Equal Treatment of Public Servants Act of 2014

Summary: Equal Treatment of Public Servants Act of 2014 - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act to replace the current windfall elimination provision (WEP) (that reduces the Social Security benefits of workers who also have pension benefits from employment not covered by Social Security) for individuals who: (1) become eligible for old-age insurance benefits after 2016 or would attain age 62 after 2016 and become eligible for disability insurance benefits after 2016, (2) subsequently become entitled to such benefits, and (3) have earnings derived from noncovered service performed after 1977. Establishes a new formula for the treatment of noncovered earnings in determining Social Security benefits. Prescribes a second formula to modify WEP for current beneficiaries. Directs the Commissioner of Social Security to recover overpayments from certain individuals. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Equal Treatment of Public Servants 
Act of 2014''.

SEC. 2. REPLACEMENT OF THE WINDFALL ELIMINATION PROVISION WITH A 
              FORMULA EQUALIZING BENEFITS FOR CERTAIN INDIVIDUALS WITH 
              NON-COVERED EMPLOYMENT.

    (a) In General.--Section 215(a) of the Social Security Act (42 
U.S.C. 415(a)) is amended by inserting after paragraph (7) the 
following:
    ``(8)(A) In the case of an individual whose primary insurance 
amount would be computed under paragraph (1) of this subsection--
            ``(i) who becomes eligible for old-age insurance benefits 
        after 2016 or would attain age 62 after 2016 and becomes 
        eligible for disability insurance benefits after 2016,
            ``(ii) who subsequently becomes entitled to such benefits, 
        and
            ``(iii) who has earnings derived from noncovered service 
        performed in a year after 1977,
the primary insurance amount of such individual shall be computed or 
recomputed under this paragraph.
    ``(B) The primary insurance amount of an individual described in 
subparagraph (A), as computed or recomputed under this paragraph, shall 
be the product derived by multiplying--
            ``(i) the individual's primary insurance amount, as 
        determined under paragraph (1) of this subsection and 
        subparagraph (C) of this paragraph, by
            ``(ii) a fraction--
                    ``(I) the numerator of which is the individual's 
                average indexed monthly earnings (determined without 
                regard to subparagraph (C)), and
                    ``(II) the denominator of which is an amount equal 
                to the individual's average indexed monthly earnings 
                (as determined under subparagraph (C)),
rounded, if not a multiple of $0.10, to the next lower multiple of 
$0.10.
    ``(C)(i) For purposes of determining an individual's primary 
insurance amount pursuant to clauses (i) and (ii)(II) of subparagraph 
(B), the individual's average indexed monthly earnings shall be 
determined by treating all recorded noncovered earnings (as defined in 
clause (ii)(I)) derived by the individual from noncovered service 
performed in each year after 1977 as `wages' (as defined in section 209 
for purposes of this title), which shall be treated as included in the 
individual's adjusted total covered earnings (as defined in clause 
(ii)(II)) for such calendar year together with amounts consisting of 
`wages' (as so defined without regard to this subparagraph) paid during 
such calendar year and self-employment income (as defined in section 
211(b)) for taxable years ending with or during such calendar year.
    ``(ii) For purposes of this subparagraph--
            ``(I) The term `recorded noncovered earnings' means 
        earnings derived from noncovered service (other than noncovered 
        service as a member of a uniformed service (as defined in 
        section 210(m))) for which satisfactory evidence is determined 
        by the Commissioner to be available in the records of the 
        Commissioner.
            ``(II) The term `adjusted total covered earnings' means, in 
        connection with an individual for any calendar year, the sum of 
        the wages paid to the individual during such calendar year (as 
        adjusted under subsection (b)(3)) plus the self-employment 
        income derived by the individual during any taxable year ending 
        with or during such calendar year (as adjusted under subsection 
        (b)(3)).
    ``(iii) The Commissioner of Social Security shall provide by 
regulation for methods for determining whether satisfactory evidence is 
available in the records of the Commissioner for earnings for 
noncovered service (other than noncovered service as a member of a 
uniformed service (as defined in section 210(m))) to be treated as 
recorded noncovered earnings. Such methods shall provide for reliance 
on earnings information which is provided to the Commissioner by 
