[House Report 116-616]
[From the U.S. Government Publishing Office]


116th Congress   }                                             {  Report
                         HOUSE OF REPRESENTATIVES
 2d Session      }                                             { 116-616

======================================================================



 
                 KNOW YOUR SOCIAL SECURITY ACT OF 2019

                                _______
                                

December 2, 2020.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

            Mr. Neal, from the Committee on Ways and Means, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 5306]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 5306) to amend title XI of the Social Security Act 
to clarify the mailing requirement relating to social security 
account statements, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill as amended do pass.

                                CONTENTS

                                                                   Page
 I. SUMMARY AND BACKGROUND............................................2
        A. Purpose and Summary...................................     2
        B. Background and Need for Legislation...................     2
        C. Legislative History...................................     3
II. EXPLANATION OF THE BILL...........................................4
        A. The Know Your Social Security Act of 2019.............     4
III.VOTES OF THE COMMITTEE............................................6

IV. BUDGET EFFECTS OF THE BILL........................................6
        A. Committee Estimate of Budgetary Effects...............     6
        B. Statement Regarding New Budget Authority and Tax 
            Expenditures Budget Authority........................     6
        C. Cost Estimate Prepared by the Congressional Budget 
            Office...............................................     6
 V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE........8
        A. Committee Oversight Findings and Recommendations......     8
        B. Statement of General Performance Goals and Objectives.     8
        C. Information Relating to Unfunded Mandates.............     8
        D. Congressional Earmarks, Limited Tax Benefits, and 
            Limited Tariff Benefits..............................     8
        E. Duplication of Federal Programs.......................     8
        F. Hearings..............................................     8
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED.............9

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Know Your Social Security Act of 
2019''.

SEC. 2. CLARIFICATION OF REQUIREMENT TO MAIL SOCIAL SECURITY ACCOUNT 
                    STATEMENTS.

  (a) In General.--Section 1143 of the Social Security Act (42 U.S.C. 
1320b-13) is amended--
          (1) in subsection (a)(1), by adding at the end the following: 
        ``Such statement shall be provided by mail unless the 
        requesting individual chooses electronic delivery for that 
        request.''; and
          (2) in subsection (c)(2)--
                  (A) by striking ``Beginning not later than'' and 
                inserting ``(A) Beginning not later than'';
                  (B) by inserting ``by mail'' after ``provide''; and
                  (C) by adding at the end the following:
  ``(B) In any case in which an eligible individual described in 
subparagraph (A) responds to an annual inquiry by the Commissioner 
relating to the mailing of the individual's statement by making an 
election that such statement for such year be provided in electronic 
form only, the requirements of this paragraph shall be deemed to be 
satisfied for such year with respect to the individual.''.
  (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to social security account statements required to be 
provided after the date of the enactment of this Act.

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    H.R. 5306, the Know Your Social Security Act of 2019, as 
amended and ordered favorably reported by the Committee on Ways 
and Means on December 11, 2019, amends the Social Security Act 
to clarify that the Social Security Administration (SSA) must 
provide by mail an annual Social Security Statement (Statement) 
to all workers ages 25 and older who have contributed to Social 
Security and are not receiving Social Security benefits.
    This bill was introduced by Ways and Means Committee Social 
Security Subcommittee Chairman John B. Larson and Ways and 
Means Committee Member Vern Buchanan.

