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S. 1878 (108th): Social Security Solvency and Modernization Act of 2003

The text of the bill below is as of Nov 18, 2003 (Introduced).


S 1878 IS

108th CONGRESS

1st Session

S. 1878

To amend title II of the Social Security Act to preserve and strengthen the Social Security program through the creation of personal retirement accounts funded by employer and employee Social Security payroll deductions, to restore the solvency of the old-age survivors, and disability insurance programs, and for other purposes.

IN THE SENATE OF THE UNITED STATES

November 18, 2003

Mr. GRAHAM of South Carolina introduced the following bill; which was read twice and referred to the Committee on Finance


A BILL

To amend title II of the Social Security Act to preserve and strengthen the Social Security program through the creation of personal retirement accounts funded by employer and employee Social Security payroll deductions, to restore the solvency of the old-age survivors, and disability insurance programs, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘Social Security Solvency and Modernization Act of 2003’.

    (b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

      Sec. 1. Short title; table of contents.

TITLE I--PERSONAL RETIREMENT ACCOUNTS

Subtitle A--Amendments Related to Title II of the Social Security Act

      Sec. 101. Personal retirement accounts.

      Sec. 102. CPI-indexed benefits for part B eligible individuals not in supplemental contribution coverage.

      Sec. 103. Adjustments to primary insurance amounts under part A of title II of the Social Security Act for eligible individuals with personal retirement accounts.

      Sec. 104. Minimum social security benefit.

      Sec. 105. Treatment of disabled beneficiaries.

Subtitle B--Amendments Related to the Internal Revenue Code of 1986

      Sec. 111. Modification of FICA rates.

      Sec. 112. Matching contributions.

      Sec. 113. Tax treatment of personal retirement accounts.

TITLE II--SOCIAL SECURITY FINANCIAL SUSTAINABILITY

Subtitle A--Commission on the Review of Federal Agencies and Programs

      Sec. 201. Establishment of commission.

      Sec. 202. Duties of the commission.

      Sec. 203. Powers of the commission.

      Sec. 204. Commission personnel matters.

      Sec. 205. Congressional consideration of reform proposals.

      Sec. 206. Transfer of 1.25 percent of taxable payroll to social security.

      Sec. 207. Authorization of appropriations.

Subtitle B--Other Sustainability Provisions

      Sec. 211. Reduction in the amount of certain transfers to medicare trust fund.

      Sec. 212. Mechanism for remedying unforeseen deterioration in social security solvency.

TITLE III--ADJUSTMENTS FOR WIDOWS’ AND WIDOWERS’ INSURANCE BENEFITS

      Sec. 301. Adjustments for widows’ and widowers’ insurance benefits.

TITLE IV--INVESTOR EDUCATION PROGRAMS

      Sec. 401. Establishment of the commission to strengthen financial education programs.

      Sec. 402. Duties of the commission.

      Sec. 403. Powers of the commission.

      Sec. 404. Commission personnel matters.

      Sec. 405. Termination of the commission.

      Sec. 406. Authorization of appropriations.

TITLE I--PERSONAL RETIREMENT ACCOUNTS

Subtitle A--Amendments Related to Title II of the Social Security Act

SEC. 101. PERSONAL RETIREMENT ACCOUNTS.

    (a) ESTABLISHMENT AND MAINTENANCE OF PERSONAL RETIREMENT ACCOUNTS- Title II of the Social Security Act (42 U.S.C. 401 et seq.) is amended--

      (1) by inserting before section 201 the following:

‘Part A--Insurance Benefits’;

      and

      (2) by adding at the end the following:

‘Part B--Personal Retirement Accounts

‘PERSONAL RETIREMENT ACCOUNTS

    ‘SEC. 251. (a) ESTABLISHMENT-

      ‘(1) IN GENERAL- Within 30 days after receiving the first contribution under subsection (b) with respect to an eligible individual, the Personal Retirement Account Board shall establish a federally-administered personal retirement account for such individual in the Personal Retirement Account Fund. Each account shall be identified to the account holder by means of the account holder’s social security account number.

      ‘(2) ELIGIBLE INDIVIDUAL- For purposes of this part, the term ‘eligible individual’ means any individual born after December 31, 1949.

    ‘(b) CONTRIBUTIONS-

      ‘(1) AMOUNTS TRANSFERRED FROM THE TRUST FUND- The Secretary of the Treasury shall transfer from the Federal Old-Age and Survivors Insurance Trust Fund, for crediting by the Personal Retirement Account Board to the personal retirement account of an eligible individual, an amount equal to the sum of any amount received by the Secretary on behalf of such individual under section 3101(a)(2) or 1401(a)(2) of the Internal Revenue Code of 1986.

      ‘(2) OTHER CONTRIBUTIONS- For provisions relating to additional contributions credited to personal retirement accounts, see section 6402(l) of the Internal Revenue Code of 1986.

    ‘(c) CREDITING REQUIREMENTS- Except as otherwise provided in section 253, contributions under subsection (b) on behalf of an eligible individual shall be credited--

      ‘(1) to the personal retirement account established for such individual under subsection (a); and

      ‘(2) in accordance with the allocation in effect with respect to such individual under subsection (d).

    ‘(d) ALLOCATION AND OTHER DESIGNATIONS-

      ‘(1) IN GENERAL- Not later than June 1, 2005, the Personal Retirement Account Board shall prescribe regulations in accordance with which, once per year, any eligible individual who is employed or self-employed may designate--

        ‘(A)(i) the fund or funds to which such individual wishes to have such individual’s contributions under subsection (b) credited; and

        ‘(ii) if such individual designates more than 1 fund under clause (i), how such individual wishes for those contributions to be allocated; and

        ‘(B) the amount of wages or self-employment income such individual wishes to designate for purposes of section 3101(a)(2)(B) or 1401(a)(2)(B) of the Internal Revenue Code of 1986 (as applicable), if any.

      ‘(2) DEFAULT ALLOCATION- In the absence of a required designation under paragraph (1)(A), contributions on behalf of the eligible individual involved

shall be allocated to the medium-risk balanced index fund described in section 261(b)(1)(B).

      ‘(3) FORM OF DESIGNATION- Any designation under paragraph (1) shall be made in such manner as the Personal Retirement Account Board may prescribe in order to ensure ease of administration and to avoid creating an undue burden on employers.

    ‘(e) PERIODIC STATEMENTS AND ACCOUNT INFORMATION-

      ‘(1) IN GENERAL- The Personal Retirement Account Board shall prescribe regulations under which each eligible individual for whom a personal retirement account is maintained under this section shall be furnished with--

        ‘(A) an annual statement relating to such individual’s account, including, for any reporting period as of the end of which such individual’s account balance is at least equal to the minimum balance amount (within the meaning of section 253), clear and conspicuous notice to that effect;

        ‘(B) a summary description of any investment options or other choices which may be available to such individual under this part; and

        ‘(C) any forms and information necessary to make a designation under subsection (d) or section 253 (as applicable).

      ‘(2) ACCOUNT ACCESS- The Personal Retirement Account Board shall prescribe regulations under which eligible individuals may obtain account information through--

        ‘(A) the Internet; and

        ‘(B) an automatic calling system.

‘PERSONAL RETIREMENT ACCOUNT ELECTION

    ‘SEC. 252. (a) IN GENERAL-

      ‘(1) ELECTION- Not later than the date on which an eligible individual attains the age of 26, such individual shall elect--

        ‘(A) a personal retirement account; or

        ‘(B) part A coverage only.

      Any election made under this paragraph shall be irrevocable.

      ‘(2) SPECIAL RULES-

        ‘(A) INDIVIDUALS BORN BEFORE JANUARY 1, 1979- In the case of an eligible individual born before January 1, 1979, the election under paragraph (1) shall be made not later than September 30, 2005.

        ‘(B) OTHER INDIVIDUALS- In the case of any eligible individual to whom subparagraph (A) or paragraph (1) does not apply, the Personal Retirement Account Board shall prescribe regulations regarding the election under paragraph (1).

      ‘(3) NO ELECTION- If an eligible individual has not made an election under this subsection such individual shall be deemed to have elected a personal retirement account.

      ‘(4) EFFECTIVE DATE OF ELECTION-

        ‘(A) IN GENERAL- Except as provided in subparagraph (B), any election made under this section shall be effective on the date that is 60 days after which such election is made.

        ‘(B) INDIVIDUALS BORN BEFORE JANUARY 1, 1979- Any election made pursuant to paragraph (2)(A) shall be effective on January 1, 2006.

    ‘(b) PERSONAL RETIREMENT ACCOUNT- In the case of any eligible individual who elects a personal retirement account, the Personal Retirement Account Board shall maintain the personal retirement account established under section 251 for such individual in accordance with the requirements of this part.

    ‘(c) PART A COVERAGE-

      ‘(1) IN GENERAL- In the case of any eligible individual who elects part A coverage only--

        ‘(A) such individual shall be covered under part A of this title only and shall not have a personal retirement account; and

        ‘(B) the Chairman shall transfer any amount in such individual’s personal retirement account--

          ‘(i) to an individual retirement account (within the meaning of section 408 of the Internal Revenue Code of 1986) established for the benefit of such individual; or

          ‘(ii) at the election of such individual under regulations established by the Chairman, to an existing individual retirement account of such individual.

      ‘(2) FURTHER ELECTION- An eligible individual who elects part A coverage only shall make a further election of--

        ‘(A) basic benefit coverage under part A (as amended by section 102 of the Social Security Solvency and Modernization Act of 2003); or

        ‘(B) supplemental contribution coverage.

      ‘(3) SUPPLEMENTAL CONTRIBUTION COVERAGE OASDI TAX RATE- For the old-age, survivors, and disability insurance tax rate for eligible individuals who select the supplemental contribution coverage under paragraph (2), see section 3101(a)(1)(B)(iii) of the Internal Revenue Code of 1986.

      ‘(4) BASIC BENEFIT COVERAGE PIA AMOUNT- For the primary insurance amount under part A for eligible individuals who select basic benefit coverage, see section 215(a)(1)(B)(iii).

‘PRIVATELY-ADMINISTERED PERSONAL RETIREMENT ACCOUNTS

    ‘SEC. 253. (a) DEFINITIONS- For purposes of this part--

      ‘(1) MINIMUM DEPOSIT AMOUNT- The term ‘minimum deposit amount’ means an amount equal to $10,000.

      ‘(2) PERSONAL RETIREMENT ACCOUNT- The term ‘personal retirement account’ means a federally administered personal retirement account and a privately-administered personal retirement account.

      ‘(3) FEDERALLY-ADMINISTERED PERSONAL RETIREMENT ACCOUNT- The term ‘federally-administered personal retirement account’ means a personal retirement account maintained, in accordance

with applicable provisions of this section 251, in the Personal Retirement Account Fund.

      ‘(4) PRIVATELY-ADMINISTERED PERSONAL RETIREMENT ACCOUNT- The term ‘privately-administered personal retirement account’ means a personal retirement account maintained, in accordance with applicable provisions of this section, by a certified institution.

      ‘(5) CERTIFIED INSTITUTION- The term ‘certified institution’ refers to an investment firm, credit union, insurance company, or other certified institution under subpart 3.

    ‘(b) OPTION TO DESIGNATE A PRIVATELY-ADMINISTERED PERSONAL RETIREMENT ACCOUNT-

      ‘(1) IN GENERAL- Under regulations prescribed by the Personal Retirement Account Board, whenever the balance in an eligible individual’s federally-administered personal retirement account is at least equal to the minimum deposit amount, such individual shall be eligible to designate a privately-administered personal retirement account (established and maintained on such individual’s behalf) to serve as such individual’s personal retirement account under this part, in lieu of such individual’s federally-administered personal retirement account.

