II 

109TH CONGRESS 

2D SESSION S. 2427 

To amend title II of the Social Security Act to provide for progressive 

indexing and longevity indexing of social security old-age insurance benefits for newly retired and aged surviving spouses to ensure the future 

solvency of the social security program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 16 (legislative day, MARCH 15), 2006 

Mr. BENNETT introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend title II of the Social Security Act to provide 

for progressive indexing and longevity indexing of social 

security old-age insurance benefits for newly retired and 

aged surviving spouses to ensure the future solvency 

of the social security program, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Sustainable Solvency 

5 First for Social Security Act of 2006’’. 


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1 SEC. 2. PROGRESSIVE INDEXING OF BENEFITS FOR OLD2 AGE INSURANCE BENEFITS. 

3 (a) IN GENERAL.—Section 215(a) of the Social Secu4 rity Act (42 U.S.C. 415(a)) is amended— 

5 (1) by striking ‘‘The’’ in paragraph (1)(A) and 

6 inserting ‘‘With respect to any benefit other than an 

7 applicable benefit to which paragraph (2) applies, 

8 the’’, and 

9 (2) by redesignating paragraphs (2) through 

10 (7) as paragraphs (3) through (8), respectively, and 

11 by inserting after paragraph (1) the following new 

12 paragraph: 

13 ‘‘(2)(A) In the case of an applicable benefit with re14 spect to any individual who initially becomes eligible for 

15 old-age insurance benefits or who dies (before becoming 

16 eligible for such benefits) in calendar year 2012 or later, 

17 the primary insurance amount of the individual shall be 

18 equal to the sum of— 

19 ‘‘(i) 90 percent of the individual’s average in20 dexed monthly earning (determined under subsection 

21 (b)) to the extent that such earnings do not exceed 

22 the amount established for purposes of paragraph 

23 (1)(A)(i) by paragraph (1)(B); 

24 ‘‘(ii) 32 percent of the individual’s average in25 dexed monthly earnings to the extent that such 

26 earnings exceed the amount established for purposes 


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1 of paragraph (1)(A)(i) by paragraph (1)(B) but do 

2 not exceed the amount established for purposes of 

3 this clause by subparagraph (B); 

4 ‘‘(iii) 32 percent (reduced as provided in sub5 paragraph (C)) of the individual’s average indexed 

6 monthly earnings to the extent that such earnings 

7 exceed the amount established for purposes of clause 

8 (ii) but do not exceed the amount established for 

9 purposes of paragraph (1)(A)(ii) by paragraph 

10 (1)(B); and 

11 ‘‘(iv) 15 percent (reduced as provided in sub12 paragraph (C)) of the individual’s average indexed 

13 monthly earnings to the extent that such earnings 

14 exceed the amount established for purposes of para15 graph (1)(A)(ii) by paragraph (1)(B). 

16 ‘‘(B)(i) For purposes of subparagraph (A)(ii), the 

17 amount established under this subparagraph for calendar 

18 year 2012 shall be the level of average indexed monthly 

19 earnings determined by the Chief Actuary of the Social 

20 Security Administration under clause (ii) as being at the 

21 30th percentile for the period of calendar years 2001 

22 through 2003. 

23 ‘‘(ii) For purposes of clause (i), the average indexed 

24 monthly earnings for the period of calendar years 2001 

25 through 2003 shall be determined by— 


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1 ‘‘(I) determining the average indexed monthly 

2 earnings for each individual who initially became eli3 gible for old-age insurance benefits or who died (be4 fore becoming eligible for such benefits) during such 

5 period, except that in determining such average in6 dexed monthly earnings under subsection (b), sub7 section (b)(3)(A)(ii)(I) shall be applied by sub8 stituting calendar year 2000 for the second calendar 

9 year described in such subsection; and 

10 ‘‘(II) multiplying the amount determined for 

11 each individual under subclause (I) by the quotient 

12 obtained by dividing the national average wage index 

13 (as defined in section 209(k)(1)) for the calendar 

14 year 2010 by such index for the calendar year 2000. 

