1.This Act may be cited as the
Savings for Seniors Act of
2009
.
2.Interim
protections for social security trust fund surplus
(a)Section 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 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 2011, 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 be 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 2011, for which a provision
of law 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
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.Social Security
Investment Commission
(a)There
is established in the executive branch of the Government a Social Security
Investment 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, 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, 2011, 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 members
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).