I

103D CONGRESS

1ST SESSION H. R. 1883

To amend title II of the Social Security Act to provide for a more gradual

period of transition (under a new alternative formula with respect to

such transition) to the changes in benefit computation rules enacted

in the Social Security Amendments of 1977 as such changes apply

to workers born in years after 1916 and before 1927 (and related

beneficiaries) and to provide for increases in such workers’ benefits

accordingly, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 28, 1993

Mr. DEFAZIO (for himself, Mr. FRANK of Massachusetts, Mr. MACHTLEY, Mr.

SAXTON, Mr. ENGEL, Mr. MINETA, Mr. SMITH of New Jersey, Mr.

BILBRAY, Mr. BOUCHER, Mr. HEFNER, Mr. CRAMER, Mr. RAHALL, Mr.

SUNDQUIST, Ms. DANNER, Mr. POSHARD, Mr. FRANKS of Connecticut,

Mr. SARPALIUS, Mr. TAYLOR of North Carolina, Mr. PARKER, Mr.

STEARNS, Ms. NORTON, Mr. ZIMMER, Mr. WALSH, Mr. GEJDENSON, Mr.

WELDON, Mr. SPENCE, Mr. EVANS, Mr. NEAL of North Carolina, Mr.

TAUZIN, Mr. GILMAN, Mr. CLYBURN, Mr. COLEMAN, Mrs. VUCANOVICH,

Mr. WAXMAN, Mr. STUMP, Mr. LAUGHLIN, Mr. KANJORSKI, Mr. MURPHY, Mr. MURTHA, Mr. GOSS, Mr. ANDREWS of New Jersey, Mr.

HOCHBRUECKNER, Mr. ACKERMAN, Mr. PETERSON of Minnesota, Mr. DE

LUGO, Mr. GORDON, Mr. CHAPMAN, Mr. MARKEY, Mrs. MALONEY, Mr.

SCHUMER, Mr. LIGHTFOOT, Mr. JOHNSON of South Dakota, Mr. GALLO,

Mr. BEVILL, Mr. COMBEST, Mr. BACCHUS of Florida, Mr. HOBSON, Mr.

WILSON, Mr. QUILLEN, Mr. MARTINEZ, Mr. HUNTER, Ms. WOOLSEY,

Mr. GILLMOR, Mr. CLINGER, Mrs. THURMAN, Mr. SCOTT, Mr. FISH, Mr.

WILLIAMS, Mrs. ROUKEMA, and Mr. PALLONE) 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 a more gradual period of transition (under a new
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alternative formula with respect to such transition) to

the changes in benefit computation rules enacted in the

Social Security Amendments of 1977 as such changes

apply to workers born in years after 1916 and before

1927 (and related beneficiaries) and to provide for increases in such workers’ benefits accordingly, 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,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Social Security Notch

5 Adjustment Act of 1993’’.

6 SEC. 2. EXPANSION OF PERIOD OF TRANSITION; NEW AL7 TERNATIVE FORMULA WITH RESPECT TO

8 SUCH PERIOD.

9 (a) EXPANSION OF PERIOD OF TRANSITION.—Sec10 tion 215(a)(4)(B)(i) of the Social Security Act (42 U.S.C.

11 415(a)(4)(B)(i)) is amended by striking ‘‘1984’’ and in12 serting ‘‘1989’’.

13 (b) ESTABLISHMENT OF NEW TRANSITIONAL FOR14 MULA.—Section 215(a) of such Act (42 U.S.C. 415(a))

15 is amended by adding at the end the following new para16 graph:

17 ‘‘(8)(A) Paragraphs (1) (except for subparagraph

18 (C)(i) thereof) and (4) do not apply to the computation

19 or recomputation of a primary insurance amount for an

20 individual who had wages or self-employment income cred-
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1 ited for one or more years prior to 1979, and who was

2 not eligible for an old-age or disability insurance benefit,

3 and did not die, prior to January 1979, if in the year for

4 which the computation or recomputation would be made

5 the individual’s primary insurance amount would be great6 er if computed or recomputed under subparagraph (B).

7 ‘‘(B) The primary insurance amount computed or re8 computed under this subparagraph is equal to the sum

9 of the amount which would be computed under this sub10 section if this paragraph were not applied, plus the prod11 uct (not less than zero) derived by multiplying—

12 ‘‘(i) the excess of the adjusted old-law benefit

13 amount over the new-law benefit amount, by

14 ‘‘(ii) the applicable reduction factor.

