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STRENGTHENING SOCIAL SECURITY

Today, the Social Security pension - the largest source of income for many elderly Americans - is more important than ever.

By EDWARD HYSYK

At the recent AFSCME International Convention in July, the delegates voted to accept an important resolution, "Strengthening Social Security."

The delegates at our national union's 42nd convention realize that they are "retirees in training" as the late president of the Retirees Association of DC 37, Stu Leibowitz, was fond of saying. So, they voted without hesitation for the resolution.

The resolution - submitted to the American Federation of State, Counties and Municipal Employees' convention by our own Amalgamated Professional Employees Local 154 - rejects the disinformation campaign of conservative free-marketers who claim the system is in trouble and should be privatized. We believe Social Security can easily be preserved for future generations by implementing simple adjustments, such as raising the contribution rate of the wealthy.

The Republican Party opposes increasing the payroll tax and, as stated in the platform for its convention this summer, wants to use the "power of free markets" (translation: privatization) to secure Social Security. By contrast, Democrats would strengthen and expand Social Security by raising the cap (now $118,500) to require people with incomes of $250,000 and higher to contribute more.

Today, the Social Security pension - the largest source of income for many elderly Americans - is more important than ever. One in three Americans has no retirement savings.

The old pension model of the three-legged stool comprised of employer pensions, Social Security, and personal savings is broken primarily because employers are not providing savings plans and replacing traditional pension plans with 401(k) plans, which are not meeting the retirement needs of workers.

For the majority of Americans who do not enjoy the three-legged stool, Social Security is the only safety blanket that they have for their golden years. In fact, for some Americans, it is the only blanket they have!

Minor adjustments to the Social Security System, such as raising or eliminating the cap, increasing FICA payroll tax by 1 percent for both employers and employees, and including more workers in the system (25 percent of state, county, and municipal employees are not covered by Social Security) would insure the solvency of the system for at least another three generations.

Social Security is one of the most cost-efficient systems in the federal government. At about 1 percent, its administrative costs are unbelievably low. Privatizing Social Security would be a windfall for Wall Street because it charges high administrative fees.

Some Republicans and right-wing conservatives like the Koch brothers do not acknowledge that Social Security retirement benefits play a key role in our economy.

These benefits support more than 9 million jobs and produce more than $1 trillion dollars of economic output. This output ripples through the economy, supporting schools, small businesses, shopkeepers and communities. In the heartland of America, the so-called rust belt, where most well-paying jobs have evaporated, small communities could hardly exist without the infusion of Social Security dollars.

Social Security benefits are not being squirreled away in off-shore accounts. Nor are they hidden in anonymous Swiss bank accounts.

Thus, it is up to all of us to support strengthening the current Social Security system and to repel attacks that aim to reduce benefits or even eliminate the Social Security system itself.

Edward Hysyk is the executive vice president of the Retirees Association of DC 37. He is a former president of Data Processing Personnel Local 2627.