I 
112TH CONGRESS 
1ST SESSION H. R. 2109 
To provide for each American the opportunity to provide for his or her 
retirement through a S.A.F.E. account, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 3, 2011 
Mr. SESSIONS (for himself, Mrs. BLACKBURN, Mr. BURTON of Indiana, Mr. 
TERRY, Mr. SMITH of Texas, Mr. NEUGEBAUER, and Mr. HENSARLING) 
introduced the following bill; which was referred to the Committee on 
Ways and Means, and in addition to the Committee on Oversight and 
Government Reform, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To provide for each American the opportunity to provide 
for his or her retirement through a S.A.F.E. account, 
and for other purposes. 
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 
‘‘Savings Account for Every American Act of 2011’’. 
(b) TABLE OF CONTENTS.—The table of contents is 
as follows: 
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Sec. 1. Short title and table of contents. 
TITLE I—PERSONAL RETIREMENT PROGRAM 
Sec. 101. Definitions. 
Sec. 102. S.A.F.E. account payroll deduction programs. 
Sec. 103. Designation of S.A.F.E. accounts. 
Sec. 104. Self-employed individuals. 
Sec. 105. Elective participation. 
Sec. 106. Penalties. 
Sec. 107. Federal civilian and military personnel. 
TITLE II—TAX-EXEMPT S.A.F.E. ACCOUNTS 
Sec. 201. S.A.F.E. accounts. 
Sec. 202. Effective date. 
TITLE III—CONFORMING AMENDMENTS TO THE SOCIAL 
SECURITY ACT AND THE INTERNAL REVENUE CODE OF 1986 
Sec. 301. Reductions in and exemptions from FICA taxes and SECA taxes with 
respect to eligible individuals. 
Sec. 302. Exclusion of eligible individuals from old-age, survivors, and disability 
insurance coverage. 
Sec. 303. Information provided in social security account statements. 
TITLE I—PERSONAL 
RETIREMENT PROGRAM 
SEC. 101. DEFINITIONS. 
For purposes of this title— 
(1) ACCOUNT
HOLDER.—The term ‘‘account 
holder’’ means, with respect to any S.A.F.E. ac-
count, the individual for whose benefit such account 
is maintained. 
(2) BUSINESS DAY.—The term ‘‘business day’’ 
means any day other than a Saturday, Sunday, or 
legal holiday in the area involved. 
(3) COVERED EMPLOYER.—The term ‘‘covered 
employer’’ means, for any calendar year, a person 
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for whom an eligible individual is engaged in em-
ployment during the year. 
(4) ELIGIBLE INDIVIDUAL.—The term ‘‘eligible 
individual’’ means any individual with respect to 
whom there is in effect an election under section 
105(a). 
(5) EMPLOYMENT.—The term ‘‘employment’’ 
has the meaning provided in section 210 of the So-
cial Security Act. 
(6) PRESCRIBED EMPLOYEE CONTRIBUTION.— 
The term ‘‘prescribed employee contribution’’ means, 
with respect to any eligible individual who is en-
gaged in employment for a covered employer during 
any calendar year, an amount equal to 6.2 percent 
of the wages received by such employee with respect 
to such employment. The Commissioner of Social 
Security shall provide by regulation for exclusion of 
remuneration paid to any employee during any cal-
endar year from the total amount of remuneration 
treated under this paragraph as ‘‘wages’’ paid to 
such employee during such calendar year to the ex-
tent that such total amount exceeds the contribution 
and benefit base for such calendar year under sec-
tion 230 of the Social Security Act. 
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(7) 
PRESCRIBED
SELF-EMPLOYMENT
CON-
TRIBUTION.—The term ‘‘prescribed self-employment 
contribution’’ means, with respect to the self-employ-
ment income of an eligible individual for any cal-
endar year, the excess (if any) of— 
(A) 6.2 percent of the amount of such self- 
employment income for such calendar year, to 
the extent that such self-employment income 
does not exceed, for such calendar year, the 
contribution and benefit base for such calendar 
year under section 230 of the Social Security 
Act, over 
(B) the total of all prescribed employee 
contributions and prescribed employer contribu-
tions payable with respect to such eligible indi-
vidual for such calendar year. 
Effective with the commencement of the 16th cal-
endar year for which the eligible individual’s election 
under section 105 is in effect, ‘‘12.4 percent’’ shall 
be substituted for ‘‘6.2 percent’’ in subparagraph 
(A). 
(8) PRESCRIBED EMPLOYER CONTRIBUTION.— 
The term ‘‘prescribed employer contribution’’ means, 
with respect to any eligible individual who is en-
gaged in employment for a covered employer during 
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any calendar year, an amount equal to 6.2 percent 
of the wages received by such employee with respect 
to such employment, to the extent that such wages 
do not exceed, for such calendar year, the contribu-
tion and benefit base for such calendar year under 
section 230 of the Social Security Act. 
(9) S.A.F.E. ACCOUNT.—The term ‘‘S.A.F.E. 
account’’ has the meaning provided in section 224(c) 
of the Internal Revenue Code of 1986. 
(10) SELF-EMPLOYMENT
INCOME.—The term 
‘‘self-employment income’’ has the meaning provided 
in section 211(b) of the Social Security Act. 
(11) WAGES.—The term ‘‘wages’’ has the 
meaning provided in section 209 of the Social Secu-
rity Act. 
SEC. 102. S.A.F.E. ACCOUNT PAYROLL DEDUCTION PRO-
GRAMS. 
(a) IN GENERAL.—Each person who is a covered em-
ployer for any calendar year shall have in effect through-
out such calendar year a S.A.F.E. account payroll deduc-
tion program for such person’s employees who are eligible 
individuals. 
