,i #aacth ,,congress #b;d ,session ,h4 ,r4 #ecjf ,,in ,,the ,,house ,,of ,,representatives ,july #ca1 #bjad ,mr4 ,larson of ,connecticut introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committees on ,education and the ,workforce and the ,budget1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to protect our ,social ,security system and improve benefits for current and future generations4 #a4 ,short title ,this ,act may be cited as the ,social ,security #bajj ,act4 ,i ,strengthening ,benefits #aja4 ,across-the-board benefit increase 7a7 ,in general ,section #bae7;a77#a77;,a77i7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;a77#a77;,a77i77 is amended by striking #ij percent and inserting #ic percent4 7b7 ,effective date 7#a7 ,in general ,the amendment made by subsection 7a7 shall apply with respect to monthly insurance benefits payable for any month after ,december #bjad4 7#b7 ,recomputation of primary insurance amounts ,notwithstanding section #bae7;f7 of the ,social ,security ,act1 the ,commissioner of ,social ,security shall recompute primary insurance amounts originally computed for months prior to ,january #bjae to the extent necessary to carry out the amendments made by this section4 #ajb4 ,computation of cost-of-living increases 7a7 ,in general ,section #bae7;i77#a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;i77#a77 is amended by adding at the end the following new subparagraph3 7,h7 the term ,consumer ,price ,index means the ,consumer ,price ,index for ,elderly ,consumers 7,,cpi-,e1 as published by the ,bureau of ,labor ,statistics of the ,department of ,labor74 4 7b7 ,application to pre-#aigi law 7#a7 ,in general ,section #bae7;i77#a7 of the ,social ,security ,act as in effect in ,december #aigh1 and as applied in certain cases under the provisions of such ,act as in effect after ,december #aigh1 is amended by adding at the end the following new subparagraph3 7,d7 the term ,consumer ,price ,index means the ,consumer ,price ,index for ,elderly ,consumers 7,,cpi-,e1 as published by the ,bureau of ,labor ,statistics of the ,department of ,labor74 4 7#b7 ,conforming change ,section #bae7;i77#d7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;i77#d77 is amended by inserting and by section #ajb of the ,social ,security #bajj ,act after #aihf4 7c7 ,no effect on adjustments under other laws ,section #bae7;i7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;i77 is amended by adding at the end the following3 7#f7 ,any provision of law 7other than in this title1 title ,,viii1 or title ,,xvi7 which provides for adjustment of an amount based on a change in benefit amounts resulting from a determination made under this subsection shall be applied and administered without regard to the amendments made by section #ajb of the ,social ,security #bajj ,act4 4 7d7 ,publication of ,consumer ,price ,index for ,elderly ,consumers ,the ,bureau of ,labor ,statistics of the ,department of ,labor shall prepare and publish the index authorized by section #aia of the ,older ,americans ,amendments ,act of #aihg 7#bi ,u4,s4,c4 #b note7 for each calendar month1 beginning with ,july of the calendar year following the calendar year in which this ,act is enacted1 and such index shall be known as the ,consumer ,price ,index for ,elderly ,consumers4 7e7 ,effective date ,the amendments made by subsection 7a7 shall apply to determinations made with respect to cost-of-living computation quarters 7as defined in section #bae7;i77#a77;,b7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;i77#a77;,b777 ending on or after ,september #cj of the second calendar year following the calendar year in which this ,act is enacted4 #ajc4 ,increase in minimum benefit for lifetime low earners based on years in the workforce 7a7 ,in general ,section #bae7;a77#a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;a77#a77 is amended-- 7#a7 by redesignating subparagraph 7,d7 as subparagraph 7,e72 and 7#b7 by inserting after subparagraph 7,c7 the following new subparagraph3 7,d7 7i7 ,effective with respect to the benefits of individuals who become eligible for old-age insurance benefits or disability insurance benefits 7or die before becoming so eligible7 after #bjad1 no primary insurance amount computed