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Title III — Social Security

S. 11 · 113th Congress · Feb 26, 2013 · Lineage

III Social Security

Sec. 3101 Adjustments to bend points in determining primary insurance amount

Section 215(a)(1) of the Social Security Act (42 U.S.C. 415(a)(1)) is amended—
(1)
in subparagraph (A), in the matter preceding clause (i), by inserting “who initially becomes eligible for old-age or disability insurance benefits, or who dies (before becoming eligible for such benefits), in any calendar year after 1979 and before 2017” after “individual”;
(2)
in subparagraph (B)(ii), in the matter preceding subclause (I), by inserting “and before 2017” after “after 1979”;
(3)
in subparagraph (C)(i), by inserting “or (E)” after “(A)”; and
(4)
by adding at the end the following:

“(E)

“(i) The primary insurance amount of an individual who initially becomes eligible for old-age or disability insurance benefits, or who dies (before becoming eligible for such benefits), in any calendar year after 2016 shall (except as otherwise provided in this section) be equal to the sum of—

“(I) 90 percent of the individual's average indexed monthly earnings (determined under subsection (b)) to the extent that such earnings do not exceed the amount established for purposes of this subclause by clause (ii),

“(II) 30 percent of the individual's average indexed monthly earnings to the extent that such earnings exceed the amount established for purposes of subclause (I) but do not exceed the amount established for purposes of this subclause by clause (ii),

“(III) 10 percent of the individual's average indexed monthly earnings to the extent that such earnings exceed the amount established for purposes of subclause (II) but do not exceed the amount established for purposes of this subclause by clause (ii), and

“(IV) 5 percent of the individual's average indexed monthly earnings to the extent that such earnings exceed the amount established for purposes of subclause (III),

“(ii) For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming eligible for such benefits) in the calendar year 2017 or later, the amount established for purposes of subclauses (I), (II), and (III) of subparagraph (E)(i) shall be $180, $736, and $1,085, respectively, as if such amount was applicable with respect to 1979 and was adjusted for years after 1979 in the same manner as provided under subparagraph (B)(ii), without regard to the limitation that such adjustment only applies to individuals who initially become eligible for old-age benefits or disability insurance benefits, or who die (before becoming eligible for benefits) before 2017.

“(iii)

“(I) Notwithstanding clauses (i) and (ii), in the case of any individual who becomes eligible for old-age or disability insurance benefits, or who dies (before becoming eligible for such benefits) in any calendar year after 2016 and before 2051, the primary insurance amount of the individual shall be equal to the sum of—

“(aa) the primary insurance amount determined for the individual under subparagraphs (A) and (B) (without regard to the limitation that such subparagraphs apply only to individuals who initially become eligible for old-age benefits or disability insurance benefits, or who die (before becoming eligible for benefits) before 2017) multiplied by the applicable phase-in factor for the calendar year under subclause (II); and

“(bb) the primary insurance amount determined for the individual under this subparagraph (other than under this clause) multiplied by the applicable phase-in factor for the calendar year under subclause (II).

“(II) For purposes of—

“(aa) subclause (I)(aa), the applicable phase-in factor for calendar year 2017, is the quotient of 33 divided by 34, and for each year thereafter is the quotient of—

“(AA) the numerator applicable for the preceding year reduced by 1, divided by

“(BB) 34; and

“(bb) subclause (I)(bb), the applicable phase-in factor for calendar year 2017 is the quotient of 1 divided by 34, and for each year thereafter is the quotient of—

“(AA) the numerator applicable for the preceding year increased by 1, divided by

“(BB) 34.”

Sec. 3102 Adjustment to calculation of benefit computation years

(a)
In general— Clause (i) of section 215(b)(2)(A) of the Social Security Act (42 U.S.C. 415(b)(2)(A)) is amended to read as follows:

“(i) in the case of an individual who is entitled to old-age insurance benefits (except as provided in the second sentence of this subparagraph), or who has died—

“(I) before January 1, 2014, by 5 years;

“(II) after December 31, 2013, and before January 1, 2015, by 4 years;

“(III) after December 31, 2014, and before January 1, 2016, by 3 years; and

“(IV) after December 31, 2015, and before January 1, 2017, by 2 years; and”

(b)
Effective date— The amendments made by this section shall apply to benefits payable for months beginning after December 31, 2013.

