II 

108TH CONGRESS 

1ST SESSION S. 1878

To amend title II of the Social Security Act to preserve and strengthen 

the Social Security program through the creation of personal retirement 

accounts funded by employer and employee Social Security payroll deductions, to restore the solvency of the old-age survivors, and disability 

insurance programs, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 18, 2003

Mr. GRAHAM of South Carolina introduced the following bill; which was read 

twice and referred to the Committee on Finance 

A BILL

To amend title II of the Social Security Act to preserve 

and strengthen the Social Security program through the 

creation of personal retirement accounts funded by employer and employee Social Security payroll deductions, 

to restore the solvency of the old-age survivors, and 

disability insurance programs, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Social Security Solvency and Modernization Act of 

6 2003’’. 
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1 (b) TABLE OF CONTENTS.—The table of contents of 

2 this Act is as follows:

Sec. 1. Short title; table of contents. 

TITLE I—PERSONAL RETIREMENT ACCOUNTS 

Subtitle A—Amendments Related to Title II of the Social Security Act 

Sec. 101. Personal retirement accounts. 

Sec. 102. CPI-indexed benefits for part B eligible individuals not in supplemental contribution coverage. 

Sec. 103. Adjustments to primary insurance amounts under part A of title II 

of the Social Security Act for eligible individuals with personal 

retirement accounts. 

Sec. 104. Minimum social security benefit. 

Sec. 105. Treatment of disabled beneficiaries. 

Subtitle B—Amendments Related to the Internal Revenue Code of 1986

Sec. 111. Modification of FICA rates. 

Sec. 112. Matching contributions. 

Sec. 113. Tax treatment of personal retirement accounts. 

TITLE II—SOCIAL SECURITY FINANCIAL SUSTAINABILITY 

Subtitle A—Commission on the Review of Federal Agencies and Programs 

Sec. 201. Establishment of commission. 

Sec. 202. Duties of the commission. 

Sec. 203. Powers of the commission. 

Sec. 204. Commission personnel matters. 

Sec. 205. Congressional consideration of reform proposals. 

Sec. 206. Transfer of 1.25 percent of taxable payroll to social security. 

Sec. 207. Authorization of appropriations. 

Subtitle B—Other Sustainability Provisions 

Sec. 211. Reduction in the amount of certain transfers to medicare trust fund. 

Sec. 212. Mechanism for remedying unforeseen deterioration in social security 

solvency. 

TITLE III—ADJUSTMENTS FOR WIDOWS’ AND WIDOWERS’ 

INSURANCE BENEFITS 

Sec. 301. Adjustments for widows’ and widowers’ insurance benefits. 

TITLE IV—INVESTOR EDUCATION PROGRAMS 

Sec. 401. Establishment of the commission to strengthen financial education 

programs. 

Sec. 402. Duties of the commission. 

Sec. 403. Powers of the commission. 

Sec. 404. Commission personnel matters. 

Sec. 405. Termination of the commission. 

Sec. 406. Authorization of appropriations.
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•S 1878 IS 

1 TITLE I—PERSONAL 

2 RETIREMENT ACCOUNTS 

3 Subtitle A—Amendments Related 

4 to Title II of the Social Security 

5 Act 

6 SEC. 101. PERSONAL RETIREMENT ACCOUNTS. 

7 (a) ESTABLISHMENT AND MAINTENANCE OF PER8 SONAL RETIREMENT ACCOUNTS.—Title II of the Social 

9 Security Act (42 U.S.C. 401 et seq.) is amended—

10 (1) by inserting before section 201 the fol11 lowing: 

12 ‘‘PART A—INSURANCE BENEFITS’’; 

13 and 

14 (2) by adding at the end the following: 

15 ‘‘PART B—PERSONAL RETIREMENT ACCOUNTS

16 ‘‘PERSONAL RETIREMENT ACCOUNTS

17 ‘‘SEC. 251. (a) ESTABLISHMENT.—

18 ‘‘(1) IN GENERAL.—Within 30 days after re19 ceiving the first contribution under subsection (b) 

20 with respect to an eligible individual, the Personal 

21 Retirement Account Board shall establish a feder22 ally-administered personal retirement account for 

23 such individual in the Personal Retirement Account 

24 Fund. Each account shall be identified to the ac-
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1 count holder by means of the account holder’s social 

2 security account number. 

3 ‘‘(2) ELIGIBLE INDIVIDUAL.—For purposes of 

4 this part, the term ‘eligible individual’ means any in5 dividual born after December 31, 1949. 

6 ‘‘(b) CONTRIBUTIONS.—

7 ‘‘(1) AMOUNTS TRANSFERRED FROM THE

8 TRUST FUND.—The Secretary of the Treasury shall 

9 transfer from the Federal Old-Age and Survivors In10 surance Trust Fund, for crediting by the Personal 

11 Retirement Account Board to the personal retire12 ment account of an eligible individual, an amount 

13 equal to the sum of any amount received by the Sec14 retary on behalf of such individual under section 

15 3101(a)(2) or 1401(a)(2) of the Internal Revenue 

16 Code of 1986. 

17 ‘‘(2) OTHER CONTRIBUTIONS.—For provisions 

18 relating to additional contributions credited to per19 sonal retirement accounts, see section 6402(l) of the 

20 Internal Revenue Code of 1986. 

21 ‘‘(c) CREDITING REQUIREMENTS.—Except as other22 wise provided in section 253, contributions under sub23 section (b) on behalf of an eligible individual shall be cred24 ited—
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1 ‘‘(1) to the personal retirement account estab2 lished for such individual under subsection (a); and 

3 ‘‘(2) in accordance with the allocation in effect 

4 with respect to such individual under subsection (d). 

5 ‘‘(d) ALLOCATION AND OTHER DESIGNATIONS.—

6 ‘‘(1) IN GENERAL.—Not later than June 1, 

7 2005, the Personal Retirement Account Board shall 

8 prescribe regulations in accordance with which, once 

9 per year, any eligible individual who is employed or 

10 self-employed may designate—

11 ‘‘(A)(i) the fund or funds to which such in12 dividual wishes to have such individual’s con13 tributions under subsection (b) credited; and 

14 ‘‘(ii) if such individual designates more 

15 than 1 fund under clause (i), how such indi16 vidual wishes for those contributions to be allo17 cated; and 

18 ‘‘(B) the amount of wages or self-employ19 ment income such individual wishes to des20 ignate for purposes of section 3101(a)(2)(B) or 

21 1401(a)(2)(B) of the Internal Revenue Code of 

22 1986 (as applicable), if any. 

23 ‘‘(2) DEFAULT ALLOCATION.—In the absence of 

24 a required designation under paragraph (1)(A), con25 tributions on behalf of the eligible individual involved
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1 shall be allocated to the medium-risk balanced index 

2 fund described in section 261(b)(1)(B). 

3 ‘‘(3) FORM OF DESIGNATION.—Any designation 

4 under paragraph (1) shall be made in such manner 

5 as the Personal Retirement Account Board may pre6 scribe in order to ensure ease of administration and 

7 to avoid creating an undue burden on employers. 

8 ‘‘(e) PERIODIC STATEMENTS AND ACCOUNT INFOR9 MATION.—

10 ‘‘(1) IN GENERAL.—The Personal Retirement 

11 Account Board shall prescribe regulations under 

12 which each eligible individual for whom a personal 

13 retirement account is maintained under this section 

14 shall be furnished with—

15 ‘‘(A) an annual statement relating to such 

16 individual’s account, including, for any report17 ing period as of the end of which such individ18 ual’s account balance is at least equal to the 

19 minimum balance amount (within the meaning 

20 of section 253), clear and conspicuous notice to 

21 that effect; 

22 ‘‘(B) a summary description of any invest23 ment options or other choices which may be 

24 available to such individual under this part; and 
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1 ‘‘(C) any forms and information necessary 

2 to make a designation under subsection (d) or 

3 section 253 (as applicable). 

4 ‘‘(2) ACCOUNT ACCESS.—The Personal Retire5 ment Account Board shall prescribe regulations 

6 under which eligible individuals may obtain account 

7 information through—

8 ‘‘(A) the Internet; and 

9 ‘‘(B) an automatic calling system.

10 ‘‘PERSONAL RETIREMENT ACCOUNT ELECTION

11 ‘‘SEC. 252. (a) IN GENERAL.—

12 ‘‘(1) ELECTION.—Not later than the date on 

13 which an eligible individual attains the age of 26, 

14 such individual shall elect—

15 ‘‘(A) a personal retirement account; or 

16 ‘‘(B) part A coverage only. 

17 Any election made under this paragraph shall be ir18 revocable. 

19 ‘‘(2) SPECIAL RULES.—

20 ‘‘(A) INDIVIDUALS BORN BEFORE JANUARY

21 1, 1979.—In the case of an eligible individual 

22 born before January 1, 1979, the election under 

23 paragraph (1) shall be made not later than Sep24 tember 30, 2005. 

25 ‘‘(B) OTHER INDIVIDUALS.—In the case of 

26 any eligible individual to whom subparagraph 
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1 (A) or paragraph (1) does not apply, the Per2 sonal Retirement Account Board shall prescribe 

3 regulations regarding the election under para4 graph (1). 

5 ‘‘(3) NO ELECTION.—If an eligible individual 

6 has not made an election under this subsection such 

7 individual shall be deemed to have elected a personal 

8 retirement account. 

9 ‘‘(4) EFFECTIVE DATE OF ELECTION.—

10 ‘‘(A) IN GENERAL.—Except as provided in 

11 subparagraph (B), any election made under this 

12 section shall be effective on the date that is 60 

13 days after which such election is made. 

14 ‘‘(B) INDIVIDUALS BORN BEFORE JANU15 ARY 1, 1979.—Any election made pursuant to 

16 paragraph (2)(A) shall be effective on January 

17 1, 2006. 

18 ‘‘(b) PERSONAL RETIREMENT ACCOUNT.—In the 

19 case of any eligible individual who elects a personal retire20 ment account, the Personal Retirement Account Board 

21 shall maintain the personal retirement account established 

22 under section 251 for such individual in accordance with 

23 the requirements of this part. 

24 ‘‘(c) PART A COVERAGE.—
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1 ‘‘(1) IN GENERAL.—In the case of any eligible 

2 individual who elects part A coverage only—

3 ‘‘(A) such individual shall be covered under 

4 part A of this title only and shall not have a 

5 personal retirement account; and 

6 ‘‘(B) the Chairman shall transfer any 

7 amount in such individual’s personal retirement 

8 account—

9 ‘‘(i) to an individual retirement ac10 count (within the meaning of section 408 

11 of the Internal Revenue Code of 1986) es12 tablished for the benefit of such individual; 

13 or 

14 ‘‘(ii) at the election of such individual 

15 under regulations established by the Chair16 man, to an existing individual retirement 

17 account of such individual. 

18 ‘‘(2) FURTHER ELECTION.—An eligible indi19 vidual who elects part A coverage only shall make a 

20 further election of—

21 ‘‘(A) basic benefit coverage under part A 

22 (as amended by section 102 of the Social Secu23 rity Solvency and Modernization Act of 2003); 

24 or 

25 ‘‘(B) supplemental contribution coverage. 
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1 ‘‘(3) SUPPLEMENTAL CONTRIBUTION COVERAGE

2 OASDI TAX RATE.—For the old-age, survivors, and 

3 disability insurance tax rate for eligible individuals 

4 who select the supplemental contribution coverage 

5 under paragraph (2), see section 3101(a)(1)(B)(iii) 

6 of the Internal Revenue Code of 1986. 

7 ‘‘(4) BASIC BENEFIT COVERAGE PIA AMOUNT.—

8 For the primary insurance amount under part A for 

9 eligible individuals who select basic benefit coverage, 

10 see section 215(a)(1)(B)(iii).

11 ‘‘PRIVATELY-ADMINISTERED PERSONAL RETIREMENT

12 ACCOUNTS

13 ‘‘SEC. 253. (a) DEFINITIONS.—For purposes of this 

14 part—

15 ‘‘(1) MINIMUM DEPOSIT AMOUNT.—The term 

16 ‘minimum deposit amount’ means an amount equal 

17 to $10,000. 

18 ‘‘(2) PERSONAL RETIREMENT ACCOUNT.—The 

19 term ‘personal retirement account’ means a federally 

20 administered personal retirement account and a pri21 vately-administered personal retirement account. 

22 ‘‘(3) FEDERALLY-ADMINISTERED PERSONAL

23 RETIREMENT ACCOUNT.—The term ‘federally-admin24 istered personal retirement account’ means a per25 sonal retirement account maintained, in accordance
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1 with applicable provisions of this section 251, in the 

2 Personal Retirement Account Fund. 

3 ‘‘(4) PRIVATELY-ADMINISTERED PERSONAL RE4 TIREMENT ACCOUNT.—The term ‘privately-adminis5 tered personal retirement account’ means a personal 

6 retirement account maintained, in accordance with 

7 applicable provisions of this section, by a certified 

8 institution. 

9 ‘‘(5) CERTIFIED INSTITUTION.—The term ‘cer10 tified institution’ refers to an investment firm, credit 

11 union, insurance company, or other certified institu12 tion under subpart 3. 

13 ‘‘(b) OPTION TO DESIGNATE A PRIVATELY-ADMINIS14 TERED PERSONAL RETIREMENT ACCOUNT.—

15 ‘‘(1) IN GENERAL.—Under regulations pre16 scribed by the Personal Retirement Account Board, 

17 whenever the balance in an eligible individual’s fed18 erally-administered personal retirement account is at 

19 least equal to the minimum deposit amount, such in20 dividual shall be eligible to designate a privately-ad21 ministered personal retirement account (established 

22 and maintained on such individual’s behalf) to serve 

23 as such individual’s personal retirement account 

24 under this part, in lieu of such individual’s federally25 administered personal retirement account. 
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1 ‘‘(2) EFFECT OF DESIGNATION.—If an eligible 

2 individual makes a designation under paragraph 

3 (1)—

4 ‘‘(A) the entire balance in such individual’s 

5 federally-administered personal retirement ac6 count shall be promptly transferred to the pri7 vately-administered personal retirement account 

8 specified by such individual in such designation; 

9 and 

10 ‘‘(B) that privately-administered personal 

11 retirement account shall, for all purposes, be 

12 treated as the electing individual’s personal re13 tirement account, subject to paragraph (4). 

14 ‘‘(3) INFORMATION REQUIRED TO BE IN15 CLUDED.—A designation under this subsection shall 

16 not be effective unless it is made in such time, form, 

17 and manner as the Personal Retirement Account 

18 Board prescribes. 

19 ‘‘(4) SUBSEQUENT DESIGNATIONS.—The Per20 sonal Retirement Account Board shall provide by 

21 regulation opportunity for subsequent designation, 

22 once per year, of another personal retirement ac23 count in lieu of the account previously designated 

24 under this section, subject to the following: 
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1 ‘‘(A) OPTIONS AVAILABLE.—The account 

2 designated under this paragraph may be either 

3 within—

4 ‘‘(i) another certified institution, sub5 ject to subparagraph (B); or 

6 ‘‘(ii) the Personal Retirement Account 

7 Fund. 

8 ‘‘(B) MINIMUM BALANCE.—In order to 

9 make a designation referred to in subparagraph 

10 (A)(i), the balance in the eligible individual’s 

11 personal retirement account must be at least 

12 equal to the minimum deposit amount. No min13 imum balance requirement under this subpara14 graph shall apply in the case of a designation 

15 referred to in subparagraph (A)(ii). 

