,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #ecjf  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,july #ca1 #bjad ,mr4 
,l>son ( ,connecticut introduc$ ! foll[+
 bill2 :i* 0 ref]r$ to ! ,committee on  
,ways & ,means1 & 9 addition to !       
,committees on ,education & ! ,work=ce &
 ! ,budget1 = a p]iod to be subsequ5tly 
det]m9$ by ! ,speak]1 9 ea* case =      
consid]ation ( su* provisions z fall )9 
! jurisdiction ( ! committee conc]n$  ,a
 ,,bill  ,to protect our ,social        
,security sy/em & improve b5efits =     
curr5t & future g5]ations4  #a4 ,%ort   
title ,?is ,act may be cit$ z ! ,social 
,security #bajj ,act4  ,i ,/r5g!n+      
,b5efits  #aja4 ,across-!-bo>d b5efit   
increase  7a7 ,9 g5]al ,section         
#bae7;a77#a77;,a77i7 ( ! ,social        
,security ,act 7#db ,u4,s4,c4           
#dae7;a77#a77;,a77i77 is am5d$ by /rik+ 
#ij p]c5t & ins]t+ #ic p]c5t4  7b7      
,effective date  7#a7 ,9 g5]al ,!       
am5dm5t made by subsection 7a7 %all     
apply ) respect to mon?ly insurance     

b5efits payable = any mon? aft] ,decemb]
 #bjad4  7#b7 ,recomputation ( prim>y   
insurance am\nts ,not)/&+ section       
#bae7;f7 ( ! ,social ,security ,act1 !  
,commission] ( ,social ,security %all   
recompute prim>y insurance am\nts       
orig9ally comput$ = mon?s prior to      
,janu>y #bjae to ! ext5t necess>y to    
c>ry out ! am5dm5ts made by ?is section4
  #ajb4 ,computation ( co/-(-liv+       
increases  7a7 ,9 g5]al ,section        
#bae7;i77#a7 ( ! ,social ,security ,act 
7#db ,u4,s4,c4 #dae7;i77#a77 is am5d$ by
 add+ at ! end ! foll[+ new subp>agraph3
  7,h7 ! t]m ,consum] ,price ,index     
means ! ,consum] ,price ,index = ,eld]ly
 ,consum]s 7,,cpi-,e1 z publi%$ by !    
,bureau ( ,labor ,/ati/ics ( ! ,dep>tm5t
 ( ,labor74  4  7b7 ,application to     
pre-#aigi law  7#a7 ,9 g5]al ,section   
#bae7;i77#a7 ( ! ,social ,security ,act 
z 9 effect 9 ,decemb] #aigh1 & z appli$ 
9 c]ta9 cases "u ! provisions ( su* ,act
 z 9 effect aft] ,decemb] #aigh1 is     
am5d$ by add+ at ! end ! foll[+ new     

subp>agraph3  7,d7 ! t]m ,consum] ,price
 ,index means ! ,consum] ,price ,index =
 ,eld]ly ,consum]s 7,,cpi-,e1 z publi%$ 
by ! ,bureau ( ,labor ,/ati/ics ( !     
,dep>tm5t ( ,labor74  4  7#b7 ,con=m+   
*ange ,section #bae7;i77#d7 ( ! ,social 
,security ,act 7#db ,u4,s4,c4           
#dae7;i77#d77 is am5d$ by ins]t+ & by   
section #ajb ( ! ,social ,security #bajj
 ,act aft] #aihf4  7c7 ,no effect on    
adju/m5ts "u o!r laws ,section #bae7;i7 
( ! ,social ,security ,act 7#db         
,u4,s4,c4 #dae7;i77 is am5d$ by add+ at 
! end ! foll[+3  7#f7 ,any provision (  
law 7o!r ?an 9 ?is title1 title ,,viii1 
or title ,,xvi7 :i* provides = adju/m5t 
( an am\nt bas$ on a *ange 9 b5efit     
am\nts result+ f a det]m9ation made "u  
?is subsection %all be appli$ & adm9i/]$
 )\t reg>d to ! am5dm5ts made by section
 #ajb ( ! ,social ,security #bajj ,act4 
4  7d7 ,publication ( ,consum] ,price   
,index = ,eld]ly ,consum]s ,! ,bureau ( 
,labor ,/ati/ics ( ! ,dep>tm5t ( ,labor 
%all prep>e & publi% ! index au?oriz$ by

 section #aia ( ! ,old] ,am]icans       
,am5dm5ts ,act ( #aihg 7#bi ,u4,s4,c4 #b
 note7 = ea* cal5d> mon?1 beg9n+ ) ,july
 ( ! cal5d> ye> foll[+ ! cal5d> ye> 9   
:i* ?is ,act is enact$1 & su* index %all
 be kn[n z ! ,consum] ,price ,index =   
,eld]ly ,consum]s4  7e7 ,effective date 
,! am5dm5ts made by subsection 7a7 %all 
apply to det]m9ations made ) respect to 
co/-(-liv+ computation qu>t]s 7z def9$ 9
 section #bae7;i77#a77;,b7 ( ! ,social  
,security ,act 7#db ,u4,s4,c4           
#dae7;i77#a77;,b777 end+ on or aft]     
,septemb] #cj ( ! second cal5d> ye>     
foll[+ ! cal5d> ye> 9 :i* ?is ,act is   
enact$4  #ajc4 ,increase 9 m9imum b5efit
 = lifetime l[ e>n]s bas$ on ye>s 9 !   
work=ce  7a7 ,9 g5]al ,section          
#bae7;a77#a7 ( ! ,social ,security ,act 
7#db ,u4,s4,c4 #dae7;a77#a77 is am5d$-- 
7#a7 by r$esignat+ subp>agraph 7,d7 z   
subp>agraph 7,e72 &  7#b7 by ins]t+ aft]
 subp>agraph 7,c7 ! foll[+ new          
subp>agraph3  7,d7  7i7 ,effective )    
respect to ! b5efits ( individuals :o   

