Public Servants Protection and Fairness Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 2337 To amend title II of the Social Security Act to provide an equitable Social Security formula for individuals with noncovered employment and to provide relief for individuals currently affected by the Windfall Elimi- nation Provision. IN THE HOUSE OF REPRESENTATIVES APRIL 1, 2021 Mr. NEAL (for himself, Mr. THOMPSON of California, Mr. LARSON of Con- necticut, Mr. BLUMENAUER, Mr. PASCRELL, Mr. DANNY K. DAVIS of Illi- nois, Ms. SA´NCHEZ, Mr. HIGGINS of New York, Ms. SEWELL, Ms. DELBENE, Ms. CHU, Ms. MOORE of Wisconsin, Mr. KILDEE, Mr. BRENDAN F. BOYLE of Pennsylvania, Mr. BEYER, Mr. EVANS, Mr. SCHNEIDER, Mr. SUOZZI, Mr. PANETTA, Mr. GOMEZ, Mr. HORSFORD, Ms. PLASKETT, Ms. SPANBERGER, Mr. SCHIFF, Mr. SMITH of Wash- ington, Mr. ESPAILLAT, Mr. GREEN of Texas, Mr. LOWENTHAL, Mr. SIRES, Mr. HASTINGS, Ms. ADAMS, Mr. CARSON, Mr. KIM of New Jersey, Mr. LEVIN of Michigan, Ms. KUSTER, Ms. ESHOO, Mr. BROWN, Mr. DELGADO, Ms. PRESSLEY, Ms. LEE of California, Mr. THOMPSON of Mis- sissippi, Ms. MCCOLLUM, Mr. FOSTER, Mr. KEATING, Mr. RUSH, Mrs. WATSON COLEMAN, Mr. SHERMAN, Mrs. CAROLYN B. MALONEY of New York, Mr. CRIST, Ms. PINGREE, Mr. PAPPAS, Mr. GARCI´A of Illinois, Mrs. AXNE, Mr. ALLRED, Mr. LAMB, Mr. SOTO, Mr. CICILLINE, Mr. TRONE, Mr. KILMER, Ms. DEGETTE, Ms. TITUS, Mr. PAYNE, Mr. RUP- PERSBERGER, Mr. PERLMUTTER, Ms. JOHNSON of Texas, Mrs. LURIA, Ms. NORTON, Ms. SLOTKIN, Mr. VELA, Ms. MENG, Mrs. NAPOLITANO, Mr. MEEKS, Mr. SABLAN, Mr. JEFFRIES, Mr. CUELLAR, Ms. SPEIER, Mrs. HAYES, Mr. AUCHINCLOSS, Mr. LANGEVIN, Mr. RASKIN, Ms. SCHA- KOWSKY, Mr. GOLDEN, Mr. HUFFMAN, Mr. MCNERNEY, Mr. NADLER, Mr. MCGOVERN, Mr. CASTRO of Texas, Mr. COURTNEY, Mr. NEGUSE, Mr. GARAMENDI, Mr. GOTTHEIMER, Mrs. BEATTY, Mr. VARGAS, Ms. BROWNLEY, Ms. CLARK of Massachusetts, Ms. CASTOR of Florida, Ms. SCHRIER, Ms. BLUNT ROCHESTER, Mrs. TRAHAN, Mr. CORREA, Ms. ROYBAL-ALLARD, Mrs. MCBATH, Ms. DEAN, Mr. VEASEY, Ms. KAPTUR, Mr. DESAULNIER, Mr. POCAN, Ms. SCANLON, Mr. CARTWRIGHT, Mr. MI- CHAEL F. DOYLE of Pennsylvania, Mr. LEVIN of California, Ms. SHERRILL, Ms. BARRAGA´N, Mrs. TORRES of California, Mr. TONKO, Mr. WELCH, Ms. JAYAPAL, Mr. KRISHNAMOORTHI, Ms. TLAIB, Mr. GRI- JALVA, Mr. KHANNA, Ms. KELLY of Illinois, Mr. GALLEGO, Mr. VerDate Sep 11 2014 03:51 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H2337.IH H2337 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 2337 IH CARBAJAL, Mr. BISHOP of Georgia, Mr. PETERS, Mr. SEAN PATRICK MALONEY of New York, Mr. MOULTON, Mr. LYNCH, Mr. COHEN, Ms. BONAMICI, Ms. GARCIA of Texas, Mr. DEUTCH, Mr. RYAN, Mr. CA´RDENAS, Mrs. DEMINGS, Ms. ESCOBAR, Mr. VICENTE GONZALEZ of Texas, Ms. CLARKE of New York, and Ms. LOFGREN) introduced the fol- lowing bill; which was referred to the Committee on Ways and Means A BILL To amend title II of the Social Security Act to provide an equitable Social Security formula for individuals with noncovered employment and to provide relief for individ- uals currently affected by the Windfall Elimination Pro- vision. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Public Servants Pro- 4 tection and Fairness Act of 2021’’. 5 SEC. 2. ALTERNATIVE FORMULA EQUALIZING BENEFITS 6 FOR CERTAIN INDIVIDUALS WITH NON- 7 COVERED EMPLOYMENT. 8 (a) IN GENERAL.