H.R. 3585 (103rd): Social Security Entitlement Reform Amendments of 1993

103rd Congress, 1993–1994. Text as of Nov 20, 1993 (Introduced).

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HR 3585 IH

103d CONGRESS

1st Session

H. R. 3585

To amend title II of the Social Security Act to assure that the social security system remains viable for the baby boom generation and that the level of social security taxation remains affordable for their children.

IN THE HOUSE OF REPRESENTATIVES

November 20, 1993

Mr. PICKLE introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend title II of the Social Security Act to assure that the social security system remains viable for the baby boom generation and that the level of social security taxation remains affordable for their children.

    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 Entitlement Reform Amendments of 1993’.

SEC. 2. GRADUAL INCREASE IN RETIREMENT AGE TO AGE 70 BY THE YEAR 2029.

    (a) IN GENERAL- Section 216(l) of the Social Security Act (42 U.S.C. 416(l)) is amended--

      (1) by striking subparagraphs (B) through (E) of paragraph (1) and inserting the following:

      ‘(B) with respect to an individual who attains early retirement age after December 31, 1999, and before January 1, 2029, 65 years of age plus the number of months in the age increase factor (as determined under paragraph (3)) for the calendar year in which such individual attains early retirement age; and

      ‘(C) with respect to an individual who attains early retirement age after December 31, 2028, 70 years of age.’;

      and

      (2) by striking paragraph (3) and inserting the following:

    ‘(3) The age increase factor for any individual who attains early retirement age in the 30-year period consisting of calendar years 2000 through 2029 shall be equal to 2/12 of the number of months in the period beginning with January 2000 and ending with December of the year in which the individual attains early retirement age.’.

    (b) EFFECTIVE DATE- The amendments made by this section shall apply with respect to benefits of individuals attaining early retirement age (as defined in section 216(l)(2) of the Social Security Act) after 1999.

SEC. 3. REDUCTIONS IN BENEFITS FOR EARLY RETIREMENT.

    (a) IN GENERAL- Section 202(q)(1) of the Social Security Act (42 U.S.C. 402(q)(1)) is amended to read as follows:

    ‘(q)(1) If the first month for which an individual is entitled to an old-age, wife’s, husband’s, widow’s, widower’s, mother’s, or father’s insurance benefit is a month before the month in which such individual attains retirement age, the amount of such benefit for such month and for any subsequent month shall, subject to the succeeding paragraphs of this subsection, be reduced by a percentage of such amount, consisting of the sum of the primary reduction percentage for such benefit and (if any) the second, third, and fourth reduction percentages for such benefit, determined as follows:

      ‘(A) The primary reduction percentage for a benefit is the product derived by multiplying--

        ‘(i) the monthly reduction percentage for such benefit for the primary reduction phase for such benefit, by

        ‘(ii) the number of months in such primary reduction phase.

      ‘(B) The second reduction percentage for such benefit is the product derived by multiplying--

        ‘(i) the monthly reduction percentage for such benefit for the second reduction phase for such benefit, by

        ‘(ii) the number of months in such second reduction phase.

      ‘(C) The third reduction percentage for such benefit is the product derived by multiplying--

        ‘(i) the monthly reduction percentage for such benefit for the third reduction phase for such benefit, by

        ‘(ii) the number of months in such third reduction phase.

      ‘(D) The fourth reduction percentage for such benefit is the product derived by multiplying--

        ‘(i) the monthly reduction percentage for such benefit for the fourth reduction phase for such benefit, by

        ‘(ii) the number of months in such fourth reduction phase.’.

