1.Short title and table of
contents
(a)This Act may cited as
the Preserving Our Promise to Seniors
Act
.
(b)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—Guaranteed Supplemental Payment
Sec. 201. Relief payments to recipients of social security,
supplemental security income, railroad retirement benefits, and veterans
disability compensation or pension benefits.
Title III—Contribution and benefit fairness
Sec. 301. Determination of wages and self-employment income
above contribution and benefit base after 2011.
Sec. 302. Inclusion of surplus earnings in social security
benefit formula.
Title IV—Social security benefit protection
Sec. 401. Point of order against privatization of Social
Security or reductions in Social Security benefits.
<enum>I</enum><header>Cost-of-Living
Increases</header>
<section id="HB3BA2512C1D940BC99125091C3AA1552" section-type="subsequent-section"><enum>101.</enum><header>Consumer price index
for elderly consumers</header>
<subsection id="H7692AFEAB0954743BF2C2E867A5B986E"><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
<quote>Consumer Price Index for Elderly Consumers</quote> 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="H66AFE64FEBA24983A9B512A4F37D300A"><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="HE638D0ED137641459398B47994889770"><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="HC4FA42A7AB67452CB3D1CA5C0A596687"><enum>102.</enum><header>Computation of
cost-of-living increases</header>
<subsection id="H45E8B1C906A24BCE90697C96A0E426A9"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 215(i) of the
Social Security Act (42 U.S.C. 415(i)) is amended—</text>
<paragraph id="H27D402EDB08E4C699B592AE8DEB1B593"><enum>(1)</enum><text>in paragraph
(1)(G), by inserting before the period the following: <quote>, and, solely with
respect to any monthly insurance benefit payable under this title to an
individual who has attained age 62, effective for adjustments under this
subsection to the primary insurance amount on which such benefit is based (or
to any such benefit under section 227 or 228) occurring after such individual
attains such age, the applicable Consumer Price Index shall be deemed to be the
Consumer Price Index for Elderly Consumers and such primary insurance amount
shall be deemed adjusted under this subsection using such Index</quote>;
and</text>
</paragraph><paragraph id="H803ABE4AF1EC49B88B724FE80BEB5224"><enum>(2)</enum><text>in paragraph (4),
by striking <quote>and by section 9001</quote> and inserting <quote>, by
section 9001</quote>, and by inserting after <quote>1986,</quote> the
following: <quote>and by section 102 of the <short-title>Preserving Our Promise to Seniors
Act</short-title>,</quote>.</text>
</paragraph></subsection><subsection id="H37A01ABD8FBD42FB87B4F6DF627FDC57"><enum>(b)</enum><header>Conforming
amendments in applicable former law</header><text>Section 215(i)(1)(C) of such
Act, as in effect in December 1978 and applied in certain cases under the
provisions of such Act in effect after December 1978, is amended by inserting
before the period the following: <quote>, and, solely with respect to any
monthly insurance benefit payable under this title to an individual who has
attained age 62, effective for adjustments under this subsection to the primary
insurance amount on which such benefit is based (or to any such benefit under
section 227 or 228) occurring after such individual attains such age, the
applicable Consumer Price Index shall be deemed to be the Consumer Price Index
for Elderly Consumers and such primary insurance amount shall be deemed
adjusted under this subsection using such Index</quote>.</text>
</subsection><subsection id="H31D753181D28474A9185C306F7E7D161"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by subsection (a) shall apply to
determinations made with respect to cost-of-living computation quarters (as
defined in section 215(i)(1)(B) of the Social Security Act (42 U.S.C.
415(i)(1)(B))) ending on or after September 30 of the second calendar year
following the calendar year in which this Act is enacted.</text>
</subsection></section><enum>II</enum><header>Guaranteed
Supplemental Payment</header>
<section id="H2C628F595AF84E5BB32A364640DC5DAB"><enum>201.</enum><header>Relief payments
to recipients of social security, supplemental security income, railroad
retirement benefits, and veterans disability compensation or pension
benefits</header>
<subsection id="H8791DC8DD24043DBADB070EBB0BBEF46"><enum>(a)</enum><header>Authority To
make payments</header>
<paragraph id="HE3D1FCBBCDC4472CB1357B61D4A765B3"><enum>(1)</enum><header>Eligibility</header>
<subparagraph id="H7810615C26CF45EBBEF731C7E5FD5B3A"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of the
Treasury shall disburse a cash payment equal to $250 (or such greater amount as
may take effect under paragraph (2)), for each non-COLA year of a program
providing benefit payments described in clause (i), (ii), or (iii) of
subparagraph (C) or in subparagraph (D), to each individual who, for any month
during such year, is entitled to such a benefit payment under such
program.</text>
</subparagraph><subparagraph id="HB171131A9E95422C91D6C79AB99CF30B"><enum>(B)</enum><header>Non-cola
year</header><text>For purposes of this section, the term <quote>non-COLA
year</quote> means, in connection with a program referred to in subparagraph
(A), a 12-month period, ending with or during any calendar year after 2009, for
which—</text>
<clause id="H7BEF2DE1D4EE46199D344D2D36AE40E4"><enum>(i)</enum><text>a
cost-of-living adjustment is generally provided under such program in relation
to an index; and</text>
</clause><clause id="H9A911B5A0D734A2F9F63861BAAFEBD98"><enum>(ii)</enum><text>such an
adjustment does not take effect by reason of the performance of such
index.</text>
</clause></subparagraph><subparagraph id="H2BDE4E03E7104767A723FE28E99DDA06"><enum>(C)</enum><header>Benefit payment
described</header><text>For purposes of subparagraph (A):</text>
<clause id="H8C62D3FCD9B0448C814A3DFA07D363A6"><enum>(i)</enum><header>Title II
benefit</header><text>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 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.
