Social Security:

Criteria for Evaluating Social Security Reform Proposals

T-HEHS-99-94: Published: Mar 25, 1999. Publicly Released: Mar 25, 1999.

Additional Materials:

Contact:

Stephen P. Backhus
(202) 512-7111
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO discussed how best to ensure the long-term viability of the Social Security Program.

GAO noted that: (1) as attention has focused on social security's future financial situation, a wide array of proposals have been put forth; (2) some proposals would reduce benefits, some would raise revenues, and most propose some combination to restore financial solvency; (3) social security has long served as the foundation of the nation's retirement income system; (4) Congress has always taken the actions necessary to ensure social security's future solvency when faced with an immediate solvency crisis; (5) the program does not face an immediate crisis, rather, it faces a long-range and more fundamental financing problem due to demographic trends; (6) social security's financial condition is directly affected by the relative size of the populations of covered workers and beneficiaries; (7) while the program was put into a 75-year actuarial balance just 15 years ago, trust fund balances now are projected to be exhausted in 2032; (8) in addition, the program will begin to experience a negative cash flow in 2013, which will accelerate over time; (9) a variety of proposals have been offered to address social security's financial problems; (10) the proposals differ with regard to specific benefit changes and how investment returns are captured; (11) three primary criteria can be used to evaluate these proposals: (a) the extent to which the proposals achieve sustainable solvency and their effect on the economy and the federal budget; (b) the balance they strike between the twin goals of individual equity and income adequacy; and (c) how readily changes could be implemented, administered, and explained to the public; and (12) GAO believes it is possible to craft a solution that will protect social security benefits for the nation's current retirees, while ensuring that the system will be there for future generations.

Oct 1, 2018

Jun 4, 2018

May 22, 2018

May 21, 2018

May 17, 2018

Mar 7, 2018

Mar 5, 2018

Feb 21, 2018

Jan 8, 2018

Looking for more? Browse all our products here