69–006

106TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 106–34

SOCIAL SECURITY GUARANTEE INITIATIVE

MARCH 1, 1999.—Committed to the Committee of the Whole House on the State of

the Union and ordered to be printed

Mr. ARCHER, from the Committee on Ways and Means,

submitted the following

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany H.J. Res. 32]

[Including cost estimate of the Congressional Budget Office]

The Committee on Ways and Means, to whom was referred the

joint resolution (H.J. Res. 32) expressing the sense of the Congress

that the President and the Congress should join in undertaking the

Social Security Guarantee Initiative to strengthen and protect the

retirement income security of all Americans through the creation

of a fair and modern Social Security Program for the 21st century,

having considered the same, report favorably thereon with amendments and recommend that the joint resolution as amended do

pass.

CONTENTS

Page

I. Introduction ...................................................................................................... 2

A. Purpose and Summary ........................................................................ 2

B. Background .......................................................................................... 3

C. Legislative History .............................................................................. 3

II. Explanation of the Joint Resolution ............................................................... 3

A. Section 1. Short Title ........................................................................... 3

B. Section 2. Findings .............................................................................. 3

C. Section 3. Sense of the Congress ........................................................ 4

III. Votes of the Committee .................................................................................... 4

IV. Budget Effects of the Joint Resolution ........................................................... 5

A. Committee Estimate of Budgetary Effects ........................................ 5

B. Statement Regarding New Budget Authority and Tax Expenditures .................................................................................................... 5

C. Cost Estimate Prepared by the Congressional Budget Office .......... 6
2

V. Other Matters Required To Be Discussed Under the Rules of the House 6

A. Committee Oversight Findings and Recommendations .................... 6

B. Summary of Findings and Recommendations of the Government

and Oversight Committee .................................................................. 7

C. Constitutional Authority Statement .................................................. 7

VI. Additional Views ............................................................................................... 8

The amendments are as follows:

Strike out all after the resolving clause and insert in lieu thereof

the following:

SECTION 1. SHORT TITLE.

This joint resolution may be cited as the ‘‘Social Security Guarantee Initiative’’.

SEC. 2. FINDINGS.

The Congress finds that—

(1) the Social Security program provides benefits to 44,000,000 Americans, including more than 27,000,000 retirees, 5,000,000 people with disabilities, and

2,000,000 surviving children, and is essential to the dignity and security of the

Nation’s elderly, disabled, and their families;

(2) the Social Security program’s progressive benefit structure is of particular

importance to women, due to their (A) longer life expectancies than men, making the Social Security program’s lifetime, inflation-adjusted benefits a critical

income support especially for widows; (B) lower average earnings; and (C) lower

pension and other retirement savings, stemming in part from their lower incomes and their spending an average of 11 years out of the paid workforce caring for families;

(3) the approaching retirement of the Baby Boom Generation will result in

the Social Security program’s benefit costs exceeding its tax revenues beginning

in 2013;

(4) the Social Security program faces looming insolvency and instability in the

next century so that by 2032 the Social Security Trust Funds will be fully depleted and the program will be able to honor less than 75 percent of benefit

commitments; and

(5) prompt action is necessary to restore Americans’ confidence that their retirement benefits will be protected.

SEC. 3. SENSE OF THE CONGRESS.

The President and the Congress should join in strengthening the Social Security

program and protecting the retirement income security of all Americans for the 21st

century in a manner that—

(1) ensures equal treatment across generations to all Americans, especially

minorities and other low-income workers;

(2) recognizes the unique obstacles that women face in ensuring retirement,

disability, and survivor security and the essential role that the Social Security

program plays in protecting financial stability for women;

(3) provides a continuous benefit safety net for workers, their survivors, their

dependents, and individuals with disabilities;

(4) protects guaranteed lifetime benefits, including cost-of-living adjustments

that fully index for inflation, for current and future retirees; and

(5) does not increase taxes.

