Social Security Reform

It's widely acknowledged that Social Security faces significant challenges with respect to its funding structure. The latest projection by Social Security's Board of Trustees reveals that the program's annual costs will exceed payroll tax revenues as early as 2016, and the Social Security Trust Fund, comprised of several years' worth of payroll tax surpluses, will be totally depleted by 2036. Anticipated revenues for years beyond 2036 are expected to be sufficient to pay only 78 percent of scheduled benefits. The options available to meet this funding shortfall and maintain the program's current benefit structure are limited and pose an enormous challenge to congressional policymakers.

Since President George W. Bush made a push for Social Security reform in the 109th Congress, a number of proposals addressing the program have been offered by individual members of the House and the Senate. Rep. Petri is particularly interested in the long-term viability of Social Security and has paid close attention to the details of the various plans. Policy and politics, however, do not always cooperate, and intense political jockeying prevented congressional consideration of any reform package.

For any reform to be credible, it must address the financing of current as well as future retirement benefits. Additionally, it's imperative that Social Security reform be accomplished in such a way as to represent a consensus and not be the work of one political party or the other. This is one of the most vital long term problems facing our nation and should be a significant topic of debate in Congress.

The 111th Congress could present an opportunity to move this debate forward in a constructive way. A new President took office in January, and the congressional majority is now held by those most opposed to past reform efforts. The problems facing the program have not gone away, and the clock is ticking down toward 2016. Hopefully, the next few years will see progress on this key issue.