I 

118TH CONGRESS 

1ST SESSION H. R. 853 

To amend titles II and XVIII 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 

and a Medicare Surplus Protection Account in the Federal Hospital 

Insurance Trust Fund to hold the Medicare surplus, to provide for 

suspension of investment of amounts held in such Accounts until enactment of legislation providing for investment of the Trust Funds in 

investment vehicles other than obligations of the United States, and 

to establish a Social Security and Medicare Part A Investment Commission to make recommendations for alternative forms of investment of 

the Social Security and Medicare surpluses. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 6, 2023 

Mr. WALBERG introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend titles II and XVIII 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 and a Medicare 

Surplus Protection Account in the Federal Hospital Insurance Trust Fund to hold the Medicare surplus, to 

provide for suspension of investment of amounts held 

in such Accounts until enactment of legislation providing 

for investment of the Trust Funds in investment vehicles 

other than obligations of the United States, and to estabVerDate Sep 11 2014 21:13 Feb 28, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H853.IH H853

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lish a Social Security and Medicare Part A Investment 

Commission to make recommendations for alternative 

forms of investment of the Social Security and Medicare 

surpluses. 

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; FINDINGS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Social Security and Medicare Lock-Box Act’’. 

6 (b) FINDINGS REGARDING SOCIAL SECURITY AND

7 MEDICARE PART A.—The Congress finds the following: 

8 (1)(A) Long-term projections show serious 

9 problems facing the fiscal health of the trust funds 

10 associated with Social Security and Medicare Hos11 pital Insurance. 

12 (B) According to the 2020 Annual Report of 

13 the Board of Trustees of the Federal Old-Age and 

14 Survivors Insurance and Federal Disability Insur15 ance Trust Funds, the assets of the combined Fed16 eral Old-Age and Survivors Insurance Trust Fund 

17 and the Federal Disability Insurance Trust Fund 

18 will be exhausted in 2035, and the Disability Insur19 ance Trust Fund alone will be depleted in 2065. 

20 (C) According to the 2020 Annual Report of 

21 the Board of Trustees of the Federal Hospital InVerDate Sep 11 2014 21:13 Feb 28, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H853.IH H853

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1 surance, the assets of the Federal Hospital Insur2 ance Trust Fund will be exhausted in 2026. 

3 (2) The Trustees of these trust funds encourage 

4 lawmakers to address the long-term financial chal5 lenges of the Social Security and Medicare programs 

6 as soon as possible. 

7 (3) Social Security and Medicare are meant to 

8 provide a secure and stable base so that older Amer9 icans can live in dignity. 

10 (4) Protecting the future surpluses of these 

11 trust funds can only occur when meaningful reform 

12 has been enacted by Congress. Any path to solvency 

13 must include the protection of future surpluses. 

14 SEC. 2. INTERIM PROTECTIONS FOR SOCIAL SECURITY 

15 TRUST FUND SURPLUS. 

16 Section 201(d) of the Social Security Act (42 U.S.C. 

17 402(d)) is amended— 

18 (1) by striking ‘‘It shall be the duty’’ and in19 serting ‘‘(1) Except as provided in paragraph (2), it 

20 shall be the duty’’; 

21 (2) by striking ‘‘(1) on original issue at the 

22 issue price, or (2)’’ and inserting ‘‘(A) on original 

23 issue at the issue price, or (B)’’; and 

24 (3) by adding at the end the following new 

25 paragraph: 


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

2 and Survivors Insurance Trust Fund a Social Security 

3 Surplus Protection Account. As soon as practicable after 

4 the end of each fiscal year after fiscal year 2024, the Man5 aging Trustee shall transfer to the Account, from amounts 

6 otherwise available in the Trust Fund, amounts equivalent 

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

8 amounts shall be transferred from time to time to the Ac9 count, such amounts to be determined on the basis of esti10 mates by the Managing Trustee, and proper adjustments 

11 shall be made in amounts subsequently transferred to the 

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

13 the correct amount. 

