SEC. 801. Short Title.
This title may be cited as the “Social Security Benefit Protection and Opportunity Enhancement Act of 2015”.
Title VIII — Social Security
TITLE VIII Social Security
Subtitle A Ensuring Correct Payments and Reducing Fraud
SEC. 811. Expansion of Cooperative Disability Investigations Units.
In General.— Not later than October 1, 2022, the Commissioner of Social Security shall take any necessary actions, subject to the availability of appropriations, to ensure that cooperative disability investigations units have been established, in areas where there is cooperation with local law enforcement agencies, that would cover each of the 50 States, the District of Columbia, Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa.
Report.— Not later than 90 days after the date of the enactment of this Act and annually thereafter until the earlier of 2022 or the date on which nationwide coverage is achieved, the Commissioner of Social Security shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report describing a plan to implement the nationwide coverage described in subsection (a) and outlining areas where the Social Security Administration did not receive the cooperation of local law enforcement agencies.
SEC. 812. Exclusion of Certain Medical Sources of Evidence.
In General.— Section 223(d)(5) of the Social Security Act (42 U.S.C. 423(d)(5)) is amended by adding at the end the following:
“(C)
(i) In making any determination with respect to whether an individual is under a disability or continues to be under a disability, the Commissioner of Social Security may not consider (except for good cause as determined by the Commissioner) any evidence furnished by—
“(I) any individual or entity who has been convicted of a felony under section 208 or under section 1632;
“(II) any individual or entity who has been excluded from participation in any Federal health care program under section 1128; or
“(III) any person with respect to whom a civil money penalty or assessment has been imposed under section 1129 for the submission of false evidence.
“(ii) To the extent and at such times as is necessary for the effective implementation of clause (i) of this subparagraph—
“(I) the Inspector General of the Social Security Administration shall transmit to the Commissioner information relating to persons described in subclause (I) or (III) of clause (i);
“(II) the Secretary of Health and Human Services shall transmit to the Commissioner information relating to persons described in subclause (II) of clause (i); and”
Regulations.— Not later than 1 year after the date of the enactment of this Act, the Commissioner of Social Security shall issue regulations to carry out the amendment made by subsection (a).
Effective Date.— The amendment made by subsection (a) shall apply with respect to determinations of disability made on or after the earlier of—
the effective date of the regulations issued by the Commissioner under subsection (b); or
one year after the date of the enactment of this Act.
SEC. 813. New and Stronger Penalties.
Conspiracy to Commit Social Security Fraud.—
in paragraph (7)(C), by striking “ or” at the end;
in paragraph (8), by adding “ or” at the end; and
by inserting after paragraph (8) the following:
“(9) conspires to commit any offense described in any of paragraphs (1) through (4),”
in paragraph (3), by striking “ or” at the end;
in paragraph (4), by striking the comma and adding “ ; or” at the end; and
by inserting after paragraph (4) the following:
“(5) conspires to commit any offense described in any of paragraphs (1) through (3),”
in paragraph (3), by striking “ or” at the end;
in paragraph (4), by adding “ or” at the end; and
by inserting after paragraph (4) the following:
“(5) conspires to commit any offense described in any of paragraphs (1) through (3),”
Increased Criminal Penalties for Certain Individuals Violating Positions of Trust.—
Amendment to title ii.— Section 208(a) of the Social Security Act (42 U.S.C. 408(a)), as amended by subsection (a), is further amended by striking the period at the end and inserting “ , except that in the case of a person who receives a fee or other income for services performed in connection with any determination with respect to benefits under this title (including a claimant representative, translator, or current or former employee of the Social Security Administration), or who is a physician or other health care provider who submits, or causes the submission of, medical or other evidence in connection with any such determination, such person shall be guilty of a felony and upon conviction thereof shall be fined under title 18, United States Code, or imprisoned for not more than ten years, or both.”.
Amendment to title viii.— Section 811(a) of such Act (42 U.S.C. 1011(a)), as amended by subsection (a), is further amended by striking the period at the end and inserting “ , except that in the case of a person who receives a fee or other income for services performed in connection with any determination with respect to benefits under this title (including a claimant representative, translator, or current or former employee of the Social Security Administration), or who is a physician or other health care provider who submits, or causes the submission of, medical or other evidence in connection with any such determination, such person shall be guilty of a felony and upon conviction thereof shall be fined under title 18, United States Code, or imprisoned for not more than ten years, or both.”.
Amendment to title xvi.— Section 1632(a) of such Act (42 U.S.C. 1383a(a)), as amended by subsection (a), is further amended by striking the period at the end and inserting “ , except that in the case of a person who receives a fee or other income for services performed in connection with any determination with respect to benefits under this title (including a claimant representative, translator, or current or former employee of the Social Security Administration), or who is a physician or other health care provider who submits, or causes the submission of, medical or other evidence in connection with any such determination, such person shall be guilty of a felony and upon conviction thereof shall be fined under title 18, United States Code, or imprisoned for not more than ten years, or both.”.
Increased Civil Monetary Penalties for Certain Individuals Violating Positions of Trust.— Section 1129(a)(1) of the Social Security Act (42 U.S.C. 1320a–8(a)(1)) is amended, in the matter following subparagraph (C), by inserting after “ withholding disclosure of such fact” the following: “ , except that in the case of such a person who receives a fee or other income for services performed in connection with any such determination (including a claimant representative, translator, or current or former employee of the Social Security Administration) or who is a physician or other health care provider who submits, or causes the submission of, medical or other evidence in connection with any such determination, the amount of such penalty shall be not more than $7,500”.
