Social Security Surplus Protection Act of 2005 - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to direct the Managing Trustee to ensure that amounts in either the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund (Social Security Trust Funds) equivalent to the annual surplus for such Fund for any calendar year are made available to the Social Security Surplus Investment Board (SSSIB) on a timely basis for purposes of investment.
Establishes the SSSIB in the executive branch to provide for the investment of such amounts.
Amends the Congressional Budget Act of 1974 to make it out of order in the House of Representatives or the Senate to consider any concurrent resolution on the budget (or any amendment to it or conference report on it) that would set forth a deficit for any fiscal year for which there is a projected net surplus in the Social Security Trust Funds.
Makes it out of order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, motion, or conference report if its enactment would cause a deficit for any fiscal year for which there is a projected net surplus in the Trust Funds.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3913 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 3913
To provide for investment and protection of the Social Security
surplus.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 27, 2005
Mr. Kuhl of New York introduced the following bill; which was referred
to the Committee on Ways and Means, and in addition to the Committees
on the Budget and Rules, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide for investment and protection of the Social Security
surplus.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Social Security Surplus Protection
Act of 2005''.
SEC. 2. INVESTMENT OF THE ANNUAL SURPLUS OF THE FEDERAL OLD-AGE AND
SURVIVORS INSURANCE TRUST FUND AND THE FEDERAL DISABILITY
INSURANCE TRUST FUND.
(a) In General.--Section 201(d) of the Social Security Act (42
U.S.C. 401(d)) is amended--
(1) by inserting ``(1)'' after ``(d)'';
(2) by striking ``Such investments may be made only'' and
inserting the following: ``Except as provided in paragraph (2),
such investments may be made only'';
(3) by striking the last sentence; and
(4) by adding at the end the following new paragraph:
``(2)(A) The Managing Trustee shall, in accordance with policies
prescribed in regulations of the Social Security Surplus Investment
Board prescribed under subsection (o), ensure that amounts in each of
the Trust Funds equivalent to the annual surplus for such Trust Fund
for any calendar year are made available to the Board on a timely basis
for purposes of investment in accordance with subsection (o). Such
amounts shall be made available in at least monthly installments and
shall be determined on the basis of estimates, by the Commissioner and
certified to the Secretary of the Treasury, and proper adjustments
shall be made in amounts subsequently made available to the extent
prior estimates were in excess of or were less than actual amounts.
``(B) For purposes of this paragraph, the `annual surplus' for
either of the Trust Funds for a calendar year is the excess (if any)
of--
``(i) the sum of--
``(I) in the case of the Federal Old-Age and
Survivors Insurance Trust Fund, the amounts
appropriated to such Trust Fund under paragraphs (3)
and (4) of subsection (a) and attributable to such
calendar year,
``(II) in the case of the Federal Disability
Insurance Trust Fund, the amounts appropriated to such
Trust Fund under paragraphs (1) and (2) of subsection
(b) and attributable to such calendar year, and
``(III) in either case, the amount appropriated to
such Trust Fund under section 121(e) of the Social
Security Amendments of 1983 and attributable to such
calendar year, and any amounts otherwise credited to or
deposited in such Trust Fund under this title
attributable to such calendar year, over
``(ii) the amount estimated by the Commissioner to be the
total amount to be paid from such Trust Fund during such
calendar year for all purposes authorized by section 201 (other
than payments of interest on, and repayments of, loans from the
Federal Hospital Insurance Trust Fund under section 201(l)(1),
and excluding any transfer payments between the Trust Funds and
reducing the amount of any transfer from either of the Trust
Funds to the Railroad Retirement Account by the amount of any
transfer into such Trust Fund from such Account).
``(C) Amounts of either Trust Fund made available to the Social
Security Surplus Investment Board under subparagraph (A)(ii) for
purposes of investment under subsection (o), and any proceeds from such
investment, shall continue to be treated as assets of such Trust
Fund.''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to annual surpluses for calendar years beginning on
or after January 1, 2006.
