,i  #aagth ,,congress  #ast ,session    
,h4 ,r4 #diba  ,,in ,,the ,,house ,,of  
,,representatives  ,august #c1 #bjba,ms4
 ,snchez 7for herself1 ,mr4 ,pocan1 ,mr4
 ,lynch1 ,mr4 ,cohen1 ,ms4 ,lee of      
,california1 ,ms4 ,pingree1 ,mr4 ,smith 
of ,washington1 ,mr4 ,rush1 ,mr4        
,cartwright1 and ,ms4 ,schakowsky7      
introduced the following bill2 which was
 referred to the ,committee on ,ways and
 ,means1 and in addition to the         
,committee on ,education and ,labor1 for
 a period to be subsequently determined 
by the ,speaker1 in each case for       
consideration of such provisions as fall
 within the jurisdiction of the         
committee concerned  ,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
 #bjba4  #b4 ,determination of taxable  
wages and self-employment income above  
contribution and benefit base after     

#bjbb  7a7 ,determination of taxable    
wages above contribution and benefit    
base after #bjbb  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 #bjbc1
 #hj percent1  7,b7 for #bjbd through   
#bjbf1 the applicable percentage under  
this paragraph for the previous year1   
decreased by #bj percentage points1 and 
7,c7 for #bjbg 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 #bjbc 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 #bjbb 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 #bjbc1 #hj percent1 
7#b7 for #bjbd through #bjbf1 the       
applicable percentage under this        
subsection for the previous year1       
decreased by #bj percentage points1 and 
7#c7 for #bjbg 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 #bjbb4    
7b7 ,determination of taxable           
self-,employment income above           
contribution and benefit base after     
#bjbb  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 #bjbc1 #hj      
percent1  7,b7 for #bjbd through #bjbf1 

the applicable percentage under this    
paragraph for the previous year1        
decreased by #bj percentage points1 and 
7,c7 for #bjbg 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 #bjbc 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 #bjbb1 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     
year1 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 
#bjbc1 #hj percent1  7#b7 for #bjbd     
through #bjbf1 the applicable percentage
 under this subsection for the previous 
year1 decreased by #bj percentage       
points1 and  7#c7 for #bjbg 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 #bjbc4  #c4         
,adjustments to bend points in          
determining primary insurance amount and
 inclusion of surplus earnings for      
benefit determinations  7a7 ,adjustments
 relating to first bend point  7#a7     
,increase in first bend point factor    

7,a7 ,in general ,section               
#bae7;a77#a77;,a77i7 of the ,social     
,security ,act 7#db ,u4,s4,c4           
#dae7;a77#a77;,a77i77 is amended by     
striking #ij percent and inserting #ie  
percent4  7,b7 ,effective date2         
application rule ,the amendment made by 
subparagraph 7,a7 shall apply with      
respect to computations or              
recomputations of primary insurance     
amounts made on or after ,january #a1   
#bjbg1 except that section              
#bae7;a77#a77;,a77i7 of the ,social     
,security ,act shall be applied by      
making the following substitutions for  
#ie percent for computations and        
recomputations made in the following    
calendar years3 7i7 ,for calendar year  
#bjbg1 by substituting #ia percent4     
7ii7 ,for calendar year #bjbh1 by       
substituting #ib percent4  7iii7 ,for   
calendar year #bjbi1 by substituting #ic
 percent4  7iv7 ,for calendar year      
#bjcj1 by substituting #id percent4     
7#b7 ,increase in first bend point      

,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 ,with      
respect to computations or              
recomputations of primary insurance     
amounts made on or after ,january #a1   
#bjbg1 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 #bjbh1 #a   
percent1  7,,ii7 for each of calendar   
years #bjbi through #bjda1 the percent  
determined under this clause for the    
preceding year increased by #a          
percentage point1 and  7,,iii7 for      
calendar year #bjdb and each year       
thereafter1 #ae percent4  4  7#c7       
,application of increase2 recomputations
 ,the amendments made by this subsection
 shall apply with respect to every      
individual who becomes entitled to      