become eligible = old-age insurance     
b5efits or disability insurance b5efits 
7or die be=e becom+ s eligible7 aft]    
#bjad1 no prim>y insurance am\nt comput$
 "u subp>agraph 7,a7 may be less ?an !  
great] (--  7,i7 ! m9imum mon?ly am\nt  
comput$ "u subp>agraph 7,c72 or  7,,ii7 
9 ! case ( an individual :o has m ?an   
#aj ye>s ( "w 7z def9$ 9 clause         
7iv77,i771 ! alt]native m9imum am\nt    
det]m9$ "u clause 7ii74  7ii7  7,i7 ,!  
alt]native m9imum am\nt det]m9$ "u ?is  
clause is ! applicable p]c5tage ( #a_/ab
 ( ! annual doll> am\nt det]m9$ "u      
clause 7iii7 = ! ye> 9 :i* ! am\nt is   
det]m9$4  7,,ii7 ,= purposes ( subclause
 7,i71 ! applicable p]c5tage is !       
p]c5tage specifi$ 9 connection ) ! numb]
 ( ye>s ( "w1 z set =? 9 ! foll[+ table3
 ,if ! numb] ( years,the applicable ( "w
 is3p]c5tage is3#aaf4be p]c5t#abab4ej   
p]c5t#acah4ge p]c5t#adbe4jj             
p]c5t#aeca4be p]c5t#afcg4ej             
p]c5t#agdc4ge p]c5t#ahej4jj             
p]c5t#aief4be p]c5t#bjfb4ej             

p]c5t#bafh4ge p]c5t#bbge4jj             
p]c5t#bcha4be p]c5t#bdhg4ej             
p]c5t#beic4ge p]c5t#bfajj4jj            
p]c5t#bgajf4be p]c5t#bhaab4ej           
p]c5t#biaah4ge p]c5t#cj or m#abe4jj     
p]c5t4  7iii7 ,! annual doll> am\nt     
det]m9$ "u ?is clause is--  7,i7 =      
cal5d> ye> #bjae1 ! pov]ty guidel9e =   
#bjad2 &  7,,ii7 = any cal5d> ye> aft]  
#bjae1 ! annual doll> am\nt = #bjae     
multipli$ by ! ratio (--  7aa7 !        
national av]age wage index 7z def9$ 9   
section #bji7k77#a77 = ! second cal5d>  
ye> prec$+ ! cal5d> ye> = :i* !         
det]m9ation is made1 to  7bb7 ! national
 av]age wage index 7z s def9$7 = #bjac4 
7iv7 ,= purposes ( ?is subp>agraph--    
7,i7 ! t]m ye> ( "w means1 ) respect to 
an individual1 a ye> to :i* #d qu>t]s ( 
cov]age h be5 cr$it$ bas$ on su*        
individual's wages & self-employm5t     
income2 &  7,,ii7 ! t]m pov]ty guidel9e 
= #bjad means ! annual pov]ty guidel9e =
 #bjad 7z updat$ annually 9 ! ,f$]al    
,regi/] by ! ,dep>tm5t ( ,heal? & ,human

 ,s]vices "u ! au?ority ( section       
#fgc7b7 ( ! ,omnibus ,budget            
,reconciliation ,act ( #aiha7 z         
applicable to a s+le individual4  4  7b7
 ,recomputation ,not)/&+ section        
#bae7;f77#a7 ( ! ,social ,security ,act1
 ! ,commission] ( ,social ,security %all
 recompute prim>y insurance am\nts      
orig9ally comput$ = mon?s prior to      
,novemb] #bjad to ! ext5t necess>y to   
c>ry out ! am5dm5ts made by ?is section4
  7c7 ,con=m+ am5dm5t ,section          
#bji7k77#a7 ( su* ,act 7#db ,u4,s4,c4   
#dji7k77#a77 is am5d$ by ins]t+         
#bae7;a77#a77;,e71 aft]                 
#bae7;a77#a77;,d714  #ajd4 ,increase 9  
?re%old am\nts & rate = inclusion (     
social security b5efits 9 income  7a7 ,9
 g5]al ,subsection 7a7 ( section #hf ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 to read z foll[s3  7a7 ,9 g5]al ,gross 
income = ! taxable ye> ( any taxpay]    
describ$ 9 subsection 7b7 7not)/&+      
section #bjg ( ! ,social ,security ,act7
 includes social security b5efits 9 an  

am\nt equal to ! less] (--  7#a7 #he    
p]c5t ( ! social security b5efits       
receiv$ dur+ ! taxable ye>1 or  7#b7    
"o-half ( ! excess describ$ 9 subsection
 7b77#a74  4  7b7 ,base am\nt           
,subsection 7c7 ( section #hf ( su*     
,code is am5d$ to read z foll[s3  7c7   
,base am\nt ,= purposes ( ?is section1 !
 t]m base am\nt means--  7#a7 except z  
o!rwise provid$ 9 ?is p>agraph1 #ej1jjj1
  7#b7 #ajj1jjj 9 ! case ( a jo9t       
return1 &  7#c7 z]o 9 ! case ( a taxpay]
 :o--  7,a7 is m>ri$ z ( ! close ( !    
taxable ye> 7)9 ! mean+ ( section #ggjc7
 b does n file a jo9t return = su* ye>1 
&  7,b7 does n live ap>t f 8 sp\se at   
all times dur+ ! taxable ye>4  4  7c7   
,hospital ,insurance ,tru/ ,fund held   
h>mless ,section #aba7;e77#a7 ( !       
,social ,security ,am5dm5ts ( #aihf 7#db
 ,u4,s4,c4 #dja note7 is am5d$ by add+  
at ! end ! foll[+ new subp>agraph3  7,c7
 ,! am\nts appropriat$ to ! hospital    
insurance tru/ fund by subp>agraph 7,b7 
%all be det]m9$1 & transf]r$ f ! g5]al  

