[Congressional Bills 118th Congress] [From the U.S. Government Publishing Office] [S. 5017 Introduced in Senate (IS)] <DOC> 118th CONGRESS 2d Session S. 5017 To improve the retirement security of American families by increasing Social Security benefits for current and future beneficiaries while making Social Security stronger for future generations. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES September 11, 2024 Mr. Schatz introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To improve the retirement security of American families by increasing Social Security benefits for current and future beneficiaries while making Social Security stronger for future generations. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Safeguarding American Families and Expanding Social Security Act of 2024''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Determination of taxable wages and self-employment income above contribution and benefit base after 2024. Sec. 3. Adjustments to primary insurance amount formula and inclusion of surplus earnings for benefit determinations. Sec. 4. Increase in benefit amounts for long-term eligible individuals. Sec. 5. Computation of cost-of-living increases for Social Security benefits; consumer price index for elderly consumers. Sec. 6. Deemed wages for caregivers of dependent relatives. Sec. 7. Increase in minimum benefit for lifetime low earners based on years in the workforce. Sec. 8. Elimination of disability waiting period for disability insurance benefits and surviving spouse benefits. Sec. 9. Tax on investment gain. Sec. 10. Holding SSI, Medicaid, and CHIP beneficiaries harmless. SEC. 2. DETERMINATION OF TAXABLE WAGES AND SELF-EMPLOYMENT INCOME ABOVE CONTRIBUTION AND BENEFIT BASE AFTER 2024. (a) Determination of Taxable Wages Above Contribution and Benefit Base After 2024.-- (1) Amendments to the internal revenue code of 1986.-- Section 3121 of the Internal Revenue Code of 1986 is amended-- (A) in subsection (a)(1), by inserting ``the applicable percentage (determined under subsection (c)(1)) of'' before ``that part of the remuneration''; and (B) in subsection (c), by striking ``(c) Included and Excluded Service.--For purposes of this chapter, if'' and inserting the following: ``(c) Special Rules for Wages and Employment.-- ``(1) Applicable percentage of remuneration in determining taxable wages.--For purposes of subsection (a)(1), the applicable percentage for a calendar year shall be equal to-- ``(A) for 2025, 80 percent; ``(B) for 2026 through 2028, the applicable percentage under this paragraph for the previous year, decreased by 20 percentage points; and ``(C) for 2029 and each year thereafter, 0 percent. ``(2) Included and excluded service.--For purposes of this chapter, if''. (2) Amendments to the social security act.--Section 209 of the Social Security Act (42 U.S.C. 409) is amended-- (A) in subsection (a)(1)-- (i) in subparagraph (I)-- (I) by inserting ``and before 2025'' after ``1974''; and (II) by inserting ``and'' after the semicolon; (ii) by adding at the end the following new subparagraph: ``(J) 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 2024 with respect to which such contribution and benefit base is effective, is paid to such individual during such calendar year;''; and (B) by adding at the end the following new subsection: ``(l) For purposes of subsection (a)(1)(J), the applicable percentage for a calendar year shall be equal to-- ``(1) for 2025, 80 percent; ``(2) for 2026 through 2028, the applicable percentage under this subsection for the previous year, decreased by 20 percentage points; and ``(3) for 2029 and each year thereafter, 0 percent.''. (3) Effective date.--The amendments made by this subsection shall apply with respect to remuneration paid in calendar years after 2024. (b) Determination of Taxable Self-Employment Income Above Contribution and Benefit Base After 2024.-- (1) Amendments to the internal revenue code of 1986.-- Section 1402 of the Internal Revenue Code of 1986 is amended-- (A) in subsection (b)(1), by striking ``that part of the net earnings'' and all that follows through ``minus'' and inserting the following: ``an amount equal to the applicable percentage (as determined under subsection (d)(2)) of that part of the net earnings from self-employment which is in excess of the difference (not to be less than zero) between (i) an amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective for the calendar year in which such taxable year begins, and''; and (B) in subsection (d)-- (i) by striking ``(d) Employee and Wages.-- The term'' and inserting the following: ``(d) Rules and Definitions.-- ``(1) Employee and wages.--The term''; and (ii) by adding at the end the following: ``(2) Applicable percentage of net earnings from self- employment in determining taxable self-employment income.