I 

108TH CONGRESS 

1ST SESSION H. R. 97

To amend title II of the Social Security Act to allow workers who attain 

age 65 after 1981 and before 1992 to choose either lump sum payments 

over four years totalling $5,000 or an improved benefit computation 

formula under a new 10-year rule governing the transition to the changes 

in benefit computation rules enacted in the Social Security Amendments 

of 1977, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 7, 2003

Mr. HALL (for himself and Mr. WEXLER) 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 allow workers 

who attain age 65 after 1981 and before 1992 to choose 

either lump sum payments over four years totalling 

$5,000 or an improved benefit computation formula 

under a new 10-year rule governing the transition to 

the changes in benefit computation rules enacted in the 

Social Security Amendments of 1977, and for other purposes.

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

2 This Act may be cited as the ‘‘Notch Fairness Act 

3 of 2003’’. 

4 SEC. 2. NEW GUARANTEED MINIMUM PRIMARY INSURANCE 

5 AMOUNT WHERE ELIGIBILITY ARISES DUR6 ING TRANSITIONAL PERIOD. 

7 (a) IN GENERAL.—Section 215(a) of the Social Secu8 rity Act is amended—

9 (1) in paragraph (4)(B), by inserting ‘‘(with or 

10 without the application of paragraph (8))’’ after 

11 ‘‘would be made’’, and by striking ‘‘1984’’ in clause 

12 (i) and inserting ‘‘1989’’; and 

13 (2) by adding at the end the following: 

14 ‘‘(8)(A) In the case of an individual described in 

15 paragraph (4)(B) (subject to subparagraphs (F) and (G) 

16 of this paragraph), the amount of the individual’s primary 

17 insurance amount as computed or recomputed under para18 graph (1) shall be deemed equal to the sum of—

19 ‘‘(i) such amount, and 

20 ‘‘(ii) the applicable transitional increase amount 

21 (if any). 

22 ‘‘(B) For purposes of subparagraph (A)(ii), the term 

23 ‘applicable transitional increase amount’ means, in the 

24 case of any individual, the product derived by multi25 plying—

26 ‘‘(i) the excess under former law, by 
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1 ‘‘(ii) the applicable percentage in relation to the 

2 year in which the individual becomes eligible for old3 age insurance benefits, as determined by the fol4 lowing table:

‘‘If the individual 

becomes eligible for The applicable 

such benefits in: percentage is: 

1979 ....................................................................... 55 percent

1980 ....................................................................... 45 percent

1981 ....................................................................... 35 percent

1982 ....................................................................... 32 percent

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

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

1985 ....................................................................... 16 percent

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

1987 ....................................................................... 3 percent

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

5 ‘‘(C) For purposes of subparagraph (B), the term ‘ex6 cess under former law’ means, in the case of any indi7 vidual, the excess of—

8 ‘‘(i) the applicable former law primary insur9 ance amount, over 

10 ‘‘(ii) the amount which would be such individ11 ual’s primary insurance amount if computed or re12 computed under this section without regard to this 

13 paragraph and paragraphs (4), (5), and (6). 

14 ‘‘(D) For purposes of subparagraph (C)(i), the term 

15 ‘applicable former law primary insurance amount’ means, 

16 in the case of any individual, the amount which would be 

17 such individual’s primary insurance amount if it were—
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1 ‘‘(i) computed or recomputed (pursuant to 

2 paragraph (4)(B)(i)) under section 215(a) as in ef3 fect in December 1978, or 

4 ‘‘(ii) computed or recomputed (pursuant to 

5 paragraph (4)(B)(ii)) as provided by subsection (d), 

6 (as applicable) and modified as provided by subparagraph 

7 (E). 

8 ‘‘(E) In determining the amount which would be an 

9 individual’s primary insurance amount as provided in sub10 paragraph (D)—

11 ‘‘(i) subsection (b)(4) shall not apply; 

12 ‘‘(ii) section 215(b) as in effect in December 

13 1978 shall apply, except that section 215(b)(2)(C) 

14 (as then in effect) shall be deemed to provide that 

15 an individual’s ‘computation base years’ may include 

16 only calendar years in the period after 1950 (or 

17 1936 if applicable) and ending with the calendar 

18 year in which such individual attains age 61, plus 

19 the 3 calendar years after such period for which the 

20 total of such individual’s wages and self-employment 

21 income is the largest; and 

22 ‘‘(iii) subdivision (I) in the last sentence of 

23 paragraph (4) shall be applied as though the words 

24 ‘without regard to any increases in that table’ in
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1 such subdivision read ‘including any increases in 

2 that table’. 

