113 HR 1517 IH: Social Security and Medicare Lock-Box Act
U.S. House of Representatives
2013-04-11
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.
(a)This Act may be cited
as the Social Security and Medicare
Lock-Box Act
.
(b)Findings
regarding social security and Medicare part AThe Congress finds the following:
(1)(A)Long term projections
show serious problems facing the fiscal health of the trust funds associated
with Social Security and Medicare Hospital Insurance.
(B)According to the 2012 Annual Report of
the Board of Trustees of the Federal Old-Age and Survivors Insurance and
Federal Disability Insurance Trust Funds, the assets of the combined Federal
Old Age and Survivors Insurance Trust Fund and the Federal Disability Insurance
Trust Fund will be exhausted by 2033, and the Disability Insurance Trust Fund
alone will be depleted by 2016.
(C)According to the 2012 Annual Report of
the Board of Trustees of the Federal Hospital Insurance and Federal
Supplementary Medical Insurance Trust Funds, the assets of the Federal Hospital
Insurance Trust Fund will be exhausted by 2024.
(2)(A)The Trustees of these
trust funds strongly encourage action to protect the solvency of the trust
funds.
(B)In their message to the public,
included in the 2012 Annual Reports, the Social Security and Medicare Boards of
Trustees wrote, Lawmakers should not delay addressing the long-run
financial challenges facing Social Security and Medicare. If they take action
sooner rather than later, more options and more time will be available to phase
in changes so that the public has adequate time to prepare.
.
(3)Social Security
and Medicare are meant to provide a secure and stable base so that older
Americans can live in dignity.
(4)Protecting the
future surpluses of these trust funds can only occur when meaningful reform has
been enacted by Congress. Any path to solvency must include the protection of
future surpluses.
2.Interim
protections for Social Security trust fund surplusSection
201(d) of the Social Security Act (42 U.S.C. 402(d)) is amended—
(1)by striking
It shall be the duty
and inserting (1) Except as provided
in paragraph (2), it shall be the duty
; and
(2)by striking
(1) on original issue at the issue price, or (2)
and inserting
(A) on original issue at the issue price, or (B)
; and
(3)by adding at the
end the following new paragraph:
(2)(A)There is established in
the Federal Old-Age and Survivors Insurance Trust Fund a Social Security
Surplus Protection Account. As soon as practicable after each fiscal year after
fiscal year 2013, the Managing Trustee shall transfer to the Account, from
amounts otherwise available in the Trust Fund, amounts equivalent to the social
security surplus for such fiscal year. Such amounts shall be transferred from
time to time to the Account, such amounts to be determined on the basis of
estimates by the Managing Trustee, and proper adjustments shall be made in
amounts subsequently transferred to the extent prior estimates were in excess
of or were less than the correct amount.
(B)For purposes of subparagraph (A), the
term social security surplus means, for any fiscal year, the
excess, if any, of—
(i)the sum of—
(I)the taxes imposed for such fiscal
year by chapter 21 (other than sections 3101(b) and 3111(b)) of the Internal
Revenue Code of 1986 with respect to wages (as defined in section 3121 of such
Code) reported to the Secretary of the Treasury or his delegates pursuant to
subtitle F of such Code, as determined by the Secretary of the Treasury by
applying the applicable rates of tax under such chapter 21 (other than sections
3101(b) and 3111(b)) to such wages, less the amounts specified in clause (1) of
subsection (b) of this section for such fiscal year,
(II)the taxes imposed by chapter 2
(other than section 1401(b)) of the Internal Revenue Code of 1986 with respect
to self-employment income (as defined in section 1402 of such Code) reported to
the Secretary of the Treasury on tax returns under subtitle F of such Code, as
determined by the Secretary of the Treasury by applying the applicable rate of
tax under such chapter (other than section 1401(b)) to such self-employment
income, less the amounts specified in clause (2) of subsection (b) of this
section for such fiscal year, and
(III)the amount equivalent to the
aggregate increase in tax liabilities under chapter 1 of the Internal Revenue
Code of 1986 which is attributable to the application of sections 86 and
871(a)(3) of such Code to payments from the Trust Fund, over
(ii)the sum of—
(I)benefits paid from the Trust Fund
during the fiscal year, and
(II)amounts authorized to be made
available from the Trust Fund under subsection (g) of this section which are
paid from the Trust Fund during such fiscal year.
(C)Notwithstanding paragraph (1), the
balance in the Account shall not be available for investment by the Managing
Trustee.
(D)(i)The preceding provisions
of this paragraph shall not apply with respect to fiscal years commencing with
or after the first fiscal year, after fiscal year 2013, for which a provision
of Federal law takes effect and authorizes, for amounts in the Trust Fund, an
investment vehicle other than obligations of the United States resulting in the
transfer of Trust Fund assets to the general fund of the Treasury.
(ii)A provision of Federal law shall be
deemed to meet the requirements of clause (i) if such provision includes the
following: This Act shall be considered to be a provision of Federal law
meeting the requirements of section 201(d)(2)(D)(i) of the Social Security
Act.
.
.
3.Interim
protections for Medicare part A trust fund surplus
(a)Section 1817(c) of the Social Security Act (42 U.S.C.