old-age or disability insurance benefits
 under title ,,ii of the ,social        
,security ,act1 or who dies 7before     
becoming so entitled71 in any calendar  
year4 ,notwithstanding section          
#bae7;f77#a7 of the ,social ,security   
,act1 the ,commissioner of ,social      
,security shall recompute the primary   
insurance amount of each such individual
 on the first day of each calendar year 
during the period beginning with        
calendar year #bjbg and ending with     
calendar year #bjdb to the extent       
necessary to carry out the amendments   
made by this section4  7b7 ,inclusion of
 surplus average indexed monthly        
earnings in determination of primary    
insurance amounts ,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  7c7 ,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  7d7 ,effective date ,the  
amendments made by subsections 7b7 and  
7c7 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 #bjbg4  #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 #bjba14  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      
#bjbb4  #f4 ,improving social security  
benefits for widows and widowers in     
two-income households  7a7 ,in general  
7#a7 ,widows ,section #bjb7;e7 of the   
,social ,security ,act 7#db ,u4,s4,c4   
#djb7;e77 is amended-- 7,a7 in paragraph
 7#a7-- 7i7 in subparagraph 7,b71 by    
inserting and at the end2  7ii7 in      
subparagraph 7,c77iii71 by striking and 

at the end2  7iii7 by striking          
subparagraph 7,d72  7iv7 by             
redesignating subparagraphs 7,e7 and    
7,f7 as subparagraphs 7,d7 and 7,e71    
respectively2 and  7v7 in the flush     
matter following subparagraph 7,e77ii71 
as so redesignated1 by striking or      
becomes entitled to an old-age insurance
 benefit and all that follows through   
such deceased individual12  7,b7 by     
striking subparagraph 7,a7 in paragraph 
7#b7 and inserting the following3  7#b7 
7,a7 ,except as provided in subsection  
7k77#e71 subsection 7q71 and            
subparagraph 7,d7 of this paragraph1    
such widow's insurance benefit for each 
month shall be equal to the greater of--
 7i7 subject to paragraph 7#i71 the     
primary insurance amount 7as determined 
for purposes of this subsection after   
application of subparagraphs 7,b7 and   
7,c77 of such deceased individual1 or   
7ii7 subject to paragraphs 7#i7 and     
7#aj71 in the case of a fully insured   
widow or surviving divorced wife1 #ge   

percent of the sum of any old-age or    
disability insurance benefit for which  
the widow or the surviving divorced wife
 is entitled for such month and the     
primary insurance amount 7as determined 
for purposes of this subsection after   
application of subparagraphs 7,b7 and   
7,c77 of such deceased individual4  2   
7,c7 in paragraph 7#e7-- 7i7 in         
subparagraph 7,a71 by striking paragraph
 7#a77;,f7 and inserting paragraph      
7#a77;,e72 and  7ii7 in subparagraph    
7,b71 by striking paragraph 7#a77;,f77i7
 and inserting paragraph 7#a77;,e77i72  
and  7,d7 by adding at the end the      
following new paragraphs3  7#i7 ,for    
purposes of clauses 7i7 and 7ii7 of     
paragraph 7#b77;,a71 in the case of a   
surviving divorced wife1 the amount     
determined under either such clause     
7and1 for purposes of clause 7ii7 of    
paragraph 7#b77;,a71 as determined after
 application of paragraph 7#aj77 shall  
be equal to the applicable percentage   
7as determined under section            

#bjb7;b77#b77;,b77 of such amount 7as   
determined before application of this   
paragraph but after application of      
subsection 7k77#c774  7#aj7 ,for        
purposes of paragraph 7#b77;,a77ii71 the
 amount determined under such paragraph 
shall not exceed the primary insurance  
amount for such month of a hypothetical 
individual-- 7,a7 who became entitled to
 old-age insurance benefits upon        
attaining early retirement age during   
the month in which the deceased         
individual referred to in paragraph 7#a7
 became entitled to old-age or          
disability insurance benefits1 or died  
7before becoming entitled to such       
benefits71 and  7,b7 to whom wages and  
self-employment income were credited in 
each of such hypothetical individual's  
elapsed years 7within the meaning of    
section #bae7;b77#b77;,b77iii77 in an   
amount equal to the national average    
wage index 7as described in section     
#bji7k77#a77 for each such year4  4     
7#b7 ,widowers ,section #bjb7;f7 of the 

