I 

114TH CONGRESS 

1ST SESSION H. R. 1811 

To amend title II of the Social Security Act and the Internal Revenue 

Code of 1986 to make improvements in the old-age, survivors, and 

disability insurance program, to provide for cash relief for years for 

which annual COLAs do not take effect under certain cash benefit 

programs, and to provide for Social Security benefit protection. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 15, 2015 

Mr. DEUTCH (for himself, Mr. HASTINGS, Mr. CICILLINE, Mr. VARGAS, Ms. 

PINGREE, Mr. CARTWRIGHT, Mr. LANGEVIN, Mr. MCDERMOTT, Ms. 

SCHAKOWSKY, Mr. CONYERS, and Mr. FARR) introduced the following 

bill; which was referred to the Committee on Ways and Means, and in 

addition to the Committee on Education and the Workforce, 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 and the Internal 

Revenue Code of 1986 to make improvements in the 

old-age, survivors, and disability insurance program, to 

provide for cash relief for years for which annual COLAs 

do not take effect under certain cash benefit programs, 

and to provide for Social Security benefit protection. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


SSpencer on DSK4SPTVN1PROD with BILLS
2 

•HR 1811 IH

1 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may cited as the ‘‘Pro3 tecting and Preserving Social Security Act’’. 

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

5 this Act is as follows: 

Sec. 1. Short title and table of contents. 

TITLE I—COST-OF-LIVING INCREASES 

Sec. 101. Consumer price index for elderly consumers. 

Sec. 102. Computation of cost-of-living increases. 

TITLE II—CONTRIBUTION AND BENEFIT FAIRNESS 

Sec. 201. Determination of wages and self-employment income above contribution and benefit base after 2013. 

Sec. 202. Inclusion of surplus earnings in Social Security benefit formula. 

6 TITLE I—COST-OF-LIVING 

7 INCREASES 

8 SEC. 101. CONSUMER PRICE INDEX FOR ELDERLY CON9 SUMERS. 

10 (a) IN GENERAL.—The Bureau of Labor Statistics 

11 of the Department of Labor shall prepare and publish an 

12 index for each calendar month to be known as the ‘‘Con13 sumer Price Index for Elderly Consumers’’ that indicates 

14 changes over time in expenditures for consumption which 

15 are typical for individuals in the United States who are 

16 62 years of age or older. 

17 (b) EFFECTIVE DATE.—Subsection (a) shall apply 

18 with respect to calendar months ending on or after July 

19 31 of the calendar year following the calendar year in 

20 which this Act is enacted. 


SSpencer on DSK4SPTVN1PROD with BILLS
3 

•HR 1811 IH

1 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated such sums as are nec3 essary to carry out the provisions of this section. 

4 SEC. 102. COMPUTATION OF COST-OF-LIVING INCREASES. 

5 (a) IN GENERAL.—Section 215(i) of the Social Secu6 rity Act (42 U.S.C. 415(i)) is amended— 

7 (1) in paragraph (1)(G), by inserting before the 

8 period the following: ‘‘, and, solely with respect to 

9 any monthly insurance benefit payable under this 

10 title to an individual who has attained age 62, effec11 tive for adjustments under this subsection to the pri12 mary insurance amount on which such benefit is 

13 based (or to any such benefit under section 227 or 

14 228) occurring after such individual attains such 

15 age, the applicable Consumer Price Index shall be 

16 deemed to be the Consumer Price Index for Elderly 

17 Consumers and such primary insurance amount 

18 shall be deemed adjusted under this subsection using 

19 such Index’’; and 

20 (2) in paragraph (4), by striking ‘‘and by sec21 tion 9001’’ and inserting ‘‘, by section 9001’’, and 

22 by inserting after ‘‘1986,’’ the following: ‘‘and by 

23 section 102 of the Protecting and Preserving Social 

24 Security Act,’’. 


SSpencer on DSK4SPTVN1PROD with BILLS
4 

•HR 1811 IH

1 (b) CONFORMING AMENDMENTS IN APPLICABLE

2 FORMER LAW.—Section 215(i)(1)(C) of such Act, as in 

3 effect in December 1978 and applied in certain cases 

4 under the provisions of such Act in effect after December 

5 1978, is amended by inserting before the period the fol6 lowing: ‘‘, and, solely with respect to any monthly insur7 ance benefit payable under this title to an individual who 

8 has attained age 62, effective for adjustments under this 

9 subsection to the primary insurance amount on which such 

10 benefit is based (or to any such benefit under section 227 

11 or 228) occurring after such individual attains such age, 

12 the applicable Consumer Price Index shall be deemed to 

13 be the Consumer Price Index for Elderly Consumers and 

14 such primary insurance amount shall be deemed adjusted 

15 under this subsection using such Index’’. 

