[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1828 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1828

  To protect and provide resources for the Social Security System, to 
 reserve surpluses to protect, strengthen, and modernize the Medicare 
                    Program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 28, 1999

Mr. Moynihan (by request) introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To protect and provide resources for the Social Security System, to 
 reserve surpluses to protect, strengthen, and modernize the Medicare 
                    Program, 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. SHORT TITLE.

    This Act may be cited as the ``Strengthening Social Security and 
Medicare Act of 1999''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that:
            (1) The Social Security system is one of the cornerstones 
        of American national policy and has allowed a generation of 
        Americans to retire with dignity. For 30 percent of all senior 
        citizens, Social Security provides almost 90 percent of their 
        retirement income. For 66 percent of all senior citizens, 
        Social Security benefits provide over half of their retirement 
        income. Poverty rates among the elderly are at the lowest level 
        since the United States began to keep poverty statistics, due 
        in large part to the Social Security system. The Social 
        Security system, together with the additional protections 
        afforded by the Medicare system, have been an outstanding 
        success for past and current retirees and must be preserved for 
        future retirees.
            (2) The long-term solvency of the Social Security and 
        Medicare trust funds is not assured. There is an estimated 
        long-range actuarial deficit in the Social Security trust 
        funds. According to the 1999 report of the Board of Trustees of 
        the Social Security trust funds, the accumulated balances in 
        the Federal Old-Age and Survivors Insurance Trust Fund and the 
        Federal Disability Insurance Trust Fund are currently projected 
        to become unable to pay benefits in full on a timely basis 
        starting in 2034. The Medicare system faces more immediate 
        financial shortfalls, with the Hospital Insurance Trust Fund 
        projected to become exhausted in 2015.
            (3) In addition to preserving Social Security and Medicare, 
        the Congress and the President have a responsibility to future 
        generations to reduce the Federal debt held by the public. 
        Significant debt reduction will contribute to the economy and 
        improve the Government's ability to fulfill its 
        responsibilities and to face future challenges, including 
        preserving and strengthening Social Security and Medicare.
            (4) The Federal Government is now in sound financial 
        condition. The Federal budget is projected to generate 
        significant surpluses. In fiscal years 1998 and 1999, there 
        were unified budget surpluses--the first consecutive surpluses 
        in more than 40 years. Over the next 15 years, the Government 
        projects the on-budget surplus, which excludes Social Security, 
        to total $2.9 trillion. The unified budget surplus (including 
        Social Security) is projected by the Government to total $5.9 
        trillion over the next 15 years.
            (5) The surplus, excluding Social Security, offers an 
        unparalleled opportunity to: preserve Social Security; protect, 
        strengthen, and modernize Medicare; and significantly reduce 
        the Federal debt held by the public, for the future benefit of 
        all Americans.
    (b) Purpose.--It is the purpose of this Act to protect Social 
Security surplus for debt reduction, to extend the solvency of Social 
Security, and to set aside a reserve to be used to protect, strengthen, 
and modernize Medicare.

SEC. 3. ADDITIONAL APPROPRIATIONS TO FEDERAL OLD-AGE AND SURVIVORS 
              INSURANCE TRUST FUND AND FEDERAL DISABILITY INSURANCE 
              TRUST FUND.