fund1 at su* times & 9 su* mann] s z to 
replicate1 to ! ext5t possible1 !       
appropriations & transf]s :i* w\ld h    
occurr$ ) respect to su* tru/ fund _h   
subsections 7a7 & 7b7 ( section #ajd ( !
 ,social ,security #bajj ,act n be5     
enact$4  4  7d7 ,effective date ,!      
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjad4  ,,ii ,/r5g!n+ ! ,tru/ ,fund
  #bja4 ,det]m9ation ( wages &          
self-employm5t income above contribution
 & b5efit base aft] #bjac  7a7          
,det]m9ation ( wages above contribution 
& b5efit base aft] #bjad  7#a7 ,am5dm5ts
 to ! ,int]nal ,rev5ue ,code  7,a7 ,9   
g5]al ,p>agraph 7#a7 ( section #caba7;a7
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by ins]t+ aft] su* cal5d> ye>4 !  
foll[+3 ,! prec$+ s5t5ce %all apply only
 to cal5d> ye>s = :i* ! contribution &  
b5efit base 7z s det]m9$7 is less ?an   
#djj1jjj1 &1 = su* cal5d> ye>s1 only to 
! ext5t remun]ation paid to su* employee
 by su* employ] ) respect to employm5t  

does n exce$ #djj1jjj44  7,b7 ,con=m+   
am5dm5t ,p>agraph 7#a7 ( section        
#caba7;a7 ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by /rik+ ,act7 to &      
ins]t+ ,act71 or 9 excess ( #djj1jjj1   
to4  7#b7 ,am5dm5t to ! ,social         
,security ,act ,section                 
#bji7;a77#a77;,i7 ( ! ,social ,security 
,act 7#db ,u4,s4,c4 #dji7;a77#a77;,i77  
is am5d$ by ins]t+ be=e ! semicolon at !
 end ! foll[+3 except t ?is subp>agraph 
%all apply only to cal5d> ye>s = :i* !  
contribution & b5efit base 7z s det]m9$7
 is less ?an #djj1jjj1 &1 = su* cal5d>  
ye>s1 only to ! ext5t remun]ation paid  
to su* employee by su* employ] ) respect
 to employm5t does n exce$ #djj1jjj4    
7#c7 ,effective date ,! am5dm5ts made by
 ?is subsection %all apply ) respect to 
remun]ation paid 9 cal5d> ye>s aft]     
#bjad4  7b7 ,det]m9ation (              
self-,employm5t income above            
contribution & b5efit base aft] #bjad   
7#a7 ,am5dm5ts to ! ,int]nal ,rev5ue    
,code  7,a7 ,9 g5]al ,p>agraph 7#a7 (   

section #adjb7;b7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ to read z foll[s3
  7#a7 9 ! case ( ! tax impos$ by       
section #adja7;a71 an am\nt equal to--  
7,a7 #djj1jjj1 r$uc$ 7b n bel[ z]o7 by  
7,b7 ! sum (--  7i7 ! "p ( ! net e>n+s f
 self-employm5t 7if any7 :i* is n 9     
excess (--  7,i7 ! am\nt equal to !     
contribution & b5efit base 7z det]m9$ "u
 section #bcj ( ! ,social ,security     
,act7 :i* is effective = ! cal5d> ye> 9 
:i* su* taxable ye> beg9s1 m9us  7,,ii7 
! am\nt ( ! wages paid to su* individual
 dur+ su* taxable ye>1 plus  7ii7 !     
am\nt ( ! wages paid to su* individual  
dur+ su* taxable ye> :i* is 9 excess ( !
 am\nt 9 clause 7i77,i72 or  4  7,b7    
,phase\t ,subsection 7b7 ( section #adjb
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by add+ at ! end ! foll[+3        
,p>agraph 7#a7 %all apply only to       
taxable ye>s beg9n+ 9 cal5d> ye>s = :i* 
! contribution & b5efit base 7z det]m9$ 
"u section #bcj ( ! ,social ,security   
,act7 is less ?an #djj1jjj44  7#b7      

,am5dm5ts to ! ,social ,security ,act   
7,a7 ,9 g5]al ,section #baa7;b77#a7 ( ! 
,social ,security ,act 7#db ,u4,s4,c4   
#daa7;b77 is am5d$--  7i7 9 subp>agraph 
7,i7--  7,i7 by ins]t+ & be=e #bjad aft]
 #aigd2 &  7,,ii7 by /rik+ or at ! end2 
&  7ii7 by add+ at ! end ! foll[+3  7,j7
 ,= any taxable ye> beg9n+ 9 any cal5d> 
ye> aft] #bjad1 an am\nt equal to--  7i7
 #djj1jjj1 r$uc$ 7b n bel[ z]o7 by  7ii7
 ! sum (--  7,i7 ! "p ( ! net e>n+s f   
self-employm5t 7if any7 :i* is n 9      
excess (--  7aa7 ! am\nt equal to !     
contribution & b5efit base 7z det]m9$ "u
 section #bcj7 :i* is effective = !     
cal5d> ye> 9 :i* su* taxable ye> beg9s1 
m9us  7bb7 ! am\nt ( ! wages paid to su*
 individual dur+ su* taxable ye>1 plus  
7,,ii7 ! am\nt ( ! wages paid to su*    
individual dur+ su* taxable ye> :i* is 9
 excess ( ! am\nt 9 subclause 7,i77aa72 
or  4  7,b7 ,phase\t ,section #baa7;b7 (
 ! ,social ,security ,act 7#db ,u4,s4,c4
 #daa7;b77 is am5d$ by add+ at ! end !  
foll[+3 ,p>agraph 7#a7 %all apply only  

