II 

112TH CONGRESS 

1ST SESSION S. 804 

To adjust the normal and early retirement ages for receipt of benefits under 

the Social Security program, increase the maximum age for delayed 

retirement credit, and provide for progressive price indexing of benefits. 

IN THE SENATE OF THE UNITED STATES 

APRIL 13, 2011 

Mr. GRAHAM (for himself, Mr. PAUL, and Mr. LEE) introduced the following 

bill; which was read twice and referred to the Committee on Finance 

A BILL 

To adjust the normal and early retirement ages for receipt 

of benefits under the Social Security program, increase 

the maximum age for delayed retirement credit, and 

provide for progressive price indexing of benefits. 

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 Sol5 vency and Sustainability Act’’. 


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1 SEC. 2. ADJUSTMENT TO NORMAL AND EARLY RETIRE2 MENT AGE. 

3 Section 216(l) of the Social Security Act (42 U.S.C. 

4 416(l)) is amended— 

5 (1) in paragraph (1), by striking subparagraph 

6 (D) and inserting the following new subparagraphs: 

7 ‘‘(D) with respect to an individual who at8 tains early retirement age after December 31, 

9 2016, and before January 1, 2021, 66 years 

10 plus the number of months in the age increase 

11 factor (as determined under paragraph (5)(A)) 

12 for the calendar year in which such individual 

13 attains early retirement age; 

14 ‘‘(E) with respect to an individual who— 

15 ‘‘(i) attains 62 years of age after De16 cember 31, 2020, and before January 1, 

17 2028, such individual’s early retirement 

18 age (as determined under paragraph 

19 (2)(A)(ii)) plus 60 months; or 

20 ‘‘(ii) receives a benefit described in 

21 paragraph (2)(B) and attains 60 years of 

22 age after December 31, 2020, and before 

23 January 1, 2028, 66 years plus the num24 ber of months in the age increase factor 

25 (as determined under paragraph (5)(B)) 


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1 for the calendar year in which such indi2 vidual attains 60 years of age; 

3 ‘‘(F) with respect to an individual who— 

4 ‘‘(i) attains 62 years of age after De5 cember 31, 2027, and before January 1, 

6 2029, 69 years of age; or 

7 ‘‘(ii) receives a benefit described in 

8 paragraph (2)(B) and attains 60 years of 

9 age after December 31, 2027, and before 

10 January 1, 2029, 69 years of age; 

11 ‘‘(G) with respect to an individual who— 

12 ‘‘(i) attains 62 years of age after De13 cember 31, 2028, and before January 1, 

14 2032, 66 years of age plus the number of 

15 months in the age increase factor (as de16 termined under paragraph (5)(C)); or 

17 ‘‘(ii) receives a benefit described in 

18 paragraph (2)(B) and attains 60 years of 

19 age after December 31, 2028, and before 

20 January 1, 2032, 66 years of age plus the 

21 number of months in the age increase fac22 tor (as determined under paragraph 

23 (5)(B)); 

24 ‘‘(H) with respect to an individual who— 


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1 ‘‘(i) attains 62 years of age after De2 cember 31, 2031, and before January 1, 

3 2033, 70 years of age; or 

4 ‘‘(ii) receives a benefit described in 

5 paragraph (2)(B) and attains 60 years of 

6 age after December 31, 2031, and before 

7 January 1, 2033, 70 years of age; and 

8 ‘‘(I) with respect to an individual who— 

9 ‘‘(i) attains 62 years of age after De10 cember 31, 2032, 70 years of age plus the 

11 number of months in the age increase fac12 tor (as determined under paragraph (6)); 

13 or 

14 ‘‘(ii) receives a benefit described in 

15 paragraph (2)(B) and attains 60 years of 

16 age after December 31, 2032, 70 years of 

17 age plus the number of months in the age 

18 increase factor (as determined under para19 graph (6)).’’; 

20 (2) by amending paragraph (2) to read as fol21 lows: 

22 ‘‘(2) The term ‘early retirement age’ means— 

23 ‘‘(A) in the case of an old-age, wife’s, or 

24 husband’s insurance benefit— 


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1 ‘‘(i) 62 years of age with respect to an 

