1.Short title; table of
contents
(a)This Act may be cited
as the Saving Social Security Act of
2008
.
(b)The table of
contents for this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—Investment-based social security
Sec. 101. Establishment of an investment-based option for
social security benefits.
Part B—Investment-based social
security
Sec. 250.
Definitions.
Sec. 251. Election to waive
eligibility.
Sec. 252. Social security savings accounts for employees (SAFE
accounts).
Sec. 253. SAFE Investment
Fund.
Sec. 254.
Distributions.
Sec. 255. Social Security Investment
Board.
Sec. 102. Adjustments to primary insurance amounts under part
A of title II
of the Social Security Act for
investing workers with SAFE accounts.
Sec. 103. Minimum Social Security benefit.
Sec. 104. Tax treatment of investment-based social
security.
Sec. 105. Study on use of private annuities for SAFE account
distributions.
Sec. 106. Study regarding financial literacy.
TITLE II—Debt-based social security
Subtitle A—Adjustments
Sec. 201. Modification to retirement age.
Sec. 202. Modification of PIA factors to reflect changes in
life expectancy.
Sec. 203. Actuarial adjustment for retirements.
Subtitle B—Maintenance of social security trust
funds
Sec. 211. Maintenance of adequate balances in the social
security trust funds.
<enum>I</enum><header>Investment-based social security</header>
<section commented="no" display-inline="no-display-inline" id="ID8EC15759B7C94D19A0FDEEFF236EFB96" section-type="subsequent-section"><enum>101.</enum><header>Establishment of an
investment-based option for social security benefits</header>
<subsection commented="no" display-inline="no-display-inline" id="ID4AC4A5AFA9794FCDADE2A5E248AE2CAD"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Title II of the
<act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/401">42 U.S.C. 401</external-xref> et
seq.) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID16FF6F9B60AE4D65BA178B7C1554AD72"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting before section 201 the
following:</text>
<quoted-block act-name="" display-inline="no-display-inline" id="IDC64EF84DA8D240FE87B29EF9A57361FB" style="OLC">
<part commented="no" id="ID5F27E16185384E3DBE4C86A366BB8619"><enum>A<?LEXA-Enum A?></enum><header>Debt-based social
security</header>
</part><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID32F4A8CC72604D75BB1C66D53757E94C"><enum></enum><text display-inline="yes-display-inline">and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID04B50D29A2CC4DD2B507B5C242D0D469"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idD9A17989B1A048A9BA2AF01DC7668E72" style="OLC">
<part commented="no" id="IDF045C94B20554BE9A76988559E4BAD7E"><enum>B<?LEXA-Enum B?></enum><header>Investment-based social security</header>
<section commented="no" display-inline="no-display-inline" id="ID910E42AF5EBA4C17AFDCDCB8FFA8653B" section-type="subsequent-section"><enum>250.<?LEXA-Enum 250.?></enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this part—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID3DE03C084C4C442BB7AB467785959F9C"><enum>(1)</enum><header>Investing
worker</header><text display-inline="yes-display-inline">The term
<term>investing worker</term> means any individual—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDA7EE6A45C1D6480F937220D4BCAD3863"><enum>(A)</enum><text display-inline="yes-display-inline">who after the date of enactment of this
part—</text>
<clause commented="no" display-inline="no-display-inline" id="IDD74ED11FD0584D06A8481FFDDA91CA26"><enum>(i)</enum><text display-inline="yes-display-inline">receives wages on which there is imposed a
tax under section 3101(a) of the Internal Revenue Code of 1986; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID23411BB97387401C00199D148D5662FA"><enum>(ii)</enum><text display-inline="yes-display-inline">derives self-employment income on which
there is imposed a tax under section 1401(a) of the Internal Revenue Code of
1986; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDF95D1B3BE1044A70948E04AF511FA81D"><enum>(B)</enum><text display-inline="yes-display-inline">who was born on or after January 1, 1963,
and does not make an election to waive investment-based social security under
this part as provided under section 251(a).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0C1622C0E5D6478294CE9F122DEB1081"><enum>(2)</enum><header>Social security
savings accounts for employees (SAFE Account)</header><text display-inline="yes-display-inline">The term <term>social security savings
accounts for employees</term> or <term>SAFE Account</term> means an account
established for an investing worker within the SAFE Investment Fund under
section 252.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9D6B24D933344405A6D0E1599798D7E6"><enum>(3)</enum><header>SAFE Investment
Fund</header><text display-inline="yes-display-inline">The term <term>SAFE
Investment Fund</term> or <term>Fund</term> means the fund established under
section 253.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDA07AA8DC7E9E428898325C08C78958E8"><enum>(4)</enum><header>Social Security
Investment Board</header><text display-inline="yes-display-inline">The term
<term>Social Security Investment Board</term> or <term>Board</term> means the
board established under section 254.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDE069A33376C04896BB31E47E83C8A96D"><enum>(5)</enum><header>Commissioner</header><text display-inline="yes-display-inline">The term <term>Commissioner</term> means
the Commissioner of Social Security.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id16D6D799B10348B8B707421823B0B327" section-type="subsequent-section"><enum>251.</enum><header>Election to waive
eligibility</header>
<subsection commented="no" display-inline="no-display-inline" id="idF3D3AF4541E74025A5261C73EFF297CF"><enum>(a)</enum><header>Election To
waive eligibility for SAFE Accounts</header>
<paragraph commented="no" display-inline="no-display-inline" id="id5EA8CB1279EF431F9D57A7E7B0EE990A"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Any individual may
elect to waive eligibility under this part in such form and manner as
prescribed by the Board at any time after such individual attains the age of 18
and before such individual attains the age of 25. Such election shall be
irrevocable.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA1C571C357AC48BAA688BDBDBF929A69"><enum>(2)</enum><header>Individual born
before January 1, 1981</header><text display-inline="yes-display-inline">Notwithstanding paragraph (1), in the case
of any individual born after December 31, 1962, and before January 1, 1983,
such individual may elect to waive eligibility under this part in such form and
manner as prescribed by the Board at any time before January 1, 2009. Such
election shall be irrevocable.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idEDE0E9115D544D4B944824AFD756C70F"><enum>(b)</enum><header>Disposition of
SAFE Account</header><text display-inline="yes-display-inline">In the case of
any individual who makes an election under paragraph (1), any assets in such
individual's SAFE Account shall be paid to the Federal Old-Age and Survivors
Insurance Trust Fund, and such individual's eligibility for benefits under part
A shall be determined as if such Account had never been established.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDCF30775D115C4FD6AD008BB48DA9C4EF" section-type="subsequent-section"><enum>252.</enum><header>Social security
savings accounts for employees (SAFE accounts)</header>
<subsection commented="no" display-inline="no-display-inline" id="id167F8F3A184742ABB396EBA96A2014DC"><enum>(a)</enum><header>Establishment
of SAFE Accounts</header><text display-inline="yes-display-inline">Not later
than 30 days after the date on which an individual first becomes an investing
worker, the Social Security Investment Board shall establish a SAFE Account for
such individual in the SAFE Investment Fund.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idA8ED7CD9595B408098A2997778C651C8"><enum>(b)</enum><header>Contributions</header>
<paragraph commented="no" display-inline="no-display-inline" id="id6662D25634E3455E86EF82E6707F6318"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of the
Treasury shall transfer from the Federal Old-Age and Survivors Insurance Trust
Fund to the SAFE Investment Fund, for crediting by the Social Security
Investment Board to the SAFE Account of an investing worker, an amount equal to
the SAFE Account contribution amount with respect to each investing
worker.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9C07878848164B408D703BBE9261673D"><enum>(2)</enum><header>SAFE Account
contribution amount</header><text display-inline="yes-display-inline">For
purposes of paragraph (1), the term <term>SAFE Account contribution
amount</term> means, with respect to an investing worker for a calendar year,
the product derived by multiplying—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDD6D483E7CC7C4EBEA4DF749457E2813E"><enum>(A)</enum><text display-inline="yes-display-inline">the sum of the total wages paid to, and
self-employment income derived by, such individual during such calendar year;