                 B. Background and Need for Legislation

    To ensure that Americans know their Social Security 
earnings and benefits, Congress directed SSA in bipartisan 
legislation enacted in 1989 and 1990 to mail an annual 
Statement to all workers ages 25 and older who are not 
receiving Social Security benefits.\1\ This requirement is 
contained in Section 1143 of the Social Security Act. The 
Statement informs individuals about their projected Social 
Security benefits, helps them plan for retirement, and allows 
workers to review and correct their earnings records to ensure 
their future benefits will be computed correctly.
---------------------------------------------------------------------------
    \1\See Omnibus Budget Reconciliation Acts of 1989 and 1990, P.L. 
101-239 and P.L. 101-508.
---------------------------------------------------------------------------
    In the 1989 legislation, Congress directed SSA to send 
Statements to all individuals ``for whom a current mailing 
address can be determined.''\2\ In the 1990 legislation, 
Congress also directed the Internal Revenue Service, upon 
written request of the Commissioner of Social Security, to 
disclose the mailing address of any taxpayer who is entitled to 
receive a Statement to SSA for the purposes of mailing the 
Statement.\3\
---------------------------------------------------------------------------
    \2\Omnibus Budget Reconciliation Act of 1989, P.L. 101-239.
    \3\Omnibus Budget Reconciliation Acts of 1990, P.L. 101-508.
---------------------------------------------------------------------------
    For years, SSA complied with the law, with successful 
results. However, starting in Fiscal Year 2011, SSA ceased 
mailing annual Statements to all workers, citing budgetary 
constraints. Since then, SSA has continued to disregard the law 
and Congressional oversight that has directed the agency to 
restore or increase the delivery of annual Statements by mail.
    Currently, SSA only mails Statements to individuals ages 60 
and older with covered earnings who are not receiving Social 
Security benefits. In addition, even among this limited group 
of seniors, SSA only mails Statements to those individuals who 
have not registered for a mySocialSecurity online account. In 
Fiscal Year 2019, SSA mailed Statements to only about 15 
million workers--out of more than 175 million workers with 
covered earnings that year.\4\
---------------------------------------------------------------------------
    \4\Office of the Inspector General, Social Security Administration 
(2019). Issuance of Social Security Statements. Available at https://
oig.ssa.gov/sites/default/files/audit/full/pdf/A-03-18-50724.pdf; and 
The 2019 Annual Report of the Board of trustees of the Federal Old-Age 
and Survivors Insurance and Federal Disability Insurance Trust Funds 
(2019 Trustees Report). Table IV.B3. Available at https://www.ssa.gov/
OACT/TR/2019/tr2019.pdf.
---------------------------------------------------------------------------
    For individuals who do not receive a mailed Statement, the 
only way to see their Statement is to sign up for an online 
account with Social Security and view their Statement on SSA's 
website. However, according to SSA's Inspector General, 
relatively few workers view their Statements online.\5\
---------------------------------------------------------------------------
    \5\Office of the Inspector General, Social Security Administration 
(2019). Issuance of Social Security Statements. Available at https://
oig.ssa.gov/sites/default/files/audit/full/pdf/A-03-18-50724.pdf.
---------------------------------------------------------------------------
    Research has found that when SSA mails annual Statements, 
most people--even younger workers--read their Statement 
carefully, value it highly, and find it helpful for retirement 
planning.\6\ Research has also found that the overwhelming 
majority of people feel that mail is one of the best ways for 
SSA to provide them with educational information.\7\
---------------------------------------------------------------------------
    \6\Smith, B. A. (2015). The Social Security statement: Its 
contribution to retirement planning. Journal of Financial Counseling 
and Planning, 26(2), 118-128. doi: 10.1891/1052 3073.26.2.118 and 
Smith, B. A., & Couch, K. A. (2014). How effective is the Social 
Security statement? Informing younger workers about Social Security. 
Social Security Bulletin, 74(4), 1 19.
    \7\Greenwald, M., Kapteyn, A., Mitchell, O. & Schneider, S. (2010). 
What do people know about Social Security? (Working Paper, WR-792-SSA). 
Philadelphia, PA: The Wharton School.
---------------------------------------------------------------------------
    H.R. 5306 would help ensure that Americans know about their 
Social Security benefits and earnings records by clarifying 
that SSA must mail an annual Statement to all workers ages 25 
and older with covered earnings, who are not receiving Social 
Security. The legislation permits SSA to not mail an annual 
Statement to an individual who chooses electronic delivery for 
that year. By law, an individual may also request a Statement 
at any time during the year. The bill requires SSA to provide 
these on-demand Statements by mail, unless an individual 
chooses electronic delivery for that one-time request.

