42 U.S.C. § 401 : US Code - Section 401: Trust Funds

    (a) Federal Old-Age and Survivors Insurance Trust Fund
      There is hereby created on the books of the Treasury of the
    United States a trust fund to be known as the "Federal Old-Age and
    Survivors Insurance Trust Fund". The Federal Old-Age and Survivors
    Insurance Trust Fund shall consist of the securities held by the
    Secretary of the Treasury for the Old-Age Reserve Account and the
    amount standing to the credit of the Old-Age Reserve Account on the
    books of the Treasury on January 1, 1940, which securities and
    amount the Secretary of the Treasury is authorized and directed to
    transfer to the Federal Old-Age and Survivors Insurance Trust Fund,
    and, in addition, such gifts and bequests as may be made as
    provided in subsection (i)(1) of this section, and such amounts as
    may be appropriated to, or deposited in, the Federal Old-Age and
    Survivors Insurance Trust Fund as hereinafter provided. There is
    hereby appropriated to the Federal Old-Age and Survivors Insurance
    Trust Fund for the fiscal year ending June 30, 1941, and for each
    fiscal year thereafter, out of any moneys in the Treasury not
    otherwise appropriated, amounts equivalent to 100 per centum of - 
        (1) the taxes (including interest, penalties, and additions to
      the taxes) received under subchapter A of chapter 9 of the
      Internal Revenue Code of 1939 (and covered into the Treasury)
      which are deposited into the Treasury by collectors of internal
      revenue before January 1, 1951; and
        (2) the taxes certified each month by the Commissioner of
      Internal Revenue as taxes received under subchapter A of chapter
      9 of such Code which are deposited into the Treasury by
      collectors of internal revenue after December 31, 1950, and
      before January 1, 1953, with respect to assessments of such taxes
      made before January 1, 1951; and
        (3) the taxes imposed by subchapter A of chapter 9 of such Code
      with respect to wages (as defined in section 1426 of such Code),
      and by chapter 21 (other than sections 3101(b) and 3111(b)) of
      the Internal Revenue Code of 1954 with respect to wages (as
      defined in section 3121 of such Code) reported to the
      Commissioner of Internal Revenue pursuant to section 1420(c) of
      the Internal Revenue Code of 1939 after December 31, 1950, or to
      the Secretary of the Treasury or his delegates pursuant to
      subtitle F of the Internal Revenue Code of 1954 after December
      31, 1954, as determined by the Secretary of the Treasury by
      applying the applicable rates of tax under such subchapter or
      chapter 21 (other than sections 3101(b) and 3111(b)) to such
      wages, which wages shall be certified by the Commissioner of
      Social Security on the basis of the records of wages established
      and maintained by such Commissioner in accordance with such
      reports, less the amounts specified in clause (1) of subsection
      (b) of this section; and
        (4) the taxes imposed by subchapter E of chapter 1 of the
      Internal Revenue Code of 1939, with respect to self-employment
      income (as defined in section 481 of such Code), and by chapter 2
      (other than section 1401(b)) of the Internal Revenue Code of 1954
      with respect to self-employment income (as defined in section
      1402 of such Code) reported to the Commissioner of Internal
      Revenue on tax returns under such subchapter or to the Secretary
      of the Treasury or his delegate 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 subchapter or
      chapter (other than section 1401(b)) to such self-employment
      income, which self-employment income shall be certified by the
      Commissioner of Social Security on the basis of the records of
      self-employment income established and maintained by the
      Commissioner of Social Security in accordance with such returns,
      less the amounts specified in clause (2) of subsection (b) of
      this section.