under subparagraph 7,a7 may be less than the greater of-- 7,i7 the minimum monthly amount computed under subparagraph 7,c72 or 7,,ii7 in the case of an individual who has more than #aj years of work 7as defined in clause 7iv77,i771 the alternative minimum amount determined under clause 7ii74 7ii7 7,i7 ,the alternative minimum amount determined under this clause is the applicable percentage of #a_/ab of the annual dollar amount determined under clause 7iii7 for the year in which the amount is determined4 7,,ii7 ,for purposes of subclause 7,i71 the applicable percentage is the percentage specified in connection with the number of years of work1 as set forth in the following table3 ,if the number of years,the applicable of work is3percentage is3#aaf4be percent#abab4ej percent#acah4ge percent#adbe4jj percent#aeca4be percent#afcg4ej percent#agdc4ge percent#ahej4jj percent#aief4be percent#bjfb4ej percent#bafh4ge percent#bbge4jj percent#bcha4be percent#bdhg4ej percent#beic4ge percent#bfajj4jj percent#bgajf4be percent#bhaab4ej percent#biaah4ge percent#cj or more#abe4jj percent4 7iii7 ,the annual dollar amount determined under this clause is-- 7,i7 for calendar year #bjae1 the poverty guideline for #bjad2 and 7,,ii7 for any calendar year after #bjae1 the annual dollar amount for #bjae multiplied by the ratio of-- 7aa7 the national average wage index 7as defined in section #bji7k77#a77 for the second calendar year preceding the calendar year for which the determination is made1 to 7bb7 the national average wage index 7as so defined7 for #bjac4 7iv7 ,for purposes of this subparagraph-- 7,i7 the term year of work means1 with respect to an individual1 a year to which #d quarters of coverage have been credited based on such individual's wages and self-employment income2 and 7,,ii7 the term poverty guideline for #bjad means the annual poverty guideline for #bjad 7as updated annually in the ,federal ,register by the ,department of ,health and ,human ,services under the authority of section #fgc7b7 of the ,omnibus ,budget ,reconciliation ,act of #aiha7 as applicable to a single individual4 4 7b7 ,recomputation ,notwithstanding section #bae7;f77#a7 of the ,social ,security ,act1 the ,commissioner of ,social ,security shall recompute primary insurance amounts originally computed for months prior to ,november #bjad to the extent necessary to carry out the amendments made by this section4 7c7 ,conforming amendment ,section #bji7k77#a7 of such ,act 7#db ,u4,s4,c4 #dji7k77#a77 is amended by inserting #bae7;a77#a77;,e71 after #bae7;a77#a77;,d714 #ajd4 ,increase in threshold amounts and rate for inclusion of social security benefits in income 7a7 ,in general ,subsection 7a7 of section #hf of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7a7 ,in general ,gross income for the taxable year of any taxpayer described in subsection 7b7 7notwithstanding section #bjg of the ,social ,security ,act7 includes social security benefits in an amount equal to the lesser of-- 7#a7 #he percent of the social security benefits received during the taxable year1 or 7#b7 one-half of the excess described in subsection 7b77#a74 4 7b7 ,base amount ,subsection 7c7 of section #hf of such ,code is amended to read as follows3 7c7 ,base amount ,for purposes of this section1 the term base amount means-- 7#a7 except as otherwise provided in this paragraph1 #ej1jjj1 7#b7 #ajj1jjj in the case of a joint return1 and 7#c7 zero in the case of a taxpayer who-- 7,a7 is married as of the close of the taxable year 7within the meaning of section #ggjc7 but does not file a joint return for such year1 and 7,b7 does not live apart from his spouse at all times during the taxable year4 4 7c7 ,hospital ,insurance ,trust ,fund held harmless ,section #aba7;e77#a7 of the ,social ,security ,amendments of #aihf 7#db ,u4,s4,c4 #dja note7 is amended by adding at the end the following new subparagraph3 7,c7 ,the amounts appropriated to the hospital insurance trust fund by subparagraph 7,b7 shall be determined1 and transferred from the general fund1 at such times and in such manner so as to replicate1 to the extent possible1 the appropriations and transfers which would have occurred with respect to such trust fund had subsections 7a7 and 7b7 of section #ajd of the ,social ,security #bajj ,act not been enacted4 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjad4 ,,ii ,strengthening the ,trust ,fund #bja4 ,determination of wages and self-employment income above contribution and benefit base after #bjac 7a7 ,determination of wages above contribution and benefit base after #bjad 7#a7 ,amendments to the ,internal ,revenue ,code 7,a7 ,in general ,paragraph 7#a7 of section #caba7;a7 of the ,internal ,revenue ,code of #aihf is amended by inserting after such calendar year4 the following3 ,the preceding sentence shall apply only to calendar years for which the contribution and benefit base 7as so determined7 is less than #djj1jjj1 and1 for such calendar years1 only to the extent remuneration paid to such employee by such employer with respect to employment does not exceed #djj1jjj44 7,b7 ,conforming amendment ,paragraph 7#a7 of section #caba7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking ,act7 to and inserting ,act71 or in excess of #djj1jjj1 to4 7#b7 ,amendment to the ,social ,security ,act ,section #bji7;a77#a77;,i7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dji7;a77#a77;,i77 is amended by inserting before the semicolon at the end the following3 except that this subparagraph shall apply only to calendar years for which the contribution and benefit base 7as so determined7 is less than #djj1jjj1 and1 for such calendar years1 only to the extent remuneration paid to such employee by such employer with respect to employment does not exceed #djj1jjj4 7#c7 ,effective date ,the amendments made by this subsection shall apply with respect to remuneration paid in calendar years after #bjad4 7b7 ,determination of self-,employment income above contribution and benefit base after #bjad 7#a7 ,amendments to the ,internal ,revenue ,code 7,a7 ,in general ,paragraph 7#a7 of section #adjb7;b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 in the case of the tax imposed by section #adja7;a71 an amount equal to-- 7,a7 #djj1jjj1 reduced 7but not below zero7 by 7,b7 the sum of-- 7i7 the part of the net earnings from self-employment 7if any7 which is not in excess of-- 7,i7 the amount equal to the contribution and benefit base 7as determined under section #bcj of the ,social ,security ,act7 which is effective for the calendar year in which such taxable year begins1 minus 7,,ii7 the amount of the wages paid to such individual during such taxable year1 plus 7ii7 the amount of the wages paid to such individual during such taxable year which is in excess of the amount in clause 7i77,i72 or 4 7,b7 ,phaseout ,subsection 7b7 of section #adjb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,paragraph 7#a7 shall apply only to taxable years beginning in calendar years for which the contribution and benefit base 7as determined under section #bcj of the ,social ,security ,act7 is less than #djj1jjj44 7#b7 ,amendments to the ,social ,security ,act 7,a7 ,in general ,section #baa7;b77#a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #daa7;b77 is amended-- 7i7 in subparagraph 7,i7-- 7,i7 by inserting and before #bjad after #aigd2 and 7,,ii7 by striking or at the end2 and 7ii7 by adding at the end the following3 7,j7 ,for any taxable year beginning in any calendar year after #bjad1 an amount equal to-- 7i7 #djj1jjj1 reduced 7but not below zero7 by 7ii7 the sum of-- 7,i7 the part of the net earnings from self-employment 7if any7 which is not in excess of-- 7aa7 the amount equal to the contribution and benefit base 7as determined under section #bcj7 which is effective for the calendar year in which such taxable year begins1 minus 7bb7 the amount of the wages paid to such individual during such taxable year1 plus 7,,ii7 the amount of the wages paid to such individual during such taxable year which is in excess of the amount in subclause 7,i77aa72 or 4 7,b7 ,phaseout ,section #baa7;b7 of the ,social ,security ,act 7#db ,u4,s4,c4 #daa7;b77 is amended by adding at the end the following3 ,paragraph 7#a7 shall apply only to taxable years beginning in calendar years for which the contribution and benefit base 7as determined under section #bcj7 is less than #djj1jjj44 7#c7 ,effective date ,the amendments made by this subsection shall apply to net earnings from self-employment