Creation; deposits; fund transfers
section 401(i)(1) of this title1
Board of Trustees; composition; meetings; duties
Investment of Trust Fund by Managing Trustee
It shall be the duty of the Managing Trustee to invest such portion of the Trust Fund 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 Fund. Such obligations issued for purchase by the Trust Fund shall have maturities fixed with due regard for the needs of the Trust Fund 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 4 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 on such obligations shall be the multiple of one-eighth of 1 per centum nearest such market yield. 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.
Authority of Managing Trustee to sell obligations
Any obligations acquired by the Trust Fund (except public-debt obligations issued exclusively to the Trust Fund) may be sold by the Managing Trustee at the market price, and such public-debt obligations may be redeemed at par plus accrued interest.
Interest on or proceeds from sale or redemption of obligations
The interest on, and the proceeds from the sale or redemption of, any obligations held in the Trust Fund shall be credited to and form a part of the Trust Fund.
Transfers to other Funds
section 1395gg(b) of this titlesection 1395gg(b) of this titleThere shall be transferred periodically (but not less often than once each fiscal year) to the Trust Fund from the Federal Old-Age and Survivors Insurance Trust Fund and from the Federal Disability Insurance Trust Fund amounts equivalent to the amounts not previously so transferred which the Secretary of Health and Human Services shall have certified as overpayments (other than amounts so certified to the Railroad Retirement Board) pursuant to . There shall be transferred periodically (but not less often than once each fiscal year) to the Trust Fund from the Railroad Retirement Account amounts equivalent to the amounts not previously so transferred which the Secretary of Health and Human Services shall have certified as overpayments to the Railroad Retirement Board pursuant to .
Payments from Trust Fund of amounts provided for by this part or with respect to administrative expenses
section 401(g)(1) of this titlesection 1395w–141(k)(2) of this titlesection 1395w–141(k)(2) of this titleThe Managing Trustee shall pay from time to time from the Trust Fund such amounts as the Secretary of Health and Human Services certifies are necessary to make the payments provided for by this part, and the payments with respect to administrative expenses in accordance with . The payments provided for under part D, other than under , shall be made from the Medicare Prescription Drug Account in the Trust Fund. The payments provided for under shall be made from the Transitional Assistance Account in the Trust Fund.
Payments from Trust Fund of costs incurred by Director of Office of Personnel Management
section 1395s(d) of this titleThe Managing Trustee shall pay from time to time from the Trust Fund such amounts as the Secretary of Health and Human Services certifies are necessary to pay the costs incurred by the Director of the Office of Personnel Management in making deductions pursuant to or pursuant to section 1395w–113(c)(1) or 1395w–24(d)(2)(A) of this title (in which case payments shall be made in appropriate part from the Medicare Prescription Drug Account in the Trust Fund). During each fiscal year, or after the close of such fiscal year, the Director of the Office of Personnel Management shall certify to the Secretary the amount of the costs the Director incurred in making such deductions, and such certified amount shall be the basis for the amount of such costs certified by the Secretary to the Managing Trustee.
Payments from Trust Fund of costs incurred by Railroad Retirement Board
section 1395u(g) of this titleThe Managing Trustee shall pay from time to time from the Trust Fund such amounts as the Secretary of Health and Human Services certifies are necessary to pay the costs incurred by the Railroad Retirement Board for services performed pursuant to section 1395s(b)(1) and and pursuant to sections 1395w–113(c)(1) and 1395w–24(d)(2)(A) of this title (in which case payments shall be made in appropriate part from the Medicare Prescription Drug Account in the Trust Fund). During each fiscal year or after the close of such fiscal year, the Railroad Retirement Board shall certify to the Secretary the amount of the costs it incurred in performing such services and such certified amount shall be the basis for the amount of such costs certified by the Secretary to the Managing Trustee.
Aug. 14, 1935, ch. 531Pub. L. 89–97, title I, § 102(a)79 Stat. 308Pub. L. 90–248, title I, § 169(a)81 Stat. 875Pub. L. 92–603, title I, § 132(e)86 Stat. 1361Pub. L. 95–292, § 592 Stat. 315Pub. L. 98–21, title I, § 154(c)97 Stat. 107Pub. L. 98–369, div. B, title III, § 2354(b)(2)98 Stat. 1100Pub. L. 99–272, title IX, § 9213(b)100 Stat. 180Pub. L. 100–360, title II, § 212(b)(2)102 Stat. 740Pub. L. 100–647, title VIII, § 8005(a)102 Stat. 3781Pub. L. 101–234, title II, § 202(a)103 Stat. 1981Pub. L. 103–296, title I, § 108(c)(3)108 Stat. 1485Pub. L. 108–173, title I117 Stat. 2151Pub. L. 111–148, title IX, § 9008(k)124 Stat. 862(, title XVIII, § 1841, as added , , ; amended , , ; , title II, § 263(d)(4), (e), , , 1449; , , ; , title III, § 341(c), , , 135; , (11), (12), title VI, § 2663(j)(2)(F)(iii), , , 1101, 1170; , , ; , (c)(4), , , 741; , , ; , , ; , , ; , §§ 101(e)(3)(C), 105(d), title VIII, § 801(d)(2), title IX, § 900(e)(1)(E), , , 2166, 2359, 2371; , , .)
