I 
117TH CONGRESS 
1ST SESSION H. R. 1269 
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 enact-
ment 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 Commis-
sion to make recommendations for alternative forms of investment of 
the Social Security and Medicare surpluses. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 23, 2021 
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 In-
surance 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 estab-
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surance, the assets of the Federal Hospital Insur-
ance Trust Fund will be exhausted in 2026. 
(2) The Trustees of these trust funds encourage 
lawmakers to address the long-term financial chal-
lenges of the Social Security and Medicare programs 
as soon as possible. 
(3) Social Security and Medicare are meant to 
provide a secure and stable base so that older Amer-
icans can live in dignity. 
(4) Protecting the future surpluses of these 
trust funds can only occur when meaningful reform 
has been enacted by Congress. Any path to solvency 
must include the protection of future surpluses. 
SEC. 2. INTERIM PROTECTIONS FOR SOCIAL SECURITY 
TRUST FUND SURPLUS. 
Section 201(d) of the Social Security Act (42 U.S.C. 
402(d)) is amended— 
(1) by striking ‘‘It shall be the duty’’ and in-
serting ‘‘(1) Except as provided in paragraph (2), it 
shall be the duty’’; 
(2) by striking ‘‘(1) on original issue at the 
issue price, or (2)’’ and inserting ‘‘(A) on original 
issue at the issue price, or (B)’’; and 
(3) by adding at the end the following new 
paragraph: 
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‘‘(2)(A) There is established in the Federal Old-Age 
and Survivors Insurance Trust Fund a Social Security 
Surplus Protection Account. As soon as practicable after 
the end of each fiscal year after fiscal year 2022, the Man-
aging Trustee shall transfer to the Account, from amounts 
otherwise available in the Trust Fund, amounts equivalent 
to the social security surplus for such fiscal year. Such 
amounts shall be transferred from time to time to the Ac-
count, such amounts to be determined on the basis of esti-
mates by the Managing Trustee, and proper adjustments 
shall be made in amounts subsequently transferred to the 
extent prior estimates were in excess of or were less than 
the correct amount. 
‘‘(B) For purposes of subparagraph (A), the term ‘so-
cial security surplus’ means, for any fiscal year, the excess, 
if any, of— 
‘‘(i) the sum of— 
‘‘(I) the taxes imposed for such fiscal year 
by chapter 21 (other than sections 3101(b) and 
3111(b)) of the Internal Revenue Code of 1986 
with respect to wages (as defined in section 
3121 of such Code) reported to the Secretary of 
the Treasury or his delegates pursuant to sub-
title F of such Code, as determined by the Sec-
retary of the Treasury by applying the applica-
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ble rates of tax under such chapter 21 (other 
than sections 3101(b) and 3111(b)) to such 
wages, less the amounts specified in clause (1) 
of subsection (b) of this section for such fiscal 
year; 
‘‘(II) the taxes imposed by chapter 2 
(other than section 1401(b)) of the Internal 
Revenue Code of 1986 with respect to self-em-
ployment income (as defined in section 1402 of 
such Code) reported to the Secretary of the 
Treasury on tax returns under subtitle F of 
such Code, as determined by the Secretary of 
the Treasury by applying the applicable rate of 
tax under such chapter (other than section 
1401(b)) to such self-employment income, less 
the amounts specified in clause (2) of sub-
section (b) of this section for such fiscal year; 
and 
‘‘(III) the amount equivalent to the aggre-
gate increase in tax liabilities under chapter 1 
of the Internal Revenue Code of 1986 which is 
attributable to the application of sections 86 
and 871(a)(3) of such Code to payments from 
the Trust Fund; over 
‘‘(ii) the sum of— 
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‘‘(I) benefits paid from the Trust Fund 
during the fiscal year; and 
‘‘(II) amounts authorized to be made avail-
able from the Trust Fund under subsection (g) 
of this section which are paid from the Trust 
Fund during such fiscal year. 
‘‘(C) Notwithstanding paragraph (1), the balance in 
the Account shall not be available for investment by the 
Managing Trustee. 
‘‘(D)(i) The preceding provisions of this paragraph 
shall not apply with respect to fiscal years commencing 
with or after the first fiscal year, after fiscal year 2022, 
for which a provision of Federal law takes effect and au-
thorizes, for amounts in the Trust Fund, an investment 
vehicle other than obligations of the United States. 
‘‘(ii) A provision of Federal law shall be deemed to 
meet the requirements of clause (i) if such provision in-
cludes the following: ‘This Act shall be considered to be 
a provision of Federal law meeting the requirements of 
section 201(d)(2)(D)(i) of the Social Security Act.’.’’. 
SEC. 3. INTERIM PROTECTIONS FOR MEDICARE PART A 
TRUST FUND SURPLUS. 
(a) IN GENERAL.—Section 1817(c) of the Social Se-
curity Act (42 U.S.C. 1395i(c)) is amended— 
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(1) by striking ‘‘It shall be the duty’’ and in-
serting ‘‘(1) Except as provided in paragraph (2), it 
shall be the duty’’; 
(2) by striking ‘‘(1) on original issue at the 
issue price, or (2)’’ and inserting ‘‘(A) on original 
issue at the issue price, or (B)’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2)(A) There is established in the Federal Hospital 
Insurance Trust Fund a Medicare Surplus Protection Ac-
count (in this paragraph referred to as the ‘Account’). As 
soon as practicable after the end of each fiscal year after 
fiscal year 2022, the Managing Trustee shall transfer to 
the Account, from amounts otherwise available in the 
Trust Fund, amounts equivalent to the Medicare part A 
surplus for such fiscal year. Such amounts shall be trans-
ferred from time to time to the Account, such amounts 
to be determined on the basis of estimates by the Man-
aging Trustee, and proper adjustments shall be made in 
amounts subsequently transferred to the extent prior esti-
mates were in excess of or were less than the correct 
amount. 
