Social Security for Future Generations Act of 2021
This bill increases specified benefits and taxes related to, and otherwise modifies, the Social Security program.
Changes to benefits include
Changes to taxes include subjecting earnings in excess of $250,000 to Social Security payroll taxes. No taxes shall be applied to earnings between the contribution base (the maximum amount subject to the Social Security payroll tax, set at $142,800 for 2021) and $250,000.
The bill preserves eligibility for Supplemental Security Income payments and other means-tested programs, despite any changes to an individual's Social Security benefits under the bill.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5737 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 5737
To amend title II of the Social Security Act to enhance Social Security
benefits and maintain the commitment and the long-term solvency of the
Social Security program.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 26, 2021
Mr. Lawson of Florida (for himself, Mr. Cardenas, Ms. Wilson of
Florida, Mr. San Nicolas, Mr. Rush, Mr. Garcia of Illinois, Ms.
Pingree, Mr. McGovern, Ms. Tlaib, Ms. Adams, Ms. Kaptur, Mr. Evans, Mr.
Cohen, and Mr. Green of Texas) introduced the following bill; which was
referred to the Committee on Ways and Means, and in addition to the
Committees on Energy and Commerce, Education and Labor, and
Transportation and Infrastructure, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend title II of the Social Security Act to enhance Social Security
benefits and maintain the commitment and the long-term solvency of the
Social Security program.
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 ``Social Security for Future
Generations Act of 2021''.
SEC. 2. PAYROLL TAX ON WAGES AND SELF-EMPLOYMENT INCOME UP TO
CONTRIBUTION AND BENEFIT BASE AND MORE THAN $250,000.
(a) Determination of Wages Above Contribution and Benefit Base
After 2021.--
(1) Amendments to the internal revenue code.--
(A) In general.--Paragraph (1) of section 3121(a)
of the Internal Revenue Code of 1986 is amended by
inserting after ``such calendar year.'' the following:
``The preceding sentence shall apply only to calendar
years for which the contribution and benefit base (as
so determined) is less than $250,000, and, for such
calendar years, only to the extent remuneration paid to
such employee by such employer with respect to
employment does not exceed $250,000.''.
(B) Conforming amendment.--Paragraph (1) of section
3121(a) of the Internal Revenue Code of 1986 is amended
by striking ``Act) to'' and inserting ``Act), or in
excess of $250,000, to''.
(2) Amendment to the social security act.--Section
209(a)(1)(I) of the Social Security Act (42 U.S.C.
409(a)(1)(I)) is amended by inserting before the semicolon at
the end the following: ``except that this subparagraph shall
apply only to calendar years for which the contribution and
benefit base (as so determined) is less than $250,000, and, for
such calendar years, only to the extent remuneration paid to
such employee by such employer with respect to employment does
not exceed $250,000''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to remuneration paid in calendar years
after 2021.
(b) Determination of Self-Employment Income Above Contribution and
Benefit Base After 2021.--
(1) Amendments to the internal revenue code.--
(A) In general.--Paragraph (1) of section 1402(b)
of the Internal Revenue Code of 1986 is amended to read
as follows:
``(1) in the case of the tax imposed by section 1401(a), an
amount equal to--
``(A) $250,000, reduced (but not below zero) by
``(B) the sum of--
``(i) the part of the net earnings from
self-employment (if any) which is not in excess
of--
``(I) the 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, minus
``(II) the amount of the wages paid
to such individual during such taxable
year, plus
``(ii) the amount of the wages paid to such
individual during such taxable year which is in
excess of the amount in clause (i)(I); or''.
(B) Phaseout.--Subsection (b) of section 1402 of
the Internal Revenue Code of 1986 is amended by adding
at the end the following: ``Paragraph (1) shall apply
only to taxable years beginning in calendar years for
which the contribution and benefit base (as determined
under section 230 of the Social Security Act) is less
than $250,000.''.
