Emergency Social Security Benefits Improvement Act

To protect our Social Security system and improve benefits for current and future generations. 1. Short title This Act may be cited as the Emergency Social Security Benefits Improvement Act 2. Table of contents The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. Sec. 3. Across-the-board benefit increase. Sec. 4. Increase in minimum benefit for lifetime low earners based on years in the workforce. Sec. 5. Increase in threshold amounts and rate for inclusion of Social Security benefits in income. Sec. 6. Extension of child’s benefit for full-time post-secondary school students under age 23. Sec. 7. Improving Social Security benefits for widows and widowers in two-income households. Sec. 8. Increasing access to benefits for children who live with grandparents or other relatives. Sec. 9. Holding SSI, Medicaid, and CHIP beneficiaries harmless. Sec. 10. Expedited adjustment of underpayments. Sec. 11. Appropriation of funds. 3. Across-the-board benefit increase (a) In general Section 215(a)(1)(A)(i) of the Social Security Act ( 42 U.S.C. 415(a)(1)(A)(i) 90 percent 93 percent (b) Effective date (1) In general The amendment made by subsection (a) shall apply with respect to monthly insurance benefits payable for months in calendar year 2020. (2) Recomputation of primary insurance amounts Notwithstanding section 215(f) of the Social Security Act, the Commissioner of Social Security shall recompute primary insurance amounts to the extent necessary— (A) to carry out the amendments made by this section; and (B) to account for the nonapplication of such amendments after calendar year 2020. (c) Rule of construction For purposes of applying subparagraphs (A) and (B) of section 215(i)(1) of the Social Security Act in any calendar year, nothing in this Act shall be considered a general benefit increase under title II of such Act. 4. Increase in minimum benefit for lifetime low earners based on years in the workforce (a) In general Section 215(a)(1) of the Social Security Act ( 42 U.S.C. 415(a)(1) (1) by redesignating subparagraph (D) as subparagraph (E); and (2) by inserting after subparagraph (C) the following new subparagraph: (D) (i) Effective with respect to monthly insurance benefits payable for months in calendar year 2020, no primary insurance amount computed under subparagraph (A) may be less than the greater of— (I) the minimum monthly amount computed under subparagraph (C); or (II) in the case of an individual who has more than 10 years of work (as defined in clause (iv)(I)), the alternative minimum amount determined under clause (ii). (ii) (I) The alternative minimum amount determined under this clause is the applicable percentage of 1/12 (II) For purposes of subclause (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 years The applicable of work is: percentage is: 11 6.25 percent 12 12.50 percent 13 18.75 percent 14 25.00 percent 15 31.25 percent 16 37.50 percent 17 43.75 percent 18 50.00 percent 19 56.25 percent 20 62.50 percent 21 68.75 percent 22 75.00 percent 23 81.25 percent 24 87.50 percent 25 93.75 percent 26 100.00 percent 27 106.25 percent 28 112.50 percent 29 118.75 percent 30 or more 125.00 percent. (iii) For purposes of this subparagraph— (I) the term year of work (II) the term poverty guideline for 2019 . (b) Recomputation of primary insurance amounts Notwithstanding section 215(f) of the Social Security Act, the Commissioner of Social Security shall recompute primary insurance amounts to the extent necessary— (1) to carry out the amendments made by this section; and (2) to account for the nonapplication of such amendments after calendar year 2020. (c) Conforming amendment Section 209(k)(1) of such Act ( 42 U.S.C. 409(k)(1) 215(a)(1)(E), 215(a)(1)(D), 5. Increase in threshold amounts and rate for inclusion of Social Security benefits in income (a) In general Subsection (a) of section 86 (a) In general Gross income for the taxable year of any taxpayer described in subsection (b) (notwithstanding section 207 of the Social Security Act) includes Social Security benefits in an amount equal to the lesser of— (1) 85 percent of the Social Security benefits received during the taxable year, or (2) one-half of the excess described in subsection (b)(1). . (b) Base amount Subsection (c) of section 86 of such Code is amended to read as follows: (c) Base amount For purposes of this section, the term base amount (1) except as otherwise provided in this paragraph, $35,000, (2) $50,000 in the case of a joint return, and (3) zero in the case of a taxpayer who— (A) is married as of the close of the taxable year (within the meaning of section 7703) but does not file a joint return for such year, and (B) does not live apart from his spouse at all times during the taxable year. . (c) Transfers to trust funds (1) Hospital Insurance Trust Fund held harmless Of the total revenue from taxation of social security benefits, there are appropriated to the Federal Hospital Insurance Trust Fund such amounts as would be transferred to such fund under section 121(e) of the Social Security Amendments of 1983 ( 42 U.S.C. 401 (2) Transfers to payor funds Of