employers and which, as determined by the Commissioner, constitute a 
reasonable basis for treatment of earnings for noncovered service as 
recorded noncovered earnings. In making determinations under this 
clause, the Commissioner shall also take into account any documentary 
evidence of earnings derived from noncovered service by an individual 
which is provided by the individual to the Commissioner and which the 
Commissioner considers appropriate as a reasonable basis for treatment 
of such earnings as recorded noncovered earnings, except that such 
evidence provided by the individual shall be taken into account only to 
the extent that such evidence does not relate to earnings for service 
with respect to which information regarding earnings has already been 
obtained by the Commissioner from the employer and only to the extent 
that such evidence does not result in a reduction in the individual's 
primary insurance amount as calculated under subparagraph (B).
    ``(D) Upon the death of an individual whose primary insurance 
amount is computed or recomputed under this paragraph, such primary 
insurance amount shall be computed or recomputed under paragraph (1) of 
this subsection.''.
    (b) Modification of Windfall Elimination Provision for Current 
Beneficiaries; Recovery of Certain Overpayments.--Section 215(a)(7) of 
such Act (42 U.S.C. 415(a)(7)) is amended by adding at the end the 
following:
    ``(F)(i) Notwithstanding subparagraph (A), for purposes of 
determining the amount of monthly insurance benefits for months after 
December 2016, the primary insurance amount of an individual described 
in subparagraph (A), or an individual described in subparagraph (G) 
whose primary insurance amount was calculated or recalculated under 
subparagraph (B), shall be deemed to be equal to the sum of--
            ``(I) the primary insurance amount of such individual 
        computed or recomputed under subparagraph (B); plus
            ``(II) the applicable percentage (determined under clause 
        (ii)) of the amount by which the primary insurance amount of 
        such individual computed or recomputed under subparagraph (B) 
        is exceeded by the primary insurance amount of such individual 
        that would be determined without regard to this paragraph.
    ``(ii) The applicable percentage determined under this clause shall 
be a percentage (but not more than 50 percent) which shall be 
determined by the Commissioner on the basis of the amount of the 
savings generated as a result of the enactment of the Equal Treatment 
of Public Servants Act of 2014. The Commissioner shall determine and 
promulgate the applicable percentage determined under this clause on or 
before November 1, 2016, based upon the most recent actuarial estimates 
then available.
    ``(G) In the case of an individual whose primary insurance amount 
would be computed under paragraph (1) of this subsection who--
            ``(i) attains age 62 after 1985 and before 2017 (except 
        where he or she became entitled to a disability insurance 
        benefit before 1986 and remained so entitled in any of the 12 
        months immediately preceding his or her attainment of age 62), 
        or
            ``(ii) would attain age 62 after 1985 and before 2017 and 
        becomes eligible for a disability insurance benefit after 1985 
        and before 2017, and
            ``(iii) is eligible for old-age insurance benefits or 
        disability insurance benefits for December 2016,
            ``(iv) has recorded noncovered earnings (as defined in 
        paragraph (8)(C)(ii)), and
            ``(v) has less than 30 years of coverage (as defined in 
        subparagraph (D)),
the primary insurance amount of such individual shall be computed or 
recomputed under this paragraph unless such individual provides to the 
Commissioner evidence determined to be satisfactory by the Commissioner 
that such individual has not received any periodic payment attributable 
to noncovered service. The Commissioner shall, in accordance with 
section 204, recover from such individual described in subparagraph 
(A), and any other individual receiving benefits under this title on 
the basis of the wages and self-employment income of such individual 
described in subparagraph (A), any excess of the total amount of 
benefits under this title paid to each such individual prior to 2017 
over the amount computed on the basis of the primary insurance amount 
computed or recomputed under this paragraph without regard to 
subparagraph (F).''.
    (c) Conforming Amendments.--Section 215(a)(7)(A) of such Act (42 
U.S.C. 415(a)(7)(A)) is amended--
            (1) by striking ``after 1985'' each place it appears and 
        inserting ``after 1985 and before 2017''; and
            (2) by striking ``hereafter in this paragraph and in 
        subsection (d)(3)'' and inserting ``in this paragraph, 
        paragraph (8), and subsection (d)(3)''.