Where is the Social Security “fund” held?
The law requires that trust fund assets not needed for current benefits and administrative expenses be invested in interest bearing obligations of the United States. Special obligations of the United States are issued exclusively to the trust fund and must pay interest equal to the prevailing rate on outstanding Federal securities with a maturity date of 4 years or longer. In 1997, the combined Old Age and Survivors Insurance and Disability Insurance Trust Fund investments earned $43.8 billion, at an effective interest rate of 7.5 percent.
