SEC. 2. REPLACEMENT OF THE WINDFALL ELIMINATION 
PROVISION WITH A FORMULA EQUALIZING 
BENEFITS FOR CERTAIN INDIVIDUALS WITH 
NON-COVERED EMPLOYMENT. 
(a) IN GENERAL.—Section 215(a) of the Social Secu-
rity Act (42 U.S.C. 415(a)) is amended by inserting after 
paragraph (7) the following: 
‘‘(8)(A) In the case of an individual whose primary 
insurance amount would be computed under paragraph 
(1) of this subsection— 
‘‘(i) who first becomes eligible for an old-age or 
disability insurance benefit after 2024, 
‘‘(ii) who subsequently becomes entitled to such 
benefit, and 
‘‘(iii) who has earnings derived from noncovered 
service performed in a year after 1977, 
the primary insurance amount of such individual shall be 
computed or recomputed under this paragraph. 
‘‘(B) The primary insurance amount of an individual 
described in subparagraph (A), as computed or recom-
puted under this paragraph, shall be the product derived 
by multiplying— 
‘‘(i) the individual’s primary insurance amount, 
as determined under paragraph (1) of this sub-
section and subparagraph (C) of this paragraph, by 
‘‘(ii) a fraction— 
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‘‘(I) the numerator of which is the individ-
ual’s average indexed monthly earnings (deter-
mined without regard to subparagraph (C)), 
and 
‘‘(II) the denominator of which is an 
amount equal to the individual’s average in-
dexed monthly earnings (as determined under 
subparagraph (C)), 
rounded, if not a multiple of $0.10, to the next lower mul-
tiple of $0.10. 
‘‘(C)(i) For purposes of determining an individual’s 
primary insurance amount pursuant to clauses (i) and 
(ii)(II) of subparagraph (B), the individual’s average in-
dexed monthly earnings shall be determined by treating 
all recorded noncovered earnings (as defined in clause 
(ii)(I)) derived by the individual from noncovered service 
performed in each year after 1977 as ‘wages’ (as defined 
in section 209 for purposes of this title), which shall be 
treated as included in the individual’s adjusted total cov-
ered earnings (as defined in clause (ii)(II)) for such cal-
endar year together with amounts consisting of ‘wages’ (as 
so defined without regard to this subparagraph) paid dur-
ing such calendar year and self-employment income (as 
defined in section 211(b)) for taxable years ending with 
or during such calendar year. 
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‘‘(ii) For purposes of this subparagraph: 
‘‘(I) The term ‘recorded noncovered earnings’ 
means earnings derived from noncovered service 
(other than noncovered service as a member of a 
uniformed service (as defined in section 210(m)) for 
which satisfactory evidence is determined by the 
Commissioner to be available in the records of the 
Commissioner. 
‘‘(II) The term ‘adjusted total covered earnings’ 
means, in connection with an individual for any cal-
endar year, the sum of the wages paid to the indi-
vidual during such calendar year (as adjusted under 
subsection (b)(3)) plus the self-employment income 
derived by the individual during any taxable year 
ending with or during such calendar year (as ad-
justed under subsection (b)(3)). 
‘‘(iii) The Commissioner of Social Security shall pro-
vide by regulation or other public guidance for methods 
for determining whether satisfactory evidence is available 
in the records of the Commissioner for earnings for non-
covered service (other than noncovered service as a mem-
ber of a uniformed service (as defined in section 210(m)) 
to be treated as recorded noncovered earnings. Such meth-
ods shall provide for reliance on earnings information 
which is provided to the Commissioner by employers and 
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which, as determined by the Commissioner, constitute a 
reasonable basis for treatment of earnings for noncovered 
service as recorded noncovered earnings. In making deter-
minations under this clause, the Commissioner shall also 
take into account any documentary or other evidence of 
earnings derived from noncovered service by an individual 
which is provided by the individual to the Commissioner 
and which the Commissioner considers appropriate as a 
reasonable basis for treatment of such earnings as re-
corded noncovered earnings. 
‘‘(D) Upon the death of an individual whose primary 
insurance amount is computed or recomputed under this 
paragraph, such primary insurance amount shall be com-
puted or recomputed under paragraph (1) of this sub-
section. 