    (a) Purpose.--The purpose of this section is to assure that the 
interest savings on the debt held by the public achieved as a result of 
Social Security surpluses from 2000 to 2015 are dedicated to Social 
Security solvency.
    (b) Additional Appropriations to Trust Fund.--Section 201 of the 
Social Security Act is amended by adding at the end the following new 
subsection:
    ``(n) Additional Appropriations to Trust Funds.--
            ``(1) In addition to the amounts appropriated to the Trust 
        Funds under subsections (a) and (b), there is hereby 
        appropriated to the Trust Funds, out of any moneys in the 
        Treasury not otherwise appropriated--
                    ``(A) for the fiscal year ending September 30, 
                2011, and for each fiscal year thereafter through the 
                fiscal year ending September 30, 2016, an amount equal 
                to the prescribed amount for the fiscal year; and
                    ``(B) for the fiscal year ending September 30, 
                2017, and for each fiscal year thereafter through the 
                fiscal year ending September 30, 2044, an amount equal 
                to the prescribed amount for the fiscal year ending 
                September 30, 2016.
            ``(2) The amount appropriated by paragraph (1) in each 
        fiscal year shall be transferred in equal monthly installments.
            ``(3) The amount appropriated by paragraph (1) in each 
        fiscal year shall be allocated between the Trust Funds in the 
        same proportion as the taxes imposed by chapter 21 (other than 
        sections 3101(b) and 3111(b)) of title 26 with respect to wages 
        (as defined in section 3121 of title 26) reported to the 
        Secretary of the Treasury or his delegate pursuant to subtitle 
        F of title 26, and the taxes imposed by chapter 2 (other than 
        section 1401(b)) of title 26 with respect to self-employment 
        income (as defined in section 1402 of title 26) reported to the 
        Secretary of the Treasury or his delegate pursuant to subtitle 
        F of title 26, are allocated between the Trust Funds in the 
        calendar year that begins in the fiscal year.
            ``(4) For purposes of this subsection, the `prescribed 
        amount' for any fiscal year shall be determined by multiplying:
                    ``(A) the excess of:
                            ``(i) the sum of:
                                    ``(I) the face amount of all 
                                obligations of the United States held 
                                by the Trust Funds on the last day of 
                                the fiscal year immediately preceding 
                                the fiscal year of determination 
                                purchased with amounts appropriated or 
                                credited to the Trust Funds other than 
                                any amount appropriated under paragraph 
                                (1); and
                                    ``(II) the sum of the amounts 
                                appropriated under paragraph (1) and 
                                transferred under paragraph (2) through 
                                the last day of the fiscal year 
                                immediately preceding the fiscal year 
                                of determination, and an amount equal 
                                to the interest that would have been 
                                earned thereon had those amounts been 
                                invested in obligations of the United 
                                States issued directly to the Trust 
                                Funds under subsections (d) and (f),
        ``over--
                            ``(ii) the face amount of all obligations 
                        of the United States held by the Trust Funds on 
                        September 30, 1999,
        ``times--
                    ``(B) a rate of interest determined by the 
                Secretary of the Treasury, at the beginning of the 
                fiscal year of determination, as follows:
                            ``(i) if there are any marketable interest-
                        bearing obligations of the United States then 
                        forming a part of the public debt, a rate of 
                        interest determined by taking into 
                        consideration the average market yield 
                        (computed on the basis of daily closing market 
                        bid quotations or prices during the calendar 
                        month immediately preceding the determination 
                        of the rate of interest) or such obligations; 
                        and
                            ``(ii) if there are no marketable interest-
                        bearing obligations of the United States then 
                        forming a part of the public debt, a rate of 
                        interest determined to be the best 
                        approximation of the rate of interest described 
                        in clause (i), taking into consideration the 
                        average market yield (computed on the basis of 
                        daily closing market bid quotations or prices 
                        during the calendar month immediately preceding 
                        the determination of the rate of interest) on 
                        investment grade corporate obligations selected 
                        by the Secretary of the Treasury, less an 
                        adjustment made by the Secretary of the 
                        Treasury to take into account the difference 
                        between the yields on corporate obligations 
                        comparable to the obligations selected by the 
                        Secretary of the Treasury and yields on 
                        obligations of comparable maturities issued by 
                        risk-free government issuers selected by the 
                        Secretary of the Treasury.''.

SEC. 4. PROTECTION OF SOCIAL SECURITY SURPLUSES.