14 ‘‘(B) For purposes of subparagraph (A), the term ‘so15 cial security surplus’ means, for any fiscal year, the excess, 

16 if any, of— 

17 ‘‘(i) the sum of— 

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

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

20 3111(b)) of the Internal Revenue Code of 1986 

21 with respect to wages (as defined in section 

22 3121 of such Code) reported to the Secretary of 

23 the Treasury or his delegates pursuant to sub24 title F of such Code, as determined by the Sec25 retary of the Treasury by applying the applicaVerDate Sep 11 2014 21:13 Feb 28, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H853.IH H853

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1 ble rates of tax under such chapter 21 (other 

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

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

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

5 year; 

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

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

8 Revenue Code of 1986 with respect to self-em9 ployment income (as defined in section 1402 of 

10 such Code) reported to the Secretary of the 

11 Treasury on tax returns under subtitle F of 

12 such Code, as determined by the Secretary of 

13 the Treasury by applying the applicable rate of 

14 tax under such chapter (other than section 

15 1401(b)) to such self-employment income, less 

16 the amounts specified in clause (2) of sub17 section (b) of this section for such fiscal year; 

18 and 

19 ‘‘(III) the amount equivalent to the aggre20 gate increase in tax liabilities under chapter 1 

21 of the Internal Revenue Code of 1986 which is 

22 attributable to the application of sections 86 

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

24 the Trust Fund; over 

25 ‘‘(ii) the sum of— 


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

2 during the fiscal year; and 

3 ‘‘(II) amounts authorized to be made avail4 able from the Trust Fund under subsection (g) 

5 of this section which are paid from the Trust 

6 Fund during such fiscal year. 

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

8 the Account shall not be available for investment by the 

9 Managing Trustee. 

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

11 shall not apply with respect to fiscal years commencing 

12 with or after the first fiscal year, after fiscal year 2024, 

13 for which a provision of Federal law takes effect and au14 thorizes, for amounts in the Trust Fund, an investment 

15 vehicle other than obligations of the United States. 

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

17 meet the requirements of clause (i) if such provision in18 cludes the following: ‘This Act shall be considered to be 

19 a provision of Federal law meeting the requirements of 

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

21 SEC. 3. INTERIM PROTECTIONS FOR MEDICARE PART A 

22 TRUST FUND SURPLUS. 

23 (a) IN GENERAL.—Section 1817(c) of the Social Se24 curity Act (42 U.S.C. 1395i(c)) is amended— 


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1 (1) by striking ‘‘It shall be the duty’’ and in2 serting ‘‘(1) Except as provided in paragraph (2), it 

3 shall be the duty’’; 

4 (2) by striking ‘‘(1) on original issue at the 

5 issue price, or (2)’’ and inserting ‘‘(A) on original 

6 issue at the issue price, or (B)’’; and 

7 (3) by adding at the end the following new 

8 paragraph: 

9 ‘‘(2)(A) There is established in the Federal Hospital 

10 Insurance Trust Fund a Medicare Surplus Protection Ac11 count (in this paragraph referred to as the ‘Account’). As 

12 soon as practicable after the end of each fiscal year after 

13 fiscal year 2024, the Managing Trustee shall transfer to 

14 the Account, from amounts otherwise available in the 

15 Trust Fund, amounts equivalent to the Medicare part A 

16 surplus for such fiscal year. Such amounts shall be trans17 ferred from time to time to the Account, such amounts 

18 to be determined on the basis of estimates by the Man19 aging Trustee, and proper adjustments shall be made in 

20 amounts subsequently transferred to the extent prior esti21 mates were in excess of or were less than the correct 

22 amount. 

23 ‘‘(B) For purposes of subparagraph (A), the term 

24 ‘Medicare part A surplus’ means, for any fiscal year, the 

25 excess, if any, of— 


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1 ‘‘(i) the sum of— 

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

3 by sections 3101(b) and 3111(b) of the Internal 

4 Revenue Code of 1986 with respect to wages 

5 (as defined in section 3121 of such Code) re6 ported to the Secretary of the Treasury or his 

7 delegates pursuant to subtitle F of such Code, 

8 as determined by the Secretary of the Treasury 

9 by applying the applicable rates of tax under 

10 such sections to such wages; and 

11 ‘‘(II) the taxes imposed by section 1401(b) 

12 of the Internal Revenue Code of 1986 with re13 spect to self-employment income (as defined in 

14 section 1402 of such Code) reported to the Sec15 retary of the Treasury on tax returns under 

16 subtitle F of such Code, as determined by the 

17 Secretary of the Treasury by applying the ap18 plicable rate of tax under such section 1401(b) 

19 to such self-employment income; over 

20 ‘‘(ii) the sum of— 

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

22 during the fiscal year; and 

23 ‘‘(II) amounts authorized to be made avail24 able from the Trust Fund under subsection (f) 

25 of this section (or section 201(g)) which are 


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1 paid from the Trust Fund during such fiscal 

2 year. 

