ADVISORY

FROM THE COMMITTEE ON WAYS AND MEANS

SUBCOMMITTEE ON SOCIAL SECURITY

Shaw Announces Field Hearing on Social Security’s Future

Congressman E. Clay Shaw, Jr., (R-FL), Chairman, Subcommittee on Social Security of the Committee on Ways and Means, today announced that the Subcommittee will hold a field hearing on Social Security’s future.  The hearing will take place on Monday, January 26, 2004, at the Live Oak Pavilion at Florida Atlantic University, 777 Glades Road, Boca Raton, Florida, beginning at 10:00 a.m.

Oral testimony at this hearing will be from invited witnesses only.  Also, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Subcommittee or for inclusion in the printed record of the hearing.

BACKGROUND:

For over 60 years, Social Security has provided essential protection against loss of income due to retirement, disability, or death for workers and their families.  As a result, the number of seniors living in poverty has decreased in the past 45 years.  In 1959, one third of seniors had income below the poverty line compared with one tenth of seniors today.  

Yet, Social Security is much more than a retirement program.  In return for the hard-earned Social Security taxes they pay, workers and their families can also count on Social Security disability benefits in the event of a long-term disability.  That’s important, since almost 3 in 10 of today’s 20-year-olds will become disabled before full retirement age.  In addition, Social Security survivor benefits are available to young children and their parents if the family breadwinner were to die.  Unfortunately, 1 out of every 7 Americans will die before full retirement age.

It is not only because of disability and survivor insurance that younger workers have a vital interest in Social Security.  The Social Security taxes paid by both younger and older workers today are the funds used to pay Social Security benefits to current retirees, survivors, and disabled workers.  In other words, Social Security benefits would not be paid if workers and their employers did not contribute about $1 out of every $8 of earnings to Social Security.  Americans of all ages need to understand Social Security’s full range of benefits and how they are financed in order to recognize their stake in Social Security’s future.

While Social Security will continue to be there for future generations, the 2003 annual report of the Social Security and Medicare Board of Trustees concluded that in approximately 15 years, the system will begin to run cash shortfalls that will grow in severity each subsequent year.  Social Security will still be able to pay full benefits until 2042 by redeeming Treasury bonds held in the trust funds, but honoring the bonds will place growing pressure on the rest of the government's budget.  After that point, revenues are projected to cover only about three-fourths of benefit costs and even less thereafter. This occurs about the same time as today's 20-year-olds will be entering retirement.

Demographics largely drive the program's financing problem.  Families are having fewer children and advances in medicine are enabling people to live longer.  As a result, there will be fewer workers supporting each retiree in the future.

In announcing the hearing, Chairman Shaw stated:  “Today’s young people have a huge stake in the choices we make to strengthen Social Security.  I’m pleased that Florida Atlantic University is hosting this hearing to focus students on Social Security’s relevance to their lives.  These young people are Social Security’s future, and they will bear the burden should policymakers fail to act.” 

FOCUS OF THE HEARING:

The hearing will focus on Social Security’s role in providing income security, program financing, factors causing Social Security’s financial challenges, the consequences of inaction, choices policymakers face, and issues for the Subcommittee to consider as they move forward.

DETAILS FOR SUBMISSIONS OF WRITTEN COMMENTS:

Please Note:  Due to the change in House mail policy, any person or organization wishing to submit a written statement for the printed record of the hearing should send it electronically to hearingclerks.waysandmeans@mail.house.gov, along with a fax copy to (202) 225-2610, by the close of business, Monday, February 9, 2004.  Those filing written statements who wish to have their statements distributed to the press and interested public at the hearing should deliver 200 copies to the West Palm Beach District Office of Congressman E. Clay Shaw, Jr., 222 Lakeview Avenue, Suite 225, West Palm Beach, Florida 33401, by the close of business, Thursday, January 22, 2004.  Please note that in the immediate future, the Committee website will allow for electronic submissions to be included in the printed record.  Before submitting your comments, check to see if this function is available.

FORMATTING REQUIREMENTS:

Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below.  Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1.   All statements and any accompanying exhibits for printing must be submitted electronically to hearingclerks.waysandmeans@mail.house.gov, along with a fax copy to (202) 225-2610, in Word Perfect or MS Word format and MUST NOT exceed a total of 10 pages including attachments.  Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record. 

2.  Copies of whole documents submitted as exhibit material will not be accepted for printing.  Instead, exhibit material should be referenced and quoted or paraphrased.  All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3.  All statements must include a list of all clients, persons, or organizations on whose behalf the witness appears.  A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers of each witness.

Note: All Committee advisories and news releases are available on the World Wide Web at http://waysandmeans.house.gov.

The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.