42 U.S.C. § 910 — Recommendations by Board of Trustees to remedy inadequate balances in Social Security trust funds

(a) If the Board of Trustees for the Old-Age and Survivors Insurance and Disability Insurance funds, Hospital Insurance Fund, or Supplementary Medical Insurance Fund decides that a fund’s balance ratio for a calendar year may fall below 20%, it must promptly report to each House recommendations for statutory changes to receipts and payments needed to keep the ratio at least 20%. The Board must consider the economic conditions causing the shortfall and the prudent time needed to fix it. The report must specifically say how much benefits would need to fall, taxes under Internal Revenue Code sections 1401, 3101, or 3111 would need to rise, or both. (b) “Balance ratio” means, for a calendar year and listed fund, the ratio of: (1) the fund balance at the year’s start, including taxes transferred on that first day under section 401(a), minus outstanding loans and interest under section 401(l) or 1395i(j), to (2) the total estimated amount paid from the fund during the year for purposes authorized by section 401, 1395i, or 1395t, excluding loan interest and repayments, transfers between listed funds, and the amount of Railroad Retirement Account transfers after reducing them by transfers into the fund from that Account. Commissioner estimates apply to Old-Age, Survivors, and Disability payments; Secretary estimates apply to Hospital and Supplementary Medical Insurance payments.