Social Security Enhancement and Protection Act of 2015

To amend title II of the Social Security Act to make various reforms to Social Security, and for other purposes. 1. Short title This Act may be cited as the Social Security Enhancement and Protection Act of 2015 2. Increase in special minimum benefit for lifetime low earners based on years in the workforce Section 215(a)(1)(C) of the Social Security Act ( 42 U.S.C. 415(a)(1)(C) (C) (i) Effective with respect to the benefits of individuals who become eligible for old-age insurance benefits or disability insurance benefits (or die before becoming so eligible) after 2016, no primary insurance amount computed under subparagraph (A) may be less than the applicable percentage of 1/12 (ii) For purposes of clause (i), the applicable percentage is the percentage specified in connection with the number of years of work, as set forth in the following table: If the number of The applicable years of work is: percentage is: 11 36.7 percent 12 40.0 percent 13 43.3 percent 14 46.7 percent 15 50.0 percent 16 53.3 percent 17 56.7 percent 18 60.0 percent 19 63.3 percent 20 66.7 percent 21 70.0 percent 22 73.3 percent 23 76.7 percent 24 80.0 percent 25 83.3 percent 26 86.7 percent 27 90.0 percent 28 93.3 percent 29 96.7 percent 30 or more 100.0 percent. (iii) For purposes of this subparagraph, the term number of years of work (I) 1/4 (II) the number of years (not exceeding 5) in all of which the individual provided care for a child under 6 years of age who resided in the individual’s home. (iv) (I) The annual dollar amount determined under this clause is the poverty guideline for the calendar year preceding the calendar year in which the determination is made. (II) For purposes of this clause, the term poverty guideline . 3. Establishment of an increased benefit for beneficiaries on account of long-term eligibility (a) In general Section 202 of the Social Security Act ( 42 U.S.C. 402 (z) Increase in benefit amounts on account of long-Term eligibility (1) In the case of an individual who is a qualified beneficiary for a calendar year after 2016, the amount of any monthly insurance benefit of such qualified beneficiary under this section or section 223 for any month in such calendar year shall be increased in accordance with paragraph (3). (2) (A) For purposes of this subsection, the term qualified beneficiary (B) For purposes of this subsection, the applicable date of eligibility for an individual is the date on which the individual on whose wages and self-employment income the monthly insurance benefit is based initially became eligible (or died before becoming eligible) for old-age insurance benefits under subsection (a) or disability insurance benefits under section 223. (3) (A) The increase required under paragraph (1) with respect to the monthly insurance benefit of an individual who is a qualified beneficiary for a calendar year shall be equal to the applicable percentage (specified for such benefit in subparagraph (B)) of the full increase amount for such calendar year (determined under subparagraph (C)). (B) The applicable percentage specified for a monthly insurance benefit under this subparagraph for a calendar year is the percentage specified, in connection with the number of years ending after the applicable date of eligibility for such individual and before such calendar year, in the following table: The applicable If the number of years is: percentage is: 16 20 percent 17 40 percent 18 60 percent 19 80 percent 20 or larger 100 percent. (C) (i) Except as provided in clause (ii), the full increase amount determined under this subparagraph for a calendar year in connection with the monthly insurance benefit of a qualified beneficiary is a dollar amount equal to 5 percent of the amount of the benefit if— (I) such benefit were based on the primary insurance amount determined for January of such calendar year of a putative individual; (II) on January 1 of the calendar year in which occurred the applicable eligibility date with respect to such individual, such putative individual were fully insured, attained retirement age (as defined in section 216(l)(2)) and were otherwise eligible for, and applied for, old-age insurance benefits; and (III) such putative individual’s average indexed monthly earnings taken into account in determining such primary insurance amount were equal to 1/12 (ii) (I) In the case of a monthly insurance benefit under subsection (b) or (c), the full increase amount determined under this subparagraph shall be one-half the amount determined under clause (i); or (II) In the case of a monthly insurance benefit under subsection (d), (g), or (h), the full increase amount determined under this subparagraph shall be the percentage of the amount determined under clause (i) equal to the ratio which the amount of such benefit bears to the primary insurance amount (before the application of section 203(a)) of the individual on whose wages and self-employment income the monthly insurance benefit is based. (4) In the case of a qualified beneficiary who is entitled to two or more monthly insurance benefits under this title for the same month— (A) the earliest applicable date of eligibility for such beneficiary with respect to such benefits shall be treated as the applicable date of eligibility