Social Security Surplus Preservation and Debt Reduction Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Surplus Preservation 
and Debt Reduction Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the $69,246,000,000 unified budget surplus achieved in 
        fiscal year 1998 was entirely due to surpluses generated by the 
        social security trust funds and the cumulative unified budget 
        surpluses projected for subsequent fiscal years are primarily 
        due to surpluses generated by the social security trust funds;
            (2) Congress and the President should balance the budget 
        excluding the surpluses generated by the social security trust 
        funds;
            (3) according to the Congressional Budget Office, balancing 
        the budget excluding the surpluses generated by the social 
        security trust funds will reduce the debt held by the public by 
        a total of $1,723,000,000,000 by the end of fiscal year 2009; 
        and
            (4) social security surpluses should be used to enhance 
        retirement security or to reduce the debt held by the public 
        and should not be spent on other programs.

SEC. 3. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS.

    (a) Protection by Congress.--
            (1) Reaffirmation of support.--Congress reaffirms its 
        support for the provisions of section 13301 of the Budget 
        Enforcement Act of 1990 that provides that the receipts and 
        disbursements of the social security trust funds shall not be 
        counted for the purposes of the budget submitted by the 
        President, the congressional budget, or the Balanced Budget and 
        Emergency Deficit Control Act of 1985.
            (2) Protection of social security benefits.--If there are 
        sufficient balances in the Federal Old-Age and Survivors 
        Insurance Trust Fund and the Federal Disability Insurance Trust 
        Fund, the Secretary of Treasury shall give priority to the 
        payment of social security benefits required to be paid by law.
    (b) Points of Order.--Section 301 of the Congressional Budget Act 
of 1974 is amended by adding at the end the following:
    ``(j) Social Security Point of Order.--It shall not be in order in 
the House of Representatives or the Senate to consider a concurrent 
resolution on the budget, an amendment thereto, or a conference report 
thereon that violates section 13301 of the Budget Enforcement Act of 
1990.
    ``(k) Debt Held by the Public Point of Order.--It shall not be in 
order in the House of Representatives or the Senate to consider any 
bill, joint resolution, amendment, motion, or conference report that 
would--
            ``(1) increase the limit on the debt held by the public in 
        section 253A(a) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985; or
            ``(2) provide additional borrowing authority that would 
        result in the limit on the debt held by the public in section 
        253A(a) of the Balanced Budget and Emergency Deficit Control 
        Act of 1985 being exceeded.
    ``(l) Social Security Surplus Protection Point of Order.--
            ``(1) In general.--It shall not be in order in the House of 
        Representatives or the Senate to consider a concurrent 
        resolution on the budget, an amendment thereto, or a conference 
        report thereon that sets forth a deficit in any fiscal year.
            ``(2) Exception.--Paragraph (1) shall not apply if--
                    ``(A) the limit on the debt held by the public in 
                section 253A(a) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is suspended; or
                    ``(B) the deficit for a fiscal year results solely 
                from the enactment of--
                            ``(i) retirement security reform 
                        legislation, as defined in section 253A(e)(2) 
                        of the Balanced Budget and Emergency Deficit 
                        Control Act of 1985; or
                            ``(ii) provisions of legislation that are 
                        designated as an emergency requirement pursuant 
                        to section 251(b)(2)(A) or 252(e) of the 
                        Balanced Budget and Emergency Deficit Control 
                        Act of 1985.''.

SEC. 4. DEDICATION OF SOCIAL SECURITY SURPLUSES TO REDUCTION IN THE 
              DEBT HELD BY THE PUBLIC.