Amend the title so as to read:

Joint resolution expressing the sense of the Congress that the President and the

Congress should join in undertaking the Social Security Guarantee Initiative to

strengthen the Social Security program and protect the retirement income security

of all Americans for the 21st century–

I. INTRODUCTION

A. PURPOSE AND SUMMARY

House Joint Resolution 32, the ‘‘Social Security Guarantee Initiative,’’ expresses the sense of the Congress that the President and

the Congress should join in strengthening the Social Security program and protecting the retirement income security of all Americans for the 21st century in a manner that: (1) Ensures equal
3

treatment across generations to all Americans, especially minorities and low-income workers; (2) Recognizes the unique obstacles

that women face in ensuring retirement, disability and survivor security and the essential role that Social Security plays in protecting

financial stability for women; (3) Provides a continuous benefit

safety net for workers, their survivors, their dependents, and individuals with disabilities; (4) Protects guaranteed lifetime benefits,

including cost-of-living adjustments that fully index for inflation,

for current and future retirees; and (5) Does not increase taxes.

B. BACKGROUND

Despite its success in alleviating poverty and boosting the incomes of millions of workers and families affected by retirement,

death, and disability, America’s Social Security program faces a

funding crisis due to long-term demographic changes. The 1998 Social Security Trustees’ report notes that program spending will exceed tax revenues in 2013; by 2032, the Trust Funds will be exhausted and Social Security income will be sufficient to meet less

than 75 percent of program obligations.

In anticipation of these challenges, the President proposed a reform ‘‘framework’’ as part of his fiscal year 2000 budget and several

reform proposals have been introduced in Congress. Although proposals often differ on specific reform proposals, all seek to extend

the life of the Social Security program and reinforce its benefit

pledges for current and future retirees.

C. LEGISLATIVE HISTORY

H.J. Res. 32 was introduced on February 23, 1999, by Representative Ryan (R, WI) and was referred to the Committee on Ways

and Means. On February 24, 1999, the Committee ordered House

Joint Resolution 32, as amended, favorably reported to the House

by a recorded vote of 32 yeas, 0 nays.

II. EXPLANATION OF PROVISIONS

Section 1. Short title

This act may be cited as the ‘‘Social Security Guarantee Initiative.’’

Section 2. Findings

Present law

No provision.

Explanation of the resolution

The joint resolution, as approved by the Committee on Ways and

Means, makes a series of findings pertaining to the importance of

the Social Security program to millions of American families, the

significance of the program’s progressive benefits structure especially for women, the costs of the impending retirement of the Baby

Boom generation, the program’s looming insolvency, and the need

for swift action to restore Americans’ confidence that their retirement benefits will be protected.
4

Reason for committee action

The joint resolution makes clear the importance of the Social Security program for millions of American families, and thus the need

to maintain the program for current and future generations.

Section 3. Sense of the Congress

Present law

No provision.

Explanation of the resolution

The joint resolution states that the President and the Congress

should join in strengthening the Social Security program and protecting the retirement income security of all Americans for the 21st

century in a manner that: (1) Ensures equal treatment across generations to all Americans, especially minorities and low-income

workers; (2) Recognizes the unique obstacles that women face in

ensuring retirement, disability and survivor security and the essential role that Social Security plays in protecting financial stability

for women; (3) Provides a continuous benefit safety net for workers,

their survivors, their dependents, and individuals with disabilities;

(4) Protects guaranteed lifetime benefits, including cost-of-living

adjustments that fully index for inflation, for current and future retirees; and (5) Does not increase taxes.

Reason for committee action

The joint resolution expresses that the Congress and the President should work together to strengthen Social Security and protect the retirement income security of all Americans in accord with

key program principles and without raising taxes.

III. VOTES OF THE COMMITTEE

In compliance with clause 3(b) of rule XIII of the Rules of the

House of Representatives, the following statements are made concerning the votes of the Committee on Ways and Means in its consideration of the resolution, H.J. Res. 32:

MOTION TO REPORT THE BILL

H.J. Res. 32 was ordered reported favorably with amendment to

the House of Representatives by a rollcall vote of 32 yeas to 0 nays

(with a quorum present). The vote was as follows:

Representatives Yea Nay Present Representatives Yea Nay Present

Mr. Archer .............................. X ........... ............. Mr. Rangel ............................ X ........... .............

Mr. Crane ............................... X ........... ............. Mr. Stark ............................... ........... ........... .............

