III 

109TH CONGRESS 

1ST SESSION S. 274 

To amend title XI of the Social Security Act to include additional information 

in Social Security account statements. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 3, 2005 

Mr. DEMINT introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend title XI of the Social Security Act to include 

additional information in Social Security account statements. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Social Security Right 

5 to Know Act’’. 

6 SEC. 2. MATERIAL TO BE INCLUDED IN SOCIAL SECURITY 

7 ACCOUNT STATEMENT. 

8 Section 1143(a)(2) of the Social Security Act (42 

9 U.S.C. 1320b–13(a)(2)) is amended— 

10 (1) in subparagraph (D) by striking ‘‘and’’; 
2 

•S 274 IS 

1 (2) in subparagraph (E) by striking the period 

2 and inserting a semicolon; and 

3 (3) by adding at the end the following: 

4 ‘‘(F) a statement of the current Social Security 

5 tax rates applicable with respect to wages and self6 employment income, including an indication of the 

7 combined total of such rates of employee and em8 ployer taxes with respect to wages; and 

9 ‘‘(G)(i) as determined by the Chief Actuary of 

10 the Social Security Administration, a comparison of 

11 the total annual amount of Social Security tax 

12 inflows (including amounts appropriated under sub13 sections (a) and (b) of section 201 of this Act and 

14 section 121(e) of the Social Security Amendments of 

15 1983 (26 U.S.C. 401 note)) during the preceding 

16 calendar year to the total annual amount paid in 

17 benefits during such calendar year; 

18 ‘‘(ii) as determined by such Chief Actuary— 

19 ‘‘(I) a statement of whether the ratio of 

20 the inflows described in clause (i) for future cal21 endar years to amounts paid for such calendar 

22 years is expected to result in a cash flow deficit, 

23 ‘‘(II) the calendar year that is expected to 

24 be the year in which any such deficit will com25 mence, and 
3 

•S 274 IS 

1 ‘‘(III) the first calendar year in which 

2 funds in the Federal Old-Age and Survivors In3 surance Trust Fund and the Federal Disability 

4 Insurance Trust Fund will cease to be sufficient 

5 to cover any such deficit; 

6 ‘‘(iii) an explanation that states in substance— 

7 ‘‘(I) that the Trust Fund balances reflect 

8 resources authorized by the Congress to pay fu9 ture benefits, but they do not consist of real 

10 economic assets that can be used in the future 

11 to fund benefits, and that such balances are 

12 claims against the United States Treasury that, 

13 when redeemed, must be financed through in14 creased taxes, public borrowing, benefit reduc15 tion, or elimination of other Federal expendi16 tures, 

17 ‘‘(II) that such benefits are established and 

18 maintained only to the extent the laws enacted 

19 by the Congress to govern such benefits so pro20 vide, and 

21 ‘‘(III) that, under current law, inflows to 

22 the Trust Funds are at levels inadequate to en23 sure indefinitely the payment of benefits in full; 

24 and 

25 ‘‘(iv) in simple and easily understood terms— 
4 

•S 274 IS 

1 ‘‘(I) a representation of the rate of return 

2 that an average taxpayer retiring at retirement 

3 age (as defined in section 216(l)) credited each 

4 year with average wages and self-employment 

5 income would receive on old-age insurance bene6 fits as compared to the total amount of em7 ployer, employee, and self-employment contribu8 tions of such a taxpayer, as determined by such 

9 Chief Actuary for each cohort of workers born 

10 in each year beginning with 1925, which shall 

11 be set out in chart or graph form with an ex12 planatory caption or legend, and 

13 ‘‘(II) an explanation for the occurrence of 

14 past changes in such rate of return and for the 

15 possible occurrence of future changes in such 

16 rate of return. 

17 The Comptroller General of the United States shall con18 sult with the Chief Actuary to the extent the Chief Actu19 ary determines necessary to meet the requirements of sub20 paragraph (G).’’. 

Æ