Reacts to President Obama’s address
WASHINGTON, D.C. – Today Sen. Rand Paul responded to President Obama’s speech about the budget, and called out the president for not addressing the issue of entitlements seriously.
“Once again the President is failing to lead on one of the most critical issues this country faces,” Sen. Paul said. “He doesn’t believe Social Security is in trouble, but it is and this problem has to be dealt with today; waiting will lead to a much worse situation for every American from every income level.”
Earlier in the day, Sen. Paul, along with Sens. Mike Lee (Utah) and Lindsey Graham (S.C.) held a press conference to introduce the Social Security Solvency and Sustainability Act, a plan to bring solvency to America’s teetering Social Security system.
“This plan fully fixes the shortfall in the Social Security program, ensuring that the promises we make today can and will be kept. It gradually implements changes everyone knows need to be made,” Sen. Paul said at the press conference.
“If we wait a few years, the fixes will have to be more drastic and less thought out and gradual. I urge anyone who wishes to join this discussion to do so by bringing forward their own plan that fully fixes or Social Security system for the next 75 years or more,” he continued.
At the press conference, Sens. Paul, Graham, and Lee invited engagement from President Obama on the issue, and expressed interest in working with the administration on a plan to fully secure the Social Security system for 75 years or more.
Below is the original press release from Sen. Graham’s office. (Linked at bottom) are the handouts provided at the press conference.
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Graham, Paul, and, Lee Introduce Plan for Social Security Reform
WASHINGTON – U.S. Senators Lindsey Graham (R-South Carolina), Rand Paul (R-Kentucky), and Mike Lee (R-Utah) today introduced new legislation addressing major funding issues facing Social Security in the coming years. The Senators noted their plan, Social Security Solvency and Sustainability Act, achieves sustainable solvency for the Social Security system without any tax increases.
What the plan accomplishes:
Indexing the Retirement Age to Longevity – When retirement age of 70 is achieved, the full retirement age will then be indexed to increases or decreases in life expectancy. Indexing will help maintain a constant ratio of years worked to years spent in retirement. (see attached chart detailing current law and Social Security Solvency and Sustainability Act retirement age)
Gradual Increase in the Early Retirement Age – The senators propose a gradual increase in the Social Security early retirement age from 62 to 64 by 2028.
Slower Benefit Accumulation for Higher Lifetime Earners – After 2018, all new retirees coming into the system will have benefits based on the first $43,000 of their average lifetime yearly earnings calculated based on wage growth. Above $43,000, benefits will be calculated based on price growth.
“Social Security is coming unraveled and it must be preserved,” said Senator Graham. “Our plan saves Social Security and will be significant down-payment on comprehensive entitlement reform. I’ve been involved in Social Security reform since my election to the Senate in 2002. I’m quite familiar with the scare tactics and know first-hand the demagoguery that is sure to come our way. But the American people know the problems facing Social Security are real and must be addressed. Every year we delay, the solutions get more difficult and the consequences of inaction become more dramatic. It’s time for action.”
“This plan fully fixes the shortfall in the Social Security program, ensuring that the promises we make today can and will be kept. It gradually implements changes everyone knows need to be made,” Senator Paul said. “If we wait a few years, the fixes will have to be more drastic and less thought-out and gradual. I urge anyone who wishes to join this discussion to do so by bringing forward their own plan that fully fixes our Social Security system for the next 75 years or more.”
“Our proposal addresses the coming Social Security deficit in a responsible way without raising taxes,” said Senator Lee. “These ideas should be part of the larger debate over entitlement reform that we will have in the coming months. For those who might oppose these solutions, I look forward to hearing their ideas to make Social Security solvent and sustainable as the discussion goes forward.”
To see a full copy of the bill, click here.
SS Charts on Retirement Age Changes
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