[Congressional Record Volume 145, Number 72 (Tuesday, May 18, 1999)]
[Extensions of Remarks]
[Page E1004]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       1999 STUDENT CONGRESSIONAL COUNCIL BILL ON SOCIAL SECURITY

                                 ______
                                 

                           HON. RALPH REGULA

                                of ohio

                    in the house of representatives

                         Tuesday, May 18, 1999

  Mr. REGULA. Mr. Speaker, on March 9, 1999 the 1999 Student 
Congressional Council in my district passed a bill that proposes to 
strengthen Social Security for years to come. I feel privileged to have 
sponsored this student group and I am especially impressed with the 
students' diligent work in creating this bill. I believe Congress can 
learn from their example by likewise working together to tackle this 
difficult issue.
  I hereby submit the attached 1999 Student Congressional Council Bill 
on Social Security into the Congressional Record.

Bill Passed by the 1999 Student Congressional Council on March 9, 1999. 
Event Sponsored by U.S. Representative Ralph Regula, 16th District-Ohio


                       Bill Summary--Committee A

       The basic concept of this bill is to individualize a 
     portion of Social Security while keeping at least half of it 
     completely governmental. The individualized portion will 
     serve to stimulate the American economy, lead to a general 
     higher-than-present public understanding of investment, and 
     grant more independence to employees with the money that they 
     have rightfully earned. Employees will be able, with 
     education and limitations provided by the company, to invest 
     in endeavors such as stocks, funds, IRAs, and the government, 
     in order to increase their playback while lessening the load 
     on Social Security. The bill also provides for a check-and-
     balance system between the companies and employees, and 
     encourages cooperation among these and the government. The 
     employees have the ability to cause the companies to lose 
     benefits if they are unsatisfied, and the companies have the 
     ability to limit the investment of the employees. Under this 
     bill, money is provided for the Social Security fund by the 
     budget surplus, less stress on the money resulting from less 
     money in the actual Security fund by the budget surplus, less 
     stress on the money resulting from less money in the actual 
     Security fund, and, in cases, the ``matching-the-employees 
     investments'' of companies. The bill also provides for 
     changes that may result from financial crisis, economic 
     slumps, and/or corporate dilemmas, if not addressed by the 
     bill (which many are), then as designated by new amendments, 
     law, or judicial review.
       Introduced by: Committee A, Central Catholic High School, 
     Canton, Ohio, GlenOak High School, N. Canton, Ohio, Jackson 
     High School, Massillon, Ohio, and Minerva High School, 
     Minerva, Ohio.
       1. Over the next twenty years (1999-2019), an amount of 
     each year's gross national budget surplus equal to the higher 
     of 50% of the surplus or forty-four billion three hundred 
     million dollars will be allotted to the Social Security pool 
     of finance. This investment will provide a foundation for and 
     complement to the near-future implementation of Social 
     Security funds. All mentioned money will be placed into an 
     exclusive Social Security fund.
       II. The money currently allotted for Social Security on 
     each American citizen worker's income will be hereafter 
     dubbed ``The Security and Investment Plan.''
       A. The S&I Plan will divide current Social Security 
     allotments into two parts: an unchanged Social Security fund 
     and a Long-term Investment Allocation.
       1. Social Security fund
       a. The money under this account will be monitored and 
     administered as it is in the current system as of the 
     nineteenth of February 1999.
       b. The money under this account must represent at least 
     fifty percent of the S&I money.
       2. Long-term Investment Allocations
       a. The LTIA will be money that has the opportunity to 
     increase at a rate that will produce more money in the long 
     run than the regular Social Security fund. It will also run 
     than the regular Social Security fund. It will also stimulate 
     the American economy via individual investment in US 
     interests.
       b. This money will be monitored by each company and 
     reported to the Congressional Ways and Means Social Security 
     Subcommittee annually for reference.
       c. This money is in the control of the individual who has 
     the option to surrender its control to the company to invest 
     as it sees fit or to monitor it individually.
       Individual Investment
       i. The employing company will provide access to employees 
     as to the status of the questioning employee's money. This 
     access may be via computer network or server, the Internet, 
     telephone, and/or other mediums. This access may be either 
     inherent in the privileges of the employee or granted upon 
     request and approval through a superior or other employee 
     or employer.
       ii. The employing company will provide employees with 
     investment education.
       iii. The employing company may place limits on employee 
     investment such as the restriction of certain forms of 
     investment, certain risk-levels of investments, and/or 
     simultaneous sums of investment transactions.
       iv. If an employee subscribed under the LTIA option has a 
     reason agreed by the employing company and employee to be a 
     situation or plausible cause for a situation of extreme need 
     for the invested money, the employee may withdraw the LTIA 
     funds before the designated time of retirement with a ten 
     percent penalty to be paid to Social Security.
       III. Employing companies will be given the option to 
     establish a Security and Investments Plan.
       A. The employing must demonstrate competent use of the 
     plan. If less than twenty-five percent of the company's 
     employees are not participating in the LTIA option of the S&I 
     Plan, the company will no longer be considered eligible for 
     the plan.
       B. There will be incentives for companies to subscribe 
     under the S&I Plan.
       1. An overall four tenths of a percent tax cut for the 
     first twelve months of the S&I incorporation and two tenths 
     of a percent for each year of incorporation thereafter.
       2. The company may choose to match each worker's choice of 
     LTIA investment with an equal investment in the interest of 
     Social Security. In this case, the tax cuts will be raised to 
     five tenths of a percent and three tenths of a percent 
     receptively.
       3. Corporate brokerage firms who aid companies in organized 
     investment of the LTIA funds will be granted a one-hundredth 
     of a percent overall tax cut.
       IV. this bill may be altered or amended as the law-making 
     processes of the Untied States deem proper and necessary to 
     the improvement of the plan without destabilizing the basic 
     tenets of the bill.
       V. If an individual's employing company is not a member of 
     the S&I Plan, then that individual may, through an 
     application process determined by an S&I company, apply to 
     become involved in that company's S&I plan without becoming 
     an employee of that company. However, that individual will 
     have to pay a maximum of 10% in commission to the company.

     

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