I
104TH CONGRESS
2D SESSION
H. R. 3636
To amend title II of the Social Security Act to ensure the integrity of
the Social Security trust funds by requiring the Managing Trustee to
invest the annual surplus of such trust funds in marketable interest-
bearing obligations of the United States and certificates of deposit in
depository institutions insured by the Federal Deposit Insurance Corpora-
tion, and to protect such trust funds from the public debt limit.
IN THE HOUSE OF REPRESENTATIVES
JUNE 13, 1996
Mr. NEUMANN (for himself, Mr. MCINTOSH, Mr. BASS, Mr. BONO, Mr.
BROWNBACK, 
Mr. 
BURR, 
Mr. 
CAMPBELL, 
Mr. 
CHABOT, 
Mrs.
CHENOWETH, Mr. CHRISTENSEN, Mr. CHRYSLER, Mr. COBURN, Mr.
COOLEY of Oregon, Mr. CREMEANS, Mrs. CUBIN, Mr. EHRLICH, Mr.
ENGLISH of Pennsylvania, Mr. ENSIGN, Mr. FOLEY, Mr. FORBES, Mr.
FOX of Pennsylvania, Mr. FRISA, Mr. FUNDERBURK, Mr. GRAHAM, Ms.
GREENE of Utah, Mr. GUTKNECHT, Mr. HASTINGS of Washington, Mr.
HAYWORTH, Mr. HILLEARY, Mr. HOSTETTLER, Mr. JONES, Mr.
LAHOOD, Mr. LARGENT, Mr. LATOURETTE, Mr. MARTINI, Mr.
METCALF, Mrs. MYRICK, Mr. NEY, Mr. NORWOOD, Mr. RADANOVICH,
Mr. RIGGS, Mr. SALMON, Mr. SCARBOROUGH, Mrs. SEASTRAND, Mr.
SHADEGG, 
Mr. 
SOUDER, 
Mr. 
STOCKMAN, 
Mr. 
TIAHRT, 
Mr.
THORNBERRY, Mr. WAMP, Mr. WATTS of Oklahoma, Mr. WELDON of
Florida, and Mr. WELLER) introduced the following bill; which was re-
ferred to the Committee on Ways and Means
A BILL
To amend title II of the Social Security Act to ensure the
integrity of the Social Security trust funds by requiring
the Managing Trustee to invest the annual surplus of
such trust funds in marketable interest-bearing obliga-
tions of the United States and certificates of deposit
in depository institutions insured by the Federal Deposit
Insurance Corporation, and to protect such trust funds
from the public debt limit.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Social Security Preser-
vation Act of 1996’’.
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 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 determine the
annual surplus (as defined in subparagraph (B)) for each
of the Trust Funds as of the end of each fiscal year. The
Managing Trustee shall ensure that such annual surplus
is invested, throughout the next following fiscal year, in—
‘‘(i) marketable interest-bearing obligations of
the United States or obligations guaranteed as to
both principal and interest by the United States,
purchased on original issue or at the market price,
or
‘‘(ii) certificates of deposit in insured depository
institutions (as defined in section 3(c)(2) of the Fed-
eral Deposit Insurance Act).
‘‘(B) For purposes of this paragraph, the ‘annual sur-
plus’ for either of the Trust Funds as of the end of a
fiscal 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)
for the fiscal 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) for the fiscal year,
and