I 

114TH CONGRESS 

2D SESSION H. R. 5747 

To amend title II of the Social Security Act to improve solvency and stability 

for future generations. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 13, 2016 

Mr. RIBBLE (for himself, Mr. COOPER, Mr. RIGELL, Mrs. LUMMIS, Mr. 

ROKITA, and Mr. BENISHEK) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the 

Committees on Rules, and the Budget, 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 improve 

solvency and stability for future generations. 

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 ‘‘S.O.S. Act of 2016’’. 

5 SEC. 2. INCREASE IN CONTRIBUTION AND BENEFIT BASE. 

6 (a) IN GENERAL.—Section 230 of the Social Security 

7 Act (42 U.S.C. 430) is amended— 


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1 (1) in subsection (a), by striking ‘‘subsection 

2 (b) or (c)’’ and inserting ‘‘this section’’; 

3 (2) in subsection (b), by inserting ‘‘with respect 

4 to remuneration paid (and taxable years beginning) 

5 in each calendar year before 2017’’ before ‘‘shall 

6 (subject to subsection (c))’’; 

7 (3) by redesignating subsection (d) as sub8 section (f); and 

9 (4) by inserting after subsection (c) the fol10 lowing: 

11 ‘‘(d)(1) The amount of such contribution and benefit 

12 base with respect to remuneration paid (and taxable years 

13 beginning) in each calendar year after 2016 shall (subject 

14 to subsection (e)) be determined by the Commissioner 

15 (using projections made in advance of such year by the 

16 Chief Actuary of the Social Security Administration based 

17 on the most recent annual report of the Board of Trust18 ees) such that the percentage of the total earnings for all 

19 workers that are taxable under sections 1401 or 3101 of 

20 the Internal Revenue Code of 1986 is equal to 90 percent 

21 for each such calendar year. 

22 ‘‘(2) In making the determination under paragraph 

23 (1), the Commissioner may enter into agreements with the 

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1 enue to share any information necessary to carry out such 

2 paragraph. 

3 ‘‘(e) For purposes of this section, and for purposes 

4 of determining wages and self-employment income under 

5 sections 209, 211, 213, and 215 of this Act and sections 

6 1402, 3121, 3122, 3125, 6413, and 6654 of the Internal 

7 Revenue Code of 1986, the ‘contribution and benefit base’ 

8 with respect to remuneration paid (and taxable years be9 ginning)— 

10 ‘‘(1) in 2017 shall be $156,550; 

11 ‘‘(2) in 2018 shall be $194,600; 

12 ‘‘(3) in 2019 shall be $232,650; 

13 ‘‘(4) in 2020 shall be $270,700; and 

14 ‘‘(5) in 2021 shall be $308,750. 

15 For purposes of determining under subsection (b) the 

16 ‘contribution and benefit base’ with respect to remunera17 tion paid (and taxable years beginning) in 2022 and sub18 sequent years, the dollar amounts specified in the pre19 ceding sentence shall be considered to have resulted from 

20 the application of such subsection (b) and to be the 

21 amount determined (with respect to the years involved) 

22 under that subsection.’’. 

23 (b) EFFECTIVE DATE.—The amendments made by 

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1 spect to the contribution and benefit base for calendar 

2 years after 2016. 

3 SEC. 3. MODIFICATION OF PRIMARY INSURANCE AMOUNT 

4 FORMULA; INCLUSION OF SURPLUS EARN5 INGS. 

6 (a) INCLUSION OF SURPLUS AVERAGE INDEXED

7 MONTHLY EARNINGS IN DETERMINATION OF PRIMARY

8 INSURANCE AMOUNTS.— 

9 (1) IN GENERAL.—Section 215(a)(1)(A) of the 

10 Social Security Act (42 U.S.C. 415(a)(1)(A)) is 

11 amended— 

12 (A) in clauses (i), (ii), and (iii), by insert13 ing ‘‘basic’’ before ‘‘average indexed monthly 

14 earnings’’ each place it appears; 

15 (B) in clause (ii), by striking ‘‘and’’ at the 

16 end; 

17 (C) in clause (iii), by inserting ‘‘and’’ at 

18 the end; and 

19 (D) by inserting after clause (iii) the fol20 lowing: 

21 ‘‘(iv) 2.5 percent of the individual’s surplus av22 erage indexed monthly earnings.’’. 

23 (b) BASIC AIME AND SURPLUS AIME.— 

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

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


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1 (A) by inserting ‘‘basic’’ before ‘‘average’’; 

2 and 

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

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

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

6 following: ‘‘to the extent such total does not ex7 ceed the amount established for purposes of 

8 this clause by paragraph (4)’’. 

