Saving Social Security: Helping Individuals Build Wealth

"A defining American promise" — a strong phrase from a strong leader, with which we strongly agree. The Social Security program is the touchstone by which the American people now gauge the reliability, competence, and integrity of government. Unfortunately, the gauge is registering real problems. This is not breaking news to most Americans. They have known for years of the deterioration of Social Security's fiscal health but fully expected their leaders to address it. But with each passing year leading to an ever grimmer prognosis, the gauge has dropped, notch by notch, into the red zone.

Since 1992, Social Security's unfunded liability has increased from $7.4 trillion to $8.8 trillion. Its trustees project that, by the year 2015, there will not be enough cash coming in from payroll taxes to pay currently promised Social Security benefits.  

The current administration has treated Social Security as a slogan rather than a priority, demanding billions for new government programs instead of attending to the stability of our most important domestic program. Even worse, their proposal to let the government buy stocks on behalf of the Social Security trust fund was an unprecedented power grab over the entire American economy. Doing nothing is no longer an option, for it leads to three bitter choices in the near future: crippling levels of payroll taxation, significantly reduced benefits for Social Security recipients, or a crushing burden of public debt for generations to come.

We reject each of those outcomes and accept the mandate which others have abandoned: To keep faith with both the past and the future by saving Social Security. For starters, congressional Republicans stopped the annual raids on the Social Security trust funds by balancing the federal budget without that program's surplus. In addition, government agencies have and should continue efforts to improve the accuracy of economic indicators. Now a Republican president will forge a national consensus on these principles to protect this national priority:

• Anyone currently receiving Social Security, or close to being eligible for it, will not be impacted by any changes.
  

• Key changes should merit bipartisan agreement so any reforms will be a win for the American people rather than a political victory for any one party.
  

• Real reform does not require, and will not include, tax increases.
  

• Personal savings accounts must be the cornerstone of restructuring. Each of today's workers should be free to direct a portion of their payroll taxes to personal investments for their retirement future. It is crucial that individuals be offered a variety of investment alternatives and that detailed information be provided to each participant to help them judge the risks and benefits of each plan. Today's financial markets offer a variety of investment options, including some that guarantee a rate of return higher than the current Social Security system with no risk to the investor.
  

• Choice is the key. Any new options for retirement security should be voluntary, so workers can choose to remain in the current system or opt for something different.
  

• This is a challenge that demands the kind of presidential leadership the country has not seen in almost a decade. Governor Bush has shown his commitment by proposing a bold alternative to the collapse of Social Security. Along with Americans everywhere, we pledge to join him in this endeavor of a lifetime.

Protecting retirement security. We must protect the retirement security of America's workers and their families. Workers should never lose all their savings because their employer locked those savings into the company's own stock. We will bar that practice. We need to require honest information and full disclosure, and protect older workers from unfair treatment when their benefits are converted to cash balance plans. At the same time, we will strengthen and promote both defined-contribution and defined-benefit pension plans, and increase the portability of retirement savings and help all families save.

We are absolutely committed to preserving Social Security. It is a compact across the generations that has helped tens of millions of Americans live their retirement years in dignity instead of poverty. Democrats believe in the progressive, guaranteed benefit that has ensured that seniors and people with disabilities receive a benefit not subject to the whims of the market or the economy. We oppose privatizing Social Security or raising the retirement age. We oppose reducing the benefits earned by workers just because they have also earned a benefit from certain public retirement plans. We will repeal discriminatory laws that penalize some retired workers and their families while allowing others to receive full benefits. Because the massive deficits under the Bush Administration have raided hundreds of billions of dollars from Social Security, the most important step we can take to strengthen Social Security is to restore fiscal responsibility. Social Security matters to all Americans, Democrats and Republicans, and strengthening Social Security should be a common cause.

Social Security