16 ‘‘(C) ONLY 1 ACCOUNT PERMITTED AT ANY

17 TIME.—An eligible individual may not, at any 

18 time, concurrently maintain—

19 ‘‘(i) a privately-administered personal 

20 retirement account with each of 2 or more 

21 certified institutions; or 

22 ‘‘(ii) a privately-administered and a 

23 federally-administered personal retirement 

24 account. 
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1 ‘‘(D) EFFECT.—A designation under this 

2 paragraph has (with respect to the eligible indi3 vidual’s respective accounts, before and after 

4 such designation) the same effect as results fol5 lowing a designation under paragraph (2) (with 

6 respect to the federally-administered and pri7 vately-administered accounts involved). 

8 ‘‘PERSONAL RETIREMENT ACCOUNT DISTRIBUTIONS

9 ‘‘SEC. 254. (a) DATE OF INITIAL DISTRIBUTION.—

10 Except as provided in subsection (c), distributions may 

11 only be made from a personal retirement account of an 

12 eligible individual on and after the earliest of—

13 ‘‘(1) the date the eligible individual attains nor14 mal retirement age (as determined under section 

15 216) or, if elected by such individual, early retire16 ment age (as so determined); or 

17 ‘‘(2) the date on which funds in the eligible in18 dividual’s personal retirement account are sufficient 

19 to provide a monthly payment over the life expect20 ancy of the eligible individual (determined under rea21 sonable actuarial assumptions) which is at least 

22 equal to an amount equal to 100 percent of the pov23 erty line (as defined in section 673(2) of the Com24 munity Services Block Grant Act (42 U.S.C. 

25 9902(2) and determined on such date for a family 

26 of the size involved) and adjusted annually there-
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1 after by the adjustment determined under section 

2 215(i). 

3 ‘‘(b) FORMS OF DISTRIBUTION.—

4 ‘‘(1) REQUIRED MONTHLY PAYMENTS.—

5 ‘‘(A) IN GENERAL.—Except as provided in 

6 paragraph (3), beginning with the date deter7 mined under subsection (a), the balance in a 

8 personal retirement account available to provide 

9 monthly payments not in excess of the applica10 ble amount shall be paid, as elected by the ac11 count holder (in such form and manner as shall 

12 be prescribed in regulations of the Personal Re13 tirement Account Board), by means of the pur14 chase of annuities or equal monthly payments 

15 over the life expectancy of the eligible individual 

16 (determined under reasonable actuarial assump17 tions) in accordance with requirements (which 

18 shall be provided in regulations of the Board) 

19 similar to the requirements applicable to pay20 ments of benefits under subchapter III of chap21 ter 84 of title 5, United States Code, and pro22 viding for indexing for inflation. 

23 ‘‘(B) APPLICABLE AMOUNT.—For purposes 

24 of subparagraph (A), the applicable amount 

25 is—
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1 ‘‘(i) in the case of a distribution made 

2 pursuant to subsection (a)(1), an amount 

3 which is sufficient to provide a monthly 

4 payment over the life expectancy of the eli5 gible individual (determined under reason6 able actuarial assumptions) which, when 

7 added to the eligible individual’s monthly 

8 benefit under part A (if any), is at least 

9 equal to an amount equal to 100 percent 

10 of the poverty line (as defined in section 

11 673(2) of the Community Services Block 

12 Grant Act (42 U.S.C. 9902(2) and deter13 mined on such date for a family of the size 

14 involved) and adjusted annually thereafter 

15 by the adjustment determined under sec16 tion 215(i); and 

17 ‘‘(ii) in the case of a distribution 

18 made pursuant to subsection (a)(2), the 

19 amount described in subsection (a)(2). 

20 ‘‘(2) PROTECTION FOR SPOUSE.—

21 ‘‘(A) IN GENERAL.—For purposes of para22 graph (1), the requirements of subchapter III 

23 of chapter 84 of title 5, United States Code, 

24 shall be determined as if ‘a method which provides for a qualified 2 25 ⁄3 joint and survivor annu-
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1 ity’ were substituted for ‘the method described 

2 in subsection (a)(2)(B) of such section (or, if 

3 more than one form of such method is available, 

4 the form which the Board determines to be the 

5 one which provides for a surviving spouse a sur6 vivor annuity most closely approximating the 

7 annuity of a surviving spouse under section 

8 8442 of this title)’ in section 8435(b)(1) of title 

9 5, United States Code. 

‘‘(B) QUALIFIED 2 10 ⁄3 JOINT AND SURVIVOR

11 ANNUITY.—For purposes of subparagraph (A), 

the term ‘qualified 2 12 ⁄3 joint and survivor annu13 ity’ means an annuity—

14 ‘‘(i) for the life of the eligible indi15 vidual with a survivor annuity for the life 

of the spouse which is not less than 2 16 ⁄3 of 

17 (and is not greater than 100 percent of) 

18 the amount of the annuity which is payable 

19 during the joint lives of the eligible indi20 vidual and the spouse, and 

21 ‘‘(ii) which is the actuarial equivalent 

22 of a single annuity for the life of the eligi23 ble individual. 
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1 Such term also includes any annuity in a form 

2 having the effect of an annuity described in the 

3 preceding sentence. 

4 ‘‘(3) PAYMENT OF EXCESS FUNDS.—To the ex5 tent funds remain in an eligible individual’s personal 

6 retirement account after the application of para7 graph (1), such funds shall be payable to the eligible 

8 individual in such manner and in such amounts as 

9 determined by the eligible individual, subject to the 

10 provisions of subchapter III of chapter 84 of title 5, 

11 United States Code. 

12 ‘‘(c) DISTRIBUTION IN THE EVENT OF DEATH BE13 FORE THE DATE OF INITIAL DISTRIBUTION.—If the eligi14 ble individual dies before the date determined under sub15 section (a), the balance in such individual’s personal re16 tirement account shall be distributed in a lump sum, under 

17 rules established by the Personal Retirement Account 

18 Board—

19 ‘‘(1) to the account of a surviving spouse of 

20 such individual; and 

21 ‘‘(2) in the case there is no surviving spouse or 

22 such spouse waives the right to such funds, to the 

23 eligible individual’s heirs. 

24 ‘‘(d) DIVORCE.—The Personal Retirement Account 

25 Board shall issue regulations which provide that, in the 
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1 case of an eligible individual with a personal retirement 

2 account who becomes divorced, contributions to the ac3 count during the marriage and earnings on the account 

4 during the marriage shall be divided evenly between such 

5 individual and such individual’s former spouse. 

6 ‘‘Subpart 2—Personal Retirement Account Fund; 

7 Personal Retirement Account Board 

8 ‘‘PERSONAL RETIREMENT ACCOUNT FUND

9 ‘‘SEC. 261. (a) ESTABLISHMENT.—There shall be es10 tablished and maintained in the Treasury of the United 

11 States a Personal Retirement Account Fund in the same 

12 manner as the Thrift Savings Fund under sections 8437 

13 (excluding paragraphs (4) and (5) of subsection (c) there14 of), 8438, and 8439 of title 5, United States Code. 

15 ‘‘(b) ADDITIONAL INVESTMENT OPTIONS.—In addi16 tion to the investment funds established within the Per17 sonal Retirement Account Fund under subsection (a), the 

18 Personal Retirement Account Board shall contract on a 

19 competitive basis with 1 or more fund managers to pro20 vide—

21 ‘‘(1) 3 balanced index funds, of which—

22 ‘‘(A) 1 shall invest in conservative invest23 ments; 

24 ‘‘(B) 1 shall invest in medium-risk invest25 ments; and 
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1 ‘‘(C) 1 shall invest in growth investments; 

2 and 

3 ‘‘(2) an inflation-indexed government bond 

4 fund. 

5 ‘‘(c) FUND REQUIREMENTS.—

6 ‘‘(1) NO LOAD FUNDS.—Any fund with respect 

7 to which the Personal Retirement Account Board 

8 enters into a contract under subsection (b) may not 

9 charge sales loads or other marketing fees based on 

10 the entry or exit of an individual into the fund. 

11 ‘‘(2) ANNUAL CHARGE.—Any fees charged by a 

12 fund with which the Personal Retirement Account 

13 Board enters into a contract under subsection (b) 

14 shall be included in one annual charge and stated as 

15 a percentage of assets. 

16 ‘‘PERSONAL RETIREMENT ACCOUNT BOARD

17 ‘‘SEC. 262. (a) ESTABLISHMENT.—There shall be es18 tablished and maintained in the Social Security Adminis19 tration a Personal Retirement Account Board in the same 

20 manner as the Federal Retirement Thrift Investment 

21 Board under subchapter VII of chapter 84 of title 5, 

22 United States Code. 

23 ‘‘(b) SPECIFIC INVESTMENT AND REPORTING DU24 TIES.—The Personal Retirement Account Board shall 

25 manage and report on the activities of the Personal Retire26 ment Account and on federally-administered personal re-
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1 tirement accounts in the same manner as the Federal Re2 tirement Thrift Investment Board manages and reports 

3 on the Thrift Savings Fund and the individual accounts 

4 of such Fund under subchapter VII of chapter 84 of title 

5 5, United States Code. 

6 ‘‘(c) BUDGETARY TREATMENT OF PERSONAL RE7 TIREMENT ACCOUNT SECURITY FUND AND ACCOUNTS.—

8 The receipts and disbursements of the Personal Retire9 ment Account Fund and any accounts within such Fund 

10 shall not be included in the totals of the budget of the 

11 United States Government as submitted by the President 

12 or of the congressional budget and shall be exempt from 

13 any general budget limitation imposed by statute on ex14 penditures and net lending (budget outlays) of the United 

15 States Government. 

16 ‘‘(d) COMMISSIONER OF SOCIAL SECURITY AS EXEC17 UTIVE DIRECTOR.—The Commissioner of Social Security 

18 shall have, with respect to the Personal Retirement Ac19 count Fund and accounts within such Fund, the same du20 ties and responsibilities as does the Executive Director 

21 (appointed under section 8474(a) of title 5, United States 

22 Code) with respect to the Thrift Savings Fund and ac23 counts within such Fund.
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1 ‘‘Subpart 3—Certified Institutions 

2 ‘‘CERTIFICATION OF INSTITUTIONS BY PERSONAL

3 RETIREMENT ACCOUNT BOARD

4 ‘‘SEC 271. (a) IN GENERAL.—For purposes of meet5 ing the requirements of section 530B of the Internal Rev6 enue Code of 1986 (relating to personal retirement ac7 counts), the Personal Retirement Account Board, in con8 sultation with the Securities and Exchange Commission 

9 (in this part referred to as the ‘Commission’), may certify 

10 any institution that is engaged, in a fiduciary capacity, 

11 in the business of maintaining accounts for individuals for 

12 purposes of investment if such institution submits an ap13 plication to the Personal Retirement Account Board in 

14 such form and manner as the Board shall by regulation 

15 require. 

16 ‘‘(b) REQUIREMENTS FOR CERTIFICATION.—

17 ‘‘(1) IN GENERAL.—Any institution certified 

18 under this part must follow rules similar to the rules 

19 of section 251(d). 

20 ‘‘(2) FEES.—Any fund which an institution ap21 plying for certification under this part proposes to 

22 offer for eligible individuals may not charge sales 

23 loads or other marketing fees based on the entry or 

24 exit of an individual into the fund. Any fees charged 

25 by an institutions applying for certification under 
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1 this section with respect to the personal retirement 

2 account of an eligible individual shall be included in 

3 one annual charge and stated as a percentage of as4 sets. 

5 ‘‘(3) OTHER REQUIREMENTS.—In determining 

6 whether to approve an application for certification 

7 under this subpart, the Personal Retirement Ac8 count Board shall consider the following factors: 

9 ‘‘(A) The financial history and condition of 

10 the institution. 

11 ‘‘(B) The adequacy of the institution’s cap12 ital structure. 

13 ‘‘(C) The future earnings prospects of the 

14 institution. 

15 ‘‘(D) The general character and fitness of 

16 the management of the institution. 

17 ‘‘(E) The convenience and needs of eligible 

18 individuals who are account holders with re19 spect to personal retirement accounts for which 

20 the institution is to serve as trustee. 

21 ‘‘(F) Whether the institution’s corporate 

22 powers are consistent with the purposes of this 

23 part. 

24 ‘‘(G) The institution’s disclosure policies, 

25 including any such policies with respect to ad-
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1 ministrative fees, investment policies, and in2 vestment activities. 

3 ‘‘(H) The appropriateness of—

4 ‘‘(i) the fund or funds that such insti5 tution proposes to offer for purposes of 

6 this part; and 

7 ‘‘(ii) the criteria by which such insti8 tution will make future decisions regarding 

9 the selection of new funds or the modifica10 tion of the investment options offered by 

11 such institution for purposes of this part, 

12 as determined based on guidelines established 

13 by the Personal Retirement Account Board for 

14 purposes of this paragraph. 

15 ‘‘(c) NOTICE OF DENIAL OF APPLICATION FOR CER16 TIFICATION.—If the Personal Retirement Account Board 

17 denies an application for certification by any institution, 

18 the Board shall promptly notify the institution of such de19 nial and shall give the reasons for the Board’s determina20 tion in writing. 

21 ‘‘(d) NONDELEGATION REQUIREMENT.—The author22 ity granted to the Personal Retirement Account Board 

23 under this section may not be delegated by the Board. 

24 ‘‘REVOCATION OF CERTIFICATION

25 ‘‘SEC. 272. (a) IN GENERAL.—The Personal Retire26 ment Account Board, in consultation with the Commis-
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1 sion, shall prescribe regulations in accordance with which 

2 the certified status of an institution may be voluntarily 

3 or involuntarily revoked. 

4 ‘‘(b) JUDICIAL REVIEW.—Any party to any pro5 ceeding revoking the certified status of an institution 

6 under subsection (a) may obtain a review of any order 

7 served pursuant to subsection (a) by the filing in the court 

8 of appeals of the United States for the circuit in which 

9 the home office of the institution is located, or in the 

10 United States Court of Appeals for the District of Colum11 bia Circuit, within 30 days after the date of the service 

12 of such order, a written petition praying that the order 

13 of the Personal Retirement Account Board be modified, 

14 terminated, or set aside. A copy of such petition shall be 

15 forthwith transmitted by the clerk of the court to the Per16 sonal Retirement Account Board, and thereupon the Per17 sonal Retirement Account Board shall file in the court the 

18 record in the proceeding, as provided in section 2112 of 

19 title 28, United States Code. Upon the filing of such peti20 tion, such court shall have jurisdiction, which upon the 

21 filing of the record shall be exclusive, to affirm, modify, 

22 terminate, or set aside, in whole or in part, the order of 

23 the Personal Retirement Account Board. Review of such 

24 proceedings shall be had as provided in chapter 7 of title 

25 5, United States Code. The judgment and decree of the 
26

•S 1878 IS 

1 court shall be final, except that the judgment and decree 

2 shall be subject to review by the Supreme Court upon cer3 tiorari, as provided in section 1254 of title 28, United 

4 States Code. The commencement of proceedings for judi5 cial review under this subsection shall not, unless specifi6 cally ordered by the court, operate as a stay of any order 

7 issued by the Personal Retirement Account Board. 

8 ‘‘FIDUCIARY DUTIES

9 ‘‘SEC. 273. (a) IN GENERAL.—In the case of a pri10 vately-administered personal retirement account which 

11 does not form part of an individual account plan covered 

12 under part 4 of subtitle B of title I of the Employee Re13 tirement Income Security Act of 1974, rules similar to the 

14 rules of such part 4 applicable to individual account plans 

15 covered under such part 4 shall apply with respect to a 

16 privately-administered personal retirement account and 

17 the terms of any arrangement under which such account 

18 is maintained. 