No Benefits Payable to Individuals for Whom a Civil Monetary Penalty Is Imposed for Fraudulently Concealing Work Activity.— Section 222(c)(5) of the Social Security Act (42 U.S.C. 422(c)(5)) is amended by inserting after “ conviction by a Federal court” the following: “ , or the imposition of a civil monetary penalty under section 1129,”.
SEC. 814. References to Social Security and Medicare in Electronic Communications.
In General.— Section 1140(a)(1) of the Social Security Act (42 U.S.C. 1320b–10(a)(1)) is amended by inserting “ (including any Internet or other electronic communication)” after “ or other communication”.
Each Communication Treated as Separate Violation.— Section 1140(b) of such Act (42 U.S.C. 1320b–10(b)) is amended by inserting after the second sentence the following: “ In the case of any items referred to in subsection (a)(1) consisting of Internet or other electronic communications, each dissemination, viewing, or accessing of such a communication which contains one or more words, letters, symbols, or emblems in violation of subsection (a) shall represent a separate violation”.
SEC. 815. Change to Cap Adjustment Authority.
Section 251(b)(2)(B) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(B)) is amended—
in clause (i)—
in the matter before subclause (I), by striking “ and for the cost associated with conducting redeterminations of eligibility under title XVI of the Social Security Act” and inserting “ , for the cost associated with conducting redeterminations of eligibility under title XVI of the Social Security Act, for the cost of co-operative disability investigation units, and for the cost associated with the prosecution of fraud in the programs and operations of the Social Security Administration by Special Assistant United States Attorneys”;
in subclause (VI), by striking “ $1,309,000,000” and inserting “ $1,546,000,000”;
in subclause (VII), by striking “ $1,309,000,000” and inserting “ $1,462,000,000”;
in subclause (VIII), by striking “ $1,309,000,000” and inserting “ $1,410,000,000”; and
in subclause (X), by striking “ $1,309,000,000” and inserting “ $1,302,000,000”;
in clause (ii)(I), by inserting “ , including work-related continuing disability reviews to determine whether earnings derived from services demonstrate an individual’s ability to engage in substantial gainful activity” before the semicolon; and
in clause (ii)(III), by striking “ and redeterminations” and inserting “ , redeterminations, co-operative disability investigation units, and fraud prosecutions”.
Subtitle B Promoting Opportunity for Disability Beneficiaries
SEC. 821. Temporary Reauthorization of Disability Insurance Demonstration Project Authority.
Termination Date.— Section 234(d)(2) of the Social Security Act (42 U.S.C. 434(d)(2)) is amended by striking “ December 18, 2005” and inserting “ December 31, 2021, and the authority to carry out such projects shall terminate on December 31, 2022”.
Authority to Waive Compliance With Benefits Requirements.— Section 234(c) of such Act is amended by striking “ December 17, 2005” and inserting “ December 30, 2021”.
SEC. 822. Modification of Demonstration Project Authority.
In General.— Section 234(a)(1) of the Social Security Act (42 U.S.C. 434(a)(1)) is amended in the matter preceding subparagraph (A) by inserting “ to promote attachment to the labor force and” after “ designed”.
Congressional Review Period.— Section 234(c) of the Social Security Act (42 U.S.C. 434(c)), as amended by section 821(b) of this Act, is further amended by inserting “ including the objectives of the experiment or demonstration project, the expected annual and total costs, and the dates on which the experiment or demonstration project is expected to start and finish,” after “ thereof,”
Additional Requirements.— Section 234 of the Social Security Act (42 U.S.C. 434), as amended by subsection (b), is further amended by adding at the end the following:
“(e) Additional Requirements.—In developing and carrying out any experiment or demonstration project under this section, the Commissioner may not require any individual to participate in such experiment or demonstration project and shall ensure—
“(1) that the voluntary participation of individuals in such experiment or demonstration project is obtained through informed written consent which satisfies the requirements for informed consent established by the Commissioner for use in such experiment or demonstration project in which human subjects are at risk;
“(2) that any individual’s voluntary agreement to participate in any such experiment or demonstration project may be revoked by such individual at any time; and
“(3) that such experiment or demonstration project is expected to yield statistically significant results.”
Annual Reporting Deadline.— Section 234(d)(1) of such Act is amended by striking “ June 9” and inserting “ September 30”.
SEC. 823. Promoting Opportunity Demonstration Project.
Section 234 of the Social Security Act (42 U.S.C. 434), as amended by section 822 of this Act, is further amended by adding at the end the following:
“(f) Promoting Opportunity Demonstration Project.—
“(1) In general.—The Commissioner shall carry out a demonstration project under this subsection as described in paragraph (2) during a 5-year period beginning not later than January 1, 2017.
