II 

115TH CONGRESS 

2D SESSION S. 2484 

To enhance Social Security benefits for children, divorced spouses, and widows 

and widowers, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 1, 2018 

Mrs. MURRAY introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To enhance Social Security benefits for children, divorced 

spouses, and widows and widowers, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Stronger Safety Net Act’’, or the ‘‘SSN Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Improving benefits for divorced spouses, widows, widowers, and surviving divorced spouses. 

Sec. 3. Extended benefit eligibility for children who are full-time students. 

Sec. 4. Establishment of payroll surtax for high-income individuals. 

Sec. 5. Inclusion of surplus earnings in social security benefit formula. 


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1 SEC. 2. IMPROVING BENEFITS FOR DIVORCED SPOUSES, 

2 WIDOWS, WIDOWERS, AND SURVIVING DI3 VORCED SPOUSES. 

4 (a) EXPANSION OF BENEFITS FOR DIVORCED

5 SPOUSES.— 

6 (1) WIFE’S INSURANCE BENEFITS.—Section 

7 202(b) of the Social Security Act (42 U.S.C. 402(b)) 

8 is amended— 

9 (A) in paragraph (1)(G), by striking ‘‘10 

10 years’’ and inserting ‘‘5 years’’; and 

11 (B) by amending paragraph (2) to read as 

12 follows: 

13 ‘‘(2)(A) Except as provided in subsections (k)(5) and 

14 (q), a wife’s insurance benefit for each month shall be 

15 equal to— 

16 ‘‘(i) in the case of a wife (as defined in section 

17 216(b)), one-half of the primary insurance amount 

18 of her husband for such month; or 

19 ‘‘(ii) in the case of a divorced wife (as defined 

20 in section 216(d)), the applicable percentage (as de21 termined under subparagraph (B)) of one-half of the 

22 primary insurance amount of her former husband 

23 for such month. 

24 ‘‘(B) For purposes of subparagraph (A)(ii), the appli25 cable percentage shall be equal to 100 percent reduced by 

26 10 percentage points for each year in the period immeVerDate Sep 11 2014 22:40 Mar 07, 2018 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2484.IS S2484

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1 diately before the date the divorce became effective in 

2 which the divorced wife was married to her former hus3 band that is less than 10 years.’’. 

4 (2) HUSBAND’S INSURANCE BENEFITS.—Sec5 tion 202(c) of the Social Security Act (42 U.S.C. 

6 402(c)) is amended— 

7 (A) in paragraph (1)(G), by striking ‘‘10 

8 years’’ and inserting ‘‘5 years’’; and 

9 (B) by amending paragraph (2) to read as 

10 follows: 

11 ‘‘(2)(A) Except as provided in subsections (k)(5) and 

12 (q), a husband’s insurance benefit for each month shall 

13 be equal to— 

14 ‘‘(i) in the case of a husband (as defined in sec15 tion 216(f)), one-half of the primary insurance 

16 amount of his wife for such month; or 

17 ‘‘(ii) in the case of a divorced husband (as de18 fined in section 216(d)), the applicable percentage 

19 (as determined under subparagraph (B)) of one-half 

20 of the primary insurance amount of his former wife 

21 for such month. 

22 ‘‘(B) For purposes of subparagraph (A)(ii), the appli23 cable percentage shall be equal to 100 percent reduced by 

24 10 percentage points for each year in the period imme25 diately before the date the divorce became effective in 


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1 which the divorced husband was married to his former 

2 wife that is less than 10 years.’’. 

3 (b) IMPROVING SOCIAL SECURITY BENEFITS FOR

4 WIDOWS AND WIDOWERS IN TWO-INCOME HOUSE5 HOLDS.— 

6 (1) WIDOWS.—Section 202(e) of the Social Se7 curity Act (42 U.S.C. 402(e)) is amended— 

8 (A) in paragraph (1)— 

9 (i) in subparagraph (B), by inserting 

10 ‘‘and’’ at the end; 

11 (ii) in subparagraph (C)(iii), by strik12 ing ‘‘and’’ at the end; 

13 (iii) by striking subparagraph (D); 

14 (iv) by redesignating subparagraphs 

15 (E) and (F) as subparagraphs (D) and 

16 (E), respectively; and 

17 (v) in the flush matter following sub18 paragraph (E)(ii), as so redesignated, by 

19 striking ‘‘becomes entitled to an old-age in20 surance benefit’’ and all that follows 

21 through ‘‘such deceased individual,’’; 

22 (B) by striking subparagraph (A) in para23 graph (2) and inserting the following: 

24 ‘‘(2)(A) Except as provided in subsection 

25 (k)(5), subsection (q), and subparagraph (D) of this 


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1 paragraph, such widow’s insurance benefit for each 

