(A) in clauses (i), (ii), and (iii), by insert-
ing ‘‘basic’’ before ‘‘average indexed monthly 
earnings’’ each place it appears; 
(B) in clause (ii), by striking ‘‘and’’ at the 
end; and 
(C) by inserting after clause (iii) the fol-
lowing new clauses: 
‘‘(iv) 3 percent of the individual’s surplus aver-
age indexed monthly earnings to the extent such 
surplus average indexed monthly earnings do not ex-
ceed the excess of the amount established for pur-
poses of this clause by subparagraph (B) over 1⁄12 
of the contribution and benefit base for the last of 
such individual’s computation base years, and 
‘‘(v) 0.25 percent of the sum of the individual’s 
surplus average indexed monthly earnings plus 1⁄12 
of the contribution and benefit base for the last of 
such individual’s computation base years, to the ex-
tent such sum exceeds the amount established for 
purposes of clause (iv) by subparagraph (B).’’. 
(2) BEND POINT FOR SURPLUS EARNINGS.— 
Section 215(a)(1)(B) of such Act (42 U.S.C. 
415(a)(1)(B)) is amended— 
(A) in clause (ii), by striking ‘‘the amounts 
so established’’ and inserting ‘‘the amounts es-
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tablished for purposes of clauses (i) and (ii) of 
subparagraph (A)’’; 
(B) by redesignating clause (iii) as clause 
(v); 
(C) in clause (v) (as redesignated), by in-
serting ‘‘or (iv)’’ after ‘‘clause (ii)’’; and 
(D) by inserting after clause (ii) the fol-
lowing new clauses: 
‘‘(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 
2023, the amount established for purposes of clause (iv) 
of subparagraph (A) shall be $8,933. 
‘‘(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 2023, the amount established for purposes of clause 
(iv) of subparagraph (A) shall equal the product of the 
amount established with respect to the calendar year 2023 
under clause (iii) of this subparagraph and the quotient 
obtained by dividing— 
‘‘(I)(aa) the national average wage index (as de-
fined in section 209(k)(1)) for the second calendar 
year preceding the calendar year for which the de-
termination is made, or 
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‘‘(bb) if higher (and if such second calendar 
year is after 2023), the highest national average 
wage index (as so defined) for any calendar year be-
fore such second calendar year, by 
‘‘(II) the national average wage index (as so de-
fined) for 2018.’’. 
(b) BASIC AIME AND SURPLUS AIME.— 
(1) BASIC
AIME.—Section 215(b)(1) of such 
Act (42 U.S.C. 415(b)(1)) is amended— 
(A) by inserting ‘‘basic’’ before ‘‘average’’; 
and 
(B) in subparagraph (A), by striking 
‘‘paragraph (3)’’ and inserting ‘‘paragraph 
(3)(A)’’ and by inserting before the comma the 
following: ‘‘to the extent such total does not ex-
ceed the contribution and benefit base for the 
applicable year’’. 
(2) SURPLUS AIME.— 
(A) IN
GENERAL.—Section 215(b)(1) of 
such Act (as amended by paragraph (1)) is 
amended— 
(i) by redesignating subparagraphs 
(A) and (B) as clauses (i) and (ii), respec-
tively; 
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(ii) by inserting ‘‘(A)’’ after ‘‘(b)(1)’’; 
and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(B)(i) An individual’s surplus average indexed 
monthly earnings shall be equal to the quotient obtained 
by dividing— 
‘‘(I) the total (after adjustment under para-
graph (3)(B)) of such individual’s surplus earnings 
(determined under clause (ii)) for such individual’s 
benefit computation years (determined under para-
graph (2)), by 
‘‘(II) the number of months in those years. 
‘‘(ii) For purposes of clause (i) and paragraph (3)(B), 
an individual’s surplus earnings for a benefit computation 
year are the total of such individual’s wages paid in and 
self-employment income credited to such benefit computa-
tion year, to the extent such total (before adjustment 
under paragraph (3)(B)) exceeds the contribution and 
benefit base for such year.’’. 
(B) 
CONFORMING
AMENDMENT.—The 
heading for section 215(b) of such Act is 
amended by striking ‘‘Average Indexed Monthly 
Earnings’’ and inserting ‘‘Basic Average In-
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dexed Monthly Earnings; Surplus Average In-
dexed Monthly Earnings’’. 
(3) ADJUSTMENT OF SURPLUS EARNINGS FOR 
PURPOSES OF DETERMINING SURPLUS AIME.—Sec-
tion 215(b)(3) of such Act (42 U.S.C. 415(b)(3)) is 
amended— 
(A) in subparagraph (A), by striking ‘‘sub-
paragraph (B)’’ and inserting ‘‘subparagraph 
(C)’’ and by inserting ‘‘and determination of 
basic average indexed monthly income’’ after 
‘‘paragraph (2)’’; 
(B) by redesignating subparagraph (B) as 
subparagraph (C); and 
(C) by inserting after subparagraph (A) 
the following new subparagraph: 
‘‘(B) For purposes of determining under paragraph 
(1)(B) an individual’s surplus average indexed monthly 
earnings, the individual’s surplus earnings (described in 
paragraph (2)(B)(ii)) for a benefit computation year shall 
be deemed to be equal to the product of— 
‘‘(i) the individual’s surplus earnings for such 
year (as determined without regard to this subpara-
graph), and 
‘‘(ii) the quotient described in subparagraph 
(A)(ii).’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to individuals who ini-
tially become eligible (within the meaning of section 
215(a)(3)(B) of the Social Security Act) for old-age or dis-
ability insurance benefits under title II of the Social Secu-
rity Act, or who die (before becoming eligible for such ben-
efits), in any calendar year after 2024. 
Æ 
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