    The amounts appropriated by clauses (3) and (4) of this subsection
    shall be transferred from time to time from the general fund in the
    Treasury to the Federal Old-Age and Survivors Insurance Trust Fund,
    and the amounts appropriated by clauses (1) and (2) of subsection
    (b) of this section shall be transferred from time to time from the
    general fund in the Treasury to the Federal Disability Insurance
    Trust Fund, such amounts to be determined on the basis of estimates
    by the Secretary of the Treasury of the taxes, specified in clauses
    (3) and (4) of this subsection, paid to or deposited into the
    Treasury; and proper adjustments shall be made in amounts
    subsequently transferred to the extent prior estimates were in
    excess of or were less than the taxes specified in such clauses (3)
    and (4) of this subsection. All amounts transferred to either Trust
    Fund under the preceding sentence shall be invested by the Managing
    Trustee in the same manner and to the same extent as the other
    assets of such Trust Fund. Notwithstanding the preceding sentence,
    in any case in which the Secretary of the Treasury determines that
    the assets of either such Trust Fund would otherwise be inadequate
    to meet such Fund's obligations for any month, the Secretary of the
    Treasury shall transfer to such Trust Fund on the first day of such
    month the amount which would have been transferred to such Fund
    under this section as in effect on October 1, 1990; and such Trust
    Fund shall pay interest to the general fund on the amount so
    transferred on the first day of any month at a rate (calculated on
    a daily basis, and applied against the difference between the
    amount so transferred on such first day and the amount which would
    have been transferred to the Trust Fund up to that day under the
    procedures in effect on January 1, 1983) equal to the rate earned
    by the investments of such Fund in the same month under subsection
    (d) of this section.
    (b) Federal Disability Insurance Trust Fund
      There is hereby created on the books of the Treasury of the
    United States a trust fund to be known as the "Federal Disability
    Insurance Trust Fund". The Federal Disability Insurance Trust Fund
    shall consist of such gifts and bequests as may be made as provided
    in subsection (i)(1) of this section, and such amounts as may be
    appropriated to, or deposited in, such fund as provided in this
    section. There is hereby appropriated to the Federal Disability
    Insurance Trust Fund for the fiscal year ending June 30, 1957, and
    for each fiscal year thereafter, out of any moneys in the Treasury
    not otherwise appropriated, amounts equivalent to 100 per centum of
    - 
        (1)(A)  1/2  of 1 per centum of the wages (as defined in
      section 3121 of the Internal Revenue Code of 1954) paid after
      December 31, 1956, and before January 1, 1966, and reported to
      the Secretary of the Treasury or his delegate pursuant to
      subtitle F of the Internal Revenue Code of 1954, (B) 0.70 of 1
      per centum of the wages (as so defined) paid after December 31,
      1965, and before January 1, 1968, and so reported, (C) 0.95 of 1
      per centum of the wages (as so defined) paid after December 31,
      1967, and before January 1, 1970, and so reported, (D) 1.10 per
      centum of the wages (as so defined) paid after December 31, 1969,
      and before January 1, 1973, and so reported, (E) 1.1 per centum
      of the wages (as so defined) paid after December 31, 1972, and
      before January 1, 1974, and so reported, (F) 1.15 per centum of
      the wages (as so defined) paid after December 31, 1973, and
      before January 1, 1978, and so reported, (G) 1.55 per centum of
      the wages (as so defined) paid after December 31, 1977, and
      before January 1, 1979, and so reported, (H) 1.50 per centum of
      the wages (as so defined) paid after December 31, 1978, and
      before January 1, 1980, and so reported, (I) 1.12 per centum of
      the wages (as so defined) paid after December 31, 1979, and
      before January 1, 1981, and so reported, (J) 1.30 per centum of
      the wages (as so defined) paid after December 31, 1980, and
      before January 1, 1982, and so reported, (K) 1.65 per centum of
      the wages (as so defined) paid after December 31, 1981, and
      before January 1, 1983, and so reported, (L) 1.25 per centum of
      the wages (as so defined) paid after December 31, 1982, and
      before January 1, 1984, and so reported, (M) 1.00 per centum of
      the wages (as so defined) paid after December 31, 1983, and
      before January 1, 1988, and so reported, (N) 1.06 per centum of
      the wages (as so defined) paid after December 31, 1987, and
      before January 1, 1990, and so reported, (O) 1.20 per centum of
      the wages (as so defined) paid after December 31, 1989, and
      before January 1, 1994, and so reported, (P) 1.88 per centum of
      the wages (as so defined) paid after December 31, 1993, and
      before January 1, 1997, and so reported, (Q) 1.70 per centum of
      the wages (as so defined) paid after December 31, 1996, and
      before January 1, 2000, and so reported, and (R) 1.80 per centum
      of the wages (as so defined) paid after December 31, 1999, and so
      reported, which wages shall be certified by the Commissioner of
      Social Security on the basis of the records of wages established
      and maintained by such Commissioner in accordance with such
      reports; and
        (2)(A)  3/8  of 1 per centum of the amount of self-employment
      income (as defined in section 1402 of the Internal Revenue Code
      of 1954) reported to the Secretary of the Treasury or his
      delegate on tax returns under subtitle F of the Internal Revenue
      Code of 1954 for any taxable year beginning after December 31,
      1956, and before January 1, 1966, (B) 0.525 of 1 per centum of
      the amount of self-employment income (as so defined) so reported
