Must SSNs be removed from statements?

[John A]

Is anyone aware of any law that will require Social Security Numbers to be removed from benefit statements in the future?

[MGB]

There is a proposed law that is making its way through committees. It would require permission from the individual to use their SSN for any purpose whatsoever. Once that permission is granted, you would not be barred from using it on the statements. If you don't get permission, the plan administrator could not use it for identification purposes (it may even result in the plan administrator not knowing what it is), which would lead to not being able to put it on the statement.

Of course, all of this is unworkable and there is a lot of opposition to the bill as well as attempts to exempt uses like this.

Reference:

The Social Security Number Privacy and Identity Theft Prevention Act of 2000 (S. 848 and H.R. 4857) introduced by Senators Diane Feinstein (D-CA) and Judd Gregg (R-NH) in the Senate and by Representatives Clay Shaw (R-FL) and Robert Matsui (D-CA) in the House of Representatives.

Now, if I can only get my @*#$& bank to quit printing my SSN on my bank statements (right there with account numbers, etc.)

[Guest Gregory]

California prohibits reporting of SSNs unless required for a valid business need. Our legal counsel's review of the law determined reporting SSNs on statements didn't meet the valid business need rule. I'll see if I can run down the citation on Tuesday.

[david rigby]

I think OK has recently passed a statute on this as well.

IMHO, the ERISA pre-emption that some claim is likely to become a non-issue. As more states join this cause, Congress will be forced to act (not that I'm claiming that is a good thing).

[stephen]

It is my understanding that the California law only prohibits SSNO's from being printed on the participant statements or other documents being mailed to the participants. Thus, they can still be used for tracking purposes in the plan, on the census, summary of accounts, etc.