Revival of Social Security privatization proposal threatens working
families, says AFGE National Social Security Council
WASHINGTON, Oct. 26 /PRNewswire/
-- The National Social Security Council of the American Federation
of Government Employees (AFGE) today warned that the Bush
administration is reviving its highly unpopular plan to dismantle
the current Social Security system in favor of establishing private
retirement accounts.
"The administration's plan
failed in 2005 because people saw through the smoke and
mirrors," said Council President Witold Skwierczynski. "The
president's plan called for significant cuts in benefits for
seniors and our children. Once people realized this, they
rejected the administration's proposal out of hand.
Apparently the president doesn't believe in listening to his
constituents."
Media reports from the Washington
Post and other distinguished publications have recently reported
that Social Security reform remains one of the "big items" the
president wants to tackle next year. In his first speech after
taking office in August of this year, Treasury Secretary Henry
Paulson, a former Wall Street insider, said he was under orders from
Bush to pursue Social Security reform.
AFGE National President John Gage
said, "Instead of developing new ideas to strengthen the system, the
president is merely repeating what he tried to do last year. This is
not something we want to repeat. We can come up with a plan that
doesn't slash benefits and risk the retirements of hard-working
Americans."
The Council maintains that the
administration's plan would destroy the retirement dreams of
hundreds of millions of Americans at the expense of younger workers.
The plan that the Bush administration favors would cut guaranteed
benefits for someone born in 1960 by 15 percent, cut guaranteed
benefits for someone born in 1970 by 25 percent and cut guaranteed
benefits for those born in the 1980s and 1990s by 40 to 50 percent.
Furthermore, the plan to replace Social Security with private
accounts would leave millions of retirees in poverty and younger
Americans with at least $4.9 trillion debt.
Skwierczynski also points out that
the president fails to mention how he'll pay to implement a new
Social Security system.
"Paying for the administration's
plan would involve massive tax increases; drastic benefit cuts; an
increase in the retirement age, which is effectively a benefit cut;
or some combination of these things. The president's plan would
cause hundreds of millions of Americans to lose the only retirement
and disability income security they have. Reviving this
ill-conceived plan is like producing a horrible sequel to a bad
movie."
The National Social Security
Council, officially known as the National Council of SSA Field
Operations Locals (Council 220), represents about 30,000 employees
of the Social Security Administration who work in field offices and
national calling centers.
The American Federation of
Government Employees (AFGE) is the largest federal employee union,
representing 600,000 workers in the federal government and the
government of the District of Columbia.