Title: Social Security Solvency and Sustainability Act
Policy area: Social Welfare

Summary:
Social Security Solvency and Sustainability Act
This bill incrementally raises the full, early, and delayed retirement ages for Social Security retirement benefits and otherwise revises the Social Security program.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3234 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 3234

To adjust the normal and early retirement ages for receipt of benefits 
under the Social Security program, increase the maximum age for delayed 
   retirement credit, and provide for progressive price indexing of 
                               benefits.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 28, 2020

   Mr. Paul introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To adjust the normal and early retirement ages for receipt of benefits 
under the Social Security program, increase the maximum age for delayed 
   retirement credit, and provide for progressive price indexing of 
                               benefits.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Solvency and 
Sustainability Act''.

SEC. 2. ADJUSTMENT TO NORMAL AND EARLY RETIREMENT AGE.

    Section 216(l) of the Social Security Act (42 U.S.C. 416(l)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (D), by striking ``and'' at the 
                end;
                    (B) in subparagraph (E), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraphs:
                    ``(F) with respect to an individual who--
                            ``(i) attains 62 years of age after 
                        December 31, 2029, and before January 1, 2037, 
                        such individual's early retirement age (as 
                        determined under paragraph (2)(A)(ii)) plus 60 
                        months; or
                            ``(ii) receives a benefit described in 
                        paragraph (2)(B) and attains 60 years of age 
                        after December 31, 2029, and before January 1, 
                        2037, 67 years plus the number of months in the 
                        age increase factor (as determined under 
                        paragraph (5)(A)) for the calendar year in 
                        which such individual attains 60 years of age;
                    ``(G) with respect to an individual who--
                            ``(i) attains 62 years of age after 
                        December 31, 2036, and before January 1, 2038, 
                        69 years of age; or
                            ``(ii) receives a benefit described in 
                        paragraph (2)(B) and attains 60 years of age 
                        after December 31, 2036, and before January 1, 
                        2038, 69 years of age;
                    ``(H) with respect to an individual who--
                            ``(i) attains 62 years of age after 
                        December 31, 2037, and before January 1, 2041, 
                        67 years of age plus the number of months in 
                        the age increase factor (as determined under 
                        paragraph (5)(B)); or
                            ``(ii) receives a benefit described in 
                        paragraph (2)(B) and attains 60 years of age 
                        after December 31, 2037, and before January 1, 
                        2041, 67 years of age plus the number of months 
                        in the age increase factor (as determined under 
                        paragraph (5)(A));
                    ``(I) with respect to an individual who--
                            ``(i) attains 62 years of age after 
                        December 31, 2040, and before January 1, 2042, 
                        70 years of age; or
                            ``(ii) receives a benefit described in 
                        paragraph (2)(B) and attains 60 years of age 
                        after December 31, 2040, and before January 1, 
                        2042, 70 years of age; and
                    ``(J) with respect to an individual who--
                            ``(i) attains 62 years of age after 
                        December 31, 2041, 70 years of age plus the 
                        number of months in the age increase factor (as 
                        determined under paragraph (6)); or
                            ``(ii) receives a benefit described in 
                        paragraph (2)(B) and attains 60 years of age 
                        after December 31, 2041, 70 years of age plus 
                        the number of months in the age increase factor 
                        (as determined under paragraph (6)).'';
            (2) by amending paragraph (2) to read as follows:
            ``(2) The term `early retirement age' means--
                    ``(A) in the case of an old-age, wife's, or 
                husband's insurance benefit--
                            ``(i) 62 years of age with respect to an 
                        individual who attains such age before January 
                        1, 2030;
                            ``(ii) with respect to an individual who 
                        attains 62 years of age after December 31, 
                        2029, and before January 1, 2037, 62 years of 
                        age plus the number of months in the age 
                        increase factor (as determined under paragraph 
                        (4)) for the calendar year in which such 
                        individual attains 62 years of age; and
                            ``(iii) with respect to an individual who 
                        attains age 62 after December 31, 2036, 64 
                        years of age; or
                    ``(B) in the case of a widow's or widower's 
                insurance benefit, 60 years of age.''; and
            (3) by adding at the end the following new paragraphs:
            ``(4) For purposes of paragraph (2)(A)(ii), the age 
        increase factor shall be equal to three-twelfths of the number 
        of months in the period beginning with January 2030 and ending 
        with December of the year in which the individual attains 62 
        years of age.
            ``(5) The age increase factor shall be equal to three-
        twelfths of the number of months in the period beginning with 
        January 2030 and ending with December of the year in which--
                    ``(A) for purposes of paragraphs (1)(F)(ii) and 
                (1)(H)(ii), the individual attains 60 years of age; or
                    ``(B) for purposes of paragraph (1)(H)(i), the 
                individual attains 62 years of age.
            ``(6) The Commissioner of Social Security shall determine 
        (using reasonable actuarial assumptions) and publish on or 
        before November 1 of each calendar year after 2040 the number 
        of months (rounded, if not a multiple of one month, to the next 
        lower multiple of one month) by which life expectancy as of 
        October 1 of such calendar year of an individual attaining 
        early retirement age on such October 1 exceeds the life 
        expectancy as of October 1, 2041, of an individual attaining 
        early retirement age on October 1, 2041. With respect to an 
        individual who attains early retirement in the calendar year 
        following any calendar year in which a determination is made 
        under this paragraph, the age increase factor shall be the 
        number of months determined under this paragraph as of October 
        1 of such calendar year in which such determination is made.''.