Mr. Thomas ............................ ........... ........... ............. Mr. Matsui ............................ X ........... .............

Mr. Shaw ............................... X ........... ............. Mr. Coyne .............................. X ........... .............

Mrs. Johnson .......................... X ........... ............. Mr. Levin ............................... X ........... .............

Mr. Houghton ......................... X ........... ............. Mr. Cardin ............................. X ........... .............

Mr. Herger .............................. ........... ........... ............. Mr. McDermott ...................... ........... ........... .............

Mr. McCrery ........................... X ........... ............. Mr. Kleczka ........................... X ........... .............

Mr. Camp ............................... X ........... ............. Mr. Lewis (GA) ...................... ........... ........... .............

Mr. Ramstad .......................... X ........... ............. Mr. Neal ................................ X ........... .............

Mr. Nussle ............................. X ........... ............. Mr. McNulty ........................... X ........... .............

Mr. Johnson ........................... X ........... ............. Mr. Jefferson ......................... ........... ........... .............

Ms. Dunn ............................... X ........... ............. Mr. Tanner ............................ X ........... .............
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Representatives Yea Nay Present Representatives Yea Nay Present

Mr. Collins ............................. X ........... ............. Mr. Becerra ........................... X ........... .............

Mr. Portman ........................... X ........... ............. Mrs. Thurman ....................... X ........... .............

Mr. English ............................ X ........... ............. Mr. Doggett ........................... X ........... .............

Mr. Watkins ........................... X ........... .............

Mr. Hayworth ......................... X ........... .............

Mr. Weller .............................. X ........... .............

Mr. Hulshof ............................ X ........... .............

Mr. McInnis ............................ ........... ........... .............

Mr. Lewis (KY) ....................... X ........... .............

Mr. Foley ................................ X ........... .............

VOTE ON AMENDMENT

A rollcall vote was conducted on the following amendment to the

Chairman’s amendment in the nature of a substitute.

An amendment by Mr. Rangel to add a new paragraph in section

3, before paragraph 1, that would add language to save Social Security first, ahead of any legislative initiatives that consume a portion of budget supluses, was defeated by a rollcall vote of 12 yeas

to 21 nays. The vote was as follows:

Representatives Yea Nay Present Representatives Yea Nay Present

Mr. Archer .............................. ........... X ............. Mr. Rangel ............................ X ........... .............

Mr. Crane ............................... ........... X ............. Mr. Stark ............................... ........... ........... .............

Mr. Thomas ............................ ........... ........... ............. Mr. Matsui ............................ X ........... .............

Mr. Shaw ............................... ........... X ............. Mr. Coyne .............................. X ........... .............

Mrs. Johnson .......................... ........... X ............. Mr. Levin ............................... X ........... .............

Mr. Houghton ......................... ........... X ............. Mr. Cardin ............................. X ........... .............

Mr. Herger .............................. ........... X ............. Mr. McDermott ...................... ........... ........... .............

Mr. McCrery ........................... ........... X ............. Mr. Kleczka ........................... X ........... .............

Mr. Camp ............................... ........... X ............. Mr. Lewis (GA) ...................... ........... ........... .............

Mr. Ramstad .......................... ........... X ............. Mr. Neal ................................ X ........... .............

Mr. Nussle ............................. ........... X ............. Mr. McNulty ........................... X ........... .............

Mr. Johnson ........................... ........... X ............. Mr. Jefferson ......................... ........... ........... .............

Ms. Dunn ............................... ........... X ............. Mr. Tanner ............................ X ........... .............

Mr. Collins ............................. ........... X ............. Mr. Becerra ........................... X ........... .............

Mr. Portman ........................... ........... X ............. Mrs. Thurman ....................... X ........... .............

Mr. English ............................ ........... X ............. Mr. Doggett ........................... X ........... .............

Mr. Watkins ........................... ........... X .............

Mr. Hayworth ......................... ........... X .............

Mr. Weller .............................. ........... X .............

Mr. Hulshof ............................ ........... X .............

Mr. McInnis ............................ ........... ........... .............

Mr. Lewis (KY) ....................... ........... X .............