--For purposes of subsection (b)(1), the applicable percentage for a taxable year beginning in any calendar year referred to in such subsection shall be equal to-- ``(A) for 2025, 80 percent; ``(B) for 2026 through 2028, the applicable percentage under this paragraph for the previous year, decreased by 20 percentage points; and ``(C) for 2029 and each year thereafter, 0 percent.''. (2) Amendments to the social security act.--Section 211 of the Social Security Act (42 U.S.C. 411) is amended-- (A) in subsection (b)-- (i) in paragraph (1)(I)-- (I) by striking ``or'' after the semicolon; and (II) by inserting ``and before 2025'' after ``1974''; (ii) by redesignating paragraph (2) as paragraph (3); and (iii) by inserting after paragraph (1) the following: ``(2) For any taxable year beginning in any calendar year after 2024, 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 the difference (not to be less than zero) between-- ``(A) an amount equal to the contribution and benefit base (as determined under section 230) that is effective for such calendar year, and ``(B) the amount of the wages paid to such individual during such taxable year; or''; and (B) by adding at the end the following: ``(l) For purposes of subsection (b)(2), the applicable percentage for a taxable year beginning in any calendar year referred to in such paragraph shall be equal to-- ``(1) for 2025, 80 percent; ``(2) for 2026 through 2028, the applicable percentage under this subsection for the previous year, decreased by 20 percentage points; and ``(3) for 2029 and each year thereafter, 0 percent.''. (3) Effective date.--The amendments made by this subsection shall apply with respect to taxable years beginning after calendar year 2024. SEC. 3. ADJUSTMENTS TO PRIMARY INSURANCE AMOUNT FORMULA AND INCLUSION OF SURPLUS EARNINGS FOR BENEFIT DETERMINATIONS. (a) Increase in Percentage Factor for Lowest Portion of Earnings Used To Determine Primary Insurance Amounts.--Section 215(a)(1)(A)(i) of the Social Security Act (42 U.S.C. 415(a)(1)(A)(i)) is amended by striking ``90 percent'' and inserting ``95 percent''. (b) Inclusion of Surplus Average Indexed Monthly Earnings in Determination of Primary Insurance Amounts.-- (1) In general.--Section 215(a)(1)(A) of the Social Security Act (42 U.S.C. 415(a)(1)(A)) is amended-- (A) in clauses (i), (ii), and (iii), by inserting ``basic'' before ``average indexed monthly earnings'' each place it appears; (B) in clause (ii), by striking ``and'' at the end; (C) in clause (iii), by adding ``and'' at the end; and (D) by inserting after clause (iii) the following new clause: ``(iv) 5 percent of the individual's surplus average indexed monthly earnings,''. (2) Bend point adjustments.--Section 215(a)(1)(B) of such Act (42 U.S.C. 415(a)(1)(B)) is amended-- (A) in clause (i), by inserting ``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 2025, the amount established for purposes of clause (ii) of subparagraph (A) shall be $6,300.'' after the period; (B) in clause (ii)-- (i) by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively; (ii) by striking ``For individuals'' and inserting ``(I) Subject to subclause (II), for individuals''; and (iii) by adding at the end the following new subclause: ``(II) 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 2025, the amount established for purposes of clause (ii) of subparagraph (A) shall equal the product of the amount established with respect to calendar year 2025 under clause (i) of this subparagraph and the quotient obtained by dividing-- ``(aa) 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 ``(bb) the national average wage index (as so defined) for 2023.''; (C) by redesignating clause (iii) as clause (iv); and (D) by inserting after clause (ii) the following new clause: ``(iii) 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 2029, the amount determined under clause (ii) of this subparagraph for purposes of subparagraph (A)(i) for such calendar year shall be increased by-- ``(I) for calendar year 2030, 1 percent; ``(II) for each of calendar years 2031 through 2043, the percent determined under this clause for the preceding year increased by 1 percentage point; and ``(III) for calendar year 2044 and each year thereafter, 15 percent.''. (3) Recomputation of benefits for existing beneficiaries.-- Section 215(f) of the Social Security Act (42 U.S.C. 415(f)) is amended by adding at the end the following new paragraph: ``(10) Recomputation of primary insurance amount for individuals who became eligible for benefits before 2025.