I 
109TH CONGRESS 
1ST SESSION H. R. 1776 
To reform Social Security by establishing a Personal Social Security Savings 
Program and to provide new limitations on the Federal Budget. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 21, 2005 
Mr. RYAN of Wisconsin (for himself, Mr. FEENEY, Mr. HENSARLING, Mr. 
MCHENRY, Mr. BARRETT of South Carolina, Mr. FRANKS of Arizona, 
and Mrs. NORTHUP) introduced the following bill; which was referred to 
the Committee on Ways and Means, and in addition to the Committees 
on the Budget and Rules, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To reform Social Security by establishing a Personal Social 
Security Savings Program and to provide new limitations 
on the Federal Budget. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Social Security Personal Savings Guarantee and Pros-
perity Act of 2005’’.
(b) TABLE OF CONTENTS.—The table of contents is 
as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—PERSONAL SOCIAL SECURITY INVESTMENT PROGRAM 
Sec. 101. Establishment of Personal Social Security Investment Program. 
‘‘PART B—PERSONAL SOCIAL SECURITY SAVINGS PROGRAM 
‘‘Sec. 251. Definitions. 
‘‘Sec. 252. Social Security Personal Savings Fund. 
‘‘Sec. 253. Participation in Program. 
‘‘Sec. 254. Personal social security savings accounts. 
‘‘Sec. 255. Tier I Investment Fund. 
‘‘Sec. 256. Tier II Investment Fund. 
‘‘Sec. 257. Tier III Investment Options. 
‘‘Sec. 258. Personal social security savings annuity and other distributions. 
‘‘Sec. 259. Guarantee of promised benefits. 
‘‘Sec. 260. Personal Social Security Savings Board. 
‘‘Sec. 261. Executive Director. 
Sec. 102. Monthly insurance benefits for participating individuals. 
Sec. 103. General fund transfers to the Federal Old-Age and Survivors Insur-
ance Trust Fund. 
Sec. 104. Tax treatment of accounts. 
Sec. 105. Self-Liquidating Social Security Transition Fund. 
Sec. 106. Budgetary treatment of social security. 
Sec. 107. Dedication of budget surpluses to saving social security. 
Sec. 108. Accounting for the Old-Age, Survivors, and Disability Insurance Pro-
gram and the Personal Social Security Savings Program. 
Sec. 109. Reduction of FICA rates resulting from Personal Social Security Sav-
ings Program. 
TITLE II—PUTTING A LID ON THE FEDERAL BUDGET 
Subtitle A—Spending safeguards on the growth of entitlements and 
mandatories 
Sec. 201. Spending caps on growth of entitlements and mandatories. 
Sec. 202. Exempt programs and activities. 
Sec. 203. Exceptions, limitations, and special rules. 
Sec. 204. Point of order. 
Sec. 205. Technical and conforming amendments. 
Subtitle B—Discretionary spending limits 
Sec. 211. Enforcing discretionary spending limits.
TITLE I—PERSONAL SOCIAL SE-
CURITY 
INVESTMENT 
PRO-
GRAM 
SEC. 101. ESTABLISHMENT OF PERSONAL SOCIAL SECU-
RITY INVESTMENT 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’’; 
and 
(2) by adding at the end the following new part: 
‘‘PART B—PERSONAL SOCIAL SECURITY SAVINGS 
PROGRAM 
‘‘SEC. 251. DEFINITIONS. 
‘‘For purposes of this part— 
‘‘(1) PARTICIPATING
INDIVIDUAL.—The term 
‘participating individual’ has the meaning provided 
in section 253(a). 
‘‘(2) BOARD.—The term ‘Board’ means the 
Personal Social Security Savings Board established 
under section 260. 
‘‘(3) EXECUTIVE DIRECTOR.—The term ‘Execu-
tive Director’ means the Executive Director ap-
pointed under section 261.
‘‘(4) PERSONAL SOCIAL SECURITY SAVINGS AC-
COUNT.—The term ‘personal social security savings 
account’ means an account established under section 
254(a). 
