[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3822 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3822

 To amend title II of the Social Security Act to require investment of 
the Social Security trust funds in marketable securities, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 7, 1998

   Mr. Smith of Michigan (for himself and Mr. Minge) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend title II of the Social Security Act to require investment of 
the Social Security trust funds in marketable securities, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. INVESTMENT OF THE SOCIAL SECURITY TRUST FUNDS IN MARKETABLE 
              SECURITIES.

    Section 201(d) of the Social Security Act (42 U.S.C. 401(d)) is 
amended to read as follows:
    ``(d)(1) It shall be the duty of the Managing Trustee to invest 
such portion of the Trust Funds as is not, in the Managing Trustee's 
judgment, required to meet current withdrawals.
    ``(2) Investments made pursuant to this subsection may be made only 
in interest-bearing obligations of the United States or in obligations 
guaranteed as to both principal and interest by the United States. For 
such purpose, such obligations may be acquired on original issue at the 
issue price or by purchase of outstanding obligations at the market 
price.
    ``(3) Nothing in this subsection or any other provision of law 
shall be construed to include within the authority of the Federal 
Government (including authority under chapter 31 of title 31, United 
States Code) to issue public-debt obligations solely for purchase by 
the Trust Funds.
    ``(4) The Managing Trustee shall ensure, to the extent practicable, 
that such obligations in which investments are made under this 
subsection--
            ``(A) have maturities fixed with due regard for the needs 
        of the Trust Funds,
            ``(B) bear 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
            ``(C) are subject to an option to redeem such obligations 
        at any time at the purchase price.''.

SEC. 2. DEFINING A BALANCED BUDGET.

    Any description of, or reference to, surplus or deficit totals for 
the United States Government in any document or other material prepared 
by the Office of Management and Budget or by the Congressional Budget 
Office shall not include the outlays and revenue totals of the Federal 
Old-Age and Survivors Insurance Trust Fund and the Federal Disability 
Insurance Trust Fund or the related provisions of the Internal Revenue 
Code of 1986.

SEC. 3. EFFECTIVE DATE.

    The amendment made by section 1 shall apply with respect to fiscal 
years after fiscal year 1998.
                                 <all>