for such beneficiary for the purposes of this subsection; and (B) such beneficiary shall be entitled to an increase with respect only to one such benefit. (5) This subsection shall be applied to monthly insurance benefits after any increase under subsection (w) and any applicable reductions and deductions under this title. (6) In any case in which an individual is entitled to benefits under both this section and section 223, the increase under this subsection shall be paid from the Federal Old-Age and Survivors Insurance Trust Fund. . (b) Conforming amendments (1) Section 202 of such Act ( 42 U.S.C. 402 (A) in the last sentence of subsection (a), by striking subsection (q) and subsection (w) subsections (q), (w), and (z) (B) in subsection (b)(2), by striking subsections (k)(5) and (q) subsections (k)(5), (q), and (z) (C) in subsection (c)(2), by striking subsections (k)(5) and (q) subsections (k)(5), (q), and (z) (D) in subsection (d)(2), by adding at the end the following: This paragraph shall apply subject to subsection (z). (E) in subsection (e)(2)(A), by striking subsection (k)(5), subsection (q), and subparagraph (D) of this paragraph subsection (k)(5), subsection (q), subsection (z), and subparagraph (D) of this paragraph (F) in subsection (f)(2)(A), by striking subsection (k)(5), subsection (q), and subparagraph (D) of this paragraph subsection (k)(5), subsection (q), subsection (z), and subparagraph (D) of this paragraph (G) in subsection (g)(2), by striking Such Except as provided in subsections (k)(5) and (z), such (H) in subsection (h)(2)(A), by inserting and subsection (z) subparagraphs (B) and (C) (I) in section 223(a)(2), by striking section 202(q) sections 202(q) and 202(z) (2) Section 209(k)(1) of such Act ( 402 U.S.C. 409(k)(1) 202(z)(3)(C)(i)(II), 203(f)(8)(B)(ii) 4. Extension of child’s benefit for certain post-secondary students under age 22 (a) In general Section 202(d)(1)(B) of the Social Security Act ( 42 U.S.C. 402(d)(1)(B) (B) at the time such application was filed was unmarried and— (i) had not attained the age of 18, (ii) was a full-time elementary or secondary school student and had not attained the age of 19, (iii) was an eligible full-time post-secondary school student and had not attained the age of 22, or (iv) is under a disability (as defined in section 223(d)) which began before he attained the age of 22, and . (b) Definition of eligible full-Time post-Secondary school student Section 202(d)(7) of the Social Security Act ( 42 U.S.C. 402(d)(7) (E) An eligible full-time post-secondary school student . (c) Definition of full-Time post-Secondary school student (1) In general Section 202(d)(7) of such Act ( 42 U.S.C. 402(d)(7) (A) in subparagraph (A)— (i) by inserting and a full-time post-secondary school student , as determined by the Commissioner (ii) by inserting or a full-time post-secondary school student if he is paid by his employer (iii) by inserting or a post-secondary educational institution, as applicable, at the request (iv) by inserting or a full-time post-secondary school student for the purpose of this section (v) by inserting or a full-time post-secondary school student shall be deemed (B) in subparagraph (B)— (i) by inserting or a full-time post-secondary school student student (ii) by inserting or a post-secondary educational institution, as applicable at which he has been (iii) by striking an elementary or secondary school such a school (2) Transition from elementary or secondary school Section 202(d)(7)(B) of such Act ( 42 U.S.C. 402(d)(7)(B) An individual who has been in full-time attendance at an elementary or secondary school shall, during a succeeding period of nonattendance at such school, be deemed to be a full-time secondary-school student if (i) such period is 4 calendar months or less, and (ii) the individual shows to the satisfaction of the Commissioner that he intends to be in full-time attendance at a post-secondary educational institution immediately following such period. (d) Definition of post-Secondary educational institution Section 202(d)(7)(C) of such Act ( 42 U.S.C. 402(d)(7)(C) (iii) A post-secondary educational institution (I) is operated or directly supported by the United States, or by any State or local government or political subdivision thereof, (II) has been approved by a State or accredited by a State-recognized or nationally-recognized accrediting agency or body, or (III) whose credits are accepted, on transfer, by not less than three institutions which are so accredited, for credit on the same basis as if transferred from an institution so accredited. . (e) Conforming amendments (1) Section 202(d)(1)(E) of such Act ( 42 U.S.C. 402(d)(1)(E) or an eligible full-time post-secondary school student student (2) Section 202(d)(1)(F) of such Act ( 42 U.S.C. 402(d)(1)(F) the earlier of— the age of 19, the earlier of— (i) the first month during no part of which the child is a full-time elementary or secondary school student or an eligible full-time post-secondary school student, (ii) the month in which the child attains the age of 19, but only if the child is not an eligible full-time post-secondary school student during any part of such month, or (iii) the month in which the child attains the age of 22, . (3) Section 202(d)(1)(G) of such Act ( 42 U.S.C. 402(d)(1)(G) (if