Increase in special minimum benefit for lifetime low earners based on years in the workforce

Section 215(a)(1)(C) of the Social Security Act (42 U.S.C. 415(a)(1)(C)) is amended to read as follows: (C) (i) Effective with respect to the benefits of individuals who become eligible for old-age insurance benefits or disability insurance benefits (or die before becoming so eligible) after 2025, no primary insurance amount computed under subparagraph (A) may be less than the applicable percentage of 1/12 of the annual dollar amount determined under clause (iv) for the year in which the amount is determined. (ii) For purposes of clause (i), the applicable percentage is the percentage specified in connection with the number of years of work, as set forth in the following table: If the number of The applicable years of work is: percentage is: 11 36.7 percent 12 40.0 percent 13 43.3 percent 14 46.7 percent 15 50.0 percent 16 53.3 percent 17 56.7 percent 18 60.0 percent 19 63.3 percent 20 66.7 percent 21 70.0 percent 22 73.3 percent 23 76.7 percent 24 80.0 percent 25 83.3 percent 26 86.7 percent 27 90.0 percent 28 93.3 percent 29 96.7 percent 30 or more 100.0 percent. (iii) The annual dollar amount determined under this clause is— (I) for calendar year 2026, the poverty guideline for 2025; and (II) for any calendar year after 2026, the annual dollar amount for 2026 multiplied by the ratio of— (aa) the national average wage index (as defined in section 209(k)(1)) for the second calendar year preceding the calendar year for which the determination is made, to (bb) the national average wage index (as so defined) for 2024. (iv) For purposes of this subparagraph— (I) the term number of years of work means, with respect to an individual, the sum of— (aa) 1/4 of the total number of quarters of coverage credited to such individual (disregarding any fraction); and (bb) the number of years (not exceeding 5) in all of which the individual provided care for a child under 6 years of age who resided in the individual’s home; and (II) the term poverty guideline for 2025 means the annual poverty guideline for 2025 (as updated annually in the Federal Register by the Department of Health and Human Services under the authority of section 673(2) of the Omnibus Budget Reconciliation Act of 1981) as applicable to a single individual.