Title: Protecting and Preserving Social Security Act
Policy area: Social Welfare

Summary:
Protecting and Preserving Social Security Act
This bill revises methods for calculating various aspects of Social Security benefits, eliminates the cap on compensation subject to Social Security taxes, and extends eligibility for Social Security benefits during the month of a beneficiary's death.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4583 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  2d Session
                                S. 4583

 To amend title II of the Social Security Act and the Internal Revenue 
   Code of 1986 to make improvements in the old-age, survivors, and 
   disability insurance program, and to provide for Social Security 
                          benefit protection.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 21, 2022

  Ms. Hirono (for herself, Ms. Smith, and Mr. Merkley) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
 To amend title II of the Social Security Act and the Internal Revenue 
   Code of 1986 to make improvements in the old-age, survivors, and 
   disability insurance program, and to provide for Social Security 
                          benefit protection.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Protecting and 
Preserving Social Security Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title and table of contents.
                   TITLE I--COST-OF-LIVING INCREASES

Sec. 101. Consumer Price Index for Elderly Consumers.
Sec. 102. Computation of cost-of-living increases.
              TITLE II--CONTRIBUTION AND BENEFIT FAIRNESS

Sec. 201. Determination of wages and self-employment income above 
                            contribution and benefit base after 2022.
Sec. 202. Inclusion of surplus earnings in Social Security benefit 
                            formula.
Sec. 203. Preventing an unintended drop in benefits relating to the 
                            application of the National Average Wage 
                            Index.
  TITLE III--BENEFIT ADJUSTMENT OF SOCIAL SECURITY INCOME COMPENSATION

Sec. 301. Continuation of benefits through month of beneficiary's 
                            death.

                   TITLE I--COST-OF-LIVING INCREASES

SEC. 101. CONSUMER PRICE INDEX FOR ELDERLY CONSUMERS.

    (a) In General.--The Bureau of Labor Statistics of the Department 
of Labor shall prepare and publish an index for each calendar month to 
be known as the ``Consumer Price Index for Elderly Consumers'' that 
indicates changes over time in expenditures for consumption which are 
typical for individuals in the United States who are 62 years of age or 
older.
    (b) Effective Date.--Subsection (a) shall apply with respect to 
calendar months ending on or after July 31 of the calendar year 
following the calendar year in which this Act is enacted.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out the provisions of 
this section.

SEC. 102. COMPUTATION OF COST-OF-LIVING INCREASES.

    (a) In General.--Section 215(i)(1) of the Social Security Act (42 
U.S.C. 415(i)(1)) is amended by adding at the end the following new 
subparagraph:
                    ``(H) the term `Consumer Price Index' means the 
                Consumer Price Index for Elderly Consumers (CPI-E, as 
                published 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 by adding at the end the following 
        new subparagraph:
                    ``(D) the term `Consumer Price Index' means the 
                Consumer Price Index for Elderly Consumers (CPI-E, as 
                published by the Bureau of Labor Statistics of the 
                Department of Labor).''.
            (2) Conforming amendment.--Section 215(i)(4) of the Social 
        Security Act (42 U.S.C. 415(i)(4)) is amended by inserting 
        ``and by section 102 of the Protecting and Preserving Social 
        Security Act'' after ``1986''.
    (c) No Effect on Adjustments Under Other Laws.--Section 215(i) of 
the Social Security Act (42 U.S.C. 415(i)) is amended by adding at the 
end the following:
            ``(6) Any provision of law (other than in this title or 
        title XVI) which provides for adjustment of an amount based on 
        a change in benefit amounts resulting from a determination made 
        under this subsection shall be applied and administered without 
        regard to the amendments made by section 102 of the Protecting 
        and Preserving Social Security Act.''.
    (d) No Effect on Eligibility for SSI and Medicaid.--Any increase to 
an individual's monthly benefit amount under title II of the Social 
Security Act as a result of the amendments made by this section shall 
not be regarded as income or resources for any subsequent month, 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 the Supplemental Security 
Income program or the Medicaid program.
    (e) Effective Date.--The amendments made by this section shall 
apply to determinations made with respect to cost-of-living computation 
quarters (as defined in section 215(i)(1)(B) of the Social Security Act 
(42 U.S.C. 415(i)(1)(B))) ending on or after September 30 of the second 
calendar year following the calendar year in which this Act is enacted.

