CAPE GIRARDEAU FORUM EXAMINES SOCIAL SECURITY'S FINANCIAL FUTURE

Gil Degenhardt of Cape Girardeau says the financial problems plaguing Social Security will be solved, just not any time soon.

"The American people demand Social Security," said Degenhardt, a senior citizen. "We will get it some way and some how."

Degenhardt said Social Security hasn't reached a financial crisis yet. Until it does, American political leaders and the nation as a whole won't tackle it, he told a panel of experts at a Social Security forum Tuesday.

Degenhardt was one of about 20 people who attended the forum at Southeast Missouri State University's Dempster Hall to listen to U.S. Rep. Jo Ann Emerson and five panelists discuss the future of Social Security.

Emerson, a Republican of Cape Girardeau, said lawmakers in both parties fear that whatever effort is made to fix Social Security will become a political liability at election time.

"We have far too much partisanship," said Corey Davison, assistant national field director for the Concord Coalition, a non-profit group that is pushing for Social Security reform.

Davison and other panelists agreed that Social Security, the nation's tax-funded retirement system, needs an overhaul to remain solvent.

The federal government has borrowed and continues to borrow from the Social Security Trust Fund. Emerson said the government continues to mask the federal deficit by borrowing from the trust fund.

A projected $111 billion surplus is based entirely on a projected Social Security fund surplus of $127 billion. The rest of the federal government will spend more than it takes in.

"We really are going to run a $16 billion deficit this year," Emerson said.

Congress last week passed the "lock box" bill, which is designed to keep Congress and the president from dipping into Social Security money to fund other government programs.

Still, Social Security is facing financial hardship, and that is a major concern for many Americans. Currently, one out of every six Americans or 44 million people receive Social Security retirement, disability or survivor benefits.

In Emerson's 8th Congressional District, 134,000 people receive Social Security payments that total $81 million a month.

The aging of America puts an increasing burden on the Social Security system, said Bud Knowkler, regional director of the Social Security Administration.

The number of Americans who are 65 or older will double from 35 million to 70 million in the next 30 years, he said.

Within 15 years, Social Security benefits will start exceeding revenue.

By 2022, the trust fund will start running an actual deficit as tax revenues and interest will no longer cover benefits, Knowkler said.

Davison said various solutions have been proposed, including increasing the age by which Americans are eligible for full retirement benefits and reducing the cost-of-living increase for beneficiaries.

The National Association of Manufacturers favors letting Americans have personal retirement accounts.

A small percentage, perhaps 2 percent, of the money Americans pay in Social Security taxes would go into individual, personal retirement accounts.

Fred Nichols, political director of the National Association of Manufacturers, suggested the personal retirement account money could be invested in stocks and bonds and help create worker wealth. The move ultimately could lower the amount of money needed for retirement under the regular Social Security program, Nichols said.

Money would have to be set aside to provide a safety net for those Americans who were near or at retirement so they wouldn't lose any benefits from such a change in the program, Nichols said.

Janice Bramwell, regional director for Green Thumb, said Social Security alone doesn't make ends meet for many of America's elderly. Green Thumb is an organization that helps secure employment for senior citizens.

Bramwell said many older Americans remain on the job so they can continue receiving group health insurance benefits.

Talk of raising the retirement age concerns the American Association of Retired Persons.

The organization said the government shouldn't go beyond the current increase from age 65 to age 67, which is to be phased in beginning in 2003.

Marie Nowak, state coordinator of AARP's VOTE group, said personal retirement accounts should be considered only as an addition to Social Security, not as a replacement. She said she and other elderly Americans will receive their Social Security benefits. Future generations will suffer if the financial problem isn't addressed, said Nowak.

"A lot of people think we are greedy geezers, and that's not true," she said.

What's ahead?

In 2014, Social Security tax revenues alone will no longer cover benefits.

In 2022, the trust fund will begin running a deficit as tax revenues and interest will no longer cover benefits.

In 2034, the Social Security program would be able to pay about 74 percent of the money owed beneficiaries.

Average monthly benefits in 1998

-- $765 for a retired worker

-- $1,288 for a retired couple

-- $722 for a disabled worker

-- $1,522 for a young widow with two eligible children

-- $731 for an elderly widow, with no children

Source: Social Security Administration