Senator Kay Bailey Hutchison has re-introduced her bill known as the Defend and Save Social Security Act of 2012(S-3533).
The purpose of the legislation is to keep Social Security solvent for the next 75 years.
"Social Security is a trust between the American people and their government. We all pay in and when we need it - it is there for us as promised. But, according to the latest projections from the chief actuary of the Social Security Administration, if we don't do something soon, there is a danger the promise cannot be fulfilled for many who are contributing today.
"The truth is; we can guarantee the solvency of Social Security if we have the courage to make a few modest changes to the current system. They include; minor adjustments in the retirement age, small adjustments to cost of living increases, no new taxes and no cut in core benefits.
"The American people are frustrated by Washington's inability to address challenges like Social Security reform. It is even more frustrating when the solution is so simple and apparent.
"Passage of the Defend and Save Social Security Act will demonstrate that we - as a nation - can solve any problem we confront, but more importantly, it will ensure Social Security will be there for generations to come."
Senator Hutchison's Defend and Save Social Security Act of 2012
Demographic Changes Are Severely Impacting Social Security
* 1935: 42 workers supported 1 retiree
* 1955: 9 workers supported 1 retiree
* 2011: 3 workers support 1 retiree
* 2035: 2 workers will support 1 retiree
Why Social Security Reform Cannot Wait
* According to the projections made by the Trustees' 2012 report, Social Security trust fund assets will be fully exhausted by 2033.
* Under current law, retirees will have their Social Security benefits cut by 25 percent in approximately 25 years. In today's dollars that would mean an average cut of $308 per month.
* The unfunded obligation of the Trust Fund over the 75-year period is $8.6 trillion, an unprecedented $2.1 trillion increase from projections made just one year ago.
Senator Hutchison's Solution:
Key Reforms of Defend & Save Social Security Act
* Gradually raises the Normal Retirement age to 67 by 2019, 69 by 2027, and 70 by 2031.
* Gradually raises the Early Retirement Age to 63 by 2019 and 64 by 2023.
* Adjusts the annual cost of living increase to start when inflation exceeds one percent in a given year or about $12 per month, as opposed to an average reduction of $308 per month if nothing is done.
* Does not affect anyone who is currently 59 years old or older.
* DOES NOT RAISE TAXES.
* DOES NOT CUT CORE BENEFITS.
Key Results of Defend & Save Social Security Act
* Establishes a fully safe and secure Social Security system that will make good on its promises to all retirees by restoring confidence in currently near bankrupt program.
* Eliminates entire Trust Fund shortfall, defending seniors from the coming automatic 25 percent benefits cut in 2033.
* Decreases deficits by $631 billion over the next 10 years.
* Reduces publicly held debt by $9 trillion by 2086.
* Saves Social Security for current and future generations.