,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #fdi  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,febru>y #ac1 #bjac   
,mr4 ,deut* 7= himself1 ,ms4 ,kaptur1   
,ms4 ,s*ak[sky1 ,ms4 ,p+ree ( ,ma9e1    
,mr4 ,cicill9e1 & ,mr4 ,langev97        
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means1 & 9    
addition to ! ,committee on ,education &
 ! ,work=ce1 = 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 am5d title ,,ii ( ! ,social
 ,security ,act & ! ,int]nal ,rev5ue    
,code ( #aihf to make improvem5ts 9 !   
old-age1 survivors1 & disability        
insurance program1 to provide = ca%     
relief = ye>s = :i* annual ,c,o,l,as d n
 take effect "u c]ta9 ca% b5efit        
programs1 & to provide = ,social        
,security b5efit protection4  #a4 ,%ort 
title & table ( cont5ts  7a7 ,%ort title
 ,?is ,act may cit$ z ! ,protect+ &     
,pres]v+ ,social ,security ,act4  7b7   

,table ( cont5ts ,! table ( cont5ts (   
?is ,act is z foll[s3  ,sec4 #a4 ,%ort  
title & table ( cont5ts4 ,,title        
,i--,co/-(-,liv+ ,increases ,sec4 #aja4 
,consum] price index = eld]ly consum]s4 
,sec4 #ajb4 ,computation ( co/-(-liv+   
increases4 ,,title ,,ii--,contribution &
 b5efit fairness ,sec4 #bja4            
,det]m9ation ( wages & self-employm5t   
income above contribution & b5efit base 
aft] #bjac4 ,sec4 #bjb4 ,inclusion (    
surplus e>n+s 9 social security b5efit  
=mula4  ,i ,co/-(-,liv+ ,increases      
#aja4 ,consum] price index = eld]ly     
consum]s  7a7 ,9 ,g5]al ,! ,bureau (    
,labor ,/ati/ics ( ! ,dep>tm5t ( ,labor 
%all prep>e & publi% an index = ea*     
cal5d> mon? to be kn[n z ! ,consum]     
,price ,index = ,eld]ly ,consum]s t     
indicates *anges ov] "t 9 exp5ditures = 
consumption :i* are typical =           
individuals 9 ! ,unit$ ,/ates :o are #fb
 ye>s ( age or old]4  7b7 ,effective    
,date ,subsection 7a7 %all apply )      
respect to cal5d> mon?s end+ on or aft] 

,july #ca ( ! cal5d> ye> foll[+ ! cal5d>
 ye> 9 :i* ?is ,act is enact$4  7c7     
,au?orization ( ,appropriations ,!re are
 au?oriz$ to be appropriat$ su* sums z  
are necess>y to c>ry out ! provisions ( 
?is section4  #ajb4 ,computation (      
co/-(-liv+ increases  7a7 ,9 g5]al      
,section #bae7;i7 ( ! ,social ,security 
,act 7#db ,u4,s4,c4 #dae7;i77 is am5d$--
  7#a7 9 p>agraph 7#a77;,g71 by ins]t+  
be=e ! p]iod ! foll[+3 1 &1 solely )    
respect to any mon?ly insurance b5efit  
payable "u ?is title to an individual :o
 has atta9$ age #fb1 effective =        
adju/m5ts "u ?is subsection to ! prim>y 
insurance am\nt on :i* su* b5efit is    
bas$ 7or to any su* b5efit "u section   
#bbg or #bbh7 occurr+ aft] su*          
individual atta9s su* age1 ! applicable 
,consum] ,price ,index %all be deem$ to 
be ! ,consum] ,price ,index = ,eld]ly   
,consum]s & su* prim>y insurance am\nt  
%all be deem$ adju/$ "u ?is subsection  
us+ su* ,index2 &  7#b7 9 p>agraph 7#d71
 by /rik+ & by section #ijja & ins]t+ 1 

