Individual Social Security Investment Program Act of 2004

Bill: 108-hr-4895
Sponsor: Rep. Johnson, Sam [R-TX-3]
Introduced: 2004-07-22 in the House
Policy area: Social Welfare
Subjects: Accounting
Administrative fees
Advice and consent of the Senate
Annuities
Appropriations
Auditing
Commerce
Congress
Congressional reporting requirements
Consumer price indexes
Cost of living adjustments
Economics and Public Finance
Estates (Law)
Executive reorganization
Families
Federal officials
Finance and Financial Sector
Fines (Penalties)
Government Operations and Politics
Government paperwork
Government publicity
Government trust funds
Income tax
Investments
Labor and Employment
Law
Licenses
Mutual funds
Old age, survivors and disability insurance
Presidential appointments
Saving and investment
Securities
Social security finance
Social security taxes
Survivors' benefits
Tax exclusion
Tax exemption
Tax-exempt securities
Taxation
Trusts and trustees
Valuation
Wages

Summary:
action_date: 2004-07-22
text: 
Individual Social Security Investment Program Act of 2004 - Amends title II (Old Age, Survivors, and Disability Insurance) (OASDI) of the Social Security Act to add a new part B (Individual Social Security Investment Program) to change Social Security into a system of individual accounts where workers born on or after January 1, 1950, who have elected to participate in the new part B program have ownership of and control over the investment of their retirement funds in various investment vehicles: (1) Tier I Investment Fund; (2) Tier II Investment Fund; and (3) Tier III Investment Accounts.
 
Allows participating workers choosing the individual account option to have 100 percent of their redirected Social Security contribution for the calendar year (6.2 percent of the sum of the total wages paid to, and self-employment income derived by, the participant) deposited into the Tier I Investment Fund. Provides for transfer of any amount held in the Tier I Investment Fund into the Tier II Investment Fund, and for an individual's first election of a Tier III investment account once the total balance of the Tier II account exceeds the minimum deposit balance of $10,000.
 
Directs the Executive Director to establish and maintain a part B totalization account for each participant.
 
Provides that workers choosing the individual account under the Tier II option with a variety of investment options, with the initial default option set at 60 percent stocks, and 40 percent bonds. 
 
Provides for retirement distributions, including purchase of annuities. 
 
Provides that workers who choose the individual account option shall receive a recognition bond, redeemable upon reaching retirement age, based on the accrued value of their lifetime to date benefits.
 
Establishes in the executive branch of the Government an Individual Unvestment Board to administer the program established under this Act.
 
Amends the Internal Revenue Code to exempt from income taxation any fund created, account established, or annuity under part B of title II of the Social Security Act, unless subject to taxes on unrelated business income of charitible organizations. Excludes from the gross income of a distributee or payee: (1) any fund or account distribution or any annuity payment; or (2) the value of a recognition bond issued to a participant, or the proceeds from its sale or redemption. 
 
Amends SSA title II to provide that, except with respect to determination of disability insurance benefits, a participant shall not be credited with wages or self-employment income under part B of SSA title II.
 

 
Provides for the maintance of adequate balances in the Social Security trust funds.


Legislative actions:
action_date: 2004-08-03
text: Referred to the Subcommittee on Social Security.
action_date: 2004-07-22
text: Referred to the House Committee on Ways and Means.
action_date: 2004-07-22
text: Introduced in House
action_date: 2004-07-22
text: Introduced in House