Home > 106th Congressional Bills > H.R. 3178 (ih) To amend the Internal Revenue Code of 1986 to make the dependent care credit refundable and to provide for advance payments of such credit. [Introduced in House] ...H.R. 3178 (ih) To amend the Internal Revenue Code of 1986 to make the dependent care credit refundable and to provide for advance payments of such credit. [Introduced in House] ...
shall be made upon the establishment of the spouse's
individual social security account.
``(B) Revocation of status by spouse.--A spouse who
is deemed an eligible individual under subparagraph (A)
may, during the 540-day period beginning on the date of
the account owner's death, revoke his or her status as
an eligible individual in a form and manner which shall
be prescribed in regulations of the Board. Upon such a
revocation, the spouse's individual social security
account shall be closed and any amounts theretofore
deposited in the account shall be distributed, among
all individuals who are potential beneficiaries
(including the spouse) under section 202 based on the
wages and self-employment income of the deceased
account owner, in the same manner as is provided for
distributions from the deceased account owner's account
under subsection (a).
``(c) Treatment of Account Balance in the Absence of Surviving
Potential Beneficiaries.--In any case in which, upon the account
holder's death, no distribution from the account holder's individual
social security account is provided for under subsection (a) or (b),
the balance in the account shall be distributed to the estate of the
account owner.
``(d) Bar on Other Recoveries.--A payment made in accordance with
subsection (a) shall bar any other recovery by the individual receiving
the payment and any other individual.
``treatment of account balances and annuities
``Sec. 262. For purposes of this part, amounts held in individual
social security accounts and annuities payable under section 261 shall
be treated as the personal property of the account owners and
annuitants, respectively, and shall be held in trust by the Board for
the account owners and annuitants, respectively.
``fiduciary responsibilities
``Sec. 263. (a) In General.--Under regulations of the Secretary of
Labor, the provisions of sections 8477 and 8478 of title 5, United
States Code, shall apply in connection with the Savings Fund and the
individual social security accounts maintained in such Fund in the same
manner and to the same extent as such provisions apply in connection
with the Thrift Savings Fund and accounts maintained in the Thrift
Savings Fund.
``(b) Investigative Authority.--Any authority available to the
Secretary of Labor under section 504 of the Employee Retirement Income
Security Act of 1974 is hereby made available to the Secretary of
Labor, and any officer designated by the Secretary of Labor, to
determine whether any person has violated, or is about to violate, any
provision applicable under subsection (a).
``(c) Exculpatory Provisions; Insurance.--
``(1) In general.--Any provision in an agreement or
instrument which purports to relieve a fiduciary from
responsibility or liability for any responsibility, obligation,
or duty under this part shall be void.
``(2) Insurance.--Amounts in the Savings Fund available for
administrative expenses shall be available and may be used at
the discretion of the Board to purchase insurance to cover
potential liability of persons who serve in a fiduciary
capacity with respect to the Fund and individual social
security accounts maintained therein, without regard to whether
a policy of insurance permits recourse by the insurer against
the fiduciary in the case of a breach of a fiduciary
obligation.''.
(b) Conforming Amendments and Rule of Construction.--
(1) Conforming amendments.--
(A) The Social Security Act is amended--
(i) in part A of title II (as redesignated
by subsection (a)), by striking ``this title''
each place it appears and inserting ``this
part'';
(ii) by striking ``title II'' each place it
appears (except in sections 1110(a)(3),
1129A(d)(2), 1136(g), 1147(a)(1),
1148(h)(4)(A), 1148(j)(1)(A), 1148(k),
1612(b)(8), and 1613(a)(10)) and inserting
``part A of title II'';
(iii) by striking ``title II or XVI'' each
place it appears in sections 1110(a)(3),
1129A(d)(2), and 1136(g) and inserting ``part A
of title II or title XVI''; and
(iv) by striking ``title II or VIII'' in
section 1147(a)(1) and inserting ``part A of
title II or title VIII''.
(B) The Internal Revenue Code of 1986 is amended by
striking ``title II'' each place it appears (except in
sections 142(h)(1), 410(b)(3)(B), 451(d), 912(1)(C),
and 912(2)) and inserting ``part A of title II''.
(C) The Railroad Retirement Act of 1974 is amended
by striking ``title II'' each place it appears (except
in sections 15(a) and 19(c)(3)) and inserting ``part A
of title II''.
(2) Rule of construction.--In each provision of Federal law
(other than provisions amended or added by the amendments made
by this Act), any reference to title II of the Social Security
Act shall be deemed a reference to part A of title II of such
Act (as redesignated by subsection (a)).
SEC. 4. CONFORMING ADJUSTMENTS TO MONTHLY INSURANCE BENEFITS.
(a) In General.--Part A of title II of the Social Security Act (as
amended by section 3 of this Act) is amended by adding after section
234 the following new section:
``part b offsets to monthly insurance benefits
``Benefit Reductions
``Sec. 235. (a) Notwithstanding the preceding provisions of this
part, for purposes of determining any benefit under this part for any
month based on the wages and self-employment income of an individual
who is an eligible individual under part B, the Executive Director
appointed under section 253 shall determine and certify to the
Commissioner of Social Security the total amount of monthly payments
which would be payable for such month under part B, from amounts in the
Social Security Savings Fund allocated to such individual's individual
social security account, in the distribution of amounts not in excess
of such individual's distribution base, if the investment in stock of
amounts allocated to such account had been invested solely under the
Standard Option described in section 258(c)(2) and solely in accordance
with the Standard Mix under section 258(b). Such determination shall be
made, irrespective of the extent to which such amounts may have been
invested under the Small Capitalization Option or Medium Capitalization
Option described in section 258(e)(2) or a variance from the Standard
Mix may have been elected under section 258(e)(4). The Commissioner
shall reduce such benefit by the amount of the applicable part B offset
in connection with such individual applicable to such benefit.