15 ‘‘(C) For purposes of this paragraph, in the case of

16 any individual described in subparagraph (A)—

17 ‘‘(i) The term ‘adjusted old-law benefit amount’

18 means the amount computed or recomputed under

19 this subsection as in effect in December 1978 (for

20 purposes of old-age insurance benefits in the case of

21 an individual who becomes eligible for such benefits

22 prior to 1989) or subsection (d) (in the case of an

23 individual to whom such subsection applies), subject

24 to the amendments made by section 5117 of the

25 Omnibus Budget Reconciliation Act of 1990.
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1 ‘‘(ii) The term ‘new-law benefit amount’ means

2 the amount which would be computed under this

3 subsection if this paragraph were not applied.

4 ‘‘(iii)(I) The term ‘applicable reduction factor’

5 means the excess of the applicable base percentage

6 determined under subclause (II) over the applicable

7 early retirement percentage determined under

8 subclause (III).

9 ‘‘(II) The applicable base percentage deter10 mined under this subclause is the percentage pro11 vided in the following table:

‘‘If the individual becomes

eligible for old-age insurance The applicable base

benefits in: percentage is:

1979 ................................................................... 40 percent

1980 ................................................................... 37 percent

1981 ................................................................... 34 percent

1982 ................................................................... 31 percent

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

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

1985 ................................................................... 15 percent

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

1987 ................................................................... 5 percent

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

12 ‘‘(III) The applicable early retirement percent13 age determined under this subclause is the product

14 derived by multiplying 5/12 of 1 percent by the total

15 number of months, before the month in which the

16 individual attains the age of 65, for which an old17 age insurance benefit is payable to such individual.’’.

18 (c) APPLICABILITY OF OLD PROVISIONS.—Section

19 215(a)(5) of such Act (42 U.S.C. 415(a)(5)) is amended—
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1 (1) in subparagraph (A), by striking ‘‘subject to

2 subparagraphs (B), (C), (D), and (E),’’ and insert3 ing ‘‘subject to subparagraphs (B), (C), (D), (E),

4 and (F),’’; and

5 (2) by adding at the end the following new sub6 paragraph:

7 ‘‘(F) In applying this section as in effect in December

8 1978 as provided in subparagraph (A) in the case of an

9 individual to whom paragraph (1) does not apply by rea10 son of paragraph (8)—

11 ‘‘(i) subsection (b)(2)(C) shall be deemed to

12 provide that an individual’s ‘computation base years’

13 may include only calendar years in the period after

14 1950 (or 1936 if applicable) and ending with the

15 calendar year in which such individual attains age

16 65; and

17 ‘‘(ii) the ‘contribution and benefit base’ (under

18 section 230) with respect to remuneration paid in

19 (and taxable years beginning in) any calendar year

20 after 1981 shall be deemed to be $29,700.’’.

21 (d) CONFORMING AMENDMENT.—Section

22 215(a)(3)(A) of such Act (42 U.S.C. 415(a)(3)(A)) is

23 amended in the matter following clause (iii) by striking

24 ‘‘(4)’’ and inserting ‘‘(4) or (8)’’.
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1 SEC. 3. EFFECTIVE DATE AND RELATED RULES.

2 (a) IN GENERAL.—Except as provided in subsection

3 (c), the amendments made by this Act shall be effective

4 as if included in the amendments made by section 201

5 of the Social Security Amendments of 1977.

6 (b) RECOMPUTATION.—In any case in which an indi7 vidual (under title II of the Social Security Act) is entitled,

8 for the month in which this Act is enacted, to monthly

9 insurance benefits under such title which were com10 puted—

11 (1) under section 215 of the Social Security Act

12 as in effect (by reason of the Social Security Amend13 ments of 1977) after December 1978, or

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

15 prior to January 1979 (and subsequently amended

16 and modified) by reason of subsection (a)(4)(B) of

17 such section (as amended by the Social Security

18 Amendments of 1977),

19 the Secretary of Health and Human Services (notwith20 standing section 215(f)(1)) of the Social Security Act)

21 shall recompute such individual’s primary insurance

22 amount so as to take into account the amendments made

23 by this section.

24 (c) PROSPECTIVE APPLICABILITY.—The amendments

25 made by this Act shall apply only with respect to benefits

26 for months after November 1993.
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