Rep. Johnson Joins Motivating Groups for Social Security Reform

October 17, 2003

Rep. Sam Johnson, (R-Tex.), has joined other members of Congress, such Reps. Pat Toomey (R-Pa.), John Sununu (R-N.H.), and Jim DeMint (R-S.C.), who are willing to communicate with voters on the urgent need for Social Security reform and why they support legislation to set up personal retirement accounts. Cliff Despres, a staff writer for the Allen American commented on Johnson's address on Social Security reform at a forum in Plano, Texas.

Regarding the limited solutions to Social Security's shortfalls, Johnson stated: "In my mind, hiking taxes or reducing benefits are not options. That just tinkers with a broken system. The only real solution is to increase the rate of return through personal retirement accounts."

Also attending the forum was Jim Lockhart, deputy director of the Social Security Administration. Lockhart confirmed that Social Security will in fact go broke in the near future: "Pressure on the program's finances will begin in 2008, when the first baby boomers reach retirement age. Cash flow turns negative in 2018, and the trust fund is exhausted in 2042."

According to Despres, several panelists listed ways to reform the system, including an increase in payroll taxes or cutting benefits. However, Johnson, like other advocates, knows that increasing the rate of return is the only thing that could help in the long term. That means setting up personal retirement accounts.

"The concept is simple: allow a worker to put payroll taxes into a personal account they cannot touch until they retire," Johnson said. "If you earn an average of $55,000 lifetime, and you start at 21 to put money into that account with a blend of stocks and bonds, you could have $2 million upon retirement."

Despres writes: "At Monday's forum, several area residents cast their concern on the future of the system. Some wondered who could manage personal accounts for the general American. Others pondered whether there could be a transition between the two systems. Senior citizens worried about their benefits."

Correctly, "The panelists [said] that people had the ability to manage their accounts, and maintained that reform would not affect those who receive Social Security benefits or those who are nearing it. 'Social Security will not be touched for current or near retirees,' Johnson said. 'None of the legislation proposed in the past has mentioned touching that.'

"Johnson, who serves on the Social Security subcommittee, said he's considering introducing legislation to reform the system. But he said such legislation likely won't stand a chance until after the 2004 presidential election."

Several attendees reacted in agreement to the forum:

"It's not OK where it stands; change will have to occur to not have the burden fall to our children. The reformed system is going to have to be balanced and fair."

"We've corrupted the intent of the Social Security system. It shouldn't be a retirement program. It should keep destitute people from going hungry."

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