1.This Act may be cited as
the Social Security Solvency Act of
2009
.
2.Progressive
indexing of benefits for old-age insurance benefits
(a)Section 215(a) of the Social Security Act (42 U.S.C.
415(a)) is amended—
(1)by striking
The
in paragraph (1)(A) and inserting With respect to any
benefit other than an applicable benefit to which paragraph (2) applies,
the
, and
(2)by redesignating
paragraphs (2) through (7) as paragraphs (3) through (8), respectively, and by
inserting after paragraph (1) the following new paragraph:
(2)(A)In the case of an
applicable benefit with respect to any individual who initially becomes
eligible for old-age insurance benefits or who dies (before becoming eligible
for such benefits) in calendar year 2012 or later, the primary insurance amount
of the individual shall be equal to the sum of—
(i)90 percent of the individual's average
indexed monthly earning (determined under subsection (b)) to the extent that
such earnings do not exceed the amount established for purposes of paragraph
(1)(A)(i) by paragraph (1)(B);
(ii)32 percent of the individual's
average indexed monthly earnings to the extent that such earnings exceed the
amount established for purposes of paragraph (1)(A)(i) by paragraph (1)(B) but
do not exceed the amount established for purposes of this clause by
subparagraph (B);
(iii)32 percent (reduced as provided in
subparagraph (C)) of the individual's average indexed monthly earnings to the
extent that such earnings exceed the amount established for purposes of clause
(ii) but do not exceed the amount established for purposes of paragraph
(1)(A)(ii) by paragraph (1)(B); and
(iv)15 percent (reduced as provided in
subparagraph (C)) of the individual's average indexed monthly earnings to the
extent that such earnings exceed the amount established for purposes of
paragraph (1)(A)(ii) by paragraph (1)(B).
(B)(i)For purposes of
subparagraph (A)(ii), the amount established under this subparagraph for
calendar year 2012 shall be the level of average indexed monthly earnings
determined by the Chief Actuary of the Social Security Administration under
clause (ii) as being at the 30th percentile for the period of calendar years
2001 through 2003.
(ii)For purposes of clause (i), the
average indexed monthly earnings for the period of calendar years 2001 through
2003 shall be determined by—
(I)determining the average indexed
monthly earnings for each individual who initially became eligible for old-age
insurance benefits or who died (before becoming eligible for such benefits)
during such period, except that in determining such average indexed monthly
earnings under subsection (b), subsection (b)(3)(A)(ii)(I) shall be applied by
substituting calendar year 2000 for the second calendar year described in such
subsection; and
(II)multiplying the amount determined for
each individual under subclause (I) by the quotient obtained by dividing the
national average wage index (as defined in section 209(k)(1)) for the calendar
year 2010 by such index for the calendar year 2000.
(iii)For purposes of subparagraph
(A)(ii), the amount established under this subparagraph for any calendar year
after 2012 shall be equal to the product of the amount in effect under clause
(i) with respect to calendar year 2012 and the quotient obtained by
dividing—
(I)the national average wage index (as
defined in section 209(k)(1)) for the second calendar year preceding the
calendar year for which the determination is being made, by
(II)the national average wage index (as
so defined) for 2010.
(iv)The amount established under this
subparagraph for any calendar year shall be rounded to the nearest $1, except
that any amount so established which is a multiple of $0.50 but not of $1 shall
be rounded to the next higher $1.
(C)(i)Except as provided in
clause (ii), in the case of any calendar year after 2011, each of the
percentages to which this subparagraph applies by reason of clauses (iii) or
(iv) of subparagraph (A) shall be a percentage equal to such percentage
multiplied by the quotient obtained by dividing—
(I)the difference of the maximum
CPI-indexed benefit amount for such year over the amount determined under this
paragraph for an individual whose average indexed monthly earnings are equal to
the amount established for purposes of subparagraph (A)(ii) for such year,
by
(II)the difference of the maximum
wage-indexed benefit amount for such year over the amount determined under this
paragraph for an individual whose average indexed monthly earnings are equal to
the amount established for purposes of subparagraph (A)(ii) for such
year.