      for any taxable year beginning after December 31, 1965, and
      before January 1, 1968, (C) 0.7125 of 1 per centum of the amount
      of self-employment income (as so defined) so reported for any
      taxable year beginning after December 31, 1967, and before
      January 1, 1970, (D) 0.825 of 1 per centum of the amount of self-
      employment income (as so defined) so reported for any taxable
      year beginning after December 31, 1969, and before January 1,
      1973, (E) 0.795 of 1 per centum of the amount of self-employment
      income (as so defined) so reported for any taxable year beginning
      after December 31, 1972, and before January 1, 1974, (F) 0.815 of
      1 per centum of the amount of self-employment income (as so
      defined) as reported for any taxable year beginning after
      December 31, 1973, and before January 1, 1978, (G) 1.090 per
      centum of the amount of self-employment income (as so defined) so
      reported for any taxable year beginning after December 31, 1977,
      and before January 1, 1979, (H) 1.0400 per centum of the amount
      of self-employment income (as so defined) so reported for any
      taxable year beginning after December 31, 1978, and before
      January 1, 1980, (I) 0.7775 per centum of the amount of self-
      employment income (as so defined) so reported for any taxable
      year beginning after December 31, 1979, and before January 1,
      1981, (J) 0.9750 per centum of the amount of self-employment
      income (as so defined) so reported for any taxable year beginning
      after December 31, 1980, and before January 1, 1982, (K) 1.2375
      per centum of the amount of self-employment income (as so
      defined) so reported for any taxable year beginning after
      December 31, 1981, and before January 1, 1983, (L) 0.9375 per
      centum of the amount of self-employment income (as so defined) so
      reported for any taxable year beginning after December 31, 1982,
      and before January 1, 1984, (M) 1.00 per centum of the amount of
      self-employment income (as so defined) so reported for any
      taxable year beginning after December 31, 1983, and before
      January 1, 1988, (N) 1.06 per centum of the self-employment
      income (as so defined) so reported for any taxable year beginning
      after December 31, 1987, and before January 1, 1990, (O) 1.20 per
      centum of the amount of self-employment income (as so defined) so
      reported for any taxable year beginning after December 31, 1989,
      and before January 1, 1994, (P) 1.88 per centum of the amount of
      self-employment income (as so defined) so reported for any
      taxable year beginning after December 31, 1993, and before
      January 1, 1997, (Q) 1.70 per centum of the amount of self-
      employment income (as so defined) so reported for any taxable
      year beginning after December 31, 1996, and before January 1,
      2000, and (R) 1.80 per centum of the amount of self-employment
      income (as so defined) so reported for any taxable year beginning
      after December 31, 1999, which self-employment income shall be
      certified by the Commissioner of Social Security on the basis of
      the records of self-employment income established and maintained
      by the Commissioner of Social Security in accordance with such
      returns.
    (c) Board of Trustees; duties; reports to Congress
      With respect to the Federal Old-Age and Survivors Insurance Trust
    Fund and the Federal Disability Insurance Trust Fund (hereinafter
    in this subchapter called the "Trust Funds") there is hereby
    created a body to be known as the Board of Trustees of the Trust
    Funds (hereinafter in this subchapter called the "Board of
    Trustees") which Board of Trustees shall be composed of the
    Commissioner of Social Security, the Secretary of the Treasury, the
    Secretary of Labor, and the Secretary of Health and Human Services,
    all ex officio, and of two members of the public (both of whom may
    not be from the same political party), who shall be nominated by
    the President for a term of four years and subject to confirmation
    by the Senate. A member of the Board of Trustees serving as a
    member of the public and nominated and confirmed to fill a vacancy
    occurring during a term shall be nominated and confirmed only for
    the remainder of such term. An individual nominated and confirmed
    as a member of the public may serve in such position after the
    expiration of such member's term until the earlier of the time at
    which the member's successor takes office or the time at which a
    report of the Board is first issued under paragraph (2) after the
    expiration of the member's term. The Secretary of the Treasury
    shall be the Managing Trustee of the Board of Trustees (hereinafter
    in this subchapter called the "Managing Trustee"). The Deputy
    Commissioner of Social Security shall serve as Secretary of the
    Board of Trustees. The Board of Trustees shall meet not less
    frequently than once each calendar year. It shall be the duty of
    the Board of Trustees to - 
        (1) Hold the Trust Funds;
        (2) Report to the Congress not later than the first day of
      April of each year on the operation and status of the Trust Funds
      during the preceding fiscal year and on their expected operation
      and status during the next ensuing five fiscal years;
        (3) Report immediately to the Congress whenever the Board of
      Trustees is of the opinion that the amount of either of the Trust
      Funds is unduly small;
        (4) Recommend improvements in administrative procedures and
      policies designed to effectuate the proper coordination of the
      old-age and survivors insurance and Federal-State unemployment
      compensation program; and
        (5) Review the general policies followed in managing the Trust
      Funds, and recommend changes in such policies, including
      necessary changes in the provisions of the law which govern the
      way in which the Trust Funds are to be managed.

