[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5017 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 5017
To improve the retirement security of American families by increasing
Social Security benefits for current and future beneficiaries while
making Social Security stronger for future generations.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 11, 2024
Mr. Schatz introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To improve the retirement security of American families by increasing
Social Security benefits for current and future beneficiaries while
making Social Security stronger for future generations.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Safeguarding
American Families and Expanding Social Security Act of 2024''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Determination of taxable wages and self-employment income above
contribution and benefit base after 2024.
Sec. 3. Adjustments to primary insurance amount formula and inclusion
of surplus earnings for benefit
determinations.
Sec. 4. Increase in benefit amounts for long-term eligible individuals.
Sec. 5. Computation of cost-of-living increases for Social Security
benefits; consumer price index for elderly
consumers.
Sec. 6. Deemed wages for caregivers of dependent relatives.
Sec. 7. Increase in minimum benefit for lifetime low earners based on
years in the workforce.
Sec. 8. Elimination of disability waiting period for disability
insurance benefits and surviving spouse
benefits.
Sec. 9. Tax on investment gain.
Sec. 10. Holding SSI, Medicaid, and CHIP beneficiaries harmless.
SEC. 2. DETERMINATION OF TAXABLE WAGES AND SELF-EMPLOYMENT INCOME ABOVE
CONTRIBUTION AND BENEFIT BASE AFTER 2024.
(a) Determination of Taxable 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
taxable wages.--For purposes of subsection (a)(1), the
applicable percentage for a calendar year shall be equal to--
``(A) for 2025, 80 percent;
``(B) for 2026 through 2028, the applicable
percentage under this paragraph for the previous year,
decreased by 20 percentage points; and
``(C) for 2029 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) in subparagraph (I)--
(I) by inserting ``and before
2025'' after ``1974''; and
(II) by inserting ``and'' after the
semicolon;
(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 subsection (a)(1)(J), the applicable
percentage for a calendar year shall be equal to--
``(1) for 2025, 80 percent;
``(2) for 2026 through 2028, the applicable percentage
under this subsection for the previous year, decreased by 20
percentage points; and
``(3) for 2029 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 2024.
(b) Determination of Taxable 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 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
subsection shall be equal to--
``(A) for 2025, 80 percent;
``(B) for 2026 through 2028, the applicable
percentage under this paragraph for the previous year,
decreased by 20 percentage points; and
``(C) for 2029 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
2025'' 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 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 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 2025, 80 percent;
``(2) for 2026 through 2028, the applicable percentage
under this subsection for the previous year, decreased by 20
percentage points; and
``(3) for 2029 and each year thereafter, 0 percent.''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to taxable years beginning after
calendar year 2024.
SEC. 3. ADJUSTMENTS TO PRIMARY INSURANCE AMOUNT FORMULA AND INCLUSION
OF SURPLUS EARNINGS FOR BENEFIT DETERMINATIONS.
(a) Increase in Percentage Factor for Lowest Portion of Earnings
Used To Determine Primary Insurance Amounts.--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) 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;
(C) in clause (iii), by adding ``and'' at the end;
and
(D) by inserting after clause (iii) the following
new clause:
``(iv) 5 percent of the individual's surplus average
indexed monthly earnings,''.
(2) Bend point adjustments.--Section 215(a)(1)(B) of such
Act (42 U.S.C. 415(a)(1)(B)) is amended--
(A) in clause (i), by inserting ``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 2025,
the amount established for purposes of clause (ii) of
subparagraph (A) shall be $6,300.'' after the period;
(B) in clause (ii)--
(i) by redesignating subclauses (I) and
(II) as items (aa) and (bb), respectively;
(ii) by striking ``For individuals'' and
inserting ``(I) Subject to subclause (II), for
individuals''; and
(iii) by adding at the end the following
new subclause:
``(II) 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 2025, the amount established for purposes of clause (ii)
of subparagraph (A) shall equal the product of the amount
established with respect to calendar year 2025 under clause (i)
of this subparagraph and the quotient obtained by dividing--
``(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, by
``(bb) the national average wage index (as so
defined) for 2023.'';
(C) by redesignating clause (iii) as clause (iv);
and
(D) by inserting after clause (ii) the following
new clause:
``(iii) 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
2029, the amount determined under clause (ii) of this
subparagraph for purposes of subparagraph (A)(i) for such
calendar year shall be increased by--
``(I) for calendar year 2030, 1 percent;
``(II) for each of calendar years 2031 through
2043, the percent determined under this clause for the
preceding year increased by 1 percentage point; and
``(III) for calendar year 2044 and each year
thereafter, 15 percent.''.
