‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘social security benefit’ means any 
amount received by the taxpayer— 
‘‘(A) by reason of entitlement to— 
‘‘(i) a monthly benefit under title II of 
the Social Security Act, 
‘‘(ii) a tier 1 railroad retirement ben-
efit, or 
‘‘(iii) a payment under section 258 of 
the Social Security Act (relating to guar-
antee of promised Social Security benefits), 
or 
‘‘(B) as a payment from a personal social 
security savings account or a personal social se-
curity savings annuity under section 257 of the 
Social Security Act.’’. 
(1) CLERICAL
AMENDMENT.—The table of 
parts for subchapter F of chapter 1 of such Code is 
amended by adding after the item relating to part 
VIII the following new item: 
‘‘PART IX. PERSONAL SOCIAL SECURITY SAVINGS PROGRAM.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
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SEC. 5. REIMBURSEMENT OF SPENDING REDUCTION AC-
COUNT FROM SAVINGS RESULTING FROM 
PERSONAL SOCIAL SECURITY SAVINGS PRO-
GRAM. 
Section 201 of the Social Security Act (42 U.S.C. 
401) is amended by adding at the end the following new 
subsection: 
‘‘(o)(1) At the end of any reimbursement year, the 
Managing Trustee shall transfer from the Federal Old- 
Age and Survivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund (hereinafter in this sub-
section referred to as the ‘Trust Funds’) to the Spending 
Reduction Account of the Treasury, in amounts deter-
mined appropriate by the Managing Trustee in relation 
to each of the Trust Funds, such sums as are necessary 
to reimburse the Spending Reduction Account an amount 
equal to the reimbursement amount for such year. 
‘‘(2) For purposes of this subsection— 
‘‘(A) The term ‘reimbursement year’ means a 
year for which, as estimated by the Managing Trust-
ee, there is a Savings Program excess balance in the 
Trust Funds at the end of such year. In determining 
the amount of any excess under this subparagraph, 
the Managing Trustee shall disregard any excess in 
the Trust Funds which would be attributable to the 
operation of such Trust Funds if this Act had not 
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been enacted. The estimation made pursuant to this 
subparagraph for a reimbursement year shall be 
made not later than November 1 of such reimburse-
ment year. 
‘‘(B) The term ‘Savings Program excess bal-
ance’ for a year means an amount by which the total 
balance in the Trust Funds at the end of such year 
exceeds (before the application of this subsection) 
100 percent of the total amount of benefits to be 
payable from the Trust Funds for the succeeding 
year. In determining the amount of any excess under 
this subparagraph, the Managing Trustee shall treat 
as excess in the Trust Funds only the amount by 
which the excess is greater than the amount which 
would be the excess in the Trust Funds if the Save 
Social Security Act had not been enacted. 
‘‘(C) The term ‘reimbursement amount’ for a 
reimbursement year means the lesser of— 
‘‘(i) the total amount of payments made 
during such year and prior years from the 
Spending Reduction Account of the Treasury 
under sections 254 and 258 for which reim-
bursement has not been made under paragraph 
(1), including interest at a rate equal to the 
rate applicable from time to time for obligations 
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issued to the Trust Funds under subsection (d), 
or 
‘‘(ii) the Savings Program excess balance 
for the reimbursement year. 
‘‘(3) The total amount transferred under paragraph 
(1) as the reimbursement amount for any reimbursement 
year shall be available, until expended— 
‘‘(A) first, for reimbursement of the amount of 
payments made under section 254 during the reim-
bursement year, 
‘‘(B) second, for reimbursement of the amount 
of payments made under section 258 during the re-
imbursement year, 
‘‘(C) third, for reimbursement of any unreim-
bursed amount of payments made under section 254 
during prior years, together with interest accrued on 
such amount, and 
‘‘(D) finally, for reimbursement of any unreim-
bursed amount of payments made under section 258 
during prior years, together with interest accrued on 
such amount.’’. 
