SAVING AND PROTECTING SOCIAL SECURITY

NOTE: I just received this information as an e-mail from Fred Thompson's campaign. I think that it is a plan that everyone should read about, so I am printing it in it's entirety. That should not be construed to mean that I am in agreement with any part of the plan. I have not studied it in sufficient detail to make that decision.

Fred Thompson’s Plan to Ensure Retirement Security for All Americans

COURAGE TO SPEAK THE TRUTH ABOUT DIFFICULT ISSUES

* Fred Thompson believes there is no reason to run for President of the United States if you can’t tell the American people the truth about complex issues like Social Security.
* We need leaders, like Fred, with the courage to address this issue head-on while there is still time to solve the funding shortfall without draconian cuts in benefits or tax increases.
* As we speak, Congress is raiding the Social Security Trust Fund. If we don’t act soon, the politicians in Washington will either repay those ‘IOUs’ through tax hikes or benefit cuts. American workers deserve access to the same retirement security options that Member’s of Congress enjoy.
* The current Social Security system is broken and if it isn’t reformed, future generations will no longer have it as a safety net for retirement.
* If Social Security is not reformed and saved for future generations, current law effectively requires a 23% cut in benefits when the Trust Fund runs out of money around 2041.
* We cannot afford to wait until the Social Security Trust Fund runs out of money–the longer we wait, the worse the problem grows and the more dramatic any solution will have to be.

A STRAIGHTFORWARD AND HONEST PLAN TO SAVE SOCIAL SECURITY AND PROTECT SENIORS

* Fred Thompson’s plan to Save Social Security keeps our promise to America’s seniors. It offers retirement security by fully protecting their benefits. Current beneficiaries and those close to retirement will not be affected by these changes. No one over the age of 57 would be affected.
* Fred Thompson’s plan will also offer younger workers retirement security. Younger workers will be given the option of growing their wealth for the future and participating in a successful investment program similar to the one enjoyed by Members of Congress.

OPTIMISTIC ABOUT THE FUTURE OF AMERICA AND THE OPPORTUNITIES FOR TODAY’S WORKERS

* Fred Thompson trusts the American people to understand the problem and accept that we need to address it now, and he will not hide the ball from them, as the other candidates are doing.
* His plan preserves real benefits at current levels, promotes personal freedom by giving workers a say in their financial future, and saves Social Security for future generations. This is critical to America’s long term Security, Unity, and Prosperity.
* We live in the greatest nation on earth – a free nation with free markets where citizens who play by the rules and work hard can expect to live the American Dream.
* If they need help in this country they can get help and those that can help themselves are expected to do so.
* Fred Thompson’s plan to protect Social Security guarantees promises made to our seniors and gives today’s workers more choice and greater opportunity for their future.

ISSUE / PROBLEM

* Since its inception in 1935, Social Security has done a good job of reducing poverty among the elderly.
* But it’s time we speak candidly to the American people; the current program is fiscally unsustainable.
* Social Security actuaries warn that if nothing is done, the Social Security Trust Fund will be bankrupt by 2041.
* That sounds like a long way off, but one-third of those now in their fifties and almost all of those in their thirties and forties will be looking to collect benefits when the money runs out.
* When that happens, retirees will face an immediate 23 percent cut in their benefits. Other options at this time are for Congress to raise taxes by 30 percent just to sustain the promised level of payments, or raise the retirement age, or come up with some combination of these three choices.
* Without question, unless Social Security is transformed and saved, fewer younger workers.

FRED THOMPSON’S PLAN

* Fred Thompson’s plan for saving and protecting Social Security will:
* Protect Benefits for current retirees and guarantee them for future generations;
* Balance Social Security so that it is permanently sustainable for future generations;
* Save Social Security for all Americans by treating all retirees fairly (No one over 57 would be affected);
* Leave untouched the calculation of the annual cost-of-living adjustment;
* Provide retirement options for future retirees that allows them to secure their own retirement future; and
* Eliminate the estimated $4 trillion unfunded Social Security future liability.
* To accomplish these goals, Fred Thompson’s plan will:
* First, provide voluntary personal retirement “add-on” accounts to supplement current benefits. It is a government-sponsored 401(k)-like supplement to Social Security that helps Americans build personal wealth. These accounts will allow each worker to contribute 2 percent of his/her wages into a voluntary account; The federal government will progressively match the worker’s contribution each month; both the worker’s contribution and the match would be invested in qualified stock and bond portfolios of their choice.
* Second, index the initial Social Security Benefit Formula for prices, not wages. Social Security today promises future retirees more benefits than current retirees receive, even though they put the same amount of money into the system. The system should be adjusted so that it is fair to all retirees. Adjusting the formula will also guarantee that all retirees – current and future – receive benefits from a system currently running out of money.
* We do not need to change the retirement age with this approach beyond the currently scheduled increase.
* We can preserve an annual cost-of-living adjustment as calculated under the current formula with this approach.

CONCLUSION

* We have a choice before us: ignore the problem and expect future generations to pay the bill, or take action now to save and protect Social Security for all retirees.
* No other candidate has come forward with a plan, demonstrating their disregard for the challenges facing our country.
* We need leaders like Fred Thompson with the courage to address this issue head-on while there is still time to solve the funding shortfall without draconian cuts in benefits or tax increases.
* Fred Thompson’s plan preserves real benefits at current levels, promotes personal freedom by giving workers a say in their financial future, and saves Social Security for future generations. This is critical to America’s long term Security, Unity, and Prosperity