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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1878 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Social Security 
Solvency and Modernization Act of 2003''.
    (b) Table of Contents.--The table of contents of 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.

                 TITLE I--PERSONAL RETIREMENT ACCOUNTS

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

SEC. 101. PERSONAL RETIREMENT ACCOUNTS.

    (a) Establishment and Maintenance of Personal Retirement 
Accounts.--Title II of the Social Security Act (42 U.S.C. 401 et seq.) 
is amended--
            (1) by inserting before section 201 the following:

                    ``Part A--Insurance Benefits'';

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

                 ``Part B--Personal Retirement Accounts

                     ``personal retirement accounts

    ``Sec. 251. (a) Establishment.--
            ``(1) In general.--Within 30 days after receiving the first 
        contribution under subsection (b) with respect to an eligible 
        individual, the Personal Retirement Account Board shall 
        establish a federally-administered personal retirement account 
        for such individual in the Personal Retirement Account Fund. 
        Each account shall be identified to the account holder by means 
        of the account holder's social security account number.
            ``(2) Eligible individual.--For purposes of this part, the 
        term `eligible individual' means any individual born after 
        December 31, 1949.
    ``(b) Contributions.--
            ``(1) Amounts transferred from the trust fund.--The 
        Secretary of the Treasury shall transfer from the Federal Old-
        Age and Survivors Insurance Trust Fund, for crediting by the 
        Personal Retirement Account Board to the personal retirement 
        account of an eligible individual, an amount equal to the sum 
        of any amount received by the Secretary on behalf of such 
        individual under section 3101(a)(2) or 1401(a)(2) of the 
        Internal Revenue Code of 1986.
            ``(2) Other contributions.--For provisions relating to 
        additional contributions credited to personal retirement 
        accounts, see section 6402(l) of the Internal Revenue Code of 
        1986.
    ``(c) Crediting Requirements.--Except as otherwise provided in 
section 253, contributions under subsection (b) on behalf of an 
eligible individual shall be credited--
            ``(1) to the personal retirement account established for 
        such individual under subsection (a); and
            ``(2) in accordance with the allocation in effect with 
        respect to such individual under subsection (d).
    ``(d) Allocation and Other Designations.--
            ``(1) In general.--Not later than June 1, 2005, the 
        Personal Retirement Account Board shall prescribe regulations 
        in accordance with which, once per year, any eligible 
        individual who is employed or self-employed may designate--
                    ``(A)(i) the fund or funds to which such individual 
                wishes to have such individual's contributions under 
                subsection (b) credited; and
                    ``(ii) if such individual designates more than 1 
                fund under clause (i), how such individual wishes for 
                those contributions to be allocated; and
                    ``(B) the amount of wages or self-employment income 
                such individual wishes to designate for purposes of 
                section 3101(a)(2)(B) or 1401(a)(2)(B) of the Internal 
                Revenue Code of 1986 (as applicable), if any.
            ``(2) Default allocation.--In the absence of a required 
        designation under paragraph (1)(A), contributions on behalf of 
        the eligible individual involved shall be allocated to the 
medium-risk balanced index fund described in section 261(b)(1)(B).
            ``(3) Form of designation.--Any designation under paragraph 
        (1) shall be made in such manner as the Personal Retirement 
        Account Board may prescribe in order to ensure ease of 
        administration and to avoid creating an undue burden on 
        employers.
    ``(e) Periodic Statements and Account Information.--
            ``(1) In general.--The Personal Retirement Account Board 
        shall prescribe regulations under which each eligible 
        individual for whom a personal retirement account is maintained 
        under this section shall be furnished with--
                    ``(A) an annual statement relating to such 
                individual's account, including, for any reporting 
                period as of the end of which such individual's account 
                balance is at least equal to the minimum balance amount 
                (within the meaning of section 253), clear and 
                conspicuous notice to that effect;
                    ``(B) a summary description of any investment 
                options or other choices which may be available to such 
                individual under this part; and
                    ``(C) any forms and information necessary to make a 
                designation under subsection (d) or section 253 (as 
                applicable).
            ``(2) Account access.--The Personal Retirement Account 
        Board shall prescribe regulations under which eligible 
        individuals may obtain account information through--
                    ``(A) the Internet; and
                    ``(B) an automatic calling system.

                 ``personal retirement account election

    ``Sec. 252. (a) In General.--
            ``(1) Election.--Not later than the date on which an 
        eligible individual attains the age of 26, such individual 
        shall elect--
                    ``(A) a personal retirement account; or
                    ``(B) part A coverage only.
        Any election made under this paragraph shall be irrevocable.
            ``(2) Special rules.--
                    ``(A) Individuals born before january 1, 1979.--In 
                the case of an eligible individual born before January 
                1, 1979, the election under paragraph (1) shall be made 
                not later than September 30, 2005.
                    ``(B) Other individuals.--In the case of any 
                eligible individual to whom subparagraph (A) or 
                paragraph (1) does not apply, the Personal Retirement 
                Account Board shall prescribe regulations regarding the 
                election under paragraph (1).
            ``(3) No election.--If an eligible individual has not made 
        an election under this subsection such individual shall be 
        deemed to have elected a personal retirement account.
            ``(4) Effective date of election.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any election made under this section 
                shall be effective on the date that is 60 days after 
                which such election is made.
                    ``(B) Individuals born before january 1, 1979.--Any 
                election made pursuant to paragraph (2)(A) shall be 
                effective on January 1, 2006.
    ``(b) Personal Retirement Account.--In the case of any eligible 
individual who elects a personal retirement account, the Personal 
Retirement Account Board shall maintain the personal retirement account 
established under section 251 for such individual in accordance with 
the requirements of this part.
    ``(c) Part A Coverage.--
            ``(1) In general.--In the case of any eligible individual 
        who elects part A coverage only--
                    ``(A) such individual shall be covered under part A 
                of this title only and shall not have a personal 
                retirement account; and
                    ``(B) the Chairman shall transfer any amount in 
                such individual's personal retirement account--
                            ``(i) to an individual retirement account 
                        (within the meaning of section 408 of the 
                        Internal Revenue Code of 1986) established for 
                        the benefit of such individual; or
                            ``(ii) at the election of such individual 
                        under regulations established by the Chairman, 
                        to an existing individual retirement account of 
                        such individual.
            ``(2) Further election.--An eligible individual who elects 
        part A coverage only shall make a further election of--
                    ``(A) basic benefit coverage under part A (as 
                amended by section 102 of the Social Security Solvency 
                and Modernization Act of 2003); or
                    ``(B) supplemental contribution coverage.
            ``(3) Supplemental contribution coverage oasdi tax rate.--
        For the old-age, survivors, and disability insurance tax rate 
        for eligible individuals who select the supplemental 
        contribution coverage under paragraph (2), see section 
        3101(a)(1)(B)(iii) of the Internal Revenue Code of 1986.
            ``(4) Basic benefit coverage pia amount.--For the primary 
        insurance amount under part A for eligible individuals who 
        select basic benefit coverage, see section 215(a)(1)(B)(iii).

         ``privately-administered personal retirement accounts

    ``Sec. 253. (a) Definitions.--For purposes of this part--
            ``(1) Minimum deposit amount.--The term `minimum deposit 
        amount' means an amount equal to $10,000.
            ``(2) Personal retirement account.--The term `personal 
        retirement account' means a federally administered personal 
        retirement account and a privately-administered personal 
        retirement account.
            ``(3) Federally-administered personal retirement account.--
        The term `federally-administered personal retirement account' 
        means a personal retirement account maintained, in 
accordance with applicable provisions of this section 251, in the 
Personal Retirement Account Fund.
            ``(4) Privately-administered personal retirement account.--
        The term `privately-administered personal retirement account' 
        means a personal retirement account maintained, in accordance 
        with applicable provisions of this section, by a certified 
        institution.
            ``(5) Certified institution.--The term `certified 
        institution' refers to an investment firm, credit union, 
        insurance company, or other certified institution under subpart 
        3.
    ``(b) Option To Designate a Privately-Administered Personal 
Retirement Account.--
            ``(1) In general.--Under regulations prescribed by the 
        Personal Retirement Account Board, whenever the balance in an 
        eligible individual's federally-administered personal 
        retirement account is at least equal to the minimum deposit 
        amount, such individual shall be eligible to designate a 
        privately-administered personal retirement account (established 
        and maintained on such individual's behalf) to serve as such 
        individual's personal retirement account under this part, in 
        lieu of such individual's federally-administered personal 
        retirement account.
            ``(2) Effect of designation.--If an eligible individual 
        makes a designation under paragraph (1)--
                    ``(A) the entire balance in such individual's 
                federally-administered personal retirement account 
                shall be promptly transferred to the privately-
                administered personal retirement account specified by 
                such individual in such designation; and
                    ``(B) that privately-administered personal 
                retirement account shall, for all purposes, be treated 
                as the electing individual's personal retirement 
                account, subject to paragraph (4).
            ``(3) Information required to be included.--A designation 
        under this subsection shall not be effective unless it is made 
        in such time, form, and manner as the Personal Retirement 
        Account Board prescribes.
            ``(4) Subsequent designations.--The Personal Retirement 
        Account Board shall provide by regulation opportunity for 
        subsequent designation, once per year, of another personal 
        retirement account in lieu of the account previously designated 
        under this section, subject to the following:
                    ``(A) Options available.--The account designated 
                under this paragraph may be either within--
                            ``(i) another certified institution, 
                        subject to subparagraph (B); or
                            ``(ii) the Personal Retirement Account 
                        Fund.
                    ``(B) Minimum balance.--In order to make a 
                designation referred to in subparagraph (A)(i), the 
                balance in the eligible individual's personal 
                retirement account must be at least equal to the 
                minimum deposit amount. No minimum balance requirement 
                under this subparagraph shall apply in the case of a 
                designation referred to in subparagraph (A)(ii).
                    ``(C) Only 1 account permitted at any time.--An 
                eligible individual may not, at any time, concurrently 
                maintain--
                            ``(i) a privately-administered personal 
                        retirement account with each of 2 or more 
                        certified institutions; or
                            ``(ii) a privately-administered and a 
                        federally-administered personal retirement 
                        account.
                    ``(D) Effect.--A designation under this paragraph 
                has (with respect to the eligible individual's 
                respective accounts, before and after such designation) 
                the same effect as results following a designation 
                under paragraph (2) (with respect to the federally-
                administered and privately-administered accounts 
                involved).