derived1 and remuneration paid1 in calendar years after #bjad4 #bjb4 ,inclusion of earnings over #djj1jjj in social security benefit formula 7a7 ,inclusion of earnings over #djj1jjj in determination of primary insurance amounts ,section #bae7;a77#a77;,a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;a77#a77;,a77 is amended-- 7#a7 in clause 7ii71 by striking and at the end2 7#b7 in clause 7iii71 by inserting and at the end2 and 7#c7 by inserting after clause 7iii7 the following3 7iv7 #b percent of the individual's excess average indexed monthly earnings 7as defined in subsection 7b77#e77;,a774 4 7b7 ,definition of excess average indexed monthly earnings ,section #bae7;b7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;b77 is amended-- 7#a7 by striking wages and self-employment income each place such terms appear and inserting basic wages and basic self-employment income1 respectively2 and 7#b7 by adding at the end the following3 7#e7 7,a7 ,an individual's excess average indexed monthly earnings shall be equal to the amount of the individual's average indexed monthly earnings that would be determined under this subsection by substituting excess wages for basic wages and excess self-employment income for basic self-employment income each place such terms appear in this subsection 7except in this paragraph74 7,b7 ,for purposes of this subsection-- 7i7 the term basic wages means that portion of the wages of an individual paid in a year that does not exceed the contribution and benefit base for the year2 7ii7 the term basic self-employment income means that portion of the self-employment income of an individual credited to a year that does not exceed an amount equal to the contribution and benefit base for the year minus the amount of the wages paid to the individual in the year2 7iii7 the term excess wages means that portion of the wages of an individual paid in a year after #bjac in excess of the higher of #djj1jjj or the contribution and benefit base for the year2 and 7iv7 the term excess self-employment income means that portion of the self-employment income of an individual credited to a year after #bjad in excess of the higher of #djj1jjj or such contribution and benefit base4 4 7c7 ,conforming amendment ,section #bae7;e77#a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;e77#a77 is amended by inserting and before #bjae after #aigd4 7d7 ,effective date ,the amendments made by this section shall apply with respect to individuals who initially become eligible 7within the meaning of section #bae7;a77#c77;,b7 of the ,social ,security ,act7 for old-age or disability insurance benefits under title ,,ii of the ,social ,security ,act1 or who die 7before becoming eligible for such benefits71 in any calendar year after #bjad4 #bjc4 ,increase in ,social ,security tax rate 7a7 ,tax on ,employees ,the table in subsection 7a7 of section #caja of the ,internal ,revenue ,code of #aihf is amended to read as follows3 ,in cases of wages,the rate of tax received during3shall be3#aiij or any calendar year before #bjahf4bj percent#bjahf4be percent#bjaif4cj percent#bjbjf4ce percent#bjbaf4dj percent#bjbbf4de percent#bjbcf4ej percent#bjbdf4ee percent#bjbef4fj percent#bjbff4fe percent#bjbgf4gj percent#bjbhf4ge percent#bjbif4hj percent#bjcjf4he percent#bjcaf4ij percent#bjcbf4ie percent#bjccg4jj percent#bjcdg4je percent#bjceg4aj percent#bjcfg4ae percent#bjcg or thereafter#g4bj percent4 4 7b7 ,tax on ,employers ,the table in subsection 7a7 of section #caaa of the ,internal ,revenue ,code of #aihf is amended to read as follows3 ,in cases of wages,the rate of tax received during3shall be3#aiij or any calendar year before #bjahf4bj percent#bjahf4be percent#bjaif4cj percent#bjbjf4ce percent#bjbaf4dj percent#bjbbf4de percent#bjbcf4ej percent#bjbdf4ee percent#bjbef4fj percent#bjbff4fe percent#bjbgf4gj percent#bjbhf4ge percent#bjbif4hj percent#bjcjf4he percent#bjcaf4ij percent#bjcbf4ie percent#bjccg4jj percent#bjcdg4je percent#bjceg4aj percent#bjcfg4ae percent#bjcg or thereafter#g4bj percent4 4 7c7 ,self-,employment ,income ,the table in subsection 7a7 of section #adja of the ,internal ,revenue ,code of #aihf is amended to read as follows3 ,in cases of wages,the rate of tax received during3shall be3#aiij or any