to taxable ye>s beg9n+ 9 cal5d> ye>s =  
:i* ! contribution & b5efit base 7z     
det]m9$ "u section #bcj7 is less ?an    
#djj1jjj44  7#c7 ,effective date ,!     
am5dm5ts made by ?is subsection %all    
apply to net e>n+s f self-employm5t     
d]iv$1 & remun]ation paid1 9 cal5d> ye>s
 aft] #bjad4  #bjb4 ,inclusion ( e>n+s  
ov] #djj1jjj 9 social security b5efit   
=mula  7a7 ,inclusion ( e>n+s ov]       
#djj1jjj 9 det]m9ation ( prim>y         
insurance am\nts ,section               
#bae7;a77#a77;,a7 ( ! ,social ,security 
,act 7#db ,u4,s4,c4 #dae7;a77#a77;,a77  
is am5d$--  7#a7 9 clause 7ii71 by /rik+
 & at ! end2  7#b7 9 clause 7iii71 by   
ins]t+ & at ! end2 &  7#c7 by ins]t+    
aft] clause 7iii7 ! foll[+3  7iv7 #b    
p]c5t ( ! individual's excess av]age    
index$ mon?ly e>n+s 7z def9$ 9          
subsection 7b77#e77;,a774  4  7b7       
,def9ition ( excess av]age index$ mon?ly
 e>n+s ,section #bae7;b7 ( ! ,social    
,security ,act 7#db ,u4,s4,c4 #dae7;b77 
is am5d$--  7#a7 by /rik+ wages &       

self-employm5t income ea* place su* t]ms
 appe> & ins]t+ basic wages & basic     
self-employm5t income1 respectively2 &  
7#b7 by add+ at ! end ! foll[+3  7#e7   
7,a7 ,an individual's excess av]age     
index$ mon?ly e>n+s %all be equal to !  
am\nt ( ! individual's av]age index$    
mon?ly e>n+s t w\ld be det]m9$ "u ?is   
subsection by sub/itut+ excess wages =  
basic wages & excess self-employm5t     
income = basic self-employm5t income ea*
 place su* t]ms appe> 9 ?is subsection  
7except 9 ?is p>agraph74  7,b7 ,=       
purposes ( ?is subsection--  7i7 ! t]m  
basic wages means t portion ( ! wages ( 
an individual paid 9 a ye> t does n     
exce$ ! contribution & b5efit base = !  
ye>2  7ii7 ! t]m basic self-employm5t   
income means t portion ( !              
self-employm5t income ( an individual   
cr$it$ to a ye> t does n exce$ an am\nt 
equal to ! contribution & b5efit base = 
! ye> m9us ! am\nt ( ! wages paid to !  
individual 9 ! ye>2  7iii7 ! t]m excess 
wages means t portion ( ! wages ( an    

individual paid 9 a ye> aft] #bjac 9    
excess ( ! high] ( #djj1jjj or !        
contribution & b5efit base = ! ye>2 &   
7iv7 ! t]m excess self-employm5t income 
means t portion ( ! self-employm5t      
income ( an individual cr$it$ to a ye>  
aft] #bjad 9 excess ( ! high] ( #djj1jjj
 or su* contribution & b5efit base4  4  
7c7 ,con=m+ am5dm5t ,section            
#bae7;e77#a7 ( ! ,social ,security ,act 
7#db ,u4,s4,c4 #dae7;e77#a77 is am5d$ by
 ins]t+ & be=e #bjae aft] #aigd4  7d7   
,effective date ,! am5dm5ts made by ?is 
section %all apply ) respect to         
individuals :o initially become eligible
 7)9 ! mean+ ( section #bae7;a77#c77;,b7
 ( ! ,social ,security ,act7 = old-age  
or disability insurance b5efits "u title
 ,,ii ( ! ,social ,security ,act1 or :o 
die 7be=e becom+ eligible = su*         
b5efits71 9 any cal5d> ye> aft] #bjad4  
#bjc4 ,increase 9 ,social ,security tax 
rate  7a7 ,tax on ,employees ,! table 9 
subsection 7a7 ( section #caja ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 

to read z foll[s3  ,9 cases ( wages,the 
rate ( tax receiv$ dur+3%all be3#aiij or
 any cal5d> ye> be=e #bjahf4bj          
p]c5t#bjahf4be p]c5t#bjaif4cj           
p]c5t#bjbjf4ce p]c5t#bjbaf4dj           
p]c5t#bjbbf4de p]c5t#bjbcf4ej           
p]c5t#bjbdf4ee p]c5t#bjbef4fj           
p]c5t#bjbff4fe p]c5t#bjbgf4gj           
p]c5t#bjbhf4ge p]c5t#bjbif4hj           
p]c5t#bjcjf4he p]c5t#bjcaf4ij           
p]c5t#bjcbf4ie p]c5t#bjccg4jj           
p]c5t#bjcdg4je p]c5t#bjceg4aj           
p]c5t#bjcfg4ae p]c5t#bjcg or            
!reaft]#g4bj p]c5t4 4  7b7 ,tax on      
,employ]s ,! table 9 subsection 7a7 (   
section #caaa ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ to read z foll[s3  ,9 
cases ( wages,the rate ( tax receiv$    
dur+3%all be3#aiij or any cal5d> ye>    
be=e #bjahf4bj p]c5t#bjahf4be           
p]c5t#bjaif4cj p]c5t#bjbjf4ce           
p]c5t#bjbaf4dj p]c5t#bjbbf4de           
p]c5t#bjbcf4ej p]c5t#bjbdf4ee           
p]c5t#bjbef4fj p]c5t#bjbff4fe           
p]c5t#bjbgf4gj p]c5t#bjbhf4ge           