—Section 215(a) of the Social Secu- 9 rity Act (42 U.S.C. 415(a)) is amended by inserting after 10 paragraph (7) the following: 11 ‘‘(8)(A) In the case of an individual whose primary 12 insurance amount would be computed under paragraph 13 (1) of this subsection— 14 VerDate Sep 11 2014 03:51 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2337.IH H2337 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 2337 IH ‘‘(i) who first becomes eligible for an old-age or 1 disability insurance benefit after 2022 and who sub- 2 sequently becomes entitled to such benefit; 3 ‘‘(ii) who has earnings derived from noncovered 4 service performed in a year after 1977 and is enti- 5 tled to a monthly periodic payment based on such 6 earnings; and 7 ‘‘(iii) who has less than 30 years of coverage 8 (as defined for purposes of paragraph (7)(D)), 9 the primary insurance amount of such individual shall be 10 the higher of the amount computed or recomputed under 11 paragraph (7) without regard to this paragraph or the 12 amount computed or recomputed under this paragraph. 13 ‘‘(B) The primary insurance amount of an individual 14 described in subparagraph (A), as computed or recom- 15 puted under this paragraph, shall be the product derived 16 by multiplying— 17 ‘‘(i) the individual’s primary insurance amount, 18 as determined under paragraph (1) of this sub- 19 section and subparagraph (C) of this paragraph, by 20 ‘‘(ii) a fraction— 21 ‘‘(I) the numerator of which is the individ- 22 ual’s average indexed monthly earnings (deter- 23 mined without regard to subparagraph (C)), 24 and 25 VerDate Sep 11 2014 03:51 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2337.IH H2337 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 2337 IH ‘‘(II) the denominator of which is an 1 amount equal to the individual’s average in- 2 dexed monthly earnings (as determined under 3 subparagraph (C)), 4 rounded, if not a multiple of $0.10, to the next lower mul- 5 tiple of $0.10. 6 ‘‘(C)(i) For purposes of determining an individual’s 7 primary insurance amount and average indexed monthly 8 earnings pursuant to clauses (i) and (ii)(II) of subpara- 9 graph (B), the individual’s average indexed monthly earn- 10 ings shall be determined by treating all recorded non- 11 covered earnings (as defined in clause (ii)(I)) derived by 12 the individual from noncovered service performed in each 13 year after 1977 as ‘wages’ (as defined in section 209 for 14 purposes of this title), which shall be treated as included 15 in the individual’s adjusted total covered earnings (as de- 16 fined in clause (ii)(II)) for such calendar year together 17 with amounts consisting of ‘wages’ (as so defined without 18 regard to this subparagraph) paid during such calendar 19 year and self-employment income (as defined in section 20 211(b)) for taxable years ending with or during such cal- 21 endar year. 22 ‘‘(ii) For purposes of this subparagraph: 23 ‘‘(I) The term ‘recorded noncovered earnings’ 24 means earnings derived from noncovered service 25 VerDate Sep 11 2014 03:51 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2337.IH H2337 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 2337 IH (other than noncovered service as a member of a 1 uniformed service (as defined in section 210(m))) for 2 which satisfactory evidence is determined by the 3 Commissioner to be available in the records of the 4 Commissioner. 5 ‘‘(II) The term ‘adjusted total covered earnings’ 6 means, in connection with an individual for any cal- 7 endar year, the sum of the wages paid to the indi- 8 vidual during such calendar year (as adjusted under 9 subsection (b)(3)) plus the self-employment income 10 derived by the individual during any taxable year 11 ending with or during such calendar year (as ad- 12 justed under subsection (b)(3)). 