,i #aafth ,,congress #ast ,session ,h4 ,r4 #abae ,,in ,,the ,,house ,,of ,,representatives ,february #ac1 #bjai,mr4 ,walberg introduced the following bill2 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 surplus1 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 ,states1 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 surpluses4 #a4 ,short title2 findings 7a7 ,short title ,this ,act may be cited as the ,social ,security and ,medicare ,lock-,box ,act4 7b7 ,findings regarding social security and ,medicare part ,a ,the ,congress finds the following3 7#a7 7,a7 ,long-term projections show serious problems facing the fiscal health of the trust funds associated with ,social ,security and ,medicare ,hospital ,insurance4 7,b7 ,according to the #bjah ,annual ,report of the ,board of ,trustees of the ,federal ,old-,age and ,survivors ,insurance and ,federal ,disability ,insurance ,trust ,funds1 the assets of the combined ,federal ,old-,age and ,survivors ,insurance ,trust ,fund and the ,federal ,disability ,insurance ,trust ,fund will be exhausted by #bjcd1 and the ,disability ,insurance ,trust ,fund alone will be depleted by #bjcb4 7,c7 ,according to the #bjah ,annual ,report of the ,board of ,trustees of the ,federal ,hospital ,insurance and ,federal ,supplementary ,medical ,insurance ,trust ,funds1 the assets of the ,federal ,hospital ,insurance ,trust ,fund will be exhausted by #bjbf4 7#b7 7,a7 ,the ,trustees of these trust funds strongly encourage action to protect the solvency of the trust funds4 7,b7 ,in their message to the public1 included in the #bjah ,annual ,reports1 the ,social ,security and ,medicare ,boards of ,trustees wrote1 ,the ,trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes gradually and give workers and beneficiaries time to adjust to them4 ,implementing changes sooner rather than later would allow more generations to share in the needed revenue increases or reductions in scheduled benefits and could preserve more trust fund reserves to help finance future benefits4 ,social ,security will play a critical role in the lives of #fc million beneficiaries and #age million covered workers and their families during #bjah4 ,with informed discussion1 creative thinking1 and timely legislative action1 ,social ,security can continue to protect future generations44 7#c7 ,social ,security and ,medicare are meant to provide a secure and stable base so that older ,americans can live in dignity4 7#d7 ,protecting the future surpluses of these trust funds can only occur when meaningful reform has been enacted by ,congress4 ,any path to solvency must include the protection of future surpluses4 #b4 ,interim protections for ,social ,security trust fund surplus ,section #bja7;d7 of the ,social ,security ,act 7#db ,u4,s4,c4 #djb7;d77 is amended-- 7#a7 by striking ,it shall be the duty and inserting 7#a7 ,except as provided in paragraph 7#b71 it shall be the duty2 7#b7 by striking 7#a7 on original issue at the issue price1 or 7#b7 and inserting 7,a7 on original issue at the issue price1 or 7,b72 and 7#c7 by adding at the end the following new paragraph3 7#b7 7,a7 ,there is established in the ,federal ,old-,age and ,survivors ,insurance ,trust ,fund a ,social ,security ,surplus ,protection ,account4 ,as soon as practicable after the end of each fiscal year after fiscal year #bjbj1 the ,managing ,trustee shall transfer to the ,account1 from amounts otherwise available in the ,trust ,fund1 amounts equivalent to the social security surplus for such fiscal year4 ,such amounts shall be transferred from time to time to the ,account1 such amounts to be determined on the basis of estimates by the ,managing ,trustee1 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 amount4 7,b7 ,for purposes of subparagraph 7,a71 the term social security surplus means1 for any fiscal year1 the excess1 if any1 of-- 7i7 the sum of-- 7,i7 the taxes imposed for such fiscal year by chapter #ba 7other than sections #caja7;b7 and #caaa7;b77 of the ,internal ,revenue ,code of #aihf with respect to wages 7as defined in section #caba of such ,code7 reported to the ,secretary of the ,treasury or his delegates pursuant to subtitle ,f of such ,code1 as determined by the ,secretary of the ,treasury by applying the applicable rates of tax under such chapter #ba 7other than sections #caja7;b7 and #caaa7;b77 to such wages1 less the amounts specified in clause 7#a7 of subsection 7b7 of this section for such fiscal year2 7,,ii7 the taxes imposed by chapter #b 7other than section #adja7;b77 of the ,internal ,revenue ,code of #aihf with respect to self-employment income 7as defined in section #adjb of such ,code7 reported to the ,secretary of the ,treasury on tax returns under subtitle ,f of such ,code1 as determined by the ,secretary of the ,treasury by applying the applicable rate of tax under such chapter 7other than section #adja7;b77 to such self-employment income1 less the amounts specified in clause 7#b7 of subsection 7b7 of this section for such fiscal year2 and 7,,iii7 the amount equivalent to the aggregate increase in tax liabilities under chapter #a of the ,internal ,revenue ,code of #aihf which is attributable to the application of sections #hf and #hga7;a77#c7 of such ,code to payments from the ,trust ,fund2 over 7ii7 the sum of-- 7,i7 benefits paid from the ,trust ,fund during the fiscal year2 and 7,,ii7 amounts authorized to be made available from the ,trust ,fund under subsection 7g7 of this section which are paid from the ,trust ,fund during such fiscal year4 7,c7 ,notwithstanding paragraph 7#a71 the balance in the ,account shall not be available for investment by the ,managing ,trustee4 7,d7 7i7 ,the preceding provisions of this paragraph shall not apply with respect to fiscal years commencing with or after the first fiscal year1 after fiscal year #bjbj1 for which a provision of ,federal law takes effect and authorizes1 for amounts in the ,trust ,fund1 an investment vehicle other than obligations of the ,united ,states4 7ii7 ,a provision of ,federal law shall be deemed to meet the