Rep. Gohmert Introduces Social Security Trust Funds Investment Act

WASHINGTON, Jan. 4 -- Rep. Louie Gohmert, R-Texas, has introduced the Social Security Trust Funds Investment Act of 2007 (H.R. 4896), legislation that would "amend title II of the Social Security Act to provide that a duty of the Board of Trustees of the Social Security Trust funds is to hold them in trust for the beneficiaries and to ensure that the assets of such trust funds are not diverted, and to authorize investment of such trust funds in securities that are not limited to obligations of the U.S. or obligations guaranteed as to principal and interest by the U.S."
The bill was introduced on Dec. 19. It was referred to the House Ways and Means Committee.
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A copy of the full-text of the legislation follows:Social Security Trust Funds Investment Act of 2007H.R. 4896To amend title II of the Social Security Act to provide that a duty of the Board of Trustees of the Social Security Trust funds is to hold them in trust for the beneficiaries and to ensure that the assets of such trust funds are not diverted, and to authorize investment of such trust funds in securities that are not limited to obligations of the United States or obligations guaranteed as to principal and interest by the United States. 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 Trust Funds Investment Act of 2007'.SEC. 2. MANAGMENT AND INVESTMENT OF SOCIAL SECURITY TRUST FUNDS.(a) Duty of the Board of Trustees- Section 201(c)(1) of the Social Security Act (42 U.S.C. 401(c)(1)) is amended to read as follows:`(1) Hold the Trust Funds in trust for the benefit of beneficiaries under this title and ensure that the assets of the Trust Funds are not diverted;'.(b) Authority To Invest Assets of the Trust Funds- Section 201(d) of such Act (42 U.S.C. 401(d)) is amended--(1) by striking the second sentence and inserting the following: `Such investments may be made in interest-bearing obligations of the United States, in obligations guaranteed as to both principal and interest by the United States, or in such other securities as the Board of Trustees may consider prudent investments.';(2) in the third sentence, by inserting `or other securities' after `obligations' each place it appears; and(3) by striking the last sentence and adding the following new sentence: `In making investments under this subsection, the Board of Trustees shall exercise the judgment and care under the circumstances then prevailing that persons of ordinary prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income therefrom as well as the probable safety of their capital.'.