Nominee for Social Security Board Faces Tough Questions on Program Reforms: Andrew Biggs, a nominee for the Social Security Advisory Board, faced extensive questioning during a recent Senate Finance Committee hearing about his positions on program reforms.
Senate Minority Leader Mitch McConnell (R-KY) nominated Biggs for the board. Currently a senior fellow at the American Enterprise Institute, he previously held various government positions concerning retirement policy and Social Security. These include serving as principal deputy commissioner of the Social Security Administration (SSA) and as a member of the President’s Commission to Strengthen Social Security in 2001, both of which were under the George W. Bush administration.
Senator Sherrod Brown (D-Ohio) expressed apprehension regarding the candidate’s track record on Social Security during the January 31 nomination hearing. “Your involvement in President Bush’s endeavor to redirect payroll tax contributions from the trust funds to a personal savings account raises concerns; in essence, you advocated for the privatization of Social Security.”
Biggs, on the other hand, disagrees with the idea of privatizing Social Security and has not presented any plans to raise the retirement age. However, he did concede that he had stated in a previous hearing that such an idea was not implausible.
“Congress ought to maintain a comprehensive range of alternatives under consideration to achieve a bipartisan consensus.” I have not advocated for an increase in the retirement age for Social Security. “I don’t believe I’ve written anything supporting private accounts since my experience with the Bush administration in 2005,” Biggs stated. He stated that he is in favor of increasing minimum benefits for specific retirees to eliminate the geriatric poverty rate, which is currently around 7 percent.
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Age of retirement concern
In 2024, the issue of whether to increase the retirement age for Social Security to address a projected shortfall in program funding for 2034 is likely to be a contentious one. Nikki Haley, a former South Carolina governor and United Nations Ambassador, argues for raising the age to align with the extended life expectancy of individuals in their twenties. She expressed this view during the recent Republican primary debate.
“We must immediately consider what we can do to escape this situation.” We want to make sure that everyone who was promised receives the item. “However, we also want to ensure that our children have something upon their arrival,” she continued.
During the hearing, Sen. Bill Cassidy (R-LA) also mentioned the impending insolvency of the SSA trust fund and questioned Biggs as to which option, reducing benefits or taxes, would be more effective in resolving the issue. “The crux of the matter is that we desire knowledgeable individuals who can effectively contribute,” Cassidy explained.
Reduce benefits “to the extreme.”
Biggs noted that the board avoids policy discussions. He said he supports a gradual transition “to a benefit structure that is more focused on safeguarding and preserving [benefits]—especially for retirees with the lowest incomes and reducing the rate of growth—which does reduce benefits, especially at the upper end and to a lesser extent than under current law.
Cassidy claimed that implementing Biggs’ idea would cause confusion for the ICU nurse who has been working at the tax maximum, as Social Security does not distinguish between individuals like them and billionaires.
In a recent statement, Chair Ron Wyden (D-OR) referenced Biggs’ Wall Street Journal op-ed titled “No, Social Security Isn’t ‘Earned,'” where the author argues that the majority of individuals receive Social Security and Medicare benefits that exceed the amount they pay in taxes.
The senator stated, about Social Security, that the article demonstrates a fundamental misunderstanding of the program.
According to Wyden, Social Security is considered an earned benefit since it is only received after a minimum of ten years of work and contributions. He then asked Biggs whether the headline accurately reflected his position.
People should peruse the op-ed rather than relying on the headline, according to Biggs. “That I am merely stating that Social Security is not an earned benefit is an entirely false characterization,” he continued.
According to Biggs, the Congressional Budget Office reports that Social Security benefits are 37% higher than lifetime taxes + interest.
“Whether they have paid in full for their benefits or not, Biggs makes it abundantly clear in the article that benefits should not be withheld from low-income individuals.” He also asked whether wealthy Americans have a “moral claim” to advantages that far exceed their contributions.
20% less than
The seven-member Social Security Board advises Congress and President Joe Biden on SSA policy and programs. Wyden said this involves safeguarding the program’s finances, improving beneficiary services, and helping seniors retire with dignity.
The independent, nonpartisan Center on Budget and Policy Priorities claims the Social Security Administration’s (SSA) trust fund reserves, largely from payroll taxes, assist in paying full benefits. Without Congress increasing funds, these reserves will run out and cut recipient payouts by 20% in 2034.
In a November Social Security Benefits podcast, SSA Chief Actuary Steve Gross reassured beneficiaries that there is no need to worry about the trust fund running out of money. The SSA could only pay 80% of applicants’ payments in the worst situation.
Sharon Lewis, former principal deputy administrator of the Health and Human Services Department’s Administration for Community Living, and Kathryn Lang, director of Federal Income Security for Justice in Aging, spoke before the committee. Candidate Treasury Assistant Secretary for Legislative Affairs, Corey Tellez, testified.
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