Sec. 3103 Minimum Social Security benefit

(a)
In general— Section 215 of the Social Security Act (42 U.S.C. 415) is amended by adding at the end the following:

“(j) Minimum monthly insurance benefit

“(1) Notwithstanding the preceding provisions of this section—

“(A) subject to paragraph (3), the primary insurance amount of any individual who is credited with at least 10 years of coverage and who initially becomes eligible for old-age or disability insurance benefits or dies (before becoming eligible for such benefits) for a month beginning after December 31, 2016 (in this subsection referred to as a “qualified individual”), shall be equal to the greater of—

“(i) the primary insurance amount determined under this section (without regard to this subsection), or

“(ii) the minimum monthly insurance benefit determined under paragraph (2), and

“(B) any recomputation of the primary insurance amount of a qualified individual shall not result in a primary insurance amount less than the primary insurance amount as in effect immediately prior to such recomputation.

“(2) For purposes of this subsection, the term minimum monthly insurance benefit means 1/12 of the applicable percentage of the adjusted minimum benefit level (as defined in paragraph (5)).

“(3)

“(A) For purposes of this subsection, subject to subparagraph (B), the applicable percentage shall be 125 percent reduced by the number of percentage points determined under subparagraph (B)(ii) for each year of coverage of the qualified individual less than 30.

“(B)

“(i) In the case of an individual who initially becomes eligible for disability insurance benefits under section 223 before attaining age 62, or who dies before attaining age 62, in a month beginning after December 31, 2016, and who is credited with at least 5 years of coverage, the individual shall be treated as a qualified individual and the applicable percentage shall be 125 reduced by the number of percentage points determined under clause (ii) for each year of coverage of the qualified individual less than the number as determined under clause (iii).

“(ii) The number of percentage points under this clause shall be determined by—

“(I) dividing the number of the qualifying individual’s elapsed years (as defined in subsection (b)(2)(B)(iii)) by 40;

“(II) multiplying the result under subclause (I) by 20; and

“(III) dividing 125 by the result under subclause (II) and rounding to the nearest one hundredth of 1 percentage point.

“(iii) The number of years of coverage under this clause shall be determined by multiplying the ratio determined under clause (ii)(I) by 30 and rounding to the next lower whole number.

“(4) For purposes of this subsection, a year of coverage is a calendar year for which an individual is credited with 4 quarters of coverage.

“(5) For purposes of this subsection—

“(A) for individuals who initially become eligible for old-age or disability insurance benefits or die (before becoming eligible for such benefits) in 2017, the term adjusted minimum benefit level means the weighted average of the Federal poverty threshold applicable to a family of 1 for 2009 (as determined by the Bureau of the Census), increased for each year occurring after 2009 and before 2018, by the percentage increase (rounded to the nearest one-tenth of 1 percent) in the Chained Consumer Price Index for All Urban Consumers (as published by the Bureau of Labor Statistics of the Department of Labor) for each such year; and

“(B) for individuals who initially become eligible for old-age or disability insurance benefits or die (before becoming eligible for such benefits) in a year after 2017, the term adjusted minimum benefit level means the amount specified in subparagraph (A), multiplied by the quotient described in subsection (b)(3)(A)(ii), except that the reference to the computation base year for which the determination is made in such subsection shall be deemed instead to be a reference to 2009.

“(6) The provisions of this subsection shall not apply in the case of an individual whose primary insurance amount would otherwise be computed under subsection (a)(7).”

(b)
Conforming amendment— Section 202(a) of such Act (42 U.S.C. 402(a)) is amended in the last sentence by striking “section 215(a)” and inserting “section 215”.

