--- kind: "section" citation: "42 U.S.C. § 910" title: "42" title_heading: "The Public Health and Welfare" number: "910" heading: "Recommendations by Board of Trustees to remedy inadequate balances in Social Security trust funds" release: "119-102" url: "https://uscodex.org/usc/42/910" units: - "Chapter 7 — Social Security" - "Subchapter VII — Administration" --- # §910. Recommendations by Board of Trustees to remedy inadequate balances in Social Security trust funds - (a) **Terms and conditions of recommendations—** If the [Board](/usc/42/10261.md?p=2) of Trustees of the Federal Old-Age and Survivors Insurance [Trust](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3) and the Federal Disability Insurance [Trust](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3), the Federal [Hospital](/usc/42/1395dd.md?p=e-5) Insurance [Trust](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3), or the Federal Supplementary Medical Insurance [Trust](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3) determines at any time that the [balance ratio](#b) of any such [Trust](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3) for any calendar year may become less than 20 percent, the [Board](/usc/42/10261.md?p=2) 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](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3) necessary to maintain the [balance ratio](#b) of such [Trust](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3) at not less than 20 percent, with due regard to the economic conditions which created such inadequacy in the [balance ratio](#b) 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](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3) referred to in [subsection (a)](#a), the ratio of— - (1) the balance in such [Trust](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3) as of the beginning of such year, [including](/usc/42/1301.md?p=b) the taxes transferred under [section 401(a) of this title](/usc/42/401.md?p=a) on the first day of such year and reduced by the outstanding amount of any loan ([including](/usc/42/1301.md?p=b) interest thereon) theretofore made to such [Trust](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3) under section [401(l)](/usc/42/401.md?p=l) or [1395i(j)](/usc/42/1395i.md?p=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](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3) and the Federal Disability Insurance [Trust](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3), as estimated by the [Commissioner](/usc/42/12302.md?p=1), and for amounts which will be paid from the Federal [Hospital](/usc/42/1395dd.md?p=e-5) Insurance [Trust](/usc/42/12854.md?p=6) and the Federal Supplementary Medical Insurance [Trust](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3), as estimated by the [Secretary](/usc/42/1301.md?p=a-6)) will be paid from such [Trust](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3) during such calendar year for all purposes authorized by section [401](/usc/42/401.md), [1395i](/usc/42/1395i.md), or [1395t](/usc/42/1395t.md) of this title (as applicable), other than payments of interest on, or repayments of, loans under section [401(l)](/usc/42/401.md?p=l) or [1395i(j)](/usc/42/1395i.md?p=j) of this title, but excluding any transfer payments between such [Trust](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3) and any other [Trust](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3) referred to in [subsection (a)](#a) and reducing the amount of any transfers to the Railroad Retirement Account by the amount of any transfers into such [Trust](/usc/42/12854.md?p=6) [Fund](/usc/42/12854.md?p=3) from that Account. ## Source credit (Aug. 14, 1935, ch. 531, title VII, § 709, as added Pub. L. 98–21, title I, § 143, Apr. 20, 1983, 97 Stat. 102; amended Pub. L. 99–272, title XII, § 12106, Apr. 7, 1986, 100 Stat. 286; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 103–296, title I, § 108(a)(3), Aug. 15, 1994, 108 Stat. 1481.) ## Notes ### Editorial Notes ### References in Text The Internal Revenue Code of 1986, referred to in subsec. (a), is classified generally to Title 26, Internal Revenue Code. ### Amendments 1994—Subsec. (b)(2). Pub. L. 103–296 substituted “(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)” for “(as estimated by the Secretary)”. 1986—Subsec. (a). Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”. Subsec. (b)(1). Pub. L. 99–272 amended par. (1) generally. Prior to amendment, par. (1) read as follows: “the balance in such Trust Fund, 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, as of the beginning of such year, to”. ### Statutory Notes and Related Subsidiaries ### Effective Date of 1994 Amendment Amendment by Pub. L. 103–296 effective Mar. 31, 1995, see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of this title. ### Effective Date of 1986 Amendment Amendment by Pub. L. 99–272 effective on first day of month following April 1986, see section 12115 of Pub. L. 99–272, set out as a note under section 415 of this title.