Social Security 2100 Act

Bill: 113-hr-5306
Sponsor: full_name: Rep. Larson, John B. [D-CT-1]
Introduced: 2014-07-31
Policy area: Social Welfare
Subjects: Accounting and auditing

Employment taxes

Executive agency funding and structure

Financial services and investments

Government trust funds

Income tax exclusion

Income tax rates

Inflation and prices

Securities

Social Security Administration

Social security and elderly assistance

Wages and earnings
Latest action: action_date: 2014-11-17
text: Referred to the Subcommittee on Health, Employment, Labor, and Pensions.

Summaries:
action_date: 2014-07-31
action_desc: Introduced in House
text: <p>Social Security 2100 Act - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSA) to:</p> <ul> <li>increase the primary insurance amount formula factor from 90% to 93% for all eligible beneficiaries, beginning in 2015;</li> <li>revise computation of cost-of-living adjustments (COLAs) to use the Consumer Price Index for Elderly Consumers (CPI-E);</li> <li>increase the special minimum primary insurance amount (25% above the federal poverty line) for lifetime low earners based on years in the workforce.</li> </ul> <p>Amends the Internal Revenue Code (IRC) to increase the gross income threshold for taxation of Social Security benefits from $25,000 to $50,000 for single taxpayers and from $32,000 to $100,000 for married taxpayers filing joint returns, beginning in 2015.</p> <p>Amends the IRC and SSA title II to impose the employment tax on all wage income above $400,000, effective in 2015. Requires incremental increases, up to 14.4% in 2037, in the employment and self-employment taxes.</p> <p>Amends SSA title II to include 2% of an individual's excess average indexed monthly earnings (over $400,000 per annum) in the formula for determining primary insurance amounts.</p> <p>Amends IRC to increase the Social Security tax rate on employees and employers and with respect to self-employment income. </p> <p>Amends SSA title II to establish an Independent Social Security Investment Oversight Board to:</p> <ul> <li>set up a Common Stock Old-Age Investment Fund in the Federal Old-Age and Survivors Insurance Trust Fund and a Common Stock Disability Investment Fund in the Federal Disability Insurance Trust Fund, and</li> <li>prescibe rules for the investment of the Common Stock Investment Funds in common stock.</li> </ul> <p>Requires reallocation of a portion of employment tax revenues from the OASDI Trust Fund to the Federal Disability Insurance Trust Fund for wages paid after 2014.</p>

tv_txt: I 113th CONGRESS 2d Session H. R. 5306 IN THE HOUSE OF REPRESENTATIVES July 31, 2014 Mr. Larson of Connecticut introduced the following bill; which was referred to the Committee on Ways and Means , and in addition to the Committees on Education and the Workforce and the Budget , 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 protect our Social Security system and improve benefits for current and future generations.

