I 

108TH CONGRESS 

1ST SESSION H. R. 219

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 interestbearing 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 REPRESENTATIVES 

JANUARY 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 

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Social Security Preser3 vation Act of 2003’’. 

4 SEC. 2. INVESTMENT OF THE FEDERAL OLD-AGE AND SUR5 VIVORS INSURANCE TRUST FUND AND THE 

6 FEDERAL DISABILITY INSURANCE TRUST 

7 FUND. 

8 (a) IN GENERAL.—Section 201(d) of the Social Secu9 rity Act (42 U.S.C. 401(d)) is amended—

10 (1) by inserting ‘‘(1)’’ after ‘‘(d)’’; 

11 (2) by striking ‘‘Such investments may be made 

12 only’’ and inserting the following: ‘‘Except as pro13 vided in paragraph (2), such investments may be 

14 made only’’; 

15 (3) by striking the last sentence; and 

16 (4) by adding at the end the following new 

17 paragraph: 

18 ‘‘(2)(A) The Managing Trustee shall determine the 

19 annual surplus (as defined in subparagraph (B)) for each 

20 of the Trust Funds as of the end of each fiscal year. The 

21 Managing Trustee shall ensure that such annual surplus 

22 is invested, throughout the next following fiscal year, in—

23 ‘‘(i) marketable interest-bearing obligations of 

24 the United States or obligations guaranteed as to 

25 both principal and interest by the United States, 
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1 purchased on original issue or at the market price, 

2 or 

3 ‘‘(ii) certificates of deposit in insured depository 

4 institutions (as defined in section 3(c)(2) of the Fed5 eral Deposit Insurance Act). 

6 ‘‘(B) For purposes of this paragraph, the ‘annual sur7 plus’ for either of the Trust Funds as of the end of a 

8 fiscal year is the excess (if any) of—

9 ‘‘(i) the sum of—

10 ‘‘(I) in the case of the Federal Old-Age 

11 and Survivors Insurance Trust Fund, the 

12 amounts appropriated to such Trust Fund 

13 under paragraphs (3) and (4) of subsection (a) 

14 for the fiscal year, 

15 ‘‘(II) in the case of the Federal Disability 

16 Insurance Trust Fund, the amounts appro17 priated to such Trust Fund under paragraphs 

18 (1) and (2) of subsection (b) for the fiscal year, 

19 and 

20 ‘‘(III) in either case, the amount appro21 priated to such Trust Fund under section 

22 121(e) of the Social Security Amendments of 

23 1983 for the fiscal year, and any amounts oth24 erwise credited to or deposited in such Trust 

25 Fund under this title for the fiscal year, over 
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1 ‘‘(ii) the amounts paid or transferred from such 

2 Trust Fund during the fiscal year.’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply with respect to annual surpluses 

5 as of the end of fiscal years beginning on or after October 

6 1, 2004. 

7 SEC. 3. PROTECTION OF THE SOCIAL SECURITY TRUST 

8 FUNDS FROM THE PUBLIC DEBT LIMIT. 

9 (a) PROTECTION OF TRUST FUNDS.—Notwith10 standing any other provision of law—

11 (1) no officer or employee of the United States 

12 may—

13 (A) delay the deposit of any amount into 

14 (or delay the credit of any amount to) the Fed15 eral Old-Age and Survivors Insurance Trust 

16 Fund or the Federal Disability Insurance Trust 

17 Fund or otherwise vary from the normal terms, 

18 procedures, or timing for making such deposits 

19 or credits, or 

20 (B) refrain from the investment in public 

21 debt obligations of amounts in either of such 

22 Trust Funds, 

23 if a purpose of such action or inaction is to not in24 crease the amount of outstanding public debt obliga25 tions, and 
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1 (2) no officer or employee of the United States 

2 may disinvest amounts in either of such Trust 

3 Funds which are invested in public debt obligations 

4 if a purpose of the disinvestment is to reduce the 

5 amount of outstanding public debt obligations. 

6 (b) PROTECTION OF BENEFITS AND EXPENDITURES

7 FOR ADMINISTRATIVE EXPENSES.—

8 (1) IN GENERAL.—Notwithstanding subsection 

9 (a), during any period for which cash benefits or ad10 ministrative expenses would not otherwise be payable 

11 from the Federal Old-Age and Survivors Insurance 

12 Trust Fund or the Federal Disability Insurance 

13 Trust Fund by reason of an inability to issue further 

14 public debt obligations because of the applicable 

15 public debt limit, public debt obligations held by 

16 such Trust Fund shall be sold or redeemed only for 

17 the purpose of making payment of such benefits or 

18 administrative expenses and only to the extent cash 

19 assets of such Trust Fund are not available from 

20 month to month for making payment of such bene21 fits or administrative expenses. 

22 (2) ISSUANCE OF CORRESPONDING DEBT.—For 

23 purposes of undertaking the sale or redemption of 

24 public debt obligations held by the Federal Old-Age 

25 and Survivors Insurance Trust Fund or the Federal 
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1 Disability Insurance Trust Fund pursuant to para2 graph (1), the Secretary of the Treasury may issue 

3 corresponding public debt obligations to the public, 

4 in order to obtain the cash necessary for payment of 

5 benefits or administrative expenses from such Trust 

6 Fund, notwithstanding the public debt limit. 

7 (3) ADVANCE NOTICE OF SALE OR REDEMP8 TION.—Not less than 3 days prior to the date on 

9 which, by reason of the public debt limit, the Sec10 retary of the Treasury expects to undertake a sale 

11 or redemption authorized under paragraph (1), the 

12 Secretary of the Treasury shall report to each House 

13 of the Congress and to the Comptroller General of 

14 the United States regarding the expected sale or re15 demption. Upon receipt of such report, the Comp16 troller General shall review the extent of compliance 

17 with subsection (a) and paragraphs (1) and (2) of 

18 this subsection and shall issue such findings and rec19 ommendations to each House of the Congress as the 

20 Comptroller General considers necessary and appro21 priate. 

22 (c) PUBLIC DEBT OBLIGATION.—For purposes of 

23 this section, the term ‘‘public debt obligation’’ means any 
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1 obligation subject to the public debt limit established 

2 under section 3101 of title 31, United States Code.

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