Social Security Solvency Pilot Program Act of 1998

Summary

Social Security Solvency Pilot Program Act of 1998 - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSA) to add a new part B (Individual Retirement Security Program). Establishes a system of personal retirement savings accounts which covered employees and self-employed individuals between the ages of 16 and 21 may elect, between November 30, 1998, and February 1, 1999, to open. Requires the Secretary of the Treasury to deposit into such an account (including any designated account of a covered employee or self-employed individual who is the spouse of another electing employee or individual) the equivalent of 2.5 percent of the wages or self-employed income with respect to which social security taxes were determined. Sets forth a formula for restricting the number of electing employees or individuals so that projected deposits do not exceed the surplus in the FY 1998 Federal budget. Requires periodic reports by account trustees to account holders. Makes the surplus in the FY 1998 Federal budget available for account deposits. Authorizes additional appropriations as necessary. (Sec. 4) Requires a 20 percent reduction in appropriations to the Federal OASDI and Disability Insurance Trust Funds, to the extent attributable to the taxes paid during the fiscal year with respect to a covered employee or self-employed individual. (Sec. 5) Provides for formula adjustments to primary OASDI insurance amounts of such covered individuals with designated accounts in such program. (Sec. 6) Amends the Internal Revenue Code to allow a tax deduction in the case of an electing personal retirement savings account participant in an amount equal to 50 percent (up to $2,000) of the amount the individual contributed during the taxable year to a personal retirement savings account maintained for the individual's benefit, regardless of whether or not the taxpayer itemizes other deductions. Excludes from gross income any amount deposited in a personal retirement savings account. Includes distributions in gross income as if they were social security benefits. Allows an excise tax on excess contributions to a personal retirement savings account. (Sec. 8) Prescribes requirements for investment of the Trust Funds in marketable securities during FY 1999.

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Documents

3 official files

• Introduced in House (text)

  Introduced in House · EN · 26 March 1998

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• Introduced in House (PDF)

  Introduced in House · EN · 26 March 1998

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• Introduced in House

  summary · EN · 26 March 1998

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