              TITLE II--CONTRIBUTION AND BENEFIT FAIRNESS

SEC. 201. DETERMINATION OF WAGES AND SELF-EMPLOYMENT INCOME ABOVE 
              CONTRIBUTION AND BENEFIT BASE AFTER 2022.

    (a) Determination of Wages Above Contribution and Benefit Base 
After 2022.--
            (1) Amendments to the internal revenue code of 1986.--
        Section 3121 of the Internal Revenue Code of 1986 is amended--
                    (A) in subsection (a)(1), by inserting ``the 
                applicable percentage (determined under subsection 
                (c)(1)) of'' before ``that part of the remuneration'', 
                and
                    (B) in subsection (c), by striking ``(c) Included 
                and Excluded Service.--For purposes of this chapter, 
                if'' and inserting the following:
    ``(c) Special Rules for Wages and Employment.--
            ``(1) Applicable percentage of remuneration in determining 
        wages.--For purposes of paragraph (1) of subsection (a), the 
        applicable percentage for a calendar year, in connection with 
        any calendar year referred to in such paragraph, shall be the 
        percentage determined in accordance with the following table:

                                                         The applicable
``In the case of:                                        percentage is:
        Calendar year 2023.................................         86 
        Calendar year 2024.................................         71 
        Calendar year 2025.................................         57 
        Calendar year 2026.................................         43 
        Calendar year 2027.................................         29 
        Calendar year 2028.................................         14 
        Calendar years after 2028..........................          0.

            ``(2) Included and excluded service.--For purposes of this 
        chapter, if''.
            (2) Amendments to the social security act.--Section 209 of 
        the Social Security Act (42 U.S.C. 409) is amended--
                    (A) in subsection (a)(1)--
                            (i) in subparagraph (I)--
                                    (I) by inserting ``and before 
                                2023'' after ``1974''; and
                                    (II) by inserting ``and'' after the 
                                semicolon; and
                            (ii) by adding at the end the following new 
                        subparagraph:
                    ``(J) The applicable percentage (determined under 
                subsection (l)) of that part of remuneration which, 
                after remuneration (other than remuneration referred to 
                in the succeeding subsections of this section) equal to 
                the contribution and benefit base (determined under 
                section 230) with respect to employment has been paid 
                to an individual during any calendar year after 2022 
                with respect to which such contribution and benefit 
                base is effective, is paid to such individual during 
                such calendar year;''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(l) For purposes of subparagraph (J) of subsection (a)(1), the 
applicable percentage for a calendar year, in connection with any 
calendar year referred to in such subparagraph, shall be the percentage 
determined in accordance with the following table:

                                                         The applicable
``In the case of:                                        percentage is:
        Calendar year 2023.................................         86 
        Calendar year 2024.................................         71 
        Calendar year 2025.................................         57 
        Calendar year 2026.................................         43 
        Calendar year 2027.................................         29 
        Calendar year 2028.................................         14 
        Calendar years after 2028..........................       0.''.

            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to remuneration paid in calendar years 
        after 2022.
    (b) Determination of Self-Employment Income Above Contribution and 
Benefit Base After 2022.--
            (1) Amendments to the internal revenue code of 1986.--
        Section 1402 of the Internal Revenue Code of 1986 is amended--
                    (A) in subsection (b)(1), by inserting ``an amount 
                equal to the applicable percentage (as determined under 
                subsection (d)(2)) of'' before ``that part of the net 
                earnings from self-employment'', and
                    (B) in subsection (d)--
                            (i) by striking ``(d) Employee and Wages.--
                        The term'' and inserting the following:
    ``(d) Rules and Definitions.--
            ``(1) Employee and wages.--The term'', and
                            (ii) by adding at the end the following:
            ``(2) Applicable percentage of net earnings from self-
        employment in determining self-employment income.--For purposes 
        of paragraph (1) of subsection (b), the applicable percentage 
        for a taxable year beginning in any calendar year referred to 
        in such paragraph shall be the percentage determined in 
        accordance with the following table:

