42 U.S.C. § 910 : US Code - Section 910: Recommendations by Board of Trustees to remedy inadequate balances in Social Security trust funds

Search 42 U.S.C. § 910 : US Code - Section 910: Recommendations by Board of Trustees to remedy inadequate balances in Social Security trust funds

(a) Terms and conditions of recommendations
If the Board of Trustees of the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability Insurance Trust
Fund, the Federal Hospital Insurance Trust Fund, or the Federal
Supplementary Medical Insurance Trust Fund determines at any time
that the balance ratio of any such Trust Fund for any calendar year
may become less than 20 percent, the Board shall promptly submit to
each House of the Congress a report setting forth its
recommendations for statutory adjustments affecting the receipts
and disbursements of such Trust Fund necessary to maintain the
balance ratio of such Trust Fund at not less than 20 percent, with
due regard to the economic conditions which created such inadequacy
in the balance ratio and the amount of time necessary to alleviate
such inadequacy in a prudent manner. The report shall set forth
specifically the extent to which benefits would have to be reduced,
taxes under section 1401, 3101, or 3111 of the Internal Revenue
Code of 1986 would have to be increased, or a combination thereof,
in order to obtain the objectives referred to in the preceding
sentence.
(b) "Balance ratio" defined
For purposes of this section, the term "balance ratio" means,
with respect to any calendar year in connection with any Trust Fund
referred to in subsection (a) of this section, the ratio of -
(1) the balance in such Trust Fund as of the beginning of such
year, including the taxes transferred under section 401(a) of
this title on the first day of such year and reduced by the
outstanding amount of any loan (including interest thereon)
theretofore made to such Trust Fund under section 401(l) or
1395i(j) of this title, to
(2) the total amount which (for amounts which will be paid from
the Federal Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund, as estimated by the
Commissioner, and for amounts which will be paid from the Federal
Hospital Insurance Trust and the Federal Supplementary Medical
Insurance Trust Fund, as estimated by the Secretary) will be paid
from such Trust Fund during such calendar year for all purposes
authorized by section 401, 1395i, or 1395t of this title (as
applicable), other than payments of interest on, or repayments
of, loans under section 401(l) or 1395i(j) of this title, but
excluding any transfer payments between such Trust Fund and any
other Trust Fund referred to in subsection (a) of this section
and reducing the amount of any transfers to the Railroad
Retirement Account by the amount of any transfers into such Trust
Fund from that Account.