Notch Fairness Act of 2011 - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act to revise the formula for the computation of minimum Old Age Insurance benefits for individuals who reached age 65 in or after 1979, and to whom applies the 15-year transition period for the changes in benefit computation rules enacted in the Social Security Amendments of 1977.
Sets forth a schedule of additional benefit increases for such beneficiaries (and related beneficiaries), with percentages declining from 55% to 5% and keyed to the year an individual became eligible for such benefits between 1979 and 1988.
Allows such beneficiaries, in the alternative, to receive lump sum payments over four years totaling $5,000.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1001 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 1001
To amend title II of the Social Security Act to allow workers who
attain age 65 after 1981 and before 1992 to choose either lump sum
payments over four years totalling $5,000 or an improved benefit
computation formula under a new 10-year rule governing the transition
to the changes in benefit computation rules enacted in the Social
Security Amendments of 1977, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 10, 2011
Mr. McIntyre 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 allow workers who
attain age 65 after 1981 and before 1992 to choose either lump sum
payments over four years totalling $5,000 or an improved benefit
computation formula under a new 10-year rule governing the transition
to the changes in benefit computation rules enacted in the Social
Security Amendments of 1977, and for other purposes.
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 ``Notch Fairness Act of 2011''.
SEC. 2. NEW GUARANTEED MINIMUM PRIMARY INSURANCE AMOUNT WHERE
ELIGIBILITY ARISES DURING TRANSITIONAL PERIOD.
(a) In General.--Section 215(a) of the Social Security Act is
amended--
(1) in paragraph (4)(B), by inserting ``(with or without
the application of paragraph (8))'' after ``would be made'',
and by striking ``1984'' in clause (i) and inserting ``1989'';
and
(2) by adding at the end the following:
``(8)(A) In the case of an individual described in paragraph (4)(B)
(subject to subparagraphs (F) and (G) of this paragraph), the amount of
the individual's primary insurance amount as computed or recomputed
under paragraph (1) shall be deemed equal to the sum of--
``(i) such amount, and
``(ii) the applicable transitional increase amount (if
any).
``(B) For purposes of subparagraph (A)(ii), the term `applicable
transitional increase amount' means, in the case of any individual, the
product derived by multiplying--
``(i) the excess under former law, by
``(ii) the applicable percentage in relation to the year in
which the individual becomes eligible for old-age insurance
benefits, as determined by the following table:
``If the individual becomes The applicable
eligible for such benefits in: percentage is:
1979................................................... 55
1980................................................... 45
1981................................................... 35
1982................................................... 32
1983................................................... 25
1984................................................... 20
1985................................................... 16
1986................................................... 10
1987................................................... 3
1988................................................... 5.
``(C) For purposes of subparagraph (B), the term `excess under
former law' means, in the case of any individual, the excess of--
``(i) the applicable former law primary insurance amount,
over
``(ii) the amount which would be such individual's primary
insurance amount if computed or recomputed under this section
without regard to this paragraph and paragraphs (4), (5), and
(6).
``(D) For purposes of subparagraph (C)(i), the term `applicable
former law primary insurance amount' means, in the case of any
individual, the amount which would be such individual's primary
insurance amount if it were--
``(i) computed or recomputed (pursuant to paragraph
(4)(B)(i)) under section 215(a) as in effect in December 1978,
or
``(ii) computed or recomputed (pursuant to paragraph
(4)(B)(ii)) as provided by subsection (d),
(as applicable) and modified as provided by subparagraph (E).
``(E) In determining the amount which would be an individual's
primary insurance amount as provided in subparagraph (D)--
``(i) subsection (b)(4) shall not apply;
``(ii) section 215(b) as in effect in December 1978 shall
apply, except that section 215(b)(2)(C) (as then in effect)
shall be deemed to provide that an individual's `computation
base years' may include only calendar years in the period after
1950 (or 1936 if applicable) and ending with the calendar year
in which such individual attains age 61, plus the 3 calendar
years after such period for which the total of such
individual's wages and self-employment income is the largest;
and
``(iii) subdivision (I) in the last sentence of paragraph
(4) shall be applied as though the words `without regard to any
increases in that table' in such subdivision read `including
any increases in that table'.
