Straight Talk on Social Security Act of 2003

        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 722 Introduced in House (IH)]

108th CONGRESS
1st Session
H. R. 722

To amend title XI of the Social Security Act to include additional
information in Social Security account statements.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

February 12, 2003

Mr. DeMint (for himself, Ms. McCarthy of Missouri, Mr. Akin, Mr.
Bartlett of Maryland, Mr. Crane, Mr. Forbes, Mr. Frost, Mr. Hayes, Mr.
Isakson, Mr. Sam Johnson of Texas, Mrs. Myrick, Mr. Pitts, Mr. Rogers
of Michigan, Mr. Ryan of Wisconsin, Mr. Ryun of Kansas, Mr. Sessions,
Mr. Shimkus, Mr. Toomey, Mr. Wilson of South Carolina, and Mr. Wynn)
introduced the following bill; which was referred to the Committee on
Ways and Means

_______________________________________________________________________

A BILL

To amend title XI of the Social Security Act to include additional
information in Social Security account statements.

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'';
(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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