2 month shall be equal to the greater of— 

3 ‘‘(i) subject to paragraph (9), the primary 

4 insurance amount (as determined for purposes 

5 of this subsection after application of subpara6 graphs (B) and (C)) of such deceased indi7 vidual; or 

8 ‘‘(ii) subject to paragraphs (9) and (10), in 

9 the case of a fully insured widow or surviving 

10 divorced wife, 75 percent of the sum of any old11 age or disability insurance benefit for which the 

12 widow or the surviving divorced wife is entitled 

13 for such month and the primary insurance 

14 amount (as determined for purposes of this 

15 subsection after application of subparagraphs 

16 (B) and (C)) of such deceased individual.’’; 

17 (C) in paragraph (5)— 

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

19 ‘‘paragraph (1)(F)’’ and inserting ‘‘para20 graph (1)(E)’’; and 

21 (ii) in subparagraph (B), by striking 

22 ‘‘paragraph (1)(F)(i)’’ and inserting 

23 ‘‘paragraph (1)(E)(i)’’; and 

24 (D) by adding at the end the following new 

25 paragraphs: 


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1 ‘‘(9) For purposes of clauses (i) and (ii) of 

2 paragraph (2)(A), in the case of a surviving divorced 

3 wife, the amount determined under either such 

4 clause (and, for purposes of clause (ii) of paragraph 

5 (2)(A), as determined after application of paragraph 

6 (10)) shall be equal to the applicable percentage (as 

7 determined under section 202(b)(2)(B)) of such 

8 amount (as determined before application of this 

9 paragraph but after application of subsection 

10 (k)(3)). 

11 ‘‘(10) For purposes of paragraph (2)(A)(ii), the 

12 amount determined under such paragraph shall not 

13 exceed the primary insurance amount for such 

14 month of a hypothetical individual— 

15 ‘‘(A) who became entitled to old-age insur16 ance benefits upon attaining early retirement 

17 age during the month in which the deceased in18 dividual referred to in paragraph (1) became 

19 entitled to old-age or disability insurance bene20 fits, or died (before becoming entitled to such 

21 benefits); and 

22 ‘‘(B) to whom wages and self-employment 

23 income were credited in each of such hypo24 thetical individual’s elapsed years (within the 

25 meaning of section 215(b)(2)(B)(iii)) in an 


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1 amount equal to the national average wage 

2 index (as described in section 209(k)(1)) for 

3 each such year.’’. 

4 (2) WIDOWERS.—Section 202(f) of the Social 

5 Security Act (42 U.S.C. 402(f)) is amended— 

6 (A) in paragraph (1)— 

7 (i) in subparagraph (B), by inserting 

8 ‘‘and’’ at the end; 

9 (ii) in subparagraph (C)(iii), by strik10 ing ‘‘and’’ at the end; 

11 (iii) by striking subparagraph (D); 

12 (iv) by redesignating subparagraphs 

13 (E) and (F) as subparagraphs (D) and 

14 (E), respectively; and 

15 (v) in the flush matter following sub16 paragraph (E)(ii), as so redesignated, by 

17 striking ‘‘becomes entitled to an old-age in18 surance benefit’’ and all that follows 

19 through ‘‘such deceased individual,’’; 

20 (B) by striking subparagraph (A) in para21 graph (2) and inserting the following: 

22 ‘‘(2)(A) Except as provided in subsection 

23 (k)(5), subsection (q), and subparagraph (D) of this 

24 paragraph, such widower’s insurance benefit for 

25 each month shall be equal to the greater of— 


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1 ‘‘(i) subject to paragraph (9), the primary 

2 insurance amount (as determined for purposes 

3 of this subsection after application of subpara4 graphs (B) and (C)) of such deceased indi5 vidual; or 

6 ‘‘(ii) subject to paragraphs (9) and (10), in 

7 the case of a fully insured widower or surviving 

8 divorced husband, 75 percent of the sum of any 

9 old-age or disability insurance benefit for which 

10 the widower or the surviving divorced husband 

11 is entitled for such month and the primary in12 surance amount (as determined for purposes of 

13 this subsection after application of subpara14 graphs (B) and (C)) of such deceased indi15 vidual.’’; 

16 (C) in paragraph (5)— 

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

18 ‘‘paragraph (1)(F)’’ and inserting ‘‘para19 graph (1)(E)’’; and 

20 (ii) in subparagraph (B), by striking 

21 ‘‘paragraph (1)(F)(i)’’ and inserting 

22 ‘‘paragraph (1)(E)(i)’’; and 

23 (D) by adding at the end the following new 

24 paragraphs: 


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1 ‘‘(9) For purposes of clauses (i) and (ii) of 

2 paragraph (2)(A), in the case of a surviving divorced 

3 husband, the amount determined under either such 

4 clause (and, for purposes of clause (ii) of paragraph 

5 (2)(A), as determined after application of paragraph 

6 (10)) shall be equal to the applicable percentage (as 

7 determined under section 202(c)(2)(B)) of such 

8 amount (as determined before application of this 

9 paragraph but after application of subsection 

10 (k)(3)). 