402(j)(1), 423(b)) under—</text>
<subclause id="H58CD69B283254D53BAB2FC95B420585B"><enum>(I)</enum><text>section 202(a) of
such Act (42 U.S.C. 402(a));</text>
</subclause><subclause id="H6FFD64F94362416DAEE409271F94EEB6"><enum>(II)</enum><text>section 202(b) of
such Act (42 U.S.C. 402(b));</text>
</subclause><subclause id="HAD285F349A674D8B8AFCB7FCCEA23A62"><enum>(III)</enum><text>section 202(c)
of such Act (42 U.S.C. 402(c));</text>
</subclause><subclause id="HC935DD75656844F3B62EA7E6383D58AC"><enum>(IV)</enum><text>section
202(d)(1)(B)(ii) of such Act (42 U.S.C. 402(d)(1)(B)(ii));</text>
</subclause><subclause id="H669B81AFCAEE400994D2F260E2D5DC2C"><enum>(V)</enum><text>section 202(e) of
such Act (42 U.S.C. 402(e));</text>
</subclause><subclause id="H96FB8977635447779893A1B2C96E8F19"><enum>(VI)</enum><text>section 202(f) of
such Act (42 U.S.C. 402(f));</text>
</subclause><subclause id="HABD638864D73462BBF3BA0ABC69B17F2"><enum>(VII)</enum><text>section 202(g)
of such Act (42 U.S.C. 402(g));</text>
</subclause><subclause id="HF7EC048C01444E029DF2DD40F40FC738"><enum>(VIII)</enum><text>section 202(h)
of such Act (42 U.S.C. 402(h));</text>
</subclause><subclause id="HCC87B5A7C89A43419E9AE68092591D55"><enum>(IX)</enum><text>section 223(a) of
such Act (42 U.S.C. 423(a));</text>
</subclause><subclause id="H71D13BBFA2534373BE827D580D0AC32E"><enum>(X)</enum><text>section 227 of
such Act (42 U.S.C. 427); or</text>
</subclause><subclause id="H8C32EB2648D04DBDAC9C7DF9FC1FF951"><enum>(XI)</enum><text>section 228 of
such Act (42 U.S.C. 428).</text>
</subclause></clause><clause id="H215399076811427CA2F2A932766F2F2A"><enum>(ii)</enum><header>Railroad
retirement benefit</header><text>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—</text>
<subclause id="H2E53C1B1C0AB4A21BBAAAED36D53D383"><enum>(I)</enum><text>section 2(a)(1) of
such Act (45 U.S.C. 231a(a)(1));</text>
</subclause><subclause id="HCDAE195957284BBE89BC77F039782B8A"><enum>(II)</enum><text>section 2(c) of
such Act (45 U.S.C. 231a(c));</text>
</subclause><subclause id="HE9A195F950C0469C9C7ABAC8B5B843EC"><enum>(III)</enum><text>section
2(d)(1)(i) of such Act (45 U.S.C. 231a(d)(1)(i));</text>
</subclause><subclause id="H1D7FBDC0BEFB4ED0B114350A5F3F99A0"><enum>(IV)</enum><text>section
2(d)(1)(ii) of such Act (45 U.S.C. 231a(d)(1)(ii));</text>
</subclause><subclause id="H2DB2E444AE134F8C871F1B70C4083345"><enum>(V)</enum><text>section
2(d)(1)(iii)(C) of such Act to an adult disabled child (45 U.S.C.
