Monday, October 03, 2005

Under 55? Santorum Wants to GUT Your Social Security - Risky Plan Means Caviar for Some and Dog Food For Others

Senators Renew Push For Social Security Reform: Proposed legislation would protect the benefits of those ages 55 and up.: "Senators Renew Push For Social Security Reform

Proposed legislation would protect the benefits of those ages 55 and up.

By James M. Amend, Money Management Executive

October 3, 2005- Nearly 10 months since President Bush first revealed his desire to include private accounts in Social Security reform - an effort that included a three-month, nationwide barnstorming campaign to drum up support - the administration is no closer to getting a proposal heard by Congress.
Two key advocates of the President's plan, however, recently said there's still a chance for Congress to address the topic of private accounts, but only if the broader bill doesn't contain any language or provisions that might threaten the current benefit structure.

Bush's controversial plan calls for upwards of 4% of a worker's payroll tax to be diverted into private accounts comprised of stock, bond and mutual funds. It would resemble the Thrift Savings Plan that's available to government employees. While the fund industry has remained silent on the issue, as it could profit from management of the accounts, Democrats and powerful organizations like the AARP and AFL-CIO have roundly derided the idea.

But Sen. Jim DeMint (R-S.C.) and Sen. Rick Santorum (R-Pa.) have introduced legislation reassuring the benefits for people aged 55 and older will remain in place. They think the guarantee will help push Bush's plan forward.

"The polls show a lot of anxiety among senior and near-term retirees about the ultimate solution," Santorum said in a report from CongressDaily. "From the standpoint of moving forward with reform, it takes these people off the table."

Meanwhile, White House Press Secretary Scott McClellan declined to say whether Bush still wanted to meet his December deadline for passing Social Security reform, but didn't rule out the possibility for action in the coming weeks.

Bush recently met with his Social Security team, although it was behind closed doors and no questions were answered afterwards. However, sources inside the meeting told the Capitol Hill publication that Bush did emphasize his desire to eventually getting a bill done.

Separately, special interest groups in opposition to and in favor of the President's plan have recently said they would continue their awareness efforts."

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