‘‘(E) In the case of any individual whose primary in-
surance amount would be computed under this paragraph 
who first becomes entitled after 1985 to a monthly peri-
odic payment made by a foreign employer or foreign coun-
try that is based in whole or in part upon noncovered serv-
ice, the primary insurance amount of such individual shall 
be computed or recomputed under paragraph (7) or para-
graph (1), as applicable, for months beginning with the 
first month of the individual’s initial entitlement to such 
monthly periodic payment.’’. 
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(b) ADDITIONAL MONTHLY PAYMENT FOR INDIVID-
UALS WHOSE BENEFIT AMOUNT IS REDUCED BY THE 
WINDFALL ELIMINATION PROVISION.—Section 215(a) of 
such Act (42 U.S.C. 415(a)), as amended by section 2(a), 
is further amended by adding at the end the following: 
‘‘(9)(A) For any month in a calendar year after 2019, 
the Commissioner of Social Security shall, subject to sub-
paragraphs (C) and (D), make an additional monthly pay-
ment of $100 to each individual who is an eligible indi-
vidual for such month, and an additional monthly payment 
of $50 to each individual (other than an eligible indi-
vidual) who is entitled to a benefit under section 202 for 
such month on the basis of the wages and self-employment 
income of such eligible individual. 
‘‘(B) For purposes of this paragraph, the term ‘eligi-
ble individual’ for a month means an individual who is 
entitled to an old-age or disability insurance benefit under 
this title for such month based on a primary insurance 
amount that was computed or recomputed under para-
graph (7) (and not subsequently recomputed under any 
other paragraph of this subsection). 
‘‘(C) In any case in which this title provides that no 
monthly benefit under section 202 or 223 shall be paid 
to an individual for a month, no additional monthly pay-
ment shall be paid to the individual for such month. This 
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subparagraph shall not apply in the case of an individual 
whose monthly benefit under section 202 or 223 is re-
duced, regardless of the amount of the reduction, based 
on the individual’s receipt of other income or benefits for 
such month or the application of section 203(a) or due 
to the adjustment or recovery of an overpayment under 
section 204. 
‘‘(D)(i) An individual is not entitled to receive more 
than one additional monthly payment for a month under 
this paragraph. 
‘‘(ii) An eligible individual who is entitled to a benefit 
under section 202 on the basis of the wages and self-em-
ployment income of another eligible individual for a month 
shall receive an additional monthly payment under this 
paragraph in the amount of $100 for such month. 
‘‘(E) Except for purposes of adjustment or recovery 
of an overpayment under section 204, an additional 
monthly payment under this paragraph shall not be sub-
ject to any reduction or deduction under this title. 
‘‘(F) Whenever benefit amounts under this title are 
increased by any percentage effective with any month as 
a result of a determination made under subsection (i), 
each of the dollar amounts in subparagraph (A) shall be 
increased by the same percentage for months beginning 
with such month.’’. 
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(c) 
CONFORMING
AMENDMENTS.—Section 
215(a)(7)(A) of such Act (42 U.S.C. 415(a)(7)(A)) is 
amended— 
(1) in clause (i)— 
(A) by striking ‘‘after 1985’’ and inserting 
‘‘after 1985 and before 2025’’; and 
(B) by striking ‘‘or’’ at the end; 
(2) in clause (ii)— 
(A) by striking ‘‘after 1985’’ each place it 
appears and inserting ‘‘after 1985 and before 
2025’’; and 
(B) by adding ‘‘or’’ at the end; 
(3) by inserting after clause (ii) the following: 
‘‘(iii) is an individual described in paragraph 
(8)(E),’’; and 
(4) by striking ‘‘hereafter in this paragraph and 
in subsection (d)(3)’’ and inserting ‘‘in this para-
graph, paragraph (8), and subsection (d)(3)’’. 
(d) EFFECTIVE DATE.—The amendments made sub-
sections (a) and (c) shall apply with respect to monthly 
insurance benefits payable on or after January 1, 2025, 
and the amendments made by subsection (b) shall apply 
with respect to monthly insurance benefits payable on or 
after January 1, 2020. 
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SEC. 3. REPORTING OF NONCOVERED EARNINGS ON SO-
CIAL SECURITY ACCOUNT STATEMENTS. 
