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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5306 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5306

To protect our Social Security system and improve benefits for current 
                        and future generations.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 2014

  Mr. Larson of Connecticut introduced the following bill; which was 
  referred to the Committee on Ways and Means, and in addition to the 
Committees on Education and the Workforce and the Budget, for a period 
    to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
To protect our Social Security system and improve benefits for current 
                        and future generations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security 2100 Act''.

                    TITLE I--STRENGTHENING BENEFITS

SEC. 101. ACROSS-THE-BOARD BENEFIT INCREASE.

    (a) In General.--Section 215(a)(1)(A)(i) of the Social Security Act 
(42 U.S.C. 415(a)(1)(A)(i)) is amended by striking ``90 percent'' and 
inserting ``93 percent''.
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply with respect to monthly insurance benefits payable for 
        any month after December 2014.
            (2) Recomputation of primary insurance amounts.--
        Notwithstanding section 215(f) of the Social Security Act, the 
        Commissioner of Social Security shall recompute primary 
        insurance amounts originally computed for months prior to 
        January 2015 to the extent necessary to carry out the 
        amendments made by this section.

SEC. 102. COMPUTATION OF COST-OF-LIVING INCREASES.

    (a) In General.--Section 215(i)(1) of the Social Security Act (42 
U.S.C. 415(i)(1)) is amended by adding at the end the following new 
subparagraph:
            ``(H) the term `Consumer Price Index' means the Consumer 
        Price Index for Elderly Consumers (CPI-E, as published 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 by adding at the end the following 
        new subparagraph:
            ``(D) the term `Consumer Price Index' means the Consumer 
        Price Index for Elderly Consumers (CPI-E, as published 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 102 of the Social Security 2100 Act'' after 
        ``1986''.
    (c) No Effect on Adjustments Under Other Laws.--Section 215(i) of 
the Social Security Act (42 U.S.C. 415(i)) is amended by adding at the 
end the following:
    ``(6) Any provision of law (other than in this title, title VIII, 
or title XVI) which provides for adjustment of an amount based on a 
change in benefit amounts resulting from a determination made under 
this subsection shall be applied and administered without regard to the 
amendments made by section 102 of the Social Security 2100 Act.''.
    (d) Publication of Consumer Price Index for Elderly Consumers.--The 
Bureau of Labor Statistics of the Department of Labor shall prepare and 
publish the index authorized by section 191 of the Older Americans 
Amendments Act of 1987 (29 U.S.C. 2 note) for each calendar month, 
beginning with July of the calendar year following the calendar year in 
which this Act is enacted, and such index shall be known as the 
``Consumer Price Index for Elderly Consumers''.
    (e) Effective Date.--The amendments made by subsection (a) shall 
apply to determinations made with respect to cost-of-living computation 
quarters (as defined in section 215(i)(1)(B) of the Social Security Act 
(42 U.S.C. 415(i)(1)(B))) ending on or after September 30 of the second 
calendar year following the calendar year in which this Act is enacted.

SEC. 103. INCREASE IN MINIMUM BENEFIT FOR LIFETIME LOW EARNERS BASED ON 
              YEARS IN THE WORKFORCE.