9 (2) SURPLUS AIME.— 

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

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

12 amended— 

13 (i) by redesignating subparagraphs 

14 (A) and (B) as clauses (i) and (ii), respec15 tively; 

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

17 and 

18 (iii) by adding at the end the fol19 lowing new subparagraph: 

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

21 monthly earnings shall be equal to the quotient obtained 

22 by dividing— 

23 ‘‘(I) the total (after adjustment under para24 graph (3)(B)) of such individual’s surplus earnings 

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


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1 benefit computation years (determined under para2 graph (2)), by 

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

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

5 an individual’s surplus earnings for a benefit computation 

6 year are the total of such individual’s wages paid in and 

7 self-employment income credited to such benefit computa8 tion year, to the extent such total (before adjustment 

9 under paragraph (3)(B))— 

10 ‘‘(I) exceeds the amount established for pur11 poses of subparagraph (A)(i) by paragraph (4), and 

12 ‘‘(II) does not exceed the contribution and ben13 efit base for such year.’’. 

14 (B) CONFORMING AMENDMENT.—The 

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

16 amended by striking ‘‘Average Indexed Monthly 

17 Earnings’’ and inserting ‘‘Basic Average In18 dexed Monthly Earnings; Surplus Average In19 dexed Monthly Earnings’’. 

20 (3) ADJUSTMENT OF SURPLUS EARNINGS FOR

21 PURPOSES OF DETERMINING SURPLUS AIME.—Sec22 tion 215(b)(3) of such Act (42 U.S.C. 415(b)(3)) is 

23 amended— 

24 (A) in subparagraph (A), by striking ‘‘sub25 paragraph (B)’’ and inserting ‘‘subparagraph 


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

2 basic average indexed monthly income’’ after 

3 ‘‘paragraph (2)’’; 

4 (B) by redesignating subparagraph (B) as 

5 subparagraph (C); and 

6 (C) by inserting after subparagraph (A) 

7 the following new subparagraph: 

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

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

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

11 paragraph (2)(B)(ii)) for a benefit computation year shall 

12 be deemed to be equal to the product of— 

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

14 year (as determined without regard to this subpara15 graph), and 

16 ‘‘(ii) the quotient described in subparagraph 

17 (A)(ii).’’. 

18 (4) WAGE INDEXING IN DETERMINATION OF

19 SURPLUS EARNINGS.—Section 215(b) of such Act 

20 (42 U.S.C. 415(b)) is amended— 

21 (A) by redesignating paragraph (4) as 

22 paragraph (5); and 

23 (B) by inserting after paragraph (3) the 

24 following: 


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1 ‘‘(4) The amount established for purposes of para2 graph (1)(A)(i) shall be— 

3 ‘‘(A) for individuals who initially become eligible 

4 for old-age or disability insurance benefits, or who 

5 die (before becoming so eligible), in calendar year 

6 2017, $118,500, and 

7 ‘‘(B) for individuals who initially become eligi8 ble for old-age or disability insurance benefits, or 

9 who die (before becoming so eligible), in any cal10 endar year after 2017, the product of $118,500 and 

11 the quotient obtained by dividing— 

12 ‘‘(i) the national average wage index (as 

13 defined in section 209(k)(1)) for the second cal14 endar year preceding the calendar year for 

15 which the determination is made, by 

16 ‘‘(ii) the national average wage index (as 

17 so defined) for 2015.’’. 

18 (c) REDUCTION OF THIRD BEND POINT FACTOR.— 

19 (1) IN GENERAL.—Section 215(a)(1)(A)(iii) of 

20 the Social Security Act (42 U.S.C. 415(a)(1)(A)(iii)) 

21 is amended by striking ‘‘15 percent’’ and inserting 

22 ‘‘5 percent’’. 

23 (2) EFFECTIVE DATE; APPLICATION RULE.— 

24 The amendment made by paragraph (1) shall apply 

25 with respect to computations or recomputations of 


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1 primary insurance amounts made on or after Janu2 ary 1, 2017, except that section 215(a)(1)(A)(iii) of 

3 the Social Security Act shall be applied by making 

4 the following substitutions for ‘‘5 percent’’ for com5 putations and recomputations made in the following 

6 calendar years: 

7 (A) for calendar year 2017, by substituting 

8 ‘‘13 percent’’; 

9 (B) for calendar year 2018, by substituting 

10 ‘‘11 percent’’; 

11 (C) for calendar year 2019, by substituting 

12 ‘‘9 percent’’; and 

13 (D) for calendar year 2020, by sub14 stituting ‘‘7 percent’’. 

