Sec. 605. Policy statement on Social Security
843 words·~4 min read·
/bill/113/hconres/96/rh/section-605A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The House finds the following: More than 55 million retirees, individuals with disabilities, and survivors depend on Social Security. Since enactment, Social Security has served as a vital leg on the three-legged stool of retirement security, which includes employer provided pensions as well as personal savings. The Social Security Trustees Report has repeatedly recommended that Social Security’s long-term financial challenges be addressed soon. Each year without reform, the financial condition of Social Security becomes more precarious and the threat to seniors and those receiving Social Security disability benefits becomes more pronounced:
In 2016, the Disability Insurance Trust Fund will be exhausted and program revenues will be unable to pay scheduled benefits. In 2033, the combined Old-Age and Survivors and Disability Trust Funds will be exhausted, and program revenues will be unable to pay scheduled benefits. With the exhaustion of the Trust Funds in 2033, benefits will be cut nearly 25 percent across the board, devastating those currently in or near retirement and those who rely on Social Security the most.
The recession and continued low economic growth have exacerbated the looming fiscal crisis facing Social Security. The most recent CBO projections find that Social Security will run cash deficits of $1.7 trillion over the next 10 years. Lower-income Americans rely on Social Security for a larger proportion of their retirement income. Therefore, reforms should take into consideration the need to protect lower-income Americans’ retirement security. The Disability Insurance program provides an essential income safety net for those with disabilities and their families.
According to the Congressional Budget Office (CBO), between 1970 and 2012, the number of people receiving disability benefits (both disabled workers and their dependent family members) has increased by over 300 percent from 2.7 million to over 10.9 million. This increase is not due strictly to population growth or decreases in health. David Autor and Mark Duggan have found that the increase in individuals on disability does not reflect a decrease in self-reported health. CBO attributes program growth to changes in demographics, changes in the composition of the labor force and compensation, as well as Federal policies.
If this program is not reformed, families who rely on the lifeline that disability benefits provide will face benefit cuts of up to 25 percent in 2016, devastating individuals who need assistance the most. In the past, Social Security has been reformed on a bipartisan basis, most notably by the Greenspan Commission which helped to address Social Security shortfalls for over a generation. Americans deserve action by the President, the House, and the Senate to preserve and strengthen Social Security.
It is critical that bipartisan action be taken to address the looming insolvency of Social Security. In this spirit, this resolution creates a bipartisan opportunity to find solutions by requiring policymakers to ensure that Social Security remains a critical part of the safety net. It is the policy of this resolution that Congress should work on a bipartisan basis to make Social Security sustainably solvent. This resolution assumes reform of a current law trigger, such that:
If in any year the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund annual Trustees Report determines that the 75-year actuarial balance of the Social Security Trust Funds is in deficit, and the annual balance of the Social Security Trust Funds in the 75th year is in deficit, the Board of Trustees shall, no later than September 30 of the same calendar year, submit to the President recommendations for statutory reforms necessary to achieve a positive 75-year actuarial balance and a positive annual balance in the 75th-year.
Recommendations provided to the President must be agreed upon by both Public Trustees of the Board of Trustees. Not later than December 1 of the same calendar year in which the Board of Trustees submit their recommendations, the President shall promptly submit implementing legislation to both Houses of Congress including his recommendations necessary to achieve a positive 75-year actuarial balance and a positive annual balance in the 75th year. The Majority Leader of the Senate and the Majority Leader of the House shall introduce the President’s legislation upon receipt.
Within 60 days of the President submitting legislation, the committees of jurisdiction to which the legislation has been referred shall report the bill which shall be considered by the full House or Senate under expedited procedures. Legislation submitted by the President shall— protect those in or near retirement; preserve the safety net for those who count on Social Security the most, including those with disabilities and survivors; improve fairness for participants; reduce the burden on, and provide certainty for, future generations; and secure the future of the Disability Insurance program while addressing the needs of those with disabilities today and improving the determination process.
It is the policy of this resolution that Congress and the President should enact legislation on a bipartisan basis to reform the Disability Insurance program prior to its insolvency in 2016 and should not raid the Social Security retirement system without reforms to the Disability Insurance system.