              ``personal retirement account distributions

    ``Sec. 254. (a) Date of Initial Distribution.--Except as provided 
in subsection (c), distributions may only be made from a personal 
retirement account of an eligible individual on and after the earliest 
of--
            ``(1) the date the eligible individual attains normal 
        retirement age (as determined under section 216) or, if elected 
        by such individual, early retirement age (as so determined); or
            ``(2) the date on which funds in the eligible individual's 
        personal retirement account are sufficient to provide a monthly 
        payment over the life expectancy of the eligible individual 
        (determined under reasonable actuarial assumptions) which is at 
        least equal to an amount equal to 100 percent of the poverty 
        line (as defined in section 673(2) of the Community Services 
        Block Grant Act (42 U.S.C. 9902(2) and determined on such date 
        for a family of the size involved) and adjusted annually 
        thereafter by the adjustment determined under section 215(i).
    ``(b) Forms of Distribution.--
            ``(1) Required monthly payments.--
                    ``(A) In general.--Except as provided in paragraph 
                (3), beginning with the date determined under 
                subsection (a), the balance in a personal retirement 
                account available to provide monthly payments not in 
                excess of the applicable amount shall be paid, as 
                elected by the account holder (in such form and manner 
                as shall be prescribed in regulations of the Personal 
                Retirement Account Board), by means of the purchase of 
                annuities or equal monthly payments over the life 
                expectancy of the eligible individual (determined under 
                reasonable actuarial assumptions) in accordance with 
                requirements (which shall be provided in regulations of 
                the Board) similar to the requirements applicable to 
                payments of benefits under subchapter III of chapter 84 
                of title 5, United States Code, and providing for 
                indexing for inflation.
                    ``(B) Applicable amount.--For purposes of 
                subparagraph (A), the applicable amount is--
                            ``(i) in the case of a distribution made 
                        pursuant to subsection (a)(1), an amount which 
                        is sufficient to provide a monthly payment over 
                        the life expectancy of the eligible individual 
                        (determined under reasonable actuarial 
                        assumptions) which, when added to the eligible 
                        individual's monthly benefit under part A (if 
                        any), is at least equal to an amount equal to 
                        100 percent of the poverty line (as defined in 
                        section 673(2) of the Community Services Block 
                        Grant Act (42 U.S.C. 9902(2) and determined on 
                        such date for a family of the size involved) 
                        and adjusted annually thereafter by the 
                        adjustment determined under section 215(i); and
                            ``(ii) in the case of a distribution made 
                        pursuant to subsection (a)(2), the amount 
                        described in subsection (a)(2).
            ``(2) Protection for spouse.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the requirements of subchapter III of chapter 84 of 
                title 5, United States Code, shall be determined as if 
                `a method which provides for a qualified \2/3\ joint 
                and survivor annuity' were substituted for `the method 
                described in subsection (a)(2)(B) of such section (or, 
                if more than one form of such method is available, the 
                form which the Board determines to be the one which 
                provides for a surviving spouse a survivor annuity most 
                closely approximating the annuity of a surviving spouse 
                under section 8442 of this title)' in section 
                8435(b)(1) of title 5, United States Code.
                    ``(B) Qualified \2/3\ joint and survivor annuity.--
                For purposes of subparagraph (A), the term `qualified 
                \2/3\ joint and survivor annuity' means an annuity--
                            ``(i) for the life of the eligible 
                        individual with a survivor annuity for the life 
                        of the spouse which is not less than \2/3\ of 
                        (and is not greater than 100 percent of) the 
                        amount of the annuity which is payable during 
                        the joint lives of the eligible individual and 
                        the spouse, and
                            ``(ii) which is the actuarial equivalent of 
                        a single annuity for the life of the eligible 
                        individual.
                Such term also includes any annuity in a form having 
                the effect of an annuity described in the preceding 
                sentence.
            ``(3) Payment of excess funds.--To the extent funds remain 
        in an eligible individual's personal retirement account after 
        the application of paragraph (1), such funds shall be payable 
        to the eligible individual in such manner and in such amounts 
        as determined by the eligible individual, subject to the 
        provisions of subchapter III of chapter 84 of title 5, United 
        States Code.
    ``(c) Distribution in the Event of Death Before the Date of Initial 
Distribution.--If the eligible individual dies before the date 
determined under subsection (a), the balance in such individual's 
personal retirement account shall be distributed in a lump sum, under 
rules established by the Personal Retirement Account Board--
            ``(1) to the account of a surviving spouse of such 
        individual; and
            ``(2) in the case there is no surviving spouse or such 
        spouse waives the right to such funds, to the eligible 
        individual's heirs.
    ``(d) Divorce.--The Personal Retirement Account Board shall issue 
regulations which provide that, in the case of an eligible individual 
with a personal retirement account who becomes divorced, contributions 
to the account during the marriage and earnings on the account during 
the marriage shall be divided evenly between such individual and such 
individual's former spouse.

  ``Subpart 2--Personal Retirement Account Fund; Personal Retirement 
                             Account Board

                   ``personal retirement account fund

    ``Sec. 261. (a) Establishment.--There shall be established and 
maintained in the Treasury of the United States a Personal Retirement 
Account Fund in the same manner as the Thrift Savings Fund under 
sections 8437 (excluding paragraphs (4) and (5) of subsection (c) 
thereof), 8438, and 8439 of title 5, United States Code.
    ``(b) Additional Investment Options.--In addition to the investment 
funds established within the Personal Retirement Account Fund under 
subsection (a), the Personal Retirement Account Board shall contract on 
a competitive basis with 1 or more fund managers to provide--
            ``(1) 3 balanced index funds, of which--
                    ``(A) 1 shall invest in conservative investments;
                    ``(B) 1 shall invest in medium-risk investments; 
                and
                    ``(C) 1 shall invest in growth investments; and
            ``(2) an inflation-indexed government bond fund.
    ``(c) Fund Requirements.--
            ``(1) No load funds.--Any fund with respect to which the 
        Personal Retirement Account Board enters into a contract under 
        subsection (b) may not charge sales loads or other marketing 
        fees based on the entry or exit of an individual into the fund.
            ``(2) Annual charge.--Any fees charged by a fund with which 
        the Personal Retirement Account Board enters into a contract 
        under subsection (b) shall be included in one annual charge and 
        stated as a percentage of assets.

                  ``personal retirement account board

    ``Sec. 262. (a) Establishment.--There shall be established and 
maintained in the Social Security Administration a Personal Retirement 
Account Board in the same manner as the Federal Retirement Thrift 
Investment Board under subchapter VII of chapter 84 of title 5, United 
States Code.
    ``(b) Specific Investment and Reporting Duties.--The Personal 
Retirement Account Board shall manage and report on the activities of 
the Personal Retirement Account and on federally-administered personal 
retirement accounts in the same manner as the Federal Retirement Thrift 
Investment Board manages and reports on the Thrift Savings Fund and the 
individual accounts of such Fund under subchapter VII of chapter 84 of 
title 5, United States Code.
    ``(c) Budgetary Treatment of Personal Retirement Account Security 
Fund and Accounts.--The receipts and disbursements of the Personal 
Retirement Account Fund and any accounts within such Fund shall not be 
included in the totals of the budget of the United States Government as 
submitted by the President or of the congressional budget and shall be 
exempt from any general budget limitation imposed by statute on 
expenditures and net lending (budget outlays) of the United States 
Government.
    ``(d) Commissioner of Social Security as Executive Director.--The 
Commissioner of Social Security shall have, with respect to the 
Personal Retirement Account Fund and accounts within such Fund, the 
same duties and responsibilities as does the Executive Director 
(appointed under section 8474(a) of title 5, United States Code) with 
respect to the Thrift Savings Fund and accounts within such Fund.

                  ``Subpart 3--Certified Institutions

  ``certification of institutions by personal retirement account board

    ``Sec 271. (a) In General.--For purposes of meeting the 
requirements of section 530B of the Internal Revenue Code of 1986 
(relating to personal retirement accounts), the Personal Retirement 
Account Board, in consultation with the Securities and Exchange 
Commission (in this part referred to as the `Commission'), may certify 
any institution that is engaged, in a fiduciary capacity, in the 
business of maintaining accounts for individuals for purposes of 
investment if such institution submits an application to the Personal 
Retirement Account Board in such form and manner as the Board shall by 
regulation require.
    ``(b) Requirements for Certification.--
            ``(1) In general.--Any institution certified under this 
        part must follow rules similar to the rules of section 251(d).
            ``(2) Fees.--Any fund which an institution applying for 
        certification under this part proposes to offer for eligible 
        individuals may not charge sales loads or other marketing fees 
        based on the entry or exit of an individual into the fund. Any 
        fees charged by an institutions applying for certification 
        under this section with respect to the personal retirement 
        account of an eligible individual shall be included in one 
        annual charge and stated as a percentage of assets.
            ``(3) Other requirements.--In determining whether to 
        approve an application for certification under this subpart, 
        the Personal Retirement Account Board shall consider the 
        following factors:
                    ``(A) The financial history and condition of the 
                institution.
                    ``(B) The adequacy of the institution's capital 
                structure.
                    ``(C) The future earnings prospects of the 
                institution.
                    ``(D) The general character and fitness of the 
                management of the institution.
                    ``(E) The convenience and needs of eligible 
                individuals who are account holders with respect to 
                personal retirement accounts for which the institution 
                is to serve as trustee.
                    ``(F) Whether the institution's corporate powers 
                are consistent with the purposes of this part.
                    ``(G) The institution's disclosure policies, 
                including any such policies with respect to 
                administrative fees, investment policies, and 
                investment activities.
                    ``(H) The appropriateness of--
                            ``(i) the fund or funds that such 
                        institution proposes to offer for purposes of 
                        this part; and
                            ``(ii) the criteria by which such 
                        institution will make future decisions 
                        regarding the selection of new funds or the 
                        modification of the investment options offered 
                        by such institution for purposes of this part,
                as determined based on guidelines established by the 
                Personal Retirement Account Board for purposes of this 
                paragraph.
    ``(c) Notice of Denial of Application for Certification.--If the 
Personal Retirement Account Board denies an application for 
certification by any institution, the Board shall promptly notify the 
institution of such denial and shall give the reasons for the Board's 
determination in writing.
    ``(d) Nondelegation Requirement.--The authority granted to the 
Personal Retirement Account Board under this section may not be 
delegated by the Board.

                     ``revocation of certification

    ``Sec. 272. (a) In General.--The Personal Retirement Account Board, 
in consultation with the Commission, shall prescribe regulations in 
accordance with which the certified status of an institution may be 
voluntarily or involuntarily revoked.
    ``(b) Judicial Review.--Any party to any proceeding revoking the 
certified status of an institution under subsection (a) may obtain a 
review of any order served pursuant to subsection (a) by the filing in 
the court of appeals of the United States for the circuit in which the 
home office of the institution is located, or in the United States 
Court of Appeals for the District of Columbia Circuit, within 30 days 
after the date of the service of such order, a written petition praying 
that the order of the Personal Retirement Account Board be modified, 
terminated, or set aside. A copy of such petition shall be forthwith 
transmitted by the clerk of the court to the Personal Retirement 
Account Board, and thereupon the Personal Retirement Account Board 
shall file in the court the record in the proceeding, as provided in 
section 2112 of title 28, United States Code. Upon the filing of such 
petition, such court shall have jurisdiction, which upon the filing of 
the record shall be exclusive, to affirm, modify, terminate, or set 
aside, in whole or in part, the order of the Personal Retirement 
Account Board. Review of such proceedings shall be had as provided in 
chapter 7 of title 5, United States Code. The judgment and decree of 
the court shall be final, except that the judgment and decree shall be 
subject to review by the Supreme Court upon certiorari, as provided in 
section 1254 of title 28, United States Code. The commencement of 
proceedings for judicial review under this subsection shall not, unless 
specifically ordered by the court, operate as a stay of any order 
issued by the Personal Retirement Account Board.

                           ``fiduciary duties

    ``Sec. 273. (a) In General.--In the case of a privately-
administered personal retirement account which does not form part of an 
individual account plan covered under part 4 of subtitle B of title I 
of the Employee Retirement Income Security Act of 1974, rules similar 
to the rules of such part 4 applicable to individual account plans 
covered under such part 4 shall apply with respect to a privately-
administered personal retirement account and the terms of any 
arrangement under which such account is maintained.
    ``(b) General Requirements.--In applying under subsection (a) the 
rules of part 4 of subtitle B of title I of the Employee Retirement 
Income Security Act of 1974 in the case of a privately-administered 
personal retirement account, references in such part to the Secretary 
of Labor shall be deemed to be references to the Personal Retirement 
Account Board, references in such part to a participants or beneficiary 
in connection with an individual account plan covered under such part 
shall be deemed to be references to the account holder with respect to 
the privately-administered personal retirement account, and references 
in such part to the plan administrator or plan sponsor in connection 
with an individual account plan covered under such part shall be deemed 
to be references to the trustee of the privately-administered personal 
retirement account.
    ``(c) Limitation on Liability.--Any account holder who issues an 
instruction to the trustee of the account directing an investment of 
funds held in the account shall sign an acknowledgement prescribed by 
the Personal Retirement Account Board which states that the account 
holder understands that an investment of any amount in the account is 
made at the account holder's risk, that the account holder is not 
protected by the Government or by the trustee against any loss on such 
investment, and that a return on such investment is not guaranteed by 
the Government or by the trustee. Notwithstanding the preceding 
provisions of this section and any other provision of Federal or State 
law, the trustee of a privately-administered personal retirement 
account shall not be liable for losses suffered in connection with any 
investment of assets held in the account unless it is shown by clear 
and convincing evidence that the trustee did not act in the manner 
in which a reasonable trustee would act under the circumstances then 
prevailing in evaluating the risk and reward properties of the 
investment option involved.