19 ‘‘(b) GENERAL REQUIREMENTS.—In applying under 

20 subsection (a) the rules of part 4 of subtitle B of title 

21 I of the Employee Retirement Income Security Act of 

22 1974 in the case of a privately-administered personal re23 tirement account, references in such part to the Secretary 

24 of Labor shall be deemed to be references to the Personal 

25 Retirement Account Board, references in such part to a 

26 participants or beneficiary in connection with an indi-
27

•S 1878 IS 

1 vidual account plan covered under such part shall be 

2 deemed to be references to the account holder with respect 

3 to the privately-administered personal retirement account, 

4 and references in such part to the plan administrator or 

5 plan sponsor in connection with an individual account plan 

6 covered under such part shall be deemed to be references 

7 to the trustee of the privately-administered personal re8 tirement account. 

9 ‘‘(c) LIMITATION ON LIABILITY.—Any account holder 

10 who issues an instruction to the trustee of the account 

11 directing an investment of funds held in the account shall 

12 sign an acknowledgement prescribed by the Personal Re13 tirement Account Board which states that the account 

14 holder understands that an investment of any amount in 

15 the account is made at the account holder’s risk, that the 

16 account holder is not protected by the Government or by 

17 the trustee against any loss on such investment, and that 

18 a return on such investment is not guaranteed by the Gov19 ernment or by the trustee. Notwithstanding the preceding 

20 provisions of this section and any other provision of Fed21 eral or State law, the trustee of a privately-administered 

22 personal retirement account shall not be liable for losses 

23 suffered in connection with any investment of assets held 

24 in the account unless it is shown by clear and convincing 

25 evidence that the trustee did not act in the manner in
28

•S 1878 IS 

1 which a reasonable trustee would act under the cir2 cumstances then prevailing in evaluating the risk and re3 ward properties of the investment option involved.

4 ‘‘Subpart 4—Enforcement 

5 ‘‘CAUSE OF ACTION

6 ‘‘SEC. 281. An account holder of any privately-admin7 istered personal retirement account who is adversely af8 fected by an act or practice of any party (other than the 

9 Personal Retirement Account Board, the Commission, the 

10 Social Security Administration, the Department of the 

11 Treasury, or any officer or employee of any of the fore12 going) in violation of any provision of this part, may bring 

13 an action—

14 ‘‘(1) to enjoin such act or practice; or 

15 ‘‘(2) to obtain other appropriate equitable re16 lief—

17 ‘‘(A) to redress such violation; or 

18 ‘‘(B) to enforce such provision.

19 ‘‘JURISDICTION AND VENUE

20 ‘‘SEC. 282. Civil actions under this subpart may be 

21 brought in the district courts of the United States in the 

22 district where the privately-administered personal retire23 ment account is administered, where the violation took 

24 place, or where a defendant resides or may be found, and 

25 process may be served in any district where a defendant 

26 resides or may be found. The district courts of the United 
29

•S 1878 IS 

1 State shall have jurisdiction, without regard to the amount 

2 in controversy or the citizenship of the parties, to grant 

3 the relief provided for in section 281 in any action. 

4 ‘‘RIGHT OF THE PERSONAL RETIREMENT ACCOUNT

5 BOARD TO INTERVENE

6 ‘‘SEC. 283. A copy of the complaint or notice of ap7 peal in any action under this subpart shall be served upon 

8 the Personal Retirement Account Board by certified mail. 

9 The Personal Retirement Account Board shall each have 

10 the right to intervene in any action. 

11 ‘‘AWARDS OF COSTS AND EXPENSES

12 ‘‘SEC. 284. In any action brought under this subpart, 

13 the court in its discretion may award all or a portion of 

14 the costs and expenses incurred in connection with such 

15 action, including reasonable attorney’s fees, to any party 

16 who prevails or substantially prevails in such action. 

17 ‘‘LIMITATION ON ACTIONS

18 ‘‘SEC. 285. (a) IN GENERAL.—Except as provided in 

19 subsection (c), an action under this subpart may not be 

20 brought after the later of—

21 ‘‘(1) 6 years after the date on which the cause 

22 of action arose; or 

23 ‘‘(2) 3 years after the applicable date specified 

24 in subsection (b). 

25 ‘‘(b) APPLICABLE DATE.—The applicable date speci26 fied in this subsection is the earliest date on which the 
30

•S 1878 IS 

1 plaintiff acquired or should have acquired actual knowl2 edge of the existence of such cause of action. 

3 ‘‘(c) CASES OF FRAUD OR CONCEALMENT.—In the 

4 case of fraud or concealment, the period described in sub5 section (a)(2) shall be extended to 6 years after the appli6 cable date specified in subsection (b). 

7 ‘‘PENALTY FOR FAILURE TO TIMELY PROVIDE REQUIRED

8 INFORMATION

9 ‘‘SEC. 286. The Personal Retirement Account Board 

10 may assess a penalty, payable to it, against any person 

11 who fails to provide any notice or other material informa12 tion required under this part or any regulations prescribed 

13 under this part within the applicable time limit specified 

14 therein. Such penalty shall not exceed $1,000 for each day 

15 for which such failure continues. 

16 ‘‘ACTIONS BY THE PERSONAL RETIREMENT ACCOUNT

17 BOARD

18 ‘‘SEC. 287. If any person is assessed under this sub19 part and fails to pay the assessment when due, or any 

20 person otherwise fails to meet any requirement of this 

21 part, the Personal Retirement Account Board may bring 

22 a civil action in any district court of the United States 

23 within the jurisdiction of which such person’s assets are 

24 located or in which such person resides or is found for 

25 the recovery of the amount of the assessment or for appro26 priate equitable relief to redress the violation or enforce 
31

•S 1878 IS 

1 the provisions of this part, and process may be served in 

2 any other district. The district courts of the United States 

3 shall have jurisdiction over actions brought under this sec4 tion by the Personal Retirement Account Board without 

5 regard to the amount in controversy. 

6 ‘‘CRIMINAL PENALTY FOR FRAUD OR INTENTIONAL MIS7 REPRESENTATION IN CONNECTION WITH INVEST8 MENT OPTIONS

9 ‘‘SEC. 288. Any person who makes, or causes to be 

10 made, a statement or representation of a material fact for 

11 use in selecting an investment option that the person 

12 knows or should know is false or misleading or knows or 

13 should know omits a material fact or makes such a state14 ment with knowing disregard for the truth shall upon con15 viction be fined not more than $500,000 or imprisoned 

16 for not more than 5 years, or both.’’. 

17 (b) IMPLEMENTATION OF PROVISIONS RELATING TO

18 PRIVATELY-ADMINISTERED PERSONAL RETIREMENT AC19 COUNTS.—

20 (1) IN GENERAL.—

21 (A) PLAN.—Not later than 3 years after 

22 the date on which the Personal Retirement Ac23 count Board accepts the first contribution 

24 under section 251(b) of the Social Security Act, 

25 the Board, in consultation with the Commis26 sioner of Social Security, the Commissioner of 
32

•S 1878 IS 

1 the Securities and Exchange Commission, and 

2 the Secretary of the Treasury, shall establish 

3 and submit to Congress a plan for imple4 menting the amendments made by this section, 

5 to the extent that they relate to privately-ad6 ministered personal retirement accounts. 

7 (B) IMPLEMENTATION.—All measures nec8 essary to prepare for full implementation of 

9 such amendments (as they relate to privately10 administered personal retirement accounts) 

11 shall be completed not later than 5 years after 

12 the date on which the Personal Retirement Ac13 count Board accepts the first contribution 

14 under section 251(b) of such Act. 

15 (2) DEFINITIONS.—For purposes of this para16 graph, the terms ‘‘Personal Retirement Account 

17 Board’’, ‘‘federally-administered personal retirement 

18 account’’, and ‘‘privately-administered personal re19 tirement account’’ have the meanings given them 

20 under part B of title II of the Social Security Act 

21 (as amended by this section).
33

•S 1878 IS 

1 SEC. 102. CPI-INDEXED BENEFITS FOR PART B ELIGIBLE IN2 DIVIDUALS NOT IN SUPPLEMENTAL CON3 TRIBUTION COVERAGE. 

4 Section 215(a)(1)(B) of the Social Security Act (42 

5 U.S.C. 415(a)(1)(B)) is amended—

6 (1) by redesignating clause (iii) as clause (vi); 

7 (2) in clause (ii), by striking ‘‘For individuals’’ 

8 and inserting ‘‘Subject to clause (iii), for individ9 uals’’; 

10 (3) by inserting after clause (ii) the following 

11 new clauses: 

12 ‘‘(iii) For eligible individuals (as defined under sec13 tion 251(a)(2)) who do not elect supplemental contribution 

14 coverage under section 252 and who initially meet all re15 quirements for entitlement to old-age or survivors insur16 ance benefits (other than applying therefor) in any cal17 endar year after 2008, each of the amounts so established 

18 under the preceding provisions of this subparagraph shall 

19 be equal to the product derived by multiplying such 

20 amount (as determined before the application of this 

21 clause) by the quotient derived by dividing—

22 ‘‘(I) the applicable change in the CPI for the 

23 first of the 2 preceding calendar years, by 

24 ‘‘(II) applicable change in the national average 

25 wage index for the first of the 2 preceding calendar 

26 years. 
34

•S 1878 IS 

1 ‘‘(iv) For purposes of clause (iii)(I), the term ‘appli2 cable change in the CPI’ for a calendar year means the 

3 excess of—

4 ‘‘(I) the arithmetical mean of the Consumer 

5 Price Index for Urban Wage Earners and Clerical 

6 Workers (issued by the Bureau of Labor Statistics) 

7 for the 12 months in such calendar year, over 

8 ‘‘(II) the arithmetical mean of such Consumer 

9 Price Index for the 12 months in calendar year 

10 2007. 

11 ‘‘(v) For purposes of clause (iii)(II), the term ‘appli12 cable change in the national average wage index’ for a cal13 endar year means the excess of—

14 ‘‘(I) the national average wage index (as de15 fined in section 209(k)(1)) for such calendar year, 

16 over 

17 ‘‘(II) the national average wage index (as so de18 fined) for calendar year 2007.’’; and 

19 (4) in clause (vi) (as redesignated), by striking 

20 ‘‘under clause (ii)’’ and inserting ‘‘under the pre21 ceding provisions of this subparagraph’’.
35

•S 1878 IS 

1 SEC. 103. ADJUSTMENTS TO PRIMARY INSURANCE 

2 AMOUNTS UNDER PART A OF TITLE II OF THE 

3 SOCIAL SECURITY ACT FOR ELIGIBLE INDI4 VIDUALS WITH PERSONAL RETIREMENT AC5 COUNTS. 

6 (a) IN GENERAL.—Section 215 of the Social Security 

7 Act (42 U.S.C. 415) is amended by adding at the end the 

8 following: 

9 ‘‘Adjustment of Primary Insurance Amount in Relation 

10 to Contributions to Personal Retirement Accounts

11 ‘‘(j)(1) Except as provided in paragraph (2), an indi12 vidual’s primary insurance amount as determined in ac13 cordance with this section (before adjustments made 

14 under subsection (i)) shall be equal to the excess (if any) 

15 of—

16 ‘‘(A) the amount which would be so determined 

17 without the application of this subsection, over 

18 ‘‘(B) the monthly amount of an immediate life 

19 annuity, determined on the basis of the sum of—

20 ‘‘(i) the total of all amounts which have 

21 been credited pursuant to section 251(b) (in22 dexed in the same manner as is applicable with 

23 respect to average indexed monthly earnings 

24 under subsection (b)) to the personal retirement 

25 account held by such individual, plus 
36

•S 1878 IS 

1 ‘‘(ii) accrued interest on such amount com2 pounded annually—

3 ‘‘(I) assuming an interest rate equal 

4 to the long-term government bond rate 

5 minus 0.3 percentage points, and 

6 ‘‘(II) using the mortality table used 

7 under 412(l)(7)(C)(ii) of the Internal Rev8 enue Code of 1986.

9 ‘‘(2) In the case of an individual who becomes entitled 

10 to disability insurance benefits under section 223, such in11 dividual’s primary insurance amount shall be determined 

12 without regard to paragraph (1). 

13 ‘‘(3) For purposes of this subsection, the term ‘imme14 diate life annuity’ means an annuity—

15 ‘‘(A) the annuity starting date (as defined in 

16 section 72(c)(4) of the Internal Revenue Code of 

17 1986) of which commences with the first month fol18 lowing the date of the determination, and 

19 ‘‘(B) which provides for a series of substantially 

20 equal monthly payments over the life expectancy of 

21 the individual.’’.

22 (b) CONFORMING AMENDMENT TO RAILROAD RE23 TIREMENT ACT OF 1974.—Section 1 of the Railroad Re24 tirement Act of 1974 (45 U.S.C. 231) is amended by add25 ing at the end the following: 
37

•S 1878 IS 

1 ‘‘(s) In applying applicable provisions of the Social 

2 Security Act for purposes of determining the amount of 

3 the annuity to which an individual is entitled under this 

4 Act, section 215(j) of the Social Security Act and part 

5 B of title II of such Act shall be disregarded.’’. 

6 (c) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply with respect to computations and 

8 recomputations of primary insurance amounts occurring 

9 after December 31, 2005.

10 SEC. 104. MINIMUM SOCIAL SECURITY BENEFIT. 

11 Section 215 of the Social Security Act (42 U.S.C. 

12 415), as amended by section 103, is amended by adding 

13 at the end the following: 

14 ‘‘Minimum Monthly Insurance Benefit 

15 ‘‘(k)(1) Notwithstanding the preceding provisions of 

16 this section—

17 ‘‘(A) the primary insurance amount of a quali18 fied individual shall be equal to the greater of—

19 ‘‘(i) the primary insurance amount deter20 mined under this section (without regard to this 

21 subsection), or 

‘‘(ii) 1 22 ⁄12 of the applicable percentage of 

23 the income official poverty line (as defined by 

24 the Office of Management and Budget, and re25 vised annually in accordance with section
38

•S 1878 IS 

1 673(2) of the Omnibus Budget Reconciliation 

2 Act of 1981), and 

3 ‘‘(B) any recomputation of the primary insur4 ance amount of a qualified individual shall not result 

5 in a primary insurance amount less than the pri6 mary insurance amount as in effect immediately 

7 prior to such recomputation. 

8 ‘‘(2) For purposes of this subsection—

9 ‘‘(A) The term ‘qualified individual’ means an 

10 individual—

11 ‘‘(i) who is an eligible individual (as de12 fined under section 251(a)(2)) who did not elect 

13 supplemental contribution coverage under sec14 tion 252, and 

15 ‘‘(ii) who initially becomes eligible for old16 age insurance benefits or dies (before becoming 

17 eligible for such benefits) for a month beginning 

18 after December 31, 2006. 

19 ‘‘(B) The applicable percentage shall be 120 

20 percent reduced by 1.2 percentage points for each 

21 quarter of coverage of the qualified individual less 

22 than 140. 

23 ‘‘(3)(A) For any year before 2011, the amount deter24 mined under clause (ii) of paragraph (1)(A) shall be an 

25 amount equal to the phase-in percentage of the amount 
39

•S 1878 IS 

1 determined under such clause without regard to this para2 graph. 

3 ‘‘(B) The phase-in percentage shall be deter4 mined as follows:

‘‘Calendar year: Phase-in percentage: 

2007 ......................................................................................... 20

2008 ......................................................................................... 40

2009 ......................................................................................... 60

2010 ......................................................................................... 80.’’.

