The $6.6 Trillion Retirement Problem: Unions Push Boost to Social Security Benefits [View all]

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http://inthesetimes.com/working/entry/12902/unions_solve_retirement_crisis_boost_social_security_benefits/


Senate Majority Leader Harry Reid speaks in support of Social Security with Sen. Tom Harkin and Sen. Bernie Sanders on Capitol Hill March 28, 2011. (Photo by Chip Somodevilla/Getty Images)

ORLANDO—Contrary to its enemies posing as friends, Social Security is not in crisis. But there is a real retirement crisis, the AFL-CIO executive council warned here on Wednesday, and increased—not reduced—Social Security benefits offer the best solution to that serious challenge.

Republicans may raise a cry for benefit cuts or privatization to "save" the program by destroying it. And some Democratic politicians may grant their false crisis claim but argue for smaller cuts. But ultimately Social Security faces only a potential shortfall after 2036 in its ability to pay full benefits—a distant problem Congress can easily fix by eliminating the cap on wages subject to FICA taxes.

But even without shrinking or privatizing Social Security, the retirement security of most working Americans is in danger. Wages have stagnated for most workers, reducing the opportunity to save. Traditional defined-benefit pensions are dwindling and under attack in the public and private sectors.

The executive council, spurred by the united New York AFSCME, strongly criticized Democratic Gov. Andrew Cuomo for deep cuts in benefits and for effectively dismantling the state employee defined-benefit plan. In addition, half of workers have no employer plan, not even risky 401(k) plans. Housing wealth shrank after the illusory bubble burst, and many workers' investments have fallen victim to growing financial volatility. Even existing Social Security benefits replace much less of pre-retirement income than pubic pensions in other advanced industrial nations.