I 

109TH CONGRESS 

1ST SESSION H. R. 1286 

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

in Social Security account statements. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 14, 2005 

Mr. SHADEGG 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 ‘‘Social Security Right 

5 to Know Act of 2005’’. 

6 SEC. 2. SPECIFICATION OF CONSTITUTIONAL AUTHORITY 

7 FOR ENACTMENT OF LAW. 

8 This Act is enacted pursuant to the power granted 

9 the Congress under article I, section 8, clauses 1 and 18, 

10 of the United States Constitution. 
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1 SEC. 3. 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 (D) by striking ‘‘and’’; 

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

7 and inserting a semicolon; and 

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

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

10 tax rates applicable with respect to wages and self11 employment income, including an indication of the 

12 combined total of such rates of employee and em13 ployer taxes with respect to wages; and 

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

15 the Social Security Administration, a comparison of 

16 the total annual amount of Social Security tax 

17 inflows (including amounts appropriated under sub18 sections (a) and (b) of section 201 of this Act and 

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

20 1983 (26 U.S.C. 401 note)) during the preceding 

21 calendar year to the total annual amount paid in 

22 benefits during such calendar year; 

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

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

25 the inflows described in clause (i) for future cal-
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1 endar years to amounts paid for such calendar 

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

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

4 be the year in which any such deficit will com5 mence, and 

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

7 funds in the Federal Old-Age and Survivors In8 surance Trust Fund and the Federal Disability 

9 Insurance Trust Fund will cease to be sufficient 

10 to cover any such deficit; 

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

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

13 resources authorized by the Congress to pay fu14 ture benefits, but they do not consist of real 

15 economic assets that can be used in the future 

16 to fund benefits, and that such balances are 

17 claims against the United States Treasury that, 

18 when redeemed, must be financed through in19 creased taxes, public borrowing, benefit reduc20 tion, or elimination of other Federal expendi21 tures, 

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

23 maintained only to the extent the laws enacted 

24 by the Congress to govern such benefits so pro25 vide, and 
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1 ‘‘(III) that, under current law, inflows to 

2 the Trust Funds are at levels inadequate to en3 sure indefinitely the payment of benefits in full; 

4 and 

5 ‘‘(iv) in simple and easily understood terms— 

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

7 that a typical taxpayer retiring at retirement 

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

9 year with average wages and self-employment 

10 income would receive as old-age insurance bene11 fits as compared to the total amount of em12 ployer, employee, and self-employment contribu13 tions of such a taxpayer, as determined by such 

14 Chief Actuary for each cohort of workers born 

15 in each year beginning with 1925, which shall 

16 be set out in chart or graph form with an ex17 planatory caption or legend, and 

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

19 past changes in such rate of return and for the 

20 possible occurrence of future changes in such 

21 rate of return. 

22 The Comptroller General of the United States shall con23 sult with the Chief Actuary to the extent the Chief Actu-
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1 ary determines necessary to meet the requirements of sub2 paragraph (G).’’. 

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