SEC. 305. COMMUNICATION RELATING TO REPORTING RE-
QUIREMENTS. 
The Commissioner of Social Security shall ensure 
that each communication from the Social Security Admin-
istration made to an individual entitled to disability insur-
ance benefits includes a description of the individual’s re-
sponsibility to report to the Commissioner of Social Secu-
rity any change of circumstance that may affect the indi-
vidual’s entitlement to such benefits. 
TITLE IV—BENEFITS 
SEC. 401. ESTABLISHMENT OF ANNUAL POVERTY GUIDE-
LINE BASED DISABILITY INSURANCE BENE-
FITS. 
(a) IN GENERAL.—Section 223(a) of the Social Secu-
rity Act (42 U.S.C. 423(a)(2)) is amended by inserting 
after paragraph (2) the following new paragraph: 
‘‘(3) In the case of an individual who initially 
becomes entitled to disability benefits in the calendar 
year 2019 or any subsequent calendar year, and ex-
cept as provided in section 202(q) of this title, such 
individual’s disability insurance benefit for any 
month shall be one-twelfth of the most recently pub-
lished annual poverty guideline for an individual (as 
updated annually in the Fed. Reg. by the Depart-
ment of Health and Human Services under the au-
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thority of section 673(2) of the Omnibus Budget 
Reconciliation Act of 1981).’’. 
(b) EARLY RETIREMENT BENEFIT REDUCTION.— 
Section 202(q)(2) of the Social Security Act (42 U.S.C. 
423(a)(2)) is amended by striking subsection (q)(2) and 
replacing it with the following: 
‘‘(2) If an individual is entitled to a disability 
insurance benefit for a month after a month for 
which such individual was entitled to an old-age in-
surance benefit, such disability insurance benefit for 
each month shall be— 
‘‘(A) if such individual initially became en-
titled to disability benefits in any calendar year 
before 2019, reduced by the amount such old- 
age insurance benefit would be reduced under 
paragraphs (1) and (4) for such month had 
such individual attained retirement age (as de-
fined in section 416(l) of this title) in the first 
month for which he most recently became enti-
tled to a disability insurance benefit; or 
‘‘(B) if such individual initially became en-
titled to disability benefits in the calendar year 
2019 or any subsequent calendar year, equal to 
the higher of the individual’s reduced old-age 
insurance benefit under paragraph (1) and the 
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individual’s disability insurance benefit under 
section 423(a)(3).’’. 
(c) CONFORMING AMENDMENT.—Section 223(a)(2) 
of the Social Security Act (42 U.S.C. 423(a)(2)) is amend-
ed by striking ‘‘Except’’ and inserting ‘‘In the case of an 
individual who initially becomes entitled for disability ben-
efits in any calendar year before 2019, and except’’. 
SEC. 402. RETROACTIVE PAYMENT OF BENEFITS. 
(a) IN GENERAL.—Section 223(b) of the Social Secu-
rity Act (42 U.S.C. 423(b)) is amended by striking ‘‘12th 
month’’ and inserting ‘‘6th month’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to applications for 
disability insurance benefits filed on or after January 1, 
2019. 
SEC. 403. INCLUSION OF UNEARNED INCOME IN DETER-
MINATION OF SUBSTANTIAL GAINFUL ACTIV-
ITY. 
(a) IN GENERAL.—Section 223(d)(4) of the Social 
Security Act (42 U.S.C. 423(d)(4)), as amended by sec-
tion 3(b), is further amended by adding at the end the 
following: 
‘‘(D)(i) If the amount of unearned income (as defined 
in section 1612) of an individual for a month is equal to 
or greater than the monthly income limit for such month, 
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the individual shall be deemed to have engaged in substan-
tial gainful activity for such month. 
‘‘(ii) For purposes of this subparagraph, the monthly 
income limit is the amount of earnings derived from serv-
ices, prescribed by the Commissioner under regulations 
issued pursuant to subparagraph (A), sufficient to dem-
onstrate an individual’s ability to engage in substantial 
gainful activity for a month.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to monthly insur-
ance benefits paid for months beginning after the date 
that is 1 year after the date of the enactment of this Act. 
Æ 
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