I 
112TH CONGRESS 
1ST SESSION 
H. R. 539 
To amend title II of the Social Security Act and the Internal Revenue 
Code of 1986 to make improvements in the old-age, survivors, and 
disability insurance program, to provide for cash relief for years for 
which annual COLAs do not take effect under certain cash benefit 
programs, and to provide for Social Security benefit protection. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 8, 2011 
Mr. DEUTCH (for himself, Mr. FRANK of Massachusetts, Mr. HASTINGS of 
Florida, Mr. CARNAHAN, Ms. PINGREE of Maine, and Mr. CRITZ) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means, and in addition to the Committees on Education and the 
Workforce, Rules, Transportation and Infrastructure, and Veterans’ Af-
fairs, for a period to be subsequently determined by the Speaker, in each 
case for consideration of such provisions as fall within the jurisdiction of 
the committee concerned 
A BILL 
To amend title II of the Social Security Act and the Internal 
Revenue Code of 1986 to make improvements in the 
old-age, survivors, and disability insurance program, to 
provide for cash relief for years for which annual COLAs 
do not take effect under certain cash benefit programs, 
and to provide for Social Security benefit protection. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may cited as the ‘‘Pre-
serving Our Promise to Seniors Act’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—COST-OF-LIVING INCREASES 
Sec. 101. Consumer price index for elderly consumers. 
Sec. 102. Computation of cost-of-living increases. 
TITLE II—GUARANTEED SUPPLEMENTAL PAYMENT 
Sec. 201. Relief payments to recipients of social security, supplemental security 
income, railroad retirement benefits, and veterans disability 
compensation or pension benefits. 
TITLE III—CONTRIBUTION AND BENEFIT FAIRNESS 
Sec. 301. Determination of wages and self-employment income above contribu-
tion and benefit base after 2011. 
Sec. 302. Inclusion of surplus earnings in social security benefit formula. 
TITLE IV—SOCIAL SECURITY BENEFIT PROTECTION 
Sec. 401. Point of order against privatization of Social Security or reductions 
in Social Security benefits. 
TITLE I—COST-OF-LIVING 
INCREASES 
SEC. 101. 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 are 
62 years of age or older. 
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(b) EFFECTIVE DATE.—Subsection (a) shall apply 
with respect to calendar months ending on or after July 
31 of the calendar year following 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. 102. COMPUTATION OF COST-OF-LIVING INCREASES. 
(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, solely with respect to 
any monthly insurance benefit payable under this 
title to an individual who has attained age 62, effec-
tive for adjustments under this subsection to the pri-
mary insurance amount on which such benefit is 
based (or to any such benefit under section 227 or 
228) occurring after such individual attains such 
age, the applicable Consumer Price Index shall be 
deemed to be the Consumer Price Index for Elderly 
Consumers and such primary insurance amount 
shall be deemed adjusted under this subsection 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 102 of the Preserving Our Promise to Sen-
iors Act,’’. 
(b) CONFORMING
AMENDMENTS
IN
APPLICABLE 
FORMER LAW.—Section 215(i)(1)(C) of such 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 fol-
lowing: ‘‘, and, solely with respect to any monthly insur-
ance benefit payable under this title to an individual who 
has attained age 62, 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) occurring after such individual attains such age, 
the applicable Consumer Price Index shall be deemed to 
be the Consumer Price Index for Elderly Consumers and 
such primary insurance amount shall be deemed adjusted 
under this subsection using such Index’’. 
(c) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to determinations made with re-
spect to cost-of-living computation quarters (as defined in 
section 215(i)(1)(B) of the Social Security Act (42 U.S.C. 
415(i)(1)(B))) ending on or after September 30 of the sec-
ond calendar year following the calendar year in which this 
Act is enacted. 
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TITLE II—GUARANTEED 
SUPPLEMENTAL PAYMENT 
SEC. 201. RELIEF PAYMENTS TO RECIPIENTS OF SOCIAL SE-
CURITY, SUPPLEMENTAL SECURITY INCOME, 
RAILROAD RETIREMENT BENEFITS, AND VET-
ERANS DISABILITY COMPENSATION OR PEN-
SION BENEFITS. 
(a) AUTHORITY TO MAKE PAYMENTS.— 
(1) ELIGIBILITY.— 
(A) IN GENERAL.—The Secretary of the 
Treasury shall disburse a cash payment equal 
to $250 (or such greater amount as may take 
effect under paragraph (2)), for each non- 
COLA year of a program providing benefit pay-
ments described in clause (i), (ii), or (iii) of 
subparagraph (C) or in subparagraph (D), to 
each individual who, for any month during such 
year, is entitled to such a benefit payment 
under such program. 
