S 717 IS

To amend title II of the Social Security Act to provide that the reductions in social security benefits which are required in the case of spouses and surviving spouses who are also receiving certain Government pensions shall be equal to the amount by which two-thirds of the total amount of the combined monthly benefit (before reduction) and monthly pension exceeds $1,200, adjusted for inflation.

March 25, 1999

Ms. MIKULSKI (for herself, Mr. SARBANES, Ms. SNOWE, Mr. DODD, Mr. HARKIN, Mr. HOLLINGS, Mr. INOUYE, Ms. LANDRIEU, and Mr. REID) introduced the following bill; which was read twice and referred to the Committee on Finance

To amend title II of the Social Security Act to provide that the reductions in social security benefits which are required in the case of spouses and surviving spouses who are also receiving certain Government pensions shall be equal to the amount by which two-thirds of the total amount of the combined monthly benefit (before reduction) and monthly pension exceeds $1,200, adjusted for inflation.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Government Pension Offset Reform Act'.

SEC. 2. LIMITATION ON REDUCTIONS IN BENEFITS FOR SPOUSES AND SURVIVING SPOUSES RECEIVING GOVERNMENT PENSIONS.

(a) WIFE'S INSURANCE BENEFITS- Section 202(b)(4)(A) of the Social Security Act (42 U.S.C. 402(b)(4)(A)) is amended--

(1) by inserting `the amount (if any) by which the sum of such benefit (before reduction under this paragraph) and' after `two-thirds of'; and

(2) by inserting `exceeds the amount described in subsection (z) for such month,' before `if'.

(b) HUSBAND'S INSURANCE BENEFITS- Section 202(c)(2)(A) of such Act (42 U.S.C. 402(c)(2)(A)) is amended--

(1) by inserting `the amount (if any) by which the sum of such benefit (before reduction under this paragraph) and' after `two-thirds of'; and

(2) by inserting `exceeds the amount described in subsection (z) for such month,' before `if'.

(c) WIDOW'S INSURANCE BENEFITS- Section 202(e)(7)(A) of such Act (42 U.S.C. 402(e)(7)(A)) is amended--

(1) by inserting `the amount (if any) by which the sum of such benefit (before reduction under this paragraph) and' after `two-thirds of'; and

(2) by inserting `exceeds the amount described in subsection (z) for such month,' before `if'.

(d) WIDOWER'S INSURANCE BENEFITS- Section 202(f)(2)(A) of such Act (42 U.S.C. 402(f)(2)(A)) is amended--

(1) by inserting `the amount (if any) by which the sum of such benefit (before reduction under this paragraph) and' after `two-thirds of'; and

(2) by inserting `exceeds the amount described in subsection (z) for such month,' before `if'.

(e) MOTHER'S AND FATHER'S INSURANCE BENEFITS- Section 202(g)(4)(A) of such Act (42 U.S.C. 402(g)(4)(A)) is amended--

(1) by inserting `the amount (if any) by which the sum of such benefit (before reduction under this paragraph) and' after `two-thirds of'; and

(2) by inserting `exceeds the amount described in subsection (z) for such month,' before `if'.

(f) AMOUNT DESCRIBED- Section 202 of such Act (42 U.S.C. 402) is amended by adding at the end the following:

`(z) The amount described in this subsection is, for months in each 12-month period beginning in December of 1999, and each succeeding calendar year, the greater of--

`(1) $1200; or

`(2) the amount applicable for months in the preceding 12-month period, increased by the cost-of-living adjustment for such period determined for an annuity under section 8340 of title 5, United States Code (without regard to any other provision of law).'.

(g) LIMITATIONS ON REDUCTIONS IN BENEFITS- Section 202 of such Act (42 U.S.C. 402), as amended by subsection (f), is amended by adding at the end the following:

`(aa) For any month after December 1999, in no event shall an individual receive a reduction in a benefit under subsection (b)(4)(A), (c)(2)(A), (e)(7)(A), (f)(2)(A), or (g)(4)(A) for the month that is more than the reduction in such benefit that would have applied for such month under such subsections as in effect on December 1, 1999.'.

SEC. 3. EFFECTIVE DATE.

The amendments made by section 1 shall apply with respect to monthly insurance benefits payable under title II of the Social Security Act for months after December 1999.

END