text: SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
  
      (a) Short Title.--This Act may be cited as the ``Provide for the 
  Common Defense Act of 2013''.
      (b) Table of Contents.--The table of contents of this Act is as 
  follows:
  
  Sec. 1. Short title; table of contents.
    TITLE I--ELIMINATION OF SEQUESTRATION FOR REVISED SECURITY CATEGORY
  
  Sec. 101. Elimination of 251A reductions for revised security category 
                              in fiscal years 2014 and 2015.
                    TITLE II--OFFSETTING PAYMENT CHANGES
  
                            Subtitle A--Medicare
  
  Sec. 201. Adjustments to calculation of Medicare part B and part D 
                              premiums for high-income beneficiaries.
  Sec. 202. Increase in part B deductible for new enrollees.
                          Subtitle B--Agriculture
  
  Sec. 211. Cap on overall rate of return for crop insurance providers.
  Sec. 212. Cap on reimbursements for administrative and operating 
                              expenses of crop insurance providers.
  Sec. 213. Reduction in share of crop insurance premium paid by Federal 
                              Crop Insurance Corporation.
                       Subtitle C--Federal Retirement
  
  Sec. 221. Retirement contributions.
  Sec. 222. Annuity supplement.
  Sec. 223. Use of Chained Consumer Price Index.
                          Subtitle D--Chained CPI
  
  Sec. 231. Change in index used to calculate Social Security cost-of-
                              living adjustments.
  
    TITLE I--ELIMINATION OF SEQUESTRATION FOR REVISED SECURITY CATEGORY
  
  SEC. 101. ELIMINATION OF 251A REDUCTIONS FOR REVISED SECURITY CATEGORY 
                IN FISCAL YEARS 2014 AND 2015.
  
      (a) Elimination of the Adjustment Under Section 251A for Fiscal 
  Years 2014 and 2015.--Section 251A of the Balanced Budget and Emergency 
  Deficit Control Act of 1985 (2 U.S.C. 901a) is amended--
              (1) in paragraphs (7)(B) and (8), by striking ``On the 
          date'' in each instance and inserting ``Subject to paragraph 
          (12), on the date''; and
              (2) by adding at the end the following new paragraph:
              ``(12) No reductions for revised security category in 
          fiscal years 2014 and 2015.--Paragraphs (7)(B) and (8) shall 
          have no force or effect for fiscal years 2014 and 2015 with 
          respect to the revised security category.''.
      (b) Discretionary Spending Limits for the Revised Security Category 
  in Fiscal Years 2014 and 2015.--For purposes of section 251(c) of the 
  Balanced Budget and Emergency Deficit Control Act of 1985 (as modified 
  by section 251A(2) of such Act), for fiscal years 2014 and 2015, the 
  discretionary spending limit for the revised security category in each 
  such fiscal year shall be $552,000,000,000 and $566,000,000,000, 
  respectively.
  
                    TITLE II--OFFSETTING PAYMENT CHANGES
  
                            Subtitle A--Medicare
  
  SEC. 201. ADJUSTMENTS TO CALCULATION OF MEDICARE PART B AND PART D 
                PREMIUMS FOR HIGH-INCOME BENEFICIARIES.
  
      (a) Increase in Applicable Percentage Used To Calculate Premiums.--
  Section 1839(i)(3)(C)(i) of the Social Security Act (42 U.S.C. 
  1395r(i)(3)(C)(i)) is amended--
              (1) by inserting after ``In general.--'' the following:
                                      ``(I) Years before 2017.--For 
                                  calendar years prior to 2017:''; and
              (2) by adding at the end the following new subclause:
                              ``(II) 2017 and subsequent years.--For 
                          calendar year 2017 and each subsequent calendar 
                          year:
  
