Social Security: Report of the President's Commission to Strengthen Social Security

Publication Date: December 2001

Publisher: Library of Congress. Congressional Research Service

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Research Area: Banking and finance

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Abstract:

In May 2001, President Bush signed Executive Order 13210 establishing the President's Commission to Strengthen Social Security. The 16-member commission appointed by the President was directed to make recommendations on ways to "modernize and restore fiscal soundness to the Social Security system" in accordance with six guiding principles, one of which mandates the creation of personal retirement accounts. On December 21, 2001, the Commission issued a final report that includes three alternative plans for reforming Social Security. Under all three plans, workers could choose to invest in personal retirement accounts, and their traditional Social Security benefit would be reduced by some amount. The first plan would make no other changes to the program. The second plan would slow the growth of Social Security through one major provision that would index initial benefits to prices rather than wages. The third plan would slow future program growth through a variety of measures. To mitigate the effects of benefit reductions, the latter two plans would guarantee a minimum benefit and enhance benefits for widow(er)s. This report describes the Commission's three reform plans. It will be not be updated.