‘‘(5) PERSONAL SOCIAL SECURITY SAVINGS AN-
NUITY.—The term ‘personal social security savings 
annuity’ means an annuity approved by the Board 
under section 258(b)(3). 
‘‘(6) SAVINGS FUND.—The term ‘Savings Fund’ 
means the Social Security Personal Savings Fund 
established under section 252. 
‘‘(7) TIER
I
INVESTMENT
FUND.—The term 
‘Tier I Investment Fund’ means the trust fund cre-
ated under section 255. 
‘‘(8) TIER II INVESTMENT FUND.—The term 
‘Tier II Investment Fund’ means the trust fund cre-
ated under section 256. 
‘‘(9) TIER III INVESTMENT OPTION.—The term 
‘Tier III Investment Option’ means an investment 
option which is— 
‘‘(A) offered by an eligible entity certified 
by the Board under section 257(b); and 
‘‘(B) approved by the Board under section 
257(c).
‘‘SEC. 252. SOCIAL SECURITY PERSONAL SAVINGS FUND. 
‘‘(a) ESTABLISHMENT OF SAVINGS FUND.— 
‘‘(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a trust fund to 
be known as the ‘Social Security Personal Savings 
Fund’. 
‘‘(2) AMOUNTS IN FUND.—The Savings Fund 
shall consist of— 
‘‘(A) all amounts transferred to or depos-
ited into the Savings Fund under subsection 
(b), increased by the total net earnings from in-
vestments of sums in the Savings Fund attrib-
utable 
to 
such 
transferred 
or 
deposited 
amounts, and reduced by the total net losses 
from investments of such sums, and 
‘‘(B) the reserves held in the Annuity Re-
serves 
Account 
established 
under 
section 
258(b)(3), increased by the total net earnings 
from investments of such reserves, and reduced 
by the total net losses from investments of such 
reserves. 
‘‘(3) TRUSTEES.—The Board shall serve as 
trustees of the Savings Fund. 
‘‘(4) BUDGET
AUTHORITY; APPROPRIATION.— 
This part constitutes budget authority in advance of 
appropriations Acts and represents the obligation of
the Board to provide for the payment of amounts 
provided under this part. The amounts held in the 
Savings Fund are appropriated and shall remain 
available without fiscal year limitation. 
‘‘(b) DEPOSITS INTO FUND.— 
‘‘(1) IN GENERAL.—During each calendar year, 
the Secretary of the Treasury shall deposit into the 
Savings Fund, from amounts held in the Federal 
Old-Age and Survivors Insurance Trust Fund, a 
total amount equal, in the aggregate, to 100 percent 
of the redirected social security contribution for such 
calendar year of each individual who is a partici-
pating individual for such calendar year. 
‘‘(2) TRANSFERS BASED ON ESTIMATES.— 
‘‘(A) IN GENERAL.—The amounts depos-
ited pursuant to paragraph (1) shall be trans-
ferred in at least weekly payments from the 
Federal Old-Age and Survivors Insurance Trust 
Fund to the Savings Fund. 
‘‘(B) DETERMINATION OF AMOUNTS.—The 
amounts transferred under subparagraph (A) 
shall be determined on the basis of estimates, 
made by the Commissioner of Social Security 
and certified to the Secretary of the Treasury, 
of the wages paid to, and self-employment in-
come derived by, participating individuals. 
Proper adjustments shall be made in amounts 
subsequently transferred to the extent prior es-
timates were in excess of or were less than ac-
tual amounts transferred. 
‘‘(3) REDIRECTED SOCIAL SECURITY CONTRIBU-
TIONS.—For purposes of paragraph (1)—— 
‘‘(A) IN GENERAL.—The term ‘redirected 
social security contributions’ means, with re-
spect to an individual for a calendar year, the 
sum of— 
‘‘(i) 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 do not exceed the base amount 
for such calendar year; by 
‘‘(II) the applicable base percent-
age for the calendar year; and 
‘‘(ii) the product derived by multi-
plying—