1. Short title This Act may be cited as the Social Security 2100 Act . I Strengthening Benefits 101. Across-the-board benefit increase (a) In general Section 215(a)(1)(A)(i) of the Social Security Act ( 42 U.S.C. 415(a)(1)(A)(i) ) is amended by striking 90 percent and inserting 93 percent . (b) Effective date (1) In general The amendment made by subsection (a) shall apply with respect to monthly insurance benefits payable for any month after December 2014. (2) Recomputation of primary insurance amounts Notwithstanding section 215(f) of the Social Security Act, the Commissioner of Social Security shall recompute primary insurance amounts originally computed for months prior to January 2015 to the extent necessary to carry out the amendments made by this section. 102. Computation of cost-of-living increases (a) In general Section 215(i)(1) of the Social Security Act ( 42 U.S.C. 415(i)(1) ) is amended by adding at the end the following new subparagraph: (H) the term Consumer Price Index means the Consumer Price Index for Elderly Consumers (CPI–E, as published by the Bureau of Labor Statistics of the Department of Labor). . (b) Application to pre-1979 law (1) In general Section 215(i)(1) of the Social Security Act as in effect in December 1978, and as applied in certain cases under the provisions of such Act as in effect after December 1978, is amended by adding at the end the following new subparagraph: (D) the term Consumer Price Index means the Consumer Price Index for Elderly Consumers (CPI–E, as published by the Bureau of Labor Statistics of the Department of Labor). . (2) Conforming change Section 215(i)(4) of the Social Security Act ( 42 U.S.C. 415(i)(4) ) is amended by inserting and by section 102 of the Social Security 2100 Act after 1986 . (c) No effect on adjustments under other laws Section 215(i) of the Social Security Act ( 42 U.S.C. 415(i) ) is amended by adding at the end the following: (6) Any provision of law (other than in this title, title VIII, or title XVI) which provides for adjustment of an amount based on a change in benefit amounts resulting from a determination made under this subsection shall be applied and administered without regard to the amendments made by section 102 of the Social Security 2100 Act . . (d) Publication of Consumer Price Index for Elderly Consumers The Bureau of Labor Statistics of the Department of Labor shall prepare and publish the index authorized by section 191 of the Older Americans Amendments Act of 1987 ( 29 U.S.C. 2 note) for each calendar month, beginning with July of the calendar year following the calendar year in which this Act is enacted, and such index shall be known as the Consumer Price Index for Elderly Consumers . (e) Effective date The amendments made by subsection (a) shall apply to determinations made with respect to cost-of-living computation quarters (as defined in section 215(i)(1)(B) of the Social Security Act ( 42 U.S.C. 415(i)(1)(B) )) ending on or after September 30 of the second calendar year following the calendar year in which this Act is enacted. 103. Increase in minimum benefit for lifetime low earners based on years in the workforce (a) In general Section 215(a)(1) of the Social Security Act ( 42 U.S.C. 415(a)(1) ) is amended— (1) by redesignating subparagraph (D) as subparagraph (E); and (2) by inserting after subparagraph (C) the following new subparagraph: (D) (i) Effective with respect to the benefits of individuals who become eligible for old-age insurance benefits or disability insurance benefits (or die before becoming so eligible) after 2014, no primary insurance amount computed under subparagraph (A) may be less than the greater of— (I) the minimum monthly amount computed under subparagraph (C); or (II) in the case of an individual who has more than 10 years of work (as defined in clause (iv)(I)), the alternative minimum amount determined under clause (ii). (ii) (I) The alternative minimum amount determined under this clause is the applicable percentage of 1/12 of the annual dollar amount determined under clause (iii) for the year in which the amount is determined. (II) For purposes of subclause (I), the applicable percentage is the percentage specified in connection with the number of years of work, as set forth in the following table: If the number of years The applicable  of work is: percentage is: 11 6.25 percent 12 12.50 percent 13 18.75 percent 14 25.00 percent 15 31.25 percent 16 37.50 percent 17 43.75 percent 18 50.00 percent 19 56.25 percent 20 62.50 percent 21 68.75 percent 22 75.00 percent 23 81.25 percent 24 87.50 percent 25 93.75 percent 26 100.00 percent 27 106.25 percent 28 112.50 percent 29 118.75 percent 30 or more 125.00 percent. (iii) The annual dollar amount determined under this clause is— (I) for calendar year 2015, the poverty guideline for 2014; and (II) for any calendar year after 2015, the annual dollar amount for 2015 multiplied by the ratio of— (aa) the national average wage index (as defined in section 209(k)(1)) for the second calendar year preceding the calendar year for which the determination is made, to (bb) the national average wage index (as so defined) for 2013. (iv) For purposes of this subparagraph— (I) the term year of work means, with respect to an individual, a year to which 4 quarters of