Public Servant Retirement Protection Act of 2011 - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act (SSA) to repeal 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 first performing non-covered service beginning one year after enactment of this Act.
Establishes a new formula for the treatment of non-covered earnings in determining Social Security benefits. Applies such formula to individuals subject to the current WEP if the benefit under the new formula would be higher.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 113 Introduced in Senate (IS)]
112th CONGRESS
1st Session
S. 113
To amend title II of the Social Security Act to repeal the windfall
elimination provision and protect the retirement of public servants.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 25 (legislative day, January 5), 2011
Mrs. Hutchison introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
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 of 2011''.
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U.S.C. 415(a)(7)) is repealed.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 (F), 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
this paragraph.
``(B) The primary insurance amount of an individual described in
subparagraph (A), as computed or recomputed under this paragraph, shall
be--
``(i) in the case of an individual who first performs
noncovered service after the 12th calendar month following the
date of the enactment of the Public Servant Retirement
Protection Act of 2011, the primary insurance amount determined
under subparagraph (C), or
``(ii) in the case of an individual who has performed
noncovered service during or before the 12th calendar month
following the date of the enactment of the Public Servant
Retirement Protection Act of 2011, the larger of--
``(I) the primary insurance amount determined under
subparagraph (C), or
``(II) the primary insurance amount determined
under subparagraph (E).
``(C) An individual's primary insurance amount determined under
this subparagraph shall be the product derived by multiplying--
``(i) the individual's primary insurance amount, as
determined under paragraph (1) of this subsection and
subparagraph (D) 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 (D)), and
``(II) the denominator of which is an amount equal
to the individual's average indexed monthly earnings
(as determined under subparagraph (D)),
rounded, if not a multiple of $0.10, to the next lower multiple of
$0.10.
``(D)(i) For purposes of determining an individual's primary
insurance amount pursuant to clauses (i) and (ii)(II) of subparagraph
(C), the individual's average indexed monthly earnings shall be
determined, subject to clause (ii), by treating all recorded noncovered
earnings (as defined in clause (iii)(I)) derived by the individual from
noncovered service performed in each year after 1950 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 (iii)(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) In any case in which some or all of the earnings derived
from noncovered service performed by an individual during any calendar
year after 1950 are not recorded noncovered earnings (as defined in
clause (iii)(I)), for purposes of determining the individual's average
indexed monthly earnings as described in clause (i), the amount of the
individual's adjusted total covered earnings (as defined in clause
(iii)(II)) for such calendar year shall be deemed to be, in lieu of the
amount determined without regard to this clause, an amount equal to the
quotient derived by dividing--
``(I) the sum of all adjusted total covered earnings
(determined without regard to this clause) of the individual
for all calendar years after 1950, plus all recorded noncovered
earnings which are paid to the individual during such calendar
years (after adjustment under subsection (b)(3) as if such
earnings were wages), by
``(II) the number of calendar years after 1950 for which
there are, with respect to the individual, any earnings
described in subclause (I).
``(iii) 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)).
``(iv) 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 (C).
``(E)(i) For purposes of determining the primary insurance amount
under this subparagraph pursuant to subparagraph (B)(ii)(II)--
``(I) 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), and
``(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.
An individual's primary insurance amount determined under this
subparagraph shall be the larger of the two amounts computed under this
clause (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.
``(F)(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.
``(G)(i) In any case in which the primary insurance amount would
otherwise be calculated under subparagraph (E)--
``(I) this paragraph shall not apply in the case of an
individual who has 30 years or more of coverage; and
``(II) 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 (E)(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 the
individual's years of The applicable
coverage (as so defined) is: percentage 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'.
``(H) 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.
``(I) 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) in the first sentence, by striking
``subsection (a)(7)(C)'' each place it appears
and inserting ``subsection (a)(7)(F)''; and
(ii) in the second sentence--
(I) by striking ``subparagraph
(E)'' and inserting ``subparagraph
(I)''; and
(II) by striking ``subparagraph
(D)'' and inserting ``subparagraph
(G)(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)(F)''.
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 Senate
Read twice and referred to the Committee on Finance.
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