by</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDBD8E4132AA304D39BB4E6EB75E60A359"><enum>(B)</enum><text display-inline="yes-display-inline">4 percent.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD025D03844004C81BE2914C9B1E85E8C"><enum>(c)</enum><header>Designation of
investments</header>
<paragraph commented="no" display-inline="no-display-inline" id="id99288CCF390E46C1957045203D36D58B"><enum>(1)</enum><header>Initial
designation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idCBF4E7F9EC154621A742B842C7139C77"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 10
days after an account is established for an investing worker under subsection
(a), the investing worker shall designate to which investment funds within the
SAFE Investment Fund contributions to such account under subsection (b) shall
be allocated.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id587E2A1E48024CBBA207171D52B7BFE4"><enum>(B)</enum><header>Default
allocation</header>
<clause commented="no" display-inline="no-display-inline" id="id9D4829D8080147588FD18F4312C06673"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">If no designation is
made pursuant to paragraph (1), the Board shall allocate such contributions in
accordance with the life-span investment option.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idB3F629F19D7A42B18E534B983B618BA7"><enum>(ii)</enum><header>Life-span
investment option</header><text display-inline="yes-display-inline">For
purposes of this section, the life-span investment option shall provide for the
management and investment of funds within an investing worker's SAFE account on
the basis of the age of the investing worker in accordance with regulations
established by the Board. In establishing regulations with respect to the
life-span investment option under this subparagraph, the Board shall
consider—</text>
<subclause commented="no" display-inline="no-display-inline" id="idC50C885DE0DC4FCB880E1F6E24928D0D"><enum>(I)</enum><text display-inline="yes-display-inline">with respect to the youngest investing
workers, investing 80 percent of such funds in stocks and 20 percent of such
funds in bonds; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id39EFE4710B304CD99F148CCF03B0C7B3"><enum>(II)</enum><text display-inline="yes-display-inline">with respect to the oldest investing
workers, investing 35 percent of such funds in stocks and 65 percent of such
funds in bonds.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id98647415D33640E2AEA35B85A2BB3C9C"><enum>(2)</enum><header>Subsequent
designations</header><text display-inline="yes-display-inline">At least twice
each year, an investing worker may redesignate the allocation of investments
funds within the SAFE Investment Fund to which contributions with respect to
such investing worker are allocated.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID9F82E4BA0859404F98CA6C1F913C825D"><enum>(d)</enum><header>Time
designation takes effect</header><text display-inline="yes-display-inline">A
designation under subsection (c) shall take effect with respect to
contributions made beginning more than 14 days after the date of the
designation.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDD35C46036B1D4318A9E510232F83008D"><enum>(e)</enum><header>Investing
worker’s property right in the SAFE Account</header><text display-inline="yes-display-inline">Each SAFE Account designated by an
investing worker is the sole property of the worker.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDE236BD2D4928408AA55DBB47A75B10C3"><enum>(f)</enum><header>Form of
designations</header><text display-inline="yes-display-inline">Designations
under this section shall be made—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID65908AAFCD41487EA8044B429F52B02D"><enum>(1)</enum><text display-inline="yes-display-inline">on W–4 forms (or any successor forms);
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDC287D80481A94FE29CF1EC6185499F73"><enum>(2)</enum><text display-inline="yes-display-inline">in such other manner as the Social Security
Investment Board may prescribe in order to ensure ease of
administration.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="IDB6F44720F2C94DE49158F66B641E92FF" section-type="subsequent-section"><enum>253.</enum><header>SAFE Investment
Fund</header>
<subsection commented="no" display-inline="no-display-inline" id="id43445180956047B0889AF2C895F40BB1"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">There shall be
established and maintained in the Treasury of the United States a SAFE
Investment Fund in the same manner as the Thrift Savings Fund under sections
8437 (excluding paragraphs (4) and (5) of subsection (c) thereof), 8438, and
8439 of title 5, United States Code, insofar as such sections are not
inconsistent with the provisions of this part.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDAD73193779A542BCB35FD5727CE9B314"><enum>(b)</enum><header>Investment
earnings report</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID5C6FDD6AA3F749C1B12FFFDCE75213A8"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">At least annually,
the SAFE Investment Fund shall provide to each investing worker a SAFE
Investment Status Report. Such report may be transmitted electronically upon
the agreement of the investing worker under the terms and conditions
established by the Social Security Investment Board.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID99F0B3E75684493BBC0023AF7D5604CF"><enum>(2)</enum><header>Contents of
report</header><text display-inline="yes-display-inline">The SAFE Investment
Status Report, with respect to a SAFE Account, shall provide the following
information:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID998CB99CB6A64F62BE87A58B3FB5CC9D"><enum>(A)</enum><text display-inline="yes-display-inline">The total SAFE Account contributions made
in the last quarter, the last year, and since the Account was
established.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDACDED873AD234B529E92AB946BB59623"><enum>(B)</enum><text display-inline="yes-display-inline">The amount and rate of return earned for
each period described in subparagraph (A).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID2C60EB80568A4EBCAF33E85DD8DB6CAE"><enum>(C)</enum><text display-inline="yes-display-inline">A projection of how much the investing
worker will have available on the date the worker attains normal retirement age
if such contributions and earnings continue at the same rate during the
remaining period ending with such date.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDCA40D08788FD4484B295299F1CD8A2BD"><enum>(c)</enum><header>Maximum
administrative fee</header><text display-inline="yes-display-inline">The SAFE
Investment Fund shall charge each investing worker in the Fund a single,
uniform annual administrative fee not to exceed 0.57 percent of the value of
the assets invested in the worker’s SAFE Account.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="ID46CE6C14CC1F4ED5838C654461007F69" section-type="subsequent-section"><enum>254.</enum><header>Distributions</header>
<subsection commented="no" display-inline="no-display-inline" id="id73984FE08307466098418FE4E93ABAE9"><enum>(a)</enum><header>Date of initial
distribution</header><text display-inline="yes-display-inline">Except as
provided in subsection (b)(4), distributions may only be made from a SAFE
Account of an investing worker on and after the earliest of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDE5C31F44A1224F4487B491AFD7D2CF65"><enum>(1)</enum><text display-inline="yes-display-inline">the date the investing worker attains
normal retirement age, as determined under section 216; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDF30ED250FAEF4F90B28E7EF8B200E261"><enum>(2)</enum><text display-inline="yes-display-inline">the date on which funds in the investing
worker’s SAFE Account are sufficient to transfer to the Federal Old-Age and
Survivors Insurance Trust Fund—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idBAAA9B6D79DC4CD1ACFF7AF8A277E154"><enum>(A)</enum><text display-inline="yes-display-inline">an amount equal to the old-age insurance
amount (as calculated under subsection (b)(1)(B)); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE62D0442FD814658B4288F98FC9EA22B"><enum>(B)</enum><text display-inline="yes-display-inline">an amount equal to the survivor's insurance
amount (as calculated under subsection (b)(2)(B)).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDDF28717805084393982760AE78A318DA"><enum>(b)</enum><header>Form of
distribution</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID122D8358F2434912B0DEEE27F5184E54"><enum>(1)</enum><header>Federal annuity
payment</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDB5711D3C93784677B011B9D8A33BF726"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">On the date
determined under subsection (a), so much of the balance in an investing
worker's SAFE Account as does not exceed the old-age insurance amount shall be
transferred to the Federal Old-Age and Survivors Insurance Trust Fund and the
investing worker shall be entitled to a Federal annuity payment.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID06C9F1A6F09A413681B7A52782C321A0"><enum>(B)</enum><header>Old-age
