Text: H.R.5747 — 114th Congress (2015-2016)All Information (Except Text)

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[H.R. 5747 Introduced in House (IH)]

<DOC>






114th CONGRESS
  2d Session
                                H. R. 5747

 To amend title II of the Social Security Act to improve solvency and 
                   stability for future generations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 13, 2016

   Mr. Ribble (for himself, Mr. Cooper, Mr. Rigell, Mrs. Lummis, Mr. 
  Rokita, and Mr. Benishek) introduced the following bill; which was 
  referred to the Committee on Ways and Means, and in addition to the 
 Committees on Rules, and the Budget, 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 to improve solvency and 
                   stability 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.

    This Act may be cited as the ``S.O.S. Act of 2016''.

SEC. 2. INCREASE IN CONTRIBUTION AND BENEFIT BASE.

    (a) In General.--Section 230 of the Social Security Act (42 U.S.C. 
430) is amended--
            (1) in subsection (a), by striking ``subsection (b) or 
        (c)'' and inserting ``this section'';
            (2) in subsection (b), by inserting ``with respect to 
        remuneration paid (and taxable years beginning) in each 
        calendar year before 2017'' before ``shall (subject to 
        subsection (c))'';
            (3) by redesignating subsection (d) as subsection (f); and
            (4) by inserting after subsection (c) the following:
    ``(d)(1) The amount of such contribution and benefit base with 
respect to remuneration paid (and taxable years beginning) in each 
calendar year after 2016 shall (subject to subsection (e)) be 
determined by the Commissioner (using projections made in advance of 
such year by the Chief Actuary of the Social Security Administration 
based on the most recent annual report of the Board of Trustees) such 
that the percentage of the total earnings for all workers that are 
taxable under sections 1401 or 3101 of the Internal Revenue Code of 
1986 is equal to 90 percent for each such calendar year.
    ``(2) In making the determination under paragraph (1), the 
Commissioner may enter into agreements with the Secretary of Labor and 
the Commissioner of Internal Revenue to share any information necessary 
to carry out such paragraph.
    ``(e) For purposes of this section, and for purposes of determining 
wages and self-employment income under sections 209, 211, 213, and 215 
of this Act and sections 1402, 3121, 3122, 3125, 6413, and 6654 of the 
Internal Revenue Code of 1986, the `contribution and benefit base' with 
respect to remuneration paid (and taxable years beginning)--
            ``(1) in 2017 shall be $156,550;
            ``(2) in 2018 shall be $194,600;
            ``(3) in 2019 shall be $232,650;
            ``(4) in 2020 shall be $270,700; and
            ``(5) in 2021 shall be $308,750.
For purposes of determining under subsection (b) the `contribution and 
benefit base' with respect to remuneration paid (and taxable years 
beginning) in 2022 and subsequent years, the dollar amounts specified 
in the preceding sentence shall be considered to have resulted from the 
application of such subsection (b) and to be the amount determined 
(with respect to the years involved) under that subsection.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to determinations made with respect to the contribution and 
benefit base for calendar years after 2016.

SEC. 3. MODIFICATION OF PRIMARY INSURANCE AMOUNT FORMULA; INCLUSION OF 
              SURPLUS EARNINGS.

