,,ii  #aac? ,,congress  #a/ ,session    
,s4 #efg  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,m>* #ad1 #bjac ,mr4   
,h>k9 introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to improve !       
retirem5t security ( ,am]ican families  
by /r5g!n+ ,social ,security4  #a4 ,%ort
 title ,?is ,act may be cit$ z !        
,/r5g!n+ ,social ,security ,act ( #bjac4
  #b4 ,det]m9ation ( taxable wages &    
self-employm5t income above contribution
 & b5efit base aft] #bjac  7a7          
,det]m9ation ( taxable 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+ taxable
 wages ,= purposes ( subsection 7a77#a71
 ! applicable p]c5tage = a cal5d> ye>   
%all be equal to--  7,a7 = #bjad1 #hj   
p]c5t2  7,b7 = #bjae ?r\gh #bjag1 !     
applicable p]c5tage "u ?is p>agraph = ! 
previ\s ye>1 decreas$ by #bj p]c5tage   
po9ts2 &  7,c7 = #bjah & ea* ye>        
!reaft]1 #j p]c5t4  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 ( subsection 7a77#a77;,j71 !
 applicable p]c5tage = a cal5d> ye> %all
 be equal to--  7#a7 = #bjad1 #hj p]c5t2
  7#b7 = #bjae ?r\gh #bjag1 ! applicable
 p]c5tage "u ?is subsection = ! previ\s 
ye>1 decreas$ by #bj p]c5tage po9ts2 &  
7#c7 = #bjah & ea* ye> !reaft]1 #j      
p]c5t4  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 ( taxable 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  
/rik+ t "p ( ! net e>n+s & all t foll[s 

?r\gh m9us & ins]t+ ! foll[+3 an am\nt  
equal to ! applicable p]c5tage 7z       
det]m9$ "u subsection 7d77#b77 ( t "p ( 
! net e>n+s f self-employm5t :i* is 9   
excess ( ! diff]5ce 7n to be less ?an   
z]o7 betwe5 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 &2 &  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+ taxable        
self-employm5t income ,= purposes (     
subsection 7b77#a71 ! applicable        
p]c5tage = a taxable ye> beg9n+ 9 any   
cal5d> ye> ref]r$ to 9 su* p>agraph %all
 be equal to--  7,a7 = #bjad1 #hj p]c5t2
  7,b7 = #bjae ?r\gh #bjag1 ! applicable
 p]c5tage "u ?is p>agraph = ! previ\s   
ye>1 decreas$ by #bj p]c5tage po9ts2 &  

7,c7 = #bjah & ea* ye> !reaft]1 #j      
p]c5t4  4  7#b7 ,am5dm5ts to ! ,social  
,security ,act ,section #baa ( ! ,social
 ,security ,act 7#db ,u4,s4,c4 #daa7 is 
am5d$--  7,a7 9 subsection 7b7--  7i7 9 
p>agraph 7#a77;,i7--  7,i7 by /rik+ or  
aft] ! semicolon2 &  7,,ii7 by ins]t+ & 
be=e #bjad aft] #aigd2  7ii7 by         
r$esignat+ p>agraph 7#b7 z p>agraph     
7#c72 &  7iii7 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 (
 ! diff]5ce 7n to be less ?an z]o7      
betwe5--  7,a7 an am\nt equal to !      
contribution & b5efit base 7z det]m9$ "u
 section #bcj7 t is effective = su*     
cal5d> ye>1 &  7,b7 ! am\nt ( ! wages   
paid to su* individual dur+ su* taxable 
ye>2 or  2 &  7,b7 by add+ at ! end !   
foll[+3  7l7 ,= purposes ( subsection   
7b77#b71 ! applicable p]c5tage = a      
taxable ye> beg9n+ 9 any cal5d> ye>     