“(2) Benefit offset.—Under the demonstration project described in this paragraph, with respect to any individual participating in the project who is otherwise entitled to a benefit under section 223(a)(1) for a month—
“(A) any such benefit otherwise payable to the individual for such month (other than a benefit payable for any month prior to the 1st month beginning after the date on which the individual’s entitlement to such benefit is determined) shall be reduced by $1 for each $2 by which the individual’s earnings derived from services paid during such month exceeds an amount equal to the individual’s impairment-related work expenses for such month (as determined under paragraph (3)), except that such benefit may not be reduced below $0;
“(B) no benefit shall be payable under section 202 on the basis of the wages and self-employment income of the individual for any month for which the benefit of such individual under section 223(a)(1) is reduced to $0 pursuant to subparagraph (A);
“(C) entitlement to any benefit described in subparagraph (A) or (B) shall not terminate due to earnings derived from services except following the first month for which such benefit has been reduced to $0 pursuant to subparagraph (A) (and the trial work period (as defined in section 222(c)) and extended period of eligibility shall not apply to any such individual for any such month); and
“(D) in any case in which such an individual is entitled to hospital insurance benefits under part A of title XVIII by reason of section 226(b) and such individual’s entitlement to a benefit described in subparagraph (A) or (B) or status as a qualified railroad retirement beneficiary is terminated pursuant to subparagraph (C), such individual shall be deemed to be entitled to such benefits or to occupy such status (notwithstanding the termination of such entitlement or status) for the period of consecutive months throughout all of which the physical or mental impairment, on which such entitlement or status was based, continues, and throughout all of which such individual would have been entitled to monthly insurance benefits under title II or as a qualified railroad retirement beneficiary had such termination of entitlement or status not occurred, but not in excess of 93 such months.
“(3) Impairment-related work expenses.—
“(A) In general.—For purposes of paragraph (2)(A) and except as provided in subparagraph (C), the amount of an individual’s impairment-related work expenses for a month is deemed to be the minimum threshold amount.
“(B) Minimum threshold amount.—In this paragraph, the term ‘minimum threshold amount’ means an amount, to be determined by the Commissioner, which shall not exceed the amount sufficient to demonstrate that an individual has rendered services in a month, as determined by the Commissioner under section 222(c)(4)(A). The Commissioner may test multiple minimum threshold amounts.
“(C) Exception for itemized impairment-related work expenses.—
“(i) In general.—Notwithstanding subparagraph (A), in any case in which the amount of such an individual’s itemized impairment-related work expenses (as defined in clause (ii)) for a month is greater than the minimum threshold amount, the amount of the individual’s impairment-related work expenses for the month shall be equal to the amount of the individual’s itemized impairment-related work expenses (as so defined) for the month.
“(ii) Definition.—In this subparagraph, the term ‘itemized impairment-related work expenses’ means the amount excluded under section 223(d)(4)(A) from an individual’s earnings for a month in determining whether an individual is able to engage in substantial gainful activity by reason of such earnings in such month, except that such amount does not include the cost to the individual of any item or service for which the individual does not provide to the Commissioner a satisfactory itemized accounting.
“(D) Limitation.—Notwithstanding the other provisions of this paragraph, for purposes of paragraph (2)(A), the amount of an individual’s impairment-related work expenses for a month shall not exceed the amount of earnings derived from services, prescribed by the Commissioner under regulations issued pursuant to section 223(d)(4)(A), sufficient to demonstrate an individual’s ability to engage in substantial gainful activity.”
SEC. 824. Use of Electronic Payroll Data to Improve Program Administration.
In General.— Title XI of the Social Security Act (42 U.S.C. 1301 et seq.) is amended by inserting after section 1183 the following:
“Sec. 1184. “information exchange with payroll data providers
(a) In General.—The Commissioner of Social Security may enter into an information exchange with a payroll data provider for purposes of—
“(1) efficiently administering—
“(A) monthly insurance benefits under subsections (d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii), and (f)(1)(B)(ii) of section 202 and subsection (a)(1) of section 223; and
“(B) supplemental security income benefits under title XVI; and
“(2) preventing improper payments of such benefits without the need for verification by independent or collateral sources.
“(b) Notification Requirements.—Before entering into an information exchange pursuant to subsection (a), the Commissioner shall publish in the Federal Register a notice describing the information exchange and the extent to which the information received through such exchange is—
“(1) relevant and necessary to—
“(A) accurately determine entitlement to, and the amount of, benefits described under subparagraph (A) of subsection (a)(1);
“(B) accurately determine eligibility for, and the amount of, benefits described in subparagraph (B) of such subsection; and
“(C) prevent improper payment of such benefits; and
“(2) sufficiently accurate, up-to-date, and complete.
“(c) Definitions.—For purposes of this section:
“(1) Payroll data provider.—The term ‘payroll data provider’ means payroll providers, wage verification companies, and other commercial or non-commercial entities that collect and maintain data regarding employment and wages, without regard to whether the entity provides such data for a fee or without cost.
“(2) Information exchange.—The term ‘information exchange’ means the automated comparison of a system of records maintained by the Commissioner of Social Security with records maintained by a payroll data provider.”
Authorization to Access Information Held by Payroll Data Providers.—
Amendment to title ii.— Section 225 of the Social Security Act (42 U.S.C. 425) is amended by adding at the end the following:
“(c) Access to Information Held by Payroll Data Providers.—
(1) The Commissioner of Social Security may require each individual who applies for or is entitled to monthly insurance benefits under subsections (d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii), and (f)(1)(B)(ii) of section 202 and subsection (a)(1) of section 223 to provide authorization by the individual for the Commissioner to obtain from any payroll data provider (as defined in section 1184(c)(1)) any record held by the payroll data provider with respect to the individual whenever the Commissioner determines the record is needed in connection with a determination of initial or ongoing entitlement to such benefits.
