I 

111TH CONGRESS 

2D SESSION H. R. 5834 

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 

JULY 22, 2010 

Mr. DEUTCH introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Education and Labor, Rules, Transportation and Infrastructure, and Veterans’ Affairs, 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, 


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1 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may cited as the ‘‘Pre3 serving Our Promise to Seniors 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—GUARANTEED SUPPLEMENTAL PAYMENT 

Sec. 201. Relief payments to recipients of social security, supplemental security 

income, railroad retirement benefits, and veterans disability 

compensation or pension benefits. 

TITLE III—CONTRIBUTION AND BENEFIT FAIRNESS 

Sec. 301. Determination of wages and self-employment income above contribution and benefit base after 2010. 

Sec. 302. Additional bend points in social security benefit formula. 

TITLE IV—SOCIAL SECURITY BENEFIT PROTECTION 

Sec. 401. Point of order against privatization of Social Security or reductions 

in Social Security benefits. 

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. 


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

2 with respect to calendar months ending on or after July 

3 31 of the calendar year following the calendar year in 

4 which this Act is enacted. 

5 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated such sums as are nec7 essary to carry out the provisions of this section. 

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

9 (a) IN GENERAL.—Section 215(i) of the Social Secu10 rity Act (42 U.S.C. 415(i)) is amended— 

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

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

13 any monthly insurance benefit payable under this 

14 title to an individual who has attained age 62, effec15 tive for adjustments under this subsection to the pri16 mary insurance amount on which such benefit is 

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

18 228) occurring after such individual attains such 

19 age, the applicable Consumer Price Index shall be 

20 deemed to be the Consumer Price Index for Elderly 

21 Consumers and such primary insurance amount 

22 shall be deemed adjusted under this subsection using 

23 such Index’’; and 

24 (2) in paragraph (4), by striking ‘‘and by sec25 tion 9001’’ and inserting ‘‘, by section 9001’’, and 


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

2 section 102 of the Preserving Our Promise to Sen3 iors Act Act,’’. 

4 (b) CONFORMING AMENDMENTS IN APPLICABLE

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

6 effect in December 1978 and applied in certain cases 

7 under the provisions of such Act in effect after December 

8 1978, is amended by inserting before the period the fol9 lowing: ‘‘, and, solely with respect to any monthly insur10 ance benefit payable under this title to an individual who 

11 has attained age 62, effective for adjustments under this 

12 subsection to the primary insurance amount on which such 

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

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

15 the applicable Consumer Price Index shall be deemed to 

16 be the Consumer Price Index for Elderly Consumers and 

17 such primary insurance amount shall be deemed adjusted 

18 under this subsection using such Index’’. 

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

20 subsection (a) shall apply to determinations made with re21 spect to cost-of-living computation quarters (as defined in 

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

23 415(i)(1)(B))) ending on or after September 30 of the sec24 ond calendar year following the calendar year in which this 

25 Act is enacted. 


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1 TITLE II—GUARANTEED 

2 SUPPLEMENTAL PAYMENT 

3 SEC. 201. RELIEF PAYMENTS TO RECIPIENTS OF SOCIAL SE4 CURITY, SUPPLEMENTAL SECURITY INCOME, 

5 RAILROAD RETIREMENT BENEFITS, AND VET6 ERANS DISABILITY COMPENSATION OR PEN7 SION BENEFITS. 

8 (a) AUTHORITY TO MAKE PAYMENTS.— 

9 (1) ELIGIBILITY.— 

10 (A) IN GENERAL.—The Secretary of the 

11 Treasury shall disburse a cash payment equal 

12 to $250 (or such greater amount as may take 

13 effect under paragraph (2)), for each non14 COLA year of a program providing benefit pay15 ments described in clause (i), (ii), or (iii) of 

16 subparagraph (C) or in subparagraph (D), to 

17 each individual who, for any month during such 

18 year, is entitled to such a benefit payment 

19 under such program. 

20 (B) NON-COLA YEAR.—For purposes of 

21 this section, the term ‘‘non-COLA year’’ means, 

22 in connection with a program referred to in 

23 subparagraph (A), a 12-month period ending 

24 with or during 2010 for which— 


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1 (i) a cost-of-living adjustment is gen2 erally provided under such program in re3 lation to an index; and 

4 (ii) such an adjustment does not take 

5 effect by reason of the performance of such 

6 index. 