by section #ijja1 & by ins]t+ aft]      
#aihf1 ! foll[+3 & by section #ajb ( !  
,protect+ & ,pres]v+ ,social ,security  
,act14  7b7 ,con=m+ am5dm5ts 9          
applicable =m] law ,section             
#bae7;i77#a77;,c7 ( su* ,act1 z 9 effect
 9 ,decemb] #aigh & appli$ 9 c]ta9 cases
 "u ! provisions ( su* ,act 9 effect    
aft] ,decemb] #aigh1 is am5d$ by ins]t+ 
be=e ! p]iod ! foll[+3 1 &1 solely )    
respect to any mon?ly insurance b5efit  
payable "u ?is title to an individual :o
 has atta9$ age #fb1 effective =        
adju/m5ts "u ?is subsection to ! prim>y 
insurance am\nt on :i* su* b5efit is    
bas$ 7or to any su* b5efit "u section   
#bbg or #bbh7 occurr+ aft] su*          
individual atta9s su* age1 ! applicable 
,consum] ,price ,index %all be deem$ to 
be ! ,consum] ,price ,index = ,eld]ly   
,consum]s & su* prim>y insurance am\nt  
%all be deem$ adju/$ "u ?is subsection  
us+ su* ,index4  7c7 ,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$4  ,,ii ,contribution & b5efit    
fairness  #bja4 ,det]m9ation ( wages &  
self-employm5t income above contribution
 & b5efit base aft] #bjac  7a7          
,det]m9ation ( wages above contribution 
& b5efit base aft] #bjac  7#a7 ,am5dm5ts
 to ! ,int]nal ,rev5ue ,code ( #aihf    
,section #caba ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$--  7,a7 9        
subsection 7a77#a71 by ins]t+ !         
applicable p]c5tage 7det]m9$ "u         
subsection 7c77#a77 ( be=e t "p ( !     
remun]ation2 &  7,b7 9 subsection 7c71  
by /rik+ 7c7 ,includ$ & exclud$         
s]vice4--,= purposes ( ?is *apt]1 if &  
ins]t+ ! foll[+3  7c7 ,special rules =  
wages & employm5t  7#a7 ,applicable     
p]c5tage ( remun]ation 9 det]m9+ wages  
,= purposes ( p>agraph 7#a7 ( subsection

 7a71 ! applicable p]c5tage = a cal5d>  
ye>1 9 connection ) any cal5d> ye>      
ref]r$ to 9 su* subp>agraph1 %all be !  
p]c5tage det]m9$ 9 accordance ) ! foll[+
 table3  ,! applicable  ,9 ! case       
(3p]c5tage is3  ,cal5d> ye> #bjadhf     
,cal5d> ye> #bjaega  ,cal5d> ye> #bjafeg
  ,cal5d> ye> #bjagdc  ,cal5d> ye>      
#bjahbi  ,cal5d> ye> #bjaiad  ,cal5d>   
ye>s aft] #bjaij4  7#b7 ,includ$ &      
exclud$ s]vice ,= purposes ( ?is *apt]1 
if  4  7#b7 ,am5dm5ts to ! ,social      
,security ,act ,section #bji ( ! ,social
 ,security ,act 7#db ,u4,s4,c4 #dji7 is 
am5d$--  7,a7 9 subsection              
7a77#a77;,i7--  7i7 by ins]t+ & be=e    
#bjad aft] #aigd2 &  7ii7 by ins]t+ &   
aft] ! semicolon2  7,b7 9 subsection    
7a77#a71 by add+ at ! end ! foll[+ new  
subp>agraph3  7,j7 ,! applicable        
p]c5tage 7det]m9$ "u subsection 7l77 ( t
 "p ( remun]ation :i*1 aft] remun]ation 
7o!r ?an remun]ation ref]r$ to 9 !      
succe$+ subsections ( ?is section7 equal
 to ! contribution & b5efit base        

