FOR IMMEDIATE RELEASE, Contact (202) 225-9263
March 18, 1999
No. SS-5
Congressman E. Clay Shaw, Jr., (R-FL), Chairman, Subcommittee on Social Security of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing on the Social Security program's goals and criteria for assessing reform proposals. The hearing will take place on Thursday, March 25, 1999, in the main Committee hearing room, 1100 Longworth House Office Building, beginning at10:00 a.m.
Oral testimony at this hearing will be from invited witnesses only. Witnesses will include representatives of the U.S. General Accounting Office and the Social Security Administration Office of the Actuary, and other program and pension experts. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.
BACKGROUND:
Despite its remarkable success in combating poverty among the elderly, Social Security faces increasing hurdles in paying promised benefits in the coming years. As Social Security's Trustees stated in their April 1998 report, "Beginning with the year 2013, the tax income projected under present law is expected to be insufficient to cover program expenditures." By the year 2032, when the Trust Funds are projected to be depleted, tax collections will cover only 72 percent of benefit obligations. The U.S. General Accounting Office has reported that maintaining solvency would require immediate across-the-board benefit cuts of 14 percent or tax hikes of 16 percent. If changes are delayed until the year 2032, benefit cuts of 45 percent or payroll tax hikes of 25 percent or more would be required to maintain solvency.
In the face of these challenges, a number of proposals have been made to reform Social Security's financing, benefits, or both. Proposals vary on policy specifics, with some stressing benefit cuts, tax increases, or some combination. More recently, some proposals, including the reform "framework" offered by the President, have suggested relying on budget surpluses to extend program solvency. In general, reform proposals claim to reinforce Social Security's fundamental purposes and goals, while preserving the program for future workers and families.
As the Subcommittee assesses the impact of alternative solutions to Social Security's financing problems, it needs to gain an appreciation of the effects that changes to Social Security will have on the economy, national savings, the Federal budget, and the retirement security of every participant.
In announcing the hearing, Chairman Shaw stated: "Social Security impacts the lives of nearly every American and has a direct effect on the economy and the Federal budget. Ultimately, we must decide what are the most important criteria to use in evaluating specific proposals to ensure Social Security's future. As we move forward, we should constantly focus on Social Security's original goals. And by considering reform proposals in that light, we will know whether or not we are staying true to the vision of our parents and grandparents that has worked so well for generations."
FOCUS OF THE HEARING:
The Subcommittee will hear the views of a wide range of experts in retirement policy regarding the fundamental goals of the current Social Security program and criteria to use when evaluating options for Social Security reform.
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, Thursday, April 8, 1999, 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, by close of business the day before the hearing.
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.