Editorial Notes
References in Text
section 9008(c) of Pub. L. 111–148section 4001 of Title 26Section 9008(c) of the Patient Protection and Affordable Care Act of 2009, referred to in subsec. (a), probably means , known as the Patient Protection and Affordable Care Act, which is set out as a note preceding , Internal Revenue Code.
section 801(a) of Pub. L. 108–173section 1395i of this titleSection 801(a) of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, referred to in subsec. (b)(2), is , which is set out as a note under .
Amendments
Pub. L. 111–1482010—Subsec. (a). inserted “or section 9008(c) of the Patient Protection and Affordable Care Act of 2009” after “this part”.
Pub. L. 108–173, § 105(d)(1)section 1395w–141(k)(1) of this titlesection 1395w–116 of this title2003—Subsec. (a). , inserted “or the Transitional Assistance Account established by ” after “”.
Pub. L. 108–173, § 101(e)(3)(C)(i)section 401(i)(1) of this titlesection 401(i)(1) of this titlesection 1395w–116 of this title, substituted “,” for “, and” and inserted “, and such amounts as may be deposited in, or appropriated to, the Medicare Prescription Drug Account established by ” before period at end.
Pub. L. 108–173, § 900(e)(1)(E)Subsec. (b). , in introductory provisions, substituted “Centers for Medicare & Medicaid Services” for “Health Care Financing Administration” and, in concluding provisions, substituted “Chief Actuary of the Centers for Medicare & Medicaid Services” for “Chief Actuarial Officer of the Health Care Financing Administration”.
Pub. L. 108–173, § 801(d)(2)Subsec. (b)(2). , inserted at end “Each report provided under paragraph (2) beginning with the report in 2005 shall include the information specified in section 801(a) of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003.”
Pub. L. 108–173, § 105(d)(2)section 1395w–141(k)(2) of this titleSubsec. (g). , inserted at end “The payments provided for under shall be made from the Transitional Assistance Account in the Trust Fund.”
Pub. L. 108–173, § 101(e)(3)(C)(ii)section 1395w–141(k)(2) of this title, inserted at end “The payments provided for under part D, other than under , shall be made from the Medicare Prescription Drug Account in the Trust Fund.”
Pub. L. 108–173, § 101(e)(3)(C)(iii)section 1395s(d) of this titleSubsec. (h). , inserted “or pursuant to section 1395w–113(c)(1) or 1395w–24(d)(2)(A) of this title (in which case payments shall be made in appropriate part from the Medicare Prescription Drug Account in the Trust Fund)” after “”.
Pub. L. 108–173, § 101(e)(3)(C)(iv)section 1395u(g) of this titleSubsec. (i). , inserted “and pursuant to sections 1395w–113(c)(1) and 1395w–24(d)(2)(A) of this title (in which case payments shall be made in appropriate part from the Medicare Prescription Drug Account in the Trust Fund)” after “”.
Pub. L. 103–2961994—Subsec. (b). inserted “the Commissioner of Social Security,” after “composed of” in introductory provisions.
Pub. L. 101–234Pub. L. 100–360, § 212(b)(2)1989—Subsecs. (a), (b). repealed , (c)(4), and provided that the provisions of law amended or repealed by such section are restored or revised as if such section had not been enacted, see 1988 Amendment notes below.
Pub. L. 100–360, § 212(b)(2)1988—Subsec. (a). , inserted three sentences at end providing for transfer of supplemental catastrophic coverage premiums into the Federal Supplementary Medical Insurance Trust Fund.
Pub. L. 100–647Subsec. (b). inserted after first sentence “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.”
Pub. L. 100–360, § 212(c)(4)section 1395t–2 of this title, inserted after sixth sentence “Such report shall also identify (and treat separately) those receipts and outlays in the Trust Fund which are also receipts and outlays in the Medicare Catastrophic Coverage Account created under .”
Pub. L. 99–2721986—Subsec. (b). struck out provision at end of penultimate sentence that the certification shall not refer to economic assumptions underlying Trustee’s report.
Pub. L. 98–369, § 2354(b)(2)1984—Subsec. (c). , substituted “under chapter 31 of title 31” for “under the Second Liberty Bond Act, as amended”.
Pub. L. 98–369, § 2663(j)(2)(F)(iii)Subsecs. (f), (g). , substituted “Health and Human Services” for “Health, Education, and Welfare” wherever appearing.
