Sen. Graham proposes Social Security personal accounts, AARP says no

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Sen. Graham proposes Social Security personal accounts, AARP says no

Jack Kuenzie, Wisc News

November 18, 2003

Kevin Miller, 36, of Cayce isn't anywhere close to retirement. The concrete finishing expert and father of three has thought about how he'll deal with his financial needs when he's ready to hang up his trowel.
He wonders whether he'll be able to count on Social Security, "The way it's going now, it might not even be there for us, let alone for the next generation."

Younger workers like Kevin are targeted in a Social Security reform measure introduced Tuesday by South Carolina Senator Lindsey Graham. It allows people 54 and under to shift some of their Social Security contributions into a personal retirement account. Four percent or up to $1300 a year could be invested in stocks and bonds.

Graham says the plan gives workers control over some of their contributions and keeps Social Security from going bankrupt, "Let's change the fundamental design of the system, without putting anyone unneccesarily at risk."

The senator's proposal will not get support from at least one group representing older Americans.

Dr. Pamela Roshell, director of SC AARP, says the Graham plan will reduce benefits and accelerate the system's march toward insolvency, "It sounds wonderful to manage your own account, but you really need to be well-informed about the risks involved with doing that."

AARP's Evelyn Morton spoke to WIS by phone from Washington, "There's certainly a reluctance to propose benefit cuts at this point in time. And there are benefit cuts for future generations in this bill."

Lewis Miller, 16, has been watching and learning from his father. Kevin Miller says he's concerned about what the government will be able to provide for his son, "It's not just saving it for one generation. It's saving it for all generations coming up."

Graham has support from the Alliance for Worker Retirement Security, but has yet to convince the White House.

Many activists think Graham's bill could serve as the foundation for a bill in 2005, if President Bush is re-elected. Graham says the president has identified Social Security reform as a key legislative issue for his second term. The senator says he talked with Bush about the issue during the president's fund-raiser in Greenville last week.

Graham says Bush will run on the idea again next year. He says the president thinks it's a winning issue. He says he is proof Republicans can win elections and talk about overhauling Social Security.

He says Congress still needs to tackle Social Security reform even if his approach does not get enough backing. Graham says that has to be done without allowing the debate to degenerate into a battle of partisan attack ads.