Chicago, IL
Social Security, the nation’s most successful social program, is the foundation of retirement income for America’s workers and their families and the principal insurance against family impoverishment due to death or disability. It reliably and efficiently provides benefits to the elderly, the disabled and their children, helps millions of Americans escape poverty, and gives the elderly the financial means to live their last years with dignity and independence.
Social Security faces long-run financial challenges that are serious but modest, even after factoring in the weak economic projections used by the Trustees. Addressing these challenges does indeed demand changes to the system, but it does not require the radical and risky measures advocated by those whose real motive is to scrap the program.
For too many American families, Social Security is the only protection against the loss of income due to the retirement, disability or death of a worker. Two-thirds of older Americans rely on Social Security for half or more of their income. Pensions and individual savings, unfortunately, simply do not reach enough people or provide adequate income.
As the bedrock of family income protection in the United States, Social Security’s role must not be compromised nor its financial condition weakened.
President Clinton has expressed his intention to pursue specific Social Security reform legislation early next year. In the meantime, he has encouraged the American people to engage in a national conversation about Social Security’s future. The AFL-CIO has and will continue to participate energetically in this dialogue.
Principles for Social Security Reform
The AFL-CIO is committed to enacting reforms to address the system’s shortfall and assure the integrity of the program. We believe any proposed solution must honor seven fundamental principles.
- Steps must be taken soon to strengthen Social Security so that all Americans can be assured that the program will be there for them.
- Social Security should continue to provide retired and disabled workers, as well as dependents and survivors, with a guaranteed monthly benefit, protected against inflation, for life.
- Benefits should not be subject to the whims of the market, and private accounts should never be substituted for the core defined benefits the system currently provides.
- The age at which workers are eligible for early or full benefits should not be raised.
- Social Security should continue to replace a larger share of past earnings for low-income workers and to provide bigger benefits to workers who earned higher wages during their careers. Replacement rates should not be cut.
- Social Security should continue to provide family insurance protection, with benefits that cover dependent and surviving children and spouses in addition to disabled and retired workers.
- Government budget surpluses should be used to save Social Security first, not to pay for tax cuts.