calendar year before #bjahab4dj percent#bjahab4ej percent#bjaiab4fj percent#bjbjab4gj percent#bjbaab4hj percent#bjbbab4ij percent#bjbcac4jj percent#bjbdac4aj percent#bjbeac4bj percent#bjbfac4cj percent#bjbgac4dj percent#bjbhac4ej percent#bjbiac4fj percent#bjcjac4gj percent#bjcaac4hj percent#bjcbac4ij percent#bjccad4jj percent#bjcdad4aj percent#bjcead4bj percent#bjcfad4cj percent#bjcg or thereafter#ad4dj percent4 4 7d7 ,effective date ,the amendments made by this section shall apply to remuneration received1 and taxable years beginning1 after ,december #ca1 #bjad4 #bjd4 ,investment of the ,social ,security trust funds 7a7 ,in general ,section #bja7;d7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dja7;d77 is amended-- 7#a7 by striking ,it shall be the duty and inserting 7#a7 ,it shall be the duty2 7#b7 by striking ,such investments may be made only and inserting ,except as provided in paragraph 7#b71 such investments may be made only2 and 7#c7 by adding at the end the following3 7#b7 7,a7 ,the ,independent ,social ,security ,investment ,oversight ,board shall establish1 as provided in section #bce7;a7-- 7i7 a ,common ,stock ,old-,age ,investment ,fund in the ,federal ,old-,age and ,survivors ,insurance ,trust ,fund2 and 7ii7 a ,common ,stock ,disability ,investment ,fund in the ,federal ,disability ,insurance ,trust ,fund4 7,b7 7i7 ,in any calendar year after #bjae in which the ,,oasdi trust fund ratio 7as defined in subsection 7l77#c77;,b77iii77 is projected to be below #aej percent in the #geth year after such year1 the ,managing ,trustee shall transfer amounts from the ,federal ,old-,age and ,survivors ,insurance ,trust ,fund or the ,federal ,disability ,insurance ,trust ,fund into the ,common ,stock ,old-,age ,investment ,fund or the ,common ,stock ,disability ,investment ,fund1 respectively1 in accordance with the policies and requirements set forth in section #gad4 ,amounts so transferred shall be the minimum amounts which would result in a common stock ratio for such year that is #b4e percentage points greater than the common stock ratio for the previous year1 except that the common stock ratio may not exceed #be percent for any year4 7ii7 ,in any calendar year after #bjae in which the ,,oasdi trust fund ratio 7as defined in subsection 7l77#c77;,b77iii77 is projected to equal or exceed #aej percent in the #geth year after such year1 the ,managing ,trustee shall take appropriate actions to reduce the common stock ratio for such year by the lesser of-- 7,i7 the minimum reduction necessary to result in an ,,oasdi trust fund ratio 7as so defined7 for such year that does not exceed #aej percent in the #geth year after such year2 or 7,,ii7 #b4e percentage points4 7iii7 ,for purposes of this subparagraph1 the term common stock ratio means1 with respect to a calendar year1 the aggregate percentage of the total amounts at the end of such calendar year within each of the ,federal ,old-,age and ,survivors ,insurance ,trust ,fund and the ,federal ,disability ,insurance ,trust ,fund that is maintained in the ,common ,stock ,old-,age ,investment ,fund or the ,common ,stock ,disability ,investment ,fund1 respectively4 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply with respect to fiscal years beginning on or after ,october #a1 #bjae4 #bje4 ,rules governing investment of ,trust ,funds in common stock ,title ,,ii of the ,social ,security ,act 7#db ,u4,s4,c4 #dja et seq47 is amended by adding at the end the following new section3 #bce4 ,investment of ,trust ,funds in common stock 7a7 ,common stock investment funds 7#a7 ,selection of index ,the ,independent ,social ,security ,investment ,oversight ,board shall select1 for purposes of investment of amounts held in a ,common ,stock ,investment ,fund1 an index which is a commonly recognized index comprised of common stock the aggregate market value of which is a reasonably complete representation of the ,united ,states equity markets4 7#b7 ,portfolio design ,amounts held in a ,common ,stock ,investment ,fund shall be invested in a portfolio designed to replicate the performance of the index selected under paragraph 7#a74 ,the portfolio shall be designed such that1 to the extent practicable1 the percentage of the balance in such ,account that