Individual Social Security Investment Program Act of 2004

Summary

Individual Social Security Investment Program Act of 2004 - Amends title II (Old Age, Survivors, and Disability Insurance) (OASDI) of the Social Security Act to add a new part B (Individual Social Security Investment Program) to change Social Security into a system of individual accounts where workers born on or after January 1, 1950, who have elected to participate in the new part B program have ownership of and control over the investment of their retirement funds in various investment vehicles: (1) Tier I Investment Fund; (2) Tier II Investment Fund; and (3) Tier III Investment Accounts. Allows participating workers choosing the individual account option to have 100 percent of their redirected Social Security contribution for the calendar year (6.2 percent of the sum of the total wages paid to, and self-employment income derived by, the participant) deposited into the Tier I Investment Fund. Provides for transfer of any amount held in the Tier I Investment Fund into the Tier II Investment Fund, and for an individual's first election of a Tier III investment account once the total balance of the Tier II account exceeds the minimum deposit balance of $10,000. Directs the Executive Director to establish and maintain a part B totalization account for each participant. Provides that workers choosing the individual account under the Tier II option with a variety of investment options, with the initial default option set at 60 percent stocks, and 40 percent bonds. Provides for retirement distributions, including purchase of annuities. Provides that workers who choose the individual account option shall receive a recognition bond, redeemable upon reaching retirement age, based on the accrued value of their lifetime to date benefits. Establishes in the executive branch of the Government an Individual Unvestment Board to administer the program established under this Act. Amends the Internal Revenue Code to exempt from income taxation any fund created, account established, or annuity under part B of title II of the Social Security Act, unless subject to taxes on unrelated business income of charitible organizations. Excludes from the gross income of a distributee or payee: (1) any fund or account distribution or any annuity payment; or (2) the value of a recognition bond issued to a participant, or the proceeds from its sale or redemption. Amends SSA title II to provide that, except with respect to determination of disability insurance benefits, a participant shall not be credited with wages or self-employment income under part B of SSA title II. Provides for the maintance of adequate balances in the Social Security trust funds.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 22 July 2004

   Introduced

   Referred to the House Committee on Ways and Means.

   Source: IntroReferral

2. 22 July 2004

   Introduced

   Introduced in House

   Source: IntroReferral

3. 22 July 2004

   Introduced

   Introduced in House

   Source: IntroReferral

4. 3 August 2004

   Referred

   Referred to the Subcommittee on Social Security.

   Source: Committee

Votes

No vote records are attached yet.

Versions

• Introduced in House · 22 July 2004 · Official file

Documents

3 official files

• Introduced in House (text)

  Introduced in House · EN · 22 July 2004

  ViewDownloadOpen at official source

• Introduced in House (PDF)

  Introduced in House · EN · 22 July 2004

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 22 July 2004

  Open at official source

Sponsors

• SAM JOHNSON · R · Sponsor
• Sen. Toomey, Patrick [R-PA] · R · Sponsor
• Sen. Flake, Jeff [R-AZ] · R · Sponsor
• Rep. Dunn, Jennifer [R-WA-8] · R · Sponsor
• Rep. Shadegg, John B. [R-AZ-3] · R · Sponsor
• Rep. Feeney, Tom [R-FL-24] · R · Sponsor
• Rep. Smith, Nick [R-MI-7] · R · Sponsor
• Rep. Doolittle, John T. [R-CA-4] · R · Sponsor
• Rep. Burton, Dan [R-IN-6] · R · Sponsor
• Rep. Hoekstra, Peter [R-MI-2] · R · Sponsor
• Rep. Otter, C. L. (Butch) [R-ID-1] · R · Sponsor
• Rep. Bartlett, Roscoe G. [R-MD-6] · R · Sponsor
• Trent Franks · R · Sponsor
• Rep. Pitts, Joseph R. [R-PA-16] · R · Sponsor
• Rep. Wilson, Joe [R-SC-2] · R · Sponsor
• Rep. Linder, John [R-GA-7] · R · Cosponsor
• Rep. Miller, Jeff [R-FL-1] · R · Cosponsor
• Rob Bishop · R · Cosponsor
• Rep. Cannon, Chris [R-UT-3] · R · Cosponsor
• · hswm00 · Standing

Related records

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