(a) IN GENERAL.—Section 1143(a)(2) of the Social 
Security Act (42 U.S.C. 1320b–13(a)(2)) is amended— 
(1) 
by 
redesignating 
subparagraphs 
(B) 
through (E) as subparagraphs (C) through (F); and 
(2) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) the amount of earnings derived by 
the eligible individual from service performed 
after 1977 which did not constitute employment 
(as defined in section 210), not including serv-
ice as a member of a uniformed service (as de-
fined in section 210(m)), as shown by the 
records of the Commissioner at the date of the 
request;’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to Social Security ac-
count statements issued on or after January 1, 2020. 
SEC. 4. STUDY ON PARTNERING WITH STATE AND LOCAL 
PENSION SYSTEMS. 
(a) STUDY.— 
(1) IN GENERAL.—The Commissioner of Social 
Security shall study and test the administrative fea-
sibility of partnering with State and local pension 
systems, or other governmental entities, to improve 
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the collection and sharing of information relating to 
State and local noncovered pensions. 
(2) COORDINATION
WITH
STATE
AND
LOCAL 
PENSION
SYSTEMS.—In conducting the study de-
scribed in paragraph (1), the Commissioner shall co-
ordinate with State and local pension systems that 
reflect the diversity of systems and individual experi-
ences to explore the development of automated data 
exchange agreements that facilitate reporting of in-
formation relating to noncovered pensions. 
(b) REPORT.—The Commissioner of Social Security 
shall conclude the study described in subsection (a) not 
later than 4 years after the date of enactment of this Act. 
As soon as possible after conclusion of the study and not 
later than 41⁄2 years after the date of enactment of this 
Act, the Commissioner shall submit to the Committee on 
Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report on the re-
sults of the study. Such report shall include the following: 
(1) A discussion of how the automated data ex-
change agreements could be implemented to cover 
noncovered pensions nationally, including the range 
of implementation timelines across State and local 
pension systems, or with other governmental entities. 
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(2) An analysis of the barriers to developing 
automated data exchange agreements and lessons 
learned that can help address these barriers. 
(3) A description of alternative methods for ob-
taining information related to noncovered pensions, 
and an analysis of the barriers to obtaining non-
covered pension data through such methods. 
(4) An explanation of how coverage information 
is obtained by the Social Security Administration 
when an individual purchases service credits to apply 
to a new covered or noncovered pension after moving 
from another covered or noncovered pension within 
the State or in another State. 
(5) An estimate of the total amount, as of the 
date of the enactment of this Act, of noncovered 
pensions not reported to the Social Security Admin-
istration as a result of noncompliance with voluntary 
reporting policies. 
(c) STATE AND LOCAL PENSION INFORMATION TO 
BE REQUESTED BY THE COMMISSIONER.—Section 202 of 
the Social Security Act (42 U.S.C. 402) is amended by 
inserting after subsection (l) the following: 
‘‘(m) STATE AND LOCAL PENSION INFORMATION TO 
BE REQUESTED BY THE COMMISSIONER.— 
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‘‘(1) The Commissioner may partner with 
States to request information, including the informa-
tion specified in paragraph (2), with respect to any 
designated distribution (as defined in section 
3405(e)(1) of the Internal Revenue Code of 1986) 
from an employer deferred compensation plan (as 
defined in section 3405(e)(5) of such Code) of the 
State (or political subdivision thereof) to a partici-
pant of such plan in any case in which any portion 
of such participant’s earnings for service under such 
plan did not constitute ‘employment’ as defined in 
section 210 for purposes of this title. 
‘‘(2) The information specified in this para-
graph is the following: 
‘‘(A) The name and Social Security ac-
count number of the participant receiving the 
designated distribution. 
‘‘(B) The dollar amount of the designated 
distribution and the date paid. 
‘‘(C) The date on which the participant 
initially became eligible for a designated dis-
tribution under the plan and, if different, the 
date of payment of the initial designated dis-
tribution. 
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‘‘(D) The dates of each period of service 
under the plan that did not constitute ‘employ-
ment’ as defined in section 210 for purposes of 
this title, and the dates of any other period of 
service under the plan.’’. 
(d) DEFINITIONS.—In this section— 
(1) the term ‘‘noncovered pension’’ means a 
pension any part of which is based on noncovered 
service (within the meaning of section 215(a)(7) of 
the Social Security Act (42 U.S.C. 415(a)(7))); and 
(2) the term ‘‘covered pension’’ means any 
other pension. 
Æ 
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