S 81 ISCommentsClose CommentsPermalink

To amend title II of the Social Security Act to allow workers who attain age 65 after 1981 and before 1992 to choose either lump sum payments over four years totaling $5,000 or an improved benefit computation formula under a new 10-year rule governing the transition to the changes in benefit computation rules enacted in the Social Security Amendments of 1977, and for other purposes.CommentsClose CommentsPermalink

January 6, 2009CommentsClose CommentsPermalink

Mr. VITTER introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

To amend title II of the Social Security Act to allow workers who attain age 65 after 1981 and before 1992 to choose either lump sum payments over four years totaling $5,000 or an improved benefit computation formula under a new 10-year rule governing the transition to the changes in benefit computation rules enacted in the Social Security Amendments of 1977, 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.

This Act may be cited as the ‘Notch Fairness Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. NEW GUARANTEED MINIMUM PRIMARY INSURANCE AMOUNT WHERE ELIGIBILITY ARISES DURING TRANSITIONAL PERIOD.

(a) In General- Section 215(a) of the Social Security Act is amended--CommentsClose CommentsPermalink





(1) in paragraph (4)(B), by inserting ‘(with or without the application of paragraph (8))’ after ‘would be made’, and by striking ‘1984’ in clause (i) and inserting ‘1989’; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





‘(8)(A) In the case of an individual described in paragraph (4)(B) (subject to subparagraphs (F) and (G) of this paragraph), the amount of the individual’s primary insurance amount as computed or recomputed under paragraph (1) shall be deemed equal to the sum of--CommentsClose CommentsPermalink





‘(i) such amount, andCommentsClose CommentsPermalink





‘(ii) the applicable transitional increase amount (if any).CommentsClose CommentsPermalink





‘(B) For purposes of subparagraph (A)(ii), the term ‘applicable transitional increase amount’ means, in the case of any individual, the product derived by multiplying--CommentsClose CommentsPermalink





‘(i) the excess under former law, byCommentsClose CommentsPermalink





‘(ii) the applicable percentage in relation to the year in which the individual becomes eligible for old-age insurance benefits, as determined by the following table:CommentsClose CommentsPermalink

‘If the individual becomesCommentsClose CommentsPermalink

1979CommentsClose CommentsPermalink

--55CommentsClose CommentsPermalink

1980CommentsClose CommentsPermalink

--45CommentsClose CommentsPermalink

1981CommentsClose CommentsPermalink

--35CommentsClose CommentsPermalink

1982CommentsClose CommentsPermalink

--32CommentsClose CommentsPermalink

1983CommentsClose CommentsPermalink

--25CommentsClose CommentsPermalink

1984CommentsClose CommentsPermalink

--20CommentsClose CommentsPermalink

1985CommentsClose CommentsPermalink

--16CommentsClose CommentsPermalink

1986CommentsClose CommentsPermalink

--10CommentsClose CommentsPermalink

1987CommentsClose CommentsPermalink

--3CommentsClose CommentsPermalink

1988CommentsClose CommentsPermalink

--5.CommentsClose CommentsPermalink

‘(C) For purposes of subparagraph (B), the term ‘excess under former law’ means, in the case of any individual, the excess of--CommentsClose CommentsPermalink





‘(i) the applicable former law primary insurance amount, overCommentsClose CommentsPermalink





‘(ii) the amount which would be such individual’s primary insurance amount if computed or recomputed under this section without regard to this paragraph and paragraphs (4), (5), and (6).CommentsClose CommentsPermalink





‘(D) For purposes of subparagraph (C)(i), the term ‘applicable former law primary insurance amount’ means, in the case of any individual, the amount which would be such individual’s primary insurance amount if it were--CommentsClose CommentsPermalink





‘(i) computed or recomputed (pursuant to paragraph (4)(B)(i)) under section 215(a) as in effect in December 1978, orCommentsClose CommentsPermalink





‘(ii) computed or recomputed (pursuant to paragraph (4)(B)(ii)) as provided by subsection (d),CommentsClose CommentsPermalink





(as applicable) and modified as provided by subparagraph (E).CommentsClose CommentsPermalink





‘(E) In determining the amount which would be an individual’s primary insurance amount as provided in subparagraph (D)--CommentsClose CommentsPermalink





‘(i) subsection (b)(4) shall not apply;CommentsClose CommentsPermalink





‘(ii) section 215(b) as in effect in December 1978 shall apply, except that section 215(b)(2)(C) (as then in effect) shall be deemed to provide that an individual’s ‘computation base years’ may include only calendar years in the period after 1950 (or 1936 if applicable) and ending with the calendar year in which such individual attains age 61, plus the 3 calendar years after such period for which the total of such individual’s wages and self-employment income is the largest; andCommentsClose CommentsPermalink





