U.S. Congress - Text of H.R.1090 as Introduced in House Social Security Guarantee Plus Act of 2007
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Donate NowH.R.1090 - Social Security Guarantee Plus Act of 2007
To amend the Social Security Act and the Internal Revenue Code of 1986 to preserve and strengthen the Social Security Program through the creation of personal Social Security guarantee accounts ensuring full benefits for all workers and their families, restoring long-term Social Security solvency, to make certain benefit improvements, and for other purposes.
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HR 1090 IHCommentsClose CommentsPermalink
To amend the Social Security Act and the Internal Revenue Code of 1986 to preserve and strengthen the Social Security Program through the creation of personal Social Security guarantee accounts ensuring full benefits for all workers and their families, restoring long-term Social Security solvency, to make certain benefit improvements, and for other purposes.CommentsClose CommentsPermalink
February 15, 2007
Mr. LEWIS of Kentucky introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on the Budget and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink
To amend the Social Security Act and the Internal Revenue Code of 1986 to preserve and strengthen the Social Security Program through the creation of personal Social Security guarantee accounts ensuring full benefits for all workers and their families, restoring long-term Social Security solvency, to make certain benefit improvements, and for other purposes.CommentsClose CommentsPermalink
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Social Security Guarantee Plus Act of 2007'.CommentsClose CommentsPermalink
(b) Table of Contents- The table of contents is as follows:CommentsClose CommentsPermalink
Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink
Sec. 2. Findings and statement of purpose.CommentsClose CommentsPermalink
TITLE I--SOCIAL SECURITY GUARANTEE PROGRAM
Sec. 101. Social Security guarantee refundable credit.CommentsClose CommentsPermalink
Sec. 102. Establishment of the Social Security Guarantee Program.CommentsClose CommentsPermalink
`Part A--Insurance Benefits
`Part B--Social Security Guarantee Program
Sec. 103. Benefit increases.CommentsClose CommentsPermalink
Sec. 104. Tax treatment.CommentsClose CommentsPermalink
Sec. 105. Annual account statements.CommentsClose CommentsPermalink
Sec. 106. Protection of social security surpluses.CommentsClose CommentsPermalink
TITLE II--BENEFIT UPDATES
Sec. 201. Elimination of the Social Security earnings test for individuals who have attained age 62.CommentsClose CommentsPermalink
Sec. 202. Increase in widow's and widower's insurance benefits.CommentsClose CommentsPermalink
Sec. 203. Benefits for disabled widows and widowers without regard to age.CommentsClose CommentsPermalink
Sec. 204. Repeal of 7-YEAR restriction on eligibility for widow's and widower's insurance benefits based on disability.CommentsClose CommentsPermalink
Sec. 205. Exemption from two-year waiting period for divorced spouse's benefits upon other spouse's remarriage.CommentsClose CommentsPermalink
Sec. 206. Increase in amount of wages and self-employment income credited to years taken into account in determining average indexed monthly earnings for beneficiaries precluded from remunerative work by need to provide child care.CommentsClose CommentsPermalink
Sec. 207. Government pension offset reduced from two-thirds to one-third of the Government pension.CommentsClose CommentsPermalink
SEC. 2. FINDINGS AND STATEMENT OF PURPOSE.
(a) Findings- The Congress finds as follows:CommentsClose CommentsPermalink
(1) The Social Security program provides essential income security for about 48 million Americans of all ages through its retirement, disability, and survivor benefits.CommentsClose CommentsPermalink
(2) Social Security's benefit structure is designed to help lower-wage workers, and its family benefits are of particular importance to women.CommentsClose CommentsPermalink
(3) The Board of Trustees of the Social Security trust funds project that, because people are living longer, families are having fewer children, and the baby boom generation is approaching retirement, the Social Security program's benefit costs will exceed its tax revenues beginning in 2017. By 2040, the Social Security trust funds will be depleted and the program will be able to honor only 74 percent of benefit commitments, and even less thereafter.CommentsClose CommentsPermalink
(4) Each payday, American workers send their hard-earned payroll taxes to Social Security and in return are promised protection for themselves and their families upon retirement, disability, or death. That commitment must be kept.CommentsClose CommentsPermalink
(5) Reducing benefits will result in more seniors and individuals with disabilities living in poverty.CommentsClose CommentsPermalink
(6) Workers who are more in need of early retirement, such as police officers, firefighters, and manual laborers, would be especially harmed by increases in the age of eligibility for Social Security benefits.CommentsClose CommentsPermalink
(7) Inasmuch as payroll taxes already constitute the single largest tax burden for most American families, further tax increases would contribute to erosion in public support for Social Security and would not result in sustainable financing for the long term.CommentsClose CommentsPermalink
(8) Allowing the Federal Government to invest workers' payroll taxes in private financial assets risks political interference in investment decisions and may reduce economic efficiency.CommentsClose CommentsPermalink
(9) Workers' ability to save and invest for their own economic security in retirement will continue to be particularly important, especially for younger workers.CommentsClose CommentsPermalink
(10) The creation of Social Security guarantee accounts as provided for in this Act is a critical goal in light of Social Security's financial challenges, the options available to address these challenges, and the Nation's interest in preserving and strengthening Social Security for the next 75 years and beyond.CommentsClose CommentsPermalink
(b) Statement of Purpose- The purpose of this Act is to preserve and strengthen the Social Security program through the creation of Social Security guarantee accounts that will--CommentsClose CommentsPermalink
(1) ensure the payment of Social Security benefits promised under current law, or greater benefits, to all eligible workers and their families;CommentsClose CommentsPermalink
(2) provide for the long-run sustainability of the Social Security program; andCommentsClose CommentsPermalink
(3) provide personal account assets to be used exclusively for the financial security of the account holder and his or her family that this and future Congresses cannot redirect for any other purpose.CommentsClose CommentsPermalink
TITLE I--SOCIAL SECURITY GUARANTEE PROGRAM
SEC. 101. SOCIAL SECURITY GUARANTEE REFUNDABLE CREDIT.
(a) In General- Chapter 25 of the Internal Revenue Code of 1986 (relating to general provisions relating to employment taxes) is amended by adding at the end the following new section:CommentsClose CommentsPermalink
`SEC. 3511. SOCIAL SECURITY GUARANTEE REFUNDABLE CREDIT.
`(a) In General- The Social Security guarantee account established under section 253 of the Social Security Act for each individual who has filed an election under section 253(b) of such Act shall receive for each calendar year following such election, during which such individual has earned wages or to which self-employment income of such individual is credited, a payment equal to the credit amount determined under subsection (b) for the individual for such calendar year.CommentsClose CommentsPermalink
`(b) Credit Amount-CommentsClose CommentsPermalink
`(1) IN GENERAL- For purposes of subsection (a), the credit amount determined under this subsection for an individual for a calendar year is an amount equal to the lesser of--CommentsClose CommentsPermalink
`(A) 4 percent of the sum of--CommentsClose CommentsPermalink
`(i) wages (as defined in section 3121(a)) received by such individual during such year on which tax is imposed by section 3101, andCommentsClose CommentsPermalink
`(ii) self-employment income (as defined in 1402(b)) of such individual for the taxable year of such individual ending in such calendar year on which tax is imposed by section 1401, orCommentsClose CommentsPermalink
`(B) $1,000 (in the case of the calendar year ending after the date of the enactment of the Social Security Guarantee Plus Act of 2007) and the amount determined under paragraph (2) for the calendar year (in the case of subsequent calendar years).CommentsClose CommentsPermalink
`(2) WAGE-BASED ADJUSTMENTS- The Secretary shall, on or before November 1 of the first calendar year ending after the date of the enactment of the Social Security Guarantee Plus Act of 2007 and of every calendar year thereafter, determine and publish in the Federal Register the dollar amount under paragraph (1)(B) for the succeeding calendar year. Such amount shall be the larger of--CommentsClose CommentsPermalink
`(A) the amount in effect in the calendar year in which the determination under this paragraph is made, orCommentsClose CommentsPermalink
`(B) the product of $1,000 and the ratio of the national average wage index (as defined in section 209(k)(1) of the Social Security Act) for the calendar year before the year in which the determination under this paragraph is made to the national average wage index (as so defined) for the first of the 2 calendar years preceding the calendar year ending after the date of the enactment of the Social Security Guarantee Plus Act of 2007,CommentsClose CommentsPermalink
with such product, if not a multiple of $10, being rounded to the next higher multiple of $10 where such amount is a multiple of $5 but not of $10 and to the nearest multiple of $10 in any other case.CommentsClose CommentsPermalink
`(c) Special Rules-CommentsClose CommentsPermalink
`(1) AGREEMENTS BY AMERICAN EMPLOYERS OF FOREIGN AFFILIATES- Any amounts paid pursuant to an agreement under section 3121(l) (relating to agreements entered into by American employers with respect to foreign affiliates) which are equivalent to the taxes referred to in subsection (b)(1)(A) shall be treated as taxes referred to in such subsection.CommentsClose CommentsPermalink
`(2) COORDINATION WITH SPECIAL REFUND OF SOCIAL SECURITY TAXES- For purposes of subsection (b)(1)(A), tax imposed by section 3101 shall not include any taxes to the extent the individual is entitled to a special refund of such taxes under section 6413(c).CommentsClose CommentsPermalink
`(d) Payment- Notwithstanding any other provision of this title, the payment under subsection (a) shall be paid only as provided in section 253 of the Social Security Act.'.CommentsClose CommentsPermalink
(b) Conforming Amendment- The table of sections for chapter 25 of such Code is amended by adding at the end the following new item:CommentsClose CommentsPermalink
`Sec. 3511. Social Security guarantee refundable credit.'.CommentsClose CommentsPermalink
(c) Effective Date- The amendments made by this section shall apply to remuneration received, and net earnings for self-employment for services performed, in calendar years ending after the date of the enactment of this Act.CommentsClose CommentsPermalink
SEC. 102. ESTABLISHMENT OF THE SOCIAL SECURITY GUARANTEE PROGRAM.