                        ``Subpart 4--Enforcement

                           ``cause of action

    ``Sec. 281. An account holder of any privately-administered 
personal retirement account who is adversely affected by an act or 
practice of any party (other than the Personal Retirement Account 
Board, the Commission, the Social Security Administration, the 
Department of the Treasury, or any officer or employee of any of the 
foregoing) in violation of any provision of this part, may bring an 
action--
            ``(1) to enjoin such act or practice; or
            ``(2) to obtain other appropriate equitable relief--
                    ``(A) to redress such violation; or
                    ``(B) to enforce such provision.

                        ``jurisdiction and venue

    ``Sec. 282. Civil actions under this subpart may be brought in the 
district courts of the United States in the district where the 
privately-administered personal retirement account is administered, 
where the violation took place, or where a defendant resides or may be 
found, and process may be served in any district where a defendant 
resides or may be found. The district courts of the United State shall 
have jurisdiction, without regard to the amount in controversy or the 
citizenship of the parties, to grant the relief provided for in section 
281 in any action.

     ``right of the personal retirement account board to intervene

    ``Sec. 283. A copy of the complaint or notice of appeal in any 
action under this subpart shall be served upon the Personal Retirement 
Account Board by certified mail. The Personal Retirement Account Board 
shall each have the right to intervene in any action.

                     ``awards of costs and expenses

    ``Sec. 284. In any action brought under this subpart, the court in 
its discretion may award all or a portion of the costs and expenses 
incurred in connection with such action, including reasonable 
attorney's fees, to any party who prevails or substantially prevails in 
such action.

                        ``limitation on actions

    ``Sec. 285. (a) In General.--Except as provided in subsection (c), 
an action under this subpart may not be brought after the later of--
            ``(1) 6 years after the date on which the cause of action 
        arose; or
            ``(2) 3 years after the applicable date specified in 
        subsection (b).
    ``(b) Applicable Date.--The applicable date specified in this 
subsection is the earliest date on which the plaintiff acquired or 
should have acquired actual knowledge of the existence of such cause of 
action.
    ``(c) Cases of Fraud or Concealment.--In the case of fraud or 
concealment, the period described in subsection (a)(2) shall be 
extended to 6 years after the applicable date specified in subsection 
(b).

      ``penalty for failure to timely provide required information

    ``Sec. 286. The Personal Retirement Account Board may assess a 
penalty, payable to it, against any person who fails to provide any 
notice or other material information required under this part or any 
regulations prescribed under this part within the applicable time limit 
specified therein. Such penalty shall not exceed $1,000 for each day 
for which such failure continues.

           ``actions by the personal retirement account board

    ``Sec. 287. If any person is assessed under this subpart and fails 
to pay the assessment when due, or any person otherwise fails to meet 
any requirement of this part, the Personal Retirement Account Board may 
bring a civil action in any district court of the United States within 
the jurisdiction of which such person's assets are located or in which 
such person resides or is found for the recovery of the amount of the 
assessment or for appropriate equitable relief to redress the violation 
or enforce the provisions of this part, and process may be served in 
any other district. The district courts of the United States shall have 
jurisdiction over actions brought under this section by the Personal 
Retirement Account Board without regard to the amount in controversy.

   ``criminal penalty for fraud or intentional misrepresentation in 
                   connection with investment options

    ``Sec. 288. Any person who makes, or causes to be made, a statement 
or representation of a material fact for use in selecting an investment 
option that the person knows or should know is false or misleading or 
knows or should know omits a material fact or makes such a statement 
with knowing disregard for the truth shall upon conviction be fined not 
more than $500,000 or imprisoned for not more than 5 years, or both.''.
    (b) Implementation of Provisions Relating to Privately-Administered 
Personal Retirement Accounts.--
            (1) In general.--
                    (A) Plan.--Not later than 3 years after the date on 
                which the Personal Retirement Account Board accepts the 
                first contribution under section 251(b) of the Social 
                Security Act, the Board, in consultation with the 
                Commissioner of Social Security, the Commissioner of 
                the Securities and Exchange Commission, and the 
                Secretary of the Treasury, shall establish and submit 
                to Congress a plan for implementing the amendments made 
                by this section, to the extent that they relate to 
                privately-administered personal retirement accounts.
                    (B) Implementation.--All measures necessary to 
                prepare for full implementation of such amendments (as 
                they relate to privately-administered personal 
                retirement accounts) shall be completed not later than 
                5 years after the date on which the Personal Retirement 
                Account Board accepts the first contribution under 
                section 251(b) of such Act.
            (2) Definitions.--For purposes of this paragraph, the terms 
        ``Personal Retirement Account Board'', ``federally-administered 
        personal retirement account'', and ``privately-administered 
        personal retirement account'' have the meanings given them 
        under part B of title II of the Social Security Act (as amended 
        by this section).

SEC. 102. CPI-INDEXED BENEFITS FOR PART B ELIGIBLE INDIVIDUALS NOT IN 
              SUPPLEMENTAL CONTRIBUTION COVERAGE.

    Section 215(a)(1)(B) of the Social Security Act (42 U.S.C. 
415(a)(1)(B)) is amended--
            (1) by redesignating clause (iii) as clause (vi);
            (2) in clause (ii), by striking ``For individuals'' and 
        inserting ``Subject to clause (iii), for individuals'';
            (3) by inserting after clause (ii) the following new 
        clauses:
    ``(iii) For eligible individuals (as defined under section 
251(a)(2)) who do not elect supplemental contribution coverage under 
section 252 and who initially meet all requirements for entitlement to 
old-age or survivors insurance benefits (other than applying therefor) 
in any calendar year after 2008, each of the amounts so established 
under the preceding provisions of this subparagraph shall be equal to 
the product derived by multiplying such amount (as determined before 
the application of this clause) by the quotient derived by dividing--
            ``(I) the applicable change in the CPI for the first of the 
        2 preceding calendar years, by
            ``(II) applicable change in the national average wage index 
        for the first of the 2 preceding calendar years.
    ``(iv) For purposes of clause (iii)(I), the term `applicable change 
in the CPI' for a calendar year means the excess of--
            ``(I) the arithmetical mean of the Consumer Price Index for 
        Urban Wage Earners and Clerical Workers (issued by the Bureau 
        of Labor Statistics) for the 12 months in such calendar year, 
        over
            ``(II) the arithmetical mean of such Consumer Price Index 
        for the 12 months in calendar year 2007.
    ``(v) For purposes of clause (iii)(II), the term `applicable change 
in the national average wage index' for a calendar year means the 
excess of--
            ``(I) the national average wage index (as defined in 
        section 209(k)(1)) for such calendar year, over
            ``(II) the national average wage index (as so defined) for 
        calendar year 2007.''; and
            (4) in clause (vi) (as redesignated), by striking ``under 
        clause (ii)'' and inserting ``under the preceding provisions of 
        this subparagraph''.

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.

    (a) In General.--Section 215 of the Social Security Act (42 U.S.C. 
415) is amended by adding at the end the following:

 ``Adjustment of Primary Insurance Amount in Relation to Contributions 
                    to Personal Retirement Accounts

    ``(j)(1) Except as provided in paragraph (2), an individual's 
primary insurance amount as determined in accordance with this section 
(before adjustments made under subsection (i)) shall be equal to the 
excess (if any) of--
            ``(A) the amount which would be so determined without the 
        application of this subsection, over
            ``(B) the monthly amount of an immediate life annuity, 
        determined on the basis of the sum of--
                    ``(i) the total of all amounts which have been 
                credited pursuant to section 251(b) (indexed in the 
                same manner as is applicable with respect to average 
                indexed monthly earnings under subsection (b)) to the 
                personal retirement account held by such individual, 
                plus
                    ``(ii) accrued interest on such amount compounded 
                annually--
                            ``(I) assuming an interest rate equal to 
                        the long-term government bond rate minus 0.3 
                        percentage points, and
                            ``(II) using the mortality table used under 
                        412(l)(7)(C)(ii) of the Internal Revenue Code 
                        of 1986.
    ``(2) In the case of an individual who becomes entitled to 
disability insurance benefits under section 223, such individual's 
primary insurance amount shall be determined without regard to 
paragraph (1).
    ``(3) For purposes of this subsection, the term `immediate life 
annuity' means an annuity--
            ``(A) the annuity starting date (as defined in section 
        72(c)(4) of the Internal Revenue Code of 1986) of which 
        commences with the first month following the date of the 
        determination, and
            ``(B) which provides for a series of substantially equal 
        monthly payments over the life expectancy of the individual.''.
    (b) Conforming Amendment to Railroad Retirement Act of 1974.--
Section 1 of the Railroad Retirement Act of 1974 (45 U.S.C. 231) is 
amended by adding at the end the following:
    ``(s) In applying applicable provisions of the Social Security Act 
for purposes of determining the amount of the annuity to which an 
individual is entitled under this Act, section 215(j) of the Social 
Security Act and part B of title II of such Act shall be 
disregarded.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to computations and recomputations of primary 
insurance amounts occurring after December 31, 2005.

SEC. 104. MINIMUM SOCIAL SECURITY BENEFIT.

    Section 215 of the Social Security Act (42 U.S.C. 415), as amended 
by section 103, is amended by adding at the end the following:

                  ``Minimum Monthly Insurance Benefit

    ``(k)(1) Notwithstanding the preceding provisions of this section--
            ``(A) the primary insurance amount of a qualified 
        individual shall be equal to the greater of--
                    ``(i) the primary insurance amount determined under 
                this section (without regard to this subsection), or
                    ``(ii) \1/12\ of the applicable percentage of the 
                income official poverty line (as defined by the Office 
                of Management and Budget, and revised annually in 
                accordance with section 673(2) of the Omnibus Budget 
Reconciliation Act of 1981), and
            ``(B) any recomputation of the primary insurance amount of 
        a qualified individual shall not result in a primary insurance 
        amount less than the primary insurance amount as in effect 
        immediately prior to such recomputation.
    ``(2) For purposes of this subsection--
            ``(A) The term `qualified individual' means an individual--
                    ``(i) who is an eligible individual (as defined 
                under section 251(a)(2)) who did not elect supplemental 
                contribution coverage under section 252, and
                    ``(ii) who initially becomes eligible for old-age 
                insurance benefits or dies (before becoming eligible 
                for such benefits) for a month beginning after December 
                31, 2006.
            ``(B) The applicable percentage shall be 120 percent 
        reduced by 1.2 percentage points for each quarter of coverage 
        of the qualified individual less than 140.
    ``(3)(A) For any year before 2011, the amount determined under 
clause (ii) of paragraph (1)(A) shall be an amount equal to the phase-
in percentage of the amount determined under such clause without regard 
to this paragraph.
            ``(B) The phase-in percentage shall be determined as 
        follows:

``Calendar year:                                   Phase-in percentage:
    2007..........................................                  20 
    2008..........................................                  40 
    2009..........................................                  60 
    2010..........................................               80.''.

SEC. 105. TREATMENT OF DISABLED BENEFICIARIES.

    Section 215(a) of the Social Security Act (42 U.S.C. 415(a)) is 
amended by adding at the end the following new paragraph:
    ``(8)(A) Notwithstanding the preceding provisions of this 
subsection, in the case of an eligible individual (as defined under 
section 251(a)(2)) who has not elected supplemental contribution 
coverage under section 252 and who has or has had a period of 
disability and becomes entitled to old-age insurance benefits under 
section 202(a) (or dies) in or after 2006, the primary insurance amount 
of such individual shall be the sum of--
            ``(i) the amount determined under subparagraph (B), and
            ``(ii) the product derived by multiplying--
                    ``(I) the excess of the amount determined under 
                subparagraph (C) over the amount determined under 
                subparagraph (B), by
                    ``(II) the adjustment factor for such individual 
                determined under subparagraph (D).
    ``(B) The amount determined under this subparagraph is the amount 
of such individual's primary insurance amount as determined under this 
section without regard to this paragraph.
    ``(C) The amount determined under this subparagraph is the amount 
of such individual's primary insurance amount as determined under this 
section as in effect with respect to individuals becoming eligible for 
old-age or disability insurance benefits under section 202(a) in 2005.
    ``(D) The adjustment factor determined under this subparagraph for 
any individual is the ratio (not greater than 1) of--
            ``(i) the number of months, preceding the earlier of such 
        individual's first month of entitlement to old-age insurance 
        benefits under section 202(a) or the month of such individual's 
        death, which occurred during a period of disability of such 
        individual, to
            ``(ii) 480.''.

