I 112th CONGRESS 1st Session H. R. 2590 IN THE HOUSE OF REPRESENTATIVES July 19, 2011 Mr. Crowley (for himself, Ms. Brown of Florida, Mr. Conyers, Mr. DeFazio, Mr. Farr, Mr. Higgins, Mr. Jackson of Illinois, Mr. Lewis of Georgia, Mr. Lipinski, Mr. Rahall, Mr. Reyes, Ms. Sewell, Mr. Towns, Mr. Wu, Mr. Deutch, Mr. Thompson of Mississippi, Mr. Pascrell, Mr. McGovern, and Mr. Filner) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Transportation and Infrastructure and Veterans’ Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To ensure that seniors, veterans, and people with disabilities who receive Social Security and certain other Federal benefits, as well as Federal, State, and local government retirees, receive a one-time $250 payment due to there being no cost-of-living adjustment in 2011.

1.

Short title

This Act may be cited as the Seniors Protection Act of 2011.

2.

Payment in lieu of a cost-of-living adjustment to recipients of social security, supplemental security income, railroad retirement benefits, and veterans disability compensation or pension benefits

(a)

Authority To Make Payments

(1)

Eligibility

(A)

In general

Subject to paragraph (5)(B), the Secretary of the Treasury shall disburse a $250 payment to each individual who, for any month during the 3-month period ending with the month which ends prior to the month that includes the date of the enactment of this Act, is entitled to a benefit payment described in clause (i), (ii), or (iii) of subparagraph (B) or is eligible for a SSI cash benefit described in subparagraph (C). In the case of an individual who is eligible for a payment under this subparagraph by reason of entitlement to a benefit described in subparagraph (B)(i), no such payment shall be made to such individual unless such individual was paid a benefit described in such subparagraph (B)(i) for any month in the 12-month period ending with the month which ends prior to the month that includes the date of the enactment of this Act. (B)

Benefit payment described

For purposes of subparagraph (A): (i)

Title II benefit

A benefit payment described in this clause is a monthly insurance benefit payable (without regard to sections 202(j)(1) and 223(b) of the Social Security Act (42 U.S.C. 402(j)(1), 423(b))) under— (I)section 202(a) of such Act (42 U.S.C. 402(a)); (II)section 202(b) of such Act (42 U.S.C. 402(b)); (III)section 202(c) of such Act (42 U.S.C. 402(c)); (IV)section 202(d)(1)(B)(ii) of such Act (42 U.S.C. 402(d)(1)(B)(ii)); (V)section 202(e) of such Act (42 U.S.C. 402(e)); (VI)section 202(f) of such Act (42 U.S.C. 402(f)); (VII)section 202(g) of such Act (42 U.S.C. 402(g)); (VIII)section 202(h) of such Act (42 U.S.C. 402(h)); (IX)section 223(a) of such Act (42 U.S.C. 423(a)); (X)section 227 of such Act (42 U.S.C. 427); or (XI)section 228 of such Act (42 U.S.C. 428). (ii)

Railroad retirement benefit

A benefit payment described in this clause is a monthly annuity or pension payment payable (without regard to section 5(a)(ii) of the Railroad Retirement Act of 1974 (45 U.S.C. 231d(a)(ii))) under— (I)section 2(a)(1) of such Act (45 U.S.C. 231a(a)(1)); (II)section 2(c) of such Act (45 U.S.C. 231a(c)); (III)section 2(d)(1)(i) of such Act (45 U.S.C. 231a(d)(1)(i)); (IV)section 2(d)(1)(ii) of such Act (45 U.S.C. 231a(d)(1)(ii)); (V)section 2(d)(1)(iii)(C) of such Act to an adult disabled child (45 U.S.C. 231a(d)(1)(iii)(C)); (VI)section 2(d)(1)(iv) of such Act (45 U.S.C. 231a(d)(1)(iv)); (VII)section 2(d)(1)(v) of such Act (45 U.S.C. 231a(d)(1)(v)); or (VIII)section 7(b)(2) of such Act (45 U.S.C. 231f(b)(2)) with respect to any of the benefit payments described in clause (i) of this subparagraph. (iii)

Veterans benefit

A benefit payment described in this clause is a compensation or pension payment payable under— (I)section 1110, 1117, 1121, 1131, 1141, or 1151 of title 38, United States Code; (II)section 1310, 1312, 1313, 1315, 1316, or 1318 of title 38, United States Code; (III)section 1513, 1521, 1533, 1536, 1537, 1541, 1542, or 1562 of title 38, United States Code; or (IV)section 1805, 1815, or 1821 of title 38, United States Code, to a veteran, surviving spouse, child, or parent as described in paragraph (2), (3), (4)(A)(ii), or (5) of section 101, title 38, United States Code, who received that benefit during any month within the 3-month period ending with the month which ends prior to the month that includes the date of the enactment of this Act.(C)