(a) In General- Title II of the Social Security Act is amended--CommentsClose CommentsPermalink
(1) by inserting before section 201 the following:CommentsClose CommentsPermalink
`Part A--Insurance Benefits';
andCommentsClose CommentsPermalink
(2) by adding at the end of such title the following new part:CommentsClose CommentsPermalink
`Part B--Social Security Guarantee Program
`DEFINITIONS
`Sec. 251. For purposes of this part--CommentsClose CommentsPermalink
`(1) COVERED INDIVIDUAL- The term `covered individual' means an individual who has filed an election under section 253(b).CommentsClose CommentsPermalink
`(2) ACCOUNT ASSETS- The term `account assets' means, with respect to a Social Security guarantee account, the total amount transferred to such account, increased by earnings credited under this part and reduced by losses and administrative expenses under this part.CommentsClose CommentsPermalink
`(3) CERTIFIED ACCOUNT MANAGER- The term `certified account manager' means a person who is certified under section 257(b).CommentsClose CommentsPermalink
`(4) BOARD- The term `Board' means the Social Security Guarantee Board established under section 257(a).CommentsClose CommentsPermalink
`(5) COMMISSIONER- The term `Commissioner' means the Commissioner of Social Security.CommentsClose CommentsPermalink
`(6) PROGRAM- The term `Program' means the Social Security Guarantee Program established under this part.CommentsClose CommentsPermalink
`(7) COVERED MONTHLY INSURANCE BENEFIT- The term `covered monthly insurance benefit' means a monthly insurance benefit under section 202 or 223, other than a child's insurance benefit under section 202(d) of a child who has not attained age 18 (or who is a full-time elementary or secondary school student (as defined in section 202(d)(7)(A)) and has not attained age 19).CommentsClose CommentsPermalink
`ESTABLISHMENT OF PROGRAM
`Sec. 252. There is hereby established a Social Security Guarantee Program. The Program shall be governed by regulations which shall be prescribed by the Social Security Guarantee Board. The Board, the Executive Director appointed by the Board, the Commissioner, and the Secretary of the Treasury shall consult with each other in issuing regulations relating to their respective duties under this part. Such regulations shall provide for appropriate exchange of information to assist them in performing their duties under this part.CommentsClose CommentsPermalink
`SOCIAL SECURITY GUARANTEE ACCOUNTS
`Sec. 253. (a) Establishment of Accounts- Under regulations which shall be prescribed by the Board in consultation with the Secretary of the Treasury--CommentsClose CommentsPermalink
`(1) the Board shall establish a Social Security guarantee account for each covered individual (for whom a Social Security guarantee account has not otherwise been established under this part) upon initial receipt of a transfer under subsection (c) with respect to such covered individual, andCommentsClose CommentsPermalink
`(2) in any case described in paragraph (2) of section 256(d), the Board shall establish a Social Security guarantee account for the divorced spouse referred to in such paragraph (2).CommentsClose CommentsPermalink
`(b) Election of Status as Covered Individual-CommentsClose CommentsPermalink
`(1) IN GENERAL- Any individual who has attained age 18 and has been assigned a social security account number under section 205(c) may elect to be a covered individual under this part upon filing an election under this subsection in a form and manner which shall be prescribed in regulations of the Commissioner of Social Security, in consultation with the Board. Such regulations shall provide for the filing of such elections during regularly scheduled intervals. Such an election shall be irrevocable and shall be effective with respect to wages earned, and self-employment income derived, on or after January 1 following the date of such filing.CommentsClose CommentsPermalink
`(2) REQUIREMENTS- An election by an individual under this subsection is an election, filed with the Commissioner, in such form and manner as shall be prescribed in regulations of the Commissioner, consisting of a written and signed declaration of such individual's intention to become a covered individual under this part. The Commissioner shall provide for immediate notification to the Board and the Executive Director of such election.CommentsClose CommentsPermalink
`(c) Transfers of Social Security Guarantee Refundable Credits-CommentsClose CommentsPermalink
`(1) IN GENERAL- Under regulations which shall be prescribed by the Secretary of the Treasury in consultation with the Board, as soon as practicable during the 1-year period after each calendar year, while minimizing capital market distortions, the Secretary of the Treasury shall transfer to each covered individual's Social Security guarantee account, from amounts otherwise available in the general fund of the Treasury, an amount equal to the sum of--CommentsClose CommentsPermalink
`(A) the amount payable to the covered individual's Social Security guarantee account under section 3511 of the Internal Revenue Code of 1986 (relating to the Social Security guarantee refundable credit) with respect to wages received during such calendar year by the covered individual and self-employment income derived by the covered individual during such individual's taxable year ending in such calendar year, andCommentsClose CommentsPermalink
`(B) deemed interest on the amount determined under subparagraph (A) for the period commencing with July 1 of such calendar year and ending with the date of the transfer, computed at a rate equal to the average market yield (computed by the Managing Trustee on the basis of market quotations as of the end of the calendar month next preceding the date of the transfer) on all marketable interest-bearing obligations of the United States then forming a part of the public debt which are not due or callable earlier than 4 years after the end of such calendar month (rounding any average market yield computed under this paragraph which is not a multiple of 1/8 of 1 percent to the nearest multiple of 1/8 of 1 percent).CommentsClose CommentsPermalink
`(2) TRANSITION RULE- Notwithstanding paragraph (1), amounts payable to Social Security guarantee accounts under paragraph (1) with respect to the first calendar year described in paragraph (1)(A) ending after the date of the enactment of the Social Security Guarantee Plus Act of 2007 shall be paid by the Secretary of the Treasury as soon as practicable after such Secretary determines that the administrative mechanisms necessary to provide for accurate and efficient payment of such amounts have been established.CommentsClose CommentsPermalink
`(3) AVAILABILITY OF TRUST FUNDS FOR TRANSFERS-CommentsClose CommentsPermalink
`(A) RECOMMENDATIONS BY MANAGING TRUSTEE- As determined appropriate from time to time by the Managing Trustee of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, the Managing Trustee shall transmit to each House of the Congress the Managing Trustee's recommendation that amounts to be transferred to Social Security guarantee accounts under paragraph (1) be transferred from such Trust Funds in lieu of the general fund. Any such recommendation shall take effect only upon ratification thereof by an Act of Congress.CommentsClose CommentsPermalink
`(B) DETERMINATIONS OF AVAILABILITY- The Managing Trustee may not determine that any such transfer from the Trust Funds is appropriate at any time unless the Managing Trustee has determined that amounts in such Trust Fund are available at such time for such transfers. For purposes of this subparagraph, amounts in either of the Trust Funds shall be considered to be available for such transfers at any time only to the extent that the balance in such Trust Fund at such time exceeds the best estimate of the Managing Trustee of the projected withdrawals otherwise required from such Trust Fund during the next following 1-year period.CommentsClose CommentsPermalink
`(C) ASSUMPTIONS- In making recommendations under this paragraph, the Managing Trustee shall utilize the intermediate actuarial assumptions utilized by the Board of Trustees of the Trust Funds for its most recent annual report issued under section 201(c).CommentsClose CommentsPermalink
`(D) REPORT ON USE OF SOCIAL SECURITY SURPLUSES- The Managing Trustee shall annually prepare a report consisting of--CommentsClose CommentsPermalink
`(i) the Managing Trustee's determination of the extent to which amounts have been appropriated from the Trust Funds under this paragraph in connection with Social Security guarantee refundable credits under section 3511 of such Code, andCommentsClose CommentsPermalink
`(ii) the Managing Trustee's recommendations, based on the Managing Trustee's review of the financial status of such Trust Funds, with respect to whether or to what extent that portion of the taxes under chapters 2 and 21 of the Internal Revenue Code of 1986 to which surpluses in the Trust Funds may be attributed should be reduced or should be maintained so as to allow for continued appropriations from the Trust Funds under this paragraph in connection with such credits.CommentsClose CommentsPermalink
The Board of Trustees of the Trust Funds shall include such report in the Board's annual report to the President and the Congress under section 201(c)(2).CommentsClose CommentsPermalink
`(d) Requirements for Accounts- The following requirements shall be met with respect to each Social Security guarantee account:CommentsClose CommentsPermalink
`(1) Amounts transferred to the account consist solely of amounts transferred pursuant to this part.CommentsClose CommentsPermalink
`(2) In accordance with section 254, the account assets are held for purposes of investment under the Program by a certified account manager designated by (or on behalf of) the covered individual for whom such account is established under the Program.CommentsClose CommentsPermalink
`(3) Disposition of the account assets is made solely in accordance with section 256.CommentsClose CommentsPermalink
`(e) Accounting of Receipts and Disbursements Under the Program- The Board shall provide by regulation for an accounting system for purposes of this part--CommentsClose CommentsPermalink
`(1) which shall be maintained by or under the Executive Director,CommentsClose CommentsPermalink
`(2) which shall provide for crediting of earnings from, and debiting of losses and administrative expenses from, amounts held in Social Security guarantee accounts, andCommentsClose CommentsPermalink
`(3) under which receipts and disbursements under the Program which are attributable to each account are separately accounted for with respect to such account.CommentsClose CommentsPermalink
`(f) Correction of Erroneous Transfers- The Board, in consultation with the Commissioner, shall provide by regulation rules similar to paragraphs (4) through (7) and (9) of section 205(c) and section 205(g) with respect to the correction of erroneous or omitted transfers of amounts to Social Security guarantee accounts.CommentsClose CommentsPermalink
`INVESTMENT OF ACCOUNTS
`Sec. 254. (a) Designation of Certified Account Managers- Under the Program, a certified account manager shall be designated by or on behalf of each covered individual to hold for investment under this section such individual's Social Security guarantee account assets.CommentsClose CommentsPermalink
`(b) Procedure for Designation- Any designation made under subsection (a) shall be made in such form and manner as shall be prescribed in regulations prescribed by the Board, following the initiation of an educational campaign as provided in section 257(a)(3)(C). Such regulations shall provide for annual selection periods during which covered individuals may make designations pursuant to subsection (a). Designations made pursuant to subsection (a) during any such period shall be irrevocable for the one-year period following such period, except that such regulations shall provide for such interim designations as may be necessitated by the decertification of a certified account manager. Such regulations shall provide for such designations made by the Board on behalf of a covered individual in any case in which a timely designation is not made by the covered individual.CommentsClose CommentsPermalink
`(c) Investment Guidelines-CommentsClose CommentsPermalink
`(1) IN GENERAL- For purposes of investment of amounts held in each Social Security guarantee account, the Board shall provide by regulation for 3 investment options. Such options shall consist of the 60/40 investment option, the 65/35 investment option, and the 70/30 investment option.CommentsClose CommentsPermalink
`(2) ALTERNATIVE INVESTMENT OPTIONS-CommentsClose CommentsPermalink
`(A) THE 60/40 INVESTMENT OPTION- Under the 60/40 investment option, amounts are held in the Social Security guarantee account so as to ensure, to the maximum extent practicable, that, of the total balance credited to the account and available for investment (after allowing for administrative expenses)--CommentsClose CommentsPermalink
`(i) 60 percent is invested in common stock as provided in paragraph (4), andCommentsClose CommentsPermalink
`(ii) 40 percent is invested in fixed income securities as provided in paragraph (5).CommentsClose CommentsPermalink
For such purpose, certified account managers shall offer each account holder a choice of one or more portfolios of each such type of investment. Except as provided in an election under paragraph (3), amounts held in a Social Security guarantee account shall be invested under the 60/40 investment option.CommentsClose CommentsPermalink
`(B) THE 65/35 INVESTMENT OPTION- Under the 65/35 investment option, amounts are held in the Social Security guarantee account so as to ensure, to the maximum extent practicable, that, of the total balance credited to the account and available for investment (after allowing for administrative expenses)--CommentsClose CommentsPermalink
`(i) 65 percent is invested in common stock as provided in paragraph (4), andCommentsClose CommentsPermalink
`(ii) 35 percent is invested in fixed income securities as provided in paragraph (5).CommentsClose CommentsPermalink
For such purpose, certified account managers shall offer each account holder a choice of one or more portfolios of each such type of investment.CommentsClose CommentsPermalink
`(C) THE 70/30 INVESTMENT OPTION- Under the 70/30 investment option, amounts are held in the Social Security guarantee account so as to ensure, to the maximum extent practicable, that, of the total balance credited to the account and available for investment (after allowing for administrative expenses)--CommentsClose CommentsPermalink
`(i) 70 percent is invested in common stock as provided in paragraph (4), andCommentsClose CommentsPermalink
`(ii) 30 percent is invested in fixed income securities as provided in paragraph (5).CommentsClose CommentsPermalink
For such purpose, certified account managers shall offer each account holder a choice of one or more portfolios of each such type of investment.CommentsClose CommentsPermalink