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

SEC. 111. MODIFICATION OF FICA RATES.

    (a) Employees.--Section 3101(a) of the Internal Revenue Code of 
1986 (relating to tax on employees) is amended to read as follows:
    ``(a) Old-Age, Survivors, and Disability Insurance.--
            ``(1) In general.--
                    ``(A) Individuals born before 1950.--In addition to 
                other taxes, there is hereby imposed on the income of 
                every individual who is not a part B eligible 
                individual a tax equal to 6.2 percent of the wages 
                received by him with respect to employment.
                    ``(B) Individuals eligible for part b of title ii 
                of the social security act.--In addition to other 
                taxes, there is hereby imposed on the income of every 
                part B eligible individual a tax equal to--
                            ``(i) Personal retirement account.--In the 
                        case of an individual with a personal 
                        retirement account, the sum of--
                                    ``(I) 2.2 percent of the first 
                                $32,500 of the wages received by such 
                                individual with respect to employment 
                                in the calendar year, and
                                    ``(II) 6.2 percent of any 
                                additional such wages received in the 
                                calendar year.
                            ``(ii) Basic benefit.--In the case of an 
                        individual with basic benefit coverage, 6.2 
                        percent of such wages received in the calendar 
                        year.
                            ``(iii) Supplemental contribution.--In the 
                        case of an individual with supplemental 
                        contribution coverage, 8.2 percent of such 
                        wages received in the calendar year.
            ``(2) Contribution of oasdi tax reduction to personal 
        retirement accounts.--In addition to other taxes, there is 
        hereby imposed on the income of every part B eligible 
        individual who holds a personal retirement account for the 
        calendar year a personal retirement account contribution equal 
        to the sum of--
                    ``(A) 4 percent of so much of the wages as does not 
                exceed the first $32,500 received in such calendar year 
by such individual with respect to employment, plus
                    ``(B) so much of such wages (not to exceed $5,000) 
                as designated by the individual in the same manner as 
                described in section 251(d)(1)(B) of the Social 
                Security Act.
            ``(3) Inflation adjustment based on wage index.--
                    ``(A) In general.--In the case of any calendar year 
                beginning after 2006, the $32,500 amount in paragraphs 
                (1) and (2) and the $5,000 amounts in paragraph (2) 
                shall be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the percentage increase (if any) for 
                        such year determined under section 215(i) of 
                        the Social Security Act.
                    ``(B) Rounding.--If any dollar amount after being 
                increased under subparagraph (A) is not a multiple of 
                $10, such dollar amount shall be rounded to the nearest 
                multiple of $10.
            ``(4) Definitions.--For purposes of this subsection, the 
        terms `personal retirement account', `basic benefit coverage', 
        and `supplemental contribution coverage' shall have the meaning 
        given such terms under section 252 of the Social Security 
        Act.''.
    (b) Self-Employed.--Section 1401(a) of the Internal Revenue Code of 
1986 (relating to tax on self-employment income) is amended to read as 
follows:
    ``(a) Old-Age, Survivors, and Disability Insurance.--
            ``(1) In general.--
                    ``(A) Individuals born before 1950.--In addition to 
                other taxes, there shall be imposed for each taxable 
                year, on the self-employment income of every individual 
                who is not a part B eligible individual for the 
                calendar year ending with or during such taxable year, 
                a tax equal to 12.4 percent of the amount of the self-
                employment income for such taxable year.
                    ``(B) Individuals eligible for part b of title ii 
                of the social security act.--In addition to other 
                taxes, there is hereby imposed for each taxable year, 
                on the self-employment income of every part B eligible 
                individual who is a part B eligible individual for the 
                calendar year ending with or during such taxable year, 
                a tax equal to--
                            ``(i) Personal retirement account.--In the 
                        case of an individual with a personal 
                        retirement account, the sum of--
                                    ``(I) 8.4 percent of the first 
                                $32,500 of the self-employment for such 
                                taxable year, and
                                    ``(II) 12.4 percent of any 
                                additional self-employment income for 
                                such taxable year.
                            ``(ii) Basic benefit.--In the case of an 
                        individual with basic benefit coverage, 12.4 
                        percent of the self-employment for such taxable 
                        year.
                            ``(iii) Supplemental contribution.--In the 
                        case of an individual with supplemental 
                        contribution coverage, 14.4 percent of the 
                        self-employment income for such taxable year.
            ``(2) Contribution of oasdi tax reduction to personal 
        retirement accounts.--In addition to other taxes, there is 
        hereby imposed for each taxable year on the self-employment 
        income of every part B eligible individual who holds a personal 
        retirement account for the calendar year ending with or during 
        such taxable year, a personal retirement account contribution 
        equal to the sum of--
                    ``(A) 4 percent of so much of the self-employment 
                income as does not exceed the first $32,500 for such 
                taxable, plus
                    ``(B) so much of such self-employment income (not 
                to exceed $5,000) as designated by the individual in 
                the same manner as described in section 251(c) of the 
                Social Security Act.
            ``(3) Inflation adjustment based on wage index.--
                    ``(A) In general.--In the case of any taxable year 
                beginning after 2006, the $32,500 amount in paragraphs 
                (1) and (2) and the $5,000 amounts in paragraph (2) 
                shall be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the percentage increase (if any) for 
                        the calendar year in which such taxable year 
                        begins determined under section 215(i) of the 
                        Social Security Act.
                    ``(B) Rounding.--If any dollar amount after being 
                increased under subparagraph (A) is not a multiple of 
                $10, such dollar amount shall be rounded to the nearest 
                multiple of $10.
            ``(4) Definitions.--For purposes of this subsection the 
        terms `personal retirement account', `basic benefit coverage', 
        and `supplemental contribution coverage' shall have the meaning 
        given such terms under section 252 of the Social Security 
        Act.''.
    (c) Part B Eligible Individual.--
            (1) Taxes on employees.--Section 3121 of such Code 
        (relating to definitions) is amended by inserting after 
        subsection (s) the following new subsection:
    ``(t) Part B Eligible Individual.--For purposes of this chapter, 
the term `part B eligible individual' means, for any calendar year, an 
individual who is an eligible individual (as defined in section 
251(a)(2) of the Social Security Act) for such calendar year.''.
            (2) Self-employment tax.--Section 1402 of such Code 
        (relating to definitions) is amended by adding at the end the 
        following new subsection:
    ``(l) Part B Eligible Individual.--The term `part B eligible 
individual' means, for any calendar year, an individual who is an 
eligible individual (as defined in section 251(a)(2) of the Social 
Security Act) for such calendar year.''.
    (d) Report on Necessary Increases in Supplemental Contribution Tax 
Rate.--
            (1) Report.--
                    (A) In general.--The Board of Trustees of the 
                Federal Old-Age and Survivors Insurance Trust Fund and 
                the Federal Disability Insurance Trust Fund shall 
                submit to Congress annually--
                            (i) a report on the actuarial deficit of 
                        such trust funds; and
                            (ii) recommendations, including proposed 
                        legislation, for adjusting the tax rate under 
                        section 3101(a)(1)(B)(iii) of the Internal 
                        Revenue Code of 1986 and section 
                        1401(a)(1)(B)(iii) of such Code to eliminate 
                        any such deficit.
                    (B) Actuarial deficit.--
                            (i) In general.--For purposes of 
                        subparagraph (A), the actuarial deficit is the 
                        excess of--
                                    (I) the summarized income rate, 
                                over
                                    (II) the summarized cost rate.
                            (ii) Method of calculation.--The 
                        calculation made under clause (i) shall be made 
                        assuming that all individuals who are eligible 
                        individuals (as defined in section 251(a)(2) of 
                        the Social Security Act) have elected (or will 
                        elect) supplemental contribution coverage 
                        (within the meaning of section 252(c)(2) of the 
                        Social Security Act) and shall be calculated by 
                        taking into account a period of 75 years.
                            (iii) Summarized income rate.--The term 
                        `summarized income rate' means the ratio of the 
                        present value of the income of the Federal Old-
                        Age and Survivors Insurance Trust Fund and the 
                        Federal Disability Insurance Trust Fund to the 
                        present value of taxable payroll (as defined in 
                        section 202(a)(5)).
                            (iv) Summarized cost rate.--The term 
                        `summarized cost rate' means the ratio of the 
                        present value of the costs of the Federal Old-
                        Age and Survivors Insurance Trust Fund and the 
                        Federal Disability Insurance Trust Fund to the 
                        present value of taxable payroll (as so 
                        defined).
                    (C) Timing of report.--The report required under 
                this subsection shall be submitted to Congress together 
                with and under the same requirements as the report 
                described in section 201(c)(2) of the Social Security 
                Act.
            (2) Congressional consideration of recommendations.--
                    (A) Definitions.--In this section:
                            (i) Implementation bill.--The term 
                        ``implementation bill'' means only a bill 
                        which--
                                    (I) is introduced as provided under 
                                subparagraph (B); and
                                    (II) contains the proposed 
                                legislation included in the report 
                                submitted to Congress under paragraph 
                                (1), but only if such proposed 
                                legislation raises the rate under 
                                section 3101(a)(1)(B)(iii) and 
                                1401(a)(1)(B)(iii) at least 0.25 
                                percentage points.
                            (ii) Calendar day.--The term ``calendar 
                        day'' means a calendar day other than one on 
                        which either House is not in session because of 
                        an adjournment of more than 3 days to a date 
                        certain.
                    (B) Introduction; referral; and report or 
                discharge.--
                            (i) Introduction.--On the first calendar 
                        day on which both Houses are in session, on or 
                        immediately following the date on which the 
                        report is submitted to Congress under section 
                        201(c)(6) of the Social Security Act, a single 
                        implementation bill shall be introduced (by 
                        request)--
                                    (I) in the Senate by the Majority 
                                Leader of the Senate, for himself and 
                                the Minority Leader of the Senate, or 
                                by Members of the Senate designated by 
                                the Majority Leader and Minority Leader 
                                of the Senate; and
                                    (II) in the House of 
                                Representatives by the Speaker of the 
                                House of Representatives, for himself 
                                and the Minority Leader of the House of 
                                Representatives, or by Members of the 
                                House of Representatives designated by 
                                the Speaker and Minority Leader of the 
                                House of Representatives.
                            (ii) Referral.--The implementation bills 
                        introduced under clause (i) shall be referred--
                                    (I) in the Senate, to the Committee 
                                on Finance of the Senate; and
                                    (II) in the House of 
                                Representatives, to the Committee on 
                                Ways and Means of the House of 
                                Representatives.
                        A committee to which an implementation bill is 
                        referred under this paragraph may report such 
                        bill to the respective House without amendment.
                            (iii) Report or discharge.--If a committee 
                        to which an implementation bill is referred has 
                        not reported such bill by the end of the 15th 
                        calendar day after the date of the introduction 
                        of such bill, such committee shall be 
                        immediately discharged from further 
                        consideration of such bill, and upon being 
                        reported or discharged from the committee, such 
                        bill shall be placed on the appropriate 
                        calendar.
                    (C) Floor consideration.--
                            (i) In general.--When the committee to 
                        which an implementation bill is referred has 
                        reported, or has been discharged under 
                        subparagraph (B)(iii), it is at any time 
                        thereafter in order (even though a previous 
                        motion to the same effect has been disagreed 
                        to) for any Member of the respective House to 
                        move to proceed to the consideration of the 
                        implementation bill, and all points of order 
                        against the implementation bill (and against 
                        consideration of the implementation bill) are 
                        waived. The motion is highly privileged in the 
                        House of Representatives and is privileged in 
                        the Senate and is not debatable. The motion is 
                        not subject to amendment, or to a motion to 
                        postpone, or to a motion to proceed to the 
                        consideration of other business. A motion to 
                        reconsider the vote by which the motion is 
                        agreed to or disagreed to shall not be in 
                        order. If a motion to proceed to the 
                        consideration of the implementation bill is 
                        agreed to, the implementation bill shall remain 
                        the unfinished business of the respective House 
                        until disposed of.
                            (ii) Amendments.--An implementation bill 
                        may not be amended in the Senate or the House 
                        of Representatives.
                            (iii) Debate.--Debate on the implementation 
                        bill, and on all debatable motions and appeals 
                        in connection therewith, shall be limited to 
                        not more than 10 hours, which shall be divided 
                        equally between those favoring and those 
                        opposing the resolution. A motion further to 
                        limit debate is in order and not debatable. An 
                        amendment to, or a motion to postpone, or a 
                        motion to proceed to the consideration of other 
                        business, or a motion to recommit the 
                        implementation bill is not in order. A motion 
                        to reconsider the vote by which the 
                        implementation bill is agreed to or disagreed 
                        to is not in order.
                            (iv) Vote on final passage.--Immediately 
                        following the conclusion of the debate on an 
                        implementation bill, and a single quorum call 
                        at the conclusion of the debate if requested in 
                        accordance with the rules of the appropriate 
                        House, the vote on final passage of the 
                        implementation bill shall occur.
                            (v) Rulings of the chair on procedure.--
                        Appeals from the decisions of the Chair 
                        relating to the application of the rules of the 
                        Senate or the House of Representatives, as the 
                        case may be, to the procedure relating to an 
                        implementation bill shall be decided without 
                        debate.
                    (D) Coordination with action by other house.--If, 
                before the passage by 1 House of an implementation bill 
                of that House, that House receives from the other House 
                an implementation bill, then the following procedures 
                shall apply:
                            (i) Nonreferral.--The implementation bill 
                        of the other House shall not be referred to a 
                        committee.
                            (ii) Vote on bill of other house.--With 
                        respect to an implementation bill of the House 
                        receiving the implementation bill--
                                    (I) the procedure in that House 
                                shall be the same as if no 
                                implementation bill had been received 
                                from the other House; but
                                    (II) the vote on final passage 
                                shall be on the implementation bill of 
                                the other House.
                    (E) Rules of senate and house of representatives.--
                This paragraph is enacted by Congress--
                            (i) as an exercise of the rulemaking power 
                        of the Senate and House of Representatives, 
                        respectively, and as such it is deemed a part 
                        of the rules of each House, respectively, but 
                        applicable only with respect to the procedure 
                        to be followed in that House in the case of an 
                        implementation bill described in subparagraph 
                        (A), and it supersedes other rules only to the 
                        extent that it is inconsistent with such rules; 
                        and
                            (ii) with full recognition of the 
                        constitutional right of either House to change 
                        the rules (so far as relating to the procedure 
                        of that House) at any time, in the same manner, 
                        and to the same extent as in the case of any 
                        other rule of that House.
    (e) Effective Dates.--
            (1) Employees.--The amendments made by subsections (a) and 
        (c)(1) apply to remuneration paid after December 31, 2005.
            (2) Self-employed individuals.--The amendments made by 
        subsections (b) and (c)(2) apply to taxable years beginning 
        after December 31, 2005.
            (3) Congressional implementation of tax rate adjustment.--
        Subsection (d)(2) shall apply to any report submitted to 
        Congress under section 201(c)(6) of the Social Security Act 
        after 2005.