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

4 the Account shall not be available for investment by the 

5 Managing Trustee. 

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

7 shall not apply with respect to fiscal years commencing 

8 with or after the first fiscal year, after fiscal year 2024, 

9 for which a provision of Federal law takes effect and au10 thorizes, for amounts in the Trust Fund, an investment 

11 vehicle other than obligations of the United States. 

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

13 meet the requirements of clause (i) if such provision in14 cludes the following: ‘This Act shall be considered to be 

15 a provision of Federal law meeting the requirements of 

16 section 1817(c)(2)(D)(i) of the Social Security Act.’.’’. 

17 SEC. 4. SOCIAL SECURITY AND MEDICARE PART A INVEST18 MENT COMMISSION. 

19 (a) ESTABLISHMENT.—There is established in the ex20 ecutive branch of the Government a Social Security and 

21 Medicare Part A Investment Commission (in this section 

22 referred to as the ‘‘Commission’’). 

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

24 after the date of the enactment of this Act, the Commis25 sion shall conduct a study to ascertain the most effective 


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1 vehicles for investment of the Federal Old-Age and Sur2 vivors Insurance Trust Fund and the Federal Hospital In3 surance Trust Fund, other than investment in the form 

4 of obligations of the United States. Not later than October 

5 1, 2024, the Commission shall submit a report to the 

6 President and to each House of the Congress setting forth 

7 its recommendations for such vehicles for investment, to8 gether with proposals for such administrative and legisla9 tive changes as the Commission determines necessary to 

10 authorize and implement such recommendations. 

11 (c) COMPOSITION.—The Commission shall be com12 posed of— 

13 (1) 3 members appointed by the President, of 

14 whom 1 shall be designated by the President as 

15 Chairman; 

16 (2) 2 members appointed by the Speaker of the 

17 House of Representatives; 

18 (3) 1 member appointed by the minority leader 

19 of the House of Representatives; 

20 (4) 2 members appointed by the majority leader 

21 of the Senate; and 

22 (5) 1 member appointed by the minority leader 

23 of the Senate. 

24 (d) MEMBERSHIP REQUIREMENTS.—Members of the 

25 Commission shall have substantial experience, training, 


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1 and expertise in the management of financial investments 

2 and pension benefit plans. 

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

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

5 vacancy on the Commission shall be filled in the manner 

6 in which the original appointment was made and shall be 

7 subject to any conditions that applied with respect to the 

8 original appointment. 

9 (f) ADMINISTRATIVE PROVISIONS.— 

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

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

12 and 

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

14 Chairman. 

15 (2) EXERCISE OF POWERS.— 

16 (A) IN GENERAL.—The Commission shall 

17 perform the functions and exercise the powers 

18 of the Commission on a majority vote of a 

19 quorum of the Commission. Three members of 

20 the Commission shall constitute a quorum for 

21 the transaction of business. 

22 (B) VACANCIES.—A vacancy on the Com23 mission shall not impair the authority of a 

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1 tions and exercise the powers of the Commis2 sion. 

3 (g) COMPENSATION.— 

4 (1) IN GENERAL.—Each member of the Com5 mission who is not an officer or employee of the 

6 Federal Government shall be compensated at the 

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

8 Schedule for each day during which such member is 

9 engaged in performing a function of the Commis10 sion. 

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

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

13 expenses under subchapter I of chapter 57 of title 

14 5, United States Code, while traveling away from 

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

16 the performance of the duties of the Commission. 

17 (h) TERMINATION.—The Commission shall terminate 

18 90 days after the date of the submission of its report pur19 suant to subsection (b). 

Æ 


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