is invested in each stock is the same as the percentage determined by dividing the aggregate market value of all shares of that stock by the aggregate market value of all shares of all stocks included in such index4 7b7 ,no voting rights in securities ,the ,independent ,social ,security ,investment ,oversight ,board and the ,managing ,trustee of the ,trust ,funds may not exercise voting rights associated with the ownership of securities by the ,trust ,funds4 7c7 ,engagement of qualified public accountant 7#a7 ,in general ,the ,independent ,social ,security ,investment ,oversight ,board shall annually engage1 on behalf of the ,trust ,funds1 an independent qualified public accountant1 who shall conduct an examination of all accounts and other books and records maintained in the administration of this section as the public accountant considers necessary to enable the public accountant to make the determination required by paragraph 7#b74 ,the examination shall be conducted in accordance with generally accepted auditing standards and shall involve such tests of the accounts1 books1 and records as the public accountant considers necessary4 7#b7 ,examination and report ,the public accountant conducting an examination under paragraph 7#a7 shall determine whether the accounts1 books1 and records referred to in paragraph 7#a7 have been maintained in conformity with generally accepted accounting principles applied on a basis consistent with the manner in which such principles were applied during the examination conducted under paragraph 7#a7 during each preceding year4 ,the public accountant shall transmit to the ,board1 the ,comptroller ,general of the ,united ,states1 and each ,house of the ,congress a report on his examination1 including his determination under this paragraph4 ,the ,board shall make publicly available1 by posting on the ,internet and such other means as the ,board may determine1 each report received under the preceding sentence4 7#c7 ,definition ,for the purposes of this subsection1 the term qualified public accountant shall have the same meaning as is provided in section #ajc7;a77#c77;,d7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbc7;a77#c77;,d774 7d7 ,fiduciary responsibilities 7#a7 ,in general ,under regulations of the ,secretary of ,labor1 the provisions of sections #hdgg and #hdgh of title #e1 ,united ,states ,code1 shall apply in connection with the amounts maintained in a ,common ,stock ,investment ,fund in the same manner and to the same extent as such provisions apply in connection with the ,thrift ,savings ,fund4 7#b7 ,investigative authority ,any authority available to the ,secretary of ,labor under section #ejd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aacd7 is hereby made available to the ,secretary of ,labor1 and any officer designated by the ,secretary of ,labor1 to determine whether any person has violated1 or is about to violate1 any provision applicable under paragraph 7#a74 7#c7 ,exculpatory provisions2 insurance 7,a7 ,in general ,any provision in an agreement or instrument which purports to relieve a fiduciary from responsibility or liability for any responsibility1 obligation1 or duty under this section shall be void4 7,b7 ,insurance ,amounts held in the ,trust ,funds available for administrative expenses shall be available and may be used at the discretion of the ,independent ,social ,security ,investment ,oversight ,board to purchase insurance to cover potential liability of persons who serve in a fiduciary capacity with respect to amounts maintained in a ,common ,stock ,investment ,fund1 without regard to whether a policy of insurance permits recourse by the insurer against the fiduciary in the case of a breach of a fiduciary obligation4 7e7 ,definition of ,common ,stock ,investment ,fund ,in this section1 the term ,common ,stock ,investment ,fund means the ,common ,stock ,old-,age ,investment ,fund of the ,federal ,old-,age and ,survivors ,insurance ,trust ,fund and the ,common ,stock ,disability ,investment ,fund of the ,federal ,disability ,insurance ,trust ,fund4 4 #bjf4 ,establishment of ,independent ,social ,security ,investment ,oversight ,board ,title ,,vii of the ,social ,security ,act 7#db ,u4,s4,c4 #ija et seq47 is amended by adding