1395i(c)) is amended—
(1)by striking
It shall be the duty
and inserting (1) Except as provided
in paragraph (2), it shall be the duty
;
(2)by striking
(1) on original issue at the issue price, or (2)
and inserting
(A) on original issue at the issue price, or (B)
; and
(3)by adding at the
end the following new paragraph:
(2)(A)There is established in
the Federal Hospital Insurance Trust Fund a Medicare Surplus Protection Account
(in this paragraph referred to as the Account
). As soon as
practicable after each fiscal year after fiscal year 2013, the Managing Trustee
shall transfer to the Account, from amounts otherwise available in the Trust
Fund, amounts equivalent to the Medicare part A surplus for such fiscal year.
Such amounts shall be transferred from time to time to the Account, such
amounts to be determined on the basis of estimates by the Managing Trustee, and
proper adjustments shall be made in amounts subsequently transferred to the
extent prior estimates were in excess of or were less than the correct
amount.
(B)For purposes of subparagraph (A), the
term Medicare part A surplus means, for any fiscal year, the
excess, if any, of—
(i)the sum of—
(I)the taxes imposed for such fiscal
year by sections 3101(b) and 3111(b) of the Internal Revenue Code of 1986 with
respect to wages (as defined in section 3121 of such Code) reported to the
Secretary of the Treasury or his delegates pursuant to subtitle F of such Code,
as determined by the Secretary of the Treasury by applying the applicable rates
of tax under such sections to such wages; and
(II)the taxes imposed by section
1401(b) of the Internal Revenue Code of 1986 with respect to self-employment
income (as defined in section 1402 of such Code) reported to the Secretary of
the Treasury on tax returns under subtitle F of such Code, as determined by the
Secretary of the Treasury by applying the applicable rate of tax under such
section 1401(b) to such self-employment income; over
(ii)the sum of—
(I)benefits paid from the Trust Fund
during the fiscal year; and
(II)amounts authorized to be made
available from the Trust Fund under subsection (f) of this section (or section
201(g)) which are paid from the Trust Fund during such fiscal year.
(C)Notwithstanding paragraph (1), the
balance in the Account shall not be available for investment by the Managing
Trustee.
(D)(i)The preceding provisions
of this paragraph shall not apply with respect to fiscal years commencing with
or after the first fiscal year, after fiscal year 2013, for which a provision
of Federal law takes effect and authorizes, for amounts in the Trust Fund, an
investment vehicle other than obligations of the United States resulting in the
transfer of Trust Fund assets to the general fund of the Treasury.
(ii)A provision of Federal law shall be
deemed to meet the requirements of clause (i) if such provision includes the
following: This Act shall be considered to be a provision of Federal law
meeting the requirements of section 1817(c)(2)(D)(i) of the Social Security
Act.
.
.
4.Social Security and
Medicare Part A Investment Commission
(a)There
is established in the executive branch of the Government a Social Security and
Medicare Part A Investment Commission (in this section referred to as the
Commission
).
(b)As soon as practicable
after the date of the enactment of this Act, the Commission shall conduct a
study to ascertain the most effective vehicles for investment of the Federal
Old-Age and Survivors Insurance Trust Fund and the Federal Hospital Insurance
Trust Fund, other than investment in the form of obligations of the United
States resulting in the transfer of Trust Fund assets to the general fund of
the Treasury. Not later than October 1, 2014, the Commission shall submit a
report to the President and to each House of the Congress setting forth its
recommendations for such vehicles for investment, together with proposals for
such administrative and legislative changes as the Commission determines
necessary to authorize and implement such recommendations.
(c)The
Commission shall be composed of—
(1)3
members appointed by the President, of whom 1 shall be designated by the
President as Chairman;
(2)2 members
appointed by the Speaker of the House of Representatives;
(3)1 member appointed
by the minority leader of the House of Representatives;
(4)2 members
appointed by the majority leader of the Senate; and
(5)1 member appointed
by the minority leader of the Senate.
(d)Members of the Commission shall have substantial
experience, training, and expertise in the management of financial investments
and pension benefit plans.
(e)Members of the Commission shall serve for the life
of the Commission. A vacancy on the Commission shall be filled in the manner in
which the original appointment was made and shall be subject to any conditions
that applied with respect to the original appointment.
(f)Administrative
provisions
(1)The
Commission shall meet—
(A)not less than once
during each month; and
(B)at additional
times at the call of the Chairman.
(2)
(A)The Commission shall perform the functions and exercise
the powers of the Commission on a majority vote of a quorum of the Commission.
Three members of the Commission shall constitute a quorum for the transaction
of business.
(B)A
vacancy on the Commission shall not impair the authority of a quorum of the
Commission to perform the functions and exercise the powers of the
Commission.
(g)
(1)Each member of the Commission who is not an officer or
employee of the Federal Government shall be compensated at the daily rate of
basic pay for level IV of the Executive Schedule for each day during which such
member is engaged in performing a function of the Commission.
(2)A
member of the Commission shall be paid travel, per diem, and other necessary
expenses under subchapter I of chapter 57 of title 5, United States Code, while
traveling away from such member’s home or regular place of business in the
performance of the duties of the Commission.
(h)The
Commission shall terminate 90 days after the date of the submission of its
report pursuant to subsection (b).