15 ‘‘(iii) For purposes of subparagraph (A)(ii), the 

16 amount established under this subparagraph for any cal17 endar year after 2012 shall be equal to the product of 

18 the amount in effect under clause (i) with respect to cal19 endar year 2012 and the quotient obtained by dividing— 

20 ‘‘(I) the national average wage index (as de21 fined in section 209(k)(1)) for the second calendar 

22 year preceding the calendar year for which the de23 termination is being made, by 

24 ‘‘(II) the national average wage index (as so de25 fined) for 2010. 


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1 ‘‘(iv) The amount established under this subpara2 graph for any calendar year shall be rounded to the near3 est $1, except that any amount so established which is 

4 a multiple of $0.50 but not of $1 shall be rounded to the 

5 next higher $1. 

6 ‘‘(C)(i) Except as provided in clause (ii), in the case 

7 of any calendar year after 2011, each of the percentages 

8 to which this subparagraph applies by reason of clauses 

9 (iii) or (iv) of subparagraph (A) shall be a percentage 

10 equal to such percentage multiplied by the quotient ob11 tained by dividing— 

12 ‘‘(I) the difference of the maximum CPI-in13 dexed benefit amount for such year over the amount 

14 determined under this paragraph for an individual 

15 whose average indexed monthly earnings are equal 

16 to the amount established for purposes of subpara17 graph (A)(ii) for such year, by 

18 ‘‘(II) the difference of the maximum wage-in19 dexed benefit amount for such year over the amount 

20 determined under this paragraph for an individual 

21 whose average indexed monthly earnings are equal 

22 to the amount established for purposes of subpara23 graph (A)(ii) for such year. 

24 ‘‘(ii)(I) In the case of any calendar year which is a 

25 positive balance year, clause (i) shall not apply and each 


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1 of the percentages to which this subparagraph applies by 

2 reason of clause (iii) or (iv) of subparagraph (B) shall be 

3 a percentage equal to the percentage determined under 

4 this subparagraph for the preceding year (determined 

5 after the application of this subparagraph). 

6 ‘‘(II) In the case of any calendar year after a positive 

7 balance year which is not a positive balance year, this sub8 paragraph shall be applied by substituting ‘the second cal9 endar year preceding the most recent positive balance 

10 year’ for ‘2009’ each place it appears in clause (iv). 

11 ‘‘(iii) For purposes of clause (i), the maximum wage12 indexed benefit amount for any calendar year shall be 

13 equal to the amount determined under this paragraph (de14 termined without regard to any reduction under this sub15 paragraph) for an individual with wages paid in and self16 employment income credited to each computation base 

17 year in an amount equal to the contribution and benefit 

18 base for each calendar year. 

19 ‘‘(iv) For purposes of clause (i), the maximum CPI20 indexed benefit amount for any calendar year shall be an 

21 amount equal to the amount determined under clause (iii) 

22 for such year multiplied by a fraction— 

23 ‘‘(I) the numerator of which is the ratio (round24 ed to the nearest one-thousandth of 1 percent) of 


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1 the Consumer Price Index for the second preceding 

2 year to such index for 2009; and 

3 ‘‘(II) the denominator of which is the ratio 

4 (rounded to the nearest one-thousandth of 1 per5 cent) of the national wage index (as defined in sec6 tion 209(k)(1)) for the second year preceding such 

7 year to such index for 2009. 

8 ‘‘(v)(I) For purposes of clause (i), a positive balance 

9 year is a calendar year following any calendar year after 

10 2080 for which the Chief Actuary of the Social Security 

11 Administration certifies to the Secretary of the Treasury 

12 and the Congress that the combined balance ratio of the 

13 Federal Old-Age and Survivors Trust Fund and the Fed14 eral Disability Insurance Trust Fund is not less than 100 

15 percent for such year. 

16 ‘‘(II) For purposes of subclause (I), the combined 

17 balance ratio of the Federal Old-Age and Survivors Trust 

18 Fund and the Federal Disability Insurance Trust Fund 

19 for any calendar year is the ratio of the combined balance 

20 of such Trust Funds as of the last day of such calendar 

21 year (reduced by any transfer made pursuant to section 

22 201(o) in such calendar year) to the amount estimated 

23 by the Commissioner of Social Security under section 

24 201(l)(3)(B)(iii)(II) to be paid from such Trust Funds 

25 during the calendar year following such calendar year for 


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1 all purposes authorized by section 201 (determined as if 

2 such following calendar year were a positive balance year). 

