‘‘(3) In the case of a participating individual who be-
comes entitled to disability insurance benefits under sec-
tion 223, such individual’s primary insurance amount 
shall be determined without regard to paragraph (1). 
‘‘(4) In the case of an individual who becomes entitled 
to benefits under section 202, other than old-age insur-
ance benefits under section 202(a), on the basis of the 
wages and self-employment income of a participating indi-
vidual who dies before such participating individual pur-
chases a personal social security savings annuity under 
section 259, such participating individual’s primary insur-
ance amount shall be determined under this section with-
out regard to paragraph (1).’’. 
SEC. 4. GENERAL FUND TRANSFERS TO THE FEDERAL OLD-
AGE AND SURVIVORS INSURANCE TRUST 
FUND. 
(a) RECAPTURE OF CORPORATE TAX ON ACCOUNT 
YIELDS.—
(1) IN GENERAL.—In the case of fiscal years 
beginning after September 30, 2004, the Secretary 
of the Treasury, in consultation with the Personal 
Social Security Savings Account Board, shall esti-
mate and transfer to the Federal Old-Age and Sur-
vivors Insurance Trust Fund established under sec-
tion 201 of the Social Security Act (42 U.S.C. 401)
within 3 months after the end of each fiscal year an 
amount equal to the recapture amount for such fis-
cal year. For purposes of the preceding sentence, the 
recapture amount for any fiscal year shall be equal 
to the amount of corporate tax receipts under the 
Internal Revenue Code of 1986 deposited in the 
Treasury for that fiscal year which are attributable 
to personal social security savings account invest-
ments under part B of title II of the Social Security 
Act. 
(2) INITIAL ASSUMPTIONS.—In determining the 
recapture amount under subsection (a) for fiscal 
years 2005 and 2006, the Secretary of the Treasury 
shall make the following assumptions concerning the 
total amount of taxable capital in the United States 
represented by the total assets held by personal so-
cial security savings accounts established under part 
B of title II of the Social Security Act: 
(A) 80 percent of such total assets are a 
net addition to national investments. 
(B) Of the amount described in subpara-
graph (A), 90 percent will be invested in the 
United States and subject to taxation under the 
Internal Revenue Code of 1986.
(C) Of the amount described in subpara-
graph (B), 95 percent will be subject to the 
Federal corporate tax. 
(D) The amount described in subpara-
graph (C) is subject to the statutory tax rate of 
35 percent (resulting in an effective corporate 
tax rate of 23.9 percent on the earnings of all 
such total assets). 
(b) RECAPTURE OF GOVERNMENT SAVINGS OVER 
BASELINE.—
(1) IN GENERAL.—In the case of fiscal years 
beginning after September 30, 2004, the Secretary 
of the Treasury, in consultation with the Personal 
Social Security Savings Account Board, shall esti-
mate and transfer to the Federal Old-Age and Sur-
vivors Insurance Trust Fund established under sec-
tion 201 of the Social Security Act (42 U.S.C. 401) 
within 3 months after the end of each fiscal year an 
amount equal to the spending reductions amount for 
such fiscal year. For purposes of the preceding sen-
tence, the spending reductions amount shall be an 
amount equal to—
(A) for any fiscal year in the period begin-
ning with fiscal year 2005 and ending with fis-
cal year 2012, the excess of—
(i) 20 percent of the gross domestic 
product (as determined by the Congres-
sional Budget Office) for the fiscal year for 
which the determination is made; over 
(ii) the product of—
(I) 20 percent of the gross do-
mestic product (as so determined) for 
the fiscal year for which the deter-
mination is made; and 
(II) 0.99, factored a number of 
times equal to the number of fiscal 
years during such period which end 
with or before the fiscal year for 
which the determination is made; and 
(B) for any fiscal year beginning after fis-
cal year 2012 and ending with the termination 
year—
(i) the amount determined under sub-
paragraph (A) for fiscal year 2012; in-
creased by 
(ii) the rate of growth of the gross do-
mestic product (as so determined) over the 
period beginning with fiscal year 2013 and 
ending with the fiscal year for which the 
determination is made.