One of the highest priorities of my Administration has been to continue the
tradition of effectiveness and efficiency widely associated with the social
security program, and to assure present and future beneficiaries that they
will receive their benefits as expected. The earned benefits that are paid
monthly to retired and disabled American workers and their families provide
a significant measure of economic protection to millions of people who
might otherwise face retirement or possible disability with fear. I have
enacted changes to improve the benefits of many social security
beneficiaries during my years as President.
The last four years have presented a special set of concerns over the
financial stability of the social security system. Shortly after taking
office I proposed and Congress enacted legislation to protect the stability
of the old age and survivors trust fund and prevent the imminent exhaustion
of the disability insurance trust fund, and to correct a flaw in the
benefit formula that was threatening the long run health of the entire
social security system. The actions taken by the Congress at my request
helped stabilize the system. That legislation was later complemented by the
Disability Insurance Amendments of 1980 which further bolstered the
disability insurance program, and reduced certain inequities among
beneficiaries.
My commitment to the essential retirement and disability protection
provided to 35 million people each month has been demonstrated by the fact
that without interruption those beneficiaries have continued to receive
their social security benefits, including annual cost of living increases.
Changing and unpredictable economic circumstances require that we continue
to monitor the financial stability of the social security system. To
correct anticipated short-term strains on the system, I proposed last year
that the three funds be allowed to borrow from one another, and I urge the
Congress again this year to adopt such interfund borrowing. To further
strengthen the social security system and provide a greater degree of
assurance to beneficiaries, given projected future economic uncertainties,
additional action should be taken. Among the additional financing options
available are borrowing from the general fund, financing half of the
hospital insurance fund with general revenues, and increasing the payroll
tax rate. The latter option is particularly unpalatable given the
significant increase in the tax rate already mandated in law.
This Administration continues to oppose cuts in basic social security
benefits and taxing social security benefits. The Administration continues
to support annual indexing of social security benefits.