the balance of the total revenue from taxation of social security benefits remaining after appropriations under paragraph (1) have been made, there are appropriated to each payor fund amounts equivalent to the portion of such balance equal to a fraction— (A) the numerator of which is the amount equivalent to the net revenues received in the Treasury attributable to the application of sections 86 and 871(a)(3) of such Code to payments from such payor fund made in taxable years beginning during calendar year 2019; and (B) the denominator of which is the total revenue from taxation of social security benefits. (3) Transfers The amounts appropriated by paragraph (2) to any payor fund shall be transferred from time to time (but not less frequently than quarterly) from the general fund of the Treasury on the basis of estimates made by the Secretary of the Treasury of the amounts referred to in such paragraph. Any such quarterly payment shall be made on the first day of such quarter and shall take into account social security benefits estimated to be received during such quarter. Proper adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred. (4) Definitions For purposes of this subsection— (A) Total revenue from taxation of social security benefits The term total revenue from taxation of social security benefits (B) Payor fund The term payor fund (C) Social security benefits The term social security benefits section 86(d)(1) (5) Conforming rule Section 121(e) of the Social Security Amendments of 1983 ( 42 U.S.C. 401 (d) Effective date The amendments made by this section shall apply to taxable years beginning in calendar year 2019. 6. Extension of child’s benefit for full-time post-secondary school students under age 23 (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 22, (iii) was a full-time post-secondary school student and had not attained the age of 23, 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 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. (c) 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 20 U.S.C. 1002 . (d) Conforming amendments (1) Section 202(d)(1)(E) of such Act ( 42 U.S.C. 402(d)(1)(E) or a 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 a full-time post-secondary school student, (ii) the month in which the child attains the age of 22, but only if the child is not a full-time post-secondary school student during any part of such month, or (iii) the month in which the child attains the age of 23, . (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 a full-time post-secondary school student, (ii) the month in which the child attains the age of 22, but only if the child is not a full-time post-secondary school student during any part of such month, or (iii) the month in which the child attains the age of 23, . (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 22, (ii) is a full-time post-secondary school student and has not attained the age of 23, 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 a full-time post-secondary school student, (ii) the month in which the child attains the age of 22, but only if the child is not a full-time post-secondary school student during any part of such month, or (iii) the month in which the child attains the age of 23, 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 a full-time post-secondary school student, (ii) the month in which the child attains the age of 22, but only if the child is not a full-time post-secondary school student during any part of such month, or (iii) the month in which the child attains the age of 23. . (7) Section 202(d)(7)(D) of such Act ( 42 U.S.C. 402(d)(7)(D) (A) by striking A child who (i) A child who (B) by striking age 19 age 22 (C) by striking clause (i) of paragraph (1)(B) clause (ii) of paragraph (1)(B) (D) by adding at the end the following: (ii) A child who attains age 23 at a time when he is a full-time post-secondary school student (as defined in subparagraph (A) of this paragraph and without application of subparagraph (B) of such paragraph) but has not (at such time) completed the requirements for, or received, a diploma or equivalent certificate from a post-secondary educational institution (as defined in subparagraph (C)(iii)) shall be deemed (for purposes of determining whether his entitlement to benefits under this subsection has terminated under paragraph (1)(F) and for purposes of determining his initial entitlement to such benefits under clause (iii) of paragraph (1)(B)) not to have attained such age until the first day of the first month following the end of the quarter or semester in which he is enrolled at such time (or, if the post-secondary educational institution (as so defined) in which he is enrolled is not operated on a quarter or semester system, until the first day of the first month following the completion of the course in which he is so enrolled or until the first day of the third month beginning after such time, whichever first occurs). . (e) Effective date The amendments made by this section shall apply with respect to applications for child’s insurance benefits filed in calendar year 2020 and with respect to individuals entitled