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Herger Commends President Bush for Addressing Retirement Security

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Location: Washington, DC


Herger Commends President Bush for Addressing Retirement Security

Treasury Secretary responds to question on Personal Retirement Accounts

WASHINGTON Herger Commends President Bush for Addressing Retirement Security
Treasury Secretary responds to question on Personal Retirement Accounts

WASHINGTON, D.C. (February 8, 2005) -- During a hearing on President Bush's 2006 budget, Congressman Herger reiterated his strong belief that steps need to be taken to address the problems facing America's retirement security system, including Social Security. Testifying before the Committee was Treasury Secretary John Snow. Congressman Herger made the following comments:

"Social Security, and the greater retirement security system in America, is in serious trouble. If we don't act now, we won't be able to meet the future obligations to our children and grandchildren. I commend President Bush for taking action on this difficult issue.

"The essence of the problem is this - in 1945 there were 42 workers paying into the system for every one beneficiary. Today we're down to about three. In 2018, we'll start paying out more than the system takes in from taxes. Improving Social Security is not a Republican or Democratic issue. It's something we all have to be concerned about, and now. The cost of doing nothing or delaying action just makes the problem more difficult and costly for all Americans.

"As President Bush has said, for today's retirees and those near retirement, nothing is going to happen to Social Security. Benefits won't change. But Congress will have to look at all other options on the table, because there is no silver bullet. One option we need to consider is personal retirement accounts. As Secretary Snow said, people deserve a chance to do better than they would under Social Security. Such a system would work like the Thrift Savings Plan - which is available to Congressmen and federal employees. Workers could choose to safely invest a portion of their Social Security taxes in TSP-like personal retirement accounts, and build a nest egg for their own retirement.

"Thanks to President Bush, we are discussing and addressing the problems of the current system now, before it is too late and too costly."

http://gop.gov/item-news.asp?docId=60201

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