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.

Summary: Social Security Preservation Act of 2003 - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act to require the Managing Trustee of the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund (social security trust funds) to ensure that the annual surplus of the Social Security Trust Funds is invested in: (1) marketable interest-bearing obligations of the United States or obligations guaranteed by the United States; or (2) certificates of deposit in insured depository institutions. Outlines provisions for determining the annual surplus of the Trust Funds.Prohibits disinvestment of Social Security Trust Fund amounts from public debt obligations, any refraining from making such investments, or any delay in making normal deposits in such Trust Funds for public debt limit-related purposes. Authorizes, with certain conditions, the sale of Social Security Trust Fund public debt obligations for the payment of cash benefits and administrative expenses.

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 Fund under paragraphs (1) and (2) of subsection 
                (b) for the fiscal year, and
                    ``(III) in either case, the amount appropriated to 
                such Trust Fund under section 121(e) of the Social 
                Security Amendments of 1983 for the fiscal year, and 
                any amounts otherwise credited to or deposited in such 
                Trust Fund under this title for the fiscal year, over
            ``(ii) the amounts paid or transferred from such Trust Fund 
        during the fiscal year.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to annual surpluses as of the end of fiscal years 
beginning on or after October 1, 2004.

SEC. 3. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS FROM THE PUBLIC 
              DEBT LIMIT.

    (a) Protection of Trust Funds.--Notwithstanding any other provision 
of law--
            (1) no officer or employee of the United States may--
                    (A) delay the deposit of any amount into (or delay 
                the credit of any amount to) the Federal Old-Age and 
                Survivors Insurance Trust Fund or the Federal 
                Disability Insurance Trust Fund or otherwise vary from 
                the normal terms, procedures, or timing for making such 
                deposits or credits, or
                    (B) refrain from the investment in public debt 
                obligations of amounts in either of such Trust Funds,
        if a purpose of such action or inaction is to not increase the 
        amount of outstanding public debt obligations, and
            (2) no officer or employee of the United States may 
        disinvest amounts in either of such Trust Funds which are 
        invested in public debt obligations if a purpose of the 
        disinvestment is to reduce the amount of outstanding public 
        debt obligations.
    (b) Protection of Benefits and Expenditures for Administrative 
Expenses.--
            (1) In general.--Notwithstanding subsection (a), during any 
        period for which cash benefits or administrative expenses would 
        not otherwise be payable from the Federal Old-Age and Survivors 
        Insurance Trust Fund or the Federal Disability Insurance Trust 
        Fund by reason of an inability to issue further public debt 
        obligations because of the applicable public debt limit, public 
        debt obligations held by such Trust Fund shall be sold or 
        redeemed only for the purpose of making payment of such 
        benefits or administrative expenses and only to the extent cash 
        assets of such Trust Fund are not available from month to month 
        for making payment of such benefits or administrative expenses.
            (2) Issuance of corresponding debt.--For purposes of 
        undertaking the sale or redemption of public debt obligations 
        held by the Federal Old-Age and Survivors Insurance Trust Fund 
        or the Federal Disability Insurance Trust Fund pursuant to 
        paragraph (1), the Secretary of the Treasury may issue 
        corresponding public debt obligations to the public, in order 
        to obtain the cash necessary for payment of benefits or 
        administrative expenses from such Trust Fund, notwithstanding 
        the public debt limit.
            (3) Advance notice of sale or redemption.--Not less than 3 
        days prior to the date on which, by reason of the public debt 
        limit, the Secretary of the Treasury expects to undertake a 
        sale or redemption authorized under paragraph (1), the 
        Secretary of the Treasury shall report to each House of the 
        Congress and to the Comptroller General of the United States 
        regarding the expected sale or redemption. Upon receipt of such 
        report, the Comptroller General shall review the extent of 
        compliance with subsection (a) and paragraphs (1) and (2) of 
        this subsection and shall issue such findings and 
        recommendations to each House of the Congress as the 
        Comptroller General considers necessary and appropriate.
    (c) Public Debt Obligation.--For purposes of this section, the term 
``public debt obligation'' means any obligation subject to the public 
debt limit established under section 3101 of title 31, United States 
Code.