I
104TH CONGRESS
2D SESSION
H. R. 2930
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 by providing a new 10-year rule governing the transition to the
changes in benefit computation rules enacted in the Social Security
Amendments of 1977 (and related beneficiaries) and to provide prospec-
tively for increases in their benefits accordingly, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 1, 1996
Mr. NEUMANN introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Com-
merce, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
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 by providing a
new 10-year rule governing the transition to the changes
in benefit computation rules enacted in the Social Secu-
rity Amendments of 1977 (and related beneficiaries) and
to provide prospectively for increases in their benefits
accordingly, and for other purposes.
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 ‘‘Notch Fairness Act
of 1996’’.
SEC. 2. NEW GUARANTEED MINIMUM PRIMARY INSURANCE
AMOUNT WHERE ELIGIBILITY ARISES DUR-
ING TRANSITIONAL PERIOD.
(a) IN GENERAL.—Section 215(a) of the Social Secu-
rity Act is amended—
(1) in paragraph (4)(B), by inserting ‘‘(with or
without the application of paragraph (8))’’ after
‘‘would be made’’, and by striking ‘‘1984’’ in clause
(i) and inserting ‘‘1989’’; 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 multiply-
ing—
‘‘(i) the excess under former law, by
‘‘(ii) the applicable percentage in relation to the
year in which the individual becomes eligible for old-
age insurance benefits, as determined by the follow-
ing table:
‘‘If the individual
becomes eligible for
The applicable
such benefits in:
percentage is:
1979 .......................................................................
55 percent
1980 .......................................................................
45 percent
1981 .......................................................................
35 percent
1982 .......................................................................
32 percent
1983 .......................................................................
25 percent
1984 .......................................................................
20 percent
1985 .......................................................................
16 percent
1986 .......................................................................
10 percent
1987 .......................................................................
3 percent
1988 .......................................................................
5 percent.
‘‘(C) For purposes of subparagraph (B), the term ‘ex-
cess under former law’ means, in the case of any individ-
ual, the excess of—
‘‘(i) the applicable former law primary insur-
ance 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 former 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.’’.
(b) EFFECTIVE DATE AND RELATED RULES.—
(1) APPLICABILITY OF AMENDMENTS.—
(A) IN GENERAL.—Except as provided in
paragraph (2), the amendments made by this
Act shall be effective as though they had been
included or reflected in section 201 of the So-
cial Security Amendments of 1977.
(B) 
PROSPECTIVE
APPLICABILITY.—No
monthly benefit or primary insurance amount
under title II of the Social Security Act shall be
increased by reason of such amendments for
any month before April 1996.
(2) RECOMPUTATION TO REFLECT BENEFIT IN-
CREASES.—In any case in which an individual is en-
titled to monthly insurance benefits under title II of
the Social Security Act for March 1995, if such ben-
efits are based on a primary insurance amount com-
puted—
(A) under section 215 of such Act as in ef-
fect (by reason of the Social Security Amend-
ments of 1977) after December 1978, or
(B) under section 215 of such Act as in ef-
fect prior to January 1979 by reason of sub-
section (a)(4)(B) of such section (as amended
by the Social Security Amendments of 1977),
the Commissioner of Social Security (notwithstand-
ing 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.
SEC. 3. ENTITLEMENT OF STEPCHILDREN TO CHILD’S IN-
SURANCE BENEFITS BASED ON ACTUAL DE-
PENDENCY ON STEPPARENT SUPPORT.
(a) REQUIREMENT OF ACTUAL DEPENDENCY FOR
FUTURE ENTITLEMENTS.—
(1) IN GENERAL.—Section 202(d)(4) of the So-
cial Security Act (42 U.S.C. 402(d)(4)) is amended
by striking ‘‘was living with or’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall apply with respect to benefits
of individuals who become entitled to such benefits
for months after the third month following the
month in which this Act is enacted.
