[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2654 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 2654
To improve the retirement security of American families by
strengthening Social Security.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 9, 2019
Ms. Sanchez (for herself, Mr. Pocan, Mr. Lynch, Mr. Cartwright, Mr.
Cohen, Ms. Lee of California, Ms. Schakowsky, Ms. Wild, Ms. Norton, Ms.
Pingree, Ms. McCollum, Mr. Richmond, Ms. Wasserman Schultz, Mr. Smith
of Washington, Mr. Rush, and Mr. Thompson of Mississippi) introduced
the following bill; which was referred to the Committee on Ways and
Means, and in addition to the Committee on Education and Labor, 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 concerned
_______________________________________________________________________
A BILL
To improve the retirement security of American families by
strengthening Social Security.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strengthening Social Security Act of
2019''.
SEC. 2. DETERMINATION OF TAXABLE WAGES AND SELF-EMPLOYMENT INCOME ABOVE
CONTRIBUTION AND BENEFIT BASE AFTER 2020.
(a) Determination of Taxable Wages Above Contribution and Benefit
Base After 2020.--
(1) Amendments to the internal revenue code of 1986.--
Section 3121 of the Internal Revenue Code of 1986 is amended--
(A) in subsection (a)(1), by inserting ``the
applicable percentage (determined under subsection
(c)(1)) of'' before ``that part of the remuneration'';
and
(B) in subsection (c), by striking ``(c) Included
and Excluded Service.--For purposes of this chapter,
if'' and inserting the following:
``(c) Special Rules for Wages and Employment.--
``(1) Applicable percentage of remuneration in determining
taxable wages.--For purposes of subsection (a)(1), the
applicable percentage for a calendar year shall be equal to--
``(A) for 2021, 80 percent,
``(B) for 2022 through 2024, the applicable
percentage under this paragraph for the previous year,
decreased by 20 percentage points, and
``(C) for 2025 and each year thereafter, 0 percent.
``(2) Included and excluded service.--For purposes of this
chapter, if''.
(2) Amendments to the social security act.--Section 209 of
the Social Security Act (42 U.S.C. 409) is amended--
(A) in subsection (a)(1)(I)--
(i) by inserting ``and before 2021'' after
``1974''; and
(ii) by inserting ``and'' after the
semicolon;
(B) in subsection (a)(1), by adding at the end the
following new subparagraph:
``(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 2020
with respect to which such contribution and benefit
base is effective, is paid to such individual during
such calendar year;''; and
(C) by adding at the end the following new
subsection:
``(l) For purposes of subsection (a)(1)(J), the applicable
percentage for a calendar year shall be equal to--
``(1) for 2021, 80 percent,
``(2) for 2022 through 2024, the applicable percentage
under this subsection for the previous year, decreased by 20
percentage points, and
``(3) for 2025 and each year thereafter, 0 percent.''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to remuneration paid in calendar years
after 2020.
(b) Determination of Taxable Self-Employment Income Above
Contribution and Benefit Base After 2020.--
(1) Amendments to the internal revenue code of 1986.--
Section 1402 of the Internal Revenue Code of 1986 is amended--
(A) in subsection (b)(1), by striking ``that part
of the net earnings'' and all that follows through
``minus'' and inserting the following: ``an amount
equal to the applicable percentage (as determined under
subsection (d)(2)) of that part of the net earnings
from self-employment which is in excess of the
difference (not to be less than zero) between (i) an
amount equal to the contribution and benefit base (as
determined under section 230 of the Social Security
Act) which is effective for the calendar year in which
such taxable year begins, and''; and
(B) in subsection (d)--
(i) by striking ``(d) Employee and Wages.--
The term'' and inserting the following:
``(d) Rules and Definitions.--
``(1) Employee and wages.--The term''; and
(ii) by adding at the end the following:
``(2) Applicable percentage of net earnings from self-
employment in determining taxable self-employment income.--For
purposes of subsection (b)(1), the applicable percentage for a
taxable year beginning in any calendar year referred to in such
paragraph shall be equal to--
``(A) for 2021, 80 percent,
``(B) for 2022 through 2024, the applicable
percentage under this paragraph for the previous year,
decreased by 20 percentage points, and
``(C) for 2025 and each year thereafter, 0
percent.''.