Sec. 3104 Increase in benefits starting 20 years after initial eligibility

(a)
In general— Section 215 of the Social Security Act (42 U.S.C. 415), as amended by this Act, is amended by adding at the end the following new subsection:

“(k) Increased monthly insurance benefit after 20 years of initial eligibility

“(1) Notwithstanding the preceding provisions of this section, in the case of an individual who is a 20-year beneficiary, the primary insurance amount of the individual (as determined before the application of this subsection) shall be increased for months beginning with the first month for which the individual attains such status by the amount equal to the applicable percentage of the applicable average primary insurance amount.

“(2) For purposes of this subsection, the term 20-year beneficiary means an individual who has been eligible for old-age insurance benefits or disability insurance benefits under this title for at least 240 months.

“(3) For purposes of paragraph (1), the term applicable average primary insurance amount means, with respect to a 20-year beneficiary, the primary insurance amount determined by the Commissioner of Social Security that would apply to an individual of the same age as the age at which the 20-year beneficiary first attains such status, if the individual had earnings for each calendar year in which the individual would have attained ages 20 through the year prior to the age of eligibility, respectively, equal to the national average earnings for all such individuals for each such year.

“(4) For purposes of paragraph (1), the applicable percentage is—

“(A) for each month occurring during the first 12-month period for which an individual is a 20-year beneficiary, 1 percent;

“(B) for each month occurring during the second 12-month period for which an individual is such a beneficiary, 2 percent;

“(C) for each month occurring during the third 12-month period for which an individual is such a beneficiary, 3 percent;

“(D) for each month occurring during the fourth 12-month period for which an individual is such a beneficiary, 4 percent; and

“(E) for each month occurring thereafter, 5 percent.”

(b)
Effective date— The amendments made by this section shall apply to benefits payable for months beginning after December 31, 2013.

Sec. 3105 Adjustment to normal and early retirement ages

Section 216(l) of the Social Security Act (42 U.S.C. 416(l)) is amended—
(1)
in paragraph (1)—
(A)
in subparagraph (D), by striking “; and” and inserting a semicolon; and
(B)
by striking subparagraph (E) and inserting the following new subparagraphs:

“(E) with respect to an individual who attains early retirement age after December 31, 2021, and before January 1, 2023, 67 years of age;

“(F) with respect to an individual who, during the period after December 31, 2022, and before January 1, 2070—

“(i) for purposes of paragraph (2)(A)(ii), attains 62 years of age, such individual's early retirement age plus 60 months; or

“(ii) attains early retirement age pursuant to paragraph (2)(B), 67 years plus the number of months determined under the age increase factor for the calendar year in which such individual attains early retirement age; and

“(G) with respect to an individual who—

“(i) for purposes of paragraph (2)(A)(iii), attains 62 years of age after December 31, 2069, 69 years of age; or

“(ii) attains early retirement age pursuant to paragraph (2)(B) after December 31, 2069, 69 years of age.”

(2)
by amending paragraph (2) to read as follows:

“(2) The term early retirement age means—

“(A) in the case of an old-age, wife's, or husband's insurance benefit—

“(i) 62 years of age with respect to an individual who attains such age before January 1, 2023;

“(ii) with respect to an individual who attains 62 years of age after December 31, 2022, and before January 1, 2070, 62 years of age plus the number of months determined under the age increase factor for the calendar year in which such individual attains 62 years of age; and

“(iii) with respect to an individual who attains age 62 after December 31, 2069, 64 years of age; or

“(B) in the case of a widow's or widower's insurance benefit, 60 years of age.”

(3)
by adding at the end the following new paragraph:

“(4) The age increase factor shall be equal to 1/24 of the number of months (rounded down to a full month) in the period beginning with January 2023 and ending with December of the year in which—

“(A) for purposes of paragraph (1)(F)(ii), the individual attains 60 years of age; or

“(B) for purposes of paragraph (2)(A)(ii), the individual attains 62 years of age.”

