<enum>I</enum><header>Cost-of-Living Increases</header> <section id="HB55D8ADA4CBF4335B28932BB975B0244" section-type="subsequent-section"><enum>101.</enum><header>Consumer Price Index for Elderly Consumers</header> <subsection id="H08AF12AC026541DFBFADCF89118D3F4D"><enum>(a)</enum><header>In General</header><text>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 <term>Consumer Price Index for Elderly Consumers</term> 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.</text> </subsection><subsection id="H5B2706A9AEA345FC8CFA002A23C21054"><enum>(b)</enum><header>Effective Date</header><text>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.</text> </subsection><subsection id="HD8FA2DEE790D4EAB9902951E0B994784"><enum>(c)</enum><header>Authorization of Appropriations</header><text>There are authorized to be appropriated such sums as are necessary to carry out the provisions of this section.</text> </subsection></section><section id="HE620964AB67B40F7910442AC729F6F2C"><enum>102.</enum><header>Computation of cost-of-living increases</header> <subsection id="HB92A8846F4194F998594843E0E3EBD30"><enum>(a)</enum><header>In general</header><text>Section 215(i)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C. 415(i)(1)</external-xref>) is amended by adding at the end the following new subparagraph:</text> <quoted-block id="H147FC1ADF17A4C1CA2493DFBB5F79A78" style="OLC"> <subparagraph id="H6C51DFB132E4401B8D582CF7500F7CF1"><enum>(H)</enum><text>the term <quote>Consumer Price Index</quote> means the Consumer Price Index for Elderly Consumers (CPI–E, as published by the Bureau of Labor Statistics of the Department of Labor).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HE41AC2A6E3714AA0BB020274472D40D2"><enum>(b)</enum><header>Application to pre-1979 law</header> <paragraph id="H991082738F324F8F9B5DB111B4064842"><enum>(1)</enum><header>In general</header><text>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:</text> <quoted-block id="HF6730E5DCCE4480EAFD3AD1A0D17D978" style="OLC"> <subparagraph id="H8A78B9812D6C4532A18D6CA1EB72A527"><enum>(D)</enum><text>the term <quote>Consumer Price Index</quote> means the Consumer Price Index for Elderly Consumers (CPI–E, as published by the Bureau of Labor Statistics of the Department of Labor).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HD408104722484D7DA32A07EABE92D0C8"><enum>(2)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Section 215(i)(4) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C. 415(i)(4)</external-xref>) is amended by inserting <quote>and by section 102 of the <short-title>Protecting and Preserving Social Security Act</short-title></quote> after <quote>1986</quote>.</text> </paragraph></subsection><subsection id="H311979BBE34A46B1A8BCE56B32DB0F50"><enum>(c)</enum><header>No effect on adjustments under other laws</header><text>Section 215(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C. 415(i)</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H74351B624CC74FC3A48C48F7ABE35782" style="OLC"> <paragraph id="H95063F8B166A43509793DC107840A3B3"><enum>(6)</enum><text>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 <short-title>Protecting and Preserving Social Security Act</short-title>.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HE2BCA9B1FE724F0B9F397456AA77CE48"><enum>(d)</enum><header>No effect on eligibility for SSI and Medicaid</header><text>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.</text> </subsection><subsection id="H7661211077E849D9ABF220E73EE56757"><enum>(e)</enum><header>Effective date</header><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C. 415(i)(1)(B)</external-xref>)) ending on or after September 30 of the second calendar year following the calendar year in which this Act is enacted.</text> </subsection></section>

115 HR 3302 IH: Protecting and Preserving Social Security Act U.S. House of Representatives 2017-07-19 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

Short title and table of contents

(a)

Short title

This Act may 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 2017.

Sec. 202. Inclusion of surplus earnings in Social Security benefit formula.

