President Bush is pressing the Congress to approve a plan that would destroy the Social Security program. The Administration is trying to scare the American people into believing that Social Security is in crisis and that the only way to "save" it is by permitting workers to pay into private investment accounts instead of into the Social Security program. The truth is that the Social Security program is not in crisis and can continue to pay 100 percent of guaranteed benefits until 2052 (according to the Congressional Budget Office - CBO) with no changes at all. CBO projects that there would be a manageable shortfall of about 20 percent after 2052. This projected shortfall could be solved with minor adjustments to the current program so it could pay 100 percent of currently mandated benefits for the next 75 years. 

Bush's privatization plan would make Wall Street traders much richer but would slash benefits levels for future retirees, their survivors and the disabled who also receive Social Security benefits. In a secret White House memo that was leaked and published in the Wall Street Journal newspaper on January 6, 2005, the White House admitted the one truth about Bush's plan: it would require benefit cuts of up to one-third of what beneficiaries would be guaranteed if the program is left unchanged.

Although President Bush has not made any details of his plan to privatize Social Security public, even some congressional Republicans are already expressing concern that Bush's plan would require deep cuts in Social Security's guaranteed benefits. Meanwhile, congressional Democrats have sharply criticized Bush's plan as too risky and damaging to future retirees who would lose up to one-third of their promised benefits. And, a CBO study confirmed what these critics in both parties have been saying about the Bush plan: total retirement benefits - including payments from the private accounts plus the accompanying benefit from Social Security would be less than under the present system. AFSCME is in agreement that the Social Security program needs to be adjusted and strengthened in order to continue to provide the promised level of guaranteed benefits for the next 75 years. However, the Social Security program is not in crisis and privatizing it would lower future benefit levels sending more older Americans and their survivors and the disabled who also receive benefits from Social Security into poverty. Furthermore, Social Security can be strengthened and improved with relatively small changes.