(B) NON-COLA
YEAR.—For purposes of 
this section, the term ‘‘non-COLA year’’ means, 
in connection with a program referred to in 
subparagraph (A), a 12-month period, ending 
with or during any calendar year after 2009, 
for which— 
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(i) a cost-of-living adjustment is gen-
erally provided under such program in re-
lation to an index; and 
(ii) such an adjustment does not take 
effect by reason of the performance of such 
index. 
(C) BENEFIT PAYMENT DESCRIBED.—For 
purposes of subparagraph (A): 
(i) TITLE II BENEFIT.—A benefit pay-
ment described in this clause is a monthly 
insurance benefit payable (without regard 
to sections 202(j)(1) and 223(b) of the So-
cial Security Act (42 U.S.C. 402(j)(1), 
423(b)) under— 
(I) section 202(a) of such Act 
(42 U.S.C. 402(a)); 
(II) section 202(b) of such Act 
(42 U.S.C. 402(b)); 
(III) section 202(c) of such Act 
(42 U.S.C. 402(c)); 
(IV) section 202(d)(1)(B)(ii) of 
such 
Act 
(42 
U.S.C. 
402(d)(1)(B)(ii)); 
(V) section 202(e) of such Act 
(42 U.S.C. 402(e)); 
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(VI) section 202(f) of such Act 
(42 U.S.C. 402(f)); 
(VII) section 202(g) of such Act 
(42 U.S.C. 402(g)); 
(VIII) section 202(h) of such Act 
(42 U.S.C. 402(h)); 
(IX) section 223(a) of such Act 
(42 U.S.C. 423(a)); 
(X) section 227 of such Act (42 
U.S.C. 427); or 
(XI) section 228 of such Act (42 
U.S.C. 428). 
(ii) RAILROAD
RETIREMENT
BEN-
EFIT.—A benefit payment described in this 
clause is a monthly annuity or pension 
payment payable (without regard to section 
5(a)(ii) of the Railroad Retirement Act of 
1974 (45 U.S.C. 231d(a)(ii))) under— 
(I) section 2(a)(1) of such Act 
(45 U.S.C. 231a(a)(1)); 
(II) section 2(c) of such Act (45 
U.S.C. 231a(c)); 
(III) section 2(d)(1)(i) of such 
Act (45 U.S.C. 231a(d)(1)(i)); 
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(IV) section 2(d)(1)(ii) of such 
Act (45 U.S.C. 231a(d)(1)(ii)); 
(V) section 2(d)(1)(iii)(C) of such 
Act to an adult disabled child (45 
U.S.C. 231a(d)(1)(iii)(C)); 
(VI) section 2(d)(1)(iv) of such 
Act (45 U.S.C. 231a(d)(1)(iv)); 
(VII) section 2(d)(1)(v) of such 
Act (45 U.S.C. 231a(d)(1)(v)); or 
(VIII) section 7(b)(2) of such Act 
(45 U.S.C. 231f(b)(2)) with respect to 
any of the benefit payments described 
in clause (i) of this subparagraph. 
(iii) VETERANS BENEFIT.—A benefit 
payment described in this clause is a com-
pensation or pension payment payable 
under— 
(I) section 1110, 1117, 1121, 
1131, 1141, or 1151 of title 38, 
United States Code; 
(II) section 1310, 1312, 1313, 
1315, 1316, or 1318 of title 38, 
United States Code; 
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(III) section 1513, 1521, 1533, 
1536, 1537, 1541, 1542, or 1562 of 
title 38, United States Code; or 
(IV) section 1805, 1815, or 1821 
of title 38, United States Code, 
to a veteran, surviving spouse, child, or 
parent as described in paragraph (2), (3), 
(4)(A)(ii), or (5) of section 101, title 38, 
United States Code, who received that ben-
efit during any month within the 3 month 
period ending with the month which ends 
prior to the month that includes the date 
of the enactment of this Act. 
(D) SSI CASH
BENEFIT
DESCRIBED.—A 
SSI cash benefit described in this subparagraph 
is a cash benefit payable under section 1611 
(other than under subsection (e)(1)(B) of such 
section) or 1619(a) of the Social Security Act 
(42 U.S.C. 1382, 1382h). 
