What This Bill Does
This bill makes changes to Social Security to increase benefits for certain people. It raises the minimum monthly benefit for workers who earned low wages over their lifetime, creates a bonus for people who have received benefits for at least 16 years, lets college students get benefits until age 26 instead of 19, and increases taxes on wages and self-employment income.
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Who It Affects
People receiving Social Security benefits, especially those who earned low wages during their careers; college students who are dependents of Social Security beneficiaries; employees and employers who pay Social Security taxes; self-employed people who pay Social Security taxes.
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Key Provisions
- The minimum Social Security benefit for lifetime low earners increases based on how many years they worked, ranging from 36.7 percent to 100 percent of the poverty guideline amount (Sec. 2)
- Beneficiaries who have received monthly benefits for at least 16 years after becoming eligible receive an additional increase to their benefits, growing from 20 percent to 100 percent depending on how many years have passed (Sec. 3)
- Unmarried children attending college full-time can receive benefits until age 26 instead of age 19, and the bill defines what qualifies as a post-secondary educational institution (Sec. 4)
- Earnings above a certain wage cap amount are taxed at increasing percentages starting at 90 percent in 2024 and reaching 100 percent in 2034 and beyond (Sec. 5)
- A new 3 percent benefit rate applies to average earnings that exceed the contribution and benefit base (a yearly earnings limit), effective for people who become eligible in 2024 and later (Sec. 6)
- Social Security tax rates on employees, employers, and self-employed people increase gradually from 2024 to 2029 (Sec. 7)
- Increases to Social Security benefits from this bill are not counted as income or resources when determining eligibility for other federal, state, or local assistance programs (Sec. 8)
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What Changes
Currently, the minimum Social Security benefit does not increase based on years worked. This bill ties minimum benefits to poverty guidelines and years of work history. Currently, there is no bonus for beneficiaries who have received benefits for many years. This bill creates a "long-term eligibility" bonus increasing gradually over 20 years. Currently, child benefits end at age 19. This bill extends them to age 26 for full-time college students. Currently, Social Security taxes stop applying after a certain wage amount each year. This bill makes wages above that cap subject to Social Security tax on a phased-in schedule. Social Security tax rates on employees, employers, and self-employed people increase between 2024 and 2029.
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Important Definitions
- "Full-time post-secondary school student" means a person attending full-time at a college, university, or school offering post-secondary education that is run by the government or accredited by a state or nationally recognized accreditor, or whose credits transfer to at least three accredited institutions (Sec. 4)
- "Number of years of work" means one-quarter of the total quarters of work coverage a person earned, plus up to 5 years of caring for a child under age 6 (Sec. 2)
- "Qualified beneficiary" means someone in any calendar year after 2023 if that year begins at least 16 years after the person became eligible for Social Security benefits (Sec. 3)
- "Applicable percentage" means the percentage of earnings subject to Social Security tax, decreasing from 90 percent in 2024 to 0 percent in 2034 and beyond for wages and self-employment income above the wage cap (Sec. 5)
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Effective Date
The increased minimum benefit applies to individuals who become eligible for benefits or die before becoming eligible after 2023 (Sec. 2). The long-term eligibility bonus applies to calendar years after 2023 (Sec. 3). College student benefits extend to applications filed in any calendar year after 2023 (Sec. 4). The new earnings tax rules apply to remuneration paid and self-employment income earned in calendar years after 2023 (Sec. 5 and 5(b)). The new benefit calculation applies to individuals who become eligible after 2023 (Sec. 6). The employment tax increases apply to remuneration received and taxable years beginning after December 31, 2023 (Sec. 7). The rule protecting benefit increases from counting against other assistance programs applies to months after December 2023 (Sec. 8).
I
118TH CONGRESS
1ST SESSION
H. R. 671
To amend title II of the Social Security Act to make various reforms to
Social Security, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 31, 2023
Ms. MOORE of Wisconsin (for herself and Ms. SCHAKOWSKY) introduced the
following bill; which was referred to the Committee on Ways and Means
A BILL
To amend title II of the Social Security Act to make various
reforms to Social Security, 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 ‘‘Social Security En-
4
hancement and Protection Act of 2023’’.