    The report provided for in paragraph (2) of this subsection shall
    include a statement of the assets of, and the disbursements made
    from, the Trust Funds during the preceding fiscal year, an estimate
    of the expected future income to, and disbursements to be made
    from, the Trust Funds during each of the next ensuing five fiscal
    years, and a statement of the actuarial status of the Trust Funds.
    Such statement shall include a finding by the Board of Trustees as
    to whether the Federal Old-Age and Survivors Insurance Trust Fund
    and the Federal Disability Insurance Trust Fund, individually and
    collectively, are in close actuarial balance (as defined by the
    Board of Trustees). Such report shall include an actuarial opinion
    by the Chief Actuary of the Social Security Administration
    certifying that the techniques and methodologies used are generally
    accepted within the actuarial profession and that the assumptions
    and cost estimates used are reasonable. Such report shall also
    include an actuarial analysis of the benefit disbursements made
    from the Federal Old-Age and Survivors Insurance Trust Fund with
    respect to disabled beneficiaries. Such report shall be printed as
    a House document of the session of the Congress to which the report
    is made. A person serving on the Board of Trustees shall not be
    considered to be a fiduciary and shall not be personally liable for
    actions taken in such capacity with respect to the Trust Funds.
    (d) Investments
      It shall be the duty of the Managing Trustee to invest such
    portion of the Trust Funds as is not, in his judgment, required to
    meet current withdrawals. Such investments may be made only in
    interest-bearing obligations of the United States or in obligations
    guaranteed as to both principal and interest by the United States.
    For such purpose such obligations may be acquired (1) on original
    issue at the issue price, or (2) by purchase of outstanding
    obligations at the market price. The purposes for which obligations
    of the United States may be issued under chapter 31 of title 31 are
    hereby extended to authorize the issuance at par of public-debt
    obligations for purchase by the Trust Funds. Such obligations
    issued for purchase by the Trust Funds shall have maturities fixed
    with due regard for the needs of the Trust Funds and shall bear
    interest at a rate equal to the average market yield (computed by
    the Managing Trustee on the basis of market quotations as of the
    end of the calendar month next preceding the date of such issue) on
    all marketable interest-bearing obligations of the United States
    then forming a part of the public debt which are not due or
    callable until after the expiration of four years from the end of
    such calendar month; except that where such average market yield is
    not a multiple of one-eighth of 1 per centum, the rate of interest
    of such obligations shall be the multiple of one-eighth of 1 per
    centum nearest such market yield. Each obligation issued for
    purchase by the Trust Funds under this subsection shall be
    evidenced by a paper instrument in the form of a bond, note, or
    certificate of indebtedness issued by the Secretary of the Treasury
    setting forth the principal amount, date of maturity, and interest
    rate of the obligation, and stating on its face that the obligation
    shall be incontestable in the hands of the Trust Fund to which it
    is issued, that the obligation is supported by the full faith and
    credit of the United States, and that the United States is pledged
    to the payment of the obligation with respect to both principal and
    interest. The Managing Trustee may purchase other interest-bearing
    obligations of the United States or obligations guaranteed as to
    both principal and interest by the United States, on original issue
    or at the market price, only where he determines that the purchase
    of such other obligations is in the public interest.
    (e) Sale of acquired obligations
      Any obligations acquired by the Trust Funds (except public-debt
    obligations issued exclusively to the Trust Funds) may be sold by
    the Managing Trustee at the market price, and such public-debt
    obligations may be redeemed at par plus accrued interest.
    (f) Proceeds from sale or redemption of obligations; interest
      The interest on, and the proceeds from the sale or redemption of,
    any obligations held in the Federal Old-Age and Survivors Insurance
    Trust Fund and the Federal Disability Insurance Trust Fund shall be
    credited to and form a part of the Federal Old-Age and Survivors
    Insurance Trust Fund and the Disability Insurance Trust Fund,
    respectively. Payment from the general fund of the Treasury to
    either of the Trust Funds of any such interest or proceeds shall be
    in the form of paper checks drawn on such general fund to the order
    of such Trust Fund.
    (g) Payments into Treasury
      (1)(A) The Managing Trustee of the Trust Funds (which for
    purposes of this paragraph shall include also the Federal Hospital
    Insurance Trust Fund and the Federal Supplementary Medical
    Insurance Trust Fund established by subchapter XVIII of this
    chapter) is directed to pay from the Trust Funds into the Treasury -
     
