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Title I — Ensuring the long-term solvency of the disability insurance trust fund

S. 3003 · 113th Congress · Dec 11, 2014 · Lineage

I Ensuring the long-term solvency of the disability insurance trust fund

Sec. 101 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) With the exception of individuals who are classified by the Commissioner of Social Security as medical improvement not expected, 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 only be entitled to the old-age insurance benefit for such month, as reduced for such month pursuant to subsection (q)(1).”

(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 “early retirement age (as defined in subsection (l)(2)), or for individuals classified by the Commissioner of Social Security as medical improvement not expected, retirement age (as defined in subsection (l)(1))”.
(2)
Disability insurance benefit payments— Section 223(a)(1) of the Social Security (42 U.S.C. 423(a)(1)) is amended, in the flush matter at the end, by striking “retirement age (as defined in section 216(l))” and inserting “early retirement age (as defined in section 216(l)(2)), or for individuals classified by the Commissioner of Social Security as medical improvement not expected, retirement age (as defined in section 216(l)(1))”.
(c)
Effective date— The amendments made by this section shall take effect on January 1, 2020, and shall apply to any individual (with the exception of individuals classified by the Commissioner of Social Security as medical improvement not expected) who attains early retirement age (as defined in section 216(l)(2) of the Social Security Act) on or after such date.

Sec. 102 Revising disability classifications; requiring periodic continuing disability reviews or time limiting benefits for certain beneficiaries

(a)
In general—
(1)
Disability classifications— Not later than 1 year after the date of the enactment of this Act, the Commissioner of Social Security shall establish a system for classifying any individual who is determined to be entitled to disability insurance benefits under title II of the Social Security Act or to monthly benefits under section 202 of such Act by reason of being under a disability in the following manner:
(A)
An individual shall be classified as medical improvement expected if the impairment or combination of impairments causing the individual to be disabled is expected to medically improve to the point where the individual will no longer be disabled in 1 to 2 years.
(B)
An individual shall be classified as medical improvement likely if the impairment or combination of impairments causing the individual to be disabled is expected to medically improve to the point where the individual will no longer be disabled in 3 to 5 years.
(C)
An individual shall be classified as medical improvement possible if the impairment or combination of impairments causing the individual to be disabled is not expected to medically improve to the point where the individual will no longer be disabled in 5 years, but future improvement is possible.
(D)
An individual shall be classified as medical improvement not expected if the individual has an impairment or combination of impairments that is chronic or progressive with permanent, irreversible structural or functional loss, and for which there is no known effective therapy, treatment, or surgical intervention that could result in medical improvement to the point where the individual is no longer disabled.
(2)
Consideration of age— In classifying an individual under paragraph (1), the Commissioner of Social Security shall not classify an individual as medical improvement not expected solely by reason of such individual's age where a lesser classification is appropriate.
(b)
Continuing disability reviews—
(1)
In general— Section 221(i) of the Social Security Act (42 U.S.C. 421(i)) is amended—
(A)
by amending paragraph (1) to read as follows:

“(1)

“(A) In the case of any individual who is determined to be under a disability and is classified as medical improvement likely or medical improvement possible, the applicable State agency or the Commissioner of Social Security (as may be appropriate) shall, for purposes of continuing eligibility—

“(i) if the individual is classified as medical improvement likely, conduct a review to determine whether the individual remains under a disability during the 5th year following the first month after the individual's waiting period (as defined in section 223(c)(2)); and

“(ii) if the individual is classified as medical improvement possible, conduct a review to determine whether the individual remains under a disability during the 7th year following the first month after the individual's waiting period (as so defined).

“(B) In addition to the continuing eligibility reviews required under subparagraph (A) and notwithstanding how an individual is classified under the system established by the Commissioner of Social Security under section 102(a) of the Protecting Social Security Disability Act of 2014, if the Commissioner has reason to believe that an individual that has been determined to be under a disability is not under a disability, the Commissioner may review such individual's case at such time and in such manner as the Commissioner determines appropriate except that the Commissioner shall not initiate a review on the basis of income earned by an individual who is a participant in the Work Incentive Benefit System established under section 223(l).