    (b) REDUCTION PHASES AND REDUCTION PERCENTAGES FOR SUCH PHASES- Section 202(q) of such Act (42 U.S.C. 402(q)) is further amended--

      (1) by striking paragraph (9);

      (2) by redesignating paragraphs (6), (7), and (8) as paragraphs (7), (8), and (9), respectively; and

      (3) by inserting after paragraph (5) the following new paragraph:

    ‘(6)(A) For purposes of this subsection--

      ‘(i) in the case of an old-age insurance benefit--

        ‘(I) the primary reduction phase consists of the last 36 months of the reduction period (determined under paragraph (7)), and the monthly reduction percentage for such phase is 5/9 of 1 percent,

        ‘(II) the second reduction phase consists of the months in such reduction period, not exceeding 12 in number, which precede the primary reduction phase, and the monthly reduction percentage for such phase is 5/12 of 1 percent,

        ‘(III) the third reduction phase consists of the months in such reduction period, not exceeding 24 in number, which precede the second reduction phase, and the monthly reduction percentage for such phase is 1/3 of 1 percent, and

        ‘(IV) the fourth reduction phase consists of the months in such reduction period which precede the third reduction phase, and the monthly reduction percentage for such phase is 7/24 of 1 percent,

      ‘(ii) in the case of a wife’s or husband’s insurance benefit--

        ‘(I) the primary reduction phase consists of the last 36 months in the reduction period (determined under paragraph (7)), and the monthly reduction percentage for such phase is 25/36 of 1 percent,

        ‘(II) the second reduction phase consists of the months in such reduction period, not exceeding 12 in number, which precede the primary reduction phase, and the monthly reduction percentage for such phase is 5/12 of 1 percent,

        ‘(III) the third reduction phase consists of the months in such reduction period, not exceeding 24 in number, which precede the second reduction phase, and the monthly reduction percentage for such phase is 1/3 of 1 percent, and

        ‘(IV) the fourth reduction phase consists of the months in such reduction period which precede the third reduction phase, and the monthly reduction percentage for such phase is 7/24 of 1 percent, and

      ‘(iii) in the case of a widow’s, widower’s, mother’s, or father’s insurance benefit--

        ‘(I) the primary reduction phase consists of the last 60 months in such reduction period (determined under paragraph (7)), and the monthly reduction percentage for such phase is 19/40 of 1 percent,

        ‘(II) the second reduction phase consists of the months in such reduction period, not exceeding 12 in number, which precede the primary reduction phase, and the monthly reduction percentage for such phase is 1/4 of 1 percent,

        ‘(III) the third reduction phase consists of the months in such reduction period, not exceeding 12 in number, which precede the second reduction phase, and the monthly reduction percentage for such phase is 5/24 of 1 percent, and

        ‘(IV) the fourth reduction phase consists of the months in such reduction period which precede the third reduction phase, and the monthly reduction percentage for such phase is 1/6 of 1 percent.

    ‘(B) Effective with any individual’s benefit (i) for the month in which such individual attains age 62, and (ii) for the month in which such individual attains retirement age (as defined in section 216(l)) and for each month (if earlier) in which such individual attains age 65, 66, 67, 68, or 69, if the number of months in the adjusted reduction period for such benefit (determined under paragraph (8) as of the end of such month) is less than the number of months in the reduction period (determined under paragraph (7)), then each reference to the reduction period in subparagraph (A) shall be deemed a reference to such adjusted reduction period (as so determined).’.

    (c) ADJUSTMENT TO MOTHER’S AND FATHER’S INSURANCE BENEFITS-

      (1) IN GENERAL- Section 202(g)(2) of such Act (42 U.S.C. 402(g)(2)) is amended to read as follows:

    ‘(2) Except as provided in subsection (q) and paragraph (4) of this subsection, such mother’s or father’s insurance benefit for each month shall be equal to the amount which would be the amount of such individual’s widow’s or widower’s insurance benefit for such month, if such individual had become entitled to such widow’s or widower’s insurance benefit in such individual’s first month of entitlement to such mother’s or father’s insurance benefit and had attained age 60 in that month.’.

      (2) CONFORMING AMENDMENT- Section 202(g)(1)(C) of such Act (42 U.S.C 402(g)(1)(C)) is amended by striking ‘three-fourths of the primary insurance amount of such individual’ and inserting ‘the amount which would be determined under paragraph (2) for such month upon entitlement under this subsection for such month’.

    (d) CONFORMING AMENDMENTS-

      (1) Section 202(q)(4) of such Act (42 U.S.C. 402(q)(4)) is amended by striking ‘paragraph (7)’ and inserting ‘paragraph (8)’.