        (i) (!1) the amounts estimated by the Managing Trustee, the
      Commissioner of Social Security, and the Secretary of Health and
      Human Services which will be expended, out of moneys appropriated
      from the general fund in the Treasury, during a three-month
      period by the Department of Health and Human Services for the
      administration of subchapter XVIII of this chapter, and by the
      Department of the Treasury for the administration of subchapters
      II and XVIII of this chapter and chapters 2 and 21 of the
      Internal Revenue Code of 1986, less

        (ii) (!1) the amounts estimated (pursuant to the applicable
      method prescribed under paragraph (4) of this subsection) by the
      Commissioner of Social Security which will be expended, out of
      moneys made available for expenditures from the Trust Funds,
      during such three-month period to cover the cost of carrying out
      the functions of the Social Security Administration, specified in
      section 432 of this title, which relate to the administration of
      provisions of the Internal Revenue Code of 1986 other than those
      referred to in clause (i) and the functions of the Social
      Security Administration in connection with the withholding of
      taxes from benefits, as described in section 407(c) of this
      title, pursuant to requests by persons entitled to such benefits
      or such persons' representative payee.

    Such payments shall be carried into the Treasury as the net amount
    of repayments due the general fund account for reimbursement of
    expenses incurred in connection with the administration of
    subchapters II and XVIII of this chapter and chapters 2 and 21 of
    the Internal Revenue Code of 1986. A final accounting of such
    payments for any fiscal year shall be made at the earliest
    practicable date after the close thereof. There are hereby
    authorized to be made available for expenditure, out of any or all
    of the Trust Funds, such amounts as the Congress may deem
    appropriate to pay the costs of the part of the administration of
    this subchapter, subchapter VIII of this chapter, subchapter XVI of
    this chapter, and subchapter XVIII of this chapter for which the
    Commissioner of Social Security is responsible, the costs of
    subchapter XVIII of this chapter for which the Secretary of Health
    and Human Services is responsible, and the costs of carrying out
    the functions of the Social Security Administration, specified in
    section 432 of this title, which relate to the administration of
    provisions of the Internal Revenue Code of 1986 other than those
    referred to in clause (i) of the first sentence of this
    subparagraph and the functions of the Social Security
    Administration in connection with the withholding of taxes from
    benefits, as described in section 407(c) of this title, pursuant to
    requests by persons entitled to such benefits or such persons'
    representative payee. Of the amounts authorized to be made
    available out of the Federal Old-Age and Survivors Insurance Trust
    Fund and the Federal Disability Insurance Trust Fund under the
    preceding sentence, there are hereby authorized to be made
    available from either or both of such Trust Funds for continuing
    disability reviews - 
        (i) (!1) for fiscal year 1996, $260,000,000;
        (ii) (!1) for fiscal year 1997, $360,000,000;
        (iii) for fiscal year 1998, $570,000,000;
        (iv) for fiscal year 1999, $720,000,000;
        (v) for fiscal year 2000, $720,000,000;
        (vi) for fiscal year 2001, $720,000,000; and
        (viii) (!2) for fiscal year 2002, $720,000,000.


    For purposes of this subparagraph, the term "continuing disability
    review" means a review conducted pursuant to section 421(i) of this
    title and a review or disability eligibility redetermination
    conducted to determine the continuing disability and eligibility of
    a recipient of benefits under the supplemental security income
    program under subchapter XVI of this chapter, including any review
    or redetermination conducted pursuant to section 207 or 208 of the
    Social Security Independence and Program Improvements Act of 1994
    (Public Law 103-296).
      (B) After the close of each fiscal year - 
        (i) the Commissioner of Social Security shall determine - 
          (I) the portion of the costs, incurred during such fiscal
        year, of administration of this subchapter, subchapter VIII of
        this chapter, subchapter XVI of this chapter, and subchapter
        XVIII of this chapter for which the Commissioner is responsible
        and of carrying out the functions of the Social Security
        Administration, specified in section 432 of this title, which
        relate to the administration of provisions of the Internal
        Revenue Code of 1986 (other than those referred to in clause
        (i) of the first sentence of subparagraph (A)) and the
        functions of the Social Security Administration in connection
        with the withholding of taxes from benefits, as described in
        section 407(c) of this title, pursuant to requests by persons
        entitled to such benefits or such persons' representative
        payee, which should have been borne by the general fund of the
        Treasury,
          (II) the portion of such costs which should have been borne
        by the Federal Old-Age and Survivors Insurance Trust Fund,
          (III) the portion of such costs which should have been borne
        by the Federal Disability Insurance Trust Fund,
          (IV) the portion of such costs which should have been borne
        by the Federal Hospital Insurance Trust Fund, and
          (V) the portion of such costs which should have been borne by
        the Federal Supplementary Medical Insurance Trust Fund (and, of
        such portion, the portion of such costs which should have been
        borne by the Medicare Prescription Drug Account in such Trust
        Fund), and

        (ii) the Secretary of Health and Human Services shall determine
      - 
          (I) the portion of the costs, incurred during such fiscal
        year, of the administration of subchapter XVIII of this chapter
        for which the Secretary is responsible, which should have been
        borne by the general fund of the Treasury,
          (II) the portion of such costs which should have been borne
        by the Federal Hospital Insurance Trust Fund, and
          (III) the portion of such costs which should have been borne
        by the Federal Supplementary Medical Insurance Trust Fund (and,
        of such portion, the portion of such costs which should have
        been borne by the Medicare Prescription Drug Account in such
        Trust Fund).