2 individual who attains such age before 

3 January 1, 2021; 

4 ‘‘(ii) with respect to an individual who 

5 attains 62 years of age after December 31, 

6 2020, and before January 1, 2028, 62 

7 years of age plus the number of months in 

8 the age increase factor (as determined 

9 under paragraph (4)) for the calendar year 

10 in which such individual attains 62 years 

11 of age; and 

12 ‘‘(iii) with respect to an individual 

13 who attains age 62 after December 31, 

14 2027, 64 years of age; or 

15 ‘‘(B) in the case of a widow’s or widower’s 

16 insurance benefit, 60 years of age.’’; and 

17 (3) by striking paragraph (3) and inserting the 

18 following new paragraphs: 

19 ‘‘(3) With respect to an individual who attains 

20 early retirement age in the 5-year period consisting 

21 of the calendar years 2000 through 2004, the age 

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

23 number of months in the period beginning with Jan24 uary 2000 and ending with December of the year in 

25 which the individual attains early retirement age. 


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1 ‘‘(4) For purposes of paragraph (2)(A)(ii), the 

2 age increase factor shall be equal to three-twelfths of 

3 the number of months in the period beginning with 

4 January 2021 and ending with December of the 

5 year in which the individual attains 62 years of age. 

6 ‘‘(5) The age increase factor shall be equal to 

7 three-twelfths of the number of months in the period 

8 beginning with January 2017 and ending with De9 cember of the year in which— 

10 ‘‘(A) for purposes of paragraph (1)(D), the 

11 individual attains early retirement age; 

12 ‘‘(B) for purposes of paragraphs (1)(E)(ii) 

13 and (1)(G)(ii), the individual attains 60 years 

14 of age; or 

15 ‘‘(C) for purposes of paragraph (1)(G)(i), 

16 the individual attains 62 years of age. 

17 ‘‘(6) The Commissioner of Social Security shall 

18 determine (using reasonable actuarial assumptions) 

19 and publish on or before November 1 of each cal20 endar year after 2031 the number of months 

21 (rounded, if not a multiple of one month, to the next 

22 lower multiple of one month) by which life expect23 ancy as of October 1 of such calendar year of an in24 dividual attaining early retirement age on such Octo25 ber 1 exceeds the life expectancy as of October 1, 


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1 2032, of an individual attaining early retirement age 

2 on October 1, 2032. With respect to an individual 

3 who attains early retirement in the calendar year fol4 lowing any calendar year in which a determination 

5 is made under this paragraph, the age increase fac6 tor shall be the number of months determined under 

7 this paragraph as of October 1 of such calendar year 

8 in which such determination is made.’’. 

9 SEC. 3. INCREASE IN MAXIMUM AGE FOR DELAYED RETIRE10 MENT CREDIT. 

11 (a) IN GENERAL.—Subsection (w) of section 202 of 

12 the Social Security Act (42 U.S.C. 402) is amended— 

13 (1) in paragraphs (2)(A) and (3), by striking 

14 ‘‘age 70’’ each place it appears and inserting ‘‘the 

15 maximum delayed retirement age (as determined 

16 pursuant to paragraph (7))’’; 

17 (2) by adding at the end the following new 

18 paragraph: 

19 ‘‘(7) For purposes of paragraphs (2)(A) and 

20 (3), the ‘maximum delayed retirement age’ shall be 

21 equal to— 

22 ‘‘(A) during the period before January 1, 

23 2017, 70 years of age for an individual who has 

24 attained early retirement age (as determined 


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1 under section 216(l)(2)) during such period; 

2 and 

3 ‘‘(B) during the period after December 31, 

4 2016, the sum of— 

5 ‘‘(i) the retirement age for such cal6 endar year, as determined under section 

7 216(l)(1), for an individual who has at8 tained age 62 (for purposes of section 

9 216(l)(2)(A)) or who has attained age 60 

10 (for purposes of section 216(l)(2)(B)) dur11 ing such calendar year; and 

12 ‘‘(ii) 4 years.’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 subsection (a) shall take effect on January 1, 2017. 