5
SEC. 2. INCREASE IN SPECIAL MINIMUM BENEFIT FOR
6
LIFETIME LOW EARNERS BASED ON YEARS IN
7
THE WORKFORCE.
8
Section 215(a)(1)(C) of the Social Security Act (42
9
U.S.C. 415(a)(1)(C)) is amended to read as follows:
10
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‘‘(C)(i) Effective with respect to the benefits of indi-
1
viduals who become eligible for old-age insurance benefits
2
or disability insurance benefits (or die before becoming so
3
eligible) after 2023, no primary insurance amount com-
4
puted under subparagraph (A) may be less than the appli-
5
cable percentage of 1⁄12 of the annual dollar amount deter-
6
mined under clause (iv) for the year in which the amount
7
is determined.
8
‘‘(ii) For purposes of clause (i), the applicable per-
9
centage is the percentage specified in connection with the
10
number of years of work, as set forth in the following
11
table:
12
‘‘If the number of
The applicable
years of work is:
percentage is:
11 ......................................................................................
36.7 percent
12 ......................................................................................
40.0 percent
13 ......................................................................................
43.3 percent
14 ......................................................................................
46.7 percent
15 ......................................................................................
50.0 percent
16 ......................................................................................
53.3 percent
17 ......................................................................................
56.7 percent
18 ......................................................................................
60.0 percent
19 ......................................................................................
63.3 percent
20 ......................................................................................
66.7 percent
21 ......................................................................................
70.0 percent
22 ......................................................................................
73.3 percent
23 ......................................................................................
76.7 percent
24 ......................................................................................
80.0 percent
25 ......................................................................................
83.3 percent
26 ......................................................................................
86.7 percent
27 ......................................................................................
90.0 percent
28 ......................................................................................
93.3 percent
29 ......................................................................................
96.7 percent
30 or more ........................................................................
100.0 percent.
‘‘(iii) The annual dollar amount determined under
13
this clause is—
14
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‘‘(I) for calendar year 2024, the poverty guide-
1
line for 2023; and
2
‘‘(II) for any calendar year after 2024, the an-
3
nual dollar amount for 2024 multiplied by the ratio
4
of—
5
‘‘(aa) the national average wage index (as
6
defined in section 209(k)(1)) for the second cal-
7
endar year preceding the calendar year for
8
which the determination is made, to
9
‘‘(bb) the national average wage index (as
10
so defined) for 2022.
11
‘‘(iv) For purposes of this subparagraph—
12
‘‘(I) the term ‘number of years of work’ means,
13
with respect to an individual, the sum of—
14
‘‘(aa) 1⁄4 of the total number of quarters of
15
coverage credited to such individual (dis-
16
regarding any fraction); and
17
‘‘(bb) the number of years (not exceeding
18
5) in all of which the individual provided care
19
for a child under 6 years of age who resided in
20
the individual’s home; and
21
‘‘(II) the term ‘poverty guideline for 2023’
22
means the annual poverty guideline for 2023 (as up-
23
dated annually in the Federal Register by the De-
24
partment of Health and Human Services under the
25
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•HR 671 IH
authority of section 673(2) of the Omnibus Budget
1
Reconciliation Act of 1981) as applicable to a single
2
individual’’.
3
SEC. 3. ESTABLISHMENT OF AN INCREASED BENEFIT FOR
4
BENEFICIARIES ON ACCOUNT OF LONG-TERM
5
ELIGIBILITY.
6
(a) IN GENERAL.—Section 202 of the Social Security
7
Act (42 U.S.C. 402) is amended by adding at the end the
8
following new subsection:
9
‘‘(aa) INCREASE IN BENEFIT AMOUNTS ON ACCOUNT
10
OF LONG-TERM ELIGIBILITY.—(1) In the case of an indi-
11
vidual who is a qualified beneficiary for a calendar year
12
after 2023, the amount of any monthly insurance benefit
13
of such qualified beneficiary under this section or section
14
223 for any month in such calendar year shall be in-
15
creased in accordance with paragraph (3).
