Thompson Campaign Press Release - Thompson Proposes Plan to Save Social Security and Protect Seniors

McLean, VA -- Senator Fred Thompson today held an honest and straightforward discussion about his proposal to save Social Security for today's generation of workers and protect America's seniors by fully preserving their benefits. Sen. Thompson is the only presidential candidate to offer a comprehensive proposal on one of the nation's most critical domestic issues.

"There's no reason to run for President of the United States if you can't tell the American people the truth about complex issues like Social Security," Thompson said. "As we speak, Congress is raiding the Social Security Trust Fund. If we don't act soon, the politicians in Washington will either repay those 'IOUs' through tax hikes or benefit cuts.

"My plan keeps our promise to America's seniors by fully protecting their benefits and leaving them unchanged. Younger workers will be given the option of growing their personal wealth for the future and participating in a successful investment program similar to the one enjoyed by Members of Congress," Thompson added.

Fact: The first Baby Boomer applied for Social Security benefits in October. She is the first of 80 million Boomers to seek the entitlement. The ratio of workers per recipient will fall from 3.3 to 2.1 over the next 24 years, when all Baby Boomers are past of the age of 65. Currently, Americans aged 65 and older account for approximately 12% of the population, but in 2030 they are expected to comprise 20% of the total population.

Goals for Saving Social Security and Protecting America's Seniors:

• Leave Social Security benefits received by current retirees and those near retirement completely unchanged and fully preserve their annual cost of living adjustment. No one now over the age of 57 will be affected.

• Preserve and strengthen Social Security for future generations of Americans and guarantee the current benefit structure, fully protected for inflation.

• Increase retirement options for today's workers - and future generations - by giving them the option when to retire and allowing them to build wealth they can pass on if they so choose.

• Completely eliminate the estimated $4.7 trillion unfunded Social Security liability over the 75 year actuarial planning horizon and leave Social Security permanently fiscally sustainable.

Sen. Thompson's plan to Save Social Security and Protect Seniors has two primary elements: 1) Provide voluntary personal retirement "add on" accounts to supplement benefits; 2) Index Social Security benefit formula for prices, not wages.

This plan would give current workers, who are not already receiving Social Security benefits, the option of making voluntary contributions into personal retirement accounts, similar to a 401(k) plan or the federal government's Thrift Savings Plan, enjoyed by Congress. Workers would contribute 2% of their monthly wages, which would be matched by the federal government, thereby permitting workers to participate in the expansion of wealth in America.

The plan also calls for indexing Social Security benefits for prices instead of wages. Current law calculates the initial benefit level of Social Security recipients according to the annual increase in wages. By calculating benefits of new beneficiaries according to price inflation, we leave all current beneficiaries and those nearing retirement completely untouched. No one now over the age of 57 will be affected.

"We live in the greatest nation on earth - a free nation with free markets where citizens who play by the rules and work hard can expect to live the American Dream. If they need help in this country they can get help and those that can help themselves are expected to do so. My plan to protect Social Security guarantees promises made to our seniors and gives today's workers more choice and greater opportunity for their future," said Thompson.