I 

111TH CONGRESS 

1ST SESSION H. R. 1712 

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. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 25, 2009 

Mrs. BLACKBURN (for herself, Mr. GINGREY of Georgia, Mr. MARCHANT, Mr. 

WESTMORELAND, Ms. GINNY BROWN-WAITE of Florida, and Mr. PITTS) 

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 


wwoods2 on PROD1PC60 with BILLS
2 

•HR 1712 IH

alternative forms of investment of the Social Security 

surplus in the Trust Fund. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Savings for Seniors 

5 Act of 2009’’. 

6 SEC. 2. INTERIM PROTECTIONS FOR SOCIAL SECURITY 

7 TRUST FUND SURPLUS. 

8 (a) IN GENERAL.—Section 201(d) of the Social Secu9 rity Act (42 U.S.C. 402(d)) is amended— 

10 (1) by striking ‘‘It shall be the duty’’ and in11 serting ‘‘(1) Except as provided in paragraph (2), it 

12 shall be the duty’’; and 

13 (2) by adding at the end the following new 

14 paragraph: 

15 ‘‘(2)(A) There is established in the Federal Old-Age 

16 and Survivors Insurance Trust Fund a Social Security 

17 Surplus Protection Account. As soon as practicable after 

18 each fiscal year after fiscal year 2011, the Managing 

19 Trustee shall transfer to the Account, from amounts oth20 erwise available in the Trust Fund, amounts equivalent 

21 to the social security surplus for such fiscal year. Such 

22 amounts shall be transferred from time to time to the Ac23 count, such amounts to be determined on the basis of esti24 mates by the Managing Trustee, and proper adjustments 


wwoods2 on PROD1PC60 with BILLS
3 

•HR 1712 IH

1 shall be made in amounts subsequently transferred to the 

2 extent prior estimates were in excess of or were less than 

3 the correct amount. 

4 ‘‘(B) For purposes of subparagraph (A), the term ‘so5 cial security surplus’ means, for any fiscal year, the excess, 

6 if any, of— 

7 ‘‘(i) the sum of— 

8 ‘‘(I) the taxes imposed for such fiscal year 

9 by chapter 21 (other than sections 3101(b) and 

10 3111(b)) of the Internal Revenue Code of 1986 

11 with respect to wages (as defined in section 

12 3121 of such Code) reported to the Secretary of 

13 the Treasury or his delegates pursuant to sub14 title F of such Code, as determined by the Sec15 retary of the Treasury by applying the applica16 ble rates of tax under such chapter 21 (other 

17 than sections 3101(b) and 3111(b)) to such 

18 wages, less the amounts specified in clause (1) 

19 of subsection (b) of this section for such fiscal 

20 year, 

21 ‘‘(II) the taxes imposed by chapter 2 

22 (other than section 1401(b)) of the Internal 

23 Revenue Code of 1986 with respect to self-em24 ployment income (as defined in section 1402 of 

25 such Code) reported to the Secretary of the 


wwoods2 on PROD1PC60 with BILLS
4 

•HR 1712 IH

1 Treasury on tax returns under subtitle F of 

2 such Code, as determined by the Secretary of 

3 the Treasury be applying the applicable rate of 

4 tax under such chapter (other than section 

5 1401(b)) to such self-employment income, less 

6 the amounts specified in clause (2) of sub7 section (b) of this section for such fiscal year, 

8 and 

9 ‘‘(III) the amount equivalent to the aggre10 gate increase in tax liabilities under chapter 1 

11 of the Internal Revenue Code of 1986 which is 

12 attributable to the application of sections 86 

13 and 871(a)(3) of such Code to payments from 

14 the Trust Fund, over 

15 ‘‘(ii) the sum of— 

16 ‘‘(I) benefits paid from the Trust Fund 

17 during the fiscal year, and 

18 ‘‘(II) amounts authorized to be made avail19 able from the Trust Fund under subsection (g) 

20 of this section which are paid from the Trust 

21 Fund during such fiscal year. 

22 ‘‘(C) Notwithstanding paragraph (1), the balance in 

23 the Account shall not be available for investment by the 

24 Managing Trustee. 


wwoods2 on PROD1PC60 with BILLS
5 

•HR 1712 IH

1 ‘‘(D)(i) The preceding provisions of this paragraph 

2 shall not apply with respect to fiscal years commencing 

3 with or after the first fiscal year, after fiscal year 2011, 

4 for which a provision of law Federal law takes effect and 

5 authorizes, for amounts in the Trust Fund, an investment 

6 vehicle other than obligations of the United States result7 ing in the transfer of Trust Fund assets to the general 

8 fund of the Treasury. 