SEC. 112. MATCHING CONTRIBUTIONS.

    (a) In General.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to credits against tax) is 
amended by adding at the end the following new subpart:

            ``Subpart H--Personal Retirement Account Credits

``Sec. 54. Personal retirement account credit.''.

``SEC. 54. PERSONAL RETIREMENT ACCOUNT CREDIT.

    ``(a) Allowance of Credit.--Each qualified part B eligible 
individual is entitled to a credit for the taxable year in an amount 
equal to the sum of--
            ``(1) $100, and
            ``(2) an amount equal to--
                    ``(A) 50 percent of the designated wages of such 
                individual for the taxable year,
                    ``(B) 50 percent of the designated self-employment 
                income of such individual for the taxable year, and
                    ``(C) 50 percent of the designated earned income 
                credit.
    ``(b) Limitations.--
            ``(1) Amount.--The amount determined under paragraph (2) of 
        subsection (a) with respect to such individual for any taxable 
        year may not exceed $500.
            ``(2) Failure to make voluntary contributions.--In the case 
        of a qualified part B eligible individual with respect to whom 
        the amount of wages designated under subparagraph (B) of 
        section 3101(a)(2) plus the amount self-employment income 
        designated under subparagraph (B) of section 1401(a)(2) for the 
        taxable year is zero, the credit to which such individual is 
        entitled under this section shall be equal to zero.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified part b eligible individual.--The term 
        `qualified part B eligible individual' means, for any calendar 
        year, an individual--
                    ``(A) who is an eligible individual (as defined in 
                section 251(a)(2) of the Social Security Act) for such 
                calendar year,
                    ``(B) who is not less than 26 years-old for the 
                entirety of such calendar year; and
                    ``(C) who earns less than $30,000 in wages (as 
                defined in section 3121(a)) for such calendar year.
            ``(2) Designated wages.--The term `designated wages' means 
        with respect to any taxable year the amount designated under 
        subparagraph (B) of section 3101(a)(2).
            ``(3) Designated self-employment income.--The term 
        `designated self-employment income' means with respect to any 
        taxable year the amount designated under subparagraph (B) of 
        section 1401(a)(2) for such taxable year.
            ``(4) Designated earned income credit.--The term 
        `designated earned income credit' means the amount of the 
        credit allowed under section 32 for the taxable year that is 
        designated by the qualified part B eligible individual in the 
        same manner as described in section 251 of the Social Security 
        Act.
    ``(d) Credit Used Only for Personal Retirement Account.--For 
purposes of this title, the credit allowed under this section with 
respect to any qualified part B eligible individual--
            ``(1) shall not be treated as a credit allowed under this 
        part, but
            ``(2) shall be treated as an overpayment of tax under 
        section 6401(b)(3) which may, in accordance with section 
        6402(l), only be transferred to an personal retirement account 
        established under part B of title II of the Social Security Act 
        with respect to such individual.
    ``(e) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2006, the $100 amount in subsection (a) and the 
        $500 amount in subsection (b) shall each be increased by an 
        amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2006' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--If any amount adjusted under subparagraph 
        (A) is not a multiple of $10, such amount shall be rounded to 
        the next lowest multiple of $10.''.
    (b) Contribution of EITC Amounts to Personal Retirement Accounts.--
Section 32 of such Code (relating to earned income) is amended by 
adding at the end the following new subsection:
    ``(n) Contribution to Personal Retirement Account.--
            ``(1) In general.--A qualified part B eligible individual 
        (as defined in section 54) who is allowed a credit under this 
        section may designate all or a portion of such credit as a 
        contribution to the personal retirement account established on 
        behalf of such individual.
            ``(2) Credit used only for personal retirement account.--
        For purposes of this title, the amount designated under 
        paragraph (1) with respect to any qualified part B eligible 
        individual--
                    ``(A) shall not be treated as a credit allowed 
                under this section, but
                    ``(B) shall be treated as an overpayment of tax 
                under section 6401(b)(3) which may, in accordance with 
                section 6402(l), only be transferred to an personal 
                retirement account established under part B of title II 
                of the Social Security Act with respect to such 
                individual.''.
    (c) Contribution of Credited Amounts to Personal Retirement 
Account.--
            (1) Credited amounts treated as overpayment of tax.--
        Subsection (b) of section 6401 of such Code (relating to 
        excessive credits) is amended by adding at the end the 
        following new paragraph:
            ``(3) Special rule for credit under sections 32 and 54.--
        Subject to the provisions of section 6402(l), the sum of the 
        following shall be considered an overpayment:
                    ``(A) Section 54 credit.--The amount of any credit 
                allowed under section 54 for any taxable year.
                    ``(B) Section 32 designated earned income credit 
                contribution.--The amount of the earned income credit 
                designated as a contribution to an personal retirement 
                account under section 32(n) for the taxable year.''.
            (2) Transfer of credit amount personal retirement 
        account.--Section 6402 of such Code (relating to authority to 
        make credits or refunds) is amended by adding at the end the 
following new subsection:
    ``(l) Overpayments Attributable to Personal Retirement Account 
Credit.--In the case of any overpayment described in section 6401(b)(3) 
with respect to any individual, the Secretary shall transfer for 
crediting by the Commissioner of Social Security to the personal 
retirement account of such individual, an amount equal to the amount of 
such overpayment.''.
    (d) Notice to EITC Recipients of Matching Contributions to Personal 
Retirement Security Accounts.--In connection with information and tax 
forms relating to the credit allowed under section 32 of the Internal 
Revenue Code of 1986, the Secretary of the Treasury shall provide 
notice of the availability of matching contributions pursuant to 
section 54 of such Code (as added by subsection (a) of this section) to 
personal retirement accounts under part B of title II of the Social 
Security Act.
    (e) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting before the period at the end ``, or 
        enacted by the Social Security Solvency and Modernization Act 
        of 2003''.
            (2) The table of subparts for part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        adding at the end the following new item:

``Subpart H. Personal Retirement Account Credits.''.
    (f) Effective Date.--The amendments made by this subsection shall 
apply to refunds payable after December 31, 2005.

SEC. 113. TAX TREATMENT OF PERSONAL RETIREMENT ACCOUNTS.

    (a) In General.--Subchapter F of chapter 1 of the Internal Revenue 
Code of 1986 (relating to exempt organizations) is amended by adding at 
the end the following new part:

                ``PART IX--PERSONAL RETIREMENT ACCOUNTS

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

``SEC. 530A. PERSONAL RETIREMENT ACCOUNT FUND AND FEDERALLY-
              ADMINISTERED PERSONAL RETIREMENT ACCOUNTS.

    ``The Personal Retirement Account Fund established under section 
261 of the Social Security Act shall be exempt from taxation under this 
subtitle.

``SEC. 530B. PERSONAL RETIREMENT ACCOUNTS.

