[Congressional Record Volume 147, Number 22 (Thursday, February 15, 2001)]
[Senate]
[Page S1496]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN:
  S. 354. A bill to amend title XI of the Social Security Act to 
include additional information in social security account statements; 
to the Committee on Finance.
  Mr. McCAIN. Mr. President, today I am introducing a bicameral piece 
of legislation with my colleague Representative DeMint ensuring that 
every American worker is provided with honest information about the 
financial status of the Social Security program, including the real 
value of their personal retirement benefits. It is our obligation to 
talk straight with working Americans about the true financial status of 
the Social Security program.
  Under the current system, hard working Americans--young and old--are 
not receiving straight, honest information regarding the actual 
financial status of the Social Security program, including how much it 
is receiving in payroll taxes and how much is needed to give promised 
benefits to seniors. It is our obligation to ensure that all Americans 
are provided with accurate information regarding exactly when the 
Social Security program will no longer have sufficient funds for paying 
full benefits.
  Furthermore, we must begin providing working Americans with accurate, 
easy to understand information regarding the average rate of return 
they can expect to receive from Social Security as compared to the 
amount of taxes an individual pays into the program. It is only fair to 
be straight with everyone and let them know the true facts about how 
much they will pay in payroll taxes and what the limited return will be 
on their contributions.
  Finally, I would like to take this opportunity to once again remind 
my colleagues of the very precarious financial condition of the entire 
Social Security system and the urgent need for a serious, bipartisan 
effort to reform and revitalize this cornerstone of many Americans' 
retirement planning.
  The only way to achieve real reform of the Social Security system is 
to work together in a bipartisan manner. It's time to abandon the 
irresponsible game of playing partisan politics with Social Security. 
Democrats will have to stop using the issue to scare seniors into 
voting against Republicans. Republicans will have to resist using 
Social Security revenues to finance tax cuts. And both parties must 
stop raiding the Trust Funds to waste retirement dollars on more 
government spending. We must face up to our responsibilities, not as 
Republicans or Democrats, but as elected representatives of the 
American people with a common obligation to protect their interests.
  We have an obligation to ensure that Social Security benefits are 
paid as promised, without putting an unfair burden on today and 
tomorrow's workers. It is time for us to talk straight to Americans 
about Social Security and begin working together in a bipartisan 
fashion to make the necessary changes to strengthen and save the 
nation's retirement program for the seniors of today and tomorrow.
  Mr. President, I ask unanimous consent that a copy of this 
legislation be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 354

       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).''.
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