-- ``(A) The Commissioner of Social Security shall recompute the primary insurance amounts applicable to beneficiaries whose benefits are based on a primary insurance amount that was computed under this section effective prior to January 2025. Such recomputation shall be effective January 2025. ``(B) In recomputing the primary insurance amount applicable to a beneficiary under this paragraph, the Commissioner of Social Security shall calculate the primary insurance amount of the individual under subsection (a)(1) as in effect on the date that such primary insurance amount was initially computed, except that the Commissioner shall substitute for the amount that applied under subparagraph (B)(ii) of such subsection on such date an amount equal to the product of-- ``(i) the amount that applied under such subparagraph on such date; and ``(ii) the ratio of-- ``(I) 6,300; to ``(II) 6,002. ``(C) Each amount determined under subparagraph (B) 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. ``(D) If a primary insurance amount applicable to a beneficiary, as recomputed under this paragraph, is lower than the primary insurance amount applicable to such beneficiary as it was originally computed, such higher primary insurance amount shall continue to apply to such beneficiary.''. (c) Basic AIME and Surplus AIME.-- (1) Basic aime.--Section 215(b)(1) of such Act (42 U.S.C. 415(b)(1)) is amended-- (A) by inserting ``basic'' before ``average''; and (B) in subparagraph (A), by striking ``paragraph (3)'' and inserting ``paragraph (3)(A)'' and by inserting before the comma the following: ``to the extent such total does not exceed the contribution and benefit base for the applicable year''. (2) Surplus aime.-- (A) In general.--Section 215(b)(1) of such Act (as amended by paragraph (1)) is amended-- (i) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively; (ii) by striking ``An individual's'' and inserting ``(A) An individual's''; and (iii) by adding at the end the following new subparagraph: ``(B)(i) An individual's surplus average indexed monthly earnings shall be equal to the quotient obtained by dividing-- ``(I) 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 ``(II) the number of months in those years. ``(ii) 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.''. (B) Conforming amendment.--The heading for section 215(b) of such Act is amended by striking ``Average Indexed Monthly Earnings'' and inserting ``Basic Average Indexed Monthly Earnings; Surplus Average Indexed Monthly Earnings''. (3) Adjustment of surplus earnings for purposes of determining surplus aime.--Section 215(b)(3) of such Act (42 U.S.C. 415(b)(3)) is amended-- (A) in subparagraph (A)-- (i) by striking ``subparagraph (B)'' and inserting ``subparagraph (C)''; and (ii) by inserting ``and determination of basic average indexed monthly income under paragraph (1)(A)'' after ``paragraph (2)''; (B) by redesignating subparagraph (B) as subparagraph (C); and (C) by inserting after subparagraph (A) the following new subparagraph: ``(B) For purposes of determining under paragraph (1)(B) an individual's surplus average indexed monthly earnings, the individual's surplus earnings for a benefit computation year shall be deemed to be equal to the product of-- ``(i) the individual's surplus earnings for such year (as determined without regard to this subparagraph), and ``(ii) the quotient described in subparagraph (A)(ii).''. (d) Effective Date.--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 2029. SEC. 4. INCREASE IN BENEFIT AMOUNTS FOR LONG-TERM ELIGIBLE INDIVIDUALS. (a) In General.--Section 202 of the Social Security Act (42 U.S.C. 402) is amended by adding at the end the following new subsection: ``(aa) Increase in Benefit Amounts for Long-Term Eligible Individuals.-- ``(1) In general.--The amount of a monthly benefit which is payable to an individual for a month under subsections (a) through (h) or section 223(a) (as determined without regard to this subsection) shall be increased by 5 percent if the individual is a long-term eligible individual during any part of such month. ``(2) Long-term eligible individual defined.-- ``(A) In general.--The term `long-term eligible individual' means an individual who-- ``(i) is entitled to a monthly benefit under subsections (a) through (h) or section 223(a); and ``(ii) has attained 82 years of age or 240 benefit months (as defined in subparagraph (B)), whichever is earlier. ``(B) Benefit month.-- ``(i) In general.--For purposes of subparagraph (A), the term `benefit month' means a month for which an individual-- ``(I) has attained age 19; and ``(II) is entitled to a monthly benefit under subsections (a) through (h) of section 202 or section 223(a). ``(ii) Exclusions.--Such term excludes any month in which an individual is-- ``(I) entitled to a benefit under this section or section 223(a) that is not payable or reduced to zero by application of subsection (k), (n), (t), (u), (v), or (x) of this section; or ``(II) subject to a penalty under section 1129A. ``(3) Disregard of increase for purposes of family maximum.--The amount of any increase under this subsection to a monthly benefit amount of a long-term eligible individual shall be disregarded for purposes of applying section 203(a).''. (b) Conforming Amendments.