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

17 subsection (a) shall apply to determinations made with re18 spect to cost-of-living computation quarters (as defined in 

19 section 215(i)(1)(B) of the Social Security Act (42 U.S.C. 

20 415(i)(1)(B))) ending on or after September 30 of the sec21 ond calendar year following the calendar year in which this 

22 Act is enacted. 


SSpencer on DSK4SPTVN1PROD with BILLS
5 

•HR 1811 IH

1 TITLE II—CONTRIBUTION AND 

2 BENEFIT FAIRNESS 

3 SEC. 201. DETERMINATION OF WAGES AND SELF-EMPLOY4 MENT INCOME ABOVE CONTRIBUTION AND 

5 BENEFIT BASE AFTER 2015. 

6 (a) DETERMINATION OF WAGES ABOVE CONTRIBU7 TION AND BENEFIT BASE AFTER 2015.— 

8 (1) AMENDMENTS TO THE INTERNAL REVENUE

9 CODE OF 1986.—Section 3121 of the Internal Rev10 enue Code of 1986 is amended— 

11 (A) in subsection (a)(1), by inserting ‘‘the 

12 applicable percentage (determined under sub13 section (c)(1)) of’’ before ‘‘that part of the re14 muneration’’; and 

15 (B) in subsection (c), by striking ‘‘(c) IN16 CLUDED AND EXCLUDED SERVICE.—For pur17 poses of this chapter, if’’ and inserting the fol18 lowing: 

19 ‘‘(c) SPECIAL RULES FOR WAGES AND EMPLOY20 MENT.— 

21 ‘‘(1) APPLICABLE PERCENTAGE OF REMUNERA22 TION IN DETERMINING WAGES.—For purposes of 

23 paragraph (1) of subsection (a), the applicable per24 centage for a calendar year, in connection with any 

25 calendar year referred to in such subparagraph, 


SSpencer on DSK4SPTVN1PROD with BILLS
6 

•HR 1811 IH

1 shall be the percentage determined in accordance 

2 with the following table: 

The applicable 

‘‘In the case of: percentage is: 

Calendar year 2016 ..................................................................... 86%

Calendar year 2017 ..................................................................... 71%

Calendar year 2018 ..................................................................... 57%

Calendar year 2019 ..................................................................... 43%

Calendar year 2020 ..................................................................... 29%

Calendar year 2021 ..................................................................... 14%

Calendar years after 2021 ........................................................... 0%. 

3 ‘‘(2) INCLUDED AND EXCLUDED SERVICE.—For 

4 purposes of this chapter, if’’. 

5 (2) AMENDMENTS TO THE SOCIAL SECURITY

6 ACT.—Section 209 of the Social Security Act (42 

7 U.S.C. 409) is amended— 

8 (A) in subsection (a)(1)(I)— 

9 (i) by inserting ‘‘and before 2016’’ 

10 after ‘‘1974’’; and 

11 (ii) by inserting ‘‘and’’ after the semi12 colon; 

13 (B) in subsection (a)(1), by adding at the 

14 end the following new subparagraph: 

15 ‘‘(J) The applicable percentage (deter16 mined under subsection (l)) of that part of re17 muneration which, after remuneration (other 

18 than remuneration referred to in the succeeding 

19 subsections of this section) equal to the con20 tribution and benefit base (determined under 

21 section 230) with respect to employment has 


SSpencer on DSK4SPTVN1PROD with BILLS
7 

•HR 1811 IH

1 been paid to an individual during any calendar 

2 year after 2015 with respect to which such con3 tribution and benefit base is effective, is paid to 

4 such individual during such calendar year;’’; 

5 and 

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

7 subsection: 

8 ‘‘(l) For purposes of subparagraph (J) of subsection 

9 (a)(1), the applicable percentage for a calendar year, in 

10 connection with any calendar year referred to in such sub11 paragraph, shall be the percentage determined in accord12 ance with the following table: 

The applicable 

‘‘In the case of: percentage is: 

Calendar year 2016 ..................................................................... 86%

Calendar year 2017 ..................................................................... 71%

Calendar year 2018 ..................................................................... 57%

Calendar year 2019 ..................................................................... 43%

Calendar year 2020 ..................................................................... 29%

Calendar year 2021 ..................................................................... 14%

Calendar years after 2021 ........................................................... 0%.’’. 

13 (3) EFFECTIVE DATE.—The amendments made 

14 by this subsection shall apply with respect to remu15 neration paid in calendar years after 2015. 