    ``(a) In General.--For purposes of this section, the term `personal 
retirement account' means a federally-administered personal retirement 
account or a privately-administered personal retirement account.
    ``(b) Personal Retirement Accounts Defined.--For purposes of 
subsection (a)--
            ``(1) Federally-administered personal retirement account.--
        The term `federally-administered personal retirement account' 
        means the account established under section 251 of the Social 
        Security Act.
            ``(2) Privately-administered personal retirement account.--
        The term `privately-administered personal retirement account' 
        means a trust created or organized in the United States 
        exclusively for the benefit of an individual, but only if the 
        written governing instrument creating the trust meets the 
        following requirements:
                    ``(A) Except in the case of rollover contributions 
                from another personal retirement account of such 
                individual--
                            ``(i) no contribution will be accepted 
                        unless it is in cash,
                            ``(ii) contributions will not be accepted 
                        for the taxable year in excess of the sum of--
                                    ``(I) the amounts collected with 
                                respect to such individual under 
                                sections 3101(a)(2) and 1401(a)(2), and
                                    ``(II) the amounts transferred to 
                                such account under section 6402(l), and
                            ``(iii) any contributions with respect to 
                        an account holder which are not accepted 
                        pursuant to this paragraph are promptly 
                        refunded directly to the account holder.
                    ``(B) The trustee is a institution which is 
                certified under subpart 3 of part B of title II of the 
                Social Security Act.
                    ``(C) No part of the trust funds will be invested 
                in life insurance contracts.
                    ``(D) The interest of an individual in the balance 
                in such individual's account is nonforfeitable.
                    ``(E) The assets of the trust will not be 
                commingled with other property except in a common trust 
                fund or common investment fund.
    ``(c) Contributions.--
            ``(1) In general.--No deduction shall be allowed for 
        contributions credited to a personal retirement account under 
        section 251 of the Social Security Act or amounts transferred 
        to such account under section 6402(l).
            ``(2) Rollovers.--
                    ``(A) Rollover from personal retirement account.--
                The entire balance of a personal retirement account of 
                the account holder may be rolled over to another 
                personal retirement account of the account holder.
                    ``(B) Rollover of inheritance.--Any portion of a 
                distribution to a spouse or an heir from a personal 
                retirement account made by reason of the death of the 
                beneficiary of such account may be rolled over to the 
                personal retirement account of the spouse or heir.
    ``(d) Tax Treatment of Accounts.--
            ``(1) Exemption from tax.--A personal retirement account is 
        exempt from taxation under this subtitle unless such account 
        has ceased to be a personal retirement account by reason of 
        paragraph (2). Notwithstanding the preceding sentence, any such 
        account is subject to the taxes imposed by section 511 
        (relating to imposition of tax on unrelated business income of 
        charitable, etc. organizations).
            ``(2) Account terminations.--Rules similar to the rules of 
        paragraphs (2) and (4) of section 408(e) shall apply to 
        privately-administered personal retirement accounts, and any 
        amount treated as distributed under such rules shall be 
        includible in gross income and shall not be treated as a social 
        security benefit for purposes of section 86.
            ``(3) Rollover contribution.--
                    ``(A) In general.--An amount is described in this 
                paragraph as a rollover contribution if it meets the 
                requirements of subparagraphs (B) and (C).
                    ``(B) In general.--The requirements of this 
                subparagraph are met with respect to an amount paid or 
                distributed from a personal retirement account to the 
                account holder only if the entire amount in such 
                account is received by the account holder and is paid 
                into another personal retirement account for the 
                benefit of such holder not later than the 60th day 
                after the day on which the holder receives the payment 
                or distribution.
                    ``(C) Limitation.--This paragraph shall not apply 
                to any amount described in subparagraph (A) received by 
                an individual from a privately-administered personal 
                retirement account if, at any time during the 1-year 
                period ending on the day of such receipt, such 
                individual received on 1 other occasions any other 
                amount described in subparagraph (A) from a personal 
                retirement account which was not includible in the 
                individual's gross income because of the application of 
                this paragraph.
    ``(e) Distributions.--
            ``(1) In general.--The portion of any distribution from a 
        personal retirement account under section 254 of the Social 
        Security Act which is attributable to amounts contributed to 
        such account under section 3101(a)(2) (other than subparagraph 
        (B) thereof) and section 1401(a)(2) (other than subparagraph 
        (B) thereof), together with earnings thereon, shall be 
        includible in gross income as a social security benefit for 
        purposes of section 86.
            ``(2) Voluntary contributions.--The portion of any 
        distribution from a personal retirement account under section 
        254 of the Social Security Act which is attributable to amounts 
        contributed to such account under subparagraph (B) of section 
        3101(a)(2), subparagraph (B) of section 1401(a)(2), and section 
        6402(l), together with earnings thereon, shall not be 
        includible in gross income.
            ``(3) Period in which distributions must be made from 
        account of decedent.--In the case of amounts remaining in a 
        personal retirement account from which distributions began 
        before the death of the beneficiary, rules similar to the rules 
        of section 401(a)(9)(B) shall apply to distributions of such 
        remaining amounts.
            ``(4) Rollovers.--Paragraph (1) shall not apply to amounts 
        rolled over under subsection (c)(2) in a direct transfer by the 
        Commissioner of Social Security, under regulations which the 
        Commissioner shall prescribe.
    ``(f) Account Beneficiary.--For purposes of this section, the 
account beneficiary is the individual for whose benefit the personal 
retirement account is established.''.
    (b) Clerical Amendment.--The table of parts for subchapter F of 
chapter 1 of the Internal Revenue Code of 1986 is amended by adding 
after the item relating to part VIII the following new item:

                              ``Part IX. Personal retirement 
                                        accounts.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

           TITLE II--SOCIAL SECURITY FINANCIAL SUSTAINABILITY

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

SEC. 201. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established the Commission on the 
Review of Federal Agencies and Programs (hereafter in this subtitle 
referred to as the ``Commission'').
    (b) Membership.--
            (1) Initial appointment.--The Commissioners shall be 
        composed of 9 members of whom--
                    (A) 3 shall be appointed by the President of the 
                United States;
                    (B) 2 shall be appointed by the Speaker of the 
                House of Representatives;
                    (C) 1 shall be appointed by the minority Leader of 
                the House of Representatives;
                    (D) 2 shall be appointed by the majority Leader of 
                the Senate; and
                    (E) 1 shall be appointed by the minority Leader of 
                the Senate.
            (2) Chairperson and vice chairperson.--The President shall 
        designate a chairperson and vice chairperson from among the 
members of the Commission.
    (c) Terms.--
            (1) In general.--A member of the Commission shall be 
        appointed for a term of 6 years, except that with respect to 
        the members initially appointed--
                    (A) the members appointed under subsection 
                (b)(1)(A) shall be appointed for a term of 6 years;
                    (B) the members appointed under subparagraphs (B) 
                and (C) of subsection (b)(1) shall be appointed for 
                terms of 4 years; and
                    (C) the members appointed under subparagraphs (D) 
                and (E) of subsection (b)(1) shall be appointed for 
                terms of 2 years.
            (2) Expiration of terms.--The term of any member shall not 
        expire before the date on which the member's successor takes 
        office.
    (d) Vacancies.--
            (1) In general.--Any vacancy (including an expired term) on 
        the Commission shall be filled by an appointment made by the 
        President in consultation with the Speaker of the House of 
        Representatives, the minority leader of the House of 
        Representatives, the majority Leader of the Senate, and the 
        minority Leader of the Senate. Any person so appointed shall be 
        subject to any conditions which applied with respect to the 
        original appointment.
            (2) Reappointments.--A member who has previously served on 
        the commission may be reappointed to the Commission in the 
        manner described in paragraph (1).
    (e) Meetings.--
            (1) Initial meeting.--Not later than 60 days after the date 
        on which all members of the Commission have been appointed, the 
        Commission shall hold its first meeting.
            (2) Subsequent meetings.--The Commission shall meet at the 
        call of the chairperson, but not less than once per year.
    (f) Quorum.--A majority of the members of the Commission shall 
constitute a quorum, but a lesser number of members may hold hearings.

SEC. 202. DUTIES OF THE COMMISSION.

    (a) Definitions.--For purposes of this subtitle:
            (1) Agency.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``agency'' has the meaning given the term 
                ``Executive agency'' under section 105 of title 5, 
                United States Code.
                    (B) Exceptions.--The term ``agency'' does not 
                include--
                            (i) the Department of Defense or its 
                        subdivisions; or
                            (ii) any agency that solely administers 
                        entitlement programs.
            (2) Entitlement program.--The term ``entitlement program'' 
        means any program that makes payments (including loans and 
        grants), the budget authority for which is not provided for in 
        advance by appropriation Acts, to any person or government if, 
        under the provisions of the law containing such authority, the 
        United States is obligated to make such payments to persons or 
        governments who meet the requirements established by such law.
            (3) Program.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``program'' means any activity or 
                function of an agency.
                    (B) Exception.--The term ``program'' does not 
                include entitlement programs.
            (4) Inequitable federal subsidy.--the term ``inequitable 
        Federal subsidy'' means a payment, benefit, service, or tax 
        advantage that--
                    (A) is provided by the Federal Government to any 
                corporation, partnership, joint venture, association, 
                or business trust, but not including--
                            (i) a nonprofit organization described 
                        under section 501(c)(3) of the Internal Revenue 
                        Code of 1986 that is exempt from taxation under 
                        section 501(a) of such Code; or
                            (ii) a State or local government or Indian 
                        Tribe or Alaska Native village or regional or 
                        village corporation as defined in or 
                        established pursuant to the Alaska Native 
                        Claims Settlement Act (43 U.S.C. 1601 et seq.);
                    (B) is provided without a reasonable expectation, 
                demonstrated with the use of reliable performance 
                criteria, that actions or activities undertaken or 
                performed in return for such payment, benefit, service, 
                or tax advantage would result in a return or benefit, 
                quantifiable or nonquantifiable, to the public at least 
                as great as the payment, benefit, service, or tax 
                advantage; and
                    (C) provides an unfair competitive advantage or 
                financial windfall.
        Such term shall not include a payment, benefit, service, or tax 
        advantage that is necessary to protect Americans at home or 
        abroad or to comply with international trade or treaty 
        obligations.
            (5) Taxable payroll.--The term ``taxable payroll'' means 
        the amount of wages (as defined under section 3121(a) of the 
        Internal Revenue Code of 1986) taxable under chapter 21 of such 
        Code and the amount of self-employment income (as defined under 
        section 1402(b) of such Code) taxable under chapter 2 of such 
        Code, as determined by the Board of Trustees of the Federal 
        Old-Age and Survivors Insurance Trust Fund and the Federal 
        Disability Insurance Trust Fund.
    (b) In General.--Each year, the Commission shall--
            (1) evaluate all agencies and programs within those 
        agencies, using the criteria under subsection (c); and
            (2) submit to Congress--
                    (A) a plan with recommendations of the inequitable 
                Federal subsidies, agencies, and programs that should 
                be realigned or eliminated to achieve savings equal to 
                1.25 percent of the taxable payroll for the preceding 
                year; and
                    (B) proposed legislation to implement the plan 
                described under subparagraph (A).
    (c) Criteria.--
            (1) Inequitable federal subsidy.--The Commission shall 
        recommend the elimination of any inequitable Federal subsidy.
            (2) Duplicative.--If 2 or more agencies or programs are 
        performing the same essential function and the function can be 
        consolidated or streamlined into a single agency or program, 
        the Commission shall recommend that the agency or program be 
        realigned.
            (3) Wasteful or inefficient.--The Commission shall 
        recommend the realignment or elimination of any agency or 
        program that has wasted Federal funds by--
                    (A) egregious spending;
                    (B) mismanagement of resources and personnel; or
                    (C) use of such funds for personal benefit or the 
                benefit of a special interest group.
            (4) Outdated, irrelevant, or failed.--The Commission shall 
        recommend the elimination of any agency or program that--
                    (A) has completed its intended purpose;
                    (B) has become irrelevant; or
                    (C) has failed to meet its objectives.
    (d) Reports.--
            (1) Timing.--
                    (A) In general.--Except as provided in paragraph 
                (2), the Commission shall submit to the President and 
                Congress a report containing the information described 
                in paragraph (2) not later the day on which the 
                President submits the budget to Congress under section 
                1105 of title 31, United States Code.
                    (B) Initial report.--Not later than 1 year after 
                the date of the enactment of this Act, the Commission 
                shall submit to the President and Congress an initial 
                report containing the information described in 
                paragraph (2).
            (2) Contents of report.--The report described in paragraph 
        (1) shall include--
                    (A) the plan described under subsection (b)(2)(A), 
                with supporting documentation for all recommendations; 
                and
                    (B) the proposed legislation described under 
                subsection (b)(2)(B).

SEC. 203. POWERS OF THE COMMISSION.

    (a) Hearings.--The Commission or, at its direction, any 
subcommittee or member of the Commission, may, for the purpose of 
carrying out this subtitle--
            (1) hold such hearings, sit and act at such times and 
        places, take such testimony, receive such evidence, and 
        administer such oaths as any member of the Commission considers 
        advisable;
            (2) require, by subpoena or otherwise, the attendance and 
        testimony of such witnesses as any member of the Commission 
        considers advisable; and
            (3) require, by subpoena or otherwise, the production of 
        such books, records, correspondence, memoranda, papers, 
        documents, tapes, and other evidentiary materials relating to 
        any matter under investigation by the Commission.
    (b) Subpoenas.--
            (1) Issuance.--Subpoenas issued under subsection (a) shall 
        bear the signature of the chairperson of the Commission and 
        shall be served by any person or class of persons designated by 
        the chairperson for that purpose.
            (2) Enforcement.--In the case of contumacy or failure to 
        obey a subpoena issued under subsection (a), the United States 
        district court for the judicial district in which the 
        subpoenaed person resides, is served, or may be found, may 
        issue an order requiring such person to appear at any 
        designated place to testify or to produce documentary or other 
        evidence. Any failure to obey the order of the court may be 
        punished by the court as a contempt of that court.
    (c) Information From Federal Agencies.--The Commission may secure 
directly from any Federal department or agency such information as the 
Commission considers necessary to carry out this subtitle. Upon request 
of the chairperson of the Commission, the head of such department or 
agency shall furnish such information to the Commission.
    (d) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.
    (e) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property.

