Security, the Secretary of the Treasury, and the 
members of the Personal Social Security Savings Ac-
count Board established under section 261 of the 
Social Security Act. 
(2) MEETINGS.—The Board of Trustees shall 
meet not less frequently than once each calendar 
year. 
(3) DUTIES.—The duties of the Board of 
Trustees are as follows: 
(A) Use all funds paid into the Transition 
Fund to redeem obligations issued under sec-
tion 8 as soon as practicable. 
(B) Report to Congress not later than the 
first day of April of each year on the operation 
and status of the Transition Fund during the 
preceding fiscal year and on its expected oper-
ation and status during the current fiscal year 
and the next 2 fiscal years. 
(C) Review the general policies followed in 
managing the Transition Fund, and recommend 
changes in such policies, including necessary 
changes in the provisions of law which govern 
the way in which the Transition Fund is to be 
managed.
(e) POLICY DECLARATION.—It is hereby declared the 
policy of the United States that all obligations issued 
under section 8 are to be redeemed by the Transition 
Fund as soon as possible. 
(f) SUNSET.—On the first date as of which all of the 
obligations issued under section 8 have been redeemed, 
any balance remaining in the Transition Fund as of such 
date shall be deposited in the Federal Old-Age and Sur-
vivors Insurance Trust Fund, the terms of the Board of 
Trustees shall end, and this section shall be repealed. 
SEC. 7. ISSUANCE OF TRANSITION FUND BONDS. 
(a) ISSUANCE.—
(1) IN GENERAL.—The purposes for which obli-
gations of the United States may be issued under 
chapter 31 of title 31, United States Code, are here-
by extended to authorize the issuance at par of pub-
lic-debt obligations by the Self-Liquidating Social 
Security Transition Fund (in this section referred to 
as the ‘‘Transition Fund’’). 
(2) REQUIRED ISSUANCE.—Beginning on Janu-
ary 1, 2005, whenever any obligation held in the 
Federal Old-Age and Survivors Insurance Trust 
Fund or the Federal Disability Insurance Trust 
Fund is repaid from the general fund of the Treas-
ury to either of such Trust Funds, the Transition
Fund shall issue an obligation under this subsection 
in an amount equal to the amount of interest and 
principal so repaid. 
(3) TRANSFER OF PROCEEDS.—Proceeds from 
the issuance of any obligation issued under this sec-
tion shall be transferred to the general fund of the 
Treasury. 
(4) ACCOUNTING.—The debt owed on any obli-
gation issued under this section shall be considered 
to be debt of the Transition Fund and shall be ac-
counted for in such manner. 
(b) MATURITIES AND INTEREST RATE.—Such obliga-
tions issued by the Transition Fund for purchase by the 
public shall have maturities fixed with due regard for the 
needs of the Transition Fund and shall bear interest at 
a rate equal to the average market yield (computed by the 
Secretary of the Treasury on the basis of market 
quotations as of the end of the calendar month next pre-
ceding the date of such issue) 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 4 years from the end of such cal-
endar month, except that where such average market yield 
is not a multiple of one-eighth of 1 per centum, the rate
of interest on such obligations shall be the multiple of one-
eighth of 1 per centum nearest such market yield. 
(c) REPAYMENT OF OBLIGATIONS.—Only funds in 
the Transition Fund may be used to redeem obligations 
issued under this section. 
SEC. 8. ACCOUNTING FOR THE OLD-AGE, SURVIVORS, AND 
DISABILITY INSURANCE PROGRAM AND THE 
PERSONAL SOCIAL SECURITY SAVINGS PRO-
GRAM. 
Title VII of the Social Security Act is amended by 
inserting after section 705 (42 U.S.C. 906) the following 
new section: 
‘‘ACCOUNTING FOR THE OLD-AGE, SURVIVORS, AND DIS-
ABILITY INSURANCE PROGRAM AND THE INDIVIDUAL 
SOCIAL SECURITY INVESTMENT PROGRAM 
‘‘Social Security Lockbox Budget 
‘‘SEC. 706. (a) At the time of the transmittal to the 
Congress by the President of the budget of the United 
States Government, the President shall transmit to each 
House of the Congress a separate report (to be known as 
the ‘Social Security Lockbox Budget’) detailing the per-
formance of the Social Security Part A Account, the Social 
Security Part B Account, and the Self-Liquidating Social 
Security Transition Fund Account (established under sub-
section (b)) during the preceding fiscal year. Such report 
shall set forth, as determined as of the end of the year—