,,ii #aafth ,,congress #b;d ,session ,s4 #cdja ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #e1 #bjbj,mr4 ,cruz 7for himself and ,mr4 ,cassidy7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend title ,,ii of the ,social ,security ,act to replace the windfall elimination provision with a formula equalizing benefits for certain individuals with noncovered employment1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,equal ,treatment of ,public ,servants ,act of #bjbj4 #b4 ,replacement of the windfall elimination provision with a formula equalizing benefits for certain individuals with noncovered employment 7a7 ,in general ,section #bae7;a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;a77 is amended by inserting after paragraph 7#g7 the following3 7#h7 7,a7 ,in the case of an individual whose primary insurance amount would be computed under paragraph 7#a7 of this subsection-- 7i7 who first becomes eligible for an old-age or disability insurance benefit after #bjfj1 7ii7 who subsequently becomes entitled to such benefit1 and 7iii7 who has earnings derived from noncovered service performed in a year after #aigg1 the primary insurance amount of such individual shall be the amount computed or recomputed under this paragraph4 7,b7 ,the primary insurance amount of an individual described in subparagraph 7,a71 as computed or recomputed under this paragraph1 shall be the product derived by multiplying-- 7i7 the individual's primary insurance amount1 as determined under paragraph 7#a7 of this subsection and subparagraph 7,c7 of this paragraph1 by 7ii7 a fraction-- 7,i7 the numerator of which is the individual's average indexed monthly earnings 7determined without regard to subparagraph 7,c771 and 7,,ii7 the denominator of which is an amount equal to the individual's average indexed monthly earnings 7as determined under subparagraph 7,c771 rounded1 if not a multiple of #j4aj1 to the next lower multiple of #j4aj4 7,c7 7i7 ,for purposes of determining an individual's primary insurance amount pursuant to clauses 7i7 and 7ii77,,ii7 of subparagraph 7,b71 the individual's average indexed monthly earnings shall be determined by treating all recorded noncovered earnings 7as defined in clause 7ii77,i77 derived by the individual from noncovered service performed in each year after #aigg as wages 7as defined in section #bji for purposes of this title71 which shall be treated as included in the individual's adjusted total covered earnings 7as defined in clause 7ii77,,ii77 for such calendar year together with amounts consisting of wages 7as so defined without regard to this subparagraph7 paid during such calendar year and self-employment income 7as defined in section #baa7;b77 for taxable years ending with or during such calendar year4 7ii7 ,for purposes of this subparagraph3 7,i7 ,the term recorded noncovered earnings means earnings derived from noncovered service 7other than noncovered service as a member of a uniformed service 7as defined in section #baj7m77 for which satisfactory evidence is determined by the ,commissioner to be available in the records of the ,commissioner4 7,,ii7 ,the term adjusted total covered earnings means1 in connection with an individual for any calendar year1 the sum of the wages paid to the individual during such calendar year 7as adjusted under subsection 7b77#c77 plus the self-employment income derived by the individual during any taxable year ending with or during such calendar year 7as adjusted under subsection 7b77#c774 7iii7 ,the ,commissioner of ,social ,security shall provide by regulation or other public guidance for methods for determining whether satisfactory evidence is available in the records of the ,commissioner for earnings for noncovered service 7other than noncovered service as a member of a uniformed service 7as defined in section #baj7m77 to be treated as recorded noncovered earnings4 ,such methods shall provide for reliance on earnings information which is provided to the ,commissioner by employers and which1 as determined by the ,commissioner1 constitute a reasonable basis for treatment of earnings for noncovered service as recorded noncovered earnings4 ,in making determinations under this clause1 the ,commissioner shall also take into account any documentary or other evidence of earnings derived from noncovered service by an individual which is provided by the individual to the ,commissioner and which the ,commissioner considers appropriate as a reasonable basis for treatment of such earnings as recorded noncovered earnings4 7,d7 ,upon the death of an individual whose primary insurance amount is computed or recomputed under this paragraph1 such primary insurance amount shall be computed or recomputed under paragraph 7#a7 of this subsection4 7,e7 ,in the case of any individual whose primary insurance amount would be computed under this paragraph who first becomes entitled after #aihe to a monthly periodic payment made by a foreign employer or foreign country that is based in whole or in part upon noncovered service1 the primary insurance amount of such individual shall be computed or recomputed under