    (a) In General.--Section 215(a)(1) of the Social Security Act (42 
U.S.C. 415(a)(1)) is amended--
            (1) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (2) by inserting after subparagraph (C) the following new 
        subparagraph:
    ``(D)(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 2014, no primary 
insurance amount computed under subparagraph (A) may be less than the 
greater of--
            ``(I) the minimum monthly amount computed under 
        subparagraph (C); or
            ``(II) in the case of an individual who has more than 10 
        years of work (as defined in clause (iv)(I)), the alternative 
        minimum amount determined under clause (ii).
    ``(ii)(I) The alternative minimum amount determined under this 
clause is the applicable percentage of \1/12\ of the annual dollar 
amount determined under clause (iii) for the year in which the amount 
is determined.
    ``(II) For purposes of subclause (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 years                                 The applicable
  of work is:                                            percentage is:
        11...........................................     6.25 percent 
        12...........................................    12.50 percent 
        13...........................................    18.75 percent 
        14...........................................    25.00 percent 
        15...........................................    31.25 percent 
        16...........................................    37.50 percent 
        17...........................................    43.75 percent 
        18...........................................    50.00 percent 
        19...........................................    56.25 percent 
        20...........................................    62.50 percent 
        21...........................................    68.75 percent 
        22...........................................    75.00 percent 
        23...........................................    81.25 percent 
        24...........................................    87.50 percent 
        25...........................................    93.75 percent 
        26...........................................   100.00 percent 
        27...........................................   106.25 percent 
        28...........................................   112.50 percent 
        29...........................................   118.75 percent 
        30 or more...................................   125.00 percent.
    ``(iii) The annual dollar amount determined under this clause is--
            ``(I) for calendar year 2015, the poverty guideline for 
        2014; and
            ``(II) for any calendar year after 2015, the annual dollar 
        amount for 2015 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 2013.
    ``(iv) For purposes of this subparagraph--
            ``(I) the term `year of work' means, with respect to an 
        individual, a year to which 4 quarters of coverage have been 
        credited based on such individual's wages and self-employment 
        income; and
            ``(II) the term `poverty guideline for 2014' means the 
        annual poverty guideline for 2014 (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.''.
    (b) Recomputation.--Notwithstanding section 215(f)(1) of the Social 
Security Act, the Commissioner of Social Security shall recompute 
primary insurance amounts originally computed for months prior to 
November 2014 to the extent necessary to carry out the amendments made 
by this section.
    (c) Conforming Amendment.--Section 209(k)(1) of such Act (42 U.S.C. 
409(k)(1)) is amended by inserting ``215(a)(1)(E),'' after 
``215(a)(1)(D),''.

SEC. 104. INCREASE IN THRESHOLD AMOUNTS AND RATE FOR INCLUSION OF 
              SOCIAL SECURITY BENEFITS IN INCOME.

    (a) In General.--Subsection (a) of section 86 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(a) In General.--Gross income for the taxable year of any 
taxpayer described in subsection (b) (notwithstanding section 207 of 
the Social Security Act) includes social security benefits in an amount 
equal to the lesser of--
            ``(1) 85 percent of the social security benefits received 
        during the taxable year, or
            ``(2) one-half of the excess described in subsection 
        (b)(1).''.
    (b) Base Amount.--Subsection (c) of section 86 of such Code is 
amended to read as follows:
    ``(c) Base Amount.--For purposes of this section, the term `base 
amount' means--
            ``(1) except as otherwise provided in this paragraph, 
        $50,000,
            ``(2) $100,000 in the case of a joint return, and
            ``(3) zero in the case of a taxpayer who--
                    ``(A) is married as of the close of the taxable 
                year (within the meaning of section 7703) but does not 
                file a joint return for such year, and
                    ``(B) does not live apart from his spouse at all 
                times during the taxable year.''.
    (c) Hospital Insurance Trust Fund Held Harmless.--Section 121(e)(1) 
of the Social Security Amendments of 1986 (42 U.S.C. 401 note) is 
amended by adding at the end the following new subparagraph:
            ``(C) The amounts appropriated to the hospital insurance 
        trust fund by subparagraph (B) shall be determined, and 
        transferred from the general fund, at such times and in such 
        manner so as to replicate, to the extent possible, the 
        appropriations and transfers which would have occurred with 
        respect to such trust fund had subsections (a) and (b) of 
        section 104 of the Social Security 2100 Act not been 
        enacted.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

                 TITLE II--STRENGTHENING THE TRUST FUND

SEC. 201. DETERMINATION OF WAGES AND SELF-EMPLOYMENT INCOME ABOVE 
              CONTRIBUTION AND BENEFIT BASE AFTER 2013.

