II 109th CONGRESS 1st Session S. 1730 IN THE SENATE OF THE UNITED STATES September 20, 2005 Mr. Voinovich (for himself and Mr. Conrad) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To establish the Trust Fund Administration to invest in non-Federal Government debt instrument index funds all Federal trust fund revenues transferred to the Federal Government upon the issuance of special rate Treasury obligations to such trust funds, and for other purposes.

1.

Short title

This Act may be cited as the Truth in Budgeting Act of 2005.

2.

Trust Fund Administration

(a)

Establishment

The Secretary of the Treasury shall establish in the Department of the Treasury an office to be known as the Trust Fund Administration. (b)

Functions

The Trust Fund Administration— (1)shall receive all revenues derived from the sale and issuance of any special rate Treasury obligation to any Federal trust fund, (2)shall invest such revenues in non-Federal Government debt instrument index funds or in an index fund established by the Trust Fund Administration which reflects the rate of return in the overall non-Federal Government debt instrument market, (3)shall not invest such revenues in any stocks or other forms of equity ownership or in any debt instrument issued by a foreign government or by a corporation registered in a foreign nation, (4)except as provided in paragraph (5), shall maintain such investments and resulting earnings for the sole purpose of redeeming any outstanding special rate Treasury obligations, (5)to the extent such investments and resulting earnings are not needed to redeem such Treasury obligations, shall transfer the excess amount to meet the unfunded current withdrawal obligations (if any) of the Trust Funds described in section 201(c) of the Social Security Act, and (6)shall provide to Congress an annual report on— (A)revenues received, investments, current assets, Treasury obligations redeemed, and amounts transferred under paragraph (5), and (B)the internal accounting and administrative control systems of the Trust Fund Administration. (c)

Director; deputy director

(1)

Director

The Trust Fund Administration shall be under the supervision of a director appointed by the President as a noncareer appointee (as defined in section 3132(a)(7) of title 5, United States Code). (2)

Deputy director

The director of the Trust Fund Administration shall be assisted by a deputy director appointed by the Secretary of the Treasury as a career appointee (as defined in section 3132(a)(4) of such title). (d)

Annual review

The General Accountability Office shall review the operations of the Trust Fund Administration on an annual basis and certify to Congress that the investments of the Trust Fund Administration are— (1)in compliance with guidelines established by the Securities and Exchange Commission, (2)free of political influence, and (3)designed to maintain the security of the investment pool while maximizing investment return.