5 SEC. 105. TREATMENT OF DISABLED BENEFICIARIES. 

6 Section 215(a) of the Social Security Act (42 U.S.C. 

7 415(a)) is amended by adding at the end the following 

8 new paragraph: 

9 ‘‘(8)(A) Notwithstanding the preceding provisions of 

10 this subsection, in the case of an eligible individual (as 

11 defined under section 251(a)(2)) who has not elected sup12 plemental contribution coverage under section 252 and 

13 who has or has had a period of disability and becomes 

14 entitled to old-age insurance benefits under section 202(a) 

15 (or dies) in or after 2006, the primary insurance amount 

16 of such individual shall be the sum of— 

17 ‘‘(i) the amount determined under subpara18 graph (B), and 

19 ‘‘(ii) the product derived by multiplying—

20 ‘‘(I) the excess of the amount determined 

21 under subparagraph (C) over the amount deter22 mined under subparagraph (B), by 
40

•S 1878 IS 

1 ‘‘(II) the adjustment factor for such indi2 vidual determined under subparagraph (D). 

3 ‘‘(B) The amount determined under this subpara4 graph is the amount of such individual’s primary insur5 ance amount as determined under this section without re6 gard to this paragraph. 

7 ‘‘(C) The amount determined under this subpara8 graph is the amount of such individual’s primary insur9 ance amount as determined under this section as in effect 

10 with respect to individuals becoming eligible for old-age 

11 or disability insurance benefits under section 202(a) in 

12 2005. 

13 ‘‘(D) The adjustment factor determined under this 

14 subparagraph for any individual is the ratio (not greater 

15 than 1) of—

16 ‘‘(i) the number of months, preceding the ear17 lier of such individual’s first month of entitlement to 

18 old-age insurance benefits under section 202(a) or 

19 the month of such individual’s death, which occurred 

20 during a period of disability of such individual, to 

21 ‘‘(ii) 480.’’. 
41

•S 1878 IS 

1 Subtitle B—Amendments Related 

2 to the Internal Revenue Code of 

3 1986

4 SEC. 111. MODIFICATION OF FICA RATES. 

5 (a) EMPLOYEES.—Section 3101(a) of the Internal 

6 Revenue Code of 1986 (relating to tax on employees) is 

7 amended to read as follows: 

8 ‘‘(a) OLD-AGE, SURVIVORS, AND DISABILITY INSUR9 ANCE.—

10 ‘‘(1) IN GENERAL.—

11 ‘‘(A) INDIVIDUALS BORN BEFORE 1950.—

12 In addition to other taxes, there is hereby im13 posed on the income of every individual who is 

14 not a part B eligible individual a tax equal to 

15 6.2 percent of the wages received by him with 

16 respect to employment. 

17 ‘‘(B) INDIVIDUALS ELIGIBLE FOR PART B

18 OF TITLE II OF THE SOCIAL SECURITY ACT.—

19 In addition to other taxes, there is hereby im20 posed on the income of every part B eligible in21 dividual a tax equal to—

22 ‘‘(i) PERSONAL RETIREMENT AC23 COUNT.—In the case of an individual with 

24 a personal retirement account, the sum 

25 of—
42

•S 1878 IS 

1 ‘‘(I) 2.2 percent of the first 

2 $32,500 of the wages received by such 

3 individual with respect to employment 

4 in the calendar year, and 

5 ‘‘(II) 6.2 percent of any addi6 tional such wages received in the cal7 endar year. 

8 ‘‘(ii) BASIC BENEFIT.—In the case of 

9 an individual with basic benefit coverage, 

10 6.2 percent of such wages received in the 

11 calendar year. 

12 ‘‘(iii) SUPPLEMENTAL CONTRIBU13 TION.—In the case of an individual with 

14 supplemental contribution coverage, 8.2 

15 percent of such wages received in the cal16 endar year. 

17 ‘‘(2) CONTRIBUTION OF OASDI TAX REDUCTION

18 TO PERSONAL RETIREMENT ACCOUNTS.—In addition 

19 to other taxes, there is hereby imposed on the in20 come of every part B eligible individual who holds a 

21 personal retirement account for the calendar year a 

22 personal retirement account contribution equal to 

23 the sum of—

24 ‘‘(A) 4 percent of so much of the wages as 

25 does not exceed the first $32,500 received in
43

•S 1878 IS 

1 such calendar year by such individual with re2 spect to employment, plus 

3 ‘‘(B) so much of such wages (not to exceed 

4 $5,000) as designated by the individual in the 

5 same manner as described in section 

6 251(d)(1)(B) of the Social Security Act. 

7 ‘‘(3) INFLATION ADJUSTMENT BASED ON WAGE

8 INDEX.—

9 ‘‘(A) IN GENERAL.—In the case of any cal10 endar year beginning after 2006, the $32,500 

11 amount in paragraphs (1) and (2) and the 

12 $5,000 amounts in paragraph (2) shall be in13 creased by an amount equal to—

14 ‘‘(i) such dollar amount, multiplied by 

15 ‘‘(ii) the percentage increase (if any) 

16 for such year determined under section 

17 215(i) of the Social Security Act. 

18 ‘‘(B) ROUNDING.—If any dollar amount 

19 after being increased under subparagraph (A) is 

20 not a multiple of $10, such dollar amount shall 

21 be rounded to the nearest multiple of $10. 

22 ‘‘(4) DEFINITIONS.—For purposes of this sub23 section, the terms ‘personal retirement account’, 

24 ‘basic benefit coverage’, and ‘supplemental contribu25 tion coverage’ shall have the meaning given such 
44

•S 1878 IS 

1 terms under section 252 of the Social Security 

2 Act.’’. 

3 (b) SELF-EMPLOYED.—Section 1401(a) of the Inter4 nal Revenue Code of 1986 (relating to tax on self-employ5 ment income) is amended to read as follows: 

6 ‘‘(a) OLD-AGE, SURVIVORS, AND DISABILITY INSUR7 ANCE.—

8 ‘‘(1) IN GENERAL.—

9 ‘‘(A) INDIVIDUALS BORN BEFORE 1950.—

10 In addition to other taxes, there shall be im11 posed for each taxable year, on the self-employ12 ment income of every individual who is not a 

13 part B eligible individual for the calendar year 

14 ending with or during such taxable year, a tax 

15 equal to 12.4 percent of the amount of the self16 employment income for such taxable year. 

17 ‘‘(B) INDIVIDUALS ELIGIBLE FOR PART B

18 OF TITLE II OF THE SOCIAL SECURITY ACT.—

19 In addition to other taxes, there is hereby im20 posed for each taxable year, on the self-employ21 ment income of every part B eligible individual 

22 who is a part B eligible individual for the cal23 endar year ending with or during such taxable 

24 year, a tax equal to—
45

•S 1878 IS 

1 ‘‘(i) PERSONAL RETIREMENT AC2 COUNT.—In the case of an individual with 

3 a personal retirement account, the sum 

4 of—

5 ‘‘(I) 8.4 percent of the first 

6 $32,500 of the self-employment for 

7 such taxable year, and 

8 ‘‘(II) 12.4 percent of any addi9 tional self-employment income for 

10 such taxable year. 

11 ‘‘(ii) BASIC BENEFIT.—In the case of 

12 an individual with basic benefit coverage, 

13 12.4 percent of the self-employment for 

14 such taxable year. 

15 ‘‘(iii) SUPPLEMENTAL CONTRIBU16 TION.—In the case of an individual with 

17 supplemental contribution coverage, 14.4 

18 percent of the self-employment income for 

19 such taxable year. 

20 ‘‘(2) CONTRIBUTION OF OASDI TAX REDUCTION

21 TO PERSONAL RETIREMENT ACCOUNTS.—In addition 

22 to other taxes, there is hereby imposed for each tax23 able year on the self-employment income of every 

24 part B eligible individual who holds a personal re25 tirement account for the calendar year ending with 
46

•S 1878 IS 

1 or during such taxable year, a personal retirement 

2 account contribution equal to the sum of—

3 ‘‘(A) 4 percent of so much of the self-em4 ployment income as does not exceed the first 

5 $32,500 for such taxable, plus 

6 ‘‘(B) so much of such self-employment in7 come (not to exceed $5,000) as designated by 

8 the individual in the same manner as described 

9 in section 251(c) of the Social Security Act. 

10 ‘‘(3) INFLATION ADJUSTMENT BASED ON WAGE

11 INDEX.—

12 ‘‘(A) IN GENERAL.—In the case of any 

13 taxable year beginning after 2006, the $32,500 

14 amount in paragraphs (1) and (2) and the 

15 $5,000 amounts in paragraph (2) shall be in16 creased by an amount equal to—

17 ‘‘(i) such dollar amount, multiplied by 

18 ‘‘(ii) the percentage increase (if any) 

19 for the calendar year in which such taxable 

20 year begins determined under section 

21 215(i) of the Social Security Act. 

22 ‘‘(B) ROUNDING.—If any dollar amount 

23 after being increased under subparagraph (A) is 

24 not a multiple of $10, such dollar amount shall 

25 be rounded to the nearest multiple of $10. 
47

•S 1878 IS 

1 ‘‘(4) DEFINITIONS.—For purposes of this sub2 section the terms ‘personal retirement account’, 

3 ‘basic benefit coverage’, and ‘supplemental contribu4 tion coverage’ shall have the meaning given such 

5 terms under section 252 of the Social Security 

6 Act.’’. 

7 (c) PART B ELIGIBLE INDIVIDUAL.—

8 (1) TAXES ON EMPLOYEES.—Section 3121 of 

9 such Code (relating to definitions) is amended by in10 serting after subsection (s) the following new sub11 section: 

12 ‘‘(t) PART B ELIGIBLE INDIVIDUAL.—For purposes 

13 of this chapter, the term ‘part B eligible individual’ means, 

14 for any calendar year, an individual who is an eligible indi15 vidual (as defined in section 251(a)(2) of the Social Secu16 rity Act) for such calendar year.’’. 

17 (2) SELF-EMPLOYMENT TAX.—Section 1402 of 

18 such Code (relating to definitions) is amended by 

19 adding at the end the following new subsection: 

20 ‘‘(l) PART B ELIGIBLE INDIVIDUAL.—The term ‘part 

21 B eligible individual’ means, for any calendar year, an in22 dividual who is an eligible individual (as defined in section 

23 251(a)(2) of the Social Security Act) for such calendar 

24 year.’’.
48

•S 1878 IS 

1 (d) REPORT ON NECESSARY INCREASES IN SUPPLE2 MENTAL CONTRIBUTION TAX RATE.—

3 (1) REPORT.—

4 (A) IN GENERAL.—The Board of Trustees 

5 of the Federal Old-Age and Survivors Insurance 

6 Trust Fund and the Federal Disability Insur7 ance Trust Fund shall submit to Congress an8 nually—

9 (i) a report on the actuarial deficit of 

10 such trust funds; and 

11 (ii) recommendations, including pro12 posed legislation, for adjusting the tax rate 

13 under section 3101(a)(1)(B)(iii) of the In14 ternal Revenue Code of 1986 and section 

15 1401(a)(1)(B)(iii) of such Code to elimi16 nate any such deficit. 

17 (B) ACTUARIAL DEFICIT.—

18 (i) IN GENERAL.—For purposes of 

19 subparagraph (A), the actuarial deficit is 

20 the excess of—

21 (I) the summarized income rate, 

22 over 

23 (II) the summarized cost rate. 

24 (ii) METHOD OF CALCULATION.—The 

25 calculation made under clause (i) shall be 
49

•S 1878 IS 

1 made assuming that all individuals who are 

2 eligible individuals (as defined in section 

3 251(a)(2) of the Social Security Act) have 

4 elected (or will elect) supplemental con5 tribution coverage (within the meaning of 

6 section 252(c)(2) of the Social Security 

7 Act) and shall be calculated by taking into 

8 account a period of 75 years. 

9 (iii) SUMMARIZED INCOME RATE.—

10 The term ‘summarized income rate’ means 

11 the ratio of the present value of the income 

12 of the Federal Old-Age and Survivors In13 surance Trust Fund and the Federal Dis14 ability Insurance Trust Fund to the 

15 present value of taxable payroll (as defined 

16 in section 202(a)(5)). 

17 (iv) SUMMARIZED COST RATE.—The 

18 term ‘summarized cost rate’ means the 

19 ratio of the present value of the costs of 

20 the Federal Old-Age and Survivors Insur21 ance Trust Fund and the Federal Dis22 ability Insurance Trust Fund to the 

23 present value of taxable payroll (as so de24 fined). 
50

•S 1878 IS 

1 (C) TIMING OF REPORT.—The report re2 quired under this subsection shall be submitted 

3 to Congress together with and under the same 

4 requirements as the report described in section 

5 201(c)(2) of the Social Security Act. 

6 (2) CONGRESSIONAL CONSIDERATION OF REC7 OMMENDATIONS.—

8 (A) DEFINITIONS.—In this section: 

9 (i) IMPLEMENTATION BILL.—The 

10 term ‘‘implementation bill’’ means only a 

11 bill which—

12 (I) is introduced as provided 

13 under subparagraph (B); and 

14 (II) contains the proposed legisla15 tion included in the report submitted 

16 to Congress under paragraph (1), but 

17 only if such proposed legislation raises 

18 the rate under section 

19 3101(a)(1)(B)(iii) and 

20 1401(a)(1)(B)(iii) at least 0.25 per21 centage points. 

22 (ii) CALENDAR DAY.—The term ‘‘cal23 endar day’’ means a calendar day other 

24 than one on which either House is not in 
51

•S 1878 IS 

1 session because of an adjournment of more 

2 than 3 days to a date certain. 

3 (B) INTRODUCTION; REFERRAL; AND RE4 PORT OR DISCHARGE.—

5 (i) INTRODUCTION.—On the first cal6 endar day on which both Houses are in 

7 session, on or immediately following the 

8 date on which the report is submitted to 

9 Congress under section 201(c)(6) of the 

10 Social Security Act, a single implementa11 tion bill shall be introduced (by request)—

12 (I) in the Senate by the Majority 

13 Leader of the Senate, for himself and 

14 the Minority Leader of the Senate, or 

15 by Members of the Senate designated 

16 by the Majority Leader and Minority 

17 Leader of the Senate; and 

18 (II) in the House of Representa19 tives by the Speaker of the House of 

20 Representatives, for himself and the 

21 Minority Leader of the House of Rep22 resentatives, or by Members of the 

23 House of Representatives designated 

24 by the Speaker and Minority Leader 

25 of the House of Representatives.
52

•S 1878 IS 

1 (ii) REFERRAL.—The implementation 

2 bills introduced under clause (i) shall be 

3 referred—

4 (I) in the Senate, to the Com5 mittee on Finance of the Senate; and 

6 (II) in the House of Representa7 tives, to the Committee on Ways and 

8 Means of the House of Representa9 tives. 

10 A committee to which an implementation 

11 bill is referred under this paragraph may 

12 report such bill to the respective House 

13 without amendment. 

14 (iii) REPORT OR DISCHARGE.—If a 

15 committee to which an implementation bill 

16 is referred has not reported such bill by 

17 the end of the 15th calendar day after the 

18 date of the introduction of such bill, such 

19 committee shall be immediately discharged 

20 from further consideration of such bill, and 

21 upon being reported or discharged from 

22 the committee, such bill shall be placed on 

23 the appropriate calendar. 

24 (C) FLOOR CONSIDERATION.—
53

•S 1878 IS 

1 (i) IN GENERAL.—When the com2 mittee to which an implementation bill is 

3 referred has reported, or has been dis4 charged under subparagraph (B)(iii), it is 

5 at any time thereafter in order (even 

6 though a previous motion to the same ef7 fect has been disagreed to) for any Mem8 ber of the respective House to move to pro9 ceed to the consideration of the implemen10 tation bill, and all points of order against 

11 the implementation bill (and against con12 sideration of the implementation bill) are 

13 waived. The motion is highly privileged in 

14 the House of Representatives and is privi15 leged in the Senate and is not debatable. 