<enum>I</enum><header>Cost-of-Living Increases</header> <section id="HB55D8ADA4CBF4335B28932BB975B0244" section-type="subsequent-section"><enum>101.</enum><header>Consumer Price Index for Elderly Consumers</header> <subsection id="H08AF12AC026541DFBFADCF89118D3F4D"><enum>(a)</enum><header>In General</header><text>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 <term>Consumer Price Index for Elderly Consumers</term> 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.</text> </subsection><subsection id="H5B2706A9AEA345FC8CFA002A23C21054"><enum>(b)</enum><header>Effective Date</header><text>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.</text> </subsection><subsection id="HD8FA2DEE790D4EAB9902951E0B994784"><enum>(c)</enum><header>Authorization of Appropriations</header><text>There are authorized to be appropriated such sums as are necessary to carry out the provisions of this section.</text> </subsection></section><section id="HE620964AB67B40F7910442AC729F6F2C"><enum>102.</enum><header>Computation of cost-of-living increases</header> <subsection id="HB92A8846F4194F998594843E0E3EBD30"><enum>(a)</enum><header>In general</header><text>Section 215(i)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C. 415(i)(1)</external-xref>) is amended by adding at the end the following new subparagraph:</text> <quoted-block id="H147FC1ADF17A4C1CA2493DFBB5F79A78" style="OLC"> <subparagraph id="H6C51DFB132E4401B8D582CF7500F7CF1"><enum>(H)</enum><text>the term <quote>Consumer Price Index</quote> means the Consumer Price Index for Elderly Consumers (CPI–E, as published by the Bureau of Labor Statistics of the Department of Labor).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HE41AC2A6E3714AA0BB020274472D40D2"><enum>(b)</enum><header>Application to pre-1979 law</header> <paragraph id="H991082738F324F8F9B5DB111B4064842"><enum>(1)</enum><header>In general</header><text>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:</text> <quoted-block id="HF6730E5DCCE4480EAFD3AD1A0D17D978" style="OLC"> <subparagraph id="H8A78B9812D6C4532A18D6CA1EB72A527"><enum>(D)</enum><text>the term <quote>Consumer Price Index</quote> means the Consumer Price Index for Elderly Consumers (CPI–E, as published by the Bureau of Labor Statistics of the Department of Labor).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HD408104722484D7DA32A07EABE92D0C8"><enum>(2)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Section 215(i)(4) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C. 415(i)(4)</external-xref>) is amended by inserting <quote>and by section 102 of the <short-title>Protecting and Preserving Social Security Act</short-title></quote> after <quote>1986</quote>.</text> </paragraph></subsection><subsection id="H311979BBE34A46B1A8BCE56B32DB0F50"><enum>(c)</enum><header>No effect on adjustments under other laws</header><text>Section 215(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C. 415(i)</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H74351B624CC74FC3A48C48F7ABE35782" style="OLC"> <paragraph id="H95063F8B166A43509793DC107840A3B3"><enum>(6)</enum><text>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 <short-title>Protecting and Preserving Social Security Act</short-title>.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HE2BCA9B1FE724F0B9F397456AA77CE48"><enum>(d)</enum><header>No effect on eligibility for SSI and Medicaid</header><text>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.</text> </subsection><subsection id="H7661211077E849D9ABF220E73EE56757"><enum>(e)</enum><header>Effective date</header><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C. 415(i)(1)(B)</external-xref>)) ending on or after September 30 of the second calendar year following the calendar year in which this Act is enacted.</text> </subsection></section><enum>II</enum><header>Contribution and benefit fairness</header> <section display-inline="no-display-inline" id="H164E47BB30524FBA833C2A2D70FF78B7"><enum>201.</enum><header>Determination of wages and self-employment income above contribution and benefit base after 2017</header> <subsection id="HEB8D07DC2CBF4E448B01F6FF1F5DF7E2"><enum>(a)</enum><header>Determination of wages above contribution and benefit base after 2017</header> <paragraph id="HF26536DDF2984A989EF7DAFFCF7BC6CA"><enum>(1)</enum><header>Amendments to the Internal Revenue Code of 1986</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/3121">Section 3121</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <subparagraph id="HE23DE7AF857D47F5BF65EAC516F99E67"><enum>(A)</enum><text>in subsection (a)(1), by inserting <quote>the applicable percentage (determined under subsection (c)(1)) of</quote> before <quote>that part of the remuneration</quote>; and</text> </subparagraph><subparagraph id="H844E60CA0707435CA3089C9DD5BF387C"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (c), by striking <quote>(c) <header-in-text level="subsection" style="OLC">Included and excluded service.