'That's a lie' accusation obscures bipartisan Social Security reform
talks -sources
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[March 17, 2023]
By Richard Cowan
WASHINGTON (Reuters) - A Republican U.S. senator's accusation on
Thursday that Treasury Secretary Janet Yellen had lied during a tussle
over the future of the Social Security program obscured
behind-the-scenes talks between the White House and lawmakers that have
been underway for months, according to sources.
The war of words came in a Senate Finance Committee hearing when
Republican Senator Bill Cassidy asked Yellen if Democratic President Joe
Biden was aware that Social Security funds will run out within the next
decade unless Congress shores up the popular retirement program with 66
million beneficiaries.
When Yellen responded that Biden "stands ready to work" with lawmakers,
Cassidy shot back, "That's a lie because when a bipartisan group of
senators has repeatedly requested to meet with him about Social
(Security) ... we have not heard anything on our requests."
For several months now, Cassidy and independent Senator Angus King, who
caucuses with Democrats, have tried to address Social Security
underfunding as approximately 10,000 baby boomers retire every day.
![](http://archives.lincolndailynews.com/2015/May/02/images/ads/current/guzzardo_lda022609.png)
Within a decade, tax revenues and a backup dedicated trust fund will be
insufficient to meet the payouts for what is often regarded as the most
successful program the federal government has administered since Social
Security's inception in 1935.
Central to the Cassidy-King bipartisan effort is the possible creation
of a second trust fund that for the first time would allow money to be
invested in the stock market, instead of traditional Treasury securities
that achieve lower returns.
It would be modeled after a railroad pension fund that invests in
stocks.
The last week of bank failures and worries of a wider-ranging crisis,
however, could give lawmakers second thoughts about investing Social
Security funds in stocks.
Cassidy and King are leading a group of workhorse senators that include
Republican Mike Rounds, Democrat Tim Kaine and independent Kyrsten
Sinema.
While no meetings between the senators and Biden have been scheduled, a
source familiar with the discussions said that White House aides are
engaged in talks with the Senate. But a formalized plan has not yet been
crafted to present to Biden, the source added.
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![](../images/031723PIX/news_o85.jpg)
U.S. Treasury Secretary Janet Yellen
takes questions on the Biden administration's plans following the
collapse of three U.S. lenders including Silicon Valley Bank and
Signature Bank, as she testifies before a Senate Finance Committee
hearing on U.S. President Joe Biden's proposed budget request for
fiscal year 2024, on Capitol Hill in Washington, U.S., March 16,
2023. REUTERS/Mary F. Calvert
![](http://archives.lincolndailynews.com/2023/Mar/17/images/ads/current/2022%20Business%20Directory%20Cover%20lda%202022.png)
White House officials did not respond to a request for comment.
"It's going to be tough. I don't think we should sugarcoat it. But
there are serious conversations in the Senate ... on a package that
would improve Social Security's finances," said Shai Akabas,
economic policy director at the Bipartisan Policy Center, a centrist
think tank in Washington.
The senators' effort is not the only Social Security rescue plan
being devised.
Democrats in Congress might rally around a bill that Representative
John Larson will unveil by early April, which would increase
benefits across-the-board along with other changes, with an emphasis
on helping those receiving the least.
"There are close to 5 million Americans who get below-poverty level
checks from Social Security, "Larson said. His bill would create a
new floor for benefits at 125% of the poverty level, "making sure no
one can ever retire into poverty."
To succeed, any proposal would need the support of Democrats, who
control the Senate, and Republicans, who have the majority in the
House of Representatives.
Several House Republicans have been pushing for an outside
commission to recommend reforms under a fast-track approval process,
much like one that was part of a successful effort in 1983.
"If someone's got a better idea that they can pass, that's great. I
tend to be conservative and say this worked once, let's try that
again," Republican Representative Tom Cole told Reuters.
![](http://archives.lincolndailynews.com/2023/Mar/17/images/ads/current/merealty_sda_BASKETBALL_2022.png)
"That's really just a way to have (benefit) cuts without leaving
your fingerprints on it," said Nancy Altman, president of Social
Security Works and head of a coalition of labor unions and other
liberal-leaning groups.
(Reporting by Richard Cowan; Editing by Scott Malone and Josie Kao)
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