[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4839 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4839

 To amend title II of the Social Security Act and the Internal Revenue 
   Code of 1986 to provide prospectively for personalized retirement 
security through personal retirement accounts to allow for more control 
      by individuals over their Social Security retirement income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 12, 2000

Mr. Sanford (for himself, Mr. Barr of Georgia, Mr. Barton of Texas, Mr. 
 Burton of Indiana, Mr. Bryant, Mr. Campbell, Mrs. Chenoweth-Hage, Mr. 
Coburn, Mr. Cox, Mr. DeMint, Mr. Doolittle, Mr. Duncan, Mr. Ganske, Mr. 
 Graham, Mr. Herger, Mr. Hoekstra, Mr. Hunter, Mr. Hyde, Mr. Jones of 
 North Carolina, Mr. Kingston, Mr. Largent, Mr. McInnis, Mr. McIntosh, 
   Mr. Metcalf, Mrs. Myrick, Mr. Paul, Mr. Pickering, Mr. Pitts, Mr. 
  Riley, Mr. Salmon, Mr. Sessions, Mr. Scarborough, Mr. Schaffer, Mr. 
 Shadegg, Mr. Shays, Mr. Smith of New Jersey, Mr. Spence, Mr. Sununu, 
  Mr. Terry, and Mr. Toomey) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend title II of the Social Security Act and the Internal Revenue 
   Code of 1986 to provide prospectively for personalized retirement 
security through personal retirement accounts to allow for more control 
      by individuals over their Social Security retirement income.

    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 ``Personal Lockbox Act of 2000''.

SEC. 2. PERSONAL RETIREMENT ACCOUNT PROGRAM.

    (a) In General.--Title II of the Social Security Act (42 U.S.C. 401 
et seq.) is amended--
            (1) by inserting after the heading for title II the 
        following:

                    ``Part A--Insurance Benefits'';

        and
            (2) by adding after section 233 (42 U.S.C. 433) the 
        following new part:

             ``Part B--Personal Retirement Account Program

                    ``Subpart 1--General Provisions

                             ``definitions

    ``Sec. 251. For purposes of this part--
            ``(1) Covered employer.--The term `covered employer' means, 
        for any calendar year, any person on whom an excise tax is 
        imposed under section 3111 of the Internal Revenue Code of 1986 
        with respect to having an individual in his employ who was born 
        on or after January 1, 1945, and to whom wages are paid by such 
        person during such calendar year.
            ``(2) Covered individual.--The term `covered individual' 
        means, for any calendar year, any individual--
                    ``(A) who was born on or after January 1, 1945, and
                    ``(B)(i) with respect to whose employment by a 
                covered employer during such calendar year there is 
                imposed an excise tax under section 3111 of the 
                Internal Revenue Code of 1986, or
                    ``(ii) on whose self-employment income, for the 
                taxable year beginning with or during such calendar 
                year, there is imposed a tax under section 1401(a) of 
                the Internal Revenue Code of 1986.
            ``(3) Employment.--The term `employment' has the meaning 
        provided in section 210.
            ``(4) Personal retirement account.--The term `personal 
        retirement account' means a trust meeting the requirements of 
        section 531 of the Internal Revenue Code of 1986.
            ``(5) Personal retirement account holder.--The term 
        `account holder' means, with respect to any personal retirement 
        account, the individual for whose benefit such account is 
        maintained.
            ``(6) Self-employment income.--The term `self-employment 
        income' has the meaning provided in section 211(b).
            ``(7) Wages.--The term `wages' has the meaning provided in 
        section 209.

             ``designation of personal retirement accounts

    ``Sec. 252. (a) Designation of Personal Retirement Accounts.--In 
the case of any individual who is a covered individual for a calendar 
year after 2000 for whom a personal retirement account is not otherwise 
designated under this part, a personal retirement account shall be 
designated for such individual in accordance with this section to the 
extent necessary to receive deposits made with respect to the 
individual under section 253. Under regulations prescribed pursuant to 
this section, any such individual may make such designation, in writing 
filed with the Commissioner of Social Security, the Securities and 
Exchange Commission, and the Secretary of the Treasury, in such form 
and manner as may be prescribed in such regulations. The individual may 
designate another personal retirement account in lieu of an account 
previously designated, in accordance with such regulations.
    ``(b) Designation by Commissioner in Absence of Timely Designation 
by Individual.--The initial designation by an individual of a personal 
retirement account must be made within such period as shall be 
prescribed in regulations under this section. In any case in which 
there is no timely designation of a personal retirement account with 
respect to such an individual, the Commissioner of Social Security 
shall make the designation of a personal retirement account under 
subsection (a) on behalf of such individual, in accordance with 
regulations prescribed under to this section. For the purposes of 
designating such accounts, the Commissioner shall make arrangements 
with certified institutions which shall be selected by the Securities 
and Exchange Commission so as to serve as trustees for such accounts in 
localities throughout the United States.
    ``(c) Regulations.--The regulations under this section shall be 
prescribed by the Commissioner of Social Security, in consultation with 
the Securities and Exchange Commission and the Secretary of the 
Treasury.

                        ``federal contributions

    ``Sec. 253. (a) In General.--Not later than 18 months after the end 
of each calendar quarter in any calendar year after 2000 for which an 
individual is a covered individual, the Secretary of the Treasury shall 
deposit into such individual's personal retirement account, from 
amounts in the Federal Old-Age and Survivors Insurance Trust Fund not 
otherwise required for immediate withdrawal, an amount equal to the 
product derived by multiplying--
            ``(1) the excess in the receipts of such Trust Fund for 
        such calendar quarter over the expenditures of such Trust Fund 
        for such calendar quarter, by
            ``(2) the allocation percentage for such individual for 
        such calendar year.
    ``(b) Allocation Percentage.--For purposes of subsection (a), the 
allocation percentage for an individual for a calendar year is the 
ratio, expressed as a percentage, of--
            ``(1) the total amount of the taxes paid under sections 
        3101(a) and 3111(a) of the Internal Revenue Code of 1986 with 
        respect to such individual in such calendar year and the taxes 
        paid under section 1401(a) of such Code with respect to such 
        individual in such calendar year, to
            ``(2) the total amount of the taxes paid under such 
        sections 3101(a), 3111(a), and 1401(a) in such calendar year 
        with respect to all individuals who are covered individuals for 
        such calendar year.
    ``(c) Electronic Payment.--Deposits made pursuant to subsection (a) 
shall, to the maximum extent practicable, be made by electronic 
payment.

                  ``Subpart 2--Certified Institutions

 ``certification of institutions by securities and exchange commission

    ``Sec 261. (a) In General.--For purposes of meeting the 
requirements of section 531 of the Internal Revenue Code of 1986 
(relating to trusteeship of personal retirement accounts), any 
institution that is engaged, in a fiduciary capacity, in the business 
of maintaining accounts for individuals for purposes of investment may 
apply to the Securities and Exchange Commission (in such form and 
manner as shall be provided by the Commission by regulation) for 
certification under this subpart.
    ``(b) Review Requirements.--In reviewing any application for 
certification under this subpart and determining whether to approve the 
application for certification, the Commission shall consider the 
following factors:
            ``(1) The financial history and condition of the 
        institution.
            ``(2) The adequacy of the institution's capital structure.
            ``(3) The future earnings prospects of the institution.
            ``(4) The general character and fitness of the management 
        of the institution.
            ``(5) The convenience and needs of individuals who are 
        account holders with respect to personal retirement accounts 
        for which the institution is to serve as trustee.
            ``(6) Whether the institution's corporate powers are 
        consistent with the purposes of this part.
    ``(c) Notice of Denial of Application for Certification.--If the 
Commission votes to deny any application for certification by any 
institution, the Commission shall promptly notify the institution of 
the denial of such application, giving specific reasons in writing for 
the Commission's determination with reference to the factors described 
in subsection (b).
    ``(d) Nondelegation Requirement.--The authority of the Commission 
to make any determination to deny any application under this section 
may not be delegated by the Commission.

                          ``access to records

    ``Sec. 262. (a) In General.--The Securities and Exchange Commission 
may from time to time require any certified institution to file such 
reports as the Commission may deem advisable for purposes of this 
subpart.
    ``(b) Reports by Certified Institutions.--
            ``(1) In general.--Each such report shall contain a 
        declaration by the president, by a vice president, by the 
        cashier or the treasurer, or by any other officer designated by 
        the board of directors or trustees of the reporting certified 
        institution to make such declaration, that the report is true 
        and correct to the best of his knowledge and belief. The 
        correctness of such report shall be attested by the signatures 
        of at least two directors or trustees of the reporting 
        certified institution other than the officer making such 
        declaration, with a declaration that the report has been 
        examined by them and to be the best of their knowledge and 
        belief is true and correct. At the time of making such reports 
        each certified institution shall furnish to the Commission a 
        copy thereof containing such signed declaration and 
        attestations. Nothing in this paragraph shall be construed to 
        preclude any Federal or State agency or instrumentality from 
        requiring a certified institution under its jurisdiction to 
        make additional reports at any time.
            ``(2) Information to be provided.--In the reports required 
        to be made by paragraph (1), each certified institution shall 
        report the total amount of the liability of the institution for 
        balances maintained in personal retirement accounts for which 
        such institution serves as trustee.
            ``(3) Data collections.--In addition to or in connection 
        with any other report required under this subsection, the 
        Commission shall take such action as may be necessary to ensure 
        that--
                    ``(A) each certified institution maintains; and
                    ``(B) the Commission receives on a regular basis 
                from such institution,
        information on the total amount of all liability of the 
        institution for balances maintained in personal retirement 
        accounts for which such institution serves as trustee. In 
        prescribing reporting and other requirements for the collection 
        of actual and accurate information pursuant to this paragraph, 
        the Commission shall minimize the regulatory burden imposed 
        upon certified institutions while taking into account the 
        benefit of the information to the Commission in carrying out 
        its functions under this subpart.

