H. R. 5541
IN THE HOUSE OF REPRESENTATIVES
October 2, 2002
Mr. Shows introduced the following bill; which was referred to the Committee on Ways and Means
To reject proposals to partially or completely divert funds, which normally would be designated for the Social Security trust fund, into private savings accounts as a substitute for the lifelong, guaranteed, inflation-protected insurance benefits provided through Social Security.
This Act may be cited as the
Rejecting Social Security Privatization Act of 2002.
The Congress finds the following:
117 Members of Congress signed a letter on May 24, 2001, to the President's Commission to Strengthen Social Security, urging the Commission to develop a plan to partially privatize Social Security by diverting funds away from the Social Security trust funds and instituting Personal Retirement Accounts.
The Commission developed three alternative plans that would partially privatize Social Security by diverting substantial monies from the Social Security trust funds to pay for the private accounts, which threatens benefits for current beneficiaries by significantly weakening the financial condition of the trust funds.
These reductions in guaranteed benefits apply to all workers, regardless of whether they choose to have an individual account or not.
Substituting private accounts for guaranteed Social Security benefits increases financial risk for retirees, disabled workers, and their families; reduces Social Security protections for women, low-income workers, and many members of minority groups; and erodes benefits for the dependent children of workers who retire, become disabled, or die.
Private investments in the stock market of funds that have been diverted away from the Social Security trust funds are an inherent risk to Americans who currently depend upon secure Social Security trust funds, or anticipate receiving their earned benefits as they approach retirement.
Rejection of privatization
The Congress hereby commits to preserve the guaranteed, lifelong, inflation-protected benefits provided under title II of the Social Security Act to retirees, disabled workers, and their families, and the survivors of deceased workers, by rejecting plans to institute Personal Retirement Accounts, or any other forms of private accounts, which would divert or remove all or portions of monies from the Social Security trust funds and reduce the retirement security of current and future beneficiaries, and which would reduce guaranteed Social Security benefits for retirees, disabled workers, and survivors.