(2) Amendments to the social security act.--Section 211 of
the Social Security Act (42 U.S.C. 411) is amended--
(A) in subsection (b)--
(i) in paragraph (1)(I)--
(I) by striking ``or'' after the
semicolon; and
(II) by inserting ``and before
2021'' after ``1974'';
(ii) by redesignating paragraph (2) as
paragraph (3); and
(iii) by inserting after paragraph (1) the
following:
``(2) For any taxable year beginning in any calendar year
after 2020, 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 the difference (not
to be less than zero) between--
``(A) an amount equal to the contribution and
benefit base (as determined under section 230) that is
effective for such calendar year, and
``(B) the amount of the wages paid to such
individual during such taxable year, or''; and
(B) by adding at the end the following:
``(l) For purposes of subsection (b)(2), the applicable percentage
for a taxable year beginning in any calendar year referred to in such
paragraph shall be equal to--
``(1) for 2021, 80 percent,
``(2) for 2022 through 2024, the applicable percentage
under this subsection for the previous year, decreased by 20
percentage points, and
``(3) for 2025 and each year thereafter, 0 percent.''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to taxable years beginning during or
after calendar year 2021.
SEC. 3. ADJUSTMENTS TO BEND POINTS IN DETERMINING PRIMARY INSURANCE
AMOUNT AND INCLUSION OF SURPLUS EARNINGS FOR BENEFIT
DETERMINATIONS.
(a) Adjustments Relating to First Bend Point.--
(1) Increase in first bend point factor.--
(A) In general.--Section 215(a)(1)(A)(i) of the
Social Security Act (42 U.S.C. 415(a)(1)(A)(i)) is
amended by striking ``90 percent'' and inserting ``95
percent''.
(B) Effective date; application rule.--The
amendment made by subparagraph (A) shall apply with
respect to computations or recomputations of primary
insurance amounts made on or after January 1, 2025,
except that section 215(a)(1)(A)(i) of the Social
Security Act shall be applied by making the following
substitutions for ``95 percent'' for computations and
recomputations made in the following calendar years:
(i) for calendar year 2025, by substituting
``91 percent'';
(ii) for calendar year 2026, by
substituting ``92 percent'';
(iii) for calendar year 2027, by
substituting ``93 percent''; and
(iv) for calendar year 2028, by
substituting ``94 percent''.
(2) Increase in first bend point.--Section 215(a)(1)(B) of
such Act (42 U.S.C. 415(a)(1)(B)) is amended--
(A) by redesignating clause (iii) as clause (iv);
and
(B) by inserting after clause (ii) the following
new clause:
``(iii) With respect to computations or recomputations of
primary insurance amounts made on or after January 1, 2025, the
amount determined under clause (i) of this subparagraph for
purposes of subparagraph (A)(i) for such calendar year shall be
increased by--
``(I) for calendar year 2026, 1 percent,
``(II) for each of calendar years 2027 through
2039, the percent determined under this clause for the
preceding year increased by 1 percentage point, and
``(III) for calendar year 2040 and each year
thereafter, 15 percent.''.
(3) Application of increase; recomputations.--The
amendments made by this subsection shall apply with respect to
every individual who becomes entitled to old-age or disability
insurance benefits under title II of the Social Security Act,
or who dies (before becoming so entitled), in any calendar
year. Notwithstanding section 215(f)(1) of the Social Security
Act, the Commissioner of Social Security shall recompute the
primary insurance amount of each such individual on the first
day of each calendar year during the period beginning with
calendar year 2025 and ending with calendar year 2040 to the
extent necessary to carry out the amendments made by this
section.
(b) Inclusion of Surplus Average Indexed Monthly Earnings in
Determination of Primary Insurance Amounts.--Section 215(a)(1)(A) of
the Social Security Act (42 U.S.C. 415(a)(1)(A)) is amended--
(1) in clauses (i), (ii), and (iii), by inserting ``basic''
before ``average indexed monthly earnings'' each place it
appears;
(2) in clause (ii), by striking ``and'' at the end;
(3) in clause (iii), by adding ``and'' at the end; and
(4) by inserting after clause (iii) the following new
clause:
``(iv) 5 percent of the individual's surplus average
indexed monthly earnings,''.
(c) Basic AIME and Surplus AIME.--
(1) Basic aime.--Section 215(b)(1) of such Act (42 U.S.C.