7det]m9$ "u section #bcj7 ) respect to  
employm5t has be5 paid to an individual 
dur+ any cal5d> ye> aft] #bjac ) respect
 to :i* su* contribution & b5efit base  
is effective1 is paid to su* individual 
dur+ su* cal5d> ye>2  2 &  7,c7 by add+ 
at ! end ! foll[+ new subsection3  7l7  
,= purposes ( subp>agraph 7,j7 (        
subsection 7a77#a71 ! applicable        
p]c5tage = a cal5d> ye>1 9 connection ) 
any cal5d> ye> ref]r$ to 9 su*          
subp>agraph1 %all be ! p]c5tage det]m9$ 
9 accordance ) ! foll[+ table3  ,!      
applicable  ,9 ! case (3p]c5tage is3    
,cal5d> ye> #bjadhf  ,cal5d> ye> #bjaega
  ,cal5d> ye> #bjafeg  ,cal5d> ye>      
#bjagdc  ,cal5d> ye> #bjahbi  ,cal5d>   
ye> #bjaiad  ,cal5d> ye>s aft] #bjaij4  
4  7#c7 ,effective date ,! am5dm5ts made
 by ?is subsection %all apply ) respect 
to remun]ation paid 9 cal5d> ye>s aft]  
#bjac4  7b7 ,det]m9ation (              
self-,employm5t income above            
contribution & b5efit base aft] #bjac   
7#a7 ,am5dm5ts to ! ,int]nal ,rev5ue    

,code ( #aihf ,section #adjb ( !        
,int]nal ,rev5ue ,code ( #aihf is       
am5d$--  7,a7 9 subsection 7b77#a71 by  
ins]t+ an am\nt equal to ! applicable   
p]c5tage 7z det]m9$ "u subsection       
7d77#b77 ( be=e t "p ( ! net e>n+s f    
self-employm5t2 &  7,b7 9 subsection    
7d7--  7i7 by /rik+ 7d7 ,employee &     
wages4--,! t]m & ins]t+ ! foll[+3  7d7  
,rules & def9itions  7#a7 ,employee &   
wages ,! t]m  2 &  7ii7 by add+ at ! end
 ! foll[+3  7#b7 ,applicable p]c5tage ( 
net e>n+s f self-employm5t 9 det]m9+    
self-employm5t income ,= purposes (     
p>agraph 7#a7 ( subsection 7b71 !       
applicable p]c5tage = a taxable ye>     
beg9n+ 9 any cal5d> ye> ref]r$ to 9 su* 
p>agraph %all be ! p]c5tage det]m9$ 9   
accordance ) ! foll[+ table3  ,!        
applicable  ,9 ! case (3p]c5tage is3    
,cal5d> ye> #bjadhf  ,cal5d> ye> #bjaega
  ,cal5d> ye> #bjafeg  ,cal5d> ye>      
#bjagdc  ,cal5d> ye> #bjahbi  ,cal5d>   
ye> #bjaiad  ,cal5d> ye>s aft] #bjaij4  
4  7#b7 ,am5dm5ts to ! ,social ,security

 ,act ,section #baa ( ! ,social         
,security ,act 7#db ,u4,s4,c4 #daa7 is  
am5d$--  7,a7 9 subsection              
7b77#a77;,i7--  7i7 by /rik+ or aft] !  
semicolon2 &  7ii7 by ins]t+ & be=e     
#bjad aft] #aigd2  7,b7 9 subsection    
7b7--  7i7 by r$esignat+ p>agraph 7#b7 z
 p>agraph 7#c72 &  7ii7 by ins]t+ aft]  
p>agraph 7#a7 ! foll[+3  7#b7 ,= any    
taxable ye> beg9n+ 9 any cal5d> ye> aft]
 #bjac1 an am\nt equal to ! applicable  
p]c5tage 7z det]m9$ "u subsection 7l77 (
 t "p ( net e>n+s f self-employm5t :i*  
is 9 excess ( 7,a7 an am\nt equal to !  
contribution & b5efit base 7det]m9$ "u  
section #bcj7 t is effective = su*      
cal5d> ye>1 m9us 7,b7 ! am\nt ( ! wages 
paid to su* individual dur+ su* taxable 
ye>2 or  2 &  7,c7 by add+ at ! end !   
foll[+3  7l7 ,= purposes ( p>agraph 7#b7
 ( subsection 7b71 ! applicable p]c5tage
 = a taxable ye> beg9n+ 9 any cal5d> ye>
 ref]r$ to 9 su* p>agraph1 %all be !    
p]c5tage det]m9$ 9 accordance ) ! foll[+
 table3  ,! applicable  ,9 ! case       

