I 
113TH CONGRESS 
1ST SESSION H. R. 3118 
To improve the retirement security of American families by strengthening 
Social Security. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 17, 2013 
Ms. LINDA T. SA´NCHEZ of California (for herself, Mr. HOLT, Mr. HONDA, 
Mr. DEFAZIO, Mr. NADLER, Mr. BRADY of Pennsylvania, Mr. CART-
WRIGHT, Mr. CONYERS, Mr. VEASEY, Ms. BROWN of Florida, Ms. SCHA-
KOWSKY, Mr. GRIJALVA, Ms. SHEA-PORTER, Mr. MCDERMOTT, Ms. LEE 
of California, Ms. NORTON, Mrs. NEGRETE MCLEOD, Ms. FUDGE, Mr. 
GRAYSON, Mr. GENE GREEN of Texas, Mr. ELLISON, Mrs. NAPOLITANO, 
Mr. TAKANO, Mr. TONKO, Mr. VARGAS, Mr. COHEN, Mr. LOWENTHAL, 
and Ms. EDDIE BERNICE JOHNSON of Texas) introduced the following 
bill; which was referred to the Committee on Ways and Means, and in 
addition to the Committee on Education and the Workforce, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To improve the retirement security of American families by 
strengthening Social Security. 
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 ‘‘Strengthening Social 
Security Act of 2013’’. 
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SEC. 2. DETERMINATION OF TAXABLE WAGES AND SELF- 
EMPLOYMENT INCOME ABOVE CONTRIBU-
TION AND BENEFIT BASE AFTER 2013. 
(a) DETERMINATION OF TAXABLE WAGES ABOVE 
CONTRIBUTION AND BENEFIT BASE AFTER 2013.— 
(1) AMENDMENTS TO THE INTERNAL REVENUE 
CODE OF 1986.—Section 3121 of the Internal Rev-
enue Code of 1986 is amended— 
(A) in subsection (a)(1), by inserting ‘‘the 
applicable percentage (determined under sub-
section (c)(1)) of’’ before ‘‘that part of the re-
muneration’’; and 
(B) in subsection (c), by striking ‘‘(c) IN-
CLUDED AND EXCLUDED SERVICE.—For pur-
poses of this chapter, if’’ and inserting the fol-
lowing: 
‘‘(c) SPECIAL RULES
FOR WAGES
AND EMPLOY-
MENT.— 
‘‘(1) APPLICABLE PERCENTAGE OF REMUNERA-
TION IN DETERMINING TAXABLE WAGES.—For pur-
poses of subsection (a)(1), the applicable percentage 
for a calendar year shall be equal to— 
‘‘(A) for 2014, 80 percent; 
‘‘(B) for 2015 through 2017, the applica-
ble percentage under this paragraph for the 
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previous year, decreased by 20 percentage 
points; and 
‘‘(C) for 2018 and each year thereafter, 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) is amended— 
(A) in subsection (a)(1)(I)— 
(i) by inserting ‘‘and before 2014’’ 
after ‘‘1974’’; and 
(ii) by inserting ‘‘and’’ after the semi-
colon; 
(B) in subsection (a)(1), by adding at the 
end the following new subparagraph: 
‘‘(J) The applicable percentage (deter-
mined under subsection (l)) of that part of re-
muneration which, after remuneration (other 
than remuneration referred to in the succeeding 
subsections of this section) equal to the con-
tribution and benefit base (determined under 
section 230) with respect to employment has 
been paid to an individual during any calendar 
year after 2013 with respect to which such con-
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tribution 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 applica-
ble percentage for a calendar year shall be equal to— 
‘‘(1) for 2014, 80 percent; 
‘‘(2) for 2015 through 2017, the applicable per-
centage under this subsection for the previous year, 
decreased by 20 percentage points; and 
‘‘(3) for 2018 and each year thereafter, 0 per-
cent.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply with respect to remu-
neration paid in calendar years after 2013. 
(b) DETERMINATION OF TAXABLE SELF-EMPLOY-
MENT INCOME ABOVE CONTRIBUTION
AND BENEFIT 
BASE AFTER 2013.— 
(1) AMENDMENTS TO THE INTERNAL REVENUE 
CODE OF 1986.—Section 1402 of the Internal Rev-
enue Code of 1986 is amended— 
(A) in subsection (b)(1), by striking ‘‘that 
part of the net earnings’’ and all that follows 
through ‘‘minus’’ and inserting the following: 
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‘‘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 deter-
mined under section 230 of the Social Security 
Act) which is effective for the calendar year in 
which such taxable year begins, and’’; and 
(B) in subsection (d)— 
(i) by striking ‘‘(d) EMPLOYEE AND 
WAGES.—The term’’ and inserting the fol-
lowing: 
‘‘(d) RULES AND DEFINITIONS.— 
‘‘(1) EMPLOYEE AND WAGES.—The term’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(2) APPLICABLE PERCENTAGE OF NET EARN-
INGS
FROM
SELF-EMPLOYMENT
IN
DETERMINING 
TAXABLE
SELF-EMPLOYMENT
INCOME.—For pur-
poses of subsection (b)(1), the applicable percentage 
for a taxable year beginning in any calendar year re-
ferred to in such paragraph shall be equal to— 
‘‘(A) for 2014, 80 percent; 
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‘‘(B) for 2015 through 2017, the applica-
ble percentage under this paragraph for the 
previous year, decreased by 20 percentage 
points; and 
‘‘(C) for 2018 and each year thereafter, 0 
percent.’’. 