                     ``revocation of certification

    ``Sec. 263. (a) Voluntary Revocation.--Any institution may revoke 
such institution's status as a certified institution if such 
institution provides written notice to the Securities and Exchange 
Commission of the institution's intent to revoke such status not less 
than 90 days before the effective date of such revocation.
    ``(b) Involuntary Revocation.--
            ``(1) Notice to primary regulator.--
                    ``(A) In general.--If the Commission determines 
                that--
                            ``(i) a certified institution or the 
                        directors or trustees of a certified 
                        institution have engaged or are engaging in 
                        unsafe or unsound practices in conducting the 
                        business of the institution,
                            ``(ii) a certified institution is in an 
                        unsafe or unsound condition to continue 
                        operations as a certified institution, or
                            ``(iii) a certified institution or the 
                        directors or trustees of the institution have 
                        violated any applicable law, regulation, order, 
                        condition imposed in writing by the Commission 
                        in connection with the approval of any 
                        application or other request by the 
                        institution, or written agreement entered into 
                        between the institution and the Commission,
                and the Commission determines that any unsafe or 
                unsound practice or condition or any violation 
                specified in such notice requires the revocation of the 
                certified status of the certified institution, the 
                Commission shall take the actions required under 
                subparagraph (B).
                    ``(B) Required actions.--If the Commission makes 
                the determination under subparagraph (A) with respect 
                to a certified institution, the Commission shall--
                            ``(i) serve written notice to the certified 
                        institution of the Commission's intention to 
                        revoke the certified status of the institution;
                            ``(ii) provide the certified institution 
                        with a statement of the charges on the basis of 
                        which the determination to revoke such 
                        institution's certified status was made; and
                            ``(iii) notify the certified institution of 
                        the date (not less than 30 days after notice 
                        under this paragraph) and place for a hearing 
                        before the Commission (or any person designated 
                        by the Commission) with respect to the 
                        revocation of the institution's certified 
                        status.
            ``(2) Hearing; revocation.--If, on the basis of the 
        evidence presented at a hearing before the Commission (or any 
        person designated by the Commission for such purpose), in which 
        all issues shall be determined on the record pursuant to 
        section 554 of title 5, United States Code, and the written 
        findings of the Commission (or such person) with respect to 
        such evidence (which shall be conclusive), the Commission finds 
        that any unsafe or unsound practice or condition or any 
        violation specified in the notice to a certified institution 
        under paragraph (1) has been established, the Commission may 
        issue an order revoking the certified status of such 
        institution effective as of a date subsequent to such finding.
            ``(3) Appearance; consent to revocation.--Unless the 
        institution appears at the hearing by a duly authorized 
        representative, it shall be deemed to have consented to the 
        revocation of its status as a certified institution and 
        revocation of such status thereupon may be ordered.
            ``(4) Publication of notice of revocation.--The Commission 
        may publish notice of such revocation and the institution shall 
        give notice of such revocation to the account holder of each 
        personal retirement account for which the institution serves as 
        trustee at his last address of record on the books of the 
        institution, in such manner and at such time as the Commission 
        may find to be necessary and may order for the protection of 
        account holders.
            ``(5) Temporary continuance of certification as of 
        revocation.--After the Commission has determined under the 
        provisions of this subsection that the certified status of any 
        institution is to be revoked, the certification of the 
        institution shall continue for a period of at least 6 months or 
        up to 2 years, within the discretion of the Commission. The 
        institution shall not advertise or hold itself out as being a 
        certified institution unless in the same connection it shall 
        also state with equal prominence that such certification is 
        temporarily in force pending the termination of a limited 
        continuance certification after revocation thereof under this 
        subsection. Such institution shall, in all other respects, be 
        subject to the duties and obligations of a certified 
        institution for the period referred to in the first sentence of 
        this paragraph from the date of such revocation, and the 
        Commission shall have the same powers and rights with respect 
        to such institution as in the case of a certified institution.
            ``(6) Temporary suspension of certification.--
                    ``(A) In general.--If the Commission initiates a 
                revocation proceeding under paragraph (1), and the 
                Commission, after consultation with any appropriate 
                regulatory agency with jurisdiction over the 
                institution, finds that the institution has no tangible 
                capital under the capital guidelines or regulations of 
                regulatory agency, the Commission may issue a temporary 
                order suspending certification of the institution.
                    ``(B) Effective period of temporary order.--Any 
                order issued under subparagraph (A) shall become 
                effective not earlier than 10 days from the date of 
                service upon the institution and, unless set aside, 
                limited, or suspended by a court in proceedings 
                authorized under this paragraph, such temporary order 
                shall remain effective and enforceable until an order 
                of the Commission under paragraph (2) becomes final or 
                until the Commission dismisses the proceedings under 
                paragraph (2).
                    ``(C) Judicial review.--Before the close of the 10-
                day period beginning on the date any temporary order 
                has been served upon the institution under subparagraph 
                (A), the institution may apply to the United States 
                District Court for the District of Columbia, or the 
                United States district court for the judicial district 
                in which the home office of the institution is located, 
                for an injunction setting aside, limiting, or 
                suspending the enforcement, operation, or effectiveness 
                of such order, and such court shall have jurisdiction 
                to issue such injunction.
                    ``(D) Publication of order.--The institution shall 
                give notice of such order to the account holder of each 
                personal retirement account for which the institution 
                serves as trustee in such manner and at such times as 
                the Commission may find to be necessary and may order 
                for the protection of account holders.
                    ``(E) Notice by commission.--If the Commission 
                determines that the institution has not substantially 
                complied with the notice to contributors required by 
                the Commission, the Commission may provide such notice 
                in such manner as the Commission may find to be 
                necessary and appropriate.
            ``(7) Final decisions to revoke certification.--Any 
        decision by the Commission to--
                    ``(A) issue a temporary order revoking 
                certification; or
                    ``(B) issue a final order revoking certification;
        shall be made by the Commission and may not be delegated.
            ``(8) Judicial review.--Any party to any proceeding under 
        this subsection to which an institution is a party may obtain a 
        review of any order served pursuant to this subsection by the 
        filing in the court of appeals of the United States for the 
        circuit in which the home office of the institution is located, 
        or in the United States Court of Appeals for the District of 
        Columbia Circuit, within 30 days after the date of service of 
        such order, a written petition praying that the order of the 
        Commission be modified, terminated, or set aside. A copy of 
        such petition shall be forthwith transmitted by the clerk of 
        the court to the Commission, and thereupon the Commission shall 
        file in the court the record in the proceeding, as provided in 
        section 2112 of title 28, United States Code. Upon the filing 
        of such petition, such court shall have jurisdiction, which 
        upon the filing of the record shall be exclusive, to affirm, 
        modify, terminate, or set aside, in whole or in part, the order 
        of the Commission. Review of such proceedings shall be had as 
        provided in chapter 7 of title 5, United States Code. The 
        judgment and decree of the court shall be final, except that 
        the judgment and decree shall be subject to review by the 
        Supreme Court upon certiorari, as provided in section 1254 of 
        title 28, United States Code. The commencement of proceedings 
        for judicial review under this paragraph shall not, unless 
        specifically ordered by the court, operate as a stay of any 
        order issued by the Commission.