-- (1) Section 202 of the Social Security Act (42 U.S.C. 402) is amended-- (A) in subsection (a), by striking ``subsection (q) and subsection (w)'' and inserting ``subsections (q), (w), and (aa)''; (B) in subsections (b)(2) and (c)(2), by striking ``subsections (k)(5) and (q)'' and inserting ``subsections (k)(5), (q), and (aa)''; (C) in subsection (d)(2), by striking ``Such child's'' each place it appears and inserting ``Subject to subsection (aa), such child's''; (D) in subsections (e)(2)(A) and (f)(2)(A), by inserting ``subsection (aa),'' after ``subsection (q),''; (E) in subsection (g)(2), by striking ``Such mother's or father's'' and inserting ``Subject to subsection (aa), such mother's or father's''; and (F) in subsection (h)(2)(A), by inserting ``subsection (aa) and'' before ``subparagraphs (B) and (C)''. (2) Section 223(a)(2) of the Social Security Act (42 U.S.C. 423(a)(2)) is amended-- (A) in the matter preceding subparagraph (A), by striking ``section 202(q)'' and inserting ``subsections (q) and (aa) of section 202''; and (B) in subparagraph (B), by striking ``clause (ii)'' and inserting ``subdivision (ii) or (iii) of the matter following subparagraph (E)''. (c) Effective Date.--The amendments made by this section shall apply to benefits payable for months in any calendar year after 2029. SEC. 5. COMPUTATION OF COST-OF-LIVING INCREASES FOR SOCIAL SECURITY BENEFITS; CONSUMER PRICE INDEX FOR ELDERLY CONSUMERS. (a) Computation of Cost-of-Living Increases.-- (1) In general.--Section 215(i) of the Social Security Act (42 U.S.C. 415(i)) is amended-- (A) in paragraph (1)(G), by inserting before the period the following: ``, and, with respect to any monthly insurance benefit payable under this title, 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), the applicable Consumer Price Index shall be the Consumer Price Index for Elderly Consumers and such primary insurance amount shall be adjusted under this subsection using such Index''; and (B) in paragraph (4)-- (i) by striking ``and by section 9001'' and inserting ``, by section 9001''; and (ii) by striking ``1986,'' and inserting ``1986, and by section 5(a) of the Safeguarding American Families and Expanding Social Security Act of 2024,''. (2) Conforming amendments in applicable former law.-- Section 215(i)(1)(C) of the Social Security 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: ``, and, with respect to any monthly insurance benefit payable under this title, 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), the applicable Consumer Price Index shall be the Consumer Price Index for Elderly Consumers and such primary insurance amount shall be adjusted under this subsection using such Index''. (3) Effective date.--The amendments made by this subsection shall apply to determinations made by the Commissioner of Social Security under section 215(i)(2) of the Social Security Act (42 U.S.C. 415(i)(2)) with respect to cost-of-living computation quarters ending on or after September 30, 2025. (b) Consumer Price Index for Elderly Consumers.-- (1) In general.--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 ``Consumer Price Index for Elderly Consumers'' that indicates changes over time in expenditures for consumption which are typical for individuals in the United States who have attained early retirement age (as defined under section 216(l)(2) of the Social Security Act (42 U.S.C. 416(l)(2)) for purposes of an old-age, wife's, or husband's insurance benefit). (2) Effective date.--Paragraph (1) shall apply with respect to calendar months ending on or after June 30 of the calendar year in which this Act is enacted. (3) Authorization of appropriations.--There are authorized to be appropriated such sums as are necessary to carry out the provisions of this subsection. SEC. 6. DEEMED WAGES FOR CAREGIVERS OF DEPENDENT RELATIVES. (a) In General.--Title II of the Social Security Act is amended by adding after section 234 (42 U.S.C. 434) the following new section: ``deemed wages for caregivers of dependent relatives ``Sec. 235. (a) Definitions.--For purposes of this section-- ``(1)(A) Subject to subparagraph (B), the term `qualifying month' means, in connection with an individual, any month-- ``(i) beginning after the date of enactment of the Safeguarding American Families and Expanding Social Security Act of 2024; and ``(ii) during which such individual was engaged for not less than 80 hours in providing care to a dependent relative without monetary compensation. ``(B) The term `qualifying month' does not include any month ending after the date on which such individual attains retirement age (as defined in section 216(l)). ``(C) For purposes of subparagraph (A)(ii), assistance provided to a family caregiver of an eligible veteran under section 1720G of title 38, United States Code, shall not be considered monetary compensation for providing care to such eligible veteran. ``(2) The term `dependent relative' means, in connection with an individual-- ``(A) a child, grandchild, sibling, niece, or nephew (of such individual or such individual's spouse or domestic partner), or a child to which the individual or the