    (a) Amendments to the Congressional Budget Act of 1974.--The 
Congressional Budget Act of 1974 is amended--
            (1) in section 3, by adding at the end the following:
            ``(11)(A) The term `debt held by the public' means the 
        outstanding face amount of all debt obligations issued by the 
        United States Government that are held by outside investors, 
        including individuals, corporations, State or local 
        governments, foreign governments, and the Federal Reserve 
        System.
            ``(B) For the purpose of this paragraph, the term `face 
        amount', for any month, of any debt obligation issued on a 
        discount basis that is not redeemable before maturity at the 
        option of the holder of the obligation is an amount equal to 
        the sum of--
                    ``(i) the original issue price of the obligation; 
                plus
                    ``(ii) the portion of the discount on the 
                obligation attributable to periods before the beginning 
                of such month.
            ``(12) The term `social security surplus' means the amount 
        for a fiscal year that receipts exceed outlays of the Federal 
        Old-Age and Survivors Insurance Trust Fund and the Federal 
        Disability Insurance Trust Fund.'';
            (2) in section 301(a) by--
                    (A) redesignating paragraphs (6) and (7) as 
                paragraphs (7) and (8), respectfully; and
                    (B) inserting after paragraph (5) the following:
            ``(6) the debt held by the public; and''; and
            (3) in section 310(a) by--
                    (A) striking ``or'' at the end of paragraph (3);
                    (B) by redesignating paragraph (4) as paragraph 
                (5); and
                    (C) inserting the following new paragraph;
            ``(4) specify the amounts by which the statutory limit on 
        the debt held by the public is to be changed and direct the 
        committee having jurisdiction to recommend such change; or''.
    (b) Amendments to the Balanced Budget and Emergency Deficit Control 
Act of 1985.--The Balanced Budget and Emergency Deficit Control Act of 
1985 is amended--
            (1) in section 250, by striking subsection (b) and 
        inserting the following:
    ``(b) General Statement of Purpose.--This part provides for the 
enforcement of--
            ``(1) a balanced budget excluding the receipts and 
        disbursements of the social security trust funds; and
            ``(2) a limit on the debt held by the public to ensure that 
        social security surpluses are used for retirement security 
        reform or to reduce debt held by the public and are not spent 
        on other programs.'';
            (2) in section 250(c)(1), by inserting ``` debt held by the 
        public', `social security surplus''' after ``outlays',''; and
            (3) by inserting after section 253 the following:

``SEC. 253A. DEBT HELD BY THE PUBLIC LIMIT.