         ``institution of closing proceedings by the commission

    ``Sec. 264. (a) In General.--The Securities and Exchange Commission 
shall as soon as practicable institute proceedings under this section 
to close a personal retirement account whenever the Commission 
determines that--
            ``(1) the certified status of the institution serving as 
        trustee of the account ceases to be in effect, or
            ``(2) the trustee of the account is unable to make full 
        distributions of the balance in the account when due.
The Commission may prescribe a simplified procedure to follow in 
closing personal retirement accounts as long as that procedure includes 
substantial safeguards for the rights of the account holder. 
Notwithstanding any other provision of this part, the Commission is 
authorized to pool assets of closed personal retirement accounts for 
purposes of administration, investment, payment of liabilities of all 
such accounts, and such other purposes as it determines to be 
appropriate in the administration of this part.
    ``(b) Initial Appointment of Alternative Trustee.--
            ``(1) In general.--Whenever the Commission makes a 
        determination under subsection (a) with respect to a personal 
        retirement account, it may, upon notice to the institution 
        serving as trustee of the account, apply to the appropriate 
        United States district court for the appointment of an 
        alternative trustee to administer the account pending the 
        issuance of a decree under subsection (c) ordering the closing 
        of the account. If within 3 business days after the filing of 
        an application under this subsection, or such other period as 
        the court may order, the institution consents to the 
        appointment of an alternative trustee, or fails to show why an 
        alternative trustee should not be appointed, the court may 
        grant the application and appoint an alternative trustee to 
        administer the account in accordance with the terms governing 
        the account until the Commission determines that the account 
        should be closed or that closing is unnecessary. The Commission 
        may request that it be appointed as alternative trustee of the 
        account in any case.
            ``(2) Standard for court appointment.--Notwithstanding any 
        other provision of this part, upon the petition of a certified 
        institution or the Commission, the appropriate United States 
        district court may appoint an alternative trustee in accordance 
        with the provisions of this section if the interests of the 
        account holder with respect to the personal retirement account 
        is maintained would be better served by the appointment of the 
        alternative trustee.
            ``(3) Appointment by agreement between parties.--The 
        Commission and the institution serving as trustee of the 
        account may agree to the appointment of an alternative trustee 
        without proceeding in accordance with the requirements of 
        paragraphs (1) and (2).
    ``(c) Termination Proceedings.--
            ``(1) In general.--If the Commission is required under 
        subsection (a) to commence proceedings under this section with 
        respect to a personal retirement account or, after issuing a 
        notice under this section to the certified institution serving 
        as trustee of the account, has determined that the account 
        should be closed, the Commission may, upon notice to the 
        institution, apply to the appropriate United States district 
        court for a decree adjudicating that the account must be closed 
        in order to protect the interests of the account holder with 
        respect to the account or to avoid any unreasonable 
        deterioration of the financial condition of the account. If the 
        alternative trustee appointed under subsection (b) disagrees 
        with the determination of the Commission under the preceding 
        sentence, he may intervene in the proceeding relating to the 
        application for the decree, or make application for such decree 
        himself. Upon granting a decree for which the Commission or 
        alternative trustee has applied under this subsection, the 
        court shall authorize the alternative trustee (or appoint an 
        alternative trustee if one has not been appointed under such 
        subsection and authorize him) to assume trusteeship of the 
        personal retirement account, and provide for its liquidation, 
        in accordance with the provisions of this section, and a 
        transfer of its assets to a successor personal retirement 
        account, in accordance with paragraph (2).
            ``(2) Transfer to successor account.--In any case in which 
        a personal retirement account is closed under this section, the 
        Commission shall provide by regulation for procedures under 
        which selection for the account holder of an appropriate 
        successor personal retirement account is facilitated and a 
        trustee-to-trustee transfer of the balance in the closed 
        account to the successor account is made. Whenever an 
        alternative trustee appointed under this section is exercising 
        trusteeship authority over a personal retirement account with 
        discretion as to the date upon which transfer of the assets 
        from the account to a successor account is to be performed, the 
        alternative trustee shall notify the Commission at least 10 
        days before the date on which he proposes to perform such 
        transfer. The original trustee of the closed account shall be 
        liable to the trustee of the successor account for the costs of 
        the transfer.
    ``(d) Trusteeship Without Closing.--If the Commission and the 
institution agree that trusteeship over the personal retirement account 
should be assumed by an alternative trustee appointed under this 
section and agree to the appointment of an alternative trustee without 
proceeding in accordance with the requirements of subsection (c), the 
alternative trustee shall have the power described in subsection (e)(1) 
of this section and, in addition to any other duties imposed on the 
alternative trustee under law or by agreement between the Commission 
and the institution, the alternative trustee is subject to the duties 
described in subsection (e)(3).
    ``(e) Powers and Duties of Alternative Trustee.--
            ``(1) In general.--An alternative trustee appointed under 
        subsection (b) shall have the power--
                    ``(A) to do any act authorized by documents 
                governing the personal retirement account or this part 
                to be done by the institution as trustee of the 
                account;
                    ``(B) to require the transfer of all (or any part) 
                of the assets and records of the account to himself as 
                trustee;
                    ``(C) to invest any assets of the account which he 
                holds in accordance with the documents governing the 
                account, regulations of the Securities and Exchange 
                Commission, and applicable rules of law;
                    ``(D) to limit payment of assets in the account as 
                appropriate or to continue payment of some or all of 
                the assets in the account which were being paid prior 
                to his appointment;
                    ``(E) to do such other acts as he deems necessary 
                to continue operation of the account without increasing 
                risk of loss to the account holder, if such acts may be 
                done under the documents governing the account; and
                    ``(F) to require the institution to furnish any 
                information with respect to the account which the 
                alternative trustee may reasonably need in order to 
                administer the account.
            ``(2) Time limitation on alternative trusteeship where 
        closing does not ensue.--If the court to which application is 
        made under subsection (c) dismisses the application with 
        prejudice, or if the Commission fails to apply for a decree 
        under subsection (c) within 30 days after the date on which the 
        alternative trustee is appointed under subsection (b), the 
        alternative trustee shall transfer all assets and records of 
        the account held by him to the institution which had been 
        serving as trustee of the account within 3 business days after 
        such dismissal or the expiration of such 30-day period, and 
        shall not be liable to the institution or any other person for 
        his acts as alternative trustee except for willful misconduct, 
        or for conduct in violation of any other provision of this 
        part. The 30-day period referred to in this paragraph may be 
        extended as provided by agreement between the institution and 
        the Commission or by court order obtained by the Commission.
            ``(3) Additional powers upon closing.--If the court to 
        which an application is made under subsection (c) issues the 
        decree requested in such application, in addition to the powers 
        described in paragraph (1), the alternative trustee shall have 
        the power--
                    ``(A) to collect for the account any amounts due 
                the account;
                    ``(B) to commence, prosecute, or defend on behalf 
                of the institution or the account any suit or 
                proceeding involving the account;
                    ``(C) to issue, publish, or file such notices, 
                statements, and reports as may be required by the 
                Commission or any order of the court;
                    ``(D) to liquidate the assets of the account and 
                perform the transfer of such assets to a successor 
                personal retirement account as provided in subsection 
                (c)(2);
                    ``(E) to recover payments inappropriately made from 
                the account; and
                    ``(F) to do such other acts as may be necessary to 
                comply with this part or any order of the court and to 
                protect the interests of the account holder of the 
                closed account.
            ``(4) Notice of proceedings.--As soon as practicable after 
        his appointment, the alternative trustee shall give notice to 
        interested parties of the institution of proceedings under this 
        section to determine whether the account should be closed or to 
        close the account, whichever is applicable. For purposes of 
        this paragraph, the term `interested party' means--
                    ``(A) the institution,
                    ``(B) the account holder with respect to the 
                account was maintained, including the beneficiary of 
                the account holder who is deceased,
                    ``(C) each person who may be liable for payments to 
                the account.
            ``(5) Additional duties.--Except to the extent inconsistent 
        with the provisions of this part, or as may be otherwise 
        ordered by the court, an alternative trustee appointed under 
        this section shall be subject to the same duties as those of a 
        trustee under section 704 of title 11, United States Code, and 
        shall be, with respect to the account, a fiduciary within the 
        meaning of paragraph (21) of section 3 of the Employee 
        Retirement Income Security Act of 1974 and under section 
        4975(e) of the Internal Revenue Code of 1986 (except to the 
        extent that the provisions of this part are inconsistent with 
        the requirements applicable under part 4 of subtitle B of title 
        I of such Act and of such section 4975).
    ``(f) Coordination With Bankruptcy or Other Insolvency 
Proceedings.--An application by the Commission under this section may 
be filed notwithstanding the pendency in the same or any other court of 
any bankruptcy, mortgage foreclosure, or equity receivership 
proceeding, or any proceeding to reorganize, conserve, or liquidate the 
personal retirement account or the institution, or its assets, or any 
proceeding to enforce a lien against assets of the account or the 
institution.
    ``(g) Court Jurisdiction.--Upon the filing of an application for 
the appointment of an alternative trustee or the issuance of a decree 
under this section, the court to which an application is made shall 
have exclusive jurisdiction of the account involved and its assets 
wherever located with the powers, to the extent consistent with the 
purposes of this section, of a court of the United States having 
jurisdiction over cases under chapter 11 of title 11 of the United 
States Code. Pending an adjudication under subsection (c), such court 
shall stay, and upon appointment by it of an alternative trustee, as 
provided in this section, such court shall continue the stay of, any 
pending mortgage foreclosure, equity receivership, or other proceeding 
to reorganize, conserve, or liquidate the account or its assets and any 
other suit against any receiver, conservator, or trustee of the account 
or the institution, or its assets. Pending such adjudication and upon 
the appointment by it of such alternative trustee, the court may stay 
any proceeding to enforce a lien against property of the account or the 
institution or any other suit against the account or the institution.
    ``(h) Venue and Process.--An action under this section may be 
brought in the judicial district where the institution serving as 
trustee of the personal retirement account is located or does business 
or where any asset of the account or the institution is situated. A 
district court in which such action is brought may issue process with 
respect to such action in any other judicial district.
    ``(i) Compensation and Personnel for Alternative Trustees.--
            ``(1) Compensation.--The amount of compensation paid to 
        each alternative trustee appointed under the provisions of this 
        section shall require the prior approval of the Commission, 
        and, in the case of an alternative trustee appointed by a 
        court, the consent of that court.
            ``(2) Appointment and retention of personnel.--Alternative 
        trustees appointed under this section shall appoint, retain, 
        and compensate accountants, actuaries, and other professional 
        service personnel in accordance with regulations prescribed by 
the Commission.