insurance amount</header><text display-inline="yes-display-inline">For purposes
of this section, the old-age insurance amount is an amount which is sufficient
to provide a Federal annuity payment which, when added to the investing
worker’s monthly benefit under part A, is equal to one-twelfth of 135 percent
of the poverty line (as defined in section 673(2) of the Community Services
Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902(2)">42 U.S.C. 9902(2)</external-xref>)).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9CEDDD15CE074ACBB94DB7E63F39EB67"><enum>(C)</enum><header>Federal annuity
payment</header><text display-inline="yes-display-inline">For purposes of this
section, the term <term>Federal annuity payment</term> means a monthly payment
from the Federal Old-Age and Survivors Insurance Trust Fund in an amount
determined by the Social Security Investment Board based on the amount
transferred to the Federal Old-Age and Survivors Insurance Trust Fund under
subparagraph (A) and the life expectancy of the investing worker (determined
under reasonable actuarial assumptions).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID347806642744449DA631D8027C46B320"><enum>(2)</enum><header>Family or
survivor benefits for related individuals</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID2E6DF31054FD4C98B0D4A71442CF71D8"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">On the date
determined under subsection (a), in the case of an investing worker whose SAFE
Account has funds in excess of the amount required to be transferred under
paragraph (1)(A), so much of such excess funds as does not exceed the
survivor's insurance amount shall be transferred to the Federal Old-Age and
Survivors Insurance Trust Fund and any related individual shall be entitled to
a survivor's payment at the time such related individual meets the applicable
requirements for a monthly payment under section 202.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID3A3CDD94EA1049D3A1F9DF4C54BD2F00"><enum>(B)</enum><header>Survivor's
insurance amount</header><text display-inline="yes-display-inline">For purposes
of this section, the survivor's insurance amount is an amount, determined by
the Social Security Investment Board under rules established by such Board,
which is sufficient to provide survivor's payments to all related
individuals.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id697639279EFE498AAE1661EC632417DF"><enum>(C)</enum><header>Survivor's
payment</header><text display-inline="yes-display-inline">For purposes of this
section, the term <term>survivor's payment</term> means a monthly payment from
the Federal Old-Age and Survivors Insurance Trust Fund in an amount which, when
added to such related individual's monthly benefit (or projected monthly
benefit) under this title, is equal to the benefit such related individual
would be entitled to under section 202 if the investing worker had waived the
application of this part.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF10A7FBBAF41475AB625490DBD2A05D8"><enum>(D)</enum><header>Related
individual</header><text display-inline="yes-display-inline">For purposes of
this section, the term <term>related individual</term> means, with respect to
an investing worker, any individual entitled to benefits under section 202
based on the wages or self-employment income of such worker.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDBB3E17B4F98C4D7FB0C59E3C479FEE00"><enum>(3)</enum><header>Payment of
excess SAFE Account funds</header><text display-inline="yes-display-inline">To
the extent funds remain in an investing worker’s SAFE Account after the
transfer required under paragraphs (1) and (2), such excess assets shall be
payable to the worker in such manner and in such amounts as determined by the
worker.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDE4D22BC6902444E4909D1E00625EE337"><enum>(4)</enum><header>Distribution in
the event of death</header><text display-inline="yes-display-inline">If the
investing worker dies before the date determined under subsection (a), the
balance in the worker’s SAFE Account shall be distributed in the following
manner:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDC579C8463AED4BE29142177C0017F833"><enum>(A)</enum><text display-inline="yes-display-inline">Not more than an amount equal to the
survivor's insurance amount shall be transferred to the Federal Old-Age and
Survivors Insurance Trust Fund.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID1280E2A5A04841E3AFF3D8B3B5B7B4B3"><enum>(B)</enum><text display-inline="yes-display-inline">The remainder (if any) shall be distributed
in a lump sum, under rules established by the Social Security Investment Board,
to the investing worker’s estate, subject to applicable State laws.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="IDEF5B4693E15A4E3CA0101F002561A1D9" section-type="subsequent-section"><enum>255.</enum><header>Social Security
Investment Board</header>
<subsection commented="no" display-inline="no-display-inline" id="idAB9B5CCA70D84004A9A9181DF8001CEB"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established within the Social
Security Administration a Social Security Investment Board (in this Act
referred to as the <quote>Board</quote>).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID26DBE13C8D6C4A93A28596706DFC5435"><enum>(b)</enum><header>Composition</header><text display-inline="yes-display-inline">The Board shall be composed of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID0C97D2155CBD432A9393FFF34BCAA770"><enum>(1)</enum><text display-inline="yes-display-inline">2 members from the private sector appointed
by the President, of whom 1 shall be designated by the President as
Chairman;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDB94B4DF3E9E947FFB479F9A856E6BE28"><enum>(2)</enum><text display-inline="yes-display-inline">the Secretary of the Treasury;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9969DC78063B405CBA62986F4BD688C8"><enum>(3)</enum><text display-inline="yes-display-inline">the Chairman of the Federal Reserve Board;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6551E26CD84F40BEA9255B3CD9A43348"><enum>(4)</enum><text display-inline="yes-display-inline">the Chairman of the Securities and Exchange
Commission.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID368D33396F3849CD802C408E674DF0E6"><enum>(c)</enum><header>Advice and
consent</header><text display-inline="yes-display-inline">Appointments under
subsection (b)(1) shall be made by and with the advice and consent of the
Senate.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDA12E8C1751A14C74AA70D5A225CD1CB8"><enum>(d)</enum><header>Membership
requirements</header><text display-inline="yes-display-inline">Members of the
Board appointed under subsection (b)(1) shall have substantial experience,
training, and expertise in finance, investments, or insurance.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDE673EE31609C46B09DEAC0C5D456223E"><enum>(e)</enum><header>Length of
appointments</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID51F460E986A14501A56FDC4D03BD003B"><enum>(1)</enum><header>Terms</header><text display-inline="yes-display-inline">A member of the Board appointed under
subsection (b)(1) shall be appointed for a term of 6 years, except that of the
members first appointed under subsection (b)(1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDF54F432CD067422CB0B57BC208E8BF2B"><enum>(A)</enum><text display-inline="yes-display-inline">the Chairman shall be appointed for a term
of 6 years; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDCEB5A4E019F14879A2001B2C816838CF"><enum>(B)</enum><text display-inline="yes-display-inline">the remaining member shall be appointed for
a term of 3 years.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7ADFFD695E624E95BF625EAA74E4EB32"><enum>(2)</enum><header>Vacancies</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDF99B44B052EA4101A6B95E1C8DC70901"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">A vacancy on the
Board shall be filled in the manner in which the original appointment was made
and shall be subject to any conditions that applied with respect to the
original appointment.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDB09500E7FFC14E45A2EBEC4C4F3676AE"><enum>(B)</enum><header>Completion of
term</header><text display-inline="yes-display-inline">An individual chosen to
fill a vacancy shall be appointed for the unexpired term of the member
replaced.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDB3DBEAA2CC574E0BA39026CAD03993DB"><enum>(3)</enum><header>Expiration</header><text display-inline="yes-display-inline">The term of any member shall not expire
before the earlier of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDA9E6E0B6BA344CC3BDD185004E44FD6C"><enum>(A)</enum><text display-inline="yes-display-inline">the date on which the member’s successor
takes office; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID093142F98C76437B87EFCA215287D555"><enum>(B)</enum><text display-inline="yes-display-inline">1 year after the member’s term is scheduled