individual's spouse or domestic partner is standing in loco parentis, who is under the age of 16; or ``(B) a child, grandchild, niece, or nephew (of such individual or such individual's spouse or domestic partner), a child to which the individual or the individual's spouse or domestic partner is standing in loco parentis, a parent, grandparent, sibling, aunt, or uncle (of such individual or his or her spouse or domestic partner), or such individual's spouse or domestic partner, if such child, grandchild, niece, nephew, parent, grandparent, sibling, aunt, uncle, spouse, or domestic partner is a chronically dependent individual. ``(3)(A) The term `chronically dependent individual' means an individual who-- ``(i) is dependent on a daily basis on verbal reminding, physical cueing, supervision, or other assistance provided to the individual by another person in the performance of at least two of the activities of daily living (described in subparagraph (B)) or instrumental activities of daily living (described in subparagraph (C)); and ``(ii) without the assistance described in clause (i), could not perform such activities of daily living or instrumental activities of daily living. ``(B) The `activities of daily living' referred to in subparagraph (A) means basic personal everyday activities, including-- ``(i) eating; ``(ii) bathing; ``(iii) dressing; ``(iv) toileting; and ``(v) transferring in and out of a bed or in and out of a chair. ``(C) The `instrumental activities of daily living' referred to in subparagraph (A) means activities related to living independently in the community, including-- ``(i) meal planning and preparation; ``(ii) managing finances; ``(iii) shopping for food, clothing, or other essential items; ``(iv) performing essential household chores; ``(v) communicating by phone or other form of media; and ``(vi) traveling around and participating in the community. ``(b) Deemed Wages of Caregiver.--(1)(A) For purposes of determining entitlement to and the amount of any monthly benefit for any month beginning after the date of enactment of Safeguarding American Families and Expanding Social Security Act of 2024, or entitlement to and the amount of any lump-sum death payment in the case of a death after such month, payable under this title on the basis of the wages and self-employment income of any individual, and for purposes of section 216(i)(3), such individual shall be deemed to have been paid during each qualifying month (in addition to wages or self- employment income actually paid to or derived by such individual during such month) at an amount per month equal to-- ``(i) in the case of a qualifying month during which no wages or self-employment income were actually paid to or derived by such individual-- ``(I) 50 percent of the national average wage index (as defined in section 209(k)(1)) for the second calendar year preceding the calendar year in which such month occurs; or ``(II) if the dependent relative to which the individual provided care during such month was, at any time during such month, a child under the age of 6 or a chronically dependent individual, 100 percent of the national average wage index (as defined in section 209(k)(1)) for the second calendar year preceding the calendar year in which such month occurs; ``(ii) in the case of a qualifying month in which an individual engages in employment or any trade or business carried on by the individual or by a partnership of which the individual is a member for not more than 80 hours, 50 percent of the national average wage index (as defined in section 209(k)(1)) for the second calendar year preceding the calendar year in which such month occurs; and ``(iii) in the case of any other qualifying month, the excess of the amount determined under clause (i) over \1/2\ of the wages or self-employment income actually paid to or derived by such individual during such month. ``(B) In any case in which there are more than 120 qualifying months for an individual, only the last 60 of such months shall be taken into account for purposes of this section. ``(2) Paragraph (1) shall not be applicable in the case of any monthly benefit or lump-sum death payment if a larger such benefit or payment, as the case may be, would be payable without its application. ``(c) Rules and Regulations.