‘‘(E) VACANCIES.—A vacancy on the 
Board shall be filled in the manner in which the 
original appointment was made and shall be 
subject to any conditions which applied with re-
spect to the original appointment. An individual 
chosen to fill a vacancy shall be appointed for 
the unexpired term of the member replaced. 
The term of any member shall not expire before 
the date on which the member’s successor takes 
office. 
‘‘(2) POWERS AND DUTIES OF THE BOARD.— 
‘‘(A) IN GENERAL.—The Board shall have 
powers and duties solely as provided in this 
subsection. The Board shall by regulation pro-
vide for investment of amounts in the Federal 
Old-Age and Survivors Insurance Trust Fund 
and the Federal Disability Insurance Trust 
Fund made available to the Board under sub-
section (d)(2)(A) for purposes of investment, in-
cluding policies to be followed in allocating in-
vestments among different forms of investment 
and meeting the requirements of subparagraph 
(F) of this paragraph and of paragraph (4). 
‘‘(B) BUDGETARY
REQUIREMENTS.—The 
Board shall prepare and submit to the Presi-
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dent and to the appropriate committees of Con-
gress an annual budget of the expenses and 
other items relating to the Board which shall be 
included as a separate item in the budget re-
quired to be transmitted to the Congress under 
section 1105 of title 31, United States Code. 
The Board shall provide for low administrative 
costs such that, to the extent practicable, over-
all administrative costs of the Board in connec-
tion with investments made pursuant to sub-
paragraph (A) do not exceed 30 basis points 
per year in relation to assets under manage-
ment by the Board. 
‘‘(C) ADDITIONAL
AUTHORITIES
OF
THE 
BOARD.—The Board may— 
‘‘(i) adopt, alter, and use a seal; 
‘‘(ii) establish policies under this sub-
section with which the Commissioner shall 
comply; and 
‘‘(iii) appoint and remove the Execu-
tive Director, as provided in paragraph (2). 
‘‘(D) MEETINGS
OF
THE
BOARD.—The 
Board shall meet at the call of the Chairman or 
upon the request of a quorum of the Board. 
The Board shall perform the functions and ex-
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ercise the powers of the Board on a majority 
vote of a quorum of the Board. Four members 
of the Board shall constitute a quorum for the 
transaction of business. 
‘‘(E) COMPENSATION
OF
BOARD
MEM-
BERS.— 
‘‘(i) IN GENERAL.—Each member of 
the Board who is not an officer or em-
ployee of the Federal Government shall be 
compensated at the daily rate of basic pay 
for level IV of the Executive Schedule for 
each day during which such member is en-
gaged in performing a function of the 
Board. Any member who is such an officer 
or employee shall not suffer any loss of pay 
or deduction from annual leave on the 
basis of any time used by such member in 
performing such a function. 
‘‘(ii) TRAVEL, PER
DIEM, AND
EX-
PENSES.—A member of the Board shall be 
paid travel, per diem, and other necessary 
expenses under subchapter I of chapter 57 
of title 5, United States Code, while trav-
eling away from such member’s home or 
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regular place of business in the perform-
ance of the duties of the Board. 
‘‘(F) STANDARD FOR BOARD’S DISCHARGE 
OF
RESPONSIBILITIES.—The members of the 
Board shall discharge their responsibilities sole-
ly in the interest of the Federal Old-Age and 
Survivors Insurance Trust Fund and the Fed-
eral Disability Insurance Trust Fund. 
‘‘(G) ANNUAL REPORT.—The Board shall 
submit an annual report to the President, to 
each House of the Congress, and to the Board 
of Trustees of the Federal Old-Age and Sur-
vivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund regarding the 
exercise of its duties under this subsection. 
Such report shall include a comparison, for the 
year covered by the report, of the rate of return 
on investments of assets of the Trust Funds 
made pursuant to subsection (d)(2) to the rate 
of return on investments of assets of the Trust 
Funds otherwise made under subsection (d). 
‘‘(H) PUBLIC ACCOUNTANT.— 
‘‘(i) DEFINITION.—For purposes of 
this subparagraph, the term ‘qualified pub-
lic accountant’ shall have the same mean-
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ing as provided in section 103(a)(3)(D) of 
the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1023(a)(3)(D)). 
