,,ii  #aac? ,,congress  #b;d ,session   
,s4 #bchb  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #bb1 #bjad ,mr4   
,m]kley introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to e/abli% !       
,consum] ,price ,index = ,eld]ly        
,consum]s = purposes ( det]m9+          
co/-(-liv+ increases "u ! ,social       
,security ,act1 & to am5d ! ,int]nal    
,rev5ue ,code ( #aihf to apply payroll  
taxes to remun]ation & e>n+s f          
self-employm5t up to ! contribution &   
b5efit base & to remun]ation 9 excess ( 
#bej1jjj1 & = o!r purposes4  #a4 ,%ort  
title ,?is ,act may be cit$ z ! ,fair   
,raises = ,s5iors ,act4  #b4 ,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 or ,,cpi-,e t indicates !     
av]age *ange ov] "t 9 ! prices paid by  
individuals 9 ! ,unit$ ,/ates :o are #fb

 ye>s ( age & old] = a m>ket basket (   
consum] goods & s]vices4  7b7           
,requirem5ts ,9 c>ry+ out subsection    
7a71 ! ,bureau ( ,labor ,/ati/ics %all--
 7#a7 increase ! numb] ( individuals 9 !
 ,unit$ ,/ates :o are #fb ye>s ( age &  
old] sampl$ 9 ! consum] exp5diture      
survey us$ to e/abli% ! ,,cpi-,e above !
 numb] ( su* individuals sampl$ =       
purposes ( det]m9+ ! ,consum] ,price    
,index = ,urban ,wage ,e>n]s & ,cl]ical 
,work]s 7,,cpi-,w72  7#b7 e/abli%       
samples ( m>ket-bas$ items1 /ores1 &    
prices to repres5t ! pur*as+ patt]ns (  
old] adults2 &  7#c7 exam9e ! m$ical c>e
 compon5t1 includ+ ! co/ & usage (      
prescription drugs1 ( ! ,,cpi-,e tak+   
into acc\nt t old] adults h diff]5t     
illnesses & heal? c>e exp5ses1 includ+  
d5tal exp5ses1 ?an individuals 9 !      
,unit$ ,/ates :o are "u #fb ye>s ( age4 
7c7 ,au?orization ( appropriations ,!re 
are au?oriz$ to be appropriat$ su* sums 
z are necess>y to c>ry out ! provisions 
( ?is section4  7d7 ,effective ,date ,! 

section %all apply ) respect to cal5d>  
mon?s end+ on or aft] ,july #ca ( !     
cal5d> ye> foll[+ ! cal5d> ye> 9 :i* ?is
 ,act is enact$4  #c4 ,computation (    
co/-(-liv+ increases  7a7 ,9 g5]al      
,section #bae7;i7 ( ! ,social ,security 
,act 7#db ,u4,s4,c4 #dae7;i77 is am5d$--
  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 #c ( !    

,fair ,raises = ,s5iors ,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$4  #d4 ,payroll tax on remun]ation
 up to contribution & b5efit base & m   
?an #bej1jjj  7a7  ,9 g5]al  ,p>agraph  
7#a7 ( section #caba7;a7 ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ 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$7 is less ?an #bej1jjj1 &1 =
 su* cal5d> ye>s1 only to s mu* ( !     
remun]ation paid to su* employee by su* 
employ] ) respect to employm5t z does n 
exce$ #bej1jjj44  7b7  ,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 ( #bej1jjj1 to4  7c7  ,effective 
date  ,! am5dm5ts made by ?is section   
%all apply to remun]ation paid aft]     
,decemb] #ca1 #bjad4  #e4  ,tax on net  
e>n+s f self-employm5t up to            
contribution & b5efit base & m ?an      

#bej1jjj  7a7  ,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 ! excess (--  7,a7 t
 "p ( ! net e>n+s f self-employm5t :i*  
is 9 excess (--  7i7 an 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  7ii7 ! 
am\nt ( ! wages paid to su* individual  
dur+ su* taxable ye>s2 ov]  7,b7 t "p ( 
! net e>n+s f self-employm5t :i* is 9   
excess ( ! sum (--  7i7 ! excess (--    
7,i7 ! net e>n+ f self-employm5t r$uc$  
by ! excess 7if any7 ( subp>agraph      
7,a77i7 ov] subp>agraph 7,a77ii71 ov]   
7,,ii7 #bej1jjj1 r$uc$ by su*           
contribution & b5efit base1 plus  7ii7 !
 am\nt ( ! wages paid to su* individual 
dur+ su* taxable ye> 9 excess ( su*     
contribution & b5efit base & n 9 excess 
( #bej1jjj2 or  4  7b7  ,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 #bej1jjj44  7c7       
,effective date ,! am5dm5ts made by ?is 
section %all apply to net e>n+s f       
self-employm5t d]iv$1 & remun]ation     
paid1 aft] ,decemb] #ca1 #bjad4  #f4    
,inclusion ( surplus e>n+s = b5efit     
det]m9ations  7a7 ,inclusion ( surplus  
av]age index$ mon?ly e>n+s 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$-- 7#a7 9 clauses 7i71 7ii71 &  
7iii71 by ins]t+ basic be=e av]age      
index$ mon?ly e>n+s ea* place x appe>s2 
7#b7 9 clause 7ii71 by /rik+ & at ! end2
  7#c7 9 clause 7iii71 by add+ & at !   
end2 &  7#d7 by ins]t+ aft] clause 7iii7
 ! foll[+ new clause3  7iv7 #a p]c5t or 
#ajjj 7:i*ev] is less7 ( ! individual's 

surplus av]age index$ mon?ly e>n+s      
7det]m9$ "u subsection 7b77#a77;,b771  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$--  7,a7 9 ! matt] prec$+      
subp>agraph 7,a71 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 = a b5efit   
computation ye> %all be deem$ to be     
equal to ! product (--  7i7 !           
individual's surplus e>n+s = su* ye> 7z 
det]m9$ "u clause 7ii7 ( p>agraph       
7#a77;,b7 )\t reg>d to ?is subp>agraph71
 &  7ii7 ! quoti5t describ$ 9           
subp>agraph 7,a77ii74  4  7c7 ,con=m+   
am5dm5ts  7#a7 ,p>agraphs 7#c77;,a77ii7 
& 7#f77;,a7 ( section #bjc7;a7 ( su*    
,act 7#db ,u4,s4,c4 #djc7;a77 are ea*   
am5d$ by ins]t+ basic be=e av]age index$
 mon?ly e>n+s4  7#b7 ,subsections 7b7 & 
7c7 ( section #bab ( su* ,act 7#db      
,u4,s4,c4 #dab7 are ea* am5d$ by /rik+  
av]age index$ mon?ly e>n+s & ins]t+     
basic av]age index$ mon?ly e>n+s1       
surplus av]age index$ mon?ly e>n+s4  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 ,act 7#db        
,u4,s4,c4 #dae7;a77#c77;,b77 = 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