3 ‘‘(D) For purposes of this paragraph, rules similar 

4 to the rules of subparagraphs (C) and (D) of paragraph 

5 (1) shall apply. 

6 ‘‘(E) For purposes of this paragraph, the term ‘appli7 cable benefit’ means any benefit under section 202 other 

8 than— 

9 ‘‘(i) a child’s insurance benefit under section 

10 202(d) with respect to a child of an individual who 

11 has died; 

12 ‘‘(ii) a widow’s insurance benefit under section 

13 202(e) with respect to a widow who has not attained 

14 age 60 and is under a disability (as defined in sec15 tion 223(d)) which began before the end of the pe16 riod specified in section 202(e)(4); 

17 ‘‘(iii) a widower’s insurance benefit under sec18 tion 202(f) with respect to a widower who has not 

19 attained age 60 and is under a disability (as defined 

20 in section 223(d)) which began before the end of the 

21 period specified in section 202(f)(4); and 

22 ‘‘(iv) a mother’s and father’s insurance benefit 

23 under section 202(g).’’. 

24 (b) CONFORMING AMENDMENTS.— 


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1 (1) Subsections (e)(2)(B)(i)(I) and 

2 (f)(2)(B)(i)(I) of section 202 of the Social Security 

3 Act are each amended by inserting ‘‘or section 

4 215(a)(2)(B)(iii)’’ after ‘‘section 215(a)(1)(B)(i) and 

5 (ii)’’. 

6 (2) Section 203(a)(1) of such Act is amended— 

7 (A) in subparagraph (A)(i), by striking 

8 ‘‘215(a)(2)(B)(i)’’ and inserting 

9 ‘‘215(a)(3)(B)(i)’’; 

10 (B) in subparagraph (A)(ii), by striking 

11 ‘‘215(a)(2)(C)’’ and inserting ‘‘215(a)(3)(C)’’; 

12 and 

13 (C) in subparagraph (B)(ii), by striking 

14 ‘‘215(a)(2)’’ and inserting ‘‘215(a)(3)’’. 

15 (3) Section 209(k)(1) of such Act is amended 

16 by inserting ‘‘215(a)(2)(B), 215(a)(2)(C),’’ after 

17 ‘‘215(a)(1)(D),’’. 

18 (4) Section 215(a) of such Act is amended— 

19 (A) in paragraph (4)(A), as redesignated 

20 by paragraph (2), by striking ‘‘paragraph (4)’’ 

21 and inserting ‘‘paragraph (5)’’; 

22 (B) in paragraph (4)(B), as redesignated 

23 by paragraph (2), by striking ‘‘paragraph 

24 (2)(A)’’ and inserting ‘‘paragraph (3)(A)’’; 


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1 (C) in paragraph (5), as redesignated by 

2 paragraph (2), by striking ‘‘paragraph (3)(A)’’ 

3 and inserting ‘‘paragraph (4)(A)’’; 

4 (D) in paragraph (6)(A), as redesignated 

5 by paragraph (2), by striking ‘‘paragraph 

6 (4)(B)’’ and inserting ‘‘paragraph (5)(B)’’; and 

7 (E) in paragraph (8)(B)(ii)(I), as redesig8 nated by paragraph (2), by striking ‘‘paragraph 

9 (3)(B)’’ and inserting ‘‘paragraph (4)(B)’’. 

10 (5) Section 215(d)(3) of such Act is amended— 

11 (A) by striking ‘‘paragraph (4)(B)(ii)’’ and 

12 inserting ‘‘paragraph (5)(B)(ii)’’; and 

13 (B) by striking ‘‘subsection (a)(7)(C)’’ and 

14 inserting ‘‘subsection (a)(8)(C)’’. 

15 (6) Subsection 215(f) of such Act is amended— 

16 (A) in paragraph (2)(B), by striking ‘‘sub17 section (a)(4)(B)’’ and inserting ‘‘subsection 

18 (a)(5)(B)’’; 

19 (B) in paragraph (7), by striking ‘‘sub20 section (a)(6)’’ and inserting ‘‘subsection 

21 (a)(7)’’; 

22 (C) in paragraph (9)(A)— 

23 (i) by striking ‘‘subsection (a)(7)(A)’’ 

24 and inserting ‘‘subsection (a)(8)(A)’’; and 


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1 (ii) by striking ‘‘subsection (a)(7)(C)’’ 

2 and inserting ‘‘subsection (a)(8)(C)’’; and 

3 (D) in paragraph (9)(B), by striking ‘‘sub4 section (a)(7)’’ each place it appears and insert5 ing ‘‘subsection (a)(8)’’. 

