Principles for Consideration in Social Security Reform - thehill.com
Wednesday’s post on this site covered a call to President Trump and Congress to reactivate the public trustee positions previously part of Social Security’s board of trustees roster. The five former public trustees not only jointly advocated for this step, but also outlined their collective thoughts on principles to guide Congress as an approach to Social Security reform develops. In developing this outline, the five former appointees (David M. Walker, Robert D. Reischauer, Charles P. Blahous, Marilyn Moon, and John L. Palmer) drew on their shared knowledge in Social Security’s financial operation to advance a slate of key ingredients for a solution to the program’s financial woes.
The individual principles enumerated in the call to action on this matter are repeated here:
First, Social Security should remain a defined benefit-oriented system where benefits are related to the amounts workers contribute to the system.
Second, Social Security reforms should include both revenue increases and moderation in the growth of benefits.
Third, unrestricted general revenues should not be used to fund Social Security.
Fourth, benefits for current retirees should not be reduced.
Fifth, Payroll tax rate increases should be avoided or minimized, but the payroll tax cap should be raised.
Sixth, the benefit formula, cost-of-living adjustments, and taxation of benefits, should be revised to be more progressive while protecting more seniors from poverty.
Seventh, the normal retirement age should be gradually adjusted to reflect increases in life expectancy with appropriate protections for people in physically demanding occupations.
Eighth, Social Security reforms should be designed to achieve sustainable solvency and should be enacted well in advance of the projected trust fund insolvency date(s).
The full letter issued to President Trump and Congress can be read here…