(b) TERMINATION OF CHILD’S INSURANCE BENE-
FITS BASED ON WORK RECORD OF STEPPARENT UPON
NATURAL PARENT’S DIVORCE FROM STEPPARENT.—
(1) IN GENERAL.—Section 202(d)(1) of the So-
cial Security Act (42 U.S.C. 402(d)(1)) is amend-
ed—
(A) by striking ‘‘or’’ at the end of clause
(F);
(B) by striking the period at the end of
clause (G) and inserting ‘‘; or’’; and
(C) by inserting after clause (G) the fol-
lowing new clause:
‘‘(H) if the benefits under this subsection are
based on the wages and self-employment income of
a stepparent who is subsequently divorced from such
child’s natural parent, the sixth month after the
month in which the Commissioner of Social Security
receives formal notification of such divorce.’’.
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply with respect to notifi-
cations of divorces received by the Commissioner of
Social Security on or after the date of the enactment
of this Act.
SEC. 4. DENIAL OF DISABILITY BENEFITS TO DRUG AD-
DICTS AND ALCOHOLICS.
(a) AMENDMENTS RELATING TO TITLE II DISABIL-
ITY BENEFITS.—
(1) IN GENERAL.—Section 223(d)(2) of the So-
cial Security Act (42 U.S.C. 423(d)(2)) is amended
by adding at the end the following:
‘‘(C) An individual shall not be considered to be
disabled for purposes of this title if alcoholism or
drug addiction would (but for this subparagraph) be
a contributing factor material to the Commissioner’s
determination that the individual is disabled.’’.
(2) 
REPRESENTATIVE
PAYEE
REQUIRE-
MENTS.—
(A) Section 205(j)(1)(B) of such Act (42
U.S.C. 405(j)(1)(B)) is amended to read as fol-
lows:
‘‘(B) In the case of an individual entitled to benefits
based on disability, the payment of such benefits shall be
made to a representative payee if the Commissioner of So-
cial Security determines that such payment would serve
the interest of the individual because the individual also
has an alcoholism or drug addiction condition (as deter-
mined by the Commissioner) that prevents the individual
from managing such benefits.’’.
Social Security Act based on disability for the
month in which this Act is enacted and whose
entitlement to such benefits would terminate by
reason of the amendments made by this sub-
section reapplies for benefits under title II of
such Act (as amended by this Act) based on
disability within 120 days after the date of the
enactment of this Act, the Commissioner of So-
cial Security shall, not later than January 1,
1997, complete the entitlement redetermination
with respect to such individual pursuant to the
procedures of such title.
(b) AMENDMENTS RELATING TO SSI BENEFITS.—
(1) IN GENERAL.—Section 1614(a)(3) of the
Social Security Act (42 U.S.C. 1382c(a)(3)) is
amended by adding at the end the following:
‘‘(I) Notwithstanding subparagraph (A), an individ-
ual shall not be considered to be disabled for purposes of
this title if alcoholism or drug addiction would (but for
this subparagraph) be a contributing factor material to
the Commissioner’s determination that the individual is
disabled.’’.
(2) 
REPRESENTATIVE
PAYEE
REQUIRE-
MENTS.—
(A) Section 1631(a)(2)(A)(ii)(II) of such
Act (42 U.S.C. 1383(a)(2)(A)(ii)(II)) is amend-
ed to read as follows:
‘‘(II) In the case of an individual eligible for benefits
under this title by reason of disability, the payment of
such benefits shall be made to a representative payee if
the Commissioner of Social Security determines that such
payment would serve the interest of the individual because
the individual also has an alcoholism or drug addiction
condition (as determined by the Commissioner) that pre-
vents the individual from managing such benefits.’’.
(B) Section 1631(a)(2)(B)(vii) of such Act
(42 U.S.C. 1383(a)(2)(B)(vii)) is amended by
striking ‘‘eligible for benefits’’ and all that fol-
lows through ‘‘is disabled’’ and inserting ‘‘de-
scribed in subparagraph (A)(ii)(II)’’.
(C) Section 1631(a)(2)(B)(ix)(II) of such
Act 
(42 
U.S.C. 
1383(a)(2)(B)(ix)(II)) 
is
amended by striking all that follows ‘‘15 years,
or’’ and inserting ‘‘described in subparagraph
(A)(ii)(II).’’.