-- ``(1) Not later than one year after the date of the enactment of this section, the Commissioner of Social Security shall promulgate such regulations as are necessary to carry out this section and to prevent fraud and abuse with respect to the benefits under this section, including regulations establishing procedures for the application and certification requirements described in paragraph (2). ``(2) A qualifying month shall not be taken into account under this section with respect to an individual unless-- ``(A) the individual submits to the Commissioner of Social Security an application for benefits under this section that includes-- ``(i) the name and identifying information of the dependent relative with respect to whom the individual was engaged in providing care during such month; ``(ii) if the dependent relative is not a child under the age of 16, documentation from the physician of the dependent relative explaining why the dependent relative is a chronically dependent individual; and ``(iii) such other information as the Commissioner may require to verify the status of the dependent relative; and ``(B) for every qualifying month or period of up to 12 consecutive qualifying months that occurs after the first period of 12 consecutive qualifying months, the individual certifies, in such form and manner as the Commissioner shall require, that the information provided in the individual's application for benefits under this section has not changed.''. (b) Conforming Amendment.--Section 209(k)(1) of such Act (42 U.S.C. 409(k)(1)) is amended-- (1) by striking ``and'' before ``230(b)(2)'' the first time it appears; and (2) by inserting ``and 235(b)(1)(A)(i),'' after ``1977),''. SEC. 7. INCREASE IN MINIMUM BENEFIT FOR LIFETIME LOW EARNERS BASED ON YEARS IN THE WORKFORCE. (a) In General.--Section 215(a)(1) of the Social Security Act (42 U.S.C. 415(a)(1)) is amended-- (1) by redesignating subparagraph (D) as subparagraph (E); and (2) by inserting after subparagraph (C) the following new subparagraph: ``(D)(i) Effective with respect to the benefits of individuals who become eligible for old-age insurance benefits or disability insurance benefits (or die before becoming so eligible) after 2024, no primary insurance amount computed under subparagraph (A) may be less than the greater of-- ``(I) the minimum monthly amount computed under subparagraph (C); or ``(II) in the case of an individual who has more than 10 years of work (as defined in clause (iv)(I)), the alternative minimum amount determined under clause (ii). ``(ii)(I) The alternative minimum amount determined under this clause is the applicable percentage of \1/12\ of the annual dollar amount determined under clause (iii) for the year in which the amount is determined. ``(II) For purposes of subclause (I), the applicable percentage is the percentage specified in connection with the number of years of work, as set forth in the following table: ``If the number of years The applicable of work is: percentage is: 11........................................... 6.25 percent 12........................................... 12.50 percent 13........................................... 18.75 percent 14........................................... 25.00 percent 15........................................... 31.25 percent 16........................................... 37.50 percent 17........................................... 43.75 percent 18........................................... 50.00 percent 19........................................... 56.25 percent 20........................................... 62.50 percent 21........................................... 68.75 percent 22........................................... 75.00 percent 23........................................... 81.25 percent 24........................................... 87.50 percent 25........................................... 93.75 percent 26........................................... 100.00 percent 27........................................... 106.25 percent 28........................................... 112.50 percent 29........................................... 118.75 percent 30 or more................................... 125.00 percent. ``(iii) The annual dollar amount determined under this clause is-- ``(I) for calendar year 2025, the poverty guideline for 2024; and ``(II) for any calendar year after 2025, the annual dollar amount for 2025 multiplied by the ratio of-- ``(aa) 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, to ``(bb) the national average wage index (as so defined) for 2023. ``(iv) For purposes of this subparagraph-- ``(I) the term `year of work' means, with respect to an individual, a year to which 4 quarters of coverage have been credited based on such individual's wages and self-employment income; and ``(II) the term `poverty guideline for 2023' means the annual poverty guideline for 2023 (as updated annually in the Federal Register by the Department of Health and Human Services under the authority of section 673(2) of the Omnibus Budget Reconciliation Act of 1981) as applicable to a single individual.''. (b) Recomputation.--Notwithstanding section 215(f)(1) of the Social Security Act, the Commissioner of Social Security shall recompute primary insurance amounts originally computed for months prior to November 2024 to the extent necessary to carry out the amendments made by this section. (c) Conforming Amendment.--Section 209(k)(1) of such Act (42 U.S.C. 409(k)(1)) is amended by inserting ``215(a)(1)(E),'' after ``215(a)(1)(D),''. SEC. 8. ELIMINATION OF DISABILITY WAITING PERIOD FOR DISABILITY INSURANCE BENEFITS AND SURVIVING SPOUSE BENEFITS. (a) Elimination of Waiting Period for Disability Insurance Benefits.