,i #aacth ,,congress #ast ,session ,h4 ,r4 #fdi ,,in ,,the ,,house ,,of ,,representatives ,february #ac1 #bjac ,mr4 ,deutch 7for himself1 ,ms4 ,kaptur1 ,ms4 ,schakowsky1 ,ms4 ,pingree of ,maine1 ,mr4 ,cicilline1 and ,mr4 ,langevin7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,education and the ,workforce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend title ,,ii of the ,social ,security ,act and the ,internal ,revenue ,code of #aihf to make improvements in the old-age1 survivors1 and disability insurance program1 to provide for cash relief for years for which annual ,c,o,l,as do not take effect under certain cash benefit programs1 and to provide for ,social ,security benefit protection4 #a4 ,short title and table of contents 7a7 ,short title ,this ,act may cited as the ,protecting and ,preserving ,social ,security ,act4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title and table of contents4 ,,title ,i--,cost-of-,living ,increases ,sec4 #aja4 ,consumer price index for elderly consumers4 ,sec4 #ajb4 ,computation of cost-of-living increases4 ,,title ,,ii--,contribution and benefit fairness ,sec4 #bja4 ,determination of wages and self-employment income above contribution and benefit base after #bjac4 ,sec4 #bjb4 ,inclusion of surplus earnings in social security benefit formula4 ,i ,cost-of-,living ,increases #aja4 ,consumer price index for elderly consumers 7a7 ,in ,general ,the ,bureau of ,labor ,statistics of the ,department of ,labor shall prepare and publish an index for each calendar month to be known as the ,consumer ,price ,index for ,elderly ,consumers that indicates changes over time in expenditures for consumption which are typical for individuals in the ,united ,states who are #fb years of age or older4 7b7 ,effective ,date ,subsection 7a7 shall apply with respect to calendar months ending on or after ,july #ca of the calendar year following the calendar year in which this ,act is enacted4 7c7 ,authorization of ,appropriations ,there are authorized to be appropriated such sums as are necessary to carry out the provisions of this section4 #ajb4 ,computation of cost-of-living increases 7a7 ,in general ,section #bae7;i7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;i77 is amended-- 7#a7 in paragraph 7#a77;,g71 by inserting before the period the following3 1 and1 solely with respect to any monthly insurance benefit payable under this title to an individual who has attained age #fb1 effective for adjustments under this subsection to the primary insurance amount on which such benefit is based 7or to any such benefit under section #bbg or #bbh7 occurring after such individual attains such age1 the applicable ,consumer ,price ,index shall be deemed to be the ,consumer ,price ,index for ,elderly ,consumers and such primary insurance amount shall be deemed adjusted under this subsection using such ,index2 and 7#b7 in paragraph 7#d71 by striking and by section #ijja and inserting 1 by section #ijja1 and by inserting after #aihf1 the following3 and by section #ajb of the ,protecting and ,preserving ,social ,security ,act14 7b7 ,conforming amendments in applicable former law ,section #bae7;i77#a77;,c7 of such ,act1 as in effect in ,december #aigh and applied in certain cases under the provisions of such ,act in effect after ,december #aigh1 is amended by inserting before the period the following3 1 and1 solely with respect to any monthly insurance benefit payable under this title to an individual who has attained age #fb1 effective for adjustments under this subsection to the primary insurance amount on which such benefit is based 7or to any such benefit under section #bbg or #bbh7 occurring after such individual attains such age1 the applicable ,consumer ,price ,index shall be deemed to be the ,consumer ,price ,index for ,elderly ,consumers and such primary insurance amount shall be deemed adjusted under this subsection using such ,index4 7c7 ,effective date ,the amendments made by subsection 7a7 shall apply to determinations made with respect to cost-of-living computation quarters 7as defined in section #bae7;i77#a77;,b7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;i77#a77;,b777 ending on or after ,september #cj of the second calendar year following the calendar year in which this ,act is enacted4 ,,ii ,contribution and benefit fairness #bja4 ,determination of wages and self-employment income above contribution and benefit base after #bjac 7a7 ,determination of wages above contribution and benefit base after #bjac 7#a7 ,amendments to the ,internal ,revenue ,code of #aihf ,section #caba of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in subsection 7a77#a71 by inserting the applicable percentage 7determined under subsection 7c77#a77 of before that part of the remuneration2 and 7,b7 in subsection 7c71 by striking 7c7 ,included and excluded service4--,for purposes of this chapter1 if and inserting the following3 7c7 ,special rules for wages and employment 7#a7 ,applicable percentage of remuneration in determining wages ,for purposes of paragraph 7#a7 of subsection 7a71 the applicable