Mr. Foley ................................ ........... X .............

IV. BUDGET EFFECTS OF THE JOINT RESOLUTION

A. COMMITTEE ESTIMATE OF BUDGETARY EFFECTS

In compliance with clause 3(d)(2) of rule XIII of the Rules of the

House of Representatives, the following statement is made:

The Committee agrees with the estimate prepared by the Congressional Budget Office (CBO) which is included below.

B. STATEMENT REGARDING NEW BUDGET AUTHORITY AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the

House of Representatives, the Committee states the H.J. Res. 32

results in no net decrease in budget authority for direct spending
6

programs relative to current law, and no new or increase due to tax

expenditures.

C. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE

In compliance with clause 3(c)(3) of rule XIII of the House of

Representatives requiring a cost estimate prepared by the Congressional Budget Office, the following report prepared by CBO is provided:

U.S. CONGRESS,

CONGRESSIONAL BUDGET OFFICE,

Washington, DC, March 1, 1999.

Hon. BILL ARCHER,

Chairman, Committee on Ways and Means,

House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.J. Res. 32, the Social Security Guarantee Initiative.

If you wish further details on this estimate, we will be pleased

to provide them. The CBO staff contact is Kathy Ruffing.

Sincerely,

BARRY B. ANDERSON

(For Dan L. Crippen, Director).

Enclosure.

H.J. Res. 32—Social Security Guarantee Initiative

H.J. Res. 32 would express the sense of the Congress that the

President and the Congress should work together to reform the Social Security system in a way that averts insolvency, ensures the

adequacy of benefits, assures equitable treatment for different generations, and does not increase taxes. The resolution would not authorize or appropriate any new spending or alter tax law. Therefore, CBO estimates that passages of H.J. Res. 32 would have no

budgetary effect, and pay-as-you-go procedures would not apply.

H.J. Res. 32 contains no intergovernmental or private-sector

mandates as defined by the Unfunded Mandates Reform Act and

would not affect the budgets of state, local, or tribal governments.

The CBO staff contact is Kathy A. Ruffing. This estimate was approved by Robert A. Sunshine, Deputy Assistant Director for Budget Analysis.

V. OTHER MATTERS REQUIRED TO BE DISCUSSED UNDER THE RULES

OF THE HOUSE

A. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

In compliance with clause 3(c)(1) of rule XIII of the Rules of the

House of Representatives, the Committee reports that the need for

this legislation was confirmed through its ongoing oversight of the

Social Security Administration and the Social Security programs.
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B. SUMMARY OF FINDINGS AND RECOMMENDATIONS OF THE

GOVERNMENT REFORM AND OVERSIGHT COMMITTEE

In compliance with clause 3(c)(4) of rule XIII of the Rules of the

House of Representatives, the Committee states that no oversight

findings and recommendations have been submitted to this Committee by the Committee on Government Reform and Oversight

with respect to the provisions contained in this joint resolution.

C. CONSTITUTIONAL AUTHORITY STATEMENT

With respect to clause 3(d)(1) of rule XIII of the Rules of the

House of Representatives, relating to Constitutional Authority, the

Committee states that the Committee’s action in reporting the joint

resolution is derived from Article I of the Constitution, Section 8

(‘‘The Congress shall have the power to lay and collect taxes, duties, imposts and excises to pay the debts and to provide for * * *

the general welfare of the United States * * *’’).
(8)

VI. ADDITIONAL VIEWS

The economic prosperity brought on by the tough choices made

by the Congress in 1993 presents us with an historic opportunity.

The budget surplus offers us the chance to leave the next generation free of public debt while restoring the solvency of the Social

Security Trust Fund. We should seize the moment and fix the roof

while the sun is shining.

The President has offered us a proposal which will reduce publicly-held debt and shore up the Social Security Trust Fund into

the middle of the 21st Century. The President would set aside 62%

of the projected budget surplus for Social Security. He would set

aside another 15% of the surplus for Medicare. This would draw

down the publicly-held debt and reduce interest payments on the

debt to the lowest level since World War I. This would enhance economic growth so that we can keep our Social Security promises to

future generations.

