336 
‘‘(A) reasonable expenses incurred for 
products, services and accommodations needed 
for health care, training and other remedial 
treatment and care of an injured individual; 
‘‘(B) reasonable and appropriate expenses 
for rehabilitation treatment and occupational 
training; 
‘‘(C) 100 percent of the loss of income 
from work that an injured individual would 
have performed if not injured, reduced by any 
income from substitute work actually per-
formed; and 
‘‘(D) reasonable expenses incurred in ob-
taining ordinary and necessary services to re-
place services an injured individual would have 
performed for the benefit of the individual or 
the family of such individual if the individual 
had not been injured. 
‘‘(4) NON-ECONOMIC
DAMAGES.—The term 
‘non-economic damages’ means losses for physical 
and emotional pain, suffering, inconvenience, phys-
ical impairment, mental anguish, disfigurement, loss 
of enjoyment of life, loss of society and companion-
ship, loss of consortium (other than loss of domestic 
service), injury to reputation, and all other non-pe-
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337 
cuniary losses of any kind or nature, to the extent 
permitted under State law. 
‘‘(f) FUNDING.— 
‘‘(1) ONE-TIME INCREASE IN MEDICAID PAY-
MENT.—In the case of a State awarded a grant to 
carry out this section, the total amount of the Fed-
eral payment determined for the State under section 
1913 of the Social Security Act (as amended by sec-
tion 401) for fiscal year 2011 (in addition to the any 
increase applicable for that fiscal year under section 
203(b) but determined without regard to any such 
increase) shall be increased by an amount equal to 
1 percent of the total amount of payments made to 
the State for fiscal year 2010 under section 1903(a) 
of the Social Security Act (42 U.S.C. 1396b(a)) for 
purposes of carrying out a grant awarded under this 
section. Amounts paid to a State pursuant to this 
subsection shall remain available until expended. 
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated for any fis-
cal year such sums as may be necessary for purposes 
of making payments to States pursuant to para-
graph (1).’’. 
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338 
TITLE IV—SOCIAL SECURITY 
REFORM 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘Social Security Per-
sonal Savings Guarantee and Prosperity Act of 2010’’. 
SEC. 402. ESTABLISHMENT OF PERSONAL SOCIAL SECU-
RITY SAVINGS 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. 
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339 
‘‘(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 
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‘‘(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. 
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341 
‘‘(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 par-
ticipating 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, 
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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 
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343 
‘‘(ii) 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 exceed the base amount (taking 
into account the limits imposed by the 
contribution and benefit base under 
section 230); by 
‘‘(II) the applicable supplemental 
percentage for the calendar year. 
‘‘(B) BASE
AMOUNT.—For purposes of 
subparagraph (A)— 
‘‘(i) INITIAL
BASE
AMOUNT.—The 
base amount for calendar year 2012 is 
$10,000. 
‘‘(ii) 
ADJUSTMENTS
TO
BASE 
AMOUNT.—The base amount for any cal-
endar year after 2011 is the product de-
rived by multiplying $10,000 by a frac-
tion— 
‘‘(I) the numerator of which is 
the national average wage index (as 
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344 
defined in section 209(k)) for the first 
of the 2 preceding calendar years; and 
‘‘(II) the denominator of which is 
the national average wage index (as so 
defined) for 2010. 
‘‘(C) APPLICABLE
BASE
PERCENTAGE.— 
For purposes of subparagraph (A), the applica-
ble base percentage for a calendar year is— 
‘‘(i) for calendar years after 2011 and 
before 2022, 2 percent; 
‘‘(ii) for calendar years after 2021 
and before 2032, 4 percent; 
‘‘(iii) for calendar years after 2031 
and before 2042, 6 percent; and 
‘‘(iv) for calendar years after 2041, 8 
percent. 
‘‘(D) APPLICABLE
SUPPLEMENTAL
PER-
CENTAGE.—For purposes of subparagraph (A), 
the applicable supplemental percentage for a 
calendar year is— 
‘‘(i) for calendar years after 2011 and 
before 2022, 1 percent; 
‘‘(ii) for calendar years after 2021 
and before 2032, 2 percent; 
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345 
‘‘(iii) for calendar years after 2031 
and before 2042, 3 percent; and 
‘‘(iv) for calendar years after 2041, 4 
percent. 
