[Congressional Record Volume 140, Number 110 (Wednesday, August 10, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 10, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                   SOCIAL SECURITY REFORM ACT OF 1994

  Mr. SARBANES. Mr. President, last week the Senate approved important 
legislation which would make the Social Security Administration an 
independent agency. While this measure has been overshadowed by other 
issues, it is my view that it will positively affect the lives of every 
working American. Establishing the Social Security Administration as an 
independent agency appropriately frees social security from the 
economic and budgetary decisions affecting the rest of the Government, 
thereby increasing the agency's integrity.
  Polls indicate that a majority of younger Americans believe that they 
will be unable to collect social security benefits by the time they 
reach retirement age. This bill reinforces the principle of the trust 
fund, ensures adequate administrative funds to operate the system for 
future generations, and returns to the system some of the public 
confidence that has eroded since the program's inception in 1935.
  Today, the Social Security Administration has an annual budget of 
$300 billion, making it the third largest agency after the Department 
of Health and Human Services and the Treasury Department. More than 42 
million individuals receive Social Security benefits and the Social 
Security Administration is responsible for maintaining earnings records 
for 132 million workers. Given the magnitude of its workload and 
operation, it makes sense to establish the Social Security 
Administration as an independent agency.
  Separating the Social Security Administration from the Department of 
Health and Human Services was first recommended in the 1983 National 
Commission on Social Security reform. Following the committee's 
recommendation, Congress commissioned a study of how to make the Social 
Security Administration independent. The study was conducted by Elmer 
Staats, former Comptroller General of the General Accounting Office, 
and recommended that an independent Social Security Administration 
should be headed by a single administrator with a bipartisan panel to 
permit independent review. In 1989, the GAO assessed the most 
appropriate management structure for an independent Social Security 
Administration and came to the same conclusion.
  The legislation passed by the Senate follows these recommendations. 
This measure will establish a bipartisan advisory board which will work 
with the Commissioner in determining policies which affect social 
security programs. It will increase the Social Security 
Administration's visibility and credibility. It will improve 
administrative efficiency, and it will provide the agency with more 
autonomy to direct and protect the Social Security trust fund.
  As a direct result of reports that some disabled individuals have 
been using their benefit check to support their drug and alcohol 
habits, this bill also includes measures aimed at preventing fraud and 
abuse. Through the SSA's Social Security Disability Insurance [SSDI] 
and Supplemental Security Income [SSI] programs, 250,000 drug addicts 
and alcoholics receive $1.4 billion in cash benefits annually. However, 
the Social Security Administration can only verify that three percent 
of these beneficiaries receive treatment. This bill would require 
disabled substance abusers to be in treatment as a condition of 
receiving benefits, and will end all benefits after three years. A 
responsible third party, such as a community service agency, will 
manage their benefits. This is a common-sense way to make certain that 
drug addicts and alcoholics get the treatment they need without abusing 
the system.

  In his 1944 address to Congress, President Roosevelt observed that 
this country had ``accepted a second bill of rights under which a new 
basis of security and prosperity can be established for all, regardless 
of station, race or creed.'' Among these, he said, is the right of 
every American to have ``adequate protection from the economic fears of 
old age, sickness, accident and unemployment.''
  President Roosevelt's words are still true today. We have a vested 
interest in preserving the stability of the trust funds for Social 
Security and Medicare and a responsibility to ensure access to quality 
services for all Americans today and in the years to come. I am pleased 
that Congress has taken steps to this end and I look forward to 
President Clinton signing this measure into law.

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