[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3234 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 3234
To adjust the normal and early retirement ages for receipt of benefits
under the Social Security program, increase the maximum age for delayed
retirement credit, and provide for progressive price indexing of
benefits.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 28, 2020
Mr. Paul introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To adjust the normal and early retirement ages for receipt of benefits
under the Social Security program, increase the maximum age for delayed
retirement credit, and provide for progressive price indexing of
benefits.
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 ``Social Security Solvency and
Sustainability Act''.
SEC. 2. ADJUSTMENT TO NORMAL AND EARLY RETIREMENT AGE.
Section 216(l) of the Social Security Act (42 U.S.C. 416(l)) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (D), by striking ``and'' at the
end;
(B) in subparagraph (E), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
subparagraphs:
``(F) with respect to an individual who--
``(i) attains 62 years of age after
December 31, 2029, and before January 1, 2037,
such individual's early retirement age (as
determined under paragraph (2)(A)(ii)) plus 60
months; or
``(ii) receives a benefit described in
paragraph (2)(B) and attains 60 years of age
after December 31, 2029, and before January 1,
2037, 67 years plus the number of months in the
age increase factor (as determined under
paragraph (5)(A)) for the calendar year in
which such individual attains 60 years of age;
``(G) with respect to an individual who--
``(i) attains 62 years of age after
December 31, 2036, and before January 1, 2038,
69 years of age; or
``(ii) receives a benefit described in
paragraph (2)(B) and attains 60 years of age
after December 31, 2036, and before January 1,
2038, 69 years of age;
``(H) with respect to an individual who--
``(i) attains 62 years of age after
December 31, 2037, and before January 1, 2041,
67 years of age plus the number of months in
the age increase factor (as determined under
paragraph (5)(B)); or
``(ii) receives a benefit described in
paragraph (2)(B) and attains 60 years of age
after December 31, 2037, and before January 1,
2041, 67 years of age plus the number of months
in the age increase factor (as determined under
paragraph (5)(A));
``(I) with respect to an individual who--
``(i) attains 62 years of age after
December 31, 2040, and before January 1, 2042,
70 years of age; or
``(ii) receives a benefit described in
paragraph (2)(B) and attains 60 years of age
after December 31, 2040, and before January 1,
2042, 70 years of age; and
``(J) with respect to an individual who--
``(i) attains 62 years of age after
December 31, 2041, 70 years of age plus the
number of months in the age increase factor (as
determined under paragraph (6)); or
``(ii) receives a benefit described in
paragraph (2)(B) and attains 60 years of age
after December 31, 2041, 70 years of age plus
the number of months in the age increase factor
(as determined under paragraph (6)).'';
(2) by amending paragraph (2) to read as follows:
``(2) The term `early retirement age' means--
``(A) in the case of an old-age, wife's, or
husband's insurance benefit--
``(i) 62 years of age with respect to an
individual who attains such age before January
1, 2030;
``(ii) with respect to an individual who
attains 62 years of age after December 31,
2029, and before January 1, 2037, 62 years of
age plus the number of months in the age
increase factor (as determined under paragraph
(4)) for the calendar year in which such
individual attains 62 years of age; and
``(iii) with respect to an individual who
attains age 62 after December 31, 2036, 64
years of age; or
``(B) in the case of a widow's or widower's
insurance benefit, 60 years of age.''; and
(3) by adding at the end the following new paragraphs:
``(4) For purposes of paragraph (2)(A)(ii), the age
increase factor shall be equal to three-twelfths of the number
of months in the period beginning with January 2030 and ending
with December of the year in which the individual attains 62
years of age.
``(5) The age increase factor shall be equal to three-
twelfths of the number of months in the period beginning with
January 2030 and ending with December of the year in which--
``(A) for purposes of paragraphs (1)(F)(ii) and
(1)(H)(ii), the individual attains 60 years of age; or
``(B) for purposes of paragraph (1)(H)(i), the
individual attains 62 years of age.