415(b)(1)) is amended--
(A) by inserting ``basic'' before ``average''; and
(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''.
(2) Surplus aime.--
(A) In general.--Section 215(b)(1) of such Act (as
amended by paragraph (1)) is amended--
(i) by redesignating subparagraphs (A) and
(B) as clauses (i) and (ii), respectively;
(ii) by inserting ``(A)'' after ``(b)(1)'';
and
(iii) by adding at the end the following
new subparagraph:
``(B)(i) An individual's surplus average indexed monthly earnings
shall be equal to the quotient obtained by dividing--
``(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)), by
``(II) the number of months in those years.
``(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.''.
(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''.
(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--
(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)'';
(B) by redesignating subparagraph (B) as
subparagraph (C); and
(C) by inserting after subparagraph (A) the
following new subparagraph:
``(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--
``(i) the individual's surplus earnings for such year (as
determined without regard to this subparagraph), and
``(ii) the quotient described in subparagraph (A)(ii).''.
(d) Effective Date.--The amendments made by subsections (b) and (c)
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 2025.
SEC. 4. 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 have attained early
retirement age (as defined under section 216(l)(2) of the Social
Security Act (42 U.S.C. 416(l)(2)) for purposes of an old-age, wife's,
or husband's insurance benefit).
(b) Effective Date.--Subsection (a) shall apply with respect to
calendar months ending on or after June 30 of the calendar year in
which this Act is enacted.
(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out the provisions of
this section.
SEC. 5. COMPUTATION OF COST-OF-LIVING INCREASES FOR SOCIAL SECURITY
BENEFITS.
(a) In General.--Section 215(i) of the Social Security Act (42
U.S.C. 415(i)) is amended--
(1) in paragraph (1)(G), by inserting before the period the
following: ``, and, with respect to any monthly insurance
benefit payable under this title, 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), 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''; and
(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 5(a) of the
Strengthening Social Security Act of 2019,''.
(b) Conforming Amendments in Applicable Former Law.--Section
215(i)(1)(C) of the Social Security 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, with respect to any monthly insurance benefit
payable under this title, 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), 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''.
(c) Effective Date.--The amendments made by this section shall
apply to determinations made by the Commissioner of Social Security
under section 215(i)(2) of the Social Security Act (42 U.S.C.
415(i)(2)) with respect to cost-of-living computation quarters ending
on or after September 30, 2020.
SEC. 6. IMPROVING SOCIAL SECURITY BENEFITS FOR WIDOWS AND WIDOWERS IN
TWO-INCOME HOUSEHOLDS.
(a) In General.--
(1) Widows.--Section 202(e) of the Social Security Act (42
U.S.C. 402(e)) is amended--
(A) in paragraph (1)--
(i) in subparagraph (B), by inserting
``and'' at the end;
(ii) in subparagraph (C)(iii), by striking
``and'' at the end;
(iii) by striking subparagraph (D);
(iv) by redesignating subparagraphs (E) and
(F) as subparagraphs (D) and (E), respectively;
and
(v) in the flush matter following
subparagraph (E)(ii), as so redesignated, by
striking ``or becomes entitled to an old-age
insurance benefit'' and all that follows
through ``such deceased individual,'';
(B) by striking subparagraph (A) in paragraph (2)
and inserting the following:
``(2)(A) Except as provided in subsection (k)(5),
subsection (q), and subparagraph (D) of this paragraph, such
widow's insurance benefit for each month shall be equal to the
greater of--
``(i) subject to paragraph (9), the primary
insurance amount (as determined for purposes of
this subsection after application of
subparagraphs (B) and (C)) of such deceased
individual, or
``(ii) subject to paragraphs (9) and (10),
in the case of a fully insured widow or
surviving divorced wife, 75 percent of the sum
of any old-age or disability insurance benefit
for which the widow or the surviving divorced
wife is entitled for such month and the primary
insurance amount (as determined for purposes of
this subsection after application of
subparagraphs (B) and (C)) of such deceased
individual.'';
(C) in paragraph (5)--
(i) in subparagraph (A), by striking
``paragraph (1)(F)'' and inserting ``paragraph
(1)(E)''; and
(ii) in subparagraph (B), by striking
``paragraph (1)(F)(i)'' and inserting
``paragraph (1)(E)(i)''; and
(D) by adding at the end the following new
paragraphs:
``(9) For purposes of clauses (i) and (ii) of paragraph
(2)(A), in the case of a surviving divorced wife, the amount
determined under either such clause (and, for purposes of
clause (ii) of paragraph (2)(A), as determined after
application of paragraph (10)) shall be equal to the applicable
percentage (as determined under section 202(b)(2)(B)) of such
amount (as determined before application of this paragraph but
after application of subsection (k)(3)).
