S.Amdt. 3336

SA 3336. Mr. CRUZ (for himself and Mr. Manchin) submitted an
amendment intended to be proposed by him to the bill H.R. 82, to amend
title II of the Social Security Act to repeal the Government pension
offset and windfall elimination provisions; which was ordered to lie on
the table; as follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Equal Treatment of Public
Servants Act of 2024''.

SEC. 2. REPLACEMENT OF THE WINDFALL ELIMINATION PROVISION
WITH A FORMULA EQUALIZING BENEFITS FOR CERTAIN
INDIVIDUALS WITH NONCOVERED EMPLOYMENT.

(a) In General.--Section 215(a) of the Social Security Act
(42 U.S.C. 415(a)) is amended by inserting after paragraph
(7) the following:
``(8)(A) In the case of an individual whose primary
insurance amount would be computed under paragraph (1) of
this subsection--
``(i) who first becomes eligible for an old-age or
disability insurance benefit after 2067,
``(ii) who subsequently becomes entitled to such benefit,
and
``(iii) who has earnings derived from noncovered service
performed in a year after 1977,
the primary insurance amount of such individual shall be the
amount computed or recomputed under this paragraph.
``(B) The primary insurance amount of an individual
described in subparagraph (A), as computed or recomputed
under this paragraph, shall be the product derived by
multiplying--
``(i) the individual's primary insurance amount, as
determined under paragraph (1) of this subsection and
subparagraph (C) of this paragraph, by
``(ii) a fraction--
``(I) the numerator of which is the individual's average
indexed monthly earnings (determined without regard to
subparagraph (C)), and
``(II) the denominator of which is an amount equal to the
individual's average indexed monthly earnings (as determined
under subparagraph (C)),
rounded, if not a multiple of $0.10, to the next lower
multiple of $0.10.
``(C)(i) For purposes of determining an individual's
primary insurance amount pursuant to clauses (i) and (ii)(II)
of subparagraph (B), the individual's average indexed monthly
earnings shall be determined by treating all recorded
noncovered earnings (as defined in clause (ii)(I)) derived by
the individual from noncovered service performed in each year
after 1977 as `wages' (as defined in section 209 for purposes
of this title), which shall be treated as included in the
individual's adjusted total covered earnings (as defined in
clause (ii)(II)) for such calendar year together with amounts
consisting of `wages' (as so defined without regard to this
subparagraph) paid during such calendar year and self-
employment income (as defined in section 211(b)) for taxable
years ending with or during such calendar year.
``(ii) For purposes of this subparagraph:
``(I) The term `recorded noncovered earnings' means
earnings derived from noncovered service (other than
noncovered service as a member of a uniformed service (as
defined in section 210(m)) for which satisfactory evidence is
determined by the Commissioner to be available in the records
of the Commissioner.
``(II) The term `adjusted total covered earnings' means, in
connection with an individual for any calendar year, the sum
of the wages paid to the individual during such calendar year
(as adjusted under subsection (b)(3)) plus the self-
employment income derived by the individual during any
taxable year ending with or during such calendar year (as
adjusted under subsection (b)(3)).
``(iii) The Commissioner of Social Security shall provide
by regulation or other public guidance for methods for
determining whether satisfactory evidence is available in the
records of the Commissioner for earnings for noncovered
service (other than noncovered service as a member of a
uniformed service (as defined in section 210(m))) to be
treated as recorded noncovered earnings. Such methods shall
provide for reliance on earnings information which is
provided to the Commissioner by employers and which, as
determined by the Commissioner, constitute a reasonable basis
for treatment of earnings for noncovered service as recorded
noncovered earnings. In making determinations under this
clause, the Commissioner shall also take into account any
documentary or other evidence of earnings derived from
noncovered service by an individual which is provided by the
individual to the Commissioner and which the Commissioner
considers appropriate as a reasonable basis for treatment of
such earnings as recorded noncovered earnings.
``(D) Upon the death of an individual whose primary
insurance amount is computed or recomputed under this
paragraph, such primary insurance amount shall be computed or
recomputed under paragraph (1) of this subsection.
``(E) In the case of any individual whose primary insurance
amount would be computed under this paragraph who first
becomes entitled after 1985 to a monthly periodic payment
made by a foreign employer or foreign country that is based
in whole or in part upon noncovered service, the primary
insurance amount of such individual shall be computed or
recomputed under paragraph (7) or paragraph (1), as
applicable, for months beginning with the first month of the
individual's initial entitlement to such monthly periodic
payment.''.
(b) Conforming Amendments.--Section 215(a)(7)(A) of such
Act (42 U.S.C. 415(a)(7)(A)) is amended--
(1) in clause (i)--
(A) by striking ``after 1985'' and inserting ``after 1985
and before 2068''; and
(B) by striking ``or'' at the end;
(2) in clause (ii)--
(A) by striking ``after 1985'' each place it appears and
inserting ``after 1985 and before 2068''; and
(B) by adding ``or'' at the end;
(3) by inserting after clause (ii) the following:
``(iii) is an individual described in paragraph (8)(E),'';
and
(4) by striking ``hereafter in this paragraph and in
subsection (d)(3)'' and inserting ``in this paragraph,
paragraphs (8) and (9), and subsection (d)(3)''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to monthly insurance benefits
payable on or after January 1, 2025.