(3p]c5tage is3  ,cal5d> ye> #bjadhf     
,cal5d> ye> #bjaega  ,cal5d> ye> #bjafeg
  ,cal5d> ye> #bjagdc  ,cal5d> ye>      
#bjahbi  ,cal5d> ye> #bjaiad  ,cal5d>   
ye>s aft] #bjaij4  4  7#c7 ,effective   
date ,! am5dm5ts made by ?is subsection 
%all apply ) respect to taxable ye>s    
beg9n+ dur+ or aft] cal5d> ye> #bjad4   
#bjb4 ,inclusion ( surplus e>n+s 9      
social security b5efit =mula  7a7       
,inclusion ( surplus av]age index$      
mon?ly e>n+s 9 det]m9ation ( prim>y     
insurance am\nts  7#a7 ,9 g5]al ,section
 #bae7;a77#a77;,a7 ( ! ,social ,security
 ,act 7#db ,u4,s4,c4 #dae7;a77#a77;,a77 
is am5d$--  7,a7 9 clauses 7i71 7ii71 & 
7iii71 by ins]t+ basic be=e av]age      
index$ mon?ly e>n+s ea* place x appe>s2 
7,b7 9 clause 7ii71 by /rik+ & at ! end2
 &  7,c7 by ins]t+ aft] clause 7iii7 !  
foll[+ new clauses3  7iv7 #c p]c5t ( !  
individual's surplus av]age index$      
mon?ly e>n+s to ! ext5t su* surplus     
av]age index$ mon?ly e>n+s d n exce$ !  
excess ( ! am\nt e/abli%$ = purposes (  

?is clause by subp>agraph 7,b7 ov]      
#a_/ab ( ! contribution & b5efit base = 
! la/ ( su* individual's computation    
base ye>s1 &  7v7 #j4be p]c5t ( ! sum ( 
! individual's surplus av]age index$    
mon?ly e>n+s plus #a_/ab ( !            
contribution & b5efit base = ! la/ ( su*
 individual's computation base ye>s1 to 
! ext5t su* sum exce$s ! am\nt e/abli%$ 
= purposes ( clause 7iv7 by subp>agraph 
7,b74  4  7#b7 ,b5d po9t = surplus e>n+s
 ,section #bae7;a77#a77;,b7 ( su* ,act  
7#db ,u4,s4,c4 #dae7;a77#a77;,b77 is    
am5d$--  7,a7 9 clause 7ii71 by /rik+ ! 
am\nts s e/abli%$ & ins]t+ ! am\nts     
e/abli%$ = purposes ( clauses 7i7 & 7ii7
 ( subp>agraph 7,a72  7,b7 by r$esignat+
 clause 7iii7 z clause 7v72  7,c7 9     
clause 7v7 7z r$esignat$71 by ins]t+ or 
7iv7 aft] clause 7ii72 &  7,d7 by ins]t+
 aft] clause 7ii7 ! foll[+ new clauses3 
7iii7 ,= individuals :o initially become
 eligible = old-age or disability       
insurance b5efits1 or :o die 7be=e      
becom+ eligible = su* b5efits71 9 !     

cal5d> ye> #bjad1 ! am\nt e/abli%$ =    
purposes ( clause 7iv7 ( subp>agraph    
7,a7 %all be #aa1ceh4  7iv7 ,=          
individuals :o initially become eligible
 = old-age or disability insurance      
b5efits1 or :o die 7be=e becom+ eligible
 = su* b5efits71 9 any cal5d> ye> aft]  
#bjad1 ! am\nt e/abli%$ = purposes (    
clause 7iv7 ( subp>agraph 7,a7 %all     
equal ! product ( ! am\nt e/abli%$ )    
respect to ! cal5d> ye> #bjad "u clause 
7iii7 ( ?is subp>agraph & ! quoti5t     
obta9$ by divid+--  7,i7 ! national     
av]age wage index 7z def9$ 9 section    
#bji7k77#a77 = ! second cal5d> ye>      
prec$+ ! cal5d> ye> = :i* ! det]m9ation 
is made1 by  7,,ii7 ! national av]age   
wage index 7z s def9$7 = #bjab4  4  7b7 
,basic ,,aime & surplus ,,aime  7#a7    
,basic ,,aime ,section #bae7;b77#a7 (   
su* ,act 7#db ,u4,s4,c4 #dae7;b77#a77 is
 am5d$--  7,a7 by ins]t+ basic be=e     
av]age2 &  7,b7 9 subp>agraph 7,a71 by  
/rik+ p>agraph 7#c7 & ins]t+ p>agraph   
7#c77;,a7 & by ins]t+ be=e ! comma !    