(3) Recomputation of benefits for existing beneficiaries.--
Section 215(f) of the Social Security Act (42 U.S.C. 415(f)) is
amended by adding at the end the following new paragraph:
``(10) Recomputation of primary insurance amount for
individuals who became eligible for benefits before 2025.--
``(A) The Commissioner of Social Security shall
recompute the primary insurance amounts applicable to
beneficiaries whose benefits are based on a primary
insurance amount that was computed under this section
effective prior to January 2025. Such recomputation
shall be effective January 2025.
``(B) In recomputing the primary insurance amount
applicable to a beneficiary under this paragraph, the
Commissioner of Social Security shall calculate the
primary insurance amount of the individual under
subsection (a)(1) as in effect on the date that such
primary insurance amount was initially computed, except
that the Commissioner shall substitute for the amount
that applied under subparagraph (B)(ii) of such
subsection on such date an amount equal to the product
of--
``(i) the amount that applied under such
subparagraph on such date; and
``(ii) the ratio of--
``(I) 6,300; to
``(II) 6,002.
``(C) Each amount determined under subparagraph (B)
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.
``(D) If a primary insurance amount applicable to a
beneficiary, as recomputed under this paragraph, is
lower than the primary insurance amount applicable to
such beneficiary as it was originally computed, such
higher primary insurance amount shall continue to apply
to such beneficiary.''.
(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 striking ``An individual's'' and
inserting ``(A) An individual's''; 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)--
(i) by striking ``subparagraph (B)'' and
inserting ``subparagraph (C)''; and
(ii) by inserting ``and determination of
basic average indexed monthly income under
paragraph (1)(A)'' 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 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 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 2029.
SEC. 4. INCREASE IN BENEFIT AMOUNTS FOR LONG-TERM ELIGIBLE INDIVIDUALS.
(a) In General.--Section 202 of the Social Security Act (42 U.S.C.
402) is amended by adding at the end the following new subsection:
``(aa) Increase in Benefit Amounts for Long-Term Eligible
Individuals.--
``(1) In general.--The amount of a monthly benefit which is
payable to an individual for a month under subsections (a)
through (h) or section 223(a) (as determined without regard to
this subsection) shall be increased by 5 percent if the
individual is a long-term eligible individual during any part
of such month.
``(2) Long-term eligible individual defined.--
``(A) In general.--The term `long-term eligible
individual' means an individual who--
``(i) is entitled to a monthly benefit
under subsections (a) through (h) or section
223(a); and
``(ii) has attained 82 years of age or 240
benefit months (as defined in subparagraph
(B)), whichever is earlier.
``(B) Benefit month.--
``(i) In general.--For purposes of
subparagraph (A), the term `benefit month'
means a month for which an individual--
``(I) has attained age 19; and
``(II) is entitled to a monthly
benefit under subsections (a) through
(h) of section 202 or section 223(a).
``(ii) Exclusions.--Such term excludes any
month in which an individual is--
``(I) entitled to a benefit under
this section or section 223(a) that is
not payable or reduced to zero by
application of subsection (k), (n),
(t), (u), (v), or (x) of this section;
or
``(II) subject to a penalty under
section 1129A.
``(3) Disregard of increase for purposes of family
maximum.--The amount of any increase under this subsection to a
monthly benefit amount of a long-term eligible individual shall
be disregarded for purposes of applying section 203(a).''.
