I

103D CONGRESS

1ST SESSION H. R. 181

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

benefit computation formula for workers who attain age 65 in or after

1982 and to whom applies the 5-year period of transition to the changes

in benefit computation rules enacted in the Social Security Amendments

of 1977 (and related beneficiaries) and to provide prospectively for increases in their benefits accordingly.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 5, 1993

Mr. EMERSON 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

for an improved benefit computation formula for workers

who attain age 65 in or after 1982 and to whom applies

the 5-year period of transition to the changes in benefit

computation rules enacted in the Social Security Amendments of 1977 (and related beneficiaries) and to provide

prospectively for increases in their benefits accordingly.

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 ‘‘Notch Baby Act of

5 1993’’.
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1 SEC. 2. NEW GUARANTEED MINIMUM PRIMARY INSURANCE

2 AMOUNT WHERE ELIGIBILITY ARISES DUR3 ING TRANSITIONAL PERIOD.

4 Section 215(a) of the Social Security Act is amend5 ed—

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

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

8 ‘‘would be made’’; and

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

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

11 paragraph (4)(B) (subject to subparagraph (F) of this

12 paragraph), the amount of the individual’s primary insur13 ance amount as computed or recomputed under paragraph

14 (1) shall be deemed equal to the sum of—

15 ‘‘(i) such amount, and

16 ‘‘(ii) the applicable transitional increase amount

17 (if any).

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

19 ‘applicable transitional increase amount’ means, in the

20 case of any individual, the product derived by multiply21 ing—

22 ‘‘(i) the excess under former law, by

23 ‘‘(ii) the applicable percentage in relation to the

24 year in which the individual becomes eligible for old25 age insurance benefits, as determined by the follow26 ing table:
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‘‘If the individual

becomes eligible for The applicable

such benefits in: percentage is:

1979 ....................................................................... 60 percent

1980 ....................................................................... 35 percent

1981 ....................................................................... 30 percent

1982 ....................................................................... 25 percent

1983 ....................................................................... 10 percent.

1 ‘‘(C) For purposes of subparagraph (B), the term ‘ex2 cess under former law’ means, in the case of any individ3 ual, the excess of—

4 ‘‘(i) the applicable former law primary insur5 ance amount, over

6 ‘‘(ii) the amount which would be such individ7 ual’s primary insurance amount if computed or re8 computed under this section without regard to this

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

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

11 ‘applicable former law primary insurance amount’ means,

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

13 such individual’s primary insurance amount if it were—

14 ‘‘(i) computed or recomputed (pursuant to

15 paragraph (4)(B)(i)) under section 215(a) as in ef16 fect in December 1978, or

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

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

19 (as applicable) and modified as provided by subparagraph

20 (E).
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1 ‘‘(E) In determining the amount which would be an

2 individual’s primary insurance amount as provided in sub3 paragraph (D)—

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

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

6 1978 shall apply, except that section 215(b)(2)(C)

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

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

9 only calendar years in the period after 1950 (or

10 1936 if applicable) and ending with the calendar

11 year in which such individual attains age 61, plus

12 the 3 calendar years after such period for which the

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

14 income is the largest; and

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

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

17 ‘without regard to any increases in that table’ in

18 such subdivision read ‘including any increases in

19 that table’.

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

21 individual only if such application results in a primary in22 surance amount for such individual that is greater than

23 it would be if computed or recomputed under paragraph

24 (4)(B) without regard to this paragraph.’’.
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1 SEC. 3. EFFECTIVE DATE AND RELATED RULES.

2 (a) APPLICABILITY OF AMENDMENTS.—

3 (1) IN GENERAL.—Except as provided in para4 graph (2), the amendments made by this Act shall

5 be effective as though they had been included or re6 flected in section 201 of the Social Security Amend7 ments of 1977.

8 (2) PROSPECTIVE APPLICABILITY.—No monthly

9 benefit or primary insurance amount under title II

10 of the Social Security Act shall be increased by rea11 son of such amendments for any month before Janu12 ary 1994.

13 (b) RECOMPUTATION TO REFLECT BENEFIT IN14 CREASES.—In any case in which an individual is entitled

15 to monthly insurance benefits under title II of the Social

16 Security Act for December 1987, if such benefits are

17 based on a primary insurance amount computed—

18 (1) under section 215 of such Act as in effect

19 (by reason of the Social Security Amendments of

20 1977) after December 1978, or

21 (2) under section 215 of such Act as in effect

22 prior to January 1979 by reason of subsection

23 (a)(4)(B) of such section (as amended by the Social

24 Security Amendments of 1977),

25 the Secretary of Health and Human Services (notwith26 standing section 215(f)(1) of the Social Security Act) shall
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1 recompute such primary insurance amount so as to take

2 into account the amendments made by this Act.

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