S 3651 ISCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

S. 3651CommentsClose CommentsPermalink

To amend title II of the Social Security Act and the Internal Revenue Code of 1986 to make improvements in the old-age, survivors, and disability insurance program, to provide for cash relief for years for which annual COLAs do not take effect under certain cash benefit programs, and to provide for Social Security benefit protection.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

December 4, 2012CommentsClose CommentsPermalink

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

A BILLCommentsClose CommentsPermalink

To amend title II of the Social Security Act and the Internal Revenue Code of 1986 to make improvements in the old-age, survivors, and disability insurance program, to provide for cash relief for years for which annual COLAs do not take effect under certain cash benefit programs, and to provide for Social Security benefit protection.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 AND TABLE OF CONTENTS.

(a) Short Title- This Act may cited as the ‘Protecting and Preserving Social Security Act’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title and table of contents.CommentsClose CommentsPermalink

TITLE I--COST-OF-LIVING INCREASES

Sec. 101. Consumer price index for elderly consumers.CommentsClose CommentsPermalink





Sec. 102. Computation of cost-of-living increases.CommentsClose CommentsPermalink

TITLE II--CONTRIBUTION AND BENEFIT FAIRNESS

Sec. 201. Determination of wages and self-employment income above contribution and benefit base after 2012.CommentsClose CommentsPermalink





Sec. 202. Inclusion of surplus earnings in social security benefit formula.CommentsClose CommentsPermalink

TITLE I--COST-OF-LIVING INCREASESCommentsClose CommentsPermalink

SEC. 101. CONSUMER PRICE INDEX FOR ELDERLY CONSUMERS.

(a) In General- The Bureau of Labor Statistics of the Department of Labor shall prepare and publish an index for each calendar month to be known as the ‘Consumer Price Index for Elderly Consumers’ that indicates changes over time in expenditures for consumption which are typical for individuals in the United States who are 62 years of age or older.CommentsClose CommentsPermalink





(b) Effective Date- Subsection (a) shall apply with respect to calendar months ending on or after July 31 of the calendar year following the calendar year in which this Act is enacted.CommentsClose CommentsPermalink





(c) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out the provisions of this section.CommentsClose CommentsPermalink

SEC. 102. COMPUTATION OF COST-OF-LIVING INCREASES.

(a) In General- Section 215(i) of the Social Security Act (42 U.S.C. 415(i)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (1)(G), by inserting before the period the following: ‘, and, solely with respect to any monthly insurance benefit payable under this title to an individual who has attained age 62, effective for adjustments under this subsection to the primary insurance amount on which such benefit is based (or to any such benefit under section 227 or 228) occurring after such individual attains such age, the applicable Consumer Price Index shall be deemed to be the Consumer Price Index for Elderly Consumers and such primary insurance amount shall be deemed adjusted under this subsection using such Index’; andCommentsClose CommentsPermalink





(2) in paragraph (4), by striking ‘and by section 9001’ and inserting ‘, by section 9001’, and by inserting after ‘1986,’ the following: ‘and by section 102 of the Protecting and Preserving Social Security Act,’.CommentsClose CommentsPermalink





(b) Conforming Amendments in Applicable Former Law- Section 215(i)(1)(C) of such Act, as in effect in December 1978 and applied in certain cases under the provisions of such Act in effect after December 1978, is amended by inserting before the period the following: ‘, and, solely with respect to any monthly insurance benefit payable under this title to an individual who has attained age 62, effective for adjustments under this subsection to the primary insurance amount on which such benefit is based (or to any such benefit under section 227 or 228) occurring after such individual attains such age, the applicable Consumer Price Index shall be deemed to be the Consumer Price Index for Elderly Consumers and such primary insurance amount shall be deemed adjusted under this subsection using such Index’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by subsection (a) shall apply to determinations made with respect to cost-of-living computation quarters (as defined in section 215(i)(1)(B) of the Social Security Act (42 U.S.C. 415(i)(1)(B))) ending on or after September 30 of the second calendar year following the calendar year in which this Act is enacted.CommentsClose CommentsPermalink

TITLE II--CONTRIBUTION AND BENEFIT FAIRNESSCommentsClose CommentsPermalink

SEC. 201. DETERMINATION OF WAGES AND SELF-EMPLOYMENT INCOME ABOVE CONTRIBUTION AND BENEFIT BASE AFTER 2012.

