Representative Mica, do you support cutting Social Security benefits?
     No, I believe that Social Security is a sacred trust between the government and its citizens and therefore benefits should not be reduced.  In Congress, I will never support a reform plan that reduces benefits for people already retired and those nearing retirement.  It is important too that we work to address funding shortfalls so that our nation's younger workers also have the promise of a full retirement.

Representative Mica, what are the problems facing Social Security?
      The biggest threat to the social security surplus has been wasteful spending.  While the President and Congress could easily ignore or put off addressing the long-term financial soundness of this federal program, it is the responsible thing to examine our long-term options.

     The number of young workers paying taxes to finance the benefits of current retirees under Social Security is rapidly declining. In the 1930's, there were 41 workers contributing to the benefits of each retiree. Currently, the system has 3.3 workers funding the retirement benefits of each individual. That ratio of workers further declines in future years as the Baby Boomers begin to retire in 2008. The Social Security Board of Trustees has estimated that the program will begin to run deficits by 2018. Between 2000 and 2025, the number of seniors over 65 in our country will increase by 76%.  We have enough assets to fund the benefits of todays seniors; yet in the coming years, we will have far too few workers to provide financing for the future benefits of today's younger generations.

     The average American today lives much longer than when Social Security was first introduced. Social Security was originally intended to provide only temporary relief for seniors living in retirement. However, it has grown into a much broader system providing permanent benefits to all American retirees, spouses, dependents and the disabled.  Today's seniors are living much longer in their retirement years than when the system was created.  This has put great financial strain on the program.

     Current retirees and those nearing retirement are greatly dependent upon Social Security because for most it is their sole source of retirement income. The current Social Security system will be solvent to pay for the benefits of those 55 years of age and older and President Bush has clearly stated that for them Social Security will not change in any way.  However, leaving this problem to future generations and future Congress' is simply irresponsible.

Representative Mica, how can we protect Social Security for younger workers?

     In order to provide younger workers with better investment options and more control over their own retirement money, the President has provided a general outline to create voluntary personal retirement accounts. These accounts would be modeled after the Thrift Savings Plan (TSP) which federal employees currently maintain in addition to their own Social Security. Under the plan, careful guidelines will be set to provide greater security in retirement by including a conservative mix of stocks and bonds, protection from hidden fees and sudden market swings on the eve of retirement and provide payouts over time to prevent a person from emptying their account at once. This was President Roosevelt’s vision of Social Security when he stated on January 17, 1935, that “the federal government assume one-half of the cost of the old-age pension plan, which ought ultimately to be supplanted by self-supporting annuity plans.”

     Originally, Social Security was designed to pay benefits to each individual for only a few years because of the low life expectancy of the time. Many contributors did not live long enough to collect back what they put into the system and therefore the government kept the rest of their money. With regard to voluntary accounts, the President supports a change that would allow retirees “to pass along the money that accumulates in your personal account, if you wish, to your children or grandchildren. And best of all, the money in the account is yours, and the government can never take it away."

     While the President has offered these initial recommendations he also stated that he will continue to work with Congress to address any concerns with the plan. According to President Bush, "Fixing Social Security permanently will require an open, candid review of the options. Some have suggested limiting benefits for wealthy retirees. Former Congressman Tim Penny has raised the possibility of indexing benefits to prices rather than wages. During the 1990s, my predecessor, President Clinton, spoke of increasing the retirement age. Former Senator John Breaux suggested discouraging early collection of Social Security benefits. The late Senator Daniel Patrick Moynihan recommended changing the way benefits are calculated. All these ideas are on the table."

     Former President Clinton spoke many times during his administration of the impending financial crisis facing Social Security. During the 1990's, several reforms were implemented that delayed the crisis but did not solve the problem. In fact, in 1999, Democratic Senate Leader Harry Reid stated “most of us have no problem with taking a small amount of the Social Security proceeds and putting it into the private sector,” yet he now opposes doing that very thing. It is critical that Congress put these politics aside and act now so that we have enough time to strengthen Social Security before it faces insolvency.

*Quotes taken from the State of the Union Address, February 2, 2005