16 The motion is not subject to amendment, 

17 or to a motion to postpone, or to a motion 

18 to proceed to the consideration of other 

19 business. A motion to reconsider the vote 

20 by which the motion is agreed to or dis21 agreed to shall not be in order. If a motion 

22 to proceed to the consideration of the im23 plementation bill is agreed to, the imple24 mentation bill shall remain the unfinished 
54

•S 1878 IS 

1 business of the respective House until dis2 posed of. 

3 (ii) AMENDMENTS.—An implementa4 tion bill may not be amended in the Senate 

5 or the House of Representatives. 

6 (iii) DEBATE.—Debate on the imple7 mentation bill, and on all debatable mo8 tions and appeals in connection therewith, 

9 shall be limited to not more than 10 hours, 

10 which shall be divided equally between 

11 those favoring and those opposing the reso12 lution. A motion further to limit debate is 

13 in order and not debatable. An amendment 

14 to, or a motion to postpone, or a motion to 

15 proceed to the consideration of other busi16 ness, or a motion to recommit the imple17 mentation bill is not in order. A motion to 

18 reconsider the vote by which the implemen19 tation bill is agreed to or disagreed to is 

20 not in order. 

21 (iv) VOTE ON FINAL PASSAGE.—Im22 mediately following the conclusion of the 

23 debate on an implementation bill, and a 

24 single quorum call at the conclusion of the 

25 debate if requested in accordance with the 
55

•S 1878 IS 

1 rules of the appropriate House, the vote on 

2 final passage of the implementation bill 

3 shall occur. 

4 (v) RULINGS OF THE CHAIR ON PRO5 CEDURE.—Appeals from the decisions of 

6 the Chair relating to the application of the 

7 rules of the Senate or the House of Rep8 resentatives, as the case may be, to the 

9 procedure relating to an implementation 

10 bill shall be decided without debate. 

11 (D) COORDINATION WITH ACTION BY

12 OTHER HOUSE.—If, before the passage by 1 

13 House of an implementation bill of that House, 

14 that House receives from the other House an 

15 implementation bill, then the following proce16 dures shall apply: 

17 (i) NONREFERRAL.—The implementa18 tion bill of the other House shall not be re19 ferred to a committee. 

20 (ii) VOTE ON BILL OF OTHER

21 HOUSE.—With respect to an implementa22 tion bill of the House receiving the imple23 mentation bill—

24 (I) the procedure in that House 

25 shall be the same as if no implementa-
56

•S 1878 IS 

1 tion bill had been received from the 

2 other House; but 

3 (II) the vote on final passage 

4 shall be on the implementation bill of 

5 the other House. 

6 (E) RULES OF SENATE AND HOUSE OF

7 REPRESENTATIVES.—This paragraph is enacted 

8 by Congress—

9 (i) as an exercise of the rulemaking 

10 power of the Senate and House of Rep11 resentatives, respectively, and as such it is 

12 deemed a part of the rules of each House, 

13 respectively, but applicable only with re14 spect to the procedure to be followed in 

15 that House in the case of an implementa16 tion bill described in subparagraph (A), 

17 and it supersedes other rules only to the 

18 extent that it is inconsistent with such 

19 rules; and 

20 (ii) with full recognition of the con21 stitutional right of either House to change 

22 the rules (so far as relating to the proce23 dure of that House) at any time, in the 

24 same manner, and to the same extent as in 

25 the case of any other rule of that House. 
57

•S 1878 IS 

1 (e) EFFECTIVE DATES.—

2 (1) EMPLOYEES.—The amendments made by 

3 subsections (a) and (c)(1) apply to remuneration 

4 paid after December 31, 2005. 

5 (2) SELF-EMPLOYED INDIVIDUALS.—The 

6 amendments made by subsections (b) and (c)(2) 

7 apply to taxable years beginning after December 31, 

8 2005. 

9 (3) CONGRESSIONAL IMPLEMENTATION OF TAX

10 RATE ADJUSTMENT.—Subsection (d)(2) shall apply 

11 to any report submitted to Congress under section 

12 201(c)(6) of the Social Security Act after 2005.

13 SEC. 112. MATCHING CONTRIBUTIONS. 

14 (a) IN GENERAL.—Part IV of subchapter A of chap15 ter 1 of the Internal Revenue Code of 1986 (relating to 

16 credits against tax) is amended by adding at the end the 

17 following new subpart: 

18 ‘‘Subpart H—Personal Retirement Account Credits

‘‘Sec. 54. Personal retirement account credit.’’.

19 ‘‘SEC. 54. PERSONAL RETIREMENT ACCOUNT CREDIT. 

20 ‘‘(a) ALLOWANCE OF CREDIT.—Each qualified part 

21 B eligible individual is entitled to a credit for the taxable 

22 year in an amount equal to the sum of—

23 ‘‘(1) $100, and 

24 ‘‘(2) an amount equal to—
58

•S 1878 IS 

1 ‘‘(A) 50 percent of the designated wages of 

2 such individual for the taxable year, 

3 ‘‘(B) 50 percent of the designated self-em4 ployment income of such individual for the tax5 able year, and 

6 ‘‘(C) 50 percent of the designated earned 

7 income credit. 

8 ‘‘(b) LIMITATIONS.—

9 ‘‘(1) AMOUNT.—The amount determined under 

10 paragraph (2) of subsection (a) with respect to such 

11 individual for any taxable year may not exceed $500. 

12 ‘‘(2) FAILURE TO MAKE VOLUNTARY CONTRIBU13 TIONS.—In the case of a qualified part B eligible in14 dividual with respect to whom the amount of wages 

15 designated under subparagraph (B) of section 

16 3101(a)(2) plus the amount self-employment income 

17 designated under subparagraph (B) of section 

18 1401(a)(2) for the taxable year is zero, the credit to 

19 which such individual is entitled under this section 

20 shall be equal to zero. 

21 ‘‘(c) DEFINITIONS.—For purposes of this section—

22 ‘‘(1) QUALIFIED PART B ELIGIBLE INDI23 VIDUAL.—The term ‘qualified part B eligible indi24 vidual’ means, for any calendar year, an individual—
59

•S 1878 IS 

1 ‘‘(A) who is an eligible individual (as de2 fined in section 251(a)(2) of the Social Security 

3 Act) for such calendar year, 

4 ‘‘(B) who is not less than 26 years-old for 

5 the entirety of such calendar year; and 

6 ‘‘(C) who earns less than $30,000 in wages 

7 (as defined in section 3121(a)) for such cal8 endar year. 

9 ‘‘(2) DESIGNATED WAGES.—The term ‘des10 ignated wages’ means with respect to any taxable 

11 year the amount designated under subparagraph (B) 

12 of section 3101(a)(2). 

13 ‘‘(3) DESIGNATED SELF-EMPLOYMENT IN14 COME.—The term ‘designated self-employment in15 come’ means with respect to any taxable year the 

16 amount designated under subparagraph (B) of sec17 tion 1401(a)(2) for such taxable year. 

18 ‘‘(4) DESIGNATED EARNED INCOME CREDIT.—

19 The term ‘designated earned income credit’ means 

20 the amount of the credit allowed under section 32 

21 for the taxable year that is designated by the quali22 fied part B eligible individual in the same manner as 

23 described in section 251 of the Social Security Act. 

24 ‘‘(d) CREDIT USED ONLY FOR PERSONAL RETIRE25 MENT ACCOUNT.—For purposes of this title, the credit al-
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•S 1878 IS 

1 lowed under this section with respect to any qualified part 

2 B eligible individual—

3 ‘‘(1) shall not be treated as a credit allowed 

4 under this part, but 

5 ‘‘(2) shall be treated as an overpayment of tax 

6 under section 6401(b)(3) which may, in accordance 

7 with section 6402(l), only be transferred to an per8 sonal retirement account established under part B of 

9 title II of the Social Security Act with respect to 

10 such individual. 

11 ‘‘(e) INFLATION ADJUSTMENT.—

12 ‘‘(1) IN GENERAL.—In the case of any taxable 

13 year beginning after 2006, the $100 amount in sub14 section (a) and the $500 amount in subsection (b) 

15 shall each be increased by an amount equal to—

16 ‘‘(A) such dollar amount, multiplied by 

17 ‘‘(B) the cost-of-living adjustment deter18 mined under section 1(f)(3) for the calendar 

19 year in which the taxable year begins, deter20 mined by substituting ‘calendar year 2006’ for 

21 ‘calendar year 1992’ in subparagraph (B) 

22 thereof. 

23 ‘‘(2) ROUNDING.—If any amount adjusted 

24 under subparagraph (A) is not a multiple of $10, 
61

•S 1878 IS 

1 such amount shall be rounded to the next lowest 

2 multiple of $10.’’. 

3 (b) CONTRIBUTION OF EITC AMOUNTS TO PER4 SONAL RETIREMENT ACCOUNTS.—Section 32 of such 

5 Code (relating to earned income) is amended by adding 

6 at the end the following new subsection: 

7 ‘‘(n) CONTRIBUTION TO PERSONAL RETIREMENT AC8 COUNT.—

9 ‘‘(1) IN GENERAL.—A qualified part B eligible 

10 individual (as defined in section 54) who is allowed 

11 a credit under this section may designate all or a 

12 portion of such credit as a contribution to the per13 sonal retirement account established on behalf of 

14 such individual. 

15 ‘‘(2) CREDIT USED ONLY FOR PERSONAL RE16 TIREMENT ACCOUNT.—For purposes of this title, the 

17 amount designated under paragraph (1) with respect 

18 to any qualified part B eligible individual—

19 ‘‘(A) shall not be treated as a credit al20 lowed under this section, but 

21 ‘‘(B) shall be treated as an overpayment of 

22 tax under section 6401(b)(3) which may, in ac23 cordance with section 6402(l), only be trans24 ferred to an personal retirement account estab-
62

•S 1878 IS 

1 lished under part B of title II of the Social Se2 curity Act with respect to such individual.’’. 

3 (c) CONTRIBUTION OF CREDITED AMOUNTS TO PER4 SONAL RETIREMENT ACCOUNT.—

5 (1) CREDITED AMOUNTS TREATED AS OVER6 PAYMENT OF TAX.—Subsection (b) of section 6401 

7 of such Code (relating to excessive credits) is amend8 ed by adding at the end the following new para9 graph: 

10 ‘‘(3) SPECIAL RULE FOR CREDIT UNDER SEC11 TIONS 32 AND 54.—Subject to the provisions of sec12 tion 6402(l), the sum of the following shall be con13 sidered an overpayment: 

14 ‘‘(A) SECTION 54 CREDIT.—The amount of 

15 any credit allowed under section 54 for any tax16 able year. 

17 ‘‘(B) SECTION 32 DESIGNATED EARNED IN18 COME CREDIT CONTRIBUTION.—The amount of 

19 the earned income credit designated as a con20 tribution to an personal retirement account 

21 under section 32(n) for the taxable year.’’. 

22 (2) TRANSFER OF CREDIT AMOUNT PERSONAL

23 RETIREMENT ACCOUNT.—Section 6402 of such Code 

24 (relating to authority to make credits or refunds) is
63

•S 1878 IS 

1 amended by adding at the end the following new 

2 subsection: 

3 ‘‘(l) OVERPAYMENTS ATTRIBUTABLE TO PERSONAL

4 RETIREMENT ACCOUNT CREDIT.—In the case of any 

5 overpayment described in section 6401(b)(3) with respect 

6 to any individual, the Secretary shall transfer for crediting 

7 by the Commissioner of Social Security to the personal 

8 retirement account of such individual, an amount equal 

9 to the amount of such overpayment.’’. 

10 (d) NOTICE TO EITC RECIPIENTS OF MATCHING

11 CONTRIBUTIONS TO PERSONAL RETIREMENT SECURITY

12 ACCOUNTS.—In connection with information and tax 

13 forms relating to the credit allowed under section 32 of 

14 the Internal Revenue Code of 1986, the Secretary of the 

15 Treasury shall provide notice of the availability of match16 ing contributions pursuant to section 54 of such Code (as 

17 added by subsection (a) of this section) to personal retire18 ment accounts under part B of title II of the Social Secu19 rity Act. 

20 (e) CONFORMING AMENDMENTS.—

21 (1) Section 1324(b)(2) of title 31, United 

22 States Code, is amended by inserting before the pe23 riod at the end ‘‘, or enacted by the Social Security 

24 Solvency and Modernization Act of 2003’’. 
64

•S 1878 IS 

1 (2) The table of subparts for part IV of sub2 chapter A of chapter 1 of the Internal Revenue Code 

3 of 1986 is amended by adding at the end the fol4 lowing new item:

‘‘Subpart H. Personal Retirement Account Credits.’’.

5 (f) EFFECTIVE DATE.—The amendments made by 

6 this subsection shall apply to refunds payable after De7 cember 31, 2005.

8 SEC. 113. TAX TREATMENT OF PERSONAL RETIREMENT AC9 COUNTS. 

10 (a) IN GENERAL.—Subchapter F of chapter 1 of the 

11 Internal Revenue Code of 1986 (relating to exempt organi12 zations) is amended by adding at the end the following 

13 new part: 

14 ‘‘PART IX—PERSONAL RETIREMENT ACCOUNTS

‘‘Sec. 530A. Personal retirement account fund and federally-administered personal retirement accounts. 

‘‘Sec. 530B. Personal retirement accounts.

15 ‘‘SEC. 530A. PERSONAL RETIREMENT ACCOUNT FUND AND 

16 FEDERALLY-ADMINISTERED PERSONAL RE17 TIREMENT ACCOUNTS. 

18 ‘‘The Personal Retirement Account Fund established 

19 under section 261 of the Social Security Act shall be ex20 empt from taxation under this subtitle. 

21 ‘‘SEC. 530B. PERSONAL RETIREMENT ACCOUNTS. 

22 ‘‘(a) IN GENERAL.—For purposes of this section, the 

23 term ‘personal retirement account’ means a federally-ad-
65

•S 1878 IS 

1 ministered personal retirement account or a privately-ad2 ministered personal retirement account. 

3 ‘‘(b) PERSONAL RETIREMENT ACCOUNTS DE4 FINED.—For purposes of subsection (a)—

5 ‘‘(1) FEDERALLY-ADMINISTERED PERSONAL

6 RETIREMENT ACCOUNT.—The term ‘federally-admin7 istered personal retirement account’ means the ac8 count established under section 251 of the Social Se9 curity Act. 

10 ‘‘(2) PRIVATELY-ADMINISTERED PERSONAL RE11 TIREMENT ACCOUNT.—The term ‘privately-adminis12 tered personal retirement account’ means a trust 

13 created or organized in the United States exclusively 

14 for the benefit of an individual, but only if the writ15 ten governing instrument creating the trust meets 

16 the following requirements: 

17 ‘‘(A) Except in the case of rollover con18 tributions from another personal retirement ac19 count of such individual—

20 ‘‘(i) no contribution will be accepted 

21 unless it is in cash, 

22 ‘‘(ii) contributions will not be accepted 

23 for the taxable year in excess of the sum 

24 of—
66

•S 1878 IS 

1 ‘‘(I) the amounts collected with 

2 respect to such individual under sec3 tions 3101(a)(2) and 1401(a)(2), and 

4 ‘‘(II) the amounts transferred to 

5 such account under section 6402(l), 

6 and 

7 ‘‘(iii) any contributions with respect to 

8 an account holder which are not accepted 

9 pursuant to this paragraph are promptly 

10 refunded directly to the account holder. 

11 ‘‘(B) The trustee is a institution which is 

12 certified under subpart 3 of part B of title II 

13 of the Social Security Act. 

14 ‘‘(C) No part of the trust funds will be in15 vested in life insurance contracts. 

16 ‘‘(D) The interest of an individual in the 

17 balance in such individual’s account is non18 forfeitable. 