11 ‘‘(10) For purposes of paragraph (2)(A)(ii), the 

12 amount determined under such paragraph shall not 

13 exceed the primary insurance amount for such 

14 month of a hypothetical individual— 

15 ‘‘(A) who became entitled to old-age insur16 ance benefits upon attaining early retirement 

17 age during the month in which the deceased in18 dividual referred to in paragraph (1) became 

19 entitled to old-age or disability insurance bene20 fits, or died (before becoming entitled to such 

21 benefits); and 

22 ‘‘(B) to whom wages and self-employment 

23 income were credited in each of such hypo24 thetical individual’s elapsed years (within the 

25 meaning of section 215(b)(2)(B)(iii)) in an 


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1 amount equal to the national average wage 

2 index (as described in section 209(k)(1)) for 

3 each such year.’’. 

4 (3) REDUCTION OF BENEFIT FOR INDIVIDUALS

5 ENTITLED TO SIMULTANEOUS BENEFITS.—Section 

6 202(k)(3) of the Social Security Act (42 U.S.C. 

7 402(k)(3)) is amended— 

8 (A) in subparagraph (A), by striking ‘‘If 

9 an individual’’ and inserting ‘‘Except as pro10 vided in subparagraph (C), if an individual’’; 

11 and 

12 (B) by adding at the end the following new 

13 subparagraph: 

14 ‘‘(C) If an individual is entitled for any month to a 

15 widow’s or widower’s insurance benefit and is also entitled 

16 to an old-age or disability insurance benefit for such 

17 month that is greater than such widow’s or widower’s in18 surance benefit, the reduction described in subparagraph 

19 (A), with respect to such widow’s or widower’s insurance 

20 benefit, shall be carried out by substituting an amount 

21 equal to the primary insurance amount of the deceased 

22 individual referred to in subsection (e)(1) or (f)(1) (as de23 termined for purposes of subsection (e)(2)(A)(i) or 

24 (f)(2)(A)(i)) for the amount equal to the old-age or disVerDate Sep 11 2014 22:40 Mar 07, 2018 Jkt 079200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2484.IS S2484

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1 ability insurance benefit of the individual entitled to the 

2 widow’s or widower’s insurance benefit.’’. 

3 (c) CONFORMING AMENDMENTS.—Section 216(d) of 

4 the Social Security Act (42 U.S.C. 416(d)) is amended— 

5 (1) in paragraph (1), by striking ‘‘10 years’’ 

6 and inserting ‘‘5 years’’; 

7 (2) in paragraph (2), by striking ‘‘10 years’’ 

8 and inserting ‘‘5 years’’; 

9 (3) in paragraph (4), by striking ‘‘10 years’’ 

10 and inserting ‘‘5 years’’; and 

11 (4) in paragraph (5), by striking ‘‘10 years’’ 

12 and inserting ‘‘5 years’’. 

13 (d) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply with respect to wife’s insurance 

15 benefits, husband’s insurance benefits, widow’s insurance 

16 benefits, and widower’s insurance benefits that are pay17 able for months beginning after December 31, 2018. 

18 SEC. 3. EXTENDED BENEFIT ELIGIBILITY FOR CHILDREN 

19 WHO ARE FULL-TIME STUDENTS. 

20 (a) IN GENERAL.— 

21 (1) EXTENSION OF BENEFITS.—Section 202(d) 

22 of the Social Security Act (42 U.S.C. 402(d)) is 

23 amended— 

24 (A) in paragraphs (1)(B), (1)(E), 

25 (1)(F)(i), (1)(G)(ii), (6)(A), (6)(D), (6)(E)(i), 


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1 (7)(A), (7)(B), and (7)(D), by striking ‘‘full2 time elementary or secondary school student’’ 

3 each place it appears and inserting ‘‘full-time 

4 student’’; 

5 (B) in paragraphs (1)(B), (1)(F)(ii), 

6 (1)(G)(iii), (6)(A), (6)(D), (6)(E)(ii), and 

7 (7)(D), by striking ‘‘19’’ each place it appears 

8 and inserting ‘‘23’’; 

9 (C) in subparagraphs (A), (B), and (D) of 

10 paragraph (7), by striking ‘‘elementary or sec11 ondary school’’ each place it appears and insert12 ing ‘‘educational institution’’; 

13 (D) in paragraph (7)(A), by striking 

14 ‘‘schools involved’’ and inserting ‘‘institutions 

15 involved’’; 