``Applicable Part B Offset
``(b)(1) For purposes of subsection (a), the applicable part B
offset is--
``(A) in the case of a benefit based on the wages and self-
employment income of an individual born on or after January 1,
1981, the full part B offset in connection with such individual
allocable to such benefit, determined under paragraph (2), or
``(B) in the case of a benefit based on the wages and self
employment income of an individual born before January 1, 1981,
the reduced part B offset in connection with such individual
allocable to such benefit, determined under paragraph (3).
``(2) For purposes of paragraph (1)(A), the full part B offset in
connection with an individual allocable to a monthly insurance benefit
under this part is the portion of the total amount of monthly payments
payable for such month under part B in the distribution of amounts not
in excess of such individual's distribution base which bears the same
ratio to such total amount as the amount of such benefit bears to the
total of benefits payable for such month under this part on the basis
of such individual's wages and self-employment income.
``(3)(A) For purposes of paragraph (1)(B) the reduced part B offset
in connection with an individual allocable to a monthly insurance
benefit under this part is the product derived by multiplying--
``(i) the portion of the total amount described in
subsection (a) which would be payable for such month under part
B in the distribution of amounts not in excess of such
individual's distribution base which bears the same ratio to
such total amount as the amount of such benefit bears to the
total of benefits payable for such month under this part on the
basis of such individual's wages and self-employment income, by
``(ii) the reduction factor determined under subparagraph
(B) in connection with such individual.
``(B) The reduction factor determined under this subparagraph, in
connection with any individual, is the excess of--
``(i) 1, over
``(ii) the product derived by multiplying--
``(I) 0.0033\1/3\, by
``(II) the number of calendar years during the
period beginning with the calendar year in which such
individual was born and ending with calendar year
1980.''.
(b) Effective Date.--The amendment made by this section shall apply
with respect to benefits for months after November 2004.
SEC. 5. MAINTENANCE OF ADEQUATE BALANCES IN THE SOCIAL SECURITY TRUST
FUNDS.
(a) In General.--Section 201 of the Social Security Act (42 U.S.C.
401) is amended by adding at the end the following new subsection:
``(n) 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.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to fiscal years beginning after the date of the
enactment of this Act.
SEC. 6. TAXATION OF INDIVIDUAL SOCIAL SECURITY ACCOUNT PROGRAM.
(a) In General.--Subchapter F of chapter 1 of the Internal Revenue
Code of 1986 (relating to exempt organizations) is amended by adding at
the end the following new part:
``PART IX--INDIVIDUAL SOCIAL SECURITY ACCOUNT PROGRAM
``Sec. 531. Social Security Personal
Savings Fund and individual
social security accounts.
``SEC. 531. SOCIAL SECURITY PERSONAL SAVINGS FUND AND INDIVIDUAL SOCIAL
SECURITY ACCOUNTS.
``(a) Exemption From Tax.--The Social Security Personal Savings
Fund, and each individual social security account, is exempt from
taxation under this subtitle. Notwithstanding the preceding sentence,
such Fund and accounts are subject to the taxes imposed by section 511
(relating to imposition of tax on unrelated business income of
charitable, etc. organizations).
``(b) Distributions From Individual Social Security Accounts.--
``(1) Distributions on account of death.--Any distribution
from an individual social security account on account of the
death of the account owner shall not be includible in gross
income.
``(2) Income inclusion as social security benefits.--
``For treatment of certain
distributions as social security benefits, see section 86.
``(c) Individual Social Security Accounts.--For purposes of this
section, the term `individual social security account' means an account
established under section 256 of the Social Security Act.''.
(b) Distributions Taxed as Social Security Benefit.--Paragraph (1)
of section 86(d) of such Code (defining social security benefit) is
amended by striking ``or'' at the end of subparagraph (A), by
redesignating subparagraph (B) as subparagraph (C), and by inserting
after subparagraph (A) the following new subparagraph:
``(B) a distribution under section 260 of the
Social Security Act, or''.
(c) Conforming Amendment.--The table of parts for Subchapter F of
chapter 1 of such Code is amended by adding at the end the following
new item:
``Part IX. Individual social security
account program.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
SEC. 7. REPORT ON PRIVATE SECTOR INVESTMENT AND MANAGEMENT.
(a) Study.--As soon as practicable after the date of the enactment
of this Act, the Social Security Advisory Board shall undertake a study
of the manner and extent to which, upon attainment of balances in
individual social security accounts sufficient to minimize the
administrative costs involved, investment of amounts held in such
accounts may be managed in the private sector by approved account
managers. In carrying out the study, the Advisory Board shall consult
with such public and private entities as it deems necessary and
appropriate.
(b) Report.--Not later than 5 years after the date of the enactment
of this Act, the Social Security Advisory Board shall report to each
House of the Congress and to the President the results of the study
required under subsection (a). Such report shall include such
recommendations for administrative and legislative changes as the Board
may consider appropriate.
SEC. 8. MAINTENANCE OF CURRENT LEVELS OF FICA AND SECA TAXES.
Nothing in this Act shall be construed to affect the levels of
taxes under chapter 21 of the Internal Revenue Code of 1986 (the
Federal Insurance Contributions Act) or chapter 2 of such Code (the
Self-Employment Contributions Act of 1954).
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