  ``If the modified adjusted                               The applicable
     gross income is:                                      percentage is:
          More than $85,000 but not more than $107,000...........     40 
          More than $107,000 but not more than $160,000..........     55 
          More than $160,000 but not more than $214,000..........     70 
          More than $214,000.....................................  90.''.
      (b) Temporary Adjustment to Income Thresholds Used To Calculate 
  Premiums.--
              (1) In general.--Section 1839(i)(6) of the Social Security 
          Act (42 U.S.C. 1395r(i)(6)) is amended in the matter preceding 
          subparagraph (A) by striking ``December 31, 2019'' and 
          inserting ``December 31 of the year after 2019 that is the 
          first year after the year in which at least 25 percent of 
          individuals enrolled under this part are subject to a reduction 
          under this subsection to the monthly amount of the premium 
          subsidy applicable to the premium under this section.''.
              (2) Application of inflation adjustment.--Section 
          1839(i)(5) of the Social Security Act (42 U.S.C. 1395r(i)(5)) 
          is amended--
                      (A) in subparagraph (A), by striking ``In the 
                  case'' and inserting ``Subject to subparagraph (C), in 
                  the case''; and
                      (B) by adding at the end the following new 
                  subparagraph:
                      ``(C) Treatment of years after temporary adjustment 
                  period.--In applying subparagraph (A) for the first 
                  year beginning after the period described in paragraph 
                  (6) and for each subsequent year, the 12-month period 
                  ending with August 2006 described in clause (ii) of 
                  such subparagraph shall be deemed to be the 12-month 
                  period ending with August of the last year of such 
                  period described in paragraph (6).''.
  
  SEC. 202. INCREASE IN PART B DEDUCTIBLE FOR NEW ENROLLEES.
  
      Section 1833 of the Social Security Act (42 U.S.C. 1395l) is 
  amended--
              (1) in the first sentence of subsection (b), by inserting 
          ``(subject to subsection (z))'' after ``for a subsequent 
          year''; and
              (2) by adding at the end the following:
      ``(z) Higher Deductible for New Enrollees.--In the case of an 
  individual who is not enrolled under this part before January 1, 2017, 
  the amount of the deductible under subsection (b)--
              ``(1) for 2017 shall be the amount otherwise determined 
          under such subsection for 2017 increased by $25;
              ``(2) for 2018 shall be the amount otherwise determined 
          under such subsection for 2018, taking into account the 
          application of the previous paragraph;
              ``(3) for 2019 shall be the amount otherwise determined 
          under such subsection for 2019, taking into the application of 
          the previous paragraphs, , increased by $25;
              ``(4) for 2020 shall be the amount otherwise determined 
          under such subsection for 2020, taking into account the 
          application of the previous paragraphs, increased by $25;
              ``(5) for 2021 shall be the amount otherwise determined 
          under such subsection for 2021, taking into account the 
          application of the previous paragraphs, increased by $25; and
              ``(6) for any subsequent year shall be the amount otherwise 
          determined under such subsection for such year, taking into 
          account the application of the previous paragraphs and this 
          paragraph for previous years.''.
  
                          Subtitle B--Agriculture
  
  SEC. 211. CAP ON OVERALL RATE OF RETURN FOR CROP INSURANCE PROVIDERS.
  
      Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) 
  is amended--
              (1) by designating paragraph (3) as subparagraph (A) (and 
          adjusting the margin two ems to the right);
              (2) by inserting before subparagraph (A) (as so designated) 
          the following:
              ``(3) Risk.--''; and
              (3) by adding at the end the following new subparagraph:
                      ``(B) Cap on overall rate of return.--The target 
                  rate of return for all the companies combined for the 
                  2014 and subsequent reinsurance years shall be 12.8 
                  percent of retained premium.''.
  
  SEC. 212. CAP ON REIMBURSEMENTS FOR ADMINISTRATIVE AND OPERATING 
                EXPENSES OF CROP INSURANCE PROVIDERS.
  
      Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 
  1508(k)(4)) is amended by adding at the end the following new 
  subparagraph:
                      ``(G) Additional cap on reimbursements.--
                  Notwithstanding subparagraphs (A) through (F), total 
                  reimbursements for administrative and operating costs 
                  for the 2014 insurance year for all types of policies 
                  and plans of insurance shall not exceed $935,000,000. 
                  For each subsequent insurance year, the dollar amount 
                  in effect pursuant to the preceding sentence shall be 
                  increased by the same inflation factor as established 
                  for the administrative and operating costs cap in the 
                  2011 Standard Reinsurance Agreement.''.
  
