Protecting and Preserving Social Security Act

I 116TH CONGRESS 1ST SESSION H. R. 2302 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, and to provide for Social Security benefit protection. IN THE HOUSE OF REPRESENTATIVES APRIL 12, 2019 Mr. DEUTCH (for himself, Mr. CICILLINE, Mr. SABLAN, Ms. KAPTUR, Mr. HASTINGS, Mr. SARBANES, Ms. PINGREE, and Mr. COHEN) 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 Labor, 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, and to provide for Social Security benefit protection. 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 AND TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Protecting and Preserving Social Security Act’’. 5 VerDate Sep 11 2014 21:18 Apr 23, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2302.IH H2302 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 2302 IH (b) TABLE OF CONTENTS.—The table of contents of 1 this Act is as follows: 2 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 contribu- tion and benefit base after 2019. Sec. 202. Inclusion of surplus earnings in Social Security benefit formula. TITLE I—COST-OF-LIVING 3 INCREASES 4 SEC. 101. CONSUMER PRICE INDEX FOR ELDERLY CON- 5 SUMERS. 6 (a) IN GENERAL.—The Bureau of Labor Statistics 7 of the Department of Labor shall prepare and publish an 8 index for each calendar month to be known as the ‘‘Con- 9 sumer Price Index for Elderly Consumers’’ that indicates 10 changes over time in expenditures for consumption which 11 are typical for individuals in the United States who are 12 62 years of age or older. 13 (b) EFFECTIVE DATE.—Subsection (a) shall apply 14 with respect to calendar months ending on or after July 15 31 of the calendar year following the calendar year in 16 which this Act is enacted. 17 (c) AUTHORIZATION OF APPROPRIATIONS.—There 18 are authorized to be appropriated such sums as are nec- 19 essary to carry out the provisions of this section. 20 VerDate Sep 11 2014 21:18 Apr 23, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2302.IH H2302 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 2302 IH SEC. 102. COMPUTATION OF COST-OF-LIVING INCREASES. 1 (a) IN GENERAL.—Section 215(i)(1) of the Social Se- 2 curity Act (42 U.S.C. 415(i)(1)) is amended by adding 3 at the end the following new subparagraph: 4 ‘‘(H) the term ‘Consumer Price Index’ 5 means the Consumer Price Index for Elderly 6 Consumers (CPI–E, as published by the Bu- 7 reau of Labor Statistics of the Department of 8 Labor).’’. 9 (b) APPLICATION TO PRE-1979 LAW.— 10 (1) IN GENERAL.—Section 215(i)(1) of the So- 11 cial Security Act as in effect in December 1978, and 12 as applied in certain cases under the provisions of 13 such Act as in effect after December 1978, is 14 amended by adding at the end the following new 15 subparagraph: 16 ‘‘(D) the term ‘Consumer Price Index’ 17 means the Consumer Price Index for Elderly 18 Consumers (CPI–E, as published by the Bu- 19 reau of Labor Statistics of the Department of 20 Labor).’’. 21 (2) CONFORMING AMENDMENT.—Section 22 215(i)(4) of the Social Security Act (42 U.S.C. 23 415(i)(4)) is amended by inserting ‘‘and by section 24 102 of the Protecting and Preserving Social Security 25 Act’’ after ‘‘1986’’. 26 VerDate Sep 11 2014 21:18 Apr 23, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2302.IH H2302 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 2302 IH (c) NO EFFECT ON ADJUSTMENTS UNDER OTHER 1 LAWS.—Section 215(i) of the Social Security Act (42 2 U.S.C. 415(i)) is amended by adding at the end the fol- 3 lowing: 4 ‘‘(6) Any provision of law (other than in this 5 title or title XVI) which provides for adjustment of 6 an amount based on a change in benefit amounts re- 7 sulting from a determination made under this sub- 8 section shall be applied and administered without re- 9 gard to the amendments made by section 102 of the 10 Protecting and Preserving Social Security Act.’’. 11 (d) NO EFFECT ON ELIGIBILITY FOR SSI AND MED- 12 ICAID.—Any increase to an individual’s monthly benefit 13 amount under title II of the Social Security Act as a result 14 of the amendments made by this section shall not be re- 15 garded as income or resources for any subsequent month, 16 for purposes of determining the eligibility of the recipient 17 (or the recipient’s spouse or family) for benefits or assist- 18 ance, or the amount or extent of benefits or assistance, 19 under the Supplemental Security Income program or the 20 Medicaid program. 21 (e) EFFECTIVE DATE.