‘‘(B) For purposes of subparagraph (A), the term 
‘Medicare part A surplus’ means, for any fiscal year, the 
excess, if any, of— 
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‘‘(i) the sum of— 
‘‘(I) the taxes imposed for such fiscal year 
by sections 3101(b) and 3111(b) of the Internal 
Revenue Code of 1986 with respect to wages 
(as defined in section 3121 of such Code) re-
ported to the Secretary of the Treasury or his 
delegates pursuant to subtitle F of such Code, 
as determined by the Secretary of the Treasury 
by applying the applicable rates of tax under 
such sections to such wages; and 
‘‘(II) the taxes imposed by section 1401(b) 
of the Internal Revenue Code of 1986 with re-
spect to self-employment income (as defined in 
section 1402 of such Code) reported to the Sec-
retary of the Treasury on tax returns under 
subtitle F of such Code, as determined by the 
Secretary of the Treasury by applying the ap-
plicable rate of tax under such section 1401(b) 
to such self-employment income; over 
‘‘(ii) the sum of— 
‘‘(I) benefits paid from the Trust Fund 
during the fiscal year; and 
‘‘(II) amounts authorized to be made avail-
able from the Trust Fund under subsection (f) 
of this section (or section 201(g)) which are 
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paid from the Trust Fund during such fiscal 
year. 
‘‘(C) Notwithstanding paragraph (1), the balance in 
the Account shall not be available for investment by the 
Managing Trustee. 
‘‘(D)(i) The preceding provisions of this paragraph 
shall not apply with respect to fiscal years commencing 
with or after the first fiscal year, after fiscal year 2022, 
for which a provision of Federal law takes effect and au-
thorizes, for amounts in the Trust Fund, an investment 
vehicle other than obligations of the United States. 
‘‘(ii) A provision of Federal law shall be deemed to 
meet the requirements of clause (i) if such provision in-
cludes the following: ‘This Act shall be considered to be 
a provision of Federal law meeting the requirements of 
section 1817(c)(2)(D)(i) of the Social Security Act.’.’’. 
SEC. 4. SOCIAL SECURITY AND MEDICARE PART A INVEST-
MENT COMMISSION. 
(a) ESTABLISHMENT.—There is established in the ex-
ecutive branch of the Government a Social Security and 
Medicare Part A Investment Commission (in this section 
referred to as the ‘‘Commission’’). 
(b) STUDY AND REPORT.—As soon as practicable 
after the date of the enactment of this Act, the Commis-
sion shall conduct a study to ascertain the most effective 
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vehicles for investment of the Federal Old-Age and Sur-
vivors Insurance Trust Fund and the Federal Hospital In-
surance Trust Fund, other than investment in the form 
of obligations of the United States. Not later than October 
1, 2022, the Commission shall submit a report to the 
President and to each House of the Congress setting forth 
its recommendations for such vehicles for investment, to-
gether with proposals for such administrative and legisla-
tive changes as the Commission determines necessary to 
authorize and implement such recommendations. 
(c) COMPOSITION.—The Commission shall be com-
posed of— 
(1) 3 members appointed by the President, of 
whom 1 shall be designated by the President as 
Chairman; 
(2) 2 members appointed by the Speaker of the 
House of Representatives; 
(3) 1 member appointed by the minority leader 
of the House of Representatives; 
(4) 2 members appointed by the majority leader 
of the Senate; and 
(5) 1 member appointed by the minority leader 
of the Senate. 
(d) MEMBERSHIP REQUIREMENTS.—Members of the 
Commission shall have substantial experience, training, 
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and expertise in the management of financial investments 
and pension benefit plans. 
(e) LENGTH OF APPOINTMENTS.—Members of the 
Commission shall serve for the life of the Commission. A 
vacancy on the Commission shall be filled in the manner 
in which the original appointment was made and shall be 
subject to any conditions that applied with respect to the 
original appointment. 
(f) ADMINISTRATIVE PROVISIONS.— 
(1) MEETINGS.—The Commission shall meet— 
(A) not less than once during each month; 
and 
(B) at additional times at the call of the 
Chairman. 
(2) EXERCISE OF POWERS.— 
(A) IN GENERAL.—The Commission shall 
perform the functions and exercise the powers 
of the Commission on a majority vote of a 
quorum of the Commission. Three members of 
the Commission shall constitute a quorum for 
the transaction of business. 
(B) VACANCIES.—A vacancy on the Com-
mission shall not impair the authority of a 
quorum of the Commission to perform the func-
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tions and exercise the powers of the Commis-
sion. 
(g) COMPENSATION.— 
(1) IN GENERAL.—Each member of the Com-
mission who is not an officer or employee 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 
engaged in performing a function of the Commis-
sion. 
(2) EXPENSES.—A member of the Commission 
shall be paid travel, per diem, and other necessary 
expenses under subchapter I of chapter 57 of title 
5, United States Code, while traveling away from 
such member’s home or regular place of business in 
the performance of the duties of the Commission. 
(h) TERMINATION.—The Commission shall terminate 
90 days after the date of the submission of its report pur-
suant to subsection (b). 
Æ 
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