[Congressional Record (Bound Edition), Volume 145 (1999), Part 7]
[Extensions of Remarks]
[Pages 10505-10506]
[From the U.S. Government Publishing Office, www.gpo.gov]



                    RETIREMENT SECURITY ACT OF 1999

                                 ______
                                 

                          HON. THOMAS E. PETRI

                              of wisconsin

                    in the house of representatives

                         Thursday, May 20, 1999

  Mr. PETRI. Mr. Speaker, today I have introduced the Retirement 
Security Act of 1999. This bill, nearly identical to legislation I 
introduced in the last Congress, would help put the

[[Page 10506]]

Social Security system on a better financial footing while providing 
future Americans with the peace of mind that comes with their own 
personal retirement accounts.
  Under my bill, the government will establish a retirement account for 
each newborn American citizen, initially worthy $1,000. The money for 
the initial $1,000 will come from income taxes on that portion of 
Social Security income currently subject to the income tax. This amount 
is to be invested in the same funds available in the Federal employees' 
Thrift Savings Plan two of which promise higher rates of return than 
the Social Security Trust Fund. The investment decisions among the 
funds 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 ever happens the $1,000, if invested in the common stock index 
fund, at the historical real rate of return of 7 percent, would grow to 
$89,000 in 1999 dollars. This happens to be just enough to cover the 
current average Social Security benefit.
  Since the initial $1,000 comes from the Government, Social Security 
payments owed to the account holder would come out of this account 
first. Only after it is exhausted would the individual begin to draw on 
the Social Security Trust Fund. Therefore the financial problems of 
Social Security would be solved starting 67 years after enactment. This 
would make it easier to deal with the problems we face before that 
date.
  If my plan is adopted, 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 of the financial problems of Social Security but it will 
certainly help.

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