapsed year shall not be less than
the amount determined under clause (ii)(I) for such individual under clause
(ii)(I) in connection with the latest of such 2 or more elapsed years.</text>
</clause><clause id="HFC1046B964B44870BB6069228CE48555" indent="up1"><enum>(iv)</enum><text>Clause (i) shall apply only with
respect to not more than 5 elapsed years designated by the individual described
in clause (i) with respect to which such individual submits a statement under
clause (i)(II).</text>
</clause><clause id="H42170DCD265B426481FA4E3E7F98F7A" indent="up1"><enum>(v)</enum><text>Clause (i) shall not apply in the
case of an individual with respect to any calendar year referred to in clause
(i)(I), if such individual’s spouse referred to in such clause was also living
with the child referred to in such clause in such year, and—</text>
<subclause id="HFDA6838622854C2787CA90B0B6D0039E"><enum>(I)</enum><text>the amount of such individual’s wages
and self-employment income paid in or credited to such year (as determined
before the application of this subparagraph) is greater than the amount of the
wages and self-employment income paid in or credited to such year (as so
determined) of such spouse, or</text>
</subclause><subclause id="HABB5411D1FA746F884C4D3782D1B9467"><enum>(II)</enum><text>in any case in which the amount of
the wages and self-employment income of such individual paid in or credited to
such year is equal to the wages and self-employment income of such individual’s
spouse paid in or credited to such year, the amount determined under clause
(ii)(I) in connection with such calendar year in the case of such individual is
greater than the amount so determined in the case of such individual’s
spouse.</text>
</subclause><continuation-text continuation-text-level="clause">In any case
in which the requirements of neither subclause (I) nor subclause (II) are met
in the case of such individual with respect to any calendar year, the
Commissioner of Social Security shall provide by regulation for the application
of clause (i) only with respect to one of the two spouses in accordance with
the equities of the
case.</continuation-text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H69DAEE5BA0464FCEA4FF874D7131C26B"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply with respect to benefits for months after November of
the calendar year in which this Act is enacted.</text>
</subsection></section><section id="H3B7D8D1542BE4618AE17C31867EEFFC8"><enum>207.</enum><header>Government
pension offset reduced from two-thirds to one-third of the Government
pension</header>
<subsection id="HE4351EBD6CAC452E9B203911737D0888"><enum>(a)</enum><header>In
general</header><text>Section 202(k)(5)(A) of the <act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/402">42 U.S.C. 402(k)(5)(A)</external-xref>) is
amended by striking <quote>two-thirds</quote> and inserting
<quote>one-third</quote>.</text>
</subsection><subsection id="HBABD179105DD4EFB94D4A455F2EEF7BB"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply with respect
to benefits for months after November of the calendar year in which this Act is
enacted.</text>
</subsection></section>