p]c5t#bjbif4hj p]c5t#bjcjf4he           
p]c5t#bjcaf4ij p]c5t#bjcbf4ie           
p]c5t#bjccg4jj p]c5t#bjcdg4je           
p]c5t#bjceg4aj p]c5t#bjcfg4ae p]c5t#bjcg
 or !reaft]#g4bj p]c5t4 4  7c7          
,self-,employm5t ,income ,! table 9     
subsection 7a7 ( section #adja ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  ,9 cases ( wages,the 
rate ( tax receiv$ dur+3%all be3#aiij or
 any cal5d> ye> be=e #bjahab4dj         
p]c5t#bjahab4ej p]c5t#bjaiab4fj         
p]c5t#bjbjab4gj p]c5t#bjbaab4hj         
p]c5t#bjbbab4ij p]c5t#bjbcac4jj         
p]c5t#bjbdac4aj p]c5t#bjbeac4bj         
p]c5t#bjbfac4cj p]c5t#bjbgac4dj         
p]c5t#bjbhac4ej p]c5t#bjbiac4fj         
p]c5t#bjcjac4gj p]c5t#bjcaac4hj         
p]c5t#bjcbac4ij p]c5t#bjccad4jj         
p]c5t#bjcdad4aj p]c5t#bjcead4bj         
p]c5t#bjcfad4cj p]c5t#bjcg or           
!reaft]#ad4dj p]c5t4 4  7d7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to remun]ation receiv$1 &    
taxable ye>s beg9n+1 aft] ,decemb] #ca1 

#bjad4  #bjd4 ,inve/m5t ( ! ,social     
,security tru/ funds  7a7 ,9 g5]al      
,section #bja7;d7 ( ! ,social ,security 
,act 7#db ,u4,s4,c4 #dja7;d77 is am5d$--
  7#a7 by /rik+ ,x %all be ! duty &     
ins]t+ 7#a7 ,x %all be ! duty2  7#b7 by 
/rik+ ,su* inve/m5ts may be made only & 
ins]t+ ,except z provid$ 9 p>agraph     
7#b71 su* inve/m5ts may be made only2 & 
7#c7 by add+ at ! end ! foll[+3  7#b7   
7,a7 ,! ,indep5d5t ,social ,security    
,inve/m5t ,ov]sight ,bo>d %all e/abli%1 
z provid$ 9 section #bce7;a7--  7i7 a   
,common ,/ock ,old-,age ,inve/m5t ,fund 
9 ! ,f$]al ,old-,age & ,survivors       
,insurance ,tru/ ,fund2 &  7ii7 a       
,common ,/ock ,disability ,inve/m5t     
,fund 9 ! ,f$]al ,disability ,insurance 
,tru/ ,fund4  7,b7  7i7 ,9 any cal5d>   
ye> aft] #bjae 9 :i* ! ,,oasdi tru/ fund
 ratio 7z def9$ 9 subsection            
7l77#c77;,b77iii77 is project$ to be    
bel[ #aej p]c5t 9 ! #ge? ye> aft] su*   
ye>1 ! ,manag+ ,tru/ee %all transf]     
am\nts f ! ,f$]al ,old-,age & ,survivors

 ,insurance ,tru/ ,fund or ! ,f$]al     
,disability ,insurance ,tru/ ,fund into 
! ,common ,/ock ,old-,age ,inve/m5t     
,fund or ! ,common ,/ock ,disability    
,inve/m5t ,fund1 respectively1 9        
accordance ) ! policies & requirem5ts   
set =? 9 section #gad4 ,am\nts s        
transf]r$ %all be ! m9imum am\nts :i*   
w\ld result 9 a common /ock ratio = su* 
ye> t is #b4e p]c5tage po9ts great] ?an 
! common /ock ratio = ! previ\s ye>1    
except t ! common /ock ratio may n exce$
 #be p]c5t = any ye>4  7ii7 ,9 any      
cal5d> ye> aft] #bjae 9 :i* ! ,,oasdi   
tru/ fund ratio 7z def9$ 9 subsection   
7l77#c77;,b77iii77 is project$ to equal 
or exce$ #aej p]c5t 9 ! #ge? ye> aft]   
su* ye>1 ! ,manag+ ,tru/ee %all take    
appropriate actions to r$uce ! common   
/ock ratio = su* ye> by ! less] (--     
7,i7 ! m9imum r$uction necess>y to      
result 9 an ,,oasdi tru/ fund ratio 7z s
 def9$7 = su* ye> t does n exce$ #aej   
p]c5t 9 ! #ge? ye> aft] su* ye>2 or     
7,,ii7 #b4e p]c5tage po9ts4  7iii7 ,=   

purposes ( ?is subp>agraph1 ! t]m common
 /ock ratio means1 ) respect to a cal5d>
 ye>1 ! aggregate p]c5tage ( ! total    
am\nts at ! end ( su* cal5d> ye> )9 ea* 
( ! ,f$]al ,old-,age & ,survivors       
,insurance ,tru/ ,fund & ! ,f$]al       
,disability ,insurance ,tru/ ,fund t is 
ma9ta9$ 9 ! ,common ,/ock ,old-,age     
,inve/m5t ,fund or ! ,common ,/ock      
,disability ,inve/m5t ,fund1            
respectively4  4  7b7 ,effective date ,!
 am5dm5t made by subsection 7a7 %all    
apply ) respect to fiscal ye>s beg9n+ on
 or aft] ,octob] #a1 #bjae4  #bje4      
,rules gov]n+ inve/m5t ( ,tru/ ,funds 9 
common /ock ,title ,,ii ( ! ,social     
,security ,act 7#db ,u4,s4,c4 #dja et   
seq47 is am5d$ by add+ at ! end ! foll[+
 new section3  #bce4 ,inve/m5t ( ,tru/  
,funds 9 common /ock  7a7 ,common /ock  
inve/m5t funds  7#a7 ,selection ( index 
,! ,indep5d5t ,social ,security         
,inve/m5t ,ov]sight ,bo>d %all select1 =
 purposes ( inve/m5t ( am\nts held 9 a  
,common ,/ock ,inve/m5t ,fund1 an index 

