Sec. 3. Inclusion of earnings over $250,000 in Social Security benefit formula
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Section 215(a)(1)(A) of the Social Security Act ( 42 U.S.C. 415(a)(1)(A) ) is amended— in clause (ii), by striking and at the end; in clause (iii), by inserting and at the end; and by inserting after clause
(iii)the following: 2 percent of the individual’s excess average indexed monthly earnings (as defined in subsection (b)(5)(A)). . Section 215(b) of the Social Security Act ( 42 U.S.C. 415(b) ) is amended— by striking wages and self-employment income each place such terms appear and inserting basic wages and basic self-employment income , respectively; and by adding at the end the following: 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). For purposes of this subsection— 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; 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; the term excess wages means that portion of the wages of an individual paid in a year after 2019 in excess of the higher of $250,000 or the contribution and benefit base for the year; and the term excess self-employment income means that portion of the self-employment income of an individual credited to a year after 2019 in excess of the higher of $250,000 or such contribution and benefit base. . Section 215(e)(1) of the Social Security Act ( 42 U.S.C. 415(e)(1) ) is amended by inserting and before 2019 after after 1974 . 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 2019.
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Sec. 3
Inclusion of earnings over $250,000 in Social Security benefit formula
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