I

104TH CONGRESS

2D SESSION H. R. 2930

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

benefit computation formula for workers who attain age 65 in or after

1982 by providing a new 10-year rule governing the transition to the

changes in benefit computation rules enacted in the Social Security

Amendments of 1977 (and related beneficiaries) and to provide prospectively for increases in their benefits accordingly, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 1, 1996

Mr. NEUMANN introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Commerce, for a period to be subsequently determined by the Speaker, in

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend title II of the Social Security Act to provide

for an improved benefit computation formula for workers

who attain age 65 in or after 1982 by providing a

new 10-year rule governing the transition to the changes

in benefit computation rules enacted in the Social Security Amendments of 1977 (and related beneficiaries) and

to provide prospectively for increases in their benefits

accordingly, 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,
2

•HR 2930 IH

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Notch Fairness Act

3 of 1996’’.

4 SEC. 2. NEW GUARANTEED MINIMUM PRIMARY INSURANCE

5 AMOUNT WHERE ELIGIBILITY ARISES DUR6 ING TRANSITIONAL PERIOD.

7 (a) IN GENERAL.—Section 215(a) of the Social Secu8 rity Act is amended—

9 (1) in paragraph (4)(B), by inserting ‘‘(with or

10 without the application of paragraph (8))’’ after

11 ‘‘would be made’’, and by striking ‘‘1984’’ in clause

12 (i) and inserting ‘‘1989’’; and

13 (2) by adding at the end the following:

14 ‘‘(8)(A) In the case of an individual described in

15 paragraph (4)(B) (subject to subparagraph (F) of this

16 paragraph), the amount of the individual’s primary insur17 ance amount as computed or recomputed under paragraph

18 (1) shall be deemed equal to the sum of—

19 ‘‘(i) such amount, and

20 ‘‘(ii) the applicable transitional increase amount

21 (if any).

22 ‘‘(B) For purposes of subparagraph (A)(ii), the term

23 ‘applicable transitional increase amount’ means, in the

24 case of any individual, the product derived by multiply25 ing—

26 ‘‘(i) the excess under former law, by
3

•HR 2930 IH

1 ‘‘(ii) the applicable percentage in relation to the

2 year in which the individual becomes eligible for old3 age insurance benefits, as determined by the follow4 ing table:

‘‘If the individual

becomes eligible for The applicable

such benefits in: percentage is:

1979 ....................................................................... 55 percent

1980 ....................................................................... 45 percent

1981 ....................................................................... 35 percent

1982 ....................................................................... 32 percent

1983 ....................................................................... 25 percent

1984 ....................................................................... 20 percent

1985 ....................................................................... 16 percent

1986 ....................................................................... 10 percent

1987 ....................................................................... 3 percent

1988 ....................................................................... 5 percent.

5 ‘‘(C) For purposes of subparagraph (B), the term ‘ex6 cess under former law’ means, in the case of any individ7 ual, the excess of—

8 ‘‘(i) the applicable former law primary insur9 ance amount, over

10 ‘‘(ii) the amount which would be such individ11 ual’s primary insurance amount if computed or re12 computed under this section without regard to this

13 paragraph and paragraphs (4), (5), and (6).

14 ‘‘(D) For purposes of subparagraph (C)(i), the term

15 ‘applicable former law primary insurance amount’ means,

16 in the case of any individual, the amount which would be

17 such individual’s primary insurance amount if it were—
4

•HR 2930 IH

1 ‘‘(i) computed or recomputed (pursuant to

2 paragraph (4)(B)(i)) under section 215(a) as in ef3 fect in December 1978, or

4 ‘‘(ii) computed or recomputed (pursuant to

5 paragraph (4)(B)(ii)) as provided by subsection (d),

6 (as applicable) and modified as provided by subparagraph

7 (E).

8 ‘‘(E) In determining the amount which would be an

9 individual’s primary insurance amount as provided in sub10 paragraph (D)—

11 ‘‘(i) subsection (b)(4) shall not apply;

12 ‘‘(ii) section 215(b) as in effect in December

13 1978 shall apply, except that section 215(b)(2)(C)

14 (as then in effect) shall be deemed to provide that

15 an individual’s ‘computation base years’ may include

16 only calendar years in the period after 1950 (or

17 1936 if applicable) and ending with the calendar

18 year in which such individual attains age 61, plus

19 the 3 calendar years after such period for which the

20 total of such individual’s wages and self-employment

21 income is the largest; and

22 ‘‘(iii) subdivision (I) in the last sentence of

23 paragraph (4) shall be applied as though the words

24 ‘without regard to any increases in that table’ in
5

•HR 2930 IH

1 such subdivision read ‘including any increases in

2 that table’.

