Chat with Chic, May 19, 1987

Chat with Chic A Report from Washington CONTACT: Mike Miller (202) 224-6244 BY U.S. SENATOR CHIC HECHT Social Security is an issue critical to all Americans. Old age and disability insurance are of utmost concern to senior citizens of course, but since none of us is getting any younger, it's important to keep the Social Security Trust Fund healthy and solvent. It was only five short years ago that our Old Age Survivors Insurance Program, the Social Security Trust Fund, was facing imminent disaster. In 1982, the Trust Fund had a net reserve of $6.7 billion, not enough to pay a full month's benefits without a loan from the Medicare system. When I first came to the Senate this was one of the most difficult challenges facing lawmakers. How do we save the system? Since Congress moved quickly in 1984 to come to the rescue, the Social Security Trust Fund today is healthy and in good shape for tomorrow's seniors. Last year, the Trust Fund net reserve rose to $47 billion. The system took in $217 billion, while paying out $201 billion in benefits. Too bad we can't do as well with the federal budget! The ratio pattern between the reserve cushion in the system and the annual pay-out is expected to sharply increase for the remainder of the 20th century. FOR IMMEDIATE RELEASE: May 19, 1987 According to the 1987 Annual Report of the Board of Trustees of the Federal Old Age Insurance and Disability Insurance Trust Fund, there are a number of reasons why we have a healthy system. Even though the number of beneficiaries has increased over the last decade, since 1975, each beneficiary has been supported by more than three workers. In the year 2020, the Trust Fund is expected to have a reserve of $1 trillion. Another positive factor is the economy. Since Congress overhauled the system, the American economy has expanded, creating millions of new jobs. These jobs will help ensure the continued good health of the program. The Reagan Administration has been highly successful in controlling inflation, and, as a result, benefit increases have been lower, and this has greatly contributed to the system. I only hope that Congress does not return to past tax-and-spend continue to fight tax increases, America's economy will be encouraged to continue expanding. Otherwise, there could be trouble ahead for everyone, young and old!