(b) Conforming Amendments.--
(1) Section 202 of the Social Security Act (42 U.S.C. 402)
is amended--
(A) in subsection (a), by striking ``subsection (q)
and subsection (w)'' and inserting ``subsections (q),
(w), and (aa)'';
(B) in subsections (b)(2) and (c)(2), by striking
``subsections (k)(5) and (q)'' and inserting
``subsections (k)(5), (q), and (aa)'';
(C) in subsection (d)(2), by striking ``Such
child's'' each place it appears and inserting ``Subject
to subsection (aa), such child's'';
(D) in subsections (e)(2)(A) and (f)(2)(A), by
inserting ``subsection (aa),'' after ``subsection
(q),'';
(E) in subsection (g)(2), by striking ``Such
mother's or father's'' and inserting ``Subject to
subsection (aa), such mother's or father's''; and
(F) in subsection (h)(2)(A), by inserting
``subsection (aa) and'' before ``subparagraphs (B) and
(C)''.
(2) Section 223(a)(2) of the Social Security Act (42 U.S.C.
423(a)(2)) is amended--
(A) in the matter preceding subparagraph (A), by
striking ``section 202(q)'' and inserting ``subsections
(q) and (aa) of section 202''; and
(B) in subparagraph (B), by striking ``clause
(ii)'' and inserting ``subdivision (ii) or (iii) of the
matter following subparagraph (E)''.
(c) Effective Date.--The amendments made by this section shall
apply to benefits payable for months in any calendar year after 2029.
SEC. 5. COMPUTATION OF COST-OF-LIVING INCREASES FOR SOCIAL SECURITY
BENEFITS; CONSUMER PRICE INDEX FOR ELDERLY CONSUMERS.
(a) Computation of Cost-of-Living Increases.--
(1) In general.--Section 215(i) of the Social Security Act
(42 U.S.C. 415(i)) is amended--
(A) 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 the Consumer
Price Index for Elderly Consumers and such primary
insurance amount shall be adjusted under this
subsection using such Index''; and
(B) in paragraph (4)--
(i) by striking ``and by section 9001'' and
inserting ``, by section 9001''; and
(ii) by striking ``1986,'' and inserting
``1986, and by section 5(a) of the Safeguarding
American Families and Expanding Social Security
Act of 2024,''.
(2) 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 the Consumer Price Index for
Elderly Consumers and such primary insurance amount shall be
adjusted under this subsection using such Index''.
(3) Effective date.--The amendments made by this subsection
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, 2025.
(b) Consumer Price Index for Elderly Consumers.--
(1) 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).
(2) Effective date.--Paragraph (1) shall apply with respect
to calendar months ending on or after June 30 of the calendar
year in which this Act is enacted.
(3) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out the
provisions of this subsection.
SEC. 6. DEEMED WAGES FOR CAREGIVERS OF DEPENDENT RELATIVES.
(a) In General.--Title II of the Social Security Act is amended by
adding after section 234 (42 U.S.C. 434) the following new section:
``deemed wages for caregivers of dependent relatives
``Sec. 235. (a) Definitions.--For purposes of this section--
``(1)(A) Subject to subparagraph (B), the term `qualifying
month' means, in connection with an individual, any month--
``(i) beginning after the date of enactment of the
Safeguarding American Families and Expanding Social
Security Act of 2024; and
``(ii) during which such individual was engaged for
not less than 80 hours in providing care to a dependent
relative without monetary compensation.
``(B) The term `qualifying month' does not include any
month ending after the date on which such individual attains
retirement age (as defined in section 216(l)).
``(C) For purposes of subparagraph (A)(ii), assistance
provided to a family caregiver of an eligible veteran under
section 1720G of title 38, United States Code, shall not be
considered monetary compensation for providing care to such
eligible veteran.