(2) COST-OF-LIVING
ADJUSTMENT
TO
PAY-
MENT.— 
(A) IN GENERAL.—Effective for each 12- 
month period referred to in paragraph (1)(B)(i) 
in connection with a program referred to in 
paragraph (1)(A) (irrespective of whether such 
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period is a non-COLA year) ending with or dur-
ing a calendar year after 2011, the dollar 
amount determined under this paragraph shall 
be substituted for the dollar amount specified in 
paragraph (1)(A). The dollar amount shall be 
determined by multiplying the dollar amount 
specified in paragraph (1)(A) by the quotient 
obtained by dividing— 
(i) the Consumer Price Index for El-
derly Consumers (published by the Bureau 
of Labor Statistics of the Department of 
Labor) for the calendar quarter ending 
with September preceding the 12-month 
period for which the determination is 
made, by 
(ii) such Index for the calendar quar-
ter ending with September 2010. 
(B) 
DETERMINATION
OF
QUARTERLY 
INDEX.—For purposes of subparagraph (A), the 
Consumer Price Index for Elderly Consumers 
for a calendar quarter shall be the arithmetical 
mean of such index for the 3 months in such 
quarter. 
(3) REQUIREMENT.—A payment shall be made 
under paragraph (1) only to individuals who reside 
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in 1 of the 50 States, the District of Columbia, 
Puerto Rico, Guam, the United States Virgin Is-
lands, American Samoa, or the Northern Mariana 
Islands. For purposes of the preceding sentence, the 
determination of the individual’s residence shall be 
based on the current address of record under a pro-
gram specified in paragraph (1). 
(4) NO
DOUBLE
PAYMENTS.—An individual 
shall be paid only 1 payment under this section, re-
gardless of whether the individual is entitled to, or 
eligible for, more than 1 benefit or cash payment de-
scribed in paragraph (1). 
(5) LIMITATION.—A payment under this section 
shall not be made— 
(A) in the case of an individual entitled to 
a benefit specified in paragraph (1)(C)(i) or 
paragraph (1)(C)(ii)(VIII) if, for the most re-
cent month of such individual’s entitlement in 
the 3-month period described in paragraph (1), 
such individual’s benefit under such paragraph 
was not payable by reason of subsection (x) or 
(y) of section 202 of the Social Security Act (42 
U.S.C. 402) or section 1129A of such Act (42 
U.S.C. 1320a–8a); 
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(B) in the case of an individual entitled to 
a benefit specified in paragraph (1)(C)(iii) if, 
for the most recent month of such individual’s 
entitlement in the 3 month period described in 
paragraph (1), such individual’s benefit under 
such paragraph was not payable, or was re-
duced, by reason of section 1505, 5313, or 
5313B of title 38, United States Code; 
(C) in the case of an individual entitled to 
a benefit specified in paragraph (1)(D) if, for 
such most recent month, such individual’s ben-
efit under such paragraph was not payable by 
reason of subsection (e)(1)(A) or (e)(4) of sec-
tion 1611 (42 U.S.C. 1382) or section 1129A 
of such Act (42 U.S.C. 1320a–8a); or 
(D) in the case of any individual whose 
date of death occurs before the date on which 
the individual is certified under subsection (b) 
to receive a payment under this section. 
(6) TIMING AND MANNER OF PAYMENTS.—The 
Secretary of the Treasury shall commence disbursing 
payments under this section with respect to a non- 
COLA year at the earliest practicable date but in no 
event later than 120 days after the later of the date 
of the enactment of this Act or the end of such non- 
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COLA year. The Secretary of the Treasury may dis-
burse any payment electronically to an individual in 
such manner as if such payment was a benefit pay-
ment or cash benefit to such individual under the 
applicable program described in subparagraph (C) or 
(D) of paragraph (1). 
(b) IDENTIFICATION OF RECIPIENTS.—The Commis-
sioner of Social Security, the Railroad Retirement Board, 
and the Secretary of Veterans Affairs shall certify the in-
dividuals entitled to receive payments under this section 
and provide the Secretary of the Treasury with the infor-
mation needed to disburse such payments. A certification 
of an individual shall be unaffected by any subsequent de-
termination or redetermination of the individual’s entitle-
ment to, or eligibility for, a benefit specified in subpara-
graph (C) or (D) of subsection (a)(1). 