231a(d)(1)(iii)(C));</text>
</subclause><subclause id="H8526E78654A94F6EB28C078D7B6F3ED8"><enum>(VI)</enum><text>section
2(d)(1)(iv) of such Act (45 U.S.C. 231a(d)(1)(iv));</text>
</subclause><subclause id="H40A4755FB80B46BFA2D83AD68E5CD4E1"><enum>(VII)</enum><text>section
2(d)(1)(v) of such Act (45 U.S.C. 231a(d)(1)(v)); or</text>
</subclause><subclause id="HBAD55C43F4B54EA88F538B99929E284B"><enum>(VIII)</enum><text>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.</text>
</subclause></clause><clause id="HFC36D8D34AA24A98AFFDA181DD68896A"><enum>(iii)</enum><header>Veterans
benefit</header><text>A benefit payment described in this clause is a
compensation or pension payment payable under—</text>
<subclause id="HF344CC2BD13A4423AE58B3880FBDA577"><enum>(I)</enum><text>section 1110,
1117, 1121, 1131, 1141, or 1151 of title 38, United States Code;</text>
</subclause><subclause id="H5E4EC0A2002E48F7AD47CD19411DA993"><enum>(II)</enum><text>section 1310,
1312, 1313, 1315, 1316, or 1318 of title 38, United States Code;</text>
</subclause><subclause id="H1518CC1C4C6242A6B677645760E61634"><enum>(III)</enum><text>section 1513,
1521, 1533, 1536, 1537, 1541, 1542, or 1562 of title 38, United States Code;
or</text>
</subclause><subclause id="HFD68CF8048954E5CB62E209736031419"><enum>(IV)</enum><text>section 1805,
1815, or 1821 of title 38, United States Code,</text>
</subclause><continuation-text continuation-text-level="clause">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.</continuation-text></clause></subparagraph><subparagraph id="HF44FBB3E540A4E52945CB7CBF9A72AA6"><enum>(D)</enum><header>SSI cash benefit
described</header><text>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 <act-name parsable-cite="SSA">Social
Security Act</act-name> (42 U.S.C. 1382, 1382h).</text>
</subparagraph></paragraph><paragraph id="HF7BF5C47952B49E084B3E87560BDB633"><enum>(2)</enum><header>Cost-of-living
adjustment to payment</header>
<subparagraph id="H41F3CEED1A8A4FF382515103FEA151B6"><enum>(A)</enum><header>In
general</header><text>Effective for each 12-month period referred to in
paragraph (1)(B)(i) in connection with a program referred to in paragraph
(1)(A) (irrespective of whether such period is a non-COLA year) ending with or
during a calendar year after 2011, the dollar amount determined under this
paragraph shall be substituted for the dollar amount specified in paragraph
(1)(A). The dollar amount shall be determined by multiplying the dollar amount
specified in paragraph (1)(A) by the quotient obtained by dividing—</text>
<clause id="HD3FFF35699DB47FFB140F216FBAEF410"><enum>(i)</enum><text>the
Consumer Price Index for Elderly Consumers (published by the Bureau of Labor
Statistics of the Department of Labor) for the calendar quarter ending with
September preceding the 12-month period for which the determination is made,
by</text>
</clause><clause id="HE04A5658D6884538B8AC9CE0E2642357"><enum>(ii)</enum><text>such Index for
the calendar quarter ending with September 2010.</text>
</clause></subparagraph><subparagraph id="H69D204E250E04E47A383A273989ACC11"><enum>(B)</enum><header>Determination of
quarterly index</header><text>For purposes of subparagraph (A), the Consumer
Price Index for Elderly Consumers for a calendar quarter shall be the
arithmetical mean of such index for the 3 months in such quarter.</text>
</subparagraph></paragraph><paragraph commented="no" id="H6DDB7C6336714645B50488CEC6389F04"><enum>(3)</enum><header>Requirement</header><text>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. For
purposes of the preceding sentence, the determination of the individual's
residence shall be based on the current address of record under a program
specified in paragraph (1).</text>
</paragraph><paragraph id="H807B4681E6C84805B8DD6FDB2134D302"><enum>(4)</enum><header>No double
payments</header><text>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).</text>
</paragraph><paragraph id="H57CC35836C5749248B57177D492A0B5D"><enum>(5)</enum><header>Limitation</header><text>A
payment under this section shall not be made—</text>
<subparagraph id="H4DE950DBF723467D98B9BD1583963CF1"><enum>(A)</enum><text>in the case of an
individual entitled to a benefit specified in paragraph (1)(C)(i) or paragraph
(1)(C)(ii)(VIII) 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 by reason of subsection (x) or (y) of
section 202 of the <act-name parsable-cite="SSA">Social Security Act</act-name>
(42 U.S.C. 402) or section 1129A of such Act (42 U.S.C. 1320a–8a);</text>
</subparagraph><subparagraph id="HA9D2C68D623044349C370655131E596B"><enum>(B)</enum><text>in the case of an
individual entitled to a benefit specified in paragraph (1)(C)(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;</text>
</subparagraph><subparagraph id="H008533A31A89427B9B4AFB4EA4E4B9A7"><enum>(C)</enum><text>in the case of an
individual entitled to a benefit specified in paragraph (1)(D) if, for such
most recent month, 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</text>
</subparagraph><subparagraph id="H520D6B04D723424AB0522ED9859C2823"><enum>(D)</enum><text>in the case of any
individual whose date of death occurs before the date on which the individual
is certified under subsection (b) to receive a payment under this
section.</text>
</subparagraph></paragraph><paragraph id="HC7E7C9B75D554D1E9933C118D0093ABF"><enum>(6)</enum><header>Timing and
manner of payments</header><text display-inline="yes-display-inline">The
Secretary of the Treasury shall commence disbursing payments under this section
