By Patty Gaul, Director of Legislative Affairs, TREA Senior Citizens League
Even before the Medicare prescription drug bill was signed into public law, the issue of Social Security reform was back in the news as an agenda item for the second session of the 108th Congress. A major component of Social Security reform pushed by President Bush appears to be partial privatization of Social Security. As the President sees it, private savings accounts will grant ownership and lead to a feeling of independence with respect to retirement funds, something that isn’t present with the current system. TSCL believes, however, that private accounts could divert money out of the Social Security Trust Fund, and will speed up its insolvency. Also, we consider it risky to assume private retirement accounts might return a given amount based on historical stock market performance. No professionally managed mutual fund is allowed to make such a claim.
TSCL wants to see real Social Security reform enacted in order to make the system solvent and sustainable, not to risk the trust funds to the ups and downs of the market. In reforming Social Security, TSCL is adamant that any changes be made in such a way as to avoid “giving birth” to a new generation of Notch babies. We strongly believe that reform measures should not be predicated on economic forecasts. We also advocate that reform measures be phased in gradually, and that adequate protections are guaranteed for those individuals who expect to retire shortly after such reforms go into effect. Finally, we encourage Congress and the White House to act sooner rather than later, to ease the severity of the changes needed to ensure the viability of the program.
When we meet with Members of Congress and their staffs, we often are told that they believe the issue of the Notch will be addressed when Social Security is reformed. We seek a remedy as soon as possible, whether it be a freestanding bill or part of a more comprehensive package.
TSCL’s mission includes protecting the earned benefits of seniors. We support Congressman Gene Taylor’s legislation (see http://www.tscl.org/NewContent/102140.asp) to lock Social Security and other trust fund surpluses off budget and to prevent the monies from being used for purposes other than to pay benefits to the seniors intended to receive those benefits.
Finally, we are concerned that proposals to allow for a totalization agreement with Mexico or to grant amnesty and Social Security benefits to individuals for illegal work will greatly compromise the Social Security program.
Source: “Social Security Reform Back on the Table,” Foxnews.com, 12/04/03
April 2004
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