to expire.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID6D31EC7069564E95957DC881B13388A7"><enum>(f)</enum><header>Duties</header><text display-inline="yes-display-inline">The Board shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID5ED1D2A243A8457BA254BEEAA966D171"><enum>(1)</enum><text display-inline="yes-display-inline">maintain SAFE Accounts and the SAFE
Investment Fund in the same manner as the Thrift Savings Accounts and the
Thrift Savings Fund are maintained by the Thrift Savings Board;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7AFAE84649E540D8888F342B78F4249D"><enum>(2)</enum><text display-inline="yes-display-inline">review and approve the budget of the
Board;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB8C9E36357E3443CAAD3E15856AF1C05"><enum>(3)</enum><text display-inline="yes-display-inline">establish policies for the administration
of this part; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDA26F061B6F4140CFAEDC15D0B14E483F"><enum>(4)</enum><text display-inline="yes-display-inline">carry out any other duties specified under
this part.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID032F5259FD194AEF8B6EA1569F7D0628"><enum>(g)</enum><header>Administrative
provisions</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID0B9F35856CBB43E7914E70816E5B96A9"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Board may—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID0CD6EDB7C24B46AD82D63B91EFD1C183"><enum>(A)</enum><text display-inline="yes-display-inline">adopt, alter, and use a seal;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID182D98B230774F01A3F3D4CF5283005F"><enum>(B)</enum><text display-inline="yes-display-inline">direct the Executive Director to take such
action as the Board considers appropriate to carry out the provisions of this
part and the policies of the Board;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID4423545C55BB438383D517DE12B4A980"><enum>(C)</enum><text display-inline="yes-display-inline">upon the concurring votes of 4 members,
remove the Executive Director from office for good cause shown; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDD3530144068C4F8D9D9E00338E529973"><enum>(D)</enum><text display-inline="yes-display-inline">take such other actions as may be necessary
to carry out the functions of the Board.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDD1203A8590F043A50010E7C666165199"><enum>(2)</enum><header>Meetings</header><text display-inline="yes-display-inline">The Board shall meet—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDEC306F305C604E7BB4C507875591B81B"><enum>(A)</enum><text display-inline="yes-display-inline">not less than once each month; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID2E4589DCFC364B5FBA4085F13B75FD2B"><enum>(B)</enum><text display-inline="yes-display-inline">at additional times at the call of the
Chairman.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5E07E15B95654BBEB6A949B0D66DFCC3"><enum>(3)</enum><header>Exercise of
powers</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID72884D8790DF49D8A9BD75A137F6105C"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
paragraph (1)(C), the Board shall perform the functions and exercise the powers
of the Board on a majority vote of a quorum of the Board. Three members of the
Board shall constitute a quorum for the transaction of business.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID55708745993B45CBA6367129974C1EC4"><enum>(B)</enum><header>Vacancies</header><text display-inline="yes-display-inline">A vacancy on the Board shall not impair the
authority of a quorum of the Board to perform the functions and exercise the
powers of the Board.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3957222A325A4207AFBC91B7D2A3C6E4"><enum>(h)</enum><header>Compensation</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID7881A598FCFB43B892D7FF00534E3500"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Each member of the
Board who is not an officer or employee of the Federal Government shall be
compensated at the daily rate of basic pay for level IV of the Executive
Schedule for each day during which such member is engaged in performing a
function of the Board.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7F085EE7F4F24033817C9784AA53F430"><enum>(2)</enum><header>Expenses</header><text display-inline="yes-display-inline">A member of the Board shall be paid travel,
per diem, and other necessary expenses under subchapter I of chapter 57 of
title 5, United States Code, while traveling away from such member’s home or
regular place of business in the performance of the duties of the Board.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDADC2FFA5BA9148C8A6D3798964331255"><enum>(i)</enum><header>Appointment of
Executive Director</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDBC64B32DDEF44859A331D38B7FA8DE81"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Board shall
appoint, without regard to the provisions of law governing appointments in the
competitive service, an Executive Director by action agreed to by a majority of
the members of the Board.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2DD84E6243694570B6F100C2F62F009B"><enum>(2)</enum><header>Requirements</header><text display-inline="yes-display-inline">The Executive Director shall have
substantial experience, training, and expertise in finance, investments, and
insurance.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3FA16D065FA0481BA42DFFD6227F4B00"><enum>(3)</enum><header>Duties</header><text display-inline="yes-display-inline">The Executive Director shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID44CF8062B1E94184B1333C8639BD085B"><enum>(A)</enum><text display-inline="yes-display-inline">carry out the policies established by the
Board;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1BB946430FA7461B9A2FC0FAF4ED571D"><enum>(B)</enum><text display-inline="yes-display-inline">invest and manage the SAFE Investment Fund
in accordance with the investment policies established by the Board;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID4854F4619C784F129BBC363BDBCEA940"><enum>(C)</enum><text display-inline="yes-display-inline">administer the provisions this part;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID70D5A6D24CA34D699B491443128FE79F"><enum>(D)</enum><text display-inline="yes-display-inline">prescribe such regulations (other than
regulations relating to fiduciary responsibilities) as may be necessary for the
administration of this part.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6117C3BF0C68478E8200D783CA5F0016"><enum>(4)</enum><header>Administrative
authority</header><text display-inline="yes-display-inline">The Executive
Director may—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID86D3DC09EC0F422CA78008B693FD00F5"><enum>(A)</enum><text display-inline="yes-display-inline">appoint such personnel as may be necessary
to carry out the provisions of this part;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDD9C3DF771B034BF08CEBF82BCE6D49B1"><enum>(B)</enum><text display-inline="yes-display-inline">subject to approval by the Board, procure
the services of experts and consultants under section 3109 of title 5, United
States Code;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDFF517F6238074D2CB442A66531668250"><enum>(C)</enum><text display-inline="yes-display-inline">secure directly from an executive agency,
the United States Postal Service, or the Postal Rate Commission any information
necessary to carry out the provisions of such part and the policies of the
Board;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID06DB3E4EA65342A3949EC69E5CD25895"><enum>(D)</enum><text display-inline="yes-display-inline">make such payments out of sums described in
subsection (l) as the Executive Director determines are necessary to carry out
the provisions of such part and the policies of the Board;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID2C0B7D8350814D050074924CFE4CF593"><enum>(E)</enum><text display-inline="yes-display-inline">accept and use the services of individuals
employed intermittently in the Government service and reimburse such
individuals for travel expenses, as authorized by section 5703 of title 5,
United States Code, including per diem as authorized by section 5702 of such
title;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID3B799A516AD447FF829100005E04CE74"><enum>(F)</enum><text display-inline="yes-display-inline">except as otherwise expressly prohibited by
law or the policies of the Board, delegate any of the Executive Director’s
functions to such employees under the Board as the Executive Director may
designate and authorize such successive redelegations of such functions to such
employees under the Board as the Executive Director may consider to be
necessary or appropriate; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID5C663FA1D3404EF1832C65BDF67060FE"><enum>(G)</enum><text display-inline="yes-display-inline">take such other actions as are appropriate
to carry out the functions of the Executive Director.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID650A271DFE2149DF8BB788C0DD65CFF8"><enum>(j)</enum><header>Discharge of
responsibilities</header><text display-inline="yes-display-inline">The members
