To amend title II of the Social Security Act to ensure the integrity
of the Social Security trust funds by requiring the Managing Trustee
to invest the annual surplus of such trust funds in marketable interest-bearing
obligations of the United States and certificates of deposit in
depository institutions insured by the Federal Deposit Insurance
Corporation, and to protect such trust funds from the public debt
limit.
IN THE HOUSE OF REPRESENTATIVESJanuary 7, 2003
Mr. PAUL (for himself, Mr. SMITH of New Jersey, and Mr. TANCREDO)
introduced the following bill; which was referred to the Committee
on Ways and Means
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A BILL
To amend title II of the Social Security Act to ensure the integrity
of the Social Security trust funds by requiring the Managing Trustee
to invest the annual surplus of such trust funds in marketable interest-bearing
obligations of the United States and certificates of deposit in
depository institutions insured by the Federal Deposit Insurance
Corporation, and to protect such trust funds from the public debt
limit. 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 Preservation Act of 2003'.
SEC. 2. INVESTMENT 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 determine the annual surplus (as defined in subparagraph (B)) for each of the Trust Funds as of the end of each fiscal year. The Managing Trustee shall ensure that such annual surplus is invested, throughout the next following fiscal year, in--
(i) marketable interest-bearing obligations of the United States or obligations guaranteed as to both principal and interest by the United States, purchased on original issue or at the market price, or
(ii) certificates of deposit in insured depository institutions (as defined in section 3(c)(2) of the Federal Deposit Insurance Act).`(B) For purposes of this paragraph, the `annual surplus' for either of the Trust Funds as of the end of a fiscal 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) for the fiscal year,
(II) in the case of the Federal Disability Insurance Trust Fund, the amounts appropriated to such Trust