    (a) Points of Order To Protect Social Security Surpluses.--Section 
312 of the Congressional Budget Act of 1974 is amended by adding at the 
end the following new subsection:
    ``(g) Points of Order To Protect Social Security Surpluses.--
            ``(1) Concurrent resolutions on the budget.--It shall not 
        be in order in the House of Representatives or the Senate to 
        consider any concurrent resolution on the budget, or conference 
report thereon or amendment thereto, that would set forth an on-budget 
deficit for any fiscal year.
            ``(2) Subsequent legislation.--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 
        if--
                    ``(A) the enactment of that bill or resolution as 
                reported;
                    ``(B) the adoption and enactment of that amendment; 
                or
                    ``(C) the enactment of that bill or resolution in 
                the form recommended in that conference report,
        would cause or increase an on-budget deficit for any fiscal 
        year.
            ``(3) Budget resolution baseline.--(A) For purposes of this 
        section, `set forth an on-budget deficit', with respect to a 
        budget resolution, means the resolution sets forth an on-budget 
        deficit for a fiscal year and the baseline budget projection of 
        the surplus or deficit for such fiscal year on which such 
        resolution is based projects an on-budget surplus, on-budget 
        balance, or an on-budget deficit that is less than the deficit 
        set forth in the resolution.
            ``(B) For purposes of this section `cause or increase an 
        on-budget deficit' with respect to legislation means causes or 
        increases an on-budget deficit relative to the baseline budget 
        projection.
            ``(C) For purposes of this section, the term `baseline 
        budget projection' means the projection described in section 
        257 of the Balanced Budget and Emergency Deficit Control Act of 
        1985 of current year levels of outlays, receipts, and the 
        surplus or deficit into the budget year and future years, 
        except that--
                    ``(i) if outlays for programs subject to 
                discretionary appropriations are subject to 
                discretionary statutory spending limits, such outlays 
                shall be projected at the level of any applicable 
                current adjusted statutory discretionary spending 
                limits;
                    ``(ii) if outlays for programs subject to 
                discretionary appropriations are not subject to 
                discretionary spending limits, such outlays shall be 
                projected as required by section 257 beginning in the 
                first fiscal year following the last fiscal year in 
                which such limits applied; and
                    ``(iii) with respect to direct spending or receipts 
                legislation previously enacted during the current 
                calendar year and after the most recent baseline 
                estimate pursuant to section 257 of the Balanced Budget 
                and Emergency Deficit Control Act of 1995, the net 
                extent (if any) by which all such legislation is more 
                than fully paid for in one of the applicable time 
                periods shall count as a credit for that time period 
                against increases in direct spending or reductions in 
                net revenue.''.
    (b) Content of Concurrent Resolution on the Budget.--Section 301(a) 
of the Congressional Budget Act of 1974 is amended by redesignating 
paragraphs (6) and (7) as paragraphs (7) and (8), respectively, and by 
inserting after paragraph (5) the following new paragraph:
            ``(6) the receipts, outlays, and surplus or deficit in the 
        Federal Old-Age and Survivors Insurance Trust Fund and the 
        Federal Disability Insurance Trust Fund, combined, established 
        by title II of the Social Security Act;''.
    (c) Super Majority Requirement.--
            (1) Section 904(c)(1) of the Congressional Budget Act of 
        1974 is amended by inserting ``312(g),'' after ``310(d)(2),''.
            (2) Section 904(d)(2) of the Congressional Budget Act of 
        1974 is amended by inserting ``312(g),'' after ``310(d)(2),''.

SEC. 5. PROTECTION OF MEDICARE.

    (a) Points of Order To Protect Medicare.--
            (1) Section 301 of the Congressional Budget Act of 1974 is 
        amended by adding at the end the following:
    ``(j) Point of Order To Protect Medicare.--
            ``(1) In general.--It shall not be in order in the House of 
        Representatives or the Senate to consider any concurrent 
        resolution on the budget (or amendment, motion, or conference 
        report on the resolution) that would decrease the on-
budget surplus for the total of the period of fiscal years 2000 through 
2009 below the level of the Medicare surplus reserve for those fiscal 
years as calculated in accordance with section 3(11).
            ``(2) Inapplicability.--This subsection shall not apply to 
        legislation that--
                    ``(A) appropriates a portion of the Medicare 
                reserve for new amounts for prescription drug benefits 
                under the Medicare program as part of or subsequent to 
                legislation extending the solvency of the Medicare 
                Hospital Insurance Trust Fund; or
                    ``(B) appropriates new amounts from the general 
                fund to the Medicare Hospital Insurance Trust Fund.''.
            (2) Section 311(a) of the Congressional Budget Act of 1974 
        is amended by adding at the end the following:
            ``(4) Enforcement of the medicare surplus reserve.--
                    ``(A) In general.--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 together with associated 
                interest costs would decrease the on-budget surplus for 
                the total of the period of fiscal years 2000 through 
                2009 below the level of the Medicare surplus reserve 
                for those fiscal years as calculated in accordance with 
                section 3(11).''.
                    ``(B) Inapplicability.--This paragraph shall not 
                apply to legislation that--
                            ``(i) appropriates a portion of the 
                        Medicare reserve for new amounts for 
                        prescription drug benefits under the Medicare 
                        program as part of or subsequent to legislation 
                        extending the solvency of the Medicare Hospital 
                        Insurance Trust Fund; or
                            ``(ii) appropriates new amounts from the 
                        general fund to the Medicare Hospital Insurance 
                        Trust Fund.
    (b) Definition.--Section 3 of the Congressional Budget Act of 1974 
is amended by adding at the end the following:
            ``(11) The term `Medicare surplus reserve' means one-third 
        of any on-budget surplus for the total of the period of the 
        fiscal years 2000 through 2009, as estimated by the 
        Congressional Budget Office in the most recent initial report 
        for a fiscal year pursuant to section 202(e).''.
    (c) Super Majority Requirement.--
            (1) Section 904(c)(2) of the Congressional Budget Act of 
        1974 is amended by inserting ``301(j),'' after ``301(i),''.
            (2) Section 904(d)(3) of the Congressional Budget Act of 
        1974 is amended by inserting ``301(j),'' after ``301(i),''.