“(2) An authorization provided by an individual under this subsection shall remain effective until the earliest of—
“(A) the rendering of a final adverse decision on the individual’s application or entitlement to benefits under this title;
“(B) the termination of the individual’s entitlement to benefits under this title; or
“(C) the express revocation by the individual of the authorization, in a written notification to the Commissioner.
“(3) The Commissioner of Social Security is not required to furnish any authorization obtained pursuant to this subsection to the payroll data provider.
“(4) The Commissioner shall inform any person who provides authorization pursuant to this clause of the duration and scope of the authorization.
“(5) If an individual who applies for or is entitled to benefits under this title refuses to provide, or revokes, any authorization under this subsection, subsection (d) shall not apply to such individual beginning with the first day of the first month in which he or she refuses or revokes such authorization.”
Title xvi.— Section 1631(e)(1)(B) of the Social Security Act (42 U.S.C. 1383(e)(1)(B)) is amended by adding at the end the following:
“(iii)
(I) The Commissioner of Social Security may require each applicant for, or recipient of, benefits under this title to provide authorization by the applicant, recipient or legal guardian (or by any other person whose income or resources are material to the determination of the eligibility of the applicant or recipient for such benefits) for the Commissioner to obtain from any payroll data provider (as defined in section 1184(c)(1)) any record held by the payroll data provider with respect to the applicant or recipient (or any such other person) whenever the Commissioner determines the record is needed in connection with a determination of initial or ongoing eligibility or the amount of such benefits.
“(II) An authorization provided by an applicant, recipient or legal guardian (or any other person whose income or resources are material to the determination of the eligibility of the applicant or recipient) under this clause shall remain effective until the earliest of—
“(aa) the rendering of a final adverse decision on the applicant’s application for eligibility for benefits under this title;
“(bb) the cessation of the recipient’s eligibility for benefits under this title;
“(cc) the express revocation by the applicant, or recipient (or such other person referred to in subclause (I)) of the authorization, in a written notification to the Commissioner; or
“(dd) the termination of the basis upon which the Commissioner considers another person’s income and resources available to the applicant or recipient.
“(III) The Commissioner of Social Security is not required to furnish any authorization obtained pursuant to this clause to the payroll data provider.
“(IV) The Commissioner shall inform any person who provides authorization pursuant to this clause of the duration and scope of the authorization.
“(V) If an applicant for, or recipient of, benefits under this title (or any such other person referred to in subclause (I)) refuses to provide, or revokes, any authorization required by subclause (I), paragraph (2)(B) and paragraph (10) shall not apply to such applicant or recipient beginning with the first day of the first month in which he or she refuses or revokes such authorization.”
Reporting Responsibilities for Beneficiaries Subject to Information Exchange With Payroll Data Provider.—
Amendment to title ii.— Section 225 of the Social Security (42 U.S.C. 425), as amended by subsection (b)(1), is further amended by adding at the end the following:
“(d) An individual who has authorized the Commissioner of Social Security to obtain records from a payroll data provider under subsection (c) shall not be subject to a penalty under section 1129A for any omission or error with respect to such individual’s wages as reported by the payroll data provider.”
in paragraph (2)—
by striking “ In the case of the failure” and inserting “ (A) In the case of the failure”;
by redesignating subparagraphs (A) through (C) as clauses (i) through (iii), respectively; and
by adding at the end the following:
“(B) For purposes of subparagraph (A), the Commissioner of Social Security shall find that good cause exists for the failure of, or delay by, an individual in submitting a report of an event or change in circumstances relevant to eligibility for or amount of benefits under this title in any case where—
“(i) the individual (or another person referred to in paragraph (1)(B)(iii)(I)) has provided authorization to the Commissioner to access payroll data records related to the individual; and
“(ii) the event or change in circumstance is a change in the individual’s employer.”
; and
by adding at the end the following:
“(10) An individual who has authorized the Commissioner of Social Security to obtain records from a payroll data provider under paragraph (1)(B)(iii) (or on whose behalf another person described in subclause (I) of such paragraph has provided such authorization) shall not be subject to a penalty under section 1129A for any omission or error with respect to such individual’s wages as reported by the payroll data provider.”
Regulations.— Not later than 1 year after the date of the enactment of this Act, the Commissioner of Social Security shall prescribe by regulation procedures for implementing the Commissioner’s access to and use of information held by payroll providers, including—
guidelines for establishing and maintaining information exchanges with payroll providers, pursuant to section 1184 of the Social Security Act;
beneficiary authorizations;
reduced wage reporting responsibilities for individuals who authorize the Commissioner to access information held by payroll data providers through an information exchange; and
procedures for notifying individuals in writing when they become subject to such reduced wage reporting requirements and when such reduced wage reporting requirements no longer apply to them.
Effective Date.— The amendments made by this section shall take effect on the date that is 1 year after the date of the enactment of this Act.
SEC. 825. Treatment of Earnings Derived from Services.
In General.— Section 223(d)(4) of the Social Security Act (42 U.S.C. 423(d)(4)) is amended by adding at the end the following:
“(C)
(i) Subject to clause (ii), in determining when earnings derived from services demonstrate an individual’s ability to engage in substantial gainful activity, such earnings shall be presumed to have been earned—
“(I) in making a determination of initial entitlement on the basis of disability, in the month in which the services were performed from which such earnings were derived; and
“(II) in any other case, in the month in which such earnings were paid.