      ‘(2) EFFECT OF DESIGNATION- If an eligible individual makes a designation under paragraph (1)--

        ‘(A) the entire balance in such individual’s federally-administered personal retirement account shall be promptly transferred to the privately-administered personal retirement account specified by such individual in such designation; and

        ‘(B) that privately-administered personal retirement account shall, for all purposes, be treated as the electing individual’s personal retirement account, subject to paragraph (4).

      ‘(3) INFORMATION REQUIRED TO BE INCLUDED- A designation under this subsection shall not be effective unless it is made in such time, form, and manner as the Personal Retirement Account Board prescribes.

      ‘(4) SUBSEQUENT DESIGNATIONS- The Personal Retirement Account Board shall provide by regulation opportunity for subsequent designation, once per year, of another personal retirement account in lieu of the account previously designated under this section, subject to the following:

        ‘(A) OPTIONS AVAILABLE- The account designated under this paragraph may be either within--

          ‘(i) another certified institution, subject to subparagraph (B); or

          ‘(ii) the Personal Retirement Account Fund.

        ‘(B) MINIMUM BALANCE- In order to make a designation referred to in subparagraph (A)(i), the balance in the eligible individual’s personal retirement account must be at least equal to the minimum deposit amount. No minimum balance requirement under this subparagraph shall apply in the case of a designation referred to in subparagraph (A)(ii).

        ‘(C) ONLY 1 ACCOUNT PERMITTED AT ANY TIME- An eligible individual may not, at any time, concurrently maintain--

          ‘(i) a privately-administered personal retirement account with each of 2 or more certified institutions; or

          ‘(ii) a privately-administered and a federally-administered personal retirement account.

        ‘(D) EFFECT- A designation under this paragraph has (with respect to the eligible individual’s respective accounts, before and after such designation) the same effect as results following a designation under paragraph (2) (with respect to the federally-administered and privately-administered accounts involved).

‘PERSONAL RETIREMENT ACCOUNT DISTRIBUTIONS

    ‘SEC. 254. (a) DATE OF INITIAL DISTRIBUTION- Except as provided in subsection (c), distributions may only be made from a personal retirement account of an eligible individual on and after the earliest of--

      ‘(1) the date the eligible individual attains normal retirement age (as determined under section 216) or, if elected by such individual, early retirement age (as so determined); or

      ‘(2) the date on which funds in the eligible individual’s personal retirement account are sufficient to provide a monthly payment over the life expectancy of the eligible individual (determined under reasonable actuarial assumptions) which is at least equal to an amount equal to 100 percent of the poverty line (as defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2) and determined on such date for a family of the size involved) and adjusted annually thereafter by the adjustment determined under section 215(i).

    ‘(b) FORMS OF DISTRIBUTION-

      ‘(1) REQUIRED MONTHLY PAYMENTS-

        ‘(A) IN GENERAL- Except as provided in paragraph (3), beginning with the date determined under subsection (a), the balance in a personal retirement account available to provide monthly payments not in excess of the applicable amount shall be paid, as elected by the account holder (in such form and manner as shall be prescribed in regulations of the Personal Retirement Account Board), by means of the purchase of annuities or equal monthly payments over the life expectancy of the eligible individual (determined under reasonable actuarial assumptions) in accordance with requirements (which shall be provided in regulations of the Board) similar to the requirements applicable to payments of benefits under subchapter III of chapter 84 of title 5, United States Code, and providing for indexing for inflation.

        ‘(B) APPLICABLE AMOUNT- For purposes of subparagraph (A), the applicable amount is--

          ‘(i) in the case of a distribution made pursuant to subsection (a)(1), an amount which is sufficient to provide a monthly payment over the life expectancy of the eligible individual (determined under reasonable actuarial assumptions) which, when added to the eligible individual’s monthly benefit under part A (if any), is at least equal to an amount equal to 100 percent of the poverty line (as defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2) and determined on such date for a family of the size involved) and adjusted annually thereafter by the adjustment determined under section 215(i); and

          ‘(ii) in the case of a distribution made pursuant to subsection (a)(2), the amount described in subsection (a)(2).

      ‘(2) PROTECTION FOR SPOUSE-

        ‘(A) IN GENERAL- For purposes of paragraph (1), the requirements of subchapter III of chapter 84 of title 5, United States Code, shall be determined as if ‘a method which provides for a qualified 2/3 joint and survivor annuity’ were substituted for ‘the method described in subsection (a)(2)(B) of such section (or, if more than one form of such method is available, the form which the Board determines to be the one which provides for a surviving spouse a survivor annuity most closely approximating the annuity of a surviving spouse under section 8442 of this title)’ in section 8435(b)(1) of title 5, United States Code.

        ‘(B) QUALIFIED 2/3 JOINT AND SURVIVOR ANNUITY- For purposes of subparagraph (A), the term ‘qualified 2/3 joint and survivor annuity’ means an annuity--

          ‘(i) for the life of the eligible individual with a survivor annuity for the life of the spouse which is not less than 2/3 of (and is not greater than 100 percent of) the amount of the annuity which is payable during the joint lives of the eligible individual and the spouse, and

          ‘(ii) which is the actuarial equivalent of a single annuity for the life of the eligible individual.

        Such term also includes any annuity in a form having the effect of an annuity described in the preceding sentence.

      ‘(3) PAYMENT OF EXCESS FUNDS- To the extent funds remain in an eligible individual’s personal retirement account after the application of paragraph (1), such funds shall be payable to the eligible individual in such manner and in such amounts as determined by the eligible individual, subject to the provisions of subchapter III of chapter 84 of title 5, United States Code.

    ‘(c) DISTRIBUTION IN THE EVENT OF DEATH BEFORE THE DATE OF INITIAL DISTRIBUTION- If the eligible individual dies before the date determined under subsection (a), the balance in such individual’s personal retirement account shall be distributed in a lump sum, under rules established by the Personal Retirement Account Board--

      ‘(1) to the account of a surviving spouse of such individual; and

      ‘(2) in the case there is no surviving spouse or such spouse waives the right to such funds, to the eligible individual’s heirs.

    ‘(d) DIVORCE- The Personal Retirement Account Board shall issue regulations which provide that, in the case of an eligible individual with a personal retirement account who becomes divorced, contributions to the account during the marriage and earnings on the account during the marriage shall be divided evenly between such individual and such individual’s former spouse.

‘Subpart 2--Personal Retirement Account Fund; Personal Retirement Account Board

‘PERSONAL RETIREMENT ACCOUNT FUND

    ‘SEC. 261. (a) ESTABLISHMENT- There shall be established and maintained in the Treasury of the United States a Personal Retirement Account 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.

    ‘(b) ADDITIONAL INVESTMENT OPTIONS- In addition to the investment funds established within the Personal Retirement Account Fund under subsection (a), the Personal Retirement Account Board shall contract on a competitive basis with 1 or more fund managers to provide--

      ‘(1) 3 balanced index funds, of which--

        ‘(A) 1 shall invest in conservative investments;

        ‘(B) 1 shall invest in medium-risk investments; and

        ‘(C) 1 shall invest in growth investments; and

      ‘(2) an inflation-indexed government bond fund.

    ‘(c) FUND REQUIREMENTS-

      ‘(1) NO LOAD FUNDS- Any fund with respect to which the Personal Retirement Account Board enters into a contract under subsection (b) may not charge sales loads or other marketing fees based on the entry or exit of an individual into the fund.

      ‘(2) ANNUAL CHARGE- Any fees charged by a fund with which the Personal Retirement Account Board enters into a contract under subsection (b) shall be included in one annual charge and stated as a percentage of assets.

‘PERSONAL RETIREMENT ACCOUNT BOARD

    ‘SEC. 262. (a) ESTABLISHMENT- There shall be established and maintained in the Social Security Administration a Personal Retirement Account Board in the same manner as the Federal Retirement Thrift Investment Board under subchapter VII of chapter 84 of title 5, United States Code.

    ‘(b) SPECIFIC INVESTMENT AND REPORTING DUTIES- The Personal Retirement Account Board shall manage and report on the activities of the Personal Retirement Account and on federally-administered personal retirement accounts in the same manner as the Federal Retirement Thrift Investment Board manages and reports on the Thrift Savings Fund and the individual accounts of such Fund under subchapter VII of chapter 84 of title 5, United States Code.

    ‘(c) BUDGETARY TREATMENT OF PERSONAL RETIREMENT ACCOUNT SECURITY FUND AND ACCOUNTS- The receipts and disbursements of the Personal Retirement Account Fund and any accounts within such Fund shall not be included in the totals of the budget of the United States Government as submitted by the President or of the congressional budget and shall be exempt from any general budget limitation imposed by statute on expenditures and net lending (budget outlays) of the United States Government.

    ‘(d) COMMISSIONER OF SOCIAL SECURITY AS EXECUTIVE DIRECTOR- The Commissioner of Social Security shall have, with respect to the Personal Retirement Account Fund and accounts within such Fund, the same duties and responsibilities as does the Executive Director (appointed under section 8474(a) of title 5, United States Code) with respect to the Thrift Savings Fund and accounts within such Fund.

‘Subpart 3--Certified Institutions

‘CERTIFICATION OF INSTITUTIONS BY PERSONAL RETIREMENT ACCOUNT BOARD

    ‘SEC 271. (a) IN GENERAL- For purposes of meeting the requirements of section 530B of the Internal Revenue Code of 1986 (relating to personal retirement accounts), the Personal Retirement Account Board, in consultation with the Securities and Exchange Commission (in this part referred to as the ‘Commission’), may certify any institution that is engaged, in a fiduciary capacity, in the business of maintaining accounts for individuals for purposes of investment if such institution submits an application to the Personal Retirement Account Board in such form and manner as the Board shall by regulation require.

    ‘(b) REQUIREMENTS FOR CERTIFICATION-

      ‘(1) IN GENERAL- Any institution certified under this part must follow rules similar to the rules of section 251(d).

      ‘(2) FEES- Any fund which an institution applying for certification under this part proposes to offer for eligible individuals may not charge sales loads or other marketing fees based on the entry or exit of an individual into the fund. Any fees charged by an institutions applying for certification under this section with respect to the personal retirement account of an eligible individual shall be included in one annual charge and stated as a percentage of assets.

      ‘(3) OTHER REQUIREMENTS- In determining whether to approve an application for certification under this subpart, the Personal Retirement Account Board shall consider the following factors:

        ‘(A) The financial history and condition of the institution.

        ‘(B) The adequacy of the institution’s capital structure.

        ‘(C) The future earnings prospects of the institution.

        ‘(D) The general character and fitness of the management of the institution.

        ‘(E) The convenience and needs of eligible individuals who are account holders with respect to personal retirement accounts for which the institution is to serve as trustee.

        ‘(F) Whether the institution’s corporate powers are consistent with the purposes of this part.

        ‘(G) The institution’s disclosure policies, including any such policies with respect to administrative fees, investment policies, and investment activities.

        ‘(H) The appropriateness of--

          ‘(i) the fund or funds that such institution proposes to offer for purposes of this part; and

          ‘(ii) the criteria by which such institution will make future decisions regarding the selection of new funds or the modification of the investment options offered by such institution for purposes of this part,

        as determined based on guidelines established by the Personal Retirement Account Board for purposes of this paragraph.