:i* is a commonly recogniz$ index       
compris$ ( common /ock ! aggregate m>ket
 value ( :i* is a reasonably complete   
repres5tation ( ! ,unit$ ,/ates equity  
m>kets4  7#b7 ,portfolio design ,am\nts 
held 9 a ,common ,/ock ,inve/m5t ,fund  
%all be inve/$ 9 a portfolio design$ to 
replicate ! p]=mance ( ! index select$  
"u p>agraph 7#a74 ,! portfolio %all be  
design$ su* t1 to ! ext5t practicable1 !
 p]c5tage ( ! balance 9 su* ,acc\nt t is
 inve/$ 9 ea* /ock is ! same z !        
p]c5tage det]m9$ by divid+ ! aggregate  
m>ket value ( all %>es ( t /ock by !    
aggregate m>ket value ( all %>es ( all  
/ocks includ$ 9 su* index4  7b7 ,no vot+
 rights 9 securities ,! ,indep5d5t      
,social ,security ,inve/m5t ,ov]sight   
,bo>d & ! ,manag+ ,tru/ee ( ! ,tru/     
,funds may n ex]cise vot+ rights        
associat$ ) ! own]%ip ( securities by ! 
,tru/ ,funds4  7c7 ,engagem5t ( qualifi$
 public acc\ntant  7#a7 ,9 g5]al ,!     
,indep5d5t ,social ,security ,inve/m5t  
,ov]sight ,bo>d %all annually engage1 on

 behalf ( ! ,tru/ ,funds1 an indep5d5t  
qualifi$ public acc\ntant1 :o %all      
conduct an exam9ation ( all acc\nts &   
o!r books & records ma9ta9$ 9 !         
adm9i/ration ( ?is section z ! public   
acc\ntant consid]s necess>y to enable ! 
public acc\ntant to make ! det]m9ation  
requir$ by p>agraph 7#b74 ,! exam9ation 
%all be conduct$ 9 accordance ) g5]ally 
accept$ audit+ /&>ds & %all involve su* 
te/s ( ! acc\nts1 books1 & records z !  
public acc\ntant consid]s necess>y4     
7#b7 ,exam9ation & report ,! public     
acc\ntant conduct+ an exam9ation "u     
p>agraph 7#a7 %all det]m9e :e!r !       
acc\nts1 books1 & records ref]r$ to 9   
p>agraph 7#a7 h be5 ma9ta9$ 9 con=mity )
 g5]ally accept$ acc\nt+ pr9ciples      
appli$ on a basis consi/5t ) ! mann] 9  
:i* su* pr9ciples 7 appli$ dur+ !       
exam9ation conduct$ "u p>agraph 7#a7    
dur+ ea* prec$+ ye>4 ,! public acc\ntant
 %all transmit to ! ,bo>d1 ! ,comptroll]
 ,g5]al ( ! ,unit$ ,/ates1 & ea* ,h\se (
 ! ,congress a report on 8 exam9ation1  

includ+ 8 det]m9ation "u ?is p>agraph4  
,! ,bo>d %all make publicly available1  
by po/+ on ! ,int]net & su* o!r means z 
! ,bo>d may det]m9e1 ea* report receiv$ 
"u ! prec$+ s5t5ce4  7#c7 ,def9ition ,= 
! purposes ( ?is subsection1 ! t]m      
qualifi$ public acc\ntant %all h ! same 
mean+ z is provid$ 9 section            
#ajc7;a77#c77;,d7 ( ! ,employee         
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4                    
#ajbc7;a77#c77;,d774  7d7 ,fiduci>y     
responsibilities  7#a7 ,9 g5]al ,"u     
regulations ( ! ,secret>y ( ,labor1 !   
provisions ( sections #hdgg & #hdgh (   
title #e1 ,unit$ ,/ates ,code1 %all     
apply 9 connection ) ! am\nts ma9ta9$ 9 
a ,common ,/ock ,inve/m5t ,fund 9 ! same
 mann] & to ! same ext5t z su*          
provisions apply 9 connection ) ! ,?rift
 ,sav+s ,fund4  7#b7 ,inve/igative      
au?ority ,any au?ority available to !   
,secret>y ( ,labor "u section #ejd ( !  
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #aacd7 is   

h]eby made available to ! ,secret>y (   
,labor1 & any (fic] designat$ by !      
,secret>y ( ,labor1 to det]m9e :e!r any 
p]son has violat$1 or is ab\t to        
violate1 any provision applicable "u    
p>agraph 7#a74  7#c7 ,exculpatory       
provisions2 insurance  7,a7 ,9 g5]al    
,any provision 9 an agreem5t or in/rum5t
 :i* purports to relieve a fiduci>y f   
responsibility or liability = any       
responsibility1 obligation1 or duty "u  
?is section %all be void4  7,b7         
,insurance ,am\nts held 9 ! ,tru/ ,funds
 available = adm9i/rative exp5ses %all  
be available & may be us$ at !          
discretion ( ! ,indep5d5t ,social       
,security ,inve/m5t ,ov]sight ,bo>d to  
pur*ase insurance to cov] pot5tial      
liability ( p]sons :o s]ve 9 a fiduci>y 
capacity ) respect to am\nts ma9ta9$ 9 a
 ,common ,/ock ,inve/m5t ,fund1 )\t     
reg>d to :e!r a policy ( insurance      
p]mits rec\rse by ! insur] aga9/ !      
fiduci>y 9 ! case ( a brea* ( a fiduci>y
 obligation4  7e7 ,def9ition ( ,common  

