Equal Treatment of Public Servants Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 3934 To amend title II of the Social Security Act to replace the windfall elimination provision with a formula equalizing benefits for certain individuals with noncovered employment, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JULY 24, 2019 Mr. BRADY (for himself, Mr. ARRINGTON, Mr. BABIN, Mr. BACON, Mr. BUCSHON, Mr. BURGESS, Mr. CARTER of Texas, Mr. CONAWAY, Mr. FLORES, Mr. GONZALEZ of Texas, Ms. GRANGER, Mr. GRAVES of Lou- isiana, Mr. GUTHRIE, Mr. KEVIN HERN of Oklahoma, Mr. HURD of Texas, Mr. KING of Iowa, Mr. LATTA, Mr. MARCHANT, Mr. MCCAUL, Mr. OLSON, Mr. RATCLIFFE, Mr. SHIMKUS, Mr. TAYLOR, Mr. VELA, Mr. WEBER of Texas, Mr. WRIGHT, Mr. RICE of South Carolina, and Mr. CRENSHAW) introduced the following bill; which was referred to the Com- mittee on Ways and Means A BILL To amend title II of the Social Security Act to replace the windfall elimination provision with a formula equal- izing benefits for certain individuals with noncovered em- ployment, and for other purposes. 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 ‘‘Equal Treatment of 4 Public Servants Act of 2019’’. 5 VerDate Sep 11 2014 21:21 Aug 13, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3934.IH H3934 jspears on DSK3GMQ082PROD with BILLS 2 •HR 3934 IH SEC. 2. REPLACEMENT OF THE WINDFALL ELIMINATION 1 PROVISION WITH A FORMULA EQUALIZING 2 BENEFITS FOR CERTAIN INDIVIDUALS WITH 3 NONCOVERED EMPLOYMENT. 4 (a) IN GENERAL.—Section 215(a) of the Social Secu- 5 rity Act (42 U.S.C. 415(a)) is amended by inserting after 6 paragraph (7) the following: 7 ‘‘(8)(A) In the case of an individual whose primary 8 insurance amount would be computed under paragraph 9 (1) of this subsection— 10 ‘‘(i) who first becomes eligible for an old-age or 11 disability insurance benefit after 2060, 12 ‘‘(ii) who subsequently becomes entitled to such 13 benefit, and 14 ‘‘(iii) who has earnings derived from noncovered 15 service performed in a year after 1977, 16 the primary insurance amount of such individual shall be 17 the amount computed or recomputed under this para- 18 graph. 19 ‘‘(B) The primary insurance amount of an individual 20 described in subparagraph (A), as computed or recom- 21 puted under this paragraph, shall be the product derived 22 by multiplying— 23 ‘‘(i) the individual’s primary insurance amount, 24 as determined under paragraph (1) of this sub- 25 section and subparagraph (C) of this paragraph, by 26 VerDate Sep 11 2014 21:21 Aug 13, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3934.IH H3934 jspears on DSK3GMQ082PROD with BILLS 3 •HR 3934 IH ‘‘(ii) a fraction— 1 ‘‘(I) the numerator of which is the individ- 2 ual’s average indexed monthly earnings (deter- 3 mined without regard to subparagraph (C)), 4 and 5 ‘‘(II) the denominator of which is an 6 amount equal to the individual’s average in- 7 dexed monthly earnings (as determined under 8 subparagraph (C)), 9 rounded, if not a multiple of $0.10, to the next lower mul- 10 tiple of $0.10. 11 ‘‘(C)(i) For purposes of determining an individual’s 12 primary insurance amount pursuant to clauses (i) and 13 (ii)(II) of subparagraph (B), the individual’s average in- 14 dexed monthly earnings shall be determined by treating 15 all recorded noncovered earnings (as defined in clause 16 (ii)(I)) derived by the individual from noncovered service 17 performed in each year after 1977 as ‘wages’ (as defined 18 in section 209 for purposes of this title), which shall be 19 treated as included in the individual’s adjusted total cov- 20 ered earnings (as defined in clause (ii)(II)) for such cal- 21 endar year together with amounts consisting of ‘wages’ (as 22 so defined without regard to this subparagraph) paid dur- 23 ing such calendar year and self-employment income (as 24 VerDate Sep 11 2014 01:13 Aug 09, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3934.IH H3934 jspears on DSK3GMQ082PROD with BILLS 4 •HR 3934 IH defined in section 211(b)) for taxable years ending with 1 or during such calendar year. 2 ‘‘(ii) For purposes of this subparagraph: 3 ‘‘(I) The term ‘recorded noncovered earnings’ 4 means earnings derived from noncovered service 5 (other than noncovered service as a member of a 6 uniformed service (as defined in section 210(m)) for 7 which satisfactory evidence is determined by the 8 Commissioner to be available in the records of the 9 Commissioner. 10 ‘‘(II) The term ‘adjusted total covered earnings’ 11 means, in connection with an individual for any cal- 12 endar year, the sum of the wages paid to the indi- 13 vidual during such calendar year (as adjusted under 14 subsection (b)(3)) plus the self-employment income 15 derived by the individual during any taxable year 16 ending with or during such calendar year (as ad- 17 justed under subsection (b)(3)). 