(c) TREATMENT OF PAYMENTS.— 
(1) PAYMENT TO BE DISREGARDED FOR PUR-
POSES OF ALL FEDERAL AND FEDERALLY ASSISTED 
PROGRAMS.—A payment under subsection (a) shall 
not be regarded as income and shall not be regarded 
as a resource for the month of receipt and the fol-
lowing 9 months, for purposes of determining the 
eligibility of the recipient (or the recipient’s spouse 
or family) for benefits or assistance, or the amount 
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or extent of benefits or assistance, under any Fed-
eral program or under any State or local program fi-
nanced in whole or in part with Federal funds. 
(2) PAYMENT NOT CONSIDERED INCOME FOR 
PURPOSES OF TAXATION.—A payment under sub-
section (a) shall not be considered as gross income 
for purposes of the Internal Revenue Code of 1986. 
(3) PAYMENTS
PROTECTED
FROM
ASSIGN-
MENT.—The 
provisions 
of 
sections 
207 
and 
1631(d)(1) of the Social Security Act (42 U.S.C. 
407, 1383(d)(1)), section 14(a) of the Railroad Re-
tirement Act of 1974 (45 U.S.C. 231m(a)), and sec-
tion 5301 of title 38, United States Code, shall 
apply to any payment made under subsection (a) as 
if such payment was a benefit payment or cash ben-
efit to such individual under the applicable program 
described in subparagraph (C) or (D) of subsection 
(a)(1). 
(4) PAYMENTS SUBJECT TO OFFSET.—Notwith-
standing paragraph (3), for purposes of section 
3716 of title 31, United States Code, any payment 
made under this section shall not be considered a 
benefit payment or cash benefit made under the ap-
plicable program described in subparagraph (C) or 
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(D) of subsection (a)(1) and all amounts paid shall 
be subject to offset to collect delinquent debts. 
(d) PAYMENT TO REPRESENTATIVE PAYEES AND FI-
DUCIARIES.— 
(1) IN GENERAL.—In any case in which an in-
dividual who is entitled to a payment under sub-
section (a) and whose benefit payment or cash ben-
efit described in paragraph (1) of that subsection is 
paid to a representative payee or fiduciary, the pay-
ment under subsection (a) shall be made to the indi-
vidual’s representative payee or fiduciary and the en-
tire payment shall be used only for the benefit of the 
individual who is entitled to the payment. 
(2) APPLICABILITY.— 
(A) PAYMENT ON THE BASIS OF A TITLE 
II OR SSI BENEFIT.—Section 1129(a)(3) of the 
Social Security Act (42 U.S.C. 1320a–8(a)(3)) 
shall apply to any payment made on the basis 
of an entitlement to a benefit specified in para-
graph (1)(C)(i) or (1)(D) of subsection (a) in 
the same manner as such section applies to a 
payment under title II or XVI of such Act. 
(B) PAYMENT ON THE BASIS OF A RAIL-
ROAD
RETIREMENT
BENEFIT.—Section 13 of 
the Railroad Retirement Act (45 U.S.C. 231l) 
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shall apply to any payment made on the basis 
of an entitlement to a benefit specified in para-
graph (1)(C)(ii) of subsection (a) in the same 
manner as such section applies to a payment 
under such Act. 
(C) PAYMENT ON THE BASIS OF A VET-
ERANS
BENEFIT.—Sections 5502, 6106, and 
6108 of title 38, United States Code, shall 
apply to any payment made on the basis of an 
entitlement to a benefit specified in paragraph 
(1)(C)(iii) of subsection (a) in the same manner 
as those sections apply to a payment under that 
title. 
(e) APPROPRIATION.—Out of any sums in the Treas-
ury of the United States not otherwise appropriated, the 
following sums are appropriated for each fiscal year begin-
ning on or after October 1, 2011, to remain available until 
expended, to carry out this section: 
(1) For the Secretary of the Treasury, such 
sums as may be necessary for administrative costs 
incurred in carrying out this section. 
(2) For the Commissioner of Social Security— 
(A) such sums as may be necessary for 
payments to individuals certified by the Com-
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missioner of Social Security as entitled to re-
ceive a payment under this section; and 
(B) such sums as may be certified by the 
Commissioner to the Secretary of the Treasury 
for the Social Security Administration’s Limita-
tion on Administrative Expenses as necessary 
for administrative costs incurred in carrying out 
this section. 
