Social Security Reform: Start With the Facts

Abstract

Before beginning the debate on much-needed changes to the Social Security system, reform investigators need to look at the facts before attempting to develop solutions, says the author. Too many people—and even some members of Congress—do not understand what protections besides retirement income the Social Security benefit provides and who it provides for, she argues. Once these facts are understood, projections of future program costs become critical in steering the debate. Under the Social Security Board of Trustees' best estimates to date, by the year 2013, Social Security payments will exceed income. By the year 2032, Social Security assets will be depleted. Though these projections are not certainties, "we need to act now," says the author. Should we change the entire system, or will modifying it be enough?

Reviewing various reform proposals, the author states that, whatever options are being considered in the Social Security reform debate, employer-provided plans and individual savings are critical to any retirement planning program. In weighing and ultimately adopting the new proposals, "compensation and benefits managers can play a special role," says the author, and "facts, not rhetoric, must be the starting focus."