Bal Harbour, FL
Social Security is the foundation of retirement income for working Americans. It is also the primary source of health care for the elderly and the principal insurance against family impoverishment due to death or disability. The AFL-CIO pledges to continue defending Social Security's critical role in providing economic security to working American families.
The recent erosion of private pension coverage has greatly increased the reliance on Social Security for retirement income. Fifteen years ago, 45 percent of retirement income for average wage earners came from Social Security. Today that figure is 57 percent.
Social Security is one of the most efficient of all major insurance programs, public or private. It has administrative costs of less than one percent of benefits paid. With the single exception of Medicare, the system's trust funds will be solvent until the retirement of the baby boom generation, some 20 to 30 years from now, when a large influx of beneficiaries will draw down existing surpluses. That problem can be solved the same way it has been solved in years past -- through modest adjustments in the premium and benefit structure. It is important that the Social Security Advisory Council, which includes representatives of both business and labor, move forward in making recommendations on these adjustments so that Social Security's sound financing can be assured.
The only real problem for Social Security is caused by the high health care costs that will soon drive the Medicare system into insolvency. But Medicare's cost problems are no different from those faced by all health coverage plans. The best solution would be for Congress to enact a comprehensive health care reform plan that includes genuine cost containment. Unless and until that happens, any efforts to reduce Medicare costs would hurt the millions of older Americans who depend on that program to meet their health care needs.
Despite the success of Social Security in reducing poverty among older Americans and working families, the system's trust funds continue to provide a tempting target for members of Congress who are trying to meet unrelated budget needs. In order to protect the system from those who would raid it for this purpose, we urge the complete separation of the Social Security trust funds from the unified federal budget.
While applauding last year's creation of the independent Social Security Agency, we urge the Clinton Administration and Congress to recognize that personnel cuts at the agency are putting enormous strain on the system. We call on them to maintain staff levels that are sufficient to provide quality service.
We oppose reducing benefits or extending the retirement age -- steps that would harm all but the richest families. Further, we oppose any attempts to privatize the system or to means-test benefits. Such measures would violate the social insurance principles that are the foundation of the system and would likely result in its unraveling.
We believe the American people, given the facts about the strengths and advantages of Social Security, would strongly support the system and join in defending it from those who would weaken or dismantle it. We call on the Clinton Administration and members of Congress to vigorously defend the system from ideological attacks and promote better public understanding of Social Security -- particularly among young workers. We pledge our commitment to these aims, and will work with our affiliated unions, employers and government officials to help assure the long-term viability of the Social Security system.