[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1104 Introduced in Senate (IS)]
106th CONGRESS
1st Session
S. 1104
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 SENATE OF THE UNITED STATES
May 24, 1999
Mr. Grams introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
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 towards 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 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 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 future 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 Amendment.--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 Senate
Sponsor introductory remarks on measure. (CR S5837)
Read twice and referred to the Committee on Finance.
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