S. 4091

One Hundred Ninth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the third day of January, two thousand and six

An Act

To provide authority for restoration of the Social Security Trust Funds from the

effects of a clerical error, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Social Security Trust Funds

Restoration Act of 2006’’.

SEC. 2. DEFINITIONS.

For purposes of this Act—

(1) CLERICAL ERROR.—The term ‘‘clerical error’’ means the

bookkeeping errors at the Social Security Administration that

resulted in the overpayment of amounts transferred from the

Trust Funds to the general fund of the Treasury during the

period commencing with 1999 and ending with 2005 as transfers, under the voluntary withholding program authorized by

section 3402(p) of the Internal Revenue Code of 1986, of anticipated taxes on benefit payments under title II of the Social

Security Act.

(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of the Treasury.

(3) TRUST FUNDS.—The term ‘‘Trust Funds’’ means the

Federal Old-Age and Survivors Insurance Trust Fund and the

Federal Disability Insurance Trust Fund.

SEC. 3. RESTORATION OF TRUST FUNDS.

(a) APPROPRIATION.—There is hereby appropriated to each of

the Trust Funds, out of any money in the Treasury not otherwise

appropriated, an amount determined by the Secretary, in consultation with the Commissioner of Social Security, to be equal, to

the extent practicable in the judgment of the Secretary, to the

difference between—

(1) the sum of—

(A) the amounts that the Secretary determines, in

consultation with the Commissioner of Social Security, were

overpaid from such Trust Fund to the general fund of

the Treasury by reason of the clerical error, and

(B) the amount that the Secretary determines, in consultation with the Commissioner of Social Security, to be

equal, to the extent practicable in the judgment of the

Secretary, to the interest income that would have been

payable to such Trust Fund pursuant to section 201(d)

of the Social Security Act on obligations issued under
S. 4091—2

chapter 31 of title 31, United States Code, that was not

paid by reason of the clerical error, and

(2) the sum of— (A) the amounts that are refunded to such Trust Fund

as overpayments by reason of the clerical error to the

extent not limited by periods of limitation under applicable

provisions of the Internal Revenue Code of 1986, and

(B) the interest that is paid to such Trust Fund on

the overpayments resulting from the clerical error to the

extent allowed under applicable provisions of such Code.

(b) INVESTMENT.—The Secretary shall invest the amounts

appropriated to each of the Trust Funds under subsection (a) in

accordance with the currently applicable investment policy for such

Trust Fund.

SEC. 4. TIMING.

(a) ACTIONS BY THE SECRETARY.—The Secretary shall take such

actions as are necessary to accomplish the restoration described

in section 3 not later than 120 days after the date of the enactment

of this Act.

(b) ACTION BY THE COMMISSIONER.—The Commissioner of Social

Security shall cooperate with the Secretary to the extent necessary

to enable the Secretary to meet the requirements of subsection

(a).

SEC. 5. CONGRESSIONAL NOTIFICATION.

Not later than 30 days after the Secretary takes the last

action necessary to accomplish the restoration described in section

3, the Secretary shall notify each House of the Congress in writing

of the actions so taken.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.