Provide for the Common Defense Act of 2013

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Provide for the 
Common Defense Act of 2013''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
  TITLE I--ELIMINATION OF SEQUESTRATION FOR REVISED SECURITY CATEGORY

Sec. 101. Elimination of 251A reductions for revised security category 
                            in fiscal years 2014 and 2015.
                  TITLE II--OFFSETTING PAYMENT CHANGES

                          Subtitle A--Medicare

Sec. 201. Adjustments to calculation of Medicare part B and part D 
                            premiums for high-income beneficiaries.
Sec. 202. Increase in part B deductible for new enrollees.
                        Subtitle B--Agriculture

Sec. 211. Cap on overall rate of return for crop insurance providers.
Sec. 212. Cap on reimbursements for administrative and operating 
                            expenses of crop insurance providers.
Sec. 213. Reduction in share of crop insurance premium paid by Federal 
                            Crop Insurance Corporation.
                     Subtitle C--Federal Retirement

Sec. 221. Retirement contributions.
Sec. 222. Annuity supplement.
Sec. 223. Use of Chained Consumer Price Index.
                        Subtitle D--Chained CPI

Sec. 231. Change in index used to calculate Social Security cost-of-
                            living adjustments.

  TITLE I--ELIMINATION OF SEQUESTRATION FOR REVISED SECURITY CATEGORY

SEC. 101. ELIMINATION OF 251A REDUCTIONS FOR REVISED SECURITY CATEGORY 
              IN FISCAL YEARS 2014 AND 2015.

    (a) Elimination of the Adjustment Under Section 251A for Fiscal 
Years 2014 and 2015.--Section 251A of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (2 U.S.C. 901a) is amended--
            (1) in paragraphs (7)(B) and (8), by striking ``On the 
        date'' in each instance and inserting ``Subject to paragraph 
        (12), on the date''; and
            (2) by adding at the end the following new paragraph:
            ``(12) No reductions for revised security category in 
        fiscal years 2014 and 2015.--Paragraphs (7)(B) and (8) shall 
        have no force or effect for fiscal years 2014 and 2015 with 
        respect to the revised security category.''.
    (b) Discretionary Spending Limits for the Revised Security Category 
in Fiscal Years 2014 and 2015.--For purposes of section 251(c) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 (as modified 
by section 251A(2) of such Act), for fiscal years 2014 and 2015, the 
discretionary spending limit for the revised security category in each 
such fiscal year shall be $552,000,000,000 and $566,000,000,000, 
respectively.

                  TITLE II--OFFSETTING PAYMENT CHANGES

                          Subtitle A--Medicare

SEC. 201. ADJUSTMENTS TO CALCULATION OF MEDICARE PART B AND PART D 
              PREMIUMS FOR HIGH-INCOME BENEFICIARIES.

    (a) Increase in Applicable Percentage Used To Calculate Premiums.--
Section 1839(i)(3)(C)(i) of the Social Security Act (42 U.S.C. 
1395r(i)(3)(C)(i)) is amended--
            (1) by inserting after ``In general.--'' the following:
                                    ``(I) Years before 2017.--For 
                                calendar years prior to 2017:''; and
            (2) by adding at the end the following new subclause:
                            ``(II) 2017 and subsequent years.--For 
                        calendar year 2017 and each subsequent calendar 
                        year:

``If the modified adjusted                               The applicable
   gross income is:                                      percentage is:
        More than $85,000 but not more than $107,000...........     40 
        More than $107,000 but not more than $160,000..........     55 
        More than $160,000 but not more than $214,000..........     70 
        More than $214,000.....................................  90.''.
    (b) Temporary Adjustment to Income Thresholds Used To Calculate 
Premiums.--
            (1) In general.--Section 1839(i)(6) of the Social Security 
        Act (42 U.S.C. 1395r(i)(6)) is amended in the matter preceding 
        subparagraph (A) by striking ``December 31, 2019'' and 
        inserting ``December 31 of the year after 2019 that is the 
        first year after the year in which at least 25 percent of 
        individuals enrolled under this part are subject to a reduction 
        under this subsection to the monthly amount of the premium 
        subsidy applicable to the premium under this section.''.
            (2) Application of inflation adjustment.--Section 
        1839(i)(5) of the Social Security Act (42 U.S.C. 1395r(i)(5)) 
        is amended--
                    (A) in subparagraph (A), by striking ``In the 
                case'' and inserting ``Subject to subparagraph (C), in 
                the case''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(C) Treatment of years after temporary adjustment 
                period.--In applying subparagraph (A) for the first 
                year beginning after the period described in paragraph 
                (6) and for each subsequent year, the 12-month period 
                ending with August 2006 described in clause (ii) of 
                such subparagraph shall be deemed to be the 12-month 
                period ending with August of the last year of such 
                period described in paragraph (6).''.