`(3) ELECTIONS AMONG INVESTMENT OPTIONS- Pursuant to any individual's written election filed in accordance with regulations of the Board during annual open seasons specified in such regulations, the certified account manager of the individual's Social Security guarantee account shall, in accordance with such regulations, provide for disinvestment and reinvestment of amounts held in the account under any of the investment options described in paragraph (2) so as to provide for investment of amounts held in the account in any of the other such investment options specified in such election.CommentsClose CommentsPermalink
`(4) COMMON STOCK INDEX REQUIREMENTS- The Board shall establish by regulation standards which must be met by any portfolio of common stock selected for investment of account assets as provided in subparagraph (A)(i), (B)(i), or (C)(i) of paragraph (2), consistent with the requirement that such portfolio replicate the performance of one or more common stock indices comprised of common stock the aggregate market value of which is, in each case, a reasonably broad representation of publicly held companies whose shares are traded on the equity markets.CommentsClose CommentsPermalink
`(5) FIXED INCOME SECURITIES REQUIREMENTS- The Board shall establish by regulation standards which must be met by fixed income securities selected for investment of account assets as provided in subparagraph (A)(ii), (B)(ii), or (C)(ii) of paragraph (2). Amounts invested in fixed income securities by a certified account manager under the Program shall be held in a portfolio which shall consist of a diverse range of high-grade corporate bonds.CommentsClose CommentsPermalink
`(d) Diversification Standards- The Board shall specify by regulation standards governing investments under this section to ensure prudent diversification among the investments under the Program.CommentsClose CommentsPermalink
`DETERMINATION OF MONTHLY ANNUITY AMOUNTS AND USE IN DETERMINING ACCOUNT DISTRIBUTION SUPPLEMENTS
`Sec. 255. (a) Monthly Annuity Amounts-CommentsClose CommentsPermalink
`(1) IN GENERAL- In accordance with regulations of the Board meeting the requirements of this section, the Commissioner shall determine a monthly annuity amount in connection with such covered individual's Social Security guarantee account, for each month--CommentsClose CommentsPermalink
`(A) which commences after such individual becomes a covered individual,CommentsClose CommentsPermalink
`(B) for which such individual is entitled to a covered monthly insurance benefit under part A, andCommentsClose CommentsPermalink
`(C) which ends prior to or with--CommentsClose CommentsPermalink
`(i) the date of the covered individual's death, orCommentsClose CommentsPermalink
`(ii) if later, the date of the death of the covered individual's spouse (if any), except as provided in regulations prescribed by the Board pursuant to paragraph (5).CommentsClose CommentsPermalink
`(2) AMOUNT- The monthly annuity amount shall be equal to the amount which would be the initial monthly payment under--CommentsClose CommentsPermalink
`(A) if the covered individual is not married on such date, an immediate single life annuity for the covered individual, orCommentsClose CommentsPermalink
`(B) if the covered individual is married on such date, an immediate annuity for the joint lives of the covered individual and the covered individual's spouse, together with a survivor annuity to the one of them who survives the other of them for the life of the survivor payable in monthly installments equal to 66 2/3 percent of the monthly payment of the annuity that would be payable if both spouses remained alive,CommentsClose CommentsPermalink
purchased with the balance of the account (determined after payment of the initial lump sum payment under section 256(c)).CommentsClose CommentsPermalink
`(3) ASSUMPTIONS- The assumptions under this subsection include the probability of survival for persons born in the same year as the covered individual (and the spouse, in the case of a joint annuity), future projection of investment earnings based on investment of the account assets in the 65/35 investment option under section 254(c)(2)(B), and expected price inflation. Determinations under this subsection shall be made in accordance with regulations which shall be prescribed by the Board, otherwise using generally accepted actuarial assumptions, except that no differentiation shall be made in such assumptions on the basis of sex, race, health status, or other characteristics other than age.CommentsClose CommentsPermalink
`(4) ADJUSTMENTS BASED ON ADDITIONAL SOCIAL SECURITY GUARANTEE REFUNDABLE CREDITS- The Board shall annually augment the monthly annuity amount in connection with each Social Security guarantee account by an additional monthly annuity amount, determined under this subsection on the basis of any additional transfer to the account of a Social Security guarantee refundable credit for the year (plus deemed interest) under section 253(c), after subtracting the amount of the annual lump sum payment made from such account under section 256(c)(2).CommentsClose CommentsPermalink
`(5) TREATMENT OF CHANGES IN MARITAL STATUS AND BENEFIT ELIGIBILITY AFTER COMMENCEMENT OF ENTITLEMENT TO BENEFITS- The Board shall provide by regulation for recalculation or adjustment of the monthly annuity amount determined under this subsection in connection with any covered individual's Social Security guarantee account so as to appropriately take into account any entry into marriage or divorce or changes in eligibility for benefits.CommentsClose CommentsPermalink
`(b) Amount of Account Distribution Supplement- The Board shall determine for each month the amount of the monthly account distribution supplement (if any) in connection with a covered individual's Social Security guarantee account and shall certify such amount to the Commissioner so as to allow inclusion of such supplement in each covered monthly insurance benefit payment pursuant to section 202(z) or 223(k). The amount of the supplement for each benefit shall be the excess (if any) of--CommentsClose CommentsPermalink
`(1) the sum of--CommentsClose CommentsPermalink
`(A) the monthly annuity amount in connection with such account, plusCommentsClose CommentsPermalink
`(B) in the case of a covered individual surviving a deceased spouse, a monthly amount which would be the monthly equivalent of the survivor annuity described in subsection (a)(2)(B) in connection with the Social Security guarantee account of the deceased spouse, overCommentsClose CommentsPermalink
`(2) the amount of the benefit (as determined before applying sections 202(z) and 223(k) and before applying any reduction or deduction applicable under part A).CommentsClose CommentsPermalink
`DISPOSITION OF ACCOUNT ASSETS
`Sec. 256. (a) In General- Account assets with respect to covered individuals shall be distributed solely as provided in this section.CommentsClose CommentsPermalink
`(b) Account Manager Transfers to the Trust Funds-CommentsClose CommentsPermalink
`(1) IN GENERAL- In accordance with a schedule which shall be prescribed in regulations of the Board, each certified account manager holding account assets shall make account manager transfers to the Secretary of the Treasury. Such Secretary shall immediately credit each such transfer to the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, according to an appropriate distribution formula which shall be prescribed in regulations of the Executive Director. The Executive Director shall provide to the certified account manager timely information necessary to carry out such account manager's duties under this section.CommentsClose CommentsPermalink
`(2) DETERMINATION OF AMOUNT OF ACCOUNT MANAGER TRANSFER- The amount of each account manager transfer due from a certified account manager for any period shall be an amount equal to the sum of--CommentsClose CommentsPermalink
`(A) the aggregate monthly annuity amount or amounts determined under paragraph (3) for the month or months ending during such period in connection with the Social Security guarantee accounts under the management of the certified account manager under the Program, andCommentsClose CommentsPermalink
`(B) the aggregate monthly account remittance for such period described in paragraph (4) in connection with such accounts.CommentsClose CommentsPermalink
`(3) AGGREGATE MONTHLY ANNUITY AMOUNT- The aggregate monthly annuity amount for any month in connection with the Social Security guarantee accounts under the management of any certified account manager under the Program is equal to the sum of all monthly annuity amounts in connection with such accounts, determined under section 255.CommentsClose CommentsPermalink
`(4) AGGREGATE MONTHLY ACCOUNT REMITTANCE- The aggregate monthly account remittance for any month in connection with the Social Security guarantee accounts under the management of any certified account manager under the Program is equal to the sum of all the amounts required to be transferred during such month from the certified account manager to the Secretary of the Treasury for crediting to the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund under subsection (e)(2) in connection with the deaths of covered individuals for whom such accounts were established under this part.CommentsClose CommentsPermalink
`(5) WITHDRAWALS FROM ACCOUNT BALANCES FOR PURPOSES OF ACCOUNT MANAGER TRANSFERS- In advance of each account manager transfer required under this subsection to be made by a certified account manager managing one or more Social Security guarantee accounts under the Program, the Commissioner shall certify to the Executive Director and to such certified account manager the monthly annuity amount in connection with each such account for each month during the period for which such transfer is to be made. At the time of such transfer, the certified account manager may withdraw from the assets of each such account the monthly annuity amount in connection with such account taken into account in determining each of the aggregate monthly annuity amounts included in the amount of the account manager transfer. Such withdrawn assets shall be available to the certified account manager solely for purposes of making such account manager transfer.CommentsClose CommentsPermalink
`(c) Lump Sum Payments- Upon initial entitlement of a covered individual to covered monthly insurance benefits under part A, such individual shall be entitled to--CommentsClose CommentsPermalink
`(1) an initial lump sum payment, from such individual's Social Security guarantee account, equal to 5 percent of the balance in such account, andCommentsClose CommentsPermalink
`(2) a lump sum payment in connection with each subsequent transfer to such account (pursuant to section 253(c)) of such individual's social security guarantee refundable credits for years beginning after commencement of such initial entitlement, payable as soon as practicable after the transfer, equal to 5 percent of the transferred amount (including deemed interest).CommentsClose CommentsPermalink
The Executive Director shall certify to the certified account manager managing such account the amount of each lump sum payment, and upon receipt of such certification, the certified account manager shall transfer such certified amount to the Secretary of the Treasury for subsequent transfer to the covered individual. Such certification shall also include such information as may be necessary to make each lump sum payment in a timely manner.CommentsClose CommentsPermalink
`(d) Splitting of Account Assets Upon Divorce After 1 Year of Marriage- Upon the divorce of a covered individual for whom a Social Security guarantee account has been established under this part, from a spouse to whom the covered individual had been married for at least 1 year--CommentsClose CommentsPermalink
`(1) if a Social Security guarantee account has been established under this part for the divorced spouse of the covered individual, the Board shall direct the appropriate certified account manager to transfer--CommentsClose CommentsPermalink
`(A) from the Social Security guarantee account with the greater amount of accruals (including earnings) during the time of the marriage,CommentsClose CommentsPermalink
`(B) to the other such account,CommentsClose CommentsPermalink
an amount equal to one-half of the difference between the amounts of such accruals in such accounts, orCommentsClose CommentsPermalink
`(2) if a Social Security guarantee account has not been established for the divorced spouse, the Board shall establish a Social Security guarantee account for the divorced spouse, and shall direct the appropriate certified account manager to transfer--CommentsClose CommentsPermalink
`(A) from the Social Security guarantee account of the covered individual,CommentsClose CommentsPermalink
`(B) to the Social Security guarantee account of the divorced spouse,CommentsClose CommentsPermalink
an amount equal to one-half of the amount of accruals (including earnings) during the time of the marriage in the Social Security guarantee account of the covered individual.CommentsClose CommentsPermalink
In the case of any transfer directed under this subsection, the Executive Director shall certify to the appropriate certified account manager the information necessary to make such transfer.CommentsClose CommentsPermalink
`(e) Closing of Account Upon the Death of the Covered Individual-CommentsClose CommentsPermalink
`(1) TRANSFERS UPON DEATH BEFORE ENTITLEMENT- Upon the death of a covered individual before the individual has become entitled to covered monthly insurance benefits, the Executive Director shall close out the covered individual's Social Security guarantee account. In closing out the account, the Executive Director shall certify to the certified account manager the amount of the account assets, and, upon receipt of such certification, such certified account manager shall transfer from such account an amount equal to such certified amount to the Secretary of the Treasury for subsequent transfer to the estate of such covered individual.CommentsClose CommentsPermalink
`(2) TRANSFERS UPON DEATH AFTER ENTITLEMENT-CommentsClose CommentsPermalink
`(A) IN GENERAL- In any case in which the covered individual dies after the individual has become entitled to covered monthly insurance benefits, the Executive Director shall, except as provided in subparagraph (B), close out the covered individual's Social Security guarantee account upon such covered individual's death.CommentsClose CommentsPermalink
`(B) DELAYED CLOSING IN THE CASE OF SURVIVING SPOUSE- If the covered individual was married at the time of the covered individual's death, the Executive Director shall close out the covered individual's Social Security guarantee account with the close, upon the surviving spouse's death, of the period to which the survivor annuity portion of the monthly annuity amount in connection with such account is applicable under section 255(a). The Board shall from time to time propose to the Congress recommendations for legislative changes necessary to provide for closing of the account in a manner and time consistent with regulations prescribed pursuant to section 255(a)(5).CommentsClose CommentsPermalink
`(C) CERTIFICATION AND TRANSFER TO TRUST FUNDS- In closing out the account, the Executive Director shall certify to the certified account manager holding the covered individual's account assets the amount of the account assets, and such certified account manager shall transfer an amount equal to such certified amount to the Secretary of the Treasury for crediting to the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, as determined appropriate under regulations of the Board.CommentsClose CommentsPermalink