    (a) Determination of Wages Above Contribution and Benefit Base 
After 2014.--
            (1) Amendments to the internal revenue code.--
                    (A) In general.--Paragraph (1) of section 3121(a) 
                of the Internal Revenue Code of 1986 is amended by 
                inserting after ``such calendar year.'' the following: 
                ``The preceding sentence shall apply only to calendar 
                years for which the contribution and benefit base (as 
                so determined) is less than $400,000, and, for such 
                calendar years, only to the extent remuneration paid to 
                such employee by such employer with respect to 
                employment does not exceed $400,000.''.
                    (B) Conforming amendment.--Paragraph (1) of section 
                3121(a) of the Internal Revenue Code of 1986 is amended 
                by striking ``Act) to'' and inserting ``Act), or in 
                excess of $400,000, to''.
            (2) Amendment to the social security act.--Section 
        209(a)(1)(I) of the Social Security Act (42 U.S.C. 
        409(a)(1)(I)) is amended by inserting before the semicolon at 
        the end the following: ``except that this subparagraph shall 
        apply only to calendar years for which the contribution and 
        benefit base (as so determined) is less than $400,000, and, for 
        such calendar years, only to the extent remuneration paid to 
        such employee by such employer with respect to employment does 
        not exceed $400,000''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to remuneration paid in calendar years 
        after 2014.
    (b) Determination of Self-Employment Income Above Contribution and 
Benefit Base After 2014.--
            (1) Amendments to the internal revenue code.--
                    (A) In general.--Paragraph (1) of section 1402(b) 
                of the Internal Revenue Code of 1986 is amended to read 
                as follows:
            ``(1) in the case of the tax imposed by section 1401(a), an 
        amount equal to--
                    ``(A) $400,000, reduced (but not below zero) by
                    ``(B) the sum of--
                            ``(i) the part of the net earnings from 
                        self-employment (if any) which is not in excess 
                        of--
                                    ``(I) the amount equal to the 
                                contribution and benefit base (as 
                                determined under section 230 of the 
                                Social Security Act) which is effective 
                                for the calendar year in which such 
                                taxable year begins, minus
                                    ``(II) the amount of the wages paid 
                                to such individual during such taxable 
                                year, plus
                            ``(ii) the amount of the wages paid to such 
                        individual during such taxable year which is in 
                        excess of the amount in clause (i)(I); or''.
                    (B) Phaseout.--Subsection (b) of section 1402 of 
                the Internal Revenue Code of 1986 is amended by adding 
                at the end the following: ``Paragraph (1) shall apply 
                only to taxable years beginning in calendar years for 
                which the contribution and benefit base (as determined 
                under section 230 of the Social Security Act) is less 
                than $400,000.''.
            (2) Amendments to the social security act.--
                    (A) In general.--Section 211(b)(1) of the Social 
                Security Act (42 U.S.C. 411(b)) is amended--
                            (i) in subparagraph (I)--
                                    (I) by inserting ``and before 
                                2014'' after ``1974''; and
                                    (II) by striking ``or'' at the end; 
                                and
                            (ii) by adding at the end the following:
                    ``(J) For any taxable year beginning in any 
                calendar year after 2014, an amount equal to--
                            ``(i) $400,000, reduced (but not below 
                        zero) by
                            ``(ii) the sum of--
                                    ``(I) the part of the net earnings 
                                from self-employment (if any) which is 
                                not in excess of--
                                            ``(aa) the amount equal to 
                                        the contribution and benefit 
                                        base (as determined under 
                                        section 230) which is effective 
                                        for the calendar year in which 
                                        such taxable year begins, minus
                                            ``(bb) the amount of the 
                                        wages paid to such individual 
                                        during such taxable year, plus
                                    ``(II) the amount of the wages paid 
                                to such individual during such taxable 
                                year which is in excess of the amount 
                                in subclause (I)(aa); or''.
                    (B) Phaseout.--Section 211(b) of the Social 
                Security Act (42 U.S.C. 411(b)) is amended by adding at 
                the end the following: ``Paragraph (1) shall apply only 
                to taxable years beginning in calendar years for which 
                the contribution and benefit base (as determined under 
                section 230) is less than $400,000.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to net earnings from self-employment derived, and 
        remuneration paid, in calendar years after 2014.

SEC. 202. INCLUSION OF EARNINGS OVER $400,000 IN SOCIAL SECURITY 
              BENEFIT FORMULA.