16
‘‘(2)(A) For purposes of this subsection, the term
17
‘qualified beneficiary’ for a calendar year means an indi-
18
vidual in any case in which such calendar year begins at
19
least 16 years after the applicable date of eligibility for
20
such individual.
21
‘‘(B) For purposes of this subsection, the applicable
22
date of eligibility for an individual is the date on which
23
the individual on whose wages and self-employment in-
24
come the monthly insurance benefit is based initially be-
25
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•HR 671 IH
came eligible (or died before becoming eligible) for old-
1
age insurance benefits under subsection (a) or disability
2
insurance benefits under section 223.
3
‘‘(3)(A) The increase required under paragraph (1)
4
with respect to the monthly insurance benefit of an indi-
5
vidual who is a qualified beneficiary for a calendar year
6
shall be equal to the applicable percentage (specified for
7
such benefit in subparagraph (B)) of the full increase
8
amount for such calendar year (determined under sub-
9
paragraph (C)).
10
‘‘(B) The applicable percentage specified for a
11
monthly insurance benefit under this subparagraph for a
12
calendar year is the percentage specified, in connection
13
with the number of years ending after the applicable date
14
of eligibility for such individual and before such calendar
15
year, in the following table:
16
The applicable
‘‘If the number of years is:
percentage is:
16 ......................................................................................
20 percent
17 ......................................................................................
40 percent
18 ......................................................................................
60 percent
19 ......................................................................................
80 percent
20 or larger .......................................................................
100 percent.
‘‘(C)(i) Except as provided in clause (ii), the full in-
17
crease amount determined under this subparagraph for a
18
calendar year in connection with the monthly insurance
19
benefit of a qualified beneficiary is a dollar amount equal
20
to 5 percent of the amount of the benefit if—
21
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•HR 671 IH
‘‘(I) such benefit were based on the primary in-
1
surance amount determined for January of such cal-
2
endar year of a putative individual;
3
‘‘(II) on January 1 of the calendar year in
4
which occurred the applicable eligibility date with re-
5
spect to such individual, such putative individual
6
were fully insured, attained retirement age (as de-
7
fined in section 216(l)(2)) and were otherwise eligi-
8
ble for, and applied for, old-age insurance benefits;
9
and
10
‘‘(III) such putative individual’s average in-
11
dexed monthly earnings taken into account in deter-
12
mining such primary insurance amount were equal
13
to 1⁄12 of the national average wage index (as de-
14
fined in section 209(k)(1)) for the second year prior
15
to such calendar year.
16
‘‘(ii)(I) In the case of a monthly insurance benefit
17
under subsection (b) or (c), the full increase amount deter-
18
mined under this subparagraph shall be one-half the
19
amount determined under clause (i); or
20
‘‘(II) in the case of a monthly insurance benefit under
21
subsection (d), (g), or (h), the full increase amount deter-
22
mined under this subparagraph shall be the percentage of
23
the amount determined under clause (i) equal to the ratio
24
which the amount of such benefit bears to the primary
25
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•HR 671 IH
insurance amount (before the application of section
1
203(a)) of the individual on whose wages and self-employ-
2
ment income the monthly insurance benefit is based.
3
‘‘(4) In the case of a qualified beneficiary who is enti-
4
tled to two or more monthly insurance benefits under this
5
title for the same month—
6
‘‘(A) the earliest applicable date of eligibility for
7
such beneficiary with respect to such benefits shall
8
be treated as the applicable date of eligibility for
9
such beneficiary for the purposes of this subsection;
10
and
11
‘‘(B) such beneficiary shall be entitled to an in-
12
crease with respect only to one such benefit.
13
‘‘(5) This subsection shall be applied to monthly in-
14
surance benefits after any increase under subsection (w)
15
and any applicable reductions and deductions under this
16
title.
17
‘‘(6) In any case in which an individual is entitled
18
to benefits under both this section and section 223, the
19
increase under this subsection shall be paid from the Fed-
20
eral Old-Age and Survivors Insurance Trust Fund.’’.