                                                         The applicable
``In the case of:                                        percentage is:
        Calendar year 2023.................................         86 
        Calendar year 2024.................................         71 
        Calendar year 2025.................................         57 
        Calendar year 2026.................................         43 
        Calendar year 2027.................................         29 
        Calendar year 2028.................................         14 
        Calendar years after 2028..........................       0.''.

            (2) Amendments to the social security act.--Section 211 of 
        the Social Security Act (42 U.S.C. 411) is amended--
                    (A) in subsection (b)--
                            (i) in paragraph (1)(I)--
                                    (I) by striking ``or'' after the 
                                semicolon; and
                                    (II) by inserting ``and before 
                                2023'' after ``1974'';
                            (ii) by redesignating paragraph (2) as 
                        paragraph (3); and
                            (iii) by inserting after paragraph (1) the 
                        following new paragraph:
            ``(2) For any taxable year beginning in any calendar year 
        after 2022, an amount equal to the applicable percentage (as 
        determined under subsection (l)) of that part of net earnings 
        from self-employment which is in excess of (A) an amount equal 
        to the contribution and benefit base (determined under section 
        230) that is effective for such calendar year, minus (B) the 
        amount of the wages paid to such individual during such taxable 
        year; or''; and
                    (B) by adding at the end the following:
    ``(l) For purposes of paragraph (2) of subsection (b), the 
applicable percentage for a taxable year beginning in any calendar year 
referred to in such paragraph, shall be the percentage determined in 
accordance with the following table:

                                                         The applicable
``In the case of:                                        percentage is:
        Calendar year 2023.................................         86 
        Calendar year 2024.................................         71 
        Calendar year 2025.................................         57 
        Calendar year 2026.................................         43 
        Calendar year 2027.................................         29 
        Calendar year 2028.................................         14 
        Calendar years after 2028..........................       0.''.

            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to taxable years beginning during or 
        after calendar year 2023.

SEC. 202. INCLUSION OF SURPLUS EARNINGS IN SOCIAL SECURITY BENEFIT 
              FORMULA.

