I 

116TH CONGRESS 

1ST SESSION H. R. 4540 

To amend title II of the Social Security Act to provide an equitable Social 

Security formula for individuals with noncovered employment and to 

provide relief for individuals currently affected by the Windfall Elimination Provision. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 27, 2019 

Mr. NEAL introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To amend title II of the Social Security Act to provide 

an equitable Social Security formula for individuals with 

noncovered employment and to provide relief for individuals currently affected by the Windfall Elimination Provision. 

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 ‘‘Public Servants Pro5 tection and Fairness Act’’. 


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1 SEC. 2. ALTERNATIVE FORMULA EQUALIZING BENEFITS 

2 FOR CERTAIN INDIVIDUALS WITH NON3 COVERED EMPLOYMENT. 

4 (a) IN GENERAL.—Section 215(a) of the Social Secu5 rity Act (42 U.S.C. 415(a)) is amended by inserting after 

6 paragraph (7) the following: 

7 ‘‘(8)(A) In the case of an individual whose primary 

8 insurance amount would be computed under paragraph 

9 (1) of this subsection— 

10 ‘‘(i) who first becomes eligible for an old-age or 

11 disability insurance benefit after 2021 and who sub12 sequently becomes entitled to such benefit; 

13 ‘‘(ii) who has earnings derived from noncovered 

14 service performed in a year after 1977 and is enti15 tled to a monthly periodic payment based on such 

16 earnings; and 

17 ‘‘(iii) who has less than 30 years of coverage 

18 (as defined for purposes of paragraph (7)(D)), 

19 the primary insurance amount of such individual shall be 

20 the higher of the amount computed or recomputed under 

21 paragraph (7) without regard to this paragraph or the 

22 amount computed or recomputed under this paragraph. 

23 ‘‘(B) The primary insurance amount of an individual 

24 described in subparagraph (A), as computed or recom25 puted under this paragraph, shall be the product derived 

26 by multiplying— 


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1 ‘‘(i) the individual’s primary insurance amount, 

2 as determined under paragraph (1) of this sub3 section and subparagraph (C) of this paragraph, by 

4 ‘‘(ii) a fraction— 

5 ‘‘(I) the numerator of which is the individ6 ual’s average indexed monthly earnings (deter7 mined without regard to subparagraph (C)), 

8 and 

9 ‘‘(II) the denominator of which is an 

10 amount equal to the individual’s average in11 dexed monthly earnings (as determined under 

12 subparagraph (C)), 

13 rounded, if not a multiple of $0.10, to the next lower mul14 tiple of $0.10. 

15 ‘‘(C)(i) For purposes of determining an individual’s 

16 primary insurance amount and average indexed monthly 

17 earnings pursuant to clauses (i) and (ii)(II) of subpara18 graph (B), the individual’s average indexed monthly earn19 ings shall be determined by treating all recorded non20 covered earnings (as defined in clause (ii)(I)) derived by 

21 the individual from noncovered service performed in each 

22 year after 1977 as ‘wages’ (as defined in section 209 for 

23 purposes of this title), which shall be treated as included 

24 in the individual’s adjusted total covered earnings (as de25 fined in clause (ii)(II)) for such calendar year together 


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1 with amounts consisting of ‘wages’ (as so defined without 

2 regard to this subparagraph) paid during such calendar 

3 year and self-employment income (as defined in section 

4 211(b)) for taxable years ending with or during such cal5 endar year. 

6 ‘‘(ii) For purposes of this subparagraph: 

7 ‘‘(I) The term ‘recorded noncovered earnings’ 

8 means earnings derived from noncovered service 

9 (other than noncovered service as a member of a 

10 uniformed service (as defined in section 210(m))) for 

11 which satisfactory evidence is determined by the 

12 Commissioner to be available in the records of the 

13 Commissioner. 

14 ‘‘(II) The term ‘adjusted total covered earnings’ 

15 means, in connection with an individual for any cal16 endar year, the sum of the wages paid to the indi17 vidual during such calendar year (as adjusted under 

18 subsection (b)(3)) plus the self-employment income 

19 derived by the individual during any taxable year 

20 ending with or during such calendar year (as ad21 justed under subsection (b)(3)). 

