Notch Baby Act of 1997

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Notch Baby Act of 1997''.

SEC. 2. NEW GUARANTEED MINIMUM PRIMARY INSURANCE AMOUNT WHERE 
              ELIGIBILITY ARISES DURING TRANSITIONAL PERIOD.

    Section 215(a) of the Social Security Act is amended--
            (1) in paragraph (4)(B), by inserting ``(with or without 
        the application of paragraph (8))'' after ``would be made''; 
        and
            (2) by adding at the end the following:
    ``(8)(A) In the case of an individual described in paragraph (4)(B) 
(subject to subparagraph (F) of this paragraph), the amount of the 
individual's primary insurance amount as computed or recomputed under 
paragraph (1) shall be deemed equal to the sum of--
            ``(i) such amount, and
            ``(ii) the applicable transitional increase amount (if 
        any).
    ``(B) For purposes of subparagraph (A)(ii), the term `applicable 
transitional increase amount' means, in the case of any individual, the 
product derived by multiplying--
            ``(i) the excess under former law, by
            ``(ii) the applicable percentage in relation to the year in 
        which the individual becomes eligible for old-age insurance 
        benefits, as determined by the following table:

                  ``If the individual
                                                                       
                becomes eligible for
                                                         The applicable
                such benefits in:
                                                         percentage is:
                  1979...............................       60 percent 
                  1980...............................       35 percent 
                  1981...............................       30 percent 
                  1982...............................       25 percent 
                  1983...............................       10 percent.
    ``(C) For purposes of subparagraph (B), the term `excess under 
former law' means, in the case of any individual, the excess of--
            ``(i) the applicable former law primary insurance amount, 
        over
            ``(ii) the amount which would be such individual's primary 
        insurance amount if computed or recomputed under this section 
        without regard to this paragraph and paragraphs (4), (5), and 
        (6).
    ``(D) For purposes of subparagraph (C)(i), the term `applicable 
former law primary insurance amount' means, in the case of any 
individual, the amount which would be such individual's primary 
insurance amount if it were--
            ``(i) computed or recomputed (pursuant to paragraph 
        (4)(B)(i)) under section 215(a) as in effect in December 1978, 
        or
            ``(ii) computed or recomputed (pursuant to paragraph 
        (4)(B)(ii)) as provided by subsection (d),
(as applicable) and modified as provided by subparagraph (E).
    ``(E) In determining the amount which would be an individual's 
primary insurance amount as provided in subparagraph (D)--
            ``(i) subsection (b)(4) shall not apply;
            ``(ii) section 215(b) as in effect in December 1978 shall 
        apply, except that section 215(b)(2)(C) (as then in effect) 
        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 61, plus the 3 calendar 
        years after such period for which the total of such 
        individual's wages and self-employment income is the largest; 
        and
            ``(iii) subdivision (I) in the last sentence of paragraph 
        (4) shall be applied as though the words `without regard to any 
        increases in that table' in such subdivision read `including 
        any increases in that table'.
    ``(F) This paragraph shall apply in the case of any individual only 
if such application results in a primary insurance amount for such 
individual that is greater than it would be if computed or recomputed 
under paragraph (4)(B) without regard to this paragraph.''.

SEC. 3. EFFECTIVE DATE AND RELATED RULES.

    (a) Applicability of Amendments.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this Act shall be effective as though they 
        had been included or reflected in section 201 of the Social 
        Security Amendments of 1977.
            (2) Prospective applicability.--No monthly benefit or 
        primary insurance amount under title II of the Social Security 
        Act shall be increased by reason of such amendments for any 
        month before January 1998.
    (b) Recomputation To Reflect Benefit Increases.--In any case in 
which an individual is entitled to monthly insurance benefits under 
title II of the Social Security Act for December 1997, if such benefits 
are based on a primary insurance amount computed--
            (1) under section 215 of such 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 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 primary 
insurance amount so as to take into account the amendments made by this 
Act.

Summary: Notch Baby Act of 1997 - Amends title II of the Social Security Act with respect to the benefit computation formula for individuals who reached age 65 in or after 1982 and to whom applies the period of transition to the changes in benefit computation rules enacted in the Social Security Amendments of 1977. Sets forth a schedule of additional benefit increases for such beneficiaries , with percentages declining from 60 percent to ten percent keyed to the year an individual became eligible for such benefits between 1979 and 1983.