[Congressional Record (Bound Edition), Volume 147 (2001), Part 19]
[Extensions of Remarks]
[Pages 26318-26319]
[From the U.S. Government Publishing Office, www.gpo.gov]



               SOCIAL SECURITY GUARANTEE PLUS ACT OF 2001

                                 ______
                                 

                         HON. E. CLAY SHAW, JR.

                               of florida

                    in the house of representatives

                      Thursday, December 13, 2001

  Mr. SHAW. Mr. Speaker, today, I am introducing the Social Security 
Guarantee Plus Act of 2001 to save Social Security. I believe strongly 
that we can and will work in a bipartisan manner to save Social 
Security, provided we choose to legislate for the next generation, not 
the next election.
  Two-thirds of a century ago, Social Security's framers designed the 
program to meet certain promises for the American people: the promise 
of a safety net of financial security, the promise that all workers 
would be treated fairly, the promise that Social Security would be 
owned by workers, for workers, and a program that workers and their 
families could count on should they retire, suffer disability, or die. 
However our nation's current demographics and economics have changed, 
and Social Security's ability to continue meeting these promises is 
threatened. The Social Security Guarantee Plus Act I introduce today 
will enable Social Security to continue keeping its promises.
  First, through this plan, the Social Security safety net is fully 
preserved. Promised benefits, including cost of living increases, are 
guaranteed for those already receiving retirement, survivors, and 
disability benefits, those about to receive those benefits, and future 
generations.
  Second, the plan treats all workers fairly. Workers have paid into 
the system, it's their money, and we must protect and enhance their 
investment. It's not fair to workers to raise their payroll taxes or 
lower their benefits. Nor is it fair for the government to tell workers 
to work longer. I do not want to create another ``notch.'' That's why 
my plan does not raise taxes, does not lower benefits, and does not 
change the retirement age.
  Third, Social Security dollars belong to the workers that sent them 
here, therefore this plan gives workers a real ownership stake in the 
program by allowing workers to choose to receive a tax cut to invest 
directly in safe, individually-selected, market investments. A new 
nation of savers, not the government, will control their retirement 
security. Should an individual die before becoming eligible, the 
balance of their money will be passed along to their heirs.
  Fourth, under my plan, Social Security can be counted on for the next 
75 years, and beyond. Real assets guarantee current and new expanded 
benefits, not Government IOUs, establishing a sound and sustainable 
financial footing. There will be no more need to increase taxes or 
lower benefits every few years to keep the program working.
  Beyond keeping these promises, we must do more to further improve 
Social Security for the women of our nation. Because of their longer 
life expectancies and lower earnings, women are more likely to suffer 
poverty in old age and therefore heavily depend on Social Security's 
vital safety net. In addition, because benefits are based on earnings, 
women are penalized when they choose to stay home to raise their 
children. The Guarantee Plus Plan increases protection for women, not 
only by securing the future of the current Social Security and 
guaranteeing full benefits, including cost-of-living adjustments, but 
also by enhancing benefits for widows, divorced spouses, and working 
mothers. These benefits become available immediately in my bill.
  Congressman Walter Jones (NC-03) said ``we, as members of Congress, 
have a duty to our seniors to ensure their retirement security will not 
be jeopardized.'' I couldn't agree more. Therefore, the bill includes a 
provision, similar to that introduced by my friend Walter Jones, where 
each beneficiary will receive a legally enforceable certificate 
guaranteeing his or her benefits.
  Here's how the Social Security Guarantee Plus Plan works. The plan 
guarantees full, promised, current law benefits for all workers, 
whether you are 6 or 65. Just as companies must back your pension plan 
with real assets, the Guarantee Plus Plan saves Social Security by 
setting aside real assets, not IOUs, to pre-fund benefits. These assets 
are saved in each worker's own account, thereby providing workers the 
opportunity to create real wealth for themselves and their families.
  Workers who choose to participate will receive a refundable credit of 
2-3% of their earnings to establish their own Social Security Guarantee 
Account. Workers, not the government, would select where to invest 
their Guarantee Account funds. The assets in these accounts would grow 
tax-free. No withdrawals would be permitted until a worker starts 
receiving benefits to ensure that the money is preserved for 
retirement.

