rity Act for each individual who has filed an election under 
section 253(b) of such Act shall receive for each calendar 
year following such election, during which such individual 
has earned wages or to which self-employment income of 
such individual is credited, a payment equal to the credit 
amount determined under subsection (b) for the individual 
for such calendar year. 
‘‘(b) CREDIT AMOUNT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the credit amount determined under this sub-
section for an individual for a calendar year is an 
amount equal to the lesser of— 
‘‘(A) 4 percent of the sum of— 
‘‘(i) wages (as defined in section 
3121(a)) received by such individual dur-
ing such year on which tax is imposed by 
section 3101, and 
‘‘(ii) self-employment income (as de-
fined in 1402(b)) of such individual for the 
taxable year of such individual ending in 
such calendar year on which tax is imposed 
by section 1401, or 
‘‘(B) $1,000 (in the case of the calendar 
year ending after the date of the enactment of 
the Social Security Guarantee Plus Act of
2005) and the amount determined under para-
graph (2) for the calendar year (in the case of 
subsequent calendar years). 
‘‘(2) WAGE-BASED
ADJUSTMENTS.—The Sec-
retary shall, on or before November 1 of the first 
calendar year ending after the date of the enactment 
of the Social Security Guarantee Plus Act of 2005 
and of every calendar year thereafter, determine and 
publish in the Federal Register the dollar amount 
under paragraph (1)(B) for the succeeding calendar 
year. Such amount shall be the larger of— 
‘‘(A) the amount in effect in the calendar 
year in which the determination under this 
paragraph is made, or 
‘‘(B) the product of $1,000 and the ratio 
of the national average wage index (as defined 
in section 209(k)(1) of the Social Security Act) 
for the calendar year before the year in which 
the determination under this paragraph is made 
to the national average wage index (as so de-
fined) for the first of the 2 calendar years pre-
ceding the calendar year ending after the date 
of the enactment of the Social Security Guar-
antee Plus Act of 2005,
with such product, if not a multiple of $10, being 
rounded to the next higher multiple of $10 where 
such amount is a multiple of $5 but not of $10 and 
to the nearest multiple of $10 in any other case. 
‘‘(c) SPECIAL RULES.— 
‘‘(1) AGREEMENTS BY AMERICAN EMPLOYERS 
OF FOREIGN AFFILIATES.—Any amounts paid pur-
suant to an agreement under section 3121(l) (relat-
ing to agreements entered into by American employ-
ers with respect to foreign affiliates) which are 
equivalent to the taxes referred to in subsection 
(b)(1)(A) shall be treated as taxes referred to in 
such subsection. 
‘‘(2) COORDINATION WITH SPECIAL REFUND OF 
SOCIAL
SECURITY
TAXES.—For purposes of sub-
section (b)(1)(A), tax imposed by section 3101 shall 
not include any taxes to the extent the individual is 
entitled to a special refund of such taxes under sec-
tion 6413(c). 
‘‘(d) PAYMENT.—Notwithstanding any other provi-
sion of this title, the payment under subsection (a) shall 
be paid only as provided in section 253 of the Social Secu-
rity Act.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 25 of such Code is amended by adding 
at the end the following new item: 
‘‘Sec. 3511. Social Security guarantee refundable credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to remuneration received, and net 
earnings for self-employment for services performed, in 
calendar years ending after the date of the enactment of 
this Act. 
SEC. 102. ESTABLISHMENT OF THE SOCIAL SECURITY 
GUARANTEE PROGRAM. 
(a) IN GENERAL.—Title II of the Social Security Act 
is amended— 
(1) by inserting before section 201 the fol-
lowing: 
‘‘PART A—INSURANCE BENEFITS’’; 
(2) by adding at the end of such title the fol-
lowing new part: 
‘‘PART B—SOCIAL SECURITY GUARANTEE PROGRAM 
‘‘DEFINITIONS 
‘‘SEC. 251. For purposes of this part— 
‘‘(1) COVERED
INDIVIDUAL.—The term ‘cov-
ered individual’ means an individual who has filed 
an election under section 253(b). 
‘‘(2) ACCOUNT ASSETS.—The term ‘account as-
sets’ means, with respect to a Social Security guar-
antee account, the total amount transferred to such 
account, increased by earnings credited under this 
part and reduced by losses and administrative ex-
penses under this part. 
‘‘(3) CERTIFIED
ACCOUNT
MANAGER.—The 
term ‘certified account manager’ means a person 
who is certified under section 257(b). 
‘‘(4) BOARD.—The term ‘Board’ means the So-
cial Security Guarantee Board established under sec-
tion 257(a). 