with respect to a non-COLA year at the earliest practicable date but in no
event later than 120 days after the later of the date of the enactment of this
Act or the end of such non-COLA year. 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 (C) or (D) of paragraph
(1).</text>
</paragraph></subsection><subsection id="HFA306B75B8E04DF097110B59DBCCB16E"><enum>(b)</enum><header>Identification
of recipients</header><text>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 (C) or (D) of
subsection (a)(1).</text>
</subsection><subsection id="HAA4EAA35A57F4799A738314BEB523D8D"><enum>(c)</enum><header>Treatment of
payments</header>
<paragraph id="HC374432602C34A0F9C5D61F99A694711"><enum>(1)</enum><header>Payment to be
disregarded for purposes of all federal and federally assisted
programs</header><text>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.</text>
</paragraph><paragraph id="HAA6F62D99DF94993A293CB4CBB152DD5"><enum>(2)</enum><header>Payment not
considered income for purposes of taxation</header><text>A payment under
subsection (a) shall not be considered as gross income for purposes of the
Internal Revenue Code of 1986.</text>
</paragraph><paragraph id="H9BDB33D40F5D4E46809EFEF6E8121B95"><enum>(3)</enum><header>Payments
protected from assignment</header><text>The provisions of sections 207 and
1631(d)(1) of the <act-name parsable-cite="SSA">Social Security Act</act-name>
(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 (C) or (D) of subsection (a)(1).</text>
</paragraph><paragraph id="HCF9CA31AA7EB4DC88656A5891D01B672"><enum>(4)</enum><header>Payments subject
to offset</header><text>Notwithstanding paragraph (3), for purposes of section
3716 of title 31, United States Code, any payment made under this section shall
not be considered a benefit payment or cash benefit made under the applicable
program described in subparagraph (C) or (D) of subsection (a)(1) and all
amounts paid shall be subject to offset to collect delinquent debts.</text>
</paragraph></subsection><subsection id="HB2E4F9C35DA44D4B95C3B7FE436A016C"><enum>(d)</enum><header>Payment to
representative payees and fiduciaries</header>
<paragraph id="H9F9DFE4DA232484B94C1944A01C2FBAF"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H07F8F01EEABB41049BE89B6FF4D7EF47"><enum>(2)</enum><header>Applicability</header>
<subparagraph id="H2275702FBE6C4487BFA1DD2F4F6E9CD1"><enum>(A)</enum><header>Payment on the
basis of a title ii or SSI benefit</header><text>Section 1129(a)(3) of the
<act-name parsable-cite="SSA">Social Security Act</act-name> (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)(C)(i) or (1)(D) of subsection (a) in
the same manner as such section applies to a payment under title II or XVI of
such Act.</text>
</subparagraph><subparagraph id="H510AA97EF3664E4DBB20A0AFB00DBC2C"><enum>(B)</enum><header>Payment on the
basis of a railroad retirement benefit</header><text>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)(C)(ii) of subsection (a)
in the same manner as such section applies to a payment under such Act.</text>
</subparagraph><subparagraph id="H020C5091FE85482C998AFF683B26ED77"><enum>(C)</enum><header>Payment on the
basis of a veterans benefit</header><text>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)(C)(iii) of subsection
(a) in the same manner as those sections apply to a payment under that
title.</text>
</subparagraph></paragraph></subsection><subsection id="H4B3E61F2A47D4507B2D0BBB3FBF5BC05"><enum>(e)</enum><header>Appropriation</header><text>Out
of any sums in the Treasury of the United States not otherwise appropriated,
the following sums are appropriated for each fiscal year beginning on or after
October 1, 2011, to remain available until expended, to carry out this
section:</text>
<paragraph id="H8ECA6C091E474840B6E825B465D59FE7"><enum>(1)</enum><text>For the Secretary
of the Treasury, such sums as may be necessary for administrative costs
incurred in carrying out this section.</text>
</paragraph><paragraph id="H5CEEE9418683407EB42A97C14C1EF6DF"><enum>(2)</enum><text>For the
Commissioner of Social Security—</text>
<subparagraph id="H395AF19B5031476D983966541F8405F8"><enum>(A)</enum><text>such sums as may
be necessary for payments to individuals certified by the Commissioner of
Social Security as entitled to receive a payment under this section; and</text>
</subparagraph><subparagraph id="HEFB03AA517AA4FBFA5C12C0241558C54"><enum>(B)</enum><text>such sums as may
be certified by the Commissioner to the Secretary of the Treasury for the
Social Security Administration's Limitation on Administrative Expenses as
necessary for administrative costs incurred in carrying out this
section.</text>
</subparagraph></paragraph><paragraph id="H73D3CFC0523C44C8A0D6EAA69C0B668A"><enum>(3)</enum><text>For the Railroad
Retirement Board—</text>
<subparagraph id="H6EE8DA5D6D47458FAEE5CD815E2E11B3"><enum>(A)</enum><text>such sums as may
be necessary for payments to individuals certified by the Railroad Retirement
Board as entitled to receive a payment under this section; and</text>
</subparagraph><subparagraph id="H7AA1D4CB88F84B53BBD9A1656421A318"><enum>(B)</enum><text>such sums as may
be certified by the Board to the Secretary of the Treasury for the Railroad
Retirement Board's Limitation on Administration as necessary for administrative
costs incurred in carrying out this section.</text>
</subparagraph></paragraph><paragraph id="H093A9A4218674A82BE864FE65CA196A6"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H3F170A1C8F944DC59661CEF5FF16D653"><enum>(A)</enum><text>For the Secretary of
