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NTEU Calls For "Social Security Plus" Not Reduction of Social Security

Press Release December 8, 1998

Washington, D.C: -- Participating in the White House Conference on Social Security,

Robert Tobias, president of the National Treasury Employees Union (NTEU), expressed concern with some of the changes that have been proposed for the Social Security system.

Referring specifically to proposals that would siphon off a portion of current FICA taxes and instead invest those funds in the stock market, Tobias suggested that "the focus should be on Social Security Plus??not reducing Social Security benefits for future generations."

Tobias stated that the Federal Employees Retirement System (FERS) offered a good model for conference participants to review. Federal workers in FERS receive full Social

Security, a small pension to which they also contribute and a Thrift Savings Plan benefit, should they determine that contributing to this private market?based system is in their best interest.

Tobias said that the FERS model is a good one for those who feel strongly that at least a portion of their retirement income should be invested in the stock market. "Rather than shifting a portion of the Social Security benefit into an extremely risky arena," Tobias continued, "it makes more sense to protect the base Social Security benefit and permit those who want to invest in the stock market with an ability to do so above and beyond their Social Security contributions."

"Sending Social Security as we currently know it on a stock market roller?coaster ride provides no guarantee of income security in retirement for Americans, including federal workers," continued Tobias. Proposals that emphasize privately?invested accounts in the stock market inject an unacceptable level of risk into the future of Social Security for all Americans, he said.

The NTEU leader added that while the union has concerns about the potential direction of changes in the Social Security system, NTEU is pleased to be part of the debate on the future of the program and looks forward to a continuing dialogue with the both the White House and Congress on the matter.

Contact: NTEU-PR@NTEU.org, 202-572-5500