      (C) After the determinations under subparagraph (B) have been
    made for any fiscal year, the Commisioner (!3) of Social Security
    and the Secretary shall each certify to the Managing Trustee the
    amounts, if any, which should be transferred from one to any of the
    other such Trust Funds and the amounts, if any, which should be
    transferred between the Trust Funds (or one of the Trust Funds) and
    the general fund of the Treasury, in order to ensure that each of
    the Trust Funds and the general fund of the Treasury have borne
    their proper share of the costs, incurred during such fiscal year,
    for - 

        (i) the parts of the administration of this subchapter,
      subchapter VIII of this chapter, subchapter XVI of this chapter,
      and subchapter XVIII of this chapter for which the Commissioner
      of Social Security is responsible,
        (ii) the parts of the administration of subchapter XVIII of
      this chapter for which the Secretary is responsible, and
        (iii) carrying out the functions of the Social Security
      Administration, specified in section 432 of this title, which
      relate to the administration of provisions of the Internal
      Revenue Code of 1986 (other than those referred to in clause (i)
      of the first sentence of subparagraph (A)) and the functions of
      the Social Security Administration in connection with the
      withholding of taxes from benefits, as described in section
      407(c) of this title, pursuant to requests by persons entitled to
      such benefits or such persons' representative payee.