‘‘(5) 
COMMISSIONER.—The 
term 
‘Commis-
sioner’ means the Commissioner of Social Security. 
‘‘(6) PROGRAM.—The term ‘Program’ means 
the Social Security Guarantee Program established 
under this part. 
‘‘(7) COVERED
MONTHLY
INSURANCE
BEN-
EFIT.—The term ‘covered monthly insurance benefit’ 
means a monthly insurance benefit under section 
202 or 223, other than a child’s insurance benefit 
under section 202(d) of a child who has not attained 
age 18 (or who is a full-time elementary or sec-
ondary school student (as defined in section 
202(d)(7)(A)) and has not attained age 19). 
‘‘ESTABLISHMENT OF PROGRAM 
‘‘SEC. 252. There is hereby established a Social Secu-
rity Guarantee Program. The Program shall be governed
by regulations which shall be prescribed by the Social Se-
curity Guarantee Board. The Board, the Executive Direc-
tor appointed by the Board, the Commissioner, and the 
Secretary of the Treasury shall consult with each other 
in issuing regulations relating to their respective duties 
under this part. Such regulations shall provide for appro-
priate exchange of information to assist them in per-
forming their duties under this part. 
‘‘SOCIAL SECURITY GUARANTEE ACCOUNTS 
‘‘SEC. 253. (a) ESTABLISHMENT OF ACCOUNTS.— 
Under regulations which shall be prescribed by the Board 
in consultation with the Secretary of the Treasury— 
‘‘(1) the Board shall establish a Social Security 
guarantee account for each covered individual (for 
whom a Social Security guarantee account has not 
otherwise been established under this part) upon ini-
tial receipt of a transfer under subsection (c) with 
respect to such covered individual, and 
‘‘(2) in any case described in paragraph (2) of 
section 256(d), the Board shall establish a Social 
Security guarantee account for the divorced spouse 
referred to in such paragraph (2). 
‘‘(b) ELECTION
OF STATUS
AS COVERED INDI-
VIDUAL.— 
‘‘(1) IN GENERAL.—Any individual who has at-
tained age 18 and has been assigned a social secu-
rity account number under section 205(c) may elect 
to be a covered individual under this part upon filing 
an election under this subsection in a form and man-
ner which shall be prescribed in regulations of the 
Commissioner of Social Security, in consultation 
with the Board. Such regulations shall provide for 
the filing of such elections during regularly sched-
uled intervals. Such an election shall be irrevocable 
and shall be effective with respect to wages earned, 
and self-employment income derived, on or after 
January 1 following the date of such filing. 
‘‘(2) REQUIREMENTS.—An election by an indi-
vidual under this subsection is an election, filed with 
the Commissioner, in such form and manner as shall 
be prescribed in regulations of the Commissioner, 
consisting of a written and signed declaration of 
such individual’s intention to become a covered indi-
vidual under this part. The Commissioner shall pro-
vide for immediate notification to the Board and the 
Executive Director of such election. 
‘‘(c) TRANSFERS OF SOCIAL SECURITY GUARANTEE 
REFUNDABLE CREDITS.— 
‘‘(1) IN
GENERAL.—Under regulations which 
shall be prescribed by the Secretary of the Treasury 
in consultation with the Board, as soon as prac-
ticable during the 1-year period after each calendar 
year, while minimizing capital market distortions, 
the Secretary of the Treasury shall transfer to each 
covered individual’s Social Security guarantee ac-
count, from amounts otherwise available in the gen-
eral fund of the Treasury, an amount equal to the 
sum of— 
‘‘(A) the amount payable to the covered in-
dividual’s Social Security guarantee account 
under section 3511 of the Internal Revenue 
Code of 1986 (relating to the Social Security 
guarantee refundable credit) with respect to 
wages received during such calendar year by the 
covered individual and self-employment income 
derived by the covered individual during the 
such individual’s taxable year ending in such 
calendar year, and 
‘‘(B) deemed interest on the amount deter-
mined under subparagraph (A) for the period 
commencing with July 1 of such calendar year 
and ending with the date of the transfer, com-
puted at a rate equal to the average market 
yield (computed by the Managing Trustee on 
the basis of market quotations as of the end of 
the calendar month next preceding the date of
the transfer) on all marketable interest-bearing 
obligations of the United States then forming a 
part of the public debt which are not due or 
callable earlier than 4 years after the end of 
such calendar month (rounding any average 
market yield computed under this paragraph 
which is not a multiple of 1⁄8 of 1 percent to the 
nearest multiple of 1⁄8 of 1 percent). 