18 ‘‘(iii) The Commissioner of Social Security shall pro- 19 vide by regulation or other public guidance for methods 20 for determining whether satisfactory evidence is available 21 in the records of the Commissioner for earnings for non- 22 covered service (other than noncovered service as a mem- 23 ber of a uniformed service (as defined in section 210(m)) 24 to be treated as recorded noncovered earnings. Such meth- 25 VerDate Sep 11 2014 01:13 Aug 09, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3934.IH H3934 jspears on DSK3GMQ082PROD with BILLS 5 •HR 3934 IH ods shall provide for reliance on earnings information 1 which is provided to the Commissioner by employers and 2 which, as determined by the Commissioner, constitute a 3 reasonable basis for treatment of earnings for noncovered 4 service as recorded noncovered earnings. In making deter- 5 minations under this clause, the Commissioner shall also 6 take into account any documentary or other evidence of 7 earnings derived from noncovered service by an individual 8 which is provided by the individual to the Commissioner 9 and which the Commissioner considers appropriate as a 10 reasonable basis for treatment of such earnings as re- 11 corded noncovered earnings. 12 ‘‘(D) Upon the death of an individual whose primary 13 insurance amount is computed or recomputed under this 14 paragraph, such primary insurance amount shall be com- 15 puted or recomputed under paragraph (1) of this sub- 16 section. 17 ‘‘(E) In the case of any individual whose primary in- 18 surance amount would be computed under this paragraph 19 who first becomes entitled after 1985 to a monthly peri- 20 odic payment made by a foreign employer or foreign coun- 21 try that is based in whole or in part upon noncovered serv- 22 ice, the primary insurance amount of such individual shall 23 be computed or recomputed under paragraph (7) or para- 24 graph (1), as applicable, for months beginning with the 25 VerDate Sep 11 2014 01:13 Aug 09, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3934.IH H3934 jspears on DSK3GMQ082PROD with BILLS 6 •HR 3934 IH first month of the individual’s initial entitlement to such 1 monthly periodic payment.’’. 2 (b) CONFORMING AMENDMENTS.—Section 3 215(a)(7)(A) of such Act (42 U.S.C. 415(a)(7)(A)) is 4 amended— 5 (1) in clause (i)— 6 (A) by striking ‘‘after 1985’’ and inserting 7 ‘‘after 1985 and before 2061’’; and 8 (B) by striking ‘‘or’’ at the end; 9 (2) in clause (ii)— 10 (A) by striking ‘‘after 1985’’ each place it 11 appears and inserting ‘‘after 1985 and before 12 2061’’; and 13 (B) by adding ‘‘or’’ at the end; 14 (3) by inserting after clause (ii) the following: 15 ‘‘(iii) is an individual described in paragraph 16 (8)(E),’’; and 17 (4) by striking ‘‘hereafter in this paragraph and 18 in subsection (d)(3)’’ and inserting ‘‘in this para- 19 graph, paragraphs (8) and (9), and subsection 20 (d)(3)’’. 21 (c) EFFECTIVE DATE.—The amendments made by 22 this section shall apply with respect to monthly insurance 23 benefits payable on or after January 1, 2022. 24 VerDate Sep 11 2014 01:13 Aug 09, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3934.IH H3934 jspears on DSK3GMQ082PROD with BILLS 7 •HR 3934 IH SEC. 3. BENEFIT CALCULATION DURING TRANSITION PE- 1 RIOD. 2 (a) IN GENERAL.—Section 215(a) of the Social Secu- 3 rity Act (42 U.S.C. 415(a)), as amended by section 2, is 4 further amended by inserting after paragraph (8) the fol- 5 lowing: 6 ‘‘(9)(A) In the case of an individual whose primary 7 insurance amount would be computed under paragraph 8 (1) of this subsection— 9 ‘‘(i) who first becomes eligible for an old-age or 10 disability insurance benefit after 2021 and before 11 2061, 12 ‘‘(ii) who subsequently becomes entitled to such 13 benefit, and 14 ‘‘(iii) who has earnings derived from noncovered 15 service performed in a year after 1977, 16 the primary insurance amount of such individual shall be 17 the higher of the amount computed or recomputed under 18 paragraph (7) without regard to this paragraph or the 19 amount that would be computed or recomputed under 20 paragraph (8) if the individual were an individual de- 21 scribed in subparagraph (A) of such paragraph.’’. 22 (b) CONFORMING AMENDMENT.—Section 23 215(a)(7)(A) of such Act (42 U.S.C. 415(a)(7)(A)), as 24 amended by section 2(b), is further amended by striking 25 VerDate Sep 11 2014 01:13 Aug 09, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3934.IH H3934 jspears on DSK3GMQ082PROD with BILLS 8 •HR 3934 IH ‘‘shall be computed or recomputed’’ and inserting ‘‘shall, 1 subject to paragraph (9), be computed or recomputed’’. 2 (c) EFFECTIVE DATE.—The amendments made by 3 this section shall apply with respect to monthly insurance 4 benefits payable on or after January 1, 2022. 5 SEC. 4. ADDITIONAL MONTHLY PAYMENT FOR INDIVID- 6 UALS WHOSE BENEFIT AMOUNT IS REDUCED 7 BY THE WINDFALL ELIMINATION PROVISION. 