Schumer, Dems Unveil Updated Soc. Sec. Calculator; President's Plan Will Slash Middle Class Benefits

SCHUMER, DEMS UNVEIL UPDATED SOC. SEC. CALCULATOR; PRESIDENT'S PLAN WILL SLASH MIDDLE CLASS BENEFITS

Chairman of Bush Economic Council Says Survivor's Benefits Will Be Cut Under Privatization Plan

United Airlines Pension Debacle Proves Again That Middle Income Americans Can't Afford President's Risky Social Security Privatization Plan

Schumer: At End of President's 60 Day, 60 City Campaign to Sell Privatization Plan, American Public More Opposed to Bush Plan Than at Beginning

U.S. Senator Charles E. Schumer and Senator Finance Committee Ranking Member Max Baucus today unveiled a new Social Security calculator that demonstrates to Americans what they could lose under the Bush Privatization Plan. The new calculator reflects the April 28th endorsement by the President of the "sliding scale benefit reductions" that would cut benefits for middle and upper income workers. The Social Security Calculator also takes into account the "privatization tax" that would require workers to repay what they put into their private accounts.

Schumer stated, "Democrats have been warning that middle income Americans have a lot lose from the Bush Privatization plan. The more we find out, the worse the deal gets for the average American." He continued, "The truth is that the President's plan cuts benefits for every American who earns $20,000 and up."

Senator Baucus said that the benefit cut plan, known as "progressive indexing," and first proposed by economist Richard Pozen, is a bad deal for average Americans. "We knew that the Pozen plan also known as progressive indexing alone would drastically reduce Social Security benefits for middle class workers," Baucus said. "But adding private accounts to the Pozen plan creates a lethal combination that leaves future generations burdened with trillions of dollars of debt as well a Social Security program left with major financial challenges.

Schumer said that two recent developments underscore how important Social Security is to middle class Americans, and how risky the President's plan would be to most Americans retirement security.

"Just today, Chairman of the President's National Economic Council, Allan Hubbard, said that survivor's benefits would fall under the knife of the President's privatization plan. Anytime a family loses a loved one it's an awful tragedy. For those survivors to then lose Social Security survivor benefits would be terrible combination in any American home."

Schumer also cited the United Airlines pension default as yet another reason not to privatize Social Security. "The recent court decision, which allows Untied Airlines to terminate their pension plan for 100,000 United Airline workers is another warning. This proves once again that we can't mess around with the Social Security benefits that millions of middle class Americans rely on for their retirement," Schumer said.

The Social Security calculator, which can be accessed through a button on Schumer's website, www.schumer.senate.gov, allows Americans to simply plug in their average annual salary and year of birth and see a side-by-side comparison of the benefits between the Bush Privatization Plan and the current Social Security system. The calculator shows the expected annual benefits under both systems, the difference between the two plans as well as the percent reduction that Americans will face under the Bush Privatization Plan. The calculator will be available on the websites of many Democratic Senators.

Social Security Calculator: www.schumer.senate.gov/calc

http://schumer.senate.gov/SchumerWebsite/pressroom/press_releases/2005/PR41671.Soc%20Sec%20Calc%20II.051205.html