16 (E) in paragraph (7), by amending sub17 paragraph (C) to read as follows: 

18 ‘‘(C) For purposes of this subsection, the 

19 term ‘educational institution’ means— 

20 ‘‘(i) a school which provides elemen21 tary or secondary education as determined 

22 under the law of the State or other juris23 diction in which it is located; and 


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1 ‘‘(ii) an institution described in sec2 tion 102 of the Higher Education Act of 

3 1965 (20 U.S.C. 1002).’’; and 

4 (F) in paragraph (7)(D), by striking ‘‘di5 ploma or equivalent certificate from a secondary 

6 school (as defined in subparagraph (C)(i))’’ and 

7 inserting ‘‘diploma, degree, or equivalent certifi8 cate from an institution described in subpara9 graph (C)(ii)’’. 

10 (2) EFFECTIVE DATE.—The amendments made 

11 by this subsection shall apply to child’s insurance 

12 benefits that are payable for months beginning after 

13 December 31, 2018. 

14 (b) TEMPORARY EXCLUSION FROM DETERMINATION

15 OF MAXIMUM FAMILY BENEFITS.—Section 203(a) of the 

16 Social Security Act (42 U.S.C. 403(a)) is amended— 

17 (1) in paragraph (3)— 

18 (A) by redesignating subparagraph (D) as 

19 subparagraph (E); and 

20 (B) by inserting after subparagraph (C) 

21 the following new subparagraph: 

22 ‘‘(D) During the period that begins on January 

23 1, 2019, and ends on December 31, 2023, when any 

24 of such individuals has attained age 19 and is enti25 tled to monthly benefits as a child who is a full-time 


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1 student under section 202(d)(1)(B)(i) for any 

2 month, the benefit to which he or she is entitled on 

3 the basis of the wages and self-employment income 

4 of such insured individual for such month shall be 

5 determined without regard to this subsection, and 

6 the benefits of all other individuals who are entitled 

7 for such month to monthly benefits under section 

8 202 on the wages and self-employment income of 

9 such insured individual shall be determined as if no 

10 such child were entitled to benefits for such 

11 month.’’; and 

12 (2) in paragraph (6), by inserting ‘‘(3)(E),’’ 

13 after ‘‘(3)(D),’’. 

14 (c) RAILROAD RETIREMENT ACT.— 

15 (1) Section 2(d) of the Railroad Retirement Act 

16 of 1974 (45 U.S.C. 232(2)(d)) is amended— 

17 (A) in clause (iii) of paragraph (1), by 

18 striking ‘‘will be less than nineteen years of age 

19 and a full-time elementary or secondary school 

20 student’’ and inserting ‘‘will be less than 23 

21 years of age and a full-time student at an edu22 cational institution (as defined in section 

23 202(d)(7) of the Social Security Act)’’; and 

24 (B) in paragraph (4)— 


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1 (i) by striking ‘‘elementary or sec2 ondary school’’ each place it appears and 

3 inserting ‘‘educational institution’’; 

4 (ii) by striking ‘‘nineteen’’ and insert5 ing ‘‘23’’; and 

6 (iii) by striking ‘‘a diploma or equiva7 lent certificate from a secondary school (as 

8 defined in section 202(d)(7)(c)(i) of the 

9 Social Security Act)’’ and inserting ‘‘a di10 ploma, degree, or equivalent certificate 

11 from an institution described in section 

12 202(d)(7)(C)(ii) of the Social Security 

13 Act’’. 

14 (2) Section 5(c)(7) of the Railroad Retirement 

15 Act of 1974 (45 U.S.C. 235(c)(7)) is amended— 

16 (A) by striking ‘‘elementary or secondary 

17 school’’ and inserting ‘‘educational institution’’; 

18 and 

19 (B) by striking ‘‘19’’ and inserting ‘‘23’’. 

20 SEC. 4. ESTABLISHMENT OF PAYROLL SURTAX FOR HIGH21 INCOME INDIVIDUALS. 

22 (a) SELF-EMPLOYMENT INCOME SURTAX.—Section 

23 1401 of the Internal Revenue Code of 1986 is amended— 

24 (1) by redesignating subsection (c) as sub25 section (d); and 


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1 (2) by inserting after subsection (b) the fol2 lowing new subsection: 

3 ‘‘(c) ADDITIONAL TAX FOR OLD-AGE, SURVIVORS, 

4 AND DISABILITY INSURANCE.— 

5 ‘‘(1) IN GENERAL.—In addition to the taxes im6 posed by the preceding subsections, there is hereby 

7 imposed on every individual for each taxable year be8 ginning after December 31, 2018, a tax equal to 4 

9 percent of additional self-employment income for 

10 such taxable year. 