requirements of clause 7i7 if such provision includes the following3 ,this ,act shall be considered to be a provision of ,federal law meeting the requirements of section #bja7;d77#b77;,d77i7 of the ,social ,security ,act44 4 #c4 ,interim protections for ,medicare part ,a trust fund surplus 7a7 ,in general ,section #ahag7;c7 of the ,social ,security ,act 7#db ,u4,s4,c4 #acie;i7c77 is amended-- 7#a7 by striking ,it shall be the duty and inserting 7#a7 ,except as provided in paragraph 7#b71 it shall be the duty2 7#b7 by striking 7#a7 on original issue at the issue price1 or 7#b7 and inserting 7,a7 on original issue at the issue price1 or 7,b72 and 7#c7 by adding at the end the following new paragraph3 7#b7 7,a7 ,there is established in the ,federal ,hospital ,insurance ,trust ,fund a ,medicare ,surplus ,protection ,account 7in this paragraph referred to as the ,account74 ,as soon as practicable after the end of each fiscal year after fiscal year #bjbj1 the ,managing ,trustee shall transfer to the ,account1 from amounts otherwise available in the ,trust ,fund1 amounts equivalent to the ,medicare part ,a surplus for such fiscal year4 ,such amounts shall be transferred from time to time to the ,account1 such amounts to be determined on the basis of estimates by the ,managing ,trustee1 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 amount4 7,b7 ,for purposes of subparagraph 7,a71 the term ,medicare part ,a surplus means1 for any fiscal year1 the excess1 if any1 of-- 7i7 the sum of-- 7,i7 the taxes imposed for such fiscal year by sections #caja7;b7 and #caaa7;b7 of the ,internal ,revenue ,code of #aihf with respect to wages 7as defined in section #caba of such ,code7 reported to the ,secretary of the ,treasury or his delegates pursuant to subtitle ,f of such ,code1 as determined by the ,secretary of the ,treasury by applying the applicable rates of tax under such sections to such wages2 and 7,,ii7 the taxes imposed by section #adja7;b7 of the ,internal ,revenue ,code of #aihf with respect to self-employment income 7as defined in section #adjb of such ,code7 reported to the ,secretary of the ,treasury on tax returns under subtitle ,f of such ,code1 as determined by the ,secretary of the ,treasury by applying the applicable rate of tax under such section #adja7;b7 to such self-employment income2 over 7ii7 the sum of-- 7,i7 benefits paid from the ,trust ,fund during the fiscal year2 and 7,,ii7 amounts authorized to be made available from the ,trust ,fund under subsection 7f7 of this section 7or section #bja7;g77 which are paid from the ,trust ,fund during such fiscal year4 7,c7 ,notwithstanding paragraph 7#a71 the balance in the ,account shall not be available for investment by the ,managing ,trustee4 7,d7 7i7 ,the preceding provisions of this paragraph shall not apply with respect to fiscal years commencing with or after the first fiscal year1 after fiscal year #bjbj1 for which a provision of ,federal law takes effect and authorizes1 for amounts in the ,trust ,fund1 an investment vehicle other than obligations of the ,united ,states4 7ii7 ,a provision of ,federal law shall be deemed to meet the requirements of clause 7i7 if such provision includes the following3 ,this ,act shall be considered to be a provision of ,federal law meeting the requirements of section #ahag7;c77#b77;,d77i7 of the ,social ,security ,act44 4 #d4 ,social ,security and ,medicare ,part ,a ,investment ,commission 7a7 ,establishment ,there is established in the executive branch of the ,government a ,social ,security and ,medicare ,part ,a ,investment ,commission 7in this section referred to as the ,commission74 7b7 ,study and report ,as soon as practicable after the date of the enactment of this ,act1 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 ,fund1 other than investment in the form of obligations of the ,united ,states4 ,not later than ,october #a1 #bjbj1 the ,commission shall submit a report to the ,president and to each ,house of the ,congress setting forth its recommendations for such vehicles for investment1 together with proposals for such administrative and legislative changes as the ,commission determines necessary to authorize and implement such recommendations4 7c7 ,composition ,the ,commission shall be composed of-- 7#a7 #c members appointed by the ,president1 of whom #a shall be designated by the ,president as ,chairman2 7#b7 #b members appointed by the ,speaker of the ,house of ,representatives2 7#c7 #a member appointed by the minority leader of the ,house of ,representatives2 7#d7 #b members appointed by the majority leader of the ,senate2 and 7#e7 #a member appointed by the minority leader of the ,senate4 7d7 ,membership requirements ,members of the ,commission shall have substantial experience1 training1 and expertise in the management of financial investments and pension benefit plans4 7e7 ,length of appointments ,members of the ,commission shall serve for the life of the ,commission4 ,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 appointment4 7f7 ,administrative provisions 7#a7 ,meetings ,the ,commission shall meet-- 7,a7 not less than once during each month2 and 7,b7 at additional times at the call of the ,chairman4 7#b7 ,exercise of powers 7,a7 ,in general ,the ,commission shall perform the functions and exercise the powers of the ,commission on a majority vote of a quorum of the ,commission4 ,three members of the ,commission shall constitute a quorum for the transaction of business4 7,b7 ,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 ,commission4 7g7 ,compensation 7#a7 ,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 ,commission4 7#b7 ,expenses ,a member of the ,commission shall be paid travel1 per diem1 and other necessary expenses under subchapter ,i of chapter #eg of title #e1 ,united ,states ,code1 while traveling away from such member's home or regular place of business in the performance of the duties of the ,commission4 7h7 ,termination ,the ,commission shall terminate #ij days after the date of the submission of its report pursuant to subsection 7b74