(3) For the Railroad Retirement Board— 
(A) such sums as may be necessary for 
payments to individuals certified by the Rail-
road Retirement Board as entitled to receive a 
payment under this section; and 
(B) such sums as may be certified by the 
Board to the Secretary of the Treasury for the 
Railroad Retirement Board’s Limitation on Ad-
ministration as necessary for administrative 
costs incurred in carrying out this section. 
(4)(A) For the Secretary of Veterans Affairs— 
(i) such sums as may be necessary for 
the Compensation and Pensions account, 
for payments to individuals certified by the 
Secretary of Veterans Affairs as entitled to 
receive a payment under this section; and 
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(ii) such sums as may be certified by 
the Secretary of Veterans Affairs to the 
Secretary of the Treasury for the Informa-
tion Systems Technology account and for 
the General Operating Expenses account 
as necessary for administrative costs in-
curred in carrying out this section. 
(B) The Department of Veterans Affairs Com-
pensation and Pensions account shall hereinafter be 
available for payments authorized under subsection 
(a)(1)(A) to individuals entitled to a benefit payment 
described in subsection (a)(1)(C)(iii). 
TITLE III—CONTRIBUTION AND 
BENEFIT FAIRNESS 
SEC. 301. DETERMINATION OF WAGES AND SELF-EMPLOY-
MENT INCOME ABOVE CONTRIBUTION AND 
BENEFIT BASE AFTER 2011. 
(a) DETERMINATION OF WAGES ABOVE CONTRIBU-
TION AND BENEFIT BASE AFTER 2011.— 
(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-
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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
WAGES.—For purposes of 
paragraph (1) of subsection (a), the applicable per-
centage for a calendar year, in connection with any 
calendar year referred to in such subparagraph, 
shall be the percentage determined in accordance 
with the following table: 
‘‘In the case of: 
The ap-
plicable 
per-
centage 
is: 
Calendar year 2012 ............................................................................
86%
Calendar year 2013 ............................................................................
71%
Calendar year 2014 ............................................................................
57%
Calendar year 2015 ............................................................................
43%
Calendar year 2016 ............................................................................
29%
Calendar year 2017 ............................................................................
14%
Calendar years after 2017 ..................................................................
0%. 
‘‘(2) INCLUDED AND EXCLUDED SERVICE.—For 
purposes of this chapter, if’’. 
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(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 2012’’ 
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 2011 with respect to which such con-
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: 
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‘‘(l) For purposes of subparagraph (J) of subsection 
(a)(1), the applicable percentage for a calendar year, in 
connection with any calendar year referred to in such sub-
paragraph, shall be the percentage determined in accord-
ance with the following table: 
‘‘In the case of: 
The ap-
plicable 
per-
centage 
is: 
Calendar year 2012 ............................................................................
86%
Calendar year 2013 ............................................................................
71%
Calendar year 2014 ............................................................................
57%
Calendar year 2015 ............................................................................
43%
Calendar year 2016 ............................................................................
29%
Calendar year 2017 ............................................................................
14%
Calendar years after 2017 ..................................................................
0%’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply with respect to remu-
neration paid in calendar years after 2011. 
(b) DETERMINATION
OF SELF-EMPLOYMENT IN-
COME ABOVE CONTRIBUTION AND BENEFIT BASE AFTER 
2011.— 
(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 inserting ‘‘an 
amount equal to the applicable percentage (as 
determined under subsection (d)(2)) of’’ before 
‘‘that part of the net earnings from self-employ-
ment’’; and 
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(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 
SELF-EMPLOYMENT INCOME.—For purposes of para-
graph (1) of subsection (b), the applicable percent-
age for a taxable year beginning in any calendar 
year referred to in such paragraph shall be the per-
centage determined in accordance with the following 
table: 
‘‘In the case of: 
The ap-
plicable 
per-
centage 
is: 
Calendar year 2012 ............................................................................
86%
Calendar year 2013 ............................................................................
71%
Calendar year 2014 ............................................................................
57%
Calendar year 2015 ............................................................................
43%
Calendar year 2016 ............................................................................
29%
Calendar year 2017 ............................................................................
14%
Calendar years after 2017 ..................................................................
0%’’. 
