Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.C.R. No. 76 entitled:

begs leave to report as follows:

The purpose of this measure is to express legislative opposition to the privatization of social security and to urge Hawaii's congressional delegation to reject proposed changes to the social security system.

Your Committee finds that the federal social security system is our country's most important and successful income protection program and provides essential benefits to over 195,000 people in Hawaii, including 139,300 retired workers, 16,090 widows and widowers, 16,790 disabled workers, and 13,630 children. Additionally, social security has reduced the poverty rate for the elderly from over thirty per cent to 10.2 per cent in the last forty years and helped keep thirty four per cent of the elderly women in Hawaii out of poverty.

Recently, proposals have been made to privatize social security and divert more than one-third of the wage contributions made by workers into private accounts. This diversion of funds would not only result in a national debt of almost $2 trillion over the next ten years, but would reduce the benefits to widows from $829 to $456 per month -- which is only sixty-three per cent of the poverty level.

This measure supports the current social security system and opposes any attempt to privatize the system or jeopardize the financial security and faith of the country's working class.

Your Committee has amended the measure by making technical nonsubstantive amendments for purposes of clarity and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 76, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 76, S.D. 1.