[Congressional Record Volume 144, Number 41 (Thursday, April 2, 1998)]
[Extensions of Remarks]
[Pages E560-E561]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      INTRODUCTION OF THE ``SOCIAL SECURITY SUNSHINE ACT OF 1988''

                                 ______
                                 

                           HON. JENNIFER DUNN

                             of Washington

                    in the house of representatives

                        Wednesday, April 1, 1998

  Ms. DUNN. Mr. Speaker, without question the national dialogue to save 
social security is

[[Page E561]]

under way. But what good is a national dialogue if the participants do 
not have all the information they need to participate in an informed 
and meaningful debate? Today I am offering legislation to help foster a 
genuine dialogue about Social Security. As we thoughtfully look at ways 
of personalizing and modernizing our current system, we need to ensure 
that the discussion is a careful one, and we need to include those most 
affected by the program--current beneficiaries. My legislation will 
help educate seniors about their status in the current system by 
providing them information about their current benefits. As the Ways 
and Means Committee today holds a hearing on a proposal to conduct a 
National Dialogue on Social Security in 1998, my legislation is 
designed to build on this idea by helping Americans understand the 
problem this system faces and design a long-range program to modernize 
Social Security.
  This legislation is a sunshine bill, much like my pilot program 
enacted into law in the 104th Congress. It is designed to assist 
seniors better understand their contributions and benefits under the 
social security system. Beginning January 1, 1999, beneficiaries of 
Social Security will receive two annual statements detailing: (1) The 
total wages and self-employment income the individual has earned; (2) 
the total contributions of the employer, employee and self-employment 
from wages; (3) the total amount paid to the individual as benefits, 
and; (4) an explanation of the statement in easily understood terms.
  Numerous seniors in my district find it ironic that other retirement 
benefit programs like mutual funds, IRAs and the like, provide this 
type of information, in writing, on a quarterly basis--and many provide 
participants direct 24-hour access by telephone. My bill would require 
that the Social Security Administration provide reasonable information 
in a reasonable timeframe.
  As we know, Social Security is an unfunded pay-as-you-go system. 
Today's benefits to the elderly are paid by today's taxes from the 
young. Recently, the government's own actuaries reported that Social 
Security's Old-Age and Survivors Insurance and Disability Trust Funds 
will go broke in 2030. By that time, payroll taxes on fewer than two 
workers will support each retiree, a sharp decline from 1980 when the 
ratio was 3.5 to 1--and an even further decline from 1950 when the 
ratio was 16 to 1. This will occur as a result of demographic factors 
in the system and is not the fault of seniors.
  Short-term fixes of the past to increase revenue or reduce benefits 
will be unsuccessful in postponing insolvency. Furthermore, the Social 
Security Administration's own pessimistic estimates indicate that by 
2040 a combined employer-employee payroll tax of 40 percent could be 
required to pay benefits. Raising the already burdensome payroll tax 
for the 18th time in the history of the program is simply not an 
option.
  Unfortunately, many seniors, including my own mother, are not aware 
of the state of the system or the impending crisis. The lack of 
information provided to them and every other senior is simply 
unacceptable. Seniors across the country have a desire--indeed, a 
right--to know about the status of their participation in the Social 
Security system. My bill would guarantee seniors access to this 
important information and include them in our national dialogue. I urge 
my colleagues to support this important legislation.

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