[Congressional Record Volume 150, Number 72 (Thursday, May 20, 2004)]
[Senate]
[Pages S5954-S5955]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. HUTCHISON:
  S. 2455. A bill to amend title II of the Social security Act to 
repeal the windfall elimination provision and protect the retirement of 
public servants; to the Committee on Finance.
  Mrs. HUTCHISON. Mr. President, I ask unanimous consent that the text 
of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2455

       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 ``Public Servant Retirement 
     Protection Act''.

     SEC. 2. REPEAL OF CURRENT WINDFALL ELIMINATION PROVISION.

       Paragraph (7) of section 215(a) of the Social Security Act 
     (42 U.S.C. 415(a)(7)) is repealed.

     SEC. 3. REPLACEMENT OF THE WINDFALL ELIMINATION PROVISION 
                   WITH A FORMULA EQUALIZING BENEFITS FOR CERTAIN 
                   INDIVIDUALS WITH NON-COVERED EMPLOYMENT.

       (a) Substitution of Proportional Formula for Formula Based 
     on Covered Portion of Periodic Benefit.--
       (1) In general.--Section 215(a) of the Social Security Act 
     (as amended by section 2 of this Act) is amended further by 
     inserting after paragraph (6) the following new paragraph:
       ``(7)(A) In the case of an individual whose primary 
     insurance amount would be computed under paragraph (1) of 
     this subsection, who--
       ``(i) attains age 62 after 1985 (except where he or she 
     became entitled to a disability insurance benefit before 1986 
     and remained so entitled in any of the 12 months immediately 
     preceding his or her attainment of age 62), or
       ``(ii) would attain age 62 after 1985 and becomes eligible 
     for a disability insurance benefit after 1985,
      and who first becomes eligible after 1985 for a monthly 
     periodic payment (including a payment determined under 
     subparagraph (E), but excluding (I) a payment under the 
     Railroad Retirement Act of 1974 or 1937, (II) a payment by a 
     social security system of a foreign country based on an 
     agreement concluded between the United States and such 
     foreign country pursuant to section 233, and (III) a payment 
     based wholly on service as a member of a uniformed service 
     (as defined in section 210(m)) which is based in whole or in 
     part upon his or her earnings for service which did not 
     constitute `employment' as defined in section 210 for 
     purposes of this title (hereafter in this paragraph and in 
     subsection (d)(3) referred to as `noncovered service'), the 
     primary insurance amount of that individual during his or her 
     concurrent entitlement to such monthly periodic payment and 
     to old-age or disability insurance benefits shall be computed 
     or recomputed under subparagraph (B) or subparagraph (D) (as 
     applicable).
       ``(B) In the case of an individual who first performs 
     service described in subparagraph (A) after the 12th calendar 
     month following the date of the enactment of the Public 
     Servant Retirement Protection Act, if paragraph (1) of this 
     subsection would apply to such individual (except for 
     subparagraph (A) of this paragraph), the individual's primary 
     insurance amount shall be the product derived by 
     multiplying--
       ``(i) the individual's primary insurance amount, as 
     determined under paragraph (1) of this subsection and 
     subparagraph (C)(i) of this paragraph, by
       ``(ii) a fraction--
       ``(I) the numerator of which is the individual's average 
     indexed monthly earnings (determined without regard to 
     subparagraph (C)(i)), and
       ``(II) the denominator of which is an amount equal to the 
     individual's average indexed monthly earnings (as determined 
     under subparagraph (C)(i)),
     rounded, if not a multiple of $0.10, to the next lower 
     multiple of $0.10.
       ``(C)(i) For purposes of determining an individual's 
     primary insurance amount pursuant to subparagraph (B)(i), the 
     individual's average indexed monthly earnings shall be 
     determined by treating all service performed after 1950 on 
     which the individual's monthly periodic payment referred to 
     in subparagraph (A) is based (other than noncovered service 
     as a member of a uniformed service (as defined in section 
     210(m))) as `employment' as defined in section 210 for 
     purposes of this title (together with all other service 
     performed by such individual consisting of `employment' as so 
     defined).
       ``(ii) For purposes of determining average indexed monthly 
     earnings as described in clause (i), the Commissioner of 
     Social Security shall provide by regulation for a method for 
     determining the amount of wages derived from service 
     performed after 1950 on which the individual's periodic 
     benefit is based and which is to be treated as `employment' 
     solely for purposes of clause (i). Such method shall provide 
     for reliance on employment records which are provided to the 
     Commissioner and which constitute a reasonable basis for 
     treatment of service as `employment' for

[[Page S5955]]