(2) Amendments to the social security act.--
(A) In general.--Section 211(b)(1) of the Social
Security Act (42 U.S.C. 411(b)) is amended--
(i) in subparagraph (I)--
(I) by inserting ``and before
2021'' after ``1974''; and
(II) by striking ``or'' at the end;
and
(ii) by adding at the end the following:
``(J) For any taxable year beginning in any
calendar year after 2021, an amount equal to--
``(i) $250,000, reduced (but not below
zero) by
``(ii) the sum of--
``(I) the part of the net earnings
from self-employment (if any) which is
not in excess of--
``(aa) the amount equal to
the contribution and benefit
base (as determined under
section 230) which is effective
for the calendar year in which
such taxable year begins, minus
``(bb) the amount of the
wages paid to such individual
during such taxable year, plus
``(II) the amount of the wages paid
to such individual during such taxable
year which is in excess of the amount
in subclause (I)(aa); or''.
(B) Phaseout.--Section 211(b) of the Social
Security Act (42 U.S.C. 411(b)) is amended by adding at
the end the following: ``Paragraph (1) shall apply only
to taxable years beginning in calendar years for which
the contribution and benefit base (as determined under
section 230) is less than $250,000.''.
(3) Effective date.--The amendments made by this subsection
shall apply to net earnings from self-employment derived, and
remuneration paid, in calendar years after 2021.
SEC. 3. INCLUSION OF EARNINGS OVER $250,000 IN SOCIAL SECURITY BENEFIT
FORMULA.
(a) Inclusion of Earnings Over $250,000 in Determination of Primary
Insurance Amounts.--Section 215(a)(1)(A) of the Social Security Act (42
U.S.C. 415(a)(1)(A)) is amended--
(1) in clause (ii), by striking ``and'' at the end;
(2) in clause (iii), by inserting ``and'' at the end; and
(3) by inserting after clause (iii) the following:
``(iv) 2 percent of the individual's excess average indexed
monthly earnings (as defined in subsection (b)(5)(A)).''.
(b) Definition of Excess Average Indexed Monthly Earnings.--Section
215(b) of the Social Security Act (42 U.S.C. 415(b)) is amended--
(1) by striking ``wages'' and ``self-employment income''
each place such terms appear and inserting ``basic wages'' and
``basic self-employment income'', respectively; and
(2) by adding at the end the following:
``(5)(A) An individual's excess average indexed monthly earnings
shall be equal to the amount of the individual's average indexed
monthly earnings that would be determined under this subsection by
substituting `excess wages' for `basic wages' and `excess self-
employment income' for `basic self-employment income' each place such
terms appear in this subsection (except in this paragraph).
``(B) For purposes of this subsection--
``(i) the term `basic wages' means that portion of the
wages of an individual paid in a year that does not exceed the
contribution and benefit base for the year;
``(ii) the term `basic self-employment income' means that
portion of the self-employment income of an individual credited
to a year that does not exceed an amount equal to the
contribution and benefit base for the year minus the amount of
the wages paid to the individual in the year;
``(iii) the term `excess wages' means that portion of the
wages of an individual paid in a year after 2021 in excess of
the higher of $250,000 or the contribution and benefit base for
the year; and
``(iv) the term `excess self-employment income' means that
portion of the self-employment income of an individual credited
to a year after 2021 in excess of the higher of $250,000 or
such contribution and benefit base.''.
(c) Conforming Amendment.--Section 215(e)(1) of the Social Security
Act (42 U.S.C. 415(e)(1)) is amended by inserting ``and before 2021''
after ``after 1974''.
(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 2021.
SEC. 4. COMPUTATION OF COST-OF-LIVING INCREASES.
(a) In General.--Section 215(i)(1) of the Social Security Act (42
U.S.C. 415(i)(1)) is amended by adding at the end the following new
subparagraph:
``(H) the term `Consumer Price Index' means the Consumer
Price Index for Elderly Consumers (CPI-E, as published by the
Bureau of Labor Statistics of the Department of Labor).''.