Sec. 3106 Application of actuarial reduction for disabled beneficiaries who attain early retirement age

(a)
In general— Section 202(k)(4) of the Social Security Act (42 U.S.C. 402(k)(4)) is amended to read as follows:

“(4)

“(A) Subject to subparagraph (B), any individual who, under this section and section 223, is entitled for any month to both an old-age insurance benefit and a disability insurance benefit under this title shall be entitled to only the larger of such benefits for such month, except that, if such individual so elects, he shall instead be entitled to only the smaller of such benefits for such month.

“(B) An individual described in subparagraph (A) who has attained transitional retirement age (as determined under subparagraph (C)) shall only be entitled to the old-age insurance benefit for such month, as reduced for such month pursuant to subsection (q)(1).

“(C) For purposes of subparagraph (B), the term transitional retirement age means—

“(i) with respect to an individual who attains 62 years of age before January 1, 2014, 66 years of age;

“(ii) with respect to an individual who attains 62 years of age after December 31, 2013, and before January 1, 2025, 66 years of age reduced by the number of months determined under the transition factor (as determined under subparagraph (D)) for the calendar year in which such individual attains 62 years of age; and

“(iii) with respect to an individual who attains 62 years of age after December 31, 2024, 64 years of age.

“(D) For purposes of subparagraph (C)(ii), the transition factor shall be equal to two-twelfths of the number of months in the period beginning with January 2014 and ending with December of the year in which the individual attains 62 years of age.”

(b)
Conforming amendments—
(1)
Period of disability— Clause (i) of section 216(i)(2)(D) of the Social Security Act (42 U.S.C. 416(i)(2)(D)) is amended by striking “retirement age (as defined in subsection (l))” and inserting “transitional retirement age (as defined in section 216(k)(4))”.
(2)
Disability insurance benefit payments— Section 223(a)(1) of the Social Security (42 U.S.C. 423(a)(1)) is amended—
(A)
in subparagraph (B), by striking “retirement age (as defined in section 216(l))” and inserting “transitional retirement age (as defined in section 216(k)(4))”; and
(B)
in the flush matter at the end, by striking “retirement age (as defined in section 216(l))” and inserting “transitional retirement age (as defined in section 216(k)(4))”.
(c)
Effective date— The amendments made by this section shall apply to benefits payable for months beginning after December 31, 2013.

Sec. 3107 Option to collect up to one-half of old-age insurance benefit at age 62

(a)
In general— Section 202 of the Social Security Act (42 U.S.C. 402) is amended by adding at the end the following:

“(z) Option to collect up to one-Half of old-Age insurance benefit beginning at age 62

“(1) Not later than January 1, 2014, the Commissioner of Social Security shall establish an option, subject to such regulations as are prescribed by the Commissioner under paragraph (2), for a fully insured individual (as defined in section 214) to elect to receive a reduced monthly benefit after such individual attains 62 years of age, consisting of the following:

“(A) Subject to paragraph (3), for months beginning with the month in which the individual attains age 62, a monthly benefit equal to such percentage as is elected by the individual, but which shall not be greater than 50 percent, of the primary insurance amount determined for the individual at age 62.

“(B) For months beginning with the month in which the individual attains early retirement age, a monthly benefit equal to the sum of—

“(i) the monthly benefit payable to the individual under subparagraph (A); and

“(ii) the amount equal to the applicable percentage (as determined under subparagraph (C)) of primary insurance amount determined for the individual under section 215 for such month (determined without regard to any election under this subsection).

“(C) For purposes of subparagraph (B)(ii), the applicable percentage shall be equal to the difference between—

“(i) 100 percent; and

“(ii) the percentage elected by the individual under subparagraph (A).

“(2) An individual shall elect the option under this subsection in accordance with regulations prescribed by the Commissioner of Social Security.

“(3) The monthly benefit payable to an individual under paragraph (1)(A) shall be subject to reduction as provided in subsection (q).”

(b)
Conforming amendment— Section 202(a) of the Social Security Act (42 U.S.C. 402(a)) is amended in the last sentence, by striking “subsection (q) and subsection (w)” and inserting “subsections (q), (w), and (z)”.