Veterans Affairs—</text>
<clause id="H7E44EB1E78374DEE85387AE52567C96A"><enum>(i)</enum><text>such
sums as may be necessary for the Compensation and Pensions account, for
payments to individuals certified by the Secretary of Veterans Affairs as
entitled to receive a payment under this section; and</text>
</clause><clause id="H961246868AF64871B6A98B9F6EEA4772"><enum>(ii)</enum><text>such sums as may
be certified by the Secretary of Veterans Affairs to the Secretary of the
Treasury for the Information Systems Technology account and for the General
Operating Expenses account as necessary for administrative costs incurred in
carrying out this section.</text>
</clause></subparagraph><subparagraph id="H29EFF7C40DBE4F6D84B79FEF407664AF" indent="up1"><enum>(B)</enum><text>The Department of Veterans Affairs
Compensation and Pensions account shall hereinafter be available for payments
authorized under subsection (a)(1)(A) to individuals entitled to a benefit
payment described in subsection (a)(1)(C)(iii).</text>
</subparagraph></paragraph></subsection></section><enum>III</enum><header>Contribution and
benefit fairness</header>
<section display-inline="no-display-inline" id="H6471A9278D714A938B193A2648CFD209"><enum>301.</enum><header>Determination
of wages and self-employment income above contribution and benefit base after
2011</header>
<subsection id="HCF95F0F4BFDA4676B3A6629A4D2B90E0"><enum>(a)</enum><header>Determination of
wages above contribution and benefit base after 2011</header>
<paragraph id="HD18619EC358C4426B70A68989D0A8F45"><enum>(1)</enum><header>Amendments to
the Internal Revenue Code of 1986</header><text>Section 3121 of the Internal
Revenue Code of 1986 is amended—</text>
<subparagraph id="H13B5C871F8C6468C8BFAFA07700A9514"><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="H5944CBEB92D046E598A6C646A72DAB1B"><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="HF3561CB8EB6D442D8F9670438445B579" style="OLC">
<subsection id="H5B3BDBF5318B4F309E83F9086EB89463"><enum>(c)</enum><header>Special rules
for wages and employment</header>
<paragraph id="H4389E941E4E8436FBF1A9D6F6FB0EC3C"><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="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.17" table-template-name="Generic: 1 text, 4 num" table-type="">
<tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec coldef="txt" colname="column1" colwidth="281pts" min-data-value="90"></colspec><colspec coldef="fig" colname="column2" colwidth="44pts" min-data-value="8"></colspec>
<thead>
<row><entry align="left" colname="column1" morerows="0" namest="column1"><bold>In the case of:</bold></entry><entry align="justify" colname="column2" morerows="0" namest="column2"><bold>The applicable percentage
is:</bold></entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2012</entry><entry align="right" colname="column2" rowsep="0">86%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2013</entry><entry align="right" colname="column2" rowsep="0">71%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2014</entry><entry align="right" colname="column2" rowsep="0">57%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2015</entry><entry align="right" colname="column2" rowsep="0">43%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2016</entry><entry align="right" colname="column2" rowsep="0">29%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2017</entry><entry align="right" colname="column2" rowsep="0">14%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar years after
2017</entry><entry align="right" colname="column2" rowsep="0">0%.</entry>
</row>
</tbody>
</tgroup>
</table>
</paragraph><paragraph id="H20D68718B61C49CB95858B0B2E3B69B9"><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="H104536304CF5425DA6660F30A5024C27"><enum>(2)</enum><header>Amendments to
the Social Security Act</header><text>Section 209 of the Social Security Act
(42 U.S.C. 409) is amended—</text>
<subparagraph id="H0438A8BE061D4FB7B3A0AD5E1DB9C899"><enum>(A)</enum><text>in subsection
(a)(1)(I)—</text>
<clause id="H57D79F5D84F54976B1572E6F1148D217"><enum>(i)</enum><text>by
inserting <quote>and before 2012</quote> after <quote>1974</quote>; and</text>
</clause><clause id="H3FC379D07FA943D09ACBD3FBEF6054F1"><enum>(ii)</enum><text>by
inserting <quote>and</quote> after the semicolon;</text>
</clause></subparagraph><subparagraph id="H66F6B8FBAAF2498EA7091F06E0632F9C"><enum>(B)</enum><text>in subsection
(a)(1), by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H475D8F1B5FA84CF286E974FA0FE3EBCE" style="OLC">
<subparagraph id="H1A2BDE0E5C5E4110B8E5F28DA849D468"><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 2011 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>
</subparagraph><subparagraph id="H82013BA7497D487CBA92F390750D575F"><enum>(C)</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="H73F044050977483F8A3DA500E6A075C2" style="OLC">
<subsection id="H55086AE50DC5411D93512049010B433D"><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="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.17" table-template-name="Generic: 1 text, 4 num" table-type="">
<tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec coldef="txt" colname="column1" colwidth="281pts" min-data-value="90"></colspec><colspec coldef="fig" colname="column2" colwidth="44pts" min-data-value="8"></colspec>
<thead>
<row><entry align="left" colname="column1" morerows="0" namest="column1"><bold>In the case of:</bold></entry><entry align="justify" colname="column2" morerows="0" namest="column2"><bold>The applicable percentage