(D) Section 1631(a)(2)(D)(i)(II) of such
Act (42 U.S.C. 1383(a)(2)(D)(i)(II)) is amend-
ed by striking ‘‘eligible for benefits’’ and all
that follows through ‘‘is disabled’’ and inserting
‘‘described in subparagraph (A)(ii)(II)’’.
(3) TREATMENT
SERVICES
FOR
INDIVIDUALS
WITH A SUBSTANCE ABUSE CONDITION.—Title XVI
of such Act (42 U.S.C. 1381 et seq.) is amended by
adding at the end the following new section:
‘‘TREATMENT SERVICES FOR INDIVIDUALS WITH A
SUBSTANCE ABUSE CONDITION
‘‘SEC. 1636. In the case of any individual whose bene-
fits under this title are paid to a representative payee pur-
suant to section 1631(a)(2)(A)(ii)(II), the Commissioner
of Social Security shall refer such individual to the appro-
priate State agency administering the State plan for sub-
stance abuse treatment services approved under subpart
II of part B of title XIX of the Public Health Service Act
(42 U.S.C. 300x–21 et seq.).’’.
(4) CONFORMING AMENDMENTS.—
(A) Section 1611(e) of such Act (42
U.S.C. 1382(e)) is amended by striking para-
graph (3).
(B) Section 1634 of such Act (42 U.S.C.
1383c) is amended by striking subsection (e).
(5) EFFECTIVE DATES.—
(A) The amendments made by paragraphs
(1) and (4) shall apply with respect to supple-
mental security income benefits under title XVI
of the Social Security Act based on disability
for months beginning after the date of the en-
actment of this Act, except that, in the case of
individuals who are eligible for such benefits for
the month in which this Act is enacted, such
amendments shall apply only with respect to
such benefits for months beginning on or after
January 1, 1997.
(B) The amendments made by paragraphs
(2) and (3) shall apply with respect to supple-
mental security income benefits under title XVI
of the Social Security Act for which applica-
tions are filed on or after the date of the enact-
ment of this Act.
(C) If an individual who is eligible for sup-
plemental security income benefits under title
XVI of the Social Security Act for the month
in which this Act is enacted and whose eligi-
bility for such benefits would terminate by rea-
son of the amendments made by this subsection
reapplies for supplemental security income ben-
efits under title XVI of such Act (as amended
by this Act) within 120 days after the date of
the enactment of this Act, the Commissioner of
Social Security shall, not later than January 1,
1997, complete the eligibility redetermination
with respect to such individual pursuant to the
procedures of such title.
(D) For purposes of this paragraph, the
phrase ‘‘supplemental security income benefits
under title XVI of the Social Security Act’’ in-
cludes supplementary payments pursuant to an
agreement for Federal administration under
section 1616(a) of the Social Security Act and
payments pursuant to an agreement entered
into under section 212(b) of Public Law 93–66.
(c) CONFORMING AMENDMENT.—Section 201(c) of
the Social Security Independence and Program Improve-
ments Act of 1994 (42 U.S.C. 425 note) is repealed.
(d) SUPPLEMENTAL FUNDING FOR ALCOHOL AND
SUBSTANCE ABUSE TREATMENT PROGRAMS.—
(1) IN GENERAL.—Out of any money in the
Treasury not otherwise appropriated, there are here-
by appropriated to supplement State and Tribal pro-
grams funded under section 1933 of the Public
Health 
Service 
Act 
(42 
U.S.C. 
300x–33),
$100,000,000 for each of the fiscal years 1997 and
1998.
(2) 
ADDITIONAL
FUNDS.—Amounts 
appro-
priated under paragraph (1) shall be in addition to
any funds otherwise appropriated for allotments
under section 1933 of the Public Health Service Act
(42 U.S.C. 300x–33) and shall be allocated pursuant
to such section 1933.
(3) USE OF FUNDS.—A State or Tribal govern-
ment receiving an allotment under this subsection
shall consider as priorities, for purposes of expend-
ing funds allotted under this subsection, activities
relating to the treatment of the abuse of alcohol and
other drugs.
Æ
HR 2930 IH——2