—</header-in-text>For purposes of this chapter, if</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H109AE690E0474D939BEAFFC93C30D6F9" style="OLC"> <subsection id="H64D034C81FD143B0ABD6BF5AC7150B72"><enum>(c)</enum><header>Special rules for wages and employment</header> <paragraph id="H14F1CC4BFB5D446F8E3C000FFD978F87"><enum>(1)</enum><header>Applicable percentage of remuneration in determining wages</header><text display-inline="yes-display-inline">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 subparagraph, shall be the percentage determined in accordance with the following table:</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" subformat="S6211" table-template-name="Flush/hang, 1 text, 1 num, bold hds" table-type="Leaderwork"> <tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="192.75pt" min-data-value="55"></colspec><colspec coldef="fig" colname="column2" colwidth="231.00pt" min-data-value="9"></colspec><thead> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>The applicable</bold></entry></row> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>In the case of:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>percentage is:</bold></entry></row></thead> <tbody> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2018</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">86%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2019</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">71%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2020</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">57%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2021</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">43%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2022</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">29%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2023</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">14%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar years after 2023</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">0%.</entry></row></tbody></tgroup></table> </paragraph><paragraph id="H70DB0DE6E5C04FFD99CC2890E61D87BA"><enum>(2)</enum><header>Included and excluded service</header><text display-inline="yes-display-inline">For purposes of this chapter, if</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H02C73CCF62744847BC5F6A1EA0D651B0"><enum>(2)</enum><header>Amendments to the Social Security Act</header><text>Section 209 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/409">42 U.S.C. 409</external-xref>) is amended—</text> <subparagraph id="HAA727C9A09C64875B89E8C24E0723C78"><enum>(A)</enum><text>in subsection (a)(1)—</text> <clause id="H7A41D0D4801F4CCEA4F6AAE1D86A814F"><enum>(i)</enum><text>in subparagraph (I)—</text> <subclause id="HCBBA72E1EDD14E23ACFA8F28AA963C66"><enum>(I)</enum><text>by inserting <quote>and before 2018</quote> after <quote>1974</quote>; and</text> </subclause><subclause id="H14CFCEDED0A24355A5B30A14B2ACAC79"><enum>(II)</enum><text>by inserting <quote>and</quote> after the semicolon; and</text> </subclause></clause><clause id="H63FD8302EEBF46F2840A6BBF1B4D806C"><enum>(ii)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="HAB96D85BD93845549E7C5179C4354165" style="OLC"> <subparagraph id="HAE5E9E6AFC4548C8AC6B1F1045AD44D8"><enum>(J)</enum><text display-inline="yes-display-inline">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 2017 with respect to which such contribution and benefit base is effective, is paid to such individual during such calendar year;</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph id="H284E921EC0814B528A17572FAF248510"><enum>(B)</enum><text display-inline="yes-display-inline">by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HA54432FFB8634C1AB16D10115670EE9F" style="OLC"> <subsection id="H8A85E0061A334EF3B336D34BD2841DD5"><enum>(l)</enum><text display-inline="yes-display-inline">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:</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" subformat="S6211" table-template-name="Flush/hang, 1 text, 1 num, bold hds" table-type="Leaderwork"> <tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="192.75pt" min-data-value="55"></colspec><colspec coldef="fig" colname="column2" colwidth="231.00pt" min-data-value="9"></colspec><thead> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>The applicable</bold></entry></row> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>In the case of:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>percentage is:</bold></entry></row></thead> <tbody> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2018</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">86%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2019</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">71%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2020</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">57%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2021</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">43%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2022</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">29%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2023</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">14%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar years after 2023</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">0%.