text: 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.
target: 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.
feat_title: Social Security Trust Funds Management Act of 1999