II
104TH CONGRESS
1ST SESSION
H. R. 2621
IN THE SENATE OF THE UNITED STATES
DECEMBER 15, 1995
Received
AN ACT
To enforce the public debt limit and to protect the social
security trust funds and other Federal trust funds and
accounts invested in public debt obligations.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. APPLICABILITY OF PUBLIC DEBT LIMIT TO
FEDERAL TRUST FUNDS AND OTHER FED-
ERAL ACCOUNTS.
(a) PROTECTION
OF FEDERAL FUNDS.—Notwith-
standing any other provision of law—
(1) no officer or employee of the United States
may—
(A) delay the deposit of any amount into
(or delay the credit of any amount to) any Fed-
eral fund or otherwise vary from the normal
terms, procedures, or timing for making such
deposits or credits, or
(B) refrain from the investment in public
debt obligations of amounts in any Federal
fund,
if a purpose of such action or inaction is to not in-
crease the amount of outstanding public debt obliga-
tions, and
(2) no officer or employee of the United States
may disinvest amounts in any Federal fund which
are invested in public debt obligations if a purpose
of the disinvestment is to reduce the amount of out-
standing public debt obligations.
(b) PROTECTION OF BENEFITS AND EXPENDITURES
FOR ADMINISTRATIVE EXPENSES.—
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(1) IN GENERAL.—Notwithstanding subsection
(a), during any period for which cash benefits or ad-
ministrative expenses would not otherwise be payable
from a covered benefits fund by reason of an inabil-
ity to issue further public debt obligations because
of the applicable public debt limit, public debt obli-
gations held by such covered benefits fund shall be
sold or redeemed only for the purpose of making
payment of such benefits or administrative expenses
and only to the extent cash assets of the covered
benefits fund are not available from month to month
for making payment of such benefits or administra-
tive expenses.
(2) ISSUANCE OF CORRESPONDING DEBT.—For
purposes of undertaking the sale or redemption of
public debt obligations held by a covered benefits
fund pursuant to paragraph (1), the Secretary of the
Treasury may issue corresponding public debt obli-
gations to the public, in order to obtain the cash
necessary for payment of benefits or administrative
expenses from such covered benefits fund, notwith-
standing the public debt limit.
(3) ADVANCE
NOTICE
OF
SALE
OR
REDEMP-
TION.—Not less than 3 days prior to the date on
which, by reason of the public debt limit, the Sec-
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retary of the Treasury expects to undertake a sale
or redemption authorized under paragraph (1), the
Secretary of the Treasury shall report to each House
of the Congress and to the Comptroller General of
the United States regarding the expected sale or re-
demption. Upon receipt of such report, the Comp-
troller General shall review the extent of compliance
with subsection (a) and paragraphs (1) and (2) of
this subsection and shall issue such findings and rec-
ommendations to each House of the Congress as the
Comptroller General considers necessary and appro-
priate.
(c) PUBLIC DEBT OBLIGATION.—For purposes of
this section, the term ‘‘public debt obligation’’ means any
obligation subject to the public debt limit established
under section 3101 of title 31, United States Code.
(d) FEDERAL FUND.—For purposes of this section,
the term ‘‘Federal fund’’ means any Federal trust fund
or Government account established pursuant to Federal
law to which the Secretary of the Treasury has issued or
is expressly authorized by law directly to issue obligations
under chapter 31 of title 31, United States Code, in re-
spect of public money, money otherwise required to be de-
posited in the Treasury, or amounts appropriated.
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(e) COVERED BENEFITS FUND.—For purposes of
subsection (b), the term ‘‘covered benefits fund’’ means
any Federal fund from which cash benefits are payable
by law in the form of retirement benefits, separation pay-
ments, life or disability insurance benefits, or dependent’s
or survivor’s benefits, including (but not limited to) the
following:
(1) the Federal Old-Age and Survivors Insur-
ance Trust Fund;
(2) the Federal Disability Insurance Trust
Fund;
(3) the Civil Service Retirement and Disability
Fund;
(4) the Government Securities Investment
Fund;
(5) the Department of Defense Military Retire-
ment Fund;
(6) the Unemployment Trust Fund;
(7) each of the railroad retirement funds and
accounts;
(8) the Department of Defense Education Ben-
efits Fund and the Post-Vietnam Era Veterans Edu-
cation Fund; and
(9) the Black Lung Disability Trust Fund.
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SEC. 2. CONFORMING AMENDMENT.
(a) IN GENERAL.—Subsections (j), (k), and (l) of
section 8348 of title 5, United States Code, and sub-
sections (g) and (h) of section 8438 of such title are
hereby repealed.
(b) RETENTION
OF
AUTHORITY
TO
RESTORE
TRUST FUNDS WITH RESPECT TO ACTIONS TAKEN BE-
FORE DATE OF ENACTMENT.—
(1) IN
GENERAL.—The repeals made by sub-
section (a) shall not apply to the restoration require-
ments imposed on the Secretary of the Treasury (or
the Executive Director referred to in section
8438(g)(5) of title 5, United States Code) with re-
spect to amounts attributable to actions taken under
subsection (j)(1) or (k) of section 8348, or section
8438(g)(1), of such title before the date of the en-
actment of this Act.
(2) RESTORATION REQUIREMENTS.—For purposes
of paragraph (1), the term ‘‘restoration require-
ments’’ means the requirements imposed by—
(A) paragraphs (2), (3), and (4) of sub-
section (j), and subsection (l)(1), of section
8348 of such title, and
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(B) paragraphs (2), (3), (4), and (5) of sub-
section (g), and subsection (h)(1), of section
8438 of such title.
Passed the House of Representatives December 14,
1995.
Attest:
ROBIN H. CARLE,
Clerk.