percentage for a calendar year1 in connection with any calendar year referred to in such subparagraph1 shall be the percentage determined in accordance with the following table3 ,the applicable ,in the case of3percentage is3 ,calendar year #bjadhf ,calendar year #bjaega ,calendar year #bjafeg ,calendar year #bjagdc ,calendar year #bjahbi ,calendar year #bjaiad ,calendar years after #bjaij4 7#b7 ,included and excluded service ,for purposes of this chapter1 if 4 7#b7 ,amendments to the ,social ,security ,act ,section #bji of the ,social ,security ,act 7#db ,u4,s4,c4 #dji7 is amended-- 7,a7 in subsection 7a77#a77;,i7-- 7i7 by inserting and before #bjad after #aigd2 and 7ii7 by inserting and after the semicolon2 7,b7 in subsection 7a77#a71 by adding at the end the following new subparagraph3 7,j7 ,the applicable percentage 7determined under subsection 7l77 of that part of remuneration which1 after remuneration 7other than remuneration referred to in the succeeding subsections of this section7 equal to the contribution and benefit base 7determined under section #bcj7 with respect to employment has been paid to an individual during any calendar year after #bjac with respect to which such contribution and benefit base is effective1 is paid to such individual during such calendar year2 2 and 7,c7 by adding at the end the following new subsection3 7l7 ,for purposes of subparagraph 7,j7 of subsection 7a77#a71 the applicable percentage for a calendar year1 in connection with any calendar year referred to in such subparagraph1 shall be the percentage determined in accordance with the following table3 ,the applicable ,in the case of3percentage is3 ,calendar year #bjadhf ,calendar year #bjaega ,calendar year #bjafeg ,calendar year #bjagdc ,calendar year #bjahbi ,calendar year #bjaiad ,calendar years after #bjaij4 4 7#c7 ,effective date ,the amendments made by this subsection shall apply with respect to remuneration paid in calendar years after #bjac4 7b7 ,determination of self-,employment income above contribution and benefit base after #bjac 7#a7 ,amendments to the ,internal ,revenue ,code of #aihf ,section #adjb of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in subsection 7b77#a71 by inserting an amount equal to the applicable percentage 7as determined under subsection 7d77#b77 of before that part of the net earnings from self-employment2 and 7,b7 in subsection 7d7-- 7i7 by striking 7d7 ,employee and wages4--,the term and inserting the following3 7d7 ,rules and definitions 7#a7 ,employee and wages ,the term 2 and 7ii7 by adding at the end the following3 7#b7 ,applicable percentage of net earnings from self-employment in determining self-employment income ,for purposes of paragraph 7#a7 of subsection 7b71 the applicable percentage for a taxable year beginning in any calendar year referred to in such paragraph shall be the percentage determined in accordance with the following table3 ,the applicable ,in the case of3percentage is3 ,calendar year #bjadhf ,calendar year #bjaega ,calendar year #bjafeg ,calendar year #bjagdc ,calendar year #bjahbi ,calendar year #bjaiad ,calendar years after #bjaij4 4 7#b7 ,amendments to the ,social ,security ,act ,section #baa of the ,social ,security ,act 7#db ,u4,s4,c4 #daa7 is amended-- 7,a7 in subsection 7b77#a77;,i7-- 7i7 by striking or after the semicolon2 and 7ii7 by inserting and before #bjad after #aigd2 7,b7 in subsection 7b7-- 7i7 by redesignating paragraph 7#b7 as paragraph 7#c72 and 7ii7 by inserting after paragraph 7#a7 the following3 7#b7 ,for any taxable year beginning in any calendar year after #bjac1 an amount equal to the applicable percentage 7as determined under subsection 7l77 of that part of net earnings from self-employment which is in excess of 7,a7 an amount equal to the contribution and benefit base 7determined under section #bcj7 that is effective for such calendar year1 minus 7,b7 the amount of the wages paid to such individual during such taxable year2 or 2 and 7,c7 by adding at the end the following3 7l7 ,for purposes of paragraph 7#b7 of subsection 7b71 the applicable percentage for a taxable year beginning in any calendar year referred to in such paragraph1 shall be the percentage determined in accordance with the following table3 ,the applicable ,in the case of3percentage is3 ,calendar year #bjadhf ,calendar year #bjaega ,calendar year #bjafeg ,calendar year #bjagdc ,calendar year #bjahbi ,calendar year #bjaiad ,calendar years after #bjaij4 4 7#c7 ,effective date ,the amendments made by this subsection shall apply with respect to taxable years beginning during or after calendar year #bjad4 #bjb4 ,inclusion of surplus earnings in social security benefit formula 7a7 ,inclusion of surplus average indexed monthly earnings in determination of primary insurance amounts 7#a7 ,in general ,section #bae7;a77#a77;,a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;a77#a77;,a77 is amended-- 7,a7 in clauses 7i71 7ii71 and 7iii71 by inserting basic before average indexed monthly earnings each place it appears2 7,b7 in clause 7ii71 by striking and at the end2 and 7,c7 by