      (2) Section 202(q)(8) of such Act (as redesignated by subsection (b)(2)) is amended by striking ‘paragraph (6)’ and inserting ‘paragraph (7)’.

      (3) Section 202(q)(10) of such Act (42 U.S.C. 402(q)(10)) is amended by striking ‘paragraph (8)’ and inserting ‘paragraph (9)’.

      (4) Section 202(s)(1) of such Act (42 U.S.C. 402(s)(1)) is amended by striking ‘(q)(7)’ and inserting ‘(q)(8)’.

    (e) EFFECTIVE DATES-

      (1) The amendments made by subsections (a), (b), and (d) shall apply with respect to benefits of individuals attaining early retirement age (as defined in section 216(l)(2) of the Social Security Act) after 1999.

      (2) The amendments made by subsection (c) shall apply with respect to benefits for which individuals first become eligible after December 1999. For purposes of this paragraph, an individual shall be treated as ‘eligible’ for a mother’s or father’s insurance benefit under section 202(g) of the Social Security Act if such individual meets all requirements for entitlement to such benefit under such section (as amended by subsection (c)) except the filing of an application for such benefit.

SEC. 4. REPEAL OF FURTHER INCREASES IN DELAYED RETIREMENT CREDIT.

    Section 202(w)(6) of the Social Security Act (42 U.S.C. 402(w)(6)) is amended--

      (1) in subparagraph (C), by striking ‘2005’ and inserting ‘1993’; and

      (2) in subparagraph (D), by striking ‘ 2/3 of 1 percent’ and inserting ‘ 3/8 of 1 percent’, and by striking ‘2004’ and inserting ‘1992’.

SEC. 5. PERMANENTLY ESTABLISHING AGE 65 AS CONVERSION AGE FROM ENTITLEMENT TO DISABILITY BENEFITS TO ENTITLEMENT TO OLD-AGE RETIREMENT BENEFITS.

    (a) SUBSTITUTION OF AGE 65 FOR RETIREMENT AGE WITH RESPECT TO TERMINATION OF DISABILITY INSURANCE BENEFITS- Section 223(a)(1) of the Social Security Act (42 U.S.C. 423(a)(1)) is amended, in subparagraph (B) and in the matter following subparagraph (D), by striking ‘retirement age (as defined in section 216(l))’ each place it appears and inserting ‘age 65’.

    (b) TRANSITION FROM ENTITLEMENT TO DISABILITY INSURANCE BENEFITS TO ENTITLEMENT TO OLD-AGE INSURANCE BENEFITS AT AGE 65- Section 202(a)(3) of such Act (42 U.S.C. 402(a)(3)) is amended by striking ‘retirement age (as defined in section 216(l))’ and inserting ‘age 65’.

    (c) DISABILITY INSURANCE BENEFIT LIMITED TO OLD-AGE INSURANCE BENEFIT AMOUNT COMPUTED AS IF MONTH OF ONSET OF DISABILITY WERE MONTH OF ATTAINMENT OF AGE 65- Section 223(a)(2) of such Act (42 U.S.C. 423(a)(2)) is amended--

      (1) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively;

      (2) by striking ‘(2) Except’ and inserting ‘(2)(A) Except’;

      (3) by inserting ‘and subparagraph (B) of this paragraph’ after ‘section 215(b)(2)(A)(ii)’;

      (4) in the last sentence, by striking ‘subparagraph (A) or (B)’ and inserting ‘clause (i) or (ii)’; and

      (5) by adding at the end the following new subparagraph:

    ‘(B) The amount determined under subparagraph (A) shall not exceed the amount which would be such individual’s old-age insurance benefit if--

      ‘(i) such individual were entitled to an old-age insurance benefit equal (without the application of section 202(q) to such old-age insurance benefit) to such individual’s disability insurance benefit as determined under subparagraph (A), and

      ‘(ii) section 202(q) were applied to such old-age insurance benefit as if such individual had attained age 65 in the first month, described in clause (i) or (ii) of subparagraph (A), which is applicable under subparagraph (A) in determining such individual’s benefit.’.

