[Congressional Record Volume 146, Number 99 (Wednesday, July 26, 2000)]
[Senate]
[Pages S7665-S7667]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN:
  S. 2926. A bill a amend title II of the Social Security Act to 
provide that an individual's entitlement to any benefit thereunder 
shall continue through the month of his or her death (without affecting 
any other person's entitlement to benefits for that month) and that 
such individuals' benefit shall be payable for such month only to the 
extent proportionate to the number of days in such month preceding the 
date of such individual's death; to the Committee on Finance.


                 The Social Security Family Relief Act

  Mr. BINGAMAN. Mr. President, I rise today to introduce the Social 
Security Family Relief Act, which is legislation designed to both 
revise current Social Security law and assist families living in New 
Mexico and across the United States.
  For those of my colleagues who are not familiar with this issue, at 
present the Social Security Administration pays benefits in advance, 
and, thus, a check an individual receives from Social Security 
Administration during the month is calculated and paid in anticipation 
that the individual will be alive the entire month in which a payment 
was received.
  However, if a person dies during that month, the payment must be 
reimbursed in full to the Social Security Administration. If a person 
dies on the 5th of the month, or the 15th of the month, or the 25th of 
the month, none of this matters. If they die, they are no longer 
entitled to any benefits for that month, period. Furthermore, if a 
surviving spouse or family member uses a check received from the Social 
Security Administration for that month in which a family member had 
died, they must send it back--in full--to the Social Security 
Administration.
  Let me make this clear that this is not just a problem in the 
abstract. Indeed, the introduction of this bill is prompted by a very 
real experience faced by a family living in New Mexico. In this case, a 
constituent had a close relative pass away on December 31, 1999. The 
last day of the month. Not knowing it ran contrary to Social Security 
law, the family used the relative's last Social Security check to pay 
her final expenses. Only after these activities had occurred did they 
receive a letter from the Social Security Administration stating that 
they would have to return the check. Not just partial payment, but in 
full. No recognition on the part of the Social Security Administration 
that this person was alive for the entire month. No recognition on the 
part of the Social Security Administration that this person had 
expenses that had to be paid for after they had died. No recognition on 
the part of the Social Security Administration that the surviving 
relatives had their own bills to pay, and that this additional expense 
imposed a burden on them that was difficult to manage.
  My constituents found this to absurd. Why, they asked, should they 
have to return a check for a relative that was alive, was accumulating 
expenses while she was alive, and deserved the money that was provided 
to her? Why, they asked, should they be required to pay for the 
relative's expenses when money should be available? Why should their 
emotional suffering be made all the more distressful by the addition of 
financial obligations not of their own making?
  I think these are good questions, and it is logical that Congress 
address them directly and in a manner that solves the problem at hand. 
From what I can see, they are right. Individuals that have worked over 
the years and have paid into the Social Security Trust Fund all that 
time, these folks have earned Social Security benefits and should 
receive them in full for the period that they are alive. As such, 
Social Security law should be written in such a way that allows the 
surviving spouse or family member to use the final check to take care 
of the remaining expenses, whether they be utilities, or mortgages, or 
car payments, or health care, or whatever needs to be taken care of.
  But although my constituents are sometimes critical of the Social 
Security Administration on this issue, in fairness that agency did not 
create this problem, Congress did. We wrote the law, and the Social 
Security Administration merely implements it. Any responsibility for 
what is happening belongs to us. We need to fix the law so the Social 
Security Administration can do its job better.
  It is my understanding that this issue has been discussed in the past 
by a number of Senators, but the revisions have gone nowhere because 
some felt it would impose an administrative burden on the Social 
Security Administration. I find this argument to be unconvincing as we 
clearly find a way to calculate complex equations that ultimately 
benefit that agency. There are those that now argue that tracking down 
appropriate beneficiaries would be difficult. But I find this to be 
quite unconvincing as well--after all, we do it already when someone 
dies. Surely there is a way to make the changes necessary. Surely the 
technology and expertise already exists. Surely it is time to stop 
making excuses and do what is right for Americans and their families.
  The legislation I am introducing today is easy to understand. The 
legislation says, quite simply, that an individual's entitlement to 
Social Security benefits shall continue through the month of his or her 
death, and after