7 (C) BENEFIT PAYMENT DESCRIBED.—For 

8 purposes of subparagraph (A): 

9 (i) TITLE II BENEFIT.—A benefit pay10 ment described in this clause is a monthly 

11 insurance benefit payable (without regard 

12 to sections 202(j)(1) and 223(b) of the So13 cial Security Act (42 U.S.C. 402(j)(1), 

14 423(b)) under— 

15 (I) section 202(a) of such Act 

16 (42 U.S.C. 402(a)); 

17 (II) section 202(b) of such Act 

18 (42 U.S.C. 402(b)); 

19 (III) section 202(c) of such Act 

20 (42 U.S.C. 402(c)); 

21 (IV) section 202(d)(1)(B)(ii) of 

22 such Act (42 U.S.C. 

23 402(d)(1)(B)(ii)); 

24 (V) section 202(e) of such Act 

25 (42 U.S.C. 402(e)); 


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1 (VI) section 202(f) of such Act 

2 (42 U.S.C. 402(f)); 

3 (VII) section 202(g) of such Act 

4 (42 U.S.C. 402(g)); 

5 (VIII) section 202(h) of such Act 

6 (42 U.S.C. 402(h)); 

7 (IX) section 223(a) of such Act 

8 (42 U.S.C. 423(a)); 

9 (X) section 227 of such Act (42 

10 U.S.C. 427); or 

11 (XI) section 228 of such Act (42 

12 U.S.C. 428). 

13 (ii) RAILROAD RETIREMENT BEN14 EFIT.—A benefit payment described in this 

15 clause is a monthly annuity or pension 

16 payment payable (without regard to section 

17 5(a)(ii) of the Railroad Retirement Act of 

18 1974 (45 U.S.C. 231d(a)(ii))) under— 

19 (I) section 2(a)(1) of such Act 

20 (45 U.S.C. 231a(a)(1)); 

21 (II) section 2(c) of such Act (45 

22 U.S.C. 231a(c)); 

23 (III) section 2(d)(1)(i) of such 

24 Act (45 U.S.C. 231a(d)(1)(i)); 


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1 (IV) section 2(d)(1)(ii) of such 

2 Act (45 U.S.C. 231a(d)(1)(ii)); 

3 (V) section 2(d)(1)(iii)(C) of such 

4 Act to an adult disabled child (45 

5 U.S.C. 231a(d)(1)(iii)(C)); 

6 (VI) section 2(d)(1)(iv) of such 

7 Act (45 U.S.C. 231a(d)(1)(iv)); 

8 (VII) section 2(d)(1)(v) of such 

9 Act (45 U.S.C. 231a(d)(1)(v)); or 

10 (VIII) section 7(b)(2) of such Act 

11 (45 U.S.C. 231f(b)(2)) with respect to 

12 any of the benefit payments described 

13 in clause (i) of this subparagraph. 

14 (iii) VETERANS BENEFIT.—A benefit 

15 payment described in this clause is a com16 pensation or pension payment payable 

17 under— 

18 (I) section 1110, 1117, 1121, 

19 1131, 1141, or 1151 of title 38, 

20 United States Code; 

21 (II) section 1310, 1312, 1313, 

22 1315, 1316, or 1318 of title 38, 

23 United States Code; 


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1 (III) section 1513, 1521, 1533, 

2 1536, 1537, 1541, 1542, or 1562 of 

3 title 38, United States Code; or 

4 (IV) section 1805, 1815, or 1821 

5 of title 38, United States Code, 

6 to a veteran, surviving spouse, child, or 

7 parent as described in paragraph (2), (3), 

8 (4)(A)(ii), or (5) of section 101, title 38, 

9 United States Code, who received that ben10 efit during any month within the 3 month 

11 period ending with the month which ends 

12 prior to the month that includes the date 

13 of the enactment of this Act. 

14 (D) SSI CASH BENEFIT DESCRIBED.—A 

15 SSI cash benefit described in this subparagraph 

16 is a cash benefit payable under section 1611 

17 (other than under subsection (e)(1)(B) of such 

18 section) or 1619(a) of the Social Security Act 

19 (42 U.S.C. 1382, 1382h). 

