RECOMMENDATIONS OF THE NATIONAL COMMISSION ON SOCIAL SECURITY REFORM TUESDAY, FEBRUARY 1, 1983 HOUSE OF REPRESENTATIVES, Washington, D.C. The committee met at 9:10 a.m., pursuant to notice, in room 1100, Longworth House Office Building, Hon. Dan Rostenkowski (chairman of the committee) presiding. [The press releases announcing the hearings follow:] [Press release of Thursday, Jan. 6, 1983] HON. DAN ROstenkowski, CHAIRMAN, Committee on WAYS AND MEANS, ANNOUNCES FULL COMMITTEE AND SUBCOMMITTEE HEARINGS ON PROPOSALS TO ADDRESS THE FINANCING PROBLEMS OF THE SOCIAL SECURITY SYSTEM Hon. Dan Rostenkowski (D., Ill.), Chairman of the Committee on Ways and Means, U.S. House of Representatives, today announced a series of hearings to be held by both the full Committee and the Subcommittee on Social Security to address the financing problems of the social security system. The full Committee will begin the hearings with testimony from the National Commission on Social Security Reform on February 1 and 2, to be followed by testimony from the Administration on Feb. 3 and 4, 1983. The hearings will be held in the main committee hearing room, 1100 Longworth House Office Building, beginning at 10:00 a.m. each day. Immediately following the full Committee hearings, the Subcommittee on Social Security, chaired by Hon. J. J. Pickle (D., Texas), will hear testimony from Members of Congress and the interested public who have requested to be heard. The Subcommittee hearings will be held on Monday, Feb. 7, through Friday, Feb. 11, 1983, in the main committee hearing room, 1100 Longworth House Office Building, beginning at 10 a.m. each day. Additional hearings will be scheduled at a later time, if necessary. DETAILS FOR SUBMISSION OF REQUESTS TO BE HEARD Individuals and organizations interested in presenting oral testimony before the Subcommittee must submit their requests to be heard in writing no later than Wednesday, January 26, 1983, to John J. Salmon, Chief Counsel, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. Witnesses scheduled to appear will be notified by telephone as soon as possible after the filing deadline. It is urged that persons and organizations having a common position make every effort to designate one spokesman to represent them in order for the Subcommittee to hear as many points of view as possible. Time for oral presentations will be limited with the understanding that a more detailed statement may be included in the printed record of the hearings. This process will afford more time for members to interrogate witnesses. In order to expedite the hearings, witnesses may be grouped as panelists with strict time limitations for each panelist. In order to assure the most productive use of the limited amount of time available to question hearing witnesses, witnesses scheduled to appear before the Subcommittee are required to submit 100 copies of their prepared statements to the full Com(1) mittee office, room 1102 Longworth House Office Building, at least 24 hours in advance of their scheduled appearance. Each statement to be presented to the Subcommittee or any written statement submitted for the printed record must contain the following information: 1. The name, full address, and capacity in which the witness will appear (as well as a telephone number where he or his designated representative may be reached). 2. A list of any clients or persons, or any organizations for whom the witness appears; and 3. A topical outline or summary of comments and recommendations. WRITTEN STATEMENTS IN LIEU OF PERSONAL APPEARANCE Persons submitting a written statement in lieu of a personal appearance should submit at least six (6) copies of their statement by the close of business Friday, February 18, 1982, to John J. Salmon, Chief Counsel, Committee on Ways and Means, U.S. House of Representatives, Washington, D.C. 20515. If those filing written statements for the record of the printed hearings wish to have their statements distributed to the press and the interested public, they may submit 100 additional copies for this purpose if provided to the Committee office during the course of the public hearings. [Press release of Friday, Jan. 28, 1983] HON. DAN ROSTENKOWSKI, CHAIRMAN, COMMITTEE ON WAYS AND MEANS, ANNOUNCES CHANGES IN THE SCHEDULE OF FULL COMMITTEE AND SUBCOMMITTEE HEARINGS ON PROPOSALS TO ADDRESS THE FINANCING PROBLEM OF THE SOCIAL SECURITY SYSTEM Hon. Dan Rostenkowski (D., Ill.), Chairman of the Committee on Ways and Means, U.S. House of Representatives, today announced changes in the schedule of full committee and subcommittee hearings on proposals to address the financing problems of the social security system. The full Committee on Ways and Means will hear members of the National Commission on Social Security Reform on February 1, 1983. The Majority Leader of the House of Representatives, Hon. Jim Wright, will be the first witness on Wednesday, February 2, 1983, to be followed by Hon. Claude Pepper, Chairman of the Committee on Rules, and other members of the commission. Representatives of the Administration will be heard on Thursday, February 3, 1983. These hearings will begin at 9 a.m. each day. The Subcommittee on Social Security will hear testimony from Members of Congress and the interested public who have requested to be heard on Friday, February 4, 1983, and Monday, February 7 through Thursday, February 10, 1983, at 9 a.m. each day. No hearing will be held on Friday, February 11, 1983. All of the above-mentioned hearings will take place in room 1100 Longworth House Office Building, the main committee hearing room. For additional information, please refer to press release No. 1 issued earlier by the Committee on Ways and Means. Chairman ROSTENKOWSKI. Good morning, ladies and gentlemen, and to the Commissioners who achieved what I consider one of the most outstanding contributions to the unity of the country in recent history, you are most welcome. Today's hearing marks the first legislative step in the overall effort to put the social security system back on a firm financial footing. In preparing for this effort, we have been greatly assisted by the work of Alan Greenspan and his Social Security Commission, and by their success in