To amend title II of the Social Security Act to improve social security benefits for widows and widowers in two-income households.

Summary: This bill amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to revise the widow's or widower's insurance benefit for any month to equal the greater of: (1) the primary insurance amount of a deceased individual (as under current law); or (2) in the case of a fully-insured widow or surviving divorced spouse, 75% of the sum of any old-age or disability insurance benefit to which the widow, widower, or surviving divorced spouse is entitled plus the primary insurance amount of the deceased individual.

SECTION 1. IMPROVING SOCIAL SECURITY BENEFITS FOR WIDOWS AND WIDOWERS 
              IN TWO-INCOME HOUSEHOLDS.

    (a) In General.--
            (1) Widows.--Section 202(e) of the Social Security Act (42 
        U.S.C. 402(e)) is amended--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by inserting 
                        ``and'' at the end;
                            (ii) in subparagraph (C)(iii), by striking 
                        ``and'' at the end;
                            (iii) by striking subparagraph (D);
                            (iv) by redesignating subparagraphs (E) and 
                        (F) as subparagraphs (D) and (E), respectively; 
                        and
                            (v) in the flush matter following 
                        subparagraph (E)(ii), as so redesignated, by 
                        striking ``or becomes entitled to an old-age 
                        insurance benefit'' and all that follows 
                        through ``such deceased individual,'';
                    (B) by striking subparagraph (A) in paragraph (2) 
                and inserting the following:
            ``(2)(A) Except as provided in subsection (k)(5), 
        subsection (q), and subparagraph (D) of this paragraph, such 
        widow's insurance benefit for each month shall be equal to the 
        greater of--
                            ``(i) subject to paragraph (9), the primary 
                        insurance amount (as determined for purposes of 
                        this subsection after application of 
                        subparagraphs (B) and (C)) of such deceased 
                        individual; or
                            ``(ii) subject to paragraphs (9) and (10), 
                        in the case of a fully insured widow or 
                        surviving divorced wife, 75 percent of the sum 
                        of any old-age or disability insurance benefit 
                        for which the widow or the surviving divorced 
                        wife is entitled for such month and the primary 
                        insurance amount (as determined for purposes of 
                        this subsection after application of 
                        subparagraphs (B) and (C)) of such deceased 
                        individual.'';
                    (C) in paragraph (5)--
                            (i) in subparagraph (A), by striking 
                        ``paragraph (1)(F)'' and inserting ``paragraph 
                        (1)(E)''; and
                            (ii) in subparagraph (B), by striking 
                        ``paragraph (1)(F)(i)'' and inserting 
                        ``paragraph (1)(E)(i)''; and
                    (D) by adding at the end the following new 
                paragraphs:
            ``(9) For purposes of clauses (i) and (ii) of paragraph 
        (2)(A), in the case of a surviving divorced wife, the amount 
        determined under either such clause (and, for purposes of 
        clause (ii) of paragraph (2)(A), as determined after 
        application of paragraph (10)) shall be equal to the applicable 
        percentage (as determined under section 202(b)(2)(B)) of such 
        amount (as determined before application of this paragraph but 
        after application of subsection (k)(3)).
            ``(10) For purposes of paragraph (2)(A)(ii), the amount 
        determined under such paragraph shall not exceed the primary 
        insurance amount for such month of a hypothetical individual--
                    ``(A) who became entitled to old-age insurance 
                benefits upon attaining early retirement age during the 
                month in which the deceased individual referred to in 
                paragraph (1) became entitled to old-age or disability 
                insurance benefits, or died (before becoming entitled 
                to such benefits); and
                    ``(B) to whom wages and self-employment income were 
                credited in each of such hypothetical individual's 
                elapsed years (within the meaning of section 
                215(b)(2)(B)(iii)) in an amount equal to the national 
                average wage index (as described in section 209(k)(1)) 
                for each such year.''.
            (2) Widowers.--Section 202(f) of the Social Security Act 
        (42 U.S.C. 402(f)) is amended--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by inserting 
                        ``and'' at the end;
                            (ii) in subparagraph (C)(iii), by striking 
                        ``and'' at the end;
                            (iii) by striking subparagraph (D);
                            (iv) by redesignating subparagraphs (E) and 
                        (F) as subparagraphs (D) and (E), respectively; 
                        and
                            (v) in the flush matter following 
                        subparagraph (E)(ii), as so redesignated, by 
                        striking ``or becomes entitled to an old-age 
                        insurance benefit'' and all that follows 
                        through ``such deceased individual,'';
                    (B) by striking subparagraph (A) in paragraph (2) 
                and inserting the following:
            ``(2)(A) Except as provided in subsection (k)(5), 
        subsection (q), and subparagraph (D) of this paragraph, such 
        widower's insurance benefit for each month shall be equal to 
        the greater of--
                            ``(i) subject to paragraph (9), the primary 
                        insurance amount (as determined for purposes of 
                        this subsection after application of 
                        subparagraphs (B) and (C)) of such deceased 
                        individual; or
                            ``(ii) subject to paragraphs (9) and (10), 
                        in the case of a fully insured widower or 
                        surviving divorced husband, 75 percent of the 
                        sum of any old-age or disability insurance 
                        benefit for which the widower or the surviving 
                        divorced husband is entitled for such month and 
                        the primary insurance amount (as determined for 
                        purposes of this subsection after application 
                        of subparagraphs (B) and (C)) of such deceased 
                        individual.'';
                    (C) in paragraph (5)--
                            (i) in subparagraph (A), by striking 
                        ``paragraph (1)(F)'' and inserting ``paragraph 
                        (1)(E)''; and
                            (ii) in subparagraph (B), by striking 
                        ``paragraph (1)(F)(i)'' and inserting 
                        ``paragraph (1)(E)(i)''; and
                    (D) by adding at the end the following new 
                paragraphs:
            ``(9) For purposes of clauses (i) and (ii) of paragraph 
        (2)(A), in the case of a surviving divorced husband, the amount 
        determined under either such clause (and, for purposes of 
        clause (ii) of paragraph (2)(A), as determined after 
        application of paragraph (10)) shall be equal to the applicable 
        percentage (as determined under section 202(c)(2)(B)) of such 
        amount (as determined before application of this paragraph but 
        after application of subsection (k)(3)).
            ``(10) For purposes of paragraph (2)(A)(ii), the amount 
        determined under such paragraph shall not exceed the primary 
        insurance amount for such month of a hypothetical individual--
                    ``(A) who became entitled to old-age insurance 
                benefits upon attaining early retirement age during the 
                month in which the deceased individual referred to in 
                paragraph (1) became entitled to old-age or disability 
                insurance benefits, or died (before becoming entitled 
                to such benefits); and
                    ``(B) to whom wages and self-employment income were 
                credited in each of such hypothetical individual's 
                elapsed years (within the meaning of section 
                215(b)(2)(B)(iii)) in an amount equal to the national 
                average wage index (as described in section 209(k)(1)) 
                for each such year.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to widow's and widower's insurance benefits payable 
for months after December 2016.