later) the age of 19, (if later) the earlier of— (i) the first month during no part of which the child is a full-time elementary or secondary school student or an eligible full-time post-secondary school student, (ii) the month in which the child attains the age of 19, but only if the child is not an eligible full-time post-secondary school student during any part of such month, or (iii) the month in which the child attains the age of 22, . (4) Section 202(d)(6)(A) of such Act ( 42 U.S.C. 402(d)(6)(A) (A) (i) is a full-time elementary or secondary school student and has not attained the age of 19, (ii) is an eligible full-time post-secondary school student and has not attained the age of 22, or (iii) is under a disability (as defined in section 223(d)) and has not attained the age of 22, or . (5) Section 202(d)(6)(D) of such Act ( 42 U.S.C. 402(d)(6)(D) (D) the earlier of— (i) the first month during no part of which the child is a full-time elementary or secondary school student or an eligible full-time post-secondary school student, (ii) the month in which the child attains the age of 19, but only if the child is not an eligible full-time post-secondary school student during any part of such month, or (iii) the month in which the child attains the age of 22, but only if he is not under a disability (as so defined) in such earlier month; or . (6) Section 202(d)(6)(E) of such Act ( 42 U.S.C. 402(d)(6)(E) (if later) (if later) the earlier of— (i) the first month during no part of which the child is a full-time elementary or secondary school student or an eligible full-time post-secondary school student, (ii) the month in which the child attains the age of 19, but only if the child is not an eligible full-time post-secondary school student during any part of such month, or (iii) the month in which the child attains the age of 22. . (f) Effective date The amendments made by this section apply with respect to applications for child’s insurance benefits under section 202(d) of the Social Security Act ( 42 U.S.C. 402(d) 5. Determination of taxable wages and self-employment income above contribution and benefit base after 2016 (a) Determination of taxable wages above contribution and benefit base after 2016 (1) Amendments to the Internal Revenue Code of 1986 Section 3121 (A) in subsection (a)(1), by inserting the applicable percentage (determined under subsection (c)(1)) of that part of the remuneration (B) in subsection (c), by striking (c) (c) Special rules for wages and employment (1) Applicable percentage of remuneration in determining taxable wages For purposes of subsection (a)(1), the applicable percentage for a calendar year shall be determined in accordance with the following table: The applicable In the case of: percentage is: Calendar year 2017 90 percent Calendar year 2018 80 percent Calendar year 2019 70 percent Calendar year 2020 60 percent Calendar year 2021 50 percent Calendar year 2022 40 percent Calendar year 2023 30 percent Calendar year 2024 20 percent Calendar year 2025 10 percent Calendar years after 2026 0 percent. (2) Included and excluded service For purposes of this chapter, if . (2) Amendments to the Social Security Act Section 209 of the Social Security Act ( 42 U.S.C. 409 (A) in subsection (a)(1)(I)— (i) by inserting and before 2017 1974 (ii) by inserting and (B) in subsection (a)(1), by adding at the end the following new subparagraph: (J) The applicable percentage (determined under subsection (l)) of that part of remuneration which, after remuneration (other than remuneration referred to in the succeeding subsections of this section) equal to the contribution and benefit base (determined under section 230) with respect to employment has been paid to an individual during any calendar year after 2016 with respect to which such contribution and benefit base is effective, is paid to such individual during such calendar year; ; and (C) by adding at the end the following new subsection: (l) For purposes of subsection (a)(1)(J), the applicable percentage for a calendar year shall be determined in accordance with the following table: The applicable In the case of: percentage is: Calendar year 2017 90 percent Calendar year 2018 80 percent Calendar year 2019 70 percent Calendar year 2020 60 percent Calendar year 2021 50 percent Calendar year 2022 40 percent Calendar year 2023 30 percent Calendar year 2024 20 percent Calendar year 2025 10 percent Calendar years after 2026 0 percent. . (3) Effective date The amendments made by this subsection shall apply with respect to remuneration paid in calendar years after 2016. (b) Determination of taxable self-Employment income above contribution and benefit base after 2016 (1) Amendments to the Internal Revenue Code of 1986 Section 1402 (A) in subsection (b)(1), by striking that part of the net earnings minus an amount equal to the applicable percentage (as determined under subsection (d)(2)) of that part of the net earnings from self-employment which is in excess of the difference (not to be less than zero) between (i) an amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective for the calendar year in which such taxable year begins, and (B) in subsection (d)— (i) by striking (d) (d) Rules and definitions (1) Employee and wages The term ; and (ii) by adding at the end the following: (2) Applicable percentage of net earnings from self-employment in determining taxable self-employment income For purposes of subsection (b)(1), the applicable percentage for a taxable year beginning in any calendar year referred to in such paragraph shall be determined in accordance with the following table: The applicable In the case of: percentage is: Calendar year 2017 90 percent Calendar year 2018 80 percent Calendar year 2019 70 percent Calendar year 2020 60 percent Calendar year 2021 50 percent Calendar year 2022 40 percent Calendar year 2023 30 percent Calendar year 2024 20 percent Calendar year 2025 10 percent Calendar years after 2026 0 percent. . (2) Amendments to the Social Security Act Section 211 of the Social Security Act ( 42 U.S.C. 411 (A) in subsection (b)— (i) in paragraph (1)(I)— (I) by striking or (II) by inserting and before 2017 1974 (ii) by redesignating paragraph (2) as paragraph (3); and (iii) by inserting after paragraph (1) the following: (2) For any taxable year beginning in any calendar year after 2016, an amount equal to the applicable percentage (as determined under subsection (l)) of that part of net earnings from self-employment which is in excess of the difference (not to be less than zero) between— (A) an amount equal to the contribution and benefit base (as determined under section 230) that is effective for such calendar year, and (B) the amount of the wages paid to such individual during such taxable year; or ; and (B) by adding at the end the following: (l) For purposes of subsection (b)(2), the applicable percentage for a taxable year beginning in any calendar year referred to in such paragraph shall be determined in accordance with the following table: The applicable In the case of: percentage is: Calendar year 2017 90 percent Calendar year 2018 80 percent Calendar year 2019 70 percent Calendar year 2020 60 percent Calendar year 2021 50 percent Calendar year 2022 40 percent Calendar year 2023 30 percent Calendar year 2024 20 percent Calendar year 2025 10 percent Calendar years after 2026 0 percent. . (3) Effective date The amendments made by this subsection shall apply with respect to taxable years beginning in calendar years after 2016. (c) Computing average indexed monthly earnings Section 215(e) of the Social Security Act ( 42 U.S.C. 415(e) (1) in paragraph (1)— (A) by striking and before 1975, (B) by inserting and before 2017 after 1974 (C) by inserting , and the applicable percentage of the excess over an amount equal to the contribution and benefit base (as determined under section 230) in the case of any calendar year after 2014 with respect to which such contribution and benefit base is effective, benefit base is effective, (2) by adding at the end the following: (3) For purposes of paragraph (1), the applicable percentage for a year shall be determined in accordance with the following table: The applicable In the case of: percentage is: Calendar year 2017 90 percent Calendar year 2018 80 percent Calendar year 2019 70 percent Calendar year 2020 60 percent Calendar year 2021 50 percent Calendar year 2022 40 percent Calendar year 2023 30 percent Calendar year 2024 20 percent Calendar year 2025 10 percent Calendar years after 2026 0 percent. . (d) Conforming amendment Section 215(i)(2)(C)(i) of the Social Security Act ( 42 U.S.C. 415(i)(2)(C)(i) the Commissioner's estimate of the extent to which the cost of such increase would be met by an increase in the contribution and benefit base under section 230 and the estimated amount of the increase in such base, 6. New bend point for amounts above contribution and benefit base (a) In general Section 215(a)(1) of the Social Security Act ( 42 U.S.C. 415(a)(1) (1) in subparagraph (A)— (A) in clause (ii), by striking and (B) in clause (iii), by striking the comma at the end and inserting the following: but do not exceed the amount established for purposes of this clause by subparagraph (B), and (C) by inserting after clause (iii) the following: (iv) 3 percent of the individual’s average indexed monthly earnings to the extent that such earnings exceed the amount established for purposes of clause (iii), ; and (2) in subparagraph (B)— (A) by inserting and before 2017 1979 (B) by redesignating clause (iii) as clause (v); (C) by inserting after clause (ii) the following: (iii) For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming eligible for such benefits), in the calendar year 2017— (I) the amounts established for purposes of clauses (i) and (ii) of subparagraph (A) shall be the amounts so established under clause (ii) of this subparagraph for such calendar year; and (II) the amount established for purposes of clause (iii) of subparagraph (A) shall be the amount of the contribution and benefit base with respect to remuneration paid (and taxable years beginning) in calendar year 2017. (iv) For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming eligible for such benefits), in any calendar year after 2017, the amount so established shall equal the product of the corresponding amount established with respect to the calendar year 2017 under clause (iii) of this subparagraph and the quotient obtained by dividing— (I) the national average wage index (as defined in section 209(k)(1)) for the second calendar year preceding the calendar year for which the determination is made, by (II) the national average wage index (as so defined) for 2015. ; and (D) in clause (v), as so redesignated by subparagraph (A) of this paragraph, by inserting and clause (iv) clause (ii) (b) Effective date The amendments made by this section shall apply with respect to individuals who initially become eligible (within the meaning of section 215(a)(3)(B)) for old-age or disability insurance benefits under title II of the Social Security Act, or who die (before becoming eligible for such benefits), in any calendar year after 2016. 