SEC. 3. SOCIAL SECURITY SURPLUS INVESTMENT BOARD.
Section 201 of the Social Security Act (42 U.S.C. 401) is amended
by adding at the end the following new subsection:
``(o) Social Security Surplus Investment Board.--
``(1) Establishment of the board.--
``(A) Establishment.--There is established in the
Executive branch of the Government a Social Security
Surplus Investment Board.
``(B) Number and appointment.--The Board shall be
composed of 7 members as follows:
``(i) 3 members appointed by the President,
of whom 1 shall be designated by the President
as Chairman; and
``(ii) 4 members appointed by the
President, of whom--
``(I) 2 shall be appointed by the
President after taking into
consideration the recommendations made
by the Speaker of the House of
Representatives in consultation with
the minority leader of the House of
Representatives; and
``(II) 2 shall be appointed by the
President after taking into
consideration the recommendations made
by the majority leader of the Senate in
consultation with the minority leader
of the Senate.
``(C) Membership requirements.--Members of the
Board shall have substantial experience, training, and
expertise in the management of financial investments
and pension benefit plans. No more than 4 of the
members of the Board may be of the same political
party.
``(D) Terms.--Each member of the Board shall be
appointed for a term of 4 years, except that of the
members first appointed--
``(i) the Chairman shall be appointed for a
term of 4 years;
``(ii) the remaining members appointed
under subsection (B)(i) shall be appointed for
terms of 3 years;
``(iii) one of the members appointed under
subsection (B)(ii)(I) shall be appointed for a
term of 4 years and the other for a term of two
years; and
``(iv) one of the members appointed under
subsection (B)(ii)(II) shall be appointed for a
term of 4 years and the other for a term of 2
years.
``(E) Vacancies.--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 appointment. An
individual chosen to fill a vacancy shall be appointed
for the unexpired term of the member replaced. The term
of any member shall not expire before the date on which
the member's successor takes office.
``(2) Powers and duties of the board.--
``(A) In general.--The Board shall have powers and
duties solely as provided in this subsection. The Board
shall by regulation provide for investment of amounts
in the Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust Fund
made available to the Board under subsection
(d)(2)(A)(ii) for purposes of investment, including
policies to be followed in allocating investments among
different forms of investment and meeting the
requirements of subparagraph (F) of this paragraph and
of paragraph (4).
``(B) Budgetary requirements.--The Board shall
prepare and submit to the President and to the
appropriate committees of Congress 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 1105 of title 31, United States Code. The Board
shall provide for low administrative costs such that,
to the extent practicable, overall administrative costs
of the Board in connection with investments made
pursuant to subparagraph (A) do not exceed 30 basis
points per year in relation to assets under management
by the Board.
``(C) Additional authorities of the board.--The
Board may--
``(i) adopt, alter, and use a seal;
``(ii) establish policies under this
subsection with which the Commissioner shall
comply; and
``(iii) appoint and remove the Executive
Director, as provided in paragraph (2).
``(D) Meetings of the board.--The Board shall meet
at the call of the Chairman or upon the request of a
quorum of the Board. The Board shall perform the
functions and exercise the powers of the Board on a
majority vote of a quorum of the Board. Four members of
the Board shall constitute a quorum for the transaction
of business.
``(E) Compensation of board members.--
``(i) In general.--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 for level IV of the
Executive Schedule for each day during which
such member is engaged in performing a function
of the Board. Any member who is such an officer
or employee shall not suffer any loss of pay or
deduction from annual leave on the basis of any
time used by such member in performing such a
function.
``(ii) Travel, per diem, and expenses.--A
member of the Board shall be paid travel, per
diem, and other necessary expenses under
subchapter I of chapter 57 of title 5, United
States Code, while traveling away from such
member's home or regular place of business in
the performance of the duties of the Board.
