Social Security and Medicare Lock-Box Act
Social Security and Medicare Lock-Box Act
Plain Language Summary
# Social Security and Medicare Lock-Box Act Summary **What the bill would do:** This bill would create separate "lock-box" accounts within the Social Security and Medicare trust funds to protect any yearly surpluses (extra money) from being used for other government purposes. It would require that any annual surplus automatically be transferred to these protected accounts and kept separate from the general treasury. The bill would also establish a commission to study alternative investment options for these trust funds beyond the traditional U.S. government bonds currently used. **Who it affects and key provisions:** The bill primarily affects Social Security and Medicare beneficiaries and taxpayers. Its main goal is preventing Congress from spending Social Security and Medicare surpluses on unrelated government expenses.
Currently, any surplus in these trust funds can potentially be redirected. Under this bill, those surpluses would be locked away. However, the funds still couldn't be invested in new ways until Congress passes a separate law approving different investment vehicles. A new commission would research what those alternative investments might be. **Current status:** The bill was introduced by Rep. Tim Walberg (R-MI) in the 119th Congress and is currently in committee, meaning it has not yet been debated or voted on by the full House of Representatives.
CRS Official Summary
Social Security and Medicare Lock-Box Act This bill establishes (1) in the Federal Old-Age and Survivors Insurance Trust Fund, a Social Security Surplus Protection Account; and (2) in the Federal Hospital Insurance Trust Fund, a Medicare Surplus Protection Account. The Managing Trustee of each trust fund (in both cases, the Secretary of the Treasury) (1) must transfer the annual surplus of the trust fund to its respective account; and (2) may not invest the balance in the account until a law takes effect that authorizes, for amounts in the trust fund, an investment vehicle other than U.S. obligations. The bill establishes in the executive branch a commission to study the most effective vehicles for investment of the trust funds, other than investments in the form of U.S. obligations.
Latest Action
Referred to the House Committee on Ways and Means.