Increasing benefits for beneficiaries after 15 years of eligibility

(a) In general Section 202 of the Social Security Act (42 U.S.C. 402) is amended by adding at the end the following new subsection: (aa) Increase in benefit amounts on account of long-Term eligibility (1) In the case of an individual who is a qualified beneficiary for a calendar year after 2026, the amount of any monthly insurance benefit of such qualified beneficiary under this section or section 223 for any month in such calendar year shall be increased in accordance with paragraph (3). (2) (A) For purposes of this subsection, the term qualified beneficiary for a calendar year means an individual in any case in which such calendar year is at least the 16th year beginning after the applicable year of eligibility for such individual. (B) For purposes of this subsection, the applicable year of eligibility for an individual is the year in which the individual on whose wages and self-employment income the monthly insurance benefit is based initially became eligible (or died before becoming eligible) for old-age insurance benefits under subsection (a) or disability insurance benefits under section 223. (3) (A) The increase required under paragraph (1) with respect to the monthly insurance benefit of an individual who is a qualified beneficiary for a calendar year shall be equal to the applicable percentage (specified for such benefit in subparagraph (B)) of the full increase amount for such calendar year (determined under subparagraph (C)). (B) The applicable percentage specified for a monthly insurance benefit under this subparagraph for a calendar year is the percentage specified, in connection with the year described in the following table, as follows: The applicable If the year described is: percentage is: the 16th year beginning after the applicable year of eligibility 20 percent the 17th year beginning after the applicable year of eligibility 40 percent the 18th year beginning after the applicable year of eligibility 60 percent the 19th year beginning after the applicable year of eligibility 80 percent the 20th year beginning after the applicable year of eligibility or later 100 percent. (C) (i) Except as provided in clause (ii), the full increase amount determined under this subparagraph for a calendar year in connection with the monthly insurance benefit of a qualified beneficiary is a dollar amount equal to 5 percent of the primary insurance amount of a putative individual if— (I) such primary insurance amount were determined for January of such calendar year; (II) on January 1 of the applicable year of eligibility for the qualified beneficiary, such putative individual were fully insured, attained retirement age (as defined in section 216(l)(1)) and were otherwise eligible for, and applied for, old-age insurance benefits; and (III) such putative individual’s average indexed monthly earnings taken into account in determining such primary insurance amount were equal to 1/12 of the national average wage index (as defined in section 209(k)(1)) for the second year prior to such applicable year of eligibility. (ii) (I) In the case of a monthly insurance benefit under subsection (b) or (c), the full increase amount determined under this subparagraph shall be one-half the amount determined under clause (i). (II) In the case of a monthly insurance benefit under subsection (d), (g), or (h), the full increase amount determined under this subparagraph shall be the percentage of the amount determined under clause (i) equal to the ratio which the amount of such benefit bears to the primary insurance amount (before the application of section 203(a)) of the individual on whose wages and self-employment income the monthly insurance benefit is based. (4) In the case of a qualified beneficiary who is entitled to two or more monthly insurance benefits under this title for the same month— (A) the earliest applicable year of eligibility for such beneficiary with respect to such benefits shall be treated as the applicable year of eligibility for such beneficiary for the purposes of this subsection; and (B) such beneficiary shall be entitled to an increase with respect only to one such benefit. (5) This subsection shall be applied to monthly insurance benefits after any increase under subsection (w) and any applicable reductions and deductions under this title.. (b) Conforming amendments (1) Section 202 of such Act (42 U.S.C. 402), as amended by section 105, is further amended— (A) in the last sentence of subsection (a), by striking subsection (q) and subsection (w) and inserting subsections (q), (w), and (aa); (B) in subsection (b)(2), by striking subsection (q) and inserting subsections (q) and (aa); (C) in subsection (c)(2), by striking subsection (q) and inserting subsections (q) and (aa); (D) in subsection (d)(2), by adding at the end the following: This paragraph shall apply subject to subsection (aa).; (E) in subsection (e)(2)(A), by striking subsection (q) and subparagraph (D) of this paragraph and inserting subsection (q), subsection (aa), and subparagraph (D) of this paragraph; (F) in subsection (f)(2)(A), by striking subsection (q), and subparagraph (D) of this paragraph and inserting subsection (q), subsection (aa), and subparagraph (D) of this paragraph; (G) in subsection (g)(2), by striking Such and inserting Except as provided in subsection (aa), such; and (H) in subsection (h)(2)(A), by inserting and subsection (aa) after subparagraphs (B) and (C); and (2) Section 223(a)(2) of such Act (42 U.S.C. 423(a)(2)) is amended by striking section 202(q) and inserting sections 202(q) and 202(aa). (3) Section 209(k)(1) of such Act (42 U.S.C. 409(k)(1)) is amended by inserting 202(aa)(3)(C)(i)(II), before 203(f)(8)(B)(ii). (c) Effective date The amendments made by this section shall apply with respect to monthly insurance benefits payable for months in calendar years 2027 through 2036.