[Congressional Record Volume 149, Number 26 (Wednesday, February 12, 2003)]
[Senate]
[Page S2355]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN (for himself and Mr. Graham of South Carolina):
  S. 368. A bill to amend title X of the Social Security Act to include 
additional information in social security account statements; to the 
Committee on Finance.
  Mr. McCAIN. Mr. President, today, there is a greater awareness of the 
precarious financial condition confronting our Nation's Social Security 
system. Unfortunately, partisanship has controlled the debate on 
reform, polarizing and paralyzing Congress, while the fate of Social 
Security has become more grim and the consequent need for reform has 
become more urgent.
  It is now time for us to come together to reform and revitalize this 
system, so that Social Security will continue to benefit both the 
seniors of today and tomorrow. As elected officials, we have an 
obligation to ensure that Social Security benefits are paid as 
promised, without unfairly burdening the workers of today.
  American workers deserve to know the true financial status of the 
Social Security program. Each individual should have the right to 
honest information, including the real value of their personal 
retirement benefits. Most Americans have little knowledge of the true 
financial status of Social Security because the current system does not 
provide them with practical, easy to understand information.
  Today, Senator Lindsey Graham and I are introducing a bill that will 
require the inclusion of that practical information in annual Social 
Security statements sent to all taxpaying Americans. These statements 
will include straight forward information regarding the average rate of 
return workers can expect to receive from Social Security as compared 
to the amount of taxes an individual pays into the program, the amount 
Social Security receives in payroll, how much revenue is needed to give 
promised benefits to seniors, and the date when the program will no 
longer have sufficient funds to pay promised benefits. It is only fair 
and just to provide everyone with the true facts about how much they 
will pay in payroll taxes and what the limited return will be on their 
contributions.
  We must 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.
  I ask unanimous consent that the text 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. 368

       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 2003''.

     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 (42 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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