of the Board shall discharge their responsibilities solely in the interest of
SAFE Account holders and beneficiaries under this part.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDA6BA5FA3249A4DE384E92514D21950CF"><enum>(k)</enum><header>Annual
independent audit</header><text display-inline="yes-display-inline">The Board
shall annually engage an independent qualified public accountant to audit the
activities of the Board.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID7A8EA123DE0740DE8374F45D29745DC4"><enum>(l)</enum><header>Source of
Funds</header><text display-inline="yes-display-inline">Payments authorized
under this section shall be paid from administrative fees charged in accordance
with section 253(c).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDFA766848B09F45BE90B3700000F71766"><enum>(m)</enum><header>Submission of
budget to Congress</header><text display-inline="yes-display-inline">The Board
shall prepare and submit to the President, and, at the same time, to the
appropriate committees of Congress, an annual budget of the expenses and other
items relating to the Board which shall be included as a separate item in the
budget required to be transmitted to Congress under section 1105 of title 31,
United States Code.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID2DCC73DAA7864693BF3911BC85F8C05F"><enum>(n)</enum><header>Submission of
legislative recommendations</header><text display-inline="yes-display-inline">The Board may submit to the President, and,
at the same time, shall submit to each House of Congress, any legislative
recommendations of the Board relating to any of its functions under this part
or any other provision of
law.</text>
</subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID2D46C1D2808E4034004F8B279B3495B6"><enum>(b)</enum><header>Effective date
and notice requirements</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID7218793C81D4495BA778C8A932C2A198"><enum>(1)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to designations of accounts made with respect to
payroll periods beginning on or after the date of the enactment of this
Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDA8FCEB6CBB3A4D2FA199666BF3FB6D4B"><enum>(2)</enum><header>Notice
requirements</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDB7610EED56C34FFBBA97E0D5BA72C493"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than
January 1, 2009, the Commissioner of Social Security shall—</text>
<clause commented="no" display-inline="no-display-inline" id="ID869F93400B594531BBA613C277EA4DAF"><enum>(i)</enum><text display-inline="yes-display-inline">send to the last known address of each
eligible individual a description of the program established by the amendments
made by this section, that shall be written in the form of a pamphlet in
language that may be readily understood by the average worker;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID919475BEE8E942D8B8DF6D69E3750732"><enum>(ii)</enum><text display-inline="yes-display-inline">provide for toll-free access by telephone
from all localities in the United States and access by the Internet to the
Social Security Administration through which individuals may obtain information
and answers to questions regarding such program; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDAF166CB771444942B673785DF10059B4"><enum>(iii)</enum><text display-inline="yes-display-inline">provide information to the media in all
localities of the United States about such program and such toll-free access by
telephone and access by Internet.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID207A864BD8914F68A645797FDAB27723"><enum>(B)</enum><header>Eligible
individual</header><text display-inline="yes-display-inline">For purposes of
this paragraph, the term <term>eligible individual</term> means an individual
who, as of the date of the pamphlet sent pursuant to subparagraph (A), is
indicated within the records of the Social Security Administration as being
credited with 1 or more quarters of coverage under
<external-xref legal-doc="act" parsable-cite="SSA/213">section
213</external-xref> of the <act-name parsable-cite="SSA">Social Security
Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/413">42
U.S.C. 413</external-xref>).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID16E3C5A1BA0A4DCEAD4870AD2D13C193"><enum>(C)</enum><header>Matters to be
included</header><text display-inline="yes-display-inline">The Commissioner of
Social Security shall include with the pamphlet sent to each eligible
individual pursuant to subparagraph (A)—</text>
<clause commented="no" display-inline="no-display-inline" id="ID1108415C3E744A5282D525AB8C30492F"><enum>(i)</enum><text display-inline="yes-display-inline">a statement of the number of quarters of
coverage indicated in the records of the Social Security Administration as of
the date of the description as credited to such individual under section 213 of
such Act and the date as of which such records may be considered accurate;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDCD59D173D1B847E08DE17C5FF7DCF2C0"><enum>(ii)</enum><text display-inline="yes-display-inline">the number for toll-free access by
telephone established by the Commissioner pursuant to subparagraph
(A)(ii).</text>
</clause></subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID3871D3A693CD458FA0CDCB33A41C5730" section-type="subsequent-section"><enum>102.</enum><header>Adjustments to
primary insurance amounts under part <enum-in-header>A</enum-in-header> of
title <enum-in-header>II</enum-in-header> of the <act-name parsable-cite="SSA">Social Security Act</act-name> for investing workers with
SAFE accounts</header>
<subsection commented="no" display-inline="no-display-inline" id="ID440E2F577641448AA08BCAE7D5E76C57"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline"><external-xref legal-doc="act" parsable-cite="SSA/215">Section 215</external-xref> of the
<act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C. 415</external-xref>) is
amended by adding at the end the following:</text>
<quoted-block act-name="Social Security Act" display-inline="no-display-inline" id="ID51EACA387CED48DAB7E3448E3040F407" other-style="archaic" style="other"><subsection commented="no" display-inline="no-display-inline" id="ID1DF7F00E702240699300269FDB9FEC97"><enum>(j)</enum><header>Adjustment of primary
insurance amount in relation to deposits made to SAFE
Accounts</header><paragraph commented="no" display-inline="yes-display-inline" id="ID6B5E9A3A08DB40C39EA701D026948C3B"><enum>(1)</enum><text display-inline="yes-display-inline">Except as provided in paragraph (2), an
individual’s primary insurance amount as determined in accordance with this
section (before adjustments made under subsection (i)) shall be equal
to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDA87AECFA76BF44F200D396962B886DD2" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">the amount which would be so determined
without the application of this subsection, multiplied by</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDC74472DF8E1B453F98A02F6C007941ED" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">1
minus the ratio of—</text>
<clause commented="no" display-inline="no-display-inline" id="IDC888D07DF79042F0AFC3D6A2009CFCCD"><enum>(i)</enum><text display-inline="yes-display-inline">the sum of—</text>
<subclause commented="no" display-inline="no-display-inline" id="IDD5560FC1A9C2473CAB332CE1036D6124"><enum>(I)</enum><text display-inline="yes-display-inline">the total of all amounts which have been
credited pursuant to section 252(b) to the SAFE Account held by such
individual; plus</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID530A9FA35E7148CBB2343D1D02EB7D90"><enum>(II)</enum><text display-inline="yes-display-inline">accrued interest on such amounts compounded
annually up to the date of initial benefit entitlement based on the earning of
the individual’s SAFE Account, assuming an interest rate equal to the projected
interest rate of the Federal Old-Age and Survivors Trust Fund; to</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDD8E001D98305480296F74BDA8B629637"><enum>(ii)</enum><text display-inline="yes-display-inline">the expected present value of all future
benefits paid based on the individual’s earnings, as of the date of initial
benefit entitlement based on such earnings, assuming future mortality and
interest rates for the Federal Old-Age and Survivors Trust Fund used in the
intermediate projections of the most recent Board of Trustees report under
section 201.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID14AAE17374164F38A893BF24A370BC29" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">In the case of an individual who becomes
entitled to disability insurance benefits under section 223, such individual’s
primary insurance amount shall be determined without regard to paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDAE176F390DE140DABB368F1F1C2FE8F5"><enum>(b)</enum><header>Conforming
amendment to Railroad Retirement Act of 1974</header><text display-inline="yes-display-inline">Section 1 of the Railroad Retirement Act of
1974 (<external-xref legal-doc="usc" parsable-cite="usc/45/231">45 U.S.C.
