,,ii  #aai? ,,congress  #a/ ,session    
,s4 #cdfb  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,decemb] #aa1 #bjbe,mr4
 ,s*atz introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to improve !       
retirem5t security ( ,am]ican families  
by increas+ ,social ,security b5efits = 
curr5t & future b5efici>ies :ile mak+   
,social ,security /rong] = future       
g5]ations4  #a4 ,%ort title2 table (    
cont5ts  7a7 ,%ort title ,?is ,act may  
be cit$ z ! ,safegu>d+ ,am]ican         
,families & ,exp&+ ,social ,security    
,act ( #bjbe4  7b7 ,table ( cont5ts ,!  
table ( cont5ts = ?is ,act is z foll[s3 
,sec4 #a4 ,%ort title2 table (          
cont5ts4,sec4 #b4 ,det]m9ation ( taxable
 wages & self-employm5t income above    
contribution & b5efit base aft]         
#bjbe4,sec4 #c4 ,adju/m5ts to prim>y    
insurance am\nt =mula & inclusion (     
surplus e>n+s = b5efit                  
det]m9ations4,sec4 #d4 ,computation (   
co/-(-liv+ increases = ,social ,security

 b5efits2 consum] price index = eld]ly  
consum]s4  #b4 ,det]m9ation ( taxable   
wages & self-employm5t income above     
contribution & b5efit base aft] #bjbe   
7a7 ,det]m9ation ( taxable wages above  
contribution & b5efit base aft] #bjbe   
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 = #bjbf1 #hj    
p]c5t2  7,b7 = #bjbg ?r\gh #bjbi1 !     
applicable p]c5tage "u ?is p>agraph = ! 
previ\s ye>1 decreas$ by #bj p]c5tage   
po9ts2 &  7,c7 = #bjcj & 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$-- 7,a7 9 subsection 7a77#a7-- 7i7 
9 subp>agraph 7,i7-- 7,i7 by ins]t+ &   
be=e #bjbf aft] #aigd2 &  7,,ii7 by     
ins]t+ & aft] ! semicolon2 &  7ii7 by   
add+ at ! end ! foll[+ new subp>agraph3 
7,j7 ,! applicable p]c5tage 7det]m9$ "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] #bjbe ) respect to :i*  
su* contribution & b5efit base is       
effective1 is paid to su* individual    
dur+ su* cal5d> ye>2  2 &  7,b7 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 = #bjbf1 #hj p]c5t2 
7#b7 = #bjbg ?r\gh #bjbi1 ! applicable  
p]c5tage "u ?is subsection = ! previ\s  
ye>1 decreas$ by #bj p]c5tage po9ts2 &  
7#c7 = #bjcj & 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] #bjbe4  7b7            
,det]m9ation ( taxable self-,employm5t  
income above contribution & b5efit base 
aft] #bjbe  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* subsection   
%all be equal to-- 7,a7 = #bjbf1 #hj    
p]c5t2  7,b7 = #bjbg ?r\gh #bjbi1 !     
applicable p]c5tage "u ?is p>agraph = ! 
previ\s ye>1 decreas$ by #bj p]c5tage   
po9ts2 &  7,c7 = #bjcj & 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$-- 7,a7 9       
subsection 7b7-- 7i7 9 p>agraph         
7#a77;,i7-- 7,i7 by /rik+ or aft] !     
semicolon2 &  7,,ii7 by ins]t+ & be=e   
#bjbf aft] #aigd2  7ii7 by r$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] #bjbe1 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 =      
#bjbf1 #hj p]c5t2  7#b7 = #bjbg ?r\gh   
#bjbi1 ! applicable p]c5tage "u ?is     
subsection = ! previ\s ye>1 decreas$ by 
#bj p]c5tage po9ts2 &  7#c7 = #bjcj &   
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+ aft] cal5d> ye>     
#bjbe4  #c4 ,adju/m5ts to prim>y        
insurance am\nt =mula & inclusion (     
surplus e>n+s = b5efit det]m9ations  7a7
 ,increase 9 p]c5tage factor = l[e/     
portion ( e>n+s us$ ,to det]m9e prim>y  
insurance am\nts ,section               
#bae7;a77#a77;,a77i7 ( ! ,social        
,security ,act 7#db ,u4,s4,c4           
#dae7;a77#a77;,a77i77 is am5d$ by /rik+ 
#ij p]c5t & ins]t+ #ie p]c5t4  7b7      
,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/m5ts ,section #bae7;a77#a77;,b7 (  
su* ,act 7#db ,u4,s4,c4                 
#dae7;a77#a77;,b77 is am5d$-- 7,a7 9    
clause 7i71 by ins]t+ ,= individuals :o 
initially become eligible = old-age or  
disability insurance b5efits1 or :o die 
7be=e becom+ eligible = su* b5efits71 9 
! cal5d> ye> #bjbf1 ! am\nt e/abli%$ =  
purposes ( clause 7ii7 ( subp>agraph    
7,a7 %all be #f1cjj4 aft] ! p]iod2  7,b7
 9 clause 7ii7-- 7i7 by r$esignat+      
subclauses 7,i7 & 7,,ii7 z items 7aa7 & 
7bb71 respectively2  7ii7 by /rik+ ,=   
individuals & ins]t+ 7,i7 ,subject to   
subclause 7,,ii71 = individuals2 &      
7iii7 by add+ at ! end ! foll[+ new     
subclause3  7,,ii7 ,= individuals :o    
initially become eligible = old-age or  
disability insurance b5efits1 or :o die 
7be=e becom+ eligible = su* b5efits71 9 
any cal5d> ye> aft] #bjbf1 ! am\nt      
e/abli%$ = purposes ( clause 7ii7 (     
subp>agraph 7,a7 %all equal ! product ( 
! am\nt e/abli%$ ) respect to cal5d> ye>
 #bjbf "u clause 7i7 ( ?is subp>agraph &