20 (2) COST-OF-LIVING ADJUSTMENT TO PAY21 MENT.— 

22 (A) IN GENERAL.—Effective for each 12- 

23 month period referred to in paragraph (1)(B)(i) 

24 in connection with a program referred to in 

25 paragraph (1)(A) (irrespective of whether such 


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1 period is a non-COLA year) ending with or dur2 ing a calendar year after 2010, the dollar 

3 amount determined under this paragraph shall 

4 be substituted for the dollar amount specified in 

5 paragraph (1)(A). The dollar amount shall be 

6 determined by multiplying the dollar amount 

7 specified in paragraph (1)(A) by the quotient 

8 obtained by dividing— 

9 (i) the Consumer Price Index for El10 derly Consumers (published by the Bureau 

11 of Labor Statistics of the Department of 

12 Labor) for the calendar quarter ending 

13 with September preceding the 12-month 

14 period for which the determination is 

15 made, by 

16 (ii) such Index for the calendar quar17 ter ending with September 2009. 

18 (B) DETERMINATION OF QUARTERLY

19 INDEX.—For purposes of subparagraph (A), the 

20 Consumer Price Index for Elderly Consumers 

21 for a calendar quarter shall be the arithmetical 

22 mean of such index for the 3 months in such 

23 quarter. 

24 (3) REQUIREMENT.—A payment shall be made 

25 under paragraph (1) only to individuals who reside 


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1 in 1 of the 50 States, the District of Columbia, 

2 Puerto Rico, Guam, the United States Virgin Is3 lands, American Samoa, or the Northern Mariana 

4 Islands. For purposes of the preceding sentence, the 

5 determination of the individual’s residence shall be 

6 based on the current address of record under a pro7 gram specified in paragraph (1). 

8 (4) NO DOUBLE PAYMENTS.—An individual 

9 shall be paid only 1 payment under this section, re10 gardless of whether the individual is entitled to, or 

11 eligible for, more than 1 benefit or cash payment de12 scribed in paragraph (1). 

13 (5) LIMITATION.—A payment under this section 

14 shall not be made— 

15 (A) in the case of an individual entitled to 

16 a benefit specified in paragraph (1)(C)(i) or 

17 paragraph (1)(C)(ii)(VIII) if, for the most re18 cent month of such individual’s entitlement in 

19 the 3-month period described in paragraph (1), 

20 such individual’s benefit under such paragraph 

21 was not payable by reason of subsection (x) or 

22 (y) of section 202 of the Social Security Act (42 

23 U.S.C. 402) or section 1129A of such Act (42 

24 U.S.C. 1320a–8a); 


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1 (B) in the case of an individual entitled to 

2 a benefit specified in paragraph (1)(C)(iii) if, 

3 for the most recent month of such individual’s 

4 entitlement in the 3 month period described in 

5 paragraph (1), such individual’s benefit under 

6 such paragraph was not payable, or was re7 duced, by reason of section 1505, 5313, or 

8 5313B of title 38, United States Code; 

9 (C) in the case of an individual entitled to 

10 a benefit specified in paragraph (1)(D) if, for 

11 such most recent month, such individual’s ben12 efit under such paragraph was not payable by 

13 reason of subsection (e)(1)(A) or (e)(4) of sec14 tion 1611 (42 U.S.C. 1382) or section 1129A 

15 of such Act (42 U.S.C. 1320a–8a); or 

16 (D) in the case of any individual whose 

17 date of death occurs before the date on which 

18 the individual is certified under subsection (b) 

19 to receive a payment under this section. 

20 (6) TIMING AND MANNER OF PAYMENTS.—The 

21 Secretary of the Treasury shall commence disbursing 

22 payments under this section at the earliest prac23 ticable date but in no event later than 120 days 

24 after the date of the enactment of this Act. The Sec25 retary of the Treasury may disburse any payment 


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1 electronically to an individual in such manner as if 

2 such payment was a benefit payment or cash benefit 

3 to such individual under the applicable program de4 scribed in subparagraph (C) or (D) of paragraph 

5 (1). 

6 (b) IDENTIFICATION OF RECIPIENTS.—The Commis7 sioner of Social Security, the Railroad Retirement Board, 

8 and the Secretary of Veterans Affairs shall certify the in9 dividuals entitled to receive payments under this section 

10 and provide the Secretary of the Treasury with the infor11 mation needed to disburse such payments. A certification 

12 of an individual shall be unaffected by any subsequent de13 termination or redetermination of the individual’s entitle14 ment to, or eligibility for, a benefit specified in subpara15 graph (C) or (D) of subsection (a)(1). 