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

16 this section shall apply with respect to individuals who ini17 tially become eligible for old-age or disability insurance 

18 benefits under title II of the Social Security Act, or who 

19 die (before becoming eligible for such benefits), in any cal20 endar year after 2016. 

21 SEC. 4. INCREASE IN RETIREMENT AGE. 

22 (a) IN GENERAL.—Section 216(l) of the Social Secu23 rity Act (42 U.S.C. 416(l)) is amended— 

24 (1) in paragraph (1)— 


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1 (A) in subparagraph (D), by striking 

2 ‘‘and’’ at the end; 

3 (B) in subparagraph (E), by striking ‘‘, 67 

4 years of age.’’ and inserting ‘‘and before Janu5 ary 1, 2023, 67 years of age;’’; and 

6 (C) by adding at the end the following: 

7 ‘‘(F) with respect to an individual who attains 

8 early retirement age after December 31, 2022, and 

9 before January 1, 2035, 67 years of age plus the 

10 number of months in the age increase factor (as de11 termined under paragraph (3)) for the calendar year 

12 in which such individual attains early retirement 

13 age; 

14 ‘‘(G) with respect to an individual who attains 

15 early retirement age in any calendar year after 

16 2034, the longevity indexed retirement age applica17 ble for individuals who attain early retirement age in 

18 such calendar year (as determined under paragraph 

19 (4)).’’; and 

20 (2) in paragraph (3)— 

21 (A) by striking ‘‘subparagraph (B) or (D)’’ 

22 and inserting ‘‘subparagraph (B), (D), or (F)’’; 

23 and 

24 (B) by adding at the end the following: 


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1 ‘‘(C) With respect to an individual who attains 

2 early retirement age in the 12-year period consisting 

3 of the calendar years 2023 through 2034, the age 

4 increase factor shall be equal to two-twelfths of the 

5 number of months in the period beginning with Jan6 uary 2023 and ending with December of the year in 

7 which the individual attains early retirement age.’’; 

8 (3) by adding at the end the following: 

9 ‘‘(4)(A) The longevity indexed retirement age 

10 applicable for individuals who attain early retirement 

11 age in a calendar year after 2034 is— 

12 ‘‘(i) in the case of calendar years 2035 

13 through 2044, 69 years of age plus one twenty14 fourth of the number of months in the period 

15 beginning with January 2035 and ending with 

16 December of the year in which the individual 

17 attains early retirement age, rounded down to 

18 the nearest month; and 

19 ‘‘(ii) in the case of a calendar year after 

20 2044, the appropriate number of years of age 

21 (including any fraction rounded to the nearest 

22 month) determined by the Commissioner such 

23 that the ratio of— 

24 ‘‘(I) the number of months by which 

25 the average number of years (including any 


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1 fraction rounded to the nearest month) in 

2 life expectancy for an individual attaining 

3 early retirement age in such calendar year 

4 (as determined under subparagraph (C)) 

5 exceeds such appropriate number of years 

6 of age, to 

7 ‘‘(II) the number of months by which 

8 such appropriate number of years of age 

9 exceeds 20 years of age, 

10 is equal to the baseline retirement-to-employ11 ment ratio (described in subparagraph (B)). 

12 ‘‘(B) For purposes of subparagraph (A), the 

13 baseline retirement-to-employment ratio is equal to 

14 the ratio of— 

15 ‘‘(i) the number of months by which the 

16 average number of years (including any fraction 

17 rounded to the nearest month) in life expect18 ancy for an individual attaining early retire19 ment age in 2044 (as determined under sub20 paragraph (C)) exceeds 69 years of age and 5 

21 months, to 

22 ‘‘(ii) 49 years of age and 5 months. 

23 ‘‘(C) At the beginning of each 10-year period 

24 beginning with the 10-year period that begins on 

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1 rity shall determine (using generally accepted actu2 arial principles and based on the intermediate as3 sumptions in the most recent Trustees Report and 

4 such other data as the Commissioner determines ap5 propriate) and publish in the Federal Register— 

6 ‘‘(i) an estimate of the average number of 

7 years (including any fraction rounded to the 

8 nearest month) in life expectancy for an indi9 vidual attaining early retirement age in each 

10 year of such 10-year period; and 

11 ‘‘(ii) the longevity indexed retirement age 

12 applicable for individuals who attain early re13 tirement age in each year (after 2044) of such 

14 10-year period (as determined under subpara15 graph (A)).’’. 