--Section 223 of the Social Security Act (42 U.S.C. 423), as amended by section 4(b)(2), is amended-- (1) in subsection (a)-- (A) in paragraph (1), in the matter following subparagraph (E)-- (i) by striking ``disability insurance benefit (i) for each month'' and all that follows through ``, or (iii)'' and inserting ``disability insurance benefit''; and (ii) by striking ``, but only if'' and all that follows through ``under such disability''; and (B) in paragraph (2), by striking ``as though he had attained age 62 in--'' and all that follows through ``such disability insurance benefits,'' and inserting ``as though the individual had attained age 62 in the first month for which the individual becomes entitled to such disability insurance benefits,''; and (2) in subsection (c)-- (A) in the subsection header, by striking ``Definitions of Insured Status and Waiting Period'' and inserting ``Definition of Insured Status''; and (B) by striking paragraph (2). (b) Elimination of Waiting Period for Surviving Spouse and Surviving Divorced Spouse Benefits.--Section 202 of the Social Security Act (42 U.S.C. 402) is amended-- (1) in subsection (e)-- (A) in paragraph (1), in the matter following subparagraph (D), by striking ``beginning with--'' and all that follows through ``on such basis terminated,'' and inserting ``beginning with the first month in which she becomes so entitled to such insurance benefits''; (B) by striking paragraph (5); and (C) by redesignating paragraphs (6) through (8) as paragraphs (5) through (7); and (2) in subsection (f)-- (A) in paragraph (1), in the matter following subparagraph (D), by striking ``beginning with--'' and all that follows through ``on such basis terminated,'' and inserting ``beginning with the first month in which he becomes so entitled to such insurance benefits''; (B) by striking paragraph (5); and (C) by redesignating paragraphs (6) through (8) as paragraphs (5) through (7). (c) Effective Date.--The amendments made by this section shall apply with respect to applications for benefits filed on or after the date of the enactment of this Act. SEC. 9. TAX ON INVESTMENT GAIN. (a) In General.--Subsection (a) of section 1411 of the Internal Revenue Code of 1986 is amended by striking ``3.8 percent'' each place it appears and inserting ``6.8 percent''. (b) Conforming Amendment.--The heading for chapter 2A of the Internal Revenue Code of 1986 is amended by inserting ``AND SOCIAL SECURITY'' after ``MEDICARE''. (c) Trust Funds.-- (1) Technical amendments.--Section 201 of the Social Security Act (42 U.S.C. 401) is amended-- (A) in subsection (a)-- (i) by striking ``clause'' each place it appears and inserting ``paragraph''; and (ii) in the flush text at the end, by striking ``clauses'' each place it appears and inserting ``paragraphs''; and (B) in subsection (g)(2), by striking ``clause'' each place it appears and inserting ``paragraph''. (2) Federal old-age and survivors insurance trust fund.-- Subsection (a) of section 201 of the Social Security Act (42 U.S.C. 401), as amended by paragraph (1), is amended-- (A) in paragraph (4), by striking the period at the end and inserting ``; and''; (B) by inserting after paragraph (4) the following new paragraph: ``(5) 44.1 percent of the taxes imposed under section 1411 of the Internal Revenue Code of 1986.''; and (C) in the flush matter at the end, by striking ``paragraphs (3) and (4)'' each place it appears and inserting ``paragraphs (3), (4), and (5)''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 10. HOLDING SSI, MEDICAID, AND CHIP BENEFICIARIES HARMLESS. For purposes of determining the income of an individual to establish eligibility for, and the amount of, benefits payable under title XVI of the Social Security Act, eligibility for medical assistance under the State plan under title XIX (or a waiver of such plan), or eligibility for child health assistance under the State child health plan under title XXI (or a waiver of the plan), the amount of any benefit to which the individual is entitled under title II of such Act shall be deemed not to exceed the amount of the benefit that would be determined for such individual under such title as in effect on the day before the date of the enactment of this Act. <all>
S. 5017 (IS) - Safeguarding American Families and Expanding Social Security Act of 2024
Bill Metadata
Publish Date: Sep 20, 2024
Scanned and Processed on: Sep 23, 2024
Official Title: To improve the retirement security of American families by increasing Social Security benefits for current and future beneficiaries while making Social Security stronger for future generations.
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- 2024-09-11: Mr. Schatz introduced the following bill; which was read twice and referred to the Committee on Finance
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