16 (c) TREATMENT OF PAYMENTS.— 

17 (1) PAYMENT TO BE DISREGARDED FOR PUR18 POSES OF ALL FEDERAL AND FEDERALLY ASSISTED

19 PROGRAMS.—A payment under subsection (a) shall 

20 not be regarded as income and shall not be regarded 

21 as a resource for the month of receipt and the fol22 lowing 9 months, for purposes of determining the 

23 eligibility of the recipient (or the recipient’s spouse 

24 or family) for benefits or assistance, or the amount 

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1 eral program or under any State or local program fi2 nanced in whole or in part with Federal funds. 

3 (2) PAYMENT NOT CONSIDERED INCOME FOR

4 PURPOSES OF TAXATION.—A payment under sub5 section (a) shall not be considered as gross income 

6 for purposes of the Internal Revenue Code of 1986. 

7 (3) PAYMENTS PROTECTED FROM ASSIGN8 MENT.—The provisions of sections 207 and 

9 1631(d)(1) of the Social Security Act (42 U.S.C. 

10 407, 1383(d)(1)), section 14(a) of the Railroad Re11 tirement Act of 1974 (45 U.S.C. 231m(a)), and sec12 tion 5301 of title 38, United States Code, shall 

13 apply to any payment made under subsection (a) as 

14 if such payment was a benefit payment or cash ben15 efit to such individual under the applicable program 

16 described in subparagraph (C) or (D) of subsection 

17 (a)(1). 

18 (4) PAYMENTS SUBJECT TO OFFSET.—Notwith19 standing paragraph (3), for purposes of section 

20 3716 of title 31, United States Code, any payment 

21 made under this section shall not be considered a 

22 benefit payment or cash benefit made under the ap23 plicable program described in subparagraph (C) or 

24 (D) of subsection (a)(1) and all amounts paid shall 

25 be subject to offset to collect delinquent debts. 


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1 (d) PAYMENT TO REPRESENTATIVE PAYEES AND FI2 DUCIARIES.— 

3 (1) IN GENERAL.—In any case in which an in4 dividual who is entitled to a payment under sub5 section (a) and whose benefit payment or cash ben6 efit described in paragraph (1) of that subsection is 

7 paid to a representative payee or fiduciary, the pay8 ment under subsection (a) shall be made to the indi9 vidual’s representative payee or fiduciary and the en10 tire payment shall be used only for the benefit of the 

11 individual who is entitled to the payment. 

12 (2) APPLICABILITY.— 

13 (A) PAYMENT ON THE BASIS OF A TITLE

14 II OR SSI BENEFIT.—Section 1129(a)(3) of the 

15 Social Security Act (42 U.S.C. 1320a–8(a)(3)) 

16 shall apply to any payment made on the basis 

17 of an entitlement to a benefit specified in para18 graph (1)(C)(i) or (1)(D) of subsection (a) in 

19 the same manner as such section applies to a 

20 payment under title II or XVI of such Act. 

21 (B) PAYMENT ON THE BASIS OF A RAIL22 ROAD RETIREMENT BENEFIT.—Section 13 of 

23 the Railroad Retirement Act (45 U.S.C. 231l) 

24 shall apply to any payment made on the basis 

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1 graph (1)(C)(ii) of subsection (a) in the same 

2 manner as such section applies to a payment 

3 under such Act. 

4 (C) PAYMENT ON THE BASIS OF A VET5 ERANS BENEFIT.—Sections 5502, 6106, and 

6 6108 of title 38, United States Code, shall 

7 apply to any payment made on the basis of an 

8 entitlement to a benefit specified in paragraph 

9 (1)(C)(iii) of subsection (a) in the same manner 

10 as those sections apply to a payment under that 

11 title. 

12 (e) APPROPRIATION.—Out of any sums in the Treas13 ury of the United States not otherwise appropriated, the 

14 following sums are appropriated for each fiscal year begin15 ning on or after October 1, 2010, to remain available until 

16 expended, to carry out this section: 

17 (1) For the Secretary of the Treasury, such 

18 sums as may be necessary for administrative costs 

19 incurred in carrying out this section. 