16 (b) DETERMINATION OF SELF-EMPLOYMENT IN17 COME ABOVE CONTRIBUTION AND BENEFIT BASE AFTER

18 2015.— 

19 (1) AMENDMENTS TO THE INTERNAL REVENUE

20 CODE OF 1986.—Section 1402 of the Internal Rev21 enue Code of 1986 is amended— 


SSpencer on DSK4SPTVN1PROD with BILLS
8 

•HR 1811 IH

1 (A) in subsection (b)(1), by inserting ‘‘an 

2 amount equal to the applicable percentage (as 

3 determined under subsection (d)(2)) of’’ before 

4 ‘‘that part of the net earnings from self-employ5 ment’’; and 

6 (B) in subsection (d)— 

7 (i) by striking ‘‘(d) EMPLOYEE AND

8 WAGES.—The term’’ and inserting the fol9 lowing: 

10 ‘‘(d) RULES AND DEFINITIONS.— 

11 ‘‘(1) EMPLOYEE AND WAGES.—The term’’; and 

12 (ii) by adding at the end the fol13 lowing: 

14 ‘‘(2) APPLICABLE PERCENTAGE OF NET EARN15 INGS FROM SELF-EMPLOYMENT IN DETERMINING

16 SELF-EMPLOYMENT INCOME.—For purposes of para17 graph (1) of subsection (b), the applicable percent18 age for a taxable year beginning in any calendar 

19 year referred to in such paragraph shall be the per20 centage determined in accordance with the following 

21 table: 

The applicable 

‘‘In the case of: percentage is: 

Calendar year 2016 ..................................................................... 86%

Calendar year 2017 ..................................................................... 71%

Calendar year 2018 ..................................................................... 57%

Calendar year 2019 ..................................................................... 43%

Calendar year 2020 ..................................................................... 29%

Calendar year 2021 ..................................................................... 14%

Calendar years after 2021 ........................................................... 0%.’’. 


SSpencer on DSK4SPTVN1PROD with BILLS
9 

•HR 1811 IH

1 (2) AMENDMENTS TO THE SOCIAL SECURITY

2 ACT.—Section 211 of the Social Security Act (42 

3 U.S.C. 411) is amended— 

4 (A) in subsection (b)(1)(I)— 

5 (i) by striking ‘‘or’’ after the semi6 colon; and 

7 (ii) by inserting ‘‘and before 2016’’ 

8 after ‘‘1974’’; 

9 (B) in subsection (b)— 

10 (i) by redesignating paragraph (2) as 

11 paragraph (3); and 

12 (ii) by inserting after paragraph (1) 

13 the following: 

14 ‘‘(2) For any taxable year beginning in any cal15 endar year after 2015, an amount equal to the appli16 cable percentage (as determined under subsection 

17 (l)) of that part of net earnings from self-employ18 ment which is in excess of (A) an amount equal to 

19 the contribution and benefit base (determined under 

20 section 230) that is effective for such calendar year, 

21 minus (B) the amount of the wages paid to such in22 dividual during such taxable year; or’’; and 

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

24 ‘‘(l) For purposes of paragraph (2) of subsection (b), 

25 the applicable percentage for a taxable year beginning in 


SSpencer on DSK4SPTVN1PROD with BILLS
10 

•HR 1811 IH

1 any calendar year referred to in such paragraph, shall be 

2 the percentage determined in accordance with the fol3 lowing table: 

The applicable 

‘‘In the case of: percentage is: 

Calendar year 2016 ..................................................................... 86%

Calendar year 2017 ..................................................................... 71%

Calendar year 2018 ..................................................................... 57%

Calendar year 2019 ..................................................................... 43%

Calendar year 2020 ..................................................................... 29%

Calendar year 2021 ..................................................................... 14%

Calendar years after 2021 ........................................................... 0%.’’. 

4 (3) EFFECTIVE DATE.—The amendments made 

5 by this subsection shall apply with respect to taxable 

6 years beginning during or after calendar year 2016. 