19 ‘‘(E) The assets of the trust will not be 

20 commingled with other property except in a 

21 common trust fund or common investment 

22 fund. 

23 ‘‘(c) CONTRIBUTIONS.—

24 ‘‘(1) IN GENERAL.—No deduction shall be al25 lowed for contributions credited to a personal retire-
67

•S 1878 IS 

1 ment account under section 251 of the Social Secu2 rity Act or amounts transferred to such account 

3 under section 6402(l). 

4 ‘‘(2) ROLLOVERS.—

5 ‘‘(A) ROLLOVER FROM PERSONAL RETIRE6 MENT ACCOUNT.—The entire balance of a per7 sonal retirement account of the account holder 

8 may be rolled over to another personal retire9 ment account of the account holder. 

10 ‘‘(B) ROLLOVER OF INHERITANCE.—Any 

11 portion of a distribution to a spouse or an heir 

12 from a personal retirement account made by 

13 reason of the death of the beneficiary of such 

14 account may be rolled over to the personal re15 tirement account of the spouse or heir. 

16 ‘‘(d) TAX TREATMENT OF ACCOUNTS.—

17 ‘‘(1) EXEMPTION FROM TAX.—A personal re18 tirement account is exempt from taxation under this 

19 subtitle unless such account has ceased to be a per20 sonal retirement account by reason of paragraph (2). 

21 Notwithstanding the preceding sentence, any such 

22 account is subject to the taxes imposed by section 

23 511 (relating to imposition of tax on unrelated busi24 ness income of charitable, etc. organizations).
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•S 1878 IS 

1 ‘‘(2) ACCOUNT TERMINATIONS.—Rules similar 

2 to the rules of paragraphs (2) and (4) of section 

3 408(e) shall apply to privately-administered personal 

4 retirement accounts, and any amount treated as dis5 tributed under such rules shall be includible in gross 

6 income and shall not be treated as a social security 

7 benefit for purposes of section 86. 

8 ‘‘(3) ROLLOVER CONTRIBUTION.—

9 ‘‘(A) IN GENERAL.—An amount is de10 scribed in this paragraph as a rollover contribu11 tion if it meets the requirements of subpara12 graphs (B) and (C). 

13 ‘‘(B) IN GENERAL.—The requirements of 

14 this subparagraph are met with respect to an 

15 amount paid or distributed from a personal re16 tirement account to the account holder only if 

17 the entire amount in such account is received 

18 by the account holder and is paid into another 

19 personal retirement account for the benefit of 

20 such holder not later than the 60th day after 

21 the day on which the holder receives the pay22 ment or distribution. 

23 ‘‘(C) LIMITATION.—This paragraph shall 

24 not apply to any amount described in subpara25 graph (A) received by an individual from a pri-
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•S 1878 IS 

1 vately-administered personal retirement account 

2 if, at any time during the 1-year period ending 

3 on the day of such receipt, such individual re4 ceived on 1 other occasions any other amount 

5 described in subparagraph (A) from a personal 

6 retirement account which was not includible in 

7 the individual’s gross income because of the ap8 plication of this paragraph. 

9 ‘‘(e) DISTRIBUTIONS.—

10 ‘‘(1) IN GENERAL.—The portion of any dis11 tribution from a personal retirement account under 

12 section 254 of the Social Security Act which is at13 tributable to amounts contributed to such account 

14 under section 3101(a)(2) (other than subparagraph 

15 (B) thereof) and section 1401(a)(2) (other than sub16 paragraph (B) thereof), together with earnings 

17 thereon, shall be includible in gross income as a so18 cial security benefit for purposes of section 86. 

19 ‘‘(2) VOLUNTARY CONTRIBUTIONS.—The por20 tion of any distribution from a personal retirement 

21 account under section 254 of the Social Security Act 

22 which is attributable to amounts contributed to such 

23 account under subparagraph (B) of section 

24 3101(a)(2), subparagraph (B) of section 1401(a)(2), 
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•S 1878 IS 

1 and section 6402(l), together with earnings thereon, 

2 shall not be includible in gross income. 

3 ‘‘(3) PERIOD IN WHICH DISTRIBUTIONS MUST

4 BE MADE FROM ACCOUNT OF DECEDENT.—In the 

5 case of amounts remaining in a personal retirement 

6 account from which distributions began before the 

7 death of the beneficiary, rules similar to the rules of 

8 section 401(a)(9)(B) shall apply to distributions of 

9 such remaining amounts. 

10 ‘‘(4) ROLLOVERS.—Paragraph (1) shall not 

11 apply to amounts rolled over under subsection (c)(2) 

12 in a direct transfer by the Commissioner of Social 

13 Security, under regulations which the Commissioner 

14 shall prescribe. 

15 ‘‘(f) ACCOUNT BENEFICIARY.—For purposes of this 

16 section, the account beneficiary is the individual for whose 

17 benefit the personal retirement account is established.’’. 

18 (b) CLERICAL AMENDMENT.—The table of parts for 

19 subchapter F of chapter 1 of the Internal Revenue Code 

20 of 1986 is amended by adding after the item relating to 

21 part VIII the following new item:

‘‘Part IX. Personal retirement accounts.’’.

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to taxable years beginning after 

24 December 31, 2005. 
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•S 1878 IS 

1 TITLE II—SOCIAL SECURITY 

2 FINANCIAL SUSTAINABILITY 

3 Subtitle A—Commission on the Re4 view of Federal Agencies and 

5 Programs 

6 SEC. 201. ESTABLISHMENT OF COMMISSION. 

7 (a) ESTABLISHMENT.—There is established the Com8 mission on the Review of Federal Agencies and Programs 

9 (hereafter in this subtitle referred to as the ‘‘Commis10 sion’’). 

11 (b) MEMBERSHIP.—

12 (1) INITIAL APPOINTMENT.—The Commis13 sioners shall be composed of 9 members of whom—

14 (A) 3 shall be appointed by the President 

15 of the United States; 

16 (B) 2 shall be appointed by the Speaker of 

17 the House of Representatives; 

18 (C) 1 shall be appointed by the minority 

19 Leader of the House of Representatives; 

20 (D) 2 shall be appointed by the majority 

21 Leader of the Senate; and 

22 (E) 1 shall be appointed by the minority 

23 Leader of the Senate. 

24 (2) CHAIRPERSON AND VICE CHAIRPERSON.—

25 The President shall designate a chairperson and vice
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•S 1878 IS 

1 chairperson from among the members of the Com2 mission. 

3 (c) TERMS.—

4 (1) IN GENERAL.—A member of the Commis5 sion shall be appointed for a term of 6 years, except 

6 that with respect to the members initially ap7 pointed—

8 (A) the members appointed under sub9 section (b)(1)(A) shall be appointed for a term 

10 of 6 years; 

11 (B) the members appointed under subpara12 graphs (B) and (C) of subsection (b)(1) shall be 

13 appointed for terms of 4 years; and 

14 (C) the members appointed under subpara15 graphs (D) and (E) of subsection (b)(1) shall 

16 be appointed for terms of 2 years. 

17 (2) EXPIRATION OF TERMS.—The term of any 

18 member shall not expire before the date on which 

19 the member’s successor takes office. 

20 (d) VACANCIES.— 

21 (1) IN GENERAL.—Any vacancy (including an 

22 expired term) on the Commission shall be filled by 

23 an appointment made by the President in consulta24 tion with the Speaker of the House of Representa25 tives, the minority leader of the House of Represent-
73

•S 1878 IS 

1 atives, the majority Leader of the Senate, and the 

2 minority Leader of the Senate. Any person so ap3 pointed shall be subject to any conditions which ap4 plied with respect to the original appointment. 

5 (2) REAPPOINTMENTS.—A member who has 

6 previously served on the commission may be re7 appointed to the Commission in the manner de8 scribed in paragraph (1). 

9 (e) MEETINGS.—

10 (1) INITIAL MEETING.—Not later than 60 days 

11 after the date on which all members of the Commis12 sion have been appointed, the Commission shall hold 

13 its first meeting. 

14 (2) SUBSEQUENT MEETINGS.—The Commission 

15 shall meet at the call of the chairperson, but not less 

16 than once per year. 

17 (f) QUORUM.—A majority of the members of the 

18 Commission shall constitute a quorum, but a lesser num19 ber of members may hold hearings. 

20 SEC. 202. DUTIES OF THE COMMISSION. 

21 (a) DEFINITIONS.—For purposes of this subtitle: 

22 (1) AGENCY.—

23 (A) IN GENERAL.—Except as provided in 

24 subparagraph (B), the term ‘‘agency’’ has the 

25 meaning given the term ‘‘Executive agency’’ 
74

•S 1878 IS 

1 under section 105 of title 5, United States 

2 Code. 

3 (B) EXCEPTIONS.—The term ‘‘agency’’ 

4 does not include—

5 (i) the Department of Defense or its 

6 subdivisions; or 

7 (ii) any agency that solely administers 

8 entitlement programs. 

9 (2) ENTITLEMENT PROGRAM.—The term ‘‘enti10 tlement program’’ means any program that makes 

11 payments (including loans and grants), the budget 

12 authority for which is not provided for in advance by 

13 appropriation Acts, to any person or government if, 

14 under the provisions of the law containing such au15 thority, the United States is obligated to make such 

16 payments to persons or governments who meet the 

17 requirements established by such law. 

18 (3) PROGRAM.—

19 (A) IN GENERAL.—Except as provided in 

20 subparagraph (B), the term ‘‘program’’ means 

21 any activity or function of an agency. 

22 (B) EXCEPTION.—The term ‘‘program’’ 

23 does not include entitlement programs. 
75

•S 1878 IS 

1 (4) INEQUITABLE FEDERAL SUBSIDY.—the 

2 term ‘‘inequitable Federal subsidy’’ means a pay3 ment, benefit, service, or tax advantage that—

4 (A) is provided by the Federal Government 

5 to any corporation, partnership, joint venture, 

6 association, or business trust, but not includ7 ing—

8 (i) a nonprofit organization described 

9 under section 501(c)(3) of the Internal 

10 Revenue Code of 1986 that is exempt from 

11 taxation under section 501(a) of such 

12 Code; or 

13 (ii) a State or local government or In14 dian Tribe or Alaska Native village or re15 gional or village corporation as defined in 

16 or established pursuant to the Alaska Na17 tive Claims Settlement Act (43 U.S.C. 

18 1601 et seq.); 

19 (B) is provided without a reasonable expec20 tation, demonstrated with the use of reliable 

21 performance criteria, that actions or activities 

22 undertaken or performed in return for such 

23 payment, benefit, service, or tax advantage 

24 would result in a return or benefit, quantifiable 

25 or nonquantifiable, to the public at least as 
76

•S 1878 IS 

1 great as the payment, benefit, service, or tax 

2 advantage; and 

3 (C) provides an unfair competitive advan4 tage or financial windfall. 

5 Such term shall not include a payment, benefit, serv6 ice, or tax advantage that is necessary to protect 

7 Americans at home or abroad or to comply with 

8 international trade or treaty obligations. 

9 (5) TAXABLE PAYROLL.—The term ‘‘taxable 

10 payroll’’ means the amount of wages (as defined 

11 under section 3121(a) of the Internal Revenue Code 

12 of 1986) taxable under chapter 21 of such Code and 

13 the amount of self-employment income (as defined 

14 under section 1402(b) of such Code) taxable under 

15 chapter 2 of such Code, as determined by the Board 

16 of Trustees of the Federal Old-Age and Survivors 

17 Insurance Trust Fund and the Federal Disability 

18 Insurance Trust Fund. 

19 (b) IN GENERAL.—Each year, the Commission 

20 shall—

21 (1) evaluate all agencies and programs within 

22 those agencies, using the criteria under subsection 

23 (c); and 

24 (2) submit to Congress—
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•S 1878 IS 

1 (A) a plan with recommendations of the in2 equitable Federal subsidies, agencies, and pro3 grams that should be realigned or eliminated to 

4 achieve savings equal to 1.25 percent of the 

5 taxable payroll for the preceding year; and 

6 (B) proposed legislation to implement the 

7 plan described under subparagraph (A). 

8 (c) CRITERIA.—

9 (1) INEQUITABLE FEDERAL SUBSIDY.—The 

10 Commission shall recommend the elimination of any 

11 inequitable Federal subsidy. 

12 (2) DUPLICATIVE.—If 2 or more agencies or 

13 programs are performing the same essential function 

14 and the function can be consolidated or streamlined 

15 into a single agency or program, the Commission 

16 shall recommend that the agency or program be re17 aligned.

18 (3) WASTEFUL OR INEFFICIENT.—The Com19 mission shall recommend the realignment or elimi20 nation of any agency or program that has wasted 

21 Federal funds by—

22 (A) egregious spending; 

23 (B) mismanagement of resources and per24 sonnel; or 
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•S 1878 IS 

1 (C) use of such funds for personal benefit 

2 or the benefit of a special interest group. 

3 (4) OUTDATED, IRRELEVANT, OR FAILED.—The 

4 Commission shall recommend the elimination of any 

5 agency or program that—

6 (A) has completed its intended purpose; 

7 (B) has become irrelevant; or 

8 (C) has failed to meet its objectives. 

9 (d) REPORTS.—

10 (1) TIMING.—

11 (A) IN GENERAL.—Except as provided in 

12 paragraph (2), the Commission shall submit to 

13 the President and Congress a report containing 

14 the information described in paragraph (2) not 

15 later the day on which the President submits 

16 the budget to Congress under section 1105 of 

17 title 31, United States Code. 

18 (B) INITIAL REPORT.—Not later than 1 

19 year after the date of the enactment of this Act, 

20 the Commission shall submit to the President 

21 and Congress an initial report containing the 

22 information described in paragraph (2). 

23 (2) CONTENTS OF REPORT.—The report de24 scribed in paragraph (1) shall include—
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•S 1878 IS 

1 (A) the plan described under subsection 

2 (b)(2)(A), with supporting documentation for 

3 all recommendations; and 

4 (B) the proposed legislation described 

5 under subsection (b)(2)(B). 

6 SEC. 203. POWERS OF THE COMMISSION. 

7 (a) HEARINGS.—The Commission or, at its direction, 

8 any subcommittee or member of the Commission, may, for 

9 the purpose of carrying out this subtitle—

10 (1) hold such hearings, sit and act at such 

11 times and places, take such testimony, receive such 

12 evidence, and administer such oaths as any member 

13 of the Commission considers advisable; 

14 (2) require, by subpoena or otherwise, the at15 tendance and testimony of such witnesses as any 

16 member of the Commission considers advisable; and 

17 (3) require, by subpoena or otherwise, the pro18 duction of such books, records, correspondence, 

19 memoranda, papers, documents, tapes, and other 

20 evidentiary materials relating to any matter under 

21 investigation by the Commission. 

22 (b) SUBPOENAS.—

23 (1) ISSUANCE.—Subpoenas issued under sub24 section (a) shall bear the signature of the chair25 person of the Commission and shall be served by any 
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•S 1878 IS 

1 person or class of persons designated by the chair2 person for that purpose. 

3 (2) ENFORCEMENT.—In the case of contumacy 

4 or failure to obey a subpoena issued under sub5 section (a), the United States district court for the 

6 judicial district in which the subpoenaed person re7 sides, is served, or may be found, may issue an order 

8 requiring such person to appear at any designated 

9 place to testify or to produce documentary or other 

10 evidence. Any failure to obey the order of the court 

11 may be punished by the court as a contempt of that 

12 court. 

13 (c) INFORMATION FROM FEDERAL AGENCIES.—The 

14 Commission may secure directly from any Federal depart15 ment or agency such information as the Commission con16 siders necessary to carry out this subtitle. Upon request 

17 of the chairperson of the Commission, the head of such 

18 department or agency shall furnish such information to 

19 the Commission. 