20 (2) For the Commissioner of Social Security— 

21 (A) such sums as may be necessary for 

22 payments to individuals certified by the Com23 missioner of Social Security as entitled to re24 ceive a payment under this section; and 


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1 (B) such sums as may be certified by the 

2 Commissioner to the Secretary of the Treasury 

3 for the Social Security Administration’s Limita4 tion on Administrative Expenses as necessary 

5 for administrative costs incurred in carrying out 

6 this section. 

7 (3) For the Railroad Retirement Board— 

8 (A) such sums as may be necessary for 

9 payments to individuals certified by the Rail10 road Retirement Board as entitled to receive a 

11 payment under this section; and 

12 (B) such sums as may be certified by the 

13 Board to the Secretary of the Treasury for the 

14 Railroad Retirement Board’s Limitation on Ad15 ministration as necessary for administrative 

16 costs incurred in carrying out this section. 

17 (4)(A) For the Secretary of Veterans Affairs— 

18 (i) such sums as may be necessary for 

19 the Compensation and Pensions account, 

20 for payments to individuals certified by the 

21 Secretary of Veterans Affairs as entitled to 

22 receive a payment under this section; and 

23 (ii) such sums as may be certified by 

24 the Secretary of Veterans Affairs to the 

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1 tion Systems Technology account and for 

2 the General Operating Expenses account 

3 as necessary for administrative costs in4 curred in carrying out this section. 

5 (B) The Department of Veterans Affairs Com6 pensation and Pensions account shall hereinafter be 

7 available for payments authorized under subsection 

8 (a)(1)(A) to individuals entitled to a benefit payment 

9 described in subsection (a)(1)(C)(iii). 

10 TITLE III—CONTRIBUTION AND 

11 BENEFIT FAIRNESS 

12 SEC. 301. DETERMINATION OF WAGES AND SELF-EMPLOY13 MENT INCOME ABOVE CONTRIBUTION AND 

14 BENEFIT BASE AFTER 2010. 

15 (a) DETERMINATION OF WAGES ABOVE CONTRIBU16 TION AND BENEFIT BASE AFTER 2010.— 

17 (1) AMENDMENTS TO THE INTERNAL REVENUE

18 CODE OF 1986.—Section 3121 of the Internal Rev19 enue Code of 1986 is amended— 

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

21 applicable percentage (determined under sub22 section (c)(1)) of’’ before ‘‘that part of the re23 muneration’’; and 

24 (B) in subsection (c), by striking ‘‘(c) IN25 CLUDED AND EXCLUDED SERVICE.—For purVerDate Mar 15 2010 01:06 Jul 26, 2010 Jkt 089200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H5834.IH H5834

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1 poses of this chapter, if’’ and inserting the fol2 lowing: 

3 ‘‘(c) SPECIAL RULES FOR WAGES AND EMPLOY4 MENT.— 

5 ‘‘(1) APPLICABLE PERCENTAGE OF REMUNERA6 TION IN DETERMINING WAGES.—For purposes of 

7 paragraph (1) of subsection (a), the applicable per8 centage for a calendar year, in connection with any 

9 calendar year referred to in such subparagraph, 

10 shall be the percentage determined in accordance 

11 with the following table: 

‘‘In the case of: 

The applicable 

percentage 

is: 

Calendar year 2011 ............................................................................ 86% 

Calendar year 2012 ............................................................................ 71% 

Calendar year 2013 ............................................................................ 57% 

Calendar year 2014 ............................................................................ 43% 

Calendar year 2015 ............................................................................ 29% 

Calendar year 2016 ............................................................................ 14% 

Calendar years after 2016 .................................................................. 0% 

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

13 purposes of this chapter, if’’. 

14 (2) AMENDMENTS TO THE SOCIAL SECURITY

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

16 U.S.C. 409) is amended— 

17 (A) in subsection (a)(1)(I)— 

18 (i) by inserting ‘‘and before 2011’’ 

19 after ‘‘1974’’; and 


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1 (ii) by inserting ‘‘and’’ after the semi2 colon; 

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

4 end the following: 

5 ‘‘(J) The applicable percentage (deter6 mined under subsection (l)) of that part of re7 muneration which, after remuneration (other 

8 than remuneration referred to in the succeeding 

9 subsections of this section) equal to the con10 tribution and benefit base (determined under 

11 section 230) with respect to employment has 

12 been paid to an individual during any calendar 

13 year after 2010 with respect to which such con14 tribution and benefit base is effective, is paid to 