7 SEC. 202. INCLUSION OF SURPLUS EARNINGS IN SOCIAL SE8 CURITY BENEFIT FORMULA. 

9 (a) INCLUSION OF SURPLUS AVERAGE INDEXED

10 MONTHLY EARNINGS IN DETERMINATION OF PRIMARY

11 INSURANCE AMOUNTS.— 

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

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

14 amended— 

15 (A) in clauses (i), (ii), and (iii), by insert16 ing ‘‘basic’’ before ‘‘average indexed monthly 

17 earnings’’ each place it appears; 

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

19 end; and 

20 (C) by inserting after clause (iii) the fol21 lowing new clauses: 


SSpencer on DSK4SPTVN1PROD with BILLS
11 

•HR 1811 IH

1 ‘‘(iv) 3 percent of the individual’s surplus aver2 age indexed monthly earnings to the extent such 

3 surplus average indexed monthly earnings do not ex4 ceed the excess of the amount established for purposes of this clause by subparagraph (B) over 1 5 ⁄12

6 of the contribution and benefit base for the last of 

7 such individual’s computation base years, and 

8 ‘‘(v) 0.25 percent of the sum of the individual’s 

surplus average indexed monthly earnings plus 1 9 ⁄12

10 of the contribution and benefit base for the last of 

11 such individual’s computation base years, to the ex12 tent such sum exceeds the amount established for 

13 purposes of clause (iv) by subparagraph (B).’’. 

14 (2) BEND POINT FOR SURPLUS EARNINGS.— 

15 Section 215(a)(1)(B) of such Act (42 U.S.C. 

16 415(a)(1)(B)) is amended— 

17 (A) in clause (ii), by striking ‘‘the amounts 

18 so established’’ and inserting ‘‘the amounts es19 tablished for purposes of clauses (i) and (ii) of 

20 subparagraph (A)’’; 

21 (B) by redesignating clause (iii) as clause 

22 (v); 

23 (C) in clause (v) (as redesignated), by in24 serting ‘‘or (iv)’’ after ‘‘clause (ii)’’; and 


SSpencer on DSK4SPTVN1PROD with BILLS
12 

•HR 1811 IH

1 (D) by inserting after clause (ii) the fol2 lowing new clauses: 

3 ‘‘(iii) For individuals who initially become eligible for 

4 old-age or disability insurance benefits, or who die (before 

5 becoming eligible for such benefits), in the calendar year 

6 2016, the amount established for purposes of clause (iv) 

7 of subparagraph (A) shall be $11,358. 

8 ‘‘(iv) For individuals who initially become eligible for 

9 old-age or disability insurance benefits, or who die (before 

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

11 after 2016, the amount established for purposes of clause 

12 (iv) of subparagraph (A) shall equal the product of the 

13 amount established with respect to the calendar year 2016 

14 under clause (iii) of this subparagraph and the quotient 

15 obtained by dividing— 

16 ‘‘(I) the national average wage index (as de17 fined in section 209(k)(1)) for the second calendar 

18 year preceding the calendar year for which the de19 termination is made, by 

20 ‘‘(II) the national average wage index (as so de21 fined) for 2014.’’. 

22 (b) BASIC AIME AND SURPLUS AIME.— 

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

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


SSpencer on DSK4SPTVN1PROD with BILLS
13 

•HR 1811 IH

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 contribution and benefit base for the 

8 applicable year’’. 

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 


SSpencer on DSK4SPTVN1PROD with BILLS
14 

•HR 1811 IH

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)) exceeds the contribution and 

10 benefit base for such year.’’. 

11 (B) CONFORMING AMENDMENT.—The 

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

13 amended by striking ‘‘Average Indexed Monthly 

14 Earnings’’ and inserting ‘‘Basic Average In15 dexed Monthly Earnings; Surplus Average In16 dexed Monthly Earnings’’. 

17 (3) ADJUSTMENT OF SURPLUS EARNINGS FOR

18 PURPOSES OF DETERMINING SURPLUS AIME.—Sec19 tion 215(b)(3) of such Act (42 U.S.C. 415(b)(3)) is 

20 amended— 

21 (A) in subparagraph (A), by striking ‘‘sub22 paragraph (B)’’ and inserting ‘‘subparagraph 

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

24 basic average indexed monthly income’’ after 

25 ‘‘paragraph (2)’’; 


SSpencer on DSK4SPTVN1PROD with BILLS
15 

•HR 1811 IH

1 (B) by redesignating subparagraph (B) as 

2 subparagraph (C); and 

3 (C) by inserting after subparagraph (A) 

4 the following new subparagraph: 

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

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

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

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

9 be deemed to be equal to the product of— 

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

11 year (as determined without regard to this subpara12 graph), and 

13 ‘‘(ii) the quotient described in subparagraph 

14 (A)(ii).’’. 

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

16 this section shall apply with respect to individuals who ini17 tially become eligible (within the meaning of section 

18 215(a)(3)(B) of the Social Security Act) for old-age or dis19 ability insurance benefits under title II of the Social Secu20 rity Act, or who die (before becoming eligible for such ben21 efits), in any calendar year after 2015. 

Æ 


SSpencer on DSK4SPTVN1PROD with BILLS