``(6) The Commissioner of Social Security shall determine
(using reasonable actuarial assumptions) and publish on or
before November 1 of each calendar year after 2040 the number
of months (rounded, if not a multiple of one month, to the next
lower multiple of one month) by which life expectancy as of
October 1 of such calendar year of an individual attaining
early retirement age on such October 1 exceeds the life
expectancy as of October 1, 2041, of an individual attaining
early retirement age on October 1, 2041. With respect to an
individual who attains early retirement in the calendar year
following any calendar year in which a determination is made
under this paragraph, the age increase factor shall be the
number of months determined under this paragraph as of October
1 of such calendar year in which such determination is made.''.
SEC. 3. INCREASE IN MAXIMUM AGE FOR DELAYED RETIREMENT CREDIT.
(a) In General.--Subsection (w) of section 202 of the Social
Security Act (42 U.S.C. 402) is amended--
(1) in paragraphs (2)(A) and (3), by striking ``age 70''
each place it appears and inserting ``the maximum delayed
retirement age (as determined pursuant to paragraph (7))'';
(2) by adding at the end the following new paragraph:
``(7) For purposes of paragraphs (2)(A) and (3), the
`maximum delayed retirement age' shall be equal to--
``(A) during the period before January 1, 2030, 70
years of age for an individual who has attained early
retirement age (as determined under section 216(l)(2))
during such period; and
``(B) during the period after December 31, 2029,
the sum of--
``(i) the retirement age for such calendar
year, as determined under section 216(l)(1),
for an individual who has attained age 62 (for
purposes of section 216(l)(2)(A)) or who has
attained age 60 (for purposes of section
216(l)(2)(B)) during such calendar year; and
``(ii) 3 years.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on January 1, 2030.
SEC. 4. PROGRESSIVE INDEXING OF BENEFITS FOR OLD-AGE, WIFE'S, AND
HUSBAND'S INSURANCE BENEFITS.
(a) In General.--Section 215(a) of the Social Security Act (42
U.S.C. 415(a)) is amended--
(1) by striking ``The'' in paragraph (1)(A) and inserting
``In the case of any benefit other than an applicable benefit
to which paragraph (2) applies, the''; and
(2) by redesignating paragraphs (2) through (7) as
paragraphs (3) through (8), respectively, and by inserting
after paragraph (1) the following new paragraph:
``(2)(A) In the case of an applicable benefit with respect to any
individual who initially becomes eligible for old-age insurance
benefits or who dies (before becoming eligible for such benefits) in
calendar year 2027 or later, the primary insurance amount of the
individual shall be equal to the sum of--
``(i) 90 percent of the individual's average indexed
monthly earning (determined under subsection (b)) to the extent
that such earnings do not exceed the amount established for
purposes of paragraph (1)(A)(i) by paragraph (1)(B);
``(ii) 32 percent of the individual's average indexed
monthly earnings to the extent that such earnings exceed the
amount established for purposes of paragraph (1)(A)(i) by
paragraph (1)(B) but do not exceed the amount established for
purposes of this clause by subparagraph (B);
``(iii) 32 percent (reduced as provided in subparagraph
(C)) of the individual's average indexed monthly earnings to
the extent that such earnings exceed the amount established for
purposes of clause (ii) but do not exceed the amount
established for purposes of paragraph (1)(A)(ii) by paragraph
(1)(B); and
``(iv) 15 percent (reduced as provided in subparagraph (C))
of the individual's average indexed monthly earnings to the
extent that such earnings exceed the amount established for
purposes of paragraph (1)(A)(ii) by paragraph (1)(B).
``(B)(i) For purposes of subparagraph (A)(ii), the amount
established under this subparagraph for calendar year 2025 shall be the
level of average indexed monthly earnings determined by the Chief
Actuary of the Social Security Administration under clause (ii) as
being at the 40th percentile for the period of calendar years 2016
through 2018.