“(ii) A presumption made under clause (i) shall not apply to a determination described in such clause if—
“(I) the Commissioner can reasonably establish, based on evidence readily available at the time of such determination, that the earnings were earned in a different month than when paid; or
“(II) in any case in which there is a determination that no benefit is payable due to earnings, after the individual is notified of the presumption made and provided with an opportunity to submit additional information along with an explanation of what additional information is needed, the individual shows to the satisfaction of the Commissioner that such earnings were earned in another month.”
Effective Date.— The amendment made by subsection (a) shall take effect upon the date of the enactment of this Act, or as soon as practicable thereafter.
SEC. 826. Electronic Reporting of Earnings.
In General.— Not later than September 30, 2017, the Commissioner of Social Security shall establish and implement a system that—
allows an individual entitled to a monthly insurance benefit based on disability under title II of the Social Security Act (or a representative of the individual) to report to the Commissioner the individual’s earnings derived from services through electronic means, including by telephone and Internet; and
automatically issues a receipt to the individual (or representative) after receiving each such report.
Supplemental Security Income Reporting System as Model.— The Commissioner shall model the system established under subsection (a) on the electronic wage reporting systems for recipients of supplemental security income under title XVI of such Act.
Subtitle C Protecting Social Security Benefits
SEC. 831. Closure of Unintended Loopholes.
Presumed Filing of Application by Individuals Eligible for Old-Age Insurance Benefits and for Wife’s or Husband’s Insurance Benefits.—
In general.— Section 202(r) of the Social Security Act (42 U.S.C. 402(r)) is amended by striking paragraphs (1) and (2) and inserting the following:
“(1) If an individual is eligible for a wife’s or husband’s insurance benefit (except in the case of eligibility pursuant to clause (ii) of subsection (b)(1)(B) or subsection (c)(1)(B), as appropriate), in any month for which the individual is entitled to an old-age insurance benefit, such individual shall be deemed to have filed an application for wife’s or husband’s insurance benefits for such month.
“(2) If an individual is eligible (but for section 202(k)(4)) for an old-age insurance benefit in any month for which the individual is entitled to a wife’s or husband’s insurance benefit (except in the case of entitlement pursuant to clause (ii) of subsection (b)(1)(B) or subsection (c)(1)(B), as appropriate), such individual shall be deemed to have filed an application for old-age insurance benefits—
“(A) for such month, or
“(B) if such individual is also entitled to a disability insurance benefit for such month, in the first subsequent month for which such individual is not entitled to a disability insurance benefit.”
in subsection (b)(1), by striking subparagraph (B) and inserting the following:
“(B)
(i) has attained age 62, or
“(ii) in the case of a wife, has in her care (individually or jointly with such individual) at the time of filing such application a child entitled to a child’s insurance benefit on the basis of the wages and self-employment income of such individual,”
; and
in subsection (c)(1), by striking subparagraph (B) and inserting the following:
“(B)
(i) has attained age 62, or
“(ii) in the case of a husband, has in his care (individually or jointly with such individual) at the time of filing such application a child entitled to a child’s insurance benefit on the basis of the wages and self-employment income of such individual,”
Effective date.— The amendments made by this subsection shall apply with respect to individuals who attain age 62 in any calendar year after 2015.
Voluntary Suspension of Benefits.—
In general.— Section 202 of the Social Security Act (42 U.S.C. 402) is amended by adding at the end the following:
“(z) Voluntary Suspension.—
(1)
(A) Except as otherwise provided in this subsection, any individual who has attained retirement age (as defined in section 216(l)) and is entitled to old-age insurance benefits may request that payment of such benefits be suspended—
“(i) beginning with the month following the month in which such request is received by the Commissioner, and
“(ii) ending with the earlier of the month following the month in which a request by the individual for a resumption of such benefits is so received or the month following the month in which the individual attains the age of 70.
“(2) An individual may not suspend such benefits under this subsection, and any suspension of such benefits under this subsection shall end, effective with respect to any month in which the individual becomes subject to—
“(A) mandatory suspension of such benefits under section 202(x);
“(B) termination of such benefits under section 202(n);
“(C) a penalty under section 1129A imposing nonpayment of such benefits; or
“(D) any other withholding, in whole or in part, of such benefits under any other provision of law that authorizes recovery of a debt by withholding such benefits.
“(3) In the case of an individual who requests that such benefits be suspended under this subsection, for any month during the period in which the suspension is in effect—
“(A) no retroactive benefits (as defined in subsection (j)(4)(B)(iii)) shall be payable to such individual;
“(B) no monthly benefit shall be payable to any other individual on the basis of such individual’s wages and self-employment income; and
“(C) no monthly benefit shall be payable to such individual on the basis of another individual’s wages and self-employment income.”
Conforming amendment.— Section 202(w)(2)(B)(ii) of the Social Security Act (42 U.S.C. 402(w)(2)(B)(ii)) is amended by inserting “ under section 202(z)” after “ request”.
Effective date.— The amendments made by this subsection shall apply with respect to requests for benefit suspension submitted beginning at least 180 days after the date of the enactment of this Act.
SEC. 832. Requirement for Medical Review.