15 such individual during such calendar year;’’; 

16 and 

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

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

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

20 connection with any calendar year referred to in such sub21 paragraph, shall be the percentage determined in accord22 ance with the following table: 

‘‘In the case of: 

The applicable 

percentage 

is: 

Calendar year 2011 ............................................................................ 86%


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‘‘In the case of: 

The applicable 

percentage 

is: 

Calendar year 2012 ............................................................................ 71%

Calendar year 2013 ............................................................................ 57%

Calendar year 2014 ............................................................................ 43%

Calendar year 2015 ............................................................................ 29%

Calendar year 2016 ............................................................................ 14%

Calendar years after 2016 .................................................................. 0%’’. 

1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply with respect to remu3 neration paid in calendar years after 2010. 

4 (b) DETERMINATION OF SELF-EMPLOYMENT IN5 COME ABOVE CONTRIBUTION AND BENEFIT BASE AFTER

6 2010.— 

7 (1) AMENDMENTS TO THE INTERNAL REVENUE

8 CODE OF 1986.—Section 1402 of the Internal Rev9 enue Code of 1986 is amended— 

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

11 amount equal to the applicable percentage (as 

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

13 ‘‘that part of the net earnings from self-employ14 ment’’; and 

15 (B) in subsection (d)— 

16 (i) by striking ‘‘(d) EMPLOYEE AND

17 WAGES.—The term’’ and inserting the fol18 lowing: 

19 ‘‘(d) RULES AND DEFINITIONS.— 


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

2 (ii) by adding at the end the fol3 lowing: 

4 ‘‘(2) APPLICABLE PERCENTAGE OF NET EARN5 INGS FROM SELF-EMPLOYMENT IN DETERMINING

6 SELF-EMPLOYMENT INCOME.—For purposes of para7 graph (1) of subsection (b), the applicable percent8 age for a taxable year beginning in any calendar 

9 year referred to in such paragraph shall be the per10 centage determined in accordance with the following 

11 table: 

‘‘In the case of: 

The applicable 

percentage 

is: 

Calendar year 2011 ............................................................................ 86%

Calendar year 2012 ............................................................................ 71%

Calendar year 2013 ............................................................................ 57%

Calendar year 2014 ............................................................................ 43%

Calendar year 2015 ............................................................................ 29%

Calendar year 2016 ............................................................................ 14%

Calendar years after 2016 .................................................................. 0%’’. 

12 (2) AMENDMENTS TO THE SOCIAL SECURITY

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

14 U.S.C. 411) is amended— 

15 (A) in subsection (b)(1)(I)— 

16 (i) by striking ‘‘or’’ after the semi17 colon; and 

18 (ii) by inserting ‘‘and before 2011’’ 

19 after ‘‘1974’’; 


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1 (B) in subsection (b)— 

2 (i) by redesignating paragraph (2) as 

3 paragraph (3); and 

4 (ii) by inserting after paragraph (1) 

5 the following: 

6 ‘‘(2) For any taxable year beginning in any cal7 endar year after 2010, an amount equal to the appli8 cable percentage (as determined under subsection 

9 (l)) of that part of net earnings from self-employ10 ment which is in excess of (A) an amount equal to 

11 the contribution and benefit base (determined under 

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

13 minus (B) the amount of the wages paid to such in14 dividual during such taxable year; or’’; and 

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

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

17 the applicable percentage for a taxable year beginning in 

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

19 the percentage determined in accordance with the fol20 lowing table: 

‘‘In the case of: 

The applicable 

percentage 

is: 

Calendar year 2011 ............................................................................ 86%

Calendar year 2012 ............................................................................ 71%

Calendar year 2013 ............................................................................ 57%

Calendar year 2014 ............................................................................ 43%

Calendar year 2015 ............................................................................ 29%


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‘‘In the case of: 

The applicable 

percentage 

is: 

Calendar year 2016 ............................................................................ 14%

Calendar years after 2016 .................................................................. 0%’’. 

1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply with respect to taxable 

3 years beginning during or after calendar year 2011. 