SEC. 3. INCREASE IN MAXIMUM AGE FOR DELAYED RETIREMENT CREDIT.

    (a) In General.--Subsection (w) of section 202 of the Social 
Security Act (42 U.S.C. 402) is amended--
            (1) in paragraphs (2)(A) and (3), by striking ``age 70'' 
        each place it appears and inserting ``the maximum delayed 
        retirement age (as determined pursuant to paragraph (7))'';
            (2) by adding at the end the following new paragraph:
            ``(7) For purposes of paragraphs (2)(A) and (3), the 
        `maximum delayed retirement age' shall be equal to--
                    ``(A) during the period before January 1, 2030, 70 
                years of age for an individual who has attained early 
                retirement age (as determined under section 216(l)(2)) 
                during such period; and
                    ``(B) during the period after December 31, 2029, 
                the sum of--
                            ``(i) the retirement age for such calendar 
                        year, as determined under section 216(l)(1), 
                        for an individual who has attained age 62 (for 
                        purposes of section 216(l)(2)(A)) or who has 
                        attained age 60 (for purposes of section 
                        216(l)(2)(B)) during such calendar year; and
                            ``(ii) 3 years.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 2030.

SEC. 4. PROGRESSIVE INDEXING OF BENEFITS FOR OLD-AGE, WIFE'S, AND 
              HUSBAND'S INSURANCE BENEFITS.

