Equal Treatment of Public Servants Act of 2014 - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act to replace the current windfall elimination provision (WEP) (that reduces the Social Security benefits of workers who also have pension benefits from employment not covered by Social Security) for individuals who: (1) become eligible for old-age insurance benefits after 2016 or would attain age 62 after 2016 and become eligible for disability insurance benefits after 2016, (2) subsequently become entitled to such benefits, and (3) have earnings derived from noncovered service performed after 1977.
Establishes a new formula for the treatment of noncovered earnings in determining Social Security benefits.
Prescribes a second formula to modify WEP for current beneficiaries.
Directs the Commissioner of Social Security to recover overpayments from certain individuals.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5697 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5697
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
November 13, 2014
Mr. Brady of Texas (for himself and Mr. Neal) 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 ``Equal Treatment of Public Servants
Act of 2014''.
SEC. 2. REPLACEMENT OF THE WINDFALL ELIMINATION PROVISION WITH A
FORMULA EQUALIZING BENEFITS FOR CERTAIN INDIVIDUALS WITH
NON-COVERED EMPLOYMENT.
(a) In General.--Section 215(a) of the Social Security Act (42
U.S.C. 415(a)) is amended by inserting after paragraph (7) the
following:
``(8)(A) In the case of an individual whose primary insurance
amount would be computed under paragraph (1) of this subsection--
``(i) who becomes eligible for old-age insurance benefits
after 2016 or would attain age 62 after 2016 and becomes
eligible for disability insurance benefits after 2016,
``(ii) who subsequently becomes entitled to such benefits,
and
``(iii) who has earnings derived from noncovered service
performed in a year after 1977,
the primary insurance amount of such individual shall be computed or
recomputed under this paragraph.
``(B) The primary insurance amount of an individual described in
subparagraph (A), as computed or recomputed under this paragraph, 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) 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)), and
``(II) the denominator of which is an amount equal
to the individual's average indexed monthly earnings
(as determined under subparagraph (C)),
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 clauses (i) and (ii)(II) of subparagraph
(B), the individual's average indexed monthly earnings shall be
determined by treating all recorded noncovered earnings (as defined in
clause (ii)(I)) derived by the individual from noncovered service
performed in each year after 1977 as `wages' (as defined in section 209
for purposes of this title), which shall be treated as included in the
individual's adjusted total covered earnings (as defined in clause
(ii)(II)) for such calendar year together with amounts consisting of
`wages' (as so defined without regard to this subparagraph) paid during
such calendar year and self-employment income (as defined in section
211(b)) for taxable years ending with or during such calendar year.
``(ii) For purposes of this subparagraph--
``(I) The term `recorded noncovered earnings' means
earnings derived from noncovered service (other than noncovered
service as a member of a uniformed service (as defined in
section 210(m))) for which satisfactory evidence is determined
by the Commissioner to be available in the records of the
Commissioner.
``(II) The term `adjusted total covered earnings' means, in
connection with an individual for any calendar year, the sum of
the wages paid to the individual during such calendar year (as
adjusted under subsection (b)(3)) plus the self-employment
income derived by the individual during any taxable year ending
with or during such calendar year (as adjusted under subsection
(b)(3)).
``(iii) The Commissioner of Social Security shall provide by
regulation for methods for determining whether satisfactory evidence is
available in the records of the Commissioner for earnings for
noncovered service (other than noncovered service as a member of a
uniformed service (as defined in section 210(m))) to be treated as
recorded noncovered earnings. Such methods shall provide for reliance
on earnings information which is provided to the Commissioner by
employers and which, as determined by the Commissioner, constitute a
reasonable basis for treatment of earnings for noncovered service as
recorded noncovered earnings. In making determinations under this
clause, the Commissioner shall also take into account any documentary
evidence of earnings derived from noncovered service by an individual
which is provided by the individual to the Commissioner and which the
Commissioner considers appropriate as a reasonable basis for treatment
of such earnings as recorded noncovered earnings, except that such
evidence provided by the individual shall be taken into account only to
the extent that such evidence does not relate to earnings for service
with respect to which information regarding earnings has already been
obtained by the Commissioner from the employer and only to the extent
that such evidence does not result in a reduction in the individual's
primary insurance amount as calculated under subparagraph (B).
``(D) Upon the death of an individual whose primary insurance
amount is computed or recomputed under this paragraph, such primary
insurance amount shall be computed or recomputed under paragraph (1) of
this subsection.''.
(b) Modification of Windfall Elimination Provision for Current
Beneficiaries; Recovery of Certain Overpayments.--Section 215(a)(7) of
such Act (42 U.S.C. 415(a)(7)) is amended by adding at the end the
following:
``(F)(i) Notwithstanding subparagraph (A), for purposes of
determining the amount of monthly insurance benefits for months after
December 2016, the primary insurance amount of an individual described
in subparagraph (A), or an individual described in subparagraph (G)
whose primary insurance amount was calculated or recalculated under
subparagraph (B), shall be deemed to be equal to the sum of--
``(I) the primary insurance amount of such individual
computed or recomputed under subparagraph (B); plus
``(II) the applicable percentage (determined under clause
(ii)) of the amount by which the primary insurance amount of
such individual computed or recomputed under subparagraph (B)
is exceeded by the primary insurance amount of such individual
that would be determined without regard to this paragraph.
``(ii) The applicable percentage determined under this clause shall
be a percentage (but not more than 50 percent) which shall be
determined by the Commissioner on the basis of the amount of the
savings generated as a result of the enactment of the Equal Treatment
of Public Servants Act of 2014. The Commissioner shall determine and
promulgate the applicable percentage determined under this clause on or
before November 1, 2016, based upon the most recent actuarial estimates
then available.
``(G) 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 and before 2017 (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 before 2017 and
becomes eligible for a disability insurance benefit after 1985
and before 2017, and
``(iii) is eligible for old-age insurance benefits or
disability insurance benefits for December 2016,
``(iv) has recorded noncovered earnings (as defined in
paragraph (8)(C)(ii)), and
``(v) has less than 30 years of coverage (as defined in
subparagraph (D)),
the primary insurance amount of such individual shall be computed or
recomputed under this paragraph unless such individual provides to the
Commissioner evidence determined to be satisfactory by the Commissioner
that such individual has not received any periodic payment attributable
to noncovered service. The Commissioner shall, in accordance with
section 204, recover from such individual described in subparagraph
(A), and any other individual receiving benefits under this title on
the basis of the wages and self-employment income of such individual
described in subparagraph (A), any excess of the total amount of
benefits under this title paid to each such individual prior to 2017
over the amount computed on the basis of the primary insurance amount
computed or recomputed under this paragraph without regard to
subparagraph (F).''.
(c) Conforming Amendments.--Section 215(a)(7)(A) of such Act (42
U.S.C. 415(a)(7)(A)) is amended--
(1) by striking ``after 1985'' each place it appears and
inserting ``after 1985 and before 2017''; and
(2) by striking ``hereafter in this paragraph and in
subsection (d)(3)'' and inserting ``in this paragraph,
paragraph (8), and subsection (d)(3)''.
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Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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