    (d) EFFECTIVE DATE- The amendments made by this section shall apply to any disability insurance benefit if the first month applicable under clause (i) or (ii) of section 223(a)(2)(A) of the Social Security Act (as amended by this section) in the case of such benefit occurs after July 2003.

SEC. 6. REPEAL OF LIMITATION ON DROP OUT YEARS FOR DISABLED WORKERS.

    (a) IN GENERAL- Section 215(b)(2)(A) of the Social Security Act (42 U.S.C. 415(b)(2)(A)) is amended to read as follows:

    ‘(2)(A) The number of an individual’s benefit computation years equals the number of elapsed years reduced by 5 years, except that the number of an individual’s benefit computation years shall in no case be less than two.’.

    (b) APPLICATION OF PRIOR APPLICABLE LAW- Section 215(b)(4) of such Act (42 U.S.C. 415(b)(4)) is amended in the first sentence by striking ‘except that’ and inserting ‘except that paragraph (2)(A) (as then in effect) shall be deemed to provide that the number of an individual’s ‘benefit computation years’ equals the number of elapsed years reduced by 5 years (subject to the rule that the number of an individual’s benefit computation years shall in no case be less than two), and that’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to any disability insurance benefit if the first month applicable under clause (i) or (ii) of section 223(a)(2)(A) of the Social Security Act (as amended by section 5) in the case of such benefit occurs after July 2003.

SEC. 7. BIENNIAL COST-OF-LIVING ADJUSTMENTS UNLESS ANNUAL ADJUSTMENT WOULD EXCEED 4 PERCENT.

    (a) IN GENERAL- Section 215(i)(1)(B) of the Social Security Act (42 U.S.C. 415(i)(1)(B)) is amended to read as follows:

      ‘(B) the term ‘cost-of-living computation quarter’ means a base quarter, as defined in subparagraph (A)(i); except that there shall be no cost-of-living computation quarter in any calendar year--

        ‘(i) if the base quarter, as defined in subparagraph (A)(i), in the prior calendar year was a cost-of-living computation quarter, and the applicable increase percentage does not exceed 4 percent, or

        ‘(ii) if in the year prior to such year a law has been enacted providing a general benefit increase under this title or if in such prior year such a general benefit increase becomes effective;’.

    (b) Continued Annual Adjustment of Earnings Test Exempt Amounts and Contribution and Benefit Base.

      (1) EXEMPT AMOUNT UNDER EARNINGS TEST- Section 203(f)(8)(A) of such Act (42 U.S.C. 403(f)(8)(A)) is amended--

        (A) by striking ‘Whenever’ and all that follows through ‘in which such quarter occurs’ and inserting ‘The Secretary shall determine and publish in the Federal Register on or before November 1 of each calendar year’;

        (B) by striking ‘the calendar year after the calendar year in which such benefit increase is effective’ and inserting ‘the subsequent calendar year’; and

        (C) by striking ‘the calendar year after the calendar year in which the benefit increase is effective’ and inserting ‘such subsequent calendar year’.

      (2) CONTRIBUTION AND BENEFIT BASE- Section 230(a) of such Act (42 U.S.C. 430(a)) is amended--

        (A) by striking ‘Whenever’ and all that follows through ‘in which such quarter occurs’ and inserting ‘The Secretary shall determine and publish in the Federal Register on or before November 1 of each calendar year’; and

        (B) by striking ‘the calendar year in which such quarter occurs’ and inserting ‘such calendar year’.

    (c) AMENDMENT TO PRIOR APPLICABLE LAW-

      (1) IN GENERAL- Section 215(i)(1)(B) of such Act (as in effect in December 1978 and applicable pursuant to section 215(i)(4) of such Act) is amended to read as follows:

      ‘(B) the term ‘cost-of-living computation quarter’ means a base quarter, as defined in subparagraph (A)(i); except that there shall be no cost-of-living computation quarter in any calendar year--

        ‘(i) if the base quarter, as defined in subparagraph (A)(i), in the prior calendar year was a cost-of-living computation quarter, and the applicable increase percentage does not exceed 4 percent, or

        ‘(ii) if in the year prior to such year a law has been enacted providing a general benefit increase under this title or if in such prior year such a general benefit increase becomes effective;’.