‘‘(2) 
TRANSITION
RULE.—Notwithstanding 
paragraph (1), amounts payable to Social Security 
guarantee accounts under paragraph (1) with re-
spect to the first calendar year described in para-
graph (1)(A) ending after the date of the enactment 
of the Social Security Guarantee Plus Act of 2005 
shall be paid by the Secretary of the Treasury as 
soon as practicable after such Secretary determines 
that the administrative mechanisms necessary to 
provide for accurate and efficient payment of such 
amounts have been established. 
‘‘(3) AVAILABILITY
OF
TRUST
FUNDS
FOR 
TRANSFERS.— 
‘‘(A) RECOMMENDATIONS
BY
MANAGING 
TRUSTEE.—As determined appropriate from 
time to time by the Managing Trustee of the 
Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance 
Trust Fund, the Managing Trustee shall trans-
mit to each House of the Congress the Man-
aging Trustee’s recommendation that amounts 
to be transferred to Social Security guarantee 
accounts under paragraph (1) be transferred 
from such Trust Funds in lieu of the general 
fund. Any such recommendation shall take ef-
fect only upon ratification thereof by an Act of 
Congress. 
‘‘(B) 
DETERMINATIONS
OF
AVAIL-
ABILITY.—The Managing Trustee may not de-
termine that any such transfer from the Trust 
Funds is appropriate at any time unless the 
Managing 
Trustee 
has 
determined 
that 
amounts in such Trust Fund are available at 
such time for such transfers. For purposes of 
this subparagraph, amounts in either of the 
Trust Funds shall be considered to be available 
for such transfers at any time only to the ex-
tent that the balance in such Trust Fund at 
such time exceeds the best estimate of the Man-
aging Trustee of the projected withdrawals oth-
erwise required from such Trust Fund during 
the next following 1-year period.
‘‘(C) 
ASSUMPTIONS.—In 
making 
rec-
ommendations under this paragraph, the Man-
aging Trustee shall utilize the intermediate ac-
tuarial assumptions utilized by the Board of 
Trustees of the Trust Funds for its most recent 
annual report issued under section 201(c). 
‘‘(D) REPORT ON USE OF SOCIAL SECU-
RITY SURPLUSES.—The Managing Trustee shall 
annually prepare a report consisting of— 
‘‘(i) the Managing Trustee’s deter-
mination of the extent to which amounts 
have been appropriated from the Trust 
Funds under this paragraph in connection 
with Social Security guarantee refundable 
credits under section 3511 of such Code, 
and 
‘‘(ii) the Managing Trustee’s rec-
ommendations, based on the Managing 
Trustee’s review of the financial status of 
such Trust Funds, with respect to whether 
or to what extent that portion of the taxes 
under chapters 2 and 21 of the Internal 
Revenue Code of 1986 to which surpluses 
in the Trust Funds may be attributed 
should be reduced or should be maintained
so as to allow for continued appropriations 
from the Trust Funds under this para-
graph in connection with such credits. 
The Board of Trustees of the Trust Funds 
shall include such report in the Board’s annual 
report to the President and the Congress under 
section 201(c)(2). 
‘‘(d) REQUIREMENTS
FOR
ACCOUNTS.—The fol-
lowing requirements shall be met with respect to each So-
cial Security guarantee account: 
‘‘(1) Amounts transferred to the account con-
sist solely of amounts transferred pursuant to this 
part. 
‘‘(2) In accordance with section 254, the ac-
count assets are held for purposes of investment 
under the Program by a certified account manager 
designated by (or on behalf of) the covered indi-
vidual for whom such account is established under 
the Program. 
‘‘(3) Disposition of the account assets is made 
solely in accordance with section 256. 
‘‘(e) ACCOUNTING
OF RECEIPTS
AND DISBURSE-
MENTS UNDER THE PROGRAM.—The Board shall provide 
by regulation for an accounting system for purposes of 
this part—
‘‘(1) which shall be maintained by or under the 
Executive Director, 
‘‘(2) which shall provide for crediting of earn-
ings from, and debiting of losses and administrative 
expenses from, amounts held in Social Security 
guarantee accounts, and 
‘‘(3) under which receipts and disbursements 
under the Program which are attributable to each 
account are separately accounted for with respect to 
such account. 
‘‘(f) CORRECTION
OF ERRONEOUS TRANSFERS.— 
The Board, in consultation with the Commissioner, shall 
provide by regulation rules similar to paragraphs (4) 
through (7) and (9) of section 205(c) and section 205(g) 
with respect to the correction of erroneous or omitted 
transfers of amounts to Social Security guarantee ac-
counts. 
