Provisions Affecting Trust Fund Investment in Marketable Securities

Present law trust fund investment holdings

These provisions would prescribe that a portion of the Social Security trust funds be invested in marketable securities (e.g., equities, corporate bonds), rather than 100 percent total investment in special-issue government bonds, as under current law. For the provisions listed below, we provide estimates of the financial effect on the OASDI program over the long-range period (the next 75 years) and for the 75th year. In addition, we provide detailed single year tables.

Tables and graphs are available in two formats: HTML and Portable Document Format (PDF). We recommend the PDF version for printing (requires Adobe Acrobat Reader).

All estimates are based on the intermediate assumptions described in the 2008 Trustees Report. Choose the type of estimates (summary or detailed) from the list of provisions.

Number	Table and graph selection
G1	Invest 40 percent of the Trust Funds in equities (phased in 2009-2023), assuming an ultimate 6.4 percent annual real rate of return on equities. Summary measures and graphs (PDF Version) Detailed single year tables (PDF Version)
G2	Invest 40 percent of the Trust Funds in equities (phased in 2009-2023), assuming an ultimate 5.4 percent annual real rate of return on equities. Summary measures and graphs (PDF Version) Detailed single year tables (PDF Version)
G3	Invest 40 percent of the Trust Funds in equities (phased in 2009-2023), assuming an ultimate 2.9 percent annual real rate of return on equities, the same as the assumed ultimate yield on the special-issue Social Security trust fund bonds. Summary measures and graphs (PDF Version) Detailed single year tables (PDF Version)
G4	Gradually invest 15 percent of OASDI trust fund assets in a broad index of equity market securities (such as the Wilshire 5000). Increase the portion in equities by 1.5 percent each year 2009 through 2018. Maintain the percentage at 15 percent thereafter. Summary measures and graphs (PDF Version) Detailed single year tables (PDF Version)
G5	Invest 15 percent of the Trust Funds in equities (phased in 2009-2023), assuming an ultimate 2.9 percent annual real rate of return on equities, the same as the assumed ultimate yield on the special-issue Social Security trust fund bonds. Summary measures and graphs (PDF Version) Detailed single year tables (PDF Version)
	Above provisions Summary measures


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