Good afternoon, and welcome to our witnesses and audience members.
Today is the second hearing in a series on protecting and improving Social Security.
Yesterday, we focused on the importance of Social Security and how it provides the middle class with economic security.
Today, the focus is on how we can strengthen Social Security through benefit enhancements to meet the needs of today’s beneficiaries and future generations.
Social Security benefits are an essential lifeline for millions of Americans.
Without Social Security, 43 percent of older women would be living in poverty.
And as we heard yesterday from Maya Rockeymoore Cummings, a small business owner, Social Security “provides not only a safety net, but it is actually a boon to entrepreneurship and is a boon to business formation in this country."
Entrepreneurs are able to take risks because they know Social Security is there.
That’s why we need to act and strengthen Social Security benefits. Because even with Social Security, seniors are struggling.
According to a study done by economists at the Federal Reserve, savings from private retirement plans are concentrated in the top 25 percent of the population.
So in other words, the data shows that 75 percent of Americans are on average, not saving enough retirement income through private plans.
After the Great Recession 10 years ago, many saw their retirement savings wiped out, and according to economists at the Federal Reserve on average, 90 percent of households have not regained the wealth they lost in the recession, but Social Security remains there for them.
Social Security is the working person’s retirement guarantee.
The Social Security 2100 Act will strengthen this guarantee and allow seniors to retire with dignity, by providing real benefits for them.
It establishes a minimum benefit for Social Security that is 125 percent above the poverty level, ensuring no one who has worked their whole life will be able to retire into poverty.
It also takes into account seniors’ actual needs when it comes to Cost of Living Adjustments (COLA). The Social Security 2100 Act implements a COLA that is endorsed by the AARP, known as the CPI-E, “E" standing for elderly.
This COLA would consider the cost of prescription drugs, food, heating, and more, giving seniors a COLA that makes sense for their costs.
Beneficiaries will also receive an across-the-board two-percent benefit increase, giving them a modest, but necessary boost.
At yesterday’s hearing there was a lot of talk about people wanting to strengthen Social Security, but little substance about what they meant by that.
We are holding public hearings so that we can shine a bright light on all proposals to improve Social Security to see what will help the American people.
I want to thank Congressman Tom Rice, for acknowledging Chairman Johnson’s plan yesterday. We never held a hearing on it but, I wish we had, because I think that’s exactly what we need to do, is hold up a bright light on all of these proposals. I don’t think it will surprise many that Mr. Johnson’s bill cuts benefits by 30 percent for a median earner retiring at age 65, and that’s how it achieves solvency.
I don’t think that’s where we want to go or even if the Republicans on this committee want to go there.
Our solution on the other hand, the Social Security 2100 Act, would boost benefits and reaches solvency, and does so by a modest premium increase.
I would like to remind people that there has been serious polling done on this:
A majority of the public doesn’t “mind paying Social Security taxes because it provides security and stability to millions of retired Americans, disabled individuals, children and widowed spouses of deceased workers," according the National Academy of Social Insurance.
• Republicans - 72 percent agree
• Independents - 81 percent agree
• Democrats - 87 percent agree
A majority of the public favors a proposal to “increase Social Security benefits," according National Committee to Preserve Social Security & Medicare.
• Republicans - 66 percent favor
• Independents - 70 percent favor
• Democrats - 84 percent favor
Americans are willing to pay a little bit more to strengthen Social Security.
With the Social Security 2100 Act, the average working American would only have to pay 50 cents per week more each year. This is a doable solution!
The American public is clear: they prefer benefit protection and improvement.
And now the Republican Leader, Tom Reed.