</entry></row></tbody></tgroup></table></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H78F8B6E29D084479A84FC30DC6434951"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply with respect to remuneration paid in calendar years after 2017.</text> </paragraph></subsection><subsection id="H9A98D4DA80D94F559A24E06318ADC6BD"><enum>(b)</enum><header>Determination of self-Employment income above contribution and benefit base after 2017</header> <paragraph id="H88E03D96D2EF4427B03B7620AC0E31FE"><enum>(1)</enum><header>Amendments to the Internal Revenue Code of 1986</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1402">Section 1402</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <subparagraph id="H031DC06376314119931D2E980A28F1B8"><enum>(A)</enum><text>in subsection (b)(1), by inserting <quote>an amount equal to the applicable percentage (as determined under subsection (d)(2)) of</quote> before <quote>that part of the net earnings from self-employment</quote>; and</text> </subparagraph><subparagraph id="H3CCD0EB2B61C460EBE8FFD6F2C191370"><enum>(B)</enum><text>in subsection (d)—</text> <clause id="HEA2CAC6368FB46C9BA62BBE862C822E3"><enum>(i)</enum><text>by striking <quote>(d) <header-in-text level="subsection" style="OLC">Employee and wages.—</header-in-text>The term</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HD9A865F2288E4E63B2A80708D805D0B8" style="OLC"> <subsection id="H91821131E59340E58B4AF7FFDF511E0E"><enum>(d)</enum><header>Rules and definitions</header> <paragraph id="HCFDB03E89CF647058CD03B0675CA9361"><enum>(1)</enum><header>Employee and wages</header><text display-inline="yes-display-inline">The term</text></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </clause><clause id="H2847CE98D32B4689A1C1180256BD7F1C"><enum>(ii)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H5A4BA3D7AC9B4461BDC593CE83384A9E" style="OLC"> <paragraph id="HD08ACBF9EB3E4B03B34AE2D8C80C2AC1"><enum>(2)</enum><header>Applicable percentage of net earnings from self-employment in determining self-employment income</header><text display-inline="yes-display-inline">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:</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" subformat="S6211" table-template-name="Flush/hang, 1 text, 1 num, bold hds" table-type="Leaderwork"> <tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="192.75pt" min-data-value="55"></colspec><colspec coldef="fig" colname="column2" colwidth="231.00pt" min-data-value="9"></colspec><thead> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>The applicable</bold></entry></row> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>In the case of:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>percentage is:</bold></entry></row></thead> <tbody> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2018</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">86%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2019</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">71%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2020</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">57%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2021</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">43%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2022</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">29%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2023</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">14%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar years after 2023</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">0%.</entry></row></tbody></tgroup></table></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H19A2B6BE9FCD404AB22A304BF4AD82E5"><enum>(2)</enum><header>Amendments to the Social Security Act</header><text>Section 211 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/411">42 U.S.C. 411</external-xref>) is amended—</text> <subparagraph id="H5E735F95133F4F95A803D215DA12C59D"><enum>(A)</enum><text>in subsection (b)—</text> <clause id="H6A6B0174E65A4915AD0E91DDEABAB059"><enum>(i)</enum><text>in paragraph (1)(I)—</text> <subclause id="H3ECA8005097D48B297AF3B2C4B939611"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>or</quote> after the semicolon; and</text> </subclause><subclause id="H04FB3FF7B0F34546A83CB3D5B7900A3F"><enum>(II)</enum><text>by inserting <quote>and before 2018</quote> after <quote>1974</quote>;</text> </subclause></clause><clause id="H6B547DD73BF64040BBE530195827608F"><enum>(ii)</enum><text>by redesignating paragraph (2) as paragraph (3); and</text> </clause><clause id="H72184266031A471186EF8BC62FB8FC35"><enum>(iii)</enum><text>by inserting after paragraph (1) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H9BE00F80780440F1A576EFBCBB392839" style="OLC"> <paragraph id="H2B2DB5A8DFB641F5A06E12097C14F40A"><enum>(2)</enum><text display-inline="yes-display-inline">For any taxable year beginning in any calendar year after 2017, 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</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph id="H1C601617D162461E9E570744BDB3141B"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H59017F3852C64064B613DF9C4CC9097E" style="OLC"> <subsection id="H4456E7C9027B4AFBA4141EB16185F6BF"><enum>(l)</enum><text display-inline="yes-display-inline">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:</text> <table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" subformat="S6211" table-template-name="Flush/hang, 1 text, 1 num, bold hds" table-type="Leaderwork"> <tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="192.75pt" min-data-value="55"></colspec><colspec coldef="fig" colname="column2" colwidth="231.00pt" min-data-value="9"></colspec><thead> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>The applicable</bold></entry></row> <row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>In the case of:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>percentage is:</bold></entry></row></thead> <tbody> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2018</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">86%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2019</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">71%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2020</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">57%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2021</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">43%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2022</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">29%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar year 2023</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">14%</entry></row> <row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Calendar years after 2023</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">0%.</entry></row></tbody></tgroup></table></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H5736BB9BC9F64766AC9B64C2DD486D50"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply with respect to taxable years beginning during or after calendar year 2018.</text> </paragraph></subsection></section><section id="HF7D8D4A868F14037B94DB267141F7B77"><enum>202.</enum><header>Inclusion of surplus earnings in Social Security benefit formula</header> <subsection id="H6B63B516EE4C4E3F9F9BEDE6691B0A84"><enum>(a)</enum><header>Inclusion of surplus average indexed monthly earnings in determination of primary insurance amounts</header> <paragraph id="HE0083603CEB540379BF5548801AB8471"><enum>(1)</enum><header>In general</header><text>Section 215(a)(1)(A) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C. 415(a)(1)(A)</external-xref>) is amended—</text> <subparagraph id="H29833F5EA92B4FA8AA67878EF8C8C591"><enum>(A)</enum><text>in clauses (i), (ii), and (iii), by inserting <quote>basic</quote> before <quote>average indexed monthly earnings</quote> each place it appears;</text> </subparagraph><subparagraph id="H2394402AA9574EC7B788273F6709C34E"><enum>(B)</enum><text>in clause (ii), by striking <quote>and</quote> at the end; and</text> </subparagraph><subparagraph id="HB373A9CC65D9486FA480BD84A94F4CD9"><enum>(C)</enum><text>by inserting after clause (iii) the following new clauses:</text> <quoted-block display-inline="no-display-inline" id="HB1E30025C98A44139906A39CC8F37ED1" style="traditional"> <clause id="HB7FB9F36ACA04CAE8E64516BA37C2086" indent="up2"><enum>(iv)</enum><text>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 <fraction>1/12</fraction> of the contribution and benefit base for the last of such individual’s computation base years, and</text> </clause><clause id="H0BFB5027C510428E9D8818F4BB81411B" indent="up2"><enum>(v)</enum><text>0.25 percent of the sum of the individual’s surplus average indexed monthly earnings plus <fraction>1/12</fraction> 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).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="HF38BFA4A6FF14A64BA1FE9666678A481"><enum>(2)</enum><header>Bend point for surplus earnings</header><text>Section 215(a)(1)(B) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C. 415(a)(1)(B)</external-xref>) is amended—</text> <subparagraph id="H4054A99D397D455D94134867F758A10A"><enum>(A)</enum><text>in clause (ii), by striking <quote>the amounts so established</quote> and inserting <quote>the amounts established for purposes of clauses (i) and (ii) of subparagraph (A)</quote>;</text> </subparagraph><subparagraph id="HA829BF2A7DD447AD8613BE69850AF328"><enum>(B)</enum><text>by redesignating clause (iii) as clause (v);</text> </subparagraph><subparagraph id="HD1B277BFAAC54012BF47BAADD70DC022"><enum>(C)</enum><text display-inline="yes-display-inline">in clause (v) (as redesignated), by inserting <quote>or (iv) </quote> after <quote>clause (ii)</quote>; and</text> </subparagraph><subparagraph id="H536B1DA23F044958AFEBB6BFCD5F6B56"><enum>(D)</enum><text>by inserting after clause (ii) the following new clauses:</text> <quoted-block display-inline="no-display-inline" id="HC160E96FAADE418BB7C68DD0A5DDBDD4" style="traditional"> <clause id="HF8BE708D38C040F39500C822BC06FDC8" indent="up3"><enum>(iii)</enum><text display-inline="yes-display-inline">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 2018, the amount established for purposes of clause (iv) of subparagraph (A) shall be $10,958.