foll[+3 to ! ext5t su* total does n     
exce$ ! contribution & b5efit base = !  
applicable ye>4  7#b7 ,surplus ,,aime   
7,a7 ,9 g5]al ,section #bae7;b77#a7 (   
su* ,act 7z am5d$ by p>agraph 7#a77 is  
am5d$--  7i7 by r$esignat+ subp>agraphs 
7,a7 & 7,b7 z clauses 7i7 & 7ii71       
respectively2  7ii7 by ins]t+ 7,a7 aft] 
7b77#a72 &  7iii7 by add+ at ! end !    
foll[+ new subp>agraph3  7,b7 7i7 ,an   
individual's surplus av]age index$      
mon?ly e>n+s %all be equal to ! quoti5t 
obta9$ by divid+--  7,i7 ! total 7aft]  
adju/m5t "u p>agraph 7#c77;,b77 ( su*   
individual's surplus e>n+s 7det]m9$ "u  
clause 7ii77 = su* individual's b5efit  
computation ye>s 7det]m9$ "u p>agraph   
7#b771 by  7,,ii7 ! numb] ( mon?s 9 ^?  
ye>s4  7ii7 ,= purposes ( clause 7i7 &  
p>agraph 7#c77;,b71 an individual's     
surplus e>n+s = a b5efit computation ye>
 are ! total ( su* individual's wages   
paid 9 & self-employm5t income cr$it$ to
 su* b5efit computation ye>1 to ! ext5t 
su* total 7be=e adju/m5t "u p>agraph    

7#c77;,b77 exce$s ! contribution &      
b5efit base = su* ye>4  4  7,b7 ,con=m+ 
am5dm5t ,! head+ = section #bae7;b7 (   
su* ,act is am5d$ by /rik+ ,av]age      
,index$ ,mon?ly ,e>n+s & ins]t+ ,basic  
,av]age ,index$ ,mon?ly ,e>n+s2 ,surplus
 ,av]age ,index$ ,mon?ly ,e>n+s4  7#c7  
,adju/m5t ( surplus e>n+s = purposes (  
det]m9+ surplus ,,aime ,section         
#bae7;b77#c7 ( su* ,act 7#db ,u4,s4,c4  
#dae7;b77#c77 is am5d$--  7,a7 9        
subp>agraph 7,a71 by /rik+ subp>agraph  
7,b7 & ins]t+ subp>agraph 7,c7 & by     
ins]t+ & det]m9ation ( basic av]age     
index$ mon?ly income aft] p>agraph 7#b72
  7,b7 by r$esignat+ subp>agraph 7,b7 z 
subp>agraph 7,c72 &  7,c7 by ins]t+ aft]
 subp>agraph 7,a7 ! foll[+ new          
subp>agraph3  7,b7 ,= purposes ( det]m9+
 "u p>agraph 7#a77;,b7 an individual's  
surplus av]age index$ mon?ly e>n+s1 !   
individual's surplus e>n+s 7describ$ 9  
p>agraph 7#b77;,b77ii77 = a b5efit      
computation ye> %all be deem$ to be     
equal to ! product (--  7i7 !           

individual's surplus e>n+s = su* ye> 7z 
det]m9$ )\t reg>d to ?is subp>agraph71 &
  7ii7 ! quoti5t describ$ 9 subp>agraph 
7,a77ii74  4  7c7 ,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] #bjac4