,/ock ,inve/m5t ,fund ,9 ?is section1 ! 
t]m ,common ,/ock ,inve/m5t ,fund means 
! ,common ,/ock ,old-,age ,inve/m5t     
,fund ( ! ,f$]al ,old-,age & ,survivors 
,insurance ,tru/ ,fund & ! ,common ,/ock
 ,disability ,inve/m5t ,fund ( ! ,f$]al 
,disability ,insurance ,tru/ ,fund4  4  
#bjf4 ,e/abli%m5t ( ,indep5d5t ,social  
,security ,inve/m5t ,ov]sight ,bo>d     
,title ,,vii ( ! ,social ,security ,act 
7#db ,u4,s4,c4 #ija et seq47 is am5d$ by
 add+ at ! end ! foll[+3  #gad4         
,indep5d5t ,social ,security ,inve/m5t  
,ov]sight ,bo>d  7a7 ,!re is e/abli%$ 9 
! ,social ,security ,adm9i/ration an    
,indep5d5t ,social ,security ,inve/m5t  
,ov]sight ,bo>d4  7b7 ,! ,bo>d %all be  
compos$ ( a ,*airman & f\r additional   
memb]s4 ,! ,*airman & ea* additional    
memb] %all be appo9t$ by ! ,presid5t1 by
 & ) ! advice & cons5t ( ! ,s5ate4  7c7 
,memb]s ( ! ,bo>d %all h sub/antial     
exp]i5ce1 tra9+1 & exp]tise 9 !         
managem5t ( f9ancial inve/m5ts & s]vice 
9 a fiduci>y capacity4  7d7  7#a7 ,a    

memb] ( ! ,bo>d %all be appo9t$ = a t]m 
( #aj ye>s1 except t ( ! memb]s fir/    
appo9t$--  7,a7 ! memb] appo9t$ z       
,*airman %all be appo9t$ = a t]m ( #aj  
ye>s2  7,b7 "o memb] %all be appo9t$ = a
 t]m ( #h ye>s2  7,c7 "o memb] %all be  
appo9t$ = a t]m ( #f ye>s2  7,d7 "o     
memb] %all be appo9t$ = a t]m ( #d ye>s2
 &  7,e7 "o memb] %all be appo9t$ = a   
t]m ( #b ye>s1 z designat$ by !         
,presid5t at ! "t ( appo9tm5t4  7#b7    
7,a7 ,a vacancy on ! ,bo>d %all be fill$
 9 ! mann] 9 :i* ! orig9al appo9tm5t 0  
made & %all be subject to any conditions
 :i* appli$ ) respect to ! orig9al      
appo9tm5t4  7,b7 ,an individual *os5 to 
fill a vacancy %all be appo9t$ = !      
unexpir$ t]m ( ! memb] replac$4  7,c7 ,!
 t]m ( any memb] %all n expire be=e !   
date on :i* ! memb]'s successor takes   
(fice4  7#c7 ,an individual appo9t$ z a 
memb] ( ! ,bo>d may be remov$ f (fice   
only pursuant to a f9d+ by ! ,presid5t (
 neglect ( duty or malfeasance 9 (fice4 
7e7 ,! memb] ( ! ,bo>d designat$ by !   

,presid5t z ,*airman %all s]ve z        
,*airman = a t]m ( #d ye>s 7or until !  
expiration ( 8 t]m z memb] ( ! ,bo>d1 if
 e>li]74 ,a memb] s]v+ z ,*airman may be
 reappo9t$ z ,*airman4  7f7 ,! ,bo>d    
%all--  7#a7 e/abli% policies = !       
inve/m5t & managem5t ( ! ,common ,/ock  
,old-,age ,inve/m5t ,fund & ! ,common   
,/ock ,disability ,inve/m5t ,fund       
describ$ 9 section #bja7;d77#b71 includ+
 policies to provide =--  7,a7 prud5t   
inve/m5ts suitable = accumulat+ funds = 
paym5t ( mon?ly insurance b5efits "u    
title ,,ii2 &  7,b7 l[ adm9i/rative     
co/s2  7#b7 review bids relat+ to1 &    
hire manag]s =1 ea* su* ,fund2  7#c7    
annually review ! p]=mance ( ea* su*    
,fund2  7#d7  7,a7 report annually to ! 
,h\se ( ,repres5tatives & ! ,s5ate & to 
! ,presid5t reg>d+ ! e>n+s on su*       
inve/m5ts2 &  7,b7 make ea* su* report  
publicly available by publication 9 !   
,f$]al ,regi/]1 po/+ on ! ,int]net1 &   
su* o!r means z ! ,bo>d may det]m9e2 &  
7#e7 review & approve ! budget ( !      

,bo>d4  7g7  7#a7 ,! ,bo>d may--  7,a7  
adopt1 alt]1 & use a seal2  7,b7 e/abli%
 policies ) :i* ! ,manag+ ,tru/ee ( !   
,tru/ ,funds is requir$ to comply "u    
section #bja7;d77#b72 &  7,c7 take su*  
o!r actions z may be necess>y to c>ry   
out ! functions ( ! ,bo>d4  7#b7 ,!     
policies ( ! ,bo>d may n require !      
,manag+ ,tru/ee ( ! ,tru/ ,funds to     
inve/ or to cause to be inve/$ any sums 
9 su* ,tru/ ,funds 9 a specific asset or
 to dispose ( or cause to be dispos$ (  
any specific asset ( su* ,tru/ ,funds4  
7h7  7#a7 ,! ,bo>d %all meet--  7,a7 n  
less ?an once dur+ ea* mon?2 &  7,b7 at 
additional times at ! call ( ! ,*airman4
  7#b7  7,a7 ,! ,bo>d %all p]=m !       
functions & ex]cise ! p[]s ( ! ,bo>d on 
a majority vote ( a quorum ( ! ,bo>d4   
7,b7 ,a vacancy on ! ,bo>d %all n impair
 ! au?ority ( a quorum ( ! ,bo>d to p]=m
 ! functions & ex]cise ! p[]s ( ! ,bo>d4
  7#c7 ,?ree memb]s ( ! ,bo>d %all      
con/itute a quorum = ! transaction (    
bus9ess4  7#d7  7,a7 ,ea* memb] ( !     

