House Panel Holds Social Security Hearing

WASHINGTON – Another hearing on Social Security fell into partisan sniping on Thursday as House Democrats sought reassurances that Republicans wouldn't try to bypass them by adding private investment accounts to legislation at the last moment, The Associated Press reported.

''Might you be willing to clarify for members of this committee, and to those who are watching this committee, that you will not add private accounts to a conference report and will not include it in a House-passed bill?'' Rep. Richard Neal, D-Mass., asked Rep. Bill Thomas, R-Calif., who heads the Ways and Means Committee, referring to what one of his aides said were rumors circulating on Capitol Hill.

Thomas answered that he has “no interest, on a subject of this importance, in playing ‘gotcha' in any way.'' He added that he has no interest in “producing a product ... which is a responsible one and should elicit bipartisan support at the end of this legislative process.”

The panelists testifying before the committee Thursday argued that existing tax-favored retirement accounts such as 401(k)s are not being used by the low-income workers most in need of retirement assistance. The panelists suggested Congress focus on vehicles to ensure low-income workers save for retirement as widely as people earning more money, such as automatic enrollment in the accounts, and investment in diversified investment vehicles to ensure the best possible return.

But Rep. Charles Rangel of New York, the senior Democrat on the committee, rejected those ideas saying that those issues “are very important but should be dealt with separately. The solvency of the Social Security system is a big enough problem to start to tackle,” Bloomberg News reported.

-- NYSSCPA.org News Staff

Posted on 5/19/05