(ii)(I)In the case of any
calendar year which is a positive balance year, clause (i) shall not apply and
each of the percentages to which this subparagraph applies by reason of clause
(iii) or (iv) of subparagraph (B) shall be a percentage equal to the percentage
determined under this subparagraph for the preceding year (determined after the
application of this subparagraph).
(II)In the case of any calendar year
after a positive balance year which is not a positive balance year, this
subparagraph shall be applied by substituting the second calendar year
preceding the most recent positive balance year
for 2009
each place it appears in clause (iv).
(iii)For purposes of clause (i), the
maximum wage-indexed benefit amount for any calendar year shall be equal to the
amount determined under this paragraph (determined without regard to any
reduction under this subparagraph) for an individual with wages paid in and
self-employment income credited to each computation base year in an amount
equal to the contribution and benefit base for each calendar year.
(iv)For purposes of clause (i), the
maximum CPI-indexed benefit amount for any calendar year shall be an amount
equal to the amount determined under clause (iii) for such year multiplied by a
fraction—
(I)the numerator of which is the ratio
(rounded to the nearest one-thousandth of 1 percent) of the Consumer Price
Index for the second preceding year to such index for 2009; and
(II)the denominator of which is the ratio
(rounded to the nearest one-thousandth of 1 percent) of the national wage index
(as defined in section 209(k)(1)) for the second year preceding such year to
such index for 2009.
(v)(I)For purposes of clause (i), a positive
balance year is a calendar year following any calendar year after 2050 for
which the Chief Actuary of the Social Security Administration certifies to the
Secretary of the Treasury and the Congress that the combined balance ratio of
the Federal Old-Age and Survivors Trust Fund and the Federal Disability
Insurance Trust Fund is not less than 100 percent for such year.
(II)For purposes of subclause (I), the combined
balance ratio of the Federal Old-Age and Survivors Trust Fund and the Federal
Disability Insurance Trust Fund for any calendar year is the ratio of the
combined balance of such Trust Funds as of the last day of such calendar year
(reduced by any transfer made pursuant to section 201(o) in such calendar year)
to the amount estimated by the Commissioner of Social Security under section
201(l)(3)(B)(iii)(II) to be paid from such Trust Funds during the calendar year
following such calendar year for all purposes authorized by section 201
(determined as if such following calendar year were a positive balance
year).
(D)For purposes of this paragraph, rules
similar to the rules of subparagraphs (C) and (D) of paragraph (1) shall
apply.
(E)For purposes of this paragraph, the
term applicable benefit means any benefit under section 202 other
than—
(i)a child's insurance benefit under
section 202(d) with respect to a child of an individual who has died;
(ii)a widow's insurance benefit under
section 202(e) with respect to a widow who has not attained age 60 and is under
a disability (as defined in section 223(d)) which began before the end of the
period specified in section 202(e)(4);
(iii)a widower's insurance benefit under
section 202(f) with respect to a widower who has not attained age 60 and is
under a disability (as defined in section 223(d)) which began before the end of
the period specified in section 202(f)(4); and
(iv)a mother's and father's insurance
benefit under section
202(g).
.
(b)
(1)Subsections
(e)(2)(B)(i)(I) and (f)(2)(B)(i)(I) of section 202 of the Social Security Act
are each amended by inserting or section 215(a)(2)(B)(iii)
after
section 215(a)(1)(B)(i) and (ii)
.
(2)Section 203(a)(1)
of such Act is amended—
(A)in subparagraph
(A)(i), by striking 215(a)(2)(B)(i)
and inserting
215(a)(3)(B)(i)
;
(B)in subparagraph
(A)(ii), by striking 215(a)(2)(C)
and inserting
215(a)(3)(C)
; and
(C)in subparagraph
(B)(ii), by striking 215(a)(2)
and inserting
215(a)(3)
.