  SEC. 213. REDUCTION IN SHARE OF CROP INSURANCE PREMIUM PAID BY FEDERAL 
                CROP INSURANCE CORPORATION.
  
      (a) Catastrophic Risk Protection.--Section 508(d)(2)(A) of the 
  Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)(A)) is amended by 
  striking ``sufficient to cover anticipated losses and a reasonable 
  reserve'' and inserting ``for all crops for which catastrophic risk 
  protection coverage is available shall be reduced by the percentage 
  equal to the difference between the average loss ratio for such crop 
  and 100 percent, plus a reasonable reserve''.
      (b) Additional Coverage.--Section 508(e)(2) of the Federal Crop 
  Insurance Act (7 U.S.C. 1508(e)(2)) is amended--
              (1) in subparagraph (B)(i), by striking ``67'' and 
          inserting ``64'';
              (2) in subparagraph (C)(i), by striking ``64'' and 
          inserting ``61'';
              (3) in subparagraph (D)(i), by striking ``59'' and 
          inserting ``56''; and
              (4) in subparagraph (E)(i), by striking ``55'' and 
          inserting ``52''.
      (c) Enterprise and Whole Farm Units.--Section 508(e)(5)(C) of the 
  Federal Crop Insurance Act (7 U.S.C. 1508(e)(5)(C)) is amended by 
  striking ``80'' and inserting ``77''.
      (d) Area Revenue Plans.--Section 508(e)(6) of the Federal Crop 
  Insurance Act (7 U.S.C. 1508(e)(6)) is amended--
              (1) in subparagraph (A)(i), by striking ``59'' and 
          inserting ``56''; and
              (2) in subparagraph (B)(i), by striking ``55'' and 
          inserting ``52''.
      (e) Area Yield Plans.--Section 508(e)(7) of the Federal Crop 
  Insurance Act (7 U.S.C. 1508) is amended--
              (1) in subparagraph (A)(i), by striking ``59'' and 
          inserting ``56'';
              (2) in subparagraph (B)(i), by striking ``55'' and 
          inserting ``52''; and
              (3) in subparagraph (C)(i), by striking ``51'' and 
          inserting ``48''.
      (f) Effective Date.--The amendments made by this section shall 
  apply with respect to the first contract change date for a contract 
  under the Federal Crop Insurance Act occurring after the date of the 
  enactment of this Act.
  
                       Subtitle C--Federal Retirement
  
  SEC. 221. RETIREMENT CONTRIBUTIONS.
  