    (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;
                    (C) in clause (iii), by inserting ``and'' at the 
                end; and
                    (D) by inserting after clause (iii) the following:
            ``(iv) 2.5 percent of the individual's surplus average 
        indexed monthly earnings.''.
    (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 amount 
                established for purposes of this clause by paragraph 
                (4)''.
            (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))--
            ``(I) exceeds the amount established for purposes of 
        subparagraph (A)(i) by paragraph (4), and
            ``(II) does not exceed 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).''.
            (4) Wage indexing in determination of surplus earnings.--
        Section 215(b) of such Act (42 U.S.C. 415(b)) is amended--
                    (A) by redesignating paragraph (4) as paragraph 
                (5); and
                    (B) by inserting after paragraph (3) the following:
    ``(4) The amount established for purposes of paragraph (1)(A)(i) 
shall be--
            ``(A) for individuals who initially become eligible for 
        old-age or disability insurance benefits, or who die (before 
        becoming so eligible), in calendar year 2017, $118,500, and
            ``(B) for individuals who initially become eligible for 
        old-age or disability insurance benefits, or who die (before 
        becoming so eligible), in any calendar year after 2017, the 
        product of $118,500 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 made, by
                    ``(ii) the national average wage index (as so 
                defined) for 2015.''.
    (c) Reduction of Third Bend Point Factor.--
            (1) In general.--Section 215(a)(1)(A)(iii) of the Social 
        Security Act (42 U.S.C. 415(a)(1)(A)(iii)) is amended by 
        striking ``15 percent'' and inserting ``5 percent''.
            (2) Effective date; application rule.--The amendment made 
        by paragraph (1) shall apply with respect to computations or 
        recomputations of primary insurance amounts made on or after 
        January 1, 2017, except that section 215(a)(1)(A)(iii) of the 
        Social Security Act shall be applied by making the following 
        substitutions for ``5 percent'' for computations and 
        recomputations made in the following calendar years:
                    (A) for calendar year 2017, by substituting ``13 
                percent'';
                    (B) for calendar year 2018, by substituting ``11 
                percent'';
                    (C) for calendar year 2019, by substituting ``9 
                percent''; and
                    (D) for calendar year 2020, by substituting ``7 
                percent''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to individuals who initially become eligible 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 2016.

SEC. 4. INCREASE IN RETIREMENT AGE.

    (a) In General.--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 ``, 67 years 
                of age.'' and inserting ``and before January 1, 2023, 
                67 years of age;''; and
                    (C) by adding at the end the following:
            ``(F) with respect to an individual who attains early 
        retirement age after December 31, 2022, and before January 1, 
        2035, 67 years of age plus the number of months in the age 
        increase factor (as determined under paragraph (3)) for the 
        calendar year in which such individual attains early retirement 
        age;
            ``(G) with respect to an individual who attains early 
        retirement age in any calendar year after 2034, the longevity 
        indexed retirement age applicable for individuals who attain 
        early retirement age in such calendar year (as determined under 
        paragraph (4)).''; and
            (2) in paragraph (3)--
                    (A) by striking ``subparagraph (B) or (D)'' and 
                inserting ``subparagraph (B), (D), or (F)''; and
                    (B) by adding at the end the following:
            ``(C) With respect to an individual who attains early 
        retirement age in the 12-year period consisting of the calendar 
        years 2023 through 2034, the age increase factor shall be equal 
        to two-twelfths of the number of months in the period beginning 
        with January 2023 and ending with December of the year in which 
        the individual attains early retirement age.'';
            (3) by adding at the end the following:
            ``(4)(A) The longevity indexed retirement age applicable 
        for individuals who attain early retirement age in a calendar 
        year after 2034 is--
                    ``(i) in the case of calendar years 2035 through 
                2044, 69 years of age plus one twenty-fourth of the 
                number of months in the period beginning with January 
                2035 and ending with December of the year in which the 
                individual attains early retirement age, rounded down 
                to the nearest month; and
                    ``(ii) in the case of a calendar year after 2044, 
                the appropriate number of years of age (including any 
                fraction rounded to the nearest month) determined by 
                the Commissioner such that the ratio of--
                            ``(I) the number of months by which the 
                        average number of years (including any fraction 
                        rounded to the nearest month) in life 
                        expectancy for an individual attaining early 
                        retirement age in such calendar year (as 
                        determined under subparagraph (C)) exceeds such 
                        appropriate number of years of age, to
                            ``(II) the number of months by which such 
                        appropriate number of years of age exceeds 20 
                        years of age,
                is equal to the baseline retirement-to-employment ratio 
                (described in subparagraph (B)).
            ``(B) For purposes of subparagraph (A), the baseline 
        retirement-to-employment ratio is equal to the ratio of--
                    ``(i) the number of months by which the average 
                number of years (including any fraction rounded to the 
                nearest month) in life expectancy for an individual 
                attaining early retirement age in 2044 (as determined 
                under subparagraph (C)) exceeds 69 years of age and 5 
                months, to
                    ``(ii) 49 years of age and 5 months.
            ``(C) At the beginning of each 10-year period beginning 
        with the 10-year period that begins on January 1, 2044, the 
        Commissioner of Social Security shall determine (using 
        generally accepted actuarial principles and based on the 
        intermediate assumptions in the most recent Trustees Report and 
        such other data as the Commissioner determines appropriate) and 
        publish in the Federal Register--
                    ``(i) an estimate of the average number of years 
                (including any fraction rounded to the nearest month) 
                in life expectancy for an individual attaining early 
                retirement age in each year of such 10-year period; and
                    ``(ii) the longevity indexed retirement age 
                applicable for individuals who attain early retirement 
                age in each year (after 2044) of such 10-year period 
                (as determined under subparagraph (A)).''.
    (b) Extension of Maximum Age for Entitlement to Delayed Retirement 
Credit.--Section 202(w)(2)(A) of such Act (42 U.S.C. 402(w)(2)(A)) is 
amended--
            (1) by striking ``prior to the month in which such 
        individual attained age 70, and'' and inserting ``prior to the 
        later of--''; and
            (2) by adding at the end the following:
                    ``(i) the month in which such individual would 
                attain age 70, or
                    ``(ii) the month which ends 36 months after the end 
                of the month in which such individual attained 
                retirement age (as defined in section 216(l)), and''.
    (c) Extension of Maximum Age for Voluntary Suspension of 
Benefits.--Section 202(z)(1)(A)(ii) of such Act (42 U.S.C. 
402(z)(1)(A)(ii)) is amended by striking ``the month in which the 
individual attains the age of 70'' and inserting ``the later of the 
month in which the individual attains the age of 70 or the month which 
ends 36 months after the end of the month in which such individual 
attained retirement age (as defined in section 216(l))''.