``(ii) For purposes of clause (i), the average indexed monthly
earnings for the period of calendar years 2016 through 2018 shall be
determined by--
``(I) determining the average indexed monthly earnings for
each individual who initially became eligible for old-age
insurance benefits or who died (before becoming eligible for
such benefits) during such period, except that in determining
such average indexed monthly earnings under subsection (b),
subsection (b)(3)(A)(ii)(I) shall be applied by substituting
calendar year 2013 for the second calendar year described in
such subsection; and
``(II) multiplying the amount determined for each
individual under subclause (I) by the quotient obtained by
dividing the national average wage index (as defined in section
209(k)(1)) for the calendar year 2025 by such index for the
calendar year 2013.
``(iii) For purposes of subparagraph (A)(ii), the amount
established under this subparagraph for any calendar year after 2027
shall be equal to the product of the amount in effect under clause (i)
with respect to calendar year 2027 and the quotient obtained by
dividing--
``(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 being made; by
``(II) the national average wage index (as so defined) for
2025.
``(iv) The amount established under this subparagraph for any
calendar year shall be rounded to the nearest $1, except that any
amount so established which is a multiple of $0.50 but not of $1 shall
be rounded to the next higher $1.
``(C)(i) Except as provided in clause (ii), in the case of any
calendar year after 2026, each of the percentages to which this
subparagraph applies by reason of clauses (iii) or (iv) of subparagraph
(A) shall be a percentage equal to such percentage multiplied by the
quotient obtained by dividing--
``(I) the difference of the maximum CPI-indexed benefit
amount for such year over the amount determined under this
paragraph for an individual whose average indexed monthly
earnings are equal to the amount established for purposes of
subparagraph (A)(ii) for such year; by
``(II) the difference of the maximum wage-indexed benefit
amount for such year over the amount determined under this
paragraph for an individual whose average indexed monthly
earnings are equal to the amount established for purposes of
subparagraph (A)(ii) for such year.
``(ii) In the case of any calendar year after 2064, clause (i)
shall not apply and each of the percentages to which this subparagraph
applies by reason of clause (iii) or (iv) of subparagraph (A) shall be
a percentage equal to the percentage determined under this subparagraph
for the preceding year (determined after the application of this
subparagraph).
``(iii) For purposes of clause (i), the maximum wage-indexed
benefit amount for any calendar year shall be equal to the amount
determined under this paragraph (determined without regard to any
reduction under this subparagraph) for an individual with wages paid in
and self-employment income credited to each computation base year in an
amount equal to the contribution and benefit base for each calendar
year.
``(iv) For purposes of clause (i), the maximum CPI-indexed benefit
amount for any calendar year shall be an amount equal to the amount
determined under clause (iii) for such year multiplied by a fraction--
``(I) the numerator of which is the ratio (rounded to the
nearest one-thousandth of 1 percent) of the Consumer Price
Index for the second preceding year to such index for 2024; and
``(II) the denominator of which is the ratio (rounded to
the nearest one-thousandth of 1 percent) of the national wage
index (as defined in section 209(k)(1)) for the second year
preceding such year to such index for 2024.
``(D) For purposes of this paragraph, rules similar to the rules of
subparagraphs (C) and (D) of paragraph (1) shall apply.
``(E) For purposes of this paragraph, the term `applicable benefit'
means any benefit under section 202 other than--
``(i) a child's insurance benefit under section 202(d) with
respect to a child of an individual who has died; and
``(ii) a mother's and father's insurance benefit under
section 202(g).''.
(b) Treatment of Disabled Beneficiaries.--Section 215(a) of such
Act (as amended by subsection (a)) is amended further by adding at the
end the following new paragraph:
``(9)(A) Notwithstanding the preceding provisions of this
subsection, in the case of an individual who has or has had a period of
disability and who initially becomes eligible for old-age insurance
benefits or who dies (before becoming eligible for such benefits) in
any calendar year in or after 2027, the primary insurance amount of
such individual shall be the sum of--
``(i) the amount determined under subparagraph (B); and
``(ii) the product derived by multiplying--
``(I) the excess of the amount determined under
subparagraph (C) over the amount determined under
subparagraph (B); by
``(II) the adjustment factor for such individual
determined under subparagraph (D).
