,,ii #aaith ,,congress #ast ,session ,s4 #cdfb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #aa1 #bjbe,mr4 ,schatz 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 increasing ,social ,security benefits for current and future beneficiaries while making ,social ,security stronger for future generations4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,safeguarding ,american ,families and ,expanding ,social ,security ,act of #bjbe4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,determination of taxable wages and self-employment income above contribution and benefit base after #bjbe4,sec4 #c4 ,adjustments to primary insurance amount formula and inclusion of surplus earnings for benefit determinations4,sec4 #d4 ,computation of cost-of-living increases for ,social ,security benefits2 consumer price index for elderly consumers4 #b4 ,determination of taxable wages and self-employment income above contribution and benefit base after #bjbe 7a7 ,determination of taxable wages above contribution and benefit base after #bjbe 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 #bjbf1 #hj percent2 7,b7 for #bjbg through #bjbi1 the applicable percentage under this paragraph for the previous year1 decreased by #bj percentage points2 and 7,c7 for #bjcj 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#a7-- 7i7 in subparagraph 7,i7-- 7,i7 by inserting and before #bjbf after #aigd2 and 7,,ii7 by inserting and after the semicolon2 and 7ii7 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 #bjbe with respect to which such contribution and benefit base is effective1 is paid to such individual during such calendar year2 2 and 7,b7 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 #bjbf1 #hj percent2 7#b7 for #bjbg through #bjbi1 the applicable percentage under this subsection for the previous year1 decreased by #bj percentage points2 and 7#c7 for #bjcj 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 #bjbe4 7b7 ,determination of taxable self-,employment income above contribution and benefit base after #bjbe 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 subsection shall be equal to-- 7,a7 for #bjbf1 #hj percent2 7,b7 for #bjbg through #bjbi1 the applicable percentage under this paragraph for the previous year1 decreased by #bj percentage points2 and 7,c7 for #bjcj 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 #bjbf 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 #bjbe1 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 #bjbf1 #hj percent2 7#b7 for #bjbg through #bjbi1 the applicable percentage under this subsection for the previous year1 decreased by #bj percentage points2 and 7#c7 for #bjcj 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 after calendar year #bjbe4 #c4 ,adjustments to primary insurance amount formula and inclusion of surplus earnings for benefit determinations 7a7 ,increase in percentage factor for lowest portion of earnings used ,to determine primary insurance amounts ,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 7b7 ,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 adjustments ,section #bae7;a77#a77;,b7 of such ,act 7#db ,u4,s4,c4 #dae7;a77#a77;,b77 is amended-- 7,a7 in clause 7i71 by inserting ,for individuals who initially become eligible for old-age or disability insurance benefits1 or who die 7before becoming eligible for such benefits71 in the calendar year #bjbf1 the amount established for purposes of clause 7ii7 of subparagraph 7,a7 shall be #f1cjj4 after the period2 7,b7 in clause 7ii7-- 7i7 by redesignating subclauses 7,i7 and 7,,ii7 as items 7aa7 and 7bb71 respectively2 7ii7 by striking ,for individuals and inserting 7,i7 ,subject to subclause 7,,ii71 for individuals2 and 7iii7 by adding at the end the following new subclause3 7,,ii7 ,for individuals who initially become eligible for old-age or disability insurance benefits1 or who die 7before becoming eligible for such benefits71 in any calendar year after #bjbf1 the amount established for purposes of clause 7ii7 of subparagraph 7,a7 shall equal the product of the amount established with respect to calendar year #bjbf under clause 7i7 of this subparagraph and the quotient obtained by dividing-- 7aa7 the national average wage index 7as defined in section #bji7k77#a77 for the second calendar year preceding the calendar year for which the determination is made1 by 7bb7 the national average wage index 7as so defined7 for #bjbd4 2 7,c7 by redesignating clause 7iii7 as clause 7iv72 and 7,d7 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 #bjcj1 the amount determined under clause 7ii7 of this subparagraph for purposes of subparagraph 7,a77i7 for such calendar year shall be increased by-- 7,i7 for calendar year #bjca1 #a percent2 7,,ii7 for each of calendar years #bjcb through #bjdd1 the percent determined under this clause for the preceding year increased by #a percentage point2 and 7,,iii7 for calendar year #bjde and each year thereafter1 #ae percent4 4 7#c7 ,recomputation of benefits for existing beneficiaries ,section #bae7;f7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;f77 is amended by adding at the end the following new paragraph3 7#aj7 ,recomputation of primary insurance amount for individuals who became eligible for benefits before #bjbf 7,a7 ,the ,commissioner of ,social ,security shall recompute the primary insurance amounts applicable to beneficiaries whose benefits are based on a primary insurance amount that was computed under this section effective prior to ,january #bjbf4 ,such recomputation shall be effective ,january #bjbf4 7,b7 ,in recomputing the primary insurance amount applicable to a beneficiary under this paragraph1 the ,commissioner of ,social ,security shall calculate the primary insurance amount of the individual under subsection 7a77#a7 as in effect on the date that such primary insurance amount was initially computed1 except that the ,commissioner shall substitute for the amount that applied under subparagraph 7,b77ii7 of such subsection on such date an amount equal to the product of-- 7i7 the amount that applied under such subparagraph on such date2 and 7ii7 the ratio of-- 7,i7 #f1cjj2 to 7,,ii7 #f1jjb4 7,c7 ,each amount determined under subparagraph 7,b7 shall be rounded to the nearest #a1 except that any amount so established which is a multiple of #j4ej but not of #a shall be rounded to the next higher #a4 7,d7 ,if a primary insurance amount applicable to a beneficiary1 as recomputed under this paragraph1 is lower than the primary insurance amount applicable to such beneficiary as it was originally computed1 such higher primary insurance amount shall continue to apply to such beneficiary4 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 striking ,an individual's and inserting 7,a7 ,an individual's2 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,a7-- 7i7 by striking subparagraph 7,b7 and inserting subparagraph 7,c72 and 7ii7 by inserting and determination of basic average indexed monthly income under paragraph 7#a77;,a7 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 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 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 #bjcj4 #d4 ,computation of cost-of-living increases for ,social ,security benefits2 consumer price index for elderly consumers 7a7 ,computation of cost-of-,living increases 7#a7 ,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 the ,consumer ,price ,index for ,elderly ,consumers and such primary insurance amount shall be adjusted under this subsection using such ,index2 and 7,b7 in paragraph 7#d7-- 7i7 by striking and by section #ijja and inserting 1 by section #ijja2 and 7ii7 by striking #aihf1 and inserting #aihf1 and by section #e7;a7 of the ,safeguarding ,american ,families and ,expanding ,social ,security ,act of #bjbe14 7#b7 ,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 the ,consumer ,price ,index for ,elderly ,consumers and such primary insurance amount shall be adjusted under this subsection using such ,index4 7#c7 ,effective date ,the amendments made by this subsection 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 #bjbf4 7b7 ,consumer price index for elderly consumers 7#a7 ,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 benefit4 7#b7 ,effective date ,paragraph 7#a7 shall apply with respect to calendar months ending on or after ,june #cj of the calendar year in which this ,act is enacted4 7#c7 ,authorization of appropriations ,there are authorized to be appropriated such sums as are necessary to carry out the provisions of this subsection4