    (a) Inclusion of Earnings Over $400,000 in Determination of Primary 
Insurance Amounts.--Section 215(a)(1)(A) of the Social Security Act (42 
U.S.C. 415(a)(1)(A)) is amended--
            (1) in clause (ii), by striking ``and'' at the end;
            (2) in clause (iii), by inserting ``and'' at the end; and
            (3) by inserting after clause (iii) the following:
            ``(iv) 2 percent of the individual's excess average indexed 
        monthly earnings (as defined in subsection (b)(5)(A)).''.
    (b) Definition of Excess Average Indexed Monthly Earnings.--Section 
215(b) of the Social Security Act (42 U.S.C. 415(b)) is amended--
            (1) by striking ``wages'' and ``self-employment income'' 
        each place such terms appear and inserting ``basic wages'' and 
        ``basic self-employment income'', respectively; and
            (2) by adding at the end the following:
    ``(5)(A) An individual's excess average indexed monthly earnings 
shall be equal to the amount of the individual's average indexed 
monthly earnings that would be determined under this subsection by 
substituting `excess wages' for `basic wages' and `excess self-
employment income' for `basic self-employment income' each place such 
terms appear in this subsection (except in this paragraph).
    ``(B) For purposes of this subsection--
            ``(i) the term `basic wages' means that portion of the 
        wages of an individual paid in a year that does not exceed the 
        contribution and benefit base for the year;
            ``(ii) the term `basic self-employment income' means that 
        portion of the self-employment income of an individual credited 
        to a year that does not exceed an amount equal to the 
        contribution and benefit base for the year minus the amount of 
        the wages paid to the individual in the year;
            ``(iii) the term `excess wages' means that portion of the 
        wages of an individual paid in a year after 2013 in excess of 
        the higher of $400,000 or the contribution and benefit base for 
        the year; and
            ``(iv) the term `excess self-employment income' means that 
        portion of the self-employment income of an individual credited 
        to a year after 2014 in excess of the higher of $400,000 or 
        such contribution and benefit base.''.
    (c) Conforming Amendment.--Section 215(e)(1) of the Social Security 
Act (42 U.S.C. 415(e)(1)) is amended by inserting ``and before 2015'' 
after ``1974''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to individuals who initially become eligible (within 
the meaning of section 215(a)(3)(B) of the Social Security Act) for 
old-age or disability insurance benefits under title II of the Social 
Security Act, or who die (before becoming eligible for such benefits), 
in any calendar year after 2014.

SEC. 203. INCREASE IN SOCIAL SECURITY TAX RATE.

    (a) Tax on Employees.--The table in subsection (a) of section 3101 
of the Internal Revenue Code of 1986 is amended to read as follows:

``In cases of wages                                     The rate of tax
  received during:                                            shall be:
        1990 or any calendar year before 2018........     6.20 percent 
        2018.........................................     6.25 percent 
        2019.........................................     6.30 percent 
        2020.........................................     6.35 percent 
        2021.........................................     6.40 percent 
        2022.........................................     6.45 percent 
        2023.........................................     6.50 percent 
        2024.........................................     6.55 percent 
        2025.........................................     6.60 percent 
        2026.........................................     6.65 percent 
        2027.........................................     6.70 percent 
        2028.........................................     6.75 percent 
        2029.........................................     6.80 percent 
        2030.........................................     6.85 percent 
        2031.........................................     6.90 percent 
        2032.........................................     6.95 percent 
        2033.........................................     7.00 percent 
        2034.........................................     7.05 percent 
        2035.........................................     7.10 percent 
        2036.........................................     7.15 percent 
        2037 or thereafter...........................  7.20 percent.''.
    (b) Tax on Employers.--The table in subsection (a) of section 3111 
of the Internal Revenue Code of 1986 is amended to read as follows:

``In cases of wages                                     The rate of tax
  received during:                                            shall be:
        1990 or any calendar year before 2018........     6.20 percent 
        2018.........................................     6.25 percent 
        2019.........................................     6.30 percent 
        2020.........................................     6.35 percent 
        2021.........................................     6.40 percent 
        2022.........................................     6.45 percent 
        2023.........................................     6.50 percent 
        2024.........................................     6.55 percent 
        2025.........................................     6.60 percent 
        2026.........................................     6.65 percent 
        2027.........................................     6.70 percent 
        2028.........................................     6.75 percent 
        2029.........................................     6.80 percent 
        2030.........................................     6.85 percent 
        2031.........................................     6.90 percent 
        2032.........................................     6.95 percent 
        2033.........................................     7.00 percent 
        2034.........................................     7.05 percent 
        2035.........................................     7.10 percent 
        2036.........................................     7.15 percent 
        2037 or thereafter...........................  7.20 percent.''.
    (c) Self-Employment Income.--The table in subsection (a) of section 
1401 of the Internal Revenue Code of 1986 is amended to read as 
follows:

``In cases of wages                                     The rate of tax
  received during:                                            shall be:
        1990 or any calendar year before 2018........    12.40 percent 
        2018.........................................    12.50 percent 
        2019.........................................    12.60 percent 
        2020.........................................    12.70 percent 
        2021.........................................    12.80 percent 
        2022.........................................    12.90 percent 
        2023.........................................    13.00 percent 
        2024.........................................    13.10 percent 
        2025.........................................    13.20 percent 
        2026.........................................    13.30 percent 
        2027.........................................    13.40 percent 
        2028.........................................    13.50 percent 
        2029.........................................    13.60 percent 
        2030.........................................    13.70 percent 
        2031.........................................    13.80 percent 
        2032.........................................    13.90 percent 
        2033.........................................    14.00 percent 
        2034.........................................    14.10 percent 
        2035.........................................    14.20 percent 
        2036.........................................    14.30 percent 
        2037 or thereafter........................... 14.40 percent.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to remuneration received, and taxable years beginning, after 
December 31, 2014.

SEC. 204. INVESTMENT OF THE SOCIAL SECURITY TRUST FUNDS.

    (a) In General.--Section 201(d) of the Social Security Act (42 
U.S.C. 401(d)) is amended--
            (1) by striking ``It shall be the duty'' and inserting 
        ``(1) It shall be the duty'';
            (2) by striking ``Such investments may be made only'' and 
        inserting ``Except as provided in paragraph (2), such 
        investments may be made only''; and
            (3) by adding at the end the following:
    ``(2)(A) The Independent Social Security Investment Oversight Board 
shall establish, as provided in section 235(a)--
            ``(i) a Common Stock Old-Age Investment Fund in the Federal 
        Old-Age and Survivors Insurance Trust Fund; and
            ``(ii) a Common Stock Disability Investment Fund in the 
        Federal Disability Insurance Trust Fund.
    ``(B)(i) In any calendar year after 2015 in which the OASDI trust 
fund ratio (as defined in subsection (l)(3)(B)(iii)) is projected to be 
below 150 percent in the 75th year after such year, the Managing 
Trustee shall transfer amounts from the Federal Old-Age and Survivors 
Insurance Trust Fund or the Federal Disability Insurance Trust Fund 
into the Common Stock Old-Age Investment Fund or the Common Stock 
Disability Investment Fund, respectively, in accordance with the 
policies and requirements set forth in section 714. Amounts so 
transferred shall be the minimum amounts which would result in a common 
stock ratio for such year that is 2.5 percentage points greater than 
the common stock ratio for the previous year, except that the common 
stock ratio may not exceed 25 percent for any year.
    ``(ii) In any calendar year after 2015 in which the OASDI trust 
fund ratio (as defined in subsection (l)(3)(B)(iii)) is projected to 
equal or exceed 150 percent in the 75th year after such year, the 
Managing Trustee shall take appropriate actions to reduce the common 
stock ratio for such year by the lesser of--
            ``(I) the minimum reduction necessary to result in an OASDI 
        trust fund ratio (as so defined) for such year that does not 
        exceed 150 percent in the 75th year after such year; or
            ``(II) 2.5 percentage points.
    ``(iii) For purposes of this subparagraph, the term `common stock 
ratio' means, with respect to a calendar year, the aggregate percentage 
of the total amounts at the end of such calendar year within each of 
the Federal Old-Age and Survivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund that is maintained in the Common Stock 
Old-Age Investment Fund or the Common Stock Disability Investment Fund, 
respectively.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to fiscal years beginning on or after October 1, 
2015.

SEC. 205. RULES GOVERNING INVESTMENT OF TRUST FUNDS IN COMMON STOCK.