11 ‘‘(2) ADDITIONAL SELF-EMPLOYMENT IN12 COME.—For purposes of paragraph (1), the term 

13 ‘additional self-employment income’ means, for any 

14 taxable year, the amount (not less than zero) equal 

15 to the excess of— 

16 ‘‘(A) the sum of self-employment income 

17 (determined without regard to section 

18 1402(b)(1)) for the taxable year and wages (as 

19 defined in section 3121(a), determined without 

20 regard to paragraph (1) thereof) paid to such 

21 individual during such taxable year, over 

22 ‘‘(B) the sum of the additional wages (as 

23 defined in section 3101(c)(2)) paid to such indi24 vidual for the taxable year and the amount deVerDate Sep 11 2014 22:40 Mar 07, 2018 Jkt 079200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S2484.IS S2484

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1 termined under paragraph (3) for the taxable 

2 year. 

3 Rules similar to the rules of subparagraph (A) of the 

4 second sentence of section 1402(b) shall apply for 

5 purposes of determining wages under clause (i). 

6 ‘‘(3) EXEMPTION AMOUNT.—The amount deter7 mined under this paragraph is an amount equal to— 

8 ‘‘(A) in the case of a taxable year begin9 ning after December 31, 2018, and before Jan10 uary 1, 2020, $400,000, and 

11 ‘‘(B) in the case of any taxable year begin12 ning after December 31, 2019, the product of— 

13 ‘‘(i) $400,000, and 

14 ‘‘(ii) the quotient obtained by divid15 ing— 

16 ‘‘(I) the national average wage 

17 index (as defined in section 209(k)(1)) 

18 for the calendar year which is 2 years 

19 before the calendar year in which the 

20 taxable year begins, by 

21 ‘‘(II) the national average wage 

22 index for calendar year 2017.’’. 

23 (b) EMPLOYEE WAGE SURTAX.—Section 3101 of the 

24 Internal Revenue Code of 1986 is amended— 


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1 (1) by redesignating subsection (c) as sub2 section (d); and 

3 (2) by inserting after subsection (b) the fol4 lowing new subsection: 

5 ‘‘(c) ADDITIONAL TAX FOR OLD-AGE, SURVIVORS, 

6 AND DISABILITY INSURANCE.— 

7 ‘‘(1) IN GENERAL.—In addition to the taxes im8 posed by the preceding subsections, there is hereby 

9 imposed on the income of every individual a tax 

10 equal to 2 percent of additional wages (as defined in 

11 paragraph (2)) which are received with respect to 

12 employment during any calendar year beginning 

13 after December 31, 2018. 

14 ‘‘(2) ADDITIONAL WAGES.—For purposes of 

15 paragraph (1), the term ‘additional wages’ has the 

16 same meaning given the term ‘wages’ under section 

17 3121(a) (determined without regard to paragraph 

18 (1) thereof), except that such term shall not include 

19 that amount of remuneration that is less than— 

20 ‘‘(A) for calendar year 2019, $400,000, 

21 and 

22 ‘‘(B) for any calendar year after 2019, the 

23 product of— 

24 ‘‘(i) $400,000, and 


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1 ‘‘(ii) the quotient obtained by divid2 ing— 

3 ‘‘(I) the national average wage 

4 index (as defined in section 209(k)(1)) 

5 for the second preceding calendar 

6 year, by 

7 ‘‘(II) the national average wage 

8 index for calendar year 2017.’’. 

9 (c) EMPLOYER WAGE SURTAX.—Section 3111 of the 

10 Internal Revenue Code of 1986 is amended by adding at 

11 the end the following new subsection: 

12 ‘‘(f) ADDITIONAL TAX FOR OLD-AGE, SURVIVORS, 

13 AND DISABILITY INSURANCE.— 

14 ‘‘(1) IN GENERAL.—In addition to the taxes im15 posed by subsections (a) and (b), there is hereby im16 posed on every employer an excise tax, with respect 

17 to having individuals in his employ, equal to 2 per18 cent of additional wages (as defined in paragraph 

19 (2)) paid by the employer with respect to employ20 ment during any calendar year beginning after De21 cember 31, 2018. 

22 ‘‘(2) ADDITIONAL WAGES.—For purposes of 

23 paragraph (1), the term ‘additional wages’ has the 

24 same meaning given such term under section 

25 3101(c).’’. 


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1 (d) RAILROAD RETIREMENT TAX ACT.— 

2 (1) RAILROAD EMPLOYEES.—Section 3201 of 

3 the Internal Revenue Code of 1986 is amended— 

4 (A) by redesignating subsection (c) as sub5 section (d); and 

6 (B) by inserting after subsection (b) the 

7 following new subsection: 

8 ‘‘(c) ADDITIONAL TIER 1 TAX.— 

9 ‘‘(1) IN GENERAL.—In addition to the taxes im10 posed by the preceding subsections, there is hereby 

11 imposed on the income of each employee a tax equal 

12 to 2 percent of additional compensation (as defined 

13 in paragraph (2)) received by such employee during 

14 any calendar year beginning after December 31, 

15 2018, for services rendered by such employee. 