SSI cash benefit described

A SSI cash benefit described in this subparagraph is a cash benefit payable under section 1611 (other than under subsection (e)(1)(B) of such section) or 1619(a) of the Social Security Act (42 U.S.C. 1382, 1382h). (2)

Requirement

A payment shall be made under paragraph (1) only to individuals who reside in 1 of the 50 States, the District of Columbia, Puerto Rico, Guam, the United States Virgin Islands, American Samoa, or the Northern Mariana Islands, or who are utilizing a foreign or domestic Army Post Office, Fleet Post Office, or Diplomatic Post Office address. For purposes of the preceding sentence, the determination of the individual's residence shall be based on the address of record, as of the date of certification under subsection (b) for a payment under this section. (3)

No double payments

An individual shall be paid only 1 payment under this section, regardless of whether the individual is entitled to, or eligible for, more than 1 benefit or cash payment described in paragraph (1). (4)

Limitation

A payment under this section shall not be made (or, in the case of subparagraph (D), shall not be due)— (A)in the case of an individual entitled to a benefit specified in paragraph (1)(B)(i) or paragraph (1)(B)(ii)(VIII) if— (i)for the most recent month of such individual's entitlement in the 3-month period described in paragraph (1), or (ii)for the month (as determined by the Commissioner of Social Security) in which such individual would, but for this paragraph, have been certified under subsection (b) to receive a payment under this section, such individual's benefit under such paragraph was not payable by reason of subsection (x) or (y) of section 202 of the Social Security Act (42 U.S.C. 402) or section 1129A of such Act (42 U.S.C. 1320a–8a);(B)in the case of an individual entitled to a benefit specified in paragraph (1)(B)(iii) if, for the most recent month of such individual's entitlement in the 3-month period described in paragraph (1), such individual's benefit under such paragraph was not payable, or was reduced, by reason of section 1505, 5313, or 5313B of title 38, United States Code; (C)in the case of an individual entitled to a benefit specified in paragraph (1)(C) if— (i)for such most recent month of such individual’s eligibility in the 3-month period described in paragraph (1), or (ii)for the month (as determined by the Commissioner of Social Security) in which such individual would, but for this paragraph, have been certified under subsection (b) to receive a payment under this section, such individual's benefit under such paragraph was not payable by reason of subsection (e)(1)(A) or (e)(4) of section 1611 (42 U.S.C. 1382) or section 1129A of such Act (42 U.S.C. 1320a–8a); or(D)in the case of any individual whose date of death occurs— (i)before the date of negotiation of a check payment to an individual certified under subsection (b) to receive a payment under this section; or (ii)in the case of a direct deposit, before the date on which such payment is deposited into such individual’s account. In the case of any individual whose date of death occurs before a payment under this section is negotiated (in the case of a check) or deposited (in the case of a direct deposit), such payment shall not be due and shall not be reissued to the estate of such individual or to any other person. In no case shall payment be made to, or on behalf of, an individual who is not alive at the time of issuance or reissuance.(5)

Timing and manner of payments

(A)

In general

The Secretary of the Treasury shall commence disbursing payments under this section at the earliest practicable date in 2011. The Secretary of the Treasury may disburse any payment electronically to an individual in such manner as if such payment was a benefit payment or cash benefit to such individual under the applicable program described in subparagraph (B) or (C) of paragraph (1). (B)

Deadline

No payments shall be disbursed under this section after December 31, 2011, regardless of any determinations of entitlement to, or eligibility for, such payments made after such date. (b)

Identification of Recipients

The Commissioner of Social Security, the Railroad Retirement Board, and the Secretary of Veterans Affairs shall certify the individuals entitled to receive payments under this section and provide the Secretary of the Treasury with the information needed to disburse such payments. A certification of an individual shall be unaffected by any subsequent determination or redetermination of the individual's entitlement to, or eligibility for, a benefit specified in subparagraph (B) or (C) of subsection (a)(1) (except that such certification shall be affected by a determination that an individual is an individual described in subparagraph (D) of subsection (a)(4) during a period described in such subparagraph), and no individual shall be certified to receive a payment under this section if such individual has at any time been denied certification for such a payment by reason of subparagraph (A)(ii) or (C)(ii) of subsection (a)(4) (unless such individual is subsequently determined not to have been an individual described in either such subparagraph at the time of such denial). (c)