22 ‘‘(iii) The Commissioner of Social Security shall pro23 vide by regulation or other public guidance for methods 

24 for determining whether satisfactory evidence is available 

25 in the records of the Commissioner for earnings for nonVerDate Sep 11 2014 22:30 Oct 02, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4540.IH H4540

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1 covered service (other than noncovered service as a mem2 ber of a uniformed service (as defined in section 210(m))) 

3 to be treated as recorded noncovered earnings. Such meth4 ods shall provide for reliance on earnings information pro5 vided to the Commissioner by employers and which, as de6 termined by the Commissioner, constitute a reasonable 

7 basis for treatment of earnings for noncovered service as 

8 recorded noncovered earnings. In making determinations 

9 under this clause, the Commissioner shall also take into 

10 account any documentary or other evidence of earnings de11 rived from noncovered service by an individual which is 

12 provided by the individual to the Commissioner and which 

13 the Commissioner considers appropriate as a reasonable 

14 basis for treatment of such earnings as recorded non15 covered earnings. 

16 ‘‘(iv) In the case of any individual who, at the time 

17 of application for old-age or disability insurance benefits 

18 under this title, has recorded noncovered earnings in an 

19 amount the Commissioner of Social Security determines 

20 may entitle the individual to a monthly periodic payment 

21 based on such earnings (but whose application does not 

22 report such a monthly periodic payment), the Commis23 sioner shall reconfirm with the individual whether such a 

24 monthly periodic payment is being paid in order to ensure 


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1 the proper application of paragraph (7) and this para2 graph. 

3 ‘‘(D) Upon the death of an individual whose primary 

4 insurance amount is computed or recomputed under this 

5 paragraph, such primary insurance amount shall be com6 puted or recomputed under paragraph (1) of this sub7 section. 

8 ‘‘(E) In the case of any individual whose primary in9 surance amount would be computed under this paragraph 

10 who first becomes entitled after 1985 to a monthly peri11 odic payment made by a foreign employer or foreign coun12 try that is based in whole or in part upon noncovered serv13 ice, the primary insurance amount of such individual shall 

14 be computed or recomputed under paragraph (7) or para15 graph (1), as applicable, for months beginning with the 

16 first month of the individual’s initial entitlement to such 

17 monthly periodic payment.’’. 

18 (b) CONFORMING AMENDMENTS.—Section 

19 215(a)(7)(A) of such Act (42 U.S.C. 415(a)(7)(A)) is 

20 amended— 

21 (1) by striking ‘‘hereafter in this paragraph and 

22 in subsection (d)(3)’’ and inserting ‘‘in this para23 graph, paragraph (8), and subsection (d)(3)’’; and 


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1 (2) by striking ‘‘shall be computed or recom2 puted’’ and inserting ‘‘shall, subject to paragraph 

3 (8), be computed or recomputed’’. 

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

5 this section shall apply with respect to monthly insurance 

6 benefits payable on or after January 1, 2022. 

7 SEC. 3. ADDITIONAL MONTHLY PAYMENT FOR CERTAIN IN8 DIVIDUALS WHOSE BENEFIT AMOUNT IS RE9 DUCED BY THE WINDFALL ELIMINATION 

10 PROVISION. 

11 (a) IN GENERAL.—Section 215(a) of such Act (42 

12 U.S.C. 415(a)), as amended by section 2(a), is further 

13 amended by adding at the end the following: 

14 ‘‘(9)(A) For any month beginning at least 270 days 

15 after the date of the enactment of the Public Servants 

16 Protection and Fairness Act, the Commissioner of Social 

17 Security shall, subject to subparagraphs (D) and (E), 

18 make an additional monthly payment to each individual 

19 who is an eligible individual for such month, in an amount 

20 equal to the amount determined under subparagraph (C) 

21 with respect to such eligible individual. 

