Chapter
1
INTRODUCTION
On December 16, 1981, President Reagan promulgated Executive Order
12335, which established the National Commission on Social Security
Reform. The National Commission was created as a result of the continuing
deterioration of the financial position of the Old-Age and Survivors
Insurance Trust Fund, the inability of the President and the Congress
to agree to a solution, and the concern about eroding public confidence
in the Social Security system.(1)
The National Commission is composed of fifteen members, eight Republicans
and seven Democrats. Five members were selected by the President,
on a bipartisan basis; five were selected by the Senate Majority
Leader, in consultation with the Senate Minority Leader, on a bi-partisan
basis; and five were selected by the Speaker of the House of Representatives,
in consultation with the House Minority Leader, on a bi-partisan
basis.
The Executive Order provides that the National Commission should:
". . . review relevant analyses of the current and long-term
financial condition of the Social Security trust funds; identify
problems that may threaten the long-term solvency of such funds;
analyze potential solutions to such problems that will both assure
the financial integrity of the Social Security System and the provision
of appropriate benefits; and provide appropriate recommendations
to the Secretary of Health and Human Services, the President, and
the Congress."
In carrying out its mandate, the National Commission met nine times,
on approximately a monthly basis. Because of the brevity of the
time in which to complete its work, the National Commission held
no public hearings. However, it reviewed the results of the many
hearings, studies, and reports of other public bodies, including
Congress, the 1979 Advisory Council on Social Security, and the
1981 National Commission on Social Security. The National Commission
on Social Security Reform sought the advice of a number of experts
and thoroughly examined a wide variety of alternative approaches.
Chapter 2 presents the major findings and recommendations of the
National Commission. Chapter 3 deals with the financial status of
the Medicare program. Additional Statements of individual members
appear in Chapter 4.
The appendices to this report contain the following materials:
Executive Order 12335, establishing the National Commission; Executive
Order 12397, modifying the original Executive Order by extending
the reporting date by 15 days; Executive Order 12402, giving a further
extension in the reporting date (until January 20, 1983); the White
House press release of December 16, 1981, announcing the membership
of the National Commission; the Charter of the National Commission;
the President's letter to the National Commission; a list of meetings
held; a list of the technical memorandums prepared for the use of
the members during their deliberations; a list of the prepared presentations
made by experts who appeared before the National Commission; a roster
of the staff; a detailed description of the financial status of
the Social Security program; and a detailed listing of possible
options and their cost effects and basic tables which served as
background material for the meetings. |