(a) Determination of Wages Above Contribution and Benefit Base After 2012-CommentsClose CommentsPermalink





(1) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986- Section 3121 of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(A) in subsection (a)(1), by inserting ‘the applicable percentage (determined under subsection (c)(1)) of’ before ‘that part of the remuneration’; andCommentsClose CommentsPermalink





(B) in subsection (c), by striking ‘(c) Included and Excluded Service- For purposes of this chapter, if’ and inserting the following:CommentsClose CommentsPermalink





‘(c) Special Rules for Wages and Employment-CommentsClose CommentsPermalink





‘(1) APPLICABLE PERCENTAGE OF REMUNERATION IN DETERMINING WAGES- For purposes of paragraph (1) of subsection (a), the applicable percentage for a calendar year, in connection with any calendar year referred to in such subparagraph, shall be the percentage determined in accordance with the following table:CommentsClose CommentsPermalink

The applicableCommentsClose CommentsPermalink

‘In the case of:CommentsClose CommentsPermalink

percentage is:CommentsClose CommentsPermalink

Calendar year 2013CommentsClose CommentsPermalink

--86%CommentsClose CommentsPermalink

Calendar year 2014CommentsClose CommentsPermalink

--71%CommentsClose CommentsPermalink

Calendar year 2015CommentsClose CommentsPermalink

--57%CommentsClose CommentsPermalink

Calendar year 2016CommentsClose CommentsPermalink

--43%CommentsClose CommentsPermalink

Calendar year 2017CommentsClose CommentsPermalink

--29%CommentsClose CommentsPermalink

Calendar year 2018CommentsClose CommentsPermalink

--14%CommentsClose CommentsPermalink

Calendar years after 2018CommentsClose CommentsPermalink

--0%.CommentsClose CommentsPermalink

‘(2) INCLUDED AND EXCLUDED SERVICE- For purposes of this chapter, if.’.CommentsClose CommentsPermalink





(2) AMENDMENTS TO THE SOCIAL SECURITY ACT- Section 209 of the Social Security Act (42 U.S.C. 409) is amended--CommentsClose CommentsPermalink





(A) in subsection (a)(1)(I)--CommentsClose CommentsPermalink





(i) by inserting ‘and before 2013’ after ‘1974’; andCommentsClose CommentsPermalink





(ii) by inserting ‘and’ after the semicolon;CommentsClose CommentsPermalink





(B) in subsection (a)(1), by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(J) The applicable percentage (determined under subsection (l)) of that part of remuneration which, after remuneration (other than remuneration referred to in the succeeding subsections of this section) equal to the contribution and benefit base (determined under section 230) with respect to employment has been paid to an individual during any calendar year after 2012 with respect to which such contribution and benefit base is effective, is paid to such individual during such calendar year;’; andCommentsClose CommentsPermalink





(C) by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(l) For purposes of subparagraph (J) of subsection (a)(1), the applicable percentage for a calendar year, in connection with any calendar year referred to in such subparagraph, shall be the percentage determined in accordance with the following table:CommentsClose CommentsPermalink

The applicableCommentsClose CommentsPermalink

‘In the case of:CommentsClose CommentsPermalink

percentage is:CommentsClose CommentsPermalink

Calendar year 2013CommentsClose CommentsPermalink

--86%CommentsClose CommentsPermalink

Calendar year 2014CommentsClose CommentsPermalink

--71%CommentsClose CommentsPermalink

Calendar year 2015CommentsClose CommentsPermalink

--57%CommentsClose CommentsPermalink

Calendar year 2016CommentsClose CommentsPermalink

--43%CommentsClose CommentsPermalink

Calendar year 2017CommentsClose CommentsPermalink

--29%CommentsClose CommentsPermalink

Calendar year 2018CommentsClose CommentsPermalink

--14%CommentsClose CommentsPermalink

Calendar years after 2018CommentsClose CommentsPermalink

--0%.’.CommentsClose CommentsPermalink

(3) EFFECTIVE DATE- The amendments made by this subsection shall apply with respect to remuneration paid in calendar years after 2012.CommentsClose CommentsPermalink





(b) Determination of Self-Employment Income Above Contribution and Benefit Base After 2012-CommentsClose CommentsPermalink





(1) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986- Section 1402 of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(A) in subsection (b)(1), by inserting ‘an amount equal to the applicable percentage (as determined under subsection (d)(2)) of’ before ‘that part of the net earnings from self-employment’; andCommentsClose CommentsPermalink





(B) in subsection (d)--CommentsClose CommentsPermalink





(i) by striking ‘(d) Employee and Wages- The term’ and inserting the following:CommentsClose CommentsPermalink





‘(d) Rules and Definitions-CommentsClose CommentsPermalink





‘(1) EMPLOYEE AND WAGES- The term’; andCommentsClose CommentsPermalink





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





‘(2) APPLICABLE PERCENTAGE OF NET EARNINGS FROM SELF-EMPLOYMENT IN DETERMINING SELF-EMPLOYMENT INCOME- For purposes of paragraph (1) of subsection (b), the applicable percentage for a taxable year beginning in any calendar year referred to in such paragraph shall be the percentage determined in accordance with the following table:CommentsClose CommentsPermalink

