[Congressional Record Volume 140, Number 96 (Thursday, July 21, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 21, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                 SOCIAL SECURITY SOLVENCY ACTS OF 1994

                                 ______


                   HON. MARJORIE MARGOLIES-MEZVINSKY

                            of pennsylvania

                    in the house of representatives

                        Thursday, July 21, 1994

  Ms. MARGOLIES-MEZVINSKY. Mr. Speaker, when we held our conference on 
the future of entitlements in Montgomery County back in December, we 
began a dialog, a dialog committed to taking an honest and serious look 
at our entitlement programs and revisiting each program to make sure 
that it is meeting its designed purposes and serving the people in the 
best possible way.
  We began a dialog in the name of our children's future and, equally 
as important, in the name of securing the very programs which define us 
as a great nation, a nation that cares about its elderly and cares 
about those that have been left behind, and in the name of securing the 
vitality of those programs which have saved millions of Americans from 
poverty and preserved their dignity.
  There were many then who did not want us to begin this conversation. 
Those who see danger when we move our Nation from what is politically 
popular to what is fiscally responsible.
  In April of this year, the Social Security trustees reported, that 
unless Congress acts, the Social Security trust fund will not be able 
to meet its commitments in 2013. The trustees said that Congress should 
take action now, not wait until it's too late. Instead of passing an 
even greater problem on to the next generation.
  The purpose behind my most recent legislative proposals is to act on 
my commitment to securing the vitality of the Social Security system 
today and insuring that a solvent Social Security system is in place 
for our children and our children's children.
  I, along with Representative Tim Penny of Minnesota, am sponsoring 
four pieces of legislation being referred to as ``The Social Security 
Solvency Acts of 1994.''
  Our plan calls for four specific proposals, two designed to protect 
the Social Security system and put faith back in the system, and two 
designed to create an environment of truth in our Social Security 
system.
  The first two proposals make the monetary adjustments necessary to 
achieve financial solvency for the program.
  We do this in two ways.
  Our first bill extends the retirement age, very gradually, beginning 
in 1999 at 4 months each year, until reaching 70 in the year 2013.
  Our second bill creates a flat-rate COLA, or cost-of-living 
adjustment. This simply creates a COLA that is equal for most of those 
receiving benefits, while protecting those at the bottom of the benefit 
ladder.
  These proposals will restore stability to a system teetering on the 
edge of financial disaster and enable the trust fund to have sufficient 
money to meet its commitments when our children enter into the system.
  Our next two proposals restore truth to the way we report the Social 
Security trust fund. The Federal Government has been less than truthful 
with the American people concerning the Social Security trust fund for 
too long.
  Bringing truth to the way we talk about the system and more 
information to those receiving benefits will lead to a more informed 
and honest debate and result in better public policy and a more secure 
and solvent Social Security system. These next two proposals are 
designed to help us do just that.
  Our third bill will inform beneficiaries how much they have received 
in Social Security benefits compared to their contribution. We will 
require that the Federal Government send earnings statements not only 
to those contributing to the Social Security system now, but also to 
those persons as they begin to collect their benefits. These earnings 
statements will compare contributions to actual benefits received thus 
far.
  Our fourth bill will bring truth to the concept that the Social 
Security trust fund is off-budget, or off-line. We have been depleting 
the Social Security trust funds to pay the operating expenses of our 
Federal Government for quite some time. This uses the trust fund to 
mask the true budget deficit and hides the truth concerning the trust 
fund * * * that it just isn't there.
  These four proposals, the Social Security Solvency Acts of 1994, 
provide a reasonable solution to a very serious problem that if not 
addressed now, will leave us with no Social Security system in the 
future. Our proposals do nothing that will jeopardize those currently 
retired or soon to retire.
  While some are proposing to once again raise payroll taxes to fix the 
system, our proposals contain no tax increases. Rather they make modest 
adjustments to put the Social Security system back on firm footing in a 
fair, equitable, and gradual manner.
  Back in December at our ``future of entitlements'' conference: I said 
that we must be honest with the American people concerning these 
programs which are so important to all of us. We must also be honest 
with ourselves: only a bipartisan effort will enable us to enact real 
entitlement spending reform. We must face the issue of entitlement 
spending now so that our children do not have to pay the price for our 
lack of action. This is one step in a long journey toward that goal.

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