[Congressional Record Volume 142, Number 137 (Saturday, September 28, 1996)]
[Extensions of Remarks]
[Pages E1799-E1800]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            SOCIAL SECURITY

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                          HON. THOMAS E. PETRI

                              of wisconsin

                    in the house of representatives

                       Friday, September 27, 1996

  Mr. PETRI. Mr. Speaker, yesterday I introduced legislation, H.R. 
4215, to help put the Social Security system on a better financial 
footing while providing future Americans with the peace of mind that 
comes with their own retirement account which is their personal 
property.
  My bill will establish a retirement account for each newborn American 
citizen, initially worth $1,000. The money for the initial $1,000 is to 
come from the sale of Government assets. This amount is to be invested 
in the same manner, and with the same choices, as the

[[Page E1800]]

Thrift Savings Plan available to Government employees. These choices 
include investment options which promise higher rates of return than 
can be earned by the government bonds held in the Social Security Trust 
Fund. The investment decisions among the fund options are to be made by 
the parent or guardian until the account holder reaches the age of 
majority when he or she is able to make such decisions. The account 
holder, or his or her parent, can add to the principal of the account, 
up to $2,000 per year tax free, but even if that never happens the 
$1,000, if invested in a stock index fund, can be expected to grow to 
$651,683 by the time the account holder is ready for retirement.
  It is not a sound financial practice for the Government to sell its 
assets and use the funds to pay for its current operating costs, as it 
does now. If we are going to be selling assets anyway we should be 
reinvesting the funds in something which will pay a return. My bill 
will accomplish that goal and put more money into the retirement system 
at the same time. This bill does not replace the Social Security 
system; it provides more funds for it. The funds in the account are to 
pay for Social Security benefits for the account holder first, and only 
if the account is depleted can the account holder draw on the Social 
Security Trust Fund. If, due to individuals adding to the account, 
there is more in the account than necessary to pay for Social Security 
benefits, the account holder will have several lump sum or annuity 
options for withdrawing the extra funds.
  Future workers will not have to worry so much whether or not the 
Government will keep its promises or that the Social Security system 
might go bankrupt because each will have an account which is his or her 
personal property. I don't claim that this program will solve all the 
financial problems of Social Security but it will certainly help.

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