    ‘(c) NOTICE OF DENIAL OF APPLICATION FOR CERTIFICATION- If the Personal Retirement Account Board denies an application for certification by any institution, the Board shall promptly notify the institution of such denial and shall give the reasons for the Board’s determination in writing.

    ‘(d) NONDELEGATION REQUIREMENT- The authority granted to the Personal Retirement Account Board under this section may not be delegated by the Board.

‘REVOCATION OF CERTIFICATION

    ‘SEC. 272. (a) IN GENERAL- The Personal Retirement Account Board, in consultation with the Commission, shall prescribe regulations in accordance with which the certified status of an institution may be voluntarily or involuntarily revoked.

    ‘(b) JUDICIAL REVIEW- Any party to any proceeding revoking the certified status of an institution under subsection (a) may obtain a review of any order served pursuant to subsection (a) by the filing in the court of appeals of the United States for the circuit in which the home office of the institution is located, or in the United States Court of Appeals for the District of Columbia Circuit, within 30 days after the date of the service of such order, a written petition praying that the order of the Personal Retirement Account Board be modified, terminated, or set aside. A copy of such petition shall be forthwith transmitted by the clerk of the court to the Personal Retirement Account Board, and thereupon the Personal Retirement Account Board shall file in the court the record in the proceeding, as provided in section 2112 of title 28, United States Code. Upon the filing of such petition, such court shall have jurisdiction, which upon the filing of the record shall be exclusive, to affirm, modify, terminate, or set aside, in whole or in part, the order of the Personal Retirement Account Board. Review of such proceedings shall be had as provided in chapter 7 of title 5, United States Code. The judgment and decree of the court shall be final, except that the judgment and decree shall be subject to review by the Supreme Court upon certiorari, as provided in section 1254 of title 28, United States Code. The commencement of proceedings for judicial review under this subsection shall not, unless specifically ordered by the court, operate as a stay of any order issued by the Personal Retirement Account Board.

‘FIDUCIARY DUTIES

    ‘SEC. 273. (a) IN GENERAL- In the case of a privately-administered personal retirement account which does not form part of an individual account plan covered under part 4 of subtitle B of title I of the Employee Retirement Income Security Act of 1974, rules similar to the rules of such part 4 applicable to individual account plans covered under such part 4 shall apply with respect to a privately-administered personal retirement account and the terms of any arrangement under which such account is maintained.

    ‘(b) GENERAL REQUIREMENTS- In applying under subsection (a) the rules of part 4 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 in the case of a privately-administered personal retirement account, references in such part to the Secretary of Labor shall be deemed to be references to the Personal Retirement Account Board, references in such part to a participants or beneficiary in connection with an individual account plan covered under such part shall be deemed to be references to the account holder with respect to the privately-administered personal retirement account, and references in such part to the plan administrator or plan sponsor in connection with an individual account plan covered under such part shall be deemed to be references to the trustee of the privately-administered personal retirement account.

    ‘(c) LIMITATION ON LIABILITY- Any account holder who issues an instruction to the trustee of the account directing an investment of funds held in the account shall sign an acknowledgement prescribed by the Personal Retirement Account Board which states that the account holder understands that an investment of any amount in the account is made at the account holder’s risk, that the account holder is not protected by the Government or by the trustee against any loss on such investment, and that a return on such investment is not guaranteed by the Government or by the trustee. Notwithstanding the preceding provisions of this section and any other provision of Federal or State law, the trustee of a privately-administered personal retirement account shall not be liable for losses suffered in connection with any investment of assets held in the account unless it is shown by clear and convincing evidence that the trustee did not act in the manner in

which a reasonable trustee would act under the circumstances then prevailing in evaluating the risk and reward properties of the investment option involved.

‘Subpart 4--Enforcement

‘CAUSE OF ACTION

    ‘SEC. 281. An account holder of any privately-administered personal retirement account who is adversely affected by an act or practice of any party (other than the Personal Retirement Account Board, the Commission, the Social Security Administration, the Department of the Treasury, or any officer or employee of any of the foregoing) in violation of any provision of this part, may bring an action--

      ‘(1) to enjoin such act or practice; or

      ‘(2) to obtain other appropriate equitable relief--

        ‘(A) to redress such violation; or

        ‘(B) to enforce such provision.

‘JURISDICTION AND VENUE

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

‘RIGHT OF THE PERSONAL RETIREMENT ACCOUNT BOARD TO INTERVENE

    ‘SEC. 283. A copy of the complaint or notice of appeal in any action under this subpart shall be served upon the Personal Retirement Account Board by certified mail. The Personal Retirement Account Board shall each have the right to intervene in any action.

‘AWARDS OF COSTS AND EXPENSES

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

‘LIMITATION ON ACTIONS

    ‘SEC. 285. (a) IN GENERAL- Except as provided in subsection (c), an action under this subpart may not be brought after the later of--

      ‘(1) 6 years after the date on which the cause of action arose; or

      ‘(2) 3 years after the applicable date specified in subsection (b).

    ‘(b) APPLICABLE DATE- The applicable date specified in this subsection is the earliest date on which the plaintiff acquired or should have acquired actual knowledge of the existence of such cause of action.

    ‘(c) CASES OF FRAUD OR CONCEALMENT- In the case of fraud or concealment, the period described in subsection (a)(2) shall be extended to 6 years after the applicable date specified in subsection (b).

‘PENALTY FOR FAILURE TO TIMELY PROVIDE REQUIRED INFORMATION

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

‘ACTIONS BY THE PERSONAL RETIREMENT ACCOUNT BOARD

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

‘CRIMINAL PENALTY FOR FRAUD OR INTENTIONAL MISREPRESENTATION IN CONNECTION WITH INVESTMENT OPTIONS

    ‘SEC. 288. Any person who makes, or causes to be made, a statement or representation of a material fact for use in selecting an investment option that the person knows or should know is false or misleading or knows or should know omits a material fact or makes such a statement with knowing disregard for the truth shall upon conviction be fined not more than $500,000 or imprisoned for not more than 5 years, or both.’.

    (b) IMPLEMENTATION OF PROVISIONS RELATING TO PRIVATELY-ADMINISTERED PERSONAL RETIREMENT ACCOUNTS-

      (1) IN GENERAL-

        (A) PLAN- Not later than 3 years after the date on which the Personal Retirement Account Board accepts the first contribution under section 251(b) of the Social Security Act, the Board, in consultation with the Commissioner of Social Security, the Commissioner of the Securities and Exchange Commission, and the Secretary of the Treasury, shall establish and submit to Congress a plan for implementing the amendments made by this section, to the extent that they relate to privately-administered personal retirement accounts.

        (B) IMPLEMENTATION- All measures necessary to prepare for full implementation of such amendments (as they relate to privately-administered personal retirement accounts) shall be completed not later than 5 years after the date on which the Personal Retirement Account Board accepts the first contribution under section 251(b) of such Act.

      (2) DEFINITIONS- For purposes of this paragraph, the terms ‘Personal Retirement Account Board’, ‘federally-administered personal retirement account’, and ‘privately-administered personal retirement account’ have the meanings given them under part B of title II of the Social Security Act (as amended by this section).

SEC. 102. CPI-INDEXED BENEFITS FOR PART B ELIGIBLE INDIVIDUALS NOT IN SUPPLEMENTAL CONTRIBUTION COVERAGE.

    Section 215(a)(1)(B) of the Social Security Act (42 U.S.C. 415(a)(1)(B)) is amended--

      (1) by redesignating clause (iii) as clause (vi);

      (2) in clause (ii), by striking ‘For individuals’ and inserting ‘Subject to clause (iii), for individuals’;

      (3) by inserting after clause (ii) the following new clauses:

    ‘(iii) For eligible individuals (as defined under section 251(a)(2)) who do not elect supplemental contribution coverage under section 252 and who initially meet all requirements for entitlement to old-age or survivors insurance benefits (other than applying therefor) in any calendar year after 2008, each of the amounts so established under the preceding provisions of this subparagraph shall be equal to the product derived by multiplying such amount (as determined before the application of this clause) by the quotient derived by dividing--

      ‘(I) the applicable change in the CPI for the first of the 2 preceding calendar years, by

      ‘(II) applicable change in the national average wage index for the first of the 2 preceding calendar years.

    ‘(iv) For purposes of clause (iii)(I), the term ‘applicable change in the CPI’ for a calendar year means the excess of--

      ‘(I) the arithmetical mean of the Consumer Price Index for Urban Wage Earners and Clerical Workers (issued by the Bureau of Labor Statistics) for the 12 months in such calendar year, over

      ‘(II) the arithmetical mean of such Consumer Price Index for the 12 months in calendar year 2007.

    ‘(v) For purposes of clause (iii)(II), the term ‘applicable change in the national average wage index’ for a calendar year means the excess of--

      ‘(I) the national average wage index (as defined in section 209(k)(1)) for such calendar year, over

      ‘(II) the national average wage index (as so defined) for calendar year 2007.’; and

      (4) in clause (vi) (as redesignated), by striking ‘under clause (ii)’ and inserting ‘under the preceding provisions of this subparagraph’.

SEC. 103. ADJUSTMENTS TO PRIMARY INSURANCE AMOUNTS UNDER PART A OF TITLE II OF THE SOCIAL SECURITY ACT FOR ELIGIBLE INDIVIDUALS WITH PERSONAL RETIREMENT ACCOUNTS.

    (a) IN GENERAL- Section 215 of the Social Security Act (42 U.S.C. 415) is amended by adding at the end the following:

‘Adjustment of Primary Insurance Amount in Relation to Contributions to Personal Retirement Accounts

    ‘(j)(1) 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 the excess (if any) of--

      ‘(A) the amount which would be so determined without the application of this subsection, over

      ‘(B) the monthly amount of an immediate life annuity, determined on the basis of the sum of--

        ‘(i) the total of all amounts which have been credited pursuant to section 251(b) (indexed in the same manner as is applicable with respect to average indexed monthly earnings under subsection (b)) to the personal retirement account held by such individual, plus

        ‘(ii) accrued interest on such amount compounded annually--

          ‘(I) assuming an interest rate equal to the long-term government bond rate minus 0.3 percentage points, and

          ‘(II) using the mortality table used under 412(l)(7)(C)(ii) of the Internal Revenue Code of 1986.

    ‘(2) 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).

    ‘(3) For purposes of this subsection, the term ‘immediate life annuity’ means an annuity--

      ‘(A) the annuity starting date (as defined in section 72(c)(4) of the Internal Revenue Code of 1986) of which commences with the first month following the date of the determination, and

      ‘(B) which provides for a series of substantially equal monthly payments over the life expectancy of the individual.’.

    (b) CONFORMING AMENDMENT TO RAILROAD RETIREMENT ACT OF 1974- Section 1 of the Railroad Retirement Act of 1974 (45 U.S.C. 231) is amended by adding at the end the following:

    ‘(s) In applying applicable provisions of the Social Security Act for purposes of determining the amount of the annuity to which an individual is entitled under this Act, section 215(j) of the Social Security Act and part B of title II of such Act shall be disregarded.’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply with respect to computations and recomputations of primary insurance amounts occurring after December 31, 2005.

SEC. 104. MINIMUM SOCIAL SECURITY BENEFIT.