``(B) The amount determined under this subparagraph is the amount
of such individual's primary insurance amount as determined under this
section without regard to this paragraph.
``(C) The amount determined under this subparagraph is the amount
of such individual's primary insurance amount as determined under this
section as in effect with respect to individuals becoming eligible for
old-age or disability insurance benefits under section 202(a) on the
date of the enactment of the Social Security Solvency and
Sustainability Act.
``(D) The adjustment factor determined under this subparagraph for
any individual is the ratio (not greater than 1) of--
``(i) the total number of months during which such
individual is under a disability (as defined in section 223(d))
during the period beginning on the date the individual attains
age 22 and ending on the first day of such individual's first
month of eligibility for old-age insurance benefits under
section 202(a) (or, if earlier, the month of such individual's
death); to
``(ii) the number of months during the period beginning on
the date the individual attains age 22 and ending on the first
day of such individual's first month of eligibility for old-age
insurance benefits under section 202(a) (or, if earlier, the
month of such individual's death).''.
(c) Conforming Amendments.--
(1) Subsections (e)(2)(B)(i)(I) and (f)(2)(B)(i)(I) of
section 202 of the Social Security Act are each amended by
inserting ``or section 215(a)(2)(B)(iii)'' after ``section
215(a)(1)(B)(i) and (ii)''.
(2) Section 203(a)(10) of such Act is amended--
(A) in subparagraph (A)(i), by striking
``215(a)(2)(B)(i)'' and inserting ``215(a)(3)(B)(i)'';
(B) in subparagraph (A)(ii), by striking
``215(a)(2)(C)'' and inserting ``215(a)(3)(C)''; and
(C) in subparagraph (B)(ii), by striking
``215(a)(2)'' and inserting ``215(a)(3)''.
(3) Section 209(k)(1) of such Act is amended by inserting
``215(a)(2)(B), 215(a)(2)(C),'' after ``215(a)(1)(D),''.
(4) Section 215(a) of such Act is amended--
(A) in paragraph (4)(A), as redesignated by
subsection (a)(2), by striking ``paragraph (4)'' and
inserting ``paragraph (5)'';
(B) in paragraph (4)(B), as redesignated by
subsection (a)(2), by striking ``paragraph (2)(A)'' and
inserting ``paragraph (3)(A)'';
(C) in paragraph (5), as redesignated by subsection
(a)(2), by striking ``paragraph (3)(A)'' and inserting
``paragraph (4)(A)'';
(D) in paragraph (6)(A), as redesignated by
subsection (a)(2), by striking ``paragraph (4)(B)'' and
inserting ``paragraph (5)(B)''; and
(E) in paragraph (8)(B)(ii)(I), as redesignated by
subsection (a)(2), by striking ``paragraph (3)(B)'' and
inserting ``paragraph (4)(B)''.
(5) Section 215(d)(3) of such Act is amended--
(A) by striking ``paragraph (4)(B)(ii)'' and
inserting ``paragraph (5)(B)(ii)''; and
(B) by striking ``subsection (a)(7)(C)'' and
inserting ``subsection (a)(8)(C)''.
(6) Subsection 215(f) of such Act is amended--
(A) in paragraph (2)(B), by striking ``subsection
(a)(4)(B)'' and inserting ``subsection (a)(5)(B)'';
(B) in paragraph (7), by striking ``subsection
(a)(4)(B)'' and inserting ``subsection (a)(5)(B)'', and
by striking ``subsection (a)(6)'' and inserting
``subsection (a)(7)'';
(C) in paragraph (9)(A)--
(i) by striking ``subsection (a)(7)(A)''
and inserting ``subsection (a)(8)(A)''; and
(ii) by striking ``subsection (a)(7)(C)''
and inserting ``subsection (a)(8)(C)''; and
(D) in paragraph (9)(B), by striking ``subsection
(a)(7)'' each place it appears and inserting
``subsection (a)(8)''.
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