ref]r$ to 9 su* p>agraph %all be equal  
to--  7#a7 = #bjad1 #hj p]c5t2  7#b7 =  
#bjae ?r\gh #bjag1 ! applicable p]c5tage
 "u ?is subsection = ! previ\s ye>1     
decreas$ by #bj p]c5tage po9ts2 &  7#c7 
= #bjah & ea* ye> !reaft]1 #j p]c5t4  4 
7#c7 ,effective date ,! am5dm5ts made by
 ?is subsection %all apply ) respect to 
taxable ye>s beg9n+ dur+ or aft] cal5d> 
ye> #bjad4  #c4 ,adju/m5ts to b5d po9ts 
9 det]m9+ prim>y insurance am\nt &      
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  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 9 clause    
7iii71 by add+ & at ! end2 &  7,d7 by   
ins]t+ aft] clause 7iii7 ! foll[+ new   
clause3  7iv7 #e p]c5t ( ! individual's 

surplus av]age index$ mon?ly e>n+s1  4  
7#b7 ,b5d po9t adju/m5t ,section        
#bae7;a77#a77;,b7 ( su* ,act 7#db       
,u4,s4,c4 #dae7;a77#a77;,b77 is am5d$-- 
7,a7 by r$esignat+ clause 7iii7 z clause
 7iv72 &  7,b7 by ins]t+ aft] clause    
7ii7 ! foll[+ new clause3  7iii7 ,=     
individuals :o initially become eligible
 = old-age or disability insurance      
b5efits1 or :o die 7be=e becom+ eligible
 = su* b5efits7 9 any cal5d> ye> aft]   
#bjah1 ! am\nt det]m9$ "u clause 7i7 (  
?is subp>agraph = purposes ( subp>agraph
 7,a77i7 = su* cal5d> ye> %all be       
increas$ by--  7,i7 = cal5d> ye> #bjai1 
#a p]c5t2  7,,ii7 = ea* ( cal5d> ye>s   
#bjbj ?r\gh #bjcb1 ! p]c5t det]m9$ "u   
?is clause = ! prec$+ ye> increas$ by #a
 p]c5tage po9t2 &  7,,iii7 = cal5d> ye> 
#bjcc & ea* ye> !reaft]1 #ae p]c5t4  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] #bjah4  #d4 ,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 h atta9$ e>ly retirem5t age 7z def9$ 
"u section #baf7l77#b7 ( ! ,social      

,security ,act 7#db ,u4,s4,c4           
#daf7l77#b77 = purposes ( an old-age1   
wife's1 or husb&'s insurance b5efit74   
7b7 ,effective date ,subsection 7a7 %all
 apply ) respect to cal5d> mon?s end+ on
 or aft] ,june #cj ( ! 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    
#e4 ,computation ( co/-(-liv+ increases 
= ,social ,security b5efits  7a7 ,9     
g5]al ,section #bae7;i7 ( ! ,social     
,security ,act 7#db ,u4,s4,c4 #dae7;i77 
is am5d$--  7#a7 9 p>agraph 7#a77;,g71  
by ins]t+ be=e ! p]iod ! foll[+3 1 &1 ) 
respect to any mon?ly insurance b5efit  
payable "u ?is title1 effective =       
adju/m5ts "u ?is subsection to ! prim>y 
insurance am\nt on :i* su* b5efit is    
bas$ 7or to any su* b5efit "u section   
#bbg or #bbh71 ! 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 #e7;a7 ( !
 ,/r5g!n+ ,social ,security ,act (      
#bjac14  7b7 ,con=m+ am5dm5ts 9         
applicable =m] law ,section             
#bae7;i77#a77;,c7 ( ! ,social ,security 
,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 ) respect to any mon?ly    
insurance b5efit payable "u ?is title1  
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 #bbh71 ! 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 ?is section %all apply 

to det]m9ations made by ! ,commission] (
 ,social ,security "u section           
#bae7;i77#b7 ( ! ,social ,security ,act 
7#db ,u4,s4,c4 #dae7;i77#b77 ) respect  
to co/-(-liv+ computation qu>t]s end+ on
 or aft] ,septemb] #cj1 #bjad4