coverage have been credited based on such individual’s wages and self-employment income; and (II) the term poverty guideline for 2014 means the annual poverty guideline for 2014 (as updated annually in the Federal Register by the Department of Health and Human Services under the authority of section 673(2) of the Omnibus Budget Reconciliation Act of 1981) as applicable to a single individual. . (b) Recomputation Notwithstanding section 215(f)(1) of the Social Security Act, the Commissioner of Social Security shall recompute primary insurance amounts originally computed for months prior to November 2014 to the extent necessary to carry out the amendments made by this section. (c) Conforming amendment Section 209(k)(1) of such Act ( 42 U.S.C. 409(k)(1) ) is amended by inserting 215(a)(1)(E), after 215(a)(1)(D), . 104. Increase in threshold amounts and rate for inclusion of social security benefits in income (a) In general Subsection (a) of section 86 of the Internal Revenue Code of 1986 is amended to read as follows: (a) In general Gross income for the taxable year of any taxpayer described in subsection (b) (notwithstanding section 207 of the Social Security Act) includes social security benefits in an amount equal to the lesser of— (1) 85 percent of the social security benefits received during the taxable year, or (2) one-half of the excess described in subsection (b)(1). . (b) Base amount Subsection (c) of section 86 of such Code is amended to read as follows: (c) Base amount For purposes of this section, the term base amount means— (1) except as otherwise provided in this paragraph, $50,000, (2) $100,000 in the case of a joint return, and (3) zero in the case of a taxpayer who— (A) is married as of the close of the taxable year (within the meaning of section 7703) but does not file a joint return for such year, and (B) does not live apart from his spouse at all times during the taxable year. . (c) Hospital Insurance Trust Fund held harmless Section 121(e)(1) of the Social Security Amendments of 1986 ( 42 U.S.C. 401 note) is amended by adding at the end the following new subparagraph: (C) The amounts appropriated to the hospital insurance trust fund by subparagraph (B) shall be determined, and transferred from the general fund, at such times and in such manner so as to replicate, to the extent possible, the appropriations and transfers which would have occurred with respect to such trust fund had subsections (a) and (b) of section 104 of the Social Security 2100 Act not been enacted. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2014. II Strengthening the Trust Fund 201. Determination of wages and self-employment income above contribution and benefit base after 2013 (a) Determination of wages above contribution and benefit base after 2014 (1) Amendments to the Internal Revenue Code (A) In general Paragraph (1) of section 3121(a) of the Internal Revenue Code of 1986 is amended by inserting after such calendar year. the following: The preceding sentence shall apply only to calendar years for which the contribution and benefit base (as so determined) is less than $400,000, and, for such calendar years, only to the extent remuneration paid to such employee by such employer with respect to employment does not exceed $400,000. . (B) Conforming amendment Paragraph (1) of section 3121(a) of the Internal Revenue Code of 1986 is amended by striking Act) to and inserting Act), or in excess of $400,000, to . (2) Amendment to the Social Security Act Section 209(a)(1)(I) of the Social Security Act ( 42 U.S.C. 409(a)(1)(I) ) is amended by inserting before the semicolon at the end the following: except that this subparagraph shall apply only to calendar years for which the contribution and benefit base (as so determined) is less than $400,000, and, for such calendar years, only to the extent remuneration paid to such employee by such employer with respect to employment does not exceed $400,000 . (3) Effective date The amendments made by this subsection shall apply with respect to remuneration paid in calendar years after 2014. (b) Determination of self-Employment income above contribution and benefit base after 2014 (1) Amendments to the Internal Revenue Code (A) In general Paragraph (1) of section 1402(b) of the Internal Revenue Code of 1986 is amended to read as follows: (1) in the case of the tax imposed by section 1401(a), an amount equal to— (A) $400,000, reduced (but not below zero) by (B) the sum of— (i) the part of the net earnings from self-employment (if any) which is not in excess of— (I) the amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective for the calendar year in which such taxable year begins, minus (II) the amount of the wages paid to such individual during such taxable year, plus (ii) the amount of the wages paid to such individual during such taxable year which is in excess of the amount in clause (i)(I); or . (B) Phaseout Subsection (b) of section 1402 of the Internal Revenue Code of 1986 is amended by adding at the end the following: Paragraph (1) shall apply only to taxable years beginning in calendar years for which the contribution and benefit base (as determined under section 230 of the Social Security Act) is less than $400,000. . (2) Amendments to the Social Security Act (A) In general