Statement from 60 Plus Chairman, Jim Martin, at the National Press Club in downtown Washington, D.C. regarding 60 Plus’ Forum celebrating Social Security’s 76th Birthday
SOCIAL SECURITY REFORM
Is it needed? Who will propose it? Who will oppose it?
Today’s panel of experts agree that the system is showing some wear and tear (who isn’t at 76?). They agree that while it is in pretty good shape, serving seniors well, it could use a checkup, a tune up if you will.
When: Monday, August 15, 2011 2:00pm-3:00pm
Panelists:
Dr. Douglas Holtz-Eakin, former Director, Congressional Budget Office. Administration of President George W. Bush, Chief Economist, President’s Council of Economic Advisors 2001-2002. Columbia University and Syracuse.
Dr. Jared Bernstein, former Chief Economist and Economic Advisor to Vice President Biden and was a member of President Obama’s economic team. PhD from Columbia University.
Moderator:
James L. Martin, Chairman, 60 Plus Association. Bachelor of Science, Journalism, University of Florida. Founder of 60 Plus, 1992.
Starting in 1997, the 60 Plus Association has annually sponsored a forum celebrating the birth (August 14, 1935) of the Social Security system which has lifted so many seniors above the poverty level. 60 Plus invites leading scholars to share the podium. 60 Plus strives always to present a balanced forum and today’s panel reflects that objective.
Q&A to follow.
15 years ago my organization—the 60 Plus Association—began this annual forum, a salute to seniors.
To all you seniors watching and listening on TV or radio, I believe you will really benefit from today’s program. And so will you soon-to-be seniors, you baby boomers and you younger generations- our grandchildren and great-grandchildren.
You’re in for a treat but before I turn to the most distinguished panel I believe we have ever assembled, allow me to make a couple of observations. I say this as I enter my 50th year on Capitol Hill, coming here in 1962 as a young reporter covering Congress, working in this very building, the National Press Club.
Social Security was 76 years old Sunday, August 14th—passed by Congress and signed into law by President Roosevelt on that date in 1935.
For its first 25 years or so, the system experienced few growing pains. It was a healthy and vibrant financial benefit for retirees.
But after leaving its teen years and aging into its 40s, 50s, and beyond, Social Security began showing some wear and tear. But who among us doesn’t at age 76 or in my case, 75.
I believe almost everybody agrees that some Social Security reform is needed. I emphasize reform—not overheated political rhetoric. Political one-upmanship to curry favor with this most powerful voting block—senior citizens.
Social Security has served seniors very well, keeping millions of our most vulnerable out of poverty. My favorite senior, my mom, depended on her check and her sister, my aunt Statia White would have celebrated her 99th birthday on August 14. Her son, my cousin, former Kentucky state senator Ray B. White, turns 76 this week.
So seniors have paid their dues. And while the system needs reforming, seniors are tired of political pot shots. They deserve better.
After all, a system that started as a 2% tax on $3,000 income has grown to 12.4% tax on as much as $106,800. From $60 annually (only $5 a month). Yes I did the calculation on a computer, but to be sure I also did the math with an old fashioned pencil and believe it or not, $5 a month back in 1935 is now as much as $13,243.20 annually and a whopping $1,103.60 per month.
So why isn’t it a gold mine for seniors? Two reasons. Actually three.
No. 1) Lower rates of birth mean fewer workers paying in.
No. 2) Living longer —yes we are — into our 70s, 80s, 90s, and beyond. As one observer put it, rather indelicately I thought. Seniors no longer “conveniently die” at the actuarial age of 65. As 60 Plus Honorary Chairman, former Congressman Roger Zion—now nearing 90 and living with wife Marjorie in Evansville, Indiana, Roger eloquently states that he’s been “statistically dead for 25 years”, putting a financial strain on the system. In fact, the first recipient of a monthly check, Ida Mae Fuller, is a perfect example of why the system is in financial straits. She paid in less than $25 before retiring but instead of “conveniently dying” at age 65, Ida Mae lived to 100 and was paid nearly $23,000 from Social Security, a whopping 92,000% return.
No. 3) Little discussed in Congress-the Social Security Trust Fund –bulging with over two and a half trillions of dollars, surpluses paid by current and future seniors—but one of Washington’s dirty little secrets— The fund is broke. The Trust Fund is the favorite cash cow of surprise surprise Congress.
But enough said of the system’s problems. There are solutions galore offered by all manner of experts. I guarantee the two we are privileged to have with us will offer straightforward, practical solutions. Unfortunately Social Security solutions often run into a political buzz saw on Capitol Hill. Now-a-days signing pledges seems to be standard operating procedure in Washington. Perhaps we will need to present a pledge to be signed by Congress that seniors will no longer be used as political pawns on Capitol Hill, so reform can be accomplished. Now to our distinguished panel.
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