April 29, 2005 - “The President continues to ignore the growing opposition to privatization.  Now he wants to weaken Social Security even further with an extreme means test on benefits. There is no longer any doubt that the Administration's approach would dismantle Social Security.”

We now have more details on the President's Social Security agenda. By diverting money into private accounts and implementing massive new sliding scale benefit cuts, his proposal will erode Social Security's safety net. This would transform a universal insurance program into a welfare program, eventually undermining the broad public support that Social Security has enjoyed for nearly 70 years.

Under the President's latest proposal, almost three out of four workers under age 55 would lose between 20 and 50 percent of their Social Security benefit even if they didn't opt for the private account.

For those who would take the risk of investing in private accounts, they will lose an additional dollar of Social Security benefits for every dollar they invest in the accounts plus interest and inflation. They would see this reduction in benefits regardless of how their accounts performed.  Thus, for many workers the guaranteed benefit would disappear completely over time.

The four million members and supporters of the National Committee have asked their members of Congress to reject any proposals that would weaken Social Security at a time when we should be strengthening it for our children and grandchildren.