,bo>d :o is n an (fic] or employee ( !  
,f$]al ,gov]nm5t %all be comp5sat$ at ! 
daily rate ( basic pay payable = level  
,,iv ( ! ,executive ,s*$ule = ea* day   
dur+ :i* su* memb] is engag$ 9 p]=m+ a  
function ( ! ,bo>d4  7,b7 ,a memb] ( !  
,bo>d %all be paid travel1 p] diem1 &   
o!r necess>y exp5ses "u sub*apt] ,i (   
*apt] #eg ( title #e1 ,unit$ ,/ates     
,code1 :ile travel+ away f su* memb]'s  
home or regul> place ( bus9ess 9 !      
p]=mance ( ! duties ( ! ,bo>d4  7#e7 ,! 
accru$ annual leave ( any (fic] or      
employee ( ! ,f$]al ,gov]nm5t :o is a   
memb] ( ! ,bo>d %all n be *>g$ = any "t 
us$ 9 p]=m+ s]vices = ! ,bo>d4  7i7 ,!  
memb]s ( ! ,bo>d %all dis*>ge _!        
responsibilities solely 9 ! int]e/ ( !  
,tru/ ,funds 9 connection ) inve/m5ts ( 
am\nts 9 funds "u section #bja7;d77#b74 
7j7 ,! ,bo>d %all prep>e & submit to !  
,presid5t1 &1 at ! same "t1 to !        
appropriate committees ( ,congress1 an  
annual budget ( ! exp5ses & o!r items   
relat+ to ! ,bo>d :i* %all be includ$ z 

a sep>ate item 9 ! budget requir$ to be 
transmitt$ to ! ,congress "u section    
#aaje ( title #ca1 ,unit$ ,/ates ,code4 
7k7 ,! ,bo>d may submit to ! ,presid5t1 
&1 at ! same "t1 %all submit to ea*     
,h\se ( ,congress1 any legislative      
recomm5dations ( ! ,bo>d relat+ to any (
 its functions "u ?is section4  7l7 ,!re
 are h]eby made available f ea* ( !     
,tru/ ,funds su* sums z are necess>y to 
c>ry out ! provisions ( ?is section & to
 adm9i/] ! provisions ( section #bce1 9 
accordance ) c]tifications :i* %all be  
made f "t to "t by ! ,bo>d to !         
,secret>y ( ! ,treasury4  7m7 ,9 ?is    
section1 ! t]m ,tru/ ,funds has ! mean+ 
giv5 su* t]m 9 section #bja7;c74  4     
#bjg4 ,reallocation ( payroll tax rev5ue
 f ! ,old-,age & ,survivors ,insurance  
,tru/ ,fund to ! ,f$]al ,disability     
,insurance ,tru/ ,fund  7#a7 ,wages     
,section #bja7;b77#a7 ( ! ,social       
,security ,act 7#db ,u4,s4,c4           
#dja7;b77#a77 is am5d$ by /rik+ & 7,r7  
#a4hj p] c5tum ( ! wages 7z s def9$7    

paid aft] ,decemb] #ca1 #aiii1 & s      
report$ & ins]t+ 7,r7 #a4hj p] c5tum ( !
 wages 7z s def9$7 paid aft] ,decemb]   
#ca1 #aiii1 & be=e ,janu>y #a1 #bjae1 & 
s report$1 7,s7 #b4h p] c5tum ( ! wages 
7z s def9$7 paid aft] ,decemb] #ca1     
#bjad1 & be=e ,janu>y #a1 #bjaf1 & s    
report$1 7,t7 #b4d p] c5tum ( ! wages 7z
 s def9$7 paid aft] ,decemb] #ca1 #bjae1
 & be=e ,janu>y #a1 #bjag1 & s report$1 
7,u7 #b4b p] c5tum ( ! wages 7z s def9$7
 paid aft] ,decemb] #ca1 #bjaf1 & be=e  
,janu>y #a1 #bjbj1 & s report$1 7,v7    
#b4j p] c5tum ( ! wages 7z s def9$7 paid
 aft] ,decemb] #ca1 #bjai1 & be=e       
,janu>y #a1 #bjbf1 & s report$1 & 7,w7  
#a4h p] c5tum ( ! wages 7z s def9$7 paid
 aft] ,decemb] #ca1 #bjbe1 & s report$4 
7#b7 ,self-employm5t income ,section    
#bja7;b77#b7 ( su* ,act 7#db ,u4,s4,c4  
#dja7;b77#b77 is am5d$ by /rik+ & 7,r7  
#a4hj p] c5tum ( ! am\nt (              
self-employm5t income 7z s def9$7 s     
report$ = any taxable ye> beg9n+ aft]   
,decemb] #ca1 #aiii & ins]t+ 7,r7 #a4hj 

p] c5tum ( ! am\nt ( self-employm5t     
income 7z s def9$7 s report$ = any      
taxable ye> beg9n+ aft] ,decemb] #ca1   
#aiii1 & be=e ,janu>y #a1 #bjae1 7,s7   
#b4h p] c5tum ( ! am\nt ( self-employm5t
 income 7z s def9$7 s report$ = any     
taxable ye> beg9n+ aft] ,decemb] #ca1   
#bjad1 & be=e ,janu>y #a1 #bjaf1 7,t7   
#b4d p] c5tum ( ! am\nt ( self-employm5t
 income 7z s def9$7 s report$ = any     
taxable ye> beg9n+ aft] ,decemb] #ca1   
#bjae1 & be=e ,janu>y #a1 #bjag1 7,u7   
#b4b p] c5tum ( ! am\nt ( self-employm5t
 income 7z s def9$7 s report$ = any     
taxable ye> beg9n+ aft] ,decemb] #ca1   
#bjaf1 & be=e ,janu>y #a1 #bjbj1 7,v7   
#b4j p] c5tum ( ! am\nt ( self-employm5t
 income 7z s def9$7 s report$ = any     
taxable ye> beg9n+ aft] ,decemb] #ca1   
#bjai1 & be=e ,janu>y #a1 #bjbf1 & 7,w7 
#a4h p] c5tum ( ! am\nt ( self-employm5t
 income 7z s def9$7 s report$ = any     
taxable ye> beg9n+ aft] ,decemb] #ca1   
#bjbe4  7#c7 ,effective date ,! am5dm5ts
 made by ?is section %all apply )       

respect to wages paid aft] ,decemb] #ca1
 #bjad1 & self-employm5t income =       
taxable ye>s beg9n+ aft] su* date4