    (a) Inclusion of Surplus Average Indexed Monthly Earnings in 
Determination of Primary Insurance Amounts.--
            (1) In general.--Section 215(a)(1)(A) of the Social 
        Security Act (42 U.S.C. 415(a)(1)(A)) is amended--
                    (A) in clauses (i), (ii), and (iii), by inserting 
                ``basic'' before ``average indexed monthly earnings'' 
                each place it appears;
                    (B) in clause (ii), by striking ``and'' at the end; 
                and
                    (C) by inserting after clause (iii) the following 
                new clauses:
            ``(iv) 3 percent of the individual's surplus average 
        indexed monthly earnings to the extent such surplus average 
        indexed monthly earnings do not exceed the excess of the amount 
        established for purposes of this clause by subparagraph (B) 
        over \1/12\ of the contribution and benefit base for the last 
        of such individual's computation base years, and
            ``(v) 0.25 percent of the sum of the individual's surplus 
        average indexed monthly earnings plus \1/12\ of the 
        contribution and benefit base for the last of such individual's 
        computation base years, to the extent such sum exceeds the 
        amount established for purposes of clause (iv) by subparagraph 
        (B).''.
            (2) Bend point for surplus earnings.--Section 215(a)(1)(B) 
        of such Act (42 U.S.C. 415(a)(1)(B)) is amended--
                    (A) in clause (ii), by striking ``the amounts so 
                established'' and inserting ``the amounts established 
                for purposes of clauses (i) and (ii) of subparagraph 
                (A)'';
                    (B) by redesignating clause (iii) as clause (v);
                    (C) in clause (v) (as redesignated), by inserting 
                ``or (iv)'' after ``clause (ii)''; and
                    (D) by inserting after clause (ii) the following 
                new clauses:
    ``(iii) For individuals who initially become eligible for old-age 
or disability insurance benefits, or who die (before becoming eligible 
for such benefits), in the calendar year 2023, the amount established 
for purposes of clause (iv) of subparagraph (A) shall be $8,933.
    ``(iv) For individuals who initially become eligible for old-age or 
disability insurance benefits, or who die (before becoming eligible for 
such benefits), in any calendar year after 2023, the amount established 
for purposes of clause (iv) of subparagraph (A) shall equal the product 
of the amount established with respect to the calendar year 2023 under 
clause (iii) of this subparagraph and the quotient obtained by 
dividing--
            ``(I)(aa) 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 made, or
            ``(bb) if higher (and if such second calendar year is after 
        2023), the highest national average wage index (as so defined) 
        for any calendar year before such second calendar year, by
            ``(II) the national average wage index (as so defined) for 
        2018.''.
    (b) Basic AIME and Surplus AIME.--
            (1) Basic aime.--Section 215(b)(1) of such Act (42 U.S.C. 
        415(b)(1)) is amended--
                    (A) by inserting ``basic'' before ``average''; and
                    (B) in subparagraph (A), by striking ``paragraph 
                (3)'' and inserting ``paragraph (3)(A)'' and by 
                inserting before the comma the following: ``to the 
                extent such total does not exceed the contribution and 
                benefit base for the applicable year''.
            (2) Surplus aime.--
                    (A) In general.--Section 215(b)(1) of such Act (as 
                amended by paragraph (1)) is amended--
                            (i) by redesignating subparagraphs (A) and 
                        (B) as clauses (i) and (ii), respectively;
                            (ii) by inserting ``(A)'' after ``(b)(1)''; 
                        and
                            (iii) by adding at the end the following 
                        new subparagraph:
    ``(B)(i) An individual's surplus average indexed monthly earnings 
shall be equal to the quotient obtained by dividing--
            ``(I) the total (after adjustment under paragraph (3)(B)) 
        of such individual's surplus earnings (determined under clause 
        (ii)) for such individual's benefit computation years 
        (determined under paragraph (2)), by
            ``(II) the number of months in those years.
    ``(ii) For purposes of clause (i) and paragraph (3)(B), an 
individual's surplus earnings for a benefit computation year are the 
total of such individual's wages paid in and self-employment income 
credited to such benefit computation year, to the extent such total 
(before adjustment under paragraph (3)(B)) exceeds the contribution and 
benefit base for such year.''.
                    (B) Conforming amendment.--The heading for section 
                215(b) of such Act is amended by striking ``Average 
                Indexed Monthly Earnings'' and inserting ``Basic 
                Average Indexed Monthly Earnings; Surplus Average 
                Indexed Monthly Earnings''.
            (3) Adjustment of surplus earnings for purposes of 
        determining surplus aime.--Section 215(b)(3) of such Act (42 
        U.S.C. 415(b)(3)) is amended--
                    (A) in subparagraph (A), by striking ``subparagraph 
                (B)'' and inserting ``subparagraph (C)'' and by 
                inserting ``and determination of basic average indexed 
                monthly income'' after ``paragraph (2)'';
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
    ``(B) For purposes of determining under paragraph (1)(B) an 
individual's surplus average indexed monthly earnings, the individual's 
surplus earnings (described in paragraph (2)(B)(ii)) for a benefit 
computation year shall be deemed to be equal to the product of--
            ``(i) the individual's surplus earnings for such year (as 
        determined without regard to this subparagraph), and
            ``(ii) the quotient described in subparagraph (A)(ii).''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to individuals who initially become eligible (within 
the meaning of section 215(a)(3)(B) of the Social Security Act) for 
old-age or disability insurance benefits under title II of the Social 
Security Act, or who die (before becoming eligible for such benefits), 
in any calendar year after 2022.