`(f) Closing of Account of Covered Individuals Who Are Ineligible for Benefits Upon Attaining Retirement Age- In any case in which, as of the date on which a covered individual attains retirement age (as defined in section 216(l)), such individual is not eligible for a covered monthly insurance benefit, the Commissioner shall so certify to the Executive Director and, upon receipt of such certification, the Executive Director shall close out the covered individual's Social Security guarantee account. In closing out the account, the Executive Director shall certify to the certified account manager the amount of the account assets, and upon receipt of such certification from the Executive Director, the account manager shall transfer from such account an amount equal to such certified amount to the Secretary of the Treasury for subsequent transfer to the covered individual.CommentsClose CommentsPermalink
`(g) Administrative Expenses-CommentsClose CommentsPermalink
`(1) IN GENERAL- Under regulations which shall be prescribed by the Board, account assets are available for payment of the reasonable administrative costs of the Program (including reasonable administration fees charged by certified account managers under the Program), but in no event to exceed 25 basis points per year of the assets under management.CommentsClose CommentsPermalink
`(2) TEMPORARY AUTHORIZATION OF APPROPRIATIONS FOR STARTUP ADMINISTRATIVE COSTS- For any such administrative costs that remain after applying paragraph (1) for each of the first five fiscal years that end after the date of the enactment of this part, there are authorized to be appropriated such sums as may be necessary for each of such fiscal years.CommentsClose CommentsPermalink
`ADMINISTRATION OF THE PROGRAM
`Sec. 257. (a) General Provisions-CommentsClose CommentsPermalink
`(1) ESTABLISHMENT AND DUTIES OF THE SOCIAL SECURITY GUARANTEE BOARD-CommentsClose CommentsPermalink
`(A) ESTABLISHMENT- There is established in the Social Security Administration a Social Security Guarantee Board.CommentsClose CommentsPermalink
`(B) MEMBERSHIP- The Board shall be composed of 6 members appointed by the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund. One member shall serve as Chairman, as designated by the Board of Trustees. Members of the Board shall have substantial experience, training, and expertise in the area of pension benefits, finance, investment, or insurance.CommentsClose CommentsPermalink
`(C) TERMS-CommentsClose CommentsPermalink
`(i) IN GENERAL- A member of the Board shall be appointed for a term of 9 years, subject only to removal by the Board of Trustees for cause, except that of the members first appointed--CommentsClose CommentsPermalink
`(I) two shall be appointed for a term of 3 years;CommentsClose CommentsPermalink
`(II) two shall be appointed for a term of 6 years; andCommentsClose CommentsPermalink
`(III) two shall be appointed for a term of 9 years.CommentsClose CommentsPermalink
`(ii) VACANCIES- A vacancy on the Board shall be filled in the manner in which the original appointment was made and shall be subject to any conditions which applied with respect to the original appointment. An individual chosen to fill a vacancy shall be appointed for the unexpired term of the member replaced. The term of any member shall not expire before the date on which the member's successor takes office.CommentsClose CommentsPermalink
`(D) POWERS AND DUTIES OF THE BOARD-CommentsClose CommentsPermalink
`(i) IN GENERAL- The Board shall have powers and duties solely as provided in this part. The Board shall prescribe by regulation the terms of the Social Security Guarantee Program established under this part, including policies for investment under the Program of account assets, and policies for the certification and decertification of account managers under the Program, which shall include consideration of the appropriateness of the marketing materials and plans of such person.CommentsClose CommentsPermalink
`(ii) BUDGETARY REQUIREMENTS- The Board shall prepare and submit to the President and to the appropriate committees of Congress an annual budget of the expenses and other items relating to the Board which shall be included as a separate item in the budget required to be transmitted to the Congress under
`(E) ADDITIONAL AUTHORITIES OF THE BOARD- The Board may--CommentsClose CommentsPermalink
`(i) adopt, alter, and use a seal;CommentsClose CommentsPermalink
`(ii) establish policies with which the Commissioner shall comply under this part; andCommentsClose CommentsPermalink
`(iii) appoint and remove the Executive Director, as provided in paragraph (2).CommentsClose CommentsPermalink
`(F) INDEPENDENCE OF CERTIFIED ACCOUNT MANAGERS- The policies of the Board may not require a certified account manager to invest or to cause to be invested any account assets in a specific asset or to dispose of or cause to be disposed of any specific asset so held.CommentsClose CommentsPermalink
`(G) MEETINGS OF THE BOARD- The Board shall meet at the call of the Chairman or upon the request of a quorum of the Board. The Board shall perform the functions and exercise the powers of the Board on a majority vote of a quorum of the Board. Four members of the Board shall constitute a quorum for the transaction of business.CommentsClose CommentsPermalink
`(H) COMPENSATION OF BOARD MEMBERS-CommentsClose CommentsPermalink
`(i) IN GENERAL- Each member of the Board who is not an officer or employee of the Federal Government shall be compensated at the daily rate of basic pay for level I of the Executive Schedule for each day during which such member is engaged in performing a function of the Board. Any member who is such an officer or employee shall not suffer any loss of pay or deduction from annual leave on the basis of any time used by such member in performing such a function.CommentsClose CommentsPermalink
`(ii) TRAVEL, PER DIEM, AND EXPENSES- A member of the Board shall be paid travel, per diem, and other necessary expenses under subchapter I of chapter 57 of title 5, United States Code, while traveling away from such member's home or regular place of business in the performance of the duties of the Board.CommentsClose CommentsPermalink
`(I) STANDARD FOR BOARD'S DISCHARGE OF RESPONSIBILITIES- The members of the Board shall discharge their responsibilities solely in the interest of covered individuals and the Program.CommentsClose CommentsPermalink
`(J) ANNUAL REPORT- The Board shall submit an annual report to the President, to each House of the Congress, and to the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund regarding the financial and operating condition of the Program.CommentsClose CommentsPermalink
`(K) PUBLIC ACCOUNTANT-CommentsClose CommentsPermalink
`(i) DEFINITION- For purposes of this subparagraph, the term `qualified public accountant' shall have the same meaning as provided in section 103(a)(3)(D) of the Employee Retirement Income Security Act of 1974 (
`(ii) ENGAGEMENT- The Executive Director, in consultation with the Board, shall annually engage, on behalf of all individuals for whom a Social Security guarantee account is established under this part, an independent qualified public accountant, who shall conduct an examination of all records maintained in the administration of this part that the public accountant considers necessary.CommentsClose CommentsPermalink
`(iii) DUTIES- The public accountant conducting an examination under clause (ii) shall determine whether the records referred to in such clause have been maintained in conformity with generally accepted accounting principles. The public accountant shall transmit to the Board a report on his examination.CommentsClose CommentsPermalink
`(iv) RELIANCE ON CERTIFIED ACTUARIAL MATTERS- In making a determination under clause (iii), a public accountant may rely on the correctness of any actuarial matter certified by an enrolled actuary if the public accountant states his reliance in the report transmitted to the Board under such clause.CommentsClose CommentsPermalink
`(2) EXECUTIVE DIRECTOR-CommentsClose CommentsPermalink
`(A) APPOINTMENT AND REMOVAL- The Board shall appoint, without regard to the provisions of law governing appointments in the competitive service, an Executive Director by action agreed to by a majority of the members of the Board. The Executive Director shall have substantial experience, training, and expertise in the management of financial investments and pension benefit plans. The Board may, with the concurrence of 4 members of the Board, remove the Executive Director from office for good cause shown.CommentsClose CommentsPermalink
`(B) POWERS AND DUTIES OF EXECUTIVE DIRECTOR- The Executive Director shall--CommentsClose CommentsPermalink
`(i) carry out the policies established by the Board,CommentsClose CommentsPermalink
`(ii) administer the provisions of this part in accordance with the policies of the Board,CommentsClose CommentsPermalink
`(iii) in consultation with the Board, prescribe such regulations (other than regulations relating to fiduciary responsibilities) as may be necessary for the administration of this part, andCommentsClose CommentsPermalink
`(iv) meet from time to time with the Board upon request of the Board.CommentsClose CommentsPermalink
`(C) ADMINISTRATIVE AUTHORITIES OF EXECUTIVE DIRECTOR- The Executive Director may--CommentsClose CommentsPermalink
`(i) appoint such personnel as may be necessary to carry out the provisions of this part,CommentsClose CommentsPermalink
`(ii) subject to approval by the Board, procure the services of experts and consultants under
`(iii) secure directly from any agency or instrumentality of the Federal Government any information which, in the judgment of the Executive Director, is necessary to carry out the provisions of this part and the policies of the Board, and which shall be provided by such agency or instrumentality upon the request of the Executive Director,CommentsClose CommentsPermalink
`(iv) pay the compensation, per diem, and travel expenses of individuals appointed under clauses (i), (ii), and (v) of this subparagraph, subject to such limits as may be established by the Board,CommentsClose CommentsPermalink
`(v) accept and use the services of individuals employed intermittently in the Government service and reimburse such individuals for travel expenses, as authorized by
`(vi) except as otherwise expressly prohibited by law or the policies of the Board, delegate any of the Executive Director's functions to such employees under the Board as the Executive Director may designate and authorize such successive redelegations of such functions to such employees under the Board as the Executive Director may consider to be necessary or appropriate.CommentsClose CommentsPermalink
`(3) ROLE OF THE COMMISSIONER OF SOCIAL SECURITY- The Commissioner shall--CommentsClose CommentsPermalink
`(A) prescribe such regulations (supplementary to and consistent with the regulations prescribed by the Board and the Executive Director) as may be necessary for carrying out the duties of the Commissioner under this part,CommentsClose CommentsPermalink
`(B) meet from time to time with, and provide information to, the Board upon request of the Board regarding matters relating to the Social Security Guarantee Program, andCommentsClose CommentsPermalink
`(C) in consultation with the Board and utilizing available Federal agencies and resources, develop a campaign to educate workers about the Program.CommentsClose CommentsPermalink
`(b) Certification and Oversight of Account Managers-CommentsClose CommentsPermalink
`(1) CERTIFICATION BY THE BOARD-CommentsClose CommentsPermalink
`(A) IN GENERAL- Any person that is a qualified professional asset manager (as defined in
`(B) NONDELEGATION REQUIREMENT- The authority of the Board to make any determination to deny any application under this subsection may not be delegated by the Board.CommentsClose CommentsPermalink
`(2) OVERSIGHT OF CERTIFIED ACCOUNT MANAGERS-CommentsClose CommentsPermalink
`(A) ROLE OF REGULATORY AGENCIES- The Board may enter into cooperative arrangements with Federal and State regulatory agencies identified by the Board as having jurisdiction over persons eligible for certification under this subsection so as to ensure that the provisions of this part are enforced with respect to certified account managers in a manner consistent with and supportive of the requirements of other provisions of Federal law applicable to them. Such Federal regulatory agencies shall cooperate with the Board to the extent that the Board determines that such cooperation is necessary and appropriate to ensure that the provisions of this part are effectively implemented.CommentsClose CommentsPermalink
`(B) ACCESS TO RECORDS- The Board may from time to time require any certified account manager to file such reports as the Board may specify by regulation as necessary for the administration of this part. In prescribing such regulations, the Board shall minimize the regulatory burden imposed upon certified account managers while taking into account the benefit of the information to the Board in carrying out its functions under this part.CommentsClose CommentsPermalink
`(3) REVOCATION OF CERTIFICATION- The Board shall provide, in the contractual arrangements entered into under this subsection with each certified account manager, for revocation of such person's status as a certified account manager upon determination by the Board of such person's failure to comply with the requirements of such contractual arrangements. Such arrangements shall include provision for notice and opportunity for review of any such revocation.CommentsClose CommentsPermalink
`(c) Fiduciary Responsibilities-CommentsClose CommentsPermalink
`(1) IN GENERAL- Rules similar to the provisions of
`(2) EXCULPATORY PROVISIONS VOIDED- Any provision in an agreement or instrument which purports to relieve a fiduciary from responsibility or liability for any responsibility, obligation, or duty under this part shall be void.CommentsClose CommentsPermalink
`(d) Civil Actions by Board- If any person fails to meet any requirement of this part or of any contract entered into under this part, the Board may bring a civil action in any district court of the United States within the jurisdiction of which such person's assets are located or in which such person resides or is found, without regard to the amount in controversy, for appropriate relief to redress the violation or enforce the provisions of this part, and process in such an action may be served in any district.CommentsClose CommentsPermalink
`(e) Preemption of Inconsistent State Law- A provision of this part shall not be construed to preempt any provision of the law of any State or political subdivision thereof, or prevent a State or political subdivision thereof from enacting any provision of law with respect to the subject matter of this part, except to the extent that such provision of State law is inconsistent with this part, and then only to the extent of the inconsistency.'.CommentsClose CommentsPermalink
(b) Conforming Amendments- (1) Section 701(b) of the Social Security Act (
(2) Section 702(a)(4) of the Social Security Act (
SEC. 103. BENEFIT INCREASES.