is:</bold></entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2012</entry><entry align="right" colname="column2" rowsep="0">86%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2013</entry><entry align="right" colname="column2" rowsep="0">71%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2014</entry><entry align="right" colname="column2" rowsep="0">57%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2015</entry><entry align="right" colname="column2" rowsep="0">43%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2016</entry><entry align="right" colname="column2" rowsep="0">29%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2017</entry><entry align="right" colname="column2" rowsep="0">14%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar years after
2017</entry><entry align="right" colname="column2" rowsep="0">0%</entry>
</row>
</tbody>
</tgroup></table>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HFFC539F269D9495F9F0C75989A2F01E0"><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 2011.</text>
</paragraph></subsection><subsection id="H73A4B7B809B9437FB437007C303EDC68"><enum>(b)</enum><header>Determination of
self-Employment income above contribution and benefit base after 2011</header>
<paragraph id="H6024A30892D84EEBBD5D873180F75677"><enum>(1)</enum><header>Amendments to
the Internal Revenue Code of 1986</header><text>Section 1402 of the Internal
Revenue Code of 1986 is amended—</text>
<subparagraph id="H2B2EC22EAF7C487B9426419622189738"><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="H14F8A714F2EC4337937780AA77CA54A3"><enum>(B)</enum><text>in subsection
(d)—</text>
<clause id="HD8E957D7F6764684A9FFBD15E39B4BA7"><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="H6283CE5AEE0C48119B032E0C88D2F3D4" style="OLC">
<subsection id="H67401FD04931460C865B2D1CEE8410B1"><enum>(d)</enum><header>Rules and
definitions</header>
<paragraph id="HA8D10EFD520649E283638258422E47CE"><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="H03E9B8B3A1D14C018F771FE56C037220"><enum>(ii)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF18C3FF44EDD4B79803C46FB3E95452F" style="OLC">
<paragraph id="HF23A2E81C5604A0399AAE8FD920E85BA"><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="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.17" table-template-name="Generic: 1 text, 4 num" table-type="">
<tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec coldef="txt" colname="column1" colwidth="281pts" min-data-value="90"></colspec><colspec coldef="fig" colname="column2" colwidth="44pts" min-data-value="8"></colspec>
<thead>
<row><entry align="left" colname="column1" morerows="0" namest="column1"><bold>In the case of:</bold></entry><entry align="justify" colname="column2" morerows="0" namest="column2"><bold>The applicable percentage
is:</bold></entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2012</entry><entry align="right" colname="column2" rowsep="0">86%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2013</entry><entry align="right" colname="column2" rowsep="0">71%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2014</entry><entry align="right" colname="column2" rowsep="0">57%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2015</entry><entry align="right" colname="column2" rowsep="0">43%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2016</entry><entry align="right" colname="column2" rowsep="0">29%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2017</entry><entry align="right" colname="column2" rowsep="0">14%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar years after
2017</entry><entry align="right" colname="column2" 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="HF52FCCAE78E2431D97F5C3CC71CB40C9"><enum>(2)</enum><header>Amendments to
the Social Security Act</header><text>Section 211 of the Social Security Act
(42 U.S.C. 411) is amended—</text>
<subparagraph id="HF8D30941EB734C7FA27728686131899D"><enum>(A)</enum><text>in subsection
(b)(1)(I)—</text>
<clause id="H69BE73D74415403C8D202B006BD8E917"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>or</quote> after the
semicolon; and</text>
</clause><clause id="HB925ED2CC15A445A9954952C0B66101A"><enum>(ii)</enum><text>by
inserting <quote>and before 2012</quote> after <quote>1974</quote>;</text>
</clause></subparagraph><subparagraph id="HE2858E8238B94DA5BB0016D2EEA911E6"><enum>(B)</enum><text>in subsection
(b)—</text>
<clause id="H6116DF5A64884DF9B8BEFBE765C67A52"><enum>(i)</enum><text>by
redesignating paragraph (2) as paragraph (3); and</text>
</clause><clause id="H9F5BD16614E0443590082CCC99EACAC7"><enum>(ii)</enum><text>by
inserting after paragraph (1) the following:</text>
<quoted-block display-inline="no-display-inline" id="H266474D6360E4C6FB4137029FB2443CB" style="OLC">
<paragraph id="H5BE08E0D08324B2885CF353534852BE2"><enum>(2)</enum><text display-inline="yes-display-inline">For any taxable year beginning in any
calendar year after 2011, 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="H45D4A60547A8461BAED4B3EC82A4A0A2"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H8966FBDE7478492385ABB320F67D925A" style="OLC">
<subsection id="H8B051595C1574AC5A90E69032AEBC58A"><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="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.17" table-template-name="Generic: 1 text, 4 num" table-type="">
<tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec coldef="txt" colname="column1" colwidth="281pts" min-data-value="90"></colspec><colspec coldef="fig" colname="column2" colwidth="44pts" min-data-value="8"></colspec>
<thead>
<row><entry align="left" colname="column1" morerows="0" namest="column1"><bold>In the case of:</bold></entry><entry align="justify" colname="column2" morerows="0" namest="column2"><bold>The applicable percentage
is:</bold></entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2012</entry><entry align="right" colname="column2" rowsep="0">86%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2013</entry><entry align="right" colname="column2" rowsep="0">71%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2014</entry><entry align="right" colname="column2" rowsep="0">57%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2015</entry><entry align="right" colname="column2" rowsep="0">43%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2016</entry><entry align="right" colname="column2" rowsep="0">29%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar year 2017</entry><entry align="right" colname="column2" rowsep="0">14%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Calendar years after
2017</entry><entry align="right" colname="column2" rowsep="0">0%</entry>
</row>
</tbody>
</tgroup></table>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H4B02B7FF974B4EA0AEFCF72B98353694"><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 2012.</text>
</paragraph></subsection></section><section id="HCF2CC4BF976F4AD0816F02D4F75A2E82"><enum>302.</enum><header>Inclusion of
surplus earnings in social security benefit formula</header>
<subsection id="HED3DDD51F8E047BD901221162E2416DC"><enum>(a)</enum><header>Inclusion of
surplus average indexed monthly earnings in determination of primary insurance
amounts</header>
<paragraph id="H85F6668B3A5243B8933B44C4F0C1BECE"><enum>(1)</enum><header>In
general</header><text>Section 215(a)(1)(A) of the Social Security Act (42
U.S.C. 415(a)(1)(A)) is amended—</text>
<subparagraph id="H3DBE8752260D4CF8823EAB8797F2F72B"><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="H8F51BDC572884991B2E107335EE7EF44"><enum>(B)</enum><text>in clause (ii), by
striking <quote>and</quote> at the end; and</text>
</subparagraph><subparagraph id="HF3339AA4C3D245A4A7776E5BB9DFAD76"><enum>(C)</enum><text>by inserting after
clause (iii) the following new clauses:</text>
<quoted-block display-inline="no-display-inline" id="HCDCED4378A244DF29467DE42E81B499C" style="traditional">
<clause id="HA2E24C2C48C84B8BB8286B39581020DC" 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="H3EF1FA7E9AB64CF18ABB7FF2C62F3344" 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="H4B8992D0ECD040D29EC8A65378C98413"><enum>(2)</enum><header>Bend point for
surplus earnings</header><text>Section 215(a)(1)(B) of such Act (42 U.S.C.
415(a)(1)(B)) is amended—</text>
<subparagraph id="H4C98335B8EAA4AD3BD4A77E31D5A77D3"><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="H051548281C1A4387B86BB7A49376EB2D"><enum>(B)</enum><text>by redesignating
clause (iii) as clause (v);</text>
</subparagraph><subparagraph id="H803378DD0B294BF3B7CF634E37B258E1"><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="HCE0E1E06AA8B4340B7555ED79E374DFF"><enum>(D)</enum><text>by inserting after
clause (ii) the following new clauses:</text>
<quoted-block display-inline="no-display-inline" id="H925E2871B2ED426FB871A451F8CD6896" style="traditional">
<clause id="H6AB9FA415B2B4A9A92DABE42FDDBBCE6" indent="up3"><enum>(iii)</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 the calendar year 2012, the
amount established for purposes of clause (iv) of subparagraph (A) shall be
$11,933.</text>
</clause><clause id="H98199D2205C94A27AB73CEE74968E3A6" 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 2012, 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 2012
under clause (iii) of this subparagraph and the quotient obtained by
dividing—</text>
<subclause id="H9E1CCEEB04ED4FED84DF98122E8E2910"><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="H6BFC671CE27B474480027562EC12BAA4"><enum>(II)</enum><text>the national average wage index (as
so defined) for
2010.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="HE3363585873A4F7F8C8FFC4840F2A2B8"><enum>(b)</enum><header>Basic AIME and
surplus AIME</header>
<paragraph id="H8C52DF19C8864132AAF502180D50E4FC"><enum>(1)</enum><header>Basic
AIME</header><text display-inline="yes-display-inline">Section 215(b)(1) of
such Act (42 U.S.C. 415(b)(1)) is amended—</text>
<subparagraph id="HA3DC56F202224681BF23B686FA7FC108"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>basic</quote> before
<quote>average</quote>; and</text>
</subparagraph><subparagraph id="H9C4781D9FA4F483998859C36F029FBD9"><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="H590F35BE9B32434D9B2976EDC3F87336"><enum>(2)</enum><header>Surplus
AIME</header>
<subparagraph id="H4109C37F429B45E78931B59078BA1D9C"><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="H02661C66D95F457DB3272781410EBA85"><enum>(i)</enum><text>by
redesignating subparagraphs (A) and (B) as clauses (i) and (ii),
respectively;</text>
</clause><clause id="H615695D052D24A5999F50B381D0DC085"><enum>(ii)</enum><text>by
inserting <quote>(A)</quote> after <quote>(b)(1)</quote>; and</text>
</clause><clause id="H1F3F357D826D4E3582660165EBE63608"><enum>(iii)</enum><text>by
adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H52E6FBE32EB74CEA839B3524A4F18756" style="traditional">
