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H.R. 7To amend title II of the Social Security Act to extend the

solvency of the Social Security Trust Funds by increasing the

normal and early retirement ages under the Social Security

program and eliminating OASDI payroll tax for certain groups,and for other purposes.

_____________________

IN THE HOUSE OF REPRESENTATIVES

DECEMBER, 27, 2012

Mr. GRESS introduced the following bill; which was referred to

the Committee on Appropriations for a period to besubsequently determined by the Speaker, for consideration of

such provisions as fall within the jurisdiction of the committee

concerned.

_____________________

A BILLTo amend title II of the Social Security Act to extend the

solvency of the Social Security Trust Funds by increasing thenormal and early retirement ages under the Social Security

program and eliminating OASDI payroll tax for certain groups,

and for other purposes.

Be it enacted by the Senate and House of1

Representatives of the United States of America in2

Congress assembled,3

SECTION 1. SHORT TITLE.4

This Act may be cited as the "Save Social5

Security Act of 2013".6

SEC. 2. ADJUST FULL RETIREMENT AGE (FRA) AND EARLIEST7

ELIGIBILITY AGE (EEA).8

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1STCONGRESS1STSESSION

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(a) Increase the full retirement age by three months each year,10

beginning with persons who attain age 62 in 2016, until the11

FRA reaches age 70 for persons who attain age 62 in 2031 or12

later. The earliest eligibility age would be increased from age13

62 to age 64. The EEA would be increased by three months14

each year, beginning with persons who attain age 62 in 2016,15

until the EEA reaches age 64 for persons who attain age 62 in16

2023 or later.17

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SEC. 3. ELIMINATE OASDI PAYROLL TAX FOR CERTAIN19

GROUPS.20

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(a) Persons who attain EEA, defer benefits, and continue22

working in the labor force, shall no longer be required to pay23

OASDI payroll taxes. Employers of said persons also shall no24

longer have to pay matching OASDI payroll taxes.25

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SEC. 4. APPLY REFINED COST OF LIVING MEASURE (CHAINED-27

CPI) TO COLA28

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(a) Cost-of-living adjustments (COLAs) shall be calculated using30

the chained consumer price index (CPI).31

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(b) Persons receiving disability benefits who convert to retired33

workers at the FRA shall not be subject the Chained-CPI.34

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SEC. 5. COVER NEWLY HIRED STATE AND LOCAL WORKERS36

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(a) Beginning in 2020, all newly hired state and local workers38

and their employers will be subject to the Social Security39

portion of Federal Insurances Contributions Act (FICA) tax.40

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(b) This section removes the Social Security payment42

exemption for state and local employers in the following states:43

Alaska, California, Colorado, Illinois, Louisiana, Maine,44

Massachusetts, Nevada, Ohio and Texas.45

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SEC. 6. GRADUALLY INCREASE THE TAXABLE MAXIMUM TO47

COVER 90 PERCENT OF WAGES BY 205048

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(a) The taxable maximum will be increased .14% per year to50

include 90 percent of all covered earnings, and count additional51

earnings toward benefits.52

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(b) This section de-links increases in the taxable maximum54

from increases in the Cost of Living Adjustment (COLA),55

allowing the taxable maximum to increase even in zero-COLA56

years.57

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SEC. 7. PROVIDE AN ENHANCED MINIMUM BENEFIT FOR LOW-59

WAGE WORKERS60

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(a) Full-career (30-year) minimum wage workers shall be62

eligible for a special minimum benefit equivalent to 125 percent63

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of the poverty line in 2017 and wage-indexed thereafter. The64

minimum benefit would phase down proportionally for workers65

with less than 30 but more than 10 years of earnings.66

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SEC. 8. REDUCE SPOUSAL BENEFIT AND ADD CAREGIVER68

CREDIT69

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(a) Effective for those becoming entitled in 2022, spousal71

benefits shall be reduced from 50% of PIA under current law72

(PIA is the sum of three separate percentages of portions of73

average indexed monthly earnings) to 12.5%.74

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(b) When determining Social Security benefit levels, men or76

women with children under the age of six shall be entitled to77

earnings credit of up to 50% of the average wage for five years78

(or seven years total if one has more than one child).79

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SEC. 8. ENHANCE BENEFITS FOR THE VERY OLD AND THE81

LONG-TIME DISABLED82

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(a) Any Social Security or Disability beneficiary 85 or older at84

the beginning of 2013 shall receive a 5-percent increase to the85

benefit level of any beneficiary or who reaches their 85th86

birthday after the beginning of 2013.87

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