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SEC. 6. FUNDING OF PERSONAL SOCIAL SECURITY SAVINGS 
PROGRAM FROM CREDITS FOR REDUCTIONS 
IN FEDERAL SPENDING. 
(a) SPENDING REDUCTION ACCOUNT.—There is es-
tablished in the Treasury of the United States a Personal 
Social Security Savings Program Spending Reduction Ac-
count (hereafter in this section referred to as the ‘‘Spend-
ing Reduction Account’’. 
(b) EXPENDITURES
FROM
GENERAL
FUND
OF 
TREASURY LIMITED TO AMOUNTS CREDITED TO SPEND-
ING REDUCTION ACCOUNT.— 
(1) IN GENERAL.—Amounts which, but for this 
section, would otherwise be payable from the general 
fund of the Treasury to carry out section 254(a)(2) 
and 258(a) of the Social Security Act (as added by 
this Act) shall be payable only from the Spending 
Reduction Account and only to the extent of the 
available balance in such Account, as provided in 
this section. 
(2) CREDITING TO SPENDING REDUCTION AC-
COUNT OF AMOUNTS SAVED FROM PROGRAM REDUC-
TIONS.— 
(A) IN GENERAL.—From time to time dur-
ing each fiscal year, the Secretary of the Treas-
ury shall credit to the Spending Reduction Ac-
count the amount of savings to the Treasury 
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for such fiscal year derived (as determined by 
such Secretary in consultation with the Director 
of Office of Management and Budget) from leg-
islation providing for the reduction or termi-
nation of Federal programs which were in effect 
on the date of the enactment of this Act. To the 
extent that any such legislation provides for 
savings with respect to multiple fiscal years, the 
Secretary of the Treasury shall provide for 
crediting to the Spending Reduction Account 
for each such fiscal year of the amount of sav-
ings properly attributable to such fiscal year 
pursuant to such legislation. 
(B) ANNUAL
REPORT
OF
AMOUNTS
IN 
FUND NECESSARY FOR FULL FUNDING OF PAY-
MENTS.—Not later than April 15 preceding 
each fiscal year beginning on or after October 
1, 2012, the Director of the Office of Manage-
ment and Budget— 
(i) shall, in consultation with the Per-
sonal Social Security Savings Board, re-
port to each House of the Congress the 
amount determined by the Board, based on 
reasonable projections, as necessary to pro-
vide for timely payment in full of amounts 
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otherwise payable, but for this section, 
from the Spending Reduction Account for 
such fiscal year, and 
(ii) shall include in such report rec-
ommendations for reductions or termi-
nations of Federal programs in effect on 
the date of the enactment of this Act nec-
essary to provide for savings sufficient to 
provide for crediting of funds to the 
Spending Reduction Account sufficient to 
provide 
for 
payments 
under 
sections 
254(a)(2) and 258(a) of the Social Secu-
rity Act. 
(3) REDUCTION IN PAYMENTS AS NECESSARY 
COMMENSURATE WITH EXTENT OF REDUCTIONS IN 
OTHER PROGRAMS.— 
(A) IN GENERAL.—The total amount pay-
able under sections 254(a)(2) and 258(a) of the 
Social Security Act for any fiscal year shall be 
payable only to the extent of the total amount 
that the Director of the Office of Management 
and Budget determines, based on reasonable 
projections made in advance of such fiscal year 
and reported pursuant to subparagraph (B), 
will be credited to the Spending Reduction Ac-
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count for such fiscal year pursuant to para-
graph (2) (plus any amounts remaining for ex-
penditure pursuant to subparagraph (D)). 
(B) ANNUAL REPORT OF OMB REGARDING 
SUFFICIENCY OF FUND.—The Director shall set 
forth the determination made under subpara-
graph (A) with respect to each fiscal year in a 
report to each House of the Congress not later 
than September 1 preceding such fiscal year, 
based on legislation enacted prior to such date. 