(b) Application to Pre-1979 Law.--
(1) In general.--Section 215(i)(1) of the Social Security
Act as in effect in December 1978, and as applied in certain
cases under the provisions of such Act as in effect after
December 1978, is amended by adding at the end the following
new subparagraph:
``(D) the term `Consumer Price Index' means the Consumer
Price Index for Elderly Consumers (CPI-E, as published by the
Bureau of Labor Statistics of the Department of Labor).''.
(2) Conforming change.--Section 215(i)(4) of the Social
Security Act (42 U.S.C. 415(i)(4)) is amended by inserting
``and by section 4 of the Social Security for Future
Generations Act of 2021'' after ``1986''.
(c) No Effect on Adjustments Under Other Laws.--Section 215(i) of
the Social Security Act (42 U.S.C. 415(i)) is amended by adding at the
end the following:
``(6) Any provision of law (other than in this title, title VIII,
or title XVI) which provides for adjustment of an amount based on a
change in benefit amounts resulting from a determination made under
this subsection shall be applied and administered without regard to the
amendments made by section 4 of the Social Security for Future
Generations Act of 2021.''.
(d) Publication of Consumer Price Index for Elderly Consumers.--The
Bureau of Labor Statistics of the Department of Labor shall prepare and
publish the index authorized by section 191 of the Older Americans
Amendments Act of 1987 (29 U.S.C. 2 note) for each calendar month,
beginning with July of the calendar year following the calendar year in
which this Act is enacted, and such index shall be known as the
``Consumer Price Index for Elderly Consumers''.
(e) Effective Date.--The amendments made by subsection (a) shall
apply to determinations made with respect to cost-of-living computation
quarters (as defined in section 215(i)(1)(B) of the Social Security Act
(42 U.S.C. 415(i)(1)(B))) ending on or after September 30 of the second
calendar year following the calendar year in which this Act is enacted.
SEC. 5. EXTENDED BENEFIT ELIGIBILITY FOR CHILDREN WHO ARE FULL-TIME
STUDENTS.
(a) In General.--Section 202(d) of the Social Security Act (42
U.S.C. 402(d)) is amended--
(1) in paragraphs (1)(B), (1)(E), (1)(F)(i), (1)(G)(ii),
(6)(A), (6)(D), (6)(E)(i), (7)(A), (7)(B), and (7)(D), by
striking ``full-time elementary or secondary school student''
each place it appears and inserting ``full-time student'';
(2) in paragraphs (1)(B), (1)(F)(ii), (1)(G)(iii), (6)(A),
(6)(D), (6)(E)(ii), and (7)(D), by striking ``19'' each place
it appears and inserting ``23'';
(3) in subparagraphs (A), (B), and (D) of paragraph (7), by
striking ``elementary or secondary school'' each place it
appears and inserting ``educational institution'';
(4) in paragraph (7)(A), by striking ``schools involved''
and inserting ``institutions involved'';
(5) in paragraph (7), by amending subparagraph (C) to read
as follows:
``(C) For purposes of this subsection, the term
`educational institution' means--
``(i) a school which provides elementary or
secondary education as determined under the law
of the State or other jurisdiction in which it
is located; and
``(ii) an institution described in section
102 of the Higher Education Act of 1965 (20
U.S.C. 1002).''; and
(6) in paragraph (7)(D), by striking ``diploma or
equivalent certificate from a secondary school (as defined in
subparagraph (C)(i))'' and inserting ``diploma, degree, or
equivalent certificate from an institution described in
subparagraph (C)(ii)''.
