Social Security Notch Adjustment Act of 1993

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Notch Adjustment Act 
of 1993''.

SEC. 2. EXPANSION OF PERIOD OF TRANSITION; NEW ALTERNATIVE FORMULA WITH 
              RESPECT TO SUCH PERIOD.

    (a) Expansion of Period of Transition.--Section 215(a)(4)(B)(i) of 
the Social Security Act (42 U.S.C. 415(a)(4)(B)(i)) is amended by 
striking ``1984'' and inserting ``1989''.
    (b) Establishment of New Transitional Formula.--Section 215(a) of 
such Act (42 U.S.C. 415(a)) is amended by adding at the end the 
following new paragraph:
    ``(8)(A) Paragraphs (1) (except for subparagraph (C)(i) thereof) 
and (4) do not apply to the computation or recomputation of a primary 
insurance amount for an individual who had wages or self-employment 
income credited for one or more years prior to 1979, and who was not 
eligible for an old-age or disability insurance benefit, and did not 
die, prior to January 1979, if in the year for which the computation or 
recomputation would be made the individual's primary insurance amount 
would be greater if computed or recomputed under subparagraph (B).
    ``(B) The primary insurance amount computed or recomputed under 
this subparagraph is equal to the sum of the amount which would be 
computed under this subsection if this paragraph were not applied, plus 
the product (not less than zero) derived by multiplying--
            ``(i) the excess of the adjusted old-law benefit amount 
        over the new-law benefit amount, by
            ``(ii) the applicable reduction factor.
    ``(C) For purposes of this paragraph, in the case of any individual 
described in subparagraph (A)--
            ``(i) The term `adjusted old-law benefit amount' means the 
        amount computed or recomputed under this subsection as in 
        effect in December 1978 (for purposes of old-age insurance 
        benefits in the case of an individual who becomes eligible for 
        such benefits prior to 1989) or subsection (d) (in the case of 
        an individual to whom such subsection applies), subject to the 
        amendments made by section 5117 of the Omnibus Budget 
        Reconciliation Act of 1990.
            ``(ii) The term `new-law benefit amount' means the amount 
        which would be computed under this subsection if this paragraph 
        were not applied.
            ``(iii)(I) The term `applicable reduction factor' means the 
        excess of the applicable base percentage determined under 
        subclause (II) over the applicable early retirement percentage 
        determined under subclause (III).
            ``(II) The applicable base percentage determined under this 
        subclause is the percentage provided in the following table:

            ``If the individual becomes
                eligible for old-age insurance
                                                    The applicable base
                benefits in:
                                                         percentage is:
                        1979.........................        40 percent
                        1980.........................        37 percent
                        1981.........................        34 percent
                        1982.........................        31 percent
                        1983.........................        25 percent
                        1984.........................        20 percent
                        1985.........................        15 percent
                        1986.........................        10 percent
                        1987.........................         5 percent
                        1988.........................        5 percent.
            ``(III) The applicable early retirement percentage 
        determined under this subclause is the product derived by 
        multiplying 5/12 of 1 percent by the total number of months, 
        before the month in which the individual attains the age of 65, 
        for which an old-age insurance benefit is payable to such 
        individual.''.
    (c) Applicability of Old Provisions.--Section 215(a)(5) of such Act 
(42 U.S.C. 415(a)(5)) is amended--
            (1) in subparagraph (A), by striking ``subject to 
        subparagraphs (B), (C), (D), and (E),'' and inserting ``subject 
        to subparagraphs (B), (C), (D), (E), and (F),''; and
            (2) by adding at the end the following new subparagraph:
    ``(F) In applying this section as in effect in December 1978 as 
provided in subparagraph (A) in the case of an individual to whom 
paragraph (1) does not apply by reason of paragraph (8)--
            ``(i) subsection (b)(2)(C) shall be deemed to provide that 
        an individual's `computation base years' may include only 
        calendar years in the period after 1950 (or 1936 if applicable) 
        and ending with the calendar year in which such individual 
        attains age 65; and
            ``(ii) the `contribution and benefit base' (under section 
        230) with respect to remuneration paid in (and taxable years 
        beginning in) any calendar year after 1981 shall be deemed to 
        be $29,700.''.
    (d) Conforming Amendment.--Section 215(a)(3)(A) of such Act (42 
U.S.C. 415(a)(3)(A)) is amended in the matter following clause (iii) by 
striking ``(4)'' and inserting ``(4) or (8)''.

SEC. 3. EFFECTIVE DATE AND RELATED RULES.

    (a) In General.--Except as provided in subsection (c), the 
amendments made by this Act shall be effective as if included in the 
amendments made by section 201 of the Social Security Amendments of 
1977.
    (b) Recomputation.--In any case in which an individual (under title 
II of the Social Security Act) is entitled, for the month in which this 
Act is enacted, to monthly insurance benefits under such title which 
were computed--
            (1) under section 215 of the Social Security Act as in 
        effect (by reason of the Social Security Amendments of 1977) 
        after December 1978, or
            (2) under section 215 of such Act as in effect prior to 
        January 1979 (and subsequently amended and modified) by reason 
        of subsection (a)(4)(B) of such section (as amended by the 
        Social Security Amendments of 1977),
the Secretary of Health and Human Services (notwithstanding section 
215(f)(1)) of the Social Security Act) shall recompute such 
individual's primary insurance amount so as to take into account the 
amendments made by this section.
    (c) Prospective Applicability.--The amendments made by this Act 
shall apply only with respect to benefits for months after November 
1993.

Summary: Social Security Notch Adjustment Act of 1993 - Amends title II (OASDI) of the Social Security Act to establish a new alternative formula for computing the primary insurance amount of workers born after 1916 and before 1927.