Trustees Report on Social Security suggests need for reforms

Today, Our Generation responded to the Trustees Report on Social Security released Wednesday. The Report stated that Social Security's retirement trust fund is on track for insolvency in 2034 while the disability trust fund could run out by the end of 2016. This new data on the program suggest that reforms to the program are needed.

"Social Security beneficiaries need Social Security reforms that will not increase the retirement age, decrease benefits or increase taxes," said Our Generation Executive Director MacMillin Slobodien. "Social Security is a program worth saving. It is a program that retired Americans and seniors have come to rely on. Politicians would be wise to reform the Social Security program in meaningful ways."

Social Security is on a collision course to insolvency. Politicians and the Obama administration should be aware that small changes to the program can make the program solvent for years to come and pave the way for more structural changes in the future.

The reforms outlined below would make both Social Security programs more solvent and transparent, two criticisms the current programs face. Suggested reforms include:

• Locking the trust fund and using payroll taxes only to fund Social Security;
• Replacing IOUs with cash, giving beneficiaries more security and transparency;
• Adding Trust Fund IOUs to the National Debt, which would increase transparency;
• Reforming Social Security Disability Insurance by tightening eligibility requirements to focus resources on the most disabled individuals, coupled with incentives to employers to keep disabled individuals working.