“The greatest threat facing Social Security today are these radical privatization schemes. This legislation is no different from other proposals to privatize Social Security, except that they would super size the dismantling of Social Security.” - - Barbara B. Kennelly

Latest Privatization Proposals Will Offer Scant Financial Security in Retirement  

In an attempt to beguile America’s current and future retirees with a fictitious plan for shoring-up the future of Social Security through privatization, Senator John Sununu (R-NH) and Rep. Paul Ryan (R-WI) have announced a proposal to super size the dismantling of the Social Security program by introducing legislation that would create individual investment accounts to replace current Social Security benefits. Several other members of the House of Representatives, led by Rep. Sam Johnson (R-TX) intend to introduce similar legislation today.

Like other proposals to privatize Social Security, their plans would cut Social Security benefits, depriving millions of Americans of the protections offered by the current system. By diverting funds from the Social Security Trust Fund into individual Wall Street accounts, the plans would deplete the Social Security Trust Fund and subject retirees’ benefits to the whims of the stock market.

Both plans would be financed by trillions of dollars in transfers from the general revenues of the U.S. Treasury at a time of record federal deficits. In the case of the Sununu/Ryan plan, experts estimate the transfer to be more than $7 trillion. The present value of the Social Security shortfall is only half that amount.

The 3.2 million members and supporters of the National Committee to Preserve Social Security and Medicare believe that if there is enough money to fund the privatization of Social Security, then there is enough money to preserve Social Security.