[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3696 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3696

To exclude the first $75,000 of the value of retirement plans (adjusted 
 annually for cost of living) in determining eligibility for, and the 
  amount of benefits under, the supplemental security income program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 27, 2007

Mr. Lewis of Kentucky introduced the following bill; which was referred 
                   to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To exclude the first $75,000 of the value of retirement plans (adjusted 
 annually for cost of living) in determining eligibility for, and the 
  amount of benefits under, the supplemental security income program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. FINDINGS AND STATEMENT OF PURPOSE.

    (a) Findings.--The Congress finds as follows:
            (1) The Supplemental Security Income program provides 
        essential income security to more than 4,000,000 working-age 
        adult Americans, most of whom are disabled.
            (2) Eligibility for the Supplemental Security Income 
        program requires the applicant to have very few assets that are 
        available for the individual's use. However, certain necessary 
        assets, such as the person's primary residence, and certain 
        government benefits, such as the Earned Income Tax Credit, are 
        excluded from the asset test.
            (3) The value of a traditional defined benefit plan that 
        will eventually provide the former worker with periodic 
        payments does not count against the asset limit for the 
        Supplemental Security Income program, allowing a person who 
        becomes disabled to qualify for Supplemental Security Income 
        and Medicaid benefits while maintaining the right to receive a 
        pension at retirement age.
            (4) Americans are increasingly dependent on defined 
        contribution plans such as 401(k) and individual retirement 
        accounts to provide for retirement security. Assets saved in 
        such plans count against a person's eligibility for 
        Supplemental Security Income benefits.
            (5) Persons with disabilities are thus discouraged from 
        accumulating any retirement savings during periods of time when 
        they are able to work, because if their medical condition 
        deteriorates or they otherwise lose their job, they will have 
        to liquidate their retirement accounts and pay penalties in 
        order to qualify for Supplemental Security Income and Medicaid 
        benefits.
            (6) The current treatment of retirement assets discourages 
        savings and work for disabled persons.
    (b) Statement of Purpose.--The purpose of this Act is to encourage 
retirement savings for all and promote work and self-sufficiency for 
persons with disabilities by disregarding up to $75,000 in retirement 
accounts when determining eligibility for benefits under the 
Supplemental Security Income program.

SEC. 2. EXCLUSION OF LIMITED VALUE OF RETIREMENT PLANS UNDER THE SSI 
              PROGRAM.

    (a) Resourse Exclusion.--
            (1) In general.--Section 1613(a) of the Social Security Act 
        (42 U.S.C. 1382b(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (14);
                    (B) by striking the period at the end of paragraph 
                (15) and inserting ``; and''; and
                    (C) by inserting after paragraph (15) the 
                following:
            ``(16) the value of any plan, contract, or account, 
        described in section 401(a), 403(a), 403(b), 408, 408A, 457(b), 
        or 501(c)(18) of the Internal Revenue Code of 1986, established 
        for the benefit of the individual, to the extent the aggregate 
        value of all such plans, contracts, and accounts so established 
        does not exceed $75,000 (in the case of calendar years prior to 
        2009) and the amount determined under section 1617(d) for the 
        calendar year (in the case of calendar years after 2008).''.
            (2) Annual cost of living adjustment.--Section 1617 of such 
        Act (42 U.S.C. 1382f) is amended by adding at the end the 
        following new subsection:
    ``(d)(1) The Commissioner of Social Security shall, on or before 
November 1 of 2008 and every calendar year thereafter, determine and 
publish in the Federal Register a dollar amount for purposes of section 
1613(a)(16) for the succeeding calendar year. The amount determined 
under this subsection shall be the amount in effect in the calendar 
year in which the determination is made or, if larger, the product of--
            ``(A) $75,000, and
            ``(B) the ratio of--
                    ``(i) the Consumer Price Index for the calendar 
                year before the calendar year in which the 
                determination is made to
                    ``(ii) the Consumer Price Index for 2007,
with such product, if not a multiple of $100, being rounded to the next 
higher multiple of $100 where such product is a multiple of $50 but not 
of $100 and the nearest multiple of $100 in any other case.
    ``(2) For purposes of this subsection, the term `Consumer Price 
Index' for any year means the arithmetical mean of the Consumer Price 
Index for Urban Wage Earners and Clerical Workers (CPI-W) issued by the 
Bureau of Labor Statistics of the Department of Labor for the 12 months 
in such year.''.
    (b) Income Exclusion.--Section 1612(b) of such Act (42 U.S.C. 
1382a(b)) is amended--
            (1) by striking ``and'' at the end of paragraph (22);
            (2) by striking the period at the end of paragraph (23) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(24) the interest or other earnings on the resources of 
        the individual that are excluded by reason of section 
        1613(a)(16).''.
    (c) No Requirement To Accelerate Retirement Payments.--Section 
1611(e)(2) of such Act (42 U.S.C. 1382(e)(2)) is amended by inserting 
``(except, in the case of a person who has not attained 65 years of 
age, payments from a plan, contract, or account referred to in section 
1613(a)(16))'' after ``1612(a)(2)(B)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to benefits for calendar months beginning after the date of the 
enactment of this Act.
                                 <all>