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Background
Today's Social Security system provides protection for millions of American workers, including state and
local government employees covered by the system. Along with providing retirement benefits, many people rely on Social Security
for disability protection and survivor's insurance. But according to current figures, by 2042 the system will not have enough
money to continue paying full benefits and therefore will have to either reduce benefits or raise more funds through an increase
in the Social Security tax.
Legislative History
While there were numerous bills introduced in the 107th Congress (2001-2002) to reform the Social
Security system, no reform bill was adopted.
NCPERS Position
- NCPERS supports making the Social Security System solvent for future generations. Social Security is an important income component for many citizens, some of whom have no retirement
income other than Social Security.
- NCPERS opposes expanding coverage to non-covered state and local government employees. Public sector employers were required to create separate pension plans for their employees when they
were excluded from Social Security. Requiring Social Security coverage would undermine these plans and place unnecessary
financial burdens on state and local government employers and employees.
- NCPERS supports considering solutions within the existing Social Security structure that maintain
economic security for both current and future generations by guaranteeing an
inflation-adjusted retirement income that permits retired workers to live in dignity and reducing the economic burden on
younger family members.
- NCPERS rejects radical solutions such as using Social Security resources to finance risky and expensive
private retirement accounts that require significant reductions in guaranteed benefits or
increasing the retirement age.
- NCPERS supports using federal budget revenues to strengthen the current Social Security system.
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