FOR IMMEDIATE RELEASE CONTACT: (202) 225-9263
May 27, 1998
No. SS-17
Congressman Jim Bunning (R-KY), Chairman, Subcommittee on Social Security of the Committee on Ways and Means, today announced that the Subcommittee will hold a tenth hearing on "The Future of Social Security for this Generation and the Next." At this hearing, the Subcommittee will examine proposals regarding personal accounts. The hearing will take place on Wednesday, June 3, 1998, in room B-318 of the Rayburn House Office Building, beginning at 2:00 p.m.
In view of the limited time available to hear witnesses, oral testimony at this hearing will be taken from invited witnesses only. Also, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee or for inclusion in the printed record of the hearing.
BACKGROUND:
With the increased public debate about the future solvency of Social Security, the idea of allowing individuals to invest retirement funds in private markets has received considerable interest once again. Personal accounts are seen as a way to boost workers' savings to ensure that benefits can be paid in the future.
The 1997 report of the Advisory Council on Social Security pursued the idea of personal accounts with two detailed plans, which included portable and privately-owned personal accounts as part of total Social Security reform. Since that time, Members of Congress and the President have become engaged in a public discussion about the merits of integrating some form of personal investments into the current social insurance model.
Personal accounts and private investment systems in a variety of other nations, particularly those where return on investments has been quite positive, have further heightened the public's interest in such an approach for the United States. As part of the ongoing analysis of the future of the program, the Subcommittee has previously heard from representatives of several countries who have already begun personal accounts or are in the process of doing so.
Since the Advisory Council Report, several private individuals and organizations have authored detailed plans that recommend some sort of personal accounts. These range from 401(k) type plans administered by a central government organization to individual personal accounts similar to an IRA. The Subcommittee will be seeking detailed information from each sponsor regarding the specific workings of their personal account proposal.
In announcing the hearing, Chairman Bunning stated: "Since 1935, Social Security has changed over the years to meet the needs of this country. We must be careful, but we must challenge ourselves to think creatively about how this vital program can work best for all generations in the future. Members of the Advisory Council on Social Security, Social Security experts, and both Republican and Democrat Members of Congress are introducing proposals for Social Security reform, which provide for personal accounts. I look forward to hearing from a number of the authors of these plans on the specifics of how these personal accounts would work."
FOCUS OF THE HEARING:
The Subcommittee will receive the views of Social Security experts on their proposals to create personal accounts. Members of the Subcommittee would like to hear from each witness regarding their views on: (1) how personal accounts would be administered, (2) how personal accounts would be financed, (3) how personal accounts would be accessed and dispersed, (4) what investment vehicles for the personal accounts are appropriate, (5) how personal accounts would be integrated with other private pensions and government benefits, and (6) how these personal accounts would work within current tax law.
DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:
Any person or organization wishing to submit a written statement for the printed record of the hearing should submit six (6) single-spaced copies of their statement, along with an IBM compatible 3.5-inch diskette in WordPerfect 5.1 format, with their name, address, and hearing date noted on a label, by the close of business, Wednesday, June, 17, 1998, to A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the Subcommittee on Social Security office, room B-316 Rayburn House Office Building, at least one hour before the hearing begins.
FORMATTING REQUIREMENTS:
Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.
1. All statements and any accompanying exhibits for printing must be submitted on an IBM compatible 3.5-inch diskette in WordPerfect 5.1 format, typed in single space and may not exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.
2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.
3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.
4. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers where the witness or the designated representative may be reached. This supplemental sheet will not be included in the printed record.
The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press and the public during the course of a public hearing may be submitted in other forms.
The
Committee seeks to make its facilities accessible to persons with
disabilities. If you are in need of special accommodations, please
call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event
(four business days notice is requested). Questions with regard to
special accommodation needs in general (including availability of
Committee materials in alternative formats) may be directed to the
Committee as noted above.