Section 211(b)(1) of the Social Security Act ( 42 U.S.C. 411(b) ) is amended— (i) in subparagraph (I)— (I) by inserting and before 2014 after 1974 ; and (II) by striking or at the end; and (ii) by adding at the end the following: (J) For any taxable year beginning in any calendar year after 2014, an amount equal to— (i) $400,000, reduced (but not below zero) by (ii) the sum of— (I) the part of the net earnings from self-employment (if any) which is not in excess of— (aa) the amount equal to the contribution and benefit base (as determined under section 230) which is effective for the calendar year in which such taxable year begins, minus (bb) the amount of the wages paid to such individual during such taxable year, plus (II) the amount of the wages paid to such individual during such taxable year which is in excess of the amount in subclause (I)(aa); or . (B) Phaseout Section 211(b) of the Social Security Act ( 42 U.S.C. 411(b) ) is amended by adding at the end the following: Paragraph (1) shall apply only to taxable years beginning in calendar years for which the contribution and benefit base (as determined under section 230) is less than $400,000. . (3) Effective date The amendments made by this subsection shall apply to net earnings from self-employment derived, and remuneration paid, in calendar years after 2014. 202. Inclusion of earnings over $400,000 in social security benefit formula (a) Inclusion of earnings over $400,000 in determination of primary insurance amounts Section 215(a)(1)(A) of the Social Security Act ( 42 U.S.C. 415(a)(1)(A) ) is amended— (1) in clause (ii), by striking and at the end; (2) in clause (iii), by inserting and at the end; and (3) by inserting after clause (iii) the following: (iv) 2 percent of the individual’s excess average indexed monthly earnings (as defined in subsection (b)(5)(A)). . (b) Definition of excess average indexed monthly earnings Section 215(b) of the Social Security Act ( 42 U.S.C. 415(b) ) is amended— (1) by striking wages and self-employment income each place such terms appear and inserting basic wages and basic self-employment income , respectively; and (2) by adding at the end the following: (5) (A) An individual's excess average indexed monthly earnings shall be equal to the amount of the individual's average indexed monthly earnings that would be determined under this subsection by substituting excess wages for basic wages and excess self-employment income for basic self-employment income each place such terms appear in this subsection (except in this paragraph). (B) For purposes of this subsection— (i) the term basic wages means that portion of the wages of an individual paid in a year that does not exceed the contribution and benefit base for the year; (ii) the term basic self-employment income means that portion of the self-employment income of an individual credited to a year that does not exceed an amount equal to the contribution and benefit base for the year minus the amount of the wages paid to the individual in the year; (iii) the term excess wages means that portion of the wages of an individual paid in a year after 2013 in excess of the higher of $400,000 or the contribution and benefit base for the year; and (iv) the term excess self-employment income means that portion of the self-employment income of an individual credited to a year after 2014 in excess of the higher of $400,000 or such contribution and benefit base. . (c) Conforming amendment Section 215(e)(1) of the Social Security Act ( 42 U.S.C. 415(e)(1) ) is amended by inserting and before 2015 after 1974 . (d) Effective date The amendments made by this section shall apply with respect to individuals who initially become eligible (within the meaning of section 215(a)(3)(B) of the Social Security Act) for old-age or disability insurance benefits under title II of the Social Security Act, or who die (before becoming eligible for such benefits), in any calendar year after 2014. 203. Increase in Social Security tax rate (a) Tax on Employees The table in subsection (a) of section 3101 of the Internal Revenue Code of 1986 is amended to read as follows: In cases of wages The rate of tax  received during: shall be: 1990 or any calendar year before 2018 6.20 percent 2018 6.25 percent 2019 6.30 percent 2020 6.35 percent 2021 6.40 percent 2022 6.45 percent 2023 6.50 percent 2024 6.55 percent 2025 6.60 percent 2026 6.65 percent 2027 6.70 percent 2028 6.75 percent 2029 6.80 percent 2030 6.85 percent 2031 6.90 percent 2032 6.95 percent 2033 7.00 percent 2034 7.05 percent 2035 7.10 percent 2036 7.15 percent 2037 or thereafter 7.20 percent. . (b) Tax on Employers The table in subsection (a) of section 3111 of the Internal Revenue Code of 1986 is amended to read as follows: In cases of wages The rate of tax  received during: shall be: 1990 or any calendar year before 2018 6.20 percent 2018 6.25 percent 2019 6.30 percent 2020 6.35 percent 2021 6.40 percent 2022 6.45 percent 2023 6.50 percent 2024 6.55 percent 2025 6.60 percent 2026 6.65 percent 2027 6.70 percent 2028 6.75 percent 2029 6.80 percent 2030 6.85 percent 2031 6.90 percent 2032 6.95 percent 2033 7.00 percent 2034 7.05 percent 2035 7.10 percent 2036 7.15 percent 2037 or thereafter 7.20 percent. . (c) Self-Employment Income The table in subsection (a) of section 1401 of the Internal Revenue Code of 1986 is amended to read as follows: In cases of wages The rate of tax  received during: shall be: 1990 or any calendar year before 2018 12.40 percent 2018 12.50 percent 2019 12.60 percent 2020 12.70 percent 2021 12.80 percent 2022 12.90 percent 2023 13.00 percent 2024 13.10 percent 2025 13.20 percent 2026 13.30 percent 2027 13.40 percent 2028 13.50 percent 2029 13.60 percent 2030 13.70 percent 2031 13.80 percent 2032 13.90 percent 2033 14.00 percent 2034 14.10 percent 2035 14.20 percent 2036 14.30 percent 2037 or thereafter 14.40 percent. . (d) Effective date The amendments made by this section shall apply to remuneration received, and taxable years beginning, after December 31, 2014. 