``(F) This paragraph shall apply in the case of any individual only
if such application results in a primary insurance amount for such
individual that is greater than it would be if computed or recomputed
under paragraph (4)(B) without regard to this paragraph.
``(G)(i) This paragraph shall apply in the case of any individual
subject to any timely election to receive lump sum payments under this
subparagraph.
``(ii) A written election to receive lump sum payments under this
subparagraph, in lieu of the application of this paragraph to the
computation of the primary insurance amount of an individual described
in paragraph (4)(B), may be filed with the Commissioner of Social
Security in such form and manner as shall be prescribed in regulations
of the Commissioner. Any such election may be filed by such individual
or, in the event of such individual's death before any such election is
filed by such individual, by any other beneficiary entitled to benefits
under section 202 on the basis of such individual's wages and self-
employment income. Any such election filed after December 31, 2011,
shall be null and void and of no effect.
``(iii) Upon receipt by the Commissioner of a timely election filed
by the individual described in paragraph (4)(B) in accordance with
clause (ii)--
``(I) the Commissioner shall certify receipt of such
election to the Secretary of the Treasury, and the Secretary of
the Treasury, after receipt of such certification, shall pay
such individual, from amounts in the Federal Old-Age and
Survivors Insurance Trust Fund, a total amount equal to $5,000,
in 4 annual lump sum installments of $1,250, the first of which
shall be made during fiscal year 2012 not later than July 1,
2012, and
``(II) subparagraph (A) shall not apply in determining such
individual's primary insurance amount.
``(iv) Upon receipt by the Commissioner as of December 31, 2011, of
a timely election filed in accordance with clause (ii) by at least one
beneficiary entitled to benefits on the basis of the wages and self-
employment income of a deceased individual described in paragraph
(4)(B), if such deceased individual has filed no timely election in
accordance with clause (ii)--
``(I) the Commissioner shall certify receipt of all such
elections received as of such date to the Secretary of the
Treasury, and the Secretary of the Treasury, after receipt of
such certification, shall pay each beneficiary filing such a
timely election, from amounts in the Federal Old-Age and
Survivors Insurance Trust Fund, a total amount equal to $5,000
(or, in the case of 2 or more such beneficiaries, such amount
distributed evenly among such beneficiaries), in 4 equal annual
lump sum installments, the first of which shall be made during
fiscal year 2012 not later than July 1, 2012, and
``(II) solely for purposes of determining the amount of
such beneficiary's benefits, subparagraph (A) shall be deemed
not to apply in determining the deceased individual's primary
insurance amount.''.
(b) Effective Date and Related Rules.--
(1) Applicability of amendments.--
(A) In general.--Except as provided in paragraph
(2), the amendments made by this Act shall be effective
as though they had been included or reflected in
section 201 of the Social Security Amendments of 1977.
(B) Applicability.--No monthly benefit or primary
insurance amount under title II of the Social Security
Act shall be increased by reason of such amendments for
any month before July 2012.
(2) Recomputation to reflect benefit increases.--In any
case in which an individual is entitled to monthly insurance
benefits under title II of the Social Security Act for June
2012, if such benefits are based on a primary insurance amount
computed--
(A) under section 215 of such Act as in effect (by
reason of the Social Security Amendments of 1977) after
December 1978, or
(B) under section 215 of such Act as in effect
prior to January 1979 by reason of subsection (a)(4)(B)
of such section (as amended by the Social Security
Amendments of 1977),
the Commissioner of Social Security (notwithstanding section
215(f)(1) of the Social Security Act) shall recompute such
primary insurance amount so as to take into account 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.
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