Personal Retirement Accounts Act of 1998
The source supplies the latest action, but no lifecycle stage.
Latest action (29 Jul 1998): Read twice and referred to the Committee on Finance.
What this bill does
The Personal Retirement Accounts Act of 1998, introduced by Senator William Roth, would amend the Social Security Act to create a new, government-administered system of individual retirement accounts alongside the existing Social Security program. It would first set up a temporary "Save Social Security First Trust Fund," funded with $31.5 billion in fiscal year 1998 and $40 billion in fiscal year 1999, which would later be transferred into a new "Personal Retirement Savings Fund." Starting in fiscal year 2000, additional federal appropriations (ranging from $40 billion to $70 billion annually through 2003) would flow into this Fund. A newly created Personal Retirement Accounts Board, along with an Executive Director, would manage the Fund, set investment policy, and oversee individual accounts, including fiduciary duties, bonding, and audits.
The bill would affect workers who have earned at least four qualifying quarters of Social Security coverage in a calendar year; each would receive an individual personal retirement account funded partly by a flat $250 allocation and partly by a formula tied to the Social Security payroll taxes they paid. These accounts would be invested, protected from most creditors (with exceptions for child support, alimony, or certain court judgments), and eventually paid out as retirement benefits or annuities, with protections for spouses and beneficiaries.
The bill was introduced on July 29, 1998, in the 105th Congress and referred to the Senate Finance Committee. It did not receive a vote and did not become law.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Personal Retirement Accounts Act of 1998 - Establishes in the Treasury the Save Social Security First Trust Fund (Trust Fund). Appropriates specified amounts to it for FY 1998 and 1999 for investment in public debt securities, with investment income credited to the Trust Fund. Prohibits Trust Fund amounts from being appropriated or used for any purpose other than transfer to the Personal Retirement Savings Fund (PRSF) established by this Act under the Personal Retirement Accounts Program for the benefit of individuals eligible for personal retirement savings accounts (PRSAs) (eligible individuals). Slates the Trust Fund for dissolution upon the transfer of all its amounts to PRSF. (Sec. 4) Amends the Social Security Act (SSA) to create a new title I, Personal Retirement Accounts Program (PRAP), redesignating current SSA title I (Old Age Assistance) as SSA title VI. Establishes in the executive branch, to administer PRAP, a Personal Retirement Accounts Board (Board), which shall appoint an Executive Director to manage the PRSF. Appropriates specified amounts for FY 2000 through 2003 for the Secretary of the Treasury to transfer to the PRSF, along with amounts in the Trust Fund, where they are to be held in PRSF, along with all net investment earnings in PRSF, in trust for the benefit of eligible individuals. Establishes the PRSF in the Treasury for paying benefits, making distributions, and other uses as specified in connection with PRAP, including most notably for the investment of PRSA funds. Prohibits sums in PRSF that are credited to the individual's PRSA from being used for, or diverted to, purposes other than for the exclusive benefit of the PRSA holder or that holder's beneficiaries. Requires the Executive Director to establish a PRSA for any individual who has worked four qualifying quarters of coverage, as determined under SSA title II (Old Age, Survivors and Disability Insurance) (OASDI). Directs the Executive Director to allocate annually to each PRSA a minimum amount of $250, plus an additional amount, determined according to a specified formula, based on how much the individual paid in payroll taxes and the net earnings and net losses from the investment of the sums transferred above to PRSF. Directs the Board to establish a Government Securities Investment Fund, a Fixed Income Investment Fund, and a Common Stock Index Investment Fund (modeled after the Thrift Savings Plan (TSP) for Federal employees) for the investment of PRSF sums credited to an individual's PRSA, according to an election the individual may make at least twice each year. Prescribes requirements similar to those for the TSP with respect to: (1) accounting and information; (2) annuities and their methods of payment, election, and purchase; (3) protections for spouses and former spouses; and (4) tax treatment of PRSF. Authorizes distributions from an individual's PRSA only on or after the earlier of the date on which the individual begins receiving OASDI benefits or the date of the individual's death. Allows a PRSA holder to designate one or more beneficiaries under regulations prescribed by the Board. Outlines fiduciary responsibilities with respect to the PRSF, as well as personal liability and civil penalties for breach of duties, and bonding requirements. (Sec. 5) Directs the Board to report to appropriate congressional committees its recommendations for additional investment options for individuals with PRSAs, including specific recommendations regarding whether the Board should: (1) make available to such account holders investment funds managed by qualified professional asset managers; and (2) offer diversified investment selections for such account holders that take the individual's age into consideration.
Timeline
29 Jul 1998
Read twice and referred to the Committee on Finance.
Common questions
- What does S. 2369 do?
- The Personal Retirement Accounts Act of 1998, introduced by Senator William Roth, would amend the Social Security Act to create a new, government-administered system of individual retirement accounts alongside the existing Social Security program. It would first set up a temporary "Save Social Security First Trust Fund," funded with $31.5 billion in fiscal year 1998 and $40 billion in fiscal year 1999, which would later be transferred into a new "Personal Retirement Savings Fund." Starting in fiscal year 2000, additional federal appropriations (ranging from $40 billion to $70 billion annually through 2003) would flow into this Fund. A newly created Personal Retirement Accounts Board, along with an Executive Director, would manage the Fund, set investment policy, and oversee individual accounts, including fiduciary duties, bonding, and audits. The bill would affect workers who have earned at least four qualifying quarters of Social Security coverage in a calendar year; each would receive an individual personal retirement account funded partly by a flat $250 allocation and partly by a formula tied to the Social Security payroll taxes they paid. These accounts would be invested, protected from most creditors (with exceptions for child support, alimony, or certain court judgments), and eventually paid out as retirement benefits or annuities, with protections for spouses and beneficiaries. The bill was introduced on July 29, 1998, in the 105th Congress and referred to the Senate Finance Committee. It did not receive a vote and did not become law.
- Has S. 2369 become law?
- The source does not supply a confirmed lifecycle stage for S. 2369. Check the latest action and official source below.
- Who sponsored S. 2369?
- S. 2369 was sponsored by Sen. Roth Jr., William V. [R-DE] (R-DE), with 0 cosponsors.
- What's the latest action on S. 2369?
- Read twice and referred to the Committee on Finance. (29 Jul 1998).
Related bills in Social Welfare
Improving Social Security’s Service to Victims of Identity Theft Act
Removing Access Barriers to Running for Elected Office for People with Disabilities Act
Revising SSDI Disability Classifications Act
AACCENT Act
More bills from Sen. Roth Jr., William V. [R-DE]
A resolution to state the sense of the Senate that the government of the United States should place priority on formulating a comprehensive and strategic policy of engaging and cooperating with Japan in advancing science and technology for the benefit of both nations as well as the rest of the world.
A bill to amend section 334 of the Uruguay Round Agreements Act to clarify the rules of origin with respect to certain textile products.
Bill100 mirrors the public U.S. legislative record from Congress.gov and GovTrack and adds plain-English AI summaries. It is an information tool, not legal, compliance or lobbying advice, and it is not affiliated with the U.S. Congress or any government agency. AI summaries can simplify or omit detail — every bill links to the official source; verify there before you rely on it.