231</external-xref>) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="ID3F4A05E2E1A349FBA7CDA4D612B55B70" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="IDC21BABE3190A47A6A2BB88154C35341E"><enum>(s)</enum><text display-inline="yes-display-inline">In applying applicable provisions of the
<act-name parsable-cite="SSA">Social Security Act</act-name> for purposes of
determining the amount of the annuity to which an individual is entitled under
this Act, section 215(j) of the <act-name parsable-cite="SSA">Social Security
Act</act-name> and part B of title II of such Act shall be
disregarded.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDF542D4482911433FAE5480AC114ECD5C"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply with respect to computations and recomputations of
primary insurance amounts occurring after December 31, 2007.</text>
</subsection></section><section id="ID76A84C6AF01F46B4B69DB7FB78C384EA"><enum>103.</enum><header>Minimum Social
Security benefit</header><text display-inline="no-display-inline">Section 215
of the <act-name parsable-cite="SSA">Social Security Act</act-name>
(<external-xref legal-doc="usc" parsable-cite="usc/42/415">42 U.S.C.
415</external-xref>), as amended by section 102, is amended by adding at the
end the following:</text>
<quoted-block act-name="Social Security Act" display-inline="no-display-inline" id="ID97B1DC2F81A04402A1CC00F4B69686BF" other-style="archaic" style="other"><subsection id="ID96A6BF81A45B4E23883DBB914F806E96"><enum>(k)</enum><header>Minimum monthly
insurance benefit</header><paragraph commented="no" display-inline="yes-display-inline" id="ID0F84D8249D7F4FC090FC21383DF6791F"><enum>(1)</enum><text>Notwithstanding the
preceding provisions of this section—</text>
<subparagraph id="IDCD80A9DCAE00444BA8FB15FFD5E17040" indent="up1"><enum>(A)</enum><text>the primary insurance amount of any
individual who initially becomes eligible for old-age insurance benefits or
dies (before becoming eligible for such benefits) for a month beginning after
December 31, 2024, shall be equal to the greater of—</text>
<clause id="IDF64828EEA5AD4F1C91D02051FF9F7958"><enum>(i)</enum><text>the primary insurance amount
determined under this section (without regard to this subsection), or</text>
</clause><clause id="ID572FE673EE20472CAF6D823BCCA861A5"><enum>(ii)</enum><text><fraction>1/12</fraction> of the
applicable percentage of the income official poverty line (as defined by the
Office of Management and Budget, and revised annually in accordance with
section 673(2) of the Omnibus Budget Reconciliation Act of 1981), and</text>
</clause></subparagraph><subparagraph id="ID834AAB7FB2134B1EB381714E111F1B12" indent="up1"><enum>(B)</enum><text>any recomputation of the primary
insurance amount of a qualified individual shall not result in a primary
insurance amount less than the primary insurance amount as in effect
immediately prior to such recomputation.</text>
</subparagraph></paragraph><paragraph id="ID0AF5FC2E7E384D04BC96C5DC00BD3D72" indent="up1"><enum>(2)</enum><text>For purposes of this subsection, the
applicable percentage shall be 135 percent reduced by 1.35 percentage points
for each quarter of coverage of the qualified individual less than 140.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id65960D463D5A446B97938A8A83B2D16D" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">In the case of an individual who becomes
entitled to disability insurance benefits under section 223, such individual’s
primary insurance amount shall be determined without regard to paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="idC1A65E886FBE4819AAB31FD69CD6997B" section-type="subsequent-section"><enum>104.</enum><header>Tax treatment of
investment-based social security</header>
<subsection commented="no" display-inline="no-display-inline" id="IDC86A49B02F4842B2BB24ADE8BE26971F"><enum>(a)</enum><header>In
general</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID785C44FFA8B147B88950CA3780A2407F"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="idAC1D619CFE61426184EA386430080BAC" style="OLC">
<part commented="no" id="ID2BD54E92B18D4329B85683E538E297CD"><enum>IX</enum><header>Investment-based
social security </header>
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">Sec. 530A. Investment-based
social security.</toc-entry>
</toc>
<section commented="no" display-inline="no-display-inline" id="IDDB08C98A2221464C86924B881BC65D06" section-type="subsequent-section"><enum>530A.<?LEXA-Enum 530A.?></enum><header>Investment-based social security</header>
<subsection commented="no" display-inline="no-display-inline" id="ID57D7AA8A8BD44F51B2041F408B0D893C"><enum>(a)</enum><header>General
rule</header><text display-inline="yes-display-inline">The SAFE Investment Fund
and each SAFE Account are exempt from taxation under this subtitle.
Notwithstanding the preceding sentence, a personal social security savings
account is subject to the taxes imposed by section 511 (relating to imposition
of tax on unrelated business income of charitable, etc. organizations).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id9E48627A3C6345C1A554CE3650E38627"><enum>(b)</enum><header>Distributions</header>
<paragraph commented="no" display-inline="no-display-inline" id="idED1FDEF7986443DEAABF3C73D4BE317A"><enum>(1)</enum><header>Federal annuity
payment</header><text display-inline="yes-display-inline">Any Federal annuity
payment (as defined under section 254(b)(1) of the Social Security Act) shall
be treated as a social security benefit for purposes of section 86.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id811047DF7A344332AD8BA4B9391C6B4B"><enum>(2)</enum><header>Distribution of
excess assets</header><text display-inline="yes-display-inline">Any
distribution from a SAFE Account under section 254(b)(3) of the Social Security
Act shall be includible in gross income under rules under section 72.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID8F10A41DAEDD4786A6D3E6403254C81F"><enum>(c)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDC680AF9648EA4DA2B68B6EDCD57A8EFE"><enum>(1)</enum><header>SAFE
Account</header><text display-inline="yes-display-inline">The term <term>SAFE
Account</term> means an account established under section 252(a) of the
<act-name parsable-cite="SSA">Social Security Act</act-name>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDD99B0989CF6D4073874ADBB0DABD7461"><enum>(2)</enum><header>SAFE Investment
Fund</header><text display-inline="yes-display-inline">The term <term>SAFE
Investment Fund</term> means the fund established under section 253 of the
<act-name parsable-cite="SSA">Social Security
Act</act-name>.</text>
</paragraph></subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID02CA458EBA9A482F833B6FCCB22A38E9"><enum>(2)</enum><header>Clerical
amendment</header><text display-inline="yes-display-inline">The table of parts
for subchapter F of chapter 1 of such Code is amended by adding after the item
relating to part VIII the following new item:</text>
<quoted-block display-inline="no-display-inline" id="ID8AA5D9B4526048ADA06E0A70FE7FF310" style="USC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="part">Part IX. Investment-based social
security.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID689E59153A7B4C85BBA2B8E2FC63E9DB"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to taxable years beginning after December 31,
2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id5C846D2D0064414C9EBFBA082E96414C" section-type="subsequent-section"><enum>105.</enum><header>Study on use of
private annuities for SAFE account distributions</header>
<subsection commented="no" display-inline="no-display-inline" id="id89358D77430D4B799A8BF529514D74EC"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Social Security
Investment Board shall conduct a study on the use of annuities provided by
private-sector financial institutions for the distribution of SAFE account
funds under section 254 of the Social Security Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id21CAF0A2BF3547C8BD38F3827AC07877"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 3 years after the date of
