1.This Act may be cited as the
Social Security Solvency and
Sustainability Act
.
2.Adjustment to
normal and early retirement ageSection 216(l) of the Social Security Act
(42 U.S.C. 416(l)) is amended—
(1)in paragraph (1),
by striking subparagraph (D) and inserting the following new
subparagraphs:
(D)with respect to
an individual who attains early retirement age after December 31, 2016, and
before January 1, 2021, 66 years plus the number of months in the age increase
factor (as determined under paragraph (5)(A)) for the calendar year in which
such individual attains early retirement age;
(E)with respect to
an individual who—
(i)attains 62 years
of age after December 31, 2020, and before January 1, 2028, such individual's
early retirement age (as determined under paragraph (2)(A)(ii)) plus 60 months;
or
(ii)receives a
benefit described in paragraph (2)(B) and attains 60 years of age after
December 31, 2020, and before January 1, 2028, 66 years plus the number of
months in the age increase factor (as determined under paragraph (5)(B)) for
the calendar year in which such individual attains 60 years of age;
(F)with respect to
an individual who—
(i)attains 62 years
of age after December 31, 2027, and before January 1, 2029, 69 years of age;
or
(ii)receives a
benefit described in paragraph (2)(B) and attains 60 years of age after
December 31, 2027, and before January 1, 2029, 69 years of age;
(G)with respect to
an individual who—
(i)attains 62 years
of age after December 31, 2028, and before January 1, 2032, 66 years of age
plus the number of months in the age increase factor (as determined under
paragraph (5)(C)); or
(ii)receives a
benefit described in paragraph (2)(B) and attains 60 years of age after
December 31, 2028, and before January 1, 2032, 66 years of age plus the number
of months in the age increase factor (as determined under paragraph
(5)(B));
(H)with respect to
an individual who—
(i)attains 62 years
of age after December 31, 2031, and before January 1, 2033, 70 years of age;
or
(ii)receives a
benefit described in paragraph (2)(B) and attains 60 years of age after
December 31, 2031, and before January 1, 2033, 70 years of age; and
(I)with respect to
an individual who—
(i)attains 62 years
of age after December 31, 2032, 70 years of age plus the number of months in
the age increase factor (as determined under paragraph (6)); or
(ii)receives a
benefit described in paragraph (2)(B) and attains 60 years of age after
December 31, 2032, 70 years of age plus the number of months in the age
increase factor (as determined under paragraph
(6)).
;
(2)by amending
paragraph (2) to read as follows:
(2)The term
early retirement age means—
(A)in the case of an
old-age, wife's, or husband's insurance benefit—
(i)62 years of age
with respect to an individual who attains such age before January 1,
2021;
(ii)with respect to
an individual who attains 62 years of age after December 31, 2020, and before
January 1, 2028, 62 years of age plus the number of months in the age increase
factor (as determined under paragraph (4)) for the calendar year in which such
individual attains 62 years of age; and
(iii)with respect to
an individual who attains age 62 after December 31, 2027, 64 years of age;
or
(B)in the case of a
widow's or widower's insurance benefit, 60 years of
age.
;
and
(3)by striking
paragraph (3) and inserting the following new paragraphs:
(3)With respect to
an individual who attains early retirement age in the 5-year period consisting
of the calendar years 2000 through 2004, the age increase factor shall be equal
to two-twelfths of the number of months in the period beginning with January
2000 and ending with December of the year in which the individual attains early
retirement age.
(4)For purposes of
paragraph (2)(A)(ii), the age increase factor shall be equal to three-twelfths
of the number of months in the period beginning with January 2021 and ending
with December of the year in which the individual attains 62 years of
age.
(5)The age increase
factor shall be equal to three-twelfths of the number of months in the period
beginning with January 2017 and ending with December of the year in
which—
(A)for purposes of
paragraph (1)(D), the individual attains early retirement age;
(B)for purposes of
paragraphs (1)(E)(ii) and (1)(G)(ii), the individual attains 60 years of age;
or
(C)for purposes of
paragraph (1)(G)(i), the individual attains 62 years of age.
(6)The Commissioner
of Social Security shall determine (using reasonable actuarial assumptions) and
publish on or before November 1 of each calendar year after 2031 the number of
months (rounded, if not a multiple of one month, to the next lower multiple of
one month) by which life expectancy as of October 1 of such calendar year of an
individual attaining early retirement age on such October 1 exceeds the life
expectancy as of October 1, 2032, of an individual attaining early retirement
age on October 1, 2032. With respect to an individual who attains early
retirement in the calendar year following any calendar year in which a
determination is made under this paragraph, the age increase factor shall be
the number of months determined under this paragraph as of October 1 of such
calendar year in which such determination is
made.
.
3.Increase in
Maximum Age for Delayed Retirement Credit
(a)Subsection (w) of
section 202 of the Social Security Act (42 U.S.C. 402) is amended—
(1)in paragraphs (2)(A) and (3), by striking
age 70
each place it appears and inserting the maximum
delayed retirement age (as determined pursuant to paragraph
(7))
;
(2)by adding at the
end the following new paragraph:
(7)For purposes of
paragraphs (2)(A) and (3), the maximum delayed retirement age
shall be equal to—
(A)during the period
before January 1, 2017, 70 years of age for an individual who has attained
early retirement age (as determined under section 216(l)(2)) during such
period; and
(B)during the period
after December 31, 2016, the sum of—
(i)the retirement
age for such calendar year, as determined under section 216(l)(1), for an
individual who has attained age 62 (for purposes of section 216(l)(2)(A)) or
who has attained age 60 (for purposes of section 216(l)(2)(B)) during such
calendar year; and
(ii)4
years.
.
(b)The amendment made by subsection (a) shall take effect on
January 1, 2017.
4.Progressive
indexing of benefits for old-age, wife’s, and husband’s 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 In the case of 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 2018 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 2016 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 40th percentile for the period of calendar years
2007 through 2009.
(ii)For purposes of clause (i), the
average indexed monthly earnings for the period of calendar years 2007 through
2009 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 2004 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 2016 by such index for the calendar year 2004.
(iii)For purposes of subparagraph
(A)(ii), the amount established under this subparagraph for any calendar year
after 2018 shall be equal to the product of the amount in effect under clause
(i) with respect to calendar year 2018 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 2016.
(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 2017, 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)In the case of any calendar year
after 2055, clause (i) shall not apply and each of the percentages to which
this subparagraph applies by reason of clause (iii) or (iv) of subparagraph (A)
shall be a percentage equal to the percentage determined under this
subparagraph for the preceding year (determined after the application of this
subparagraph).
(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 2015; 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 2015.
(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;
and
(ii)a mother's and father's insurance
benefit under section
202(g).
.
(b)Treatment of
disabled beneficiariesSection 215(a) of such Act (as amended by
subsection (a)) is amended further 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 2018, 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) on
the date of the enactment of the Social
Security Solvency and Sustainability Act.
(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).
.
(c)
(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)(10)
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)(4)(B)
and inserting subsection
(a)(5)(B)
, and 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)
.