“(C) Reviews of cases which are required or permitted under this paragraph shall be in addition to, and shall not be considered as a substitute for, any other reviews which are required or provided for under or in the administration of this title.”

(B)
by striking paragraphs (2) and (5);
(C)
by redesignating paragraphs (3) through (4) as paragraphs (2) through (3), respectively; and
(D)
in paragraph (2), as so redesignated—
(i)
by striking “Committee on Finance” and inserting “Committees on Finance and Homeland Security and Government Affairs”;
(ii)
by striking “Committee on Ways and Means” and inserting “Committees on Ways and Means and Oversight and Government Reform”;
(iii)
by striking “for reconsideration of such initial termination or”;
(iv)
by striking “or both,”; and
(v)
by striking “reconsideration or”.
(2)
Standard of review for continuing disability reviews—
(A)
In general— Section 223(f) of the Social Security Act (42 U.S.C. 423(f)) is amended—
(i)
in paragraph (4), by striking the period at the end and inserting “; or”;
(ii)
by inserting after paragraph (4) the following new paragraph:

“(5) in the case of a continuing disability review under section 221(i), evidence that would be sufficient to support a finding in an initial determination that the individual is not under a disability and is able to engage in substantial gainful activity.”

(iii)
by inserting “, except that, in the case of a continuing disability review under section 221(i), the Commissioner shall not consider the fact that an individual is engaged in substantial gainful work as part of the Work Incentive Benefit System established under subsection (l) as evidence that the individual is able to engage in substantial gainful activity” after “secured by the Commissioner of Social Security”.
(B)
Conforming amendment to definition of disability— Section 223(d)(2) of the Social Security Act (42 U.S.C. 423(d)(2) is amended—
(i)
in subparagraph (A), by striking “An individual” and inserting “Subject to subparagraph (D), an individual”
(ii)
by adding at the end the following new subparagraph:

“(D) In the case of a continuing disability review under section 221(i), an individual may be found to be under a disability even though the individual is engaged in substantial gainful work as part of the Work Incentive Benefit System established under subsection (l).”

(c)
Time-Limiting disability benefits for MIE individuals— Section 223 of the Social Security Act (42 U.S.C. 423) is amended—
(1)
in subsection (a)(1), as amended by section 101(b)(2), in the flush language after and below subparagraph (E), by striking “subsection (e)” and inserting “subsections (e) and (k)”; and
(2)
by adding at the end the following:

“(k) Time-limited disability benefits

“(1) In the case of an individual who files an application for disability insurance benefits under this section or for monthly benefits under section 202 by reason of being under a disability for any month that begins on or after the date that is 1 year after the date of the enactment of the Protecting Social Security Disability Act of 2014, is determined to be under a disability, and is classified by the Commissioner of Social Security as medical improvement expected, the termination month applicable to the individual shall be the 35th month following the first month after the individual's waiting period (as defined in subsection (c)(2)).

“(2)

“(A)

“(i) For purposes of this paragraph, the term timely reapplication means an application for disability insurance benefits under this section or for monthly benefits under section 202 by reason of being under a disability that is submitted—

“(I) by an individual who is a recipient of such benefits; and

“(II) during the period that is 14 months before the end of the termination month applicable (or most recently applicable) to the individual under paragraph (1) as of the date of such application and ending with the date that is 12 months before the end of such termination month.

“(ii) Notwithstanding clause (i), the Commissioner of Social Security may deem an application for disability insurance benefits under this section or for monthly benefits under section 202 by reason of being under a disability submitted by an individual who is a recipient of such benefits that is submitted after the period described in clause (i)(II) to be a timely reapplication if—

“(I) the individual can show good cause for why the application was not submitted during such period; and

“(II) the application is submitted not later than 6 months before the end of the termination month applicable (or most recently applicable) to the individual under paragraph (1) as of the date of such application.

“(B)

“(i) An individual who submits a timely reapplication and who is determined to be under a disability shall be deemed to have satisfied the waiting period applicable under subsection (c)(2).