In General.— Section 221(h) of the Social Security Act (42 U.S.C. 421(h)) is amended to read as follows:
“(h) An initial determination under subsection (a), (c), (g), or (i) shall not be made until the Commissioner of Social Security has made every reasonable effort to ensure—
“(1) in any case where there is evidence which indicates the existence of a mental impairment, that a qualified psychiatrist or psychologist has completed the medical portion of the case review and any applicable residual functional capacity assessment; and
“(2) in any case where there is evidence which indicates the existence of a physical impairment, that a qualified physician has completed the medical portion of the case review and any applicable residual functional capacity assessment.”
Effective Date.— The amendment made by subsection (a) shall apply with respect to determinations of disability made on or after the date that is 1 year after the date of the enactment of this Act.
SEC. 833. Reallocation of Payroll Tax Revenue.
Wages.— Section 201(b)(1) of the Social Security Act (42 U.S.C. 401(b)(1)) is amended by striking “ and (R) 1.80 per centum of the wages (as so defined) paid after December 31, 1999, and so reported” and inserting “ (R) 1.80 per centum of the wages (as so defined) paid after December 31, 1999, and before January 1, 2016, and so reported, (S) 2.37 per centum of the wages (as so defined) paid after December 31, 2015, and before January 1, 2019, and so reported, and (T) 1.80 per centum of the wages (as so defined) paid after December 31, 2018, and so reported,”.
Self-employment income.— Section 201(b)(2) of such Act (42 U.S.C. 401(b)(2)) is amended by striking “ and (R) 1.80 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1999” and inserting “ (R) 1.80 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1999, and before January 1, 2016, (S) 2.37 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 2015, and before January 1, 2019, and (T) 1.80 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 2018”.
Effective date.— The amendments made by this section shall apply with respect to wages paid after December 31, 2015, and self-employment income for taxable years beginning after such date.
SEC. 834. Access to Financial Information for Waivers and Adjustments of Recovery.
Access to Financial Information for Old-age, Survivors, and Disability Insurance Waivers.— Section 204(b) of the Social Security Act (42 U.S.C. 404(b)) is amended to read as follows:
“(b)
(1) In any case in which more than the correct amount of payment has been made, there shall be no adjustment of payments to, or recovery by the United States from, any person who is without fault if such adjustment or recovery would defeat the purpose of this title or would be against equity and good conscience.
“(2) In making for purposes of this subsection any determination of whether any individual is without fault, the Commissioner of Social Security shall specifically take into account any physical, mental, educational, or linguistic limitation such individual may have (including any lack of facility with the English language).
“(3)
(A) In making for purposes of this subsection any determination of whether such adjustment or recovery would defeat the purpose of this title, the Commissioner of Social Security shall require an individual to provide authorization for the Commissioner to obtain (subject to the cost reimbursement requirements of section 1115(a) of the Right to Financial Privacy Act) from any financial institution (within the meaning of section 1101(1) of such Act) any financial record (within the meaning of section 1101(2) of such Act) held by the institution with respect to such individual whenever the Commissioner determines the record is needed in connection with a determination with respect to such adjustment or recovery.
“(B) Notwithstanding section 1104(a)(1) of the Right to Financial Privacy Act, an authorization provided by an individual pursuant this paragraph shall remain effective until the earlier of—
“(i) the rendering of a final decision on whether adjustment or recovery would defeat the purpose of this title; or
“(ii) the express revocation by the individual of the authorization, in a written notification to the Commissioner.
“(C)
(i) An authorization obtained by the Commissioner of Social Security pursuant this paragraph shall be considered to meet the requirements of the Right to Financial Privacy Act for purposes of section 1103(a) of such Act, and need not be furnished to the financial institution, notwithstanding section 1104(a) of such Act.
“(ii) The certification requirements of section 1103(b) of the Right to Financial Privacy Act shall not apply to requests by the Commissioner of Social Security pursuant to an authorization provided under this paragraph.
“(iii) A request by the Commissioner pursuant to an authorization provided under this paragraph is deemed to meet the requirements of section 1104(a)(3) of the Right to Financial Privacy Act and the flush language of section 1102 of such Act.
“(D) The Commissioner shall inform any person who provides authorization pursuant to this paragraph of the duration and scope of the authorization.
“(E) If an individual refuses to provide, or revokes, any authorization for the Commissioner of Social Security to obtain from any financial institution any financial record, the Commissioner may, on that basis, determine that adjustment or recovery would not defeat the purpose of this title.”
Access to Financial Information for Supplemental Security Income Waivers.—
In general.— Section 1631(b)(1)(B) of the Social Security Act (42 U.S.C. 1383(b)(1)(B)) is amended by adding at the end the following: “ In making for purposes of this subparagraph a determination of whether an adjustment or recovery would defeat the purpose of this title, the Commissioner of Social Security shall require an individual to provide authorization for the Commissioner to obtain (subject to the cost reimbursement requirements of section 1115(a) of the Right to Financial Privacy Act) from any financial institution (within the meaning of section 1101(1) of such Act) any financial record (within the meaning of section 1101(2) of such Act) held by the institution with respect to such individual whenever the Commissioner determines that the record is needed in connection with a determination with respect to such adjustment or recovery, under the terms and conditions established under subsection (e)(1)(B).”.
Conforming amendment.— Section 1631(e)(1)(B)(ii)(V) of such Act (42 U.S.C. 1383(e)(1)(B)(ii)(V)) is amended by inserting “ , determine that adjustment or recovery on account of an overpayment with respect to the applicant or recipient would not defeat the purpose of this title, or both” before the period at the end.