16 ‘‘(2) ADDITIONAL COMPENSATION.—For pur17 poses of paragraph (1), the term ‘additional com18 pensation’ has the same meaning given the term 

19 ‘compensation’ under section 3231(e) (determined 

20 without regard to paragraph (2) thereof), except 

21 that such term shall not include that amount of re22 muneration that is less than— 

23 ‘‘(A) for calendar year 2019, $400,000, 

24 and 


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1 ‘‘(B) for any calendar year after 2019, the 

2 product of— 

3 ‘‘(i) $400,000, and 

4 ‘‘(ii) the quotient obtained by divid5 ing— 

6 ‘‘(I) the national average wage 

7 index (as defined in section 209(k)(1)) 

8 for the second preceding calendar 

9 year, by 

10 ‘‘(II) the national average wage 

11 index for calendar year 2017.’’. 

12 (2) RAILROAD EMPLOYEE REPRESENTATIVES.— 

13 Section 3211 of the Internal Revenue Code of 1986 

14 is amended— 

15 (A) by redesignating subsection (c) as sub16 section (d); and 

17 (B) by inserting after subsection (b) the 

18 following new subsection: 

19 ‘‘(c) ADDITIONAL TIER 1 TAX.—In addition to the 

20 taxes imposed by the preceding subsections, there is here21 by imposed on the income of each employee representative 

22 a tax equal to 4 percent of additional compensation (as 

23 defined under section 3201(c)) received by such employee 

24 representative during any calendar year beginning after 


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1 December 31, 2018, for services rendered by such em2 ployee representative.’’. 

3 (3) RAILROAD EMPLOYERS.—Section 3221 of 

4 the Internal Revenue Code of 1986 is amended by 

5 adding at the end the following new subsection: 

6 ‘‘(e) ADDITIONAL TIER 1 TAX.—In addition to the 

7 taxes imposed by subsections (a) and (b), there is hereby 

8 imposed on every employer an excise tax, with respect to 

9 having individuals in his employ, equal to 2 percent of ad10 ditional compensation (as defined under section 3201(c)) 

11 paid by such employer during any calendar year beginning 

12 after December 31, 2018, for services rendered to such 

13 employer.’’. 

14 (4) SOCIAL SECURITY EQUIVALENT BENEFIT

15 ACCOUNT.—Section 15A(b)(1)(A) of the Railroad 

16 Retirement Act of 1974 (45 U.S.C. 231n– 

17 1(b)(1)(A)) is amended by striking ‘‘sections 

18 3201(a), 3211(a)(1), and 3221(a) of the Railroad 

19 Retirement Tax Act’’ and inserting ‘‘subsections (a) 

20 and (c) of section 3201, subsections (a) and (c) of 

21 section 3211, and subsections (a) and (e) of section 

22 3221 of the Internal Revenue Code of 1986’’. 

23 (e) AMENDMENTS TO THE SOCIAL SECURITY ACT.— 

24 (1) TRANSFER OF AMOUNTS TO FEDERAL OLD25 AGE AND SURVIVORS INSURANCE TRUST FUND.— 


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1 Section 201 of the Social Security Act (42 U.S.C. 

2 401) is amended— 

3 (A) in subsection (b)(3)— 

4 (i) by inserting ‘‘and additional wages 

5 (as defined in section 1402(c) of such 

6 Code)’’ after ‘‘section 3121 of such 

7 Code)’’; 

8 (ii) by inserting ‘‘and additional 

9 wages’’ after ‘‘such wages’’; 

10 (iii) by inserting ‘‘and additional 

11 wages’’ after ‘‘which wages’’; and 

12 (iv) by inserting ‘‘and additional 

13 wages’’ after ‘‘records of wages’’; 

14 (B) in subsection (b)(4)— 

15 (i) by inserting ‘‘and additional self16 employment income (as defined in section 

17 3101(c) of such Code)’’ after ‘‘section 

18 1402 of such Code)’’; 

19 (ii) by inserting ‘‘and additional self20 employment income’’ after ‘‘such self-em21 ployment income’’; 

22 (iii) by inserting ‘‘and additional self23 employment income’’ after ‘‘which self-em24 ployment income’’; and 


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1 (iv) by inserting ‘‘and additional self2 employment income’’ after ‘‘records of self3 employment income’’; 

4 (C) in subsection (c)(1)(R)— 

5 (i) by inserting ‘‘and additional wages 

6 (as so defined)’’ after ‘‘wages (as so de7 fined)’’; 

8 (ii) by inserting ‘‘and additional 

9 wages’’ after ‘‘which wages’’; and 

10 (iii) by inserting ‘‘and additional 

11 wages’’ after ‘‘records of wages’’; and 

12 (D) in subsection (c)(2)(R)— 

13 (i) by inserting ‘‘and additional self14 employment income (as so defined)’’ after 

15 ‘‘self-employment income (as so defined)’’; 

16 (ii) by inserting ‘‘and additional self17 employment income’’ after ‘‘which self-em18 ployment income’’; and 

19 (iii) by inserting ‘‘and additional self20 employment income’’ after ‘‘records of self21 employment income’’. 