16 (b) EXTENSION OF MAXIMUM AGE FOR ENTITLE17 MENT TO DELAYED RETIREMENT CREDIT.—Section 

18 202(w)(2)(A) of such Act (42 U.S.C. 402(w)(2)(A)) is 

19 amended— 

20 (1) by striking ‘‘prior to the month in which 

21 such individual attained age 70, and’’ and inserting 

22 ‘‘prior to the later of—’’; and 

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

24 ‘‘(i) the month in which such individual 

25 would attain age 70, or 


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1 ‘‘(ii) the month which ends 36 months 

2 after the end of the month in which such indi3 vidual attained retirement age (as defined in 

4 section 216(l)), and’’. 

5 (c) EXTENSION OF MAXIMUM AGE FOR VOLUNTARY

6 SUSPENSION OF BENEFITS.—Section 202(z)(1)(A)(ii) of 

7 such Act (42 U.S.C. 402(z)(1)(A)(ii)) is amended by strik8 ing ‘‘the month in which the individual attains the age 

9 of 70’’ and inserting ‘‘the later of the month in which the 

10 individual attains the age of 70 or the month which ends 

11 36 months after the end of the month in which such indi12 vidual attained retirement age (as defined in section 

13 216(l))’’. 

14 SEC. 5. COST-OF-LIVING ADJUSTMENTS. 

15 (a) CHANGE IN CONSUMER PRICE INDEX.— 

16 (1) COMPUTATION OF COST-OF-LIVING ADJUST17 MENTS.—Section 215(i)(1) of the Social Security 

18 Act (42 U.S.C. 415(i)(1)) is amended— 

19 (A) in subparagraph (G), by striking the 

20 period at the end and inserting ‘‘; and’’; and 

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

22 subparagraph: 

23 ‘‘(H) the term ‘Consumer Price Index’ means 

24 the Chained Consumer Price Index for all Urban 


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1 Consumers (C–CPI–U, published by the Bureau of 

2 Labor Statistics of the Department of Labor).’’. 

3 (2) CONFORMING AMENDMENT.—Section 

4 215(i)(4) of such Act (42 U.S.C. 415(i)(4)) is 

5 amended by inserting ‘‘and by section 4 of the 

6 S.O.S. Act of 2016’’ after ‘‘1986’’. 

7 (3) APPLICATION TO PRE-1979 LAW.—Section 

8 215(i)(1) of the Social Security Act, as in effect in 

9 December 1978 and as applied in certain cases 

10 under the provisions of such Act as in effect after 

11 December 1978, is amended— 

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

13 ‘‘and’’ at the end; 

14 (B) in subparagraph (C), by striking the 

15 period at the end and inserting ‘‘; and’’; and 

16 (C) by adding at the end the following new 

17 subparagraph: 

18 ‘‘(D) the term ‘Consumer Price Index’ means 

19 the Chained Consumer Price Index for all Urban 

20 Consumers (C–CPI–U, published by the Bureau of 

21 Labor Statistics of the Department of Labor).’’. 

22 (b) NO EFFECT ON ADJUSTMENTS UNDER OTHER

23 LAWS.—Section 215(i) of such Act (42 U.S.C. 415(i)), as 

24 amended by subsection (b), is further amended by adding 

25 at the end the following new paragraph: 


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1 ‘‘(7) Any provision of law (other than in this title) 

2 which provides for adjustment of an amount based on a 

3 change in benefit amounts resulting from a determination 

4 made under this subsection shall be applied and adminis5 tered without regard to the amendments made by section 

6 4 of the S.O.S. Act of 2016.’’. 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to determinations made with re9 spect to cost-of-living computation quarters ending on or 

10 after September 30, 2017. 

11 SEC. 6. MINIMUM SOCIAL SECURITY BENEFIT. 

12 (a) IN GENERAL.—Section 215 of the Social Security 

13 Act (42 U.S.C. 415) is amended by adding at the end the 

14 following: 

15 ‘‘Minimum Monthly Insurance Benefit 

16 ‘‘(j)(1) Notwithstanding the preceding provisions of 

17 this section— 

18 ‘‘(A) subject to paragraphs (4), (8), and (9), 

19 the primary insurance amount of any individual who 

20 is credited with greater than 10 years of coverage 

21 and who initially becomes eligible for old-age or dis22 ability insurance benefits or dies (before becoming 

23 eligible for such benefits) for a month beginning 

24 after December 31, 2016 (in this subsection referred 


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1 to as a ‘qualified individual’), shall be equal to the 

2 greater of— 

3 ‘‘(i) the primary insurance amount deter4 mined under this section (without regard to this 

5 subsection), or 

6 ‘‘(ii) the minimum monthly insurance ben7 efit determined under paragraph (2), and 

8 ‘‘(B) any recomputation of the primary insur9 ance amount of a qualified individual shall not result 

10 in a primary insurance amount less than the pri11 mary insurance amount as in effect immediately 

12 prior to such recomputation. 