at the end the following3 #gad4 ,independent ,social ,security ,investment ,oversight ,board 7a7 ,there is established in the ,social ,security ,administration an ,independent ,social ,security ,investment ,oversight ,board4 7b7 ,the ,board shall be composed of a ,chairman and four additional members4 ,the ,chairman and each additional member shall be appointed by the ,president1 by and with the advice and consent of the ,senate4 7c7 ,members of the ,board shall have substantial experience1 training1 and expertise in the management of financial investments and service in a fiduciary capacity4 7d7 7#a7 ,a member of the ,board shall be appointed for a term of #aj years1 except that of the members first appointed-- 7,a7 the member appointed as ,chairman shall be appointed for a term of #aj years2 7,b7 one member shall be appointed for a term of #h years2 7,c7 one member shall be appointed for a term of #f years2 7,d7 one member shall be appointed for a term of #d years2 and 7,e7 one member shall be appointed for a term of #b years1 as designated by the ,president at the time of appointment4 7#b7 7,a7 ,a vacancy on the ,board shall be filled in the manner in which the original appointment was made and shall be subject to any conditions which applied with respect to the original appointment4 7,b7 ,an individual chosen to fill a vacancy shall be appointed for the unexpired term of the member replaced4 7,c7 ,the term of any member shall not expire before the date on which the member's successor takes office4 7#c7 ,an individual appointed as a member of the ,board may be removed from office only pursuant to a finding by the ,president of neglect of duty or malfeasance in office4 7e7 ,the member of the ,board designated by the ,president as ,chairman shall serve as ,chairman for a term of #d years 7or until the expiration of his term as member of the ,board1 if earlier74 ,a member serving as ,chairman may be reappointed as ,chairman4 7f7 ,the ,board shall-- 7#a7 establish policies for the investment and management of the ,common ,stock ,old-,age ,investment ,fund and the ,common ,stock ,disability ,investment ,fund described in section #bja7;d77#b71 including policies to provide for-- 7,a7 prudent investments suitable for accumulating funds for payment of monthly insurance benefits under title ,,ii2 and 7,b7 low administrative costs2 7#b7 review bids relating to1 and hire managers for1 each such ,fund2 7#c7 annually review the performance of each such ,fund2 7#d7 7,a7 report annually to the ,house of ,representatives and the ,senate and to the ,president regarding the earnings on such investments2 and 7,b7 make each such report publicly available by publication in the ,federal ,register1 posting on the ,internet1 and such other means as the ,board may determine2 and 7#e7 review and approve the budget of the ,board4 7g7 7#a7 ,the ,board may-- 7,a7 adopt1 alter1 and use a seal2 7,b7 establish policies with which the ,managing ,trustee of the ,trust ,funds is required to comply under section #bja7;d77#b72 and 7,c7 take such other actions as may be necessary to carry out the functions of the ,board4 7#b7 ,the policies of the ,board may not require the ,managing ,trustee of the ,trust ,funds to invest or to cause to be invested any sums in such ,trust ,funds in a specific asset or to dispose of or cause to be disposed of any specific asset of such ,trust ,funds4 7h7 7#a7 ,the ,board shall meet-- 7,a7 not less than once during each month2 and 7,b7 at additional times at the call of the ,chairman4 7#b7 7,a7 ,the ,board shall perform the functions and exercise the powers of the ,board on a majority vote of a quorum of the ,board4 7,b7 ,a vacancy on the ,board shall not impair the authority of a quorum of the ,board to perform the functions and exercise the powers of the ,board4 7#c7 ,three members of the ,board shall constitute a quorum for the transaction of business4 7#d7 7,a7 ,each member of the ,board who is not an officer or employee of the ,federal ,government shall be compensated at the daily rate of basic pay payable for level ,,iv of the ,executive ,schedule for each day during which such member is engaged in performing a function of the ,board4 7,b7 ,a member of the ,board shall be paid travel1 per