[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 581 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 581
To amend title II of the Social Security Act to establish a Social
Security Surplus Protection Account in the Federal Old-Age and
Survivors Insurance Trust Fund to hold the Social Security surplus, to
provide for suspension of investment of amounts held in the Account
until enactment of legislation providing for investment of the Trust
Fund in investment vehicles other than obligations of the United
States, and to establish a Social Security Investment Commission to
make recommendations for alternative forms of investment of the Social
Security surplus in the Trust Fund.
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IN THE HOUSE OF REPRESENTATIVES
January 19, 2007
Mrs. Blackburn (for herself, Mr. Akin, Mr. Westmoreland, and Mr.
Gingrey) introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend title II of the Social Security Act to establish a Social
Security Surplus Protection Account in the Federal Old-Age and
Survivors Insurance Trust Fund to hold the Social Security surplus, to
provide for suspension of investment of amounts held in the Account
until enactment of legislation providing for investment of the Trust
Fund in investment vehicles other than obligations of the United
States, and to establish a Social Security Investment Commission to
make recommendations for alternative forms of investment of the Social
Security surplus in the Trust Fund.
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 ``Savings for Seniors Act of 2007''.
SEC. 2. INTERIM PROTECTIONS FOR SOCIAL SECURITY TRUST FUND SURPLUS.
(a) In General.--Section 201(d) of the Social Security Act (42
U.S.C. 402(d)) is amended--
(1) by striking ``It shall be the duty'' and inserting
``(1) Except as provided in paragraph (2), it shall be the
duty''; and
(2) by adding at the end the following new paragraph:
``(2)(A) There is established in the Federal Old-Age and Survivors
Insurance Trust Fund a Social Security Surplus Protection Account. As
soon as practicable after each fiscal year after fiscal year 2009, the
Managing Trustee shall transfer to the Account, from amounts otherwise
available in the Trust Fund, amounts equivalent to the social security
surplus for such fiscal year. Such amounts shall be transferred from
time to time to the Account, such amounts to be determined on the basis
of estimates by the Managing Trustee, and proper adjustments shall be
made in amounts subsequently transferred to the extent prior estimates
were in excess of or were less than the correct amount.
``(B) For purposes of subparagraph (A), the term `social security
surplus' means, for any fiscal year, the excess, if any, of--
``(i) the sum of--
``(I) the taxes imposed for such fiscal year by
chapter 21 (other than sections 3101(b) and 3111(b)) of
the Internal Revenue Code of 1986 with respect to wages
(as defined in section 3121 of such Code) reported to
the Secretary of the Treasury or his delegates pursuant
to subtitle F of such Code, as determined by the
Secretary of the Treasury by applying the applicable
rates of tax under such chapter 21 (other than sections
3101(b) and 3111(b)) to such wages, less the amounts
specified in clause (1) of subsection (b) of this
section for such fiscal year,
``(II) the taxes imposed by chapter 2 (other than
section 1401(b)) of the Internal Revenue Code of 1986
with respect to self-employment income (as defined in
section 1402 of such Code) reported to the Secretary of
the Treasury on tax returns under subtitle F of such
Code, as determined by the Secretary of the Treasury be
applying the applicable rate of tax under such chapter
(other than section 1401(b)) to such self-employment
income, less the amounts specified in clause (2) of
subsection (b) of this section for such fiscal year,
and
``(III) the amount equivalent to the aggregate
increase in tax liabilities under chapter 1 of the
Internal Revenue Code of 1986 which is attributable to
the application of sections 86 and 871(a)(3) of such
Code to payments from the Trust Fund, over
``(ii) the sum of--
``(I) benefits paid from the Trust Fund during the
fiscal year, and
``(II) amounts authorized to be made available from
the Trust Fund under subsection (g) of this section
which are paid from the Trust Fund during such fiscal
year.
``(C) Notwithstanding paragraph (1), the balance in the Account
shall not be available for investment by the Managing Trustee.
``(D)(i) The preceding provisions of this paragraph shall not apply
with respect to fiscal years commencing with or after the first fiscal
year, after fiscal year 2009, for which a provision of law Federal law
takes effect and authorizes, for amounts in the Trust Fund, an
investment vehicle other than obligations of the United States
resulting in the transfer of Trust Fund assets to the general fund of
the Treasury.
``(ii) A provision of Federal law shall be deemed to meet the
requirements of clause (i) if such provision includes the the
following: `This Act shall be considered to be a provision of Federal
law meeting the requirements of section 201(d)(2)(D)(i) of the Social
Security Act.'.''.
SEC. 3. SOCIAL SECURITY INVESTMENT COMMISSION.
(a) Establishment.--There is established in the executive branch of
the Government a Social Security Investment Commission.
(b) Study and Report.--As soon as practicable after the date of the
enactment of this Act, the Commission shall conduct a study to
ascertain the most effective vehicles for investment of the Federal
Old-Age and Survivors Insurance Trust Fund, other than investment in
the form of obligations of the United States resulting in the transfer
of Trust Fund assets to the general fund of the Treasury. Not later
than October 1, 2009, the Commission shall submit a report to the
President and to each House of the Congress setting forth its
recommendations for such vehicles for investment, together with
proposals for such administrative and legislative changes as the
Commission determines necessary to authorize and implement such
recommendations.
(c) Composition.--The Commission shall be composed of--
(1) 3 members appointed by the President, of whom 1 shall
be designated by the President as Chairman;
(2) 2 members appointed by the Speaker of the House of
Representatives;
(3) 1 member appointed by the minority leader of the House
of Representatives;
(4) 2 members appointed by the majority leader of the
Senate; and
(5) 1 members appointed by the minority leader of the
Senate.
(d) Membership Requirements.--Members of the Commission shall have
substantial experience, training, and expertise in the management of
financial investments and pension benefit plans.
(e) Length of Appointments.--Members of the Commission shall serve
for the life of the Commission. A vacancy on the Commission shall be
filled in the manner in which the original appointment was made and
shall be subject to any conditions that applied with respect to the
original appointment.
(f) Administrative Provisions.--
(1) Meetings.--The Commission shall meet--
(A) not less than once during each month; and
(B) at additional times at the call of the
Chairman.
(2) Exercise of powers.--
(A) In general.--The Commission shall perform the
functions and exercise the powers of the Commission on
a majority vote of a quorum of the Commission. Three
members of the Commission shall constitute a quorum for
the transaction of business.
(B) Vacancies.--A vacancy on the Commission shall
not impair the authority of a quorum of the Commission
to perform the functions and exercise the powers of the
Commission.
(g) Compensation.--
(1) In general.--Each member of the Commission 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 Commission.
(2) Expenses.--A member of the Commission 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 Commission.
(h) Termination.--The Commission shall terminate 90 days after the
date of the submission of its report pursuant to subsection (b).
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