3 ‘‘(F) This paragraph shall apply in the case of any

4 individual only if such application results in a primary in5 surance amount for such individual that is greater than

6 it would be if computed or recomputed under paragraph

7 (4)(B) without regard to this paragraph.’’.

8 (b) EFFECTIVE DATE AND RELATED RULES.—

9 (1) APPLICABILITY OF AMENDMENTS.—

10 (A) IN GENERAL.—Except as provided in

11 paragraph (2), the amendments made by this

12 Act shall be effective as though they had been

13 included or reflected in section 201 of the So14 cial Security Amendments of 1977.

15 (B) PROSPECTIVE APPLICABILITY.—No

16 monthly benefit or primary insurance amount

17 under title II of the Social Security Act shall be

18 increased by reason of such amendments for

19 any month before April 1996.

20 (2) RECOMPUTATION TO REFLECT BENEFIT IN21 CREASES.—In any case in which an individual is en22 titled to monthly insurance benefits under title II of

23 the Social Security Act for March 1995, if such ben24 efits are based on a primary insurance amount com25 puted—
6

•HR 2930 IH

1 (A) under section 215 of such Act as in ef2 fect (by reason of the Social Security Amend3 ments of 1977) after December 1978, or

4 (B) under section 215 of such Act as in ef5 fect prior to January 1979 by reason of sub6 section (a)(4)(B) of such section (as amended

7 by the Social Security Amendments of 1977),

8 the Commissioner of Social Security (notwithstand9 ing section 215(f)(1) of the Social Security Act)

10 shall recompute such primary insurance amount so

11 as to take into account the amendments made by

12 this Act.

13 SEC. 3. ENTITLEMENT OF STEPCHILDREN TO CHILD’S IN14 SURANCE BENEFITS BASED ON ACTUAL DE15 PENDENCY ON STEPPARENT SUPPORT.

16 (a) REQUIREMENT OF ACTUAL DEPENDENCY FOR

17 FUTURE ENTITLEMENTS.—

18 (1) IN GENERAL.—Section 202(d)(4) of the So19 cial Security Act (42 U.S.C. 402(d)(4)) is amended

20 by striking ‘‘was living with or’’.

21 (2) EFFECTIVE DATE.—The amendment made

22 by paragraph (1) shall apply with respect to benefits

23 of individuals who become entitled to such benefits

24 for months after the third month following the

25 month in which this Act is enacted.
7

•HR 2930 IH

1 (b) TERMINATION OF CHILD’S INSURANCE BENE2 FITS BASED ON WORK RECORD OF STEPPARENT UPON

3 NATURAL PARENT’S DIVORCE FROM STEPPARENT.—

4 (1) IN GENERAL.—Section 202(d)(1) of the So5 cial Security Act (42 U.S.C. 402(d)(1)) is amend6 ed—

7 (A) by striking ‘‘or’’ at the end of clause

8 (F);

9 (B) by striking the period at the end of

10 clause (G) and inserting ‘‘; or’’; and

11 (C) by inserting after clause (G) the fol12 lowing new clause:

13 ‘‘(H) if the benefits under this subsection are

14 based on the wages and self-employment income of

15 a stepparent who is subsequently divorced from such

16 child’s natural parent, the sixth month after the

17 month in which the Commissioner of Social Security

18 receives formal notification of such divorce.’’.

19 (2) EFFECTIVE DATE.—The amendments made

20 by this subsection shall apply with respect to notifi21 cations of divorces received by the Commissioner of

22 Social Security on or after the date of the enactment

23 of this Act.
8

•HR 2930 IH

1 SEC. 4. DENIAL OF DISABILITY BENEFITS TO DRUG AD2 DICTS AND ALCOHOLICS.

3 (a) AMENDMENTS RELATING TO TITLE II DISABIL4 ITY BENEFITS.—

5 (1) IN GENERAL.—Section 223(d)(2) of the So6 cial Security Act (42 U.S.C. 423(d)(2)) is amended

7 by adding at the end the following:

8 ‘‘(C) An individual shall not be considered to be

9 disabled for purposes of this title if alcoholism or

10 drug addiction would (but for this subparagraph) be

11 a contributing factor material to the Commissioner’s

12 determination that the individual is disabled.’’.

13 (2) REPRESENTATIVE PAYEE REQUIRE14 MENTS.—

15 (A) Section 205(j)(1)(B) of such Act (42

16 U.S.C. 405(j)(1)(B)) is amended to read as fol17 lows:

18 ‘‘(B) In the case of an individual entitled to benefits

19 based on disability, the payment of such benefits shall be

20 made to a representative payee if the Commissioner of So21 cial Security determines that such payment would serve

22 the interest of the individual because the individual also

23 has an alcoholism or drug addiction condition (as deter24 mined by the Commissioner) that prevents the individual

25 from managing such benefits.’’.
9

•HR 2930 IH

1 (B) Section 205(j)(2)(C)(v) of such Act

2 (42 U.S.C. 405(j)(2)(C)(v)) is amended by

3 striking ‘‘entitled to benefits’’ and all that fol4 lows through ‘‘under a disability’’ and inserting

5 ‘‘described in paragraph (1)(B)’’.