7. Increase in employment tax rate (a) Wages (1) Employees Subsection (a) of section 3101 (a) Old-Age, survivors, and disability insurance (1) In general In addition to other taxes, there is hereby imposed on the income of every individual a tax equal to the applicable percentage of the wages (as defined in section 3121(a)) received by him with respect to employment (as defined in section 3121(b)). (2) Applicable percentage For purposes of paragraph (1), the term applicable percentage The applicable In case of wages received during: percentage 2017 6.25 percent 2018 6.30 percent 2019 6.35 percent 2020 6.40 percent 2021 6.45 percent 2022 or thereafter 6.50 percent. . (2) Employers Subsection (a) of section 3111 of such Code is amended to read as follows: (a) Old-Age, survivors, and disability insurance (1) In general In addition to other taxes, there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to the applicable percentage of the wages (as defined in section 3121(a)) paid by him with respect to employment (as defined in section 3121(b)). (2) Applicable percentage For purposes of paragraph (1), the term applicable percentage The applicable In case of a taxable year beginning during calendar year: percentage shall be: 2017 6.25 percent 2018 6.30 percent 2019 6.35 percent 2020 6.40 percent 2021 6.45 percent 2022 or thereafter 6.50 percent. . (b) Self-Employment Subsection (a) of section 1401 of such Code is amended to read as follows: (a) Old-Age, survivors, and disability insurance (1) In addition to other taxes, there shall be imposed for each taxable year, on the self-employment income of every individual, a tax equal to the applicable percentage of the amount of the self-employment income for such taxable year. (2) Applicable percentage For purposes of paragraph (1), the term applicable percentage The applicable In case of a taxable year beginning during calendar year: percentage shall be: 2017 12.5 percent 2018 12.6 percent 2019 12.7 percent 2020 12.8 percent 2021 12.9 percent 2022 or thereafter 13.0 percent. . (c) Effective date The amendments made by this section shall apply with respect to remuneration received, and taxable years beginning after, December 31, 2016. 8. Non-application of increase in Social Security benefits for means-tested programs Any increase in monthly insurance benefits under title II of the Social Security Act as a result of the amendments made by this Act shall not be regarded as income or resources for any month after December 2016, for purposes of determining the eligibility of the recipient (or the recipient's spouse or family) for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.

Summary: Social Security Enhancement and Protection Act of 2015 Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act to revise the formula for computation of the primary insurance amount (PIA, or the monthly benefit amount payable to a worker upon retirement at full retirement age or upon entitlement to disability benefits), increasing the special minimum benefit for certain earners based on years in the workforce and a specified percentage of 1/12th of the poverty guideline for the previous calendar year. Prescribes a formula for an increase in OASDI benefit amounts for beneficiaries on account of long-term eligibility (counting from at least 16 years after the individual's applicable date of eligibility). Extends a child's benefit for certain full-time post-secondary students under age 22. Amends both SSA title II and the Internal Revenue Code (IRC) to add an applicable percentage of a certain part of remuneration to the formula for determining taxable wages and the net earning from taxable self-employment income above the contribution and benefit base for Federal Insurance Contribution ACT (FICA, or Social Security) tax purposes beginning in 2017. Amends SSA title II, with respect to the formula for computation of the PIA, to establish a new bend point, for individuals becoming eligible in 2017, involving the contribution and benefit base. (Bend points are dollar amounts defining brackets of average indexed monthly earnings used in the formula for determining the PIA.) Prescribes another formula for computation of the PIA, based on the new bend point, for those becoming eligible after 2017. Amends the IRC to increase the FICA tax rates on a graduated basis beginning in 2017. Disregards any increase in monthly OASDI benefits as a result of this Act from income or resources for any month after December 2016 for the purpose of determining the eligibility of a recipient (or the recipient's spouse or family) for benefits or assistance, or the amount or extent of benefits or assistance, under any federal, state, or local program financed in whole or in part with federal funds.