SEC. 3. BENEFIT CALCULATION DURING TRANSITION PERIOD.

(a) In General.--Section 215(a) of the Social Security Act
(42 U.S.C. 415(a)), as amended by section 2, is further
amended by inserting after paragraph (8) the following:
``(9) In the case of an individual whose primary insurance
amount would be computed under paragraph (1) of this
subsection--
``(A) who first becomes eligible for an old-age or
disability insurance benefit after 2024 and before 2068,
``(B) who subsequently becomes entitled to such benefit,
and
``(C) who has earnings derived from noncovered service
performed in a year after 1977,
the primary insurance amount of such individual shall be the
higher of the amount computed or recomputed under paragraph
(7) without regard to this paragraph or the amount that would
be computed or recomputed under paragraph (8) if the
individual were an individual described in subparagraph (A)
of such paragraph.''.
(b) Conforming Amendment.--Section 215(a)(7)(A) of such Act
(42 U.S.C. 415(a)(7)(A)), as amended by section 2(b), is
further amended by striking ``shall be computed or
recomputed'' and inserting ``shall, subject to paragraph (9),
be computed or recomputed''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to monthly insurance benefits
payable on or after January 1, 2025.

SEC. 4. ADDITIONAL MONTHLY PAYMENT FOR INDIVIDUALS WHOSE
BENEFIT AMOUNT IS REDUCED BY THE WINDFALL
ELIMINATION PROVISION.

(a) In General.--Section 215(a) of such Act (42 U.S.C.
415(a)), as amended by sections 2 and 3, is further amended
by adding at the end the following:
``(10)(A) For any month beginning at least 270 days after
the date of enactment of the Equal Treatment of Public
Servants Act of 2024, the Commissioner of Social Security
shall, subject to subparagraphs (C) and (D), make an
additional monthly payment of $100 to each individual who is
an eligible individual for such month, and an additional
monthly payment of $50 to each individual (other than an
eligible individual) who is entitled to a benefit under
section 202 for such month on the basis of the wages and
self-employment income of such eligible individual.
``(B) For purposes of this paragraph, the term `eligible
individual' for a month means an individual who--
``(i)(I) first becomes eligible for an old-age or
disability insurance benefit under this title before 2025, or
``(II) is an individual described in paragraph (8)(E), and
``(ii) is entitled to an old-age or disability insurance
benefit under this title for such month based on a primary
insurance amount that was computed or recomputed under
paragraph (7) (and not subsequently recomputed under any
other paragraph of this subsection).
``(C) In any case in which this title provides that no
monthly benefit under section 202 or 223 shall be paid to an
individual for a month, no additional monthly payment shall
be paid to the individual for such month. This subparagraph
shall not apply in the case of an individual whose monthly
benefit under section 202 or 223 is reduced, regardless of
the amount of the reduction, based on the individual's
receipt of other income or benefits for such month or the
application of section 203(a) or due to the adjustment or
recovery of an overpayment under section 204.
``(D)(i) An individual is not entitled to receive more than
one additional monthly payment for a month under this
paragraph.
``(ii) An eligible individual who is entitled to a benefit
under section 202 on the basis of the wages and self-
employment income of another eligible individual for a month
shall receive an additional monthly payment under this
paragraph in the amount of $100 for such month.
``(E) Except for purposes of adjustment or recovery of an
overpayment under section 204, an additional monthly payment
under this paragraph shall not be subject to any reduction or
deduction under this title.