Sec. 3108 Coverage of newly hired State and local employees

(a)
Amendments to the Social Security Act—
(1)
In general— Paragraph (7) of section 210(a) of the Social Security Act (42 U.S.C. 410(a)(7)) is amended to read as follows:

“(7) Excluded State or local government employment (as defined in subsection (s));”

(2)
Excluded state or local government employment—
(A)
In general— Section 210 of such Act (42 U.S.C. 410) is amended by adding at the end the following new subsection:

“(s) Excluded state or local government employment

“(1) In general—The term excluded State or local government employment means any service performed in the employ of a State, of any political subdivision thereof, or of any instrumentality of any one or more of the foregoing which is wholly owned thereby, if—

“(A)

“(i) such service would be excluded from the term employment for purposes of this title if the preceding provisions of this section as in effect in December 2020 had remained in effect, and (ii) the requirements of paragraph (2) are met with respect to such service, or

“(B) the requirements of paragraph (3) are met with respect to such service.

“(2) Exception for current employment which continues

“(A) In general—The requirements of this paragraph are met with respect to service for any employer if—

“(i) such service is performed by an individual—

“(I) who was performing substantial and regular service for remuneration for that employer before January 1, 2021,

“(II) who is a bona fide employee of that employer on December 31, 2020, and

“(III) whose employment relationship with that employer was not entered into for purposes of meeting the requirements of this subparagraph, and

“(ii) the employment relationship with that employer has not been terminated after December 31, 2020.

“(B) Treatment of multiple agencies and instrumentalities—For purposes of subparagraph (A), under regulations (consistent with regulations established under section 3121(t)(2)(B) of the Internal Revenue Code of 1986)—

“(i) all agencies and instrumentalities of a State (as defined in section 218(b)) or of the District of Columbia shall be treated as a single employer, and

“(ii) all agencies and instrumentalities of a political subdivision of a State (as so defined) shall be treated as a single employer and shall not be treated as described in clause (i).

“(3) Exception for certain services

“(A) In general—The requirements of this paragraph are met with respect to service if such service is performed—

“(i) by an individual who is employed by a State or political subdivision thereof to relieve such individual from unemployment,

“(ii) in a hospital, home, or other institution by a patient or inmate thereof as an employee of a State or political subdivision thereof or of the District of Columbia,

“(iii) by an individual, as an employee of a State or political subdivision thereof or of the District of Columbia, serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or other similar emergency,

“(iv) by any individual as an employee included under section 5351(2) of title 5, United States Code (relating to certain interns, student nurses, and other student employees of hospitals of the District of Columbia Government), other than as a medical or dental intern or a medical or dental resident in training,

“(v) by an election official or election worker if the remuneration paid in a calendar year for such service is less than $1,000 with respect to service performed during 2021, and the adjusted amount determined under subparagraph (C) for any subsequent year with respect to service performed during such subsequent year, except to the extent that service by such election official or election worker is included in employment under an agreement under section 218, or

“(vi) by an employee in a position compensated solely on a fee basis which is treated pursuant to section 211(c)(2)(E) as a trade or business for purposes of inclusion of such fees in net earnings from self-employment.

“(B) Definitions—As used in this paragraph, the terms State and political subdivision have the meanings given those terms in section 218(b).

“(C) Adjustments to dollar amount for election officials and election workers—For each year after 2021, the Commissioner of Social Security shall adjust the amount referred to in subparagraph (A)(v) at the same time and in the same manner as is provided under section 215(a)(1)(B)(ii) with respect to the amounts referred to in section 215(a)(1)(B)(i), except that—

“(i) for purposes of this subparagraph, 2018 shall be substituted for the calendar year referred to in section 215(a)(1)(B)(ii)(II), and

“(ii) such amount as so adjusted, if not a multiple of $100, shall be rounded to the next higher multiple of $100 where such amount is a multiple of $50 and to the nearest multiple of $100 in any other case.”

