H.R.3758 - Social Security Solvency Act of 1996104th Congress (1995-1996)
|Sponsor:||Rep. Smith, Nick [R-MI-7] (Introduced 07/09/1996)|
|Committees:||House - Ways and Means|
|Latest Action:||07/16/1996 Sponsor introductory remarks on measure. (All Actions)|
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Subject — Policy Area:
- Social Welfare
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Summary: H.R.3758 — 104th Congress (1995-1996)All Bill Information (Except Text)
Introduced in House (07/09/1996)
TABLE OF CONTENTS:
Title I: Individual Retirement Security Program
Title II: Social Security Benefit Reforms
Social Security Solvency Act of 1996 - Title I: Individual Retirement Security Program - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSA) to direct the Commissioner of Social Security to publish in the Federal Register each year the reallocation percentage for amounts otherwise appropriated for the following fiscal year to the OASDI trust funds from Federal Insurance Contributions Act (FICA) taxes imposed with regard to wages and self-support income.
Defines reallocation percentage as the Commissioner's best estimate of the maximum percentage by which such appropriations may be reduced: (1) in any fiscal year before FY 2012, so as to maintain a linear annual reduction in the trust funds performance ratio from the amount of such ratio for the fiscal year preceding such fiscal year to an amount of such ratio for FY 2012 equal to 1.00; and (2) in any fiscal year after FY 2011, so as to maintain a trust funds performance ratio for such fiscal year of 1.00. Defines trust funds performance ratio for any fiscal year as the ratio of the total amount paid into the OASDI trust funds (with specified exceptions) to the total benefit amount which will be paid out (with specified disregards).
Requires a reduction in trust fund appropriations, to the extent attributable to the taxes paid with respect to a covered employee or individual during the fiscal year, by the reallocation percentage for the fiscal year involved in any case in which such an employee or self-employed individual has elected to enter into elective retirement status under the new individual retirement security program established by this Act.
Creates a new Individual Retirement Security Program under OASDI in which a covered employee or covered self-employed individual may elect to enter into elective retirement status and have retirement contributions made to one or more designated personal retirement savings accounts.
Provides for adjustments to primary insurance amounts of such covered individuals in elective status under such program.
Amends the Internal Revenue Code to exclude from gross income any amount deposited in a personal retirement savings account. Includes distributions in gross income as if they were social security benefits.
Amends the Social Security Amendments of 1983 to appropriate into the hospital insurance trust fund and each payor fund revenues from increases in the income tax on social security benefits.
Title II: Social Security Benefit Reforms - Amends SSA title II to provide for: (1) a specified limitation on the payment of certain benefits in excess of contributions during years of higher income; (2) a gradual increase in retirement age (up to 69 and beyond after December 31, 2015) and early retirement age; (3) adjustments to bend points in determining primary insurance amounts; (4) information relating to benefit limitations provided in social security account statements; (5) coverage of newly hired State and local employees; and (6) phased reduction in spousal benefits other than survivor's benefits to 33 percent of primary insurance amount.