(a) Old-Age Insurance Benefits and Other Benefits Under Section 202- Section 202 of the Social Security Act (
`Account Distribution Supplements
`(z) Each monthly insurance benefit under this section (after application of any reduction or deduction applicable under this section or under any other provision of this part) shall be increased by the amount of the account distribution supplement determined for such benefit under section 255.'.CommentsClose CommentsPermalink
(b) Disability Insurance Benefits- Section 223 of such Act (
`Account Distribution Supplements
`(k) Each monthly insurance benefit under this section (after application of any reduction or deduction applicable under this part) shall be increased by the amount of the account distribution supplement determined for such benefit under section 255.'.CommentsClose CommentsPermalink
SEC. 104. TAX TREATMENT.
(a) Tax Treatment of Social Security Guarantee Accounts- Section 7701 of the Internal Revenue Code of 1986 (relating to definitions) is amended by redesignating subsection (p) as subsection (q) and by inserting after subsection (o) the following new subsection:CommentsClose CommentsPermalink
`(p) Tax Treatment of Social Security Guarantee Accounts- All Social Security guarantee accounts established under part B of title II of the Social Security Act shall be exempt from taxation under this title.'.CommentsClose CommentsPermalink
(b) Benefits Taxable as Social Security Benefits-CommentsClose CommentsPermalink
(1) MONTHLY BENEFITS- Section 86(d)(1)(A) of such Code (relating to definition of Social Security benefit) is amended to read as follows:CommentsClose CommentsPermalink
`(A) a monthly benefit under part A of title II of the Social Security Act (including an account distribution supplement referred to in section 202(z) and 223(k) of such Act), or'.CommentsClose CommentsPermalink
(2) SPECIAL RULES RELATING TO LUMP SUM PAYMENT UNDER SECTION 256(c) OF SOCIAL SECURITY ACT-CommentsClose CommentsPermalink
(A) Section 86(a) of such Code is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink
`(3) INCLUSION IN GROSS INCOME OF LUMP SUM PAYMENT UNDER SECTION 256(c) OF SOCIAL SECURITY ACT-CommentsClose CommentsPermalink
`(A) IN GENERAL- A lump sum payment received under section 256(c) of the Social Security Act shall be includible in gross income in the amount provided by subparagraph (B). Such payment shall not be treated as a social security benefit for purposes of this section.CommentsClose CommentsPermalink
`(B) AMOUNT INCLUDED IN INCOME- The portion of such lump sum payment that is includible in gross income shall be equal to an amount which bears the same ratio to the total amount of such payment as the portion of social security benefits included in gross income under paragraphs (1) and (2) bears to the total amount of such benefits.'.CommentsClose CommentsPermalink
(B) SPECIAL RULE RELATING TO NONRESIDENT ALIEN INDIVIDUALS- Section 871(a)(3)(A) of such Code is amended by inserting `and of any lump sum payment received under section 256(c) of the Social Security Act' after `section 86(d))'.CommentsClose CommentsPermalink
(C) TRANSFERS TO TRUST FUNDS-CommentsClose CommentsPermalink
(i) IN GENERAL- Paragraph (1) of section 121(e) of the Social Security Amendments of 1983 (
`(C) There are hereby appropriated to each payor fund amounts equivalent to the aggregate increase in tax liabilities under chapter 1 of the Internal Revenue Code of 1986 which is attributable to the application of section 86 and section 871(a)(3) of such Code to lump sum payments received under section 256(c) of the Social Security Act by individuals entitled to benefits payable from such payor fund.'.CommentsClose CommentsPermalink
(ii) CONFORMING AMENDMENT- Section 121(e)(2) of such Act is amended by striking `paragraph (1)(A)' and inserting `paragraphs (1)(A) and (C)'.CommentsClose CommentsPermalink
(3) SPECIAL RULES RELATING TO DISTRIBUTION OF CLOSED ACCOUNT UNDER SECTION 256(f) OF SOCIAL SECURITY ACT- Section 86(a) of such Code (as amended by paragraph (2)) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink
`(4) EXTENSION OF PARAGRAPH (2)(B) TO DISTRIBUTIONS OF CLOSED ACCOUNT UNDER SECTION 256(f) OF SOCIAL SECURITY ACT- Notwithstanding any other provision of this subsection, in the case of any amount received pursuant to the closing of an account under section 256(f) of the Social Security Act, paragraph (2)(B) shall apply to such amounts, and for such purposes the amount allocated to the investment in the contract shall be zero.'.CommentsClose CommentsPermalink
(4) EFFECTIVE DATE- The amendments made by this subsection shall apply to taxable years beginning after the end of the calendar year in which this Act is enacted.CommentsClose CommentsPermalink
(c) Estate Tax Not to Apply to Assets of Social Security Guarantee Accounts-CommentsClose CommentsPermalink
(1) IN GENERAL- Part IV of subchapter A of chapter 11 of the Internal Revenue Code of 1986 (relating to taxable estate) is amended by adding at the end the following new section:CommentsClose CommentsPermalink
`SEC. 2059. SOCIAL SECURITY GUARANTEE ACCOUNTS.
`For purposes of the tax imposed by section 2001, the value of the taxable estate shall be determined by deducting from the value of the gross estate an amount equal to the value of the assets of a Social Security guarantee account transferred by the Secretary to the estate of the decedent under section 256 of the Social Security Act.'.CommentsClose CommentsPermalink
(2) CLERICAL AMENDMENT- The table of sections for part IV of subchapter A of chapter 11 of such Code is amended by adding at the end the following new item:CommentsClose CommentsPermalink
`Sec. 2059. Social Security guarantee accounts.'.CommentsClose CommentsPermalink
(3) EFFECTIVE DATE- The amendments made by this subsection shall apply to decedents dying in or after the calendar year in which this Act is enacted.CommentsClose CommentsPermalink
SEC. 105. ANNUAL ACCOUNT STATEMENTS.
Section 1143 of the Social Security Act (
`Performance of Social Security Guarantee Accounts
`(e) Beginning not later than 1 year after the date of the first deposit is made to an eligible individual's Social Security guaranty account, each statement provided to such eligible individual under this section shall include information determined by the Social Security Guarantee Board as sufficient to fully inform such eligible individual annually of the balance, investment performance, and administrative expenses of such account.'.CommentsClose CommentsPermalink
SEC. 106. PROTECTION OF SOCIAL SECURITY SURPLUSES.
(a) Protection of Social Security Surpluses- Title III of the Congressional Budget Act of 1974 is amended by adding at the end the following new section:CommentsClose CommentsPermalink
`LOCK-BOX FOR SOCIAL SECURITY SURPLUSES
`Sec. 316. (a) Lock-Box for Social Security Surpluses-CommentsClose CommentsPermalink
`(1) CONCURRENT RESOLUTIONS ON THE BUDGET- It shall not be in order in the House of Representatives or the Senate to consider any concurrent resolution on the budget, or an amendment thereto or conference report thereon, that would set forth a deficit for any fiscal year for which there is a projected net surplus in the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund which is attributable to the Social Security Guarantee Program under part B of title II of the Social Security Act.CommentsClose CommentsPermalink
`(2) SPENDING AND TAX LEGISLATION- It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, motion, or conference report if--CommentsClose CommentsPermalink
`(A) the enactment of that bill or resolution, as reported;CommentsClose CommentsPermalink
`(B) the adoption and enactment of that amendment; orCommentsClose CommentsPermalink
`(C) the enactment of that bill or resolution in the form recommended in that conference report,CommentsClose CommentsPermalink
would cause a deficit for any fiscal year for which there is a projected net surplus in the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund attributable to the Social Security Guarantee Program under part B of title II of the Social Security Act.CommentsClose CommentsPermalink
`(b) Enforcement-CommentsClose CommentsPermalink
`(1) BUDGETARY LEVELS WITH RESPECT TO CONCURRENT RESOLUTIONS ON THE BUDGET- For purposes of enforcing any point of order under subsection (a)(1), the extent to which there is a deficit for any fiscal year shall be determined on the basis of budgetary aggregates set forth in the later of the concurrent resolution on the budget, as reported, or in the conference report on the concurrent resolution on the budget, adjusted to the maximum extent allowable under all procedures that allow budgetary aggregates to be adjusted for legislation that would cause a decrease in any surplus or an increase in any deficit for any fiscal year covered by the concurrent resolution on the budget (other than procedures described in paragraph (2)(A)(ii)).CommentsClose CommentsPermalink
`(2) CURRENT LEVELS WITH RESPECT TO SPENDING AND TAX LEGISLATION-CommentsClose CommentsPermalink
`(A) IN GENERAL- For purposes of enforcing subsection (a)(2), the extent to which there is a deficit for any fiscal year shall be--CommentsClose CommentsPermalink
`(i) calculated using the following assumptions--CommentsClose CommentsPermalink
`(I) direct spending and revenue levels at the baseline levels underlying the most recently agreed to concurrent resolution on the budget; andCommentsClose CommentsPermalink
`(II) for the budget year, discretionary spending levels at current law levels and, for outyears, discretionary spending levels at the baseline levels underlying the most recently agreed to concurrent resolution on the budget; andCommentsClose CommentsPermalink
`(ii) adjusted for changes in the surplus or deficit levels set forth in the most recently agreed to concurrent resolution on the budget pursuant to procedures in such resolution that authorize adjustments in budgetary aggregates for updated economic and technical assumptions in the mid-session report of the Director of the Congressional Budget Office.CommentsClose CommentsPermalink
Such revisions shall be included in the first current level report on the congressional budget submitted for publication in the Congressional Record after the release of such mid-session report.CommentsClose CommentsPermalink
`(c) Waiver and Appeal- Subsection (a) may be waived or suspended in the Senate only by an affirmative vote of three-fifths of the Members, duly chosen and sworn. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point of order raised under this section.'.CommentsClose CommentsPermalink
(b) Conforming Amendment- The item relating to section 316 in the table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended to read as follows:CommentsClose CommentsPermalink
`Sec. 316. Lock-box for social security surpluses.'.CommentsClose CommentsPermalink
TITLE II--BENEFIT UPDATES
SEC. 201. ELIMINATION OF THE SOCIAL SECURITY EARNINGS TEST FOR INDIVIDUALS WHO HAVE ATTAINED AGE 62.
