SEC. 2. INVESTMENT OF THE ANNUAL SURPLUS OF THE 
FEDERAL OLD-AGE AND SURVIVORS INSUR-
ANCE TRUST FUND AND THE FEDERAL DIS-
ABILITY INSURANCE TRUST FUND. 
(a) IN GENERAL.—Section 201(d) of the Social Secu-
rity Act (42 U.S.C. 401(d)) is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; 
(2) by striking ‘‘Such investments may be made 
only’’ and inserting the following: ‘‘Except as pro-
vided in paragraph (2), such investments may be 
made only’’; 
(3) by striking the last sentence; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(2)(A) The Managing Trustee shall, in accordance 
with policies prescribed in regulations of the Social Secu-
rity Surplus Investment Board prescribed under sub-
section (o), ensure that amounts in each of the Trust 
Funds equivalent to the annual surplus for such Trust 
Fund for any calendar year are made available to the 
Board on a timely basis for purposes of investment in ac-
cordance with subsection (o). Such amounts shall be made 
available in at least monthly installments and shall be de-
termined on the basis of estimates, by the Commissioner 
and certified to the Secretary of the Treasury, and proper 
adjustments shall be made in amounts subsequently made 
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available to the extent prior estimates were in excess of 
or were less than actual amounts. 
‘‘(B) For purposes of this paragraph, the ‘annual sur-
plus’ for either of the Trust Funds for a calendar year 
is the excess (if any) of— 
‘‘(i) the sum of— 
‘‘(I) in the case of the Federal Old-Age 
and Survivors Insurance Trust Fund, the 
amounts appropriated to such Trust Fund 
under paragraphs (3) and (4) of subsection (a) 
and attributable to such calendar year, 
‘‘(II) in the case of the Federal Disability 
Insurance Trust Fund, the amounts appro-
priated to such Trust Fund under paragraphs 
(1) and (2) of subsection (b) and attributable to 
such calendar year, and 
‘‘(III) in either case, the amount appro-
priated to such Trust Fund under section 
121(e) of the Social Security Amendments of 
1983 and attributable to such calendar year, 
and any amounts otherwise credited to or de-
posited in such Trust Fund under this title at-
tributable to such calendar year, over 
‘‘(ii) the amount estimated by the Commis-
sioner to be the total amount to be paid from such 
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Trust Fund during such calendar year for all pur-
poses authorized by section 201 (other than pay-
ments of interest on, and repayments of, loans from 
the Federal Hospital Insurance Trust Fund under 
section 201(l)(1), and excluding any transfer pay-
ments between the Trust Funds and reducing the 
amount of any transfer from either of the Trust 
Funds to the Railroad Retirement Account by the 
amount of any transfer into such Trust Fund from 
such Account). 
‘‘(C) Amounts of either Trust Fund made available 
to the Social Security Surplus Investment Board under 
subparagraph (A) for purposes of investment under sub-
section (o), and any proceeds from such investment, shall 
continue to be treated as assets of such Trust Fund, and 
the Managing Trustee shall ensure that such assets are 
available as necessary for payment of benefits pursuant 
to subsection (h).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to annual surpluses 
for calendar years beginning on or after January 1, 2009. 
SEC. 3. SOCIAL SECURITY SURPLUS INVESTMENT BOARD. 
Section 201 of the Social Security Act (42 U.S.C. 
401) is amended by adding at the end the following new 
subsection: 
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‘‘(o) SOCIAL
SECURITY
SURPLUS
INVESTMENT 
BOARD.— 
‘‘(1) ESTABLISHMENT OF THE BOARD.— 
‘‘(A) ESTABLISHMENT.—There is estab-
lished in the Executive branch of the Govern-
ment a Social Security Surplus Investment 
Board. 
‘‘(B) NUMBER
AND
APPOINTMENT.—The 
Board shall be composed of 7 members as fol-
lows: 
‘‘(i) 3 members appointed by the 
President, of whom 1 shall be designated 
by the President as Chairman; and 
‘‘(ii) 4 members appointed by the 
President, of whom— 
‘‘(I) 2 shall be appointed by the 
President after taking into consider-
ation the recommendations made by 
the Speaker of the House of Rep-
resentatives in consultation with the 
minority leader of the House of Rep-
resentatives; and 
‘‘(II) 2 shall be appointed by the 
President after taking into consider-
ation the recommendations made by 
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the majority leader of the Senate in 
consultation with the minority leader 
of the Senate. 
‘‘(C) 
MEMBERSHIP
REQUIREMENTS.— 
Members of the Board shall have substantial 
experience, training, and expertise in the man-
agement of financial investments and pension 
benefit plans. No more than 4 of the members 
of the Board may be of the same political party. 
‘‘(D) TERMS.—Each member of the Board 
shall be appointed for a term of 4 years, except 
that of the members first appointed— 
‘‘(i) the Chairman shall be appointed 
for a term of 4 years; 
‘‘(ii) the remaining members ap-
pointed under subsection (B)(i) shall be 
appointed for terms of 3 years; 
‘‘(iii) one of the members appointed 
under subsection (B)(ii)(I) shall be ap-
pointed for a term of 4 years and the other 
for a term of two years; and 
‘‘(iv) one of the members appointed 
under subsection (B)(ii)(II) shall be ap-
pointed for a term of 4 years and the other 
for a term of 2 years. 
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