article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Social Security Trust Funds Management Act of 1999''. SEC. 2. INVESTMENT OF THE FEDERAL OLD-AGE AND SURVIVORS INSURANCE TRUST FUND AND THE FEDERAL DISABILITY INSURANCE TRUST FUND. (a) In General.--Section 201(d) of the Social Security Act (42 U.S.C. 401(d)) is amended to read as follows: ``(d)(1) Subject to paragraphs (2) and (3), it shall be the duty of the Managing Trustee to invest such portion of the Trust Funds as is not, in the judgment of the Trustee, required to meet current withdrawals. The Managing Trustee may purchase interest-bearing obligations of the United States or obligations guaranteed as to both principal and interest by the United States, on original issue or at the market price. ``(2)(A) If the Managing Trustee, after consultation with the Commissioner of Social Security, determines that the purchase of obligations issued in accordance with paragraph (4) is in the best interest of paying current and future benefits under this title, and will not jeopardize the payment of such benefits, the Managing Trustee may purchase such obligations. ``(B) If the Commissioner of Social Security does not concur with the investment decisions of the Managing Trustee, or believes that other investment strategies are appropriate, the Commissioner shall promptly so inform the President and Congress in writing. ``(3) In investing contributions made to the Trust Funds, the Managing Trustee may not invest such contributions in private financial markets. Neither the Managing Trustee nor any other officer or employee of the Federal Government shall direct private pension plans as to what type of investments to make or in which financial markets to invest. ``(4) The purposes for which obligations of the United States may be issued under chapter 31 of title 31, United States Code, are hereby extended to authorize the issuance at par of public-debt obligations for purchase by the Trust Funds. Such obligations issued for purchase by the Trust Funds shall have maturities fixed with due regard for the needs of the Trust Funds and shall bear interest at a rate equal to the average market yield (computed by the Managing Trustee on the basis of market quotations as of the end of the calendar month next preceding the date of such issue) on all marketable interest-bearing obligations of the United States then forming a part of the public debt which are not due or callable until after the expiration of four years from the end of such calendar month; except that where such average market yield is not a multiple of one-eighth of 1 percent, the rate of interest of such obligations shall be the multiple of one-eighth of 1 percent nearest such market yield. Each obligation issued for purchase by the Trust Funds under this subsection shall be evidenced by a paper instrument in the form of a bond, note, or certificate of indebtedness issued by the Secretary of the Treasury setting forth the principal amount, date of maturity, and interest rate of the obligation, and stating on its face that the obligation shall be incontestable in the hands of the Trust Fund to which it is issued, that the obligation is supported by the full faith and credit of the United States, and that the United States is pledged to the payment of the obligation with respect to both principal and interest.''. (b) Effective Date.--The amendment made by subsection (a) shall take effect on the date of enactment of this Act. SEC. 3. INFORMATION REQUIREMENTS FOR SOCIAL SECURITY ACCOUNT STATEMENTS. (a) In General.--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, and, alternatively, in 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, 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 Through Means Such As the Internet.--Section 1143(c)(2) of the Social Security Act (42 U.S.C. 1320b-13(c)(2)) is amended-- (1) in the first sentence, by inserting ``(which shall include the Internet as soon as the Commissioner of Social Security determines that adequate measures are in place to protect the confidentiality of the information contained in the statement)'' before the period; and (2) by striking the second and third sentences. (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 with fiscal year 2000.
summary: Amends SSA title XI to modify the required contents of social security account statements, including changes requiring such statements to contain information on the name, age, gender, mailing address, and marital status of the eligible individual, as well as additional specified new contents. Revises provisions on the mandatory provision of such statements, with changes to incorporate the Internet as a means of provision as soon as the Commissioner of Social Security determines that adequate confidentiality safeguards are in place. Replaces each reference to the Secretary with the Commissioner of Social Security each place such reference occurs in SSA title XI provisions on social security account statements.