      (2) CONFORMING AMENDMENTS- Section 215(i)(4) of such Act (42 U.S.C. 415(i)(4)) is amended in the first sentence--

        (A) by striking ‘and by’ and inserting ‘by’; and

        (B) by inserting after ‘1986,’ the following: ‘and by section 7(c)(1) of the Social Security Entitlement Reform Amendments of 1993,’.

    (d) EFFECTIVE DATE- The amendments made by this section shall apply with respect to increases under section 215(i) of the Social Security Act which take effect with the month of December of years after 1999.

SEC. 8. REPEAL OF LIMITATION ON WIDOW’S AND WIDOWER’S INSURANCE BENEFITS BY REASON OF EARLY RETIREMENT OF THE DECEASED SPOUSE.

    (a) WIDOW’S INSURANCE BENEFITS-

      (1) IN GENERAL- Section 202(e)(2)(D) of the Social Security Act (42 U.S.C. 402(e)(2)(D)) is repealed.

      (2) CONFORMING AMENDMENTS- Section 202(e) of such Act is further amended--

        (A) in paragraph (2)(A), by striking ‘subsection (q), paragraph (7) of this subsection, and subparagraph (D) of this paragraph,’ and inserting ‘subsection (q) and paragraph (7) of this subsection,’; and

        (B) in paragraph (7)(A), by striking ‘subsections (q) and (k), paragraph (2)(D), and paragraph (3)’ and inserting ‘subsections (q) and (k) and paragraph (3)’.

    (b) WIDOWER’S INSURANCE BENEFITS-

      (1) IN GENERAL- Section 202(f)(3)(D) of such Act (42 U.S.C. 402(f)(3)(D)) is repealed.

      (2) CONFORMING AMENDMENTS- Section 202(f) of such Act is further amended--

        (A) in paragraph (2)(A), by striking ‘subsections (q) and (k), paragraph (3)(D), and paragraph (4)’ and inserting ‘subsections (q) and (k) and paragraph (4)’; and

        (B) in paragraph (3)(A), by striking ‘subsection (q), paragraph (2) of this subsection, and subparagraph (D) of this paragraph,’ and inserting ‘subsection (q) and paragraph (2) of this subsection,’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply with respect to benefits of individuals attaining early retirement age (as defined in section 216(l)(2) of the Social Security Act) after 1999.

SEC. 9. ADJUSTMENT IN REDUCTION OF WIDOW’S AND WIDOWER’S INSURANCE BENEFITS UPON ATTAINMENT OF AGE 80.

    Section 202(q) of the Social Security Act (42 U.S.C. 402(q)) is amended by adding at the end the following new paragraph:

    ‘(12) In the case of any individual’s widow’s or widower’s insurance benefit for any month in or after a year specified in the following table, if such individual has attained 80 years of age as of the end of such month, the percentage specified in such table in connection with such year shall be applied in paragraph (1) in lieu of the sum of reduction percentages specified in paragraph (1):

‘If the year is:

The specified percentage shall be:

After 2009 and before 2012


5/12 of 1 percent

After 2011 and before 2014


1/3 of 1 percent

After 2013 and before 2016


1/4 of 1 percent

After 2015 and before 2018


1/6 of 1 percent

After 2017


1/12 of 1 percent.’.

SEC. 10. GENERAL INCREASE IN BENEFITS FOR INDIVIDUALS ATTAINING AGE 80.

    (a) IN GENERAL- Section 202 of the Social Security Act (42 U.S.C. 402) is amended by adding at the end the following new subsection:

‘General Benefit Increase for Beneficiaries Over 80 Years of Age

    ‘(y)(1) The amount of a monthly insurance benefit under this section or section 223 which is payable without regard to this subsection to an individual for any month ending after such individual attains 80 years of age after 2004 shall be increased by the percentage increase specified, in connection with the year in which such individual attains such age, in the following table:

‘If the individual attains age 80 in:

The percentage increase in the individual’s benefit shall be:

2005


1 percent

2006


2 percent

2007


3 percent

2008


4 percent

2009 or a later year


5 percent.’.