To date the Republicans have offered no solution which will restore Social Security solvency. H.J. Res. 32 is merely a ‘‘resolution’’

not a solution. In contrast, the President has laid a plan on the

table which will produce a virtuous cycle of reduced public debt and

reduced interest payments. This will keep the economy growing,

and it will enable us to provide for the retirement of the baby boom

generation by strengthening Social Security.

Democrats want to put aside the budget surplus not only to

strengthen America’s retirement security, but also to reduce the

national debt and reduce the billions of dollars wasted on interest

payments on that debt. We currently spend nearly as much on interest payments as on national defense.

The Democrats want to use the surplus to reduce interest payments both for the government and for individuals. A virtuous

cycle of debt reduction will bring down interest rates for average

Americans, including home mortgage rates and car loan payments.

Saving the surplus is the best way to deliver continued prosperity for hardworking, middle-class families. By reducing the public

debt, the President’s plan will increase national savings and

produce sustained economic growth. Federal Reserve Board Chairman, Alan Greenspan, has said, ‘‘The President’s approach to Social Security reform supports a large unified budget surplus. This

is a major step in the right direction in that it would ensure that

the current rise in government’s positive contribution to national

savings is sustained.’’

During the markup of H.J. Res. 32, Democrats offered an amendment—which all 21 of the Ways and Means Republicans present

voted against—which would have made it clear that the Congress

was committed to making Social Security its first priority. Democrats had a simple request of the Republicans—that they agree

that Social Security should be saved first, ahead of legislative ini-
9

tiatives (for example, tax cuts) that consume a portion of budget

surpluses. Unless we make Social Security our first priority, we

may never reach the goal of H.J. Res. 32—a strong Social Security

program that protects the retirement income security of all Americans into the 21st Century.

The Social Security program is the most beloved and successful

program in U.S. history. It has removed millions of Americans from

poverty. Without Social Security, half of America’s elderly would

live in poverty. Social Security has provided all Americans with a

sense of security that, if they are disabled, widowed or elderly, they

will not be left destitute.

We do not need to create a ‘‘new’’ Social Security program that

really isn’t Social Security. We need to strengthen the one that we

already have. That is why Democrats offered successful amendments to H.J. Res. 32 to demonstrate our clear intention to

strengthen Social Security, rather than to replace it with a new

system.

When Americans are asked what they want to use the surplus

for, they respond in overwhelming numbers that they want to use

it to strengthen Social Security. Young and old Americans have

made it clear that they do not want to dismantle or restructure the

current system and replace it with something else. They want a

guaranteed Social Security benefit that lasts as long as they live.

Democrats offered a successful amendments to assure that benefits were guaranteed for both current and future generations, rather than just for current beneficiaries and those nearing retirement.

All Americans, including young people, deserve to know that Social

Security is going to be there for them. American workers, young

and old alike, deserve to know that, once they reach retirement, Social Security and its lifelong, guaranteed, inflation-protected benefits will be there for them, just as those same benefits are there

for today’s retirees.

Democrats also offered a successful amendment to make it clear

that those current and future retirees should receive guaranteed

lifetime benefits, including cost-of-living adjustments that fully

index for inflation. Retirees over the age of 80—most of whom are

women—are among the most economically vulnerable Americans.

Without a full cost-of-living adjustment, the very old would fall further and further behind other Americans in their standard of living.
10

It is not in the interest of either Democrats or Republicans to

have another ‘‘do-nothing’’ Congress. The only way that we will

solve the challenges involved with Social Security and Medicare is

to act in a bipartisan way. We need real solutions—not resolutions.

Putting off action will not benefit anyone. We need to prove the

cynics wrong and act now to secure the Social Security and Medicare programs for future generations.

ROBERT T. MATSUI.

MICHAEL R. MCNULTY.

WILLIAM J. COYNE.

C.B. RANGEL.

JIM MCDERMOTT.

JERRY KLECZKA.

PETE STARKE.

LOLYD DOGGETT.

BEN CARDIN.

WM. J. JEFFERSON.

JOHN LEWIS.

JOHN TANNER.

RICHARD E. NEAL.

XAVIER BECERRA.

KAREN L. THURMAN.

SANDER LEVIN.

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