I 
109TH CONGRESS 
1ST SESSION H. R. 3435 
To amend title II of the Social Security Act to establish a Social Security 
Surplus Protection Account in the Federal Old-Age and Survivors Insur-
ance 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 
JULY 26, 2005 
Mrs. BLACKBURN 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 Fed-
eral Old-Age and Survivors Insurance Trust Fund to 
hold the Social Security surplus, to provide for suspen-
sion 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Savings for Seniors 
Act of 2005’’. 
SEC. 2. INTERIM PROTECTIONS FOR SOCIAL SECURITY 
TRUST FUND SURPLUS. 
(a) IN GENERAL.—Section 201(d) of the Social Secu-
rity 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’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(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 
each fiscal year after 2007, the Managing Trustee shall 
transfer to the Account, from amounts otherwise available 
in the Trust Fund, amounts equivalent to the social secu-
rity surplus for such fiscal year. Such amounts shall be 
transferred from time to time to the Account, such 
amounts to be determined on the basis of estimates 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-
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— 
‘‘(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 2007, 
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 result-
ing in the transfer of Trust Fund assets to the general 
fund of the Treasury. 
‘‘(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. SOCIAL SECURITY INVESTMENT COMMISSION. 
(a) ESTABLISHMENT.—There is established in the ex-
ecutive branch of the Government a Social Security Invest-
ment 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 
vehicles for investment of the Federal Old-Age and Sur-
vivors Insurance Trust Fund, other than investment in the 
form of obligations of the United States resulting in the 
transfer of Trust Fund assets to the general fund of the 
Treasury. Not later than October 1, 2007, the Commis-
sion shall submit a report to the President and to each 
House of the Congress setting forth its recommendations
for such vehicles for investment, together with proposals 
for such administrative and legislative changes as the 
Commission determines necessary to authorize and imple-
ment 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, 
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) DUTIES.—As soon as the Commission shall— 
(1) administer the program established under 
this part; 
(2) establish policies for the investment and 
management of the Savings Fund, including the 
Tier I Investment Fund and the Tier II Investment 
Fund, and amounts held under Tier III Investment 
Options, including policies applicable to the asset 
managers, recordkeepers, and custodians with re-
sponsibility for managing the investment of amounts 
credited to personal social security investment ac-
counts, and for the management and operation of 
personal social security savings annuities, which 
shall provide for— 
(A) prudent investments suitable for accu-
mulating funds for payment of retirement in-
come; 
(B) sound management practices; and 
(C) low administrative costs; 
(3) review the performance of investments made 
for the Tier I Investment Fund and the Tier II In-
vestment Fund;
(4) review the performance of investments made 
under Tier III Investment Options; 
(5) review the management and operation of 
personal social security savings annuities; 
(6) review and approve the budget of the Com-
mission; and 
(7) comply with the fiduciary requirements of 
part 4 of subtitle B of title I of the Employee Re-
tirement Income Security Act of 1974 (relating to fi-
duciary responsibility) in connection with any exer-
cise of discretion in connection with the assets of the 
Savings Fund. 
(g) 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-
tions and exercise the powers of the Commis-
sion. 
(h) 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. 
(i) TERMINATION.—The Commission shall terminate 
90 days after the date of the submission of its report pur-
suant to subsection (b). 
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