SEC. 204. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--
            (1) Non-federal members.--Except as provided under 
        subsection (b), each member of the Commission who is not an 
        officer or employee of the Federal Government shall not be 
        compensated.
            (2) Federal officers or employees.--All members of the 
        Commission who are officers or employees of the United States 
        shall serve without compensation in addition to that received 
        for their services as officers or employees of the United 
        States.
    (b) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (c) Staff.--
            (1) In general.--The chairperson of the Commission may, 
        without regard to the civil service laws and regulations, 
        appoint and terminate an executive director and such other 
        additional personnel as may be necessary to enable the 
        Commission to perform its duties. The employment of an 
        executive director shall be subject to confirmation by the 
        Commission.
            (2) Compensation.--Upon the approval of the chairperson, 
        the executive director may fix the compensation of the 
        executive director and other personnel without regard to 
        chapter 51 and subchapter III of chapter 53 of title 5, United 
        States Code, relating to classification of positions and 
        General Schedule pay rates, except that the rate of pay for the 
        executive director and other personnel may not exceed the 
        maximum rate payable for a position at GS-15 of the General 
        Schedule under section 5332 of such title.
            (3) Personnel as federal employees.--
                    (A) In general.--The executive director and any 
                personnel of the Commission who are employees shall be 
                employees under section 2105 of title 5, United States 
                Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 
                89, and 90 of that title.
                    (B) Members of commission.--Subparagraph (A) shall 
                not be construed to apply to members of the Commission.
    (d) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the Commission without reimbursement, and 
such detail shall be without interruption or loss of civil service 
status or privilege.
    (e) Procurement of Temporary and Intermittent Services.--The 
chairperson of the Commission may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals which do not exceed the daily equivalent of the annual 
rate of basic pay prescribed for level V of the Executive Schedule 
under section 5316 of such title.

SEC. 205. CONGRESSIONAL CONSIDERATION OF REFORM PROPOSALS.

    (a) Definitions.--In this section:
            (1) Implementation bill.--The term ``implementation bill'' 
        means only a bill which is introduced as provided under 
        subsection (b), and contains the proposed legislation included 
        in the report submitted to Congress under section 202, without 
        modification.
            (2) Calendar day.--The term ``calendar day'' means a 
        calendar day other than 1 on which either House is not in 
        session because of an adjournment of more than 3 days to a date 
        certain.
    (b) Introduction; Referral; and Report or Discharge.--
            (1) Introduction.--On the first calendar day on which both 
        Houses are in session, on or immediately following the date on 
        which the report is submitted to Congress under section 202, a 
        single implementation bill shall be introduced (by request)--
                    (A) in the Senate by the Majority Leader of the 
                Senate, for himself and the Minority Leader of the 
                Senate, or by Members of the Senate designated by the 
                Majority Leader and Minority Leader of the Senate; and
                    (B) in the House of Representatives by the Speaker 
                of the House of Representatives, for himself and the 
                Minority Leader of the House of Representatives, or by 
                Members of the House of Representatives designated by 
                the Speaker and Minority Leader of the House of 
                Representatives.
            (2) Referral.--The implementation bills introduced under 
        paragraph (1) shall be referred to any appropriate committee of 
        jurisdiction in the Senate and any appropriate committee of 
        jurisdiction in the House of Representatives. A committee to 
        which an implementation bill is referred under this paragraph 
        may report such bill to the respective House without amendment.
            (3) Report or discharge.--If a committee to which an 
        implementation bill is referred has not reported such bill by 
        the end of the 15th calendar day after the date of the 
        introduction of such bill, such committee shall be immediately 
        discharged from further consideration of such bill, and upon 
        being reported or discharged from the committee, such bill 
        shall be placed on the appropriate calendar.
    (c) Floor Consideration.--
            (1) In general.--When the committee to which an 
        implementation bill is referred has reported, or has been 
        discharged under subsection (b)(3), it is at any time 
        thereafter in order (even though a previous motion to the same 
        effect has been disagreed to) for any Member of the respective 
        House to move to proceed to the consideration of the 
        implementation bill, and all points of order against the 
        implementation bill (and against consideration of the 
        implementation bill) are waived. The motion is highly 
        privileged in the House of Representatives and is privileged in 
        the Senate and is not debatable. The motion is not subject to 
        amendment, or to a motion to postpone, or to a motion to 
        proceed to the consideration of other business. A motion to 
        reconsider the vote by which the motion is agreed to or 
        disagreed to shall not be in order. If a motion to proceed to 
        the consideration of the implementation bill is agreed to, the 
        implementation bill shall remain the unfinished business of the 
        respective House until disposed of.
            (2) Amendments.--An implementation bill may not be amended 
        in the Senate or the House of Representatives.
            (3) Debate.--Debate on the implementation bill, and on all 
        debatable motions and appeals in connection therewith, shall be 
        limited to not more than 10 hours, which shall be divided 
        equally between those favoring and those opposing the 
        resolution. A motion further to limit debate is in order and 
        not debatable. An amendment to, or a motion to postpone, or a 
        motion to proceed to the consideration of other business, or a 
        motion to recommit the implementation bill is not in order. A 
        motion to reconsider the vote by which the implementation bill 
        is agreed to or disagreed to is not in order.
            (4) Vote on final passage.--Immediately following the 
        conclusion of the debate on an implementation bill, and a 
        single quorum call at the conclusion of the debate if requested 
        in accordance with the rules of the appropriate House, the vote 
        on final passage of the implementation bill shall occur.
            (5) Rulings of the chair on procedure.--Appeals from the 
        decisions of the Chair relating to the application of the rules 
        of the Senate or the House of Representatives, as the case may 
        be, to the procedure relating to an implementation bill shall 
        be decided without debate.
    (d) Coordination With Action by Other House.--If, before the 
passage by 1 House of an implementation bill of that House, that House 
receives from the other House an implementation bill, then the 
following procedures shall apply:
            (1) Nonreferral.--The implementation bill of the other 
        House shall not be referred to a committee.
            (2) Vote on bill of other house.--With respect to an 
        implementation bill of the House receiving the implementation 
        bill--
                    (A) the procedure in that House shall be the same 
                as if no implementation bill had been received from the 
                other House; but
                    (B) the vote on final passage shall be on the 
                implementation bill of the other House.
    (e) Rules of Senate and House of Representatives.--This section is 
enacted by Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of an implementation bill described in 
        subsection (a), and it supersedes other rules only to the 
        extent that it is inconsistent with such rules; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.

SEC. 206. TRANSFER OF 1.25 PERCENT OF TAXABLE PAYROLL TO SOCIAL 
              SECURITY.

    Not later than September 30 of each year, the Secretary of the 
Treasury shall transfer an amount equal to 1.25 percent of the taxable 
payroll for the preceding calendar year to the Federal Old-Age and 
Survivors Insurance Trust Fund.

SEC. 207. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary for carrying out this subtitle.

              Subtitle B--Other Sustainability Provisions

SEC. 211. REDUCTION IN THE AMOUNT OF CERTAIN TRANSFERS TO MEDICARE 
              TRUST FUND.

    Subparagraph (A) of section 121(e)(1) of the Social Security 
Amendments of 1983 (42 U.S.C. 401 note), as amended by section 
13215(c)(1) of the Omnibus Budget Reconciliation Act of 1993, is 
amended--
            (1) in clause (ii), by striking ``the amounts'' and 
        inserting ``the applicable percentage of the amounts''; and
            (2) by adding at the end the following: ``For purposes of 
        clause (ii), the applicable percentage for a year is equal to 
        100 percent, reduced (but not below zero) by 10 percentage 
        points for each year after 2005.''.

SEC. 212. MECHANISM FOR REMEDYING UNFORESEEN DETERIORATION IN SOCIAL 
              SECURITY SOLVENCY.