    Title II of the Social Security Act (42 U.S.C. 401 et seq.) is 
amended by adding at the end the following new section:

              ``investment of trust funds in common stock

    ``Sec. 235.  (a) Common Stock Investment Funds.--
            ``(1) Selection of index.--The Independent Social Security 
        Investment Oversight Board shall select, for purposes of 
        investment of amounts held in a Common Stock Investment Fund, 
        an index which is a commonly recognized index comprised of 
        common stock the aggregate market value of which is a 
        reasonably complete representation of the United States equity 
        markets.
            ``(2) Portfolio design.--Amounts held in a Common Stock 
        Investment Fund shall be invested in a portfolio designed to 
        replicate the performance of the index selected under paragraph 
        (1). The portfolio shall be designed such that, to the extent 
        practicable, the percentage of the balance in such Account that 
        is invested in each stock is the same as the percentage 
        determined by dividing the aggregate market value of all shares 
        of that stock by the aggregate market value of all shares of 
        all stocks included in such index.
    ``(b) No Voting Rights in Securities.--The Independent Social 
Security Investment Oversight Board and the Managing Trustee of the 
Trust Funds may not exercise voting rights associated with the 
ownership of securities by the Trust Funds.
    ``(c) Engagement of Qualified Public Accountant.--
            ``(1) In general.--The Independent Social Security 
        Investment Oversight Board shall annually engage, on behalf of 
        the Trust Funds, an independent qualified public accountant, 
        who shall conduct an examination of all accounts and other 
        books and records maintained in the administration of this 
        section as the public accountant considers necessary to enable 
        the public accountant to make the determination required by 
        paragraph (2). The examination shall be conducted in accordance 
        with generally accepted auditing standards and shall involve 
        such tests of the accounts, books, and records as the public 
        accountant considers necessary.
            ``(2) Examination and report.--The public accountant 
        conducting an examination under paragraph (1) shall determine 
        whether the accounts, books, and records referred to in 
        paragraph (1) have been maintained in conformity with generally 
        accepted accounting principles applied on a basis consistent 
        with the manner in which such principles were applied during 
        the examination conducted under paragraph (1) during each 
        preceding year. The public accountant shall transmit to the 
        Board, the Comptroller General of the United States, and each 
        House of the Congress a report on his examination, including 
        his determination under this paragraph. The Board shall make 
        publicly available, by posting on the Internet and such other 
        means as the Board may determine, each report received under 
        the preceding sentence.
            ``(3) Definition.--For the purposes of this subsection, the 
        term `qualified public accountant' shall have the same meaning 
        as is provided in section 103(a)(3)(D) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 
        1023(a)(3)(D)).
    ``(d) Fiduciary Responsibilities.--
            ``(1) In general.--Under regulations of the Secretary of 
        Labor, the provisions of sections 8477 and 8478 of title 5, 
        United States Code, shall apply in connection with the amounts 
        maintained in a Common Stock Investment Fund in the same manner 
        and to the same extent as such provisions apply in connection 
        with the Thrift Savings Fund.
            ``(2) Investigative authority.--Any authority available to 
        the Secretary of Labor under section 504 of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1134) is 
        hereby made available to the Secretary of Labor, and any 
        officer designated by the Secretary of Labor, to determine 
        whether any person has violated, or is about to violate, any 
        provision applicable under paragraph (1).
            ``(3) Exculpatory provisions; insurance.--
                    ``(A) In general.--Any provision in an agreement or 
                instrument which purports to relieve a fiduciary from 
                responsibility or liability for any responsibility, 
                obligation, or duty under this section shall be void.
                    ``(B) Insurance.--Amounts held in the Trust Funds 
                available for administrative expenses shall be 
                available and may be used at the discretion of the 
                Independent Social Security Investment Oversight Board 
                to purchase insurance to cover potential liability of 
                persons who serve in a fiduciary capacity with respect 
                to amounts maintained in a Common Stock Investment 
                Fund, without regard to whether a policy of insurance 
                permits recourse by the insurer against the fiduciary 
                in the case of a breach of a fiduciary obligation.
    ``(e) Definition of Common Stock Investment Fund.--In this section, 
the term `Common Stock Investment Fund' means the Common Stock Old-Age 
Investment Fund of the Federal Old-Age and Survivors Insurance Trust 
Fund and the Common Stock Disability Investment Fund of the Federal 
Disability Insurance Trust Fund.''.