SEC. 5. COST-OF-LIVING ADJUSTMENTS.

    (a) Change in Consumer Price Index.--
            (1) Computation of cost-of-living adjustments.--Section 
        215(i)(1) of the Social Security Act (42 U.S.C. 415(i)(1)) is 
        amended--
                    (A) in subparagraph (G), by striking the period at 
                the end and inserting ``; and''; and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(H) the term `Consumer Price Index' means the Chained 
        Consumer Price Index for all Urban Consumers (C-CPI-U, 
        published by the Bureau of Labor Statistics of the Department 
        of Labor).''.
            (2) Conforming amendment.--Section 215(i)(4) of such Act 
        (42 U.S.C. 415(i)(4)) is amended by inserting ``and by section 
        4 of the S.O.S. Act of 2016'' after ``1986''.
            (3) Application to pre-1979 law.--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--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
            ``(D) the term `Consumer Price Index' means the Chained 
        Consumer Price Index for all Urban Consumers (C-CPI-U, 
        published by the Bureau of Labor Statistics of the Department 
        of Labor).''.
    (b) No Effect on Adjustments Under Other Laws.--Section 215(i) of 
such Act (42 U.S.C. 415(i)), as amended by subsection (b), is further 
amended by adding at the end the following new paragraph:
    ``(7) Any provision of law (other than in this title) 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 4 of the S.O.S. Act of 2016.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to determinations made with respect to cost-of-living computation 
quarters ending on or after September 30, 2017.

SEC. 6. MINIMUM SOCIAL SECURITY BENEFIT.