22 (2) DEFINITION OF ADDITIONAL WAGES.—Sec23 tion 209 of the Social Security Act (42 U.S.C. 409) 

24 is amended by adding at the end the following new 

25 subsection: 


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1 ‘‘Additional Wages 

2 ‘‘(l) For purposes of this title, the term ‘additional 

3 wages’ has the same meaning given the term ‘wages’ (de4 termined without regard to subsection (a)(1)), except that 

5 such term shall not include that amount of remuneration 

6 that is less than— 

7 ‘‘(1) for calendar year 2019, $400,000, and 

8 ‘‘(2) for any calendar year after 2019, the prod9 uct of— 

10 ‘‘(A) $400,000, and 

11 ‘‘(B) the quotient obtained by dividing— 

12 ‘‘(i) the national average wage index 

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

14 second preceding calendar year, by 

15 ‘‘(ii) the national average wage index 

16 for calendar year 2017.’’. 

17 (3) DEFINITION OF ADDITIONAL SELF-EMPLOY18 MENT INCOME.—Section 211 of the Social Security 

19 Act (42 U.S.C. 411) is amended by adding at the 

20 end the following new subsection: 

21 ‘‘Additional Self-Employment Income 

22 ‘‘(m)(1) For purposes of this title, the term ‘addi23 tional self-employment income’ means, for any taxable 

24 year, the amount equal to the excess (if any) of— 


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1 ‘‘(A) the sum of self-employment income (deter2 mined without regard to subsection (b)(1)) for the 

3 taxable year and wages (as defined in section 

4 209(a), determined without regard to paragraph (1) 

5 thereof) paid to such individual during such taxable 

6 year, over 

7 ‘‘(B) the sum of the additional wages paid to 

8 such individual for the taxable year and the amount 

9 determined under paragraph (2) for the taxable 

10 year. 

11 ‘‘(2) The amount determined under this paragraph 

12 is an amount equal to— 

13 ‘‘(A) in the case of a taxable year beginning 

14 after December 31, 2018, and before January 1, 

15 2020, $400,000, and 

16 ‘‘(B) in the case of any taxable year beginning 

17 after December 31, 2019, the product of— 

18 ‘‘(i) $400,000, and 

19 ‘‘(ii) the quotient obtained by dividing— 

20 ‘‘(I) the national average wage index 

21 (as defined in section 209(k)(1)) for the 

22 calendar year which is 2 years before the 

23 calendar year in which the taxable year be24 gins, by 


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1 ‘‘(II) the national average wage index 

2 for calendar year 2017.’’. 

3 SEC. 5. INCLUSION OF SURPLUS EARNINGS IN SOCIAL SE4 CURITY BENEFIT FORMULA. 

5 (a) INCLUSION OF SURPLUS AVERAGE INDEXED

6 MONTHLY EARNINGS IN DETERMINATION OF PRIMARY

7 INSURANCE AMOUNTS.—Section 215(a)(1)(A) of the So8 cial Security Act (42 U.S.C. 415(a)(1)(A)) is amended— 

9 (1) in clauses (i), (ii), and (iii), by inserting 

10 ‘‘basic’’ before ‘‘average indexed monthly earnings’’ 

11 each place it appears; 

12 (2) in clause (ii), by striking ‘‘and’’ at the end; 

13 (3) in clause (iii), by inserting ‘‘and’’ at the 

14 end; and 

15 (4) by inserting after clause (iii) the following 

16 new clause: 

17 ‘‘(iv) 2 percent of the individual’s surplus aver18 age indexed monthly earnings,’’. 

19 (b) BASIC AIME AND SURPLUS AIME.— 

20 (1) BASIC AIME.—Section 215(b)(1) of such 

21 Act (42 U.S.C. 415(b)(1)) is amended— 

22 (A) in the matter preceding subparagraph 

23 (A), by inserting ‘‘basic’’ before ‘‘average’’; and 

24 (B) in subparagraph (A), by striking 

25 ‘‘paragraph (3)’’ and inserting ‘‘paragraph 


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1 (3)(A)’’ and by inserting before the comma the 

2 following: ‘‘to the extent such total does not ex3 ceed the contribution and benefit base for the 

4 applicable year’’. 

