summary
Introduced
04/12/2019
04/12/2019
In Committee
04/15/2019
04/15/2019
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
To amend title II of the Social Security Act and the Internal Revenue Code of 1986 to make improvements in the old-age, survivors, and disability insurance program, and to provide for Social Security benefit protection. This bill revises the methodology for calculating Old Age, Survivors, and Disability Insurance (OASDI) benefits and phases out the cap on compensation subject to Social Security taxation. The bill directs the Bureau of Labor Statistics to prepare and publish a Consumer Price Index for Elderly Consumers (CPI-E) to track cost-of-living changes for individuals age 62 or older. The Social Security Administration shall use the CPI-E to calculate the cost-of-living adjustment for OASDI benefits, where it currently uses the Consumer Price Index for Urban Wage Earners and Clerical Workers. The bill phases out and after 2025 eliminates the cap on compensation ($132,900 in 2019) subject to Social Security taxation. This change applies to both wage earners and the self-employed. The bill also changes the calculation for the primary insurance amount (the amount received by a beneficiary who elects to receive OASDI benefits at full retirement age) by including the additional earnings that are now taxed as a result of the cap elimination.
AI Summary
This bill, the Protecting and Preserving Social Security Act, aims to make improvements to the Old-Age, Survivors, and Disability Insurance (OASDI) program. It revises the methodology for calculating OASDI benefits by directing the Bureau of Labor Statistics to create a Consumer Price Index for Elderly Consumers (CPI-E) to track cost-of-living changes for individuals aged 62 or older. The Social Security Administration will use the CPI-E to calculate the cost-of-living adjustment for OASDI benefits, rather than the current Consumer Price Index for Urban Wage Earners and Clerical Workers. The bill also phases out and eliminates by 2025 the cap on compensation subject to Social Security taxation, applying to both wage earners and the self-employed. Additionally, the bill changes the calculation for the primary insurance amount, the monthly benefit received by a beneficiary at full retirement age, to include the additional earnings now subject to taxation.
Committee Categories
Budget and Finance, Health and Social Services, Labor and Employment
Sponsors (9)
Theodore Deutch (D)*,
David Cicilline (D),
Steve Cohen (D),
Alcee Hastings (D),
Marcy Kaptur (D),
Chellie Pingree (D),
Kilili Sablan (D),
John Sarbanes (D),
Peter Visclosky (D),
Last Action
Referred to the Subcommittee on Health. (on 04/15/2019)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| State Bill Page | https://www.congress.gov/bill/116th-congress/house-bill/2302/all-info | 04/13/2019 |
| BillText | https://www.congress.gov/116/bills/hr2302/BILLS-116hr2302ih.pdf | 04/25/2019 |
| Bill | https://www.congress.gov/116/bills/hr2302/BILLS-116hr2302ih.pdf.pdf | 04/25/2019 |
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