[[Page S7666]]

that individual's death, the entitlement shall be calculated in a 
manner proportionate to the days he or she was still alive. In other 
words, we are using a method of pro-rating to calculate what portion of 
the entitlement that individual will receive for the last month. Then, 
instead of being asked to return that final check, the surviving spouse 
or appropriate surviving family members will receive a check, which can 
then be used to settle the decedent's remaining expenses. I think this 
is a perfectly fair and reasonable approach to solving the problem at 
hand. And I think it is long overdue.
  It is my understanding that another bill addressing this problem has 
been introduced in the Senate by my colleague Senator Mikulski. 
Furthermore, she has introduced this legislation for several years in a 
row. I commend her for her awareness of this problem and her ongoing 
efforts to fix it.
  That said, it is also my understanding that her bill as written 
calculates these entitlement benefits on a half-month basis. In other 
words, if you die before the 15th, you get benefits for a half a month. 
If you die after the 15th, you are entitled to benefits for the entire 
month. To be honest, I see no obvious rationale for addressing the 
problem in this way, and I find a pro-rate strategy to be far more 
compelling. But this said, I look forward to working with her and her 
co-sponsors to repair the problem. We clearly have the same concerns.
  Mr. President, let me state in conclusion that this legislation 
represents only a partial fix of the current Social Security system. 
There is no doubt in my mind that much more needs to be done. We have 
talked about the issues far too long, and it is time to make a serious 
effort to make the Social Security solvent and effective. If had my 
way, this effort would begin tomorrow. But since it is not, this 
legislation can be considered one small but very important step on the 
path to reform.
  Mr. President, I ask unanimous consent that a copy of the legislation 
be included in the Record at the conclusion of my statement.
  Thank you, Mr. President, and I yield the floor.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2926

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Social Security Family 
     Relief Act''.

     SEC. 2. CONTINUATION OF BENEFITS THROUGH MONTH OF 
                   BENEFICIARY'S DEATH.

       (a) Old-Age Insurance Benefits.--Section 202(a) of the 
     Social Security Act (42 U.S.C. 402(a)) is amended by striking 
     ``the month preceding'' in the matter following subparagraph 
     (B).
       (b) Wife's Insurance Benefits.--
       (1) In general.--Section 202(b)(1) of such Act (42 U.S.C. 
     402(b)(1)) is amended--
       (A) by striking ``and ending with the month'' in the matter 
     immediately following clause (ii) and inserting ``and ending 
     with the month in which she dies or (if earlier) with the 
     month'';
       (B) by striking subparagraph (E); and
       (C) by redesignating subparagraphs (F) through (K) as 
     subparagraphs (E) through (J).
       (2) Conforming amendments.--Section 202(b)(5)(B) of such 
     Act (42 U.S.C. 402(b)(5)(B)) is amended by striking ``(E), 
     (F), (H), or (J)'' and inserting ``(E), (G), or (I)''.
       (c) Husband's Insurance Benefits.--
       (1) In general.--Section 202(c)(1) of such Act (42 U.S.C. 
     402(c)(1)) is amended--
       (A) by striking ``and ending with the month'' in the matter 
     immediately following clause (ii) and inserting ``and ending 
     with the month in which he dies or (if earlier) with the 
     month'';
       (B) by striking subparagraph (E); and
       (C) by redesignating subparagraphs (F) through (K) as 
     subparagraphs (E) through (J), respectively.
       (2) Conforming amendments.--Section 202(c)(5)(B) of such 
     Act (42 U.S.C. 402(c)(5)(B)) is amended by striking ``(E), 
     (F), (H), or (J)'' and inserting ``(E), (G), or (I)'', 
     respectively.
       (d) Child's Insurance Benefits.--Section 202(d)(1) of such 
     Act (42 U.S.C. 402(d)(1)) is amended--
       (1) by striking ``and ending with the month'' in the matter 
     immediately preceding subparagraph (D) and inserting ``and 
     ending with the month in which such child dies or (if 
     earlier) with the month''; and
       (2) by striking ``dies, or'' in subparagraph (D).
       (e) Widow's Insurance Benefits.--Section 202(e)(1) of such 
     Act (42 U.S.C. 402(e)(1)) is amended by striking ``ending 
     with the month preceding the first month in which any of the 
     following occurs: she remarries, dies,'' in the matter 
     following subparagraph (F) and inserting ``ending with the 
     month in which she dies or (if earlier) with the month 
     preceding the first month in which she remarries or''.
       (f) Widower's Insurance Benefits.--Section 202(f)(1) of 
     such Act (42 U.S.C. 402(f)(1)) is amended by striking 
     ``ending with the month preceding the first month in which 
     any of the following occurs: he remarries, dies,'' in the 
     matter following subparagraph (F) and inserting ``ending with 
     the month in which he dies or (if earlier) with the month 
     preceding the first month in which he remarries''.
       (g) Mother's and Father's Insurance Benefits.--Section 
     202(g)(1) of such Act (42 U.S.C. 402(g)(1)) is amended--
       (1) by inserting ``with the month in which he or she dies 
     or (if earlier)'' after ``and ending'' in the matter 
     following subparagraph (F); and
       (2) by striking ``he or she remarries, or he or she dies'' 
     and inserting ``or he or she remarries''.
       (h) Parent's Insurance Benefits.--Section 202(h)(1) of such 
     Act (42 U.S.C. 402(h)(1)) is amended by striking ``ending 
     with the month preceding the first month in which any of the 
     following occurs: such parent dies, marries,'' in the matter 
     following subparagraph (E) and inserting ``ending with the 
     month in which such parent dies or (if earlier) with the 
     month preceding the first month in which such parent marries, 
     or such parent''.
       (i) Disability Insurance Benefits.--Section 223(a)(1) of 
     such Act (42 U.S.C. 423(a)(1)) is amended by striking 
     ``ending with the month preceding whichever of the following 
     months is the earliest: the month in which he dies,'' in the 
     matter following subparagraph (D) and inserting the 
     following: ``ending with the month in which he dies or (if 
     earlier) with the month preceding the earlier of'' and by 
     striking the comma after ``216(l))''.
       (j) Benefits at Age 72 for Certain Uninsured Individuals.--
     Section 228(a) of such Act (42 U.S.C. 428(a)) is amended by 
     striking ``the month preceding'' in the matter following 
     paragraph (4).