20 (d) POSTAL SERVICES.—The Commission may use 

21 the United States mails in the same manner and under 

22 the same conditions as other departments and agencies of 

23 the Federal Government. 

24 (e) GIFTS.—The Commission may accept, use, and 

25 dispose of gifts or donations of services or property. 
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•S 1878 IS 

1 SEC. 204. COMMISSION PERSONNEL MATTERS. 

2 (a) COMPENSATION OF MEMBERS.—

3 (1) NON-FEDERAL MEMBERS.—Except as pro4 vided under subsection (b), each member of the 

5 Commission who is not an officer or employee of the 

6 Federal Government shall not be compensated. 

7 (2) FEDERAL OFFICERS OR EMPLOYEES.—All 

8 members of the Commission who are officers or em9 ployees of the United States shall serve without com10 pensation in addition to that received for their serv11 ices as officers or employees of the United States. 

12 (b) TRAVEL EXPENSES.—The members of the Com13 mission shall be allowed travel expenses, including per 

14 diem in lieu of subsistence, at rates authorized for employ15 ees of agencies under subchapter I of chapter 57 of title 

16 5, United States Code, while away from their homes or 

17 regular places of business in the performance of services 

18 for the Commission. 

19 (c) STAFF.—

20 (1) IN GENERAL.—The chairperson of the Com21 mission may, without regard to the civil service laws 

22 and regulations, appoint and terminate an executive 

23 director and such other additional personnel as may 

24 be necessary to enable the Commission to perform 

25 its duties. The employment of an executive director 

26 shall be subject to confirmation by the Commission.
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•S 1878 IS 

1 (2) COMPENSATION.—Upon the approval of the 

2 chairperson, the executive director may fix the com3 pensation of the executive director and other per4 sonnel without regard to chapter 51 and subchapter 

5 III of chapter 53 of title 5, United States Code, re6 lating to classification of positions and General 

7 Schedule pay rates, except that the rate of pay for 

8 the executive director and other personnel may not 

9 exceed the maximum rate payable for a position at 

10 GS–15 of the General Schedule under section 5332 

11 of such title. 

12 (3) PERSONNEL AS FEDERAL EMPLOYEES.—

13 (A) IN GENERAL.—The executive director 

14 and any personnel of the Commission who are 

15 employees shall be employees under section 

16 2105 of title 5, United States Code, for pur17 poses of chapters 63, 81, 83, 84, 85, 87, 89, 

18 and 90 of that title. 

19 (B) MEMBERS OF COMMISSION.—Subpara20 graph (A) shall not be construed to apply to 

21 members of the Commission. 

22 (d) DETAIL OF GOVERNMENT EMPLOYEES.—Any 

23 Federal Government employee may be detailed to the 

24 Commission without reimbursement, and such detail shall 
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•S 1878 IS 

1 be without interruption or loss of civil service status or 

2 privilege. 

3 (e) PROCUREMENT OF TEMPORARY AND INTERMIT4 TENT SERVICES.—The chairperson of the Commission 

5 may procure temporary and intermittent services under 

6 section 3109(b) of title 5, United States Code, at rates 

7 for individuals which do not exceed the daily equivalent 

8 of the annual rate of basic pay prescribed for level V of 

9 the Executive Schedule under section 5316 of such title. 

10 SEC. 205. CONGRESSIONAL CONSIDERATION OF REFORM 

11 PROPOSALS. 

12 (a) DEFINITIONS.—In this section: 

13 (1) IMPLEMENTATION BILL.—The term ‘‘imple14 mentation bill’’ means only a bill which is introduced 

15 as provided under subsection (b), and contains the 

16 proposed legislation included in the report submitted 

17 to Congress under section 202, without modification. 

18 (2) CALENDAR DAY.—The term ‘‘calendar day’’ 

19 means a calendar day other than 1 on which either 

20 House is not in session because of an adjournment 

21 of more than 3 days to a date certain. 

22 (b) INTRODUCTION; REFERRAL; AND REPORT OR

23 DISCHARGE.—

24 (1) INTRODUCTION.—On the first calendar day 

25 on which both Houses are in session, on or imme-
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•S 1878 IS 

1 diately following the date on which the report is sub2 mitted to Congress under section 202, a single im3 plementation bill shall be introduced (by request)—

4 (A) in the Senate by the Majority Leader 

5 of the Senate, for himself and the Minority 

6 Leader of the Senate, or by Members of the 

7 Senate designated by the Majority Leader and 

8 Minority Leader of the Senate; and 

9 (B) in the House of Representatives by the 

10 Speaker of the House of Representatives, for 

11 himself and the Minority Leader of the House 

12 of Representatives, or by Members of the House 

13 of Representatives designated by the Speaker 

14 and Minority Leader of the House of Rep15 resentatives. 

16 (2) REFERRAL.—The implementation bills in17 troduced under paragraph (1) shall be referred to 

18 any appropriate committee of jurisdiction in the 

19 Senate and any appropriate committee of jurisdic20 tion in the House of Representatives. A committee 

21 to which an implementation bill is referred under 

22 this paragraph may report such bill to the respective 

23 House without amendment. 

24 (3) REPORT OR DISCHARGE.—If a committee to 

25 which an implementation bill is referred has not re-
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•S 1878 IS 

1 ported such bill by the end of the 15th calendar day 

2 after the date of the introduction of such bill, such 

3 committee shall be immediately discharged from fur4 ther consideration of such bill, and upon being re5 ported or discharged from the committee, such bill 

6 shall be placed on the appropriate calendar. 

7 (c) FLOOR CONSIDERATION.—

8 (1) IN GENERAL.—When the committee to 

9 which an implementation bill is referred has re10 ported, or has been discharged under subsection 

11 (b)(3), it is at any time thereafter in order (even 

12 though a previous motion to the same effect has 

13 been disagreed to) for any Member of the respective 

14 House to move to proceed to the consideration of the 

15 implementation bill, and all points of order against 

16 the implementation bill (and against consideration of 

17 the implementation bill) are waived. The motion is 

18 highly privileged in the House of Representatives 

19 and is privileged in the Senate and is not debatable. 

20 The motion is not subject to amendment, or to a 

21 motion to postpone, or to a motion to proceed to the 

22 consideration of other business. A motion to recon23 sider the vote by which the motion is agreed to or 

24 disagreed to shall not be in order. If a motion to 

25 proceed to the consideration of the implementation 
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•S 1878 IS 

1 bill is agreed to, the implementation bill shall remain 

2 the unfinished business of the respective House until 

3 disposed of. 

4 (2) AMENDMENTS.—An implementation bill 

5 may not be amended in the Senate or the House of 

6 Representatives. 

7 (3) DEBATE.—Debate on the implementation 

8 bill, and on all debatable motions and appeals in 

9 connection therewith, shall be limited to not more 

10 than 10 hours, which shall be divided equally be11 tween those favoring and those opposing the resolu12 tion. A motion further to limit debate is in order and 

13 not debatable. An amendment to, or a motion to 

14 postpone, or a motion to proceed to the consider15 ation of other business, or a motion to recommit the 

16 implementation bill is not in order. A motion to re17 consider the vote by which the implementation bill is 

18 agreed to or disagreed to is not in order. 

19 (4) VOTE ON FINAL PASSAGE.—Immediately 

20 following the conclusion of the debate on an imple21 mentation bill, and a single quorum call at the con22 clusion of the debate if requested in accordance with 

23 the rules of the appropriate House, the vote on final 

24 passage of the implementation bill shall occur.
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•S 1878 IS 

1 (5) RULINGS OF THE CHAIR ON PROCEDURE.—

2 Appeals from the decisions of the Chair relating to 

3 the application of the rules of the Senate or the 

4 House of Representatives, as the case may be, to the 

5 procedure relating to an implementation bill shall be 

6 decided without debate. 

7 (d) COORDINATION WITH ACTION BY OTHER

8 HOUSE.—If, before the passage by 1 House of an imple9 mentation bill of that House, that House receives from 

10 the other House an implementation bill, then the following 

11 procedures shall apply: 

12 (1) NONREFERRAL.—The implementation bill 

13 of the other House shall not be referred to a com14 mittee. 

15 (2) VOTE ON BILL OF OTHER HOUSE.—With 

16 respect to an implementation bill of the House re17 ceiving the implementation bill—

18 (A) the procedure in that House shall be 

19 the same as if no implementation bill had been 

20 received from the other House; but 

21 (B) the vote on final passage shall be on 

22 the implementation bill of the other House. 

23 (e) RULES OF SENATE AND HOUSE OF REPRESENTA24 TIVES.—This section is enacted by Congress—
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•S 1878 IS 

1 (1) as an exercise of the rulemaking power of 

2 the Senate and House of Representatives, respec3 tively, and as such it is deemed a part of the rules 

4 of each House, respectively, but applicable only with 

5 respect to the procedure to be followed in that 

6 House in the case of an implementation bill de7 scribed in subsection (a), and it supersedes other 

8 rules only to the extent that it is inconsistent with 

9 such rules; and 

10 (2) with full recognition of the constitutional 

11 right of either House to change the rules (so far as 

12 relating to the procedure of that House) at any time, 

13 in the same manner, and to the same extent as in 

14 the case of any other rule of that House. 

15 SEC. 206. TRANSFER OF 1.25 PERCENT OF TAXABLE PAY16 ROLL TO SOCIAL SECURITY. 

17 Not later than September 30 of each year, the Sec18 retary of the Treasury shall transfer an amount equal to 

19 1.25 percent of the taxable payroll for the preceding cal20 endar year to the Federal Old-Age and Survivors Insur21 ance Trust Fund. 

22 SEC. 207. AUTHORIZATION OF APPROPRIATIONS. 

23 There are authorized to be appropriated such sums 

24 as may be necessary for carrying out this subtitle. 
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•S 1878 IS 

1 Subtitle B—Other Sustainability 

2 Provisions 

3 SEC. 211. REDUCTION IN THE AMOUNT OF CERTAIN TRANS4 FERS TO MEDICARE TRUST FUND. 

5 Subparagraph (A) of section 121(e)(1) of the Social 

6 Security Amendments of 1983 (42 U.S.C. 401 note), as 

7 amended by section 13215(c)(1) of the Omnibus Budget 

8 Reconciliation Act of 1993, is amended—

9 (1) in clause (ii), by striking ‘‘the amounts’’ 

10 and inserting ‘‘the applicable percentage of the 

11 amounts’’; and 

12 (2) by adding at the end the following: ‘‘For 

13 purposes of clause (ii), the applicable percentage for 

14 a year is equal to 100 percent, reduced (but not 

15 below zero) by 10 percentage points for each year 

16 after 2005.’’. 

17 SEC. 212. MECHANISM FOR REMEDYING UNFORESEEN DE18 TERIORATION IN SOCIAL SECURITY SOL19 VENCY. 

20 (a) IN GENERAL.—Section 709 of the Social Security 

21 Act (42 U.S.C. 910) is amended—

22 (1) by redesignating subsection (b) as sub23 section (c); and 
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•S 1878 IS 

1 (2) by striking ‘‘SEC. 709. (a) If the Board of 

2 Trustees’’ and all that follows through ‘‘any such 

3 Trust Fund’’ and inserting the following: 

4 ‘‘SEC. 709. (a)(1)(A) If the Board of Trustees of the 

5 Federal Old-Age and Survivors Insurance Trust Fund and 

6 the Federal Disability Insurance Trust Fund determines 

7 at any time, using intermediate actuarial assumptions, 

8 that the balance ratio of either such Trust Fund for any 

9 calendar year during the succeeding period of 75 calendar 

10 years will be zero, the Board shall promptly submit to 

11 Congress and to the President a report setting forth its 

12 recommendations for statutory adjustments affecting the 

13 receipts and disbursements of such Trust Fund necessary 

14 to maintain the balance ratio of such Trust Fund at not 

15 less than 50 percent, with due regard to the economic con16 ditions which created such inadequacy in the balance ratio 

17 and the amount of time necessary to alleviate such inad18 equacy in a prudent manner. The report shall set forth 

19 specifically the extent to which benefits would have to be 

20 reduced, taxes under section 1401, 3101, or 3111 of the 

21 Internal Revenue Code of 1986 would have to be in22 creased, or a combination thereof, in order to obtain the 

23 objectives referred to in the preceding sentence. 

24 ‘‘(B) If the Board of Trustees of the Federal Old25 Age and Survivors Insurance Trust Fund and the Federal 
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•S 1878 IS 

1 Disability Insurance Trust Fund determines at any time, 

2 using intermediate actuarial assumptions, that the balance 

3 ratio of either such Trust Fund for any calendar year dur4 ing the succeeding period of 75 calendar years will be 200 

5 percent or greater, the Board shall promptly submit to 

6 Congress and to the President a report setting forth its 

7 recommendations on any of the following: 

8 ‘‘(i) An increase in the amount of contributions 

9 for personal retirement accounts under part B of 

10 title II of the Social Security Act. 

11 ‘‘(ii) An increase in the benefits under part A 

12 of title II of the Social Security Act. 

13 ‘‘(iii) A reduction in the tax rate under chapters 

14 2 and 21 of the Internal Revenue Code of 1986. 

15 ‘‘(iv) Any other proposal which ensures ade16 quate benefits for individuals covered under title II 

17 of the Social Security Act and maintains the sol18 vency and sustainability of the Federal Old-Age and 

19 Survivors Insurance Trust Fund and the Federal 

20 Disability Insurance Trust Fund. 

21 ‘‘(2)(A) The President shall, not later than 30 days 

22 after the submission of any report under paragraph (1), 

23 transmit to the Board and to Congress a report containing 

24 the President’s approval or disapproval of the Board’s rec25 ommendations.
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•S 1878 IS 

1 ‘‘(B) If the President approves all the recommenda2 tions of the Board, the President shall transmit a copy 

3 of such recommendations to Congress as the President’s 

4 recommendations, together with a certification of the 

5 President’s adoption of such recommendations.

6 ‘‘(C) If the President disapproves the recommenda7 tions of the Board, in whole or in part, the President shall 

8 transmit to the Board and to Congress the reasons for 

9 that disapproval. The Board shall then transmit to Con10 gress and the President, not later than 60 days after the 

11 date of the submission of the original report to the Presi12 dent, a revised list of recommendations. 

13 ‘‘(D) If the President approves all of the revised rec14 ommendations of the Board transmitted to the President 

15 under subparagraph (C), the President shall transmit a 

16 copy of such revised recommendations to Congress as the 

17 President’s recommendations, together with a certification 

18 of the President’s adoption of such recommendations. 

19 ‘‘(E) If the President disapproves the revised rec20 ommendations of the Board, in whole or in part, the Presi21 dent shall transmit to the Board and to Congress the rea22 sons for that disapproval, together with such revisions to 

23 such recommendations as the President determines are 

24 necessary to bring such recommendations within the 

25 President’s approval. The President shall transmit a copy 
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•S 1878 IS 

1 of such recommendations, as so revised, to the Board and 

2 Congress as the President’s recommendations, together 

3 with a certification of the President’s adoption of such rec4 ommendations. 

5 ‘‘(3)(A) This paragraph is enacted by Congress—

6 ‘‘(i) as an exercise of the rulemaking power of 

7 the Senate and the House of Representatives, re8 spectively, and as such it is deemed a part of the 

9 rules of each House, respectively, but applicable only 

10 with respect to the procedure to be followed in that 

11 House in the case of a joint resolution described in 

12 subparagraph (B), and it supersedes other rules only 

13 to the extent that it is inconsistent with such rules; 

14 and 

15 ‘‘(ii) with full recognition of the constitutional 

16 right of either House to change the rules (so far as 

17 relating to the procedure of that House) at any time, 

18 in the same manner, and to the same extent as in 

19 the case of any other rule of that House. 

