SEC. 2. INVESTMENT OF THE FEDERAL OLD-AGE AND SUR-
VIVORS INSURANCE TRUST FUND AND THE
FEDERAL 
DISABILITY 
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 paragraphs (2) and (3), such investments
may be made only’’;
(3) by striking the last sentence; and
(4) by adding at the end the following new
paragraphs:
‘‘(2)(A) As of the end of each fiscal year, the Manag-
ing Trustee shall determine—
‘‘(i) the surplus (if any) in the total budget of
the Government of the United States, and
‘‘(ii) the total amount of the Trust Funds then
invested in obligations issued pursuant to paragraph
(1).
‘‘(B) During the following fiscal year, the Managing
Trustee shall purchase qualified investments, with
amounts otherwise available in the general fund of the
Treasury, at original issue or on the market, at a total
cost equal to at least 90 percent of the surplus referred
to in subparagraph (A)(i), except that such total cost may
not exceed the total amount referred to in subparagraph
(A)(ii).
‘‘(C) Upon the purchase of qualified investments pur-
suant to subparagraph (B), the Managing Trustee shall
redeem, with such qualified investments, obligations which
have been issued pursuant to paragraph (1) and are held
by either of the Trust Funds. Such qualified investments
shall be held by the Trust Fund until liquidation of such
qualified investments is necessary to meet current with-
drawals or is otherwise determined by the Managing
Trustee to be in the public interest.
‘‘(D) Effective for fiscal years beginning after such
time as all obligations issued pursuant to paragraph (1)
and held by the Trust Funds have been redeemed with
qualified investments pursuant to subparagraph (C), the
Managing Trustee shall invest only in qualified invest-
ments such portion of each Trust Fund as is not, in his
judgment, required to meet current withdrawals.
‘‘(E) The Managing Trustee shall exercise his author-
ity under this paragraph solely for the benefit of the bene-
ficiaries under the old-age, survivors, and disability insur-
ance program under this title.
‘‘(3) For purposes of paragraph (2)—
‘‘(A)(i) The term ‘qualified investment’ means a
marketable interest-bearing obligation of the United
States, purchased on original issue or at the market
price, which meets the requirements of clause (ii).
‘‘(ii) An obligation referred to in clause (i)
meets the requirements of this section if such
obligation—
‘‘(I) has a maturity fixed with due regard
for the needs of the Trust Funds,
‘‘(II) bears interest at a rate at least equal
to the average market yield (computed by the
Managing Trustee on the basis of market
quotations as of the end of the calendar month
next preceding the date of purchase) on all
marketable interest-bearing obligations of the
United States then forming a part of the public
debt which are not due or callable until after
the expiration of four years from the end of
such calendar month, and
‘‘(III) is subject to an option to redeem
such obligations at any time at the purchase
price.
‘‘(B) The term ‘total budget of the United
States Government’ means all spending and receipt
accounts of the United States Government that are
designated as on-budget or off-budget accounts.
‘‘(4) The preceding provisions of this subsection shall
be subject to such reforms of the old-age, survivors, and
disability insurance program under this title as may be
provided in legislation enacted after the date of the enact-
ment of the Social Security Strengthening and Protection
Act of 1999.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to fiscal years begin-
ning on or after October 1, 2000.
SEC. 3. PROTECTION OF THE SOCIAL SECURITY TRUST
FUNDS FROM THE PUBLIC DEBT LIMIT.
(a) PROTECTION OF TRUST FUNDS.—Notwithstand-
ing 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) the Fed-
eral Old-Age and Survivors Insurance Trust
Fund or the Federal Disability Insurance Trust
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 either of such
Trust Funds,
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 either of such Trust
Funds which are invested in public debt obligations
if a purpose of the disinvestment is to reduce the
amount of outstanding public debt obligations.
(b) PROTECTION OF BENEFITS AND EXPENDITURES
FOR ADMINISTRATIVE EXPENSES.—
(1) IN GENERAL.—Notwithstanding subsection
(a), during any period for which cash benefits or ad-
ministrative expenses would not otherwise be payable
from the Federal Old-Age and Survivors Insurance
Trust Fund or the Federal Disability Insurance
Trust Fund by reason of an inability to issue further
public debt obligations because of the applicable
public debt limit, public debt obligations held by
such Trust 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 such Trust Fund are not available from
month to month for making payment of such bene-
fits or administrative expenses.
(2) ISSUANCE OF CORRESPONDING DEBT.—For
purposes of undertaking the sale or redemption of
public debt obligations held by the Federal Old-Age
and Survivors Insurance Trust Fund or the Federal
Disability Insurance Trust Fund pursuant to para-
graph (1), the Secretary of the Treasury may issue
corresponding public debt obligations to the public,
in order to obtain the cash necessary for payment of
benefits or administrative expenses from such Trust
Fund, notwithstanding 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-
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.
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