SEC. 202. INCREASE IN PART B DEDUCTIBLE FOR NEW ENROLLEES.

    Section 1833 of the Social Security Act (42 U.S.C. 1395l) is 
amended--
            (1) in the first sentence of subsection (b), by inserting 
        ``(subject to subsection (z))'' after ``for a subsequent 
        year''; and
            (2) by adding at the end the following:
    ``(z) Higher Deductible for New Enrollees.--In the case of an 
individual who is not enrolled under this part before January 1, 2017, 
the amount of the deductible under subsection (b)--
            ``(1) for 2017 shall be the amount otherwise determined 
        under such subsection for 2017 increased by $25;
            ``(2) for 2018 shall be the amount otherwise determined 
        under such subsection for 2018, taking into account the 
        application of the previous paragraph;
            ``(3) for 2019 shall be the amount otherwise determined 
        under such subsection for 2019, taking into the application of 
        the previous paragraphs, , increased by $25;
            ``(4) for 2020 shall be the amount otherwise determined 
        under such subsection for 2020, taking into account the 
        application of the previous paragraphs, increased by $25;
            ``(5) for 2021 shall be the amount otherwise determined 
        under such subsection for 2021, taking into account the 
        application of the previous paragraphs, increased by $25; and
            ``(6) for any subsequent year shall be the amount otherwise 
        determined under such subsection for such year, taking into 
        account the application of the previous paragraphs and this 
        paragraph for previous years.''.

                        Subtitle B--Agriculture

SEC. 211. CAP ON OVERALL RATE OF RETURN FOR CROP INSURANCE PROVIDERS.

    Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) 
is amended--
            (1) by designating paragraph (3) as subparagraph (A) (and 
        adjusting the margin two ems to the right);
            (2) by inserting before subparagraph (A) (as so designated) 
        the following:
            ``(3) Risk.--''; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Cap on overall rate of return.--The target 
                rate of return for all the companies combined for the 
                2014 and subsequent reinsurance years shall be 12.8 
                percent of retained premium.''.

SEC. 212. CAP ON REIMBURSEMENTS FOR ADMINISTRATIVE AND OPERATING 
              EXPENSES OF CROP INSURANCE PROVIDERS.

    Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(4)) is amended by adding at the end the following new 
subparagraph:
                    ``(G) Additional cap on reimbursements.--
                Notwithstanding subparagraphs (A) through (F), total 
                reimbursements for administrative and operating costs 
                for the 2014 insurance year for all types of policies 
                and plans of insurance shall not exceed $935,000,000. 
                For each subsequent insurance year, the dollar amount 
                in effect pursuant to the preceding sentence shall be 
                increased by the same inflation factor as established 
                for the administrative and operating costs cap in the 
                2011 Standard Reinsurance Agreement.''.

SEC. 213. REDUCTION IN SHARE OF CROP INSURANCE PREMIUM PAID BY FEDERAL 
              CROP INSURANCE CORPORATION.

    (a) Catastrophic Risk Protection.--Section 508(d)(2)(A) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)(A)) is amended by 
striking ``sufficient to cover anticipated losses and a reasonable 
reserve'' and inserting ``for all crops for which catastrophic risk 
protection coverage is available shall be reduced by the percentage 
equal to the difference between the average loss ratio for such crop 
and 100 percent, plus a reasonable reserve''.
    (b) Additional Coverage.--Section 508(e)(2) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(e)(2)) is amended--
            (1) in subparagraph (B)(i), by striking ``67'' and 
        inserting ``64'';
            (2) in subparagraph (C)(i), by striking ``64'' and 
        inserting ``61'';
            (3) in subparagraph (D)(i), by striking ``59'' and 
        inserting ``56''; and
            (4) in subparagraph (E)(i), by striking ``55'' and 
        inserting ``52''.
    (c) Enterprise and Whole Farm Units.--Section 508(e)(5)(C) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(e)(5)(C)) is amended by 
striking ``80'' and inserting ``77''.
    (d) Area Revenue Plans.--Section 508(e)(6) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(e)(6)) is amended--
            (1) in subparagraph (A)(i), by striking ``59'' and 
        inserting ``56''; and
            (2) in subparagraph (B)(i), by striking ``55'' and 
        inserting ``52''.
    (e) Area Yield Plans.--Section 508(e)(7) of the Federal Crop 
Insurance Act (7 U.S.C. 1508) is amended--
            (1) in subparagraph (A)(i), by striking ``59'' and 
        inserting ``56'';
            (2) in subparagraph (B)(i), by striking ``55'' and 
        inserting ``52''; and
            (3) in subparagraph (C)(i), by striking ``51'' and 
        inserting ``48''.
    (f) Effective Date.--The amendments made by this section shall 
apply with respect to the first contract change date for a contract 
under the Federal Crop Insurance Act occurring after the date of the 
enactment of this Act.