(a) In General- Section 203 of the Social Security Act (
(1) in subsection (c)(1), by striking `retirement age (as defined in section 216(l))' and inserting `the age of 62';CommentsClose CommentsPermalink
(2) in clause (B) of the last sentence of subsection (f)(1), by striking `retirement age (as defined in section 216(l))' and inserting `the age of 62';CommentsClose CommentsPermalink
(3) in subsection (f)(3), by striking `retirement age (as defined in section 216(l))' and inserting `the age of 62';CommentsClose CommentsPermalink
(4) in subsection (h)(1)(A), by striking `retirement age (as defined in section 216(l))' each place it appears and inserting `the age of 62'; andCommentsClose CommentsPermalink
(5) in subsection (j)--CommentsClose CommentsPermalink
(A) in the heading, by striking `retirement age' and inserting `Age 62'; andCommentsClose CommentsPermalink
(B) by striking `retirement age (as defined in section 216(l))' and inserting `the age of 62'.CommentsClose CommentsPermalink
(b) Conforming Amendments Eliminating the Special Exempt Amount for Year of Attaining Retirement Age-CommentsClose CommentsPermalink
(1) UNIFORM EXEMPT AMOUNT- Section 203(f)(8)(A) of such Act (
(2) CONFORMING AMENDMENTS- Section 203(f)(8)(B) of such Act (
(A) in the matter preceding clause (i), by striking `Except' and all that follows through `whichever' and inserting `The exempt amount which is applicable for each month of a particular taxable year shall be whichever';CommentsClose CommentsPermalink
(B) in clause (i), by striking `corresponding';CommentsClose CommentsPermalink
(C) in clause (ii)--CommentsClose CommentsPermalink
(i) by striking `the product' and all that follows through `other individuals), and' and inserting `the product derived by multiplying the exempt amount which is in effect with respect to months in the taxable year ending after 1993 and before 1995, by'; andCommentsClose CommentsPermalink
(ii) by striking subclause (II) and inserting the following:CommentsClose CommentsPermalink
`(II) the national average wage index (as so defined) for 1992,'; andCommentsClose CommentsPermalink
(D) in the last sentence, by striking `an exempt amount' and inserting `the exempt amount'.CommentsClose CommentsPermalink
(3) REPEAL OF BASIS FOR COMPUTATION OF SPECIAL EXEMPT AMOUNT- Subparagraphs (D) and (E) of section 203(f)(8) of such Act (42 U.S.C. (f)(8)(D), (E)) are repealed.CommentsClose CommentsPermalink
(c) Additional Conforming Amendments-CommentsClose CommentsPermalink
(1) Section 203 of such Act (
(A) in subsection (b)(1)--CommentsClose CommentsPermalink
(i) by striking `(b)(1) Deductions' and inserting `(b) Deductions';CommentsClose CommentsPermalink
(ii) by striking `and from any payment or payments to which any other persons are entitled on the basis of such individual's wages and self-employment income,';CommentsClose CommentsPermalink
(iii) by striking `until the total' and all that follows through `if for such month' and inserting the following: `until the total of such deductions equals such individual's benefit or benefits under section 202 for any month, if for such month';CommentsClose CommentsPermalink
(iv) by striking `total of benefits referred to in clauses (A) and (B)' and inserting `the total of such benefits'; andCommentsClose CommentsPermalink
(v) by striking `If a child' and all that follows through `have been made.';CommentsClose CommentsPermalink
(B) by striking subsection (b)(2);CommentsClose CommentsPermalink
(C) by striking subsection (d);CommentsClose CommentsPermalink
(D) in subsection (f)(1), by striking `The amount of' and all that follows through `Notwithstanding' and inserting the following: `The amount of an individual's excess earnings (as defined in paragraph (3)) shall be charged to months as follows: There shall be charged to the first month of such taxable year an amount of his excess earnings equal to the payment to which he is entitled for such month under section 202 (or the total of his excess earnings if such excess earnings are less than such payment), and the balance, if any, of such excess earnings shall be charged to each succeeding month in such year to the extent, in the case of each such month, of the payment to which such individual is entitled for such month under section 202, until the total of such excess has been so charged. Notwithstanding';CommentsClose CommentsPermalink
(E) in subsection (f)(3), by striking `33 1/3 percent' and all that follows through `other individual,' and inserting `50 percent of such individual's earnings for such year in excess of the product of the exempt amount as determined under paragraph (8),';CommentsClose CommentsPermalink
(F) by striking subsection (f)(7);CommentsClose CommentsPermalink
(G) by striking subsection (f)(9); andCommentsClose CommentsPermalink
(H) in subsection (h)(1)(A)(ii), by striking subclauses (I), (II), and (III) and inserting the following:CommentsClose CommentsPermalink
`(I) such individual's benefits under section 202 are reduced under subsection (a) of this section for any month in such taxable year, andCommentsClose CommentsPermalink
`(II) in any such month there is another person who also is entitled to benefits under subsection (b), (c), (d), (e), (f), (g), or (h) of section 202 on the basis of the same wages and self-employment income and who does not live in the same household as such individual.'.CommentsClose CommentsPermalink
(2) The second sentence of section 223(d)(4) of such Act (
(d) Effective Date and Transitional Rule-CommentsClose CommentsPermalink
(1) EFFECTIVE DATE- The amendments and repeals made by this section shall apply with respect to taxable years ending after December 31, 2012.CommentsClose CommentsPermalink
(2) TRANSITIONAL RULE- Notwithstanding paragraph (8) of section 203(f) of the Social Security Act (
(A) for each month of any taxable year ending after 2007 and before 2009, $1,250.00,CommentsClose CommentsPermalink
(B) for each month of any taxable year ending after 2008 and before 2010, $1,666.66 2/3 ,CommentsClose CommentsPermalink
(C) for each month of any taxable year ending after 2009 and before 2011, $2,083.33 1/3 ,CommentsClose CommentsPermalink
(D) for each month of any taxable year ending after 2010 and before 2012, $2,500.00, andCommentsClose CommentsPermalink
(E) for each month of any taxable year ending after 2011 and before 2013, $2,916.66 2/3 .CommentsClose CommentsPermalink
SEC. 202. INCREASE IN WIDOW'S AND WIDOWER'S INSURANCE BENEFITS.
(a) Widow's Insurance Benefits- Section 202(e) of the Social Security Act (
`(9)(A) In any case in which the amount of a widow's insurance benefit (as determined under the preceding paragraphs of this subsection) for the entitlement month of the widow (or surviving divorced wife) is less than the minimum benefit amount for such month determined under subparagraph (C), the amount of such benefit for such month and each succeeding month shall be increased to such minimum benefit amount (or the amount most recently established in lieu thereof under section 215(i)).CommentsClose CommentsPermalink
`(B) For purposes of this paragraph, the term `entitlement month' of a widow (or surviving divorced wife) means, in connection with her benefit under this subsection, the first month of her entitlement to such benefit.CommentsClose CommentsPermalink
`(C) For purposes of subparagraph (A), the minimum benefit amount determined under this subparagraph for the entitlement month of the widow (or surviving divorced wife) is an amount equal to the lesser of--CommentsClose CommentsPermalink
`(i) 75 percent of the sum of--CommentsClose CommentsPermalink
`(I) the imputed deceased individual's benefit for such month, as determined under subparagraph (D) or (E) (as applicable), andCommentsClose CommentsPermalink
`(II) the imputed survivor benefit for such month, as determined under subparagraph (F), orCommentsClose CommentsPermalink
`(ii) the increased benefit cap determined under subparagraph (G) for such month.CommentsClose CommentsPermalink
`(D)(i) For purposes of subparagraph (C)(i)(I), if the deceased individual died in a month for which he was not entitled to any benefit under this title based on his wages or self-employment income or the wages and self-employment income of the widow (or surviving divorced wife), the imputed deceased individual's benefit for the entitlement month of the widow (or surviving divorced wife) is the sum of--CommentsClose CommentsPermalink
`(I) the imputed old-age insurance benefit (determined under clause (ii)) of the deceased individual for her entitlement month (if any), andCommentsClose CommentsPermalink
`(II) the imputed husband's insurance benefit (determined under clause (iii)) of the deceased individual for her entitlement month (if any).CommentsClose CommentsPermalink
`(ii) The amount of the imputed old-age insurance benefit of the deceased individual for the entitlement month of the widow (or surviving divorced wife) is the amount of the old-age insurance benefit to which he would have been entitled for such month--CommentsClose CommentsPermalink
`(I) determined, in the case of such a deceased individual who had attained age 62 as of the date of his death, as if he had applied for such benefit in the month of his death and had survived throughout the subsequent period ending with her entitlement month, orCommentsClose CommentsPermalink
`(II) determined, in the case of such a deceased individual who died before attaining age 62 but would have attained age 62 before the end of her entitlement month, as if he had survived throughout the subsequent period ending with her entitlement month, and had applied for such benefit during the first month for which he would have been eligible for such benefit (assuming a primary insurance amount for the deceased individual determined under paragraph (2)(B) of this subsection).CommentsClose CommentsPermalink
For purposes of determining the deceased individual's imputed old-age insurance benefit under this clause, the determination of whether the deceased individual was a fully-insured individual (as defined in section 214(a)) shall be made as of the date of his death. In any case in which the deceased individual died before attaining age 62 and would not have attained age 62 before the end of the entitlement month of the widow (or surviving divorced wife), the deceased individual's imputed old-age insurance benefit shall be deemed to be zero.CommentsClose CommentsPermalink
`(iii) The amount of the imputed husband's insurance benefit of the deceased individual for the entitlement month of the widow (or surviving divorced wife) is the amount of the husband's insurance benefit under subsection (c) to which he would have been entitled for such month (assuming, for purposes of reduction under subsection (k)(3)(A), the entitlement to an old-age insurance benefit for such month, if any, as described in clause (ii))--CommentsClose CommentsPermalink
`(I) determined, in the case of such a deceased individual who had attained age 62 as of the date of his death, as if he had applied for such benefit in the month of his death and had survived throughout the subsequent period ending with her entitlement month, orCommentsClose CommentsPermalink
`(II) determined, in the case of such a deceased individual who died before attaining age 62 but would have attained age 62 before the end of her entitlement month, as if he had survived throughout the subsequent period ending with her entitlement month and had applied for such benefit during the first month for which he would have been eligible for such benefit.CommentsClose CommentsPermalink
In any case in which the deceased individual died before he attained age 62 and would not have attained age 62 before the end of the entitlement month of the widow (or surviving divorced spouse), the deceased individual's imputed husband's insurance benefit shall be deemed to be zero.CommentsClose CommentsPermalink
`(E)(i) For purposes of subparagraph (C), if the deceased individual died during a month for which he otherwise would have been entitled (but for his death) to an old-age insurance benefit under subsection (a) or a disability insurance benefit under section 223, or to a husband's insurance benefit under subsection (c) based on the wages and self-employment income of the widow (or surviving divorced wife), the imputed deceased individual's benefit for the entitlement month of the widow (or surviving divorced wife) is the sum of--CommentsClose CommentsPermalink
`(I) the amount of the old-age or disability insurance benefit (if any) to which he would have been entitled for her entitlement month if he had survived throughout the period subsequent to his death and ending with such month, andCommentsClose CommentsPermalink
`(II) the amount of the husband's insurance benefit (if any) to which he would have been entitled for her entitlement month based on her wages and self-employment income if he had survived throughout the period subsequent to his death and ending with such month (assuming, for purposes of reduction under subsection (k)(3)(A), the entitlement to an old-age or disability insurance benefit for such month, if any, as described in subclause (I)).CommentsClose CommentsPermalink
`(ii) If the deceased individual otherwise would have been entitled (but for his death) to a disability insurance benefit under section 223 for the month in which he died, the amount determined under clause (i) shall be determined as if he had survived throughout the period commencing with the month of his death and ending with the entitlement month of the widow (or surviving divorced wife) and he had remained entitled to disability insurance benefits throughout such period (or until becoming entitled to old-age insurance benefits under subsection (a) during such period).CommentsClose CommentsPermalink
`(F) For purposes of subparagraph (C)(i)(II)--CommentsClose CommentsPermalink
`(i) In the case of a widow (or surviving divorced wife) who is entitled for her entitlement month to an old-age insurance benefit under subsection (a) or a disability insurance benefit under section 223, or otherwise would have been entitled (but for the deceased individual's death) to a wife's insurance benefit under subsection (b) for such month, the amount of her imputed survivor benefit for such month is the sum of--CommentsClose CommentsPermalink