8 (a) IN GENERAL.—Section 215(a) of such Act (42 9 U.S.C. 415(a)), as amended by sections 2 and 3, is further 10 amended by adding at the end the following: 11 ‘‘(10)(A) For any month in a calendar year after 12 2019, the Commissioner of Social Security shall, subject 13 to subparagraphs (C) and (D), make an additional month- 14 ly payment of $100 to each individual who is an eligible 15 individual for such month, and an additional monthly pay- 16 ment of $50 to each individual (other than an eligible indi- 17 vidual) who is entitled to a benefit under section 202 for 18 such month on the basis of the wages and self-employment 19 income of such eligible individual. 20 ‘‘(B) For purposes of this paragraph, the term ‘eligi- 21 ble individual’ for a month means an individual who— 22 ‘‘(i)(I) first becomes eligible for an old-age or 23 disability insurance benefit under this title before 24 2022; or 25 VerDate Sep 11 2014 01:13 Aug 09, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3934.IH H3934 jspears on DSK3GMQ082PROD with BILLS 9 •HR 3934 IH ‘‘(II) is an individual described in paragraph 1 (8)(E); and 2 ‘‘(ii) is entitled to an old-age or disability insur- 3 ance benefit under this title for such month based 4 on a primary insurance amount that was computed 5 or recomputed under paragraph (7) (and not subse- 6 quently recomputed under any other paragraph of 7 this subsection). 8 ‘‘(C) In any case in which this title provides that no 9 monthly benefit under section 202 or 223 shall be paid 10 to an individual for a month, no additional monthly pay- 11 ment shall be paid to the individual for such month. This 12 subparagraph shall not apply in the case of an individual 13 whose monthly benefit under section 202 or 223 is re- 14 duced, regardless of the amount of the reduction, based 15 on the individual’s receipt of other income or benefits for 16 such month or the application of section 203(a) or due 17 to the adjustment or recovery of an overpayment under 18 section 204. 19 ‘‘(D)(i) An individual is not entitled to receive more 20 than one additional monthly payment for a month under 21 this paragraph. 22 ‘‘(ii) An eligible individual who is entitled to a benefit 23 under section 202 on the basis of the wages and self-em- 24 ployment income of another eligible individual for a month 25 VerDate Sep 11 2014 01:13 Aug 09, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3934.IH H3934 jspears on DSK3GMQ082PROD with BILLS 10 •HR 3934 IH shall receive an additional monthly payment under this 1 paragraph in the amount of $100 for such month. 2 ‘‘(E) Except for purposes of adjustment or recovery 3 of an overpayment under section 204, an additional 4 monthly payment under this paragraph shall not be sub- 5 ject to any reduction or deduction under this title. 6 ‘‘(F) Whenever benefit amounts under this title are 7 increased by any percentage effective with any month as 8 a result of a determination made under subsection (i), 9 each of the dollar amounts in subparagraph (A) shall be 10 increased by the same percentage for months beginning 11 with such month.’’. 12 (b) EFFECTIVE DATE.—The amendments made by 13 this section shall apply with respect to monthly insurance 14 benefits payable on or after January 1, 2020. 15 SEC. 5. REPORTING OF NONCOVERED EARNINGS ON SO- 16 CIAL SECURITY ACCOUNT STATEMENTS. 17 (a) IN GENERAL.—Section 1143(a)(2) of the Social 18 Security Act (42 U.S.C. 1320b–13(a)(2)) is amended— 19 (1) by redesignating subparagraphs (B) 20 through (E) as subparagraphs (C) through (F); and 21 (2) by inserting after subparagraph (A) the fol- 22 lowing: 23 ‘‘(B) the amount of earnings derived by 24 the eligible individual from service performed 25 VerDate Sep 11 2014 01:13 Aug 09, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3934.IH H3934 jspears on DSK3GMQ082PROD with BILLS 11 •HR 3934 IH after 1977 which did not constitute employment 1 (as defined in section 210), not including serv- 2 ice as a member of a uniformed service (as de- 3 fined in section 210(m)), as shown by the 4 records of the Commissioner at the date of the 5 request;’’. 6 (b) EFFECTIVE DATE.—The amendments made by 7 this section shall apply with respect to Social Security ac- 8 count statements issued on or after January 1, 2020. 9 SEC. 6. STUDY ON PARTNERING WITH STATE AND LOCAL 10 PENSION SYSTEMS. 11 (a) STUDY.— 12 (1) IN GENERAL.—The Commissioner of Social 13 Security shall study and test the administrative fea- 14 sibility of partnering with State and local pension 15 systems, or other governmental entities, to improve 16 the collection and sharing of information relating to 17 State and local noncovered pensions. 18 (2) COORDINATION WITH STATE AND LOCAL 19 PENSION SYSTEMS.—In conducting the study de- 20 scribed [Text truncated for display. Full text available on Congress.gov.]