13 ‘‘(iii) The Commissioner of Social Security shall pro- 14 vide by regulation or other public guidance for methods 15 for determining whether satisfactory evidence is available 16 in the records of the Commissioner for earnings for non- 17 covered service (other than noncovered service as a mem- 18 ber of a uniformed service (as defined in section 210(m))) 19 to be treated as recorded noncovered earnings. Such meth- 20 ods shall provide for reliance on earnings information pro- 21 vided to the Commissioner by employers and which, as de- 22 termined by the Commissioner, constitute a reasonable 23 basis for treatment of earnings for noncovered service as 24 recorded noncovered earnings. In making determinations 25 VerDate Sep 11 2014 03:51 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2337.IH H2337 pbinns on DSKJLVW7X2PROD with BILLS 6 •HR 2337 IH under this clause, the Commissioner shall also take into 1 account any documentary or other evidence of earnings de- 2 rived from noncovered service by an individual which is 3 provided by the individual to the Commissioner and which 4 the Commissioner considers appropriate as a reasonable 5 basis for treatment of such earnings as recorded non- 6 covered earnings. 7 ‘‘(iv) In the case of any individual who, at the time 8 of application for old-age or disability insurance benefits 9 under this title, has recorded noncovered earnings in an 10 amount the Commissioner of Social Security determines 11 may entitle the individual to a monthly periodic payment 12 based on such earnings (but whose application does not 13 report such a monthly periodic payment), the Commis- 14 sioner shall reconfirm with the individual whether such a 15 monthly periodic payment is being paid in order to ensure 16 the proper application of paragraph (7) and this para- 17 graph. 18 ‘‘(D) Upon the death of an individual whose primary 19 insurance amount is computed or recomputed under this 20 paragraph, such primary insurance amount shall be com- 21 puted or recomputed under paragraph (1) of this sub- 22 section. 23 ‘‘(E) In the case of any individual whose primary in- 24 surance amount would be computed under this paragraph 25 VerDate Sep 11 2014 03:51 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2337.IH H2337 pbinns on DSKJLVW7X2PROD with BILLS 7 •HR 2337 IH who first becomes entitled after 1985 to a monthly peri- 1 odic payment made by a foreign employer or foreign coun- 2 try that is based in whole or in part upon noncovered serv- 3 ice, the primary insurance amount of such individual shall 4 be computed or recomputed under paragraph (7) or para- 5 graph (1), as applicable, for months beginning with the 6 first month of the individual’s initial entitlement to such 7 monthly periodic payment.’’. 8 (b) CONFORMING AMENDMENTS.—Section 9 215(a)(7)(A) of such Act (42 U.S.C. 415(a)(7)(A)) is 10 amended— 11 (1) by striking ‘‘hereafter in this paragraph and 12 in subsection (d)(3)’’ and inserting ‘‘in this para- 13 graph, paragraph (8), and subsection (d)(3)’’; and 14 (2) by striking ‘‘shall be computed or recom- 15 puted’’ and inserting ‘‘shall, subject to paragraph 16 (8), be computed or recomputed’’. 17 (c) EFFECTIVE DATE.—The amendments made by 18 this section shall apply with respect to monthly insurance 19 benefits payable on or after January 1, 2023. 20 VerDate Sep 11 2014 03:51 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2337.IH H2337 pbinns on DSKJLVW7X2PROD with BILLS 8 •HR 2337 IH SEC. 3. ADDITIONAL MONTHLY PAYMENT FOR CERTAIN IN- 1 DIVIDUALS WHOSE BENEFIT AMOUNT IS RE- 2 DUCED BY THE WINDFALL ELIMINATION 3 PROVISION. 4 (a) IN GENERAL.