(3)Section 209(k)(1) of such Act is amended by
inserting 215(a)(2)(B), 215(a)(2)(C),
after
215(a)(1)(D),
.
(4)Section 215(a) of
such Act is amended—
(A)in paragraph
(4)(A), as redesignated by paragraph (2), by striking paragraph
(4)
and inserting paragraph (5)
;
(B)in paragraph
(4)(B), as redesignated by paragraph (2), by striking paragraph
(2)(A)
and inserting paragraph (3)(A)
;
(C)in paragraph (5),
as redesignated by paragraph (2), by striking paragraph (3)(A)
and inserting paragraph (4)(A)
;
(D)in paragraph
(6)(A), as redesignated by paragraph (2), by striking paragraph
(4)(B)
and inserting paragraph (5)(B)
; and
(E)in paragraph
(8)(B)(ii)(I), as redesignated by paragraph (2), by striking paragraph
(3)(B)
and inserting paragraph (4)(B)
.
(5)Section 215(d)(3)
of such Act is amended—
(A)by striking
paragraph (4)(B)(ii)
and inserting paragraph
(5)(B)(ii)
; and
(B)by striking
subsection (a)(7)(C)
and inserting subsection
(a)(8)(C)
.
(6)Subsection 215(f)
of such Act is amended—
(A)in paragraph
(2)(B), by striking subsection (a)(4)(B)
and inserting
subsection (a)(5)(B)
;
(B)in paragraph (7),
by striking subsection (a)(6)
and inserting subsection
(a)(7)
;
(C)in paragraph
(9)(A)—
(i)by
striking subsection (a)(7)(A)
and inserting subsection
(a)(8)(A)
; and
(ii)by
striking subsection (a)(7)(C)
and inserting subsection
(a)(8)(C)
; and
(D)in paragraph
(9)(B), by striking subsection (a)(7)
each place it appears and
inserting subsection (a)(8)
.
3.Modification of
PIA factors to reflect changes in life expectancy
(a)
(1)Section 215(a)(2) of the
Social Security Act (42 U.S.C.
415(a)(2)), as added by this Act, is amended by redesignating
subparagraphs (D) and (E) as subparagraphs (E) and (F), respectively, and by
inserting after subparagraph (C) the following new subparagraph:
(D)(i)For individuals who
initially become eligible for old-age insurance benefits (or who die before
becoming eligible for such benefits) in any calendar year after 2017, each of
the percentages used for purposes of clauses (i), (ii), (iii), and (iv) of
subparagraph (A) (after the application of subparagraph (C) in the case of
subclauses (iii) and (iv) of subparagraph (A)) shall be multiplied by the life
expectancy ratio for such calendar year.
(ii)The Commissioner of Social Security
shall, through the Chief Actuary of the Social Security Administration, using
generally accepted actuarial principles, determine and publish in the Federal
Register on or before November 1 of each calendar year the life expectancy
ratio for the following calendar year.
(iii)For purposes of this subparagraph,
the life expectancy ratio for any calendar year is the ratio of—
(I)the period life expectancy based on
the computed death rates for 2013 of an individual at age 67, to
(II)the period life expectancy of an
individual at such age based on the computed death rates for the fourth
calendar year preceding the calendar year for which the life expectancy ratio
is determined under clause
(ii).
.
(2)Clauses (iii) and (iv) of section 215(a)(2)(A) of the
Social Security Act, as added by this Act, are each amended by striking
subparagraph (C)
and inserting subparagraphs (C) and
(F)
.
(b)Study regarding
life expectancy of disabled beneficiaries
(1)The Commissioner of Social Security shall conduct a study
on the feasibility of creating a separate life expectancy ratio under section
215(a)(2)(D) of the Social Security Act for individuals attaining early
retirement age who are receiving disability insurance benefits under title II
of such Act on the date the individual attains such age.