</text> </clause><clause id="H3432D4E92CAB4DE489EC8AAD7A15020A" indent="up3"><enum>(iv)</enum><text>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 2018, 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 2018 under clause (iii) of this subparagraph and the quotient obtained by dividing—</text> <subclause id="H2D92059EFA444FAF87B1C9625B73F37E"><enum>(I)</enum><text display-inline="yes-display-inline">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, by</text> </subclause><subclause id="H37A348C679754E6FB38B6D0B30B7AA71"><enum>(II)</enum><text>the national average wage index (as so defined) for 2016.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection id="H067AC874555544A78D1F07CA4A0C82F7"><enum>(b)</enum><header>Basic AIME and surplus AIME</header> <paragraph id="HAB11DE5C01544A62B85C41B4EC387419"><enum>(1)</enum><header>Basic AIME</header><text display-inline="yes-display-inline">Section 215(b)(1) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C. 415(b)(1)</external-xref>) is amended—</text> <subparagraph id="H11591204DB054DAAA807FA2BB21538AE"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>basic</quote> before <quote>average</quote>; and</text> </subparagraph><subparagraph id="HEBC5C034F2A344A1871580DF4C89A883"><enum>(B)</enum><text>in subparagraph (A), by striking <quote>paragraph (3)</quote> and inserting <quote>paragraph (3)(A)</quote> and by inserting before the comma the following: <quote>to the extent such total does not exceed the contribution and benefit base for the applicable year</quote>.</text> </subparagraph></paragraph><paragraph id="H367F40B958C54CB1A7655BD6E6EC7566"><enum>(2)</enum><header>Surplus AIME</header> <subparagraph id="H631F78529A7B4052AE5A37E1D87F0C95"><enum>(A)</enum><header>In general</header><text>Section 215(b)(1) of such Act (as amended by paragraph (1)) is amended—</text> <clause id="HF88CE8CDF459491EAD14AE0412B4B65D"><enum>(i)</enum><text>by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively;</text> </clause><clause id="H352C909214A746B28BB234CDAFACCF97"><enum>(ii)</enum><text>by inserting <quote>(A)</quote> after <quote>(b)(1)</quote>; and</text> </clause><clause id="H655ABACCACEB4663AEE2B98228585295"><enum>(iii)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H050EE2FC08124909BCE00B94BFA0A34C" style="traditional"> <subparagraph id="H2B82094F10FD49769798CEDA7262C56D" indent="up2"><enum>(B)</enum> <clause commented="no" display-inline="yes-display-inline" id="HDDA81C33EEF04E38A3C14AF6593A71DC"><enum>(i)</enum><text>An individual’s surplus average indexed monthly earnings shall be equal to the quotient obtained by dividing—</text> <subclause id="HB745DDBCD25144E0B694047613311544" indent="up1"><enum>(I)</enum><text>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</text> </subclause><subclause id="HCD97FCA1996148839AE3D1124AB8DBE6" indent="up1"><enum>(II)</enum><text>the number of months in those years.</text> </subclause></clause><clause id="HC79DB2FB41EA4F9AB537F7D8B42D9C8F" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph id="HC7C599B926054A80BEE4188D072031C8"><enum>(B)</enum><header>Conforming amendment</header><text>The heading for section 215(b) of such Act is amended by striking <quote>Average Indexed Monthly Earnings</quote> and inserting <quote>Basic Average Indexed Monthly Earnings; Surplus Average Indexed Monthly Earnings</quote>.</text> </subparagraph></paragraph><paragraph id="H426802DA173F41D3A4483AF65C37B691"><enum>(3)</enum><header>Adjustment of surplus earnings for purposes of determining surplus AIME</header><text>Section 215(b)(3) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C. 415(b)(3)</external-xref>) is amended—</text> <subparagraph id="HB8497258AB2845FEBB35C74A90732017"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>subparagraph (B)</quote> and inserting <quote>subparagraph (C)</quote> and by inserting <quote>and determination of basic average indexed monthly income</quote> after <quote>paragraph (2)</quote>;</text> </subparagraph><subparagraph id="HD03C52A97179428CBA1240EAA77ECDE6"><enum>(B)</enum><text>by redesignating subparagraph (B) as subparagraph (C); and</text> </subparagraph><subparagraph id="HF5B128E432EA490D85B1DAEE335D60D6"><enum>(C)</enum><text>by inserting after subparagraph (A) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H87647EF1229C438C9A1EC4015F683AE6" style="traditional"> <subparagraph id="HF33A941ACB9F41249328C7FACA1EE336" indent="up2"><enum>(B)</enum><text>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—</text> <clause id="HC4F05CFB0E8945FE9E3C3C9C4CD5C2EC"><enum>(i)</enum><text>the individual’s surplus earnings for such year (as determined without regard to this subparagraph), and</text> </clause><clause id="H1F93F51017B7411B86D5913CC0658190"><enum>(ii)</enum><text>the quotient described in subparagraph (A)(ii).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H2403EE4D3C184EC8B63D6BE097018F75"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">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 2017.</text> </subsection></section>