13 ‘‘(2) For purposes of this subsection, the term ‘minimum monthly insurance benefit’ means 1 14 ⁄12 of the appli15 cable percentage of the adjusted minimum benefit level (as 

16 defined in paragraph (6)). 

17 ‘‘(3) For purposes of this subsection, subject to para18 graph (4), the applicable percentage shall be equal to— 

19 ‘‘(A) for a qualified individual who has 20 years 

20 of coverage or less, 100 percent reduced by 10 per21 centage points for each year of coverage less than 

22 20; 

23 ‘‘(B) for a qualified individual who has more 

24 than 20 years of coverage but less than 40 years of 


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1 coverage, 125 percent reduced by 1.25 percentage 

2 points for each year of coverage less than 40; and 

3 ‘‘(C) for a qualified individual who has 40 years 

4 of coverage or greater, 125 percent. 

5 ‘‘(4)(A) In the case of an individual who initially be6 comes eligible for disability insurance benefits under sec7 tion 223 before attaining age 62, or who dies before at8 taining age 62, in a month beginning after December 31, 

9 2016, and who is credited with at least 5 years of cov10 erage, the individual shall be treated as a qualified indi11 vidual and the applicable percentage shall be 125 reduced 

12 by the number of percentage points determined under sub13 paragraph (B) for each year of coverage of the qualified 

14 individual less than the number as determined under sub15 paragraph (C). 

16 ‘‘(B) The number of percentage points under this 

17 subparagraph shall be determined by— 

18 ‘‘(i) dividing the number of the qualifying indi19 vidual’s elapsed years (as defined in subsection 

20 (b)(2)(B)(iii)) by 40; 

21 ‘‘(ii) multiplying the result under clause (i) by 

22 20; and 

23 ‘‘(iii) dividing 125 by the result under clause 

24 (ii) and rounding to the nearest one hundredth of 1 

25 percentage point. 


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1 ‘‘(C) The number of years of coverage under this sub2 paragraph shall be determined by multiplying the ratio de3 termined under subparagraph (B)(i) by 30 and rounding 

4 to the next lower whole number. 

5 ‘‘(5) For purposes of this subsection, a year of cov6 erage is a calendar year for which an individual is credited 

7 with 4 quarters of coverage. 

8 ‘‘(6) For purposes of this subsection— 

9 ‘‘(A) for individuals who initially become eligible 

10 for old-age or disability insurance benefits or die 

11 (before becoming eligible for such benefits) in either 

12 2017 or 2018, the term ‘adjusted minimum benefit 

13 level’ means the product of— 

14 ‘‘(i) the weighted average of the Federal 

15 poverty threshold applicable to a family of 1 for 

16 the year before such year (as determined by the 

17 Bureau of the Census); and 

18 ‘‘(ii) the applicable phase-in factor for such 

19 calendar year (as determined under paragraph 

20 (7)); and 

21 ‘‘(B) for individuals who initially become eligi22 ble for old-age or disability insurance benefits or die 

23 (before becoming eligible for such benefits) in a year 

24 after 2018, the term ‘adjusted minimum benefit 

25 level’ means the product of— 


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1 ‘‘(i) the amount determined under sub2 paragraph (A) for calendar year 2018, multi3 plied by the quotient described in subsection 

4 (b)(3)(A)(ii), except that the reference to ‘the 

5 computation base year for which the determina6 tion is made’ in such subsection shall be 

7 deemed instead to be a reference to ‘2016’; and 

8 ‘‘(ii) the applicable phase-in factor for such 

9 calendar year (as determined under paragraph 

10 (7)). 

11 ‘‘(7) For purposes of paragraph (6), the applicable 

12 phase-in factor shall be equal to— 

13 ‘‘(A) for calendar year 2017, 40 percent; 

14 ‘‘(B) for each calendar year during the period 

15 between 2018 through 2022, the applicable phase-in 

16 factor under this paragraph for the preceding year 

17 increased by 10 percentage points; and 

18 ‘‘(C) for calendar year 2023 and each suc19 ceeding year, 100 percent. 

