Meeting on Social Security with Sen. Durbin, Obama and Rep. Jan Schakowsky on Feb. 28 at Loyola, Water Tower.
Sen. Durbin opened the meeting by stating that 10% of people over the age of 65 live in poverty, without social security benefits up to 50% of people over 65 would live in poverty.
He continued that there is not a current crisis in social security funding and adjustments have been made in the past to ensure the program is financially solvent. Sen. Durbin stated that in the current climate of bankrupt pension funds and limited guaranteed pension from employment, the social security system needs to be strengthened not weakened. Private accounts would take money out of the system thereby weakening the system and would pile trillions of debt on future generations. Also, changing from wage index to price index would result in lower benefits. He concluded that "ownership society" means you stand alone.
Sen. Obama added that by 2042 there would be fewer workers paying into the system, but even so, current benefits would be payable at the rate of 75% of what is promised. Some of the options for fixing the system include: increasing the cap on payroll taxes, rolling back some of the Bush tax cuts, increasing retirement age.
Rep. Jan Schakowsky presented a comparison between the current social security plan and the plan proposed by Bush's hand-picked social security commission. Bush's plan would reduce benefits by as much as 46%. Jan also demonstrated the risk involved in investing in the stock market. Testimony was presented by several people who had received survivor benefits from social security when a parent died. Also, the question of what would happen to disability benefits was not addressed under Bush's plan. My conclusion from these hearings is that there is not a crisis in social security funding until 2042 and there is time to explore different options in order to make social security solvent for future generations. Bush's plan for private accounts does not address the funding shortfall in social security rather it weakens social security by taking money out of the system. His plan does not address where the money will come from to fund current beneficiaries' benefits.
Mary Meyer, March 2, 2005
Meetup Co-Hosts
Donna Marcus
Lali Watt
Steering Committee:
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Secretary
Sylvia Morrison
Outreach
Siobhan M. Murphy
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Local Campaigns
Bob Tisch
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Communications
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Kent Wilson