‘(iii) subdivision (I) in the last sentence of paragraph (4) shall be applied as though the words ‘without regard to any increases in that table’ in such subdivision read ‘including any increases in that table’.CommentsClose CommentsPermalink





‘(F) This paragraph shall apply in the case of any individual only if such application results in a primary insurance amount for such individual that is greater than it would be if computed or recomputed under paragraph (4)(B) without regard to this paragraph.CommentsClose CommentsPermalink





‘(G)(i) This paragraph shall apply in the case of any individual subject to any timely election to receive lump sum payments under this subparagraph.CommentsClose CommentsPermalink





‘(ii) A written election to receive lump sum payments under this subparagraph, in lieu of the application of this paragraph to the computation of the primary insurance amount of an individual described in paragraph (4)(B), may be filed with the Commissioner of Social Security in such form and manner as shall be prescribed in regulations of the Commissioner. Any such election may be filed by such individual or, in the event of such individual’s death before any such election is filed by such individual, by any other beneficiary entitled to benefits under section 202 on the basis of such individual’s wages and self-employment income. Any such election filed after December 31, 2009, shall be null and void and of no effect.CommentsClose CommentsPermalink





‘(iii) Upon receipt by the Commissioner of a timely election filed by the individual described in paragraph (4)(B) in accordance with clause (ii)--CommentsClose CommentsPermalink





‘(I) the Commissioner shall certify receipt of such election to the Secretary of the Treasury, and the Secretary of the Treasury, after receipt of such certification, shall pay such individual, from amounts in the Federal Old-Age and Survivors Insurance Trust Fund, a total amount equal to $5,000, in 4 annual lump sum installments of $1,250, the first of which shall be made during fiscal year 2009 not later than July 1, 2009, andCommentsClose CommentsPermalink





‘(II) subparagraph (A) shall not apply in determining such individual’s primary insurance amount.CommentsClose CommentsPermalink





‘(iv) Upon receipt by the Commissioner as of December 31, 2009, of a timely election filed in accordance with clause (ii) by at least one beneficiary entitled to benefits on the basis of the wages and self-employment income of a deceased individual described in paragraph (4)(B), if such deceased individual has filed no timely election in accordance with clause (ii)--CommentsClose CommentsPermalink





‘(I) the Commissioner shall certify receipt of all such elections received as of such date to the Secretary of the Treasury, and the Secretary of the Treasury, after receipt of such certification, shall pay each beneficiary filing such a timely election, from amounts in the Federal Old-Age and Survivors Insurance Trust Fund, a total amount equal to $5,000 (or, in the case of two or more such beneficiaries, such amount distributed evenly among such beneficiaries), in four equal annual lump sum installments, the first of which shall be made during fiscal year 2009 not later than July 1, 2009, andCommentsClose CommentsPermalink





‘(II) solely for purposes of determining the amount of such beneficiary’s benefits, subparagraph (A) shall be deemed not to apply in determining the deceased individual’s primary insurance amount.’.CommentsClose CommentsPermalink





(b) Effective Date and Related Rules-CommentsClose CommentsPermalink





(1) APPLICABILITY OF AMENDMENTS-CommentsClose CommentsPermalink





(A) IN GENERAL- Except as provided in paragraph (2), the amendments made by this Act shall be effective as though they had been included or reflected in section 201 of the Social Security Amendments of 1977.CommentsClose CommentsPermalink





(B) APPLICABILITY- No monthly benefit or primary insurance amount under title II of the Social Security Act shall be increased by reason of such amendments for any month before July 2009.CommentsClose CommentsPermalink





(2) RECOMPUTATION TO REFLECT BENEFIT INCREASES- In any case in which an individual is entitled to monthly insurance benefits under title II of the Social Security Act for June 2009, if such benefits are based on a primary insurance amount computed--CommentsClose CommentsPermalink





(A) under section 215 of such Act as in effect (by reason of the Social Security Amendments of 1977) after December 1978, orCommentsClose CommentsPermalink





(B) under section 215 of such Act as in effect prior to January 1979 by reason of subsection (a)(4)(B) of such section (as amended by the Social Security Amendments of 1977),CommentsClose CommentsPermalink





the Commissioner of Social Security (notwithstanding section 215(f)(1) of the Social Security Act) shall recompute such primary insurance amount so as to take into account the amendments made by this Act.CommentsClose CommentsPermalink