3 ‘‘(F) This paragraph shall apply in the case of any 

4 individual only if such application results in a primary in5 surance amount for such individual that is greater than 

6 it would be if computed or recomputed under paragraph 

7 (4)(B) without regard to this paragraph. 

8 ‘‘(G)(i) This paragraph shall apply in the case of any 

9 individual subject to any timely election to receive lump 

10 sum payments under this subparagraph. 

11 ‘‘(ii) A written election to receive lump sum payments 

12 under this subparagraph, in lieu of the application of this 

13 paragraph to the computation of the primary insurance 

14 amount of an individual described in paragraph (4)(B), 

15 may be filed with the Commissioner of Social Security in 

16 such form and manner as shall be prescribed in regula17 tions of the Commissioner. Any such election may be filed 

18 by such individual or, in the event of such individual’s 

19 death before any such election is filed by such individual, 

20 by any other beneficiary entitled to benefits under section 

21 202 on the basis of such individual’s wages and self-em22 ployment income. Any such election filed after December 

23 31, 2003, shall be null and void and of no effect.
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1 ‘‘(iii) Upon receipt by the Commissioner of a timely 

2 election filed by the individual described in paragraph 

3 (4)(B) in accordance with clause (ii)—

4 ‘‘(I) the Commissioner shall certify receipt of 

5 such election to the Secretary of the Treasury, and 

6 the Secretary of the Treasury, after receipt of such 

7 certification, shall pay such individual, from 

8 amounts in the Federal Old-Age and Survivors In9 surance Trust Fund, a total amount equal to 

10 $5,000, in 4 annual lump sum installments of 

11 $1,250, the first of which shall be made during fis12 cal year 2004 not later than July 1, 2004, and 

13 ‘‘(II) subparagraph (A) shall not apply in deter14 mining such individual’s primary insurance amount. 

15 ‘‘(iv) Upon receipt by the Commissioner as of Decem16 ber 31, 2003, of a timely election filed in accordance with 

17 clause (ii) by at least one beneficiary entitled to benefits 

18 on the basis of the wages and self-employment income of 

19 a deceased individual described in paragraph (4)(B), if 

20 such deceased individual has filed no timely election in ac21 cordance with clause (ii)—

22 ‘‘(I) the Commissioner shall certify receipt of all 

23 such elections received as of such date to the Sec24 retary of the Treasury, and the Secretary of the 

25 Treasury, after receipt of such certification, shall 
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1 pay each beneficiary filing such a timely election, 

2 from amounts in the Federal Old-Age and Survivors 

3 Insurance Trust Fund, a total amount equal to 

4 $5,000 (or, in the case of 2 or more such bene5 ficiaries, such amount distributed evenly among such 

6 beneficiaries), in 4 equal annual lump sum install7 ments, the first of which shall be made during fiscal 

8 year 2004 not later than July 1, 2004, and 

9 ‘‘(II) solely for purposes of determining the 

10 amount of such beneficiary’s benefits, subparagraph 

11 (A) shall be deemed not to apply in determining the 

12 deceased individual’s primary insurance amount.’’. 

13 (b) EFFECTIVE DATE AND RELATED RULES.—

14 (1) APPLICABILITY OF AMENDMENTS.—

15 (A) IN GENERAL.—Except as provided in 

16 paragraph (2), the amendments made by this 

17 Act shall be effective as though they had been 

18 included or reflected in section 201 of the So19 cial Security Amendments of 1977. 

20 (B) APPLICABILITY.—No monthly benefit 

21 or primary insurance amount under title II of 

22 the Social Security Act shall be increased by 

23 reason of such amendments for any month be24 fore July 2004. 
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1 (2) RECOMPUTATION TO REFLECT BENEFIT IN2 CREASES.—In any case in which an individual is en3 titled to monthly insurance benefits under title II of 

4 the Social Security Act for June 2004, if such bene5 fits are based on a primary insurance amount com6 puted—

7 (A) under section 215 of such Act as in ef8 fect (by reason of the Social Security Amend9 ments of 1977) after December 1978, or 

10 (B) under section 215 of such Act as in ef11 fect prior to January 1979 by reason of sub12 section (a)(4)(B) of such section (as amended 

13 by the Social Security Amendments of 1977), 

14 the Commissioner of Social Security (notwith15 standing section 215(f)(1) of the Social Security 

16 Act) shall recompute such primary insurance 

17 amount so as to take into account the amendments 

18 made by this Act.

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