SEC. 203. PREVENTING AN UNINTENDED DROP IN BENEFITS RELATING TO THE 
              APPLICATION OF THE NATIONAL AVERAGE WAGE INDEX.

    (a) Modifications Related to Computation of Primary Insurance 
Amount.--Section 215 of the Social Security Act (42 U.S.C. 415) is 
amended--
            (1) in subsection (a)(1)(B)(ii)(I)--
                    (A) in subclause (I)--
                            (i) by striking ``the national'' and 
                        inserting ``(aa) the national''; and
                            (ii) by striking ``, by'' at the end and 
                        inserting ``; or''; and
                    (B) by adding at the end of subclause (I) the 
                following:
                            ``(bb) if higher (and if such second 
                        calendar year is after 2022), the highest 
                        national average wage index (as so defined) for 
                        any calendar year before such second calendar 
                        year, by''; and
            (2) in subsection (b)(3)(A)(ii)--
                    (A) in subclause (I)--
                            (i) by striking ``the national'' and 
                        inserting ``(aa) the national''; and
                            (ii) by striking ``, by'' at the end and 
                        inserting ``; or''; and
                    (B) by adding at the end of subclause (I) the 
                following:
                            ``(bb) if higher (and if such second 
                        calendar year is after 2022), the highest 
                        national average wage index (as so defined) for 
                        any calendar year before such second calendar 
                        year, by''.
    (b) Modification Related to Reduction of Benefits Based on 
Disability.--Section 224(f)(2)(B)(i) of such Act (42 U.S.C. 
424(f)(2)(B)(i)) is amended by inserting ``(or if higher (and if such 
calendar year is after 2022), the highest national average wage index 
(as so defined) for any calendar year before such calendar year)'' 
after ``made''.

  TITLE III--BENEFIT ADJUSTMENT OF SOCIAL SECURITY INCOME COMPENSATION

SEC. 301. CONTINUATION OF BENEFITS THROUGH MONTH OF BENEFICIARY'S 
              DEATH.