    Section 215 of the Social Security Act (42 U.S.C. 415), as amended by section 103, is amended by adding at the end the following:

‘Minimum Monthly Insurance Benefit

    ‘(k)(1) Notwithstanding the preceding provisions of this section--

      ‘(A) the primary insurance amount of a qualified individual shall be equal to the greater of--

        ‘(i) the primary insurance amount determined under this section (without regard to this subsection), or

        ‘(ii) 1/12 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

      ‘(B) 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.

    ‘(2) For purposes of this subsection--

      ‘(A) The term ‘qualified individual’ means an individual--

        ‘(i) who is an eligible individual (as defined under section 251(a)(2)) who did not elect supplemental contribution coverage under section 252, and

        ‘(ii) who initially becomes eligible for old-age insurance benefits or dies (before becoming eligible for such benefits) for a month beginning after December 31, 2006.

      ‘(B) The applicable percentage shall be 120 percent reduced by 1.2 percentage points for each quarter of coverage of the qualified individual less than 140.

    ‘(3)(A) For any year before 2011, the amount determined under clause (ii) of paragraph (1)(A) shall be an amount equal to the phase-in percentage of the amount determined under such clause without regard to this paragraph.

      ‘(B) The phase-in percentage shall be determined as follows:

‘Calendar year:

Phase-in percentage:

2007

20

2008

40

2009

60

2010

80.’.

SEC. 105. TREATMENT OF DISABLED BENEFICIARIES.

    Section 215(a) of the Social Security Act (42 U.S.C. 415(a)) is amended by adding at the end the following new paragraph:

    ‘(8)(A) Notwithstanding the preceding provisions of this subsection, in the case of an eligible individual (as defined under section 251(a)(2)) who has not elected supplemental contribution coverage under section 252 and who has or has had a period of disability and becomes entitled to old-age insurance benefits under section 202(a) (or dies) in or after 2006, the primary insurance amount of such individual shall be the sum of--

      ‘(i) the amount determined under subparagraph (B), and

      ‘(ii) the product derived by multiplying--

        ‘(I) the excess of the amount determined under subparagraph (C) over the amount determined under subparagraph (B), by

        ‘(II) the adjustment factor for such individual determined under subparagraph (D).

    ‘(B) The amount determined under this subparagraph is the amount of such individual’s primary insurance amount as determined under this section without regard to this paragraph.

    ‘(C) The amount determined under this subparagraph is the amount of such individual’s primary insurance amount as determined under this section as in effect with respect to individuals becoming eligible for old-age or disability insurance benefits under section 202(a) in 2005.

    ‘(D) The adjustment factor determined under this subparagraph for any individual is the ratio (not greater than 1) of--

      ‘(i) the number of months, preceding the earlier of such individual’s first month of entitlement to old-age insurance benefits under section 202(a) or the month of such individual’s death, which occurred during a period of disability of such individual, to

      ‘(ii) 480.’.

Subtitle B--Amendments Related to the Internal Revenue Code of 1986

SEC. 111. MODIFICATION OF FICA RATES.

    (a) EMPLOYEES- Section 3101(a) of the Internal Revenue Code of 1986 (relating to tax on employees) is amended to read as follows:

    ‘(a) OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE-

      ‘(1) IN GENERAL-

        ‘(A) INDIVIDUALS BORN BEFORE 1950- In addition to other taxes, there is hereby imposed on the income of every individual who is not a part B eligible individual a tax equal to 6.2 percent of the wages received by him with respect to employment.

        ‘(B) INDIVIDUALS ELIGIBLE FOR PART B OF TITLE II OF THE SOCIAL SECURITY ACT- In addition to other taxes, there is hereby imposed on the income of every part B eligible individual a tax equal to--

          ‘(i) PERSONAL RETIREMENT ACCOUNT- In the case of an individual with a personal retirement account, the sum of--

            ‘(I) 2.2 percent of the first $32,500 of the wages received by such individual with respect to employment in the calendar year, and

            ‘(II) 6.2 percent of any additional such wages received in the calendar year.

          ‘(ii) BASIC BENEFIT- In the case of an individual with basic benefit coverage, 6.2 percent of such wages received in the calendar year.

          ‘(iii) SUPPLEMENTAL CONTRIBUTION- In the case of an individual with supplemental contribution coverage, 8.2 percent of such wages received in the calendar year.

      ‘(2) CONTRIBUTION OF OASDI TAX REDUCTION TO PERSONAL RETIREMENT ACCOUNTS- In addition to other taxes, there is hereby imposed on the income of every part B eligible individual who holds a personal retirement account for the calendar year a personal retirement account contribution equal to the sum of--

        ‘(A) 4 percent of so much of the wages as does not exceed the first $32,500 received in

such calendar year by such individual with respect to employment, plus

        ‘(B) so much of such wages (not to exceed $5,000) as designated by the individual in the same manner as described in section 251(d)(1)(B) of the Social Security Act.

      ‘(3) INFLATION ADJUSTMENT BASED ON WAGE INDEX-

        ‘(A) IN GENERAL- In the case of any calendar year beginning after 2006, the $32,500 amount in paragraphs (1) and (2) and the $5,000 amounts in paragraph (2) shall be increased by an amount equal to--

          ‘(i) such dollar amount, multiplied by

          ‘(ii) the percentage increase (if any) for such year determined under section 215(i) of the Social Security Act.

        ‘(B) ROUNDING- If any dollar amount after being increased under subparagraph (A) is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10.

      ‘(4) DEFINITIONS- For purposes of this subsection, the terms ‘personal retirement account’, ‘basic benefit coverage’, and ‘supplemental contribution coverage’ shall have the meaning given such terms under section 252 of the Social Security Act.’.

    (b) SELF-EMPLOYED- Section 1401(a) of the Internal Revenue Code of 1986 (relating to tax on self-employment income) is amended to read as follows:

    ‘(a) OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE-

      ‘(1) IN GENERAL-

        ‘(A) INDIVIDUALS BORN BEFORE 1950- In addition to other taxes, there shall be imposed for each taxable year, on the self-employment income of every individual who is not a part B eligible individual for the calendar year ending with or during such taxable year, a tax equal to 12.4 percent of the amount of the self-employment income for such taxable year.

        ‘(B) INDIVIDUALS ELIGIBLE FOR PART B OF TITLE II OF THE SOCIAL SECURITY ACT- In addition to other taxes, there is hereby imposed for each taxable year, on the self-employment income of every part B eligible individual who is a part B eligible individual for the calendar year ending with or during such taxable year, a tax equal to--

          ‘(i) PERSONAL RETIREMENT ACCOUNT- In the case of an individual with a personal retirement account, the sum of--

            ‘(I) 8.4 percent of the first $32,500 of the self-employment for such taxable year, and

            ‘(II) 12.4 percent of any additional self-employment income for such taxable year.

          ‘(ii) BASIC BENEFIT- In the case of an individual with basic benefit coverage, 12.4 percent of the self-employment for such taxable year.

          ‘(iii) SUPPLEMENTAL CONTRIBUTION- In the case of an individual with supplemental contribution coverage, 14.4 percent of the self-employment income for such taxable year.

      ‘(2) CONTRIBUTION OF OASDI TAX REDUCTION TO PERSONAL RETIREMENT ACCOUNTS- In addition to other taxes, there is hereby imposed for each taxable year on the self-employment income of every part B eligible individual who holds a personal retirement account for the calendar year ending with or during such taxable year, a personal retirement account contribution equal to the sum of--

        ‘(A) 4 percent of so much of the self-employment income as does not exceed the first $32,500 for such taxable, plus

        ‘(B) so much of such self-employment income (not to exceed $5,000) as designated by the individual in the same manner as described in section 251(c) of the Social Security Act.

      ‘(3) INFLATION ADJUSTMENT BASED ON WAGE INDEX-

        ‘(A) IN GENERAL- In the case of any taxable year beginning after 2006, the $32,500 amount in paragraphs (1) and (2) and the $5,000 amounts in paragraph (2) shall be increased by an amount equal to--

          ‘(i) such dollar amount, multiplied by

          ‘(ii) the percentage increase (if any) for the calendar year in which such taxable year begins determined under section 215(i) of the Social Security Act.

        ‘(B) ROUNDING- If any dollar amount after being increased under subparagraph (A) is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10.

      ‘(4) DEFINITIONS- For purposes of this subsection the terms ‘personal retirement account’, ‘basic benefit coverage’, and ‘supplemental contribution coverage’ shall have the meaning given such terms under section 252 of the Social Security Act.’.

    (c) PART B ELIGIBLE INDIVIDUAL-

      (1) TAXES ON EMPLOYEES- Section 3121 of such Code (relating to definitions) is amended by inserting after subsection (s) the following new subsection:

    ‘(t) PART B ELIGIBLE INDIVIDUAL- For purposes of this chapter, the term ‘part B eligible individual’ means, for any calendar year, an individual who is an eligible individual (as defined in section 251(a)(2) of the Social Security Act) for such calendar year.’.

      (2) SELF-EMPLOYMENT TAX- Section 1402 of such Code (relating to definitions) is amended by adding at the end the following new subsection:

    ‘(l) PART B ELIGIBLE INDIVIDUAL- The term ‘part B eligible individual’ means, for any calendar year, an individual who is an eligible individual (as defined in section 251(a)(2) of the Social Security Act) for such calendar year.’.

    (d) REPORT ON NECESSARY INCREASES IN SUPPLEMENTAL CONTRIBUTION TAX RATE-

      (1) REPORT-

        (A) IN GENERAL- The Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund shall submit to Congress annually--

          (i) a report on the actuarial deficit of such trust funds; and

          (ii) recommendations, including proposed legislation, for adjusting the tax rate under section 3101(a)(1)(B)(iii) of the Internal Revenue Code of 1986 and section 1401(a)(1)(B)(iii) of such Code to eliminate any such deficit.

        (B) ACTUARIAL DEFICIT-

          (i) IN GENERAL- For purposes of subparagraph (A), the actuarial deficit is the excess of--

            (I) the summarized income rate, over

            (II) the summarized cost rate.

          (ii) METHOD OF CALCULATION- The calculation made under clause (i) shall be made assuming that all individuals who are eligible individuals (as defined in section 251(a)(2) of the Social Security Act) have elected (or will elect) supplemental contribution coverage (within the meaning of section 252(c)(2) of the Social Security Act) and shall be calculated by taking into account a period of 75 years.

          (iii) SUMMARIZED INCOME RATE- The term ‘summarized income rate’ means the ratio of the present value of the income of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund to the present value of taxable payroll (as defined in section 202(a)(5)).

          (iv) SUMMARIZED COST RATE- The term ‘summarized cost rate’ means the ratio of the present value of the costs of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund to the present value of taxable payroll (as so defined).

        (C) TIMING OF REPORT- The report required under this subsection shall be submitted to Congress together with and under the same requirements as the report described in section 201(c)(2) of the Social Security Act.

      (2) CONGRESSIONAL CONSIDERATION OF RECOMMENDATIONS-

        (A) DEFINITIONS- In this section:

          (i) IMPLEMENTATION BILL- The term ‘implementation bill’ means only a bill which--

            (I) is introduced as provided under subparagraph (B); and

            (II) contains the proposed legislation included in the report submitted to Congress under paragraph (1), but only if such proposed legislation raises the rate under section 3101(a)(1)(B)(iii) and 1401(a)(1)(B)(iii) at least 0.25 percentage points.

          (ii) CALENDAR DAY- The term ‘calendar day’ means a calendar day other than one on which either House is not in session because of an adjournment of more than 3 days to a date certain.