20 ‘‘(8) The amount of the minimum monthly insurance 

21 benefit of any individual under this subsection shall be re22 duced (but not below zero) by an amount equal to any 

23 periodic benefit payable to such individual for such month 

24 under a pension, annuity, retirement, or similar fund or 

25 system which is based upon such individual’s earnings for 


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1 any service described in paragraphs (1) through (21) of 

2 section 210(a). 

3 ‘‘(9) The provisions of this subsection shall not apply 

4 in the case of an individual— 

5 ‘‘(A) whose primary insurance amount would 

6 otherwise be computed under subsection (a)(7); or 

7 ‘‘(B) whose wife’s insurance benefit or hus8 band’s insurance benefit under subsection (b) or (c) 

9 of section 202 is determined pursuant to subsection 

10 (b)(2)(A)(i)(II) or (c)(2)(A)(i)(II) of such section.’’. 

11 (b) CONFORMING AMENDMENT.—Section 202(a) of 

12 such Act (42 U.S.C. 402(a)) is amended in the last sen13 tence by striking ‘‘section 215(a)’’ and inserting ‘‘section 

14 215’’. 

15 SEC. 7. ESTABLISHMENT OF AN INCREASED BENEFIT FOR 

16 BENEFICIARIES ON ACCOUNT OF LONG-TERM 

17 ELIGIBILITY. 

18 (a) IN GENERAL.—Section 202 of the Social Security 

19 Act (42 U.S.C. 402) is amended by adding at the end the 

20 following: 

21 ‘‘(z) INCREASE IN BENEFIT AMOUNTS ON ACCOUNT

22 OF LONG-TERM ELIGIBILITY.—(1) In the case of an indi23 vidual who is a qualified beneficiary for a calendar year 

24 after 2016, the amount of any monthly insurance benefit 

25 of such qualified beneficiary under this section or section 


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1 223 for any month in such calendar year shall be in2 creased in accordance with paragraph (3). 

3 ‘‘(2)(A) For purposes of this subsection, the term 

4 ‘qualified beneficiary’ for a calendar year means an indi5 vidual in any case in which such calendar year begins at 

6 least 20 years after the applicable date of eligibility for 

7 such individual. 

8 ‘‘(B) For purposes of this subsection, the applicable 

9 date of eligibility for an individual is the date on which 

10 the individual initially became eligible for monthly insur11 ance benefits under subsection (a) or section 223. 

12 ‘‘(3)(A) The increase required under paragraph (1) 

13 with respect to the monthly insurance benefit of an indi14 vidual who is a qualified beneficiary for a calendar year 

15 shall be equal to the applicable percentage (specified for 

16 such benefit in subparagraph (B)) of the full increase 

17 amount for such calendar year (determined under sub18 paragraph (C)). 

19 ‘‘(B) The applicable percentage specified for a 

20 monthly insurance benefit under this subparagraph for a 

21 calendar year is the percentage specified, in connection 

22 with the number of years ending after the applicable date 

23 of eligibility for such individual and before such calendar 

24 year, in the following table: 

‘‘If the number of years is: The applicable 

percentage is: 

20 ........................................................................... 20 percent 


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21 ........................................................................... 40 percent 

22 ........................................................................... 60 percent 

23 ........................................................................... 80 percent 

24 or more .............................................................. 100 percent. 

1 ‘‘(C)(i) Except as provided in clauses (ii) and (iii), 

2 the full increase amount determined under this subpara3 graph for a calendar year in connection with the monthly 

4 insurance benefit of a qualified beneficiary is a dollar 

5 amount equal to 5 percent of the amount of the old-age 

6 insurance benefit that would apply to a hypothetical indi7 vidual if— 

8 ‘‘(I) on January 1 of the calendar year in which 

9 occurred the applicable eligibility date with respect 

10 to such individual, such hypothetical individual were 

11 fully insured, attained retirement age (as defined in 

12 section 216(l)(2)) and were otherwise eligible for, 

13 and applied for, old-age insurance benefits; and 

14 ‘‘(II) such hypothetical individual had earnings 

15 equal to the national average wage index (as de16 scribed in section 209(k)(1)) for each year beginning 

17 with the year in which the individual attained the 

18 age of 22 through the year in which the individual 

19 attained the age of 62. 

20 ‘‘(ii)(I) In the case of a monthly insurance benefit 

21 under subsection (b) or (c), the full increase amount deter22 mined under this subparagraph shall be one-half the 

23 amount determined under clause (i). 


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1 ‘‘(II) In the case of a monthly insurance benefit 

2 under subsection (d), (g), or (h), the full increase amount 

3 determined under this subparagraph shall be the percent4 age of the amount determined under clause (i) equal to 

5 the ratio which the amount of such benefit bears to the 

6 primary insurance amount (before the application of sec7 tion 203(a)) of the individual on whose wages and self8 employment income the monthly insurance benefit is 

9 based. 