    (a) In General.--Section 215(a) of the Social Security Act (42 
U.S.C. 415(a)) is amended--
            (1) by striking ``The'' in paragraph (1)(A) and inserting 
        ``In the case of any benefit other than an applicable benefit 
        to which paragraph (2) applies, the''; and
            (2) by redesignating paragraphs (2) through (7) as 
        paragraphs (3) through (8), respectively, and by inserting 
        after paragraph (1) the following new paragraph:
    ``(2)(A) In the case of an applicable benefit with respect to any 
individual who initially becomes eligible for old-age insurance 
benefits or who dies (before becoming eligible for such benefits) in 
calendar year 2027 or later, the primary insurance amount of the 
individual shall be equal to the sum of--
            ``(i) 90 percent of the individual's average indexed 
        monthly earning (determined under subsection (b)) to the extent 
        that such earnings do not exceed the amount established for 
        purposes of paragraph (1)(A)(i) by paragraph (1)(B);
            ``(ii) 32 percent of the individual's average indexed 
        monthly earnings to the extent that such earnings exceed the 
        amount established for purposes of paragraph (1)(A)(i) by 
        paragraph (1)(B) but do not exceed the amount established for 
        purposes of this clause by subparagraph (B);
            ``(iii) 32 percent (reduced as provided in subparagraph 
        (C)) of the individual's average indexed monthly earnings to 
        the extent that such earnings exceed the amount established for 
        purposes of clause (ii) but do not exceed the amount 
        established for purposes of paragraph (1)(A)(ii) by paragraph 
        (1)(B); and
            ``(iv) 15 percent (reduced as provided in subparagraph (C)) 
        of the individual's average indexed monthly earnings to the 
        extent that such earnings exceed the amount established for 
        purposes of paragraph (1)(A)(ii) by paragraph (1)(B).
    ``(B)(i) For purposes of subparagraph (A)(ii), the amount 
established under this subparagraph for calendar year 2025 shall be the 
level of average indexed monthly earnings determined by the Chief 
Actuary of the Social Security Administration under clause (ii) as 
being at the 40th percentile for the period of calendar years 2016 
through 2018.
    ``(ii) For purposes of clause (i), the average indexed monthly 
earnings for the period of calendar years 2016 through 2018 shall be 
determined by--
            ``(I) determining the average indexed monthly earnings for 
        each individual who initially became eligible for old-age 
        insurance benefits or who died (before becoming eligible for 
        such benefits) during such period, except that in determining 
        such average indexed monthly earnings under subsection (b), 
        subsection (b)(3)(A)(ii)(I) shall be applied by substituting 
        calendar year 2013 for the second calendar year described in 
        such subsection; and
            ``(II) multiplying the amount determined for each 
        individual under subclause (I) by the quotient obtained by 
        dividing the national average wage index (as defined in section 
        209(k)(1)) for the calendar year 2025 by such index for the 
        calendar year 2013.
    ``(iii) For purposes of subparagraph (A)(ii), the amount 
established under this subparagraph for any calendar year after 2027 
shall be equal to the product of the amount in effect under clause (i) 
with respect to calendar year 2027 and the quotient obtained by 
dividing--
            ``(I) the national average wage index (as defined in 
        section 209(k)(1)) for the second calendar year preceding the 
        calendar year for which the determination is being made; by
            ``(II) the national average wage index (as so defined) for 
        2025.
    ``(iv) The amount established under this subparagraph for any 
calendar year shall be rounded to the nearest $1, except that any 
amount so established which is a multiple of $0.50 but not of $1 shall 
be rounded to the next higher $1.
    ``(C)(i) Except as provided in clause (ii), in the case of any 
calendar year after 2026, each of the percentages to which this 
subparagraph applies by reason of clauses (iii) or (iv) of subparagraph 
(A) shall be a percentage equal to such percentage multiplied by the 
quotient obtained by dividing--
            ``(I) the difference of the maximum CPI-indexed benefit 
        amount for such year over the amount determined under this 
        paragraph for an individual whose average indexed monthly 
        earnings are equal to the amount established for purposes of 
        subparagraph (A)(ii) for such year; by
            ``(II) the difference of the maximum wage-indexed benefit 
        amount for such year over the amount determined under this 
        paragraph for an individual whose average indexed monthly 
        earnings are equal to the amount established for purposes of 
        subparagraph (A)(ii) for such year.
    ``(ii) In the case of any calendar year after 2064, clause (i) 
shall not apply and each of the percentages to which this subparagraph 
applies by reason of clause (iii) or (iv) of subparagraph (A) shall be 
a percentage equal to the percentage determined under this subparagraph 
for the preceding year (determined after the application of this 
subparagraph).
    ``(iii) For purposes of clause (i), the maximum wage-indexed 
benefit amount for any calendar year shall be equal to the amount 
determined under this paragraph (determined without regard to any 
reduction under this subparagraph) for an individual with wages paid in 
and self-employment income credited to each computation base year in an 
amount equal to the contribution and benefit base for each calendar 
year.
    ``(iv) For purposes of clause (i), the maximum CPI-indexed benefit 
amount for any calendar year shall be an amount equal to the amount 
determined under clause (iii) for such year multiplied by a fraction--
            ``(I) the numerator of which is the ratio (rounded to the 
        nearest one-thousandth of 1 percent) of the Consumer Price 
        Index for the second preceding year to such index for 2024; and
