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legislation: 105-s-2369

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bill_id congress bill_type bill_number title policy_area introduced_date latest_action_date latest_action_text origin_chamber sponsor_name sponsor_state sponsor_party sponsor_bioguide_id cosponsor_count summary_text update_date url
105-s-2369 105 s 2369 Personal Retirement Accounts Act of 1998 Social Welfare 1998-07-29 1998-07-29 Read twice and referred to the Committee on Finance. Senate Sen. Roth Jr., William V. [R-DE] DE R R000460 0 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. 2025-08-21T16:13:03Z  

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