    ‘(2) This subsection shall be applied after any reduction under section 203(a) and any increase under subsection (w).’.

    (b) ROUNDING- Section 215(g) of such Act (42 U.S.C. 415(g)) is amended--

      (1) by striking ‘and after’ and inserting ‘after’; and

      (2) by inserting ‘, and after any increase under section 202(y)’ after ‘section 1840(a)(1)’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply with respect to benefits for months after December 2004.

SEC. 11. INCREASE IN SURVIVING CHILD’S INSURANCE BENEFITS.

    Section 202(d)(2) of the Social Security Act (42 U.S.C. 402(d)(2)) is amended--

      (1) by inserting ‘(A)’ after ‘(2)’; and

      (2) by striking the last sentence and inserting at the end the following new subparagraph:

    ‘(B) Such child’s insurance benefit for each month shall, if the individual on the basis of whose wages and self-employment income the child is entitled to such benefit has died in or prior to such month, be equal to the applicable percentage of the primary insurance amount of such individual in connection with such child’s first month of entitlement, as set forth in the following table:

‘If the first month of entitlement occurs:

The applicable percentage of the primary insurance amount is:

Before 2000


75 percent

After 1999 and before 2010


80 percent

After 2009 and before 2025


85 percent

After 2024


90 percent.’.

SEC. 12. GRADUAL REDUCTION IN AGE NECESSARY FOR ELIGIBILITY FOR SUPPLEMENTAL SECURITY INCOME BENEFITS ON THE BASIS OF AGE.

    (a) IN GENERAL- Section 1614(a)(1)(A) of the Social Security Act (42 U.S.C. 1382c(a)(1)(A)) is amended to read as follows:

      ‘(A)(i) as of the end of a year specified in the following table, attains the age specified in such table in connection with such year:

‘If the year is:

The specified age is:

Before 2000


65 years

2000


64 years, 9 months

2001


64 years, 6 months

2002


64 years, 3 months

2003


64 years

2004


63 years, 9 months

2005


63 years, 6 months

2006


63 years, 3 months

2007


63 years

2008


62 years, 9 months

2009


62 years, 6 months

2010


62 years, 3 months

After 2010


62 years

      ‘(ii) is blind (as determined under paragraph (2)), or

      ‘(iii) is disabled (as determined under paragraph (3)), and’.

    (b) CONFORMING AMENDMENTS-

      (1) Section 1601 of such Act, as in effect pursuant to the amendment made by section 301 of the Social Security Amendments of 1972, (42 U.S.C. 1381) is amended by striking ‘have attained age 65 or are blind’ and inserting ‘are aged, blind,’.

      (2) Section 1612(b)(4) of such Act (42 U.S.C. 1382a(b)(4)) is amended--

        (A) in each of subparagraphs (A) and (B)--

          (i) by striking ‘not attained age 65’ and inserting ‘not, as of the end of a year specified in the table set forth in section 1614(a)(1)(A)(i), attained the age specified in such table in connection with such year’; and

          (ii) by striking ‘he attained age 65’ and inserting ‘such individual attained such age’; and

        (B) in subparagraph (C), by striking ‘attained age 65’ and inserting ‘, as of the end of a year specified in the table set forth in section 1614(a)(1)(A)(i), attained the age specified in such table in connection with such year’.

      (3) Section 1615(a)(1) of such Act (42 U.S.C. 1382d(a)(1)) is amended by striking ‘not attained age 65’ and inserting ‘not, as of the end of a year specified in the table set forth in section 1614(a)(1)(A)(i), attained the age specified in such table in connection with such year’.

      (4) Section 1620(a)(2) of such Act (42 U.S.C. 1382i(a)(2)) is amended by striking ‘under age 65’ and inserting ‘, as of the end of a year specified in the table set forth in section 1614(a)(1)(A)(i), have not attained the age specified in such table in connection with such year’.