Investment of the Social Security Trust Funds: Hearing Before the Subcommittee on Social Security of the Committee on Ways Ang Means, House of Representatives, Ninety-seventh Congress, First Session, October 16, 1981U.S. Government Printing Office, 1981 - 38 pages |
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$1 billion actuarial advantage appropriate ARCHER average market yield average market-yield rate benefits BILL GRADISON billion dollars bonds borrow cash needs Chairman PICKLE current high interest discretion Federal funds deficit GEPHARDT governing the investment Government obligations Government securities high interest rates highest current yield increase the deficit Insurance Trust Fund interest basis interest income investment experience investment policy investment procedure J. J. PICKLE JACOBS June 30 long-term rates longer term securities lowest yielding managing trustee market rate maturity dates MYERS OASDI OASI obligations issued Old-Age and Survivors proposal prudent investor purchased question rate of return redeem the lowest redemption rity Secretary security trust funds sell short-term rates shorter term securities Social Security Administration social security fund social security trust special issues STALNECKER taxes Thank total portfolio Treas Treasury securities Treasury's trust fund assets trust fund investment U.S. Government unified budget WYCHE FOWLER yielding securities
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Page 8 - There is hereby authorized to be appropriated to the Account for each fiscal year, beginning with the fiscal year ending June 30, 1937, an amount sufficient as an annual premium to provide for the payments required under this title, such amount to be determined on a reserve basis in accordance with accepted actuarial principles...
Page 14 - Such special obligations shall bear interest at a rate equal to the average rate of interest, computed as to the end of the calendar month next preceding the date of such issue, borne by all marketable interestbearing obligations of the United States then forming a part of the public debt ; except that where such average rate is not a multiple of one-eighth of 1 per centum...
Page 7 - I am pleased to be here today to discuss the investment policy of the four Social Security trust funds — the Old-Age and Survivors Insurance Trust Fund, the Disability Insurance Trust Fund, the Hospital Insurance Trust Fund, and the Supplementary Medical Insurance Trust Fund.
Page 8 - ... percent. The 1960 Act revised this interest basis, so that the interest rate is now determined from the average market yield rate on government obligations that are not due or callable for at least four years from the date of determination. In 1940-43, the new special issues were for durations of four or five years. Beginning in 1944, some new special issues were for durations of one year (or less); and beginning in 1945, all new special issues were of this duration. Accordingly, beginning in...
Page 8 - This method would be open to some objection on the grounds mentioned previously — government entry into private fields of activity. Even more serious is the argument that any use of public funds for such purposes should be under the control of the elected representatives of the people (Congress) rather than...
Page 8 - Under such a policy, the government would, in effect, be setting itself up as a rating organization, because the investment procedures would naturally have to be open to full public view. If no preference were shown for different types of securities, but rather investments were made widely and indiscriminately, there would be a serious danger of loss of principal and diminution of investment income.
Page 8 - ... private industrial economy, which would, in effect, result in "socialism by the back-door method." Another practical disadvantage would be the need for a far-reaching and deep-searching investment policy that would permit the trust funds to obtain an adequate rate of interest with reasonable security. Under such a policy the government would, in effect, be setting itself up as a rating organization, since the investment procedures would naturally have to be open to full public view. If no preference...
Page 19 - You have proved your case beyond a peradventure of a doubt. You have quoted statistics, you have proved mathematically that that farm could not possibly flood. "But I just want to ask you one question : Have you ever been down on that farm when it was raining?" I know that the Architect and all the smart people under the employ of the House of Representatives can give you a thousand reasons why this building should be erected. I would only answer with one specific example, and that is : At the Pentagon,...
Page 8 - ... practical disadvantage would be the need for a far-reaching and deep-searching investment policy that would permit the trust funds to obtain an adequate rate of interest with reasonable security. Under such a policy the government would, in effect, be setting itself up as a rating organization, since the investment procedures would naturally have to be open to full public view. If no preference were shown for different types of securities, but rather investments were made widely and indiscriminately,...
Page 1 - Way* and Mean*, US House of Representatives, announced today that the Subcommittee will hold a hearing on HR 4951, the Employee Health Benefit Improvement Act of 1988.