      ``Subpart 3--Investment Standards, Reporting and Disclosure 
                   Requirements, and Fiduciary Duties

                         ``investment standards

    ``Sec. 271. (a) Required Forms of Investment.--Under the terms 
governing a personal retirement account, amounts held in the account 
shall be invested, at the option of the account holder, in any of not 
fewer than 3 forms of investment, consisting of--
            ``(1) a broad-based portfolio of common stock,
            ``(2) a portfolio consisting of United States Treasury 
        bills issued under chapter 31 of title 31, United States Code, 
        savings bonds or similar obligations issued under such chapter 
        which are indexed to inflation, or any combination of the 
        foregoing, and
            ``(3) a broad-based portfolio of private sector 
        obligations.
    ``(b) Required Choice of Portfolios.--Under the terms governing a 
personal retirement account, the account holder shall be provided with 
not fewer than 5 and not more than 15 portfolio options, assembled so 
as to provide the account holder, in combination, at least the options 
required under subsection (a). Each such portfolio shall be approved by 
the Securities and Exchange Commission under this section.
    ``(c) Default Portfolio Selections.--Among the approved portfolio 
options required under subsection (b), one option shall be the default 
option, as so designated by the certified institution serving as 
trustee of the account. The certified institution may designate 2 or 
more different default options for 2 or more groups of account holders, 
respectively, categorized by age. Any such default option shall apply 
unless an alternative selection is made by the account holder under 
subsection (b). Application of any such default option in the case of 
any account holder in the absence of an alternative selection by the 
account holder shall be deemed to comply with applicable fiduciary 
standards.
    ``(d) Approval of Portfolios.--A portfolio offered for a personal 
retirement account may be approved by the Commission only if--
            ``(1) to the extent that the portfolio provides an 
        investment form described in paragraph (1) or (3) of subsection 
        (a), the portfolio replicates the assets of a broad-based index 
        of equities or obligations meeting requirements which shall be 
        prescribed in regulations of the Commission,
            ``(2) the portfolio is managed exclusively by the 
        investment manager so as to minimize risk on the part of the 
        individual investor,
            ``(3) the portfolio is constructed so as not to present an 
        unreasonable risk of loss inconsistent with saving for 
        retirement, and
            ``(4) any charge for administrative expenses in connection 
        with the account (including any fee charged in connection with 
        management of the portfolio) is expressed in terms of a flat 
        fee for a fixed period of time, except that additional charges 
        may be required, in accordance with regulations of the 
        Commission, on a reasonable basis and at reasonable margins, as 
        may be necessary to allow for--
                    ``(A) reasonable payment of appropriate management 
                fees to investment managers, and
                    ``(B) costs relating to accounting for voluntary 
                contributions to the account,
        if such additional charges are set forth separately and clearly 
        identified as such.
    ``(e) Special Rules.--
            ``(1) Limits on asset reallocations.--The Commission shall 
        establish by regulation reasonable limits on the frequency of 
        changes in allocations of assets in personal retirement 
        accounts to investments permitted under this section.
            ``(2) Investment of accounts with de minimis balances.--In 
        the case of a personal retirement account with a balance of 
        less than $500, the certified institution serving as trustee of 
        such account may provide for investment of such balance solely 
        in accordance with policies established by such institution. 
        The Commission shall prescribe regulations which shall set 
        forth standards which such policies must meet and shall provide 
        for adequate disclosure of such policies to the account holder.

                ``reporting and disclosure requirements

    ``Sec. 272. (a) In General.--In the case of a personal retirement 
account which does not form part of an individual account plan covered 
under part 1 of subtitle B of title I of the Employee Retirement Income 
Security Act of 1974, rules similar to the rules of such part 1 
applicable to individual account plans covered under such part 1 shall 
apply with respect to such account and the terms of any arrangement 
under which such account is maintained, to the extent that the 
application of such rules to personal retirement accounts is determined 
by the Securities and Exchange Commission by regulation to be 
appropriate. Compliance with the requirements of this subsection may be 
by electronic means in the case of personal retirement account holders 
having reasonable access thereto, if such electronic means meets 
requirements which shall be prescribed in regulations of the Commission 
and receipt of information by the account holder by electronic means is 
elected by the account holder in accordance with such regulations.
    ``(b) General Requirements.--In applying under subsection (a) the 
rules of part 1 of subtitle B of title I of the Employee Retirement 
Income Security Act of 1974 in the case of a personal retirement 
account described in subsection (a), references in such part to the 
Secretary of Labor shall be deemed to be references to the Securities 
and Exchange Commission, references in such part to a participant or 
beneficiary in connection with an individual account plan covered under 
such part shall be deemed to be references to the account holder with 
respect to the personal retirement account, and references in such part 
to the plan administrator or plan sponsor in connection with an 
individual account plan covered under such part shall be deemed to be 
references to the trustee of the personal retirement account.
    ``(c) Coordination of Reporting Requirements.--The Securities and 
Exchange Commission and the Secretary of Labor shall jointly issue 
regulations so as to ensure that requirements of part 1 of subtitle B 
of title I of the Employee Retirement Income Security Act of 1974 
applicable to any trustee that is a certified institution and the 
requirements of this section are mutually consistent and to minimize 
administrative expense. Separate inclusion of information relating to a 
personal retirement account maintained by a certified institution in an 
annual report filed by such institution pursuant to section 103 of the 
Employee Retirement Income Security Act of 1974 shall be treated as 
meeting the annual reporting requirement under this subsection relating 
to such personal retirement account. The Secretary of Labor and the 
Securities and Exchange Commission shall provide for prompt 
transmission to the Commission of a copy of any such annual report 
filed by a certified institution with such Secretary relating to the 
personal retirement account.
    ``(d) Specific Trustee Requirements.--The requirements of this 
section relating to the trustee of a personal retirement account under 
this section shall not be treated as met unless the trustee--
            ``(1) submits to the Securities and Exchange Commission 
        periodic evaluations of the investment options available to 
        personal retirement account holders in accordance with 
        regulations which shall be prescribed by the Commission and 
        makes such evaluations reasonably available to the personal 
        retirement account holders in accordance with such regulations, 
        and
            ``(2) the trustee provides to the personal retirement 
        account holder--
                    ``(A) in connection with the designation of the 
                account under section 252 and at least semi-annually 
                thereafter, in language understandable by the typical 
                account holder, information describing the investment 
                options available to the account holder which shall be 
                specified in regulations of the Securities and Exchange 
                Commission and which shall be sufficient to enable a 
                reasonably educated selection of portfolio options 
                offered by the trustee,
                    ``(B) on an annual basis, a disclosure of all fees 
                and other charges imposed by the trustee with respect 
                to the personal retirement account,
                    ``(C) on a quarterly basis, an accounting of all 
                activity of the personal retirement account during the 
                preceding quarter, and
                    ``(D) on an annual basis, an accounting of all 
                activity of the personal retirement account during the 
                preceding year.

                           ``fiduciary duties

    ``Sec. 273. (a) In General.--In the case of a personal retirement 
account which does not form part of an individual account plan covered 
under part 4 of subtitle B of title I of the Employee Retirement Income 
Security Act of 1974, rules similar to the rules of such part 4 
applicable to individual account plans covered under such part 4 shall 
apply with respect to a personal retirement account and the terms of 
any arrangement under which such account is maintained.
    ``(b) General Requirements.--In applying under subsection (a) the 
rules of part 4 of subtitle B of title I of the Employee Retirement 
Income Security Act of 1974 in the case of a personal retirement 
account, references in such part to the Secretary of Labor shall be 
deemed to be references to the Securities and Exchange Commission, 
references in such part to a participants or beneficiary in connection 
with an individual account plan covered under such part shall be deemed 
to be references to the account holder with respect to the personal 
retirement account, and references in such part to the plan 
administrator or plan sponsor in connection with an individual account 
plan covered under such part shall be deemed to be references to the 
trustee of the personal retirement account.
    ``(c) Limitation on Liability.--Any account holder who issues an 
instruction to the trustee of the account directing an investment of 
funds held in the account shall sign an acknowledgement prescribed by 
the Securities and Exchange Commission which states that the account 
holder understands that an investment of any amount in the account is 
made at the account holder's risk, that the account holder is not 
protected by the Government or by the trustee against any loss on such 
investment, and that a return on such investment is not guaranteed by 
the Government or by the trustee. Notwithstanding the preceding 
provisions of this section and any other provision of Federal or State 
law, the trustee of a personal retirement account shall not be liable 
for losses suffered in connection with any investment of assets held in 
the account unless it is shown by clear and convincing evidence that 
the trustee did not act in the manner in which a reasonable trustee 
would act under the circumstances then prevailing in evaluating the 
risk and reward properties of the investment option involved.

                        ``Subpart 4--Enforcement

                           ``cause of action

    ``Sec. 281. The account holder with respect to a personal 
retirement account who is adversely affected by an act or practice of 
any party (other than the Securities and Exchange Commission, the 
Social Security Administration, the Department of the Treasury, or any 
officer or employee of any of the foregoing) in violation of any 
provision of this part, may bring an action--
            ``(1) to enjoin such act or practice, or
            ``(2) to obtain other appropriate equitable relief (A) to 
        redress such violation or (B) to enforce such provision.

                        ``jurisdiction and venue

    ``Sec. 282. Civil actions under this subpart may be brought in the 
district courts of the United States in the district where the personal 
retirement account is administered, where the violation took place, or 
where a defendant resides or may be found, and process may be served in 
any district where a defendant resides or may be found. The district 
courts of the United State shall have jurisdiction, without regard to 
the amount in controversy or the citizenship of the parties, to grant 
the relief provided for in section 281 in any action.

       ``right of securities and exchange commission to intervene

    ``Sec. 283. A copy of the complaint or notice of appeal in any 
action under this subpart shall be served upon the Securities and 
Exchange Commission by certified mail. The Commission shall each have 
the right to intervene in any action.

                     ``awards of costs and expenses

    ``Sec. 284. In any action brought under this subpart, the court in 
its discretion may award all or a portion of the costs and expenses 
incurred in connection with such action, including reasonable 
attorney's fees, to any party who prevails or substantially prevails in 
such action.

                        ``limitation on actions

    ``Sec. 285. (a) In General.--Except as provided in subsection (c), 
an action under this subpart may not be brought after the later of--
            ``(1) 6 years after the date on which the cause of action 
        arose, or
            ``(2) 3 years after the applicable date specified in 
        subsection (b).
    ``(b) Applicable Date.--The applicable date specified in this 
subsection is the earliest date on which the plaintiff acquired or 
should have acquired actual knowledge of the existence of such cause of 
action.
    ``(c) Cases of Fraud or Concealment.--In the case of fraud or 
concealment, the period described in subsection (a)(2) shall be 
extended to 6 years after the applicable date specified in subsection 
(b).