—The amendments made by 22 this section shall apply to determinations made with re- 23 spect to cost-of-living computation quarters (as defined in 24 section 215(i)(1)(B) of the Social Security Act (42 U.S.C. 25 VerDate Sep 11 2014 21:18 Apr 23, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2302.IH H2302 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 2302 IH 415(i)(1)(B))) ending on or after September 30 of the sec- 1 ond calendar year following the calendar year in which this 2 Act is enacted. 3 TITLE II—CONTRIBUTION AND 4 BENEFIT FAIRNESS 5 SEC. 201. DETERMINATION OF WAGES AND SELF-EMPLOY- 6 MENT INCOME ABOVE CONTRIBUTION AND 7 BENEFIT BASE AFTER 2019. 8 (a) DETERMINATION OF WAGES ABOVE CONTRIBU- 9 TION AND BENEFIT BASE AFTER 2019.— 10 (1) AMENDMENTS TO THE INTERNAL REVENUE 11 CODE OF 1986.—Section 3121 of the Internal Rev- 12 enue Code of 1986 is amended— 13 (A) in subsection (a)(1), by inserting ‘‘the 14 applicable percentage (determined under sub- 15 section (c)(1)) of’’ before ‘‘that part of the re- 16 muneration’’; and 17 (B) in subsection (c), by striking ‘‘(c) IN- 18 CLUDED AND EXCLUDED SERVICE.—For pur- 19 poses of this chapter, if’’ and inserting the fol- 20 lowing: 21 ‘‘(c) SPECIAL RULES FOR WAGES AND EMPLOY- 22 MENT.— 23 ‘‘(1) APPLICABLE PERCENTAGE OF REMUNERA- 24 TION IN DETERMINING WAGES.—For purposes of 25 VerDate Sep 11 2014 21:18 Apr 23, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2302.IH H2302 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 2302 IH paragraph (1) of subsection (a), the applicable per- 1 centage for a calendar year, in connection with any 2 calendar year referred to in such subparagraph, 3 shall be the percentage determined in accordance 4 with the following table: 5 The applicable ‘‘In the case of: percentage is: Calendar year 2020 ..................................................................... 86 Calendar year 2021 ..................................................................... 71 Calendar year 2022 ..................................................................... 57 Calendar year 2023 ..................................................................... 43 Calendar year 2024 ..................................................................... 29 Calendar year 2025 ..................................................................... 14 Calendar years after 2025 ........................................................... 0. ‘‘(2) INCLUDED AND EXCLUDED SERVICE.—For 6 purposes of this chapter, if’’. 7 (2) AMENDMENTS TO THE SOCIAL SECURITY 8 ACT.—Section 209 of the Social Security Act (42 9 U.S.C. 409) is amended— 10 (A) in subsection (a)(1)— 11 (i) in subparagraph (I)— 12 (I) by inserting ‘‘and before 13 2020’’ after ‘‘1974’’; and 14 (II) by inserting ‘‘and’’ after the 15 semicolon; and 16 (ii) by adding at the end the following 17 new subparagraph: 18 ‘‘(J) The applicable percentage (deter- 19 mined under subsection (l)) of that part of re- 20 muneration which, after remuneration (other 21 VerDate Sep 11 2014 21:18 Apr 23, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2302.IH H2302 pamtmann on DSKBFK8HB2PROD with BILLS 7 •HR 2302 IH than remuneration referred to in the succeeding 1 subsections of this section) equal to the con- 2 tribution and benefit base (determined under 3 section 230) with respect to employment has 4 been paid to an individual during any calendar 5 year after 2019 with respect to which such con- 6 tribution and benefit base is effective, is paid to 7 such individual during such calendar year;’’; 8 and 9 (B) by adding at the end the following new 10 subsection: 11 ‘‘(l) For purposes of subparagraph (J) of subsection 12 (a)(1), the applicable percentage for a calendar year, in 13 connection with any calendar year referred to in such sub- 14 paragraph, shall be the percentage determined in accord- 15 ance with the following table: 16 The applicable ‘‘In the case of: percentage is: Calendar year 2020 ..................................................................... 86 Calendar year 2021 ..................................................................... 71 Calendar year 2022 ..................................................................... 57 Calendar year 2023 ..................................................................... 43 Calendar year 2024 ..................................................................... 29 Calendar year 2025 ..................................................................... 14 Calendar years after 2025 ........................................................... 0.’’. (3) EFFECTIVE DATE.—The amendments made 17 by this subsection shall apply with respect to remu- 18 neration paid in calendar years after 2019. 