204. Investment of the Social Security trust funds (a) In general Section 201(d) of the Social Security Act ( 42 U.S.C. 401(d) ) is amended— (1) by striking It shall be the duty and inserting (1) It shall be the duty ; (2) by striking Such investments may be made only and inserting Except as provided in paragraph (2), such investments may be made only ; and (3) by adding at the end the following: (2) (A) The Independent Social Security Investment Oversight Board shall establish, as provided in section 235(a)— (i) a Common Stock Old-Age Investment Fund in the Federal Old-Age and Survivors Insurance Trust Fund; and (ii) a Common Stock Disability Investment Fund in the Federal Disability Insurance Trust Fund. (B) (i) In any calendar year after 2015 in which the OASDI trust fund ratio (as defined in subsection (l)(3)(B)(iii)) is projected to be below 150 percent in the 75th year after such year, the Managing Trustee shall transfer amounts from the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund into the Common Stock Old-Age Investment Fund or the Common Stock Disability Investment Fund, respectively, in accordance with the policies and requirements set forth in section 714. Amounts so transferred shall be the minimum amounts which would result in a common stock ratio for such year that is 2.5 percentage points greater than the common stock ratio for the previous year, except that the common stock ratio may not exceed 25 percent for any year. (ii) In any calendar year after 2015 in which the OASDI trust fund ratio (as defined in subsection (l)(3)(B)(iii)) is projected to equal or exceed 150 percent in the 75th year after such year, the Managing Trustee shall take appropriate actions to reduce the common stock ratio for such year by the lesser of— (I) the minimum reduction necessary to result in an OASDI trust fund ratio (as so defined) for such year that does not exceed 150 percent in the 75th year after such year; or (II) 2.5 percentage points. (iii) For purposes of this subparagraph, the term common stock ratio means, with respect to a calendar year, the aggregate percentage of the total amounts at the end of such calendar year within each of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund that is maintained in the Common Stock Old-Age Investment Fund or the Common Stock Disability Investment Fund, respectively. . (b) Effective date The amendment made by subsection (a) shall apply with respect to fiscal years beginning on or after October 1, 2015. 205. Rules governing investment of Trust Funds in common stock Title II of the Social Security Act ( 42 U.S.C. 401 et seq. ) is amended by adding at the end the following new section: 235. Investment of Trust Funds in common stock (a) Common stock investment funds (1) Selection of index The Independent Social Security Investment Oversight Board shall select, for purposes of investment of amounts held in a Common Stock Investment Fund, an index which is a commonly recognized index comprised of common stock the aggregate market value of which is a reasonably complete representation of the United States equity markets. (2) Portfolio design Amounts held in a Common Stock Investment Fund shall be invested in a portfolio designed to replicate the performance of the index selected under paragraph (1). The portfolio shall be designed such that, to the extent practicable, the percentage of the balance in such Account that is invested in each stock is the same as the percentage determined by dividing the aggregate market value of all shares of that stock by the aggregate market value of all shares of all stocks included in such index. (b) No voting rights in securities The Independent Social Security Investment Oversight Board and the Managing Trustee of the Trust Funds may not exercise voting rights associated with the ownership of securities by the Trust Funds. (c) Engagement of qualified public accountant (1) In general The Independent Social Security Investment Oversight Board shall annually engage, on behalf of the Trust Funds, an independent qualified public accountant, who shall conduct an examination of all accounts and other books and records maintained in the administration of this section as the public accountant considers necessary to enable the public accountant to make the determination required by paragraph (2). The examination shall be conducted in accordance with generally accepted auditing standards and shall involve such tests of the accounts, books, and records as the public accountant considers necessary. (2) Examination