Treatment of Payments

(1)

Payment to be disregarded for purposes of all federal and federally assisted programs

A payment under subsection (a) shall not be regarded as income and shall not be regarded as a resource for the month of receipt and the following 9 months, 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 any Federal program or under any State or local program financed in whole or in part with Federal funds. (2)

Payment not considered income for purposes of taxation

A payment under subsection (a) shall not be considered as gross income for purposes of the Internal Revenue Code of 1986. (3)

Payments protected from assignment

The provisions of sections 207 and 1631(d)(1) of the Social Security Act (42 U.S.C. 407, 1383(d)(1)), section 14(a) of the Railroad Retirement Act of 1974 (45 U.S.C. 231m(a)), and section 5301 of title 38, United States Code, shall apply to any payment made under subsection (a) as if such payment was a benefit payment or cash benefit to such individual under the applicable program described in subparagraph (B) or (C) of subsection (a)(1). (4)

Payments subject to offset and reclamation

Notwithstanding paragraph (3)— (A)any payment made under this section shall, in the case of a payment of a direct deposit, be subject to the reclamation provisions under subpart B of part 210 of title 31, Code of Federal Regulations (relating to reclamation of benefit payments); and (B)any payment made under this section shall not, for purposes of section 3716 of title 31, United States Code, be considered a benefit payment or cash benefit made under the applicable program described in subparagraph (B) or (C) of subsection (a)(1), and all amounts paid shall be subject to offset to collect delinquent debts. (d)

Payment to Representative Payees and Fiduciaries

(1)

In general

In any case in which an individual who is entitled to a payment under subsection (a) and whose benefit payment or cash benefit described in paragraph (1) of that subsection is paid to a representative payee or fiduciary, the payment under subsection (a) shall be made to the individual's representative payee or fiduciary and the entire payment shall be used only for the benefit of the individual who is entitled to the payment. (2)

Applicability

(A)

Payment on the basis of a title II or SSI benefit

Section 1129(a)(3) of the Social Security Act (42 U.S.C. 1320a–8(a)(3)) shall apply to any payment made on the basis of an entitlement to a benefit specified in paragraph (1)(B)(i) or (1)(C) of subsection (a) in the same manner as such section applies to a payment under title II or XVI of such Act. (B)

Payment on the basis of a railroad retirement benefit

Section 13 of the Railroad Retirement Act (45 U.S.C. 231l) shall apply to any payment made on the basis of an entitlement to a benefit specified in paragraph (1)(B)(ii) of subsection (a) in the same manner as such section applies to a payment under such Act. (C)

Payment on the basis of a veterans benefit

Sections 5502, 6106, and 6108 of title 38, United States Code, shall apply to any payment made on the basis of an entitlement to a benefit specified in paragraph (1)(B)(iii) of subsection (a) in the same manner as those sections apply to a payment under that title.

3.

Special credit for certain government retirees

(a)

In general

In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A of the Internal Revenue Code of 1986 for the first taxable year beginning in 2011 an amount equal $250 ($500 in the case of a joint return where both spouses are eligible individuals). (b)

Eligible individual

For purposes of this section— (1)

In general

The term eligible individual means any individual— (A)who receives during the first taxable year beginning in 2011 any amount as a pension or annuity for service performed in the employ of the United States or any State, the District of Columbia, Puerto Rico, Guam, the United States Virgin Islands, American Samoa, and the Northern Mariana Islands, or any instrumentality thereof, which is not considered employment for purposes of chapter 21 of the Internal Revenue Code of 1986, and (B)who does not receive a payment under section 2 during such taxable year. (2)

Identification number requirement

Such term shall not include any individual who does not include on the return of tax for the taxable year— (A)such individual’s social security account number, and (B)in the case of a joint return, the social security account number of one of the taxpayers on such return. For purposes of the preceding sentence, the social security account number shall not include a TIN (as defined in section 7701(a)(41) of the Internal Revenue Code of 1986) issued by the Internal Revenue Service. Any omission of a correct social security account number required under this subparagraph shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) of such Code to such omission.(c)

Treatment of credit

(1)

Refundable credit

The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986. (2)

Deficiency rules

For purposes of section 6211 of the Internal Revenue Code of 1986, the credit allowable by subsection (a) shall be treated in the same manner as a credit specified in section 6211(b)(4)(A) of such Code is treated. (d)

Refunds disregarded in the administration of federal programs and federally assisted programs

Any credit or refund allowed or made to any individual by reason of this section shall not be taken into account as income and shall not be taken into account as resources for the month of receipt and the following 2 months, for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.