‘‘(ii) ENGAGEMENT.—The Executive 
Director, in consultation with the Board, 
shall annually engage an independent 
qualified public accountant, who shall con-
duct an examination of all records main-
tained in the administration of the require-
ments of this subsection that the public ac-
countant considers necessary. 
‘‘(iii) DUTIES.—The public account-
ant conducting an examination under 
clause (ii) shall determine whether the 
records referred to in such clause have 
been maintained in conformity with gen-
erally accepted accounting principles. The 
public accountant shall transmit to the 
Board a report on his examination. 
‘‘(iv) RELIANCE ON CERTIFIED ACTU-
ARIAL MATTERS.—In making a determina-
tion under clause (iii), a public accountant 
may rely on the correctness of any actu-
arial matter certified by an enrolled actu-
ary if the public accountant states his reli-
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ance in the report transmitted to the 
Board under such clause. 
‘‘(3) EXECUTIVE DIRECTOR.— 
‘‘(A) APPOINTMENT AND REMOVAL.—The 
Board shall appoint, without regard to the pro-
visions of law governing appointments in the 
competitive service, an Executive Director by 
action agreed to by a majority of the members 
of the Board. The Executive Director shall have 
substantial experience, training, and expertise 
in the management of financial investments and 
pension benefit plans. The Board may, with the 
concurrence of 4 members of the Board, remove 
the Executive Director from office for good 
cause shown. 
‘‘(B) POWERS AND DUTIES OF EXECUTIVE 
DIRECTOR.—The Executive Director shall— 
‘‘(i) carry out the policies established 
by the Board, 
‘‘(ii) administer the provisions of this 
subsection in accordance with the policies 
of the Board, and 
‘‘(iii) meet from time to time with the 
Board upon request of the Board. 
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‘‘(C) ADMINISTRATIVE
AUTHORITIES
OF 
EXECUTIVE DIRECTOR.—The Executive Direc-
tor may— 
‘‘(i) appoint such personnel as may be 
necessary to carry out the provisions of 
this subsection, 
‘‘(ii) subject to approval by the Board, 
procure the services of experts and consult-
ants under section 3109 of title 5, United 
States Code, 
‘‘(iii) secure directly from any agency 
or instrumentality of the Federal Govern-
ment on a reimbursable basis any informa-
tion which, in the judgment of the Execu-
tive Director, is necessary to carry out the 
provisions of this subsection and the poli-
cies of the Board, and which shall be pro-
vided by such agency or instrumentality 
upon the request of the Executive Director, 
‘‘(iv) pay the compensation, per diem, 
and travel expenses of individuals ap-
pointed under clauses (i), (ii), and (v) of 
this subparagraph, subject to such limits 
as may be established by the Board, 
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‘‘(v) accept and use the services of in-
dividuals employed intermittently in the 
Government service and reimburse such in-
dividuals for travel expenses, as authorized 
by section 5703 of title 5, United States 
Code, including per diem as authorized by 
section 5702 of such title, and 
‘‘(vi) except as otherwise expressly 
prohibited by law or the policies of the 
Board, delegate any of the Executive Di-
rector’s functions to such employees under 
the Board as the Executive Director may 
designate and authorize such successive re-
delegations of such functions to such em-
ployees under the Board as the Executive 
Director may consider to be necessary or 
appropriate. 
‘‘(4) FIDUCIARY RESPONSIBILITIES.— 
‘‘(A) IN GENERAL.—Rules similar to the 
provisions of section 8477 of title 5, United 
States Code (relating to fiduciary responsibil-
ities; liability and penalties) shall apply in con-
nection with assets placed under the control of 
the Board for purposes of investment, in ac-
cordance with regulations which shall be issued 
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by the Board. The Board shall issue regulations 
with respect to the investigative authority of ap-
propriate Federal agencies in cases involving 
such assets. 
‘‘(B) EXCULPATORY
PROVISIONS
VOID-
ED.—Any provision in an agreement or instru-
ment which purports to relieve a fiduciary from 
responsibility or liability for any responsibility, 
obligation, or duty under this subsection shall 
be void. 
‘‘(5) CIVIL ACTIONS BY BOARD.—If any person 
fails to meet any requirement of this subsection or 
regulations prescribed thereunder or of any contract 
entered into under this subsection, the Board may 
bring a civil action in any district court of the 
United States within the jurisdiction of which such 
person’s assets are located or in which such person 
resides or is found, without regard to the amount in 
controversy, for appropriate relief to redress the vio-
lation or enforce the requirement, and process in 
such an action may be served in any district. 