The applicableCommentsClose CommentsPermalink

‘In the case of:CommentsClose CommentsPermalink

percentage is:CommentsClose CommentsPermalink

Calendar year 2013CommentsClose CommentsPermalink

--86%CommentsClose CommentsPermalink

Calendar year 2014CommentsClose CommentsPermalink

--71%CommentsClose CommentsPermalink

Calendar year 2015CommentsClose CommentsPermalink

--57%CommentsClose CommentsPermalink

Calendar year 2016CommentsClose CommentsPermalink

--43%CommentsClose CommentsPermalink

Calendar year 2017CommentsClose CommentsPermalink

--29%CommentsClose CommentsPermalink

Calendar year 2018CommentsClose CommentsPermalink

--14%CommentsClose CommentsPermalink

Calendar years after 2018CommentsClose CommentsPermalink

--0%.’.CommentsClose CommentsPermalink

(2) AMENDMENTS TO THE SOCIAL SECURITY ACT- Section 211 of the Social Security Act (42 U.S.C. 411) is amended--CommentsClose CommentsPermalink





(A) in subsection (b)(1)(I)--CommentsClose CommentsPermalink





(i) by striking ‘or’ after the semicolon; andCommentsClose CommentsPermalink





(ii) by inserting ‘and before 2013’ after ‘1974’;CommentsClose CommentsPermalink





(B) in subsection (b)--CommentsClose CommentsPermalink





(i) by redesignating paragraph (2) as paragraph (3); andCommentsClose CommentsPermalink





(ii) by inserting after paragraph (1) the following:CommentsClose CommentsPermalink





‘(2) For any taxable year beginning in any calendar year after 2012, an amount equal to the applicable percentage (as determined under subsection (l)) of that part of net earnings from self-employment which is in excess of (A) an amount equal to the contribution and benefit base (determined under section 230) that is effective for such calendar year, minus (B) the amount of the wages paid to such individual during such taxable year; or’; andCommentsClose CommentsPermalink





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





‘(l) For purposes of paragraph (2) of subsection (b), the applicable percentage for a taxable year beginning in any calendar year referred to in such paragraph, shall be the percentage determined in accordance with the following table:CommentsClose CommentsPermalink

The applicableCommentsClose CommentsPermalink

‘In the case of:CommentsClose CommentsPermalink

percentage is:CommentsClose CommentsPermalink

Calendar year 2013CommentsClose CommentsPermalink

--86%CommentsClose CommentsPermalink

Calendar year 2014CommentsClose CommentsPermalink

--71%CommentsClose CommentsPermalink

Calendar year 2015CommentsClose CommentsPermalink

--57%CommentsClose CommentsPermalink

Calendar year 2016CommentsClose CommentsPermalink

--43%CommentsClose CommentsPermalink

Calendar year 2017CommentsClose CommentsPermalink

--29%CommentsClose CommentsPermalink

Calendar year 2018CommentsClose CommentsPermalink

--14%CommentsClose CommentsPermalink

Calendar years after 2018CommentsClose CommentsPermalink

--0%.’.CommentsClose CommentsPermalink

(3) EFFECTIVE DATE- The amendments made by this subsection shall apply with respect to taxable years beginning during or after calendar year 2013.CommentsClose CommentsPermalink

SEC. 202. INCLUSION OF SURPLUS EARNINGS IN SOCIAL SECURITY BENEFIT FORMULA.

(a) Inclusion of Surplus Average Indexed Monthly Earnings in Determination of Primary Insurance Amounts-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 215(a)(1)(A) of the Social Security Act (42 U.S.C. 415(a)(1)(A)) is amended--CommentsClose CommentsPermalink





(A) in clauses (i), (ii), and (iii), by inserting ‘basic’ before ‘average indexed monthly earnings’ each place it appears;CommentsClose CommentsPermalink





(B) in clause (ii), by striking ‘and’ at the end; andCommentsClose CommentsPermalink





(C) by inserting after clause (iii) the following new clauses:CommentsClose CommentsPermalink





‘(iv) 3 percent of the individual’s surplus average indexed monthly earnings to the extent such surplus average indexed monthly earnings do not exceed the excess of the amount established for purposes of this clause by subparagraph (B) over 1/12 of the contribution and benefit base for the last of such individual’s computation base years, andCommentsClose CommentsPermalink





‘(v) 0.25 percent of the sum of the individual’s surplus average indexed monthly earnings plus 1/12 of the contribution and benefit base for the last of such individual’s computation base years, to the extent such sum exceeds the amount established for purposes of clause (iv) by subparagraph (B).’.CommentsClose CommentsPermalink





(2) BEND POINT FOR SURPLUS EARNINGS- Section 215(a)(1)(B) of such Act (42 U.S.C. 415(a)(1)(B)) is amended--CommentsClose CommentsPermalink