                         C. Legislative History


Background

    H.R. 5306, the Know Your Social Security Act, was 
introduced on December 5, 2019 and was referred to the 
Committee on Ways and Means.

Committee hearings

    On February 6, 2019 the Committee on Ways and Means held a 
hearing on ``Improving Retirement Security for America's 
Workers.'' During that hearing, witness Andrew Biggs, Resident 
Scholar, American Enterprise Institute, discussed the role of 
the Statement in informing workers about the impact of non-
covered earnings on their Social Security benefits.
    Statements were also discussed during the Committee markup 
on June 26, 2019 of related legislation, H.R. 3417, the 
Beneficiary Education Tools, Telehealth, and Extenders 
Reauthorization (BETTER) Act of 2019. That legislation contains 
a provision requiring that Medicare enrollment information be 
included with Statements sent to persons approaching Medicare 
eligibility and reiterates the obligation of SSA to mail 
Statements to all eligible workers. During that markup, Ways 
and Means Ranking Member Kevin Brady discussed the Statement as 
an important financial planning tool and expressed concern 
about expecting individuals to review it online only. In 
addition, Representative Vern Buchanan discussed how the BETTER 
Act restates that SSA must continue to deliver Statements by 
mail and submitted for the record the report by SSA's Office of 
the Inspector General on the issuance of mailed Statements,\8\ 
while Social Security Subcommittee Chairman John B. Larson 
discussed the importance of mailing Statements to all workers 
as required by law.
---------------------------------------------------------------------------
    \8\Office of the Inspector General, Social Security Administration 
(2019). Issuance of Social Security Statements. Available at https://
oig.ssa.gov/sites/default/files/audit/full/pdf/A-03-18-50724.pdf
---------------------------------------------------------------------------

Committee action

    The Committee on Ways and Means marked up H.R. 5306, the 
Know Your Social Security Act of 2019, on December 11, 2019, 
and ordered the bill, as amended, favorably reported (with a 
quorum being present) by voice vote.

                      II. EXPLANATION OF THE BILL


              A. The Know Your Social Security Act of 2019


                             CURRENT LAW\9\
---------------------------------------------------------------------------

    \9\All discussions of Current Law in this report refer to current 
law as of the date of the markup (i.e., December 11. 2019) and do not 
reflect any subsequent law changes.
---------------------------------------------------------------------------
    Section 1143 of the Social Security Act requires SSA to 
send Statements on an annual basis to all individuals who are 
age 25 and older, who are not receiving Social Security 
benefits based on their own earnings records, and for whom SSA 
can obtain current mailing addresses.

