[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 247 Introduced in House (IH)]
106th CONGRESS
1st Session
H. R. 247
To amend the Social Security Act to provide simplified and accurate
information on the Social Security trust funds, and personal earnings
and benefit estimates to eligible individuals.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 6, 1999
Mr. Sanford (for himself, Mr. Bilbray, Mr. Ewing, Mr. Graham, Mr.
Hansen, Mr. Hoekstra, Mr. Sessions, and Mr. Souder) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Social Security Act to provide simplified and accurate
information on the Social Security trust funds, and personal earnings
and benefit estimates to eligible individuals.
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 ``Social Security Information Act of
1999''.
SEC. 2. FINDINGS.
Congress finds that--
(1) information regarding the solvency of the social
security trust funds, and personal earnings and benefits
estimates is vital for working Americans to plan a financially
secure retirement;
(2) over the next 35 years, the number of American people
age 65 and older will double, while the number of people age 20
to 64 will increase by only 20 percent, and these demographic
changes will have a significant impact on the future of the
social security system;
(3) simplified and accurate information regarding the
social security system is needed to enable working Americans to
understand and adjust to those demographic changes;
(4) More than 50 percent of the workers in the United
States do not have a pension and that percentage is increasing
for younger age groups, 50 percent of families in the United
States have less than $1,000 in net financial assets, and the
median amount of savings among adults who are in their late
50s, the age of a worker facing immediate retirement, is still
less than $10,000;
(5) lack of information has, in part, caused poor financial
planning for future retirement, resulting in insufficient
savings;
(6) the General Accounting Office reports that the Personal
Earnings and Benefits Estimate Statements (PEBES) initiative is
an important step toward better informing the public about the
programs and benefits under the social security system, but
extensive revisions to the PEBES are needed to ensure better
understanding of that system and effective communication to the
general public about that system; and
(7) public awareness of the long-term financial soundness
of the social security system will facilitate necessary reform
of that system and increase public confidence in the system.
SEC. 3. PURPOSES.
The purposes of this Act are--
(1) to require the Commissioner of Social Security to
provide simple and accurate information on the fiscal status of
the social security trust funds and on the personal earnings
and benefits estimates of all eligible individuals in order to
allow working Americans to better plan their retirement;
(2) to prohibit the use of any message or design relating
to such information that may mislead or confuse the general
public; and
(3) to build public confidence in the social security
system through the requirement of full disclosure and increased
awareness of the fiscal soundness of the system.
SEC. 4. INFORMATION REQUIREMENTS FOR STATEMENTS.
(a) Information Requirements for Social Security Account
Statement.--Section 1143(a) of the Social Security Act (42 U.S.C.
1320b-13(a)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (B), by inserting ``, including
a separate estimate of the amount of interest earned on
the contributions,'' after ``disability insurance'';
(B) in subparagraph (C)--
(i) by inserting ``, including a separate
estimate of the amount of interest earned on
the contributions,'' after ``hospital
insurance''; and
(ii) by striking ``and'' after the
semicolon;
(C) in subparagraph (D), by striking the period at
the end and inserting a semicolon;
(D) by redesignating subparagraphs (A), (B), (C),
and (D) as subparagraphs (B), (C), (D), and (E),
respectively;
(E) by inserting after the matter preceding
subparagraph (B), as redesignated by subparagraph (D),
the following:
``(A) the name, age, gender, mailing address, and
marital status of the eligible individual;'';
(F) by adding at the end the following:
``(F) the total amount of the employer and employee
contributions for the eligible individual for old-age
and survivors insurance benefits, as of the end of the
month preceding the date of the statement, in both
actual dollars and dollars adjusted for inflation;
``(G) the projected value of--
``(i) the aggregate amount of the employer
and employee contributions for old-age and
survivors insurance benefits that are expected
to be made by or on behalf of the individual
prior to the individual attaining retirement
age, in both actual dollars and dollars
adjusted for inflation;
``(ii) the annual amount of old-age and
survivors insurance benefits that are expected
to be payable on the eligible individual's
account for a single individual and for a
married couple, in dollars adjusted for
inflation;
``(iii) the total amount of old-age and
survivors insurance benefits payable on the
eligible individual's account for the
individual's life expectancy, in dollars
adjusted for inflation, identifying--
``(I) the life expectancy assumed;
``(II) the amount of benefits
received on the basis of each $1 of
contributions made by or on behalf of
the individual; and
``(III) the projected annual rate
of return for the individual, taking
into account the date on which the
contributions are made in the eligible
individual's account and the date on
which the benefits are paid;
``(iv) the total amount of old-age and
survivors insurance benefits that would have
accumulated on the eligible individual's
account on the date on which the individual
attains retirement age if the contributions for
such individual had been invested in Treasury
10-year saving bonds at the prevailing interest
rate for such bonds as of the end of the month
preceding the date of the statement, in dollars
adjusted for inflation, identifying--
``(I) the date of retirement
assumed;
``(II) the interest rate used for
the projection; and
``(III) the amount that would be
received on the basis of each $1 of
contributions made by or on behalf of
the individual;
``(H) the average annual rate of return, adjusted
for inflation, on the Treasury 10-year saving bond as
of the date of the statement;
``(I) the average annual rate of return, adjusted
for inflation, on the Standard and Poor's 500, or an
equivalent portfolio of common stock equities that are
based on a broad index of United States market
performance, for the preceding 25 years;
``(J) a brief statement that identifies--
``(i) the balance of the trust fund
accounts as of the end of the month preceding
the date of the statement;
``(ii) the annual estimated balance of the
trust fund accounts for each of the succeeding
30 years; and
``(iii) the assumptions used to provide the
information described in clauses (i) and (ii),
including the rates of return and the nature of
the investments of such trust fund accounts;
and
``(K) a simple 1-page summary and comparison of the
information that is provided to an eligible individual
under subparagraphs (G), (H), and (I).''; and
(2) by striking paragraph (3) and inserting the following:
``(3) The estimated amounts required to be provided in a
statement under this section shall be determined by the
Commissioner using a general methodology for making such
estimates, as formulated and published at the beginning of each
calendar year by the Board of Trustees of the trust fund
accounts. A description of the general methodology used shall
be provided to the eligible individual as part of the statement
required under this section.
``(4) The Commissioner of Social Security shall notify an
individual who receives a social security account statement
under this section that the individual may request that the
information described in paragraph (2) be determined on the
basis of relevant information provided by the individual,
including information regarding the individual's income,
marital status, date of retirement, or race.
``(5) For purposes of this section--
``(A) the term `dollars adjusted for inflation'
means--
``(i) dollars in constant or real value
terms on the date on which the statement is
issued; and
``(ii) an amount that is adjusted on the
basis of the Consumer Price Index.
``(B) the term `eligible individual' means an
individual who--
``(i) has a social security account number;
``(ii) has attained age 25 or over; and
``(iii) has wages or net earnings from
self-employment; and
``(C) the term `trust fund account' means--
``(i) the Federal Old-Age and Survivors
insurance Trust Fund; and
``(ii) the Federal Disability Insurance
Trust Fund.''.
(b) Mandatory Provision of Statements.--Section 1143(c)(2) of the
Social Security Act (42 U.S.C. 1320b-13(c)(2)) is amended by striking
``With respect to'' and all that follows.
(c) Technical Amendments.--Section 1143 of the Social Security Act
(42 U.S.C. 1320b-13) is amended by striking ``Secretary'' each place it
appears and inserting ``Commissioner of Social Security''.
(d) Effective Date.--The amendments made by this Act shall apply to
statements provided for fiscal years beginning after the date of
enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Referred to the Subcommittee on Social Security.
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