    (a) In General.--Section 215 of the Social Security Act (42 U.S.C. 
415) is amended by adding at the end the following:

                  ``Minimum Monthly Insurance Benefit

    ``(j)(1) Notwithstanding the preceding provisions of this section--
            ``(A) subject to paragraphs (4), (8), and (9), the primary 
        insurance amount of any individual who is credited with greater 
        than 10 years of coverage and who initially becomes eligible 
        for old-age or disability insurance benefits or dies (before 
        becoming eligible for such benefits) for a month beginning 
        after December 31, 2016 (in this subsection referred to as a 
        `qualified individual'), shall be equal to the greater of--
                    ``(i) the primary insurance amount determined under 
                this section (without regard to this subsection), or
                    ``(ii) the minimum monthly insurance benefit 
                determined under paragraph (2), and
            ``(B) any recomputation of the primary insurance amount of 
        a qualified individual shall not result in a primary insurance 
        amount less than the primary insurance amount as in effect 
        immediately prior to such recomputation.
    ``(2) For purposes of this subsection, the term `minimum monthly 
insurance benefit' means \1/12\ of the applicable percentage of the 
adjusted minimum benefit level (as defined in paragraph (6)).
    ``(3) For purposes of this subsection, subject to paragraph (4), 
the applicable percentage shall be equal to--
            ``(A) for a qualified individual who has 20 years of 
        coverage or less, 100 percent reduced by 10 percentage points 
        for each year of coverage less than 20;
            ``(B) for a qualified individual who has more than 20 years 
        of coverage but less than 40 years of coverage, 125 percent 
        reduced by 1.25 percentage points for each year of coverage 
        less than 40; and
            ``(C) for a qualified individual who has 40 years of 
        coverage or greater, 125 percent.
    ``(4)(A) In the case of an individual who initially becomes 
eligible for disability insurance benefits under section 223 before 
attaining age 62, or who dies before attaining age 62, in a month 
beginning after December 31, 2016, and who is credited with at least 5 
years of coverage, the individual shall be treated as a qualified 
individual and the applicable percentage shall be 125 reduced by the 
number of percentage points determined under subparagraph (B) for each 
year of coverage of the qualified individual less than the number as 
determined under subparagraph (C).
    ``(B) The number of percentage points under this subparagraph shall 
be determined by--
            ``(i) dividing the number of the qualifying individual's 
        elapsed years (as defined in subsection (b)(2)(B)(iii)) by 40;
            ``(ii) multiplying the result under clause (i) by 20; and
            ``(iii) dividing 125 by the result under clause (ii) and 
        rounding to the nearest one hundredth of 1 percentage point.
    ``(C) The number of years of coverage under this subparagraph shall 
be determined by multiplying the ratio determined under subparagraph 
(B)(i) by 30 and rounding to the next lower whole number.
    ``(5) For purposes of this subsection, a year of coverage is a 
calendar year for which an individual is credited with 4 quarters of 
coverage.
    ``(6) For purposes of this subsection--
            ``(A) for individuals who initially become eligible for 
        old-age or disability insurance benefits or die (before 
        becoming eligible for such benefits) in either 2017 or 2018, 
        the term `adjusted minimum benefit level' means the product 
        of--
                    ``(i) the weighted average of the Federal poverty 
                threshold applicable to a family of 1 for the year 
                before such year (as determined by the Bureau of the 
                Census); and
                    ``(ii) the applicable phase-in factor for such 
                calendar year (as determined under paragraph (7)); and
            ``(B) for individuals who initially become eligible for 
        old-age or disability insurance benefits or die (before 
        becoming eligible for such benefits) in a year after 2018, the 
        term `adjusted minimum benefit level' means the product of--
                    ``(i) the amount determined under subparagraph (A) 
                for calendar year 2018, multiplied by the quotient 
                described in subsection (b)(3)(A)(ii), except that the 
                reference to `the computation base year for which the 
                determination is made' in such subsection shall be 
                deemed instead to be a reference to `2016'; and
                    ``(ii) the applicable phase-in factor for such 
                calendar year (as determined under paragraph (7)).
    ``(7) For purposes of paragraph (6), the applicable phase-in factor 
shall be equal to--
            ``(A) for calendar year 2017, 40 percent;
            ``(B) for each calendar year during the period between 2018 
        through 2022, the applicable phase-in factor under this 
        paragraph for the preceding year increased by 10 percentage 
        points; and
            ``(C) for calendar year 2023 and each succeeding year, 100 
        percent.
    ``(8) The amount of the minimum monthly insurance benefit of any 
individual under this subsection shall be reduced (but not below zero) 
by an amount equal to any periodic benefit payable to such individual 
for such month under a pension, annuity, retirement, or similar fund or 
system which is based upon such individual's earnings for any service 
described in paragraphs (1) through (21) of section 210(a).
    ``(9) The provisions of this subsection shall not apply in the case 
of an individual--
            ``(A) whose primary insurance amount would otherwise be 
        computed under subsection (a)(7); or
            ``(B) whose wife's insurance benefit or husband's insurance 
        benefit under subsection (b) or (c) of section 202 is 
        determined pursuant to subsection (b)(2)(A)(i)(II) or 
        (c)(2)(A)(i)(II) of such section.''.
    (b) Conforming Amendment.--Section 202(a) of such Act (42 U.S.C. 
402(a)) is amended in the last sentence by striking ``section 215(a)'' 
and inserting ``section 215''.

