[Congressional Record Volume 145, Number 149 (Thursday, October 28, 1999)]
[Senate]
[Pages S13425-S13428]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MOYNIHAN (by request):
  S. 1828. A bill to protect and provide resources for the Social 
Security System, to reserve surpluses to protect, strengthen and 
modernize the Medicare

[[Page S13426]]

Program, and for other purposes; to the Committee on Finance.


        the strengthen social security and medicare act of 1999

  Mr. MOYNIHAN. Mr. President, I ask unanimous consent that the 
following letter of transmittal from the White House be printed in the 
Record, following the text of the bill.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1828

       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 ``Strengthen 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 benefits provide 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 the 
     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 Appropriation to Trust Funds.--Section 201 
     of the Social Security Act is amended by adding at the end 
     the following new subsection:
       ``(n) Additional Appropriation 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, and amount equal to the prescribed 
     amount for the fiscal year ending September 30, 2016.
       ``(2) The amount appropriated by paragraph (1) in 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 
     Sates 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 
     pubic 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) on 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 set forth an on-
     budget deficit for a fiscal year and the baseline budget 
     project 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 project.
       ``(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

[[Page S13427]]

     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--
       (a) in subsection (a), by striking ``October 1, 2002'' and 
     inserting ``October 1, 2014'' and by adding ``or decreases 
     the surplus'' after ``increases the deficit'';
       (b)(1) 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'';
       (2) 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
       (3) 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),

[[Page S13428]]

       (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''.
                                  ____

                                                  The White House,


                                Office of the Press Secretary,

                                                 October 26, 1999.
To the Congress of the United States:
  I transmit herewith for your immediate consideration a legislative 
proposal entitled the ``Strengthen Social Security and Medicare Act of 
1999.''
  The Social Security system is one of the cornerstones of American 
national policy and together with the additional protections afforded 
by the Medicare system, has helped provide retirement security for 
millions of Americans over the last 60 years. However, the long-term 
solvency of the Social Security and Medicare trust funds is not 
guaranteed. The Social Security trust fund is currently expected to 
become insolvent starting in 2034 as the number of retired workers 
doubles. The Medicare system also faces significant financial 
shortfalls, with the Hospital Insurance Trust Fund projected to become 
exhausted in 2015. We need to take additional steps to strengthen 
Social Security and Medicare for future generations of Americans.
  In addition to preserving Social Security and Medicare, the Congress 
and the President have a responsibility to future generations to reduce 
the debt held by the public. Paying down the debt will produce 
substantial interest savings, and this legislation proposes to devote 
these entirely to Social Security after 2010. At the same time, by 
contributing to the growth of the overall economy debt reduction will 
improve the Government's ability to fulfill its responsibilities and to 
face future challenges, including preserving and strengthening Social 
Security and Medicare.
  The enclosed bill would help achieve these goals by devoting the 
entire Social Security surpluses to debt reduction, extending the 
solvency of Social Security to 2050, protecting Social Security and 
Medicare funds in the budget process, reserving one-third of the non-
Social Security surplus to strengthen and modernize Medicare, and 
paying down the debt by 2015. It is clear and straightforward 
legislation that would strengthen and preserve Social Security and 
Medicare for our children and grandchildren. The bill would:
  Extend the life of Social Security from 2034 to 2050 by reinvesting 
the interest savings from the debt reduction resulting from Social 
Security surpluses.
  Establish a Medicare surplus reserve equal to one-third of any on-
budget surplus for the total of the period of fiscal years 2000 through 
2009 to strengthen and modernize Medicare.
  Add a further protection for Social Security and Medicare by 
extending the budget enforcement rules that have provided the 
foundation for our fiscal discipline, including the discretionary caps 
and pay-as-you-go budget rules.
  I urge the prompt and favorable consideration of this proposal.
                                                  William J. Clinton.  
  The White House, October 26, 1999.

                          ____________________