—Section 215(a) of such Act (42 5 U.S.C. 415(a)), as amended by section 2(a), is further 6 amended by adding at the end the following: 7 ‘‘(9)(A) For any month beginning at least 270 days 8 after the date of the enactment of the Public Servants 9 Protection and Fairness Act of 2021, the Commissioner 10 of Social Security shall, subject to subparagraphs (D) and 11 (E), make an additional monthly payment to each indi- 12 vidual who is an eligible individual for such month, in an 13 amount equal to the amount determined under subpara- 14 graph (C) with respect to such eligible individual. 15 ‘‘(B) For purposes of this paragraph, the term ‘eligi- 16 ble individual’ for a month means an individual (other 17 than an individual described in paragraph (8)(E)) who— 18 ‘‘(i) first becomes eligible for an old-age or dis- 19 ability insurance benefit under this title before 2023; 20 and 21 ‘‘(ii) is entitled to an old-age or disability insur- 22 ance benefit under this title for such month based 23 on a primary insurance amount that was computed 24 or recomputed under paragraph (7) (and not subse- 25 VerDate Sep 11 2014 03:51 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2337.IH H2337 pbinns on DSKJLVW7X2PROD with BILLS 9 •HR 2337 IH quently recomputed under any other paragraph of 1 this subsection). 2 For purposes of clause (i), an individual shall be deemed 3 eligible for a benefit for a month if, upon filing application 4 therefor in such month, the individual would be entitled 5 to such benefit for such month. For purposes of clause 6 (ii), an individual shall be deemed entitled to a benefit 7 based on a primary insurance amount that was computed 8 or recomputed under paragraph (7) if such benefit would 9 be based on such a primary insurance amount but for the 10 application of paragraph (1)(C). 11 ‘‘(C)(i) The amount determined under this paragraph 12 with respect to an eligible individual is $150, except that 13 in any case in which the amount by which the primary 14 insurance amount of such eligible individual that would 15 be computed for the individual’s initial computation month 16 under this subsection without regard to paragraph (7) ex- 17 ceeds the primary insurance amount of such eligible indi- 18 vidual computed for such month under this subsection 19 (taking paragraph (7) into account) is less than $150, the 20 amount determined under this paragraph shall equal the 21 amount of such excess. 22 ‘‘(ii) For purposes of this subparagraph, the term 23 ‘initial computation month’ means, with respect to an indi- 24 vidual, the later of— 25 VerDate Sep 11 2014 03:51 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2337.IH H2337 pbinns on DSKJLVW7X2PROD with BILLS 10 •HR 2337 IH ‘‘(I) the 1st month beginning at least 270 days 1 after the date of the enactment of the Public Serv- 2 ants Protection and Fairness Act of 2021; or 3 ‘‘(II) the 1st month for which the individual’s 4 primary insurance amount is computed or recom- 5 puted under paragraph (7). 6 ‘‘(D) In any case in which this title provides that no 7 monthly benefit under section 202 or 223 shall be paid 8 to an individual for a month, no additional monthly pay- 9 ment shall be paid to the individual for such month. This 10 subparagraph shall not apply in the case of an individual 11 whose monthly benefit under section 202 or 223 is re- 12 duced, regardless of the amount of the reduction, based 13 on— 14 ‘‘(i) the individual’s receipt of other income or 15 benefits for such month; or 16 ‘‘(ii) the adjustment or recovery of an overpay- 17 ment under section 204. 18 ‘‘(E) Except for purposes of adjustment or recovery 19 of an overpayment under section 204, an additional 20 monthly payment under this paragraph shall not be sub- 21 ject to any reduction or deduction under [Text truncated for display. Full text available on Congress.gov.]