Wednesday, December 18, 2024
44.0°F

Burns gets an earful on Social Security

by LYNNETTE HINTZE The Daily Inter Lake
| April 3, 2005 1:00 AM

Sen. Conrad Burns, R-Mont., faced an agitated and sometimes angry audience Saturday in Kalispell as he gathered input about how to fix Social Security's impending financial woes.

Congressman Dennis Rehberg, R-Mont., was slated to co-host the town meeting but did not attend.

Saying he hasn't thrown his support to any particular proposal, Burns told a crowd of more than 200 people that he wanted specific ideas about how the government might stave off a dire deficit that's predicted to hit about 2017 when masses of baby boomers retire.

He got an earful.

Elmer Bastrom of Whitefish said the government has to eliminate Congress' ability to raid the Social Security trust fund to subsidize spending in other areas.

Burns acknowledged that previous lock-box bills haven't been successful in locking away Social Security money.

"That's because you had the key," Bastrom shouted. "I have a union pension that's good 'til the day I die because no one touches it but me. You've let everybody spend it [Social Security]. I want it fixed so these kids can 'say my retirement is good.' "

The crowd became more caustic when Social Security Administration spokesperson Delia Lasanta said the government issues IOUs when money is taken out of the Social Security trust fund.

"Who owns the IOUs?" asked Don Snow of Kalispell, who said he's heard other countries have been purchasing the IOUs and suggested the results of that could be disastrous.

For many in the audience, the issue boiled down to trust.

"How are we going to keep it honest?" asked Beth Morgenstern of Bigfork.

She said she likes the idea of people being able to privately invest some of their money, "but I don't want some broker or politician getting a big chunk of it."

Eric Funk of Whitefish said he too has questions about trust.

"Why should I trust this administration to act in my own best interest?" he asked.

Several people suggested means testing - examining whether or not individuals actually need Social Security - as a way of saving money. One woman said wealthy people who don't need the government assistance could be given a charitable tax credit instead of a monthly Social Security check.

Craig Christophersen of Kalispell said he'd support both means testing and a gradual raising of the retirement age.

"Social Security is not a retirement account," he said. "It's a basic insurance program. [People] need other retirement savings and those should be encouraged."

A few young people in their 20s who attended the town meeting said they're not counting on Social Security to still be there when they retire.

"The problem is the government got involved in retirement in the first place," said a 24-year-old man who recently finished a stint in the Marines. "I'm not looking to get Social Security, I'm not planning on it. I'll set aside money now. I'm responsible for my future."

More than 156 million workers currently pay into Social Security, Lasanta said. Last year, a staggering $493 billion in retirement, survivor and disability benefits was paid to 48 million Americans.

Even though the trust fund still has reserves, in just 12 years the fund will start paying out more in benefits than it takes in. An increasing life expectancy for both men and women adds to the problem, while at the same time there are fewer workers paying into Social Security, Lasanta explained.

"Most people have decided we do need to make changes and the sooner we make them the less painful it will be," she said. "We need to achieve a sustainable solvency that's permanent."

Burns said Congress' plan in the end may not include privatization of Social Security.

"President Bush has highlighted that the debate has to start," Burns said. "Personal accounts isn't the silver bullet. Neither is raising the cap or the retirement age, or even raising taxes. It may be a combination of everything.

"No matter what our past sins are, we are in this situation and I'll listen to what Montanans have to say," he added.

Lasanta encouraged the audience to access Social Security's Web site at www.socialsecurity.gov for more information.

Features editor Lynnette Hintze may be reached at 758-4421 or by e-mail at lhintze@dailyinterlake.com