Social Security Solvency Act of 1998

Social Security Solvency Act of 1998 - Amends the Internal Revenue Code (IRC) to modify Federal Insurance Contributions Act (FICA) rates applicable to employees, employers, and the self-employed to provide for pay-as-you-go financing for the social security system and continued solvency of the social security trust funds under title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSA). Prescribes: (1) reduced FICA rates for 2001 through 2029; (2) return to the current rate (6.2 percent, or 12.4 for the self-employed) for 2030 through 2044; and (3) specified higher rates for ensuing decades, culminating with 6.7 percent (13.4 for the self-employed) for 2060 and thereafter.

(Sec. 2) Provides for: (1) the reallocation of employment taxes through 2054; and (2) adjustment of such taxes to keep the social security trust funds in actuarial balance. Makes conforming amendments to the Federal Employees Retirement System (FERS) to protect the FICA tax cut.

(Sec. 3) Voluntary Investment Contribution Act (VICA) - Amends SSA title II to add a new part B (Voluntary Investment Accounts) (VICA). Establishes in the Treasury the Voluntary Investment Fund, to be managed by the Voluntary Investment Fund Board. Requires electing employees of covered employers to designate a particular VICA to which contributions on their behalf (of up to two percent of wages) are to be deposited and invested in a manner similar to that under the FERS Thrift Savings Plan.

Mandates participation by self-employed individuals.

Amends IRC to impose on: (1) the income of an electing employee a VICA contribution of one percent of wages; (2) such employee's employer a matching contribution equal to one percent of such employee's wages; and (3) the income of a self-employed individual a VICA contribution of two percent of self-employment income.

(Sec. 4) Amends SSA title II to provide for a graduated increase in the social security wage base from $60,600 to $97,500.

(Sec. 5) Amends SSA title XI to add a new part D (Cost-of-Living Adjustments) to: (1) provide for a one-percent reduction in cost-of-living adjustments (COLAs) under IRC, OASDI, Medicare, Medicaid, and any other Federal program except the Supplemental Security Income (SSI) program (SSA title XVI); and (2) establish the Cost-of-Living Board to determine new reduced COLAs. Authorizes appropriations.

(Sec. 6) Amends IRC to provide for the inclusion of social security benefits in a taxpayer's gross income.

(Sec. 7) Amends SSA title II to: (1) provide for coverage of newly hired State and local employees; (2) increase the length of the computation period from 35 to 38 years; (3) provide for a phased-in increase in the social security retirement age to 70 years of age with respect to an individual who attains early retirement age after December 31, 2065; and (4) provide for elimination of the earnings test for individuals who have attained early retirement age (beginning in 2003).

Directs the Commissioner of Social Security to submit to the Congress a detailed study plan for evaluating the effects of increases in the retirement age scheduled under SSA on the day before the enactment of the phased-in increase under this Act.

(Sec. 10) Directs the Commissioner to study and report to the Congress on the effect on their incentive to work of taking earnings into account in determining substantial gainful activity of individuals receiving disability insurance benefits.