SEC. 206. ESTABLISHMENT OF INDEPENDENT SOCIAL SECURITY INVESTMENT 
              OVERSIGHT BOARD.

    Title VII of the Social Security Act (42 U.S.C. 901 et seq.) is 
amended by adding at the end the following:

        ``independent social security investment oversight board

    ``Sec. 714.  (a) There is established in the Social Security 
Administration an Independent Social Security Investment Oversight 
Board.
    ``(b) The Board shall be composed of a Chairman and four additional 
members. The Chairman and each additional member shall be appointed by 
the President, by and with the advice and consent of the Senate.
    ``(c) Members of the Board shall have substantial experience, 
training, and expertise in the management of financial investments and 
service in a fiduciary capacity.
    ``(d)(1) A member of the Board shall be appointed for a term of 10 
years, except that of the members first appointed--
            ``(A) the member appointed as Chairman shall be appointed 
        for a term of 10 years;
            ``(B) one member shall be appointed for a term of 8 years;
            ``(C) one member shall be appointed for a term of 6 years;
            ``(D) one member shall be appointed for a term of 4 years; 
        and
            ``(E) one member shall be appointed for a term of 2 years, 
        as designated by the President at the time of appointment.
    ``(2)(A) A vacancy on the Board shall be filled in the manner in 
which the original appointment was made and shall be subject to any 
conditions which applied with respect to the original appointment.
    ``(B) An individual chosen to fill a vacancy shall be appointed for 
the unexpired term of the member replaced.
    ``(C) The term of any member shall not expire before the date on 
which the member's successor takes office.
    ``(3) An individual appointed as a member of the Board may be 
removed from office only pursuant to a finding by the President of 
neglect of duty or malfeasance in office.
    ``(e) The member of the Board designated by the President as 
Chairman shall serve as Chairman for a term of 4 years (or until the 
expiration of his term as member of the Board, if earlier). A member 
serving as Chairman may be reappointed as Chairman.
    ``(f) The Board shall--
            ``(1) establish policies for the investment and management 
        of the Common Stock Old-Age Investment Fund and the Common 
        Stock Disability Investment Fund described in section 
        201(d)(2), including policies to provide for--
                    ``(A) prudent investments suitable for accumulating 
                funds for payment of monthly insurance benefits under 
                title II; and
                    ``(B) low administrative costs;
            ``(2) review bids relating to, and hire managers for, each 
        such Fund;
            ``(3) annually review the performance of each such Fund;
            ``(4)(A) report annually to the House of Representatives 
        and the Senate and to the President regarding the earnings on 
        such investments; and
            ``(B) make each such report publicly available by 
        publication in the Federal Register, posting on the Internet, 
        and such other means as the Board may determine; and
            ``(5) review and approve the budget of the Board.
    ``(g)(1) The Board may--
            ``(A) adopt, alter, and use a seal;
            ``(B) establish policies with which the Managing Trustee of 
        the Trust Funds is required to comply under section 201(d)(2); 
        and
            ``(C) take such other actions as may be necessary to carry 
        out the functions of the Board.
    ``(2) The policies of the Board may not require the Managing 
Trustee of the Trust Funds to invest or to cause to be invested any 
sums in such Trust Funds in a specific asset or to dispose of or cause 
to be disposed of any specific asset of such Trust Funds.
    ``(h)(1) The Board shall meet--
            ``(A) not less than once during each month; and
            ``(B) at additional times at the call of the Chairman.
    ``(2)(A) The Board shall perform the functions and exercise the 
powers of the Board on a majority vote of a quorum of the Board.
    ``(B) A vacancy on the Board shall not impair the authority of a 
quorum of the Board to perform the functions and exercise the powers of 
the Board.
    ``(3) Three members of the Board shall constitute a quorum for the 
transaction of business.
    ``(4)(A) Each member of the Board who is not an officer or employee 
of the Federal Government shall be compensated at the daily rate of 
basic pay payable for level IV of the Executive Schedule for each day 
during which such member is engaged in performing a function of the 
Board.
    ``(B) A member of the Board shall be paid travel, per diem, and 
other necessary expenses under subchapter I of chapter 57 of title 5, 
United States Code, while traveling away from such member's home or 
regular place of business in the performance of the duties of the 
Board.
    ``(5) The accrued annual leave of any officer or employee of the 
Federal Government who is a member of the Board shall not be charged 
for any time used in performing services for the Board.
    ``(i) The members of the Board shall discharge their 
responsibilities solely in the interest of the Trust Funds in 
connection with investments of amounts in funds under section 
201(d)(2).
    ``(j) The Board shall prepare and submit to the President, and, at 
the same time, to the appropriate committees of Congress, an annual 
budget of the expenses and other items relating to the Board which 
shall be included as a separate item in the budget required to be 
transmitted to the Congress under section 1105 of title 31, United 
States Code.
    ``(k) The Board may submit to the President, and, at the same time, 
shall submit to each House of Congress, any legislative recommendations 
of the Board relating to any of its functions under this section.
    ``(l) There are hereby made available from each of the Trust Funds 
such sums as are necessary to carry out the provisions of this section 
and to administer the provisions of section 235, in accordance with 
certifications which shall be made from time to time by the Board to 
the Secretary of the Treasury.
    ``(m) In this section, the term `Trust Funds' has the meaning given 
such term in section 201(c).''.