21
(b) CONFORMING AMENDMENTS.—
22
(1) Section 202 of such Act (42 U.S.C. 402) is
23
amended—
24
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•HR 671 IH
(A) in the last sentence of subsection (a),
1
by striking ‘‘subsection (q) and subsection (w)’’
2
and inserting ‘‘subsections (q), (w), and (aa)’’;
3
(B) in subsection (b)(2), by striking ‘‘sub-
4
sections (k)(5) and (q)’’ and inserting ‘‘sub-
5
sections (k)(5), (q), and (aa)’’;
6
(C) in subsection (c)(2), by striking ‘‘sub-
7
sections (k)(5) and (q)’’ and inserting ‘‘sub-
8
sections (k)(5), (q), and (aa)’’;
9
(D) in subsection (d)(2), by adding at the
10
end the following: ‘‘This paragraph shall apply
11
subject to subsection (aa).’’;
12
(E) in subsection (e)(2)(A), by striking
13
‘‘subsection (k)(5), subsection (q), and subpara-
14
graph (D) of this paragraph’’ and inserting
15
‘‘subsection (k)(5), subsection (q), subsection
16
(aa), and subparagraph (D) of this paragraph’’;
17
(F) in subsection (f)(2)(A), by striking
18
‘‘subsection (k)(5), subsection (q), and subpara-
19
graph (D) of this paragraph’’ and inserting
20
‘‘subsection (k)(5), subsection (q), subsection
21
(aa), and subparagraph (D) of this paragraph’’;
22
(G) in subsection (g)(2), by striking
23
‘‘Such’’ and inserting ‘‘Except as provided in
24
subsections (k)(5) and (aa), such’’;
25
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•HR 671 IH
(H) in subsection (h)(2)(A), by inserting
1
‘‘and subsection (aa)’’ after ‘‘subparagraphs
2
(B) and (C)’’; and
3
(I) in section 223(a)(2), by striking ‘‘sec-
4
tion 202(q)’’ and inserting ‘‘sections 202(q) and
5
202(aa)’’.
6
(2) Section 209(k)(1) of such Act (402 U.S.C.
7
409(k)(1))
is
amended
by
inserting
8
‘‘202(aa)(3)(C)(i)(II),’’ before ‘‘203(f)(8)(B)(ii)’’.
9
SEC. 4. EXTENSION OF CHILD’S BENEFIT FOR FULL-TIME
10
POST-SECONDARY
SCHOOL
STUDENTS
11
UNDER AGE 26.
12
(a) IN GENERAL.—Section 202(d)(1)(B) of the So-
13
cial Security Act (42 U.S.C. 402(d)(1)(B)) is amended to
14
read as follows:
15
‘‘(B) at the time such application was filed
16
was unmarried and—
17
‘‘(i) had not attained the age of 18,
18
‘‘(ii) was a full-time elementary or
19
secondary school student and had not at-
20
tained the age of 19,
21
‘‘(iii) was a full-time post-secondary
22
school student and had not attained the
23
age of 26, or
24
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•HR 671 IH
‘‘(iv) is under a disability (as defined
1
in section 223(d)) which began before he
2
attained the age of 22, and’’.
3
(b) DEFINITION OF FULL-TIME POST-SECONDARY
4
SCHOOL STUDENT.—
5
(1) IN GENERAL.—Section 202(d)(7) of such
6
Act (42 U.S.C. 402(d)(7)) is amended—
7
(A) in subparagraph (A)—
8
(i) by inserting ‘‘and a ‘full-time post-
9
secondary school student’ is an individual
10
who is in full-time attendance as a student
11
at a post-secondary educational institu-
12
tion’’ before ‘‘, as determined by the Com-
13
missioner’’;
14
(ii) by inserting ‘‘or a ‘full-time post-
15
secondary school student’ ’’ before ‘‘if he is
16
paid by his employer’’;
17
(iii) by inserting ‘‘or a post-secondary
18
educational institution, as applicable,’’ be-
19
fore ‘‘at the request’’;
20
(iv) by inserting ‘‘or a ‘full-time post-
21
secondary school student’ ’’ before ‘‘for the
22
purpose of this section’’; and
23
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