the enactment of this Act, the Social Security Investment Board shall submit to
the Committee on Finance of the Senate and the Committee on Ways and Means of
the House of Representatives a report describing the results of the study under
subsection (a).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idBAC8FC69B6F547CB8399D519BBF6A4DF" section-type="subsequent-section"><enum>106.</enum><header>Study regarding
financial literacy</header>
<subsection commented="no" display-inline="no-display-inline" id="IDCBC3E075D91842738CE9A02E1690F901"><enum>(a)</enum><header>Study</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID826A39ED0E984FF5875DD6002CE89D63"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Social Security
Investment Board shall conduct a thorough study of all matters relating to
programs to increase the financial literacy of Americans.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID688D8B60E6F549DDACBDA98FAD2BC885"><enum>(2)</enum><header>Matters
studied</header><text display-inline="yes-display-inline">The matters studied
by the Social Security Investment Board shall include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID4AE9D34CE54E464295B8B9C4B136B476"><enum>(A)</enum><text display-inline="yes-display-inline">existing Federal and non-Federal financial
literacy programs, including a review and performance evaluation of such
programs;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID11C4C8B40C3740CD8D831C7F7E841C2C"><enum>(B)</enum><text display-inline="yes-display-inline">the coordination of existing Federal and
non-Federal financial education efforts; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9C69AF09130A4F09A8623BD38EEFA0AD"><enum>(C)</enum><text display-inline="yes-display-inline">ideas for new public initiatives to
increase the financial literacy of all Americans.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3C197E1D82AD499C8509A11D7EC3CE94"><enum>(b)</enum><header>Recommendations</header><text display-inline="yes-display-inline">The Social Security Investment Board shall
develop recommendations on—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID330E1BF12A08429887D370F96FCF28D2"><enum>(1)</enum><text display-inline="yes-display-inline">streamlining existing financial literacy
programs;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDF3E83CE9A9D147AA89041800C33636A1"><enum>(2)</enum><text display-inline="yes-display-inline">increasing financial literacy for all
Americans; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID02B3BC04C64044D29BEA912C70224300"><enum>(3)</enum><text display-inline="yes-display-inline">new avenues for public-private partnerships
in financial literacy.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDF60FAADE599C4F24887E906466066FB9"><enum>(c)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 6 months after the date of
the enactment of this Act, the Social Security Investment Board shall submit a
report to the President and to Congress which shall contain a detailed
statement of the findings and conclusions of the Social Security Investment
Board, together with its recommendations for such legislation and
administrative actions as it considers appropriate.</text>
</subsection></section><enum>II</enum><header>Debt-based social security</header>
<subtitle commented="no" id="idCBBE34897C484963BA82851BFED5C5C3" style="OLC"><enum>A</enum><header>Adjustments</header>
<section commented="no" display-inline="no-display-inline" id="idDD7206BEB5214568B4C8F95345D76675" section-type="subsequent-section"><enum>201.</enum><header>Modification to
retirement age</header><text display-inline="no-display-inline">Section
216(l)(1) of the Social Security Act (42 U.S.C. 416(l)(1)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idD7AD4CBB1C3E458399EDC07252B7239F"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end
of subparagraph (D);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC432AD9B1FFC41C4AF5ADEE6BDD0D85D"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>and before January 1,
2025,</quote> after <quote>December 31, 2021,</quote> in subparagraph
(E);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF973D7271FB34E09B1A114E2983AF91E"><enum>(3)</enum><text display-inline="yes-display-inline">by striking the period at the end of
subparagraph (E) and by inserting <quote>; and</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id71860377D8604EE2A73B821290611724"><enum>(4)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id555112C8B9F94E7F80B6E5870B2289D8" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="idE5A218102F0B447C9F58DB7709619E9E"><enum>(F)</enum><text display-inline="yes-display-inline">with respect to an individual who attains
early retirement age after December 31, 2024, 68 years of
age.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id668B27849B064654A9478D8EBBDE4CF8" section-type="subsequent-section"><enum>202.</enum><header>Modification of PIA
factors to reflect changes in life expectancy</header><text display-inline="no-display-inline"><external-xref legal-doc="act" parsable-cite="SSA/215(a)(1)">Section 215(a)(1)</external-xref>
of the <act-name parsable-cite="SSA">Social Security Act</act-name>
(<external-xref legal-doc="usc" parsable-cite="usc/42/415(a)(1)(B)">42 U.S.C.
415(a)(1)(B)</external-xref>) is amended by redesignating subparagraph (D) as
subparagraph (F) and by inserting after subparagraph (C) the following:</text>
<quoted-block act-name="Social Security Act" display-inline="no-display-inline" id="ID7AB5A768517C4FF38EB02362B014694F" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="IDFC47FE7761EB4EEF9F75945D00BB76DF" indent="up2"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="ID2EB17960F1D2488AAB9EC171FDA5AD29"><enum>(i)</enum><text display-inline="yes-display-inline">For individuals who initially become
eligible for old-age insurance benefits in any calendar year after 2025, each
of the percentages under clauses (i), (ii), and (iii) of subparagraph (A) shall
be multiplied by the applicable factor for such year with respect to each year
after 2025 and before the year following the year of initial
eligibility.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id07252B09514E49D8B4B137B35A8D4A4F" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">For purposes of clause (i), the term
<term>applicable factor</term> means the actuarial number, expressed as a
percentage and determined by the Commissioner of Social Security after taking
into account the actuarial reduction under section 202(q) (without regard to
the amendments made by section 203 of the <short-title>Saving Social Security Act of 2008</short-title>),
representing the historical increase in longevity of life for the most recent
year.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDB255775794E743FBAA8200AEFDD29CE5" indent="up2"><enum>(E)</enum><text display-inline="yes-display-inline">For any individual who initially becomes
eligible for disability insurance benefits in any calendar year after 2025, the
primary insurance amount for such individual shall be equal to the greater
of—</text>
<clause commented="no" display-inline="no-display-inline" id="ID0CEAE8FFBF57482B84A06E2B3E2035C9"><enum>(i)</enum><text display-inline="yes-display-inline">such amount as determined under this
paragraph, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID3F94B2ADB5364F8FA42561F79400B3A4"><enum>(ii)</enum><text display-inline="yes-display-inline">such amount as determined under this
paragraph without regard to subparagraph (D)
thereof.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="idE1D7D348171F4C10AC6153D4F0728FF7" section-type="subsequent-section"><enum>203.</enum><header>Actuarial adjustment
for retirements</header>
<subsection commented="no" display-inline="no-display-inline" id="ID656AC934C30B497180D4AEB2861BF303"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline"><external-xref legal-doc="act" parsable-cite="SSA/202(q)">Section 202(q)</external-xref> of
the <act-name parsable-cite="SSA">Social Security Act</act-name>
(<external-xref legal-doc="usc" parsable-cite="usc/42/402(q)">42 U.S.C.