(2) AMENDMENTS
TO
THE
SOCIAL
SECURITY 
ACT.—Section 211 of the Social Security Act (42 
U.S.C. 411) is amended— 
(A) in subsection (b)— 
(i) in paragraph (1)(I)— 
(I) by striking ‘‘or’’ after the 
semicolon; and 
(II) by inserting ‘‘and before 
2014’’ after ‘‘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 cal-
endar year after 2013, an amount equal to the appli-
cable percentage (as determined under subsection 
(l)) of that part of net earnings from self-employ-
ment which is in excess of the difference (not to be 
less than zero) between— 
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‘‘(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 equal to— 
‘‘(1) for 2014, 80 percent; 
‘‘(2) for 2015 through 2017, the applicable per-
centage under this subsection for the previous year, 
decreased by 20 percentage points; and 
‘‘(3) for 2018 and each year thereafter, 0 per-
cent.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply with respect to taxable 
years beginning during or after calendar year 2014. 
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SEC. 3. ADJUSTMENTS TO BEND POINTS IN DETERMINING 
PRIMARY INSURANCE AMOUNT AND INCLU-
SION OF SURPLUS EARNINGS FOR BENEFIT 
DETERMINATIONS. 
(a) INCLUSION
OF SURPLUS AVERAGE INDEXED 
MONTHLY EARNINGS IN DETERMINATION OF PRIMARY 
INSURANCE AMOUNTS.— 
(1) IN GENERAL.—Section 215(a)(1)(A) of the 
Social Security Act (42 U.S.C. 415(a)(1)(A)) is 
amended— 
(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; 
(C) in clause (iii), by adding ‘‘and’’ at the 
end; and 
(D) by inserting after clause (iii) the fol-
lowing new clause: 
‘‘(iv) 5 percent of the individual’s surplus aver-
age indexed monthly earnings,’’. 
(2) 
BEND
POINT
ADJUSTMENT.—Section 
215(a)(1)(B) of such Act (42 U.S.C. 415(a)(1)(B)) 
is amended— 
(A) by redesignating clause (iii) as clause 
(iv); and 
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(B) by inserting after clause (ii) the fol-
lowing new clause: 
‘‘(iii) For individuals who initially become eligi-
ble for old-age or disability insurance benefits, or 
who die (before becoming eligible for such benefits) 
in any calendar year after 2018, the amount deter-
mined under clause (i) of this subparagraph for pur-
poses of subparagraph (A)(i) for such calendar year 
shall be increased by— 
‘‘(I) for calendar year 2019, 1 percent; 
‘‘(II) for each of calendar years 2020 
through 2032, the percent determined under 
this clause for the preceding year increased by 
1 percentage point; and 
‘‘(III) for calendar year 2033 and each 
year thereafter, 15 percent.’’. 
(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-
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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; 
(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 
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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-
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 
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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).’’. 
(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 2018. 
SEC. 4. CONSUMER PRICE INDEX FOR ELDERLY CON-
SUMERS. 
(a) IN GENERAL.—The Bureau of Labor Statistics 
of the Department of Labor shall prepare and publish an 
index for each calendar month to be known as the ‘‘Con-
sumer Price Index for Elderly Consumers’’ that indicates 
changes over time in expenditures for consumption which 
are typical for individuals in the United States who have 
attained early retirement age (as defined under section 
216(l)(2) of the Social Security Act (42 U.S.C. 416(l)(2)) 
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for purposes of an old-age, wife’s, or husband’s insurance 
benefit). 
(b) EFFECTIVE DATE.—Subsection (a) shall apply 
with respect to calendar months ending on or after June 
30 of the calendar year in which this Act is enacted. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out the provisions of this section. 
SEC. 5. COMPUTATION OF COST-OF-LIVING INCREASES FOR 
SOCIAL SECURITY BENEFITS. 
(a) IN GENERAL.—Section 215(i) of the Social Secu-
rity Act (42 U.S.C. 415(i)) is amended— 
(1) in paragraph (1)(G), by inserting before the 
period the following: ‘‘, and, with respect to any 
monthly insurance benefit payable under this title, 
effective for adjustments under this subsection to 
the primary insurance amount on which such benefit 
is based (or to any such benefit under section 227 
or 228), the applicable Consumer Price Index shall 
be deemed to be the Consumer Price Index for El-
derly Consumers and such primary insurance 
amount shall be deemed adjusted under this sub-
section using such Index’’; and 
(2) in paragraph (4), by striking ‘‘and by sec-
tion 9001’’ and inserting ‘‘, by section 9001’’, and 
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by inserting after ‘‘1986,’’ the following: ‘‘and by 
section 5(a) of the Strengthening Social Security Act 
of 2013,’’. 
(b) CONFORMING
AMENDMENTS
IN
APPLICABLE 
FORMER LAW.—Section 215(i)(1)(C) of the Social Secu-
rity Act, as in effect in December 1978 and applied in 
certain cases under the provisions of such Act in effect 
after December 1978, is amended by inserting before the 
period the following: ‘‘, and, with respect to any monthly 
insurance benefit payable under this title, effective for ad-
justments under this subsection to the primary insurance 
amount on which such benefit is based (or to any such 
benefit under section 227 or 228), the applicable Con-
sumer Price Index shall be deemed to be the Consumer 
Price Index for Elderly Consumers and such primary in-
surance amount shall be deemed adjusted under this sub-
section using such Index’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to determinations made by the 
Commissioner of Social Security under section 215(i)(2) 
of the Social Security Act (42 U.S.C. 415(i)(2)) with re-
spect to cost-of-living computation quarters ending on or 
after September 30, 2014. 
Æ 
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