5 (2) SURPLUS AIME.— 

6 (A) IN GENERAL.—Section 215(b)(1) of 

7 such Act (as amended by paragraph (1)) is 

8 amended— 

9 (i) by redesignating subparagraphs 

10 (A) and (B) as clauses (i) and (ii), respec11 tively; 

12 (ii) by inserting ‘‘(A)’’ after ‘‘(b)(1)’’; 

13 and 

14 (iii) by adding at the end the fol15 lowing new subparagraph: 

16 ‘‘(B)(i) An individual’s surplus average indexed 

17 monthly earnings shall be equal to the quotient obtained 

18 by dividing— 

19 ‘‘(I) the total (after adjustment under para20 graph (3)(B)) of such individual’s surplus earnings 

21 (determined under clause (ii)) for such individual’s 

22 benefit computation years (determined under para23 graph (2)), by 

24 ‘‘(II) the number of months in those years. 


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1 ‘‘(ii) For purposes of clause (i) and paragraph (3)(B), 

2 an individual’s surplus earnings for a benefit computation 

3 year are the total of such individual’s additional wages (as 

4 defined in section 209(l)) paid in and additional self-em5 ployment income (as defined in section 209(m)) credited 

6 to such benefit computation year, to the extent such total 

7 does not exceed the amount determined for such year 

8 under clause (iii). 

9 ‘‘(iii) For purposes of clause (ii), the amount deter10 mined under this clause is— 

11 ‘‘(I) in the case of a benefit computation year 

12 beginning after December 31, 2018, and before Jan13 uary 1, 2020, $500,000; and 

14 ‘‘(II) in the case of any benefit computation 

15 year beginning after December 31, 2019, the prod16 uct of $500,000 and the quotient obtained by divid17 ing— 

18 ‘‘(aa) the national average wage index (as 

19 defined in section 209(k)(1)) for the calendar 

20 year which is 2 years before the calendar year 

21 in which the benefit computation year begins, 

22 by 

23 ‘‘(bb) the national average wage index for 

24 calendar year 2017.’’. 


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1 (B) CONFORMING AMENDMENT.—The 

2 heading for section 215(b) of such Act is 

3 amended by striking ‘‘Average Indexed Monthly 

4 Earnings’’ and inserting ‘‘Basic Average In5 dexed Monthly Earnings; Surplus Average In6 dexed Monthly Earnings’’. 

7 (3) ADJUSTMENT OF SURPLUS EARNINGS FOR

8 PURPOSES OF DETERMINING SURPLUS AIME.—Sec9 tion 215(b)(3) of such Act (42 U.S.C. 415(b)(3)) is 

10 amended— 

11 (A) in subparagraph (A), by striking ‘‘sub12 paragraph (B)’’ and inserting ‘‘subparagraph 

13 (C)’’ and by inserting ‘‘and determination of 

14 basic average indexed monthly income’’ after 

15 ‘‘paragraph (2)’’; 

16 (B) by redesignating subparagraph (B) as 

17 subparagraph (C); and 

18 (C) by inserting after subparagraph (A) 

19 the following new subparagraph: 

20 ‘‘(B) For purposes of determining under paragraph 

21 (1)(B) an individual’s surplus average indexed monthly 

22 earnings, the individual’s surplus earnings (described in 

23 paragraph (1)(B)(ii)) for a benefit computation year shall 

24 be deemed to be equal to the product of— 


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1 ‘‘(i) the individual’s surplus earnings for such 

2 year (as determined without regard to this subpara3 graph), and 

4 ‘‘(ii) the quotient described in subparagraph 

5 (A)(ii).’’. 

6 (c) RAILROAD RETIREMENT ACT.—Section 1(h)(5) 

7 of the Railroad Retirement Act of 1974 (45 U.S.C. 

8 231(h)(5)) is amended— 

9 (1) by striking ‘‘and’’ at the end of clause (ii); 

10 (2) by striking the period at the end of clause 

11 (iii) and inserting ‘‘; and’’; and 

12 (3) by adding at the end the following new 

13 clause: 

14 ‘‘(iv) for each such calendar month 

15 after 2018, the amount which is creditable 

16 as such individual’s ‘additional wages’ 

17 under section 209(l) of the Social Security 

18 Act.’’. 

19 (d) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply with respect to individuals who ini21 tially become eligible (within the meaning of section 

22 215(a)(3)(B) of the Social Security Act (42 U.S.C. 

23 415(a)(3)(B))) for old-age or disability insurance benefits 

24 under title II of the Social Security Act, or who die (before 


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1 becoming eligible for such benefits), in any calendar year 

2 after 2018. 

Æ 


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