``(2) The term `dependent relative' means, in connection
with an individual--
``(A) a child, grandchild, sibling, niece, or
nephew (of such individual or such individual's spouse
or domestic partner), or a child to which the
individual or the individual's spouse or domestic
partner is standing in loco parentis, who is under the
age of 16; or
``(B) a child, grandchild, niece, or nephew (of
such individual or such individual's spouse or domestic
partner), a child to which the individual or the
individual's spouse or domestic partner is standing in
loco parentis, a parent, grandparent, sibling, aunt, or
uncle (of such individual or his or her spouse or
domestic partner), or such individual's spouse or
domestic partner, if such child, grandchild, niece,
nephew, parent, grandparent, sibling, aunt, uncle,
spouse, or domestic partner is a chronically dependent
individual.
``(3)(A) The term `chronically dependent individual' means
an individual who--
``(i) is dependent on a daily basis on verbal
reminding, physical cueing, supervision, or other
assistance provided to the individual by another person
in the performance of at least two of the activities of
daily living (described in subparagraph (B)) or
instrumental activities of daily living (described in
subparagraph (C)); and
``(ii) without the assistance described in clause
(i), could not perform such activities of daily living
or instrumental activities of daily living.
``(B) The `activities of daily living' referred to in
subparagraph (A) means basic personal everyday activities,
including--
``(i) eating;
``(ii) bathing;
``(iii) dressing;
``(iv) toileting; and
``(v) transferring in and out of a bed or in and
out of a chair.
``(C) The `instrumental activities of daily living'
referred to in subparagraph (A) means activities related to
living independently in the community, including--
``(i) meal planning and preparation;
``(ii) managing finances;
``(iii) shopping for food, clothing, or other
essential items;
``(iv) performing essential household chores;
``(v) communicating by phone or other form of
media; and
``(vi) traveling around and participating in the
community.
``(b) Deemed Wages of Caregiver.--(1)(A) For purposes of
determining entitlement to and the amount of any monthly benefit for
any month beginning after the date of enactment of Safeguarding
American Families and Expanding Social Security Act of 2024, or
entitlement to and the amount of any lump-sum death payment in the case
of a death after such month, payable under this title on the basis of
the wages and self-employment income of any individual, and for
purposes of section 216(i)(3), such individual shall be deemed to have
been paid during each qualifying month (in addition to wages or self-
employment income actually paid to or derived by such individual during
such month) at an amount per month equal to--
``(i) in the case of a qualifying month during which no
wages or self-employment income were actually paid to or
derived by such individual--
``(I) 50 percent of the national average wage index
(as defined in section 209(k)(1)) for the second
calendar year preceding the calendar year in which such
month occurs; or
``(II) if the dependent relative to which the
individual provided care during such month was, at any
time during such month, a child under the age of 6 or a
chronically dependent individual, 100 percent of the
national average wage index (as defined in section
209(k)(1)) for the second calendar year preceding the
calendar year in which such month occurs;
``(ii) in the case of a qualifying month in which an
individual engages in employment or any trade or business
carried on by the individual or by a partnership of which the
individual is a member for not more than 80 hours, 50 percent
of the national average wage index (as defined in section
209(k)(1)) for the second calendar year preceding the calendar
year in which such month occurs; and
``(iii) in the case of any other qualifying month, the
excess of the amount determined under clause (i) over \1/2\ of
the wages or self-employment income actually paid to or derived
by such individual during such month.
``(B) In any case in which there are more than 120 qualifying
months for an individual, only the last 60 of such months shall be
taken into account for purposes of this section.
``(2) Paragraph (1) shall not be applicable in the case of any
monthly benefit or lump-sum death payment if a larger such benefit or
payment, as the case may be, would be payable without its application.
``(c) Rules and Regulations.--
``(1) Not later than one year after the date of the
enactment of this section, the Commissioner of Social Security
shall promulgate such regulations as are necessary to carry out
this section and to prevent fraud and abuse with respect to the
benefits under this section, including regulations establishing
procedures for the application and certification requirements
described in paragraph (2).
