Social Security 2100 Act - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSA) to:
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.
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.
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.
Amends IRC to increase the Social Security tax rate on employees and employers and with respect to self-employment income.
Amends SSA title II to establish an Independent Social Security Investment Oversight Board to:
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.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5306 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5306
To protect our Social Security system and improve benefits for current
and future generations.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Social Security 2100 Act''.
TITLE I--STRENGTHENING BENEFITS
SEC. 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.
SEC. 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.
SEC. 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),''.
SEC. 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.
TITLE II--STRENGTHENING THE TRUST FUND
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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:
``investment of trust funds in common stock
``Sec. 235. (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.''.
SEC. 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:
``independent social security investment oversight board
``Sec. 714. (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).''.
SEC. 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.
<all>
Introduced in House
Introduced in House
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.
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.
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.
Referred to the Subcommittee on Health, Employment, Labor, and Pensions.
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