Sec. 206. Establishment of Independent Social Security Investment Oversight Board
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Title VII of the Social Security Act ( 42 U.S.C. 901 et seq. ) is amended by adding at the end the following: There is established in the Social Security Administration an Independent Social Security Investment Oversight Board. The Board shall be composed of a Chairman and four additional members. The Chairman and each additional member shall be appointed by the President, by and with the advice and consent of the Senate. Members of the Board shall have substantial experience, training, and expertise in the management of financial investments and service in a fiduciary capacity.
A member of the Board shall be appointed for a term of 10 years, except that of the members first appointed— the member appointed as Chairman shall be appointed for a term of 10 years; one member shall be appointed for a term of 8 years; one member shall be appointed for a term of 6 years; one member shall be appointed for a term of 4 years; and one member shall be appointed for a term of 2 years, as designated by the President at the time of appointment. A vacancy on the Board shall be filled in the manner in which the original appointment was made and shall be subject to any conditions which applied with respect to the original appointment.
An individual chosen to fill a vacancy shall be appointed for the unexpired term of the member replaced. The term of any member shall not expire before the date on which the member’s successor takes office. An individual appointed as a member of the Board may be removed from office only pursuant to a finding by the President of neglect of duty or malfeasance in office. The member of the Board designated by the President as Chairman shall serve as Chairman for a term of 4 years (or until the expiration of his term as member of the Board, if earlier).
A member serving as Chairman may be reappointed as Chairman. The Board shall— establish policies for the investment and management of the Common Stock Old-Age Investment Fund and the Common Stock Disability Investment Fund described in section 201(d)(2), including policies to provide for— prudent investments suitable for accumulating funds for payment of monthly insurance benefits under title II; and low administrative costs; review bids relating to, and hire managers for, each such Fund; annually review the performance of each such Fund; report annually to the House of Representatives and the Senate and to the President regarding the earnings on such investments; and make each such report publicly available by publication in the Federal Register, posting on the Internet, and such other means as the Board may determine; and review and approve the budget of the Board.
The Board may— adopt, alter, and use a seal; establish policies with which the Managing Trustee of the Trust Funds is required to comply under section 201(d)(2); and take such other actions as may be necessary to carry out the functions of the Board. The policies of the Board may not require the Managing Trustee of the Trust Funds to invest or to cause to be invested any sums in such Trust Funds in a specific asset or to dispose of or cause to be disposed of any specific asset of such Trust Funds.
The Board shall meet— not less than once during each month; and at additional times at the call of the Chairman. The Board shall perform the functions and exercise the powers of the Board on a majority vote of a quorum of the Board. A vacancy on the Board shall not impair the authority of a quorum of the Board to perform the functions and exercise the powers of the Board. Three members of the Board shall constitute a quorum for the transaction of business. Each member of the Board who is not an officer or employee of the Federal Government shall be compensated at the daily rate of basic pay payable for level IV of the Executive Schedule for each day during which such member is engaged in performing a function of the Board.
A member of the Board 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 Board. The accrued annual leave of any officer or employee of the Federal Government who is a member of the Board shall not be charged for any time used in performing services for the Board. The members of the Board shall discharge their responsibilities solely in the interest of the Trust Funds in connection with investments of amounts in funds under section 201(d)(2).
The Board shall prepare and submit to the President, and, at the same time, to the appropriate committees of Congress, an annual budget of the expenses and other items relating to the Board which shall be included as a separate item in the budget required to be transmitted to the Congress under section 1105 of title 31, United States Code. The Board may submit to the President, and, at the same time, shall submit to each House of Congress, any legislative recommendations of the Board relating to any of its functions under this section.
There are hereby made available from each of the Trust Funds such sums as are necessary to carry out the provisions of this section and to administer the provisions of section 235, in accordance with certifications which shall be made from time to time by the Board to the Secretary of the Treasury. In this section, the term Trust Funds has the meaning given such term in section 201(c). .
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Sec. 206
Establishment of Independent Social Security Investment Oversight Board
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