15 SEC. 4. PROGRESSIVE INDEXING OF BENEFITS FOR OLD16 AGE, WIFE’S, AND HUSBAND’S INSURANCE 

17 BENEFITS. 

18 (a) IN GENERAL.—Section 215(a) of the Social Secu19 rity Act (42 U.S.C. 415(a)) is amended— 

20 (1) by striking ‘‘The’’ in paragraph (1)(A) and 

21 inserting ‘‘In the case of any benefit other than an 

22 applicable benefit to which paragraph (2) applies, 

23 the’’; and 

24 (2) by redesignating paragraphs (2) through 

25 (7) as paragraphs (3) through (8), respectively, and 


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1 by inserting after paragraph (1) the following new 

2 paragraph: 

3 ‘‘(2)(A) In the case of an applicable benefit with re4 spect to any individual who initially becomes eligible for 

5 old-age insurance benefits or who dies (before becoming 

6 eligible for such benefits) in calendar year 2018 or later, 

7 the primary insurance amount of the individual shall be 

8 equal to the sum of— 

9 ‘‘(i) 90 percent of the individual’s average in10 dexed monthly earning (determined under subsection 

11 (b)) to the extent that such earnings do not exceed 

12 the amount established for purposes of paragraph 

13 (1)(A)(i) by paragraph (1)(B); 

14 ‘‘(ii) 32 percent of the individual’s average in15 dexed monthly earnings to the extent that such 

16 earnings exceed the amount established for purposes 

17 of paragraph (1)(A)(i) by paragraph (1)(B) but do 

18 not exceed the amount established for purposes of 

19 this clause by subparagraph (B); 

20 ‘‘(iii) 32 percent (reduced as provided in sub21 paragraph (C)) of the individual’s average indexed 

22 monthly earnings to the extent that such earnings 

23 exceed the amount established for purposes of clause 

24 (ii) but do not exceed the amount established for 


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1 purposes of paragraph (1)(A)(ii) by paragraph 

2 (1)(B); and 

3 ‘‘(iv) 15 percent (reduced as provided in sub4 paragraph (C)) of the individual’s average indexed 

5 monthly earnings to the extent that such earnings 

6 exceed the amount established for purposes of para7 graph (1)(A)(ii) by paragraph (1)(B). 

8 ‘‘(B)(i) For purposes of subparagraph (A)(ii), the 

9 amount established under this subparagraph for calendar 

10 year 2016 shall be the level of average indexed monthly 

11 earnings determined by the Chief Actuary of the Social 

12 Security Administration under clause (ii) as being at the 

13 40th percentile for the period of calendar years 2007 

14 through 2009. 

15 ‘‘(ii) For purposes of clause (i), the average indexed 

16 monthly earnings for the period of calendar years 2007 

17 through 2009 shall be determined by— 

18 ‘‘(I) determining the average indexed monthly 

19 earnings for each individual who initially became eli20 gible for old-age insurance benefits or who died (be21 fore becoming eligible for such benefits) during such 

22 period, except that in determining such average in23 dexed monthly earnings under subsection (b), sub24 section (b)(3)(A)(ii)(I) shall be applied by subVerDate Mar 15 2010 05:39 Apr 14, 2011 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S804.IS S804

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1 stituting calendar year 2004 for the second calendar 

2 year described in such subsection; and 

3 ‘‘(II) multiplying the amount determined for 

4 each individual under subclause (I) by the quotient 

5 obtained by dividing the national average wage index 

6 (as defined in section 209(k)(1)) for the calendar 

7 year 2016 by such index for the calendar year 2004. 

8 ‘‘(iii) For purposes of subparagraph (A)(ii), the 

9 amount established under this subparagraph for any cal10 endar year after 2018 shall be equal to the product of 

11 the amount in effect under clause (i) with respect to cal12 endar year 2018 and the quotient obtained by dividing— 

13 ‘‘(I) the national average wage index (as de14 fined in section 209(k)(1)) for the second calendar 

15 year preceding the calendar year for which the de16 termination is being made, by 

17 ‘‘(II) the national average wage index (as so de18 fined) for 2016. 

19 ‘‘(iv) The amount established under this subpara20 graph for any calendar year shall be rounded to the near21 est $1, except that any amount so established which is 

22 a multiple of $0.50 but not of $1 shall be rounded to the 

23 next higher $1. 