6 SEC. 3. MODIFICATION OF PIA FACTORS TO REFLECT 

7 CHANGES IN LIFE EXPECTANCY. 

8 (a) MODIFICATION.— 

9 (1) IN GENERAL.—Section 215(a)(2) of the So10 cial Security Act (42 U.S.C. 415(a)(2)), as added by 

11 this Act, is amended by redesignating subparagraphs 

12 (D) and (E) as subparagraphs (E) and (F), respec13 tively, and by inserting after subparagraph (C) the 

14 following new subparagraph: 

15 ‘‘(D)(i) For individuals who initially become eligible 

16 for old-age insurance benefits (or who die before becoming 

17 eligible for such benefits) in any calendar year after 2017, 

18 each of the percentages used for purposes of clauses (i), 

19 (ii), (iii), and (iv) of subparagraph (A) (after the applica20 tion of subparagraph (C) in the case of subclauses (iii) 

21 and (iv) of subparagraph (A)) shall be multiplied by the 

22 life expectancy ratio for such calendar year. 

23 ‘‘(ii) The Commissioner of Social Security shall, 

24 through the Chief Actuary of the Social Security Adminis25 tration, using generally accepted actuarial principles, deVerDate Aug 31 2005 22:33 Mar 17, 2006 Jkt 049200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S2427.IS S2427

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1 termine and publish in the Federal Register on or before 

2 November 1 of each calendar year the life expectancy ratio 

3 for the following calendar year. 

4 ‘‘(iii) For purposes of this subparagraph, the life ex5 pectancy ratio for any calendar year is the ratio of— 

6 ‘‘(I) the period life expectancy based on the 

7 computed death rates for 2013 of an individual at 

8 age 67, to 

9 ‘‘(II) the period life expectancy of an individual 

10 at such age based on the computed death rates for 

11 the fourth calendar year preceding the calendar year 

12 for which the life expectancy ratio is determined 

13 under clause (ii).’’. 

14 (2) CONFORMING AMENDMENT.—Clauses (iii) 

15 and (iv) of section 215(a)(2)(A) of the Social Secu16 rity Act, as added by this Act, are each amended by 

17 striking ‘‘subparagraph (C)’’ and inserting ‘‘sub18 paragraphs (C) and (F)’’. 

19 (b) STUDY REGARDING LIFE EXPECTANCY OF DIS20 ABLED BENEFICIARIES.— 

21 (1) IN GENERAL.—The Commissioner of Social 

22 Security shall conduct a study on the feasibility of 

23 creating a separate life expectancy ratio under sec24 tion 215(a)(2)(D) of the Social Security Act for in25 dividuals attaining early retirement age who are reVerDate Aug 31 2005 22:33 Mar 17, 2006 Jkt 049200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S2427.IS S2427

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1 ceiving disability insurance benefits under title II of 

2 such Act on the date the individual attains such age. 

3 (2) REPORT.—Not later than 1 year after the 

4 date of the enactment of this Act, the Commissioner 

5 shall submit to Congress a report on the results of 

6 the study under paragraph (1). 

7 SEC. 4. TREATMENT OF DISABLED BENEFICIARIES. 

8 Section 215(a) of the Social Security Act (42 U.S.C. 

9 415(a)), as amended by sections 2 and 3, is amended by 

10 adding at the end the following new paragraph: 

11 ‘‘(9)(A) Notwithstanding the preceding provisions of 

12 this subsection, in the case of an individual who has or 

13 has had a period of disability and who initially becomes 

14 eligible for old-age insurance benefits or who dies (before 

15 becoming eligible for such benefits) in any calendar year 

16 in or after 2012, the primary insurance amount of such 

17 individual shall be the sum of— 

18 ‘‘(i) the amount determined under subpara19 graph (B); and 

20 ‘‘(ii) the product derived by multiplying— 

21 ‘‘(I) the excess of the amount determined 

22 under subparagraph (C) over the amount deter23 mined under subparagraph (B), by 

24 ‘‘(II) the adjustment factor for such indi25 vidual determined under subparagraph (D). 


