II

103D CONGRESS

1ST SESSION S. 173

To amend title II of the Social Security Act to provide for a more gradual

period of transition (under a new alternative formula with respect to

such transition) to the changes in benefit computation rules enacted

in the Social Security Amendments of 1977 as such changes apply

to workers born in years after 1916 and before 1927 (and related

beneficiaries) and to provide for increases in such workers’ benefits

accordingly, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 21 (legislative day, JANUARY 5), 1993

Mr. DECONCINI (for himself, Mr. HARKIN, Mr. HEFLIN, Mr. HOLLINGS, Mr.

SHELBY, Mr. DASCHLE, Mr. BURNS, Mr. PRESSLER, Mr. PELL, Ms. MIKULSKI, and Mr. BRYAN) introduced the following bill; which was read

twice and referred to the Committee on Finance

A BILL

To amend title II of the Social Security Act to provide

for a more gradual period of transition (under a new

alternative formula with respect to such transition) to

the changes in benefit computation rules enacted in the

Social Security Amendments of 1977 as such changes

apply to workers born in years after 1916 and before

1927 (and related beneficiaries) and to provide for increases in such workers’ 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,
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1 SECTION 1. SHORT TITLE.

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

3 Adjustment Act of 1993’’.

4 SEC. 2. EXPANSION OF PERIOD OF TRANSITION; NEW AL5 TERNATIVE FORMULA WITH RESPECT TO

6 SUCH PERIOD.

7 (a) EXPANSION OF PERIOD OF TRANSITION.—Sec8 tion 215(a)(4)(B)(i) of the Social Security Act (42 U.S.C.

9 415(a)(4)(B)(i)) is amended by striking ‘‘1984’’ and in10 serting ‘‘1989’’.

11 (b) ESTABLISHMENT OF NEW TRANSITIONAL FOR12 MULA.—Section 215(a) of such Act (42 U.S.C. 415(a))

13 is amended by adding at the end the following new para14 graph:

15 ‘‘(8)(A) Paragraphs (1) (except for subparagraph

16 (C)(i) thereof) and (4) do not apply to the computation

17 or recomputation of a primary insurance amount for an

18 individual who had wages or self-employment income cred19 ited for one or more years prior to 1979, and who was

20 not eligible for an old-age or disability insurance benefit,

21 and did not die, prior to January 1979, if in the year for

22 which the computation or recomputation would be made

23 the individual’s primary insurance amount would be great24 er if computed or recomputed under subparagraph (B).

25 ‘‘(B) The primary insurance amount computed or re26 computed under this subparagraph is equal to the sum
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1 of the amount which would be computed under this sub2 section if this paragraph were not applied, plus the prod3 uct (not less than zero) derived by multiplying—

4 ‘‘(i) the excess of the adjusted old-law benefit

5 amount over the new-law benefit amount, by

6 ‘‘(ii) the applicable reduction factor.

7 ‘‘(C) For purposes of this paragraph, in the case of

8 any individual described in subparagraph (A)—

9 ‘‘(i) The term ‘adjusted old-law benefit amount’

10 means the amount computed or recomputed under

11 this subsection as in effect in December 1978 (for

12 purposes of old-age insurance benefits in the case of

13 an individual who becomes eligible for such benefits

14 prior to 1989) or subsection (d) (in the case of an

15 individual to whom such subsection applies), subject

16 to the amendments made by section 5117 of the

17 Omnibus Budget Reconciliation Act of 1990.

18 ‘‘(ii) The term ‘new-law benefit amount’ means

19 the amount which would be computed under this

20 subsection if this paragraph were not applied.

21 ‘‘(iii)(I) The term ‘applicable reduction factor’

22 means the excess of the applicable base percentage

23 determined under subclause (II) over the applicable

24 early retirement percentage determined under

25 subclause (III).
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1 ‘‘(II) The applicable base percentage deter2 mined under this subclause is the percentage pro3 vided in the following table:

‘‘If the individual becomes

eligible for old-age insurance The applicable base

benefits in: percentage is:

1979 .......................................................................... 40 percent

1980 .......................................................................... 37 percent

1981 .......................................................................... 34 percent

1982 .......................................................................... 31 percent

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

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

1985 .......................................................................... 15 percent

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

1987 .......................................................................... 5 percent

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

4 ‘‘(III) The applicable early retirement percent5 age determined under this subclause is the product

derived by multiplying 5 6 ⁄12 of 1 percent by the total

7 number of months, before the month in which the

8 individual attains the age of 65, for which an old9 age insurance benefit is payable to such individual.’’.

10 (c) APPLICABILITY OF OLD PROVISIONS.—Section

11 215(a)(5) of such Act (42 U.S.C. 415(a)(5)) is amended—

12 (1) in subparagraph (A), by striking ‘‘subject to

13 subparagraphs (B), (C), (D), and (E),’’ and insert14 ing ‘‘subject to subparagraphs (B), (C), (D), (E),

15 and (F),’’; and

16 (2) by adding at the end the following new sub17 paragraph:

18 ‘‘(F) In applying this section as in effect in December

19 1978 as provided in subparagraph (A) in the case of an
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1 individual to whom paragraph (1) does not apply by rea2 son of paragraph (8)—

3 ‘‘(i) subsection (b)(2)(C) shall be deemed to

4 provide that an individual’s ‘computation base years’

5 may include only calendar years in the period after

6 1950 (or 1936 if applicable) and ending with the

7 calendar year in which such individual attains age

8 65; and

9 ‘‘(ii) the ‘contribution and benefit base’ (under

10 section 230) with respect to remuneration paid in

11 (and taxable years beginning in) any calendar year

12 after 1981 shall be deemed to be $29,700.’’.

13 (d) CONFORMING AMENDMENT.—Section

14 215(a)(3)(A) of such Act (42 U.S.C. 415(a)(3)(A)) is

15 amended in the matter following clause (iii) by striking

16 ‘‘(4)’’ and inserting ‘‘(4) or (8)’’.

17 SEC. 3. EFFECTIVE DATE AND RELATED RULES.

18 (a) IN GENERAL.—Except as provided in subsection

19 (c), the amendments made by this Act shall be effective

20 as if included in the amendments made by section 201

21 of the Social Security Amendments of 1977.

22 (b) RECOMPUTATION.—In any case in which an indi23 vidual (under title II of the Social Security Act) is entitled,

24 for the month in which this Act is enacted, to monthly
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1 insurance benefits under such title which were com2 puted—

3 (1) under section 215 of the Social Security Act

4 as in effect (by reason of the Social Security Amend5 ments of 1977) after December 1978, or

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

7 prior to January 1979 (and subsequently amended

8 and modified) by reason of subsection (a)(4)(B) of

9 such section (as amended by the Social Security

10 Amendments of 1977),

11 the Secretary of Health and Human Services (notwith12 standing section 215(f)(1)) of the Social Security Act)

13 shall recompute such individual’s primary insurance

14 amount so as to take into account the amendments made

15 by this section.

16 (c) PROSPECTIVE APPLICABILITY.—The amendments

17 made by this Act shall apply only with respect to benefits

18 for months after November 1993.

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