      ``penalty for failure to timely provide required information

    ``Sec. 286. The Securities and Exchange Commission may assess a 
penalty, payable to it, against any person who fails to provide any 
notice or other material information required under this part or any 
regulations prescribed under this part within the applicable time limit 
specified therein. Such penalty shall not exceed $1,000 for each day 
for which such failure continues.

            ``actions by securities and exchange commission

    ``Sec. 287. If any person is assessed under this subpart and fails 
to pay the assessment when due, or any person otherwise fails to meet 
any requirement of this part, the Securities and Exchange Commission 
may bring a civil action in any district court of the United States 
within the jurisdiction of which such person's assets are located or in 
which such person resides or is found for the recovery of the amount of 
the assessment or for appropriate equitable relief to redress the 
violation or enforce the provisions of this part, and process may be 
served in any other district. The district courts of the United States 
shall have jurisdiction over actions brought under this section by the 
Commission without regard to the amount in controversy.

   ``criminal penalty for fraud or intentional misrepresentation in 
                   connection with investment options

    ``Sec. 288. Any person who makes, or causes to be made, a statement 
or representation of a material fact for use in selecting an investment 
option under section 271 that the person knows or should know is false 
or misleading or knows or should know omits a material fact or makes 
such a statement with knowing disregard for the truth shall upon 
conviction be fined not more than $500,000 or imprisoned for not more 
than 5 years, or both.''.
    (b) Implementation.--The Securities and Exchange Commission, in 
consultation with the Commissioner of Social Security and the Secretary 
of the Treasury, shall establish an expedited procedure to ensure 
timely implementation of the amendments made by this section. The 
Commission shall submit to each House of the Congress report on the 
status of such implementation not later than March 1, 2001. All 
measures necessary to prepare for full implementation of such 
amendments shall be completed by the Commission, the Commissioner, and 
the Secretary not later than July 1, 2001.

SEC. 3. PERSONAL RETIREMENT ACCOUNTS.

    (a) In General.--Subchapter F of chapter 1 of the Internal Revenue 
Code of 1986 (relating to exempt organizations) is amended by adding at 
the end the following new part:

                ``PART IX--PERSONAL RETIREMENT ACCOUNTS

                              ``Sec. 531. Personal Retirement Accounts.

``SEC. 531. PERSONAL RETIREMENT ACCOUNTS.