to such benefits during any month of such calendar year, except that such amendments shall not apply for purposes of determining continuing eligibility for child’s insurance benefits for any month after such calendar year. 7. Improving Social Security benefits for widows and widowers in two-income households (a) In general (1) Widows Section 202(e) of the Social Security Act ( 42 U.S.C. 402(e) (A) in paragraph (1)— (i) in subparagraph (B), by inserting and (ii) in subparagraph (C)(iii), by striking and (iii) by striking subparagraph (D); (iv) by redesignating subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively; and (v) in the flush matter following subparagraph (E)(ii), as so redesignated, by striking becomes entitled to an old-age insurance benefit such deceased individual, (B) by striking subparagraph (A) in paragraph (2) and inserting the following: (2) (A) Except as provided in subsection (k)(5), subsection (q), and subparagraph (D) of this paragraph, such widow’s insurance benefit for each month shall be equal to the greater of— (i) the primary insurance amount (as determined for purposes of this subsection after application of subparagraphs (B) and (C)) of such deceased individual, or (ii) subject to paragraph (9), in the case of a fully insured widow or surviving divorced wife, 75 percent of the sum of any old-age or disability insurance benefit for which the widow or the surviving divorced wife is entitled for such month and the primary insurance amount (as determined for purposes of this subsection after application of subparagraphs (B) and (C)) of such deceased individual. ; (C) in paragraph (5)— (i) in subparagraph (A), by striking paragraph (1)(F) paragraph (1)(E) (ii) in subparagraph (B), by striking paragraph (1)(F)(i) paragraph (1)(E)(i) (D) by adding at the end the following: (9) For purposes of paragraph (2)(A)(ii), the amount determined under such paragraph shall not exceed the primary insurance amount for such month of a hypothetical individual— (A) who became entitled to old-age insurance benefits upon attaining early retirement age during the month in which the deceased individual referred to in paragraph (1) became entitled to old-age or disability insurance benefits, or died (before becoming entitled to such benefits), and (B) to whom wages and self-employment income were credited in each of such hypothetical individual’s elapsed years (within the meaning of section 215(b)(2)(B)(iii)) in an amount equal to the national average wage index (as described in section 209(k)(1)) for each such year. . (2) Widowers Section 202(f) of the Social Security Act ( 42 U.S.C. 402(f) (A) in paragraph (1)— (i) in subparagraph (B), by inserting and (ii) in subparagraph (C)(iii), by striking and (iii) by striking subparagraph (D); (iv) by redesignating subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively; and (v) in the flush matter following subparagraph (E)(ii), as so redesignated, by striking or becomes entitled to an old-age insurance benefit such deceased individual, (B) by striking subparagraph (A) in paragraph (2) and inserting the following: (2) (A) Except as provided in subsection (k)(5), subsection (q), and subparagraph (D) of this paragraph, such widower’s insurance benefit for each month shall be equal to the greater of— (i) the primary insurance amount (as determined for purposes of this subsection after application of subparagraphs (B) and (C)) of such deceased individual, or (ii) subject to paragraph (9), in the case of a fully insured widower or surviving divorced husband, 75 percent of the sum of any old-age or disability insurance benefit for which the widower or the surviving divorced husband is entitled for such month and the primary insurance amount (as determined for purposes of this subsection after application of subparagraphs (B) and (C)) of such deceased individual. ; (C) in paragraph (5)— (i) in subparagraph (A), by striking paragraph (1)(F) paragraph (1)(E) (ii) in subparagraph (B), by striking paragraph (1)(F)(i) paragraph (1)(E)(i) (D) by adding at the end the following: (9) For purposes of paragraph (2)(A)(ii), the amount determined under such paragraph shall not exceed the primary insurance amount for such month of a hypothetical individual— (A) who became entitled to old-age insurance benefits upon attaining early retirement age during the month in which the deceased individual referred to in paragraph (1) became entitled to old-age or disability insurance benefits, or died (before becoming entitled to such benefits), and (B) to whom wages and self-employment income were credited in each of such hypothetical individual’s elapsed years (within the meaning of section 215(b)(2)(B)(iii)) in an amount equal to the national average wage index (as described in section 209(k)(1)) for each such year. . (b) Conforming amendment Section 209(k)(1) of the Social Security Act ( 42 U.S.C. 409(k)(1) 202(e)(9), 202(f)(9), sections (c) Effective date The amendments made by this section shall apply only with respect to widow’s and widower’s insurance benefits payable for months in calendar year 2020. 