President Bush believes that we need to explore new ways to ensure that
Social Security remains strong and financially secure for America’s
children and grandchildren. The President formed a bipartisan Presidential
Commission to review Social Security and recommend reforms to put the
system on sound financial ground. He has repeatedly stressed the need for
modernization of the Social Security System. President Bush has also
proposed solutions to strengthen pension plans and enhance retirement
security for all Americans.
The President’s plan to strengthen retirement security includes:
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Creating a Society of Stakeholders: President Bush
supports the creation of Individual Development Accounts, providing
savings matches for low-income Americans to accounts that would grow
tax-free. The President’s Social Security framework would also give all
wage earners the opportunity to invest in financial assets, an
opportunity that only half of Americans can now afford.
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Expanding Ownership of Retirement Assets: The tax
relief legislation signed into law by the President in 2001 provided
almost $50 billion dollars of tax relief over the next ten years to
strengthen retirement security.
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Ensuring Freedom of Choice: The President’s
proposal would ensure that workers who have participated in 401(k) plans
for three years are given the freedom to choose where to invest their
retirement savings. The President has also proposed that choice be a
feature of Social Security itself, allowing individuals to voluntarily
invest a portion of their Social Security taxes in personal retirement
accounts.
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Minimizing Risk through Diversification: The
President’s proposals would ensure that workers can sell company stock
and diversify into other investment options, minimizing their risk.
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Strengthening Women’s Retirement Security: The
President signed into law legislation that would allow for “catch up”
contributions to retirement plans, helping millions of American women
who took time out from the work force to care for dependent family
members. The President’s Social Security Commission also made a number
of recommendations to vastly improve the treatment of women through
Social Security, including the creation of property rights in a personal
account for every woman who experiences a divorce, expanded benefits for
widows, and new “anti-poverty” benefit guarantees that would benefit
women.
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Helping Future Generations Achieve the American Dream:
The President has proposed extending Social Security to include
inheritable assets. This provision would assist communities where life
expectancies are unfortunately shorter than national averages, including
African American households.
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Spurring National Saving and Economic Growth: Tax
relief legislation signed into law by the President will accelerate
economic growth by expanding national saving. The President’s Commission
to Strengthen Social Security has found that the President’s Social
Security initiative would “lead to increased national saving” in a way
that is necessary to foster long-term economic growth.