``(2) A qualifying month shall not be taken into account
under this section with respect to an individual unless--
``(A) the individual submits to the Commissioner of
Social Security an application for benefits under this
section that includes--
``(i) the name and identifying information
of the dependent relative with respect to whom
the individual was engaged in providing care
during such month;
``(ii) if the dependent relative is not a
child under the age of 16, documentation from
the physician of the dependent relative
explaining why the dependent relative is a
chronically dependent individual; and
``(iii) such other information as the
Commissioner may require to verify the status
of the dependent relative; and
``(B) for every qualifying month or period of up to
12 consecutive qualifying months that occurs after the
first period of 12 consecutive qualifying months, the
individual certifies, in such form and manner as the
Commissioner shall require, that the information
provided in the individual's application for benefits
under this section has not changed.''.
(b) Conforming Amendment.--Section 209(k)(1) of such Act (42 U.S.C.
409(k)(1)) is amended--
(1) by striking ``and'' before ``230(b)(2)'' the first time
it appears; and
(2) by inserting ``and 235(b)(1)(A)(i),'' after ``1977),''.
SEC. 7. INCREASE IN MINIMUM BENEFIT FOR LIFETIME LOW EARNERS BASED ON
YEARS IN THE WORKFORCE.
(a) In General.--Section 215(a)(1) of the Social Security Act (42
U.S.C. 415(a)(1)) is amended--
(1) by redesignating subparagraph (D) as subparagraph (E);
and
(2) by inserting after subparagraph (C) the following new
subparagraph:
``(D)(i) Effective with respect to the benefits of individuals who
become eligible for old-age insurance benefits or disability insurance
benefits (or die before becoming so eligible) after 2024, no primary
insurance amount computed under subparagraph (A) may be less than the
greater of--
``(I) the minimum monthly amount computed under
subparagraph (C); or
``(II) in the case of an individual who has more than 10
years of work (as defined in clause (iv)(I)), the alternative
minimum amount determined under clause (ii).
``(ii)(I) The alternative minimum amount determined under this
clause is the applicable percentage of \1/12\ of the annual dollar
amount determined under clause (iii) for the year in which the amount
is determined.
``(II) For purposes of subclause (I), the applicable percentage is
the percentage specified in connection with the number of years of
work, as set forth in the following table:
``If the number of years The applicable
of work is: percentage is:
11........................................... 6.25 percent
12........................................... 12.50 percent
13........................................... 18.75 percent
14........................................... 25.00 percent
15........................................... 31.25 percent
16........................................... 37.50 percent
17........................................... 43.75 percent
18........................................... 50.00 percent
19........................................... 56.25 percent
20........................................... 62.50 percent
21........................................... 68.75 percent
22........................................... 75.00 percent
23........................................... 81.25 percent
24........................................... 87.50 percent
25........................................... 93.75 percent
26........................................... 100.00 percent
27........................................... 106.25 percent
28........................................... 112.50 percent
29........................................... 118.75 percent
30 or more................................... 125.00 percent.
``(iii) The annual dollar amount determined under this clause is--
``(I) for calendar year 2025, the poverty guideline for
2024; and
``(II) for any calendar year after 2025, the annual dollar
amount for 2025 multiplied by the ratio of--
``(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, to
``(bb) the national average wage index (as so
defined) for 2023.
``(iv) For purposes of this subparagraph--
``(I) the term `year of work' means, with respect to an
individual, a year to which 4 quarters of coverage have been
credited based on such individual's wages and self-employment
income; and
``(II) the term `poverty guideline for 2023' means the
annual poverty guideline for 2023 (as updated annually in the
Federal Register by the Department of Health and Human Services
under the authority of section 673(2) of the Omnibus Budget
Reconciliation Act of 1981) as applicable to a single
individual.''.
(b) Recomputation.--Notwithstanding section 215(f)(1) of the Social
Security Act, the Commissioner of Social Security shall recompute
primary insurance amounts originally computed for months prior to
November 2024 to the extent necessary to carry out the amendments made
by this section.
(c) Conforming Amendment.--Section 209(k)(1) of such Act (42 U.S.C.
409(k)(1)) is amended by inserting ``215(a)(1)(E),'' after
``215(a)(1)(D),''.