(C) PRO RATA REDUCTIONS IN CASE OF 
INSUFFICIENCY.—In any case in which the de-
termination made under subparagraph (A) for 
any fiscal year indicates, as determined by the 
Director, a projected insufficiency for such fis-
cal year in the balance of the Spending Reduc-
tion Account to make all payments from the 
Spending Reduction Account during such fiscal 
year in full when otherwise due, such payments 
shall be reduced on a pro rata basis in relation 
to the projected amounts available from time to 
time in the Spending Reduction Account for 
such payments during the fiscal year. 
(D) RESTORATION
OF
REDUCED
PAY-
MENTS.—In any case in which, as of the end of 
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any fiscal year, a balance remains in the Spend-
ing Reduction Account after payment in full 
when due of all payments payable during such 
fiscal year, additional payments shall be made 
from such balance so as to restore, to the max-
imum extent practicable, payments which were 
made in prior fiscal years in reduced amounts 
pursuant to this subparagraph to amounts con-
stituting payment in full of such payments. 
(E) 
CARRYOVER
OF
ACCOUNT
BAL-
ANCES.—Amounts credited to the Spending Re-
duction Account for a fiscal year which are not 
expended as of the end of such fiscal year shall 
remain available for expenditure in subsequent 
fiscal years until expended. 
(4) LIMITATIONS.— 
(A) Savings for any fiscal year may only be 
taken into account under paragraph (2) once. 
(B) Savings taken into account under 
paragraph (2) may not be taken into account 
for the purposes of any other spending reduc-
tion account. 
(C) Notwithstanding any other provision of 
law, no provision of any amendment made by 
this title may be carried out except to the ex-
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tent that funds for such provision are provided 
for such purpose from the Spending Reduction 
Account. The Secretary of the Treasury shall 
make such additional pro rata reductions in 
payments for any fiscal year to the extent nec-
essary for compliance with the preceding sen-
tence. 
(5) LOCKBOX.— 
(A) GENERAL
RULE.—Savings credited 
under paragraph (2) to the Spending Reduction 
Account may not be transferred or spent for 
any purpose other than to carry out the provi-
sions of this Act and the amendments made 
thereby. 
(B) ENFORCEMENT.—If any amount is 
transferred or spent in violation of subpara-
graph (A), no amount may be transferred to 
the Savings Reduction Account on and after the 
date of such violation. The determination of 
whether an amount is transferred or spent in 
violation of subparagraph (A) shall be made ir-
respective of whether such provision of law is a 
subsequently enacted provision or directly or in-
directly seeks to waive the application of this 
paragraph. 
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SEC. 7. INTERIM FINANCING OF THE SOCIAL SECURITY 
TRUST FUNDS. 
Subsection (l) of section 201 of the Social Security 
Act (42 U.S.C. 401(l)) is amended to read as follows: 
‘‘(l)(1) If at any time on or after January 1, 2012, 
the Managing Trustee determines that borrowing author-
ized under this subsection is necessary in order to ensure 
that sufficient assets are available in the Federal Old-Age 
and Survivors Insurance Trust Fund or the Federal Dis-
ability Insurance Trust Fund to provide for timely pay-
ment in full of benefits from such Trust Fund, the Man-
aging Trustee may borrow such amounts as the Managing 
Trustee determines to be appropriate from the general 
fund of the Treasury for transfer to and deposit in such 
Trust Fund. 
‘‘(2) If in any month after a loan has been made to 
either Trust Fund under paragraph (1), the Managing 
Trustee determines that the assets of such Trust Fund 
are sufficient to permit repayment of all or part of any 
loans made to such Trust Fund under paragraph (1), the 
Managing Trustee shall make such repayments as the 
Managing Trustee determines to be appropriate to provide 
for prompt repayment of the loans, together with accumu-
lated interest. Interest shall accumulate on the unpaid bal-
ance of the loan at a rate equal to the rate applicable on 
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the date of the loan for obligations issued to the Trust 
Fund under subsection (d). 
‘‘(3) The Board of Trustees shall make a timely re-
port to the Congress of any amounts transferred under 
this subsection.’’. 
Æ 
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