20 ‘‘(B) For purposes of this paragraph, the term ‘joint 

21 resolution’ means only a joint resolution which is intro22 duced within the 10-day period beginning on the date on 

23 which the President transmits the President’s rec24 ommendations, together with the President’s certification, 
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•S 1878 IS 

1 to Congress under subparagraph (B), (D), or (E) of para2 graph (2), and—

3 ‘‘(i) which does not have a preamble; 

4 ‘‘(ii) the matter after the resolving clause of 

5 which is as follows: ‘That the Congress approves the 

6 recommendations of the President as transmitted on 

7 ll pursuant to section 709(a) of the Social Secu8 rity Act, as follows: llll’, the first blank space 

9 being filled in with the appropriate date and the sec10 ond blank space being filled in with the statutory ad11 justments contained in the recommendations; and 

12 ‘‘(iii) the title of which is as follows: ‘Joint reso13 lution approving the recommendations of the Presi14 dent regarding social security.’. 

15 ‘‘(C) A joint resolution described in subparagraph 

16 (B) that is introduced in the House of Representatives 

17 shall be referred to the Committee on Ways and Means 

18 of the House of Representatives. A joint resolution de19 scribed in subparagraph (B) introduced in the Senate 

20 shall be referred to the Committee on Finance of the Sen21 ate. 

22 ‘‘(D) If the committee to which a joint resolution de23 scribed in subparagraph (B) is referred has not reported 

24 such joint resolution (or an identical joint resolution) by 

25 the end of the 20-day period beginning on the date on 
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•S 1878 IS 

1 which the President transmits the recommendation to 

2 Congress under paragraph (2), such committee shall be, 

3 at the end of such period, discharged from further consid4 eration of such joint resolution, and such joint resolution 

5 shall be placed on the appropriate calendar of the House 

6 involved. 

7 ‘‘(E)(i) On or after the third day after the date on 

8 which the committee to which such a joint resolution is 

9 referred has reported, or has been discharged (under sub10 paragraph (D)) from further consideration of, such a joint 

11 resolution, it is in order (even though a previous motion 

12 to the same effect has been disagreed to) for any Member 

13 of the respective House to move to proceed to the consider14 ation of the joint resolution. A Member may make the mo15 tion only on the day after the calendar day on which the 

16 Member announces to the House concerned the Member’s 

17 intention to make the motion, except that, in the case of 

18 the House of Representatives, the motion may be made 

19 without such prior announcement if the motion is made 

20 by direction of the committee to which the joint resolution 

21 was referred. All points of order against the joint resolu22 tion (and against consideration of the joint resolution) are 

23 waived. The motion is highly privileged in the House of 

24 Representatives and is privileged in the Senate and is not 

25 debatable. The motion is not subject to amendment, or
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•S 1878 IS 

1 to a motion to postpone, or to a motion to proceed to the 

2 consideration of other business. A motion to reconsider the 

3 vote by which the motion is agreed to or disagreed to shall 

4 not be in order. If a motion to proceed to the consideration 

5 of the joint resolution is agreed to, the respective House 

6 shall immediately proceed to consideration of the joint res7 olution without intervening motion, order, or other busi8 ness, and the joint resolution shall remain the unfinished 

9 business of the respective House until disposed of. 

10 ‘‘(ii) Debate on the joint resolution, and on all debat11 able motions and appeals in connection therewith, shall be 

12 limited to not more than 2 hours, which shall be divided 

13 equally between those favoring and those opposing the 

14 joint resolution. An amendment to the joint resolution is 

15 not in order. A motion further to limit debate is in order 

16 and not debatable. A motion to postpone, or a motion to 

17 proceed to the consideration of other business, or a motion 

18 to recommit the joint resolution is not in order. A motion 

19 to reconsider the vote by which the joint resolution is 

20 agreed to or disagreed to is not in order. 

21 ‘‘(iii) Immediately following the conclusion of the de22 bate on a joint resolution described in subparagraph (B) 

23 and a single quorum call at the conclusion of the debate 

24 if requested in accordance with the rules of the appro-
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•S 1878 IS 

1 priate House, the vote on final passage of the joint resolu2 tion shall occur. 

3 ‘‘(iv) Appeals from the decisions of the Chair relating 

4 to the application of the rules of the Senate or the House 

5 of Representatives, as the case may be, to the procedure 

6 relating to a joint resolution described in subparagraph 

7 (B) shall be decided without debate. 

8 ‘‘(F)(i) If, before the passage by one House of a joint 

9 resolution of that House described in subparagraph (B), 

10 that House receives from the other House a joint resolu11 tion described in subparagraph (B), then the following 

12 procedures shall apply: 

13 ‘‘(I) The joint resolution of the other House 

14 shall not be referred to a committee and may not be 

15 considered in the House receiving it except in the 

16 case of final passage as provided in subclause (II). 

17 ‘‘(II) With respect to a joint resolution de18 scribed in subparagraph (B) of the House receiving 

19 the joint resolution, the procedure in that House 

20 shall be the same as if no joint resolution had been 

21 received from the other House, but the vote on final 

22 passage shall be on the joint resolution of the other 

23 House. 

24 ‘‘(ii) Upon disposition of the joint resolution received 

25 from the other House, it shall no longer be in order to 
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1 consider the joint resolution that originated in the receiv2 ing House. 

3 ‘‘(b) If the Board of Trustees of the Federal Hospital 

4 Insurance Trust Fund or the Federal Supplementary 

5 Medical Insurance Trust Fund determines at any time 

6 that the balance ratio of either such Trust Fund’’. 

7 (b) CONFORMING AMENDMENTS.—

8 (1) Section 709(b) of the Social Security Act 

9 (as amended by subsection (a) of this section) is 

10 amended by striking ‘‘any such’’ and inserting ‘‘ei11 ther such’’. 

12 (2) Section 709(c) of such Act (as redesignated 

13 by subsection (a) of this section) is amended by in14 serting ‘‘or (b)’’ after ‘‘subsection (a)’’. 

15 TITLE III—ADJUSTMENTS FOR 

16 WIDOWS’ AND WIDOWERS’ IN17 SURANCE BENEFITS 

18 SEC. 301. ADJUSTMENTS FOR WIDOWS’ AND WIDOWERS’ IN19 SURANCE BENEFITS. 

20 (a) WIDOW’S BENEFIT.—Section 202(e)(2)(A) of the 

21 Social Security Act (42 U.S.C. 402(e)(2)(A)) is amended 

22 by striking ‘‘equal to’’ and all that follows and inserting 

23 ‘‘equal to the greater of—

24 ‘‘(i) the primary insurance amount (as deter25 mined for purposes of this subsection after applica-
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•S 1878 IS 

1 tion of subparagraphs (B) and (C)) of such deceased 

2 individual, or 

3 ‘‘(ii) the lesser of—

4 ‘‘(I) 75 percent of the joint benefit which 

5 would have been received by the widow or sur6 viving divorced wife and the deceased individual 

7 for such month if such individual had not died, 

8 or 

9 ‘‘(II) the benefit which would have been re10 ceived by the widow or surviving divorced wife 

11 if such individual’s contributions were based on 

12 the average contribution and benefit base 

13 amount (determined under section 230) for 

14 each contribution base year (as determined 

15 under section 215(b)(2)(B)(ii)) of such indi16 vidual.’’. 

17 (b) WIDOWER’S BENEFIT.—Section 202(f)(3)(A) of 

18 the Social Security Act (42 U.S.C. 402(b)(3)(A)) is 

19 amended by striking ‘‘equal to’’ and all that follows and 

20 inserting ‘‘equal to the greater of—

21 ‘‘(i) the primary insurance amount (as deter22 mined for purposes of this subsection after applica23 tion of subparagraphs (B) and (C)) of such deceased 

24 individual, or 

25 ‘‘(ii) the lesser of—
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•S 1878 IS 

1 ‘‘(I) 75 percent of the joint benefit which 

2 would have been received by the widow or sur3 viving divorced wife and the deceased individual 

4 for such month if such individual had not died, 

5 or 

6 ‘‘(II) the benefit which would have been re7 ceived by the widower or surviving divorced hus8 band if such individual’s contributions were 

9 based on the average contribution and benefit 

10 base amount (determined under section 230) 

11 for each contribution base year (as determined 

12 under section 215(b)(2)(B)(ii)) of such indi13 vidual.’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply individuals entitled to benefits 

16 after the date of enactment of this Act. 

17 TITLE IV—INVESTOR 

18 EDUCATION PROGRAMS 

19 SEC. 401. ESTABLISHMENT OF THE COMMISSION TO 

20 STRENGTHEN FINANCIAL EDUCATION PRO21 GRAMS. 

22 (a) ESTABLISHMENT.—There is established the Com23 mission to Strengthen Financial Education Programs (in 

24 this Act referred to as the ‘‘Commission’’). 

25 (b) MEMBERSHIP.—
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•S 1878 IS 

1 (1) COMPOSITION.—The Commission shall be 

2 composed of 12 members of whom—

3 (A) 1 shall be the Chairman of the Per4 sonal Retirement Account Board; 

5 (B) 1 shall be the Secretary of the Treas6 ury; 

7 (C) 1 shall be the Secretary of Education; 

8 (D) 1 shall be the Chairman of the Federal 

9 Reserve Board; 

10 (E) 1 shall be the Secretary of Labor; 

11 (F) 1 shall be the Commissioner of the So12 cial Security Administration; 

13 (G) 1 shall be the Chairman of the Securi14 ties and Exchange Commission; and 

15 (H) 5 shall be appointed by the President 

16 from among persons who are recognized in the 

17 field of promoting understanding of financial 

18 literacy issues. 

19 (2) DATE.—The appointments of the members 

20 of the Commission under paragraph (1)(H) shall be 

21 made not later than 30 days after the date of the 

22 enactment of this Act. 

23 (c) PERIOD OF APPOINTMENT; VACANCIES.—Mem24 bers shall be appointed for the life of the Commission. Any 

25 vacancy in the Commission shall not affect its powers, but 
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1 shall be filled in the same manner as the original appoint2 ment. 

3 (d) INITIAL MEETING.—Not later than 60 days after 

4 the date of the enactment of this Act, the Commission 

5 shall hold its first meeting. 

6 (e) MEETINGS.—The Commission shall meet at the 

7 call of the Chairman. 

8 (f) QUORUM.—A majority of the members of the 

9 Commission shall constitute a quorum, but a lesser num10 ber of members may hold hearings. 

11 (g) CHAIRMAN AND VICE CHAIRMAN.—The Commis12 sion shall select a Chairman and Vice Chairman from 

13 among its members. 

14 SEC. 402. DUTIES OF THE COMMISSION. 

15 (a) STUDY.—

16 (1) IN GENERAL.—The Commission shall con17 duct a thorough study of all matters relating to pro18 grams to increase the financial literacy of Ameri19 cans. 

20 (2) MATTERS STUDIED.—The matters studied 

21 by the Commission shall include—

22 (A) existing Federal and non-Federal fi23 nancial literacy programs, including a review 

24 and performance evaluation of such programs; 
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1 (B) the coordination of existing Federal 

2 and non-Federal financial education efforts; and 

3 (C) ideas for new public initiatives to in4 crease the financial literacy of all Americans. 

5 (b) RECOMMENDATIONS.—The Commission shall de6 velop recommendations on—

7 (1) streamlining existing financial literacy pro8 grams; 

9 (2) increasing financial literacy for all Ameri10 cans; and 

11 (3) new avenues for public-private partnerships 

12 in financial literacy. 

13 (c) REPORT.—Not later than 6 months after the date 

14 of the enactment of this Act, the Commission shall submit 

15 a report to the President and to Congress which shall con16 tain a detailed statement of the findings and conclusions 

17 of the Commission, together with its recommendations for 

18 such legislation and administrative actions as it considers 

19 appropriate. 

20 SEC. 403. POWERS OF THE COMMISSION. 

21 (a) HEARINGS.—The Commission may hold such 

22 hearings, sit and act at such times and places, take such 

23 testimony, and receive such evidence as the Commission 

24 considers advisable to carry out this Act. 
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1 (b) INFORMATION FROM FEDERAL AGENCIES.—The 

2 Commission may secure directly from any Federal depart3 ment or agency such information as the Commission con4 siders necessary to carry out this Act. Upon request of 

5 the Chairman of the Commission, the head of such depart6 ment or agency shall furnish such information to the Com7 mission. 

8 (c) POSTAL SERVICES.—The Commission may use 

9 the United States mails in the same manner and under 

10 the same conditions as other departments and agencies of 

11 the Federal Government. 

12 (d) GIFTS.—The Commission may accept, use, and 

13 dispose of gifts or donations of services or property. 

14 SEC. 404. COMMISSION PERSONNEL MATTERS. 

15 (a) COMPENSATION OF MEMBERS.—Each member of 

16 the Commission who is not an officer or employee of the 

17 Federal Government shall be compensated at a rate equal 

18 to the daily equivalent of the annual rate of basic pay pre19 scribed for level IV of the Executive Schedule under sec20 tion 5315 of title 5, United States Code, for each day (in21 cluding travel time) during which such member is engaged 

22 in the performance of the duties of the Commission. All 

23 members of the Commission who are officers or employees 

24 of the United States shall serve without compensation in 
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1 addition to that received for their services as officers or 

2 employees of the United States. 

3 (b) TRAVEL EXPENSES.—The members of the Com4 mission shall be allowed travel expenses, including per 

5 diem in lieu of subsistence, at rates authorized for employ6 ees of agencies under subchapter I of chapter 57 of title 

7 5, United States Code, while away from their homes or 

8 regular places of business in the performance of services 

9 for the Commission. 

10 (c) STAFF.—

11 (1) IN GENERAL.—The Chairman of the Com12 mission may, without regard to the civil service laws 

13 and regulations, appoint and terminate an executive 

14 director and such other additional personnel as may 

15 be necessary to enable the Commission to perform 

16 its duties. The employment of an executive director 

17 shall be subject to confirmation by the Commission. 

18 (2) COMPENSATION.—The Chairman of the 

19 Commission may fix the compensation of the execu20 tive director and other personnel without regard to 

21 chapter 51 and subchapter III of chapter 53 of title 

22 5, United States Code, relating to classification of 

23 positions and General Schedule pay rates, except 

24 that the rate of pay for the executive director and 

25 other personnel may not exceed the rate payable for 
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1 level V of the Executive Schedule under section 5316 

2 of such title. 

3 (d) DETAIL OF GOVERNMENT EMPLOYEES.—Any 

4 Federal Government employee may be detailed to the 

5 Commission without reimbursement, and such detail shall 

6 be without interruption or loss of civil service status or 

7 privilege. 

8 (e) PROCUREMENT OF TEMPORARY AND INTERMIT9 TENT SERVICES.—The Chairman of the Commission may 

10 procure temporary and intermittent services under section 

11 3109(b) of title 5, United States Code, at rates for individ12 uals which do not exceed the daily equivalent of the annual 

13 rate of basic pay prescribed for level V of the Executive 

14 Schedule under section 5316 of such title. 

15 SEC. 405. TERMINATION OF THE COMMISSION. 

16 The Commission shall terminate 90 days after the 

17 date on which the Commission submits its report under 

18 section 402(c). 

19 SEC. 406. AUTHORIZATION OF APPROPRIATIONS. 

20 (a) IN GENERAL.—There are authorized to be appro21 priated such sums as are necessary for fiscal year 2004 

22 to the Commission to carry out this title. 
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1 (b) AVAILABILITY.—Any sums appropriated under 

2 the authorization contained in this section shall remain 

3 available, without fiscal year limitation, until expended.

Æ