SEC. 6. EXTENSION OF DISCRETIONARY SPENDING LIMITS.

    (a) Extension of Limits--Section 251(b)(2) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended, in the matter 
before paragraph (A), by deleting ``2002'', and inserting ``2014''.
    (b) Extension of Amounts.--Section 251(c) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended by striking 
paragraphs (4), (5), (6) and (7), and inserting the following:
            ``(4) With respect to fiscal year 2000,
                    ``(A) for the discretionary category: 
                $535,368,000,000 in new budget authority and 
                $543,257,000,000 in outlays;
                    ``(B) for the highway category: $24,574,000,000 in 
                outlays;
                    ``(C) for the mass transit category: $4,117,000,000 
                in outlays; and
                    ``(D) for the violent crime reduction category: 
                $4,500,000,000 in new budget authority and 
                $5,564,000,000 in outlays;
            ``(5) With respect to fiscal year 2001,
                    ``(A) for the discretionary category: 
                $573,004,000,000 in new budget authority and 
                $564,931,000,000 in outlays;
                    ``(B) for the highway category: $26,234,000,000 in 
                outlays; and
                    ``(C) for the mass transit category: $4,888,000,000 
                in outlays;
            ``(6) With respect to fiscal year 2002,
                    ``(A) for the discretionary category: 
                $584,754,000,000 in new budget authority and 
                $582,516,000,000 in outlays;
                    ``(B) for the highway category: $26,655,000,000 in 
                outlays; and
                    ``(C) for the mass transit category: $5,384,000,000 
                in outlays;
            ``(7) With respect to fiscal year 2003,
                    ``(A) for the discretionary category: 
                $590,800,000,000 in new budget authority and 
                $587,642,000,000 in outlays;
                    ``(B) for the highway category: $27,041,000,000 in 
                outlays; and
                    ``(C) for the mass transit category: $6,124,000,000 
                in outlays;
            ``(8) With respect to fiscal year 2004, for the 
        discretionary category: $604,319,000,000 in new budget 
        authority and $634,039,000,000 in outlays;
            ``(9) With respect to fiscal year 2005, for the 
        discretionary category: $616,496,000,000 in new budget 
        authority and $653,530,000,000 in outlays;
            ``(10) With respect to fiscal year 2006, for the 
        discretionary category: $630,722,000,000 in new budget 
        authority and $671,530,000,000 in outlays;
            ``(11) With respect to fiscal year 2007, for the 
        discretionary category: $644,525,000,000 in new budget 
        authority and $687,532,000,000 in outlays;
            ``(12) With respect to fiscal year 2008, for the 
        discretionary category: $663,611,000,000 in new budget 
        authority and $704,534,000,000 in outlays; and
            ``(13) With respect to fiscal year 2009, for the 
        discretionary category: $678,019,000,000 in new budget 
        authority and $721,215,000,000 in outlays,
        ``as adjusted in strict conformance with subsection (b).
    ``With respect to fiscal year 2010 and each fiscal year thereafter, 
the term `discretionary spending limit' means, for the discretionary 
category, the baseline amount calculated pursuant to the requirements 
of section 257(c), as adjusted in strict conformance with subsection 
(b).''.