10 ‘‘(4) In the case of a qualified beneficiary who is enti11 tled to two or more monthly insurance benefits under this 

12 title for the same month— 

13 ‘‘(A) the earliest applicable date of eligibility for 

14 such beneficiary with respect to such benefits shall 

15 be treated as the applicable date of eligibility for 

16 such beneficiary for the purposes of this subsection; 

17 and 

18 ‘‘(B) such beneficiary shall be entitled to an in19 crease with respect only to one such benefit. 

20 ‘‘(5) This subsection shall be applied to monthly in21 surance benefits after any increase under subsection (w) 

22 and any applicable reductions and deductions under this 

23 title. 

24 ‘‘(6) For purposes of this subsection, in the case of 

25 any individual who would otherwise have attained the staVerDate Sep 11 2014 03:04 Jul 21, 2016 Jkt 059200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H5747.IH H5747

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1 tus of a qualified beneficiary prior to January 1, 2017, 

2 such individual shall be treated as having attained such 

3 status on such date.’’. 

4 (b) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to benefits payable for months be6 ginning after December 31, 2016. 

7 SEC. 8. INCREASE IN BENEFIT COMPUTATION YEARS. 

8 (a) IN GENERAL.—Section 215(b)(2) of the Social 

9 Security Act (42 U.S.C. 415(b)(2)(A)(I)) is amended— 

10 (1) in subparagraph (A)(i), by striking ‘‘5 

11 years’’ and inserting ‘‘the applicable number of 

12 years specified in subparagraph (C)(i)’’; 

13 (2) in subparagraph (A)(ii)— 

14 (A) by striking ‘‘one-fifth’’ and inserting 

15 ‘‘the applicable fraction specified in subpara16 graph (C)(ii)’’; 

17 (B) by striking ‘‘5 years.’’ and inserting 

18 ‘‘the applicable number of years specified in 

19 subparagraph (C)(i).’’; and 

20 (3) by adding at the end of paragraph (2) the 

21 following new subparagraph: 

22 ‘‘(C)(i) For purposes of clauses (i) and (ii) of sub23 paragraph (A), the applicable number of years is the num24 ber of years set forth in the following table: 


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‘‘If the calendar year in which the 

individual becomes eligible for 

the benefit involved, or dies (before becoming eligible for such 

benefit) is: 

The applicable number of 

years is: 

Before 2017 ................................................................................. 5

2017 ............................................................................................. 4

2018 ............................................................................................. 3

After 2018 ................................................................................... 2. 

1 ‘‘(ii) For purposes of clause (ii) of subparagraph (A), 

2 the applicable fraction is the fraction set forth in the fol3 lowing table: 

‘‘If the calendar year in which the 

individual becomes eligible for 

disability insurance benefits is: 

The applicable fraction is: 

Before 2017 ................................................................................. 1/5

2017 ............................................................................................. 1/6

2018 ............................................................................................. 1/8

After 2018 ................................................................................... 1/12.’’. 

4 (b) EFFECTIVE DATE.—The amendments made by 

5 subsection (a) shall apply with respect to individuals who 

6 become eligible for monthly insurance benefits (or who die 

7 before becoming so eligible) in any calendar year after 

8 2016. 

9 SEC. 9. PROTECTION OF SOCIAL SECURITY TRUST FUNDS. 

10 (a) PROTECTION OF SOCIAL SECURITY.—Title III of 

11 the Congressional Budget Act of 1974 is amended by add12 ing at the end the following new section: 

13 ‘‘LOCK-BOX FOR SOCIAL SECURITY

14 ‘‘SEC. 316. (a) LOCK-BOX FOR SOCIAL SECURITY.— 

15 ‘‘(1) CONCURRENT RESOLUTIONS ON THE

16 BUDGET.— 


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1 ‘‘(A) IN GENERAL.—It shall not be in 

2 order in the House of Representatives or the 

3 Senate to consider any concurrent resolution on 

4 the budget, or an amendment thereto or con5 ference report thereon, that would set forth to6 tals for any fiscal year with respect to the So7 cial Security Trust Funds that are less than the 

8 totals of the Social Security Trust Funds for 

9 that fiscal year as calculated in accordance with 

10 a current services baseline. 

11 ‘‘(B) EXCEPTION.—(i) Subparagraph (A) 

12 shall not apply to the extent that a violation of 

13 such subparagraph would result from an as14 sumption in the resolution, amendment, or con15 ference report, as applicable, of an increase in 

16 outlays or a decrease in revenues and disburse17 ments relative to the baseline underlying that 

18 resolution for social security reform legislation 

19 for any such fiscal year. 