paragraph 7#g7 or paragraph 7#a71 as applicable1 for months beginning with the first month of the individual's initial entitlement to such monthly periodic payment4 4 7b7 ,conforming amendments ,section #bae7;a77#g77;,a7 of such ,act 7#db ,u4,s4,c4 #dae7;a77#g77;,a77 is amended-- 7#a7 in clause 7i7-- 7,a7 by striking after #aihe and inserting after #aihe and before #bjfa2 and 7,b7 by striking or at the end2 7#b7 in clause 7ii7-- 7,a7 by striking after #aihe each place it appears and inserting after #aihe and before #bjfa2 and 7,b7 by adding or at the end2 7#c7 by inserting after clause 7ii7 the following3 7iii7 is an individual described in paragraph 7#h77;,e71 2 and 7#d7 by striking hereafter in this paragraph and in subsection 7d77#c7 and inserting in this paragraph1 paragraphs 7#h7 and 7#i71 and subsection 7d77#c74 7c7 ,effective date ,the amendments made by this section shall apply with respect to monthly insurance benefits payable on or after ,january #a1 #bjbb4 #c4 ,benefit calculation during transition period 7a7 ,in general ,section #bae7;a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;a771 as amended by section #b1 is further amended by inserting after paragraph 7#h7 the following3 7#i7 7,a7 ,in the case of an individual whose primary insurance amount would be computed under paragraph 7#a7 of this subsection-- 7i7 who first becomes eligible for an old-age or disability insurance benefit after #bjba and before #bjfa1 7ii7 who subsequently becomes entitled to such benefit1 and 7iii7 who has earnings derived from noncovered service performed in a year after #aigg1 the primary insurance amount of such individual shall be the higher of the amount computed or recomputed under paragraph 7#g7 without regard to this paragraph or the amount that would be computed or recomputed under paragraph 7#h7 if the individual were an individual described in subparagraph 7,a7 of such paragraph4 4 7b7 ,conforming amendment ,section #bae7;a77#g77;,a7 of such ,act 7#db ,u4,s4,c4 #dae7;a77#g77;,a771 as amended by section #b7;b71 is further amended by striking shall be computed or recomputed and inserting shall1 subject to paragraph 7#i71 be computed or recomputed4 7c7 ,effective date ,the amendments made by this section shall apply with respect to monthly insurance benefits payable on or after ,january #a1 #bjbb4 #d4 ,additional monthly payment for individuals whose benefit amount is reduced by the windfall elimination provision 7a7 ,in general ,section #bae7;a7 of such ,act 7#db ,u4,s4,c4 #dae7;a771 as amended by sections #b and #c1 is further amended by adding at the end the following3 7#aj7 7,a7 ,for any month in a calendar year after #bjai1 the ,commissioner of ,social ,security shall1 subject to subparagraphs 7,c7 and 7,d71 make an additional monthly payment of #ajj to each individual who is an eligible individual for such month1 and an additional monthly payment of #ej to each individual 7other than an eligible individual7 who is entitled to a benefit under section #bjb for such month on the basis of the wages and self-employment income of such eligible individual4 7,b7 ,for purposes of this paragraph1 the term eligible individual for a month means an individual who-- 7i7 7,i7 first becomes eligible for an old-age or disability insurance benefit under this title before #bjbb2 or 7,,ii7 is an individual described in paragraph 7#h77;,e72 and 7ii7 is entitled to an old-age or disability insurance benefit under this title for such month based on a primary insurance amount that was computed or recomputed under paragraph 7#g7 7and not subsequently recomputed under any other paragraph of this subsection74 7,c7 ,in any case in which this title provides that no monthly benefit under section #bjb or #bbc shall be paid to an individual for a month1 no additional monthly payment shall be paid to the individual for such month4 ,this subparagraph shall not apply in the case of an individual whose monthly benefit under section #bjb or #bbc is reduced1 regardless of the amount of the reduction1 based on the individual's receipt of other income or benefits for such month or the application of section #bjc7;a7 or due to the adjustment or recovery of an overpayment under section #bjd4 7,d7 7i7 ,an individual is not entitled to receive more than one additional monthly payment for a month under this paragraph4 7ii7 ,an eligible individual who is entitled to a benefit under section #bjb on the basis of the wages and self-employment income of another eligible individual for a month shall receive an additional monthly payment under this paragraph in the amount of #ajj for such month4 7,e7 ,except for purposes of adjustment or recovery of an overpayment under section #bjd1 an additional monthly payment under this paragraph shall not be subject to any reduction or deduction under this title4 7,f7 ,whenever benefit amounts under this title are increased by any percentage effective with any month as a result of a determination made under subsection 7i71 each of the dollar amounts in subparagraph 7,a7 shall be increased by the same percentage for months beginning with such month4 4 7b7 ,effective date ,the amendments made by this section shall apply with respect to monthly insurance benefits payable on or after ,january #a1 #bjbj4 #e4 ,reporting of noncovered earnings on social security account statements 7a7 ,in general ,section #aadc7;a77#b7 of the ,social ,security ,act 7#db ,u4,s4,c4 #acbj;b-#ac7;a77#b77 is amended-- 7#a7 by redesignating subparagraphs 7,b7 through 7,e7 as subparagraphs 7,c7 through 7,f72 and 7#b7 by inserting after subparagraph 7,a7 the following3 7,b7 the amount of earnings derived by the eligible individual from service performed after #aigg which did not constitute employment 7as defined in section #baj71 not including service as a member of a uniformed service 7as defined in section #baj7m771 as shown by the records of the ,commissioner at the date of the request2 4 7b7 ,effective date ,the amendments made by this section shall apply with respect to ,social ,security account statements issued on or after ,january #a1 #bjbj4 #f4 ,study on partnering with ,state and local pension systems 7a7 ,study 7#a7 ,in general ,the ,commissioner of ,social ,security shall study and test the administrative feasibility of partnering with ,state and local pension systems1 or other governmental entities1 to improve the collection and sharing of information relating to ,state and local noncovered pensions4 7#b7 ,coordination with ,state and local pension systems ,in conducting the study described in paragraph 7#a71 the ,commissioner shall coordinate with ,state and local pension systems that reflect the diversity of systems and individual experiences to explore the development of automated data exchange agreements that facilitate reporting of information relating to noncovered pensions4 7b7 ,report ,the ,commissioner of ,social ,security shall conclude the study described in subsection 7a7 not later than #d years after the date of enactment of this ,act4 ,as soon as possible after conclusion of the study and not later than #da_/b years after the date of enactment of this ,act1 the ,commissioner shall submit to the ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate a report on the results of the study4 ,such report shall include the following3 7#a7 ,a discussion of how the automated data exchange agreements could be implemented to cover noncovered pensions nationally1 including the range of implementation timelines across ,state and local pension systems1 or with other governmental entities4 7#b7 ,an analysis of the barriers to developing automated data exchange agreements and lessons learned that can help address these barriers4 7#c7 ,a description of alternative methods for obtaining information related to noncovered pensions1 and an analysis of the barriers to obtaining noncovered pension data through such methods4 7#d7 ,an explanation of how coverage information is obtained by the ,social ,security ,administration when an individual purchases service credits to apply to a new covered or noncovered pension after moving from another covered or noncovered pension within the ,state or in another ,state4 7#e7 ,an estimate of the total amount1 as of the date of the enactment of this ,act1 of noncovered pensions not reported to the ,social ,security ,administration as a result of noncompliance with voluntary reporting policies4 7c7 ,state and local pension information ,to be requested by the ,commissioner ,section #bjb of the ,social ,security ,act 7#db ,u4,s4,c4 #djb7 is amended by inserting after subsection 7l7 the following3 7m7 ,state and local pension information ,to be requested by the ,commissioner 7#a7 ,the ,commissioner may partner with ,states to request information1 including the information specified in paragraph 7#b71 with respect to any designated distribution 7as defined in section #cdje7;e77#a7 of the ,internal ,revenue ,code of #aihf7 from an employer deferred compensation plan 7as defined in section #cdje7;e77#e7 of such ,code7 of the ,state 7or political subdivision thereof7 to a participant of such plan in any case in which any portion of such participant's earnings for service under such plan did not constitute employment as defined in section #baj for purposes of this title4 7#b7 ,the information specified in this paragraph is the following3 7,a7 ,the name and ,social ,security account number of the participant receiving the designated distribution4 7,b7 ,the dollar amount of the designated distribution and the date paid4 7,c7 ,the date on which the participant initially became eligible for a designated distribution under the plan and1 if different1 the date of payment of the initial designated distribution4 7,d7 ,the dates of each period of service under the plan that did not constitute employment as defined in section #baj for purposes of this title1 and the dates of any other period of service under the plan4 4 7d7 ,definitions ,in this section-- 7#a7 the term noncovered pension means a pension any part of which is based on noncovered service 7within the meaning of section #bae7;a77#g7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;a77#g7772 and 7#b7 the term covered pension means any other pension4