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Since 1935, Social Security has provided seniors in Iowa and across the country with a stable income in their retirement years, as well as valuable insurance in case of disability.
There has been much talk about the future solvency of Social Security. With the looming retirement of "baby boomers," a large burden will be placed on Social Security. While we need to work together on common sense reform to address this problem, the program is not broken. A June, 2004 report by the Congressional Budget Office (CBO) estimates that Social Security will be able to pay promised benefits until 2052, which is 10 years longer than the Social Security Trustees had previously projected. There is reason for reform, but not for adopting any harmful changes to the system, such as privatization.
President Bush is making Social Security reform a major focus of his agenda. The President’s approach to partially privatize Social Security is a disappointment. His plans call for cutting benefits by one third or more, even for those who choose not to risk their money in private accounts. These proposals would not provide the same stable benefits the current system provides. Furthermore, a transition to privatization would cost the Treasury trillions of dollars overtime. Given the massive federal deficits run up under this Administration’s fiscal policies, the government cannot afford such a cost.
I am especially concerned about the impact this plan will have on people with disabilities. A major part of Social Security is the disability insurance that it provides to workers. Currently, more than 6 million Americans rely on Social Security disability benefits. For many, that disability check is 100-percent of their income. The President’s privatization commission has assumed that disability benefits would be cut by the same 30-percent retirement benefits for their calculations to work. Private accounts cannot make up the difference for a worker who becomes disabled at an early age. This is completely unacceptable and is being left out of the President’s discussions on Social Security.
I assure you that I will continue to fight to protect Social Security. This program has been a tremendous success and is critical to the futures of Iowa’s seniors and future retirees.
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