Effective Date.— The amendments made by this section shall apply with respect to determinations made on or after the date that is 3 months after the date of the enactment of this section.
Subtitle D Relieving Administrative Burdens and Miscellaneous Provisions
SEC. 841. Interagency Coordination to Improve Program Administration.
In General.— Title XI of the Social Security Act (42 U.S.C. 1301 et seq.) is amended by inserting after section 1127 the following:
“Sec. 1127 “interagency coordination to improve program administration
A.
(a) Coordination Agreement.—Notwithstanding any other provision of law, including section 207 of this Act, the Commissioner of Social Security (referred to in this section as ‘the Commissioner’) and the Director of the Office of Personnel Management (referred to in this section as ‘the Director’) shall enter into an agreement under which a system is established to carry out the following procedure:
“(1) The Director shall notify the Commissioner when any individual is determined to be entitled to a monthly disability annuity payment pursuant to subchapter V of chapter 84 of subpart G of part III of title 5, United States Code, and shall certify that such individual has provided the authorization described in subsection (f).
“(2) If the Commissioner determines that an individual described in paragraph (1) is also entitled to past-due benefits under section 223, the Commissioner shall notify the Director of such fact.
“(3) Not later than 30 days after receiving a notification described in paragraph (2) with respect to an individual, the Director shall provide the Commissioner with the total amount of any disability annuity overpayments made to such individual, as well as any other information (in such form and manner as the Commissioner shall require) that the Commissioner determines is necessary to carry out this section.
“(4) If the Director provides the Commissioner with the information described in paragraph (3) in a timely manner, the Commissioner may withhold past-due benefits under section 223 to which such individual is entitled and may pay the amount described in paragraph (3) to the Office of Personnel Management for any disability annuity overpayments made to such individual.
“(5) The Director shall credit any amount received under paragraph (4) with respect to an individual toward any disability annuity overpayment owed by such individual.
“(b) Limitations.—
“(1) Priority of Other Reductions.—Benefits shall only be withheld under this section after any other reduction applicable under this Act, including sections 206(a)(4), 224, and 1127(a).
“(2) Timely Notification Required.—The Commissioner may not withhold benefits under this section if the Director does not provide the notice described in subsection (a)(3) within the time period described in such subsection.
“(c) Delayed Payment of Past-Due Benefits.—If the Commissioner is required to make a notification described in subsection (a)(2) with respect to an individual, the Commissioner shall not make any payment of past-due benefits under section 223 to such individual until after the period described in subsection (a)(3).
“(d) Review.—Notwithstanding section 205 or any other provision of law, any determination regarding the withholding of past-due benefits under this section shall only be subject to adjudication and review by the Director under section 8461 of title 5, United States Code.
“(e) Disability Annuity Overpayment Defined.—For purposes of this section, the term ‘disability annuity overpayment’ means the amount of the reduction under section 8452(a)(2) of title 5, United States Code, applicable to a monthly annuity payment made to an individual pursuant to subchapter V of chapter 84 of subpart G of part III of such title due to the individual’s concurrent entitlement to a disability insurance benefit under section 223 during such month.
“(f) Authorization to Withhold Benefits.—The authorization described in this subsection, with respect to an individual, is written authorization provided by the individual to the Director which authorizes the Commissioner to withhold past-due benefits under section 223 to which such individual is entitled in order to pay the amount withheld to the Office of Personnel Management for any disability overpayments made to such individual.
“(g) Expenses.—The Director shall pay to the Social Security Administration an amount equal to the amount estimated by the Commissioner as the total cost incurred by the Social Security Administration in carrying out this section for each calendar quarter.”
Effective Date.— The amendment made by this section shall apply to past-due disability insurance benefits payable on or after the date that is 1 year after the date of the enactment of this section.
SEC. 842. Elimination of Quinquennial Determinations Relating to Wage Credits for Military Service Prior to 1957.
Section 217(g)(2) of the Social Security Act (42 U.S.C. 417(g)(2)) is amended—
by inserting “ through 2010” after “ each fifth year thereafter”; and
by inserting after the first sentence the following: “ The Secretary of Health and Human Services shall revise the amount determined under paragraph (1) with respect to the Federal Hospital Insurance Trust Fund under title XVIII in 2015 and each fifth year thereafter through such date, and using such data, as the Secretary determines appropriate on the basis of the amount of benefits and administrative expenses actually paid from such Trust Fund under title XVIII and the relevant actuarial assumptions set forth in the report of the Board of Trustees of such Trust Fund for such year under section 1817(b).”.
SEC. 843. Certification of Benefits Payable to a Divorced Spouse of a Railroad Worker to the Railroad Retirement Board.
Section 205(i) of the Social Security Act (42 U.S.C. 405(i)) is amended by inserting “ or divorced wife or divorced husband” after “ the wife or husband”.
SEC. 844. Technical Amendments to Eliminate Obsolete Provisions.
Elimination of Reference in Section 226 to a Repealed Provision.— Section 226 of the Social Security Act (42 U.S.C. 426) is amended—
by striking subsection (i); and
by redesignating subsection (j) as subsection (i).
Elimination of Reference in Section 226A to a Repealed Provision.— Section 226A of such Act (42 U.S.C. 426–1) is amended by striking the second subsection (c).
SEC. 845. Reporting Requirements to Congress.