inserting after clause 7iii7 the following new clauses3 7iv7 #c percent of the individual's surplus average indexed monthly earnings to the extent such surplus average indexed monthly earnings do not exceed the excess of the amount established for purposes of this clause by subparagraph 7,b7 over #a_/ab of the contribution and benefit base for the last of such individual's computation base years1 and 7v7 #j4be percent of the sum of the individual's surplus average indexed monthly earnings plus #a_/ab of the contribution and benefit base for the last of such individual's computation base years1 to the extent such sum exceeds the amount established for purposes of clause 7iv7 by subparagraph 7,b74 4 7#b7 ,bend point for surplus earnings ,section #bae7;a77#a77;,b7 of such ,act 7#db ,u4,s4,c4 #dae7;a77#a77;,b77 is amended-- 7,a7 in clause 7ii71 by striking the amounts so established and inserting the amounts established for purposes of clauses 7i7 and 7ii7 of subparagraph 7,a72 7,b7 by redesignating clause 7iii7 as clause 7v72 7,c7 in clause 7v7 7as redesignated71 by inserting or 7iv7 after clause 7ii72 and 7,d7 by inserting after clause 7ii7 the following new clauses3 7iii7 ,for individuals who initially become eligible for old-age or disability insurance benefits1 or who die 7before becoming eligible for such benefits71 in the calendar year #bjad1 the amount established for purposes of clause 7iv7 of subparagraph 7,a7 shall be #aa1ceh4 7iv7 ,for individuals who initially become eligible for old-age or disability insurance benefits1 or who die 7before becoming eligible for such benefits71 in any calendar year after #bjad1 the amount established for purposes of clause 7iv7 of subparagraph 7,a7 shall equal the product of the amount established with respect to the calendar year #bjad under clause 7iii7 of this subparagraph and the quotient obtained by dividing-- 7,i7 the national average wage index 7as defined in section #bji7k77#a77 for the second calendar year preceding the calendar year for which the determination is made1 by 7,,ii7 the national average wage index 7as so defined7 for #bjab4 4 7b7 ,basic ,,aime and surplus ,,aime 7#a7 ,basic ,,aime ,section #bae7;b77#a7 of such ,act 7#db ,u4,s4,c4 #dae7;b77#a77 is amended-- 7,a7 by inserting basic before average2 and 7,b7 in subparagraph 7,a71 by striking paragraph 7#c7 and inserting paragraph 7#c77;,a7 and by inserting before the comma the following3 to the extent such total does not exceed the contribution and benefit base for the applicable year4 7#b7 ,surplus ,,aime 7,a7 ,in general ,section #bae7;b77#a7 of such ,act 7as amended by paragraph 7#a77 is amended-- 7i7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively2 7ii7 by inserting 7,a7 after 7b77#a72 and 7iii7 by adding at the end the following new subparagraph3 7,b7 7i7 ,an individual's surplus average indexed monthly earnings shall be equal to the quotient obtained by dividing-- 7,i7 the total 7after adjustment under paragraph 7#c77;,b77 of such individual's surplus earnings 7determined under clause 7ii77 for such individual's benefit computation years 7determined under paragraph 7#b771 by 7,,ii7 the number of months in those years4 7ii7 ,for purposes of clause 7i7 and paragraph 7#c77;,b71 an individual's surplus earnings for a benefit computation year are the total of such individual's wages paid in and self-employment income credited to such benefit computation year1 to the extent such total 7before adjustment under paragraph 7#c77;,b77 exceeds the contribution and benefit base for such year4 4 7,b7 ,conforming amendment ,the heading for section #bae7;b7 of such ,act is amended by striking ,average ,indexed ,monthly ,earnings and inserting ,basic ,average ,indexed ,monthly ,earnings2 ,surplus ,average ,indexed ,monthly ,earnings4 7#c7 ,adjustment of surplus earnings for purposes of determining surplus ,,aime ,section #bae7;b77#c7 of such ,act 7#db ,u4,s4,c4 #dae7;b77#c77 is amended-- 7,a7 in subparagraph 7,a71 by striking subparagraph 7,b7 and inserting subparagraph 7,c7 and by inserting and determination of basic average indexed monthly income after paragraph 7#b72 7,b7 by redesignating subparagraph 7,b7 as subparagraph 7,c72 and 7,c7 by inserting after subparagraph 7,a7 the following new subparagraph3 7,b7 ,for purposes of determining under paragraph 7#a77;,b7 an individual's surplus average indexed monthly earnings1 the individual's surplus earnings 7described in paragraph 7#b77;,b77ii77 for a benefit computation year shall be deemed to be equal to the product of-- 7i7 the individual's surplus earnings for such year 7as determined without regard to this subparagraph71 and 7ii7 the quotient described in subparagraph 7,a77ii74 4 7c7 ,effective date ,the amendments made by this section shall apply with respect to individuals who initially become eligible 7within the meaning of section #bae7;a77#c77;,b7 of the ,social ,security ,act7 for old-age or disability insurance benefits under title ,,ii of the ,social ,security ,act1 or who die 7before becoming eligible for such benefits71 in any calendar year after #bjac4