Social Security Reform

The Trustees of the Social Security trust fund released a report on March 25, 2008, which states that the fund will begin to spend more than it takes in beginning in 2017, and that it will be exhausted in 2042. John wants to preserve Social Security for future generations, and will continue the fight for reforms, understanding that the worst course of action we can take is to do nothing.

A supporter of Social Security reform since his first election to Congress in 1996, John introduced the “Social Security Personal Savings Guarantee and Prosperity Act of 2005” in the United States Senate on April 20, 2005. The comprehensive legislation, similar to the “Social Security Personal Savings Guaranty and Prosperity Act of 2004,” which he introduced on September 9, 2004, aims to empower younger workers with more control over their financial future and establish long-term solvency for America’s retirement security system.

The interests of seniors and those near retirement who have paid into the Social Security system must be protected because many Americans have made retirement plans based upon its existing structure. To disregard the commitment made to these people by the federal government would be grossly unfair. John’s legislation would not change the benefits of any current Social Security beneficiary or anyone who will retire into the system during the next 10 years.

John supports efforts to modernize Social Security, and to give younger workers the option to set aside a portion of the Social Security taxes they pay each week in a personal retirement account. Such changes would modernize the system - not replace it - and would give workers greater control over their retirement income. These personal accounts would be regulated to ensure appropriate diversification, disclosure, and protection from political manipulation.

Personal accounts would provide a better return during a worker’s career than the current system provides, even when periodic recessions are calculated. This increased return would most benefit those workers who depend on Social Security as their primary source of income during retirement, as opposed to wealthy individuals who rely primarily on other sources of retirement income.