[[Page 26319]]

  At retirement or when the worker becomes disabled, a portion of the 
Guarantee Account is paid directly to the worker and the rest is used 
to help pay full, guaranteed Social Security benefits. But that's not 
all.
  My plan also includes much needed improvements in benefits for 
widows, divorced women, working women caring for young children, and 
women with work not covered under Social Security. My plan also 
eliminates the retirement earnings penalty for all workers age 62 and 
older.
  The Guarantee Plus Plan does all this and pays for itself over the 
seventy five-year actuarial period, and that's confirmed by the Social 
Security Administration's Office of the Actuary. Even under the most 
conservative estimates, the Guarantee Plus Plan allows the new Social 
Security system to generate surplus cash in the later part of the 
century, actually adding black ink to the government's bottom line.
  Other plans may cost less because they cut benefits or raise taxes. 
If your goal is to keep current benefits, boost women's benefits, and 
return Social Security to financial independence, The Guarantee Plus 
Plan is the lowest-cost proposal to date. My plan uses general revenues 
to fund the accounts. Even assuming borrowing for a transitional 
period, my plan pays back every borrowed dollar plus interest within 
the 75-year evaluation period. Not only do we pay off the mortgage on 
Social Security, we leave workers with substantial account balances and 
the federal government with excess cash.
  President Bush has shown true leadership by setting out principles 
for reform. The Guarantee Plus Plan meets or exceeds all of these 
principles.
  Principle #1: Modernization must not change Social Security benefits 
for retirees or near retirees. My plan exceeds this principle, because 
it preserves and guarantees benefits for all workers and retirees. In 
fact, my plan improves benefits for everybody.
  Principle #2: The entire Social Security surplus must be dedicated to 
Social Security only. For the first time available Social Security 
surpluses will be used to benefit Social Security directly.
  Principle #3: Social Security payroll taxes must not be increased. My 
plan does not ever raise payroll taxes. In fact, my plan creates long-
term savings that could potentially allow a payroll tax decrease.
  Principle #4: The government must not invest Social Security funds in 
the stock market. My plan allows workers, not the government, to invest 
account contributions in safe, sound investment choices.
  Principle #5: Modernization must preserve Social Security's 
disability and survivors components. My plan does not alter Social 
Security disability and survivor benefits in any way, except to 
increase guaranteed benefits for survivors and to increase income 
security for individuals with disabilities, who keep 5% of their 
account in addition to full, guaranteed benefits.
  Principle #6: Modernization must include individually controlled, 
voluntary personal retirement accounts, which will augment the Social 
Security safety net. My plan provides workers all opportunity to 
voluntarily participate in personal accounts that they own and control 
without individual investment risk. These accounts ensure Social 
Security will be able to pay current law benefits for all workers for 
75 years and beyond.
  The President also convened a bipartisan Commission to issue 
recommendations for strengthening and modernizing Social Security. 
Later this month, we will see the Commission's final report, and our 
nation will embark on further debate regarding the future of this great 
program.
  Just yesterday, the House overwhelmingly passed a resolution that 
summarized what actions we, as Members of Congress, should take in 
saving Social Security. This resolution clearly states that we should 
join with the President in saving Social Security as soon as possible. 
It also states that any plan to save Social Security should recognize 
the obstacles women face in securing financial stability at retirement, 
the critical role Social Security plays in preventing poverty and 
providing financial security for minorities. Finally, it states that 
any plan to save Social Security should guarantee current law promised 
benefits, including cost-of-living adjustments, for current and future 
retirees, and should not increase taxes. My plan accomplishes all these 
objectives.
  As the choices necessary to secure the future of Social Security 
become more clear in the coming weeks and months, I want America to 
know my choices for how to strengthen and improve Social Security for 
the next 75 years and beyond. I choose:
  No to privatizing; yes to securing Social Security as we know it.
  No to lowering benefits or increasing taxes; yes to benefit 
guarantees.
  No to more government IOUs; yes to real savings through voluntary 
personal savings accounts.
  No to government investment; yes to worker choice and worker-
controlled investing in safe, market investments.
  No to program bankruptcy and burdening our children with debt into 
years unknown; yes to a solvent, debt-free Social Security program.
  Stepping up to the challenge and finding a solution is the 
``American'' way; ignoring it is not. Those who truly want to keep 
Social Security's promises must do more than just stand on the 
sidelines--they must offer their own workable proposal to fix Social 
Security's finances. Those who only criticize the difficult and candid 
choices of people giving purposeful thought towards saving Social 
Security have no place in this serious debate.
  We must work together to build on the Success of the past to make a 
strengthened Social Security system an asset to all and not a liability 
to our children and grandchildren.

                          ____________________