    ``(a) General Rule.--A personal retirement account shall be exempt 
from taxation under this subtitle. Notwithstanding the preceding 
sentence, the personal retirement account shall be subject to the taxes 
imposed by section 511 (relating to imposition of tax on unrelated 
business income of charitable organizations).
    ``(b) Personal Retirement Account Defined.--For purposes of this 
section--
            ``(1) In general.--The term `personal retirement account' 
        means a trust which is designated under section 252 of the 
        Social Security Act as a personal retirement account and which 
        is created or organized in the United States for the exclusive 
        benefit of an individual, or the beneficiaries of such 
        individual, but only if the written governing instrument 
        creating the trust meets the following requirements:
                    ``(A) The contribution requirements of subsection 
                (c) are met.
                    ``(B) The distribution requirements of subsection 
                (d) are met.
                    ``(C) The trustee requirements of subsection (f) 
                are met.
                    ``(D) The investment requirements of subpart 3 of 
                part B of title II of the Social Security Act are met.
                    ``(E) The interest of an individual in the balance 
                in his account is nonforfeitable.
            ``(2) Aggregation of accounts.--For purposes of determining 
        whether the requirements of paragraph (1) are met in a taxable 
        year, a predecessor personal retirement account and a successor 
        personal retirement account of an account holder shall be 
        treated as 1 account.
    ``(c) Contribution Requirements.--
            ``(1) In general.--The requirements of this subsection are 
        met if, except in the case of a rollover contribution described 
        in paragraph (2) or subsection (e)(4), no contribution will be 
        accepted unless it is in cash, and contributions will not be 
        accepted for the taxable year on behalf of any individual in 
        excess of the sum of--
                    ``(A) the Federal contribution under section 253 of 
                the Social Security Act,
                    ``(B) the entitlement payment for early 
                contributions under section 54, and
                    ``(C) $10,000.
            ``(2) Rollover contributions from eligible retirement 
        plans.--
                    ``(A) In general.--A rollover contribution is 
                described in this paragraph if such contribution is--
                            ``(i) an eligible rollover distribution out 
                        of a qualified trust and excluded from gross 
                        income under section 402(c), 403(a)(4), or 
                        403(b)(8), determined, for purposes of this 
                        paragraph, by treating the personal retirement 
                        account as a qualified trust, employee annuity, 
                        or annuity contract, as the case may be, or
                            ``(ii) an eligible rollover within the 
                        meaning of section 408(d)(3)) out of an 
                        individual retirement account or individual 
                        retirement annuity, determined, for purposes of 
                        this paragraph, by treating the contribution to 
                        the personal retirement account as a payment 
                        into an individual retirement account or 
                        individual retirement annuity.
                    ``(B) Inclusion in gross income for rollover 
                contributions, spread over 4-year taxable period.--For 
                purposes of any rollover contribution described in 
                subparagraph (A), rules similar to the rules of section 
                408A(d)(3) shall apply, except that the date in 
                subparagraph (A)(iii) thereof shall be disregarded. The 
                preceding sentence shall not apply to a rollover 
                contribution from a Roth IRA.
                    ``(C) No rollover from current defined contribution 
                plan.--For purposes of subparagraph (A)(i), amounts may 
                not be rolled over to a personal retirement account 
                from any defined contribution plan which is maintained 
                by the employer of the employee who is the account 
                holder of the personal retirement account on the date 
                such rollover is made.
    ``(d) Distribution Requirements.--
            ``(1) In general.--The distribution requirements of this 
        paragraph are met if--
                    ``(A)(i) no payment or distribution from the 
                personal retirement account from amounts attributable 
                to Federal contributions may be made from the personal 
                retirement account before the date the account holder 
                attains age 62, and
                    ``(ii) on and after the date the account holder 
                attains age 62, no payment or distribution from the 
                personal retirement account from amounts attributable 
                to Federal contributions may be made in a taxable year 
                if, immediately after the distribution, the amount 
                remaining in the account that is attributable to 
                Federal contributions is less than the minimum annuity 
                amount, and
                    ``(B) no payment or distribution from the personal 
                retirement account from amounts attributable to 
                voluntary contributions may be made from the personal 
                retirement account before the date the account holder 
                attains age 59\1/2\.
            ``(2) Exceptions.--The requirements of paragraph (1) shall 
        not be treated as not met solely by reason of--
                    ``(A) any trustee-to-trustee transfer from a 
                personal retirement account to a successor personal 
                retirement account,
                    ``(B) any payment or distribution used to purchase 
                a minimum annuity or a survivor annuity that meets the 
                requirements of paragraph (3)(B)(ii),
                    ``(C) any payment or distribution from amounts 
                attributable to voluntary contributions by reason of 
                the individual's being disabled (within the meaning of 
                section 72(m)(7)),
                    ``(D) any payment or distribution made to a 
                beneficiary (or to the estate of the employee) on or 
                after the death of the account holder,
                    ``(E) any payment or distribution which is a return 
                of contributions described in subsection (e)(5),
                    ``(F) any payment or distribution incident to 
                divorce (within the meaning of subsection (e)(6)),
                    ``(G) any payment or distribution to which 
                subsection (e)(7) applies,
                    ``(H) any payment or distribution to which 
                subsection (e)(8) applies,
                    ``(I) any payment or distribution for 
                administrative expenses charged by the trustee of the 
                personal retirement account meeting the applicable 
                requirements of section 271(d)(4) of the Social 
                Security Act, and
                    ``(J) any payment or distribution which fails to 
                meet the requirements of paragraph (1) with respect to 
                which the Secretary makes the good faith determination 
                described in subsection (e)(10).
            ``(3) Minimum annuity amount; minimum annuity.--For 
        purposes of this subsection--
                    ``(A) Minimum annuity amount.--
                            ``(i) In general.--The term `minimum 
                        annuity amount' means, as of any date, the 
                        amount determined by the trustee (under 
                        regulations issued by the Secretary) to be 
                        necessary to purchase on such date an immediate 
                        annuity which is a minimum annuity.
                            ``(ii) Reduction to account for old-age 
                        insurance benefits.--In the case of a personal 
                        retirement account holder who is entitled to 
                        old-age insurance benefits under section 202 of 
                        the Social Security Act, the minimum annuity 
                        amount determined under clause (i) shall be 
                        reduced by the actuarial present value, as of 
                        the date referred to in clause (iii), of future 
                        old-age insurance benefits payable to such 
                        individual under such section (determined by 
                        using reasonable assumptions which shall be 
                        prescribed by the Commission).
                            ``(iii) Immediate annuity.--For purposes of 
                        clause (i), the term `immediate annuity' means 
                        an annuity--
                                    ``(I) which is purchased with a 
                                single premium or annuity 
                                consideration,
                                    ``(II) the annuity starting date 
                                (as defined in section 72(c)(4)) of 
                                which commences no later than 1 year 
                                from the date of the purchase of the 
                                annuity, and
                                    ``(III) which provides for a series 
                                of substantially equal periodic 
                                payments (to be made not less 
                                frequently than annually) during the 
                                annuity period, subject to adjustment 
                                under subparagraph (D).
                    ``(B) Minimum annuity.--
                            ``(i) In general.--The term `minimum 
                        annuity' means an amount determined under 
                        regulations issued by the Commissioner of 
                        Social Security. Such amount shall be stated on 
                        a monthly basis and shall assume an annuity 
                        making payments over the life (or life 
                        expectancy) of the account holder.
                            ``(ii) Joint and survivor annuity and 
                        preretirement survivor annuity requirements.--
                        An annuity shall not be treated as a minimum 
                        annuity within the meaning of clause (i) unless 
                        the requirements of section 401(a)(11) 
                        applicable to plans are met with respect to 
                        such annuity, except that, for purposes of this 
                        clause, the minimum required survivor annuity 
                        shall be an amount such that the monthly 
                        equivalent thereof is equal to the excess of--
                                    ``(I) the widow's or widower's 
                                insurance benefit under section 202 of 
                                the Social Security Act to which the 
                                surviving spouse would have been 
                                eligible upon the personal retirement 
                                account holder's death without the 
                                application of section 215(a)(8) of 
                                such Act, over
                                    ``(II) the amount of such widow's 
                                or widower's insurance benefit.
                    ``(C) Life expectancy tables.--In determining life 
                expectancy for purposes of subparagraphs (A) and (B), 
                the trustee of a personal retirement account shall not 
                be treated as failing to meet the requirements of this 
                paragraph if the trustee follows life expectancy tables 
                prescribed by the Commissioner of Social Security for 
                purposes of this paragraph.
    ``(e) Tax Treatment of Distributions.--
            ``(1) In General.--Except as otherwise provided in this 
        subsection--
                    ``(A) Amount attributable to federal 
                contributions.--In the case of the portion of any 
                payment or distribution out of a personal retirement 
                account that is the amount attributable to Federal 
                contributions--
                            ``(i) \1/2\ of such portion shall be 
                        treated as a social security benefit under 
                        section 86, and
                            ``(ii) \1/2\ of such portion shall not be 
                        includible in gross income.
                    ``(B) Amount attributable to voluntary 
                contributions.--The portion of any payment or 
                distribution out of a personal retirement account that 
                is the amount attributable to voluntary contributions 
                shall not be includible in gross income.
            ``(2) Early withdrawal of contributions.--
                    ``(A) In general.--In the case of an amount paid or 
                distributed out of a personal retirement account to a 
                personal retirement account holder who--
                            ``(i) in the case of amounts attributable 
                        to Federal contributions, has not attained age 
                        62, and
                            ``(ii) in the case of amounts attributable 
                        to voluntary contributions, has not attained 
                        age 59\1/2\,
                the tax of such personal retirement account holder 
                under this chapter for the taxable year in which such 
                amount is received shall be increased by an amount 
                equal to the applicable percentage of the portion of 
                such amount which is includible in gross income.
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the term `applicable percentage' 
                means--
                            ``(i) 100 percent in the case of amounts 
                        attributable to Federal contributions, and
                            ``(ii) 10 percent in the case of amounts 
                        attributable to voluntary contributions.
                    ``(C) Special rule.--For purposes of this 
                paragraph, the amount includible in gross income shall 
                be determined under section 72.
            ``(3) Excess distributions.--
                    ``(A) In general.--In the case of excess 
                distributions from a personal retirement account to a 
                personal retirement account holder, the tax of such 
                personal retirement account holder under this chapter 
                for the taxable year in which such amount is received 
                shall be increased by an amount equal to 10 percent of 
                the portion of such amount which is includible in gross 
                income.
                    ``(B) Excess distributions defined.--For purposes 
                of subparagraph (A), the term `excess distribution' 
                means a distribution from a personal retirement account 
                that is prohibited by subsection (d)(1)(A)(ii).
                    ``(C) Applicable rules.--Rules similar to the rules 
                of paragraphs (2) and (3) of section 4980A(c) (as in 
                effect before the date of the enactment of the Taxpayer 
                Relief Act of 1997) shall apply for purposes of 
                subparagraph (A).
            ``(4) Rollover contribution to successor personal 
        retirement account.--
                    ``(A) In general.--Paragraph (1) does not apply to 
                any amount paid or distributed out of a personal 
                retirement account of an account holder to another 
                personal retirement account of such account holder if 
                such transfer meets the requirements of subparagraph 
                (B).
                    ``(B) Requirements.--A transfer meets the 
                requirements of this subparagraph if--
                            ``(i) such transfer is a direct trustee-to-
                        trustee transfer,
                            ``(ii) the entire amount in the account 
                        from which the distribution is made is so 
                        transferred,
                            ``(iii) during the 12-month period ending 
                        with the month preceding the month in which 
                        such transfer occurred, not more than 2 such 
                        transfers were made, and
                            ``(iv) during the 3-year period ending with 
                        the month preceding the month in which such 
                        transfer occurred, not more than 4 such 
                        transfers were made.
                    ``(C) Involuntary transfer.--A transfer of assets 
                as a result of the replacement of a trustee or closing 
                an account under subpart II of part B of title II of 
                the Social Security Act shall not be taken into account 
                for purposes of clauses (iii) and (iv) of subparagraph 
                (B).
            ``(5) Contributions returned before due date of return.--
        Paragraph (1) does not apply to the distribution of any 
        contribution paid during a taxable year to a personal 
        retirement account if--
                    ``(A) such distribution is received on or before 
                the day prescribed by law (including extensions of 
                time) for filing such individual's return for such 
                taxable year, and
                    ``(B) such distribution is accompanied by the 
                amount of net income attributable to such contribution.
        In the case of such a distribution, for purposes of section 61, 
        any net income described in subparagraph (B) shall be deemed to 
        have been earned and receivable in the taxable year in which 
        such contribution is made.
            ``(6) Transfer of account incident to divorce.--For 
        purposes of this section, rules similar to the rules of section 
        408(d)(6) (relating to transfer of account incident to divorce) 
        shall apply.
            ``(7) Qualified first-time homebuyer distribution.--The 
        additional tax imposed by paragraph (3) shall not apply to a 
        distribution from amounts attributable to voluntary 
        contributions which is a qualified first-time homebuyer 
        distribution (as defined in section 72(t)(8)).
            ``(8) Treatment after death of account holder.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                distributions made on account of the death of the 
                account holder. For purposes of this paragraph, rules 
                similar to the rules of section 401(a)(9) shall apply 
                to the personal retirement account upon the death of 
                the account holder.
                    ``(B) Account holder who dies before attaining age 
                62.--
                            ``(i) Use of amounts to pay benefits.--In 
                        the case of the death of an account holder who 
                        has not attained age 62, if any beneficiary of 
                        the account holder is either--
                                    ``(I) a spouse or former spouse of 
                                the account holder who has not attained 
                                age 62 as of the date of such death, or
                                    ``(II) a child of the account 
                                holder who meets the requirements of 
                                section 202(d) of the Social Security 
                                Act, but for the filing of an 
                                application for child's insurance 
                                benefits,
                        the amounts in the account attributable to 
                        Federal contributions shall be apportioned in 
                        accordance with clause (ii) and transferred to 
                        the personal retirement account of each such 
                        beneficiary and shall be payable as a monthly 
                        annuity in accordance with the entitlement of 
                        such beneficiary to benefits under section 202 
                        of the Social Security Act.
                            ``(ii) Determination of amounts.--
                                    ``(I) In general.--The amount 
                                apportioned to a beneficiary under 
                                clause (i) shall be the amount equal to 
                                the present value of the benefits to 
                                which each beneficiary specified in 
                                clause (i) is entitled under section 
                                202 of the Social Security Act, as 
                                determined by the Commissioner of 
                                Social Security.
                                    ``(II) Proportional allocation.--If 
                                amounts attributable to Federal 
                                contributions is less than the amount 
                                required to yield each monthly annuity 
                                described in clause (ii), the 
                                Commissioner shall allocate such 
                                amounts among all beneficiaries 
                                described in clause (ii) on a 
                                proportional basis in accordance with 
                                regulations of the Commissioner.
                            ``(iii) Interim personal retirement 
                        accounts for individuals who are not 
                        employees.--For purposes of this subparagraph, 
                        the Commissioner shall provide for the 
                        establishment of interim personal retirement 
                        accounts in accordance with part B of title II 
                        of the Social Security Act for any beneficiary 
                        referred to in this subparagraph who is not a 
                        covered individual (as defined by section 251 
                        of the Social Security Act).
                    ``(C) Excess amounts treated in same manner as 
                voluntary contributions.--For purposes of this 
                paragraph, amounts in the personal retirement account 
                attributable to Federal contributions which are in 
                excess of the amount required under subparagraph 
                (B)(ii)(I) (if any) shall be treated in the same manner 
                as amounts attributable to voluntary contributions.
            ``(9) Administrative expenses.--Paragraphs (1), (2), and 
        (3) shall not apply to amounts paid or distributed for 
        administrative expenses charged by the trustee of the personal 
        retirement account.
            ``(10) Good faith exception to additional tax.--The 
        additional tax imposed by paragraph (3) or (4) shall not apply 
        if the Secretary determines that--
                    ``(A) the taxpayer in good faith attempted to meet 
                the requirements to which such paragraph relates, and
                    ``(B) any failure to meet such requirements is due 
                to inadvertent error after the taxpayer took reasonable 
                steps to comply with such requirements.
    ``(f) Trustee Requirements.--The requirements of this subsection 
are met if the trustee--
            ``(1) in the case of a personal retirement account 
        maintained by an employer which has in effect an individual 
        account plan under a qualified cash or deferred arrangement (as 
        defined in section 401(k)), is the trustee of the trust forming 
        part of such plan, and
            ``(2) in any case not described in paragraph (1), has in 
        effect a certification under subpart 2 of part B of title II of 
        the Social Security Act or is an alternative trustee appointed 
        under section 264 of such Act.
    ``(g) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Amount attributable to federal contributions.--The 
        term `amount attributable to Federal contributions' means, with 
        respect to any payment or distribution from a personal 
        retirement account, the amount determined by multiplying the 
        total amount of such payment or distribution by the ratio--
                    ``(A) the numerator of which is the aggregate of 
                the contributions described in subparagraphs (A) and 
                (B) of subsection (c)(1) and the total amount of 
                earnings on such contributions, and
                    ``(B) the denominator of which is the sum of the 
                total amount in the personal retirement account 
                immediately before such payment or distribution was 
                made.
            ``(2) Amount attributable to voluntary contributions.--The 
        term `amount attributable to voluntary contributions' means, 
        with respect to any payment or distribution from a personal 
        retirement account, the amount determined by multiplying the 
        total amount of such payment or distribution by the ratio--
                    ``(A) the numerator of which is the aggregate of 
                the contributions described in subsection (c)(1)(C), 
                the rollover contributions described in subsection 
                (c)(2), and the total amount of earnings on 
                contributions described in subsection (c)(1)(C) and 
                subsection (c)(2), and
                    ``(B) the denominator of which is the sum of the 
                total amount in the personal retirement account 
                immediately before such payment or distribution was 
                made.
            ``(3) Separate accounting for contributions and earnings 
        thereon and distributions.--
                    ``(A) In general.--The trustee of any personal 
                retirement account shall separately account for--
                            ``(i) contributions under subparagraph (A) 
                        of subsection (c)(1) and earnings thereon,
                            ``(ii) contributions under subsection 
                        (c)(1)(B) and earnings thereon,
                            ``(iii) contributions under subsection 
                        (c)(1)(C) and earnings thereon, and
                            ``(iv) distributions from amounts accounted 
                        for under clauses (i) and (ii).
                    ``(B) Successor accounts.--The character of 
                contributions and earnings separately accounted for 
                under subparagraph (A) in a predecessor personal 
                retirement account shall apply to the successor 
                personal retirement account (within the meaning of 
                subsection (e)(4)).
            ``(4) Additional rules on tax treatment of account.--Rules 
        similar to the rules of paragraphs (2), (3), and (4) of section 
        408(e) shall apply.
            ``(5) Estate tax treatment.--No amount shall be includible 
        in the gross estate of any individual for purposes of chapter 
        11 by reason of an interest in a personal retirement account.
            ``(6) Community property laws.--This section shall be 
        applied without regard to any community property laws.''.
    (b) Study Relating to Reinsurance.--The Securities and Exchange 
Commission shall conduct a study to determine the need for, and the 
feasibility of requiring, reinsurance relating to personal retirement 
accounts. In particular, the study shall address the need for a 
governmental entity to provide such reinsurance and to which providers 
of annuities from personal retirement accounts would make payments for 
such reinsurance. The Commission shall make such recommendations to the 
Congress relating to such study as the Commission determines 
appropriate.
    (c) Federal Contributions Treated as Employer Contributions for 
Purposes of Pension Nondiscrimination Rules.--
            (1) In general.--Subparagraph (D) of section 401(k)(3) of 
        such Code (relating to application of participation and 
        discrimination standards) is amended by striking ``and'' at the 
        end of clause (i), by striking the period at the end of clause 
        (ii) and inserting ``, and'', and by inserting after clause 
        (ii) the following new clause:
                            ``(iii) shall include contributions 
                        described in subparagraphs (A) and (B) of 
                        section 531(c)(1).''.
            (2) Information provided to employer.--Paragraph (3) of 
        section 401(k) of such Code (relating to application of 
        participation and discrimination standards) is amended by 
        adding at the end the following new subparagraph:
                    ``(H) Certification to employer regarding personal 
                retirement account.--For purposes of subparagraph 
                (D)(iii), an employee shall, in such manner and on such 
                forms as the Secretary shall prescribe, certify to the 
                employer the existence of the personal retirement 
                account of the employee, the number of such account, 
                the trustee for such account, and the contributions to 
                such account under subparagraphs (A) and (B) of section 
                531(c)(1). Information furnished under this 
                subparagraph shall be confidential and may not be 
                disclosed to any person for any purpose other than the 
                purposes of subparagraph (D)(iii).''.
    (d) Clerical Amendment.--The table of parts for subchapter F of 
chapter 1 of the Internal Revenue Code of 1986 is amended by adding 
after the item relating to part VIII the following new item:

                              ``Part IX. Personal Retirement 
                                        accounts.''.

    (e) Effective Date.--The amendments made by this subsection shall 
apply to taxable years beginning after December 31, 2000.

SEC. 4. PRIMARY INSURANCE AMOUNTS.

    (a) In General.--Section 215(a) of the Social Security Act (42 
U.S.C. 415(a)) is amended by adding at the end the following new 
paragraph:
    ``(8)(A) Notwithstanding the preceding provisions of this 
subsection, solely for purposes of determining monthly insurance 
benefits other than disability insurance benefits, the primary 
insurance amount (as determined under the preceding paragraphs of this 
subsection) of an individual who is a personal retirement account 
holder (as defined in section 251) shall be reduced to the product 
derived by multiplying such primary insurance amount by a fraction (not 
less than zero) equal to 1 minus a fraction--
            ``(i) the numerator of which is the total of all deposits 
        (adjusted as provided under subparagraph (B)) made to the 
        individual's personal retirement account pursuant to section 
        253 of this Act or section 531(e)(8) of the Internal Revenue 
        Code of 1986 prior to the date on which such individual becomes 
        eligible for such benefits (or dies before becoming eligible 
        for such benefits), and
            ``(ii) the denominator of which is the amount which would 
        be the actuarial present value as of such date of the expected 
        future benefits under section 202 based on such individual's 
        wages and self-employment income if such individual became 
        entitled to old-age insurance benefits on such date 
        (disregarding the reduction under this paragraph and 
        disregarding, in the case of an individual's primary insurance 
        amount determined by reason of such individual's death, such 
        individual's death on such date).
    ``(B) For purposes of this paragraph, the total amount of the 
deposits referred to in subparagraph (A)(i) made during each calendar 
year shall be deemed to be equal to such amount, plus interest on such 
amount compounded annually thereafter at the rate equal to the average 
market yield (computed by the Secretary of the Treasury on the basis of 
market quotations as of the end of the calendar month next preceding 
the date of each compounding) on all marketable interest-bearing 
obligations of the United States than forming a part of the public debt 
which were not due or callable until after the expiration of four years 
from the end of such calendar month (rounded to the nearest one-eighth 
of one percent).
    ``(C) The actuarial assumptions and methods used for purposes of 
subparagraph (A)(ii) shall be assumptions and methods which are 
generally accepted for making actuarial determinations, except that the 
Commissioner shall use reasonable life expectancy tables prescribed by 
the Commissioner of Social Security by regulation for purposes of this 
subparagraph which do not discriminate on the basis of gender.''.
    (b) Conforming Amendment Preserving Appropriations for Medicare.--
Section 121(e)(1)(B) of the Social Security Amendments of 1983 (42 
U.S.C. 401 note) is amended, in the first sentence, by inserting ``, 
including the increase in such tax liabilities which would have 
occurred if the amendment made by section 4(a) of the Personal Lockbox 
Act of 2000 had not been enacted'' after ``subparagraph (A)(ii)''.

SEC. 5. CREDIT FOR CONTRIBUTIONS TO PERSONAL RETIREMENT ACCOUNTS.

    (a) In General.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to credits against tax) is 
amended by adding at the end the following new subpart:

     ``Subpart H--Personal Retirement Account Contributions Credit

``Sec. 54. Personal retirement account contributions credit.

``SEC. 54. PERSONAL RETIREMENT ACCOUNT CONTRIBUTIONS CREDIT.

    ``(a) In General.--
            ``(1) Entitlement to payment.--Each eligible individual 
        shall be entitled to have a payment made on behalf of such 
        individual for any calendar year (subject to subsection (b)) 
        equal to $300.
            ``(2) Payment.--Notwithstanding any other provision of this 
        title, the payment under paragraph (1) shall be paid by the 
        Secretary (in such manner as the Secretary shall prescribe) to 
        the personal retirement account of the eligible individual from 
        amounts available in the Federal Old-Age and Survivors 
        Insurance Trust Fund.
    ``(b) Limitations.--
            ``(1) Payment allowed only for 2 calendar years.--A payment 
        under subsection (a) on behalf of any individual may not be 
        made for any calendar year if a payment under subsection (a) on 
        behalf of such individual was made for any 2 prior calendar 
        years.
            ``(2) Limitation based on wages and self-employed income.--
        The amount which would (but for this paragraph) be paid under 
        subsection (a) for the calendar year shall be reduced (but not 
        below zero) by the amount which bears the same ratio to the 
        amount which would be so paid as--
                    ``(A) the excess (if any) of--
                            ``(i) the individuals wage and self-
                        employment income for such calendar year, over
                            ``(ii) $15,000, bears to
                    ``(B) $10,000.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Eligible individual.--The term `eligible individual' 
        means any individual--
                    ``(A) who is a covered employee or covered self-
                employed individual for a calendar year after 2000 
                under part B of title II of the Social Security Act, 
                and
                    ``(B) whose wage and self-employment income for the 
                calendar year is greater than $5,000.
            ``(2) Wage and self-employment income.--The term `wage and 
        self-employment income' for a calendar year means with respect 
        to an individual the sum of--
                    ``(A) wages (as defined in section 3121(a)) 
                received by such individual in the calendar year with 
                respect to employment (as defined in section 3121(b)) 
                on which tax is imposed under section 3201, and
                    ``(B) self-employment income (as defined in 
                1402(b)) of such individual for the taxable year ending 
                in such calendar year on which tax is imposed under 
                section 1401.
            ``(3) Personal retirement account.--The term `personal 
        retirement account' has the meaning given such term by section 
        531(b).
            ``(4) Inflation adjustment.--
                    ``(A) In general.--In the case of any calendar year 
                after 2001, the $300 in subsection (a)(1) and the 
                $15,000 amount in subsection (b)(2)(A)(ii) shall each 
                be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2000' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--If any amount determined under 
                subparagraph (A) with respect to the $15,000 amount in 
                subsection (b)(2)(A)(ii) is not a multiple of $50, such 
                amount shall be rounded to the next lowest multiple of 
                $50.''.
    (b) Conforming Amendment.--The table of subparts for part IV of 
subchapter A of chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new item:

``Subpart H. Personal Retirement Account Contributions Credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2000.