``(F) Standard for board's discharge of
responsibilities.--The members of the Board shall
discharge their responsibilities solely in the interest
of the Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust Fund.
``(G) Annual report.--The Board shall submit an
annual report to the President, to each House of the
Congress, and to the Board of Trustees of the Federal
Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund regarding the
exercise of its duties under this subsection.
``(H) Public accountant.--
``(i) Definition.--For purposes of this
subparagraph, the term `qualified public
accountant' shall have the same meaning as
provided in section 103(a)(3)(D) of the
Employee Retirement Income Security Act of 1974
(29 U.S.C. 1023(a)(3)(D)).
``(ii) Engagement.--The Executive Director,
in consultation with the Board, shall annually
engage an independent qualified public
accountant, who shall conduct an examination of
all records maintained in the administration of
the requirements of this subsection that the
public accountant considers necessary.
``(iii) Duties.--The public accountant
conducting an examination under clause (ii)
shall determine whether the records referred to
in such clause have been maintained in
conformity with generally accepted accounting
principles. The public accountant shall
transmit to the Board a report on his
examination.
``(iv) Reliance on certified actuarial
matters.--In making a determination under
clause (iii), a public accountant may rely on
the correctness of any actuarial matter
certified by an enrolled actuary if the public
accountant states his reliance in the report
transmitted to the Board under such clause.
``(3) Executive director.--
``(A) Appointment and removal.--The Board shall
appoint, without regard to the provisions of law
governing appointments in the competitive service, an
Executive Director by action agreed to by a majority of
the members of the Board. The Executive Director shall
have substantial experience, training, and expertise in
the management of financial investments and pension
benefit plans. The Board may, with the concurrence of 4
members of the Board, remove the Executive Director
from office for good cause shown.
``(B) Powers and duties of executive director.--The
Executive Director shall--
``(i) carry out the policies established by
the Board,
``(ii) administer the provisions of this
subsection in accordance with the policies of
the Board, and
``(iii) meet from time to time with the
Board upon request of the Board.
``(C) Administrative authorities of executive
director.--The Executive Director may--
``(i) appoint such personnel as may be
necessary to carry out the provisions of this
subsection,
``(ii) subject to approval by the Board,
procure the services of experts and consultants
under section 3109 of title 5, United States
Code,
``(iii) secure directly from any agency or
instrumentality of the Federal Government on a
reimbursable basis any information which, in
the judgment of the Executive Director, is
necessary to carry out the provisions of this
subsection and the policies of the Board, and
which shall be provided by such agency or
instrumentality upon the request of the
Executive Director,
``(iv) pay the compensation, per diem, and
travel expenses of individuals appointed under
clauses (i), (ii), and (v) of this
subparagraph, subject to such limits as may be
established by the Board,
``(v) accept and use the services of
individuals employed intermittently in the
Government service and reimburse such
individuals for travel expenses, as authorized
by section 5703 of title 5, United States Code,
including per diem as authorized by section
5702 of such title, and
``(vi) except as otherwise expressly
prohibited by law or the policies of the Board,
delegate any of the Executive Director's
functions to such employees under the Board as
the Executive Director may designate and
authorize such successive redelegations of such
functions to such employees under the Board as
the Executive Director may consider to be
necessary or appropriate.
``(4) Fiduciary responsibilities.--
``(A) In general.--Rules similar to the provisions
of section 8477 of title 5, United States Code
(relating to fiduciary responsibilities; liability and
penalties) shall apply in connection assets placed
under the control of the Board for purposes of
investment, in accordance with regulations which shall
be issued by the Board. The Board shall issue
regulations with respect to the investigative authority
of appropriate Federal agencies in cases involving such
assets.
``(B) Exculpatory provisions voided.--Any provision
in an agreement or instrument which purports to relieve
a fiduciary from responsibility or liability for any
responsibility, obligation, or duty under this
subsection shall be void.