(B)
Conforming amendments—
(i)
Subsection (k) of section 210 of such Act (42 U.S.C. 410(k)) (relating to covered transportation service) is repealed.
(ii)
Section 210(p) of such Act (42 U.S.C. 410(p)) is amended—
(I)
in paragraph (2), by striking “service is performed” and all that follows and inserting “service is service described in subsection (s)(3)(A).”; and
(II)
in paragraph (3)(A), by inserting “under subsection (a)(7) as in effect in December 2020” after “section”.
(iii)
Section 218(c)(6) of such Act (42 U.S.C. 418(c)(6)) is amended—
(I)
by striking subparagraph (C);
(II)
by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively; and
(III)
by striking subparagraph (F) and inserting the following:

“(E) service which is included as employment under section 210(a).”

(b)
Amendments to the internal revenue code of 1986—
(1)
In general— Paragraph (7) of section 3121(b) of the Internal Revenue Code of 1986 (relating to employment) is amended to read as follows:

“(7) excluded State or local government employment (as defined in subsection (t));”

(2)
Excluded state or local government employment— Section 3121 of such Code is amended by inserting after subsection (s) the following new subsection:

“(t) Excluded state or local government employment

“(1) In general—For purposes of this chapter, the term excluded State or local government employment means any service performed in the employ of a State, of any political subdivision thereof, or of any instrumentality of any one or more of the foregoing which is wholly owned thereby, if—

“(A)

“(i) such service would be excluded from the term employment for purposes of this chapter if the provisions of subsection (b)(7) as in effect in December 2020 had remained in effect, and (ii) the requirements of paragraph (2) are met with respect to such service, or

“(B) the requirements of paragraph (3) are met with respect to such service.

“(2) Exception for current employment which continues

“(A) In general—The requirements of this paragraph are met with respect to service for any employer if—

“(i) such service is performed by an individual—

“(I) who was performing substantial and regular service for remuneration for that employer before January 1, 2021,

“(II) who is a bona fide employee of that employer on December 31, 2020, and

“(III) whose employment relationship with that employer was not entered into for purposes of meeting the requirements of this subparagraph, and

“(ii) the employment relationship with that employer has not been terminated after December 31, 2020.

“(B) Treatment of multiple agencies and instrumentalities—For purposes of subparagraph (A), under regulations—

“(i) all agencies and instrumentalities of a State (as defined in section 218(b) of the Social Security Act) or of the District of Columbia shall be treated as a single employer, and

“(ii) all agencies and instrumentalities of a political subdivision of a State (as so defined) shall be treated as a single employer and shall not be treated as described in clause (i).

“(3) Exception for certain services

“(A) In general—The requirements of this paragraph are met with respect to service if such service is performed—

“(i) by an individual who is employed by a State or political subdivision thereof to relieve such individual from unemployment,

“(ii) in a hospital, home, or other institution by a patient or inmate thereof as an employee of a State or political subdivision thereof or of the District of Columbia,

“(iii) by an individual, as an employee of a State or political subdivision thereof or of the District of Columbia, serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or other similar emergency,

“(iv) by any individual as an employee included under section 5351(2) of title 5, United States Code (relating to certain interns, student nurses, and other student employees of hospitals of the District of Columbia Government), other than as a medical or dental intern or a medical or dental resident in training,

“(v) by an election official or election worker if the remuneration paid in a calendar year for such service is less than $1,000 with respect to service performed during 2021, and the adjusted amount determined under section 210(s)(3)(C) of the Social Security Act for any subsequent year with respect to service performed during such subsequent year, except to the extent that service by such election official or election worker is included in employment under an agreement under section 218 of the Social Security Act, or

“(vi) by an employee in a position compensated solely on a fee basis which is treated pursuant to section 1402(c)(2)(E) as a trade or business for purposes of inclusion of such fees in net earnings from self-employment.

“(B) Definitions—As used in this paragraph, the terms State and political subdivision have the meanings given those terms in section 218(b) of the Social Security Act.”

