I
104TH CONGRESS
1ST SESSION
H. R. 573
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 15-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 in-
creases in their benefits accordingly.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 19, 1995
Mr. CLEMENT 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 15-year period of transition to the changes in benefit
computation rules enacted in the Social Security Amend-
ments of 1977 (and related beneficiaries) and to provide
prospectively for increases in their benefits accordingly.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Social Security Notch
Act of 1995’’.
SEC. 2. NEW GUARANTEED MINIMUM PRIMARY INSUR-
ANCE AMOUNT WHERE ELIGIBILITY ARISES
DURING TRANSITIONAL PERIOD.
Section 215(a) of the Social Security Act (42 U.S.C.
415(a)) is amended—
(1) in paragraph (4)(B), by inserting ‘‘(with or
without the application of paragraph (8))’’ after
‘‘would be made’’; and
(2) by adding at the end the following:
‘‘(8)(A) In the case of an individual described in
paragraph (4)(B) (subject to subparagraph (F) of this
paragraph), the amount of the individual’s primary insur-
ance amount as computed or recomputed under paragraph
(1) shall be deemed equal to the sum of—
‘‘(i) such amount, and
‘‘(ii) the applicable transitional increase amount
(if any).
‘‘(B) For purposes of subparagraph (A)(ii), the term
‘applicable transitional increase amount’ means, in the
case 
of 
any 
individual, 
the 
product 
derived 
by
multiplying—
‘‘(i) the difference under old law, by
‘‘(ii) the applicable percentage of the difference
under old law to be added under subparagraph (A),
as determined, in relation to the year in which the
individual becomes eligible for old-age insurance ben-
efits, by the following table:
‘‘If the individual
The percentage of
becomes eligible for
the difference under
such benefits in:
old law to be added is:
1979 ..........................................................................
70 percent
1980 ..........................................................................
45 percent
1981 ..........................................................................
40 percent
1982 ..........................................................................
35 percent
1983 ..........................................................................
35 percent
1984 ..........................................................................
35 percent
1985 ..........................................................................
30 percent
1986 ..........................................................................
30 percent
1987 ..........................................................................
25 percent
1988 ..........................................................................
25 percent
1989 ..........................................................................
20 percent
1990 ..........................................................................
20 percent
1991 ..........................................................................
15 percent
1992 ..........................................................................
15 percent
1993 ..........................................................................
10 percent.
‘‘(C) For purposes of subparagraph (B), the term
‘difference under old law’ means, in the case of any indi-
vidual, the excess of—
‘‘(i) the applicable old law primary insurance
amount, over
‘‘(ii) the amount which would be such individ-
ual’s primary insurance amount if computed or re-
computed under this section without regard to this
paragraph and paragraphs (4), (5), and (6).
‘‘(D) For purposes of subparagraph (C)(i), the term
‘applicable old law primary insurance amount’ means, in
the case of any individual, the amount which would be
such individual’s primary insurance amount if it were—
‘‘(i) computed or recomputed (pursuant to
paragraph (4)(B)(i)) under section 215(a) as in ef-
fect in December 1978, or
‘‘(ii) computed or recomputed (pursuant to
paragraph (4)(B)(ii)) as provided by subsection (d),
(as applicable) and modified as provided by subparagraph
(E).
‘‘(E) In determining the amount which would be an
individual’s primary insurance amount as provided in sub-
paragraph (D)—
‘‘(i) subsection (b)(4) shall not apply;
‘‘(ii) section 215(b) as in effect in December
1978 shall apply, except that section 215(b)(2)(C)
(as then in effect) shall be deemed to provide that
an individual’s ‘computation base years’ may include
only calendar years in the period after 1950 (or
1936 if applicable) and ending with the calendar
year in which such individual attains age 61, plus
the 3 calendar years after such period for which the
total of such individual’s wages and self-employment
income is the largest; and
‘‘(iii) subdivision (I) in the last sentence of
paragraph (4) shall be applied as though the words
‘without regard to any increases in that table’ in
such subdivision read ‘including any increases in
that table’.
‘‘(F) This paragraph shall apply in the case of any
individual only if such application results in a primary in-
surance amount for such individual that is greater than
it would be if computed or recomputed under paragraph
(4)(B) without regard to this paragraph.’’.
SEC. 3. EFFECTIVE DATE AND RELATED RULES.
(a) APPLICABILITY OF AMENDMENTS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this Act shall
be effective as though they had been included or re-
flected in section 201 of the Social Security Amend-
ments of 1977.
(2) PROSPECTIVE APPLICABILITY.—No monthly
benefit or primary insurance amount under title II
of the Social Security Act shall be increased by rea-
son of such amendments for any month before the
month in which this Act is enacted.
(b) RECOMPUTATION TO REFLECT BENEFIT IN-
CREASES.—In any case in which an individual is entitled
to monthly insurance benefits under title II of the Social
Security Act for the month before the month in which this
Act is enacted, if such benefits are based on a primary
insurance amount computed—
(1) under section 215 of such Act as in effect
(by reason of the Social Security Amendments of
1977) after December 1978, or
(2) under section 215 of such Act as in effect
prior to January 1979 by reason of subsection
(a)(4)(B) of such section (as amended by the Social
Security Amendments of 1977),
the Secretary of Health and Human Services (notwith-
standing section 215(f)(1) of the Social Security Act) shall
recompute such primary insurance amount so as to take
into account the amendments made by this Act.
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