[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 354 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 354

  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 15, 2001

  Mr. McCain 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Straight Talk on Social Security Act 
of 2001''.

SEC. 2. MATERIAL TO BE INCLUDED IN SOCIAL SECURITY ACCOUNT STATEMENT.

    Section 1143(a)(2) of the Social Security Act (42 U.S.C. 1320b-
13(a)(2)) is amended--
            (1) in subparagraph (C) by striking ``and'' at the end;
            (2) in subparagraph (D) by striking the period and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(E) a statement of the current social security tax rates 
        applicable with respect to wages and self-employment income, 
        including an indication of the combined total of such rates of 
        employee and employer taxes with respect to wages; and
            ``(F)(i) as determined by the Chief Actuary of the Social 
        Security Administration, a comparison of the total annual 
        amount of social security tax inflows (including amounts 
        appropriated under subsections (a) and (b) of section 201 of 
        this Act and section 121(e) of the Social Security Amendments 
        of 1983 (26 U.S.C. 401 note)) during the preceding calendar 
        year to the total annual amount paid in benefits during such 
        calendar year;
            ``(ii) as determined by such Chief Actuary--
                    ``(I) a statement of whether the ratio of the 
                inflows described in clause (i) for future calendar 
                years to amounts paid for such calendar years is 
                expected to result in a cash flow deficit,
                    ``(II) the calendar year that is expected to be the 
                year in which any such deficit will commence, and
                    ``(III) the first calendar year in which funds in 
                the Federal Old-Age and Survivors Insurance Trust Fund 
                and the Federal Disability Insurance Trust Fund will 
                cease to be sufficient to cover any such deficit;
            ``(iii) an explanation that states in substance--
                    ``(I) that the Trust Fund balances reflect 
                resources authorized by the Congress to pay future 
                benefits, but they do not consist of real economic 
                assets that can be used in the future to fund benefits, 
                and that such balances are claims against the United 
                States Treasury that, when redeemed, must be financed 
                through increased taxes, public borrowing, benefit 
                reduction, or elimination of other Federal 
                expenditures,
                    ``(II) that such benefits are established and 
                maintained only to the extent the laws enacted by the 
                Congress to govern such benefits so provide, and
                    ``(III) that, under current law, inflows to the 
                Trust Funds are at levels inadequate to ensure 
                indefinitely the payment of benefits in full; and
            ``(iv) in simple and easily understood terms--
                    ``(I) a representation of the rate of return that a 
                typical taxpayer retiring at retirement age (as defined 
                in section 216(l)) credited each year with average 
                wages and self-employment income would receive on old-
                age insurance benefits as compared to the total amount 
                of employer, employee, and self-employment 
                contributions of such a taxpayer, as determined by such 
                Chief Actuary for each cohort of workers born in each 
                year beginning with 1925, which shall be set out in 
                chart or graph form with an explanatory caption or 
                legend, and
                    ``(II) an explanation for the occurrence of past 
                changes in such rate of return and for the possible 
                occurrence of future changes in such rate of return.
The Comptroller General of the United States shall consult with the 
Chief Actuary to the extent the Chief Actuary determines necessary to 
meet the requirements of subparagraph (F).''.
                                 <all>