(b) REQUIREMENTS.—For purposes of this Act, the 
term ‘‘S.A.F.E. account payroll deduction program’’ 
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means a written program maintained by a covered em-
ployer if— 
(1) under such program, the prescribed em-
ployee contribution is deducted from the wages of 
each employee who is an eligible individual and paid 
as a contribution on behalf of the employee to a 
S.A.F.E. account of such employee designated in ac-
cordance with section 103, 
(2) under such program, the covered em-
ployer— 
(A) makes timely payment of the amount 
so deducted as a contribution to the designated 
S.A.F.E. account, and 
(B) effective upon receipt from the eligible 
individual of certification (in accordance with 
regulations which shall be prescribed by the 
Commissioner of Social Security) of the com-
mencement of the 16th calendar year for which 
the eligible employee’s election under section 
105 has been in effect, makes timely payment, 
together with the amount so deducted, of the 
prescribed employer contribution with respect to 
the eligible individual, 
under regulations of the Commissioner of Social Se-
curity applying the same principles relating to the 
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timeliness of payment as are applicable under chap-
ter 62 of the Internal Revenue Code of 1986 with 
respect to taxes under chapter 21 of such Code, and 
(3) the employer receives no compensation for 
the cost of administering such program. 
(c) AMOUNTS OTHERWISE PAYABLE MAY BE ACCU-
MULATED BY EMPLOYER IN CERTAIN CASES.—If, under 
the terms of the governing instruments creating a 
S.A.F.E. account designated under section 103, contribu-
tions below a specified amount will not be accepted, the 
requirements of subsection (b)(2) shall be treated as met 
if amounts deducted from the wages of an employee who 
is an eligible individual, together with prescribed employer 
contributions (if any), are accumulated by the covered em-
ployer and paid to such account otherwise in accordance 
with subsection (b)(2) with reference to the first day on 
which the accumulated amount exceeds such specified 
amount. 
SEC. 103. DESIGNATION OF S.A.F.E. ACCOUNTS. 
(a) IN GENERAL.—Except as provided in subsection 
(b), a S.A.F.E. account to which contributions with re-
spect to any employee who is an eligible individual are re-
quired to be paid under section 102 shall be such an ac-
count designated by such employee to such employer not 
later than 10 business days after the date on which such 
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employee becomes an employee of such employer. Any 
such designation shall be made in such form and manner 
as may be prescribed in regulations of the Commissioner 
of Social Security. 
(b) DESIGNATION IN ABSENCE OF TIMELY DESIGNA-
TION BY EMPLOYEE.—In any case in which no timely des-
ignation of a S.A.F.E. account is made, the covered em-
ployer shall designate such account in accordance with 
regulations of the Commissioner of Social Security. 
(c) SUBSEQUENT SUBSTITUTION OF ACCOUNTS.— 
The Commissioner of Social Security shall provide by reg-
ulation for subsequent designation of a S.A.F.E. account 
by an account holder in lieu of an account previously des-
ignated by such account holder under this section. 
SEC. 104. SELF-EMPLOYED INDIVIDUALS. 
(a) IN GENERAL.—In the case of an eligible indi-
vidual who has self-employment income for any calendar 
year, such individual shall make timely payments to a 
S.A.F.E. account designated by such individual of the pre-
scribed self-employment contribution with respect to such 
individual for such calendar year in accordance with regu-
lations of the Commissioner of Social Security, applying 
the same principles relating to timeliness of payment as 
are applicable under chapter 62 of the Internal Revenue 
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Code of 1986 with respect to taxes under chapter 2 of 
such Code. 
(b) DESIGNATION OF ACCOUNT.—The designation of 
a S.A.F.E. account for payment of prescribed self-employ-
ment contributions shall be made in such form and man-
ner as may be prescribed in regulations of the Commis-
sioner of Social Security. 
(c) PERIODIC PAYMENT.—The Commissioner of So-
cial Security shall provide by regulation for periodic in-
stallment payments during the calendar year of prescribed 
self-employment contributions for each eligible individual, 
taking into account, as appropriate for each period, pre-
scribed employee contributions for such individual. 
SEC. 105. ELECTIVE PARTICIPATION. 
(a) ELECTION.—Any individual who has been as-
signed a social security account number under section 
205(c)(2)(B) of the Social Security Act and has been paid 
wages or has derived self-employment income may, on or 
after January 1, 2012, elect under this section to be an 
eligible individual for purposes of this Act. Any such elec-
tion shall be made by filing with the Commissioner of So-
cial Security, the Secretary of the Treasury, and each per-
son (if any) who is an employer of such individual on the 
date of the filing, in such form and manner as shall be 
prescribed in regulations of the Commissioner (in con-
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sultation with the Secretary of the Treasury), a written 
and signed declaration of such individual’s intention to be 
treated as an eligible individual for purposes of this Act. 
An election under this section shall be effective with re-
spect to wages paid, and self-employment income derived, 
on or after January 1 following the date of the filing of 
the election. 
(b) ELECTION INEFFECTIVE IF ENTITLED TO SO-
CIAL SECURITY BENEFITS.—Any election under this sec-
tion shall not take effect if, as of the effective date of the 
election, the individual is entitled to an old-age insurance 
benefit under section 202(a) of the Social Security Act or 
to a disability insurance benefit under section 223 of such 
Act. 
(c) IRREVOCABILITY SUBJECT TO GRACE PERIOD.— 
(1) IN GENERAL.—Unless revoked in accord-
ance with paragraph (2), an election under this sec-
tion shall be irrevocable. 
(2) FIVE-YEAR GRACE PERIOD.— 
(A) IN GENERAL.—An individual may re-
voke an election under this section by filing 
with the Commissioner of Social Security, the 
Secretary of the Treasury, and each person (if 
any) who is an employer of such individual on 
the date of the filing, in such form and manner 
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