`(I) the amount of such old-age or disability insurance benefit (if any), andCommentsClose CommentsPermalink
`(II) the amount of such wife's insurance benefit (if any), assuming, for purposes of reduction under subsection (k)(3)(A), the entitlement to an old-age insurance or disability insurance benefit for such month (if any), as described in subclause (I).CommentsClose CommentsPermalink
`(ii) In the case of a widow (or surviving divorced wife) who is not described in clause (i) but has attained (or would attain) age 62 as of the end of her entitlement month, the amount of her imputed survivor benefit is the sum of--CommentsClose CommentsPermalink
`(I) the amount of the old-age insurance benefit under subsection (a) to which she would be entitled for such month if she filed application for such benefit during such month, andCommentsClose CommentsPermalink
`(II) the amount to which she otherwise would have been entitled (but for the deceased individual's death) as a wife's insurance benefit under subsection (b) for such month, based on the deceased individual's wages and self-employment income, if she had filed application for such benefit during such month (assuming a primary insurance amount for the deceased individual determined under paragraph (2)(B) of this subsection and assuming, for purposes of reduction under subsection (k)(3)(A), the entitlement to an old-age insurance benefit for such month, if any, as described in subclause (I)).CommentsClose CommentsPermalink
In any case in which the widow (or surviving divorced wife) would not attain age 62 before the end of the her entitlement month, her imputed survivor benefit shall be deemed to be zero.CommentsClose CommentsPermalink
`(G) The increased benefit cap determined under this subparagraph for the entitlement month of the widow (or surviving divorced wife) is the amount which would be the amount of a theoretical individual's old-age insurance benefit under subsection (a) (reduced as provided in subsection (q)) if--CommentsClose CommentsPermalink
`(i) such theoretical individual's primary insurance amount for the first month of entitlement were equal to the average of the primary insurance amounts upon which old-age insurance benefits under subsection (a) are payable for--CommentsClose CommentsPermalink
`(I) in any case in which the entitlement month of the widow (or surviving divorced wife) is the month of December, such month, orCommentsClose CommentsPermalink
`(II) in any other case, the latest month of December preceding such entitlement month,CommentsClose CommentsPermalink
`(ii) such first month of such theoretical individual's entitlement to such old-age insurance benefit were the entitlement month of the widow (or surviving divorced spouse), andCommentsClose CommentsPermalink
`(iii) the month in which the theoretical individual attained or would attain retirement age (as defined in section 216(l)) were the month in which the widow (or surviving divorced wife) attained or would attain retirement age (as so defined).CommentsClose CommentsPermalink
`(H) If, in determining the amount of the benefit under this section pursuant to this paragraph, the imputed old-age insurance benefit or imputed husband's insurance benefit of the deceased individual was deemed to be zero pursuant to the last sentence of clause (ii) or (iii) of subparagraph (D), or the imputed survivor benefit of the widow (or surviving divorced wife) was deemed to be zero pursuant to the last sentence of subparagraph (F), effective for any month after the entitlement month of the widow (or surviving divorced wife) in which the deceased individual would have attained age 62 or she attains age 62, the Commissioner shall recompute the amount of the benefit under this paragraph by substituting a reference to such later month for each reference in the preceding provisions of this paragraph to her entitlement month.CommentsClose CommentsPermalink
`(I)(i) Any reference in this paragraph to the widow's insurance benefit (as determined under the preceding paragraphs of this subsection) shall be deemed a reference to such benefit, taking into account all applicable reductions and deductions under this title.CommentsClose CommentsPermalink
`(ii) Any reference in this paragraph to the imputed old-age insurance benefit or imputed husband's insurance benefit described in subparagraph (D), the old-age insurance benefit, disability insurance benefit, or husband's insurance benefit described in subparagraph (E), or the old-age insurance benefit, disability insurance benefit, or wife's insurance benefit described in subparagraph (F) shall be deemed a reference to such benefit, taking into account applicable reductions under this section but disregarding reductions or deductions otherwise applicable under this title.CommentsClose CommentsPermalink
`(iii) A widow's insurance benefit which has been increased under this paragraph shall be subject to all reductions and deductions otherwise applicable to widow's insurance benefits under this title, except that such benefit shall not be subject to any reduction otherwise applicable under subsection (q)(1).'.CommentsClose CommentsPermalink
(b) Widower's Insurance Benefits- Section 202(f) of such Act (
`(9)(A) In any case in which the amount of a widower's insurance benefit (as determined under the preceding paragraphs of this subsection) for the entitlement month of the widower (or surviving divorced husband) is less than the minimum benefit amount for such month determined under subparagraph (C), the amount of such benefit for such month and each succeeding month shall be increased to such minimum benefit amount (or the amount most recently established in lieu thereof under section 215(i)).CommentsClose CommentsPermalink
`(B) For purposes of this paragraph, the term `entitlement month' of a widower (or surviving divorced husband) means, in connection with his benefit under this subsection, the first month of his entitlement to such benefit.CommentsClose CommentsPermalink
`(C) For purposes of subparagraph (A), the minimum benefit amount determined under this subparagraph for the entitlement month of the widower (or surviving divorced husband) is an amount equal to the lesser of--CommentsClose CommentsPermalink
`(i) 75 percent of the sum of--CommentsClose CommentsPermalink
`(I) the imputed deceased individual's benefit for such month, as determined under subparagraph (D) or (E) (as applicable), andCommentsClose CommentsPermalink
`(II) the imputed survivor benefit for such month, as determined under subparagraph (F), orCommentsClose CommentsPermalink
`(ii) the increased benefit cap determined under subparagraph (G) for such month.CommentsClose CommentsPermalink
`(D)(i) For purposes of subparagraph (C)(i)(I), if the deceased individual died in a month for which she was not entitled to any benefit under this title based on her wages or self-employment income or the wages and self-employment income of the widower (or surviving divorced husband), the imputed deceased individual's benefit for the entitlement month of the widower (or surviving divorced husband) is the sum of--CommentsClose CommentsPermalink
`(I) the imputed old-age insurance benefit (determined under clause (ii)) of the deceased individual for his entitlement month (if any), andCommentsClose CommentsPermalink
`(II) the imputed wife's insurance benefit (determined under clause (iii)) of the deceased individual for his entitlement month (if any).CommentsClose CommentsPermalink
`(ii) The amount of the imputed old-age insurance benefit of the deceased individual for the entitlement month of the widower (or surviving divorced husband) is the amount of the old-age insurance benefit to which she would have been entitled for such month--CommentsClose CommentsPermalink
`(I) determined, in the case of such a deceased individual who had attained age 62 as of the date of her death, as if she had applied for such benefit in the month of her death and had survived throughout the subsequent period ending with his entitlement month, orCommentsClose CommentsPermalink
`(II) determined, in the case of such a deceased individual who died before attaining age 62 but would have attained age 62 before the end of his entitlement month, as if she had survived throughout the subsequent period ending with his entitlement month, and had applied for such benefit during the first month for which she would have been eligible for such benefit (assuming a primary insurance amount for the deceased individual determined under paragraph (2)(B) of this subsection).CommentsClose CommentsPermalink
For purposes of determining the deceased individual's imputed old-age insurance benefit under this clause, the determination of whether the deceased individual was a fully-insured individual (as defined in section 214(a)) shall be made as of the date of her death. In any case in which the deceased individual died before attaining age 62 and would not have attained age 62 before the end of the entitlement month of the widower (or surviving divorced husband), the deceased individual's imputed old-age insurance benefit shall be deemed to be zero.CommentsClose CommentsPermalink
`(iii) The amount of the imputed wife's insurance benefit of the deceased individual for the entitlement month of the widower (or surviving divorced husband) is the amount of the wife's insurance benefit under subsection (c) to which she would have been entitled for such month (assuming, for purposes of reduction under subsection (k)(3)(A), the entitlement to an old-age insurance benefit for such month, if any, as described in clause (ii))--CommentsClose CommentsPermalink
`(I) determined, in the case of such a deceased individual who had attained age 62 as of the date of her death, as if she had applied for such benefit in the month of her death and had survived throughout the subsequent period ending with his entitlement month, orCommentsClose CommentsPermalink
`(II) determined, in the case of such a deceased individual who died before attaining age 62 but would have attained age 62 before the end of his entitlement month, as if she had survived throughout the subsequent period ending with his entitlement month and had applied for such benefit during the first month for which she would have been eligible for such benefit.CommentsClose CommentsPermalink
In any case in which the deceased individual died before she attained age 62 and would not have attained age 62 before the end of the entitlement month of the widower (or surviving divorced husband), the deceased individual's imputed wife's insurance benefit shall be deemed to be zero.CommentsClose CommentsPermalink
`(E)(i) For purposes of subparagraph (C), if the deceased individual died during a month for which she otherwise would have been entitled (but for his death) to an old-age insurance benefit under subsection (a) or a disability insurance benefit under section 223, or to a wife's insurance benefit under subsection (c) based on the wages and self-employment income of the widower (or surviving divorced husband), the imputed deceased individual's benefit for the entitlement month of the widower (or surviving divorced husband) is the sum of--CommentsClose CommentsPermalink
`(I) the amount of the old-age or disability insurance benefit (if any) to which she would have been entitled for his entitlement month if she had survived throughout the period subsequent to her death and ending with such month, andCommentsClose CommentsPermalink
`(II) the amount of the wife's insurance benefit (if any) to which she would have been entitled for his entitlement month based on his wages and self-employment income if she had survived throughout the period subsequent to her death and ending with such month (assuming, for purposes of reduction under subsection (k)(3)(A), the entitlement to an old-age or disability insurance benefit for such month, if any, as described in subclause (I)).CommentsClose CommentsPermalink
`(ii) If the deceased individual otherwise would have been entitled (but for her death) to a disability insurance benefit under section 223 for the month in which she died, the amount determined under clause (i) shall be determined as if she had survived throughout the period commencing with the month of her death and ending with the entitlement month of the widower (or surviving divorced husband) and she had remained entitled to disability insurance benefits throughout such period (or until becoming entitled to old-age insurance benefits under subsection (a) during such period).CommentsClose CommentsPermalink
`(F) For purposes of subparagraph (C)(i)(II)--CommentsClose CommentsPermalink
`(i) In the case of a widower (or surviving divorced husband) who is entitled for his entitlement month to an old-age insurance benefit under subsection (a) or a disability insurance benefit under section 223, or otherwise would have been entitled (but for the deceased individual's death) to a husband's insurance benefit under subsection (b) for such month, the amount of his imputed survivor benefit for such month is the sum of--CommentsClose CommentsPermalink
`(I) the amount of such old-age or disability insurance benefit (if any), andCommentsClose CommentsPermalink
`(II) the amount of such husband's insurance benefit (if any), assuming, for purposes of reduction under subsection (k)(3)(A), the entitlement to an old-age insurance or disability insurance benefit for such month (if any), as described in subclause (I).CommentsClose CommentsPermalink
`(ii) In the case of a widower (or surviving divorced husband) who is not described in clause (i) but has attained (or would attain) age 62 as of the end of his entitlement month, the amount of his imputed survivor benefit is the sum of--CommentsClose CommentsPermalink
`(I) the amount of the old-age insurance benefit under subsection (a) to which he would be entitled for such month if he filed application for such benefit during such month, andCommentsClose CommentsPermalink
