HR 530 · 109th Congress 2005–2007, ended

Individual Social Security Investment Program Act of 2005

Introduced Feb 2, 2005 Originated House Sponsor Sam Johnson R-TX

Fact sheet

Latest action · Jul 12, 2005 Sponsor introductory remarks on measure. (CR H5644)

Progress

Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.

  1. IntroducedFeb 2, 2005
  2. Passed HouseNot reached
  3. Passed SenateNot reached
  4. To the PresidentNot reached
  5. Became lawNot reached

Summary

Individual Social Security Investment Program Act of 2005 - 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, 1984, as well as electing participants born between January 1, 1951, and January 1, 1984, 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 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.

Provides that, in any case in which a participant is entitled to, or eligible for, need-based cash benefits for any month, the supplemental minimum benefit payments otherwise payable to such participant for such month shall be reduced by the total amount of such recognized governmental cash benefits for such month.

Establishes in the executive branch of the Government an Individual Investment 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: (1) consumer price indexing of benefits for non-disability part A beneficiaries; and (2) the maintance of adequate balances in the Social Security trust funds.

Cosponsors 15

Members who signed on, in the order they did. Signatures ran from Feb 2, 2005 to May 12, 2005, with 8 there on the day it was introduced.

SeatCosponsorSigned on
R-IDC. L. (Butch) OtterOriginalFeb 2, 2005
R-UTChris CannonOriginalFeb 2, 2005
R-INDan BurtonOriginalFeb 2, 2005
R-AZJeff FlakeOriginalFeb 2, 2005
R-SCJoe WilsonOriginalFeb 2, 2005
R-TXJohn R. CarterOriginalFeb 2, 2005
R-MDRoscoe G. BartlettOriginalFeb 2, 2005
R-FLTom FeeneyOriginalFeb 2, 2005
R-AZJohn B. ShadeggFeb 8, 2005
R-CAJohn T. DoolittleFeb 8, 2005
R-FLJeff MillerMar 2, 2005
R-FLConnie MackMay 4, 2005
R-UTRob BishopMay 10, 2005
R-AZTrent FranksMay 11, 2005
R-WYBarbara CubinMay 12, 2005

Actions 5

Everything that happened, newest first.

  1. Jul 12, 2005Sponsor introductory remarks on measure. (CR H5644)
  2. Feb 14, 2005Referred to the Subcommittee on Social Security.
  3. Feb 2, 2005Introduced in House
  4. Feb 2, 2005Referred to the House Committee on Ways and Means.
  5. Feb 1, 2005Sponsor introductory remarks on measure. (CR H241)

Related bills 6

Companion bills and other measures the record links to this one.

BillTitleRelationshipLatest action
HR 440Bipartisan Retirement Security Act of 2005Related billApr 19, 2005
S 540Saving Social Security Act of 2005Related billMar 7, 2005
HR 750Social Security Guarantee Plus Act of 2005Related billMar 3, 2005
S 857Social Security Personal Savings Guarantee and Prosperity Act of 2005Related billApr 20, 2005
HR 1776Social Security Personal Savings Guarantee and Prosperity Act of 2005Related billMay 9, 2005
Show all 6 related bills

Subjects

Assigned by the Library of Congress. Policy area: Social Welfare.

Text 1

Each version as it was printed, newest first.

  1. Feb 2, 2005Introduced in House

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