and report The public accountant conducting an examination under paragraph (1) shall determine whether the accounts, books, and records referred to in paragraph (1) have been maintained in conformity with generally accepted accounting principles applied on a basis consistent with the manner in which such principles were applied during the examination conducted under paragraph (1) during each preceding year. The public accountant shall transmit to the Board, the Comptroller General of the United States, and each House of the Congress a report on his examination, including his determination under this paragraph. The Board shall make publicly available, by posting on the Internet and such other means as the Board may determine, each report received under the preceding sentence. (3) Definition For the purposes of this subsection, the term qualified public accountant shall have the same meaning as is provided in section 103(a)(3)(D) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1023(a)(3)(D) ). (d) Fiduciary responsibilities (1) In general Under regulations of the Secretary of Labor, the provisions of sections 8477 and 8478 of title 5, United States Code, shall apply in connection with the amounts maintained in a Common Stock Investment Fund in the same manner and to the same extent as such provisions apply in connection with the Thrift Savings Fund. (2) Investigative authority Any authority available to the Secretary of Labor under section 504 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1134 ) is hereby made available to the Secretary of Labor, and any officer designated by the Secretary of Labor, to determine whether any person has violated, or is about to violate, any provision applicable under paragraph (1). (3) Exculpatory provisions; insurance (A) In general Any provision in an agreement or instrument which purports to relieve a fiduciary from responsibility or liability for any responsibility, obligation, or duty under this section shall be void. (B) Insurance Amounts held in the Trust Funds available for administrative expenses shall be available and may be used at the discretion of the Independent Social Security Investment Oversight Board to purchase insurance to cover potential liability of persons who serve in a fiduciary capacity with respect to amounts maintained in a Common Stock Investment Fund, without regard to whether a policy of insurance permits recourse by the insurer against the fiduciary in the case of a breach of a fiduciary obligation. (e) Definition of Common Stock Investment Fund In this section, the term Common Stock Investment Fund means the Common Stock Old-Age Investment Fund of the Federal Old-Age and Survivors Insurance Trust Fund and the Common Stock Disability Investment Fund of the Federal Disability Insurance Trust Fund. . 206. Establishment of Independent Social Security Investment Oversight Board Title VII of the Social Security Act ( 42 U.S.C. 901 et seq. ) is amended by adding at the end the following: 714. Independent Social Security Investment Oversight Board (a) There is established in the Social Security Administration an Independent Social Security Investment Oversight Board. (b) The Board shall be composed of a Chairman and four additional members. The Chairman and each additional member shall be appointed by the President, by and with the advice and consent of the Senate. (c) Members of the Board shall have substantial experience, training, and expertise in the management of financial investments and service in a fiduciary capacity. (d) (1) A member of the Board shall be appointed for a term of 10 years, except that of the members first appointed— (A) the member appointed as Chairman shall be appointed for a term of 10 years; (B) one member shall be appointed for a term of 8 years; (C) one member shall be appointed for a term of 6 years; (D) one member shall be appointed for a term of 4 years; and (E) one member shall be appointed for a term of 2 years, as designated by the President at the time of appointment. (2) (A) A vacancy on the Board shall be filled in the manner in which the original appointment was made and shall be subject to any conditions which applied with respect to the original appointment. (B) An individual chosen to fill a vacancy shall be appointed for the unexpired term of the member replaced. (C) The term of any member shall not expire before the date on which the member’s successor takes office. (3) An individual appointed as a member of the Board may be removed from office only pursuant to a finding by the President of neglect of duty or malfeasance in office. (e) The member of the Board designated by the President as Chairman shall serve as Chairman for a term of 4 years (or until the expiration of his term as member of the Board, if earlier). A member serving as Chairman may be reappointed as Chairman. (f) The Board shall— (1) establish policies for the investment and management of the Common Stock Old-Age Investment Fund and the Common Stock Disability Investment Fund described in section 201(d)(2), including policies to provide for— (A) prudent investments suitable for accumulating funds for payment of monthly insurance benefits under title II; and (B) low administrative costs; (2) review bids relating to, and hire managers for, each