I

103D CONGRESS

1ST SESSION H. R. 1447

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 24, 1993

Mr. CLEMENT 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,

3 SECTION 1. SHORT TITLE.

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

5 Act of 1993’’.
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1 SEC. 2. NEW GUARANTEED MINIMUM PRIMARY INSURANCE

2 AMOUNT WHERE ELIGIBILITY ARISES DUR3 ING TRANSITIONAL PERIOD.

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

5 415(a)) is amended—

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

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

8 ‘‘would be made’’; and

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

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

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

12 paragraph), the amount of the individual’s primary insur13 ance amount as computed or recomputed under paragraph

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

15 ‘‘(i) such amount, and

16 ‘‘(ii) the applicable transitional increase amount

17 (if any).

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

19 ‘applicable transitional increase amount’ means, in the

20 case of any individual, the product derived by multiply21 ing—

22 ‘‘(i) the difference under old law, by

23 ‘‘(ii) the applicable percentage of the difference

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

25 as determined, in relation to the year in which the
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1 individual becomes eligible for old-age insurance ben2 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 .......................................................................... 45 percent

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

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

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

1984 .......................................................................... 35 percent

1985 .......................................................................... 30 percent

1986 .......................................................................... 30 percent

1987 .......................................................................... 25 percent

1988 .......................................................................... 25 percent

1989 .......................................................................... 20 percent

1990 .......................................................................... 20 percent

1991 .......................................................................... 15 percent

1992 .......................................................................... 15 percent

1993 .......................................................................... 10 percent

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

4 ‘difference under old law’ means, in the case of any indi5 vidual, the excess of—

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

7 amount, over

8 ‘‘(ii) the amount which would be such individ9 ual’s primary insurance amount if computed or re10 computed under this section without regard to this

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

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

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

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

15 such individual’s primary insurance amount if it were—
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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
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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 SEC. 3. EFFECTIVE DATE AND RELATED RULES.

9 (a) APPLICABILITY OF AMENDMENTS.—

10 (1) IN GENERAL.—Except as provided in para11 graph (2), the amendments made by this Act shall

12 be effective as though they had been included or re13 flected in section 201 of the Social Security Amend14 ments of 1977.

15 (2) PROSPECTIVE APPLICABILITY.—No monthly

16 benefit or primary insurance amount under title II

17 of the Social Security Act shall be increased by rea18 son of such amendments for any month before the

19 month in which this Act is enacted.

20 (b) RECOMPUTATION TO REFLECT BENEFIT IN21 CREASES.—In any case in which an individual is entitled

22 to monthly insurance benefits under title II of the Social

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

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

25 insurance amount computed—
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1 (1) under section 215 of such Act as in effect

2 (by reason of the Social Security Amendments of

3 1977) after December 1978, or

4 (2) under section 215 of such Act as in effect

5 prior to January 1979 by reason of subsection

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

7 Security Amendments of 1977),

8 the Secretary of Health and Human Services (notwith9 standing section 215(f)(1) of the Social Security Act) shall

10 recompute such primary insurance amount so as to take

11 into account the amendments made by this Act.

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