<subparagraph id="HE3E9B22F9EAC44AE971CF0F2124D46A8" indent="up2"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H30233B7339664199B4225CF91E19F67F"><enum>(i)</enum><text>An individual’s surplus
average indexed monthly earnings shall be equal to the quotient obtained by
dividing—</text>
<subclause id="HB736AB37B9534FF58FECEFE8E8AB45AB" 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="H10D195BDF7D04AE48FE7FC0575CC83C3" indent="up1"><enum>(II)</enum><text>the number of months in those
years.</text>
</subclause></clause><clause id="HDBA6FFB698844087BB89699E822C0B59" 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="H176592843E7D4DDEBA1B8197AF716FD0"><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="H72AEB2C1EEA2477E9778E8FE562D60A8"><enum>(3)</enum><header>Adjustment of
surplus earnings for purposes of determining surplus AIME</header><text>Section
215(b)(3) of such Act (42 U.S.C. 415(b)(3)) is amended—</text>
<subparagraph id="H2E2931F24991444E95EF50C6C62FCFDB"><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="H301E09B6536148CD880DFABBD28F2205"><enum>(B)</enum><text>by redesignating
subparagraph (B) as subparagraph (C); and</text>
</subparagraph><subparagraph id="H7739575AF083412AB49F1A7BA7C36ED1"><enum>(C)</enum><text>by inserting after
subparagraph (A) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H36F1DEE8F969410FB4A31FB40E3BF85E" style="traditional">
<subparagraph id="H7DBAB0726EC14DDCAFF989E3E808EC05" 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="HC95E822A1C464972B0DFB3C6DB4601B8"><enum>(i)</enum><text>the individual’s surplus earnings for
such year (as determined without regard to this subparagraph), and</text>
</clause><clause id="HA7686727E6464FC89001191EBB3BFD0A"><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="H71BD043BC763449B8E546CCEA57BA0BE"><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 2011.</text>
</subsection></section><enum>IV</enum><header>Social security
benefit protection</header>
<section id="H7AC1D71FF5174377B848C30214EB1262"><enum>401.</enum><header>Point of order
against privatization of Social Security or reductions in Social Security
benefits</header>
<subsection id="HA56C3377C1B64A72893626FAB89550AD"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">It shall not be in
order in the House of Representatives or the Senate to consider any bill, joint
resolution, amendment, motion, or conference report if the enactment of that
bill or resolution, as reported, the adoption and enactment of that amendment,
or the enactment of that bill or resolution in the form recommended in that
conference report would have the effect of—</text>
<paragraph id="H7F1BABB6DA634493A4C00D09FBCD24CA"><enum>(1)</enum><text>establishing or
maintaining a program—</text>
<subparagraph id="H603482D93A71485686104096D872F86C"><enum>(A)</enum><text>under which
benefits under title II of the Social Security Act are reduced, in whole or in
part, in connection with contributions made to individual accounts of
beneficiaries under such title established or maintained in the private sector
or in connection with returns on investment of amounts credited to such
accounts, or</text>
</subparagraph><subparagraph id="HB3457E68D24A40DEBE81B42B06B441C5"><enum>(B)</enum><text>which provides for
administration of the old-age, survivors, and disability insurance program
under such title, in whole or in part, by any entity in the private
sector,</text>
</subparagraph></paragraph><paragraph id="H3A2DE0A0301247B3879C7CD8E241B796"><enum>(2)</enum><text>otherwise reducing
benefits under title II of the Social Security Act in the case of any present
or future beneficiary below the level of such benefits that would be in effect
without the enactment of such bill, resolution, or amendment, or</text>
</paragraph><paragraph id="H7540FC07E3BC4BE799EE4E98AE13F324"><enum>(3)</enum><text>providing for
investment of amounts held in the Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust Fund in any investment vehicle
other than interest-bearing obligations of the United States or obligations
guaranteed as to both principal and interest by the United States.</text>
</paragraph></subsection><subsection id="H78A4C73059E7402ABA7787F3505E83F3"><enum>(b)</enum><header>Waiver and
appeal</header><text>Subsection (a) may be waived or suspended in the Senate
only by an affirmative vote of three-fifths of the Members, duly chosen and
sworn. An affirmative vote of three-fifths of the Members of the Senate, duly
chosen and sworn, shall be required in the Senate to sustain an appeal of the
ruling of the Chair on a point of order raised under this section.</text>
</subsection><subsection id="H9E38BA97A7B6414EB1874F42C6C23F75"><enum>(c)</enum><header>Exercise of
rulemaking powers</header><text>The Congress adopts the provisions of this
section—</text>
<paragraph id="HB3DDCF95F3794D1F9010AEE256FC5EDE"><enum>(1)</enum><text>as an exercise of
the rulemaking power of the House of Representatives and the Senate and as such
they shall be considered as part of the rules of each House or of that House to
which they specifically apply, and these rules shall supersede other rules only
to the extent that they are inconsistent with other such rules; and</text>
</paragraph><paragraph id="H51446D9966AB47E3B56F9D1A89AC9D28"><enum>(2)</enum><text>with full
recognition of the constitutional right of either the House of Representatives
or the Senate to change those rules at any time, in the same manner, and to the
same extent as in the case of any other rule of the House of Representatives or
the Senate.</text>
</paragraph></subsection></section>