SEC. 7. ESTABLISHMENT OF AN INCREASED BENEFIT FOR BENEFICIARIES ON 
              ACCOUNT OF LONG-TERM ELIGIBILITY.

    (a) In General.--Section 202 of the Social Security Act (42 U.S.C. 
402) is amended by adding at the end the following:
    ``(z) Increase in Benefit Amounts on Account of Long-Term 
Eligibility.--(1) In the case of an individual who is a qualified 
beneficiary for a calendar year after 2016, the amount of any monthly 
insurance benefit of such qualified beneficiary under this section or 
section 223 for any month in such calendar year shall be increased in 
accordance with paragraph (3).
    ``(2)(A) For purposes of this subsection, the term `qualified 
beneficiary' for a calendar year means an individual in any case in 
which such calendar year begins at least 20 years after the applicable 
date of eligibility for such individual.
    ``(B) For purposes of this subsection, the applicable date of 
eligibility for an individual is the date on which the individual 
initially became eligible for monthly insurance benefits under 
subsection (a) or section 223.
    ``(3)(A) The increase required under paragraph (1) with respect to 
the monthly insurance benefit of an individual who is a qualified 
beneficiary for a calendar year shall be equal to the applicable 
percentage (specified for such benefit in subparagraph (B)) of the full 
increase amount for such calendar year (determined under subparagraph 
(C)).
    ``(B) The applicable percentage specified for a monthly insurance 
benefit under this subparagraph for a calendar year is the percentage 
specified, in connection with the number of years ending after the 
applicable date of eligibility for such individual and before such 
calendar year, in the following table:


``If the number of years is:             The applicable percentage is:
  20...................................  20 percent
  21...................................  40 percent
  22...................................  60 percent
  23...................................  80 percent
  24 or more...........................  100 percent.
 