     SEC. 3. COMPUTATION AND PAYMENT OF LAST MONTHLY PAYMENT.

       (a) Old-Age and Survivors Insurance Benefits.--Section 202 
     of the Social Security Act (42 U.S.C. 402) is amended by 
     adding at the end the following new subsection:

    ``Last Payment of Monthly Insurance Benefit Terminated by Death

       ``(y) The amount of any individual's monthly insurance 
     benefit under this section paid for the month in which the 
     individual dies shall be an amount equal to--
       ``(1) the amount of such benefit (as determined without 
     regard to this subsection), multiplied by
       ``(2) a fraction--
       ``(A) the numerator of which is the number of days in such 
     month preceding the date of such individual's death, and
       ``(B) the denominator of which is the number of days in 
     such month,
     rounded, if not a multiple of $1, to the next lower multiple 
     of $1. This subsection shall apply with respect to such 
     benefit after all other adjustments with respect to such 
     benefit provided by this title have been made. Payment of 
     such benefit for such month shall be made as provided in 
     section 204(d).''.
       (b) Disability Insurance Benefits.--Section 223 of such Act 
     (42 U.S.C. 423) is amended by adding at the end the following 
     new subsection:

             ``Last Payment of Benefit Terminated by Death

       ``(j) The amount of any individual's monthly benefit under 
     this section paid for the month in which the individual dies 
     shall be an amount equal to--
       ``(1) the amount of such benefit (as determined without 
     regard to this subsection), multiplied by
       ``(2) a fraction--
       ``(A) the numerator of which is the number of days in such 
     month preceding the date of such individual's death, and
       ``(B) the denominator of which is the number of days in 
     such month,
     rounded, if not a multiple of $1, to the next lower multiple 
     of $1. This subsection shall apply with respect to such 
     benefit after all other adjustments with respect to such 
     benefit provided by this title have been made. Payment of 
     such benefit for such month shall be made as provided in 
     section 204(d).''.
       (c) Benefits at Age 72 for Certain Uninsured Individuals.--
     Section 228 of such Act (42 U.S.C. 428) is amended by adding 
     at the end the following new subsection:

             ``Last Payment of Benefit Terminated by Death

       ``(i) The amount of any individual's monthly benefit under 
     this section paid for the month in which the individual dies 
     shall be an amount equal to--
       ``(1) the amount of such benefit (as determined without 
     regard to this subsection), multiplied by
       ``(2) a fraction--
       ``(A) the numerator of which is the number of days in such 
     month preceding the date of such individual's death, and
       ``(B) the denominator of which is the number of days in 
     such month,
     rounded, if not a multiple of $1, to the next lower multiple 
     of $1. This subsection shall apply with respect to such 
     benefit after all other adjustments with respect to such 
     benefit provided by this title have been made.

[[Page S7667]]

     Payment of such benefit for such month shall be made as 
     provided in section 204(d).''.

     SEC. 4. DISREGARD OF BENEFIT FOR MONTH OF DEATH UNDER FAMILY 
                   MAXIMUM PROVISIONS.

       Section 203(a) of the Social Security Act (42 U.S.C. 
     403(a)) is amended by adding at the end the following new 
     paragraph:
       ``(10) Notwithstanding any other provision of this Act, in 
     applying the preceding provisions of this subsection (and 
     determining maximum family benefits under column V of the 
     table in or deemed to be in section 215(a) as in effect in 
     December 1978) with respect to the month in which the insured 
     individual's death occurs, the benefit payable to such 
     individual for that month shall be disregarded.''.

     SEC. 5. EFFECTIVE DATE.

       The amendments made by this Act shall apply with respect to 
     deaths occurring after the month in which this Act is 
     enacted.
                                 ______