SEC. 6. EXCISE TAX ON EXCESS CONTRIBUTIONS TO PERSONAL RETIREMENT 
              ACCOUNTS.

    (a) In General.--Section 4973 of the Internal Revenue Code of 1986 
(relating to tax imposed on excess contributions) is amended--
            (1) in subsection (a) by striking ``or'' at the end of 
        paragraph (3), by inserting ``or'' at the end of paragraph (4), 
        and by inserting after paragraph (4) the following:
            ``(5) a personal retirement account (as defined in section 
        531),'', and
            (2) by adding at the end the following new subsection:
    ``(g) Excess Contributions to Personal Retirement Accounts.--
            ``(1) In general.--For purposes of this section, in the 
        case of personal retirement accounts, the term `excess 
        contributions' means the sum of--
                    ``(A) the amount by which the amount contributed 
                for the taxable year to the accounts exceeds the amount 
                allowable as a contribution under section 531(c)(1)(C) 
                (without regard to section 531(c)(1) (A) and (B)) for 
                such taxable year, and
                    ``(B) the amount determined under this subsection 
                for the preceding taxable year, reduced by the sum of--
                            ``(i) the distributions out of the plans 
                        for the taxable year (other than rollover 
                        distributions) of amounts attributable to 
                        voluntary contributions (as defined in section 
                        531(h)(2)), and
                            ``(ii) the excess (if any) of the maximum 
                        amount which may be contributed to the plans 
                        under section 531(c)(1)(C) for the taxable year 
                        over the amount contributed to the plans under 
                        such section for the taxable year.
                    ``(2) Contributions returned before due date.--For 
                purposes of this subsection, any contribution which is 
                distributed out of the personal retirement account in a 
                distribution to which section 531(e)(5) applies shall 
                be treated as an amount not so contributed.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

SEC. 7. INFORMATION REQUIREMENTS FOR STATEMENTS.

    (a) Information Requirements for Social Security Account 
Statement.--Section 1143(a) of the Social Security Act (42 U.S.C. 
1320b-13(a)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (B), by inserting 
                ``, including a separate estimate of the amount of 
                interest earned on the contributions,'' after 
                ``disability insurance'';
                    (B) in subparagraph (C)--
                            (i) by inserting ``, including a separate 
                        estimate of the amount of interest earned on 
the contributions,'' after ``hospital insurance''; and
                            (ii) by striking ``and'' after the 
                        semicolon;
                    (C) in subparagraph (D), by striking the period at 
                the end and inserting a semicolon;
                    (D) by redesignating subparagraphs (A), (B), (C), 
                and (D) as subparagraphs (B), (C), (D), and (E), 
                respectively;
                    (E) by inserting after the matter preceding 
                subparagraph (B), as redesignated by subparagraph (D), 
                the following:
                    ``(A) the name, age, gender, mailing address, and 
                marital status of the eligible individual;'';
                    (F) by adding at the end the following:
                    ``(F) the total amount of the employer and employee 
                contributions for the eligible individual for old-age 
                and survivors insurance benefits, as of the end of the 
                month preceding the date of the statement, in both 
                actual dollars and dollars adjusted for inflation;
                    ``(G) the projected value of--
                            ``(i) the aggregate amount of the employer 
                        and employee contributions for old-age and 
                        survivors insurance benefits that are expected 
                        to be made by or on behalf of the individual 
                        prior to the individual attaining retirement 
                        age, in both actual dollars and dollars 
                        adjusted for inflation;
                            ``(ii) the annual amount of old-age and 
                        survivors insurance benefits that are expected 
                        to be payable on the eligible individual's 
                        account for a single individual and for a 
                        married couple, in dollars adjusted for 
                        inflation;
                            ``(iii) the total amount of old-age and 
                        survivors insurance benefits payable on the 
                        eligible individual's account for the 
                        individual's life expectancy, in dollars 
                        adjusted for inflation, identifying--
                                    ``(I) the life expectancy assumed;
                                    ``(II) the amount of benefits 
                                received on the basis of each $1 of 
                                contributions made by or on behalf of 
                                the individual; and
                                    ``(III) the projected annual rate 
                                of return for the individual, taking 
                                into account the date on which the 
                                contributions are made in the eligible 
                                individual's account and the date on 
                                which the benefits are paid;
                            ``(iv) the total amount of old-age and 
                        survivors insurance benefits that would have 
                        accumulated on the eligible individual's 
                        account on the date on which the individual 
                        attains retirement age if the contributions for 
                        such individual had been invested in Treasury 
                        10-year saving bonds at the prevailing interest 
                        rate for such bonds as of the end of the month 
                        preceding the date of the statement, in dollars 
                        adjusted for inflation, identifying--
                                    ``(I) the date of retirement 
                                assumed;
                                    ``(II) the interest rate used for 
                                the projection; and
                                    ``(III) the amount that would be 
                                received on the basis of each $1 of 
                                contributions made by or on behalf of 
                                the individual;
                    ``(H) the average annual rate of return, adjusted 
                for inflation, on the Treasury 10-year saving bond as 
                of the date of the statement;
                    ``(I) the average annual rate of return, adjusted 
                for inflation, on a domestic stock index selected by 
                the Commissioner of Social Security, or an equivalent 
                portfolio of common stock equities that are based on a 
                broad index of United States market performance, for 
                the preceding 25 years;
                    ``(J) a brief statement that identifies--
                            ``(i) the balance of the trust fund 
                        accounts as of the end of the month preceding 
                        the date of the statement;
                            ``(ii) the annual estimated balance of the 
                        trust fund accounts for each of the succeeding 
                        30 years; and
                            ``(iii) the assumptions used to provide the 
                        information described in clauses (i) and (ii), 
                        including the rates of return and the nature of 
                        the investments of such trust fund accounts; 
                        and
                    ``(K) a simple 1-page summary and comparison of the 
                information that is provided to an eligible individual 
                under subparagraphs (G), (H), and (I).''; and
            (2) by striking paragraph (3) and inserting the following:
            ``(3) The estimated amounts required to be provided in a 
        statement under this section shall be determined by the 
        Commissioner using a general methodology for making such 
        estimates, as formulated and published at the beginning of each 
        calendar year by the Board of Trustees of the trust fund 
        accounts. A description of the general methodology used shall 
        be provided to the eligible individual as part of the statement 
        required under this section.
            ``(4) The Commissioner of Social Security shall notify an 
        individual who receives a social security account statement 
        under this section that the individual may request that the 
        information described in paragraph (2) be determined on the 
        basis of relevant information provided by the individual, 
        including information regarding the individual's income, 
        marital status, date of retirement, or race.
            ``(5) For purposes of this section--
                    ``(A) the term `dollars adjusted for inflation' 
                means--
                            ``(i) dollars in constant or real value 
                        terms on the date on which the statement is 
                        issued; and
                            ``(ii) an amount that is adjusted on the 
                        basis of the Consumer Price Index.
                    ``(B) the term `eligible individual' means an 
                individual who--
                            ``(i) has a social security account number;
                            ``(ii) has attained age 25 or over; and
                            ``(iii) has wages or net earnings from 
                        self-employment; and
                    ``(C) the term `trust fund account' means--
                            ``(i) the Federal Old-Age and Survivors 
                        Insurance Trust Fund; and
                            ``(ii) the Federal Disability Insurance 
                        Trust Fund.''.
    (b) Mandatory Provision of Statements.--Section 1143(c)(2) of the 
Social Security Act (42 U.S.C. 1320b-13(c)(2)) is amended by striking 
``With respect to'' and all that follows.
    (c) Technical Amendments.--Section 1143 of the Social Security Act 
(42 U.S.C. 1320b-13) is amended by striking ``Secretary'' each place it 
appears and inserting ``Commissioner of Social Security''.
    (d) Effective Date.--The amendments made by this section shall 
apply to statements provided for fiscal years beginning after the date 
of enactment of this Act.

SEC. 8. PROTECTION OF FEDERAL DISABILITY INSURANCE TRUST FUND.

    Section 201(b) of the Social Security Act (42 U.S.C. 401(b)) is 
amended by adding at the end (after and below paragraph (2)) the 
following:
``In addition to amounts otherwise appropriated under the preceding 
provisions of this subsection, there is hereby appropriated for each 
fiscal year after fiscal year 2000 to the Federal Disability Insurance 
Trust Fund, from amounts in the general fund of the Treasury not 
otherwise appropriated, such sums as may as necessary from time to time 
to maintain the balance ratio (as defined in section 709(b)) of the 
Federal Disability Insurance Trust Fund, for the calendar year 
commencing during such fiscal year, at not less than 20 percent. The 
sums to be appropriated under the preceding sentence shall be 
determined by the Board of Trustees of the Federal Old-Age and 
Surviviors Insurance Trust Fund and the Federal Disability Insurance 
Trust Fund and certified by the Board of Trustees to each House of the 
Congress as part of the Board's report submitted pursuant to section 
709. The Board of Trustees shall also transmit a copy of any such 
certification to the Secretary of the Treasury, and upon receipt 
thereof, such Secretary shall promptly take appropriate actions in 
accordance with the certification.''.
                                 <all>