                     Subtitle C--Federal Retirement

SEC. 221. RETIREMENT CONTRIBUTIONS.

    (a) Civil Service Retirement System.--
            (1) Individual contributions.--Section 8334(c) of title 5, 
        United States Code, is amended--
                    (A) by striking ``(c) Each'' and inserting ``(c)(1) 
                Each''; and
                    (B) by adding at the end the following:
    ``(2) Notwithstanding any other provision of this subsection, the 
applicable percentage of basic pay under this subsection for civilian 
service by an employee or Member shall, for purposes of computing an 
amount--
            ``(A) for a period in calendar year 2014, be equal to the 
        applicable percentage under this subsection for calendar year 
        2013 plus an additional 0.4 percentage point;
            ``(B) for a period in calendar year 2015, be equal to the 
        applicable percentage under this subsection for calendar year 
        2014 (as determined under subparagraph (A)) plus an additional 
        0.4 percentage point;
            ``(C) for a period in calendar year 2016, be equal to the 
        applicable percentage under this subsection for calendar year 
        2015 (as determined under subparagraph (B)) plus an additional 
        0.4 percentage point; and
            ``(D) for a period in any calendar year after 2016, be 
        equal to the applicable percentage under this subsection for 
        calendar year 2015 (as determined under subparagraph (C)).
    ``(3)(A) Notwithstanding subsection (a)(2), any excess 
contributions under subsection (a)(1)(A) (including the portion of any 
deposit under this subsection allocable to excess contributions) shall, 
if made by an employee of the United States Postal Service or the 
Postal Regulatory Commission, be deposited to the credit of the Postal 
Service Fund under section 2003 of title 39, rather than the Civil 
Service Retirement and Disability Fund.
    ``(B) For purposes of this paragraph, the term `excess 
contributions', as used with respect to contributions made under 
subsection (a)(1)(A) by an employee of the United States Postal Service 
or the Postal Regulatory Commission, means the amount by which--
            ``(i) deductions from basic pay of such employee which are 
        made under subsection (a)(1)(A), exceed
            ``(ii) deductions from basic pay of such employee which 
        would have been so made if paragraph (2) had not been 
        enacted.''.
            (2) Government contributions.--Section 8334(a)(1)(B) of 
        title 5, United States Code, is amended--
                    (A) in clause (i), by striking ``Except as provided 
                in clause (ii),'' and inserting ``Except as provided in 
                clause (ii) or (iii),''; and
                    (B) by adding at the end the following:
    ``(iii) The amount to be contributed under clause (i) shall, with 
respect to a period in any year beginning after December 31, 2013, be 
equal to--
            ``(I) the amount which would otherwise apply under clause 
        (i) with respect to such period, reduced by
            ``(II) the amount by which, with respect to such period, 
        the withholding under subparagraph (A) exceeds the amount which 
        would otherwise have been withheld from the basic pay of the 
        employee or elected official involved under subparagraph (A) 
        based on the percentage applicable under subsection (c) for 
        calendar year 2013.''.
    (b) Individual Contributions Under the Federal Employees' 
Retirement System.--Section 8422(a)(3) of title 5, United States Code, 
is amended--
            (1) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (2) by inserting after subparagraph (A) the following:
    ``(B) Notwithstanding any other provision of this paragraph, the 
applicable percentage under this paragraph for civilian service by 
employees or Members other than revised annuity employees shall--
            ``(i) for a period in calendar year 2014, be equal to the 
        applicable percentage under this paragraph for calendar year 
        2013 plus an additional 0.4 percentage point;
            ``(ii) for a period in calendar year 2015, be equal to the 
        applicable percentage under this paragraph for calendar year 
        2014 (as determined under clause (i)) plus an additional 0.4 
        percentage point;
            ``(iii) for a period in calendar year 2016, be equal to the 
        applicable percentage under this paragraph for calendar year 
        2015 (as determined under clause (ii)) plus an additional 0.4 
        percentage point; and
            ``(iv) for a period in any calendar year after 2016, be 
        equal to the applicable percentage under this paragraph for 
        calendar year 2016 (as determined under clause (iii)).''.

SEC. 222. ANNUITY SUPPLEMENT.