such Fund; (3) annually review the performance of each such Fund; (4) (A) report annually to the House of Representatives and the Senate and to the President regarding the earnings on such investments; and (B) make each such report publicly available by publication in the Federal Register, posting on the Internet, and such other means as the Board may determine; and (5) review and approve the budget of the Board. (g) (1) The Board may— (A) adopt, alter, and use a seal; (B) establish policies with which the Managing Trustee of the Trust Funds is required to comply under section 201(d)(2); and (C) take such other actions as may be necessary to carry out the functions of the Board. (2) The policies of the Board may not require the Managing Trustee of the Trust Funds to invest or to cause to be invested any sums in such Trust Funds in a specific asset or to dispose of or cause to be disposed of any specific asset of such Trust Funds. (h) (1) The Board shall meet— (A) not less than once during each month; and (B) at additional times at the call of the Chairman. (2) (A) The Board shall perform the functions and exercise the powers of the Board on a majority vote of a quorum of the Board. (B) A vacancy on the Board shall not impair the authority of a quorum of the Board to perform the functions and exercise the powers of the Board. (3) Three members of the Board shall constitute a quorum for the transaction of business. (4) (A) Each member of the Board who is not an officer or employee of the Federal Government shall be compensated at the daily rate of basic pay payable for level IV of the Executive Schedule for each day during which such member is engaged in performing a function of the Board. (B) A member of the Board shall be paid travel, per diem, and other necessary expenses under subchapter I of chapter 57 of title 5, United States Code, while traveling away from such member’s home or regular place of business in the performance of the duties of the Board. (5) The accrued annual leave of any officer or employee of the Federal Government who is a member of the Board shall not be charged for any time used in performing services for the Board. (i) The members of the Board shall discharge their responsibilities solely in the interest of the Trust Funds in connection with investments of amounts in funds under section 201(d)(2). (j) The Board shall prepare and submit to the President, and, at the same time, to the appropriate committees of Congress, an annual budget of the expenses and other items relating to the Board which shall be included as a separate item in the budget required to be transmitted to the Congress under section 1105 of title 31, United States Code. (k) The Board may submit to the President, and, at the same time, shall submit to each House of Congress, any legislative recommendations of the Board relating to any of its functions under this section. (l) There are hereby made available from each of the Trust Funds such sums as are necessary to carry out the provisions of this section and to administer the provisions of section 235, in accordance with certifications which shall be made from time to time by the Board to the Secretary of the Treasury. (m) In this section, the term Trust Funds has the meaning given such term in section 201(c). . 207. Reallocation of payroll tax revenue from the Old-Age and Survivors Insurance Trust Fund to the Federal Disability Insurance Trust Fund (1) Wages Section 201(b)(1) of the Social Security Act ( 42 U.S.C. 401(b)(1) ) is amended by striking and (R) 1.80 per centum of the wages (as so defined) paid after December 31, 1999, and so reported and inserting (R) 1.80 per centum of the wages (as so defined) paid after December 31, 1999, and before January 1, 2015, and so reported, (S) 2.8 per centum of the wages (as so defined) paid after December 31, 2014, and before January 1, 2016, and so reported, (T) 2.4 per centum of the wages (as so defined) paid after December 31, 2015, and before January 1, 2017, and so reported, (U) 2.2 per centum of the wages (as so defined) paid after December 31, 2016, and before January 1, 2020, and so reported, (V) 2.0 per centum of the wages (as so defined) paid after December 31, 2019, and before January 1, 2026, and so reported, and (W) 1.8 per centum of the wages (as so defined) paid after December 31, 2025, and so reported . (2) Self-employment income Section 201(b)(2) of such Act ( 42 U.S.C. 401(b)(2) ) is amended by striking and (R) 1.80 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1999 and inserting (R) 1.80 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1999, and before January 1, 2015, (S) 2.8 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 2014, and before January 1, 2016, (T) 2.4 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 2015, and before January 1, 2017, (U) 2.2 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 2016, and before January 1, 2020, (V) 2.0 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 2019, and before January 1, 2026, and (W) 1.8 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 2025 . (3) Effective date The amendments made by this section shall apply with respect to wages paid after December 31, 2014, and self-employment income for taxable years beginning after such date.