SEC. 7. EXTENSION AND CLARIFICATION OF PAY-AS-YOU-GO REQUIREMENT.

    Section 252 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended--
            (1) in subsection (a), by striking ``October 1, 2002'' and 
        inserting ``October 1, 2014'' and by adding ``or decreases the 
        surplus'' after ``increases the deficit'';
            (2)(A) in paragraph (1) of subsection (b), by striking 
        ``October 1, 2002'' and inserting ``October 1, 2014'' and by 
        adding ``or any net surplus decrease'' after ``any net deficit 
        increase'';
            (B) in paragraph (2) of subsection (b)--
                    (i) in the header by adding ``or surplus decrease'' 
                after ``deficit increase'';
                    (ii) in the matter before subparagraph (A), by 
                adding ``or surplus'' after ``deficit''; and
                    (iii) in subparagraph (C), by adding ``or surplus'' 
                after ``net deficit''; and
            (C) in the header of subsection (c), by adding ``or surplus 
        decrease'' after ``deficit increase''.

SEC. 8. EXTENSION OF BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT.

    Section 275(b) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by striking ``September 30, 2002'' and inserting 
``September 30, 2014'' and by striking ``September 30, 2006'' and 
inserting ``September 30, 2018''.

SEC. 9. EXTENSION OF SOCIAL SECURITY FIREWALL IN CONGRESSIONAL BUDGET 
              ACT.

    Section 904(e) of the Congressional Budget Act of 1974 is amended 
by striking ``September 30, 2002'' and inserting ``September 30, 
2014''.

SEC. 10. PROTECTION OF SOCIAL SECURITY INTEREST SAVINGS TRANSFERS.

    (a) Definition of Deficit and Surplus Under Budget Enforcement 
Act.--Section 250(c) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended in paragraph (1) by adding 
```surplus','' before ``and `deficit'''.
    (b) Reduction or Reversal of Social Security Transfers Not To Be 
Counted as Pay-As-You-Go Offset.--Any legislation that would reduce, 
reverse or repeal the transfers to the Federal Old-Age and Survivors 
Insurance Trust Fund and the Federal Disability Insurance Trust Fund 
made by section 201(n) of the Social Security Act, as added by section 
3 of this Act, shall not be counted on the pay-as-you-go scorecard and 
shall not be included in any pay-as-you-go estimates made by the 
Congressional Budget Office or the Office of Management and Budget 
under section 252 of the Balanced Budget and Emergency Deficit Control 
Act of 1985.
    (c) Conforming Change.--Section 252 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended, in paragraph (4) of 
subsection (d), by--
            (1) striking ``and'' after subparagraph (A),
            (2) striking the period after the subparagraph (B) and 
        inserting ``; and'', and
            (3) adding the following:
                    ``(C) provisions that reduce, reverse or repeal 
                transfers under Section 201(n) of the Social Security 
                Act.''.

SEC. 11. CONFORMING CHANGES.

    (a) Reports.--Section 254 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended--
            (1) in paragraph (3) of subsection (c),
                    (A) in subparagraph (A), by adding ``or surplus'' 
                after ``deficit'';
                    (B) in subparagraph (B), by adding ``or surplus'' 
                after ``deficit''; and
                    (C) in subparagraph (C), by adding ``or surplus 
                decrease'' after ``deficit increase'';
            (2) in paragraph (4) of subsection (f), by adding ``or 
        surplus'' after ``deficit''; and
            (3) in subparagraph (A) of paragraph (2) of subsection (f), 
        by striking ``2002'' and inserting ``2009''.
    (b) Orders.--Section 258A(a) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended in the first sentence by adding 
``or increase the surplus'' after ``deficit''.
    (c) Process.--Section 258(C)(a) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended--
            (1) in paragraph (2), by adding ``or surplus increase'' 
        after ``deficit reduction'';
            (2) in paragraph (3), by adding ``or increase in the 
        surplus'' after ``reduction in the deficit''; and
            (3) in paragraph (4), by adding ``or surplus increase'' 
        after ``deficit reduction''.
                                 <all>