To amend title II of the Social Security Act to restrict the application of the windfall elimination provision to individuals whose combined monthly income from benefits under such title and other monthly periodic payments exceeds $2,500 and to provide for a graduated implementation of such provision on amounts above such $2,500 amount.

Amends title II (Old Age, Survivors and Disability Insurance)of the Social Security Act to: (1) restrict the application of the windfall elimination requirement to individuals whose combined monthly income from the individual's primary insurance amount under such title and the portion of the monthly periodic payment attributable to noncovered service performed after 1956 exceeds $2,500; and (2) provide for a graduated implementation of such requirement on amounts above such threshold by applying applicable percentages determined according to a specified formula.