9 ‘‘(ii) A provision of Federal law shall be deemed to 

10 meet the requirements of clause (i) if such provision in11 cludes the the following: ‘This Act shall be considered to 

12 be a provision of Federal law meeting the requirements 

13 of section 201(d)(2)(D)(i) of the Social Security Act.’.’’. 

14 SEC. 3. SOCIAL SECURITY INVESTMENT COMMISSION. 

15 (a) ESTABLISHMENT.—There is established in the ex16 ecutive branch of the Government a Social Security Invest17 ment Commission. 

18 (b) STUDY AND REPORT.—As soon as practicable 

19 after the date of the enactment of this Act, the Commis20 sion shall conduct a study to ascertain the most effective 

21 vehicles for investment of the Federal Old-Age and Sur22 vivors Insurance Trust Fund, other than investment in the 

23 form of obligations of the United States resulting in the 

24 transfer of Trust Fund assets to the general fund of the 

25 Treasury. Not later than October 1, 2011, the CommisVerDate Nov 24 2008 03:07 Mar 26, 2009 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1712.IH H1712

wwoods2 on PROD1PC60 with BILLS
6 

•HR 1712 IH

1 sion shall submit a report to the President and to each 

2 House of the Congress setting forth its recommendations 

3 for such vehicles for investment, together with proposals 

4 for such administrative and legislative changes as the 

5 Commission determines necessary to authorize and imple6 ment such recommendations. 

7 (c) COMPOSITION.—The Commission shall be com8 posed of— 

9 (1) 3 members appointed by the President, of 

10 whom 1 shall be designated by the President as 

11 Chairman; 

12 (2) 2 members appointed by the Speaker of the 

13 House of Representatives; 

14 (3) 1 member appointed by the minority leader 

15 of the House of Representatives; 

16 (4) 2 members appointed by the majority leader 

17 of the Senate; and 

18 (5) 1 members appointed by the minority leader 

19 of the Senate. 

20 (d) MEMBERSHIP REQUIREMENTS.—Members of the 

21 Commission shall have substantial experience, training, 

22 and expertise in the management of financial investments 

23 and pension benefit plans. 

24 (e) LENGTH OF APPOINTMENTS.—Members of the 

25 Commission shall serve for the life of the Commission. A 


wwoods2 on PROD1PC60 with BILLS
7 

•HR 1712 IH

1 vacancy on the Commission shall be filled in the manner 

2 in which the original appointment was made and shall be 

3 subject to any conditions that applied with respect to the 

4 original appointment. 

5 (f) ADMINISTRATIVE PROVISIONS.— 

6 (1) MEETINGS.—The Commission shall meet— 

7 (A) not less than once during each month; 

8 and 

9 (B) at additional times at the call of the 

10 Chairman. 

11 (2) EXERCISE OF POWERS.— 

12 (A) IN GENERAL.—The Commission shall 

13 perform the functions and exercise the powers 

14 of the Commission on a majority vote of a 

15 quorum of the Commission. Three members of 

16 the Commission shall constitute a quorum for 

17 the transaction of business. 

18 (B) VACANCIES.—A vacancy on the Com19 mission shall not impair the authority of a 

20 quorum of the Commission to perform the func21 tions and exercise the powers of the Commis22 sion. 

23 (g) COMPENSATION.— 

24 (1) IN GENERAL.—Each member of the Com25 mission who is not an officer or employee of the 


wwoods2 on PROD1PC60 with BILLS
8 

•HR 1712 IH

1 Federal Government shall be compensated at the 

2 daily rate of basic pay for level IV of the Executive 

3 Schedule for each day during which such member is 

4 engaged in performing a function of the Commis5 sion. 

6 (2) EXPENSES.—A member of the Commission 

7 shall be paid travel, per diem, and other necessary 

8 expenses under subchapter I of chapter 57 of title 

9 5, United States Code, while traveling away from 

10 such member’s home or regular place of business in 

11 the performance of the duties of the Commission. 

12 (h) TERMINATION.—The Commission shall terminate 

13 90 days after the date of the submission of its report pur14 suant to subsection (b). 

Æ 


wwoods2 on PROD1PC60 with BILLS