WHEREAS, the existing Social Security system has efficiently and reliably provided pre-defined, risk-free retirement benefits for millions of Americans for over six decades and currently provides important benefits to nearly 200,000 people in Hawaii, including nearly 140,000 retired workers, over 16,000 widows and widowers, approximately 17,000 disabled persons, and over 13,000 children; and

WHEREAS, Social Security has significantly reduced poverty among the elderly in Hawaii, and in low-income households of retirement age in Hawaii, Social Security may represent more than three-fourths of total monthly retirement income; and

WHEREAS, contrary to assertions by the Bush Administration, its public communications officers, and various conservative media commentators, the Social Security system as it now operates can pay 100 percent of promised benefits until at least the year 2042, and after that year, without any changes, can continue to pay more than 70 percent of such benefits for many years thereafter; and

WHEREAS, to avert an alleged "crisis" in Social Security funding, the Bush Administration has begun to promote and seek support for the diversion of a substantial portion of heretofore mandatory contributions to Social Security into "private accounts" that would, nonetheless, remain highly regulated by the federal government and remain highly restricted in their scope of investment vehicles, and such accounts would be exposed to market fluctuations and risks; and

WHEREAS, a program for diversion of contributions into "private accounts" will obviously weaken rather than strengthen the ability of Social Security to pay guaranteed benefits as currently promised, in addition to costing the federal government, by its own estimates, at least $754 billion in transition costs in the first six years and possibly as much as $2 trillion dollars over a period of ten years from implementation; and

WHEREAS, individual citizens should continue to be encouraged to save and invest in private retirement investment vehicles such as pension funds, IRA accounts, 401(k) accounts, and other accounts outside of Social Security to achieve sufficient funding for their retirement years; and

WHEREAS, ensuring full payment by Social Security of promised benefits beyond 2042 is an important goal that can be achieved by means other than diversion of mandatory contributions into "private accounts" and without increasing the burden on the federal budget; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2005, that this body urges the Hawaii's Congressional delegation to oppose any plan or program proposed by the Bush Administration that includes privatization of any portion of mandatory contributions to Social Security; and

BE IT FURTHER RESOLVED that Hawaii's Congressional delegation is urged to explore other more equitable and realistic options to ensure full payment of Social Security benefits that reflect demographic changes in American society that have begun and will continue to occur; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to each member of Hawaii's Congressional delegation and to the President of the United States.

Report Title:

Urging Hawaii's congressional delegation to oppose any scheme for privatization of Social Security retirement accounts