Why We Need to Fix Social Security

WHY WE NEED TO FIX SOCIAL SECURITY

by Senator Jim Bunning

Feb 11, 2005 - I have been working on the Social Security issue for nearly ten years in Congress and the time is now to fix the current system. With nine children, and thirty-five grandchildren, I want to make sure Social Security will be there for them and future generations to come. Social Security is sometimes called the "Third Rail" of politics - touch it and die. But Congress must not be afraid of making tough choices, because if we do not do anything the problem with Social Security will turn into a full-fledged crisis.

When I served in the House of Representatives, I was the Chairman of the House's Social Security Subcommittee. We did great work. The Committee strengthened Social Security by making the Social Security Administration an independent agency. But as we head into the 21st century, the Social Security system is in trouble, and the longer we take to act the worse things are going to get.

In only 13 years, the government will begin to pay out more in Social Security benefits than it gets in revenue. The shortfall will steadily increase each passing year until 2042 when Social Security will be bankrupt. You might think 2042 is way down the road, but it is the retirement year of young workers who are today in their mid-twenties. These are the pure and simple facts. If we do not act now, our children and grandchildren will suffer the consequences of our inaction.
As a result of these challenges ahead, Social Security will not be able to pay out full benefits to future generations unless payroll taxes are increased massively. Another option is huge benefit cuts to the Social Security program. Both options are unacceptable. Increasing the payroll taxes will stall the American economy, and making large cuts to Social Security would be disastrous for our nation's retirees.

Personal retirement accounts will offer a life preserver to save Social Security. These voluntary accounts will enable younger workers to build a "nest egg" for retirement at a higher yield than the current system pays out. One of the biggest benefits with personal retirement accounts is that it is yours. The government cannot touch it, and you will be able to pass it along to your family.

You might have questions on how the government could administer personal retirement accounts effectively. Well, the federal government is already administering a similar program to all federal employees known as the Thrift Savings Plan. Personal retirement account contributions will be collected and records will be maintained by a central administrator.

Some on the other side of the debate are scaring retirees and those on the verge of retiring by saying that their Social Security benefits will be stripped. These statements cannot be further from the truth. Social Security will remain intact for those at or near the retirement age.

It is always easy to do nothing in politics, but I came to Congress to make a difference. As a member of the Senate Finance Committee I will have a seat at the table in crafting real Social Security reform. Personal savings accounts will rescue Social Security so that future generations will have something to count on when they retire.

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