‘‘(c) AVAILABILITY.—The sums in the Savings Fund 
are appropriated and shall remain available without fiscal 
year limitation— 
‘‘(1) to invest funds in the Tier I Investment 
Fund of the Savings Fund and the Tier II Invest-
ment Fund of the Savings Fund under sections 255 
and 256, respectively; 
‘‘(2) to transfer into Tier III Investment Op-
tions under section 257; 
‘‘(3) to make distributions in accordance with 
section 258; and 
‘‘(4) to pay the administrative expenses of the 
Board in accordance with subsection (e). 
‘‘(d) LIMITATIONS ON USE OF FUNDS.— 
‘‘(1) IN GENERAL.—Sums in the Savings Fund 
credited to a participating individual’s personal so-
cial security savings account may not be used for, or 
diverted to, purposes other than for the exclusive 
benefit of the participating individual or the partici-
pating individual’s beneficiaries under this part. 
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346 
‘‘(2) ASSIGNMENTS.—Sums in the Savings 
Fund may not be assigned or alienated and are not 
subject to execution, levy, attachment, garnishment, 
or other legal process. 
‘‘(e) PAYMENT OF ADMINISTRATIVE EXPENSES.— 
Administrative expenses incurred to carry out this part 
shall be paid out of net earnings in the Savings Fund in 
conjunction with the allocation of investment earnings and 
losses under section 254(c). 
‘‘(f) LIMITATION.—The sums in the Savings Fund 
shall not be appropriated for any purpose other than the 
purposes specified in this part and may not be used for 
any other purpose. 
‘‘SEC. 253. PARTICIPATION IN PROGRAM. 
‘‘(a) PARTICIPATING INDIVIDUAL.—For purposes of 
this part, the term ‘participating individual’ means any 
individual— 
‘‘(1)(A) who receives wages in any calendar 
year after December 31, 2011, on which there is im-
posed a tax under section 3101(a) of the Internal 
Revenue Code of 1986, or 
‘‘(B) who derives self-employment income for a 
taxable year beginning after December 31, 2011, on 
which there is imposed a tax under section 1401(a) 
of the Internal Revenue Code of 1986, 
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‘‘(2) who is born on or after January 1, 1956, 
and 
‘‘(3) who has filed an election to be treated as 
a participating individual under subsection (b) and 
has not subsequently filed an election to renounce 
such individual’s status as a participating individual 
under subsection (c). 
‘‘(b) ELECTION OF PARTICIPATION.— 
‘‘(1) IN GENERAL.—An individual who has not 
become entitled to old-age insurance benefits under 
section 202(a) may elect, subject to paragraph (2) 
and in such form and manner as shall be prescribed 
in regulations of the Board, to be treated as a ‘par-
ticipating individual’ for purposes of this part. Such 
regulations shall provide for regular, periodic oppor-
tunities for the filing of such an election. The Board 
shall provide for immediate notification to the Com-
missioner of Social Security, the Secretary of the 
Treasury, and the Executive Director of such elec-
tion. 
‘‘(2) DEADLINE
FOR
ELECTION.—An election 
under paragraph (1) may be made by an individual 
not later than the later of— 
‘‘(A) the date on which such individual at-
tains age 25, or 
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‘‘(B) December 31, 2012. 
‘‘(3) EFFECTIVENESS OF ELECTION.—An elec-
tion under this subsection shall be effective with re-
spect to wages earned, and self-employment income 
derived, on the earliest date on which the Board de-
termines is practicable to make such election effec-
tive following the date of the filing of the election. 
‘‘(c) REVOCATION OF ELECTION.— 
‘‘(1) IN GENERAL.—An individual may, in such 
form and manner as shall be prescribed in regula-
tions of the Board, revoke an election made by such 
individual under subsection (b) within 1 year after 
the date of a qualifying event described in paragraph 
(2). Upon completion of the procedures provided for 
under paragraph (3), any such individual who has 
made such an election shall not be treated as a par-
ticipating individual under this part, effective as if 
such individual had never been a participating indi-
vidual. The Board shall provide for immediate notifi-
cation of such election to the Commissioner of Social 
Security, the Secretary of the Treasury, and the Ex-
ecutive Director. 
‘‘(2) QUALIFYING
EVENTS.—For purposes of 
paragraph (1), the term ‘qualifying event’ means, in 
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349 
connection with an individual, any of the following 
events: 
‘‘(A) The death of the individual’s spouse. 
