I

106TH CONGRESS

2D SESSION H. R. 5028

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

in Social Security account statements.

IN THE HOUSE OF REPRESENTATIVES

JULY 27, 2000

Mr. DEMINT (for himself, Mr. SUNUNU, Mr. WELLER, Mrs. BIGGERT, Mr.

FLETCHER, Mr. GREEN of Wisconsin, Mr. HAYES, Mr. ISAKSON, Mr.

KUYKENDALL, Mr. GARY MILLER of California, Mr. OSE, Mr. REYNOLDS, Mr. RYAN of Wisconsin, Mr. SIMPSON, Mr. SWEENEY, Mr.

TANCREDO, Mr. TERRY, Mr. TOOMEY, Mr. VITTER, and Mr. WALDEN of

Oregon) introduced the following bill; which was referred to the Committee on Ways and Means

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 ‘‘Straight Talk on Social

5 Security Act’’.
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1 SEC. 2. MATERIAL TO BE INCLUDED IN SOCIAL SECURITY

2 ACCOUNT STATEMENT.

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

4 U.S.C. 1320b–13(a)(2)) is amended—

5 (1) in subparagraph (C) by striking ‘‘and’’;

6 (2) in subparagraph (D) by striking the period

7 and inserting ‘‘; and’’; and

8 (3) by adding at the end the following new sub9 paragraph:

10 ‘‘(E)(i) as determined by the Chief Actuary of

11 the Social Security Administration—

12 ‘‘(I) a comparison of the annual social se13 curity tax inflows (including amounts appro14 priated under subsections (a) and (b) of section

15 201 of this Act and section 121(e) of the Social

16 Security Amendments of 1983 (26 U.S.C. 401

17 note)) to the amount paid in benefits annually;

18 and

19 ‘‘(II) a statement whether the ratio de20 scribed in subclause (I) will result in a cash

21 flow deficit and what year any such deficit will

22 commence, as well as the first year in which

23 funds in the Federal Old-Age and Survivors In24 surance Trust Fund and the Federal Disability

25 Insurance Trust Fund will cease to be sufficient

26 to cover any such deficit and the percentage of
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1 benefits due at that time that could be paid

2 from the annual social security tax inflows (as

3 that term is used in subclause (I));

4 ‘‘(ii) an explanation that states in substance

5 that the Trust Funds balances reflect resources au6 thorized by Congress to pay future social security

7 benefits, but do not consist of real economic assets

8 that can be used in the future to fund benefits, and

9 that such balances are claims against the United

10 States Treasury that, when redeemed, must be fi11 nanced through increased taxes, public borrowing,

12 benefit reduction, or elimination of other Federal ex13 penditures; and

14 ‘‘(iii) an explanation, in simple and easily un15 derstood terms, of the average rate of return that a

16 taxpayer can expect to receive on old-age insurance

17 benefits as compared to the total amount of social

18 security taxes a taxpayer expects to pay, including

19 the inflation-adjusted average rate of return for

20 workers born in every year beginning with 1900, set

21 out in chart or graph form, with an explanatory cap22 tion or legend, as determined by the Chief Actuary

23 of the Social Security Administration.’’.

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