24 ‘‘(C)(i) Except as provided in clause (ii), in the case 

25 of any calendar year after 2017, each of the percentages 


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1 to which this subparagraph applies by reason of clauses 

2 (iii) or (iv) of subparagraph (A) shall be a percentage 

3 equal to such percentage multiplied by the quotient ob4 tained by dividing— 

5 ‘‘(I) the difference of the maximum CPI-in6 dexed benefit amount for such year over the amount 

7 determined under this paragraph for an individual 

8 whose average indexed monthly earnings are equal 

9 to the amount established for purposes of subpara10 graph (A)(ii) for such year, by 

11 ‘‘(II) the difference of the maximum wage-in12 dexed benefit amount for such year over the amount 

13 determined under this paragraph for an individual 

14 whose average indexed monthly earnings are equal 

15 to the amount established for purposes of subpara16 graph (A)(ii) for such year. 

17 ‘‘(ii) In the case of any calendar year after 2055, 

18 clause (i) shall not apply and each of the percentages to 

19 which this subparagraph applies by reason of clause (iii) 

20 or (iv) of subparagraph (A) shall be a percentage equal 

21 to the percentage determined under this subparagraph for 

22 the preceding year (determined after the application of 

23 this subparagraph). 

24 ‘‘(iii) For purposes of clause (i), the maximum wage25 indexed benefit amount for any calendar year shall be 


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1 equal to the amount determined under this paragraph (de2 termined without regard to any reduction under this sub3 paragraph) for an individual with wages paid in and self4 employment income credited to each computation base 

5 year in an amount equal to the contribution and benefit 

6 base for each calendar year. 

7 ‘‘(iv) For purposes of clause (i), the maximum CPI8 indexed benefit amount for any calendar year shall be an 

9 amount equal to the amount determined under clause (iii) 

10 for such year multiplied by a fraction— 

11 ‘‘(I) the numerator of which is the ratio (round12 ed to the nearest one-thousandth of 1 percent) of 

13 the Consumer Price Index for the second preceding 

14 year to such index for 2015; and 

15 ‘‘(II) the denominator of which is the ratio 

16 (rounded to the nearest one-thousandth of 1 per17 cent) of the national wage index (as defined in sec18 tion 209(k)(1)) for the second year preceding such 

19 year to such index for 2015. 

20 ‘‘(D) For purposes of this paragraph, rules similar 

21 to the rules of subparagraphs (C) and (D) of paragraph 

22 (1) shall apply. 

23 ‘‘(E) For purposes of this paragraph, the term ‘appli24 cable benefit’ means any benefit under section 202 other 

25 than— 


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1 ‘‘(i) a child’s insurance benefit under section 

2 202(d) with respect to a child of an individual who 

3 has died; and 

4 ‘‘(ii) a mother’s and father’s insurance benefit 

5 under section 202(g).’’. 

6 (b) TREATMENT OF DISABLED BENEFICIARIES.— 

7 Section 215(a) of such Act (as amended by subsection (a)) 

8 is amended further by adding at the end the following new 

9 paragraph: 

10 ‘‘(9)(A) Notwithstanding the preceding provisions of 

11 this subsection, in the case of an individual who has or 

12 has had a period of disability and who initially becomes 

13 eligible for old-age insurance benefits or who dies (before 

14 becoming eligible for such benefits) in any calendar year 

15 in or after 2018, the primary insurance amount of such 

16 individual shall be the sum of— 

17 ‘‘(i) the amount determined under subpara18 graph (B); and 

19 ‘‘(ii) the product derived by multiplying— 

20 ‘‘(I) the excess of the amount determined 

21 under subparagraph (C) over the amount deter22 mined under subparagraph (B), by 

23 ‘‘(II) the adjustment factor for such indi24 vidual determined under subparagraph (D). 


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1 ‘‘(B) The amount determined under this subpara2 graph is the amount of such individual’s primary insur3 ance amount as determined under this section without re4 gard to this paragraph. 

5 ‘‘(C) The amount determined under this subpara6 graph is the amount of such individual’s primary insur7 ance amount as determined under this section as in effect 

8 with respect to individuals becoming eligible for old-age 

9 or disability insurance benefits under section 202(a) on 

10 the date of the enactment of the Social Security Solvency 

11 and Sustainability Act. 

