[Congressional Record Volume 147, Number 139 (Tuesday, October 16, 2001)]
[Senate]
[Pages S10773-S10774]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANTORUM (for himself and Mr. Voinovich):
  S. 1558. A bill to provide for the issuance of certificates to social 
security beneficiaries guaranteeing their right to receive social 
security benefits under title II of the Social Security Act in full 
with an accurate annual cost-of-living adjustment; to the Committee on 
Finance.
  Mr. SANTORUM. Mr. President, today I am pleased to join with my 
colleague, Senator George Voinovich of Ohio, in introducing the Social 
Security Benefits Guarantee Act, legislation aimed at conferring upon 
current Social Security beneficiaries an explicit property right to 
their benefits.
  As the President's Commission to Strengthen Social Security and 
Congress continue to consider options about how best to put our most 
vital social program on sound financial footing, it is increasingly 
important to assure today's beneficiaries that they are not going to be 
adversely affected by any reform proposal that Congress may ultimately 
enact into law.
  Although reasonable people can disagree about how best to restore 
Social Security to a path of long-term solvency, philosophical or 
political leanings should not obstruct us from meeting our moral 
obligation to preserve and protect the benefits of current 
beneficiaries.
  Both basic fairness and practicality dictate that individuals and 
families who are currently receiving Social Security benefits should 
not be expected to adapt to any of the steps necessary to shore up 
Social Security's long-range financial health. Indeed, President Bush 
outlined as his very first

[[Page S10774]]

principle in the creation of the present Commission that 
``Modernization must not change Social Security benefits for retirees 
or near-retirees.''
  No matter what reform plan Congress may consider, one of the more 
productive interim steps we can undertake is to create an environment 
where constructive, bipartisan policy options can be pursued. Toward 
this end, I believe that it is important to remove the ``demagoguery 
factor'' from the Social Security reform discussion by ensuring seniors 
that they receive every cent that the government has promised them, 
including an accurate annual cost-of-living increase. That is why we 
are introducing the Social Security Benefits Guarantee Act today.
  Unfortunately, current law affords no such protection for our 
nation's elderly. In the Supreme Court's 1960 decision Flemming v. 
Nestor, 363 U.S. 603, the Court held that Americans have no property 
right to their Social Security benefits, and that Congress has the 
power to change Social Security benefits at any time. One unfortunate 
byproduct of this case law is that current beneficiaries have fallen 
victim to scare tactics from politicians, interest groups and others 
stating or implying that sustainable long-term Social Security reform 
will lead to a reduction or endangerment of their benefits.
  Social Security reform is too important to working Americans to allow 
short-term political demagoguery to drown out serious bipartisan 
efforts to put our most vital social program on sound fiscal and 
actuarial footing. By passing an explicit property right to Social 
Security benefits for those eligible for and receiving benefits, 
Congress can assure seniors that their benefits will be protected and 
focus the reform discussion on the future, where it belongs, and how we 
can best preserve Social Security's financial dependence at a cost that 
future generations can bear.
  In closing, it is my sincere hope that our colleagues will join 
Senator Voinovich and me in supporting this commonsense legislation to 
provide America's seniors peace of mind during the inevitable policy 
challenges that lie ahead for Social Security's financing.
  I again thank Senator Voinovich for working with me in this effort, 
and ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1558

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as ``The Social Security Benefits 
     Guarantee Act of 2001''.

     SEC. 2. GUARANTEE OF FULL SOCIAL SECURITY BENEFITS WITH 
                   ACCURATE ANNUAL COST-OF-LIVING ADJUSTMENT.

       (a) In General.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary of the Treasury 
     shall issue a benefit guarantee certificate to each 
     individual who is determined by the Commissioner of Social 
     Security as of the date of the issuance of the certificate to 
     be entitled to benefits under title II of the Social Security 
     Act (42 U.S.C. 401 et seq.). The Secretary shall also issue 
     such a certificate to any individual on the date such 
     individual is determined thereafter to be entitled to 
     benefits under such title.
       (b) Benefit Guarantee Certificate.--The benefit guarantee 
     certificate issued pursuant to subsection (a) shall represent 
     a legally enforceable guarantee--
       (1) of the timely payment of the full amount of future 
     benefit payments to which the individual is entitled under 
     title II of the Social Security Act (as determined under such 
     title as in effect on the date of the issuance of the 
     certificate); and
       (2) that the benefits will be adjusted thereafter not less 
     frequently than annually to the extent prescribed in 
     provisions of such title (as in effect on the date of the 
     issuance of the certificate) providing for accurate 
     adjustments based on indices reflecting changes in consumer 
     prices as determined by the Bureau of Labor Statistics or 
     changes in wages as determined by the Commissioner of Social 
     Security.
       (c) Obligation To Provide Payments as Guaranteed.--Any 
     certificate issued under the authority of this section 
     constitutes budget authority in advance of appropriations 
     Acts and represents the obligation of the Federal Government 
     to provide for the payment to the individual to whom the 
     certificate is issued benefits under title II of the Social 
     Security Act (42 U.S.C. 401 et seq.) in amounts in accordance 
     with the guarantee set forth in the certificate.

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