    (a) In General.--Section 709 of the Social Security Act (42 U.S.C. 
910) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by striking ``Sec. 709. (a) If the Board of Trustees'' 
        and all that follows through ``any such Trust Fund'' and 
        inserting the following:
    ``Sec. 709. (a)(1)(A) If the Board of Trustees of the Federal Old-
Age and Survivors Insurance Trust Fund and the Federal Disability 
Insurance Trust Fund determines at any time, using intermediate 
actuarial assumptions, that the balance ratio of either such Trust Fund 
for any calendar year during the succeeding period of 75 calendar years 
will be zero, the Board shall promptly submit to Congress and to the 
President a report setting forth its recommendations for statutory 
adjustments affecting the receipts and disbursements of such Trust Fund 
necessary to maintain the balance ratio of such Trust Fund at not less 
than 50 percent, with due regard to the economic conditions which 
created such inadequacy in the balance ratio and the amount of time 
necessary to alleviate such inadequacy in a prudent manner. The report 
shall set forth specifically the extent to which benefits would have to 
be reduced, taxes under section 1401, 3101, or 3111 of the Internal 
Revenue Code of 1986 would have to be increased, or a combination 
thereof, in order to obtain the objectives referred to in the preceding 
sentence.
    ``(B) If the Board of Trustees of the Federal Old-Age and Survivors 
Insurance Trust Fund and the Federal Disability Insurance Trust Fund 
determines at any time, using intermediate actuarial assumptions, that 
the balance ratio of either such Trust Fund for any calendar year 
during the succeeding period of 75 calendar years will be 200 percent 
or greater, the Board shall promptly submit to Congress and to the 
President a report setting forth its recommendations on any of the 
following:
            ``(i) An increase in the amount of contributions for 
        personal retirement accounts under part B of title II of the 
        Social Security Act.
            ``(ii) An increase in the benefits under part A of title II 
        of the Social Security Act.
            ``(iii) A reduction in the tax rate under chapters 2 and 21 
        of the Internal Revenue Code of 1986.
            ``(iv) Any other proposal which ensures adequate benefits 
        for individuals covered under title II of the Social Security 
        Act and maintains the solvency and sustainability of the 
        Federal Old-Age and Survivors Insurance Trust Fund and the 
        Federal Disability Insurance Trust Fund.
    ``(2)(A) The President shall, not later than 30 days after the 
submission of any report under paragraph (1), transmit to the Board and 
to Congress a report containing the President's approval or disapproval 
of the Board's recommendations.
    ``(B) If the President approves all the recommendations of the 
Board, the President shall transmit a copy of such recommendations to 
Congress as the President's recommendations, together with a 
certification of the President's adoption of such recommendations.
    ``(C) If the President disapproves the recommendations of the 
Board, in whole or in part, the President shall transmit to the Board 
and to Congress the reasons for that disapproval. The Board shall then 
transmit to Congress and the President, not later than 60 days after 
the date of the submission of the original report to the President, a 
revised list of recommendations.
    ``(D) If the President approves all of the revised recommendations 
of the Board transmitted to the President under subparagraph (C), the 
President shall transmit a copy of such revised recommendations to 
Congress as the President's recommendations, together with a 
certification of the President's adoption of such recommendations.
    ``(E) If the President disapproves the revised recommendations of 
the Board, in whole or in part, the President shall transmit to the 
Board and to Congress the reasons for that disapproval, together with 
such revisions to such recommendations as the President determines are 
necessary to bring such recommendations within the President's 
approval. The President shall transmit a copy of such recommendations, 
as so revised, to the Board and Congress as the President's 
recommendations, together with a certification of the President's 
adoption of such recommendations.
    ``(3)(A) This paragraph is enacted by Congress--
            ``(i) as an exercise of the rulemaking power of the Senate 
        and the House of Representatives, respectively, and as such it 
        is deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a joint resolution described in 
        subparagraph (B), and it supersedes other rules only to the 
        extent that it is inconsistent with such rules; and
            ``(ii) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.
    ``(B) For purposes of this paragraph, the term `joint resolution' 
means only a joint resolution which is introduced within the 10-day 
period beginning on the date on which the President transmits the 
President's recommendations, together with the President's 
certification, to Congress under subparagraph (B), (D), or (E) of 
paragraph (2), and--
            ``(i) which does not have a preamble;
            ``(ii) the matter after the resolving clause of which is as 
        follows: `That the Congress approves the recommendations of the 
        President as transmitted on __ pursuant to section 709(a) of 
        the Social Security Act, as follows: ____', the first blank 
        space being filled in with the appropriate date and the second 
        blank space being filled in with the statutory adjustments 
        contained in the recommendations; and
            ``(iii) the title of which is as follows: `Joint resolution 
        approving the recommendations of the President regarding social 
        security.'.
    ``(C) A joint resolution described in subparagraph (B) that is 
introduced in the House of Representatives shall be referred to the 
Committee on Ways and Means of the House of Representatives. A joint 
resolution described in subparagraph (B) introduced in the Senate shall 
be referred to the Committee on Finance of the Senate.
    ``(D) If the committee to which a joint resolution described in 
subparagraph (B) is referred has not reported such joint resolution (or 
an identical joint resolution) by the end of the 20-day period 
beginning on the date on which the President transmits the 
recommendation to Congress under paragraph (2), such committee shall 
be, at the end of such period, discharged from further consideration of 
such joint resolution, and such joint resolution shall be placed on the 
appropriate calendar of the House involved.
    ``(E)(i) On or after the third day after the date on which the 
committee to which such a joint resolution is referred has reported, or 
has been discharged (under subparagraph (D)) from further consideration 
of, such a joint resolution, it is in order (even though a previous 
motion to the same effect has been disagreed to) for any Member of the 
respective House to move to proceed to the consideration of the joint 
resolution. A Member may make the motion only on the day after the 
calendar day on which the Member announces to the House concerned the 
Member's intention to make the motion, except that, in the case of the 
House of Representatives, the motion may be made without such prior 
announcement if the motion is made by direction of the committee to 
which the joint resolution was referred. All points of order against 
the joint resolution (and against consideration of the joint 
resolution) are waived. The motion is highly privileged in the House of 
Representatives and is privileged in the Senate and is not debatable. 
The motion is not subject to amendment, or to a motion to postpone, or 
to a motion to proceed to the consideration of other business. A motion 
to reconsider the vote by which the motion is agreed to or disagreed to 
shall not be in order. If a motion to proceed to the consideration of 
the joint resolution is agreed to, the respective House shall 
immediately proceed to consideration of the joint resolution without 
intervening motion, order, or other business, and the joint resolution 
shall remain the unfinished business of the respective House until 
disposed of.
    ``(ii) Debate on the joint resolution, and on all debatable motions 
and appeals in connection therewith, shall be limited to not more than 
2 hours, which shall be divided equally between those favoring and 
those opposing the joint resolution. An amendment to the joint 
resolution is not in order. A motion further to limit debate is in 
order and not debatable. A motion to postpone, or a motion to proceed 
to the consideration of other business, or a motion to recommit the 
joint resolution is not in order. A motion to reconsider the vote by 
which the joint resolution is agreed to or disagreed to is not in 
order.
    ``(iii) Immediately following the conclusion of the debate on a 
joint resolution described in subparagraph (B) and a single quorum call 
at the conclusion of the debate if requested in accordance with the 
rules of the appropriate House, the vote on final passage of the joint 
resolution shall occur.
    ``(iv) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate or the House of Representatives, 
as the case may be, to the procedure relating to a joint resolution 
described in subparagraph (B) shall be decided without debate.
    ``(F)(i) If, before the passage by one House of a joint resolution 
of that House described in subparagraph (B), that House receives from 
the other House a joint resolution described in subparagraph (B), then 
the following procedures shall apply:
            ``(I) The joint resolution of the other House shall not be 
        referred to a committee and may not be considered in the House 
        receiving it except in the case of final passage as provided in 
        subclause (II).
            ``(II) With respect to a joint resolution described in 
        subparagraph (B) of the House receiving the joint resolution, 
        the procedure in that House shall be the same as if no joint 
        resolution had been received from the other House, but the vote 
        on final passage shall be on the joint resolution of the other 
        House.
    ``(ii) Upon disposition of the joint resolution received from the 
other House, it shall no longer be in order to consider the joint 
resolution that originated in the receiving House.
    ``(b) If the Board of Trustees of the Federal Hospital Insurance 
Trust Fund or the Federal Supplementary Medical Insurance Trust Fund 
determines at any time that the balance ratio of either such Trust 
Fund''.
    (b) Conforming Amendments.--
            (1) Section 709(b) of the Social Security Act (as amended 
        by subsection (a) of this section) is amended by striking ``any 
        such'' and inserting ``either such''.
            (2) Section 709(c) of such Act (as redesignated by 
        subsection (a) of this section) is amended by inserting ``or 
        (b)'' after ``subsection (a)''.

  TITLE III--ADJUSTMENTS FOR WIDOWS' AND WIDOWERS' INSURANCE BENEFITS

SEC. 301. ADJUSTMENTS FOR WIDOWS' AND WIDOWERS' INSURANCE BENEFITS.

    (a) Widow's Benefit.--Section 202(e)(2)(A) of the Social Security 
Act (42 U.S.C. 402(e)(2)(A)) is amended by striking ``equal to'' and 
all that follows and inserting ``equal to the greater of--
            ``(i) the primary insurance amount (as determined for 
        purposes of this subsection after application of subparagraphs 
        (B) and (C)) of such deceased individual, or
            ``(ii) the lesser of--
                    ``(I) 75 percent of the joint benefit which would 
                have been received by the widow or surviving divorced 
                wife and the deceased individual for such month if such 
                individual had not died, or
                    ``(II) the benefit which would have been received 
                by the widow or surviving divorced wife if such 
                individual's contributions were based on the average 
                contribution and benefit base amount (determined under 
                section 230) for each contribution base year (as 
                determined under section 215(b)(2)(B)(ii)) of such 
                individual.''.
    (b) Widower's Benefit.--Section 202(f)(3)(A) of the Social Security 
Act (42 U.S.C. 402(b)(3)(A)) is amended by striking ``equal to'' and 
all that follows and inserting ``equal to the greater of--
            ``(i) the primary insurance amount (as determined for 
        purposes of this subsection after application of subparagraphs 
        (B) and (C)) of such deceased individual, or
            ``(ii) the lesser of--
                    ``(I) 75 percent of the joint benefit which would 
                have been received by the widow or surviving divorced 
                wife and the deceased individual for such month if such 
                individual had not died, or
                    ``(II) the benefit which would have been received 
                by the widower or surviving divorced husband if such 
                individual's contributions were based on the average 
                contribution and benefit base amount (determined under 
                section 230) for each contribution base year (as 
                determined under section 215(b)(2)(B)(ii)) of such 
                individual.''.
    (c) Effective Date.--The amendments made by this section shall 
apply individuals entitled to benefits after the date of enactment of 
this Act.

                 TITLE IV--INVESTOR EDUCATION PROGRAMS

SEC. 401. ESTABLISHMENT OF THE COMMISSION TO STRENGTHEN FINANCIAL 
              EDUCATION PROGRAMS.

    (a) Establishment.--There is established the Commission to 
Strengthen Financial Education Programs (in this Act referred to as the 
``Commission'').
    (b) Membership.--
            (1) Composition.--The Commission shall be composed of 12 
        members of whom--
                    (A) 1 shall be the Chairman of the Personal 
                Retirement Account Board;
                    (B) 1 shall be the Secretary of the Treasury;
                    (C) 1 shall be the Secretary of Education;
                    (D) 1 shall be the Chairman of the Federal Reserve 
                Board;
                    (E) 1 shall be the Secretary of Labor;
                    (F) 1 shall be the Commissioner of the Social 
                Security Administration;
                    (G) 1 shall be the Chairman of the Securities and 
                Exchange Commission; and
                    (H) 5 shall be appointed by the President from 
                among persons who are recognized in the field of 
                promoting understanding of financial literacy issues.
            (2) Date.--The appointments of the members of the 
        Commission under paragraph (1)(H) shall be made not later than 
        30 days after the date of the enactment of this Act.
    (c) Period of Appointment; Vacancies.--Members shall be appointed 
for the life of the Commission. Any vacancy in the Commission shall not 
affect its powers, but shall be filled in the same manner as the 
original appointment.
    (d) Initial Meeting.--Not later than 60 days after the date of the 
enactment of this Act, the Commission shall hold its first meeting.
    (e) Meetings.--The Commission shall meet at the call of the 
Chairman.
    (f) Quorum.--A majority of the members of the Commission shall 
constitute a quorum, but a lesser number of members may hold hearings.
    (g) Chairman and Vice Chairman.--The Commission shall select a 
Chairman and Vice Chairman from among its members.

SEC. 402. DUTIES OF THE COMMISSION.

    (a) Study.--
            (1) In general.--The Commission shall conduct a thorough 
        study of all matters relating to programs to increase the 
        financial literacy of Americans.
            (2) Matters studied.--The matters studied by the Commission 
        shall include--
                    (A) existing Federal and non-Federal financial 
                literacy programs, including a review and performance 
                evaluation of such programs;
                    (B) the coordination of existing Federal and non-
                Federal financial education efforts; and
                    (C) ideas for new public initiatives to increase 
                the financial literacy of all Americans.
    (b) Recommendations.--The Commission shall develop recommendations 
on--
            (1) streamlining existing financial literacy programs;
            (2) increasing financial literacy for all Americans; and
            (3) new avenues for public-private partnerships in 
        financial literacy.
    (c) Report.--Not later than 6 months after the date of the 
enactment of this Act, the Commission shall submit a report to the 
President and to Congress which shall contain a detailed statement of 
the findings and conclusions of the Commission, together with its 
recommendations for such legislation and administrative actions as it 
considers appropriate.

SEC. 403. POWERS OF THE COMMISSION.

    (a) Hearings.--The Commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such 
evidence as the Commission considers advisable to carry out this Act.
    (b) Information From Federal Agencies.--The Commission may secure 
directly from any Federal department or agency such information as the 
Commission considers necessary to carry out this Act. Upon request of 
the Chairman of the Commission, the head of such department or agency 
shall furnish such information to the Commission.
    (c) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.
    (d) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property.

SEC. 404. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--Each member of the Commission who is 
not an officer or employee of the Federal Government shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which such member is engaged in the performance of 
the duties of the Commission. All members of the Commission who are 
officers or employees of the United States shall serve without 
compensation in addition to that received for their services as 
officers or employees of the United States.
    (b) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (c) Staff.--
            (1) In general.--The Chairman of the Commission may, 
        without regard to the civil service laws and regulations, 
        appoint and terminate an executive director and such other 
        additional personnel as may be necessary to enable the 
        Commission to perform its duties. The employment of an 
        executive director shall be subject to confirmation by the 
        Commission.
            (2) Compensation.--The Chairman of the Commission may fix 
        the compensation of the executive director and other personnel 
        without regard to chapter 51 and subchapter III of chapter 53 
        of title 5, United States Code, relating to classification of 
        positions and General Schedule pay rates, except that the rate 
        of pay for the executive director and other personnel may not 
        exceed the rate payable for level V of the Executive Schedule 
        under section 5316 of such title.
    (d) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the Commission without reimbursement, and 
such detail shall be without interruption or loss of civil service 
status or privilege.
    (e) Procurement of Temporary and Intermittent Services.--The 
Chairman of the Commission may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals which do not exceed the daily equivalent of the annual 
rate of basic pay prescribed for level V of the Executive Schedule 
under section 5316 of such title.

SEC. 405. TERMINATION OF THE COMMISSION.

    The Commission shall terminate 90 days after the date on which the 
Commission submits its report under section 402(c).

SEC. 406. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated such sums 
as are necessary for fiscal year 2004 to the Commission to carry out 
this title.
    (b) Availability.--Any sums appropriated under the authorization 
contained in this section shall remain available, without fiscal year 
limitation, until expended.
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