    ``(a) Limit.--The debt held by the public shall not exceed--
            ``(1) for the period beginning May 1, 2000 through April 
        30, 2001, $3,628,000,000,000;
            ``(2) for the period beginning May 1, 2001 through April 
        30, 2002, $3,512,000,000,000;
            ``(3) for the period beginning May 1, 2002 through April 
        30, 2004, $3,383,000,000,000;
            ``(4) for the period beginning May 1, 2004 through April 
        30, 2006, $3,100,000,000,000;
            ``(5) for the period beginning May 1, 2006 through April 
        30, 2008, $2,775,000,000,000; and,
            ``(6) for the period beginning May 1, 2008 through April 
        30, 2010, $2,404,000,000,000.
    ``(b) Adjustments for Actual Social Security Surplus Levels.--
            ``(1) Estimated levels.--The estimated level of social 
        security surpluses for the purposes of this section is--
                    ``(A) for fiscal year 1999, $127,000,000,000;
                    ``(B) for fiscal year 2000, $137,000,000,000;
                    ``(C) for fiscal year 2001, $145,000,000,000;
                    ``(D) for fiscal year 2002, $153,000,000,000;
                    ``(E) for fiscal year 2003, $162,000,000,000;
                    ``(F) for fiscal year 2004, $171,000,000,000;
                    ``(G) for fiscal year 2005, $184,000,000,000;
                    ``(H) for fiscal year 2006, $193,000,000,000;
                    ``(I) for fiscal year 2007, $204,000,000,000;
                    ``(J) for fiscal year 2008, $212,000,000,000; and
                    ``(K) for fiscal year 2009, $218,000,000,000.
            ``(2) Adjustment to the limit for actual social security 
        surpluses.--After October 1 and no later than December 31 of 
        each year, the Secretary shall make the following calculations 
        and adjustments:
                    ``(A) Calculation.--After the Secretary determines 
                the actual level for the social security surplus for 
                the current year, the Secretary shall take the 
                estimated level of the social security surplus for that 
                year specified in paragraph (1) and subtract that 
                actual level.
                    ``(B) Adjustment.--
                            ``(i) 2000 through 2004.--With respect to 
                        the periods described in subsections (a)(1), 
                        (a)(2), and (a)(3), the Secretary shall add the 
                        amount calculated under subparagraph (A) to--
                                    ``(I) the limit set forth in 
                                subsection (a) for the period of years 
                                that begins on May 1st of the following 
                                calendar year; and
                                    ``(II) each subsequent limit.
                            ``(ii) 2004 through 2010.--With respect to 
                        the periods described in subsections (a)(4), 
                        (a)(5), and (a)(6), the Secretary shall add the 
                        amount calculated under subparagraph (A) to--
                                    ``(I) the limit set forth in 
                                subsection (a) for the period of years 
                                that includes May 1st of the following 
                                calendar year; and
                                    ``(II) each subsequent limit.
    ``(c) Adjustment to the Limit for Emergencies.--
            ``(1) Estimate of legislation.--
                    ``(A) Calculation.--If legislation is enacted into 
                law that contains a provision that is designated as an 
                emergency requirement pursuant to section 251(b)(2)(A) 
                or 252(e), OMB shall estimate the amount the debt held 
                by the public will change as a result of the 
                provision's effect on the level of total outlays and 
                receipts excluding the impact on outlays and receipts 
                of the Federal Old-Age and Survivors Insurance Trust 
                Fund and the Federal Disability Insurance Trust Fund.
                    ``(B) Baseline levels.--OMB shall calculate the 
                changes in subparagraph (A) relative to baseline levels 
                for each fiscal year through fiscal year 2010 using 
                current estimates.
                    ``(C) Estimate.--OMB shall include the estimate 
                required by this paragraph in the report required under 
                section 251(a)(7) or section 252(d), as the case may 
                be.
            ``(2) Adjustment.--After January 1 and no later than May 1 
        of each calendar year beginning with calendar year 2000--
                    ``(A) with respect to the periods described in 
                subsections (a)(1), (a)(2), and (a)(3), the Secretary 
                shall add the amounts calculated under paragraph (1)(A) 
                for the current year included in the report referenced 
                in paragraph (1)(C) to--
                            ``(i) the limit set forth in subsection (a) 
                        for the period of years that begins on May 1 of 
                        that calendar year; and
                            ``(ii) each subsequent limit; and
                    ``(B) with respect to the periods described in 
                subsections (a)(4), (a)(5), and (a)(6), the Secretary 
                shall add the amounts calculated under paragraph (1)(A) 
                for the current year included in the report referenced 
                in paragraph (1)(C) to--
                            ``(i) the limit set forth in subsection (a) 
                        for the period of years that includes May 1 of 
                        that calendar year; and
                            ``(ii) each subsequent limit.
            ``(3) Exception.--The Secretary shall not make the 
        adjustments pursuant to this section if the adjustments for the 
        current year are less than the on-budget surplus for the year 
        before the current year.
    ``(d) Adjustment to the Limit for Low Economic Growth and War.--
            ``(1) Suspension of statutory limit on debt held by the 
        public.--
                    ``(A) Low economic growth.--If the most recent of 
                the Department of Commerce's advance, preliminary, or 
                final reports of actual real economic growth indicate 
                that the rate of real economic growth for each of the 
                most recently reported quarter and the immediately 
                preceding quarter is less than 1 percent, the limit on 
                the debt held by the public established in this section 
                is suspended.
                    ``(B) War.--If a declaration of war is in effect, 
                the limit on the debt held by the public established in 
                this section is suspended.
            ``(2) Restoration of statutory limit on debt held by the 
        public.--
                    ``(A) Restoration of limit.--The statutory limit on 
                debt held by the public shall be restored on May 1 
                following the quarter in which the level of real Gross 
                Domestic Product in the final report from the 
                Department of Commerce is equal to or is higher than 
                the level of real Gross Domestic Product in the quarter 
                preceding the first two quarters that caused the 
                suspension of the pursuant to paragraph (1).
                    ``(B) Adjustment.--
                            ``(i) Calculation.--The Secretary shall 
                        take level of the debt held by the public on 
                        October 1 of the year preceding the date 
                        referenced in subparagraph (A) and subtract the 
                        limit in subsection (a) for the period of years 
                        that includes the date referenced in 
                        subparagraph (A).
                            ``(ii) Adjustment.--The Secretary shall add 
                        the amount calculated under clause (i) to--
                                    ``(I) the limit in subsection (a) 
                                for the period of fiscal years that 
                                includes the date referenced in 
                                subparagraph (A); and
                                    ``(II) each subsequent limit.
    ``(e) Adjustment to the Limit for Retirement Security Reform 
Provisions that Affect On-Budget Levels.--
            ``(1) Estimate of legislation.--
                    ``(A) Calculation.--If retirement security reform 
                legislation is enacted, OMB shall estimate the amount 
                the debt held by the public will change as a result of 
                the legislation's effect on the level of total outlays 
                and receipts excluding the impact on outlays and 
                receipts of the Federal Old-Age and Survivors Insurance 
                Trust Fund and the Federal Disability Insurance Trust 
                Fund.
                    ``(B) Baseline levels.--OMB shall calculate the 
                changes in subparagraph (A) relative to baseline levels 
                for each fiscal year through fiscal year 2010 using 
                current estimates.
                    ``(C) Estimate.--OMB shall include the estimate 
                required by this paragraph in the report required under 
                section 252(d) for retirement security reform 
                legislation.
            ``(2) Adjustment to limit on the debt held by the public.--
        If retirement security reform legislation is enacted, the 
        Secretary shall adjust the limit on the debt held by the public 
        for each period of fiscal years by the amounts determined under 
        paragraph (1)(A) for the relevant fiscal years included in the 
        report referenced in paragraph (1)(C).
    ``(e) Definitions.--In this section:
            ``(1) Secretary.--The term `Secretary' means the Secretary 
        of the Treasury.
            ``(2) Retirement security reform legislation.--The term 
        `retirement security reform legislation' means a bill or joint 
        resolution that is enacted into law and includes a provision 
        stating the following:
            ```(  ) Retirement security reform legislation.--For the 
        purposes of the Social Security Surplus Preservation and Debt 
        Reduction Act, this Act constitutes retirement security reform 
        legislation.'
        This paragraph shall apply only to the first bill or joint 
        resolution enacted into law as described in this paragraph.
            ``(3) Retirement security reform provisions.--The term 
        `retirement security reform provisions' means a provision or 
        provisions identified in retirement security reform legislation 
        stating the following:
            ```(  ) Retirement security reform provisions.--For the 
        purposes of the Social Security Surplus Preservation and Debt 
        Reduction Act, ________ of this Act constitutes or constitute 
        social security reform provisions.', with a list of specific 
        provisions in that bill or joint resolution specified in the 
        blank space.''.