8. Increasing access to benefits for children who live with grandparents or other relatives (a) In general Title II of the Social Security Act ( 42 U.S.C. 401 (1) in section 202(d)— (A) in paragraph (1)(C), by inserting except as provided in paragraph (9), was dependent (B) by amending paragraph (9) to read as follows: (9) (A) In the case of a child who is the child of an individual under clause (3) of the first sentence of section 216(e) and is not a child of such individual under clause (1) or (2) of such first sentence, the criteria specified in subparagraph (B) shall apply instead of the criteria specified in subparagraph (C) of paragraph (1). (B) The criteria of this subparagraph are that— (i) the child has been living with such individual in the United States for a period of not less than 12 months; (ii) the child has been receiving not less than ½ of the child's support from such individual for a period of not less than 12 months; and (iii) the period during which the child was living with such individual began before the child attained age 18. (C) In the case of a child who is less than 12 months old, such child shall be deemed to meet the requirements of subparagraph (B) if, on the date the child attains 1 year of age, such child has lived with such individual in the United States and received at least ½ of the child's support from such individual for substantially all of the period which began on the date of such child's birth. ; and (2) in section 216(e), in the first sentence— (A) by striking grandchild or stepgrandchild of an individual or his spouse grandchild, stepgrandchild, or other first-degree, second-degree, third-degree, fourth-degree, or fifth-degree relative of an individual or the individual's spouse (B) by striking was no natural or adoptive parent is no living natural or adoptive parent (C) by striking was under a disability is under a disability (D) by striking living at the time , or (B) , (B) (E) by inserting , or (C) a court of competent jurisdiction has issued an order granting custody of such person to the individual or the individual’s spouse (b) Conforming amendments Section 202(d)(1) of the Social Security Act ( 42 U.S.C. 402(d)(1) (1) by striking subparagraphs (A), (B), and (C) subparagraphs (A) and (B) and subparagraph (C) or paragraph (9) (as applicable) (2) by striking subparagraphs (B) and (C) subparagraph (B) and subparagraph (C) or paragraph (9) (as applicable) (c) Effective date The amendments made by this section shall apply with respect to applications for child’s insurance benefits filed in calendar year 2020, except that such amendments shall not apply for purposes of determining continuing eligibility for child’s insurance benefits for any month after such calendar year. 9. Holding SSI, Medicaid, and CHIP beneficiaries harmless For purposes of determining the income of an individual to establish eligibility for, and the amount of, benefits payable under title XVI of the Social Security Act, eligibility for medical assistance under the State plan under title XIX (or a waiver of such plan), or eligibility for child health assistance under the State child health plan under title XXI (or a waiver of the plan), the amount of any benefit to which the individual is entitled under title II of such Act shall be deemed not to exceed the amount of the benefit that would be determined for such individual under such title as in effect on the day before the date of the enactment of this Act. 10. Expedited adjustment of underpayments In any case in which, as a result of a provision of this Act or an amendment made by this Act, the Commissioner determines that an underpayment of benefits has occurred, the Commissioner shall pay the balance of the amount due as soon as practicable after the date of enactment of this Act. 11. Appropriation of funds There are appropriated from the general fund of the Treasury to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund such sums as necessary to pay for the benefit increases attributable to the this Act and the amendments made by such Act.

Summary: Emergency Social Security Benefits Improvement Act This bill makes changes to Old-Age, Survivors, and Disability Insurance (OASDI) benefits, including by (1) modifying funding formulas, (2) extending eligibility for certain benefits, and (3) increasing income thresholds used to determine the percentage of OASDI benefits subject to federal income tax. Changes to funding formulas include (1) increasing the primary insurance amount, and (2) establishing new methods to calculate benefits for individuals with lifetime low earnings and for widows and widowers. In addition, children of a deceased, disabled, or retired worker remain eligible for benefits through age 22 if they are full-time students. Under current law, they receive benefits through age 18. The bill also extends dependent child benefits to specified family members other than grandparents or step-grandparents, including in cases where a court grants custody of the dependent child to an eligible family member. To receive benefits under current law, either both parents must be disabled or deceased or a grandparent or step-grandparent must legally adopt the dependent child.