Public Servant Retirement Protection Act - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act (SSA) to repeal the current windfall elimination provisions (which reduce Social Security benefits of retirees who paid into the Social Security system for part of their careers and who also receive a government pension from work in the public sector not covered by Social Security) and to replace them with a formula that treats non-Social Security earnings as if they were Social Security earnings for the purpose of calculating lifetime earnings for certain individuals.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4391 Introduced in House (IH)]
108th CONGRESS
2d Session
H. R. 4391
To amend title II of the Social Security Act to repeal the windfall
elimination provision and protect the retirement of public servants.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 19, 2004
Mr. Brady of Texas (for himself, Mr. Shaw, Mr. Berman, Mr. McKeon, Mr.
Sam Johnson of Texas, and Mr. Michaud) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend title II of the Social Security Act to repeal the windfall
elimination provision and protect the retirement of public servants.
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U.S.C. 415(a)(7)) is repealed.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 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 The applicable percent is:
individual's years of
coverage (as so defined)
is:
29..................................................... 85
28..................................................... 80
27..................................................... 75
26..................................................... 70
25..................................................... 65
24..................................................... 60
23..................................................... 55
22..................................................... 50
21..................................................... 45
``(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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Referred to the Subcommittee on Social Security.
Subcommittee Hearings Held.
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