Alternatives for Social Security

Two Republicans are offering solutions that differ from Bush's plan.



One of them is Chuck Hagel who is said to be planning to run for president in '08.

Hagel says this about his bill, which is the first bill that involves Social Security to be introduced into Congress:

First, my bill would raise the current full benefit retirement age by one year – from 67 to 68. Second, my bill would maintain the current early retirement age at 62, but would adjust benefits for those who choose to retire early. Currently, workers who retire early receive 70% of their full retirement benefits. My bill would provide these early retirees with 63% of the traditional benefit. Third, currently, an individual’s base Social Security benefit is determined by two factors: their average income over 35 years and the wage index. My bill adds a third component: life expectancy. Over the life of the program, Social Security benefit calculations have never been adjusted to reflect increased life expectancy. By factoring increased life expectancy into the base benefit calculation, the rate of increase in benefit payments will be slowed. No other changes will be made to the annual Consumer Price Indexing of benefit increases.

Hagel's bill also says that people over 45 would see no change in Social Security or their benefits which differs from Bush who proposed that age to be 55.



The second Republican is Robert Bennett. He wants to "keep the system the same for the bottom 30 percent of workers, but the richest workers would see their benefits tied to rising prices, rather than wages, which amounts to a benefit cut of nearly 50 percent" and adds that "benefits for people in between would be based on a blend of the two measures, on a sliding scale".

In effect, Bennett's plan reaches out to Democrats hoping that a compromise can be made. Bennett suggests that personal accounts be "voluntary add-ons to Social Security, where workers invest an additional slice of their wages, much as many Democrats have proposed. But after perhaps five years, workers could move some of the money from their Social Security taxes into these accounts."

Scott McClellan's White House response is that "all ideas are welcome". Let's hope for the Republicans that "all ideas are welcome" because right now there are 5 different plans that are somewhat different from what Bush proposed. If the White House doesn't seriously consider parts of these plans, than the idea of changing Social Security may not happen. Let's not forget the power of the minority to use certain tactics to prevent passing of bills. Democrats just "car bombed" Republican legislation in Indiana by refusing to be there to vote. It's plans like Bennett's that help make situations like the one I speak of unlikely to happen.

I like Bennett's plan. Bickering and debating is good for some time but at some point, action must take place. I also am not against Hagel's idea of the age being 45 instead of 55. After all, it could shut up AARP supporters that many conservatives complain about currently.

(Sources:SeniorJournal and AP Wire)