    (a) In General.--
            (1) Old-age insurance benefits.--Section 202(a) of the 
        Social Security Act (42 U.S.C. 402(a)) is amended by striking 
        ``the month preceding'' in the matter following subparagraph 
        (B).
            (2) Wife's insurance benefits.--
                    (A) In general.--Section 202(b)(1) of such Act (42 
                U.S.C. 402(b)(1)) is amended--
                            (i) by striking ``and ending with the 
                        month'' in the matter immediately following 
                        clause (ii) and inserting ``and ending with the 
                        month in which she dies or (if earlier) with 
                        the month'';
                            (ii) by striking subparagraph (E); and
                            (iii) by redesignating subparagraphs (F) 
                        through (K) as subparagraphs (E) through (J), 
                        respectively.
                    (B) Conforming amendment.--Section 202(b)(4)(B) of 
                such Act (42 U.S.C. 402(b)(4)(B)) is amended by 
                striking ``(E), (F), (H), or (J)'' and inserting ``(E), 
                (G), or (I)''.
            (3) Husband's insurance benefits.--
                    (A) In general.--Section 202(c)(1) of such Act (42 
                U.S.C. 402(c)(1)) is amended--
                            (i) by striking ``and ending with the 
                        month'' in the matter immediately following 
                        clause (ii) and inserting ``and ending with the 
                        month in which he dies or (if earlier) with the 
                        month'';
                            (ii) by striking subparagraph (E); and
                            (iii) by redesignating subparagraphs (F) 
                        through (K) as subparagraphs (E) through (J), 
                        respectively.
                    (B) Conforming amendment.--Section 202(c)(4)(B) of 
                such Act (42 U.S.C. 402(c)(4)(B)) is amended by 
                striking ``(E), (F), (H), or (J)'' and inserting ``(E), 
                (G), or (I)''.
            (4) Child's insurance benefits.--Section 202(d)(1) of such 
        Act (42 U.S.C. 402(d)(1)) is amended--
                    (A) by striking ``and ending with the month'' in 
                the matter immediately preceding subparagraph (D) and 
                inserting ``and ending with the month in which such 
                child dies or (if earlier) with the month''; and
                    (B) by striking ``dies, or'' in subparagraph (D).
            (5) Widow's insurance benefits.--Section 202(e)(1) of such 
        Act (42 U.S.C. 402(e)(1)) is amended by striking ``ending with 
        the month preceding the first month in which any of the 
        following occurs: she remarries, dies, becomes entitled'' in 
        the matter following subparagraph (F) and inserting ``ending 
        with the month in which she dies or (if earlier) the month 
        preceding the earliest of the first month in which she 
        remarries, the month in which she becomes entitled''.
            (6) Widower's insurance benefits.--Section 202(f)(1) of 
        such Act (42 U.S.C. 402(f)(1)) is amended by striking ``ending 
        with the month preceding the first month in which any of the 
        following occurs: he remarries, dies, or becomes entitled'' in 
        the matter following subparagraph (F) and inserting ``ending 
        with the month in which he dies or (if earlier) the month 
        preceding the earliest of the first month in which he 
        remarries, the month in which he becomes entitled''.
            (7) Mother's and father's insurance benefits.--Section 
        202(g)(1) of such Act (42 U.S.C. 402(g)(1)) is amended--
                    (A) by inserting ``the month in which he or she 
                dies or (if earlier)'' after ``and ending with'' in the 
                matter following subparagraph (F); and
                    (B) by striking ``he or she remarries, or he or she 
                dies'' and inserting ``or he or she remarries''.
            (8) Parent's insurance benefits.--Section 202(h)(1) of such 
        Act (42 U.S.C. 402(h)(1)) is amended by striking ``ending with 
        the month preceding the first month in which any of the 
        following occurs: such parent dies, marries,'' in the matter 
        following subparagraph (E) and inserting ``ending with the 
        month in which such parent dies or (if earlier) the month 
        preceding the first month in which such parent marries''.
            (9) Disability insurance benefits.--Section 223(a)(1) of 
        such Act (42 U.S.C. 423(a)(1)) is amended by striking ``ending 
        with the month preceding whichever of the following months is 
        the earliest: the month in which he dies,'' in the matter 
        following subparagraph (D) and inserting the following: 
        ``ending with the month in which he dies or (if earlier) with 
        the month preceding the earlier of'' and by striking the comma 
        after ``216(l))''.
            (10) Benefits at age 72 for certain uninsured 
        individuals.--Section 228(a) of such Act (42 U.S.C. 428(a)) is 
        amended by striking ``the month preceding'' in the matter 
        following paragraph (4).
    (b) Computation and Payment of Last Monthly Payment.--
            (1) Old-age and survivors insurance benefits.--Section 202 
        of the Social Security Act (42 U.S.C. 402) is amended by adding 
        at the end the following new subsection:
    ``(aa) Prorated Payment Due to Death.--
            ``(1) Prorated payment for last month of entitlement.--In 
        the case of any monthly insurance benefit paid to an individual 
        under this section for the last month of entitlement to such 
        benefit (in any case in which eligibility for such benefit ends 
        because of such individual's death in such month), the amount 
        of such benefit under this section paid for such month shall be 
        an amount equal to--
                    ``(A) the amount of such benefit (as determined 
                without regard to this subsection), multiplied by
                    ``(B) a fraction--