(b) Railroad Retirement Act.--
(1) In general.--Section 2(d) of the Railroad Retirement
Act of 1974 (45 U.S.C. 232(2)(d)) is amended--
(A) in clause (iii) of paragraph (1), by striking
``will be less than nineteen years of age and a full-
time elementary or secondary school student'' and
inserting ``will be less than 23 years of age and a
full-time student at an educational institution (as
defined in section 202(d)(7) of the Social Security
Act)''; and
(B) in paragraph (4)--
(i) by striking ``elementary or secondary
school'' each place it appears and inserting
``educational institution'';
(ii) by striking ``nineteen'' and inserting
``23''; and
(iii) by striking ``a diploma or equivalent
certificate from a secondary school (as defined
in section 202(d)(7)(c)(i) of the Social
Security Act)'' and inserting ``a diploma,
degree, or equivalent certificate from an
institution described in section
202(d)(7)(C)(ii) of the Social Security Act''.
(2) Conforming amendment.--Section 5(c)(7) of the Railroad
Retirement Act of 1974 (45 U.S.C. 235(c)(7)) is amended--
(A) by striking ``elementary or secondary school''
and inserting ``educational institution''; and
(B) by striking ``19'' and inserting ``23''.
(c) Effective Date.--The amendments made by this section shall
apply to child's insurance benefits that are payable for months
beginning after December 31, 2021.
SEC. 6. 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 2021, 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 2022, the poverty guideline for
2021; and
``(II) for any calendar year after 2022, the annual dollar
amount for 2021 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 2020.
``(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 2021' means the
annual poverty guideline for 2021 (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 2021 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. 7. ALTERNATE BENEFIT AMOUNT FOR WIDOW'S AND WIDOWER'S INSURANCE
BENEFITS.
(a) Widows.--Section 202(e) of the Social Security Act (42 U.S.C.
402(e)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B), by inserting ``and'' at
the end;
(B) in subparagraph (C)(iii), by striking ``and''
at the end;
(C) by striking subparagraph (D);
(D) by redesignating subparagraphs (E) and (F) as
subparagraphs (D) and (E), respectively; and
(E) in the flush matter following subparagraph
(E)(ii), as so redesignated, by striking ``becomes
entitled to an old-age insurance benefit'' and all that
follows through ``such deceased individual,'';
(2) by striking subparagraph (A) in paragraph (2) and
inserting the following:
``(2)(A) Except as provided in subsection (k)(5),
subsection (q), and subparagraph (D) of this paragraph, such
widow's insurance benefit for each month shall be equal to the
greater of--
``(i) the primary insurance amount (as determined
for purposes of this subsection after application of
subparagraphs (B) and (C)) of such deceased individual;
or
``(ii) subject to paragraph (9), in the case of a
fully insured widow or surviving divorced wife, 75
percent of the sum of any old-age or disability
insurance benefit for which the widow or the surviving
divorced wife is entitled for such month and the
primary insurance amount (as determined for purposes of
this subsection after application of subparagraphs (B)
and (C)) of such deceased individual.'';
(3) in paragraph (5)--
(A) in subparagraph (A), by striking ``paragraph
(1)(F)'' and inserting ``paragraph (1)(E)''; and
(B) in subparagraph (B), by striking ``paragraph
(1)(F)(i)'' and inserting ``paragraph (1)(E)(i)''; and
(4) by adding at the end the following new paragraph:
``(9) For purposes of paragraph (2)(A)(ii), the amount
determined under such paragraph shall not exceed the primary
insurance amount for such month of a hypothetical individual--
``(A) who became entitled to old-age insurance
benefits upon attaining early retirement age during the
month in which the deceased individual referred to in
paragraph (1) became entitled to old-age or disability
insurance benefits, or died (before becoming entitled
to such benefits); and
``(B) to whom wages and self-employment income were
credited in each of such hypothetical individual's
elapsed years (within the meaning of section
215(b)(2)(B)(iii)) in an amount equal to the national
average wage index (as described in section 209(k)(1))
for each such year.''.
(b) Widowers.--Section 202(f) of the Social Security Act (42 U.S.C.