        (B) INTRODUCTION; REFERRAL; AND REPORT OR DISCHARGE-

          (i) INTRODUCTION- On the first calendar day on which both Houses are in session, on or immediately following the date on which the report is submitted to Congress under section 201(c)(6) of the Social Security Act, a single implementation bill shall be introduced (by request)--

            (I) in the Senate by the Majority Leader of the Senate, for himself and the Minority Leader of the Senate, or by Members of the Senate designated by the Majority Leader and Minority Leader of the Senate; and

            (II) in the House of Representatives by the Speaker of the House of Representatives, for himself and the Minority Leader of the House of Representatives, or by Members of the House of Representatives designated by the Speaker and Minority Leader of the House of Representatives.

          (ii) REFERRAL- The implementation bills introduced under clause (i) shall be referred--

            (I) in the Senate, to the Committee on Finance of the Senate; and

            (II) in the House of Representatives, to the Committee on Ways and Means of the House of Representatives.

          A committee to which an implementation bill is referred under this paragraph may report such bill to the respective House without amendment.

          (iii) REPORT OR DISCHARGE- If a committee to which an implementation bill is referred has not reported such bill by the end of the 15th calendar day after the date of the introduction of such bill, such committee shall be immediately discharged from further consideration of such bill, and upon being reported or discharged from the committee, such bill shall be placed on the appropriate calendar.

        (C) FLOOR CONSIDERATION-

          (i) IN GENERAL- When the committee to which an implementation bill is referred has reported, or has been discharged under subparagraph (B)(iii), it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for any Member of the respective House to move to proceed to the consideration of the implementation bill, and all points of order against the implementation bill (and against consideration of the implementation bill) are waived. The motion is highly privileged in the House of Representatives and is privileged in the Senate and is not debatable. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the implementation bill is agreed to, the implementation bill shall remain the unfinished business of the respective House until disposed of.

          (ii) AMENDMENTS- An implementation bill may not be amended in the Senate or the House of Representatives.

          (iii) DEBATE- Debate on the implementation bill, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the resolution. A motion further to limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the implementation bill is not in order. A motion to reconsider the vote by which the implementation bill is agreed to or disagreed to is not in order.

          (iv) VOTE ON FINAL PASSAGE- Immediately following the conclusion of the debate on an implementation bill, and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the appropriate House, the vote on final passage of the implementation bill shall occur.

          (v) RULINGS OF THE CHAIR ON PROCEDURE- Appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to an implementation bill shall be decided without debate.

        (D) COORDINATION WITH ACTION BY OTHER HOUSE- If, before the passage by 1 House of an implementation bill of that House, that House receives from the other House an implementation bill, then the following procedures shall apply:

          (i) NONREFERRAL- The implementation bill of the other House shall not be referred to a committee.

          (ii) VOTE ON BILL OF OTHER HOUSE- With respect to an implementation bill of the House receiving the implementation bill--

            (I) the procedure in that House shall be the same as if no implementation bill had been received from the other House; but

            (II) the vote on final passage shall be on the implementation bill of the other House.

        (E) RULES OF SENATE AND HOUSE OF REPRESENTATIVES- This paragraph is enacted by Congress--

          (i) as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such it is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of an implementation bill described in subparagraph (A), and it supersedes other rules only to the extent that it is inconsistent with such rules; and

          (ii) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.

    (e) EFFECTIVE DATES-

      (1) EMPLOYEES- The amendments made by subsections (a) and (c)(1) apply to remuneration paid after December 31, 2005.

      (2) SELF-EMPLOYED INDIVIDUALS- The amendments made by subsections (b) and (c)(2) apply to taxable years beginning after December 31, 2005.

      (3) CONGRESSIONAL IMPLEMENTATION OF TAX RATE ADJUSTMENT- Subsection (d)(2) shall apply to any report submitted to Congress under section 201(c)(6) of the Social Security Act after 2005.

SEC. 112. MATCHING CONTRIBUTIONS.

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

‘Subpart H--Personal Retirement Account Credits

      ‘Sec. 54. Personal retirement account credit.’.

‘SEC. 54. PERSONAL RETIREMENT ACCOUNT CREDIT.

    ‘(a) ALLOWANCE OF CREDIT- Each qualified part B eligible individual is entitled to a credit for the taxable year in an amount equal to the sum of--

      ‘(1) $100, and

      ‘(2) an amount equal to--

        ‘(A) 50 percent of the designated wages of such individual for the taxable year,

        ‘(B) 50 percent of the designated self-employment income of such individual for the taxable year, and

        ‘(C) 50 percent of the designated earned income credit.

    ‘(b) LIMITATIONS-

      ‘(1) AMOUNT- The amount determined under paragraph (2) of subsection (a) with respect to such individual for any taxable year may not exceed $500.

      ‘(2) FAILURE TO MAKE VOLUNTARY CONTRIBUTIONS- In the case of a qualified part B eligible individual with respect to whom the amount of wages designated under subparagraph (B) of section 3101(a)(2) plus the amount self-employment income designated under subparagraph (B) of section 1401(a)(2) for the taxable year is zero, the credit to which such individual is entitled under this section shall be equal to zero.

    ‘(c) DEFINITIONS- For purposes of this section--

      ‘(1) QUALIFIED PART B ELIGIBLE INDIVIDUAL- The term ‘qualified part B eligible individual’ means, for any calendar year, an individual--

        ‘(A) who is an eligible individual (as defined in section 251(a)(2) of the Social Security Act) for such calendar year,

        ‘(B) who is not less than 26 years-old for the entirety of such calendar year; and

        ‘(C) who earns less than $30,000 in wages (as defined in section 3121(a)) for such calendar year.

      ‘(2) DESIGNATED WAGES- The term ‘designated wages’ means with respect to any taxable year the amount designated under subparagraph (B) of section 3101(a)(2).

      ‘(3) DESIGNATED SELF-EMPLOYMENT INCOME- The term ‘designated self-employment income’ means with respect to any taxable year the amount designated under subparagraph (B) of section 1401(a)(2) for such taxable year.

      ‘(4) DESIGNATED EARNED INCOME CREDIT- The term ‘designated earned income credit’ means the amount of the credit allowed under section 32 for the taxable year that is designated by the qualified part B eligible individual in the same manner as described in section 251 of the Social Security Act.

    ‘(d) CREDIT USED ONLY FOR PERSONAL RETIREMENT ACCOUNT- For purposes of this title, the credit allowed under this section with respect to any qualified part B eligible individual--

      ‘(1) shall not be treated as a credit allowed under this part, but

      ‘(2) shall be treated as an overpayment of tax under section 6401(b)(3) which may, in accordance with section 6402(l), only be transferred to an personal retirement account established under part B of title II of the Social Security Act with respect to such individual.

    ‘(e) INFLATION ADJUSTMENT-

      ‘(1) IN GENERAL- In the case of any taxable year beginning after 2006, the $100 amount in subsection (a) and the $500 amount in subsection (b) shall each be increased by an amount equal to--

        ‘(A) such dollar amount, multiplied by

        ‘(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2006’ for ‘calendar year 1992’ in subparagraph (B) thereof.

      ‘(2) ROUNDING- If any amount adjusted under subparagraph (A) is not a multiple of $10, such amount shall be rounded to the next lowest multiple of $10.’.

    (b) CONTRIBUTION OF EITC AMOUNTS TO PERSONAL RETIREMENT ACCOUNTS- Section 32 of such Code (relating to earned income) is amended by adding at the end the following new subsection:

    ‘(n) CONTRIBUTION TO PERSONAL RETIREMENT ACCOUNT-

      ‘(1) IN GENERAL- A qualified part B eligible individual (as defined in section 54) who is allowed a credit under this section may designate all or a portion of such credit as a contribution to the personal retirement account established on behalf of such individual.

      ‘(2) CREDIT USED ONLY FOR PERSONAL RETIREMENT ACCOUNT- For purposes of this title, the amount designated under paragraph (1) with respect to any qualified part B eligible individual--

        ‘(A) shall not be treated as a credit allowed under this section, but

        ‘(B) shall be treated as an overpayment of tax under section 6401(b)(3) which may, in accordance with section 6402(l), only be transferred to an personal retirement account established under part B of title II of the Social Security Act with respect to such individual.’.

    (c) CONTRIBUTION OF CREDITED AMOUNTS TO PERSONAL RETIREMENT ACCOUNT-

      (1) CREDITED AMOUNTS TREATED AS OVERPAYMENT OF TAX- Subsection (b) of section 6401 of such Code (relating to excessive credits) is amended by adding at the end the following new paragraph:

      ‘(3) SPECIAL RULE FOR CREDIT UNDER SECTIONS 32 AND 54- Subject to the provisions of section 6402(l), the sum of the following shall be considered an overpayment:

        ‘(A) SECTION 54 CREDIT- The amount of any credit allowed under section 54 for any taxable year.

        ‘(B) SECTION 32 DESIGNATED EARNED INCOME CREDIT CONTRIBUTION- The amount of the earned income credit designated as a contribution to an personal retirement account under section 32(n) for the taxable year.’.

      (2) TRANSFER OF CREDIT AMOUNT PERSONAL RETIREMENT ACCOUNT- Section 6402 of such Code (relating to authority to make credits or refunds) is

amended by adding at the end the following new subsection:

    ‘(l) OVERPAYMENTS ATTRIBUTABLE TO PERSONAL RETIREMENT ACCOUNT CREDIT- In the case of any overpayment described in section 6401(b)(3) with respect to any individual, the Secretary shall transfer for crediting by the Commissioner of Social Security to the personal retirement account of such individual, an amount equal to the amount of such overpayment.’.

    (d) NOTICE TO EITC RECIPIENTS OF MATCHING CONTRIBUTIONS TO PERSONAL RETIREMENT SECURITY ACCOUNTS- In connection with information and tax forms relating to the credit allowed under section 32 of the Internal Revenue Code of 1986, the Secretary of the Treasury shall provide notice of the availability of matching contributions pursuant to section 54 of such Code (as added by subsection (a) of this section) to personal retirement accounts under part B of title II of the Social Security Act.

    (e) CONFORMING AMENDMENTS-

      (1) Section 1324(b)(2) of title 31, United States Code, is amended by inserting before the period at the end ‘, or enacted by the Social Security Solvency and Modernization Act of 2003’.

      (2) The table of subparts for part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

      ‘Subpart H. Personal Retirement Account Credits.’.

    (f) EFFECTIVE DATE- The amendments made by this subsection shall apply to refunds payable after December 31, 2005.

SEC. 113. TAX TREATMENT OF PERSONAL RETIREMENT ACCOUNTS.

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

‘PART IX--PERSONAL RETIREMENT ACCOUNTS

‘Sec. 530A. Personal retirement account fund and federally-administered personal retirement accounts.

‘Sec. 530B. Personal retirement accounts.

‘SEC. 530A. PERSONAL RETIREMENT ACCOUNT FUND AND FEDERALLY-ADMINISTERED PERSONAL RETIREMENT ACCOUNTS.

    ‘The Personal Retirement Account Fund established under section 261 of the Social Security Act shall be exempt from taxation under this subtitle.

‘SEC. 530B. PERSONAL RETIREMENT ACCOUNTS.

    ‘(a) IN GENERAL- For purposes of this section, the term ‘personal retirement account’ means a federally-administered personal retirement account or a privately-administered personal retirement account.

    ‘(b) PERSONAL RETIREMENT ACCOUNTS DEFINED- For purposes of subsection (a)--

      ‘(1) FEDERALLY-ADMINISTERED PERSONAL RETIREMENT ACCOUNT- The term ‘federally-administered personal retirement account’ means the account established under section 251 of the Social Security Act.