(2)Not
later than 1 year after the date of the enactment of this Act, the Commissioner
shall submit to Congress a report on the results of the study under paragraph
(1).
4.Treatment of
disabled beneficiariesSection
215(a) of the Social Security Act
(42 U.S.C.
415(a)), as amended by sections 2 and 3, is amended by adding
at the end the following new paragraph:
(9)(A)Notwithstanding the
preceding provisions of this subsection, in the case of an individual who has
or has had a period of disability and who initially becomes eligible for
old-age insurance benefits or who dies (before becoming eligible for such
benefits) in any calendar year in or after 2012, the primary insurance amount
of such individual shall be the sum of—
(i)the amount determined under
subparagraph (B); and
(ii)the product derived by
multiplying—
(I)the excess of the amount determined
under subparagraph (C) over the amount determined under subparagraph (B),
by
(II)the adjustment factor for such
individual determined under subparagraph (D).
(B)The amount determined under this
subparagraph is the amount of such individual’s primary insurance amount as
determined under this section without regard to this paragraph.
(C)The amount determined under this
subparagraph is the amount of such individual’s primary insurance amount as
determined under this section as in effect with respect to individuals becoming
eligible for old-age or disability insurance benefits under section 202(a) in
2008.
(D)The adjustment factor determined
under this subparagraph for any individual is the ratio (not greater than 1)
of—
(i)the total number of months during
which such individual is under a disability (as defined in section 223(d))
during the period beginning on the date the individual attains age 22 and
ending on the first day of such individual’s first month of eligibility for
old-age insurance benefits under section 202(a) (or, if earlier, the month of
such individual’s death), to
(ii)the number of months during the
period beginning on the date the individual attains age 22 and ending on the
first day of such individual’s first month of eligibility for old-age insurance
benefits under section 202(a) (or, if earlier, the month of such individual’s
death).
.
5.Acceleration of
increase in retirement age
(a)Increase in
retirement age to 67Section 216(l)(1) of the Social Security Act
(42 U.S.C. 416(l)(1)) is amended—
(1)in subparagraph
(C), by striking 2017
and inserting 2012
;
(2)in subparagraph
(D), by striking after December 31, 2016 and before January 1,
2022
and inserting after December 31, 2011 and before January 1,
2017
; and
(3)in subparagraph
(E), by striking 2021
and inserting 2016
.
(b)Subparagraph (B) of section 216(l)(3) of the Social
Security Act (42 U.S.C. 416(l)(3)(B)) is amended—
(1)by striking
calendar years 2017 through 2021
and inserting calendar
years 2012 through 2016
; and
(2)by striking
January 2017
and inserting January 2012
.
6.Maintenance of
adequate balances in the Social Security trust funds
(a)Section 201 of the Social Security Act (42 U.S.C. 401) is
amended by adding at the end the following new subsection:
(o)In addition to
amounts otherwise appropriated under the preceding provisions of this section
to the Trust Funds established under this section, there is hereby appropriated
for each fiscal year to each of such Trust Funds, from amounts in the general
fund of the Treasury not otherwise appropriated, such sums as may be necessary
from time to time to maintain the balance ratio (as defined in section 709(b))
of such Trust Fund, for the calendar year commencing during such fiscal year,
at not less than 100 percent. The sums to be appropriated under the preceding
sentence shall be determined by the Commissioner of Social Security and
certified by the Commissioner to each House of the Congress not later than
October 1 of such fiscal year. In making such determination and certification,
the Commissioner shall use the intermediate actuarial assumptions used by the
Board of Trustees of the Trust Funds in its most recent annual report to the
Congress prepared pursuant to subsection (c)(2). The Commissioner shall also
transmit a copy of any such certification to the Secretary of the Treasury, and
upon receipt thereof, such Secretary shall promptly take appropriate actions in
accordance with the
certification.
.
(b)The amendment made by subsection (a) shall apply with
respect to fiscal years beginning after the date of the enactment of this
Act.