SEC. 5. PRESIDENT'S BUDGET.

    Section 1105(f) of title 31, United States Code, is amended by 
striking ``in a manner consistent'' and inserting ``in compliance''.

SEC. 6. SUNSET.

    This Act and the amendments made by it shall expire on April 30, 
2010.

Summary: Social Security Surplus Preservation and Debt Reduction Act - Amends the Congressional Budget Act of 1974 to make it out of order in the House of Representatives or the Senate to consider a concurrent budget resolution (or amendment thereto or conference report thereon) that violates a provision of the Budget Enforcement Act of 1990 that provides that the receipts and disbursements of the Federal Old-Age and Survivors and Disability Insurance Trust Funds (social security trust funds) shall not be counted for purposes of the presidential or congressional budget or the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act). 
Makes it out of order in the House or the Senate to consider any legislation that would: (1) increase the limit on the public debt under the Gramm-Rudman-Hollings Act; or (2) provide additional borrowing authority that would result in such limit being exceeded. 
Makes it out of order in the House or the Senate to consider a concurrent budget resolution (or amendment thereto or conference report thereon) that sets forth a deficit for any fiscal year.  Makes such point of order inapplicable if: (1) the public debt limit is suspended; or (2) the deficit for a fiscal year results solely from the enactment of retirement security reform legislation or provisions designated as emergency requirements. 
Includes the level of public debt in the required content of the concurrent budget resolution.  Requires the budget resolution to specify the amounts by which the limit on such debt is to be changed and direct the committee having jurisdiction to recommend such change. 
Amends the Gramm-Rudman-Hollings Act to set forth: (1) limits on the public debt for specified periods through April 30, 2010; and (2) estimated levels of social security surpluses through FY 2009. 
Provides for adjustments to the public debt limit based on actual social security surpluses and emergency requirements.  Prohibits such adjustments if those for the current year are less than the on-budget surplus for the year before the current year. 
Suspends the public debt limit in cases of low economic growth or war. 
Provides for an adjustment to the public debt limit if retirement security reform legislation is enacted. 
Sunsets this Act on April 30, 2010.