                            ``(i) the numerator of which is the number 
                        of days in such month preceding (but not 
                        including) the date of such individual's death, 
                        and
                            ``(ii) the denominator of which is the 
                        number of days in such month,
                rounded, if not a multiple of $1, to the next lower 
                multiple of $1. This subsection shall apply with 
                respect to such benefit after all other adjustments 
                with respect to such benefit provided by this title 
                have been made. Payment of such benefit for such month 
                shall be made as provided in section 204(d).
            ``(2) Prorated payment for first month of entitlement.--In 
        the case of any monthly insurance benefit paid to an individual 
        under this section for the first month of entitlement to such 
        benefit (in any case in which eligibility for such benefit 
        begins because of the death in such month of another individual 
        on whose wages and self-employment income such benefit are 
        based), the amount of such benefit paid for such month shall be 
        an amount equal to--
                    ``(A) the amount of such benefit (as determined 
                without regard to this subsection), multiplied by
                    ``(B) a fraction--
                            ``(i) the numerator of which is the number 
                        of days in such month following and including 
                        the date of the death of the individual on 
                        whose wages and self-employment income such 
                        benefit is based, and
                            ``(ii) the denominator of which is the 
                        number of days in such month,
                rounded, if not a multiple of $1, to the next lower 
                multiple of $1. This subsection shall apply with 
                respect to such benefit after all other adjustments 
                with respect to such benefit provided by this title 
                have been made. Payment of such benefit for such month 
                shall be made as provided in section 204(d).
            ``(3) Payable to estate.--Any monthly insurance benefit 
        under this section for the month in which the individual 
        entitled to such benefit dies shall be paid to the estate of 
        the individual unless the individual has named another 
        individual as the payee for such payment.''.
            (2) Disability insurance benefits.--Section 223 of such Act 
        (42 U.S.C. 423) is amended by adding at the end the following 
        new subsection:
    ``(k) Last Payment of Benefit Terminated by Death.--(1) The amount 
of any individual's monthly benefit under this section paid for the 
month in which the individual dies shall be an amount equal to--
            ``(A) the amount of such benefit (as determined without 
        regard to this subsection), multiplied by
            ``(B) a fraction--
                    ``(i) the numerator of which is the number of days 
                in such month preceding (but not including) the date of 
                such individual's death, and
                    ``(ii) the denominator of which is the number of 
                days in such month,
rounded, if not a multiple of $1, to the next lower multiple of $1. 
This subsection shall apply with respect to such benefit after all 
other adjustments with respect to such benefit provided by this title 
have been made. Payment of such benefit for such month shall be made as 
provided in section 204(d).
    ``(2) Any monthly insurance benefit under this section for the 
month in which the individual entitled to such benefit dies shall be 
paid to the estate of the individual unless the individual has named 
another individual as the payee for such payment.''.
            (3) Benefits at age 72 for certain uninsured individuals.--
        Section 228 of such Act (42 U.S.C. 428) is amended by adding at 
        the end the following new subsection:
    ``(i) Last Payment of Benefit Terminated by Death.--(1) The amount 
of any individual's monthly benefit under this section paid for the 
month in which the individual dies shall be an amount equal to--
            ``(A) the amount of such benefit (as determined without 
        regard to this subsection), multiplied by
            ``(B) a fraction--
                    ``(i) the numerator of which is the number of days 
                in such month preceding (but not including) the date of 
                such individual's death, and
                    ``(ii) the denominator of which is the number of 
                days in such month,
rounded, if not a multiple of $1, to the next lower multiple of $1. 
This subsection shall apply with respect to such benefit after all 
other adjustments with respect to such benefit provided by this title 
have been made. Payment of such benefit for such month shall be made as 
provided in section 204(d).
    ``(2) Any monthly insurance benefit under this section for the 
month in which the individual entitled to such benefit dies shall be 
paid to the estate of the individual unless the individual has named 
another individual as the payee for such payment.''.
    (c) Disregard of Benefit for Month of Death Under Family Maximum 
Provisions.--Section 203(a) of the Social Security Act (42 U.S.C. 
403(a)) is amended by adding at the end the following new paragraph:
            ``(11) Notwithstanding any other provision of this Act, in 
        applying the preceding provisions of this subsection (and 
        determining maximum family benefits under column V of the table 
        in or deemed to be in section 215(a) as in effect in December 
        1978) with respect to the month in which the insured 
        individual's death occurs, the benefit payable to such 
        individual for that month shall be disregarded.''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to deaths occurring in the first month beginning 
more than 60 days after the date of enactment of this Act.
                                 <all>