April
28, 2005 WASHINGTON
(The White House)
- Today In A Primetime
News Conference,
The President
Laid Out His Vision
For Moving Forward
With Bipartisan
Social Security
Reform. The American
people understand
that Social Security
is headed for
serious financial
trouble and the
President believes
it is our duty
to make Social
Security permanently
solvent. The President
also believes
it is our responsibility
to improve the
system by directing
extra help to
those most in
need and making
it a better deal
for younger workers.
As Congress
Begins Work
On Legislation,
The President
Outlined Three
Goals: ensure
that future
generations
receive benefits
equal to or
greater than
today's seniors;
protect those
who depend on
Social Security
the most; and
replace the
empty promises
being made to
younger workers
with real money.
The President
Made Clear That
Some Things
Will Not Change.
Seniors and
people with
disabilities
will continue
to get their
checks, and
all Americans
born before
1950 will also
receive their
full benefits.
Background:
A Reformed System
that Strengthens
Social Security
For Those In
Need
Future Generations
Receive Benefits
Equal To Or
Greater Than
Today's Seniors.
Under any plan
to reform Social
Security, future
generations
should receive
benefits equal
to or greater
than the benefits
that seniors
receive today.
- Millions
Of Americans
Depend On
Social Security
As A Primary
Source Of
Income. As
a matter of
fairness,
the fundamental
promise of
Social Security
must be kept.
Protect Future
Generations
Who Depend on
Social Security
The Most: President
Bush has made
it clear that
we must provide
extra help to
those future
seniors who
need it most.
- Benefits
Should Grow
Faster in
the Future
For Low-Income
Workers Than
For Those
Who Are Better
Off. Under
a reformed
system, low-income
workers should
receive benefits
that grow
faster than
inflation.
In order to
return the
system to
solvency,
the benefit
increases
for wealthier
seniors should
grow no faster
than the rate
of inflation.
This would
be accomplished
by adopting
a sliding-scale
benefit formula,
similar to
the Pozen
approach.
- Eliminate
Poverty Among
Future Seniors.
Today, roughly
two million
retirees who
paid into
Social Security
their whole
lives are
collecting
benefits that
leave them
below the
poverty line.
The President
believes we
should make
good on a
great national
commitment:
if you work
hard and pay
into Social
Security your
entire life,
you will not
retire into
poverty.
- This Reform
Would Solve
Approximately
70 Percent
Of The Funding
Problems Facing
Social Security.
A responsible,
reasonable
and sustainable
rate of benefit
growth for
wealthier
seniors will
help return
the system
to fiscal
balance and
would enable
us to help
those seniors
in the greatest
need.
Replace The
Empty Promises
Being Made to
Younger Workers
With Real Money.
Younger workers
should have
the option of
putting a portion
of their payroll
taxes into a
voluntary personal
account which
will allow them
to build a nest
egg that belongs
to them. This
money will give
workers an opportunity
to receive a
higher rate
of return than
the current
Social Security
System can provide.
- Voluntary
Personal Accounts
Should Include
The Risk Free
Option Of
Investing
In Treasury
Bonds. Voluntary
personal accounts
should include
an investment
option that
allows workers
to invest
in U.S. Treasury
bonds, which
have no risk.
Workers who
have reservations
about investing
in the markets
will still
be able to
rely on a
Social Security
check that
is equal to
or higher
than today's
retirees.
The President
Will Continue
To Work With
Congress To
Find A Solution
To Social Security
That Is Sensible,
Permanent And
Fair. Social
Security is
too important
to pass this
problem on to
the next generation.
The President
has committed
to work with
both the House
and Senate in
a bipartisan
way as they
take the next
steps in the
legislative
process.
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