SEC. 207. REALLOCATION OF PAYROLL TAX REVENUE FROM THE OLD-AGE AND 
              SURVIVORS INSURANCE TRUST FUND TO THE FEDERAL DISABILITY 
              INSURANCE TRUST FUND.

            (1) Wages.--Section 201(b)(1) of the Social Security Act 
        (42 U.S.C. 401(b)(1)) is amended by striking ``and (R) 1.80 per 
        centum of the wages (as so defined) paid after December 31, 
        1999, and so reported'' and inserting ``(R) 1.80 per centum of 
        the wages (as so defined) paid after December 31, 1999, and 
        before January 1, 2015, and so reported, (S) 2.8 per centum of 
        the wages (as so defined) paid after December 31, 2014, and 
        before January 1, 2016, and so reported, (T) 2.4 per centum of 
        the wages (as so defined) paid after December 31, 2015, and 
        before January 1, 2017, and so reported, (U) 2.2 per centum of 
        the wages (as so defined) paid after December 31, 2016, and 
        before January 1, 2020, and so reported, (V) 2.0 per centum of 
        the wages (as so defined) paid after December 31, 2019, and 
        before January 1, 2026, and so reported, and (W) 1.8 per centum 
        of the wages (as so defined) paid after December 31, 2025, and 
        so reported''.
            (2) Self-employment income.--Section 201(b)(2) of such Act 
        (42 U.S.C. 401(b)(2)) is amended by striking ``and (R) 1.80 per 
        centum of the amount of self-employment income (as so defined) 
        so reported for any taxable year beginning after December 31, 
        1999'' and inserting ``(R) 1.80 per centum of the amount of 
        self-employment income (as so defined) so reported for any 
        taxable year beginning after December 31, 1999, and before 
        January 1, 2015, (S) 2.8 per centum of the amount of self-
        employment income (as so defined) so reported for any taxable 
        year beginning after December 31, 2014, and before January 1, 
        2016, (T) 2.4 per centum of the amount of self-employment 
        income (as so defined) so reported for any taxable year 
        beginning after December 31, 2015, and before January 1, 2017, 
        (U) 2.2 per centum of the amount of self-employment income (as 
        so defined) so reported for any taxable year beginning after 
        December 31, 2016, and before January 1, 2020, (V) 2.0 per 
        centum of the amount of self-employment income (as so defined) 
        so reported for any taxable year beginning after December 31, 
        2019, and before January 1, 2026, and (W) 1.8 per centum of the 
        amount of self-employment income (as so defined) so reported 
        for any taxable year beginning after December 31, 2025''.
            (3) Effective date.--The amendments made by this section 
        shall apply with respect to wages paid after December 31, 2014, 
        and self-employment income for taxable years beginning after 
        such date.
                                 <all>
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