    ``(C)(i) Except as provided in clauses (ii) and (iii), the full 
increase amount determined under this subparagraph for a calendar year 
in connection with the monthly insurance benefit of a qualified 
beneficiary is a dollar amount equal to 5 percent of the amount of the 
old-age insurance benefit that would apply to a hypothetical individual 
if--
            ``(I) on January 1 of the calendar year in which occurred 
        the applicable eligibility date with respect to such 
        individual, such hypothetical individual were fully insured, 
        attained retirement age (as defined in section 216(l)(2)) and 
        were otherwise eligible for, and applied for, old-age insurance 
        benefits; and
            ``(II) such hypothetical individual had earnings equal to 
        the national average wage index (as described in section 
        209(k)(1)) for each year beginning with the year in which the 
        individual attained the age of 22 through the year in which the 
        individual attained the age of 62.
    ``(ii)(I) In the case of a monthly insurance benefit under 
subsection (b) or (c), the full increase amount determined under this 
subparagraph shall be one-half the amount determined under clause (i).
    ``(II) In the case of a monthly insurance benefit under subsection 
(d), (g), or (h), the full increase amount determined under this 
subparagraph shall be the percentage of the amount determined under 
clause (i) equal to the ratio which the amount of such benefit bears to 
the primary insurance amount (before the application of section 203(a)) 
of the individual on whose wages and self-employment income the monthly 
insurance benefit is based.
    ``(4) In the case of a qualified beneficiary who is entitled to two 
or more monthly insurance benefits under this title for the same 
month--
            ``(A) the earliest applicable date of eligibility for such 
        beneficiary with respect to such benefits shall be treated as 
        the applicable date of eligibility for such beneficiary for the 
        purposes of this subsection; and
            ``(B) such beneficiary shall be entitled to an increase 
        with respect only to one such benefit.
    ``(5) This subsection shall be applied to monthly insurance 
benefits after any increase under subsection (w) and any applicable 
reductions and deductions under this title.
    ``(6) For purposes of this subsection, in the case of any 
individual who would otherwise have attained the status of a qualified 
beneficiary prior to January 1, 2017, such individual shall be treated 
as having attained such status on such date.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to benefits payable for months beginning after December 31, 2016.

SEC. 8. INCREASE IN BENEFIT COMPUTATION YEARS.

    (a) In General.--Section 215(b)(2) of the Social Security Act (42 
U.S.C. 415(b)(2)(A)(I)) is amended--
            (1) in subparagraph (A)(i), by striking ``5 years'' and 
        inserting ``the applicable number of years specified in 
        subparagraph (C)(i)'';
            (2) in subparagraph (A)(ii)--
                    (A) by striking ``one-fifth'' and inserting ``the 
                applicable fraction specified in subparagraph 
                (C)(ii)'';
                    (B) by striking ``5 years.'' and inserting ``the 
                applicable number of years specified in subparagraph 
                (C)(i).''; and
            (3) by adding at the end of paragraph (2) the following new 
        subparagraph:
    ``(C)(i) For purposes of clauses (i) and (ii) of subparagraph (A), 
the applicable number of years is the number of years set forth in the 
following table:

``If the calendar year in which the  The applicable number of years is:
        individual becomes eligible 
        for the benefit involved, 
        or dies (before becoming 
        eligible for such benefit) 
        is:
        Before 2017........................................          5 
        2017...............................................          4 
        2018...............................................          3 
        After 2018.........................................          2.
    ``(ii) For purposes of clause (ii) of subparagraph (A), the 
applicable fraction is the fraction set forth in the following table:

``If the calendar year in which the         The applicable fraction is:
        individual becomes eligible 
        for disability insurance 
        benefits is:
        Before 2017........................................        1/5 
        2017...............................................        1/6 
        2018...............................................        1/8 
        After 2018.........................................    1/12.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to individuals who become eligible for monthly 
insurance benefits (or who die before becoming so eligible) in any 
calendar year after 2016.

SEC. 9. PROTECTION OF SOCIAL SECURITY TRUST FUNDS.

    (a) Protection of Social Security.--Title III of the Congressional 
Budget Act of 1974 is amended by adding at the end the following new 
section:

