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Fight Over Social Security Nominees Brewing

August 30, 2001

In what may be a precursor of the fight over Social Security privatization, opponents of individual accounts may try to block President Bush's nominees to head the Social Security Administration.

Bush has nominated Jo Anne B. Barnhart, a former aide to former Senate Finance Committee Chairman William V. Roth Jr. (R-DE) to be commissioner of Social Security, and James B. Lockhart III, who headed the Pension Benefit Guaranty Corp. under former President George Bush, and is now chief administrative and financial officer for Connecticut-based Net Risk, a financial consulting firm, as deputy commissioner.

Witold Skwierczynski, a spokesman for the American Federation of Government Employees (AFGE), told reporters that labor unions want the Senate Finance Committee hearings on the nominations--not yet scheduled-- to provide a full airing of views on Bush's proposal for creating private individual accounts as part of Social Security.

"We do not oppose the nominations at this point. But we think tough questions should be asked,'' said Sckwierczynski, who is president of the National Council of SSA Field Operation Locals, which represents about half of the agency's 65,000 employees.

In addition, he said his union plans to scour the views of Barnhart and Lockhart in anticipation of possible efforts by the Bush administration to replace some employees of the agency with outside contractors. "We are very concerned there will be efforts to reduce federal employees working in Social Security field offices. There could be a fight on this issue," Schwierzieski said.

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"Thursday's staff report 'does a terrific job of setting out both the stick and the carrot: the stick in the form of the financial crisis and the carrot in the form of a better Social Security system,' said Michael Tanner, director of the Social Security Privatization Project at the Cato Institute, a libertarian think tank that has strongly influenced the Bush administration's work in this area."

- Los Angeles Times
July 202001