19 VerDate Sep 11 2014 21:18 Apr 23, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2302.IH H2302 pamtmann on DSKBFK8HB2PROD with BILLS 8 •HR 2302 IH (b) DETERMINATION OF SELF-EMPLOYMENT IN- 1 COME ABOVE CONTRIBUTION AND BENEFIT BASE AFTER 2 2019.— 3 (1) AMENDMENTS TO THE INTERNAL REVENUE 4 CODE OF 1986.—Section 1402 of the Internal Rev- 5 enue Code of 1986 is amended— 6 (A) in subsection (b)(1), by inserting ‘‘an 7 amount equal to the applicable percentage (as 8 determined under subsection (d)(2)) of’’ before 9 ‘‘that part of the net earnings from self-employ- 10 ment’’; and 11 (B) in subsection (d)— 12 (i) by striking ‘‘(d) EMPLOYEE AND 13 WAGES.—The term’’ and inserting the fol- 14 lowing: 15 ‘‘(d) RULES AND DEFINITIONS.— 16 ‘‘(1) EMPLOYEE AND WAGES.—The term’’; and 17 (ii) by adding at the end the fol- 18 lowing: 19 ‘‘(2) APPLICABLE PERCENTAGE OF NET EARN- 20 INGS FROM SELF-EMPLOYMENT IN DETERMINING 21 SELF-EMPLOYMENT INCOME.—For purposes of para- 22 graph (1) of subsection (b), the applicable percent- 23 age for a taxable year beginning in any calendar 24 year referred to in such paragraph shall be the per- 25 VerDate Sep 11 2014 21:18 Apr 23, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2302.IH H2302 pamtmann on DSKBFK8HB2PROD with BILLS 9 •HR 2302 IH centage determined in accordance with the following 1 table: 2 The applicable ‘‘In the case of: percentage is: Calendar year 2020 ..................................................................... 86 Calendar year 2021 ..................................................................... 71 Calendar year 2022 ..................................................................... 57 Calendar year 2023 ..................................................................... 43 Calendar year 2024 ..................................................................... 29 Calendar year 2025 ..................................................................... 14 Calendar years after 2025 ........................................................... 0.’’. (2) AMENDMENTS TO THE SOCIAL SECURITY 3 ACT.—Section 211 of the Social Security Act (42 4 U.S.C. 411) is amended— 5 (A) in subsection (b)— 6 (i) in paragraph (1)(I)— 7 (I) by striking ‘‘or’’ after the 8 semicolon; and 9 (II) by inserting ‘‘and before 10 2020’’ after ‘‘1974’’; 11 (ii) by redesignating paragraph (2) as 12 paragraph (3); and 13 (iii) by inserting after paragraph (1) 14 the following new paragraph: 15 ‘‘(2) For any taxable year beginning in any cal- 16 endar year after 2019, an amount equal to the appli- 17 cable percentage (as determined under subsection 18 (l)) of that part of net earnings from self-employ- 19 ment which is in excess of (A) an amount equal to 20 the contribution and benefit base (determined under 21 VerDate Sep 11 2014 21:18 Apr 23, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2302.IH H2302 pamtmann on DSKBFK8HB2PROD with BILLS 10 •HR 2302 IH section 230) that is effective for such calendar year, 1 minus (B) the amount of the wages paid to such in- 2 dividual during such taxable year; or’’; and 3 (B) by adding at the end the following: 4 ‘‘(l) For purposes of paragraph (2) of subsection (b), 5 the applicable percentage for a taxable year beginning in 6 any calendar year referred to in such paragraph, shall be 7 the percentage determined in accordance with the fol- 8 lowing table: 9 The applicable ‘‘In the case of: percentage is: Calendar year 2020 ..................................................................... 86 Calendar year 2021 ..................................................................... 71 Calendar year 2022 ..................................................................... 57 Calendar year 2023 ..................................................................... 43 Calendar year 2024 ..................................................................... 29 Calendar year 2025 ..................................................................... 14 Calendar years after 2025 ........................................................... 0.’’. (3) EFFECTIVE DATE.—The amendments made 10 by this subsection shall apply with respect to taxable 11 years beginning during or after calendar year 2020. 12 SEC. 202. INCLUSION OF SURPLUS EARNINGS IN SOCIAL SE- 13 CURITY BENEFIT FORMULA. 14 (a) INCLUSION OF SURPLUS AVERAGE INDEXED 15 MONTHLY EARNINGS IN DETERMINATION OF PRIMARY 16 INSURANCE AMOUNTS.— 17 (1) IN GENERAL.—Section 215(a)(1)(A) of the 18 Social Security Act (42 U.S.C. 415(a)(1)(A)) is 19 amended— 20 VerDate Sep 11 2014 21:18 Apr 23, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2302.IH H2302 pamtmann on DSKBFK8HB2PROD [Text truncated for display. Full text available on Congress.gov.]