12 ‘‘(D) The adjustment factor determined under this 

13 subparagraph for any individual is the ratio (not greater 

14 than 1) of— 

15 ‘‘(i) the total number of months during which 

16 such individual is under a disability (as defined in 

17 section 223(d)) during the period beginning on the 

18 date the individual attains age 22 and ending on the 

19 first day of such individual’s first month of eligibility 

20 for old-age insurance benefits under section 202(a) 

21 (or, if earlier, the month of such individual’s death), 

22 to 

23 ‘‘(ii) the number of months during the period 

24 beginning on the date the individual attains age 22 

25 and ending on the first day of such individual’s first 


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1 month of eligibility for old-age insurance benefits 

2 under section 202(a) (or, if earlier, the month of 

3 such individual’s death).’’. 

4 (c) CONFORMING AMENDMENTS.— 

5 (1) Subsections (e)(2)(B)(i)(I) and 

6 (f)(2)(B)(i)(I) of section 202 of the Social Security 

7 Act are each amended by inserting ‘‘or section 

8 215(a)(2)(B)(iii)’’ after ‘‘section 215(a)(1)(B)(i) and 

9 (ii)’’. 

10 (2) Section 203(a)(10) of such Act is amend11 ed— 

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

13 ‘‘215(a)(2)(B)(i)’’ and inserting 

14 ‘‘215(a)(3)(B)(i)’’; 

15 (B) in subparagraph (A)(ii), by striking 

16 ‘‘215(a)(2)(C)’’ and inserting ‘‘215(a)(3)(C)’’; 

17 and 

18 (C) in subparagraph (B)(ii), by striking 

19 ‘‘215(a)(2)’’ and inserting ‘‘215(a)(3)’’. 

20 (3) Section 209(k)(1) of such Act is amended 

21 by inserting ‘‘215(a)(2)(B), 215(a)(2)(C),’’ after 

22 ‘‘215(a)(1)(D),’’. 

23 (4) Section 215(a) of such Act is amended— 


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1 (A) in paragraph (4)(A), as redesignated 

2 by paragraph (2), by striking ‘‘paragraph (4)’’ 

3 and inserting ‘‘paragraph (5)’’; 

4 (B) in paragraph (4)(B), as redesignated 

5 by paragraph (2), by striking ‘‘paragraph 

6 (2)(A)’’ and inserting ‘‘paragraph (3)(A)’’; 

7 (C) in paragraph (5), as redesignated by 

8 paragraph (2), by striking ‘‘paragraph (3)(A)’’ 

9 and inserting ‘‘paragraph (4)(A)’’; 

10 (D) in paragraph (6)(A), as redesignated 

11 by paragraph (2), by striking ‘‘paragraph 

12 (4)(B)’’ and inserting ‘‘paragraph (5)(B)’’; and 

13 (E) in paragraph (8)(B)(ii)(I), as redesig14 nated by paragraph (2), by striking ‘‘paragraph 

15 (3)(B)’’ and inserting ‘‘paragraph (4)(B)’’. 

16 (5) Section 215(d)(3) of such Act is amended— 

17 (A) by striking ‘‘paragraph (4)(B)(ii)’’ and 

18 inserting ‘‘paragraph (5)(B)(ii)’’; and 

19 (B) by striking ‘‘subsection (a)(7)(C)’’ and 

20 inserting ‘‘subsection (a)(8)(C)’’. 

21 (6) Subsection 215(f) of such Act is amended— 

22 (A) in paragraph (2)(B), by striking ‘‘sub23 section (a)(4)(B)’’ and inserting ‘‘subsection 

24 (a)(5)(B)’’; 


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1 (B) in paragraph (7), by striking ‘‘sub2 section (a)(4)(B)’’ and inserting ‘‘subsection 

3 (a)(5)(B)’’, and by striking ‘‘subsection (a)(6)’’ 

4 and inserting ‘‘subsection (a)(7)’’; 

5 (C) in paragraph (9)(A)— 

6 (i) by striking ‘‘subsection (a)(7)(A)’’ 

7 and inserting ‘‘subsection (a)(8)(A)’’; and 

8 (ii) by striking ‘‘subsection (a)(7)(C)’’ 

9 and inserting ‘‘subsection (a)(8)(C)’’; and 

10 (D) in paragraph (9)(B), by striking ‘‘sub11 section (a)(7)’’ each place it appears and insert12 ing ‘‘subsection (a)(8)’’. 

Æ 


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