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Congressional Research Service
Version 00 · Introduced in House · Feb 11, 2025
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.
People & committees
Rep. Walberg, Tim [R-MI-5] · R–MI
Legislative record
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Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Mar 21, 2025. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-02-11 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The proposed Social Security and Medicare Lock-Box Act would change how the Social Security retirement and survivor trust fund and Medicare Part A hospital insurance trust fund handle annual surpluses. It would set aside calculated surpluses in special accounts that the official managing the funds could not invest. It would also create a commission to recommend investment options other than U.S. government debt. These are proposed changes, not evidence of enacted law.
This Act may be cited as the Social Security and Medicare Lock-Box Act.
There is established in the Federal Old-Age and Survivors Insurance Trust Fund a Social Security Surplus Protection Account.
There is established in the Federal Hospital Insurance Trust Fund a Medicare Surplus Protection Account (in this paragraph referred to as the Account).
Notwithstanding paragraph (1), the balance in the Account shall not be available for investment by the Managing Trustee.
Notwithstanding paragraph (1), the balance in the Account shall not be available for investment by the Managing Trustee.
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.
For fiscal year 2026 onward, the Managing Trustee would have to move amounts equal to the defined Social Security surplus into the new account within the trust fund as soon as practicable after each fiscal year ends. Transfers would use estimates, with later adjustments to correct overestimates or underestimates.
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.
The Social Security surplus calculation would count specified wage and self-employment taxes, subject to stated exclusions and deductions, plus specified income-tax amounts attributable to trust-fund payments. A surplus would exist only when that total exceeds benefits paid and other payments authorized by the referenced subsection (g).
the term social security surplus means, for any fiscal year, the excess, if any, of— (i) the sum of—
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
less the amounts specified in clause (1) of subsection (b) of this section for such fiscal year
the taxes imposed by chapter 2 (other than section 1401(b)) of the Internal Revenue Code of 1986 with respect to self-employment income
less the amounts specified in clause (2) of subsection (b) of this section for such fiscal year
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.
For fiscal year 2026 onward, the Managing Trustee would likewise have to move amounts equal to the defined Medicare Part A surplus into its new account within the hospital insurance trust fund as soon as practicable after each fiscal year ends. Estimated transfers would be corrected through later adjustments.
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.
The Medicare Part A surplus calculation would count the specified wage and self-employment taxes. A surplus would exist only when those amounts exceed benefits paid and other payments authorized by the referenced subsection (f) or section 201(g).
the term Medicare part A surplus means, for any fiscal year, the excess, if any, of— (i) the sum of—
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
the taxes imposed by section 1401(b) of the Internal Revenue Code of 1986 with respect to 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.
The Managing Trustee would be prohibited from investing the balances in either surplus protection account.
Notwithstanding paragraph (1), the balance in the Account shall not be available for investment by the Managing Trustee.
Notwithstanding paragraph (1), the balance in the Account shall not be available for investment by the Managing Trustee.
For each trust fund, the interim account rules would stop applying beginning with the first fiscal year after 2025 for which a federal law takes effect authorizing an investment option other than U.S. government debt. The rules would also cease to apply for later fiscal years.
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.
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.
A federal law would also be treated as meeting a fund's termination condition if it includes the declaration specified for that fund in the bill.
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.
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.
The bill would establish an executive-branch investment commission. As soon as practicable after enactment, it would study investment options for the two trust funds other than U.S. government debt. It would recommend options and needed administrative and legislative changes to the President and both houses of Congress by October 1, 2025; this provision calls for recommendations, not implementation of new investments.
There is established in the executive branch of the Government a Social Security and Medicare Part A Investment Commission
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.
The commission would have nine members: three appointed by the President, two by the House Speaker, one by the House minority leader, two by the Senate majority leader, and one by the Senate minority leader. The President would designate one presidential appointee as chair.
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.
Commission members would need substantial experience, training, and expertise in managing financial investments and pension benefit plans. They would serve for the commission's lifetime, with vacancies filled through the original appointment process and conditions.
Members of the Commission shall have substantial experience, training, and expertise in the management of financial investments and pension benefit plans.
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.
The commission would meet at least monthly and whenever else the chair calls a meeting. Three members would constitute a quorum—the minimum group needed to conduct business—and decisions would require a majority vote of a quorum. Vacancies would not prevent a quorum from acting.
The Commission shall meet— (A) not less than once during each month; and (B) at additional times at the call of the Chairman.
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.
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.
Commission members who are not federal officers or employees would receive pay for days spent on commission work, using the daily basic-pay rate for level IV of the federal Executive Schedule. Members would receive travel expenses, daily allowances, and other necessary expenses under the cited federal travel rules when traveling away from home or their regular workplace on commission duties.
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.
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.
The commission would end 90 days after submitting its report.
The Commission shall terminate 90 days after the date of the submission of its report pursuant to subsection (b).
The supplied official-actions snapshot, updated March 21, 2025, records introduction in the House and referral to the House Committee on Ways and Means on February 11, 2025.
Source snapshot updated 2025-03-21T16:32:44Z. 2025-02-11: Referred to the House Committee on Ways and Means. 2025-02-11: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-02-11. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated rider was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish the contents or attachment history of other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion is limited to that version; the bundle does not include earmark disclosures or committee and conference materials that could inform formal earmark classification.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow carve-out, special exemption, or preferential treatment warranting a finding was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Full text preserved for this analysis. Legislative record snapshot: Mar 21, 2025. How PlainBill uses AI