[[Page S7112]]

``(F) Whenever benefit amounts under this title are
increased by any percentage effective with any month as a
result of a determination made under subsection (i), each of
the dollar amounts in subparagraph (A) shall be increased by
the same percentage for months beginning with such month.''.
(b) Effective Date.--The amendments made by this section
shall apply with respect to monthly insurance benefits
payable for months beginning at least 270 days after the date
of enactment of this Act.

SEC. 5. REPORTING OF NONCOVERED EARNINGS ON SOCIAL SECURITY
ACCOUNT STATEMENTS.

(a) In General.--Section 1143(a)(2) of the Social Security
Act (42 U.S.C. 1320b-13(a)(2)) is amended--
(1) by redesignating subparagraphs (B) through (E) as
subparagraphs (C) through (F); and
(2) by inserting after subparagraph (A) the following:
``(B) the amount of earnings derived by the eligible
individual from service performed after 1977 which did not
constitute employment (as defined in section 210), not
including service as a member of a uniformed service (as
defined in section 210(m)), as shown by the records of the
Commissioner at the date of the request;''.
(b) Effective Date.--The amendments made by this section
shall apply with respect to Social Security account
statements issued on or after January 1, 2025.

SEC. 6. STUDY ON PARTNERING WITH STATE AND LOCAL PENSION
SYSTEMS.

(a) Study.--
(1) In general.--The Commissioner of Social Security shall
study and test the administrative feasibility of partnering
with State and local pension systems, or other governmental
entities, to improve the collection and sharing of
information relating to State and local noncovered pensions.
(2) Coordination with state and local pension systems.--In
conducting the study described in paragraph (1), the
Commissioner shall coordinate with State and local pension
systems that reflect the diversity of systems and individual
experiences to explore the development of automated data
exchange agreements that facilitate reporting of information
relating to noncovered pensions.
(b) Report.--The Commissioner of Social Security shall
conclude the study described in subsection (a) not later than
4 years after the date of enactment of this Act. As soon as
possible after conclusion of the study and not later than
4\1/2\ years after the date of enactment of this Act, the
Commissioner 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 results of the study. Such
report shall include the following:
(1) A discussion of how the automated data exchange
agreements could be implemented to cover noncovered pensions
nationally, including the range of implementation timelines
across State and local pension systems, or with other
governmental entities.
(2) An analysis of the barriers to developing automated
data exchange agreements and lessons learned that can help
address these barriers.
(3) A description of alternative methods for obtaining
information related to noncovered pensions, and an analysis
of the barriers to obtaining noncovered pension data through
such methods.
(4) An explanation of how coverage information is obtained
by the Social Security Administration when an individual
purchases service credits to apply to a new covered or
noncovered pension after moving from another covered or
noncovered pension within the State or in another State.
(5) An estimate of the total amount, as of the date of the
enactment of this Act, of noncovered pensions not reported to
the Social Security Administration as a result of
noncompliance with voluntary reporting policies.
(c) State and Local Pension Information To Be Requested by
the Commissioner.--Section 202 of the Social Security Act (42
U.S.C. 402) is amended by inserting after subsection (l) the
following:
``(m) State and Local Pension Information To Be Requested
by the Commissioner.--
``(1) The Commissioner may partner with States to request
information, including the information specified in paragraph
(2), with respect to any designated distribution (as defined
in section 3405(e)(1) of the Internal Revenue Code of 1986)
from an employer deferred compensation plan (as defined in
section 3405(e)(5) of such Code) of the State (or political
subdivision thereof) to a participant of such plan in any
case in which any portion of such participant's earnings for
service under such plan did not constitute `employment' as
defined in section 210 for purposes of this title.
``(2) The information specified in this paragraph is the
following:
``(A) The name and Social Security account number of the
participant receiving the designated distribution.
``(B) The dollar amount of the designated distribution and
the date paid.
``(C) The date on which the participant initially became
eligible for a designated distribution under the plan and, if
different, the date of payment of the initial designated
distribution.
``(D) The dates of each period of service under the plan
that did not constitute `employment' as defined in section
210 for purposes of this title, and the dates of any other
period of service under the plan.''.
(d) Definitions.--In this section--
(1) the term ``noncovered pension'' means a pension any
part of which is based on noncovered service (within the
meaning of section 215(a)(7) of the Social Security Act (42
U.S.C. 415(a)(7))); and
(2) the term ``covered pension'' means any other pension.
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