On
May 2, 2001 President Bush announced establishment
of a bipartisan, 16-member Commission "to study and report specific recommendations to preserve Social Security for seniors
while building wealth for younger Americans."
Guiding Principles
The Commission was asked to make recommendations to modernize and
restore fiscal soundness to Social Security, using six guiding principles:
- Modernization must not change Social Security benefits for retirees
or near-retirees.
- The entire Social Security surplus must be dedicated only to Social
Security.
- Social Security payroll taxes must not be increased.
- The government must not invest Social Security funds in the stock
market.
- Modernization must preserve Social Security`s disability and
survivors insurance programs.
- Modernization must include individually controlled, voluntary
personal retirement accounts, which will augment Social Security.
Findings of the Commission
Public hearings began on June 11 and concluded on December 11, 2001.
The Commission released its final report on December 21, 2001 (revised
March 19, 2002), presenting three models
for modifying the current Social Security program.
On October 3, 2002, the Committee on Finance of the U.S. Senate held a hearing on the final report of the Commission. Commission member
Olivia Mitchell presented
testimony at the hearing.