Strengthening Social Security Act of 2016
This bill amends the Internal Revenue Code to prescribe special rules for the determination of taxable wages and self-employment income above the contribution and benefit base after 2016.
Title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSAct) is amended to: (1) increase from 90% to 95% over five years the first bend point factor used in determining the primary OASDI insurance amount; and (2) include surplus average indexed monthly earnings in the determination of such amounts.
The Bureau of Labor Statistics of the Department of Labor shall prepare and publish the Consumer Price Index for Elderly Consumers (CPI-EC) that indicates changes over time in expenditures for consumption which are typical for individuals in the United States who have attained early retirement age for purposes of an old-age, wife's, or husband's insurance benefit. The bill amends the SSAct to make the CPI-EC the applicable Consumer Price Index for computation of cost-of-living increases in OASDI benefits for such individuals.
The bill revises OASDI benefits for a widow or widower to provide benefits at a level equal to at least 75% of the amount received prior to the death of a spouse.
The bill prevents any decrease in the benefit level of supplemental security income recipients resulting from any increase in other social security benefits in this bill.