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    FOR IMMEDIATE RELEASE:
    September 14, 2005

    CONTACT:
     Pamela Causey 202-216-8378/202-236-2123
    Kim Wright 202-216-8414

    ~ 4 Million Seniors ~ One Voice ~No Privatization ~

    Congressional Budget Analysis Confirms Private Accounts Plan adds Trillions to Debt  

    A newly released Congressional Budget Office analysis details the huge price tag attached to Social Security privatization plans in the House. According to the CBO analysis H.R. 3304, the so-called “GROW accounts” plan, would increase federal spending by more than $1 trillion dollars in the near term and over time increase the debt by a staggering 33% of GDP.

    “This CBO analysis illustrates the tremendous economic costs of this latest privatization plan. Future generations of American workers will be asked to pay these costs while at the same time trading their traditional benefits for private accounts with increased risk over the long term”
    - - Barbara B. Kennelly  

    The CBO reports details how the proposed private accounts would operate and their effect on traditional Social Security benefits. Among the findings:

    • “Grow Account” legislation does not prevent Congress from spending the Social Security trust fund. The CBO reports, the Social Security surpluses…”would still be available for use for other programs and activities”.  
    • “Grow Account” legislation does add risk to the current system. The CBO reports…“the net impact on total retirement benefits would depend on whether an account earned more or less than the Treasury rate of return”.

    NCPSSM's 4.6 million members and supporters do not support the privatization of Social Security. Now, more than ever, they want to protect our nation's social safety net. Private Accounts clearly weaken a Social Security system that has served millions of American well for decades and can continue to do so without dismantling the current program or undermining it's basic guarantees.

    The National Committee, a nonprofit, nonpartisan organization acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the Board of Directors and professional staff. The work of the National Committee is directed toward developing better-informed citizens and voters.