22 ‘‘(B) For purposes of this paragraph, the term ‘eligi23 ble individual’ for a month means an individual (other 

24 than an individual described in paragraph (8)(E)) who— 


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1 ‘‘(i) first becomes eligible for an old-age or dis2 ability insurance benefit under this title before 2022; 

3 and 

4 ‘‘(ii) is entitled to an old-age or disability insur5 ance benefit under this title for such month based 

6 on a primary insurance amount that was computed 

7 or recomputed under paragraph (7) (and not subse8 quently recomputed under any other paragraph of 

9 this subsection). 

10 For purposes of clause (i), an individual shall be deemed 

11 eligible for a benefit for a month if, upon filing application 

12 therefor in such month, the individual would be entitled 

13 to such benefit for such month. 

14 ‘‘(C)(i) The amount determined under this paragraph 

15 with respect to an eligible individual is $150, except that 

16 in any case in which the amount by which the primary 

17 insurance amount of such eligible individual that would 

18 be computed for the individual’s initial computation month 

19 under paragraph (1) of this subsection without regard to 

20 paragraph (7) exceeds the amount of such primary insur21 ance amount computed or recomputed for such month 

22 under paragraph (7) is less than $150, the amount deter23 mined under this paragraph shall equal the amount of 

24 such excess. 


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1 ‘‘(ii) For purposes of this subparagraph, the term 

2 ‘initial computation month’ means, with respect to an indi3 vidual, the later of— 

4 ‘‘(I) the 1st month beginning at least 270 days 

5 after the date of the enactment of the Public Serv6 ants Protection and Fairness Act; or 

7 ‘‘(II) the 1st month for which the individual’s 

8 primary insurance amount is computed or recom9 puted under paragraph (7). 

10 ‘‘(D) In any case in which this title provides that no 

11 monthly benefit under section 202 or 223 shall be paid 

12 to an individual for a month, no additional monthly pay13 ment shall be paid to the individual for such month. This 

14 subparagraph shall not apply in the case of an individual 

15 whose monthly benefit under section 202 or 223 is re16 duced, regardless of the amount of the reduction, based 

17 on— 

18 ‘‘(i) the individual’s receipt of other income or 

19 benefits for such month; or 

20 ‘‘(ii) the adjustment or recovery of an overpay21 ment under section 204. 

22 ‘‘(E) Except for purposes of adjustment or recovery 

23 of an overpayment under section 204, an additional 

24 monthly payment under this paragraph shall not be sub25 ject to any reduction or deduction under this title. 


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1 ‘‘(F) Whenever benefit amounts under this title are 

2 increased by any percentage effective with any month as 

3 a result of a determination made under subsection (i), 

4 each additional monthly payment amount payable to an 

5 eligible individual under this paragraph shall be increased 

6 by the same percentage for months beginning with such 

7 month. 

8 ‘‘(G) The amount of any additional monthly payment 

9 under this paragraph shall be disregarded for purposes of 

10 determining the eligibility or benefit amount of an indi11 vidual for supplemental security income benefits payable 

12 under title XVI of the Social Security Act, but only if such 

13 individual— 

14 ‘‘(i) is eligible for a cash benefit payable under 

15 section 1611, section 1619(a), or section 1631(a)(7) 

16 for the 1st month beginning at least 270 days after 

17 the date of the enactment of the Public Servants 

18 Protection and Fairness Act; 

19 ‘‘(ii) is an individual described in section 

20 1619(b) for such month; or 

21 ‘‘(iii) is eligible for a State supplementary pay22 ment for such month of the type referred to in sec23 tion 1616(a) (or payments of the type described in 

24 section 212(a) of Public Law 93–66) which are paid 

25 by the Commissioner under an agreement referred to 


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1 in section 1616(a) (or section 212(a) of Public Law 

2 93–66).’’. 

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

4 this section shall apply with respect to monthly insurance 

5 benefits payable for months beginning at least 270 days 

6 after the date of the enactment of this Act. 

