United States HR 3889: Providing Choice for Social Security Retirees Act

Bill Text

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117TH CONGRESS
1ST SESSION H. R. 3889
To amend title II of the Social Security Act to provide an option to claim
a delayed retirement credit in a partial lump sum, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 15, 2021
Mr. SMITH of Nebraska introduced the following bill; which was referred to
the Committee on Ways and Means
A BILL
To amend title II of the Social Security Act to provide
an option to claim a delayed retirement credit in a par-
tial lump sum, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Providing Choice for 4
Social Security Retirees Act’’. 5
SEC. 2. OPTION TO CLAIM DELAYED RETIREMENT CREDIT 6
IN PARTIAL LUMP SUM. 7
Section 202(w) of the Social Security Act (42 U.S.C. 8
402(w)) is amended by adding at the end the following: 9
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‘‘(7)(A) In any case in which an individual becomes 1
entitled to an old-age insurance benefit in a calendar year 2
after 2021, and such benefit is subject to a monthly in-3
crease under paragraph (1), such individual may elect to 4
receive, in lieu of the monthly increase under paragraph 5
(1)— 6
‘‘(i) an alternate monthly increase as deter-7
mined under subparagraph (E); and 8
‘‘(ii) in addition to such monthly benefit as in-9
creased under clause (i), a one-time lump sum pay-10
ment, payable at the time of such individual’s enti-11
tlement to such benefit, equal to the sum of the 12
present values (as determined by the Commissioner 13
of Social Security using reasonable assumptions) of 14
the applicable percentage (determined under sub-15
paragraph (B)) of the amount of such monthly ben-16
efit (as determined before the application of such in-17
crease) for each month in the life expectancy period 18
(determined under subparagraph (C)). 19
‘‘(B) The applicable percentage determined under 20
this subparagraph is the percentage equal to the product 21
of— 22
‘‘(i) 1⁄6 of 1 percent, multiplied by 23
‘‘(ii) the number (if any) of the increment 24
months for such individual. 25
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‘‘(C) The life expectancy period determined under 1
this subparagraph is, with respect to an individual, the 2
period— 3
‘‘(i) beginning with the month in which the in-4
dividual becomes entitled to an old-age insurance 5
benefit; and 6
‘‘(ii) ending with the month before the last 7
month of life expectancy (as determined by the Com-8
missioner of Social Security using reasonable actu-9
arial assumptions) for the cohort of individuals who 10
become eligible for an old-age insurance benefit in 11
the same month as the individual. 12
‘‘(D) The Commissioner of Social Security shall cer-13
tify to the Managing Trustee of the Federal Old-Age and 14
Survivors Insurance Trust Fund the amount of any lump 15
sum payment payable to an individual under subpara-16
graph (A) and, upon receipt of such certification, the Man-17
aging Trustee shall make payment of such lump sum pay-18
ment to such individual from such Trust Fund. 19
‘‘(E) An alternate monthly increase for an individual 20
determined under this subparagraph shall be equal to the 21
monthly increase for the individual that would be deter-22
mined under paragraph (1) if such monthly increase were 23
determined by substituting ‘1⁄2’ for ‘2⁄3’ in paragraph 24
(6)(D). 25
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‘‘(F)(i) For purposes of determining the amount of 1
any benefit payable under this title on the basis of the 2
wages and self-employment income of an individual who 3
makes an election under this paragraph, the amount of 4
any such benefit shall be determined as if such individual’s 5
old-age benefit had been increased under paragraph (1) 6
without regard to this paragraph. 7
‘‘(ii) For purposes of applying any reduction under 8
subsection (k)(3)(A) to the monthly insurance benefit of 9
an individual who makes an election under this paragraph, 10
the amount of such individual’s old-age benefit shall be 11
determined as if such old-age benefit had been increased 12
under paragraph (1) without regard to this paragraph.’’. 13
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