Report on Fraud and Improper Payment Prevention Activities.— Section 704(b) of the Social Security Act (42 U.S.C. 904(b)) is amended by adding at the end the following:
“(3) For each fiscal year beginning with 2016 and ending with 2021, the Commissioner shall include in the annual budget prepared pursuant to subparagraph (A) a report describing the purposes for which amounts made available for purposes described in section 251(b)(2)(B) of the Balanced Budget and Emergency Deficit Control Act of 1985 for the fiscal year were expended by the Social Security Administration and the purposes for which the Commissioner plans for the Administration to expend such funds in the succeeding fiscal year, including—
“(A) the total such amount expended;
“(B) the amount expended on co-operative disability investigation units;
“(C) the number of cases of fraud prevented by co-operative disability investigation units and the amount expended on such cases (as reported to the Commissioner by the Inspector General of the Social Security Administration);
“(D) the number of felony cases prosecuted under section 208 (as reported to the Commissioner by the Inspector General) and the amount expended by the Social Security Administration in supporting the prosecution of such cases;
“(E) the amount of such felony cases successfully prosecuted (as reported to the Commissioner by the Inspector General) and the amount expended by the Social Security Administration in supporting the prosecution of such cases;
“(F) the amount expended on and the number of completed—
“(i) continuing disability reviews conducted by mail;
“(ii) redeterminations conducted by mail;
“(iii) medical continuing disability reviews conducted pursuant to section 221(i);
“(iv) medical continuing disability reviews conducted pursuant to 1614(a)(3)(H);
“(v) redeterminations conducted pursuant to section 1611(c); and
“(vi) work-related continuing disability reviews to determine whether earnings derived from services demonstrate an individual’s ability to engage in substantial gainful activity;
“(G) the number of cases of fraud identified for which benefits were terminated as a result of medical continuing disability reviews (as reported to the Commissioner by the Inspector General), work-related continuing disability reviews, and redeterminations, and the amount of resulting savings for each such type of review or redetermination; and
“(H) the number of work-related continuing disability reviews in which a beneficiary improperly reported earnings derived from services for more than 3 consecutive months, and the amount of resulting savings.”
Report on Work-Related Continuing Disability Reviews.— The Commissioner of Social Security shall annually submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report on the number of work-related continuing disability reviews conducted each year to determine whether earnings derived from services demonstrate an individual’s ability to engage in substantial gainful activity. Such report shall include—
the number of individuals receiving benefits based on disability under title II of such Act for whom reports of earnings were received from any source by the Commissioner in the previous calendar year, reported as a total number and separately by the source of the report;
the number of individuals for whom such reports resulted in a determination to conduct a work-related continuing disability review, and the basis on which such determinations were made;
in the case of a beneficiary selected for a work-related continuing disability review on the basis of a report of earnings from any source—
the average number of days—
between the receipt of the report and the initiation of the review;
between the initiation and the completion of the review; and
the average amount of overpayment, if any;
the number of such reviews completed during such calendar year, and the number of such reviews that resulted in a suspension or termination of benefits;
the number of such reviews initiated in the current year that had not been completed as of the end of such calendar year;
the number of such reviews initiated in a prior year that had not been completed as of the end of such calendar year;
the total savings to the Trust Funds and the Treasury generated from benefits suspended or terminated as a result of such reviews; and
with respect to individuals for whom a work-related continuing disability review was completed during such calendar year—
the number who participated in the Ticket to Work program under section 1148 during such calendar year;
the number who used any program work incentives during such calendar year; and
the number who received vocational rehabilitation services during such calendar year with respect to which the Commissioner of Social Security reimbursed a State agency under section 222(d).
Report on Overpayment Waivers.— Not later than January 1 of each calendar year, the Commissioner of Social Security shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report on—
the number and total value of overpayments recovered or scheduled to be recovered by the Social Security Administration during the previous fiscal year of benefits under title II and title XVI, respectively, including the terms and conditions of repayment of such overpayments; and
the number and total value of overpayments waived by the Social Security Administration during the previous fiscal year of benefits under title II and title XVI, respectively.
SEC. 846. Expedited Examination of Administrative Law Judges.
In General.— Notwithstanding any other provision of law, the Office of Personnel Management shall, upon request of the Commissioner of Social Security, expeditiously administer a sufficient number of competitive examinations, as determined by the Commissioner, for the purpose of identifying an adequate number of candidates to be appointed as Administrative Law Judges under section 3105 of title 5, United States Code. The first such examination shall take place not later than April 1, 2016 and other examinations shall take place at such time or times requested by the Commissioner, but not later than December 31, 2022. Such examinations shall proceed even if one or more individuals who took a prior examination have appealed an adverse determination and one or more of such appeals have not concluded, provided that—
the Commissioner of Social Security has made a determination that delaying the examination poses a significant risk that an adequate number of Administrative Law Judges will not be available to meet the need of the Social Security Administration to reduce or prevent a backlog of cases awaiting a hearing;
an individual whose appeal is pending is provided an option to continue their appeal or elects to take the new examination, in which case the appeal is considered vacated; and
an individual who decides to continue his or her appeal and who ultimately prevails in the appeal shall receive expeditious consideration for hire by the Office Personnel Management and the Commissioner of Social Security.
Payment of Costs.— Notwithstanding any other provision of law, the Commissioner of Social Security shall pay the full cost associated with each examination conducted pursuant to subsection (a).