``(10) For purposes of paragraph (2)(A)(ii), the amount
determined under such paragraph shall not exceed the primary
insurance amount for such month of a hypothetical individual--
``(A) who became entitled to old-age insurance
benefits upon attaining early retirement age during the
month in which the deceased individual referred to in
paragraph (1) became entitled to old-age or disability
insurance benefits, or died (before becoming entitled
to such benefits), and
``(B) to whom wages and self-employment income were
credited in each of such hypothetical individual's
elapsed years (within the meaning of section
215(b)(2)(B)(iii)) in an amount equal to the national
average wage index (as described in section 209(k)(1))
for each such year.''.
(2) Widowers.--Section 202(f) of the Social Security Act
(42 U.S.C. 402(f)) is amended--
(A) in paragraph (1)--
(i) in subparagraph (B), by inserting
``and'' at the end;
(ii) in subparagraph (C)(iii), by striking
``and'' at the end;
(iii) by striking subparagraph (D);
(iv) by redesignating subparagraphs (E) and
(F) as subparagraphs (D) and (E), respectively;
and
(v) in the flush matter following
subparagraph (E)(ii), as so redesignated, by
striking ``or becomes entitled to an old-age
insurance benefit'' and all that follows
through ``such deceased individual,'';
(B) by striking subparagraph (A) in paragraph (2)
and inserting the following:
``(2)(A) Except as provided in subsection (k)(5),
subsection (q), and subparagraph (D) of this paragraph, such
widower's insurance benefit for each month shall be equal to
the greater of--
``(i) subject to paragraph (9), the primary
insurance amount (as determined for purposes of
this subsection after application of
subparagraphs (B) and (C)) of such deceased
individual, or
``(ii) subject to paragraphs (9) and (10),
in the case of a fully insured widower or
surviving divorced husband, 75 percent of the
sum of any old-age or disability insurance
benefit for which the widower or the surviving
divorced husband is entitled for such month and
the primary insurance amount (as determined for
purposes of this subsection after application
of subparagraphs (B) and (C)) of such deceased
individual.'';
(C) in paragraph (5)--
(i) in subparagraph (A), by striking
``paragraph (1)(F)'' and inserting ``paragraph
(1)(E)''; and
(ii) in subparagraph (B), by striking
``paragraph (1)(F)(i)'' and inserting
``paragraph (1)(E)(i)''; and
(D) by adding at the end the following new
paragraphs:
``(9) For purposes of clauses (i) and (ii) of paragraph
(2)(A), in the case of a surviving divorced husband, the amount
determined under either such clause (and, for purposes of
clause (ii) of paragraph (2)(A), as determined after
application of paragraph (10)) shall be equal to the applicable
percentage (as determined under section 202(c)(2)(B)) of such
amount (as determined before application of this paragraph but
after application of subsection (k)(3)).
``(10) For purposes of paragraph (2)(A)(ii), the amount
determined under such paragraph shall not exceed the primary
insurance amount for such month of a hypothetical individual--
``(A) who became entitled to old-age insurance
benefits upon attaining early retirement age during the
month in which the deceased individual referred to in
paragraph (1) became entitled to old-age or disability
insurance benefits, or died (before becoming entitled
to such benefits), and
``(B) to whom wages and self-employment income were
credited in each of such hypothetical individual's
elapsed years (within the meaning of section
215(b)(2)(B)(iii)) in an amount equal to the national
average wage index (as described in section 209(k)(1))
for each such year.''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to widow's and widower's insurance benefits payable
for months after December 2020.
SEC. 7. HOLDING SSI BENEFICIARIES HARMLESS.
For purposes of determining the income of an individual to
establish eligibility for, and the amount of, benefits payable under
title XVI of the Social Security Act, the amount of any benefit to
which the individual is entitled under title II of such Act shall be
deemed not to exceed the amount of the benefit that would be determined
for such individual under such title as in effect on the day before the
date of the enactment of this Act.
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