“(ii)

“(I) If the Commissioner of Social Security fails to make an initial determination with respect to the timely reapplication of an individual who is a recipient of disability insurance benefits under this section or monthly benefits under section 202 by reason of being under a disability before the end of the termination month applicable to the individual as of the date of such reapplication, such individual shall continue to be entitled to such benefits until an initial determination with respect to such timely reapplication is made.

“(II) If the Commissioner of Social Security makes an initial adverse determination with respect to the timely reapplication of an individual who is a recipient of disability insurance benefits under this section or monthly benefits under section 202 by reason of being under a disability and such individual files a timely request for a hearing under section 221(d), such individual may elect to have the payment of such benefits (as well as any other benefits payable under this title or title XVIII on the basis of such individual's entitlement to such benefits) continue in the same manner and subject to the same conditions as an election made under subsection (g).

“(C) For purposes of reviewing a timely reapplication submitted by an individual who is a recipient of disability insurance benefits under this section or monthly benefits under section 202 by reason of being under a disability—

“(i) the fact that the individual was previously found to be under a disability shall have no evidentiary weight; and

“(ii) subsection (f) shall not apply.”

(d)
Regulations— The Commissioner of Social Security shall promulgate or revise, as appropriate, regulations relating to the determination, classification, and review of the disability status of individuals who apply for or receive disability insurance benefits under title II of the Social Security Act and related provisions of the Social Security Administration Programs Operations Manual (POMS) to carry out subsection (a) and the amendments made by subsection (b).

Sec. 103 Adjustment of age criteria for social security disability insurance medical-vocational guidelines; consideration of work which exists in the national economy

(a)
In general—
(1)
Age criteria— Notwithstanding Appendix 2 to Subpart P of Part 404 of title 20, Code of Federal Regulations, with respect to disability determinations or reviews made on or after the date that is 1 year after the date of the enactment of this Act, age shall not be considered as a vocational factor for any individual who has not attained the age that is 12 years less than the retirement age for such individual (as defined in section 216(l)(1) of the Social Security Act (42 U.S.C. 416(l)).
(2)
Work which exists in the national economy— With respect to disability determinations or reviews made on or after the date of the enactment of this Act, in determining whether an individual is able to engage in any work which exists in the national economy (as defined in section 223(d)(2)(A) of the Social Security Act (42 U.S.C. 423(d)(2)(A)), the Commissioner of Social Security shall consider the share and ages of individuals currently participating in the labor force and the number and types of jobs available in the current economy.
(b)
Updating data on work which exists in national economy— Not later than 2 years after the date of the enactment of this Act, and every year thereafter, the Commissioner of Social Security shall update the data used by the Commissioner to determine the jobs which exist in the national economy to ensure that such data reflects the full range of work which exists in the national economy, including newly-created jobs in emerging industries.

Sec. 104 Mandatory collection of negotiated civil monetary penalties

Section 1129(i)(2) of the Social Security Act (42 U.S.C. 1320a–8(i)(2)) is amended by inserting “and shall delegate authority for collecting civil money penalties and assessments negotiated under this section to the Inspector General” before the period.

Sec. 105 Required electronic filing of wage withholding returns

(a)
In general— Paragraph (2) of section 6011(e) of the Internal Revenue Code of 1986 is amended—
(1)
by redesignating subparagraphs (A) and (B) as subparagraphs (B) and (C), respectively,
(2)
by inserting before subparagraph (B), as so redesignated, the following new subparagraph:

“(A) shall—

“(i) require any person that is required to file a return containing information described in section 6051(a) to file such return on magnetic media, and

“(ii) provide for waiver of the requirements of clause (i) in the case of demonstrated hardship for—

“(I) for any period before January 1, 2020, a person having 25 or fewer employees, and

“(II) for any period after December 31, 2019, a person having 5 or fewer employees,”

(3)
by inserting “except as provided in subparagraph (A),” before “shall not require” in subparagraph (B), as so redesignated.
(b)
Conforming amendment— Paragraph (4) of section 6011(e) of the Internal Revenue Code of 1986 is amended by striking “paragraph (2)(A)” and inserting “paragraph (2)(B)”.
(c)
Effective date— The amendments made by this section shall apply to returns filed after December 31, 2016.