20 ‘‘(ii) If a concurrent resolution on the 

21 budget, or an amendment thereto or conference 

22 report thereon, would be in violation of sub23 paragraph (A) because of an assumption of an 

24 increase in outlays or a decrease in revenue rel25 ative to the baseline underlying that resolution 


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1 for social security reform legislation for any 

2 such fiscal year, then that resolution shall in3 clude a statement identifying any such increase 

4 in outlays or decrease in revenues and disburse5 ments. 

6 ‘‘(2) SPENDING AND TAX LEGISLATION.— 

7 ‘‘(A) IN GENERAL.—It shall not be in 

8 order in the House of Representatives or the 

9 Senate to consider any bill, joint resolution, 

10 amendment, motion, or conference report if— 

11 ‘‘(i) the enactment of that bill or reso12 lution, as reported; 

13 ‘‘(ii) the adoption and enactment of 

14 that amendment; or 

15 ‘‘(iii) the enactment of that bill or res16 olution in the form recommended in that 

17 conference report, 

18 would cause the totals for any fiscal year cov19 ered by the most recently agreed to concurrent 

20 resolution on the budget with respect to the So21 cial Security Trust Funds to be less than the 

22 totals of the Social Security Trust Funds for 

23 that fiscal year as calculated in accordance with 

24 the current services baseline. 


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1 ‘‘(B) EXCEPTION.—Subparagraph (A) 

2 shall not apply to social security reform legisla3 tion. 

4 ‘‘(b) ENFORCEMENT.—For purposes of enforcing any 

5 point of order under subsection (a), the totals of the Social 

6 Security Trust Funds for a fiscal year shall be the levels 

7 set forth in the later of the report accompanying the con8 current resolution on the budget (or, in the absence of 

9 such a report, placed in the Congressional Record prior 

10 to the consideration of such resolution) or in the joint ex11 planatory statement of managers accompanying such reso12 lution. 

13 ‘‘(c) ADDITIONAL CONTENT OF REPORTS ACCOM14 PANYING BUDGET RESOLUTIONS AND OF JOINT EXPLAN15 ATORY STATEMENTS.—The report accompanying any con16 current resolution on the budget and the joint explanatory 

17 statement accompanying the conference report on each 

18 such resolution shall include the levels of the totals in the 

19 budget for each fiscal year set forth in such resolution and 

20 of the revenues and disbursements in the Social Security 

21 Trust Funds. 

22 ‘‘(d) DEFINITIONS.—As used in this section, the term 

23 ‘social security reform legislation’ means a bill or a joint 

24 resolution to save social security that includes a provision 

25 stating the following: ‘For purposes of section 316(a) of 


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1 the Congressional Budget Act of 1974, this Act con2 stitutes social security reform legislation.’. 

3 ‘‘(e) WAIVER AND APPEAL.—Subsection (a) may be 

4 waived or suspended in the Senate only by an affirmative 

5 vote of three-fifths of the Members, duly chosen and 

6 sworn. An affirmative vote of three-fifths of the Members 

7 of the Senate, duly chosen and sworn, shall be required 

8 in the Senate to sustain an appeal of the ruling of the 

9 Chair on a point of order raised under this section. 

10 ‘‘(f) EFFECTIVE DATE.—This section shall cease to 

11 have any force or effect upon the enactment of social secu12 rity reform legislation.’’. 

13 (b) PRESIDENT’S BUDGET.— 

14 (1) PROTECTION OF SOCIAL SECURITY.—If the 

15 budget of the United States Government submitted 

16 by the President under section 1105(a) of title 31, 

17 United States Code, recommends totals for any fis18 cal year with respect to the Social Security Trust 

19 Funds that are less than the totals of the Social Se20 curity Trust Funds for that fiscal year as calculated 

21 in accordance with current services baseline, then it 

22 shall include a detailed proposal for social security 

23 reform legislation. 

24 (2) EFFECTIVE DATE.—Subsection (a) shall 

25 cease to have any force or effect upon the enactment 


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1 of social security reform legislation as defined by 

2 section 316(d) of the Congressional Budget Act of 

3 1974. 

4 (c) CONFORMING AMENDMENT.—The table of con5 tents set forth in section 1(b) of the Congressional Budget 

6 and Impoundment Control Act of 1974 is amended by 

7 adding after the item for section 315 the following: 

‘‘Sec. 316. Lock-box for social security.’’. 

Æ 


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