                           REASONS FOR CHANGE

    SSA ceased mailing Statements to all workers age 25 and 
older in Fiscal Year 2011, citing budgetary constraints.\10\ 
Currently, SSA only mails Statements to individuals ages 60 and 
older who are not receiving Social Security. In addition, even 
among this limited group of seniors, SSA only mails Statements 
to individuals who have not registered for a mySocialSecurity 
online account. In Fiscal Year 2019, SSA mailed Statements to 
only about 15 million workers--out of more than 175 million 
workers with covered earnings.\11\ As a result, the only way 
for most people to see their Statement is to sign up for an 
online mySocialSecurity account and view it on SSA's website. 
According to SSA's Inspector General, relatively few workers 
view their Statements online.\12\
---------------------------------------------------------------------------
    \10\Michael J. Astrue, Commissioner, Social Security Administration 
(2011). Statement for the Record before the United States Senate, 
Committee on Appropriations, Subcommittee on Labor, Health and Human 
Services, Education, and Related Agencies. Available at https://
www.ssa.gov/legislation/SSA%20BudgetTestimony030911.pdf.
    \11\Office of the Inspector General, Social Security Administration 
(2019). Issuance of Social Security Statements. Available at https://
oig.ssa.gov/sites/default/files/audit/full/pdf/A-03-18-50724.pdf; and 
The 2019 Annual Report of the Board of trustees of the Federal Old-Age 
and Survivors Insurance and Federal Disability Insurance Trust Funds 
(2019 Trustees Report). Table IV.B3. Available at https://www.ssa.gov/
OACT/TR/2019/tr2019.pdf.
    \12\Office of the Inspector General, Social Security Administration 
(2019). Issuance of Social Security Statements. Available at https://
oig.ssa.gov/sites/default/files/audit/full/pdf/A 03 18 50724.pdf.
---------------------------------------------------------------------------
    The Committee believes it is imperative that workers 25 and 
older who have paid into Social Security and are not yet 
receiving benefits get an annual mailed Statement, unless a 
worker affirmatively chooses electronic delivery for that year. 
Moreover, the Committee believes that merely registering for an 
online mySocialSecurity account is not a sufficient indication 
that the individual would not want a mailed copy of their 
Statement. There are many reasons why an individual may 
register for an online mySocialSecurity account, as the portal 
allows people to check their application status, change their 
address or direct deposit, and request a replacement Social 
Security card, among other actions. Therefore, the legislation 
requires SSA to mail a copy of the Statement unless the 
individual proactively opts for electronic-only access to that 
year's Statement. The Committee expects SSA will allow an 
individual with an online mySocialSecurity account to set their 
delivery preferences each year, as situations and preferences 
can evolve over a person's lifetime.
    Receiving mailed Statements helps Americans know their 
projected benefits to better plan for a financially secure 
retirement, and helps them understand that Social Security also 
provides disability protections and survivor benefits. It is an 
annual reminder that workers have contributed to Social 
Security and earned benefits they can count on in the future. 
It also allows workers to review their Social Security earnings 
record and make corrections promptly to ensure the accuracy of 
their future Social Security benefits.
    Therefore, it is the view of the Committee that Statements 
should be mailed annually to all individuals ages 25 and older 
with covered earnings who are not receiving Social Security 
benefits, and for whom SSA can obtain current mailing 
addresses, unless the worker affirmatively chooses electronic 
delivery for that year.

                       EXPLANATION OF PROVISIONS

    The provision clarifies current law: that the requirement 
for the Social Security Administration (SSA) to provide annual 
Statements to most taxpayers means providing Statements by 
mail, unless the individual affirmatively chooses electronic 
delivery for that year; and that SSA may provide an on-demand 
Statement electronically when the requesting individual chooses 
electronic delivery for that request.

                             EFFECTIVE DATE

    The bill is effective upon enactment.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means during 
consideration of H.R. 5306, the Know Your Social Security Act 
of 2019, on December 11, 2019.
    The manager's amendment to the amendment in the nature of a 
substitute offered by Chairman Neal was adopted by a voice vote 
(with a quorum being present).
    The Chairman's amendment in the nature of a substitute, as 
amended, was adopted by a voice vote (with a quorum being 
present).
    The bill, H.R. 5306, as amended, was ordered favorably 
reported by voice vote (with a quorum being present).

                     IV. BUDGET EFFECTS OF THE BILL


               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill, H.R. 5306, as 
reported. The Committee agrees with the estimate prepared by 
the Congressional Budget Office (CBO), which is included below.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority. The 
Committee states further that the bill involves no new or 
increased tax expenditures.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of Rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided.