``(5) Civil actions by board.--If any person fails to meet
any requirement of this subsection or regulations prescribed
thereunder or of any contract entered into under this
subsection, the Board may bring a civil action in any district
court of the United States within the jurisdiction of which
such person's assets are located or in which such person
resides or is found, without regard to the amount in
controversy, for appropriate relief to redress the violation or
enforce the requirement, and process in such an action may be
served in any district.
``(6) Authorization of appropriations.--There are
authorized to be appropriated to the Board, for fiscal years
beginning on or after October 1, 2005, such sums as are
necessary to carry out the Board's duties under this
subsection.''.
SEC. 4. PROTECTION OF SOCIAL SECURITY SURPLUSES.
(a) Protection of Social Security Surpluses.--Title III of the
Congressional Budget Act of 1974 is amended by adding at the end the
following new section:
``safeguarding social security surpluses
``Sec. 316. (a) In General.--
``(1) Concurrent resolutions on the budget.--It shall not
be in order in the House of Representatives or the Senate to
consider any concurrent resolution on the budget, or an
amendment thereto or conference report thereon, that would set
forth a deficit for any fiscal year for which there is a
projected net surplus in the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability Insurance Trust
Fund.
``(2) Spending and tax legislation.--It shall not be in
order in the House of Representatives or the Senate to consider
any bill, joint resolution, amendment, motion, or conference
report if--
``(A) the enactment of that bill or resolution, as
reported;
``(B) the adoption and enactment of that amendment;
or
``(C) the enactment of that bill or resolution in
the form recommended in that conference report,
would cause a deficit for any fiscal year for which there is a
projected net surplus in the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability Insurance Trust
Fund.
``(b) Enforcement.--
``(1) Budgetary levels with respect to concurrent
resolutions on the budget.--For purposes of enforcing any point
of order under subsection (a)(1), the extent to which there is
a deficit for any fiscal year shall be determined on the basis
of budgetary aggregates set forth in the later of the
concurrent resolution on the budget, as reported, or in the
conference report on the concurrent resolution on the budget,
adjusted to the maximum extent allowable under all procedures
that allow budgetary aggregates to be adjusted for legislation
that would cause a decrease in any surplus or an increase in
any deficit for any fiscal year covered by the concurrent
resolution on the budget (other than procedures described in
paragraph (2)(A)(ii)).
``(2) Current levels with respect to spending and tax
legislation.--
``(A) In general.--For purposes of enforcing
subsection (a)(2), the extent to which there is a
deficit for any fiscal year shall be--
``(i) calculated using the following
assumptions--
``(I) direct spending and revenue
levels at the baseline levels
underlying the most recently agreed to
concurrent resolution on the budget;
and
``(II) for the budget year,
discretionary spending levels at
current law levels and, for outyears,
discretionary spending levels at the
baseline levels underlying the most
recently agreed to concurrent
resolution on the budget; and
``(ii) adjusted for changes in the surplus
or deficit levels set forth in the most
recently agreed to concurrent resolution on the
budget pursuant to procedures in such
resolution that authorize adjustments in
budgetary aggregates for updated economic and
technical assumptions in the mid-session report
of the Director of the Congressional Budget
Office.
Such revisions shall be included in the first current
level report on the congressional budget submitted for
publication in the Congressional Record after the
release of such mid-session report.
``(c) Waiver and Appeal.--Subsection (a) may be waived or suspended
in the Senate only by an affirmative vote of three-fifths of the
Members, duly chosen and sworn. An affirmative vote of three-fifths of
the Members of the Senate, duly chosen and sworn, shall be required in
the Senate to sustain an appeal of the ruling of the Chair on a point
of order raised under this section.''.
(b) Conforming Amendment.--The item relating to section 316 in the
table of contents set forth in section 1(b) of the Congressional Budget
and Impoundment Control Act of 1974 is amended to read as follows:
``Sec. 316. Safeguarding social security surpluses.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committees on the Budget, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on the Budget, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on the Budget, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on the Budget, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Social Security.
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