Wilson, N.C. – Congressman G. K. Butterfield warned voters that his opponent is pledging to privatize Social Security if elected.
"Unfortunately, this would bring an end to Social Security as we know it," Butterfield said. "When the stock market crashed in 2008, it showed just how dangerous it would be to tie Social Security to the ups and downs of Wall Street."
According to his opponent’s web site, Butterfield’s opponent is advocating for "transforming" Social Security by allowing workers to invest in market options.
Butterfield said he strongly disagrees with such a risky privatization scheme.
"Social Security has provided the foundation for Americans’ retirement security for generations and must be preserved for generations to come. It must remain a secure guaranteed base of retirement free from risks and losses from the stock market."
According to his web site, Butterfield’s opponent also erroneously claims that Social Security "will go completely bankrupt in 2037."
According to page 9 of the official actuary report published by the Social Security Board of Trustees, if Congress failed to enact any changes to meet long-term shortfalls, beneficiaries would still collect 78% of their benefits when the trust fund was exhausted in 2037. If Congress failed to act, beneficiaries would still be collecting 75% of the promised benefit in 2084, according to the report.
The report is available online at: http://www.ssa.gov/OACT/TR/2010/tr2010.pdf
"No one disputes that Social Security faces some long-term challenges," Butterfield said. "But I am fully confident that Congress will resolve any funding shortfalls just as it has in the past. Social Security has provided senior citizens with a guaranteed source of retirement income for more than 80 years, and I strongly support strengthening Social Security for the next 80 years."
In 1977 and 1983, Congress enacted a variety of measures to address long-term solvency of Social Security.