    H.R. 5306 would require the Social Security Administration 
(SSA) to mail paper statements to all eligible people who are 
age 25 or older unless they have elected not to receive such 
notifications. Statements would detail the amount of a 
recipient's current Social Security retirement or disability 
benefits and the amount to which dependents would be entitled.
    Under current law, SSA mails annual statements to people 
who are 60 or older, who have not started claiming benefits, 
and who do not have an online account with SSA. SSA estimates 
that it will spend $7 million in fiscal year 2020 to deliver 14 
million such statements.
    CBO assumes that H.R. 5306 will be enacted in fiscal year 
2020. Based on information from SSA, CBO expects that the 
agency will start sending the additional statements in April 
2021, but there would be some administrative costs in 2020 and 
2021 to prepare to send them out and to set up the option for 
people to decline the paper statement.
    CBO estimates that under H.R. 5306, SSA would send 140 
million more statements in 2022 when the policy is fully phased 
in. That estimate includes our expectation that about 5 percent 
of those eligible to receive a paper statement would opt out. 
CBO's estimate is based on current postal rates and information 
from SSA. Estimated costs grow over time because postage and 
printing costs rise and more statements would be mailed as the 
workforce grows.
    CBO estimates that implementing H.R. 5306 would cost $33 
million in 2021 and $345 million over the 2020-2025 period, 
assuming appropriation of the necessary amounts.
    The costs of the legislation, detailed in Table 1, fall 
within budget function 650 (Social Security) and are classified 
as off-budget.

                                   TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 5306
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By fiscal year, millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2020    2021    2022    2023    2024    2025    2026    2027    2028    2029    2030   2020-2025  2020-2030
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimated Authorization...................       1      39      78      81      84      86      89      92      95      98     101       369        844
Estimated Outlays.........................       1      33      68      76      82      85      88      91      94      97     100       345        815
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The CBO staff contact for this estimate is Justin Latus. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Director of Budget Analysis.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII and clause 
2(b)(1) of Rule X of the Rules of the House of Representatives, 
the Committee made findings and recommendations that are 
reflected in this report.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill contains no measure that authorizes funding, so no 
statement of general performance goals and objectives for which 
any measure authorizes funding is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

  D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   E. Duplication of Federal Programs

    In compliance with clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
to Congress pursuant to section 21 of Public Law 111 139; or 
(3) a program related to a program identified in the most 
recent Catalog of Federal Domestic Assistance, published 
pursuant section 6104 of title 31, United States Code.

                              F. Hearings

    In compliance with Sec. 103(i) of H. Res. 6 (116th 
Congress) the following hearing was used to develop or consider 
H.R. 5306: ``Improving Retirement Security for America's 
Workers,'' held February 6, 2019.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
proposed by the bill, as reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italics, existing law in 
which no change is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                          SOCIAL SECURITY ACT




           *       *       *       *       *       *       *
     TITLE XI--GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE 
SIMPLIFICATION

           *       *       *       *       *       *       *



Part A--General Provisions

           *       *       *       *       *       *       *



                   social security account statements


                         Provision Upon Request

  Sec. 1143. (a)(1) Beginning not later than October 1, 1990, 
the Commissioner of Social Security shall provide upon the 
request of an eligible individual a social security account 
statement (hereinafter referred to as the ``statement''). Such 
statement shall be provided by mail unless the requesting 
individual chooses electronic delivery for that request.
  (2) Each statement shall contain--
          (A) the amount of wages paid to and self-employment 
        income derived by the eligible individual as shown by 
        the records of the Commissioner at the date of the 
        request;
          (B) an estimate of the aggregate of the employer, 
        employee, and self-employment contributions of the 
        eligible individual for old-age, survivors, and 
        disability insurance as shown by the records of the 
        Commissioner on the date of the request;
          (C) a separate estimate of the aggregate of the 
        employer, employee, and self-employment contributions 
        of the eligible individual for hospital insurance as 
        shown by the records of the Commissioner on the date of 
        the request;
          (D) an estimate of the potential monthly retirement, 
        disability, survivor, and auxiliary benefits payable on 
        the eligible individual's account together with a 
        description of the benefits payable under the medicare 
        program of title XVIII; and
          (E) in the case of an eligible individual described 
        in paragraph (3)(C)(ii), an explanation, in language 
        calculated to be understood by the average eligible 
        individual, of the operation of the provisions under 
        sections 202(k)(5) and 215(a)(7) and an explanation of 
        the maximum potential effects of such provisions on the 
        eligible individual's monthly retirement, survivor, and 
        auxiliary benefits.
  (3) For purposes of this section, the term ``eligible 
individual'' means an individual--
          (A) who has a social security account number,
          (B) who has attained age 25 or over, and
          (C)(i) has wages or net earnings from self-
        employment, or (ii) with respect to whom the 
        Commissioner has information that the pattern of wages 
        or self-employment income indicate a likelihood of 
        noncovered employment.