4 SEC. 302. ADDITIONAL BEND POINTS IN SOCIAL SECURITY 

5 BENEFIT FORMULA. 

6 (a) IN GENERAL.—Section 215(a)(1) of the Social 

7 Security Act (42 U.S.C. 415(a)(1)) is amended— 

8 (1) in subparagraph (A)— 

9 (A) in clause (ii), by striking ‘‘and’’; 

10 (B) in clause (iii), by striking the comma 

11 at the end and inserting the following: ‘‘but do 

12 not exceed the amount established for purposes 

13 of this clause by subparagraph (B),’’; and 

14 (C) by inserting after clause (iii) the fol15 lowing: 

16 ‘‘(iv) 3 percent of the individual’s av17 erage indexed monthly earnings to the ex18 tent that such earnings exceed the amount 

19 established for purposes of clause (iii) but 

20 do not exceed the amount established for 


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1 purposes of this clause by subparagraph 

2 (B), and 

3 ‘‘(v) 0.25 percent of the individual’s 

4 average indexed monthly earnings to the 

5 extent that such earnings exceed the 

6 amount established for purposes of clause 

7 (iv),’’. 

8 (2) in subparagraph (B)— 

9 (A) by redesignating clause (iii) as clause 

10 (v); 

11 (B) by inserting after clause (ii) the fol12 lowing: 

13 ‘‘(iii) For individuals who initially be14 come eligible for old-age or disability insur15 ance benefits, or who die (before becoming 

16 eligible for such benefits), in the calendar 

17 year 2011, the amount established for pur18 poses of clause (iii) and (iv) of subpara19 graph (A) shall be $8,900 and $20,833, re20 spectively. 

21 ‘‘(iv) For individuals who initially be22 come eligible for old-age or disability insur23 ance benefits, or who die (before becoming 

24 eligible for such benefits), in any calendar 

25 year after 2011, each of the amounts so 


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1 established shall equal the product of the 

2 corresponding amount established with re3 spect to the calendar year 2011 under 

4 clause (iii) of this subparagraph and the 

5 quotient obtained by dividing— 

6 ‘‘(I) the national average wage 

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

8 for the second calendar year preceding 

9 the calendar year for which the deter10 mination is made, by 

11 ‘‘(II) the national average wage 

12 index (as so defined) for 2009.’’; and 

13 (C) in clause (v), as so redesignated by 

14 subparagraph (A) of this paragraph, by insert15 ing ‘‘and clause (iv)’’ after ‘‘clause (ii)’’. 

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

17 this section shall apply with respect to individuals who ini18 tially become eligible (within the meaning of section 

19 215(a)(3)(B)) for old-age or disability insurance benefits 

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

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

22 after 2010. 


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1 TITLE IV—SOCIAL SECURITY 

2 BENEFIT PROTECTION 

3 SEC. 401. POINT OF ORDER AGAINST PRIVATIZATION OF 

4 SOCIAL SECURITY OR REDUCTIONS IN SO5 CIAL SECURITY BENEFITS. 

6 (a) IN GENERAL.—It shall not be in order in the 

7 House of Representatives or the Senate to consider any 

8 bill, joint resolution, amendment, motion, or conference re9 port if the enactment of that bill or resolution, as reported, 

10 the adoption and enactment of that amendment, or the 

11 enactment of that bill or resolution in the form rec12 ommended in that conference report would have the effect 

13 of— 

14 (1) establishing or maintaining a program— 

15 (A) under which benefits under title II of 

16 the Social Security Act are reduced, in whole or 

17 in part, in connection with contributions made 

18 to individual accounts of beneficiaries under 

19 such title established or maintained in the pri20 vate sector or in connection with returns on in21 vestment of amounts credited to such accounts, 

22 or 

23 (B) which provides for administration of 

24 the old-age, survivors, and disability insurance 


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1 program under such title, in whole or in part, 

2 by any entity in the private sector, 

3 (2) otherwise reducing benefits under title II of 

4 the Social Security Act in the case of any present or 

5 future beneficiary below the level of such benefits 

6 that would be in effect without the enactment of 

7 such bill, resolution, or amendment, or 

8 (3) providing for investment of amounts held in 

9 the Federal Old-Age and Survivors Insurance Trust 

10 Fund and the Federal Disability Insurance Trust 

11 Fund in any investment vehicle other than interest12 bearing obligations of the United States or obliga13 tions guaranteed as to both principal and interest by 

14 the United States. 

15 (b) WAIVER AND APPEAL.—Subsection (a) may be 

16 waived or suspended in the Senate only by an affirmative 

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

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

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

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

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

Æ 


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