diem1 and other necessary expenses under subchapter ,i of chapter #eg of title #e1 ,united ,states ,code1 while traveling away from such member's home or regular place of business in the performance of the duties of the ,board4 7#e7 ,the accrued annual leave of any officer or employee of the ,federal ,government who is a member of the ,board shall not be charged for any time used in performing services for the ,board4 7i7 ,the members of the ,board shall discharge their responsibilities solely in the interest of the ,trust ,funds in connection with investments of amounts in funds under section #bja7;d77#b74 7j7 ,the ,board shall prepare and submit to the ,president1 and1 at the same time1 to the appropriate committees of ,congress1 an annual budget of the expenses and other items relating to the ,board which shall be included as a separate item in the budget required to be transmitted to the ,congress under section #aaje of title #ca1 ,united ,states ,code4 7k7 ,the ,board may submit to the ,president1 and1 at the same time1 shall submit to each ,house of ,congress1 any legislative recommendations of the ,board relating to any of its functions under this section4 7l7 ,there are hereby made available from each of the ,trust ,funds such sums as are necessary to carry out the provisions of this section and to administer the provisions of section #bce1 in accordance with certifications which shall be made from time to time by the ,board to the ,secretary of the ,treasury4 7m7 ,in this section1 the term ,trust ,funds has the meaning given such term in section #bja7;c74 4 #bjg4 ,reallocation of payroll tax revenue from the ,old-,age and ,survivors ,insurance ,trust ,fund to the ,federal ,disability ,insurance ,trust ,fund 7#a7 ,wages ,section #bja7;b77#a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dja7;b77#a77 is amended by striking and 7,r7 #a4hj per centum of the wages 7as so defined7 paid after ,december #ca1 #aiii1 and so reported and inserting 7,r7 #a4hj per centum of the wages 7as so defined7 paid after ,december #ca1 #aiii1 and before ,january #a1 #bjae1 and so reported1 7,s7 #b4h per centum of the wages 7as so defined7 paid after ,december #ca1 #bjad1 and before ,january #a1 #bjaf1 and so reported1 7,t7 #b4d per centum of the wages 7as so defined7 paid after ,december #ca1 #bjae1 and before ,january #a1 #bjag1 and so reported1 7,u7 #b4b per centum of the wages 7as so defined7 paid after ,december #ca1 #bjaf1 and before ,january #a1 #bjbj1 and so reported1 7,v7 #b4j per centum of the wages 7as so defined7 paid after ,december #ca1 #bjai1 and before ,january #a1 #bjbf1 and so reported1 and 7,w7 #a4h per centum of the wages 7as so defined7 paid after ,december #ca1 #bjbe1 and so reported4 7#b7 ,self-employment income ,section #bja7;b77#b7 of such ,act 7#db ,u4,s4,c4 #dja7;b77#b77 is amended by striking and 7,r7 #a4hj per centum of the amount of self-employment income 7as so defined7 so reported for any taxable year beginning after ,december #ca1 #aiii and inserting 7,r7 #a4hj per centum of the amount of self-employment income 7as so defined7 so reported for any taxable year beginning after ,december #ca1 #aiii1 and before ,january #a1 #bjae1 7,s7 #b4h per centum of the amount of self-employment income 7as so defined7 so reported for any taxable year beginning after ,december #ca1 #bjad1 and before ,january #a1 #bjaf1 7,t7 #b4d per centum of the amount of self-employment income 7as so defined7 so reported for any taxable year beginning after ,december #ca1 #bjae1 and before ,january #a1 #bjag1 7,u7 #b4b per centum of the amount of self-employment income 7as so defined7 so reported for any taxable year beginning after ,december #ca1 #bjaf1 and before ,january #a1 #bjbj1 7,v7 #b4j per centum of the amount of self-employment income 7as so defined7 so reported for any taxable year beginning after ,december #ca1 #bjai1 and before ,january #a1 #bjbf1 and 7,w7 #a4h per centum of the amount of self-employment income 7as so defined7 so reported for any taxable year beginning after ,december #ca1 #bjbe4 7#c7 ,effective date ,the amendments made by this section shall apply with respect to wages paid after ,december #ca1 #bjad1 and self-employment income for taxable years beginning after such date4