      (a) Civil Service Retirement System.--
              (1) Individual contributions.--Section 8334(c) of title 5, 
          United States Code, is amended--
                      (A) by striking ``(c) Each'' and inserting ``(c)(1) 
                  Each''; and
                      (B) by adding at the end the following:
      ``(2) Notwithstanding any other provision of this subsection, the 
  applicable percentage of basic pay under this subsection for civilian 
  service by an employee or Member shall, for purposes of computing an 
  amount--
              ``(A) for a period in calendar year 2014, be equal to the 
          applicable percentage under this subsection for calendar year 
          2013 plus an additional 0.4 percentage point;
              ``(B) for a period in calendar year 2015, be equal to the 
          applicable percentage under this subsection for calendar year 
          2014 (as determined under subparagraph (A)) plus an additional 
          0.4 percentage point;
              ``(C) for a period in calendar year 2016, be equal to the 
          applicable percentage under this subsection for calendar year 
          2015 (as determined under subparagraph (B)) plus an additional 
          0.4 percentage point; and
              ``(D) for a period in any calendar year after 2016, be 
          equal to the applicable percentage under this subsection for 
          calendar year 2015 (as determined under subparagraph (C)).
      ``(3)(A) Notwithstanding subsection (a)(2), any excess 
  contributions under subsection (a)(1)(A) (including the portion of any 
  deposit under this subsection allocable to excess contributions) shall, 
  if made by an employee of the United States Postal Service or the 
  Postal Regulatory Commission, be deposited to the credit of the Postal 
  Service Fund under section 2003 of title 39, rather than the Civil 
  Service Retirement and Disability Fund.
      ``(B) For purposes of this paragraph, the term `excess 
  contributions', as used with respect to contributions made under 
  subsection (a)(1)(A) by an employee of the United States Postal Service 
  or the Postal Regulatory Commission, means the amount by which--
              ``(i) deductions from basic pay of such employee which are 
          made under subsection (a)(1)(A), exceed
              ``(ii) deductions from basic pay of such employee which 
          would have been so made if paragraph (2) had not been 
          enacted.''.
              (2) Government contributions.--Section 8334(a)(1)(B) of 
          title 5, United States Code, is amended--
                      (A) in clause (i), by striking ``Except as provided 
                  in clause (ii),'' and inserting ``Except as provided in 
                  clause (ii) or (iii),''; and
                      (B) by adding at the end the following:
      ``(iii) The amount to be contributed under clause (i) shall, with 
  respect to a period in any year beginning after December 31, 2013, be 
  equal to--
              ``(I) the amount which would otherwise apply under clause 
          (i) with respect to such period, reduced by
              ``(II) the amount by which, with respect to such period, 
          the withholding under subparagraph (A) exceeds the amount which 
          would otherwise have been withheld from the basic pay of the 
          employee or elected official involved under subparagraph (A) 
          based on the percentage applicable under subsection (c) for 
          calendar year 2013.''.
      (b) Individual Contributions Under the Federal Employees' 
  Retirement System.--Section 8422(a)(3) of title 5, United States Code, 
  is amended--
              (1) by redesignating subparagraph (B) as subparagraph (C); 
          and
              (2) by inserting after subparagraph (A) the following:
      ``(B) Notwithstanding any other provision of this paragraph, the 
  applicable percentage under this paragraph for civilian service by 
  employees or Members other than revised annuity employees shall--
              ``(i) for a period in calendar year 2014, be equal to the 
          applicable percentage under this paragraph for calendar year 
          2013 plus an additional 0.4 percentage point;
              ``(ii) for a period in calendar year 2015, be equal to the 
          applicable percentage under this paragraph for calendar year 
          2014 (as determined under clause (i)) plus an additional 0.4 
          percentage point;
              ``(iii) for a period in calendar year 2016, be equal to the 
          applicable percentage under this paragraph for calendar year 
          2015 (as determined under clause (ii)) plus an additional 0.4 
          percentage point; and
              ``(iv) for a period in any calendar year after 2016, be 
          equal to the applicable percentage under this paragraph for 
          calendar year 2016 (as determined under clause (iii)).''.
  
  SEC. 222. ANNUITY SUPPLEMENT.
  
      Section 8421(a) of title 5, United States Code, is amended--
              (1) in paragraph (1), by striking ``paragraph (3)'' and 
          inserting ``paragraphs (3) and (4)'';
              (2) in paragraph (2), by striking ``paragraph (3)'' and 
          inserting ``paragraphs (3) and (4)''; and
              (3) by adding at the end the following:
      ``(4) No annuity supplement under this section shall be payable in 
  the case of an individual who first becomes subject to this chapter 
  after December 31, 2013.''.
  
  SEC. 223. USE OF CHAINED CONSUMER PRICE INDEX.
  
      (a) In General.--Paragraph (15) of section 8331 of title 5, United 
  States Code, is amended to read as follows:
              ``(15) the term `price index' means the Chained Consumer 
          Price Index (all items-all urban consumers) published monthly 
          by the Bureau of Labor Statistics;''.
      (b) Effective Date.--The amendment made by subsection (a) shall 
  take effect on January 1, 2015, and shall apply with respect to any 
  cost-of-living adjustment taking effect under section 8340 or 8462 of 
  title 5, United States Code, on or after that date.
  
                          Subtitle D--Chained CPI
  
  SEC. 231. CHANGE IN INDEX USED TO CALCULATE SOCIAL SECURITY COST-OF-
                LIVING ADJUSTMENTS.
  
