II 

109TH CONGRESS 

2D SESSION S. 4091 

To provide authority for restoration of the Social Security Trust Funds 

from the effects of a clerical error, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 6, 2006 

Mr. GRASSLEY (for himself and Mr. BAUCUS) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To provide authority for restoration of the Social Security 

Trust Funds from the effects of a clerical error, and 

for other purposes. 

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 ‘‘Social Security Trust 

5 Funds Restoration Act of 2006’’. 

6 SEC. 2. DEFINITIONS. 

7 For purposes of this Act— 

8 (1) CLERICAL ERROR.—The term ‘‘clerical 

9 error’’ means the bookkeeping errors at the Social 

10 Security Administration that resulted in the overVerDate Aug 31 2005 03:49 Dec 09, 2006 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4091.IS S4091

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1 payment of amounts transferred from the Trust 

2 Funds to the general fund of the Treasury during 

3 the period commencing with 1999 and ending with 

4 2005 as transfers, under the voluntary withholding 

5 program authorized by section 3402(p) of the Inter6 nal Revenue Code of 1986, of anticipated taxes on 

7 benefit payments under title II of the Social Security 

8 Act. 

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

10 the Secretary of the Treasury. 

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

12 means the Federal Old-Age and Survivors Insurance 

13 Trust Fund and the Federal Disability Insurance 

14 Trust Fund. 

15 SEC. 3. RESTORATION OF TRUST FUNDS. 

16 (a) APPROPRIATION.—There is hereby appropriated 

17 to each of the Trust Funds, out of any money in the 

18 Treasury not otherwise appropriated, an amount deter19 mined by the Secretary, in consultation with the Commis20 sioner of Social Security, to be equal, to the extent prac21 ticable in the judgment of the Secretary, to the difference 

22 between— 

23 (1) the sum of— 

24 (A) the amounts that the Secretary deter25 mines, in consultation with the Commissioner of 


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1 Social Security, were overpaid from such Trust 

2 Fund to the general fund of the Treasury by 

3 reason of the clerical error, and 

4 (B) the amount that the Secretary deter5 mines, in consultation with the Commissioner of 

6 Social Security, to be equal, to the extent prac7 ticable in the judgment of the Secretary, to the 

8 interest income that would have been payable to 

9 such Trust Fund pursuant to section 201(d) of 

10 the Social Security Act on obligations issued 

11 under chapter 31 of title 31, United States 

12 Code, that was not paid by reason of the cler13 ical error, and 

14 (2) the sum of— 

15 (A) the amounts that are refunded to such 

16 Trust Fund as overpayments by reason of the 

17 clerical error to the extent not limited by peri18 ods of limitation under applicable provisions of 

19 the Internal Revenue Code of 1986, and 

20 (B) the interest that is paid to such Trust 

21 Fund on the overpayments resulting from the 

22 clerical error to the extent allowed under appli23 cable provisions of such Code. 

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

25 amounts appropriated to each of the Trust Funds under 


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1 subsection (a) in accordance with the currently applicable 

2 investment policy for such Trust Fund. 

3 SEC. 4. TIMING. 

4 (a) ACTIONS BY THE SECRETARY.—The Secretary 

5 shall take such actions as are necessary to accomplish the 

6 restoration described in section 3 not later than 120 days 

7 after the date of the enactment of this Act. 

8 (b) ACTION BY THE COMMISSIONER.—The Commis9 sioner of Social Security shall cooperate with the Secretary 

10 to the extent necessary to enable the Secretary to meet 

11 the requirements of subsection (a). 

12 SEC. 5. CONGRESSIONAL NOTIFICATION. 

13 Not later than 30 days after the Secretary takes the 

14 last action necessary to accomplish the restoration de15 scribed in section 3, the Secretary shall notify each House 

16 of the Congress in writing of the actions so taken. 

Æ 


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