     such purposes, together with such other information received 
     by the Commissioner as the Commissioner may consider 
     appropriate as a reasonable basis for treatment of service as 
     `employment' for such purposes.
       ``(D)(i) In the case of an individual who has performed 
     service described in subparagraph (A) during or before the 
     12th calendar month following the date of the enactment of 
     the Public Servant Retirement Protection Act, if paragraph 
     (1) of this subsection would apply to such individual (except 
     for subparagraph (A) of this paragraph), there shall first be 
     computed an amount equal to the individual's primary 
     insurance amount under paragraph (1) of this subsection, 
     except that for purposes of such computation the percentage 
     of the individual's average indexed monthly earnings 
     established by subparagraph (A)(i) of paragraph (1) shall be 
     the percent specified in clause (ii). There shall then be 
     computed (without regard to this paragraph) a second amount, 
     which shall be equal to the individual's primary insurance 
     amount under paragraph (1) of this subsection, except that 
     such second amount shall be reduced by an amount equal to 
     one-half of the portion of the monthly periodic payment which 
     is attributable to noncovered service performed after 1956 
     (with such attribution being based on the proportionate 
     number of years of such noncovered service) and to which the 
     individual is entitled (or is deemed to be entitled) for the 
     initial month of his or her concurrent entitlement to such 
     monthly periodic payment and old-age or disability insurance 
     benefits. There shall then be computed (without regard to 
     this paragraph) a third amount, which shall be equal to the 
     individual's primary insurance amount determined under 
     subparagraph (B) as if subparagraph (B) applied in the case 
     of such individual. The individual's primary insurance amount 
     shall be the largest of the three amounts computed under this 
     subparagraph (before the application of subsection (i)).
       ``(ii) For purposes of clause (i), the percent specified in 
     this clause is--
       ``(I) 80.0 percent with respect to individuals who become 
     eligible (as defined in paragraph (3)(B)) for old-age 
     insurance benefits (or became eligible as so defined for 
     disability insurance benefits before attaining age 62) in 
     1986;
       ``(II) 70.0 percent with respect to individuals who so 
     become eligible in 1987;
       ``(III) 60.0 percent with respect to individuals who so 
     become eligible in 1988;
       ``(IV) 50.0 percent with respect to individuals who so 
     become eligible in 1989; and
       ``(V) 40.0 percent with respect to individuals who so 
     become eligible in 1990 or thereafter.
       ``(E)(i) Any periodic payment which otherwise meets the 
     requirements of subparagraph (A), but which is paid on other 
     than a monthly basis, shall be allocated on a basis 
     equivalent to a monthly payment (as determined by the 
     Commissioner of Social Security), and such equivalent monthly 
     payment shall constitute a monthly periodic payment for 
     purposes of this paragraph.
       ``(ii) In the case of an individual who has elected to 
     receive a periodic payment that has been reduced so as to 
     provide a survivor's benefit to any other individual, the 
     payment shall be deemed to be increased (for purposes of any 
     computation under this paragraph or subsection (d)(3) by the 
     amount of such reduction.
       ``(iii) For purposes of this paragraph, the term `periodic 
     payment' includes a payment payable in a lump sum if it is a 
     commutation of, or a substitute for, periodic payments.
       ``(F)(i) Subparagraph (D) shall not apply in the case of an 
     individual who has 30 years or more of coverage. In the case 
     of an individual who has more than 20 years of coverage but 
     less than 30 years of coverage (as so defined), the percent 
     specified in the applicable subdivision of subparagraph 
     (D)(ii) shall (if such percent is smaller than the applicable 
     percent specified in the following table) be deemed to be the 
     applicable percent specified in the following table:
``If the number of such individual's years of coverage (as so defined) 
  is:                                        The applicable percent is:
29...........................................................85 percent
28...........................................................80 percent
27...........................................................75 percent
26...........................................................70 percent
25...........................................................65 percent
24...........................................................60 percent
23...........................................................55 percent
22...........................................................50 percent
21...........................................................45 percent

       ``(ii) For purposes of clause (i), the term `year of 
     coverage' shall have the meaning provided in paragraph 
     (1)(C)(ii), except that the reference to `15 percent' therein 
     shall be deemed to be a reference to `25 percent'.
       ``(G) An individual's primary insurance amount determined 
     under this paragraph shall be deemed to be computed under 
     paragraph (1) of this subsection for the purpose of applying 
     other provisions of this title.
       ``(H) This paragraph shall not apply in the case of an 
     individual whose eligibility for old-age or disability 
     insurance benefits is based on an agreement concluded 
     pursuant to section 233 or an individual who on January 1, 
     1984--
       ``(i) is an employee performing service to which social 
     security coverage is extended on that date solely by reason 
     of the amendments made by section 101 of the Social Security 
     Amendments of 1983; or
       ``(ii) is an employee of a nonprofit organization which (on 
     December 31, 1983) did not have in effect a waiver 
     certificate under section 3121(k) of the Internal Revenue 
     Code of 1954 and to the employees of which social security 
     coverage is extended on that date solely by reason of the 
     amendments made by section 102 of that Act, unless social 
     security coverage had previously extended to service 
     performed by such individual as an employee of that 
     organization under a waiver certificate which was 
     subsequently (prior to December 31, 1983) terminated.''.
       (2) Conforming amendments.----
       (A) Section 215(d)(3) of such Act (42 U.S.C. 415(d)(3)) is 
     amended--
       (i) by striking ``subsection (a)(7)(C)'' each place it 
     appears and inserting ``subsection (a)(7)(E)'';
       (ii) by striking ``subparagraph (E)'' and inserting 
     ``subparagraph (H)''; and
       (iii) by striking ``subparagraph (D)'' and inserting 
     ``subparagraph (F)(i)''.
       (B) Section 215(f)(9)(A) of such Act (42 U.S.C. 
     415(f)(9)(A)) is amended by striking ``(a)(7)(C)'' and 
     inserting ``(a)(7)(E)''.

     SEC. 4. EFFECTIVE DATE.

       The amendments made by this Act shall apply with respect to 
     monthly insurance benefits for months commencing with or 
     after the 12th calendar month following the date of the 
     enactment of this Act. Notwithstanding section 215(f) of the 
     Social Security Act, the Commissioner of Social Security 
     shall recompute primary insurance amounts to the extent 
     necessary to carry out the amendments made by this Act.
                                 ______