      (a) In General.--Section 215(i)(1) of the Social Security Act (42 
  U.S.C. 415(i)(1)) is amended--
              (1) in subparagraph (G), by striking the period at the end 
          and inserting ``; and''; and
              (2) by adding at the end the following new subparagraph:
              ``(H) the term `Consumer Price Index' means the Chained 
          Consumer Price Index for All Urban Consumers (C-CPI-U, as 
          published in its initial version by the Bureau of Labor 
          Statistics of the Department of Labor).''.
      (b) Application to Pre-1979 Law.--
              (1) In general.--Section 215(i)(1) of the Social Security 
          Act as in effect in December 1978, and as applied in certain 
          cases under the provisions of such Act as in effect after 
          December 1978, is amended--
                      (A) in subparagraph (C), by striking the period at 
                  the end and inserting ``; and''; and
                      (B) by adding at the end the following new 
                  subparagraph:
              ``(D) the term `Consumer Price Index' means the Chained 
          Consumer Price Index for All Urban Consumers (C-CPI-U, as 
          published in its initial version by the Bureau of Labor 
          Statistics of the Department of Labor).''.
              (2) Conforming change.--Section 215(i)(4) of the Social 
          Security Act (42 U.S.C. 415(i)(4)) is amended by inserting 
          ``and by section 231 of the Provide for the Common Defense Act 
          of 2013'' after ``1986''.
      (c) Effective Date.--The amendments made by this section shall 
  apply with respect to adjustments effective with or after December 
  2014.
target: Provide for the Common Defense Act of 2013 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to nullify the presidential sequestration order issued for the revised security category (discretionary appropriations in budget function 050) for FY2014-FY2015 to enforce a specified budget goal. Establishes the discretionary spending limit for the revised security category for each such fiscal year. Amends part B (Supplemental Medical Insurance) of title XVIII (Medicare) of the Social Security Act (SSA) with respect to adjustments to the calculation of Medicare parts B and D (Voluntary Prescription Drug Benefit Program) premiums for high income beneficiaries for 2017 and subsequent years. Reduces the monthly amount of the Medicare parts B and D premium subsidies (with a corresponding increase in the monthly premium amount) for individuals whose modified adjusted gross income exceeds the threshold amount by specified applicable percentages for modified adjusted gross incomes in certain ranges starting at $85,000 (40%) and finally exceeding $214,000 (90%). Revises the temporary adjustment to income thresholds used to calculate premiums between January 1, 2011, and December 31, 2019, to extend it through December 31 of the first year after 2019 after the year in which at least 25% of individuals enrolled in the Medicare parts B and D are subject to a reduction to the monthly amount of the applicable premium subsidy. Increases by $25 per year the part B deductible for new enrollees after January 1, 2017, and subsequent years. Amends the Federal Crop Insurance Act to establish caps beginning with FY2014 for: (1) combined crop insurance provider rates of return, and (2) reimbursements for crop insurance provider administrative and operating expenses. Reduces according to a specified formula the crop insurance premium for catastrophic risk protection coverage. Reduces the portion of premium paid by the Federal Crop Insurance Corporation (premium subsidies) for the following coverages: (1) additional insurance, (2) enterprise and whole farm units, (3) area revenue plans, and (4) area yield plans. Requires an additional .4% increase per year, beginning in calendar 2014, in the percentage of basic pay that federal employees or Members of Congress must contribute to their pension plans under the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS). Reduces government contributions to CSRS and FERS by the amount of such increased employee contributions.  Eliminates annuity supplements for federal employees hired after 2013.  Revises the definition of &ldquo;price index,&rdquo; for purposes of cost-of-living adjustments to federal employee benefits, to mean the Chained Consumer Price Index for All Urban Consumers (Chained CPI) instead of the Consumer Price Index. Amends SSA title II (Old Age, Surivors, and Disability Insurance) (OASDI) to require the use of the Chained CPI for calculation of Social Security cost-of-living adjustments.
feat_title: Provide for the Common Defense Act of 2013