6 (C) Section 205(j)(2)(D)(ii)(II) of such

7 Act (42 U.S.C. 405(j)(2)(D)(ii)(II)) is amended

8 by striking all that follows ‘‘15 years, or’’ and

9 inserting ‘‘described in paragraph (1)(B).’’.

10 (D) Section 205(j)(4)(A)(ii)(II) (42 U.S.C.

11 405(j)(4)(A)(ii)(II)) is amended by striking

12 ‘‘entitled to benefits’’ and all that follows

13 through ‘‘under a disability’’ and inserting ‘‘de14 scribed in paragraph (1)(B)’’.

15 (3) TREATMENT REFERRALS FOR INDIVIDUALS

16 WITH AN ALCOHOLISM OR DRUG ADDICTION CONDI17 TION.—Section 222 of such Act (42 U.S.C. 422) is

18 amended by adding at the end the following new

19 subsection:

20 ‘‘Treatment Referrals for Individuals with an Alcoholism

21 or Drug Addiction Condition

22 ‘‘(e) In the case of any individual whose benefits

23 under this title are paid to a representative payee pursu24 ant to section 205(j)(1)(B), the Commissioner of Social

25 Security shall refer such individual to the appropriate
10

•HR 2930 IH

1 State agency administering the State plan for substance

2 abuse treatment services approved under subpart II of

3 part B of title XIX of the Public Health Service Act (42

4 U.S.C. 300x–21 et seq.).’’.

5 (4) CONFORMING AMENDMENT.—Subsection (c)

6 of section 225 of such Act (42 U.S.C. 425(c)) is re7 pealed.

8 (5) EFFECTIVE DATES.—

9 (A) The amendments made by paragraphs

10 (1) and (4) shall apply with respect to monthly

11 insurance benefits under title II of the Social

12 Security Act based on disability for months be13 ginning after the date of the enactment of this

14 Act, except that, in the case of individuals who

15 are entitled to such benefits for the month in

16 which this Act is enacted, such amendments

17 shall apply only with respect to such benefits

18 for months beginning on or after January 1,

19 1997.

20 (B) The amendments made by paragraphs

21 (2) and (3) shall apply with respect to benefits

22 for which applications are filed on or after the

23 date of the enactment of this Act.

24 (C) If an individual who is entitled to

25 monthly insurance benefits under title II of the
11

•HR 2930 IH

1 Social Security Act based on disability for the

2 month in which this Act is enacted and whose

3 entitlement to such benefits would terminate by

4 reason of the amendments made by this sub5 section reapplies for benefits under title II of

6 such Act (as amended by this Act) based on

7 disability within 120 days after the date of the

8 enactment of this Act, the Commissioner of So9 cial Security shall, not later than January 1,

10 1997, complete the entitlement redetermination

11 with respect to such individual pursuant to the

12 procedures of such title.

13 (b) AMENDMENTS RELATING TO SSI BENEFITS.—

14 (1) IN GENERAL.—Section 1614(a)(3) of the

15 Social Security Act (42 U.S.C. 1382c(a)(3)) is

16 amended by adding at the end the following:

17 ‘‘(I) Notwithstanding subparagraph (A), an individ18 ual shall not be considered to be disabled for purposes of

19 this title if alcoholism or drug addiction would (but for

20 this subparagraph) be a contributing factor material to

21 the Commissioner’s determination that the individual is

22 disabled.’’.

23 (2) REPRESENTATIVE PAYEE REQUIRE24 MENTS.—
12

•HR 2930 IH

1 (A) Section 1631(a)(2)(A)(ii)(II) of such

2 Act (42 U.S.C. 1383(a)(2)(A)(ii)(II)) is amend3 ed to read as follows:

4 ‘‘(II) In the case of an individual eligible for benefits

5 under this title by reason of disability, the payment of

6 such benefits shall be made to a representative payee if

7 the Commissioner of Social Security determines that such

8 payment would serve the interest of the individual because

9 the individual also has an alcoholism or drug addiction

10 condition (as determined by the Commissioner) that pre11 vents the individual from managing such benefits.’’.

12 (B) Section 1631(a)(2)(B)(vii) of such Act

13 (42 U.S.C. 1383(a)(2)(B)(vii)) is amended by

14 striking ‘‘eligible for benefits’’ and all that fol15 lows through ‘‘is disabled’’ and inserting ‘‘de16 scribed in subparagraph (A)(ii)(II)’’.