fixing the dimensions of the system's deficit. They defused a number of alternatives long considered too explosive to handle. Perhaps most critically, they drew together a broad bipartisan coalition behind a shortrun financing plan. For these efforts, all of us on the committee and in the Congress commend you. The issue has now passed to the Congress where the final package will be shaped. While the Commission has given us a solid outline for the rest of the decade, it was unable to reach a consensus on how to close much of the deficit in the long run. I trust that Congress will have the steel to settle this question, which is of such importance to young workers who doubt the long-range health of the social security system. Reaching a compromise on social security demands that concessions be made on all sides, both in Congress, and among specialinterest groups who oppose certain alternatives. Compromise rests on the same spirit of bipartisan cooperation and purpose that prevailed on the Commission. Mr. Conable. Mr. CONABLE. Thank you, Mr. Chairman. First I would like to welcome my colleagues on the Commission. Mr. Chairman, I would like to thank you for these hearings and for your promise of a fast track for social security legislation. You are to be commended for anticipating the need in getting our committee moving in timely fashion. As we both know, there is not much time allowed us to make the constructive adjustments to continue retirement benefits past midyear. We will face certain key decisions very soon indeed. It is appropriate that our first witnesses are members of the National Commission on Social Security Reform because their set of proposals in broad outline are designed to save the system from the crisis which confronts it. This consensus, to which I was a party, includes a little something for everyone to dislike. But that is one of its strengths. If any one of us liked all of it, it would become immediately suspect to the others. The most important endorsements of the package come from the President and the Speaker of the House. They have provided an umbrella under which the entire Congress can stand sheltered from the rain of special interests as it perfects the consensus package. The package is far from perfect, technically. Our committee will have to do a lot of shoring up to make it work properly. We have the resources and the capability of doing that. As we proceed unfortunately there will be forces at work to drive us apart and divert us from our goal, which must be to keep the social security system solvent. Much may be said of the difficulties we will encounter in perfecting the package, but I do not envision any problems, however awesome they may appear at first, which we cannot resolve responsibly and equitably. The package leaves entirely in our hands a substantial part of the long-range deficit. Each of us probably has separate thoughts on that subject, but I have no doubt will be able to reach acceptable compromise on this point, too. As of now, Mr. Chairman, two realities stand out. One, if there is any feasible and politically salable alternative to the Commission's consensus it certainly has not appeared. Two, if the social security system truly is to be saved, it will have to be done on a bipartisan basis. If we don't do it together, it won't get done. Thank you. Chairman ROSTENKOWSKI. Mr. Pickle. Mr. PICKLE. Mr. Chairman, I thank you for recognizing me, and I want to take just a minute. I want to express my thanks to the Commission for their valuable work. The Chairman and members of the Commission have given us a broad-based package which is a good substantial beginning. Consideration of the package is proceeding, and I hope we can proceed to consider it, on a bipartisan basis. I want to caution everyone, though, that we have a long way to go, yet, and a short time to achieve it. We must make sure the short-term package is sufficient and there may be some questions about whether in the years ahead, estimated savings are enough. We have got to forge, yet, a compromise on the long term. I am pleased that the Commission agreed unanimously that we must take care of the long term as we solve this problem. I appreciate the chairman of our committee's enforcement of that general position. The young worker has a right to expect this Congress to give him or her an answer for the long term. If we fail to do this, we have endangered confidence in the future of the program. This program relies on the confidence of the worker. This is an important juncture in our Nation. Passage of a bill which gives strong and responsible solutions to both the short- and long-term problems would have a beneficial effect on the general economic climate. It would signal to the people and to the public, and to Wall Street, that the Congress can govern. Failure to do that would equally have adverse effects, and that would be devastating for social security. I like the climate that exists at this time. I think, in that climate we can proceed progressively. I thank all of you for your contributions. Chairman ROSTENKOWSKI. Welcome again, Chairman Greenspan. The committee awaits your testimony. STATEMENT OF ALAN GREENSPAN, CHAIRMAN, NATIONAL Mr. GREENSPAN. Thank you very much, Mr. Chairman. Speaking for fellow Commissioners and myself, I would like to thank you and other members of the Ways and Means Committee. The report of the National Commission on Social Security Reform, presented to the President and the Congress on January 20 would raise an estimated $168 billion for the old-age disability trust funds during calendar years 1983 through 1989. It is the judgment of the Commission that this should meet any reasonably conceivable shortfalls that could arise for the rest of this decade. There are exceptionally adverse economic scenarios, however, which during the years immediately ahead could create temporary problems for the trust funds. Such problems, in my judgment, are appropriately addressed by the Commission recommendation of a fail-safe mechanism. This would set into motion certain changes in receipts and/or outlays which would prevent the trust funds from falling below the minimum levels required to maintain monthly benefit payments. |