,,ii #aacth ,,congress #ast ,session ,s4 #efg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #ad1 #bjac ,mr4 ,harkin introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to improve the retirement security of ,american families by strengthening ,social ,security4 #a4 ,short title ,this ,act may be cited as the ,strengthening ,social ,security ,act of #bjac4 #b4 ,determination of taxable wages and self-employment income above contribution and benefit base after #bjac 7a7 ,determination of taxable 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 taxable wages ,for purposes of subsection 7a77#a71 the applicable percentage for a calendar year shall be equal to-- 7,a7 for #bjad1 #hj percent2 7,b7 for #bjae through #bjag1 the applicable percentage under this paragraph for the previous year1 decreased by #bj percentage points2 and 7,c7 for #bjah and each year thereafter1 #j percent4 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 subsection 7a77#a77;,j71 the applicable percentage for a calendar year shall be equal to-- 7#a7 for #bjad1 #hj percent2 7#b7 for #bjae through #bjag1 the applicable percentage under this subsection for the previous year1 decreased by #bj percentage points2 and 7#c7 for #bjah and each year thereafter1 #j percent4 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 taxable 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 striking that part of the net earnings and all that follows through minus and inserting the following3 an amount equal to the applicable percentage 7as determined under subsection 7d77#b77 of that part of the net earnings from self-employment which is in excess of the difference 7not to be less than zero7 between 7i7 an amount equal to the contribution and benefit base 7as determined under section #bcj of the ,social ,security ,act7 which is effective for the calendar year in which such taxable year begins1 and2 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 taxable self-employment income ,for purposes of subsection 7b77#a71 the applicable percentage for a taxable year beginning in any calendar year referred to in such paragraph shall be equal to-- 7,a7 for #bjad1 #hj percent2 7,b7 for #bjae through #bjag1 the applicable percentage under this paragraph for the previous year1 decreased by #bj percentage points2 and 7,c7 for #bjah and each year thereafter1 #j percent4 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 7b7-- 7i7 in paragraph 7#a77;,i7-- 7,i7 by striking or after the semicolon2 and 7,,ii7 by inserting and before #bjad after #aigd2 7ii7 by redesignating paragraph 7#b7 as paragraph 7#c72 and 7iii7 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 the difference 7not to be less than zero7 between-- 7,a7 an amount equal to the contribution and benefit base 7as determined under section #bcj7 that is effective for such calendar year1 and 7,b7 the amount of the wages paid to such individual during such taxable year2 or 2 and 7,b7 by adding at the end the following3 7l7 ,for purposes of subsection 7b77#b71 the applicable percentage for a taxable year beginning in any calendar year referred to in such paragraph shall be equal to-- 7#a7 for #bjad1 #hj percent2 7#b7 for #bjae through #bjag1 the applicable percentage under this subsection for the previous year1 decreased by #bj percentage points2 and 7#c7 for #bjah and each year thereafter1 #j percent4 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 #c4 ,adjustments to bend points in determining primary insurance amount and inclusion of surplus earnings for benefit determinations 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 7,c7 in clause 7iii71 by adding and at the end2 and 7,d7 by inserting after clause 7iii7 the following new clause3 7iv7 #e percent of the individual's surplus average indexed monthly earnings1 4 7#b7 ,bend point adjustment ,section #bae7;a77#a77;,b7 of such ,act 7#db ,u4,s4,c4 #dae7;a77#a77;,b77 is amended-- 7,a7 by redesignating clause 7iii7 as clause 7iv72 and 7,b7 by inserting after clause 7ii7 the following new clause3 7iii7 ,for individuals who initially become eligible for old-age or disability insurance benefits1 or who die 7before becoming eligible for such benefits7 in any calendar year after #bjah1 the amount determined under clause 7i7 of this subparagraph for purposes of subparagraph 7,a77i7 for such calendar year shall be increased by-- 7,i7 for calendar year #bjai1 #a percent2 7,,ii7 for each of calendar years #bjbj through #bjcb1 the percent determined under this clause for the preceding year increased by #a percentage point2 and 7,,iii7 for calendar year #bjcc and each year thereafter1 #ae percent4 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 #bjah4 #d4 ,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 have attained early retirement age 7as defined under section #baf7l77#b7 of the ,social ,security ,act 7#db ,u4,s4,c4 #daf7l77#b77 for purposes of an old-age1 wife's1 or husband's insurance benefit74 7b7 ,effective date ,subsection 7a7 shall apply with respect to calendar months ending on or after ,june #cj of 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 #e4 ,computation of cost-of-living increases for ,social ,security benefits 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 with respect to any monthly insurance benefit payable under this title1 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 #bbh71 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 #e7;a7 of the ,strengthening ,social ,security ,act of #bjac14 7b7 ,conforming amendments in applicable former law ,section #bae7;i77#a77;,c7 of the ,social ,security ,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 with respect to any monthly insurance benefit payable under this title1 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 #bbh71 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 this section shall apply to determinations made by the ,commissioner of ,social ,security under section #bae7;i77#b7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;i77#b77 with respect to cost-of-living computation quarters ending on or after ,september #cj1 #bjad4