Statement of the Hon. Walter B. Jones, a Representative in Congress from the State of North Carolina

Before the Subcommittee on Social Security,
 House Committee on Ways and Means

Hearing on Social Security Improvements for Women, Seniors and Working Americans

March 6, 2002

• Chairman Shaw, Ranking Member Matsui, thank you for inviting me to speak on the topic of Social Security guarantee certificates.  I am pleased to have this opportunity to speak about legislation aimed at protecting the Social Security benefits of our nation’s current retirees.

• With the need to reform the Social Security program becoming more pressing, Congress must keep in mind the key principle that any responsible reform plan will assure current retirees that their benefits will not be reduced.

• That principle is nothing less than a moral obligation of a government to its people.  Current retirees have worked too hard for a secure retirement to see it jeopardized in the name of reform.  Reducing benefits despite this expectation, would be a fundamental breach of trust between the government and retirees.

• The Social Security Guarantee Act would help eliminate concerns over benefit reduction by seeking to give seniors a stronger claim to their retirement benefits.  Specifically, it would require the Secretary of the Treasury to issue to each Social Security beneficiary a certificate including a written guarantee of a fixed monthly benefit, plus a guaranteed annual cost-of-living increase.

• By issuing this certificate, we hope to eliminate the fears of seniors and stop the ugly “senior scare” tactics that have doomed Social Security reform prospects in the past.

• Critics claim the Social Security Guarantee Act is a gimmick because guarantee certificates passed by this Congress are not legally binding on other Congresses, and therefore can be changed at any time.  In reality, H.R. 832 and its guarantee are legally binding because at the very least it will be politically binding.  Although a future Congress could change or repeal the new law, once retirees have a written document in their hands explicitly guaranteeing their benefits, few elected representatives would be willing to repeal it.

• Other skeptics wonder why the guarantee certificate only covers current retirees and not everyone.  Without comprehensive reform of the Social Security program, Congress cannot make the same guarantee for future retirees.  Social Security expenditures begin exceeding Social Security revenues in 2016 and by 2038 the trust fund is empty.  That is why I believe H.R. 832 is an important first step toward meaningful Social Security reform.

• At the end of the day, we, as members of Congress, must uphold our moral obligation.  We have a duty to our seniors to ensure their retirement security will not be jeopardized.  At the same time, we cannot lose sight of the overall goal of reforming the Social Security program so that today’s workers will have the retirement that they deserve as well.