Pub. L. 98–369, § 2663(j)(2)(F)(iii)Subsec. (h). , substituted “Health and Human Services” for “Health, Education, and Welfare”.
Pub. L. 98–369, § 2354(b)(11), substituted “Director of the Office of Personnel Management” for “Civil Service Commission” in two places.
Pub. L. 98–369, § 2354(b)(12), substituted “the Director” for “it”.
Pub. L. 98–369, § 2663(j)(2)(F)(iii)Subsec. (i). , substituted “Health and Human Services” for “Health, Education, and Welfare”.
Pub. L. 98–21, § 341(c)(1)1983—Subsec. (b). , substituted “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” for “Secretary of Health, Education, and Welfare, all ex officio” in provisions preceding par. (1).
Pub. L. 98–21, § 154(c), inserted at end provision that the report referred to in par. (2) shall also include an actuarial opinion by the Chief Actuarial Officer of the Health Care Financing 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, and provided further that the certification shall not refer to economic assumptions underlying the Trustee’s report.
Pub. L. 98–21, § 341(c)(2), inserted at end provision that 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 Fund.
Pub. L. 95–2921978—Subsec. (b). substituted “Administrator of the Health Care Financing Administration” for “Commissioner of Social Security” in provisions preceding par. (1).
Pub. L. 92–603, § 132(e)section 401(i)(1) of this title1972—Subsec. (a). , inserted “such gifts and bequests as may be made as provided in , and” after “consist of” and before “such amounts”.
Pub. L. 92–603, § 263(d)(4)Subsec. (h). , substituted “1395s(d)” for “1395s(e)”.
Pub. L. 92–603, § 263(e)Subsec. (i). , added subsec. (i).
Pub. L. 90–2481968—Subsec. (b)(2). substituted “April” for “March”.
Statutory Notes and Related Subsidiaries
Effective Date of 1994 Amendment
Pub. L. 103–296section 110(a) of Pub. L. 103–296section 401 of this titleAmendment by effective , see , set out as a note under .
Effective Date of 1989 Amendment
Pub. L. 101–234section 202(b) of Pub. L. 101–234section 401 of this titleAmendment by effective , see , set out as a note under .
Effective Date of 1988 Amendment
Pub. L. 100–647section 8005(b) of Pub. L. 100–647section 401 of this titleAmendment by applicable to members of Board of Trustees of Federal Supplementary Medical Insurance Trust Fund serving on such Board as members of the public on or after , see , set out as a note under .
Effective Date of 1984 Amendment
Pub. L. 98–369section 2354(e)(1) of Pub. L. 98–369section 1320a–1 of this titleAmendment by section 2354(b)(2), (11), (12) of effective , but not to be construed as changing or affecting any right, liability, status, or interpretation which existed (under the provisions of law involved) before that date, see , set out as a note under .
section 2663(j)(2)(F)(iii) of Pub. L. 98–369section 2664(b) of Pub. L. 98–369section 401 of this titleAmendment by effective , but not to be construed as changing or affecting any right, liability, status, or interpretation which existed (under the provisions of law involved) before that date, see , set out as a note under .
Effective Date of 1983 Amendment
Pub. L. 98–21Pub. L. 98–21section 401 of this titleAmendment by sections 154(c) and 341(c) of effective , see sections 154(e) and 341(d) of , set out as notes under .
Effective Date of 1978 Amendment
Pub. L. 95–292section 6 of Pub. L. 95–292section 426 of this titleAmendment by effective with respect to services, supplies, and equipment furnished after the third calendar month beginning after , except that provisions for the implementation of an incentive reimbursement system for dialysis services furnished in facilities and providers to become effective with respect to a facility’s or provider’s first accounting period beginning after the last day of the twelfth month following the month of June 1978, and except that provisions for reimbursement rates for home dialysis to become effective , see , set out as a note under .
Effective Date of 1972 Amendment
section 132(e) of Pub. L. 92–603section 132(f) of Pub. L. 92–603section 401 of this titleAmendment by applicable with respect to gifts and bequests received after , see , set out as a note under .
Pub. L. 92–603Pub. L. 92–603section 263(f) of Pub. L. 92–603section 1395s of this titleAmendment by section 263(d)(4), (e) of with respect to collection of premiums applicable to premiums becoming due and payable after the fourth month following the month of enactment of which was approved on , see , set out as a note under .
Disposal of Funds in Federal Hospital Insurance Catastrophic Coverage Reserve Fund
Pub. L. 101–234, title I, § 102(c)103 Stat. 1981
Due Date for 1983 Report on Operation and Status of Trust Fund
section 154(d) of Pub. L. 98–21section 401 of this titleNotwithstanding subsec. (b)(2) of this section, the annual report of the Board of Trustees of the Trust Fund required for calendar year 1983 under this section may be filed at any time not later than forty-five days after , see , set out as a note under .