State of the Union address: on Social Security

Bobby Jindal: Supports Bush's proposal for personal retirement accounts

Rep. Bobby Jindal praised Bush for offering specifics. "The administration has a lot more work to do to continue educating the American people about the very serious challenges facing Social Security. I think today was a great first step; I think more work needs to be done."

One pending question: If workers are rerouting some of their Social Security tax payments into personal retirement accounts, how will the system pay for retiree benefits? Jindal said, "We're not creating one additional dollar of deficit spending by doing this. These transition costs, all they are really doing is recognizing a debt that exists today."

George W. Bush: FactCheck: System may pay less, but will not go bankrupt

“Bankruptcy” is a scary term that Democrats have used too, when it suited them, but it could easily give the wrong idea. Nobody is predicting that Social Security will go out of business the way a bankrupt business does. It would continue to pay benefits -- just not as many.

The President projects that the system’s trust fund will be depleted in 2042. After that, the system would have legal authority to pay only 73 percent of currently promised benefits -- and that figure would decline each year after, reaching 68 percent in the year 2075. The Congressional Budget Office doesn’t project trust-fund depletion until a decade later, in 2052, and figures that the benefits cuts wouldn’t be so severe, a reduction to 78% of promised benefits. But either way, even a “bankrupt” system would continue to provide most of what’s promised currently.

George W. Bush: FactCheck: Private accounts are a good bet, not a sure thing

George W. Bush: FactCheck: Only SOME of your personal account is yours

And even at retirement, the government would control what becomes of the money. First, the government would automatically take back a portion of the money at retirement and convert it to a guaranteed stream of payments for life-an annuity. Only after the combination of traditional Social Security benefits and the mandatory annuity payments from the private account equal the poverty level would any remaining portion in the account be “yours.” The President didn’t mention the mandatory nature of these restrictions, calling them only “guidelines.”

George W. Bush: Social Security system is headed toward bankruptcy

Today, more than 45 million Americans receive Social Security benefits, and millions more are nearing retirement. And for them, the system is strong and fiscally sound. I have a message for every American who is 55 or older: Do not let anyone mislead you. For you, the Social Security system will not change in any way.

In 2018, Social Security will be paying out more than it takes in. And every year afterward will bring a new shortfall, bigger than the year before. By 2033, the annual shortfall would be more than $300 billion. By the year 2042, the entire system would be exhausted and bankrupt.

George W. Bush: Personal retirement accounts for younger workers

Your money will grow, over time, at a greater rate than anything the current system can deliver, and your account will provide money for retirement over and above the check you will receive from Social Security. In addition, you’ll be able to pass along the money that accumulates in your personal account, if you wish, to your children or grandchildren. And best of all, the money in the account is yours, and the government can never take it away.

Harry Reid: Bush’s plan guarantees a 40% benefit cut

The Bush plan would take our already record high $4.3 trillion debt and put us another $2 trillion in the red. That’s an immoral burden to place on the backs of the next generation.

But maybe most of all, the Bush plan isn’t really Social Security reform. It’s more like Social Security roulette. Democrats are all for giving Americans more of a say and more choices when it comes to their retirement savings. But that doesn’t mean taking Social Security’s guarantee and gambling with it. And that’s coming from a senator who represents Las Vegas.