Social Security Strengthening and Protection Act of 1999

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Strengthening and 
Protection Act of 1999''.

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 paragraphs (2) 
        and (3), such investments may be made only'';
            (3) by striking the last sentence; and
            (4) by adding at the end the following new paragraphs:
    ``(2)(A) As of the end of each fiscal year, the Managing Trustee 
shall determine--
            ``(i) the surplus (if any) in the total budget of the 
        Government of the United States, and
            ``(ii) the total amount of the Trust Funds then invested in 
        obligations issued pursuant to paragraph (1).
    ``(B) During the following fiscal year, the Managing Trustee shall 
purchase qualified investments, with amounts otherwise available in the 
general fund of the Treasury, at original issue or on the market, at a 
total cost equal to at least 90 percent of the surplus referred to in 
subparagraph (A)(i), except that such total cost may not exceed the 
total amount referred to in subparagraph (A)(ii).
    ``(C) Upon the purchase of qualified investments pursuant to 
subparagraph (B), the Managing Trustee shall redeem, with such 
qualified investments, obligations which have been issued pursuant to 
paragraph (1) and are held by either of the Trust Funds. Such qualified 
investments shall be held by the Trust Fund until liquidation of such 
qualified investments is necessary to meet current withdrawals or is 
otherwise determined by the Managing Trustee to be in the public 
interest.
    ``(D) Effective for fiscal years beginning after such time as all 
obligations issued pursuant to paragraph (1) and held by the Trust 
Funds have been redeemed with qualified investments pursuant to 
subparagraph (C), the Managing Trustee shall invest only in qualified 
investments such portion of each Trust Fund as is not, in his judgment, 
required to meet current withdrawals.
    ``(E) The Managing Trustee shall exercise his authority under this 
paragraph solely for the benefit of the beneficiaries under the old-
age, survivors, and disability insurance program under this title.
    ``(3) For purposes of paragraph (2)--
            ``(A)(i) The term `qualified investment' means a marketable 
        interest-bearing obligation of the United States, purchased on 
        original issue or at the market price, which meets the 
        requirements of clause (ii).
            ``(ii) An obligation referred to in clause (i) meets the 
        requirements of this section if such obligation--
                    ``(I) has a maturity fixed with due regard for the 
                needs of the Trust Funds,
                    ``(II) bears interest at a rate at least equal to 
                the average market yield (computed by the Managing 
                Trustee on the basis of market quotations as of the end 
                of the calendar month next preceding the date of 
                purchase) on all marketable interest-bearing 
                obligations of the United States then forming a part of 
                the public debt which are not due or callable until 
                after the expiration of four years from the end of such 
                calendar month, and
                    ``(III) is subject to an option to redeem such 
                obligations at any time at the purchase price.
            ``(B) The term `total budget of the United States 
        Government' means all spending and receipt accounts of the 
        United States Government that are designated as on-budget or 
        off-budget accounts.
    ``(4) The preceding provisions of this subsection shall be subject 
to such reforms of the old-age, survivors, and disability insurance 
program under this title as may be provided in legislation enacted 
after the date of the enactment of the Social Security Strengthening 
and Protection Act of 1999.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to fiscal years beginning on or after October 1, 
2000.

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.

Summary: Social Security Strengthening and Protection Act of 1999 - Amends title II (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 to establish guidelines mandating the eventual investment by the Managing Trustee of such portion of each such social security trust fund not required to meet current withdrawals only in certain marketable interest-bearing obligations of the United States . Prohibits disinvestment of such 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 the sale of social security trust fund public debt obligations for payment of cash benefits and administrative expenses, with conditions, including advance notification to each House of the Congress and the Comptroller General before such sale.