I

107TH CONGRESS

1ST SESSION H. R. 870

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 and to whom applies the 15-year period of 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.

IN THE HOUSE OF REPRESENTATIVES

MARCH 6, 2001

Mr. CLEMENT (for himself, Mr. ANDREWS, Mr. FRANK, Mr. BOUCHER, Mr.

FILNER, Mr. KIND, Ms. NORTON, Mr. CRAMER, Mr. GORDON, Mr.

SANDLIN, and Mr. DUNCAN) introduced the following bill; which was referred to the Committee on Ways and Means

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 and to whom applies

the 15-year period of 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.

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

2 This Act may be cited as the ‘‘Social Security Notch

3 Act of 2001’’.

4 SEC. 2. NEW GUARANTEED MINIMUM PRIMARY INSUR5 ANCE AMOUNT WHERE ELIGIBILITY ARISES

6 DURING TRANSITIONAL PERIOD.

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

8 415(a)) 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

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

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

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

15 paragraph), the amount of the individual’s primary insur16 ance amount as computed or recomputed under paragraph

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

18 ‘‘(i) such amount, and

19 ‘‘(ii) the applicable transitional increase amount

20 (if any).

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

22 ‘applicable transitional increase amount’ means, in the

23 case of any individual, the product derived by

24 multiplying—

25 ‘‘(i) the difference under old law, by
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1 ‘‘(ii) the applicable percentage of the difference

2 under old law to be added under subparagraph (A),

3 as determined, in relation to the year in which the

4 individual becomes eligible for old-age insurance ben5 efits, by the following table:

‘‘If the individual The percentage of

becomes eligible for the difference under

such benefits in: old law to be added is:

1979 .......................................................................... 70 percent

1980 .......................................................................... 50 percent

1981 .......................................................................... 40 percent

1982 .......................................................................... 35 percent

1983 .......................................................................... 35 percent.

6 ‘‘(C) For purposes of subparagraph (B), the term

7 ‘difference under old law’ means, in the case of any indi8 vidual, the excess of—

9 ‘‘(i) the applicable old law primary insurance

10 amount, over

11 ‘‘(ii) the amount which would be such individ12 ual’s primary insurance amount if computed or re13 computed under this section without regard to this

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

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

16 ‘applicable old law primary insurance amount’ means, in

17 the case of any individual, the amount which would be

18 such individual’s primary insurance amount if it were—

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

20 paragraph (4)(B)(i)) under section 215(a) as in ef21 fect in December 1978, or
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1 ‘‘(ii) computed or recomputed (pursuant to

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

3 (as applicable) and modified as provided by subparagraph

4 (E).

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

6 individual’s primary insurance amount as provided in sub7 paragraph (D)—

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

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

10 1978 shall apply, except that section 215(b)(2)(C)

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

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

13 only calendar years in the period after 1950 (or

14 1936 if applicable) and ending with the calendar

15 year in which such individual attains age 61, plus

16 the 3 calendar years after such period for which the

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

18 income is the largest; and

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

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

21 ‘without regard to any increases in that table’ in

22 such subdivision read ‘including any increases in

23 that table’.

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

25 individual only if such application results in a primary in-
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1 surance amount for such individual that is greater than

2 it would be if computed or recomputed under paragraph

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

4 SEC. 3. EFFECTIVE DATE AND RELATED RULES.

5 (a) APPLICABILITY OF AMENDMENTS.—

6 (1) IN GENERAL.—Except as provided in para7 graph (2), the amendments made by this Act shall

8 be effective as though they had been included or re9 flected in section 201 of the Social Security Amend10 ments of 1977.

11 (2) PROSPECTIVE APPLICABILITY.—No monthly

12 benefit or primary insurance amount under title II

13 of the Social Security Act shall be increased by rea14 son of such amendments for any month before the

15 month in which this Act is enacted.

16 (b) RECOMPUTATION TO REFLECT BENEFIT IN17 CREASES.—In any case in which an individual is entitled

18 to monthly insurance benefits under title II of the Social

19 Security Act for the month before the month in which this

20 Act is enacted, if such benefits are based on a primary

21 insurance amount computed—

22 (1) under section 215 of such Act as in effect

23 (by reason of the Social Security Amendments of

24 1977) after December 1978, or
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1 (2) under section 215 of such Act as in effect

2 prior to January 1979 by reason of subsection

3 (a)(4)(B) of such section (as amended by the Social

4 Security Amendments of 1977),

5 the Commissioner of Social Security (notwithstanding sec6 tion 215(f)(1) of the Social Security Act) shall recompute

7 such primary insurance amount so as to take into account

8 the amendments made by this Act.

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