      ‘(2) PRIVATELY-ADMINISTERED PERSONAL RETIREMENT ACCOUNT- The term ‘privately-administered personal retirement account’ means a trust created or organized in the United States exclusively for the benefit of an individual, but only if the written governing instrument creating the trust meets the following requirements:

        ‘(A) Except in the case of rollover contributions from another personal retirement account of such individual--

          ‘(i) no contribution will be accepted unless it is in cash,

          ‘(ii) contributions will not be accepted for the taxable year in excess of the sum of--

            ‘(I) the amounts collected with respect to such individual under sections 3101(a)(2) and 1401(a)(2), and

            ‘(II) the amounts transferred to such account under section 6402(l), and

          ‘(iii) any contributions with respect to an account holder which are not accepted pursuant to this paragraph are promptly refunded directly to the account holder.

        ‘(B) The trustee is a institution which is certified under subpart 3 of part B of title II of the Social Security Act.

        ‘(C) No part of the trust funds will be invested in life insurance contracts.

        ‘(D) The interest of an individual in the balance in such individual’s account is nonforfeitable.

        ‘(E) The assets of the trust will not be commingled with other property except in a common trust fund or common investment fund.

    ‘(c) CONTRIBUTIONS-

      ‘(1) IN GENERAL- No deduction shall be allowed for contributions credited to a personal retirement account under section 251 of the Social Security Act or amounts transferred to such account under section 6402(l).

      ‘(2) ROLLOVERS-

        ‘(A) ROLLOVER FROM PERSONAL RETIREMENT ACCOUNT- The entire balance of a personal retirement account of the account holder may be rolled over to another personal retirement account of the account holder.

        ‘(B) ROLLOVER OF INHERITANCE- Any portion of a distribution to a spouse or an heir from a personal retirement account made by reason of the death of the beneficiary of such account may be rolled over to the personal retirement account of the spouse or heir.

    ‘(d) TAX TREATMENT OF ACCOUNTS-

      ‘(1) EXEMPTION FROM TAX- A personal retirement account is exempt from taxation under this subtitle unless such account has ceased to be a personal retirement account by reason of paragraph (2). Notwithstanding the preceding sentence, any such account is subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable, etc. organizations).

      ‘(2) ACCOUNT TERMINATIONS- Rules similar to the rules of paragraphs (2) and (4) of section 408(e) shall apply to privately-administered personal retirement accounts, and any amount treated as distributed under such rules shall be includible in gross income and shall not be treated as a social security benefit for purposes of section 86.

      ‘(3) ROLLOVER CONTRIBUTION-

        ‘(A) IN GENERAL- An amount is described in this paragraph as a rollover contribution if it meets the requirements of subparagraphs (B) and (C).

        ‘(B) IN GENERAL- The requirements of this subparagraph are met with respect to an amount paid or distributed from a personal retirement account to the account holder only if the entire amount in such account is received by the account holder and is paid into another personal retirement account for the benefit of such holder not later than the 60th day after the day on which the holder receives the payment or distribution.

        ‘(C) LIMITATION- This paragraph shall not apply to any amount described in subparagraph (A) received by an individual from a privately-administered personal retirement account if, at any time during the 1-year period ending on the day of such receipt, such individual received on 1 other occasions any other amount described in subparagraph (A) from a personal retirement account which was not includible in the individual’s gross income because of the application of this paragraph.

    ‘(e) DISTRIBUTIONS-

      ‘(1) IN GENERAL- The portion of any distribution from a personal retirement account under section 254 of the Social Security Act which is attributable to amounts contributed to such account under section 3101(a)(2) (other than subparagraph (B) thereof) and section 1401(a)(2) (other than subparagraph (B) thereof), together with earnings thereon, shall be includible in gross income as a social security benefit for purposes of section 86.

      ‘(2) VOLUNTARY CONTRIBUTIONS- The portion of any distribution from a personal retirement account under section 254 of the Social Security Act which is attributable to amounts contributed to such account under subparagraph (B) of section 3101(a)(2), subparagraph (B) of section 1401(a)(2), and section 6402(l), together with earnings thereon, shall not be includible in gross income.

      ‘(3) PERIOD IN WHICH DISTRIBUTIONS MUST BE MADE FROM ACCOUNT OF DECEDENT- In the case of amounts remaining in a personal retirement account from which distributions began before the death of the beneficiary, rules similar to the rules of section 401(a)(9)(B) shall apply to distributions of such remaining amounts.

      ‘(4) ROLLOVERS- Paragraph (1) shall not apply to amounts rolled over under subsection (c)(2) in a direct transfer by the Commissioner of Social Security, under regulations which the Commissioner shall prescribe.

    ‘(f) ACCOUNT BENEFICIARY- For purposes of this section, the account beneficiary is the individual for whose benefit the personal retirement account is established.’.

    (b) CLERICAL AMENDMENT- The table of parts for subchapter F of chapter 1 of the Internal Revenue Code of 1986 is amended by adding after the item relating to part VIII the following new item:

‘Part IX. Personal retirement accounts.’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2005.

TITLE II--SOCIAL SECURITY FINANCIAL SUSTAINABILITY

Subtitle A--Commission on the Review of Federal Agencies and Programs

SEC. 201. ESTABLISHMENT OF COMMISSION.

    (a) ESTABLISHMENT- There is established the Commission on the Review of Federal Agencies and Programs (hereafter in this subtitle referred to as the ‘Commission’).

    (b) MEMBERSHIP-

      (1) INITIAL APPOINTMENT- The Commissioners shall be composed of 9 members of whom--

        (A) 3 shall be appointed by the President of the United States;

        (B) 2 shall be appointed by the Speaker of the House of Representatives;

        (C) 1 shall be appointed by the minority Leader of the House of Representatives;

        (D) 2 shall be appointed by the majority Leader of the Senate; and

        (E) 1 shall be appointed by the minority Leader of the Senate.

      (2) CHAIRPERSON AND VICE CHAIRPERSON- The President shall designate a chairperson and vice

chairperson from among the members of the Commission.

    (c) TERMS-

      (1) IN GENERAL- A member of the Commission shall be appointed for a term of 6 years, except that with respect to the members initially appointed--

        (A) the members appointed under subsection (b)(1)(A) shall be appointed for a term of 6 years;

        (B) the members appointed under subparagraphs (B) and (C) of subsection (b)(1) shall be appointed for terms of 4 years; and

        (C) the members appointed under subparagraphs (D) and (E) of subsection (b)(1) shall be appointed for terms of 2 years.

      (2) EXPIRATION OF TERMS- The term of any member shall not expire before the date on which the member’s successor takes office.

    (d) VACANCIES-

      (1) IN GENERAL- Any vacancy (including an expired term) on the Commission shall be filled by an appointment made by the President in consultation with the Speaker of the House of Representatives, the minority leader of the House of Representatives, the majority Leader of the Senate, and the minority Leader of the Senate. Any person so appointed shall be subject to any conditions which applied with respect to the original appointment.

      (2) REAPPOINTMENTS- A member who has previously served on the commission may be reappointed to the Commission in the manner described in paragraph (1).

    (e) MEETINGS-

      (1) INITIAL MEETING- Not later than 60 days after the date on which all members of the Commission have been appointed, the Commission shall hold its first meeting.

      (2) SUBSEQUENT MEETINGS- The Commission shall meet at the call of the chairperson, but not less than once per year.

    (f) QUORUM- A majority of the members of the Commission shall constitute a quorum, but a lesser number of members may hold hearings.

SEC. 202. DUTIES OF THE COMMISSION.

    (a) DEFINITIONS- For purposes of this subtitle:

      (1) AGENCY-

        (A) IN GENERAL- Except as provided in subparagraph (B), the term ‘agency’ has the meaning given the term ‘Executive agency’ under section 105 of title 5, United States Code.

        (B) EXCEPTIONS- The term ‘agency’ does not include--

          (i) the Department of Defense or its subdivisions; or

          (ii) any agency that solely administers entitlement programs.

      (2) ENTITLEMENT PROGRAM- The term ‘entitlement program’ means any program that makes payments (including loans and grants), the budget authority for which is not provided for in advance by appropriation Acts, to any person or government if, under the provisions of the law containing such authority, the United States is obligated to make such payments to persons or governments who meet the requirements established by such law.

      (3) PROGRAM-

        (A) IN GENERAL- Except as provided in subparagraph (B), the term ‘program’ means any activity or function of an agency.

        (B) EXCEPTION- The term ‘program’ does not include entitlement programs.

      (4) INEQUITABLE FEDERAL SUBSIDY- the term ‘inequitable Federal subsidy’ means a payment, benefit, service, or tax advantage that--

        (A) is provided by the Federal Government to any corporation, partnership, joint venture, association, or business trust, but not including--

          (i) a nonprofit organization described under section 501(c)(3) of the Internal Revenue Code of 1986 that is exempt from taxation under section 501(a) of such Code; or

          (ii) a State or local government or Indian Tribe or Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.);

        (B) is provided without a reasonable expectation, demonstrated with the use of reliable performance criteria, that actions or activities undertaken or performed in return for such payment, benefit, service, or tax advantage would result in a return or benefit, quantifiable or nonquantifiable, to the public at least as great as the payment, benefit, service, or tax advantage; and

        (C) provides an unfair competitive advantage or financial windfall.

      Such term shall not include a payment, benefit, service, or tax advantage that is necessary to protect Americans at home or abroad or to comply with international trade or treaty obligations.

      (5) TAXABLE PAYROLL- The term ‘taxable payroll’ means the amount of wages (as defined under section 3121(a) of the Internal Revenue Code of 1986) taxable under chapter 21 of such Code and the amount of self-employment income (as defined under section 1402(b) of such Code) taxable under chapter 2 of such Code, as determined by the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund.

    (b) IN GENERAL- Each year, the Commission shall--

      (1) evaluate all agencies and programs within those agencies, using the criteria under subsection (c); and

      (2) submit to Congress--

        (A) a plan with recommendations of the inequitable Federal subsidies, agencies, and programs that should be realigned or eliminated to achieve savings equal to 1.25 percent of the taxable payroll for the preceding year; and

        (B) proposed legislation to implement the plan described under subparagraph (A).

    (c) CRITERIA-

      (1) INEQUITABLE FEDERAL SUBSIDY- The Commission shall recommend the elimination of any inequitable Federal subsidy.

      (2) DUPLICATIVE- If 2 or more agencies or programs are performing the same essential function and the function can be consolidated or streamlined into a single agency or program, the Commission shall recommend that the agency or program be realigned.

      (3) WASTEFUL OR INEFFICIENT- The Commission shall recommend the realignment or elimination of any agency or program that has wasted Federal funds by--

        (A) egregious spending;

        (B) mismanagement of resources and personnel; or

        (C) use of such funds for personal benefit or the benefit of a special interest group.

      (4) OUTDATED, IRRELEVANT, OR FAILED- The Commission shall recommend the elimination of any agency or program that--

        (A) has completed its intended purpose;

        (B) has become irrelevant; or

        (C) has failed to meet its objectives.

    (d) REPORTS-

      (1) TIMING-

        (A) IN GENERAL- Except as provided in paragraph (2), the Commission shall submit to the President and Congress a report containing the information described in paragraph (2) not later the day on which the President submits the budget to Congress under section 1105 of title 31, United States Code.

