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is a covered employer for any calendar year begin-
ning after December 31, 1999, any individual—
‘‘(A) with respect to whose employment by
such employer during such calendar year there
is imposed an excise tax under section 3111 of
the Internal Revenue Code of 1986, and
‘‘(B) who does not attain age 55 during
such calendar year.
‘‘(4) ELIGIBLE SELF-EMPLOYED INDIVIDUAL.—
The term ‘eligible self-employed individual’ means
any individual—
‘‘(A) on whose self-employment income for
a taxable year beginning after December 31,
1999, there is imposed a tax under section
1401(a) of the Internal Revenue Code of 1986,
and
‘‘(B) who does not attain age 55 during
such taxable year.
‘‘(5) PERSONAL INVESTMENT PLAN CONTRIBU-
TION.—The term ‘personal investment plan con-
tribution’ means—
‘‘(A) with respect to any eligible employee
of a covered employer, an amount equal to 1
percent of the wages received by such employee
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with respect to employment by such employer,
and
‘‘(B) with respect to the self-employment
income of an individual for any taxable year, an
amount equal to 1 percent of such income for
such taxable year.
‘‘(6) ELIGIBLE SURVIVOR.—The term ‘eligible
survivor’ of a deceased individual means such indi-
vidual’s spouse or, if there is no such spouse, such
individual’s last surviving divorced spouse. Such
term shall not include any such surviving divorced
spouse who is married on the date of the deceased
individual’s death.
‘‘(7) BUSINESS DAY.—The term ‘business day’
means any day other than a Saturday, Sunday, or
legal holiday in the area involved.
‘‘PENALTIES
‘‘SEC. 256. (a) FAILURE TO ESTABLISH PERSONAL
INVESTMENT PAYROLL DEDUCTION PLAN.—Any covered
employer who fails to meet the requirements of section
251 for any calendar year shall be subject to a civil penalty
of not to exceed the greater of—
‘‘(1) $5,000 or
‘‘(2) $100 for each eligible employee of such
employer as of the beginning of such calendar year.
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‘‘(b) FAILURE TO MAKE DEDUCTIONS REQUIRED
UNDER PLAN.—Any covered employer who fails to deduct
an amount from the wages of an eligible employee in ac-
cordance with a personal investment payroll deduction
plan shall be subject to a civil penalty of not to exceed
$500 for each such failure.
‘‘(c) FAILURE BY EMPLOYER TO MAKE TIMELY PAY-
MENTS TO PERSONAL INVESTMENT PLAN.—If an amount
deducted from the wages of an eligible employee under a
personal investment payroll deduction plan is not paid to
the Social Security Administration with respect to the
specified personal investment plan within the time pre-
scribed by section 251—
‘‘(1) the employer shall be subject to a civil
penalty of not to exceed 50 percent of the amount
so deducted, and
‘‘(2) shall be liable to the employee for interest
on the amount so deducted at the underpayment
rate determined under section 6621 of the Internal
Revenue Code of 1986 from the last day by which
such amount was required to be so paid on the date
on which such amount is paid into the specified per-
sonal investment plan.
‘‘(d) FAILURE BY ELIGIBLE SELF-EMPLOYED INDI-
VIDUAL TO MAKE TIMELY PAYMENTS TO PERSONAL IN-
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VESTMENT PLAN.—If a personal investment plan con-
tribution is not paid by an eligible self-employed individual
to the Social Security Administration with respect to a
personal investment plan maintained by the individual
within the time prescribed by section 253, such individual
shall be subject to a civil penalty of not to exceed 50 per-
cent of the amount of such contribution.
‘‘(e) FAILURE
BY TRUSTEE TO MAKE TIMELY
TRANSFERS.—If the balance in the personal investment
plan of a deceased individual is not transferred by the
trustee within the time prescribed by section 254—
‘‘(1) the trustee shall be subject to a civil
penalty of not to exceed 50 percent of the
amount of the balance, and
‘‘(2) shall be liable for interest on the bal-
ance at the underpayment rate determined
under section 6621 of the Internal Revenue
Code of 1986 from the last day by which such
balance was required to be so transferred to the
date on which such balance is transferred.
‘‘(f) RULES FOR APPLICATION OF SECTION.—
‘‘(1) 
PENALTIES
ASSESSED
BY
COMMIS-
SIONER.—Any civil penalty assessed by this section
shall be imposed by the Commissioner of Social Se-
curity and collected in a civil action.
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‘‘(2) COMPROMISES.—The Commissioner may
compromise the amount of any civil penalty imposed
by this section.
‘‘(3) AUTHORITY TO WAIVE PENALTY IN CER-
TAIN CASES.—The Commissioner may waive the ap-
plication of this section with respect to any failure
if the Commissioner determines that such failure is
due to reasonable cause and not intentional dis-
regard of rules and regulations.
‘‘PERSONAL INVESTMENT FUND
‘‘SEC. 257. (a) ESTABLISHMENT.—There is estab-
lished and maintained in the Treasury of the United
States a Personal Investment Fund in the same manner
as the Thrift Savings Fund under sections 8437, 8438,
and 8439 of title 5, United States Code.
‘‘(b) PERSONAL INVESTMENT FUND BOARD.—
‘‘(1) IN GENERAL.—There is established and
operated in the Social Security Administration a
Personal Investment Fund Board in the same man-
ner as the Federal Retirement Thrift Investment
Board under subchapter VII of chapter 84 of title
5, United States Code.
‘‘(2) SPECIFIC INVESTMENT DUTIES.—The Per-
sonal Investment Fund shall be managed by the
Personal Investment Fund Board in the same man-
ner as the Thrift Savings Fund is managed under
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subchapter VIII of chapter 84 of title 5, United
States Code.’’.
(2) AMOUNTS DEDUCTED TO BE SHOWN ON W–
STATEMENTS.—Section 6051(a) of the Internal
Revenue Code of 1986 (relating to receipts for em-
ployees), as amended by section 301(c)(3) of the
Health Insurance Portability and Accountability Act
of 1996, is amended—
(A) in paragraph (10), by striking ‘‘and’’;
(B) in paragraph (11), by striking the pe-
riod and inserting ‘‘, and’’; and
(C) by inserting after paragraph (11) the
following:
‘‘(12) the total amount deducted from the em-
ployee’s wages under a personal investment payroll
deduction plan established under part B of title II
of the Social Security Act.’’.
(3) 
EXEMPTION
FROM
ERISA
REQUIRE-
MENTS.—Section 4(b) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1003(b)) is
amended—
(A) in paragraph (4), by striking ‘‘or’’;
(B) in paragraph (5), by striking the pe-
riod and inserting ‘‘; or’’; and