The Trust Fund is required by law to be invested in non-marketable securities issued and guaranteed by the "full faith and credit" of the federal government. These securities earn a market rate of interest.
https://en.wikipedia.org/wiki/Social_Security_Trust_Fund
https://www.cbpp.org/research/social-security/understanding-the-social-security-trust-funds-0
Since the beginning of the Social Security program, all securities held by the trust funds have been issued by the Federal Government. There are two general types of such securities:
- Special issues—available only to the trust funds
- Public issues—marketable Treasury bonds available to the public.
https://www.ssa.gov/oact/progdata/specialissues.html
The U.S. government obligations purchased by the trust funds are backed by the full faith and credit of the United States
https://fas.org/sgp/crs/misc/IF10564.pdf
Some agencies, like the Social Security Trust Fund, take in more revenue from taxes than they need. Rather than stick this cash under a giant mattress, these agencies invest in U.S. Treasuries
https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124
No comments:
Post a Comment