        (B) INITIAL REPORT- Not later than 1 year after the date of the enactment of this Act, the Commission shall submit to the President and Congress an initial report containing the information described in paragraph (2).

      (2) CONTENTS OF REPORT- The report described in paragraph (1) shall include--

        (A) the plan described under subsection (b)(2)(A), with supporting documentation for all recommendations; and

        (B) the proposed legislation described under subsection (b)(2)(B).

SEC. 203. POWERS OF THE COMMISSION.

    (a) HEARINGS- The Commission or, at its direction, any subcommittee or member of the Commission, may, for the purpose of carrying out this subtitle--

      (1) hold such hearings, sit and act at such times and places, take such testimony, receive such evidence, and administer such oaths as any member of the Commission considers advisable;

      (2) require, by subpoena or otherwise, the attendance and testimony of such witnesses as any member of the Commission considers advisable; and

      (3) require, by subpoena or otherwise, the production of such books, records, correspondence, memoranda, papers, documents, tapes, and other evidentiary materials relating to any matter under investigation by the Commission.

    (b) SUBPOENAS-

      (1) ISSUANCE- Subpoenas issued under subsection (a) shall bear the signature of the chairperson of the Commission and shall be served by any person or class of persons designated by the chairperson for that purpose.

      (2) ENFORCEMENT- In the case of contumacy or failure to obey a subpoena issued under subsection (a), the United States district court for the judicial district in which the subpoenaed person resides, is served, or may be found, may issue an order requiring such person to appear at any designated place to testify or to produce documentary or other evidence. Any failure to obey the order of the court may be punished by the court as a contempt of that court.

    (c) INFORMATION FROM FEDERAL AGENCIES- The Commission may secure directly from any Federal department or agency such information as the Commission considers necessary to carry out this subtitle. Upon request of the chairperson of the Commission, the head of such department or agency shall furnish such information to the Commission.

    (d) POSTAL SERVICES- The Commission may use the United States mails in the same manner and under the same conditions as other departments and agencies of the Federal Government.

    (e) GIFTS- The Commission may accept, use, and dispose of gifts or donations of services or property.

SEC. 204. COMMISSION PERSONNEL MATTERS.

    (a) COMPENSATION OF MEMBERS-

      (1) NON-FEDERAL MEMBERS- Except as provided under subsection (b), each member of the Commission who is not an officer or employee of the Federal Government shall not be compensated.

      (2) FEDERAL OFFICERS OR EMPLOYEES- All members of the Commission who are officers or employees of the United States shall serve without compensation in addition to that received for their services as officers or employees of the United States.

    (b) TRAVEL EXPENSES- The members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Commission.

    (c) STAFF-

      (1) IN GENERAL- The chairperson of the Commission may, without regard to the civil service laws and regulations, appoint and terminate an executive director and such other additional personnel as may be necessary to enable the Commission to perform its duties. The employment of an executive director shall be subject to confirmation by the Commission.

      (2) COMPENSATION- Upon the approval of the chairperson, the executive director may fix the compensation of the executive director and other personnel without regard to chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay for the executive director and other personnel may not exceed the maximum rate payable for a position at GS-15 of the General Schedule under section 5332 of such title.

      (3) PERSONNEL AS FEDERAL EMPLOYEES-

        (A) IN GENERAL- The executive director and any personnel of the Commission who are employees shall be employees under section 2105 of title 5, United States Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and 90 of that title.

        (B) MEMBERS OF COMMISSION- Subparagraph (A) shall not be construed to apply to members of the Commission.

    (d) DETAIL OF GOVERNMENT EMPLOYEES- Any Federal Government employee may be detailed to the Commission without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege.

    (e) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES- The chairperson of the Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, at rates for individuals which do not exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of such title.

SEC. 205. CONGRESSIONAL CONSIDERATION OF REFORM PROPOSALS.

    (a) DEFINITIONS- In this section:

      (1) IMPLEMENTATION BILL- The term ‘implementation bill’ means only a bill which is introduced as provided under subsection (b), and contains the proposed legislation included in the report submitted to Congress under section 202, without modification.

      (2) CALENDAR DAY- The term ‘calendar day’ means a calendar day other than 1 on which either House is not in session because of an adjournment of more than 3 days to a date certain.

    (b) INTRODUCTION; REFERRAL; AND REPORT OR DISCHARGE-

      (1) INTRODUCTION- On the first calendar day on which both Houses are in session, on or immediately following the date on which the report is submitted to Congress under section 202, a single implementation bill shall be introduced (by request)--

        (A) in the Senate by the Majority Leader of the Senate, for himself and the Minority Leader of the Senate, or by Members of the Senate designated by the Majority Leader and Minority Leader of the Senate; and

        (B) in the House of Representatives by the Speaker of the House of Representatives, for himself and the Minority Leader of the House of Representatives, or by Members of the House of Representatives designated by the Speaker and Minority Leader of the House of Representatives.

      (2) REFERRAL- The implementation bills introduced under paragraph (1) shall be referred to any appropriate committee of jurisdiction in the Senate and any appropriate committee of jurisdiction in the House of Representatives. A committee to which an implementation bill is referred under this paragraph may report such bill to the respective House without amendment.

      (3) REPORT OR DISCHARGE- If a committee to which an implementation bill is referred has not reported such bill by the end of the 15th calendar day after the date of the introduction of such bill, such committee shall be immediately discharged from further consideration of such bill, and upon being reported or discharged from the committee, such bill shall be placed on the appropriate calendar.

    (c) FLOOR CONSIDERATION-

      (1) IN GENERAL- When the committee to which an implementation bill is referred has reported, or has been discharged under subsection (b)(3), it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for any Member of the respective House to move to proceed to the consideration of the implementation bill, and all points of order against the implementation bill (and against consideration of the implementation bill) are waived. The motion is highly privileged in the House of Representatives and is privileged in the Senate and is not debatable. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the implementation bill is agreed to, the implementation bill shall remain the unfinished business of the respective House until disposed of.

      (2) AMENDMENTS- An implementation bill may not be amended in the Senate or the House of Representatives.

      (3) DEBATE- Debate on the implementation bill, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the resolution. A motion further to limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the implementation bill is not in order. A motion to reconsider the vote by which the implementation bill is agreed to or disagreed to is not in order.

      (4) VOTE ON FINAL PASSAGE- Immediately following the conclusion of the debate on an implementation bill, and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the appropriate House, the vote on final passage of the implementation bill shall occur.

      (5) RULINGS OF THE CHAIR ON PROCEDURE- Appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to an implementation bill shall be decided without debate.

    (d) COORDINATION WITH ACTION BY OTHER HOUSE- If, before the passage by 1 House of an implementation bill of that House, that House receives from the other House an implementation bill, then the following procedures shall apply:

      (1) NONREFERRAL- The implementation bill of the other House shall not be referred to a committee.

      (2) VOTE ON BILL OF OTHER HOUSE- With respect to an implementation bill of the House receiving the implementation bill--

        (A) the procedure in that House shall be the same as if no implementation bill had been received from the other House; but

        (B) the vote on final passage shall be on the implementation bill of the other House.

    (e) RULES OF SENATE AND HOUSE OF REPRESENTATIVES- This section is enacted by Congress--

      (1) as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such it is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of an implementation bill described in subsection (a), and it supersedes other rules only to the extent that it is inconsistent with such rules; and

      (2) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.

SEC. 206. TRANSFER OF 1.25 PERCENT OF TAXABLE PAYROLL TO SOCIAL SECURITY.

    Not later than September 30 of each year, the Secretary of the Treasury shall transfer an amount equal to 1.25 percent of the taxable payroll for the preceding calendar year to the Federal Old-Age and Survivors Insurance Trust Fund.

SEC. 207. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be necessary for carrying out this subtitle.

Subtitle B--Other Sustainability Provisions

SEC. 211. REDUCTION IN THE AMOUNT OF CERTAIN TRANSFERS TO MEDICARE TRUST FUND.

    Subparagraph (A) of section 121(e)(1) of the Social Security Amendments of 1983 (42 U.S.C. 401 note), as amended by section 13215(c)(1) of the Omnibus Budget Reconciliation Act of 1993, is amended--

      (1) in clause (ii), by striking ‘the amounts’ and inserting ‘the applicable percentage of the amounts’; and

      (2) by adding at the end the following: ‘For purposes of clause (ii), the applicable percentage for a year is equal to 100 percent, reduced (but not below zero) by 10 percentage points for each year after 2005.’.

SEC. 212. MECHANISM FOR REMEDYING UNFORESEEN DETERIORATION IN SOCIAL SECURITY SOLVENCY.

    (a) IN GENERAL- Section 709 of the Social Security Act (42 U.S.C. 910) is amended--

      (1) by redesignating subsection (b) as subsection (c); and

      (2) by striking ‘SEC. 709. (a) If the Board of Trustees’ and all that follows through ‘any such Trust Fund’ and inserting the following:

    ‘SEC. 709. (a)(1)(A) If the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund determines at any time, using intermediate actuarial assumptions, that the balance ratio of either such Trust Fund for any calendar year during the succeeding period of 75 calendar years will be zero, the Board shall promptly submit to Congress and to the President a report setting forth its recommendations for statutory adjustments affecting the receipts and disbursements of such Trust Fund necessary to maintain the balance ratio of such Trust Fund at not less than 50 percent, with due regard to the economic conditions which created such inadequacy in the balance ratio and the amount of time necessary to alleviate such inadequacy in a prudent manner. The report shall set forth specifically the extent to which benefits would have to be reduced, taxes under section 1401, 3101, or 3111 of the Internal Revenue Code of 1986 would have to be increased, or a combination thereof, in order to obtain the objectives referred to in the preceding sentence.

    ‘(B) If the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund determines at any time, using intermediate actuarial assumptions, that the balance ratio of either such Trust Fund for any calendar year during the succeeding period of 75 calendar years will be 200 percent or greater, the Board shall promptly submit to Congress and to the President a report setting forth its recommendations on any of the following:

      ‘(i) An increase in the amount of contributions for personal retirement accounts under part B of title II of the Social Security Act.

      ‘(ii) An increase in the benefits under part A of title II of the Social Security Act.

      ‘(iii) A reduction in the tax rate under chapters 2 and 21 of the Internal Revenue Code of 1986.

      ‘(iv) Any other proposal which ensures adequate benefits for individuals covered under title II of the Social Security Act and maintains the solvency and sustainability of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund.

    ‘(2)(A) The President shall, not later than 30 days after the submission of any report under paragraph (1), transmit to the Board and to Congress a report containing the President’s approval or disapproval of the Board’s recommendations.

    ‘(B) If the President approves all the recommendations of the Board, the President shall transmit a copy of such recommendations to Congress as the President’s recommendations, together with a certification of the President’s adoption of such recommendations.

    ‘(C) If the President disapproves the recommendations of the Board, in whole or in part, the President shall transmit to the Board and to Congress the reasons for that disapproval. The Board shall then transmit to Congress and the President, not later than 60 days after the date of the submission of the original report to the President, a revised list of recommendations.

    ‘(D) If the President approves all of the revised recommendations of the Board transmitted to the President under subparagraph (C), the President shall transmit a copy of such revised recommendations to Congress as the President’s recommendations, together with a certification of the President’s adoption of such recommendations.

    ‘(E) If the President disapproves the revised recommendations of the Board, in whole or in part, the President shall transmit to the Board and to Congress the reasons for that disapproval, together with such revisions to such recommendations as the President determines are necessary to bring such recommendations within the President’s approval. The President shall transmit a copy of such recommendations, as so revised, to the Board and Congress as the President’s recommendations, together with a certification of the President’s adoption of such recommendations.