(2) AMENDMENTS
TO
THE
SOCIAL
SECURITY 
ACT.—Section 211 of the Social Security Act (42 
U.S.C. 411) is amended— 
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(A) in subsection (b)(1)(I)— 
(i) by striking ‘‘or’’ after the semi-
colon; and 
(ii) by inserting ‘‘and before 2012’’ 
after ‘‘1974’’; 
(B) in subsection (b)— 
(i) by redesignating paragraph (2) as 
paragraph (3); and 
(ii) by inserting after paragraph (1) 
the following: 
‘‘(2) For any taxable year beginning in any cal-
endar year after 2011, 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 (A) an amount equal to 
the contribution and benefit base (determined under 
section 230) that is effective for such calendar year, 
minus (B) the amount of the wages paid to such in-
dividual during such taxable year; or’’; and 
(C) by adding at the end the following: 
‘‘(l) For purposes of paragraph (2) of subsection (b), 
the applicable percentage for a taxable year beginning in 
any calendar year referred to in such paragraph, shall be 
the percentage determined in accordance with the fol-
lowing table: 
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‘‘In the case of: 
The ap-
plicable 
per-
centage 
is: 
Calendar year 2012 ............................................................................
86%
Calendar year 2013 ............................................................................
71%
Calendar year 2014 ............................................................................
57%
Calendar year 2015 ............................................................................
43%
Calendar year 2016 ............................................................................
29%
Calendar year 2017 ............................................................................
14%
Calendar years after 2017 ..................................................................
0%’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply with respect to taxable 
years beginning during or after calendar year 2012. 
SEC. 302. INCLUSION OF SURPLUS EARNINGS IN SOCIAL SE-
CURITY BENEFIT FORMULA. 
(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; and 
(C) by inserting after clause (iii) the fol-
lowing new clauses: 
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‘‘(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-
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 
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(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 
2012, the amount established for purposes of clause (iv) 
of subparagraph (A) shall be $11,933. 
‘‘(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 2012, 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 2012 
under clause (iii) of this subparagraph and the quotient 
obtained by dividing— 
‘‘(I) 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, by 
‘‘(II) the national average wage index (as so de-
fined) for 2010.’’. 
(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— 
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(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; 
(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 
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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-
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)’’; 
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(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).’’. 
(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 2011. 
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TITLE IV—SOCIAL SECURITY 
BENEFIT PROTECTION 
SEC. 401. POINT OF ORDER AGAINST PRIVATIZATION OF 
SOCIAL SECURITY OR REDUCTIONS IN SO-
CIAL SECURITY BENEFITS. 
(a) IN GENERAL.—It shall not be in order in the 
House of Representatives or the Senate to consider any 
bill, joint resolution, amendment, motion, or conference re-
port if the enactment of that bill or resolution, as reported, 
the adoption and enactment of that amendment, or the 
enactment of that bill or resolution in the form rec-
ommended in that conference report would have the effect 
of— 
(1) establishing or maintaining a program— 
(A) under which benefits under title II of 
the Social Security Act are reduced, in whole or 
in part, in connection with contributions made 
to individual accounts of beneficiaries under 
such title established or maintained in the pri-
vate sector or in connection with returns on in-
vestment of amounts credited to such accounts, 
or 
(B) which provides for administration of 
the old-age, survivors, and disability insurance 
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program under such title, in whole or in part, 
by any entity in the private sector, 
(2) otherwise reducing benefits under title II of 
the Social Security Act in the case of any present or 
future beneficiary below the level of such benefits 
that would be in effect without the enactment of 
such bill, resolution, or amendment, or 
(3) providing for investment of amounts held in 
the Federal Old-Age and Survivors Insurance Trust 
Fund and the Federal Disability Insurance Trust 
Fund in any investment vehicle other than interest- 
bearing obligations of the United States or obliga-
tions guaranteed as to both principal and interest by 
the United States. 
(b) WAIVER AND APPEAL.—Subsection (a) may be 
waived or suspended in the Senate only by an affirmative 
vote of three-fifths of the Members, duly chosen and 
sworn. An affirmative vote of three-fifths of the Members 
of the Senate, duly chosen and sworn, shall be required 
in the Senate to sustain an appeal of the ruling of the 
Chair on a point of order raised under this section. 
(c) EXERCISE OF RULEMAKING POWERS.—The Con-
gress adopts the provisions of this section— 
(1) as an exercise of the rulemaking power of 
the House of Representatives and the Senate and as 
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such they shall be considered as part of the rules of 
each House or of that House to which they specifi-
cally apply, and these rules shall supersede other 
rules only to the extent that they are inconsistent 
with other such rules; and 
(2) with full recognition of the constitutional 
right of either the House of Representatives or the 
Senate to change those rules at any time, in the 
same manner, and to the same extent as in the case 
of any other rule of the House of Representatives or 
the Senate. 
Æ 
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