That commission expanded the plan to cover federal employees and instituted a gradual retirement age increase from 65 to 67. Social Security is expected to start paying out more than it collects by 2016 because of an influx of baby boom retirees. Some estimates say that the fund will run out of money after 2038. Bush has proposed shoring up the program by letting younger workers voluntarily invest some of their payroll taxes in private accounts, arguing that the stock market will provide a much greater return over time. The American Association of Retired Persons has condemned Bush's plan and the commission.
Opponents point to recent stock market volatility as a reason against such accounts.
They also say the private accounts would drain too much money from the program. The White House said Bush was not aware of the federal lawsuit before naming the AOL Time Warner executive to the Social Security commission, but remains confident of his appointment. The Labor Department filed suit against Time Warner Inc. in 1998, alleging that the media giant had wrongly classified hundreds of workers as temporary employees and independent contractors to keep from paying health and pension benefits. Something to celebrate.