‘‘(6) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the 
Board, for fiscal years beginning on or after October 
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1, 2008, such sums as are necessary to carry out the 
Board’s duties under this subsection.’’. 
SEC. 4. PROTECTION OF SOCIAL SECURITY SURPLUSES. 
(a) PROTECTION
OF
SOCIAL
SECURITY
SUR-
PLUSES.—Title III of the Congressional Budget Act of 
1974 is amended by adding at the end the following new 
section: 
‘‘SAFEGUARDING SOCIAL SECURITY SURPLUSES 
‘‘SEC. 316. (a) IN GENERAL.— 
‘‘(1) CONCURRENT
RESOLUTIONS
ON
THE 
BUDGET.—It shall not be in order in the House of 
Representatives or the Senate to consider any con-
current resolution on the budget, or an amendment 
thereto or conference report thereon, that would set 
forth a deficit for any fiscal year for which there is 
a projected net surplus in the Federal Old-Age and 
Survivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund. 
‘‘(2) SPENDING
AND
TAX
LEGISLATION.—It 
shall not be in order in the House of Representatives 
or the Senate to consider any bill, joint resolution, 
amendment, motion, or conference report if— 
‘‘(A) the enactment of that bill or resolu-
tion, as reported; 
‘‘(B) the adoption and enactment of that 
amendment; or 
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‘‘(C) the enactment of that bill or resolu-
tion in the form recommended in that con-
ference report, 
would cause a deficit for any fiscal year for which 
there is a projected net surplus in the Federal Old- 
Age and Survivors Insurance Trust Fund and the 
Federal Disability Insurance Trust Fund. 
‘‘(b) ENFORCEMENT.— 
‘‘(1) BUDGETARY LEVELS WITH RESPECT TO 
CONCURRENT RESOLUTIONS ON THE BUDGET.—For 
purposes of enforcing any point of order under sub-
section (a)(1), the extent to which there is a deficit 
for any fiscal year shall be determined on the basis 
of budgetary aggregates set forth in the later of the 
concurrent resolution on the budget, as reported, or 
in the conference report on the concurrent resolution 
on the budget, adjusted to the maximum extent al-
lowable under all procedures that allow budgetary 
aggregates to be adjusted for legislation that would 
cause a decrease in any surplus or an increase in 
any deficit for any fiscal year covered by the concur-
rent resolution on the budget (other than procedures 
described in paragraph (2)(A)(ii)). 
‘‘(2) CURRENT
LEVELS
WITH
RESPECT
TO 
SPENDING AND TAX LEGISLATION.— 
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‘‘(A) IN GENERAL.—For purposes of en-
forcing subsection (a)(2), the extent to which 
there is a deficit for any fiscal year shall be— 
‘‘(i) calculated using the following as-
sumptions— 
‘‘(I) direct spending and revenue 
levels at the baseline levels underlying 
the most recently agreed to concur-
rent resolution on the budget; and 
‘‘(II) for the budget year, discre-
tionary spending levels at current law 
levels and, for outyears, discretionary 
spending levels at the baseline levels 
underlying the most recently agreed to 
concurrent resolution on the budget; 
and 
‘‘(ii) adjusted for changes in the sur-
plus or deficit levels set forth in the most 
recently agreed to concurrent resolution on 
the budget pursuant to procedures in such 
resolution that authorize adjustments in 
budgetary aggregates for updated economic 
and technical assumptions in the mid-ses-
sion report of the Director of the Congres-
sional Budget Office. 
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Such revisions shall be included in the first cur-
rent level report on the congressional budget 
submitted for publication in the Congressional 
Record after the release of such mid-session re-
port. 
‘‘(c) WAIVER AND APPEAL.—Subsection (a) may be 
waived or suspended in the Senate only by an affirmative 
vote of three-fifths of the Members, duly chosen and 
sworn. An affirmative vote of three-fifths of the Members 
of the Senate, duly chosen and sworn, shall be required 
in the Senate to sustain an appeal of the ruling of the 
Chair on a point of order raised under this section.’’. 
(b) CONFORMING AMENDMENT.—The item relating 
to section 316 in the table of contents set forth in section 
1(b) of the Congressional Budget and Impoundment Con-
trol Act of 1974 is amended to read as follows: 
‘‘Sec. 316. Safeguarding social security surpluses.’’. 
Æ 
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