,social ,security ,act 7#db ,u4,s4,c4   
#djb7;f77 is amended-- 7,a7 in paragraph
 7#a7-- 7i7 in subparagraph 7,b71 by    
inserting and at the end2  7ii7 in      
subparagraph 7,c77iii71 by striking and 
at the end2  7iii7 by striking          
subparagraph 7,d72  7iv7 by             
redesignating subparagraphs 7,e7 and    
7,f7 as subparagraphs 7,d7 and 7,e71    
respectively2 and  7v7 in the flush     
matter following subparagraph 7,e77ii71 
as so redesignated1 by striking or      
becomes entitled to an old-age insurance
 benefit and all that follows through   
such deceased individual12  7,b7 by     
striking subparagraph 7,a7 in paragraph 
7#b7 and inserting the following3  7#b7 
7,a7 ,except as provided in subsection  
7k77#e71 subsection 7q71 and            
subparagraph 7,d7 of this paragraph1    
such widower's insurance benefit for    
each month shall be equal to the greater
 of-- 7i7 subject to paragraph 7#i71 the
 primary insurance amount 7as determined
 for purposes of this subsection after  

application of subparagraphs 7,b7 and   
7,c77 of such deceased individual1 or   
7ii7 subject to paragraphs 7#i7 and     
7#aj71 in the case of a fully insured   
widower or surviving divorced husband1  
#ge percent of the sum of any old-age or
 disability insurance benefit for which 
the widower or the surviving divorced   
husband is entitled for such month and  
the primary insurance amount 7as        
determined for purposes of this         
subsection after application of         
subparagraphs 7,b7 and 7,c77 of such    
deceased individual4  2  7,c7 in        
paragraph 7#e7-- 7i7 in subparagraph    
7,a71 by striking paragraph 7#a77;,f7   
and inserting paragraph 7#a77;,e72 and  
7ii7 in subparagraph 7,b71 by striking  
paragraph 7#a77;,f77i7 and inserting    
paragraph 7#a77;,e77i72 and  7,d7 by    
adding at the end the following new     
paragraphs3  7#i7 ,for purposes of      
clauses 7i7 and 7ii7 of paragraph       
7#b77;,a71 in the case of a surviving   
divorced husband1 the amount determined 

under either such clause 7and1 for      
purposes of clause 7ii7 of paragraph    
7#b77;,a71 as determined after          
application of paragraph 7#aj77 shall be
 equal to the applicable percentage 7as 
determined under section                
#bjb7;c77#b77;,b77 of such amount 7as   
determined before application of this   
paragraph but after application of      
subsection 7k77#c774  7#aj7 ,for        
purposes of paragraph 7#b77;,a77ii71 the
 amount determined under such paragraph 
shall not exceed the primary insurance  
amount for such month of a hypothetical 
individual-- 7,a7 who became entitled to
 old-age insurance benefits upon        
attaining early retirement age during   
the month in which the deceased         
individual referred to in paragraph 7#a7
 became entitled to old-age or          
disability insurance benefits1 or died  
7before becoming entitled to such       
benefits71 and  7,b7 to whom wages and  
self-employment income were credited in 
each of such hypothetical individual's  

elapsed years 7within the meaning of    
section #bae7;b77#b77;,b77iii77 in an   
amount equal to the national average    
wage index 7as described in section     
#bji7k77#a77 for each such year4  4  7b7
 ,effective date ,the amendments made by
 this section shall apply with respect  
to widow's and widower's insurance      
benefits payable for months after       
,december #bjbb4  #g4 ,holding ,,ssi    
beneficiaries harmless ,for purposes of 
determining the income of an individual 
to establish eligibility for1 and the   
amount of1 benefits payable under title 
,,xvi of the ,social ,security ,act1 the
 amount of any benefit to which the     
individual is entitled under title ,,ii 
of such ,act shall be deemed not to     
exceed the amount of the benefit that   
would be determined for such individual 
under such title as in effect on the day
 before the date of the enactment of    
this ,act4