[Congressional Record (Bound Edition), Volume 151 (2005), Part 9]
[House]
[Page 12575]
[From the U.S. Government Publishing Office, www.gpo.gov]




               FOUR IDEAS TO IMPROVE RETIREMENT SECURITY

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Illinois (Mr. Emanuel) is recognized for 5 minutes.
  Mr. EMANUEL. Mr. Speaker, in discussing the collapse of his 
retirement plan and pension plan, United Airlines pilot Klaus Meyer 
said, ``I call it legalized crime. I lost almost all my United stock 
value in the bankruptcy, and another part of the retirement I was 
promised is gone. And now my Social Security is at risk. Where does it 
all end?''
  Mr. Meyer's statement is a stark reminder of what is at stake as we 
continue to debate the future of Social Security. The sad fact is that 
for many Americans retirements are less, not more, secure and any 
debate about Social Security should be about how to secure its future 
rather than make it more risky. In fact, the head of the GAO announced 
that the President's plan would in fact exacerbate the financial 
stability of Social Security, rather than strengthen it.
  The whole task is to do two things: strengthen Social Security for 
future generations and help Americans save for their retirement. Make 
no mistake, Social Security and the debate about retirement is key to 
the future of Americans' retirements. For United Airlines employees, 
and the steel industry that came before the airline industry, and 
probably the auto industry that will come after them, Social Security 
is the linchpin of their retirement security.

                              {time}  1745

  Our task before us is how to strengthen both aspects as Americans 
plan to retire and save for their retirement.
  As John Pinto, another United States airline employee put it, 
``Social Security is the cornerstone of my retirement.'' That is our 
task here. Every American is asked to plan for their retirement with 
personal savings, employment-based savings, and Social Security. Those 
are the three legs to the stool of any retirement plan and any 
retirement security. The privatization of Social Security would 
exacerbate the stability that Social Security has created for millions 
of Americans as they plan for their retirement.
  Benefits for United Airlines employees would be cut up to 40 percent, 
retirement benefits that they have put money away for, they have saved 
for, they have done everything that we as a country advocate that they 
do; 120,000 employees have now been cut up to 40 percent. As I always 
say, go ask a United Airlines employee what they think of Social 
Security. They are glad that it is there and they can count on it. It 
is the linchpin, it is the foundation for all of their retirement 
security.
  Two-thirds of seniors and 40 percent of widows rely on Social 
Security as their entire retirement plan. It may come as a shock to 
some, but the American people like the security that comes with Social 
Security.
  A few weeks ago, the President said, ``Those who obstruct reform, no 
matter what party they are in, will pay a political price.'' 
Ironically, it is the President's insistence on privatization of Social 
Security that is slowing the reform and progress we could have in our 
retirement security. He is, in fact, the reason we are not making 
progress. Privatization has become the poison pill to progress when we 
discuss retirement security for Americans.
  We need to broaden the debate on privatization of Social Security 
into a discussion on retirement security. I proposed a series of ideas, 
Republicans have proposed a series of ideas, Democrats have ideas. If 
we put away privatization, we can make progress.
  I would like to remind everybody that in 1983, when we had the 
commission that developed and planned for the future of Social Security 
and gave it security for 75 years, President Ronald Reagan took 
privatization off the table, and you secured Social Security for 75 
years. If you take privatization off the table today, you can secure 
Social Security for another 75 years, and we can make progress on 
401(k)s, employer-based retirement, defined benefit pensions, as well 
as personal savings. We can do it all. But as long as privatization is 
on the table, it will become the stumbling block to progress, and the 
President's insistence is stopping the progress we can make.
  Here are the four ideas I have introduced, separate pieces of 
legislation: Automatic enrollment to 401(k)s. Rather than the pressure 
being on an employee to line up and sign up for a 401(k), have them 
automatically enroll, and the pressure is, if you do not want to 
participate, the onus of responsibility is on you to get out, not in. 
RR Donnelley, a big corporation in Chicago, Fortune 500, set up 
automatic enrollment. Participation went up to 92 percent of employees, 
and the participation rate increased dramatically among basically 
support staff and others who do not have a retirement plan. Also, you 
would have the automatic step-up so as you were there longer, your pay 
went up, the participation in your plan increases.
  Direct deposits from your tax refunds into your savings plan. About 
100 million Americans get a refund on their tax return. The average tax 
return is $2,000. When you fill out the 1040, you can decide, do I want 
$1,000, $750, $2,000 to go to my retirement plan? That is the one day 
we should organize for retirement security rather than just for 
consumption. And if you have direct deposit, more Americans would 
participate.
  Third, there is the fully refundable credit for people earning 
$60,000 or less. The government would match 50 percent on every dollar.
  Lastly, we have 16 various different vehicles for retirement savings. 
You could, in fact, unify that to one single, universal pension and get 
rid of all of the paperwork that comes with 16 different versions of 
savings.
  Those are just four ideas, but when it comes to retirement security, 
let us remove privatization from the discussion, secure Social Security 
and, therefore, secure for Americans and generations to come retirement 
security and the dignity that comes with Social Security and with 
retirement.

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