`(II) the amount to which he otherwise would have been entitled (but for the deceased individual's death) as a husband's insurance benefit under subsection (c) for such month, based on the deceased individual's wages and self-employment income, if he had filed application for such benefit during such month (assuming a primary insurance amount for the deceased individual determined under paragraph (2)(B) of this subsection and assuming, for purposes of reduction under subsection (k)(3)(A), the entitlement to an old-age insurance benefit for such month, if any, as described in subclause (I)).CommentsClose CommentsPermalink
In any case in which the widower (or surviving divorced husband) would not attain age 62 before the end of his entitlement month, his imputed survivor benefit shall be deemed to be zero.CommentsClose CommentsPermalink
`(G) The increased benefit cap determined under this subparagraph for the entitlement month of the widower (or surviving divorced husband) is the amount which would be the amount of a theoretical individual's old-age insurance benefit under subsection (a) (reduced as provided in subsection (q)) if--CommentsClose CommentsPermalink
`(i) such theoretical individual's primary insurance amount for the first month of entitlement were equal to the average of the primary insurance amounts upon which old-age insurance benefits under subsection (a) are payable for--CommentsClose CommentsPermalink
`(I) in any case in which the entitlement month of the widower (or surviving divorced husband) is the month of December, such month, orCommentsClose CommentsPermalink
`(II) in any other case, the latest month of December preceding such entitlement month,CommentsClose CommentsPermalink
`(ii) such first month of such theoretical individual's entitlement to such old-age insurance benefit were the entitlement month of the widower (or surviving divorced husband), andCommentsClose CommentsPermalink
`(iii) the month in which the theoretical individual attained or would attain retirement age (as defined in section 216(l)) were the month in which the widower (or surviving divorced husband) attained or would attain retirement age (as so defined).CommentsClose CommentsPermalink
`(H) If, in determining the amount of the benefit under this section pursuant to this paragraph, the imputed old-age insurance benefit or imputed wife's insurance benefit of the deceased individual was deemed to be zero pursuant to the last sentence of clause (ii) or (iii) of subparagraph (D), or the imputed survivor benefit of the widower (or surviving divorced husband) was deemed to be zero pursuant to the last sentence of subparagraph (F), effective for any month after the entitlement month of the widower (or surviving divorced husband) in which the deceased individual would have attained age 62 or he attains age 62, the Commissioner shall recompute the amount of the benefit under this paragraph by substituting a reference to such later month for each reference in the preceding provisions of this paragraph to his entitlement month.CommentsClose CommentsPermalink
`(I)(i) Any reference in this paragraph to the widower's insurance benefit (as determined under the preceding paragraphs of this subsection) shall be deemed a reference to such benefit, taking into account all applicable reductions and deductions under this title.CommentsClose CommentsPermalink
`(ii) Any reference in this paragraph to the imputed old-age insurance benefit or imputed wife's insurance benefit described in subparagraph (D), the old-age insurance benefit, disability insurance benefit, or wife's insurance benefit described in subparagraph (E), or the old-age insurance benefit, disability insurance benefit, or husband's insurance benefit described in subparagraph (F) shall be deemed a reference to such benefit, taking into account applicable reductions under this section but disregarding reductions or deductions otherwise applicable under this title.CommentsClose CommentsPermalink
`(iii) A widower's insurance benefit which has been increased under this paragraph shall be subject to all reductions and deductions otherwise applicable to widower's insurance benefits under this title, except that such benefit shall not be subject to any reduction otherwise applicable under subsection (q)(1).'.CommentsClose CommentsPermalink
(c) Cost-of-Living Adjustments to Guaranteed Widow's and Widower's Insurance Benefits- Section 215(i)(2)(A)(ii) of such Act (
(1) in subclause (II), by striking `and' at the end;CommentsClose CommentsPermalink
(2) in subclause (III), by striking `1978.' and inserting `1979, and';CommentsClose CommentsPermalink
(3) by adding at the end the following new subclause:CommentsClose CommentsPermalink
`(IV) the benefit amount to which an individual is entitled for that month under subsection (e) or (f) of section 202 if such benefit amount has been increased under paragraph (9) of such subsection.'; andCommentsClose CommentsPermalink
(4) in the matter following subclause (IV) (added by paragraph (3)), by striking `(I), (II), and (III)' and inserting `(I), (II), (III), and (IV)'.CommentsClose CommentsPermalink
(d) Effective Date- The amendments made by this section shall apply with respect to widow's and widower's insurance benefits for months after November of the calendar year in which this Act is enacted.CommentsClose CommentsPermalink
SEC. 203. BENEFITS FOR DISABLED WIDOWS AND WIDOWERS WITHOUT REGARD TO AGE.
(a) Eligibility for Widow's Insurance Benefits- Section 202(e)(1)(B)(ii) of the Social Security Act (
(b) Eligibility for Widower's Insurance Benefits- Section 202(f)(1)(B)(ii) of such Act (
(c) Conforming Amendment- Section 202(q)(3)(A) of such Act (
(d) Effective Date- The amendments made by this section shall apply with respect to monthly insurance benefits payable under title II of the Social Security Act for months after November of the calendar year in which this Act is enacted and for which applications are filed or pending after November of such year.CommentsClose CommentsPermalink
SEC. 204. REPEAL OF 7-YEAR RESTRICTION ON ELIGIBILITY FOR WIDOW'S AND WIDOWER'S INSURANCE BENEFITS BASED ON DISABILITY.
(a) Widow's Insurance Benefits-CommentsClose CommentsPermalink
(1) IN GENERAL- Section 202(e) of the Social Security Act (as amended by section 202(a) of this Act) is further amended--CommentsClose CommentsPermalink
(A) in paragraph (1)(B)(ii), by striking `which began before the end of the period specified in paragraph (4)';CommentsClose CommentsPermalink
(B) in paragraph (1)(F)(ii), by striking `(I) in the period specified in paragraph (4) and (II)';CommentsClose CommentsPermalink
(C) by striking paragraph (4) and by redesignating paragraphs (5) through (9) as paragraphs (4) through (8), respectively; andCommentsClose CommentsPermalink
(D) in paragraph (4)(A)(ii) (as redesignated), by striking `whichever' and all that follows through `begins' and inserting `the first day of the seventeenth month before the month in which her application is filed'.CommentsClose CommentsPermalink
(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink
(A) Section 202(e)(1)(F)(i) of such Act (
(B) Section 202(e)(1)(C)(ii)(III) of such Act (
(C) Section 226(e)(1)(A)(i) of such Act (
(b) Widower's Insurance Benefits-CommentsClose CommentsPermalink
(1) IN GENERAL- Section 202(f) of such Act (as amended by section 202(b) of this Act) is further amended--CommentsClose CommentsPermalink
(A) in paragraph (1)(B)(ii), by striking `which began before the end of the period specified in paragraph (4)';CommentsClose CommentsPermalink
(B) in paragraph (1)(F)(ii), by striking `(I) in the period specified in paragraph (4) and (II)';CommentsClose CommentsPermalink
(C) by striking paragraph (4) and by redesignating paragraphs (5) through (9) as paragraphs (4) through (8), respectively; andCommentsClose CommentsPermalink
(D) in paragraph (4)(A)(ii) (as redesignated), by striking `whichever' and all that follows through `begins' and inserting `the first day of the seventeenth month before the month in which his application is filed'.CommentsClose CommentsPermalink
(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink
(A) Section 202(f)(1)(F)(i) of such Act (
(B) Section 202(f)(1)(C)(ii)(III) of such Act (
(C) Section 226(e)(1)(A)(i) of such Act (as amended by subsection (a)(2)) is further amended by striking `202(f)(1)(B)(ii), and 202(f)(4)' and inserting `and 202(f)(1)(B)(ii)'.CommentsClose CommentsPermalink
(c) Conforming Amendment- Section 215(i)(2)(A)(ii)(IV) of such Act (as added by section 202(c)(3) of this Act) is amended by striking `paragraph (9)' and inserting `paragraph (8)'.CommentsClose CommentsPermalink
(d) Effective Date- The amendments made by this section shall apply with respect to benefits for months after November of the calendar year in which this Act is enacted and for which applications are filed or pending after November of such year.CommentsClose CommentsPermalink
SEC. 205. EXEMPTION FROM TWO-YEAR WAITING PERIOD FOR DIVORCED SPOUSE'S BENEFITS UPON OTHER SPOUSE'S REMARRIAGE.
(a) Wife's Insurance Benefits- Section 202(b)(4)(A) of the Social Security Act (
(b) Husband's Insurance Benefits- Section 202(c)(4)(A) of such Act (
(c) Effective Date- The amendments made by this section shall apply with respect to benefits for months after November of the calendar year in which this Act is enacted and for which applications are filed or pending after November of such year.CommentsClose CommentsPermalink
SEC. 206. INCREASE IN AMOUNT OF WAGES AND SELF-EMPLOYMENT INCOME CREDITED TO YEARS TAKEN INTO ACCOUNT IN DETERMINING AVERAGE INDEXED MONTHLY EARNINGS FOR BENEFICIARIES PRECLUDED FROM REMUNERATIVE WORK BY NEED TO PROVIDE CHILD CARE.
(a) In General- Section 215(b)(3) of the Social Security Act (
(1) in subparagraph (A), by striking `subparagraph (B)' and inserting `subparagraphs (B) and (C)', andCommentsClose CommentsPermalink
(2) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink
`(C)(i) Subject to clause (iii), in any case in which--CommentsClose CommentsPermalink
`(I) in any calendar year which is included in an individual's elapsed years, such individual was living with a child (of such individual or his or her spouse) under the age of 7, andCommentsClose CommentsPermalink
`(II) at any time during or after such calendar year and on or before the date of the application by such individual for benefits based on such individual's wages and self-employment income, such individual submits to the Commissioner, in such form as the Commissioner shall prescribe by regulation, a written statement that the requirements of subclause (I) are met with respect to such calendar year,CommentsClose CommentsPermalink
the amount of the wages and self-employment income paid in or credited to such year under subparagraph (A), if less than the minimum credit amount for such individual for such year, shall be deemed equal to such minimum credit amount.CommentsClose CommentsPermalink
`(ii) For purposes of clause (i), the minimum credit amount for an individual described in clause (i) for any calendar year shall be an amount equal to the product derived by multiplying--CommentsClose CommentsPermalink
`(I) subject to clause (iii), 1/4 of the average indexed monthly earnings of such individual, determined as if such individual became entitled to disability insurance benefits on January 1 of such year (disregarding any elapsed year with respect to which wages and self-employment income of such individual are deemed to be increased under this subparagraph), byCommentsClose CommentsPermalink
`(II) the number of months in such year during which such individual meets the requirements of clause (i)(I).CommentsClose CommentsPermalink
`(iii) In any case in which a minimum credit amount for an individual is determined under clause (ii) for 2 or more elapsed years, the amount determined in the case of such individual under clause (ii)(I) in connection with each such elapsed year shall not be less than the amount determined under clause (ii)(I) for such individual under clause (ii)(I) in connection with the latest of such 2 or more elapsed years.CommentsClose CommentsPermalink
`(iv) Clause (i) shall apply only with respect to not more than 5 elapsed years designated by the individual described in clause (i) with respect to which such individual submits a statement under clause (i)(II).CommentsClose CommentsPermalink
`(v) Clause (i) shall not apply in the case of an individual with respect to any calendar year referred to in clause (i)(I), if such individual's spouse referred to in such clause was also living with the child referred to in such clause in such year, and--CommentsClose CommentsPermalink
`(I) the amount of such individual's wages and self-employment income paid in or credited to such year (as determined before the application of this subparagraph) is greater than the amount of the wages and self-employment income paid in or credited to such year (as so determined) of such spouse, orCommentsClose CommentsPermalink
`(II) in any case in which the amount of the wages and self-employment income of such individual paid in or credited to such year is equal to the wages and self-employment income of such individual's spouse paid in or credited to such year, the amount determined under clause (ii)(I) in connection with such calendar year in the case of such individual is greater than the amount so determined in the case of such individual's spouse.CommentsClose CommentsPermalink
In any case in which the requirements of neither subclause (I) nor subclause (II) are met in the case of such individual with respect to any calendar year, the Commissioner of Social Security shall provide by regulation for the application of clause (i) only with respect to one of the two spouses in accordance with the equities of the case.'.CommentsClose CommentsPermalink
(b) Effective Date- The amendments made by this section shall apply with respect to benefits for months after November of the calendar year in which this Act is enacted.CommentsClose CommentsPermalink
SEC. 207. GOVERNMENT PENSION OFFSET REDUCED FROM TWO-THIRDS TO ONE-THIRD OF THE GOVERNMENT PENSION.
(a) In General- Section 202(k)(5)(A) of the Social Security Act (
(b) Effective Date- The amendment made by this section shall apply with respect to benefits for months after November of the calendar year in which this Act is enacted.CommentsClose CommentsPermalink
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