Senators propose bipartisan Social Security reform commission

May 4, 2000
Web posted at: 5:50 p.m. EDT (2150 GMT)

WASHINGTON (CNN) Former Republican presidential hopeful Sen. John McCain teamed up with two of his Democratic colleagues Thursday to propose the creation of a special commission to overhaul Social Security.

Sen. John McCain

McCain (R-Arizona), along with Sens. Daniel Patrick Moynihan (D-New York) and Bob Kerrey (D-Nebraska) are sponsoring a bill that would create a bipartisan commission to examine reform proposals and make recommendations.

"For too long, Social Security has been used by politicians on both sides of the aisle (Republicans and Democrats) to polarize, manipulate and scare American voters," McCain told reporters Thursday during a Capitol Hill press conference.

The Social Security program faces increasing financial strains as members of the Baby Boom generation begin to retire in large numbers. Under current estimates, after 2015 the program's spending will begin to exceed revenues and by 2037 the trust fund will be exhausted, leaving recipients with about two-thirds of promised benefits.

The 12-member panel -- which would include members of the House and Senate along with the commissioner of the Social Security Administration -- would be instructed to offer proposals extending the program's solvency for 75 years, while guaranteeing that workers receive all the benefits to which they are entitled.

Overhaul proposals would also have to consider ways for a reasonable rate of return on payroll tax contributions as well as ways for taxpayers to participate in private investment accounts. The panel would also be asked to consider using non-Social Security surplus money to shore up the system.

Social Security has already emerged as a contentious issue in the presidential campaign between Vice President Al Gore and Texas Gov. George W. Bush.

Sen. Bob Kerrey

Gore, the presumptive Democratic nominee, has accused Bush of devising "a secret plan" that would put retiree benefits at risk. Bush has yet to offer a detailed proposal to keep the program solvent, but has voiced support for allowing workers to invest some of their Social Security tax money in financial markets -- a move Gore has called "stock market roulette."

The vice president has proposed using the $2.2 trillion Social Security surplus to shore up Social Security and pay down the national debt. Gore says that the billions saved in interest by paying down the debt could be redirected to prolonging the entitlement program's solvency until at least 2050.

"They're both helping (the reform issue) by bringing it into their campaign," Kerrey said of the presidential candidates' competing plans. "The debate about Social Security is likely to increase the chances that next year, or soon after, Congress will take action."

The three senators declined to comment specifically on the rhetorical fight between the two candidates -- although Kerrey, who supported Democratic challenger Bill Bradley during the primary season, said he hoped Gore would "keep an open mind" on the reform issue.

"A proposal like this can be consistent with Democratic values, it absolutely can," Kerrey told reporters.

But Sen. Charles Schumer (D-New York), a Gore supporter, also held a news conference Thursday, where he slammed Bush's "secret plan."

"The Bush plan is a big mistake...it's irresponsible and risky." said Schumer, echoing Gore's recent remarks. "The stock market is risky and if he sticks to his plan, so is the prospect of a George Bush presidency."

McCain himself waded into the highly charged campaign debate on Tuesday, calling Gore's recent charges against Bush "dead wrong."

"The vice president is again raising the specter of Social Security to frighten senior citizens," McCain said. "Instead of frightening seniors, we need to sit down and realize that we need to find a source of money to make Social Security solvent and then allow Americans to be able to invest their savings in their retirement accounts."

CNN's Dana Bash and Reuters contributed to this report.