‘‘(B) The entry into marriage by the indi-
vidual. 
‘‘(C) The divorce or legal separation of the 
individual from the individual’s spouse. 
‘‘(D) A dependent child of the individual 
ceasing to be a dependent child of the indi-
vidual under section 202(d)(3). 
‘‘(3) PROCEDURE.—The Board shall prescribe 
by regulation procedures governing the termination 
of an individual’s status as ‘participating individual’ 
pursuant to a revocation under this subsection. Such 
procedures shall include— 
‘‘(A) prompt closing of the individual’s per-
sonal social security savings account established 
under section 254, and 
‘‘(B) prompt transfer to the Federal Old- 
Age and Survivors Insurance Trust Fund as 
general receipts of any amount held in the Tier 
II Investment Fund of the Savings Fund or 
under a Tier III Investment Option pursuant to 
section 256 or 257 and credited to such individ-
ual’s personal social security savings account. 
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350 
‘‘SEC. 254. PERSONAL SOCIAL SECURITY SAVINGS AC-
COUNTS. 
‘‘(a) ESTABLISHMENT OF PUBLICLY ADMINISTERED 
SYSTEM OF PERSONAL SECURITY SAVINGS ACCOUNTS.— 
As soon as practicable after the later of January 1, 2011, 
or the date on which an individual becomes a participating 
individual under this part, the Executive Director shall es-
tablish a personal social security savings account for such 
individual. Such account shall be the means by which 
amounts held in the Tier I Investment Fund and the Tier 
II Investment Fund of the Savings Fund under sections 
255 and 256 and amounts held under Tier III Investment 
Options under section 257 are credited to such individual, 
under procedures which shall be established by the Board 
by regulation. Each account of a participating individual 
shall be identified to such participating individual by 
means of the participating individual’s Social Security ac-
count number. 
‘‘(b) ACCOUNT BALANCE.—The balance in a partici-
pating individual’s account at any time is the sum of— 
‘‘(1) the balance in the Tier I Investment Fund 
of the Savings Fund credited to such participating 
individual prior to transfer of the credited amount to 
the Tier II Investment Fund of the Savings Fund; 
plus 
‘‘(2) the excess of— 
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‘‘(A) all deposits in the Tier II Investment 
Fund of the Savings Fund credited to such par-
ticipating individual’s personal social security 
savings account, subject to such increases and 
reductions as may result from allocations made 
to and reductions made in the account pursuant 
to subsection (c)(1); over 
‘‘(B) amounts paid out of the Tier II In-
vestment Fund in connection with amounts 
credited to such participating individual’s per-
sonal social security savings account; plus 
‘‘(3) the excess of— 
‘‘(A) the deposits in the Tier III Invest-
ment Options credited to such participating in-
dividual’s personal social security savings ac-
count, subject to such increases and reductions 
as may result from amounts credited to, and re-
ductions made in, the account pursuant to sub-
section (c)(2); over 
‘‘(B) amounts paid out of the Tier III In-
vestment Options of such participating indi-
vidual. 
The calculation made under paragraph (3) shall be made 
separately for each Tier III Investment Option of the par-
ticipating individual. The Board shall also hold for the 
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352 
participating individual any benefit credit certificate as-
signed to the participating individual’s personal social se-
curity savings account under section 255. 
‘‘(c) ALLOCATION OF EARNINGS AND LOSSES.—Pur-
suant to regulations which shall be prescribed by the 
Board, the Executive Director shall allocate to each per-
sonal social security savings account an amount equal to 
the net earnings and net losses from each investment of 
sums— 
‘‘(1) in the Tier I Investment Fund and the 
Tier II Investment Fund which are attributable to 
sums credited to such account reduced by an appro-
priate share of the administrative expenses paid out 
of the net earnings, as determined by the Executive 
Director; and 
‘‘(2) in the Tier III Investment Options which 
are attributable to sums credited to such account re-
duced by the administrative expenses paid out of the 
net earnings. 
‘‘SEC. 255. TIER I INVESTMENT FUND. 
‘‘(a) ESTABLISHMENT
OF
TIER
I INVESTMENT 
FUND.— 
‘‘(1) IN GENERAL.—The Savings Fund shall in-
clude a separate fund to be known as the ‘Tier I In-
vestment Fund’. 
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