Social Security Solvency Act of 1997

TABLE OF CONTENTS:

Title I: Individual Retirement Security Program

Title II: Social Security Benefit Reforms

Social Security Solvency Act of 1997 - Title I: Individual Retirement Security Program - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSA) to create a new Individual Retirement Security Program in which a covered employee or covered self-employed individual may designate one or more personal retirement savings accounts to which the Secretary of the Treasury shall make deposits with respect to the individual according to formulae based on the respective social security employment taxes paid with respect to such covered individuals and certain budget surpluses.

(Sec. 102) Directs the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund to publish in the Federal Register each year the reallocation percentage (calculated according to a specified formula) for amounts otherwise appropriated for the following fiscal year to the Federal Old-Age and Survivors Insurance Trust Fund from Federal Insurance Contributions Act taxes imposed with regard to wages and self-support income.

Requires a reduction in trust fund appropriations, to the extent attributable to the taxes paid during the fiscal year with respect to a covered employee or self-employed individual, according to a certain formula.

(Sec. 103) Provides for adjustments to primary OASDI insurance amounts of such covered individuals with designated accounts in such program.

(Sec. 104) Amends the Internal Revenue Code to allow a tax deduction in the case of an electing personal retirement savings account participant in an amount equal to 50 percent (up to $2,000) of the amount the individual contributed during the taxable year to a personal retirement savings account maintained for the individual's benefit, regardless of whether or not the taxpayer itemizes other deductions.

Excludes from gross income any amount deposited in a personal retirement savings account. Includes distributions in gross income as if they were social security benefits.

Allows an excise tax on excess contributions to a personal retirement savings account.

Title II: Social Security Benefit Reforms - Amends SSA title II to provide for: (1) a gradual increase in retirement age (up to 69 and beyond after December 31, 2015) and early retirement age; (2) adjustments to bend points in determining primary insurance amounts; (3) information relating to benefit limitations in social security account statements; (4) phased-in reduction in spousal benefits other than survivor's benefits to 33 percent of primary insurance amount; (5) a specified limitation on the payment of certain benefits in excess of contributions during years of higher income; (6) coverage of newly hired State and local employees; and (7) an increase in widow's and widower's insurance benefits.

(Sec. 208) Directs the Commissioner of Social Security to study and report to the Congress on the most appropriate and feasible means of providing for elections under which individuals may opt for exclusion from OASDI coverage.