                     Notice to Eligible Individuals

  (b) The Commissioner shall, to the maximum extent 
practicable, take such steps as are necessary to assure that 
eligible individuals are informed of the availability of the 
statement described in subsection (a).

                   Mandatory Provision of Statements

  (c)(1) By not later than September 30, 1995, the Commissioner 
shall provide a statement to each eligible individual who has 
attained age 60 by October 1, 1994, and who is not receiving 
benefits under title II and for whom a current mailing address 
can be determined through such methods as the Commissioner 
determines to be appropriate. In fiscal years 1995 through 1999 
the Commissioner shall provide a statement to each eligible 
individual who attains age 60 in such fiscal years and who is 
not receiving benefits under title II and for whom a current 
mailing address can be determined through such methods as the 
Commissioner determines to be appropriate. The Commissioner 
shall provide with each statement to an eligible individual 
notice that such statement is updated annually and is available 
upon request.
  (2) [Beginning not later than] (A) Beginning not later than  
October 1, 1999, the Commissioner shall provide by mail a 
statement on an annual basis to each eligible individual who is 
not receiving benefits under title II and for whom a mailing 
address can be determined through such methods as the 
Commissioner determines to be appropriate. With respect to 
statements provided to eligible individuals who have not 
attained age 50, such statements need not include estimates of 
monthly retirement benefits. However, if such statements 
provided to eligible individuals who have not attained age 50 
do not include estimates of retirement benefit amounts, such 
statements shall include a description of the benefits 
(including auxiliary benefits) that are available upon 
retirement.
  (B) In any case in which an eligible individual described in 
subparagraph (A) responds to an annual inquiry by the 
Commissioner relating to the mailing of the individual's 
statement by making an election that such statement for such 
year be provided in electronic form only, the requirements of 
this paragraph shall be deemed to be satisfied for such year 
with respect to the individual.

Disclosure to Governmental Employees of Effect of Noncovered Employment

  (d)(1) In the case of any individual commencing employment on 
or after January 1, 2005, in any agency or instrumentality of 
any State (or political subdivision thereof, as defined in 
section 218(b)(2)) in a position in which service performed by 
the individual does not constitute ``employment'' as defined in 
section 210, the head of the agency or instrumentality shall 
ensure that, prior to the date of the commencement of the 
individual's employment in the position, the individual is 
provided a written notice setting forth an explanation, in 
language calculated to be understood by the average individual, 
of the maximum effect on computations of primary insurance 
amounts (under section 215(a)(7)) and the effect on benefit 
amounts (under section 202(k)(5)) of monthly periodic payments 
or benefits payable based on earnings derived in such service. 
Such notice shall be in a form which shall be prescribed by the 
Commissioner of Social Security.
  (2) The written notice provided to an individual pursuant to 
paragraph (1) shall include a form which, upon completion and 
signature by the individual, would constitute certification by 
the individual of receipt of the notice. The agency or 
instrumentality providing the notice to the individual shall 
require that the form be completed and signed by the individual 
and submitted to the agency or instrumentality and to the 
pension, annuity, retirement, or similar fund or system 
established by the governmental entity involved responsible for 
paying the monthly periodic payments or benefits, before 
commencement of service with the agency or instrumentality.

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