    ‘(3)(A) This paragraph is enacted by Congress--

      ‘(i) as an exercise of the rulemaking power of the Senate and the House of Representatives, respectively, and as such it is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a joint resolution described in subparagraph (B), and it supersedes other rules only to the extent that it is inconsistent with such rules; and

      ‘(ii) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.

    ‘(B) For purposes of this paragraph, the term ‘joint resolution’ means only a joint resolution which is introduced within the 10-day period beginning on the date on which the President transmits the President’s recommendations, together with the President’s certification, to Congress under subparagraph (B), (D), or (E) of paragraph (2), and--

      ‘(i) which does not have a preamble;

      ‘(ii) the matter after the resolving clause of which is as follows: ‘That the Congress approves the recommendations of the President as transmitted on XX pursuant to section 709(a) of the Social Security Act, as follows: XXXX’, the first blank space being filled in with the appropriate date and the second blank space being filled in with the statutory adjustments contained in the recommendations; and

      ‘(iii) the title of which is as follows: ‘Joint resolution approving the recommendations of the President regarding social security.’.

    ‘(C) A joint resolution described in subparagraph (B) that is introduced in the House of Representatives shall be referred to the Committee on Ways and Means of the House of Representatives. A joint resolution described in subparagraph (B) introduced in the Senate shall be referred to the Committee on Finance of the Senate.

    ‘(D) If the committee to which a joint resolution described in subparagraph (B) is referred has not reported such joint resolution (or an identical joint resolution) by the end of the 20-day period beginning on the date on which the President transmits the recommendation to Congress under paragraph (2), such committee shall be, at the end of such period, discharged from further consideration of such joint resolution, and such joint resolution shall be placed on the appropriate calendar of the House involved.

    ‘(E)(i) On or after the third day after the date on which the committee to which such a joint resolution is referred has reported, or has been discharged (under subparagraph (D)) from further consideration of, such a joint resolution, it is in order (even though a previous motion to the same effect has been disagreed to) for any Member of the respective House to move to proceed to the consideration of the joint resolution. A Member may make the motion only on the day after the calendar day on which the Member announces to the House concerned the Member’s intention to make the motion, except that, in the case of the House of Representatives, the motion may be made without such prior announcement if the motion is made by direction of the committee to which the joint resolution was referred. All points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion is highly privileged in the House of Representatives and is privileged in the Senate and is not debatable. The motion is not subject to amendment, or

to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the joint resolution is agreed to, the respective House shall immediately proceed to consideration of the joint resolution without intervening motion, order, or other business, and the joint resolution shall remain the unfinished business of the respective House until disposed of.

    ‘(ii) Debate on the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 2 hours, which shall be divided equally between those favoring and those opposing the joint resolution. An amendment to the joint resolution is not in order. A motion further to limit debate is in order and not debatable. A motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order. A motion to reconsider the vote by which the joint resolution is agreed to or disagreed to is not in order.

    ‘(iii) Immediately following the conclusion of the debate on a joint resolution described in subparagraph (B) and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the appropriate House, the vote on final passage of the joint resolution shall occur.

    ‘(iv) Appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to a joint resolution described in subparagraph (B) shall be decided without debate.

    ‘(F)(i) If, before the passage by one House of a joint resolution of that House described in subparagraph (B), that House receives from the other House a joint resolution described in subparagraph (B), then the following procedures shall apply:

      ‘(I) The joint resolution of the other House shall not be referred to a committee and may not be considered in the House receiving it except in the case of final passage as provided in subclause (II).

      ‘(II) With respect to a joint resolution described in subparagraph (B) of the House receiving the joint resolution, the procedure in that House shall be the same as if no joint resolution had been received from the other House, but the vote on final passage shall be on the joint resolution of the other House.

    ‘(ii) Upon disposition of the joint resolution received from the other House, it shall no longer be in order to consider the joint resolution that originated in the receiving House.

    ‘(b) If the Board of Trustees of the Federal Hospital Insurance Trust Fund or the Federal Supplementary Medical Insurance Trust Fund determines at any time that the balance ratio of either such Trust Fund’.

    (b) CONFORMING AMENDMENTS-

      (1) Section 709(b) of the Social Security Act (as amended by subsection (a) of this section) is amended by striking ‘any such’ and inserting ‘either such’.

      (2) Section 709(c) of such Act (as redesignated by subsection (a) of this section) is amended by inserting ‘or (b)’ after ‘subsection (a)’.

TITLE III--ADJUSTMENTS FOR WIDOWS’ AND WIDOWERS’ INSURANCE BENEFITS

SEC. 301. ADJUSTMENTS FOR WIDOWS’ AND WIDOWERS’ INSURANCE BENEFITS.

    (a) WIDOW’S BENEFIT- Section 202(e)(2)(A) of the Social Security Act (42 U.S.C. 402(e)(2)(A)) is amended by striking ‘equal to’ and all that follows and inserting ‘equal to the greater of--

      ‘(i) the primary insurance amount (as determined for purposes of this subsection after application of subparagraphs (B) and (C)) of such deceased individual, or

      ‘(ii) the lesser of--

        ‘(I) 75 percent of the joint benefit which would have been received by the widow or surviving divorced wife and the deceased individual for such month if such individual had not died, or

        ‘(II) the benefit which would have been received by the widow or surviving divorced wife if such individual’s contributions were based on the average contribution and benefit base amount (determined under section 230) for each contribution base year (as determined under section 215(b)(2)(B)(ii)) of such individual.’.

    (b) WIDOWER’S BENEFIT- Section 202(f)(3)(A) of the Social Security Act (42 U.S.C. 402(b)(3)(A)) is amended by striking ‘equal to’ and all that follows and inserting ‘equal to the greater of--

      ‘(i) the primary insurance amount (as determined for purposes of this subsection after application of subparagraphs (B) and (C)) of such deceased individual, or

      ‘(ii) the lesser of--

        ‘(I) 75 percent of the joint benefit which would have been received by the widow or surviving divorced wife and the deceased individual for such month if such individual had not died, or

        ‘(II) the benefit which would have been received by the widower or surviving divorced husband if such individual’s contributions were based on the average contribution and benefit base amount (determined under section 230) for each contribution base year (as determined under section 215(b)(2)(B)(ii)) of such individual.’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply individuals entitled to benefits after the date of enactment of this Act.

TITLE IV--INVESTOR EDUCATION PROGRAMS

SEC. 401. ESTABLISHMENT OF THE COMMISSION TO STRENGTHEN FINANCIAL EDUCATION PROGRAMS.

    (a) ESTABLISHMENT- There is established the Commission to Strengthen Financial Education Programs (in this Act referred to as the ‘Commission’).

    (b) MEMBERSHIP-

      (1) COMPOSITION- The Commission shall be composed of 12 members of whom--

        (A) 1 shall be the Chairman of the Personal Retirement Account Board;

        (B) 1 shall be the Secretary of the Treasury;

        (C) 1 shall be the Secretary of Education;

        (D) 1 shall be the Chairman of the Federal Reserve Board;

        (E) 1 shall be the Secretary of Labor;

        (F) 1 shall be the Commissioner of the Social Security Administration;

        (G) 1 shall be the Chairman of the Securities and Exchange Commission; and

        (H) 5 shall be appointed by the President from among persons who are recognized in the field of promoting understanding of financial literacy issues.

      (2) DATE- The appointments of the members of the Commission under paragraph (1)(H) shall be made not later than 30 days after the date of the enactment of this Act.

    (c) PERIOD OF APPOINTMENT; VACANCIES- Members shall be appointed for the life of the Commission. Any vacancy in the Commission shall not affect its powers, but shall be filled in the same manner as the original appointment.

    (d) INITIAL MEETING- Not later than 60 days after the date of the enactment of this Act, the Commission shall hold its first meeting.

    (e) MEETINGS- The Commission shall meet at the call of the Chairman.

    (f) QUORUM- A majority of the members of the Commission shall constitute a quorum, but a lesser number of members may hold hearings.

    (g) CHAIRMAN AND VICE CHAIRMAN- The Commission shall select a Chairman and Vice Chairman from among its members.

SEC. 402. DUTIES OF THE COMMISSION.

    (a) STUDY-

      (1) IN GENERAL- The Commission shall conduct a thorough study of all matters relating to programs to increase the financial literacy of Americans.

      (2) MATTERS STUDIED- The matters studied by the Commission shall include--

        (A) existing Federal and non-Federal financial literacy programs, including a review and performance evaluation of such programs;

        (B) the coordination of existing Federal and non-Federal financial education efforts; and

        (C) ideas for new public initiatives to increase the financial literacy of all Americans.

    (b) RECOMMENDATIONS- The Commission shall develop recommendations on--

      (1) streamlining existing financial literacy programs;

      (2) increasing financial literacy for all Americans; and

      (3) new avenues for public-private partnerships in financial literacy.

    (c) REPORT- Not later than 6 months after the date of the enactment of this Act, the Commission shall submit a report to the President and to Congress which shall contain a detailed statement of the findings and conclusions of the Commission, together with its recommendations for such legislation and administrative actions as it considers appropriate.

SEC. 403. POWERS OF THE COMMISSION.

    (a) HEARINGS- The Commission may hold such hearings, sit and act at such times and places, take such testimony, and receive such evidence as the Commission considers advisable to carry out this Act.

    (b) INFORMATION FROM FEDERAL AGENCIES- The Commission may secure directly from any Federal department or agency such information as the Commission considers necessary to carry out this Act. Upon request of the Chairman of the Commission, the head of such department or agency shall furnish such information to the Commission.

    (c) POSTAL SERVICES- The Commission may use the United States mails in the same manner and under the same conditions as other departments and agencies of the Federal Government.

    (d) GIFTS- The Commission may accept, use, and dispose of gifts or donations of services or property.

SEC. 404. COMMISSION PERSONNEL MATTERS.

    (a) COMPENSATION OF MEMBERS- Each member of the Commission who is not an officer or employee of the Federal Government shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during which such member is engaged in the performance of the duties of the Commission. All members of the Commission who are officers or employees of the United States shall serve without compensation in addition to that received for their services as officers or employees of the United States.

    (b) TRAVEL EXPENSES- The members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Commission.

    (c) STAFF-

      (1) IN GENERAL- The Chairman of the Commission may, without regard to the civil service laws and regulations, appoint and terminate an executive director and such other additional personnel as may be necessary to enable the Commission to perform its duties. The employment of an executive director shall be subject to confirmation by the Commission.

      (2) COMPENSATION- The Chairman of the Commission may fix the compensation of the executive director and other personnel without regard to chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay for the executive director and other personnel may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title.

    (d) DETAIL OF GOVERNMENT EMPLOYEES- Any Federal Government employee may be detailed to the Commission without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege.

    (e) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES- The Chairman of the Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, at rates for individuals which do not exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of such title.

SEC. 405. TERMINATION OF THE COMMISSION.

    The Commission shall terminate 90 days after the date on which the Commission submits its report under section 402(c).

SEC. 406. AUTHORIZATION OF APPROPRIATIONS.

    (a) IN GENERAL- There are authorized to be appropriated such sums as are necessary for fiscal year 2004 to the Commission to carry out this title.

    (b) AVAILABILITY- Any sums appropriated under the authorization contained in this section shall remain available, without fiscal year limitation, until expended.