    The Managing Trustee shall transfer any such amounts in accordance
    with any certification so made.
      (D) The determinations required under subclauses (IV) and (V) of
    subparagraph (B)(i) shall be made in accordance with the cost
    allocation methodology in existence on August 15, 1994, until such
    time as the methodology for making the determinations required
    under such subclauses is revised by agreement of the Commissioner
    and the Secretary, except that the determination of the amounts to
    be borne by the general fund of the Treasury with respect to
    expenditures incurred in carrying out the functions of the Social
    Security Administration specified in section 432 of this title and
    the functions of the Social Security Administration in connection
    with the withholding of taxes from benefits as described in section
    407(c) of this title shall be made pursuant to the applicable
    method prescribed under paragraph (4).
      (2) The Managing Trustee is directed to pay from time to time
    from the Trust Funds into the Treasury the amount estimated by him
    as taxes imposed under section 3101(a) of the Internal Revenue Code
    of 1986 which are subject to refund under section 6413(c) of such
    Code with respect to wages (as defined in section 3121 of such
    Code). Such taxes shall be determined on the basis of the records
    of wages maintained by the Commissioner of Social Security in
    accordance with the wages reported to the Secretary of the Treasury
    or his delegate pursuant to subtitle F of such Code, and the
    Commissioner of Social Security shall furnish the Managing Trustee
    such information as may be required by the Trustee for such
    purpose. The payments by the Managing Trustee shall be covered into
    the Treasury as repayments to the account for refunding internal
    revenue collections. Payments pursuant to the first sentence of
    this paragraph shall be made from the Federal Old-Age and Survivors
    Insurance Trust Fund and the Federal Disability Insurance Trust
    Fund in the ratio in which amounts were appropriated to such Trust
    Funds under clause (3) of subsection (a) of this section and clause
    (1) of subsection (b) of this section.
      (3) Repayments made under paragraph (1) or (2) of this subsection
    shall not be available for expenditures but shall be carried to the
    surplus fund of the Treasury. If it subsequently appears that the
    estimates under either such paragraph in any particular period were
    too high or too low, appropriate adjustments shall be made by the
    Managing Trustee in future payments.
      (4) The Commissioner of Social Security shall utilize the method
    prescribed pursuant to this paragraph, as in effect immediately
    before August 15, 1994, for determining the costs which should be
    borne by the general fund of the Treasury of carrying out the
    functions of the Commissioner, specified in section 432 of this
    title, which relate to the administration of provisions of the
    Internal Revenue Code of 1986 (other than those referred to in
    clause (i) of the first sentence of paragraph (1)(A)). The Board of
    Trustees of such Trust Funds shall prescribe the method of
    determining the costs which should be borne by the general fund in
    the Treasury of carrying out the functions of the Social Security
    Administration in connection with the withholding of taxes from
    benefits, as described in section 407(c) of this title, pursuant to
    requests by persons entitled to such benefits or such persons'
    representative payee. If at any time or times thereafter the Boards
    of Trustees of such Trust Funds consider such action advisable,
    they may modify the method of determining such costs.
    (h) Benefit payments
      Benefit payments required to be made under section 423 of this
    title, and benefit payments required to be made under subsection
    (b), (c), or (d) of section 402 of this title to individuals
    entitled to benefits on the basis of the wages and self-employment
    income of an individual entitled to disability insurance benefits,
    shall be made only from the Federal Disability Insurance Trust
    Fund. All other benefit payments required to be made under this
    subchapter (other than section 426 of this title) shall be made
    only from the Federal Old-Age and Survivors Insurance Trust Fund.
    (i) Gifts and bequests
      (1) The Managing Trustee may accept on behalf of the United
    States money gifts and bequests made unconditionally to the Federal
    Old-Age and Survivors Insurance Trust Fund, the Federal Disability
    Insurance Trust Fund, the Federal Hospital Insurance Trust Fund, or
    the Federal Supplementary Medical Insurance Trust Fund (and for the
    Medicare Prescription Drug Account and the Transitional Assistance
    Account in such Trust Fund) or to the Social Security
    Administration, the Department of Health and Human Services, or any
    part or officer thereof, for the benefit of any of such Funds or
    any activity financed through such Funds.
      (2) Any such gift accepted pursuant to the authority granted in
    paragraph (1) of this subsection shall be deposited in - 
        (A) the specific trust fund designated by the donor or
        (B) if the donor has not so designated, the Federal Old-Age and
      Survivors Insurance Trust Fund.
    (j) Travel expenses
      There are authorized to be made available for expenditure, out of
    the Federal Old-Age and Survivors Insurance Trust Fund, or the
    Federal Disability Insurance Trust Fund (as determined appropriate
    by the Commissioner of Social Security), such amounts as are
    required to pay travel expenses, either on an actual cost or
    commuted basis, to individuals for travel incident to medical
    examinations requested by the Commissioner of Social Security in
    connection with disability determinations under this subchapter,
    and to parties, their representatives, and all reasonably necessary
    witnesses for travel within the United States (as defined in
    section 410(i) of this title) to attend reconsideration interviews
    and proceedings before administrative law judges with respect to
    any determination under this subchapter. The amount available under
    the preceding sentence for payment for air travel by any person
    shall not exceed the coach fare for air travel between the points
    involved unless the use of first-class accommodations is required
    (as determined under regulations of the Commissioner of Social
    Security) because of such person's health condition or the
    unavailability of alternative accommodations; and the amount
    available for payment for other travel by any person shall not
    exceed the cost of travel (between the points involved) by the most
    economical and expeditious means of transportation appropriate to
    such person's health condition, as specified in such regulations.
    The amount available for payment under this subsection for travel
    by a representative to attend an administrative proceeding before
    an administrative law judge or other adjudicator shall not exceed
    the maximum amount allowable under this subsection for such travel
    originating within the geographic area of the office having
    jurisdiction over such proceeding.
    (k) Experiment and demonstration project expenditures
      Expenditures made for experiments and demonstration projects
    under section 434 of this title shall be made from the Federal
    Disability Insurance Trust Fund and the Federal Old-Age and
    Survivors Insurance Trust Fund, as determined appropriate by the
    Commissioner of Social Security.
    (l) Interfund borrowing
      (1) If at any time prior to January 1988 the Managing Trustee
    determines that borrowing authorized under this subsection is
    appropriate in order to best meet the need for financing the
    benefit payments from the Federal Old-Age and Survivors Insurance
    Trust Fund or the Federal Disability Insurance Trust Fund, the
    Managing Trustee may borrow such amounts as he determines to be
    appropriate from the other such Trust Fund, or, subject to
    paragraph (5), from the Federal Hospital Insurance Trust Fund
    established under section 1395i of this title, for transfer to and
    deposit in the Trust Fund whose need for financing is involved.
      (2) In any case where a loan has been made to a Trust Fund under
    paragraph (1), there shall be transferred on the last day of each
    month after such loan is made, from the borrowing Trust Fund to the
    lending Trust Fund, the total interest accrued to such day with
    respect to the unrepaid balance of such loan at a rate equal to the
    rate which the lending Trust Fund would earn on the amount involved
    if the loan were an investment under subsection (d) of this section
    (even if such an investment would earn interest at a rate different
    than the rate earned by investments redeemed by the lending fund in
    order to make the loan).
      (3)(A) If in any month after a loan has been made to a Trust Fund
    under paragraph (1), the Managing Trustee determines that the
    assets of such Trust Fund are sufficient to permit repayment of all
    or part of any loans made to such Fund under paragraph (1), he
    shall make such repayments as he determines to be appropriate.
      (B)(i) If on the last day of any year after a loan has been made
    under paragraph (1) by the Federal Hospital Insurance Trust Fund to
    the Federal Old-Age and Survivors Insurance Trust Fund or the
    Federal Disability Insurance Trust Fund, the Managing Trustee
    determines that the OASDI trust fund ratio exceeds 15 percent, he
    shall transfer from the borrowing Trust Fund to the Federal
    Hospital Insurance Trust Fund an amount that - 
        (I) together with any amounts transferred from another
      borrowing Trust Fund under this paragraph for such year, will
      reduce the OASDI trust fund ratio to 15 percent; and
        (II) does not exceed the outstanding balance of such loan.