(3)
Conforming amendments—
(A)
Subsection (j) of such section 3121 (relating to covered transportation service) is repealed.
(B)
Paragraph (2) of section 3121(u) of such Code (relating to application of hospital insurance tax to Federal, State, and local employment) is amended—
(i)
in subparagraph (B), by striking “service is performed” in clause (ii) and all that follows through the end of such subparagraph and inserting “service is service described in subsection (t)(3)(A).”; and
(ii)
in subparagraph (C)(i), by inserting “under subsection (b)(7) as in effect in December 2020” after “chapter”.
(c)
Effective date— Except as otherwise provided in this section, the amendments made by this section shall apply with respect to service performed after December 31, 2020.

Sec. 3109 Inclusion in annual Social Security account statement of estimated present value of taxes and benefits for Social Security and Medicare and projected deficit as a percent of lifetime earnings

(a)
In general— Section 1143(a)(2) of the Social Security Act (42 U.S.C. 1320b–13(a)(2)) is amended—
(1)
in subparagraph (E), by striking “benefits.” and inserting “benefits;”; and
(2)
by adding after subparagraph (E) the following new subparagraphs:

“(F) an estimate, as determined by the Commissioner, in consultation with the Secretary of Health and Human Services, on the basis of available records of the Commissioner and projections based on reasonable assumptions, of—

“(i) the present value of potential lifetime aggregate employer, employee, and self-employment contributions of the eligible individual for old-age, survivors, and disability insurance (under title II) and for hospital insurance (under part A of title XVIII);

“(ii) the present value of potential lifetime premiums payable (under parts B and D of title XVIII); and

“(iii) the present value of potential lifetime aggregate retirement, disability, survivor, and auxiliary benefits payable on the eligible individual’s account under title II and per capita benefits payable under the Medicare program of title XVIII; and

“(G) an estimate, as determined by the Commissioner, in consultation with the Secretary of Health and Human Services, on the basis of available records of the Commissioner and projections based on reasonable assumptions, of the ratio (expressed as a percentage) of—

“(i) the sum of the projected deficit-financed benefits under the old-age, survivors, and disability insurance program with respect to the eligible individual and the projected deficit-financed benefits under part A of the Medicare program under title XVIII with respect to the eligible individual, to

“(ii) projected lifetime earnings of the eligible individual.”

(b)
Definitions— Section 1143(a) of such Act (42 U.S.C. 1320b–13(a)) is amended—
(1)
by redesignating paragraph (3) as paragraph (4); and
(2)
by inserting after paragraph (2) the following new paragraph:

“(3) For purposes of paragraph (2)(G)—

“(A) The term projected deficit-financed benefits means—

“(i) with respect to an eligible individual in connection with the old-age, survivors, and disability insurance program, the product of—

“(I) the benefits described in subparagraph (F)(ii) of such individual under such program, and

“(II) the ratio of future annual deficits, excluding interest, of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund over the eligible individual’s lifetime to future annual outlays from such Trust Funds over such lifetime; and

“(ii) with respect to an eligible individual in connection with the Medicare program under title XVIII, the product of—

“(I) the benefits for hospital insurance (under part A of title XVIII) described in subparagraph (F)(ii) of such individual under such program, and

“(II) the ratio of future annual deficits of the Federal Hospital Insurance Trust Fund over the eligible individual’s lifetime to future annual outlays from such Trust Fund over such lifetime.

“(B) The term projected lifetime earnings of the eligible individual means the present value of the potential total wages paid to, and self-employment income derived by, the eligible individual over the eligible individual’s lifetime, as determined without regard to the contribution and benefit base under section 230.”

(c)
Effective date— The amendments made by this section shall apply with respect to annual statements issued after 2013.

Sec. 3110 Retirement information campaign

The Commissioner of Social Security shall establish a public information campaign to provide information and education regarding the implications on personal financial security of early and other retirement decisions and the need for greater retirement savings. The information campaign should be designed to encourage individuals to delay retirement so as to build enhanced levels of social security benefits and personal retirement savings. To the extent the Commissioner of Social Security determines appropriate, the information provided through the campaign should utilize behavioral economics approaches, such as structured choice, and other scientific approaches.