    Section 8421(a) of title 5, United States Code, is amended--
            (1) in paragraph (1), by striking ``paragraph (3)'' and 
        inserting ``paragraphs (3) and (4)'';
            (2) in paragraph (2), by striking ``paragraph (3)'' and 
        inserting ``paragraphs (3) and (4)''; and
            (3) by adding at the end the following:
    ``(4) No annuity supplement under this section shall be payable in 
the case of an individual who first becomes subject to this chapter 
after December 31, 2013.''.

SEC. 223. USE OF CHAINED CONSUMER PRICE INDEX.

    (a) In General.--Paragraph (15) of section 8331 of title 5, United 
States Code, is amended to read as follows:
            ``(15) the term `price index' means the Chained Consumer 
        Price Index (all items-all urban consumers) published monthly 
        by the Bureau of Labor Statistics;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 2015, and shall apply with respect to any 
cost-of-living adjustment taking effect under section 8340 or 8462 of 
title 5, United States Code, on or after that date.

                        Subtitle D--Chained CPI

SEC. 231. CHANGE IN INDEX USED TO CALCULATE SOCIAL SECURITY COST-OF-
              LIVING ADJUSTMENTS.

    (a) In General.--Section 215(i)(1) of the Social Security Act (42 
U.S.C. 415(i)(1)) is amended--
            (1) in subparagraph (G), by striking the period at the end 
        and inserting ``; and''; and
            (2) by adding at the end the following new subparagraph:
            ``(H) the term `Consumer Price Index' means the Chained 
        Consumer Price Index for All Urban Consumers (C-CPI-U, as 
        published in its initial version by the Bureau of Labor 
        Statistics of the Department of Labor).''.
    (b) Application to Pre-1979 Law.--
            (1) In general.--Section 215(i)(1) of the Social Security 
        Act as in effect in December 1978, and as applied in certain 
        cases under the provisions of such Act as in effect after 
        December 1978, is amended--
                    (A) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(D) the term `Consumer Price Index' means the Chained 
        Consumer Price Index for All Urban Consumers (C-CPI-U, as 
        published in its initial version by the Bureau of Labor 
        Statistics of the Department of Labor).''.
            (2) Conforming change.--Section 215(i)(4) of the Social 
        Security Act (42 U.S.C. 415(i)(4)) is amended by inserting 
        ``and by section 231 of the Provide for the Common Defense Act 
        of 2013'' after ``1986''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to adjustments effective with or after December 
2014.

Summary: Provide for the Common Defense Act of 2013 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to nullify the presidential sequestration order issued for the revised security category (discretionary appropriations in budget function 050) for FY2014-FY2015 to enforce a specified budget goal. Establishes the discretionary spending limit for the revised security category for each such fiscal year. Amends part B (Supplemental Medical Insurance) of title XVIII (Medicare) of the Social Security Act (SSA) with respect to adjustments to the calculation of Medicare parts B and D (Voluntary Prescription Drug Benefit Program) premiums for high income beneficiaries for 2017 and subsequent years. Reduces the monthly amount of the Medicare parts B and D premium subsidies (with a corresponding increase in the monthly premium amount) for individuals whose modified adjusted gross income exceeds the threshold amount by specified applicable percentages for modified adjusted gross incomes in certain ranges starting at $85,000 (40%) and finally exceeding $214,000 (90%). Revises the temporary adjustment to income thresholds used to calculate premiums between January 1, 2011, and December 31, 2019, to extend it through December 31 of the first year after 2019 after the year in which at least 25% of individuals enrolled in the Medicare parts B and D are subject to a reduction to the monthly amount of the applicable premium subsidy. Increases by $25 per year the part B deductible for new enrollees after January 1, 2017, and subsequent years. Amends the Federal Crop Insurance Act to establish caps beginning with FY2014 for: (1) combined crop insurance provider rates of return, and (2) reimbursements for crop insurance provider administrative and operating expenses. Reduces according to a specified formula the crop insurance premium for catastrophic risk protection coverage. Reduces the portion of premium paid by the Federal Crop Insurance Corporation (premium subsidies) for the following coverages: (1) additional insurance, (2) enterprise and whole farm units, (3) area revenue plans, and (4) area yield plans. Requires an additional .4% increase per year, beginning in calendar 2014, in the percentage of basic pay that federal employees or Members of Congress must contribute to their pension plans under the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS). Reduces government contributions to CSRS and FERS by the amount of such increased employee contributions.  Eliminates annuity supplements for federal employees hired after 2013.  Revises the definition of &ldquo;price index,&rdquo; for purposes of cost-of-living adjustments to federal employee benefits, to mean the Chained Consumer Price Index for All Urban Consumers (Chained CPI) instead of the Consumer Price Index. Amends SSA title II (Old Age, Surivors, and Disability Insurance) (OASDI) to require the use of the Chained CPI for calculation of Social Security cost-of-living adjustments.