total wages and self-employment in-
come do not exceed the base amount 
for such calendar year; by 
‘‘(II) 10 percent; and 
‘‘(ii) the product derived by multi-
plying—
‘‘(I) the sum of the total wages 
paid to, and self-employment income 
derived by, such individual during 
such calendar year, to the extent such 
total wages and self-employment in-
come exceed the base amount (taking 
into account the limits imposed by the 
contribution and benefit base under 
section 230); by 
‘‘(II) 5 percent. 
‘‘(B) BASE
AMOUNT.—For purposes of 
subparagraph (A)—
‘‘(i) INITIAL
BASE
AMOUNT.—The 
base amount for calendar year 2005 is 
$10,000. 
‘‘(ii) 
ADJUSTMENTS
TO
BASE 
AMOUNT.—The base amount for any cal-
endar year after 2005 is the product de-
rived by multiplying $10,000 by a frac-
tion—
‘‘(I) the numerator of which is 
the national average wage index (as 
defined in section 209(k)) for the first 
of the 2 preceding calendar years; and 
‘‘(II) the denominator of which is 
the national average wage index (as so 
defined) for 2003. 
‘‘(c) AVAILABILITY.—The sums in the Savings Fund 
are appropriated and shall remain available without fiscal 
year limitation—
‘‘(1) to invest funds in the Tier I Investment 
Fund of the Savings Fund and the Tier II Invest-
ment Fund of the Savings Fund under sections 256 
and 257, respectively; 
‘‘(2) to transfer into Tier III Investment Op-
tions under section 258; 
‘‘(3) to make distributions in accordance with 
section 259; and 
‘‘(4) to pay the administrative expenses of the 
Board in accordance with subsection (e). 
‘‘(d) LIMITATIONS ON USE OF FUNDS.—
‘‘(1) IN GENERAL.—Sums in the Savings Fund 
credited to a participating individual’s personal so-
cial security savings account may not be used for, or 
diverted to, purposes other than for the exclusive 
benefit of the participating individual or the partici-
pating individual’s beneficiaries under this part. 
‘‘(2) ASSIGNMENTS.—Sums in the Savings 
Fund may not be assigned or alienated and are not 
subject to execution, levy, attachment, garnishment, 
or other legal process. 
‘‘(e) PAYMENT OF ADMINISTRATIVE EXPENSES.—
Administrative expenses incurred to carry out this part 
shall be paid out of net earnings in the Savings Fund in 
conjunction with the allocation of investment earnings and 
losses under section 254(c). 
‘‘(f) LIMITATION.—The sums in the Savings Fund 
shall not be appropriated for any purpose other than the 
purposes specified in this part and may not be used for 
any other purpose. 
‘‘SEC. 253. PARTICIPATION IN PROGRAM. 
‘‘(a) PARTICIPATING INDIVIDUAL.—For purposes of 
this part, the term ‘participating individual’ means any 
individual—
‘‘(1)(A) who receives wages in any calendar 
year after December 31, 2004, on which there is im-
posed a tax under section 3101(a) of the Internal 
Revenue Code of 1986, or
‘‘(B) who derives self-employment income for a 
taxable year beginning after December 31, 2004, on 
which there is imposed a tax under section 1401(a) 
of the Internal Revenue Code of 1986, 
‘‘(2) who is born on or after January 1, 1950, 
and 
‘‘(3) who has not filed an election to renounce 
such individual’s status as a participating individual 
under subsection (b) or has filed such an election 
and has subsequently filed an election to reinstate 
such individual’s status as a participating individual 
under subsection (c). 
‘‘(b) RENUNCIATION OF PARTICIPATION.—
‘‘(1) IN GENERAL.—An individual—
‘‘(A) who has not attained retirement age 
(as defined in section 216(l)(1)), and 
‘‘(B) with respect to whom no distribution 
has been made from amounts credited to the in-
dividual’s personal social security savings ac-
count for the purchase of a personal social se-
curity savings annuity, 
may elect, in such form and manner as shall be pre-
scribed in regulations of the Board, to renounce 
such individual’s status as a ‘participating indi-
vidual’ for purposes of this part. Upon completion of