I 

110TH CONGRESS 

1ST SESSION H. R. 581 

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 

JANUARY 19, 2007 

Mrs. BLACKBURN (for herself, Mr. AKIN, Mr. WESTMORELAND, and Mr. 

GINGREY) 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 

alternative forms of investment of the Social Security 

surplus in the Trust Fund. 


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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 2007’’. 

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 2009, 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 

25 shall be made in amounts subsequently transferred to the 


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

2 the correct amount. 

3 ‘‘(B) For purposes of subparagraph (A), the term ‘so4 cial security surplus’ means, for any fiscal year, the excess, 

5 if any, of— 

6 ‘‘(i) the sum of— 

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

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

9 3111(b)) of the Internal Revenue Code of 1986 

10 with respect to wages (as defined in section 

11 3121 of such Code) reported to the Secretary of 

12 the Treasury or his delegates pursuant to sub13 title F of such Code, as determined by the Sec14 retary of the Treasury by applying the applica15 ble rates of tax under such chapter 21 (other 

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

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

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

19 year, 

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

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

22 Revenue Code of 1986 with respect to self-em23 ployment income (as defined in section 1402 of 

24 such Code) reported to the Secretary of the 

25 Treasury on tax returns under subtitle F of 


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1 such Code, as determined by the Secretary of 

2 the Treasury be applying the applicable rate of 

3 tax under such chapter (other than section 

4 1401(b)) to such self-employment income, less 

5 the amounts specified in clause (2) of sub6 section (b) of this section for such fiscal year, 

7 and 

8 ‘‘(III) the amount equivalent to the aggre9 gate increase in tax liabilities under chapter 1 

10 of the Internal Revenue Code of 1986 which is 

11 attributable to the application of sections 86 

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

13 the Trust Fund, over 

14 ‘‘(ii) the sum of— 

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

16 during the fiscal year, and 

17 ‘‘(II) amounts authorized to be made avail18 able from the Trust Fund under subsection (g) 

19 of this section which are paid from the Trust 

20 Fund during such fiscal year. 

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

22 the Account shall not be available for investment by the 

23 Managing Trustee. 

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

25 shall not apply with respect to fiscal years commencing 


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1 with or after the first fiscal year, after fiscal year 2009, 

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

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

4 vehicle other than obligations of the United States result5 ing in the transfer of Trust Fund assets to the general 

6 fund of the Treasury. 

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

8 meet the requirements of clause (i) if such provision in9 cludes the the following: ‘This Act shall be considered to 

10 be a provision of Federal law meeting the requirements 

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

12 SEC. 3. SOCIAL SECURITY INVESTMENT COMMISSION. 

13 (a) ESTABLISHMENT.—There is established in the ex14 ecutive branch of the Government a Social Security Invest15 ment Commission. 

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

17 after the date of the enactment of this Act, the Commis18 sion shall conduct a study to ascertain the most effective 

19 vehicles for investment of the Federal Old-Age and Sur20 vivors Insurance Trust Fund, other than investment in the 

21 form of obligations of the United States resulting in the 

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

23 Treasury. Not later than October 1, 2009, the Commis24 sion shall submit a report to the President and to each 

25 House of the Congress setting forth its recommendations 


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1 for such vehicles for investment, together with proposals 

2 for such administrative and legislative changes as the 

3 Commission determines necessary to authorize and imple4 ment such recommendations. 

5 (c) COMPOSITION.—The Commission shall be com6 posed of— 

7 (1) 3 members appointed by the President, of 

8 whom 1 shall be designated by the President as 

9 Chairman; 

10 (2) 2 members appointed by the Speaker of the 

11 House of Representatives; 

12 (3) 1 member appointed by the minority leader 

13 of the House of Representatives; 

14 (4) 2 members appointed by the majority leader 

15 of the Senate; and 

16 (5) 1 members appointed by the minority leader 

17 of the Senate. 

18 (d) MEMBERSHIP REQUIREMENTS.—Members of the 

19 Commission shall have substantial experience, training, 

20 and expertise in the management of financial investments 

21 and pension benefit plans. 

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

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

24 vacancy on the Commission shall be filled in the manner 

25 in which the original appointment was made and shall be 


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1 subject to any conditions that applied with respect to the 

2 original appointment. 

3 (f) ADMINISTRATIVE PROVISIONS.— 

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

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

6 and 

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

8 Chairman. 

9 (2) EXERCISE OF POWERS.— 

10 (A) IN GENERAL.—The Commission shall 

11 perform the functions and exercise the powers 

12 of the Commission on a majority vote of a 

13 quorum of the Commission. Three members of 

14 the Commission shall constitute a quorum for 

15 the transaction of business. 

16 (B) VACANCIES.—A vacancy on the Com17 mission shall not impair the authority of a 

18 quorum of the Commission to perform the func19 tions and exercise the powers of the Commis20 sion. 

21 (g) COMPENSATION.— 

22 (1) IN GENERAL.—Each member of the Com23 mission who is not an officer or employee of the 

24 Federal Government shall be compensated at the 

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


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1 Schedule for each day during which such member is 

2 engaged in performing a function of the Commis3 sion. 

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

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

6 expenses under subchapter I of chapter 57 of title 

7 5, United States Code, while traveling away from 

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

9 the performance of the duties of the Commission. 

10 (h) TERMINATION.—The Commission shall terminate 

11 90 days after the date of the submission of its report pur12 suant to subsection (b). 

Æ 


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