 ! quoti5t obta9$ by divid+-- 7aa7 !    
national av]age wage index 7z def9$ 9   
section #bji7k77#a77 = ! second cal5d>  
ye> prec$+ ! cal5d> ye> = :i* !         
det]m9ation is made1 by  7bb7 ! national
 av]age wage index 7z s def9$7 = #bjbd4 
2  7,c7 by r$esignat+ clause 7iii7 z    
clause 7iv72 &  7,d7 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] #bjcj1 ! am\nt det]m9$  
"u clause 7ii7 ( ?is subp>agraph =      
purposes ( subp>agraph 7,a77i7 = su*    
cal5d> ye> %all be increas$ by-- 7,i7 = 
cal5d> ye> #bjca1 #a p]c5t2  7,,ii7 =   
ea* ( cal5d> ye>s #bjcb ?r\gh #bjdd1 !  
p]c5t det]m9$ "u ?is clause = ! prec$+  
ye> increas$ by #a p]c5tage po9t2 &     
7,,iii7 = cal5d> ye> #bjde & ea* ye>    
!reaft]1 #ae p]c5t4  4  7#c7            
,recomputation ( b5efits = exi/+        
b5efici>ies ,section #bae7;f7 ( !       

,social ,security ,act 7#db ,u4,s4,c4   
#dae7;f77 is am5d$ by add+ at ! end !   
foll[+ new p>agraph3  7#aj7             
,recomputation ( prim>y insurance am\nt 
= individuals :o became eligible =      
b5efits be=e #bjbf  7,a7 ,! ,commission]
 ( ,social ,security %all recompute !   
prim>y insurance am\nts applicable to   
b5efici>ies ^: b5efits are bas$ on a    
prim>y insurance am\nt t 0 comput$ "u   
?is section effective prior to ,janu>y  
#bjbf4 ,su* recomputation %all be       
effective ,janu>y #bjbf4  7,b7 ,9       
recomput+ ! prim>y insurance am\nt      
applicable to a b5efici>y "u ?is        
p>agraph1 ! ,commission] ( ,social      
,security %all calculate ! prim>y       
insurance am\nt ( ! individual "u       
subsection 7a77#a7 z 9 effect on ! date 
t su* prim>y insurance am\nt 0 initially
 comput$1 except t ! ,commission] %all  
sub/itute = ! am\nt t appli$ "u         
subp>agraph 7,b77ii7 ( su* subsection on
 su* date an am\nt equal to ! product   
(-- 7i7 ! am\nt t appli$ "u su*         

subp>agraph on su* date2 &  7ii7 ! ratio
 (-- 7,i7 #f1cjj2 to  7,,ii7 #f1jjb4    
7,c7 ,ea* am\nt det]m9$ "u subp>agraph  
7,b7 %all be r\nd$ to ! ne>e/ #a1 except
 t any am\nt s e/abli%$ :i* is a        
multiple ( #j4ej b n ( #a %all be r\nd$ 
to ! next high] #a4  7,d7 ,if a prim>y  
insurance am\nt applicable to a         
b5efici>y1 z recomput$ "u ?is p>agraph1 
is l[] ?an ! prim>y insurance am\nt     
applicable to su* b5efici>y z x 0       
orig9ally comput$1 su* high] prim>y     
insurance am\nt %all cont9ue to apply to
 su* b5efici>y4  4  7c7 ,basic ,,aime & 
surplus ,,aime  7#a7 ,basic ,,aime      
,section #bae7;b77#a7 ( su* ,act 7#db   
,u4,s4,c4 #dae7;b77#a77 is am5d$-- 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 /rik+ ,an individual's & ins]t+ 7,a7 
,an individual's2 &  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$-- 7,a7 9         
subp>agraph 7,a7-- 7i7 by /rik+         
subp>agraph 7,b7 & ins]t+ subp>agraph   
7,c72 &  7ii7 by ins]t+ & det]m9ation ( 
basic av]age index$ mon?ly income "u    
p>agraph 7#a77;,a7 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 = 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  7d7 ,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] #bjcj4  #d4 ,computation (     
co/-(-liv+ increases = ,social ,security
 b5efits2 consum] price index = eld]ly  
consum]s  7a7 ,computation ( co/-(-,liv+
 increases  7#a7 ,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 ! ,consum] ,price ,index = ,eld]ly   
,consum]s & su* prim>y insurance am\nt  

%all be adju/$ "u ?is subsection us+ su*
 ,index2 &  7,b7 9 p>agraph 7#d7-- 7i7  
by /rik+ & by section #ijja & ins]t+ 1  
by section #ijja2 &  7ii7 by /rik+      
#aihf1 & ins]t+ #aihf1 & by section     
#e7;a7 ( ! ,safegu>d+ ,am]ican ,families
 & ,exp&+ ,social ,security ,act (      
#bjbe14  7#b7 ,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 !        
,consum] ,price ,index = ,eld]ly        
,consum]s & su* prim>y insurance am\nt  
%all be adju/$ "u ?is subsection us+ su*
 ,index4  7#c7 ,effective date ,!       

am5dm5ts made by ?is subsection %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 #bjbf4  7b7 ,consum]     
price index = eld]ly consum]s  7#a7 ,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 b5efit4    
7#b7 ,effective date ,p>agraph 7#a7 %all
 apply ) respect to cal5d> mon?s end+ on
 or aft] ,june #cj ( ! cal5d> ye> 9 :i* 
?is ,act is enact$4  7#c7 ,au?orization 

( appropriations ,!re are au?oriz$ to be
 appropriat$ su* sums z are necess>y to 
c>ry out ! provisions ( ?is subsection4