119-hr1221

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1221 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 1221

To amend titles II and XVIII of the Social Security Act to establish a 
 Social Security Surplus Protection Account in the Federal Old-Age and 
Survivors Insurance Trust Fund to hold the Social Security surplus and 
a Medicare Surplus Protection Account in the Federal Hospital Insurance 
 Trust Fund to hold the Medicare surplus, to provide for suspension of 
 investment of amounts held in such Accounts until enactment of 
 legislation providing for investment of the Trust Funds in investment 
vehicles other than obligations of the United States, and to establish 
 a Social Security and Medicare Part A Investment Commission to make 
 recommendations for alternative forms of investment of the Social 
 Security and Medicare surpluses.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 February 11, 2025

 Mr. Walberg introduced the following bill; which was referred to the 
 Committee on Ways and Means

_______________________________________________________________________

 A BILL

To amend titles II and XVIII of the Social Security Act to establish a 
 Social Security Surplus Protection Account in the Federal Old-Age and 
Survivors Insurance Trust Fund to hold the Social Security surplus and 
a Medicare Surplus Protection Account in the Federal Hospital Insurance 
 Trust Fund to hold the Medicare surplus, to provide for suspension of 
 investment of amounts held in such Accounts until enactment of 
 legislation providing for investment of the Trust Funds in investment 
vehicles other than obligations of the United States, and to establish 
 a Social Security and Medicare Part A Investment Commission to make 
 recommendations for alternative forms of investment of the Social 
 Security and Medicare surpluses.

 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 ``Social Security and Medicare Lock-
Box Act''.

SEC. 2. INTERIM PROTECTIONS FOR SOCIAL SECURITY TRUST FUND SURPLUS.

 

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'';

    (2) by striking ``

    (1) on original issue at the issue price, 
 or

    (2) '' and inserting ``
        (A) on original issue at the issue 
 price, or
        (B) ''; and

    (3) 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 the end of each fiscal year after fiscal year 
2025, 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 by 
 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 2025, for which a provision of Federal law 
takes effect and authorizes, for amounts in the Trust Fund, an 
investment vehicle other than obligations of the United States.
 ``
            (ii) A provision of Federal law shall be deemed to meet the 
requirements of clause
            (i) if such provision includes 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.'.''.

SEC. 3. INTERIM PROTECTIONS FOR MEDICARE PART A TRUST FUND SURPLUS.

    (a) In General.--

Section 1817
            (c) of the Social Security Act (42 
U.S.C. 1395i
            (c) ) is amended--

    (1) by striking ``It shall be the duty'' and inserting 
 ``

    (1) Except as provided in paragraph

    (2) , it shall be the 
 duty'';

    (2) by striking ``

    (1) on original issue at the issue price, 
 or

    (2) '' and inserting ``
        (A) on original issue at the issue 
 price, or
        (B) ''; and

    (3) by adding at the end the following new paragraph:
 ``

    (2)
        (A) There is established in the Federal Hospital Insurance 
Trust Fund a Medicare Surplus Protection Account (in this paragraph 
referred to as the `Account'). As soon as practicable after the end of 
each fiscal year after fiscal year 2025, the Managing Trustee shall 
transfer to the Account, from amounts otherwise available in the Trust 
Fund, amounts equivalent to the Medicare part A 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 `Medicare part A 
surplus' means, for any fiscal year, the excess, if any, of--
 ``
            (i) the sum of--
 ``
            (I) the taxes imposed for such fiscal year by 
 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 sections to such wages; and
 ``
            (II) the taxes imposed by 

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 by applying the 
 applicable rate of tax under such 

section 1401

    (b) to 
 such self-employment income; 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

    (f) of this section (or 
 

section 201

    (g) ) 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 2025, for which a provision of Federal law 
takes effect and authorizes, for amounts in the Trust Fund, an 
investment vehicle other than obligations of the United States.
 ``
            (ii) A provision of Federal law shall be deemed to meet the 
requirements of clause
            (i) if such provision includes the following: 
`This Act shall be considered to be a provision of Federal law meeting 
the requirements of 

section 1817
            (c) (2)
            (D) 
            (i) of the Social Security 
Act.'.''.

SEC. 4. SOCIAL SECURITY AND MEDICARE PART A INVESTMENT COMMISSION.

    (a) Establishment.--There is established in the executive branch of 
the Government a Social Security and Medicare Part A Investment 
Commission (in this section referred to as the ``Commission'').

    (b) Study and Report.--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 and the Federal Hospital 
Insurance Trust Fund, other than investment in the form of obligations 
of the United States. Not later than October 1, 2025, 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) Composition.--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 member appointed by the minority leader of the 
 Senate.
            (d) Membership Requirements.--Members of the Commission shall have 
substantial experience, training, and expertise in the management of 
financial investments and pension benefit plans.

    (e) Length of Appointments.--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) Meetings.--The Commission shall meet--
        (A) not less than once during each month; and
        (B) at additional times at the call of the 
 Chairman.

    (2) Exercise of powers.--
        (A) In general.--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) Vacancies.--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) Compensation.--

    (1) In general.--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) Expenses.--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) Termination.--The Commission shall terminate 90 days after the 
date of the submission of its report pursuant to subsection

    (b) .
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