[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9300 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 9300
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 2, 2024
Ms. Tokuda (for herself, Mr. Cohen, and Ms. Schakowsky) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committees on Energy and Commerce, and Education
and the Workforce, 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 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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Protecting and
Preserving Social Security Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title and table of contents.
TITLE I--COST-OF-LIVING INCREASES
Sec. 101. Consumer Price Index for Elderly Consumers.
Sec. 102. Computation of cost-of-living increases.
TITLE II--CONTRIBUTION AND BENEFIT FAIRNESS
Sec. 201. Determination of wages and self-employment income above
contribution and benefit base after 2024.
Sec. 202. Inclusion of surplus earnings in Social Security benefit
formula.
TITLE I--COST-OF-LIVING INCREASES
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.
(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.
(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out the provisions of
this section.
SEC. 102. COMPUTATION OF COST-OF-LIVING INCREASES.
(a) In General.--Section 215(i)(1) of the Social Security Act (42
U.S.C. 415(i)(1)) is amended by adding at the end the following new
subparagraph:
``(H) the term `Consumer Price Index' means the
Consumer Price Index for Elderly Consumers (CPI-E, as
published by the Bureau of Labor Statistics of the
Department of Labor).''.
(b) Application to Pre-1979 Law.--
(1) In general.--Section 215(i)(1) of the Social Security
Act as in effect in December 1978, and as applied in certain
cases under the provisions of such Act as in effect after
December 1978, is amended by adding at the end the following
new subparagraph:
``(D) the term `Consumer Price Index' means the
Consumer Price Index for Elderly Consumers (CPI-E, as
published by the Bureau of Labor Statistics of the
Department of Labor).''.
(2) Conforming amendment.--Section 215(i)(4) of the Social
Security Act (42 U.S.C. 415(i)(4)) is amended by inserting
``and by section 102 of the Protecting and Preserving Social
Security Act'' after ``1986''.
(c) No Effect on Adjustments Under Other Laws.--Section 215(i) of
the Social Security Act (42 U.S.C. 415(i)) is amended by adding at the
end the following:
``(6) Any provision of law (other than in this title or
title XVI) which provides for adjustment of an amount based on
a change in benefit amounts resulting from a determination made
under this subsection shall be applied and administered without
regard to the amendments made by section 102 of the Protecting
and Preserving Social Security Act.''.
(d) No Effect on Eligibility for SSI and Medicaid.--Any increase to
an individual's monthly benefit amount under title II of the Social
Security Act as a result of the amendments made by this section shall
not be regarded as income or resources for any subsequent month, for
purposes of determining the eligibility of the recipient (or the
recipient's spouse or family) for benefits or assistance, or the amount
or extent of benefits or assistance, under the Supplemental Security
Income program or the Medicaid program.
(e) Effective Date.--The amendments made by this section 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.
TITLE II--CONTRIBUTION AND BENEFIT FAIRNESS
SEC. 201. DETERMINATION OF WAGES AND SELF-EMPLOYMENT INCOME ABOVE
CONTRIBUTION AND BENEFIT BASE AFTER 2024.
(a) Determination of Wages Above Contribution and Benefit Base
After 2024.--
(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
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 paragraph, shall be the
percentage determined in accordance with the following table:
The applicable
``In the case of: percentage is:
Calendar year 2025................................. 86
Calendar year 2026................................. 71
Calendar year 2027................................. 57
Calendar year 2028................................. 43
Calendar year 2029................................. 29
Calendar year 2030................................. 14
Calendar years after 2030.......................... 0.
``(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) in subparagraph (I)--
(I) by inserting ``and before
2025'' after ``1974''; and
(II) by inserting ``and'' after the
semicolon; and
(ii) 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 2024
with respect to which such contribution and benefit
base is effective, is paid to such individual during
such calendar year;''; and
(B) by adding at the end the following new
subsection:
``(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:
The applicable
``In the case of: percentage is:
Calendar year 2025................................. 86
Calendar year 2026................................. 71
Calendar year 2027................................. 57
Calendar year 2028................................. 43
Calendar year 2029................................. 29
Calendar year 2030................................. 14
Calendar years after 2030.......................... 0.''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to remuneration paid in calendar years
after 2024.
(b) Determination of Self-Employment Income Above Contribution and
Benefit Base After 2024.--
(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 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'', 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 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:
The applicable
``In the case of: percentage is:
Calendar year 2025................................. 86
Calendar year 2026................................. 71
Calendar year 2027................................. 57
Calendar year 2028................................. 43
Calendar year 2029................................. 29
Calendar year 2030................................. 14
Calendar years after 2030.......................... 0.''.
(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
2025'' after ``1974'';
(ii) by redesignating paragraph (2) as
paragraph (3); and
(iii) by inserting after paragraph (1) the
following new paragraph:
``(2) For any taxable year beginning in any calendar year
after 2024, 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''; and
(B) by adding at the end the following:
``(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:
The applicable
``In the case of: percentage is:
Calendar year 2025................................. 86
Calendar year 2026................................. 71
Calendar year 2027................................. 57
Calendar year 2028................................. 43
Calendar year 2029................................. 29
Calendar year 2030................................. 14
Calendar years after 2030.......................... 0.''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to taxable years beginning during or
after calendar year 2025.
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.--
(1) In general.--Section 215(a)(1)(A) of the Social
Security Act (42 U.S.C. 415(a)(1)(A)) is amended--
(A) in clauses (i), (ii), and (iii), by inserting
``basic'' before ``average indexed monthly earnings''
each place it appears;
(B) in clause (ii), by striking ``and'' at the end;
and
(C) by inserting after clause (iii) the following
new clauses:
``(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, and
``(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).''.
(2) Bend point for surplus earnings.--Section 215(a)(1)(B)
of such Act (42 U.S.C. 415(a)(1)(B)) is amended--
(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)'';
(B) by redesignating clause (iii) as clause (v);
(C) in clause (v) (as redesignated), by inserting
``or (iv)'' after ``clause (ii)''; and
(D) by inserting after clause (ii) the following
new clauses:
``(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 2023, the amount established
for purposes of clause (iv) of subparagraph (A) shall be $8,933.
``(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 2023, 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 2023 under
clause (iii) of this subparagraph and the quotient obtained by
dividing--
``(I)(aa) 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, or
``(bb) if higher (and if such second calendar year is after
2023), the highest national average wage index (as so defined)
for any calendar year before such second calendar year, by
``(II) the national average wage index (as so defined) for
2018.''.
(b) 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).''.
(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 2024.
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