            ``(II) the denominator of which is the ratio (rounded to 
        the nearest one-thousandth of 1 percent) of the national wage 
        index (as defined in section 209(k)(1)) for the second year 
        preceding such year to such index for 2024.
    ``(D) For purposes of this paragraph, rules similar to the rules of 
subparagraphs (C) and (D) of paragraph (1) shall apply.
    ``(E) For purposes of this paragraph, the term `applicable benefit' 
means any benefit under section 202 other than--
            ``(i) a child's insurance benefit under section 202(d) with 
        respect to a child of an individual who has died; and
            ``(ii) a mother's and father's insurance benefit under 
        section 202(g).''.
    (b) Treatment of Disabled Beneficiaries.--Section 215(a) of such 
Act (as amended by subsection (a)) is amended further by adding at the 
end the following new paragraph:
    ``(9)(A) Notwithstanding the preceding provisions of this 
subsection, in the case of an individual who has or has had a period of 
disability and who initially becomes eligible for old-age insurance 
benefits or who dies (before becoming eligible for such benefits) in 
any calendar year in or after 2027, the primary insurance amount of 
such individual shall be the sum of--
            ``(i) the amount determined under subparagraph (B); and
            ``(ii) the product derived by multiplying--
                    ``(I) the excess of the amount determined under 
                subparagraph (C) over the amount determined under 
                subparagraph (B); by
                    ``(II) the adjustment factor for such individual 
                determined under subparagraph (D).
    ``(B) The amount determined under this subparagraph is the amount 
of such individual's primary insurance amount as determined under this 
section without regard to this paragraph.
    ``(C) The amount determined under this subparagraph is the amount 
of such individual's primary insurance amount as determined under this 
section as in effect with respect to individuals becoming eligible for 
old-age or disability insurance benefits under section 202(a) on the 
date of the enactment of the Social Security Solvency and 
Sustainability Act.
    ``(D) The adjustment factor determined under this subparagraph for 
any individual is the ratio (not greater than 1) of--
            ``(i) the total number of months during which such 
        individual is under a disability (as defined in section 223(d)) 
        during the period beginning on the date the individual attains 
        age 22 and ending on the first day of such individual's first 
        month of eligibility for old-age insurance benefits under 
        section 202(a) (or, if earlier, the month of such individual's 
        death); to
            ``(ii) the number of months during the period beginning on 
        the date the individual attains age 22 and ending on the first 
        day of such individual's first month of eligibility for old-age 
        insurance benefits under section 202(a) (or, if earlier, the 
        month of such individual's death).''.
    (c) Conforming Amendments.--
            (1) Subsections (e)(2)(B)(i)(I) and (f)(2)(B)(i)(I) of 
        section 202 of the Social Security Act are each amended by 
        inserting ``or section 215(a)(2)(B)(iii)'' after ``section 
        215(a)(1)(B)(i) and (ii)''.
            (2) Section 203(a)(10) of such Act is amended--
                    (A) in subparagraph (A)(i), by striking 
                ``215(a)(2)(B)(i)'' and inserting ``215(a)(3)(B)(i)'';
                    (B) in subparagraph (A)(ii), by striking 
                ``215(a)(2)(C)'' and inserting ``215(a)(3)(C)''; and
                    (C) in subparagraph (B)(ii), by striking 
                ``215(a)(2)'' and inserting ``215(a)(3)''.
            (3) Section 209(k)(1) of such Act is amended by inserting 
        ``215(a)(2)(B), 215(a)(2)(C),'' after ``215(a)(1)(D),''.
            (4) Section 215(a) of such Act is amended--
                    (A) in paragraph (4)(A), as redesignated by 
                subsection (a)(2), by striking ``paragraph (4)'' and 
                inserting ``paragraph (5)'';
                    (B) in paragraph (4)(B), as redesignated by 
                subsection (a)(2), by striking ``paragraph (2)(A)'' and 
                inserting ``paragraph (3)(A)'';
                    (C) in paragraph (5), as redesignated by subsection 
                (a)(2), by striking ``paragraph (3)(A)'' and inserting 
                ``paragraph (4)(A)'';
                    (D) in paragraph (6)(A), as redesignated by 
                subsection (a)(2), by striking ``paragraph (4)(B)'' and 
                inserting ``paragraph (5)(B)''; and
                    (E) in paragraph (8)(B)(ii)(I), as redesignated by 
                subsection (a)(2), by striking ``paragraph (3)(B)'' and 
                inserting ``paragraph (4)(B)''.
            (5) Section 215(d)(3) of such Act is amended--
                    (A) by striking ``paragraph (4)(B)(ii)'' and 
                inserting ``paragraph (5)(B)(ii)''; and
                    (B) by striking ``subsection (a)(7)(C)'' and 
                inserting ``subsection (a)(8)(C)''.
            (6) Subsection 215(f) of such Act is amended--
                    (A) in paragraph (2)(B), by striking ``subsection 
                (a)(4)(B)'' and inserting ``subsection (a)(5)(B)'';
                    (B) in paragraph (7), by striking ``subsection 
                (a)(4)(B)'' and inserting ``subsection (a)(5)(B)'', and 
                by striking ``subsection (a)(6)'' and inserting 
                ``subsection (a)(7)'';
                    (C) in paragraph (9)(A)--
                            (i) by striking ``subsection (a)(7)(A)'' 
                        and inserting ``subsection (a)(8)(A)''; and
                            (ii) by striking ``subsection (a)(7)(C)'' 
                        and inserting ``subsection (a)(8)(C)''; and
                    (D) in paragraph (9)(B), by striking ``subsection 
                (a)(7)'' each place it appears and inserting 
                ``subsection (a)(8)''.
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