                     ``lock-box for social security

    ``Sec. 316.  (a) Lock-Box for Social Security.--
            ``(1) Concurrent resolutions on the budget.--
                    ``(A) In general.--It shall not be in order in the 
                House of Representatives or the Senate to consider any 
                concurrent resolution on the budget, or an amendment 
                thereto or conference report thereon, that would set 
                forth totals for any fiscal year with respect to the 
                Social Security Trust Funds that are less than the 
                totals of the Social Security Trust Funds for that 
                fiscal year as calculated in accordance with a current 
                services baseline.
                    ``(B) Exception.--(i) Subparagraph (A) shall not 
                apply to the extent that a violation of such 
                subparagraph would result from an assumption in the 
                resolution, amendment, or conference report, as 
                applicable, of an increase in outlays or a decrease in 
                revenues and disbursements relative to the baseline 
                underlying that resolution for social security reform 
                legislation for any such fiscal year.
                    ``(ii) If a concurrent resolution on the budget, or 
                an amendment thereto or conference report thereon, 
                would be in violation of subparagraph (A) because of an 
                assumption of an increase in outlays or a decrease in 
                revenue relative to the baseline underlying that 
                resolution for social security reform legislation for 
                any such fiscal year, then that resolution shall 
                include a statement identifying any such increase in 
                outlays or decrease in revenues and disbursements.
            ``(2) Spending and tax legislation.--
                    ``(A) In general.--It shall not be in order in the 
                House of Representatives or the Senate to consider any 
                bill, joint resolution, amendment, motion, or 
                conference report if--
                            ``(i) the enactment of that bill or 
                        resolution, as reported;
                            ``(ii) the adoption and enactment of that 
                        amendment; or
                            ``(iii) the enactment of that bill or 
                        resolution in the form recommended in that 
                        conference report,
                would cause the totals for any fiscal year covered by 
                the most recently agreed to concurrent resolution on 
                the budget with respect to the Social Security Trust 
                Funds to be less than the totals of the Social Security 
                Trust Funds for that fiscal year as calculated in 
                accordance with the current services baseline.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                to social security reform legislation.
    ``(b) Enforcement.--For purposes of enforcing any point of order 
under subsection (a), the totals of the Social Security Trust Funds for 
a fiscal year shall be the levels set forth in the later of the report 
accompanying the concurrent resolution on the budget (or, in the 
absence of such a report, placed in the Congressional Record prior to 
the consideration of such resolution) or in the joint explanatory 
statement of managers accompanying such resolution.
    ``(c) Additional Content of Reports Accompanying Budget Resolutions 
and of Joint Explanatory Statements.--The report accompanying any 
concurrent resolution on the budget and the joint explanatory statement 
accompanying the conference report on each such resolution shall 
include the levels of the totals in the budget for each fiscal year set 
forth in such resolution and of the revenues and disbursements in the 
Social Security Trust Funds.
    ``(d) Definitions.--As used in this section, the term `social 
security reform legislation' means a bill or a joint resolution to save 
social security that includes a provision stating the following: `For 
purposes of section 316(a) of the Congressional Budget Act of 1974, 
this Act constitutes social security reform legislation.'.
    ``(e) Waiver and Appeal.--Subsection (a) may be waived or suspended 
in the Senate only by an affirmative vote of three-fifths of the 
Members, duly chosen and sworn. An affirmative vote of three-fifths of 
the Members of the Senate, duly chosen and sworn, shall be required in 
the Senate to sustain an appeal of the ruling of the Chair on a point 
of order raised under this section.
    ``(f) Effective Date.--This section shall cease to have any force 
or effect upon the enactment of social security reform legislation.''.
    (b) President's Budget.--
            (1) Protection of social security.--If the budget of the 
        United States Government submitted by the President under 
        section 1105(a) of title 31, United States Code, recommends 
        totals for any fiscal year with respect to the Social Security 
        Trust Funds that are less than the totals of the Social 
        Security Trust Funds for that fiscal year as calculated in 
        accordance with current services baseline, then it shall 
        include a detailed proposal for social security reform 
        legislation.
            (2) Effective date.--Subsection (a) shall cease to have any 
        force or effect upon the enactment of social security reform 
        legislation as defined by section 316(d) of the Congressional 
        Budget Act of 1974.
    (c) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by adding after the item for section 315 the following:

``Sec. 316. Lock-box for social security.''.
                                 <all>