17 (C) Section 1631(a)(2)(B)(ix)(II) of such

18 Act (42 U.S.C. 1383(a)(2)(B)(ix)(II)) is

19 amended by striking all that follows ‘‘15 years,

20 or’’ and inserting ‘‘described in subparagraph

21 (A)(ii)(II).’’.

22 (D) Section 1631(a)(2)(D)(i)(II) of such

23 Act (42 U.S.C. 1383(a)(2)(D)(i)(II)) is amend24 ed by striking ‘‘eligible for benefits’’ and all
13

•HR 2930 IH

1 that follows through ‘‘is disabled’’ and inserting

2 ‘‘described in subparagraph (A)(ii)(II)’’.

3 (3) TREATMENT SERVICES FOR INDIVIDUALS

4 WITH A SUBSTANCE ABUSE CONDITION.—Title XVI

5 of such Act (42 U.S.C. 1381 et seq.) is amended by

6 adding at the end the following new section:

7 ‘‘TREATMENT SERVICES FOR INDIVIDUALS WITH A

8 SUBSTANCE ABUSE CONDITION

9 ‘‘SEC. 1636. In the case of any individual whose bene10 fits under this title are paid to a representative payee pur11 suant to section 1631(a)(2)(A)(ii)(II), the Commissioner

12 of Social Security shall refer such individual to the appro13 priate State agency administering the State plan for sub14 stance abuse treatment services approved under subpart

15 II of part B of title XIX of the Public Health Service Act

16 (42 U.S.C. 300x–21 et seq.).’’.

17 (4) CONFORMING AMENDMENTS.—

18 (A) Section 1611(e) of such Act (42

19 U.S.C. 1382(e)) is amended by striking para20 graph (3).

21 (B) Section 1634 of such Act (42 U.S.C.

22 1383c) is amended by striking subsection (e).

23 (5) EFFECTIVE DATES.—

24 (A) The amendments made by paragraphs

25 (1) and (4) shall apply with respect to supple26 mental security income benefits under title XVI
14

•HR 2930 IH

1 of the Social Security Act based on disability

2 for months beginning after the date of the en3 actment of this Act, except that, in the case of

4 individuals who are eligible for such benefits for

5 the month in which this Act is enacted, such

6 amendments shall apply only with respect to

7 such benefits for months beginning on or after

8 January 1, 1997.

9 (B) The amendments made by paragraphs

10 (2) and (3) shall apply with respect to supple11 mental security income benefits under title XVI

12 of the Social Security Act for which applica13 tions are filed on or after the date of the enact14 ment of this Act.

15 (C) If an individual who is eligible for sup16 plemental security income benefits under title

17 XVI of the Social Security Act for the month

18 in which this Act is enacted and whose eligi19 bility for such benefits would terminate by rea20 son of the amendments made by this subsection

21 reapplies for supplemental security income ben22 efits under title XVI of such Act (as amended

23 by this Act) within 120 days after the date of

24 the enactment of this Act, the Commissioner of

25 Social Security shall, not later than January 1,
15

•HR 2930 IH

1 1997, complete the eligibility redetermination

2 with respect to such individual pursuant to the

3 procedures of such title.

4 (D) For purposes of this paragraph, the

5 phrase ‘‘supplemental security income benefits

6 under title XVI of the Social Security Act’’ in7 cludes supplementary payments pursuant to an

8 agreement for Federal administration under

9 section 1616(a) of the Social Security Act and

10 payments pursuant to an agreement entered

11 into under section 212(b) of Public Law 93–66.

12 (c) CONFORMING AMENDMENT.—Section 201(c) of

13 the Social Security Independence and Program Improve14 ments Act of 1994 (42 U.S.C. 425 note) is repealed.

15 (d) SUPPLEMENTAL FUNDING FOR ALCOHOL AND

16 SUBSTANCE ABUSE TREATMENT PROGRAMS.—

17 (1) IN GENERAL.—Out of any money in the

18 Treasury not otherwise appropriated, there are here19 by appropriated to supplement State and Tribal pro20 grams funded under section 1933 of the Public

21 Health Service Act (42 U.S.C. 300x–33),

22 $100,000,000 for each of the fiscal years 1997 and

23 1998.

24 (2) ADDITIONAL FUNDS.—Amounts appro25 priated under paragraph (1) shall be in addition to
16

•HR 2930 IH

1 any funds otherwise appropriated for allotments

2 under section 1933 of the Public Health Service Act

3 (42 U.S.C. 300x–33) and shall be allocated pursuant

4 to such section 1933.

5 (3) USE OF FUNDS.—A State or Tribal govern6 ment receiving an allotment under this subsection

7 shall consider as priorities, for purposes of expend8 ing funds allotted under this subsection, activities

9 relating to the treatment of the abuse of alcohol and

10 other drugs.

Æ

HR 2930 IH——2