7 SEC. 4. IMPROVEMENT IN SOCIAL SECURITY ACCOUNT 

8 STATEMENTS FOR PUBLIC SERVANTS. 

9 (a) IN GENERAL.—Section 1143(a) of the Social Se10 curity Act (42 U.S.C. 1320b–13(a)) is amended— 

11 (1) in paragraph (2)— 

12 (A) by redesignating subparagraphs (B) 

13 through (E) as subparagraphs (C) through (F); 

14 (B) by inserting after subparagraph (A) 

15 the following: 

16 ‘‘(B) the amount of earnings derived by 

17 the eligible individual from service performed 

18 after 1977 which did not constitute employment 

19 (as defined in section 210), not including serv20 ice as a member of a uniformed service (as de21 fined in section 210(m)), as shown by the 

22 records of the Commissioner at the date of the 

23 request;’’; and 

24 (C) in subparagraph (E) (as redesignated 

25 by subparagraph (A)), by inserting ‘‘(in the 


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1 case of an eligible individual described in para2 graph (3)(C)(ii), calculated using a primary in3 surance amount estimated pursuant to para4 graph (8) of section 215(a) and including a no5 tation indicating the use of such method of cal6 culation)’’ after ‘‘account’’. 

7 (2) in paragraph (3)(C)(ii)— 

8 (A) by striking ‘‘wages or self-employment 

9 income’’ and inserting ‘‘wages, self-employment 

10 income, and earnings derived from noncovered 

11 service (within the meaning of section 

12 215(a)(7))’’; and 

13 (B) by striking ‘‘of noncovered employ14 ment’’ and inserting ‘‘that the individual’s pri15 mary insurance amount will be computed under 

16 paragraph (7) or (8) of section 215(a)’’. 

17 (b) CONFORMING AMENDMENTS.—Section 1143 of 

18 the Social Security Act (42 U.S.C. 1320b–13) is amend19 ed— 

20 (1) in subsection (a)(2)(F) (as redesignated by 

21 subsection (a)(1)(A) of this section), by striking 

22 ‘‘sections 202(k)(5) and 215(a)(7)’’ and all that fol23 lows through ‘‘auxiliary benefits’’ and inserting ‘‘sec24 tions 202(k)(5), 215(a)(7), and 215(a)(8)’’; and 

25 (2) in subsection (d)(1)— 


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1 (A) by striking ‘‘maximum’’; and 

2 (B) by striking ‘‘section 215(a)(7)’’ and in3 serting ‘‘sections 215(a)(7) and 215(a)(8)’’. 

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

5 this section shall apply with respect to Social Security ac6 count statements issued on or after January 1, 2022. 

7 SEC. 5. STUDY ON AVAILABILITY OF INFORMATION RELAT8 ING TO RETIREMENT PLANS. 

9 (a) IN GENERAL.—The Comptroller General shall 

10 conduct a study to determine the extent to which State 

11 and local governments (or their designees) that maintain 

12 retirement plans for their employees possess or otherwise 

13 have access to information sufficient to determine what 

14 amount of a participant’s benefits under such plan are 

15 based on noncovered service (within the meaning of section 

16 215(a)(7) of the Social Security Act (42 U.S.C. 

17 415(a)(7))). 

18 (b) REPORT.—Not later than 2 years after the date 

19 of the enactment of this Act, the Comptroller General shall 

20 submit a report to the Committee on Ways and Means 

21 of the House of Representatives and the Committee on 

22 Finance of the Senate on the results of the study described 

23 in subsection (a). 


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1 SEC. 6. HOLD HARMLESS FOR THE SOCIAL SECURITY 

2 TRUST FUNDS. 

3 There are appropriated, out of any moneys in the 

4 Treasury not otherwise appropriated, to each of the Fed5 eral Old-Age and Survivors Insurance Trust Fund and the 

6 Federal Disability Insurance Trust Fund for each fiscal 

7 year such amounts as the chief actuary of the Social Secu8 rity Administration shall certify are necessary to place 

9 each such Trust Fund in the same position at the end 

10 of such fiscal year as it would have been in if the amend11 ments made by this Act had not been enacted. 

Æ 


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