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1 ‘‘(B) The amount determined under this subpara2 graph is the amount of such individual’s primary insur3 ance amount as determined under this section without re4 gard to this paragraph. 

5 ‘‘(C) The amount determined under this subpara6 graph is the amount of such individual’s primary insur7 ance amount as determined under this section as in effect 

8 with respect to individuals becoming eligible for old-age 

9 or disability insurance benefits under section 202(a) in 

10 2005. 

11 ‘‘(D) The adjustment factor determined under this 

12 subparagraph for any individual is the ratio (not greater 

13 than 1) of— 

14 ‘‘(i) the total number of months during which 

15 such individual is under a disability (as defined in 

16 section 223(d)) during the period beginning on the 

17 date the individual attains age 22 and ending on the 

18 first day of such individual’s first month of eligibility 

19 for old-age insurance benefits under section 202(a) 

20 (or, if earlier, the month of such individual’s death), 

21 to 

22 ‘‘(ii) the number of months during the period 

23 beginning on the date the individual attains age 22 

24 and ending on the first day of such individual’s first 

25 month of eligibility for old-age insurance benefits 


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1 under section 202(a) (or, if earlier, the month of 

2 such individual’s death).’’. 

3 SEC. 5. ACCELERATION OF INCREASE IN RETIREMENT AGE. 

4 (a) INCREASE IN RETIREMENT AGE TO 67.—Section 

5 216(l)(1) of the Social Security Act (42 U.S.C. 416(l)(1)) 

6 is amended— 

7 (1) in subparagraph (C), by striking ‘‘2017’’ 

8 and inserting ‘‘2012’’; 

9 (2) in subparagraph (D), by striking ‘‘after De10 cember 31, 2016 and before January 1, 2022’’ and 

11 inserting ‘‘after December 31, 2011 and before Jan12 uary 1, 2017’’; and 

13 (3) in subparagraph (E), by striking ‘‘2021’’ 

14 and inserting ‘‘2016’’. 

15 (b) CONFORMING AMENDMENT.—Subparagraph (B) 

16 of section 216(l)(3) of the Social Security Act (42 U.S.C. 

17 416(l)(3)(B)) is amended— 

18 (1) by striking ‘‘calendar years 2017 through 

19 2021’’ and inserting ‘‘calendar years 2012 through 

20 2016’’; and 

21 (2) by striking ‘‘January 2017’’ and inserting 

22 ‘‘January 2012’’. 


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1 SEC. 6. MAINTENANCE OF ADEQUATE BALANCES IN THE 

2 SOCIAL SECURITY TRUST FUNDS. 

3 (a) IN GENERAL.—Section 201 of the Social Security 

4 Act (42 U.S.C. 401) is amended by adding at the end the 

5 following new subsection: 

6 ‘‘(o) In addition to amounts otherwise appropriated 

7 under the preceding provisions of this section to the Trust 

8 Funds established under this section, there is hereby ap9 propriated for each fiscal year to each of such Trust 

10 Funds, from amounts in the general fund of the Treasury 

11 not otherwise appropriated, such sums as may be nec12 essary from time to time to maintain the balance ratio 

13 (as defined in section 709(b)) of such Trust Fund, for the 

14 calendar year commencing during such fiscal year, at not 

15 less than 100 percent. The sums to be appropriated under 

16 the preceding sentence shall be determined by the Com17 missioner of Social Security and certified by the Commis18 sioner to each House of the Congress not later than Octo19 ber 1 of such fiscal year. In making such determination 

20 and certification, the Commissioner shall use the inter21 mediate actuarial assumptions used by the Board of 

22 Trustees of the Trust Funds in its most recent annual 

23 report to the Congress prepared pursuant to subsection 

24 (c)(2). The Commissioner shall also transmit a copy of 

25 any such certification to the Secretary of the Treasury, 

26 and upon receipt thereof, such Secretary shall promptly 


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1 take appropriate actions in accordance with the certifi2 cation.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 subsection (a) shall apply with respect to fiscal years be5 ginning after the date of the enactment of this Act. 

Æ 


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