SEC. 8. ELIMINATION OF DISABILITY WAITING PERIOD FOR DISABILITY
INSURANCE BENEFITS AND SURVIVING SPOUSE BENEFITS.
(a) Elimination of Waiting Period for Disability Insurance
Benefits.--Section 223 of the Social Security Act (42 U.S.C. 423), as
amended by section 4(b)(2), is amended--
(1) in subsection (a)--
(A) in paragraph (1), in the matter following
subparagraph (E)--
(i) by striking ``disability insurance
benefit (i) for each month'' and all that
follows through ``, or (iii)'' and inserting
``disability insurance benefit''; and
(ii) by striking ``, but only if'' and all
that follows through ``under such disability'';
and
(B) in paragraph (2), by striking ``as though he
had attained age 62 in--'' and all that follows through
``such disability insurance benefits,'' and inserting
``as though the individual had attained age 62 in the
first month for which the individual becomes entitled
to such disability insurance benefits,''; and
(2) in subsection (c)--
(A) in the subsection header, by striking
``Definitions of Insured Status and Waiting Period''
and inserting ``Definition of Insured Status''; and
(B) by striking paragraph (2).
(b) Elimination of Waiting Period for Surviving Spouse and
Surviving Divorced Spouse Benefits.--Section 202 of the Social Security
Act (42 U.S.C. 402) is amended--
(1) in subsection (e)--
(A) in paragraph (1), in the matter following
subparagraph (D), by striking ``beginning with--'' and
all that follows through ``on such basis terminated,''
and inserting ``beginning with the first month in which
she becomes so entitled to such insurance benefits'';
(B) by striking paragraph (5); and
(C) by redesignating paragraphs (6) through (8) as
paragraphs (5) through (7); and
(2) in subsection (f)--
(A) in paragraph (1), in the matter following
subparagraph (D), by striking ``beginning with--'' and
all that follows through ``on such basis terminated,''
and inserting ``beginning with the first month in which
he becomes so entitled to such insurance benefits'';
(B) by striking paragraph (5); and
(C) by redesignating paragraphs (6) through (8) as
paragraphs (5) through (7).
(c) Effective Date.--The amendments made by this section shall
apply with respect to applications for benefits filed on or after the
date of the enactment of this Act.
SEC. 9. TAX ON INVESTMENT GAIN.
(a) In General.--Subsection (a) of section 1411 of the Internal
Revenue Code of 1986 is amended by striking ``3.8 percent'' each place
it appears and inserting ``6.8 percent''.
(b) Conforming Amendment.--The heading for chapter 2A of the
Internal Revenue Code of 1986 is amended by inserting ``AND SOCIAL
SECURITY'' after ``MEDICARE''.
(c) Trust Funds.--
(1) Technical amendments.--Section 201 of the Social
Security Act (42 U.S.C. 401) is amended--
(A) in subsection (a)--
(i) by striking ``clause'' each place it
appears and inserting ``paragraph''; and
(ii) in the flush text at the end, by
striking ``clauses'' each place it appears and
inserting ``paragraphs''; and
(B) in subsection (g)(2), by striking ``clause''
each place it appears and inserting ``paragraph''.
(2) Federal old-age and survivors insurance trust fund.--
Subsection (a) of section 201 of the Social Security Act (42
U.S.C. 401), as amended by paragraph (1), is amended--
(A) in paragraph (4), by striking the period at the
end and inserting ``; and'';
(B) by inserting after paragraph (4) the following
new paragraph:
``(5) 44.1 percent of the taxes imposed under section 1411 of the
Internal Revenue Code of 1986.''; and
(C) in the flush matter at the end, by striking
``paragraphs (3) and (4)'' each place it appears and
inserting ``paragraphs (3), (4), and (5)''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 10. HOLDING SSI, MEDICAID, AND CHIP 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, eligibility for medical
assistance under the State plan under title XIX (or a waiver of such
plan), or eligibility for child health assistance under the State child
health plan under title XXI (or a waiver of the plan), 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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