To ensure that seniors, veterans, and people with disabilities who receive Social Security and certain other Federal benefits receive a $250 payment in the event that no cost-of-living adjustment is payable in a calendar year.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Safety Dividend 
Act''.

SEC. 2. PAYMENT IN LIEU OF A COST-OF-LIVING ADJUSTMENT TO RECIPIENTS OF 
              SOCIAL SECURITY, SUPPLEMENTAL SECURITY INCOME, RAILROAD 
              RETIREMENT BENEFITS, AND VETERANS DISABILITY COMPENSATION 
              OR PENSION BENEFITS.

    (a) Authority To Make Payments.--
            (1) Eligibility.--
                    (A) In general.--The Secretary of the Treasury 
                shall disburse, out of any funds in the Treasury of the 
                United States not otherwise appropriated, a cash 
                payment equal to $250 for each non-COLA year of a 
                program providing benefit payments 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 benefit payment.
                    (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 for which--
                            (i) a cost-of-living adjustment is 
                        generally provided under such program in 
                        relation to an index specified in section 
                        215(i) of the Social Security Act (42 U.S.C. 
                        415(i)); 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 payment 
                        described in this clause is a monthly insurance 
                        benefit payable (without regard to sections 
                        202(j)(1) and 223(b) of the Social 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));
                                    (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 benefit.--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));
                                    (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 compensation 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;
                                    (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.
                    (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) Requirement.--A payment shall be made under paragraph 
        (1) only to individuals who reside in 1 of the 50 States, the 
        District of Columbia, Puerto Rico, Guam, the United States 
        Virgin Islands, American Samoa, or the Northern Mariana 
        Islands, or who are utilizing a foreign or domestic Army Post 
        Office, Fleet Post Office, or Diplomatic Post Office address. 
        For purposes of the preceding sentence, the determination of 
        the individual's residence shall be based on the address of 
        record, as of the date of certification under subsection (b) 
        for a payment under this section under a program specified in 
        paragraph (1).
            (3) No double payments.--An individual shall be paid only 1 
        payment for any non-COLA year under this section, regardless of 
        whether the individual is entitled to, or eligible for, more 
        than 1 benefit or cash payment described in paragraph (1).
            (4) Limitation.--A payment under this section shall not be 
        made (or, in the case of subparagraph (D), shall not be due)--
                    (A) in the case of an individual entitled to a 
                benefit specified in paragraph (1)(B)(i) or paragraph 
                (1)(B)(ii)(VIII) if, for any month within the 12-month 
                period ending with the month of payment, such 
                individual's benefit under such paragraph was not 
                payable by reason of subsection (x) or (y) of section 
                202 the Social Security Act (42 U.S.C. 402) or section 
                1129A of such Act (42 U.S.C. 1320a-8a);
                    (B) in the case of an individual entitled to a 
                benefit specified in paragraph (1)(B)(iii) if, for any 
                month within the 12-month period ending with the month 
                of payment, such individual's benefit under such 
                paragraph was not payable, or was reduced, 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)(C) if, for any month 
                within the 12-month period ending with the month of 
                payment, such individual's benefit under such paragraph 
                was not payable by reason of subsection (e)(1)(A) or 
                (e)(4) of section 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--
                            (i) before the date of the receipt of the 
                        payment; or
                            (ii) in the case of a direct deposit, 
                        before the date on which such payment is 
                        deposited into such individual's account.
                In the case of any individual whose date of death 
                occurs before a payment is negotiated (in the case of a 
                check) or deposited (in the case of a direct deposit), 
                such payment shall not be due and shall not be reissued 
                to the estate of such individual or to any other 
                person.
            (5) Timing and manner of payments.--The Secretary of the 
        Treasury shall commence disbursing payments under this section 
        at the earliest practicable date for any non-COLA year prior to 
        April 1 following such year. The Secretary of the Treasury may 
        disburse any payment electronically to an individual in such 
        manner as if such payment was a benefit payment or cash benefit 
        to such individual under the applicable program described in 
        subparagraph (B) or (C) of paragraph (1).
    (b) Identification of Recipients.--The Commissioner of Social 
Security, the Railroad Retirement Board, and the Secretary of Veterans 
Affairs shall certify the individuals entitled to receive payments 
under this section for each non-COLA year and provide the Secretary of 
the Treasury with the information needed to disburse such payments. A 
certification of an individual shall be unaffected by any subsequent 
determination or redetermination of the individual's entitlement to, or 
eligibility for, a benefit specified in subparagraph (B) or (C) of 
subsection (a)(1) (except that such certification shall be affected by 
a determination that an individual is an individual described in 
subparagraph (A), (B), (C), or (D) of subsection (a)(4) during a period 
described in such subparagraphs).
    (c) Treatment of Payments.--
            (1) Payment to be disregarded for purposes 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 following 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 or extent of benefits or assistance, 
        under any Federal program or under any State or local program 
        financed in whole or in part with Federal funds.
            (2) Payment not considered income for purposes of 
        taxation.--A payment under subsection (a) shall not be 
        considered as gross income for purposes of the Internal Revenue 
        Code of 1986.
            (3) Payments protected from assignment.--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 
        Retirement Act of 1974 (45 U.S.C. 231m(a)), and section 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 benefit to such individual under the applicable program 
        described in subparagraph (B) or (C) of subsection (a)(1).
            (4) Payments subject to offset.--Notwithstanding paragraph 
        (3)--
                    (A) any payment made under this section shall, in 
                the case of a payment of a direct deposit which is made 
                after the date of the enactment of this Act, be subject 
                to the reclamation provisions under subpart B of part 
                210 of title 31, Code of Federal Regulations (relating 
                to reclamation of benefit payments); and
                    (B) any payment made under this section shall not, 
                for purposes of section 3716 of title 31, United States 
                Code, be considered a benefit payment or cash benefit 
                made under the applicable program described in 
                subparagraph (B) or (C) of subsection (a)(1), and all 
                amounts paid shall be subject to offset to collect 
                delinquent debts.
    (d) Payment to Representative Payees and Fiduciaries.--
            (1) In general.--In any case in which an individual who is 
        entitled to a payment under subsection (a) and whose benefit 
        payment or cash benefit described in paragraph (1) of that 
        subsection is paid to a representative payee or fiduciary, the 
        payment under subsection (a) shall be made to the individual's 
        representative payee or fiduciary and the entire 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 paragraph (1)(B)(i) or (1)(C) 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 railroad retirement 
                benefit.--Section 13 of the Railroad Retirement Act (45 
                U.S.C. 231l) shall apply to any payment made on the 
                basis of an entitlement to a benefit specified in 
                paragraph (1)(B)(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 veterans 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)(B)(iii) of subsection (a) in the same 
                manner as those sections apply to a payment under that 
                title.

Summary: Social Security Safety Dividend Act - Directs the Secretary of the Treasury to disburse a $250 payment for a particular year to recipients of Social Security benefits, Supplemental Security Income (SSI) benefits (under title XVI of the Social Security Act), railroad retirement benefits, or veterans disability compensation or pension benefits if no cost-of-living adjustment (COLA) is payable for any month in such a year.