(A) in clause (ii), by striking ‘the amounts so established’ and inserting ‘the amounts established for purposes of clauses (i) and (ii) of subparagraph (A)’;CommentsClose CommentsPermalink





(B) by redesignating clause (iii) as clause (v);CommentsClose CommentsPermalink





(C) in clause (v) (as redesignated), by inserting ‘or (iv)’ after ‘clause (ii)’; andCommentsClose CommentsPermalink





(D) by inserting after clause (ii) the following new clauses:CommentsClose CommentsPermalink





‘(iii) For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming eligible for such benefits), in the calendar year 2013, the amount established for purposes of clause (iv) of subparagraph (A) shall be $11,933.CommentsClose CommentsPermalink





‘(iv) For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming eligible for such benefits), in any calendar year after 2013, the amount established for purposes of clause (iv) of subparagraph (A) shall equal the product of the amount established with respect to the calendar year 2013 under clause (iii) of this subparagraph and the quotient obtained by dividing--CommentsClose CommentsPermalink





‘(I) the national average wage index (as defined in section 209(k)(1)) for the second calendar year preceding the calendar year for which the determination is made, byCommentsClose CommentsPermalink





‘(II) the national average wage index (as so defined) for 2011.’.CommentsClose CommentsPermalink





(b) Basic AIME and Surplus AIME-CommentsClose CommentsPermalink





(1) BASIC AIME- Section 215(b)(1) of such Act (42 U.S.C. 415(b)(1)) is amended--CommentsClose CommentsPermalink





(A) by inserting ‘basic’ before ‘average’; andCommentsClose CommentsPermalink





(B) in subparagraph (A), by striking ‘paragraph (3)’ and inserting ‘paragraph (3)(A)’ and by inserting before the comma the following: ‘to the extent such total does not exceed the contribution and benefit base for the applicable year’.CommentsClose CommentsPermalink





(2) SURPLUS AIME-CommentsClose CommentsPermalink





(A) IN GENERAL- Section 215(b)(1) of such Act (as amended by paragraph (1)) is amended--CommentsClose CommentsPermalink





(i) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively;CommentsClose CommentsPermalink





(ii) by inserting ‘(A)’ after ‘(b)(1)’; andCommentsClose CommentsPermalink





(iii) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(B)(i) An individual’s surplus average indexed monthly earnings shall be equal to the quotient obtained by dividing--CommentsClose CommentsPermalink





‘(I) the total (after adjustment under paragraph (3)(B)) of such individual’s surplus earnings (determined under clause (ii)) for such individual’s benefit computation years (determined under paragraph (2)), byCommentsClose CommentsPermalink





‘(II) the number of months in those years.CommentsClose CommentsPermalink





‘(ii) For purposes of clause (i) and paragraph (3)(B), an individual’s surplus earnings for a benefit computation year are the total of such individual’s wages paid in and self-employment income credited to such benefit computation year, to the extent such total (before adjustment under paragraph (3)(B)) exceeds the contribution and benefit base for such year.’.CommentsClose CommentsPermalink





(B) CONFORMING AMENDMENT- The heading for section 215(b) of such Act is amended by striking ‘Average Indexed Monthly Earnings’ and inserting ‘Basic Average Indexed Monthly Earnings; Surplus Average Indexed Monthly Earnings’.CommentsClose CommentsPermalink





(3) ADJUSTMENT OF SURPLUS EARNINGS FOR PURPOSES OF DETERMINING SURPLUS AIME- Section 215(b)(3) of such Act (42 U.S.C. 415(b)(3)) is amended--CommentsClose CommentsPermalink





(A) in subparagraph (A), by striking ‘subparagraph (B)’ and inserting ‘subparagraph (C)’ and by inserting ‘and determination of basic average indexed monthly income’ after ‘paragraph (2)’;CommentsClose CommentsPermalink





(B) by redesignating subparagraph (B) as subparagraph (C); andCommentsClose CommentsPermalink





(C) by inserting after subparagraph (A) the following new subparagraph:CommentsClose CommentsPermalink





‘(B) For purposes of determining under paragraph (1)(B) an individual’s surplus average indexed monthly earnings, the individual’s surplus earnings (described in paragraph (2)(B)(ii)) for a benefit computation year shall be deemed to be equal to the product of--CommentsClose CommentsPermalink





‘(i) the individual’s surplus earnings for such year (as determined without regard to this subparagraph), andCommentsClose CommentsPermalink





‘(ii) the quotient described in subparagraph (A)(ii).’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply with respect to individuals who initially become eligible (within the meaning of section 215(a)(3)(B) of the Social Security Act) for old-age or disability insurance benefits under title II of the Social Security Act, or who die (before becoming eligible for such benefits), in any calendar year after 2012.CommentsClose CommentsPermalink