‘‘INVESTMENT OF ACCOUNTS 
‘‘SEC. 254. (a) DESIGNATION OF CERTIFIED AC-
COUNT MANAGERS.—Under the Program, a certified ac-
count manager shall be designated by or on behalf of each 
covered individual to hold for investment under this sec-
tion such individual’s Social Security guarantee account 
assets. 
‘‘(b) PROCEDURE FOR DESIGNATION.—Any designa-
tion made under subsection (a) shall be made in such form
and manner as shall be prescribed in regulations pre-
scribed by the Board, following the initiation of an edu-
cational campaign as provided in section 257(a)(3)(C). 
Such regulations shall provide for annual selection periods 
during which covered individuals may make designations 
pursuant to subsection (a). Designations made pursuant 
to subsection (a) during any such period shall be irrev-
ocable for the one-year period following such period, ex-
cept that such regulations shall provide for such interim 
designations as may be necessitated by the decertification 
of a certified account manager. Such regulations shall pro-
vide for such designations made by the Board on behalf 
of a covered individual in any case in which a timely des-
ignation is not made by the covered individual. 
‘‘(c) INVESTMENT GUIDELINES.— 
‘‘(1) IN GENERAL.—For purposes of investment 
of amounts held in each Social Security guarantee 
account, the Board shall provide by regulation for 3 
investment options. Such options shall consist of the 
60/40 investment option, the 65/35 investment op-
tion, and the 70/30 investment option. 
‘‘(2) ALTERNATIVE INVESTMENT OPTIONS.— 
‘‘(A) THE
60/40
INVESTMENT
OPTION.— 
Under the 60/40 investment option, amounts 
are held in the Social Security guarantee ac-
count so as to ensure, to the maximum extent 
practicable, that, of the total balance credited 
to the account and available for investment 
(after allowing for administrative expenses)— 
‘‘(i) 60 percent is invested in common 
stock as provided in paragraph (4), and 
‘‘(ii) 40 percent is invested in fixed in-
come securities as provided in paragraph 
(5). 
For such purpose, certified account managers 
shall offer each account holder a choice of one 
or more portfolios of each such type of invest-
ment. Except as provided in an election under 
paragraph (3), amounts held in a Social Secu-
rity guarantee account shall be invested under 
the 60/40 investment option. 
‘‘(B) THE
65/35
INVESTMENT
OPTION.— 
Under the 65/35 investment option, amounts 
are held in the Social Security guarantee ac-
count so as to ensure, to the maximum extent 
practicable, that, of the total balance credited 
to the account and available for investment 
(after allowing for administrative expenses)— 
‘‘(i) 65 percent is invested in common 
stock as provided in paragraph (4), and
‘‘(ii) 35 percent is invested in fixed in-
come securities as provided in paragraph 
(5). 
For such purpose, certified account managers 
shall offer each account holder a choice of one 
or more portfolios of each such type of invest-
ment. 
‘‘(C) THE
70/30
INVESTMENT
OPTION.— 
Under the 70/30 investment option, amounts 
are held in the Social Security guarantee ac-
count so as to ensure, to the maximum extent 
practicable, that, of the total balance credited 
to the account and available for investment 
(after allowing for administrative expenses)— 
‘‘(i) 70 percent is invested in common 
stock as provided in paragraph (4), and 
‘‘(ii) 30 percent is invested in fixed in-
come securities as provided in paragraph 
(5). 
For such purpose, certified account managers 
shall offer each account holder a choice of one 
or more portfolios of each such type of invest-
ment. 
‘‘(3) ELECTIONS
AMONG
INVESTMENT
OP-
TIONS.—Pursuant to any individual’s written elec-
tion filed in accordance with regulations of the 
Board during annual open seasons specified in such 
regulations, the certified account manager of the in-
dividual’s Social Security guarantee account shall, in 
accordance with such regulations, provide for dis-
investment and reinvestment of amounts held in the 
account under any of the investment options de-
scribed in paragraph (2) so as to provide for invest-
ment of amounts held in the account in any of the 
other such investment options specified in such elec-
tion. 
‘‘(4) COMMON STOCK INDEX REQUIREMENTS.— 
The Board shall establish by regulation standards 
which must be met by any portfolio of common stock 
selected for investment of account assets as provided 
in subparagraph (A)(i), (B)(i), or (C)(i) of para-
graph (2), consistent with the requirement that such 
portfolio replicate the performance of one or more 
common stock indices comprised of common stock 
the aggregate market value of which is, in each case, 
a reasonably broad representation of publicly held 
companies whose shares are traded on the equity 
markets. 
‘‘(5) FIXED
INCOME
SECURITIES
REQUIRE-
MENTS.—The Board shall establish by regulation