402(f)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B), by inserting ``and'' at
the end;
(B) in subparagraph (C)(iii), by striking ``and''
at the end;
(C) by striking subparagraph (D);
(D) by redesignating subparagraphs (E) and (F) as
subparagraphs (D) and (E), respectively; and
(E) in the flush matter following subparagraph
(E)(ii), as so redesignated, by striking ``becomes
entitled to an old-age insurance benefit'' and all that
follows through ``such deceased individual,'';
(2) by striking subparagraph (A) in paragraph (2) and
inserting the following:
``(2)(A) Except as provided in subsection (k)(5),
subsection (q), and subparagraph (D) of this paragraph, such
widower's insurance benefit for each month shall be equal to
the greater of--
``(i) the primary insurance amount (as determined
for purposes of this subsection after application of
subparagraphs (B) and (C)) of such deceased individual;
or
``(ii) subject to paragraph (9), in the case of a
fully insured widower or surviving divorced husband, 75
percent of the sum of any old-age or disability
insurance benefit for which the widower or the
surviving divorced husband is entitled for such month
and the primary insurance amount (as determined for
purposes of this subsection after application of
subparagraphs (B) and (C)) of such deceased
individual.'';
(3) in paragraph (5)--
(A) in subparagraph (A), by striking ``paragraph
(1)(F)'' and inserting ``paragraph (1)(E)''; and
(B) in subparagraph (B), by striking ``paragraph
(1)(F)(i)'' and inserting ``paragraph (1)(E)(i)''; and
(4) by adding at the end the following new paragraphs:
``(9) For purposes of clauses (i) and (ii) of paragraph
(2)(A), in the case of a surviving divorced husband, the amount
determined under either such clause (and, for purposes of
clause (ii) of paragraph (2)(A), as determined after
application of paragraph (10)) shall be equal to the applicable
percentage (as determined under section 202(c)(2)(B)) of such
amount (as determined before application of this paragraph but
after application of subsection (k)(3)).
``(10) For purposes of paragraph (2)(A)(ii), the amount
determined under such paragraph shall not exceed the primary
insurance amount for such month of a hypothetical individual--
``(A) who became entitled to old-age insurance
benefits upon attaining early retirement age during the
month in which the deceased individual referred to in
paragraph (1) became entitled to old-age or disability
insurance benefits, or died (before becoming entitled
to such benefits); and
``(B) to whom wages and self-employment income were
credited in each of such hypothetical individual's
elapsed years (within the meaning of section
215(b)(2)(B)(iii)) in an amount equal to the national
average wage index (as described in section 209(k)(1))
for each such year.''.
(c) Reduction of Benefit for Individuals Entitled to Simultaneous
Benefits.--Section 202(k)(3) of the Social Security Act (42 U.S.C.
402(k)(3)) is amended--
(1) in subparagraph (A), by striking ``If an individual''
and inserting ``Except as provided in subparagraph (C), if an
individual''; and
(2) by adding at the end the following new subparagraph:
``(C) If an individual is entitled for any month to a widow's or
widower's insurance benefit and is also entitled to an old-age or
disability insurance benefit for such month that is greater than such
widow's or widower's insurance benefit, the reduction described in
subparagraph (A), with respect to such widow's or widower's insurance
benefit, shall be carried out by substituting an amount equal to the
primary insurance amount of the deceased individual referred to in
subsection (e)(1) or (f)(1) (as determined for purposes of subsection
(e)(2)(A)(i) or (f)(2)(A)(i)) for the amount equal to the old-age or
disability insurance benefit of the individual entitled to the widow's
or widower's insurance benefit.''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to widow's insurance benefits and widower's
insurance benefits that are payable for months beginning after December
31, 2021.
SEC. 8. 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>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Education and Labor, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Education and Labor, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Education and Labor, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Education and Labor, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Social Security.
Referred to the Subcommittee on Health.
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Referred to the Subcommittee on Railroads, Pipelines, and Hazardous Materials.