Rod Grams (R)
The experts agree that Social Security is facing a serious financial challenge. It’s a fiscal time bomb that, once the Baby Boom generation begins to retire, can’t survive if we continue to run it as we are today. We desperately need reform to preserve and strengthen the Social Security program, and the sooner we do it, the less pain we’ll suffer in the future. But the real question is how we should proceed.
I’ve established six guiding principles upon which any comprehensive plan to save Social Security must be based:
- Protect current and future beneficiaries who choose to stay within the traditional Social Security system;
- Give individuals freedom of choice in pursuing retirement security;
- Preserve a safety net for disadvantaged Americans, so that no covered person is forced to live in poverty;
- Provide better or improved retirement security for workers than is currently available;
- Replace today’s pay-as-you-go system with a fully funded program; and
- Protect the American people against a higher tax burden on their retirement savings.
My legislation, the Personal Security and Wealth in Retirement Act (S. 1103, 106th Congress) meets all six tests: it saves Social Security from its coming insolvency, guarantees benefits, while offering Minnesotans the chance to put their money to work for them through personal retirement accounts. In a nutshell, my plan will give options to working Americans 25 years or older. You can either stay with the current system or opt out. If you stay, the government will guarantee your benefits, without benefit cuts or increasing the retirement age.