      (ii) Amounts required to be transferred under clause (i) shall be
    transferred on the last day of the first month of the year
    succeeding the year in which the determination described in clause
    (i) is made.
      (iii) For purposes of this subparagraph, the term "OASDI trust
    fund ratio" means, with respect to any calendar year, the ratio of -
     
        (I) the combined balance in the Federal Old-Age and Survivors
      Insurance Trust Fund and the Federal Disability Insurance Trust
      Fund, as of the last day of such calendar year, to
        (II) the amount estimated by the Commissioner of Social
      Security to be the total amount to be paid from the Federal Old-
      Age and Survivors Insurance Trust Fund and the Federal
      Disability Insurance Trust Fund during the calendar year
      following such calendar year for all purposes authorized by this
      section (other than payments of interest on, and repayments of,
      loans from the Federal Hospital Insurance Trust Fund under
      paragraph (1), but excluding any transfer payments between such
      trust funds and reducing the amount of any transfer to the
      Railroad Retirement Account by the amount of any transfers into
      either such trust fund from that Account).

      (C)(i) The full amount of all loans made under paragraph (1)
    (whether made before or after January 1, 1983) shall be repaid at
    the earliest feasible date and in any event no later than December
    31, 1989.
      (ii) For the period after December 31, 1987, and before January
    1, 1990, the Managing Trustee shall transfer each month to the
    Federal Hospital Insurance Trust Fund from any Trust Fund with any
    amount outstanding on a loan made from the Federal Hospital
    Insurance Trust Fund under paragraph (1) an amount not less than an
    amount equal to (I) the amount owed to the Federal Hospital
    Insurance Trust Fund by such Trust Fund at the beginning of such
    month (plus the interest accrued on the outstanding balance of such
    loan during such month), divided by (II) the number of months
    elapsing after the preceding month and before January 1990. The
    Managing Trustee may, during this period, transfer larger amounts
    than prescribed by the preceding sentence.
      (4) The Board of Trustees shall make a timely report to the
    Congress of any amounts transferred (including interest payments)
    under this subsection.
      (5)(A) No amounts may be borrowed from the Federal Hospital
    Insurance Trust Fund under paragraph (1) during any month if the
    Hospital Insurance Trust Fund ratio for such month is less than 10
    percent.
      (B) For purposes of this paragraph, the term "Hospital Insurance
    Trust Fund ratio" means, with respect to any month, the ratio of - 
        (i) the balance in the Federal Hospital Insurance Trust Fund,
      reduced by the outstanding amount of any loan (including interest
      thereon) theretofore made to such Trust Fund under this
      subsection, as of the last day of the second month preceding such
      month, to
        (ii) the amount obtained by multiplying by twelve the total
      amount which (as estimated by the Secretary) will be paid from
      the Federal Hospital Insurance Trust Fund during the month for
      which such ratio is to be determined (other than payments of
      interest on, or repayments of loans from another Trust Fund under
      this subsection), and reducing the amount of any transfers to the
      Railroad Retirement Account by the amount of any transfer into
      the Hospital Insurance Trust Fund from that Account.
    (m) Accounting for unnegotiated benefit checks
      (1) The Secretary of the Treasury shall implement procedures to
    permit the identification of each check issued for benefits under
    this subchapter that has not been presented for payment by the
    close of the sixth month following the month of its issuance.
      (2) The Secretary of the Treasury shall, on a monthly basis,
    credit each of the Trust Funds for the amount of all benefit checks
    (including interest thereon) drawn on such Trust Fund more than 6
    months previously but not presented for payment and not previously
    credited to such Trust Fund, to the extent provided in advance in
    appropriation Acts.
      (3) If a benefit check is presented for payment to the Treasury
    and the amount thereof has been previously credited pursuant to
    paragraph (2) to one of the Trust Funds, the Secretary of the
    Treasury shall nevertheless pay such check, if otherwise proper,
    recharge such Trust Fund, and notify the Commissioner of Social
    Security.
      (4) A benefit check bearing a current date may be issued to an
    individual who did not negotiate the original benefit check and who
    surrenders such check for cancellation if the Secretary of the
    Treasury determines it is necessary to effect proper payment of
    benefits.
    (n) Payments to Funds in satisfaction of obligations
      Not later than July 1, 2004, the Secretary of the Treasury shall
    transfer, from amounts in the general fund of the Treasury that are
    not otherwise appropriated - 
        (1) $624,971,854 to the Federal Old-Age and Survivors Insurance
      Trust Fund;
        (2) $105,379,671 to the Federal Disability Insurance Trust
      Fund; and
        (3) $173,306,134 to the Federal Hospital Insurance Trust Fund.

    Amounts transferred in accordance with this subsection shall be in
    satisfaction of certain outstanding obligations for deemed wage
    credits for 2000 and 2001.