402(q)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID3FC2380E856C49BDAA99EAF2BD38E09B"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)(A), by striking
<quote><fraction>5/9</fraction></quote> and inserting <quote>the applicable
old-age benefit fraction (determined under paragraph (12)(A))</quote>, and by
striking <quote><fraction>25/36</fraction></quote> and inserting <quote>the
applicable spousal benefit fraction (determined under paragraph
(12)(B))</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3684CB39E5604588ABF8DD88D23CB4A8"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="IDBDDABC3A9C824F378150DD004A85BE1D" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="IDB42FBC4FD58A47EFA39AD6AC91F76B06" indent="up1"><enum>(12)</enum><text display-inline="yes-display-inline">For purposes of paragraph (1)(A)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID47FD210B07C742B08838DFB2F391BB69"><enum>(A)</enum><text display-inline="yes-display-inline">the <quote>applicable old-age benefit
fraction</quote> for an individual who attains the age of 62 in—</text>
<clause commented="no" display-inline="no-display-inline" id="ID8AA0DA3EDC454B33AED7C0C4AC0C729D"><enum>(i)</enum><text display-inline="yes-display-inline">any year before 2026, is
<fraction>5/9</fraction>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID754A3C83997F4C1D8DD8A91945FB544D"><enum>(ii)</enum><text display-inline="yes-display-inline">2026, is <fraction>7/12</fraction>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID1EB0BD057AE44082B2E399CEEC7DFDEE"><enum>(iii)</enum><text display-inline="yes-display-inline">2027, is <fraction>11/18</fraction>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID9482EC77142C4B92819E7AAC63E23586"><enum>(iv)</enum><text display-inline="yes-display-inline">2028, is <fraction>23/36</fraction>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID1ACE31C98DBB4FFA85F1EAAA0C3FD813"><enum>(v)</enum><text display-inline="yes-display-inline">2029, is <fraction>2/3</fraction>;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID4408724F1A524435B8A2CE712CCFA66E"><enum>(vi)</enum><text display-inline="yes-display-inline">2030 or any succeeding year, is
<fraction>25/36</fraction>; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDA8861E1C1F074162ACFC778A927227B1"><enum>(B)</enum><text display-inline="yes-display-inline">the <quote>applicable spousal benefit
fraction</quote> for an individual who becomes eligible for wife’s or husband’s
insurance benefits in—</text>
<clause commented="no" display-inline="no-display-inline" id="ID43FEBBB5B1BB41ED9D0E40CA7B235093"><enum>(i)</enum><text display-inline="yes-display-inline">any year before 2026, is
<fraction>25/36</fraction>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDAE612C6904DF4011A39C005900EB5282"><enum>(ii)</enum><text display-inline="yes-display-inline">2026, is <fraction>13/18</fraction>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID2AB2A2817798494EA46BAA12D3CAAD95"><enum>(iii)</enum><text display-inline="yes-display-inline">2027, is <fraction>27/36</fraction>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDC1657F6DF81E47BF9EF77E0B118397B8"><enum>(iv)</enum><text display-inline="yes-display-inline">2028, is <fraction>7/9</fraction>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID188F1EE456004CB5926998CACE1FDEB0"><enum>(v)</enum><text display-inline="yes-display-inline">2029, is <fraction>29/36</fraction>;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID6E141EBCDA9849B588B96E97E50898E9"><enum>(vi)</enum><text display-inline="yes-display-inline">2030 or any succeeding year, is
<fraction>5/6</fraction>.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDB763D8A53CCA4C03A15020E817BB8B42"><enum>(b)</enum><header>Months beyond
first 36 months</header><text display-inline="yes-display-inline">Section
202(q) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/402(q)(9)">42 U.S.C. 402(q)</external-xref>) (as amended
by subsection (a)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID846AA62C7A60478A86DD1C72904C4CE5"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (9)(A), by striking
<quote>five-twelfths</quote> and inserting <quote>the applicable fraction
(determined under paragraph (13))</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9A3096EFE84D49298CC58A66CAD3285E"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="ID745423D125BE4C4783D1B04556BC6EDC" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID08E4D944D4ED4513B5F0C5F9AA5A97DD" indent="up1"><enum>(13)</enum><text display-inline="yes-display-inline">For purposes of paragraph (9)(A), the
<quote>applicable fraction</quote> for an individual who becomes eligible for
old-age, wife’s, or husband’s insurance benefits in—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID0FF668891FC8481A8D85CBD0D5877C8E"><enum>(A)</enum><text display-inline="yes-display-inline">any year before 2026, is
<fraction>5/12</fraction>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID608B11890C2F4D53AA47734C6E8C8101"><enum>(B)</enum><text display-inline="yes-display-inline">2026, is <fraction>16/36</fraction>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDCA9AE0F0ACDF47D28E1594FEF0E4C9EA"><enum>(C)</enum><text display-inline="yes-display-inline">2027, is <fraction>16/36</fraction>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID6C036F50B52C4C08905E7BBCF4486A12"><enum>(D)</enum><text display-inline="yes-display-inline">2027, is <fraction>17/36</fraction>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDFCD6C70852AE4468A1D8CD0932E10A9C"><enum>(E)</enum><text display-inline="yes-display-inline">2028, is <fraction>17/36</fraction>;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0764F8C4EE6248B18407947686729046"><enum>(F)</enum><text display-inline="yes-display-inline">2029 or any succeeding year, is
<fraction>1/2</fraction>.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID6B2CFA69C37F4A0EAEFBB6173FE70D84"><enum>(c)</enum><header>Eligibility</header><text display-inline="yes-display-inline">Section 202(q) of such Act (as amended by
the preceding provisions of this section) is amended further by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="ID6356C71E7EE84040B71CC8F287BA0CEC" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID5AC3B25DE5B342868CCB7FB5B0CED9FD" indent="up1"><enum>(14)</enum><text display-inline="yes-display-inline">For purposes of this subsection, an
individual shall be deemed eligible for a benefit for a month if, upon filing
application therefor in such month, such individual would be entitled to such
benefit for such
month.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID5BC827B488714FE6B2485B187DD77231"><enum>(d)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall apply to individuals who, in connection with old-age,
wife’s, and husband’s insurance benefits under title II of the
<act-name parsable-cite="SSA">Social Security Act</act-name>, become eligible
for such benefits (within the meaning of section 202(q)(14) of such Act (as
amended by this subsection)) in years after 2025.</text>
</subsection></section></subtitle><subtitle commented="no" id="id2AF8289DBE37479F87FAD298315845D6" style="OLC"><enum>B</enum><header>Maintenance of social security trust
funds</header>
<section commented="no" display-inline="no-display-inline" id="id2BD721D6CBEF4B8BAD0D586C8A395005" section-type="subsequent-section"><enum>211.</enum><header>Maintenance of
adequate balances in the social security trust funds</header>
<subsection commented="no" display-inline="no-display-inline" id="ID474d34b9fc734b37b281756e90465311"><enum>(a)</enum><header>In
General</header><text display-inline="yes-display-inline">Section 201 of the
Social Security Act (42 U.S.C. 401) is amended by adding at the end the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="idEEDCBCADE2554A328E5598E6C5D11326" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="ID7e2f13d7b4ab466bb02f9287db06775b"><enum>(o)</enum><text display-inline="yes-display-inline">In addition to amounts otherwise
appropriated under the preceding provisions of this section to the Trust Funds
established under this section, there is hereby appropriated for each fiscal
year to each of such Trust Funds, from amounts in the general fund of the
Treasury not otherwise appropriated, such sums as may be necessary from time to
time to maintain the balance ratio (as defined in section 709(b)) of such Trust
Fund, for the calendar year commencing during such fiscal year, at not less
than 100 percent. The sums to be appropriated under the preceding sentence
shall be determined by the Commissioner of Social Security and certified by the
Commissioner to each House of the Congress not later than October 1 of such
fiscal year. In making such determination and certification, the Commissioner
shall use the intermediate actuarial assumptions used by the Board of Trustees
of the Trust Funds in its most recent annual report to the Congress prepared
pursuant to subsection (c)(2). The Commissioner 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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID2f1b111659644b0786f47f7ac53f5f6c"><enum>(b)</enum><header>Effective
Date</header><text display-inline="yes-display-inline">The amendment made by
subsection (a) shall apply with respect to fiscal years beginning after the
date of the enactment of this Act.</text>
</subsection></section></subtitle>