U.S. Congressman John Boozman 3rd District of Arkansas

Retirement Security

I firmly believe that we need to keep our word to retirees and those who are preparing to retire. Social Security benefits must be there for individuals who have worked their whole lives, paid into the program and expect those hard-earned benefits to be there when they retire. You can be assured that I will oppose any reform proposal that cuts benefits, raises taxes or increases the retirement age of America's workers.

We must find a fair way to ensure that benefits will be there for future generations who are currently paying into the system. It is true that the Social Security program has very serious long-run problems, the most pertinent of which is that beginning in 2016 the program's benefit obligation will exceed its annual tax revenue. We need to consider options that allow young workers the ability to save and invest on their own so that they can take advantage of higher rates of return than the traditional program offers. However, in doing so, I promise to stand by my principles of ensuring that benefits are not cut, taxes are not raised and that the retirement age remains the same.

At the same time, we need to safeguard pension plans and provide options for workers to preserve and enhance their retirement security. Rank-and-file workers must continue to be on the same level as excutives in terms of giving them the freedom to diversify, enhancing their access to quality investment advice and by encouraging businesses start and maintain defined benefit pension plans.

Because the American people have worked hard to earn their pensions and Social Security benefits, we must continue to protect them. I will work with my colleagues to ensure that pensions will not be stolen from the American people and that all promised Social Security benefits will be there for current retirees and those in the generations to come.

In December of 2008, a bill was signed that imposes a one-year moratorium on the required minimum annual distributions from tax-deferred retirement accounts of individuals 70-1/2 years old or older. That change applies to 2009, but it does not change the required distributions for 2008.

Cost of Living Adjustment

By law, Social Security recipients receive a Cost-of-Living Adjustment (COLA). The COLA is The Social Security Act specifies a formula for determining each COLA. In general, a COLA is equal to the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of one year to the third quarter of the next. If there is no increase, there is no COLA. Because of our current economic outlook, the Social Security Administration has announced that no COLAs will be available to beneficiaries in 2010. We need a new formula that accurately reflects the true cost of living for seniors. You should know that both the House of Representatives and the Senate are working together to address this issue, especially in light of the fact that Medicare premiums and other costs are continuing to rise. I understand the urgency of this situation and remain committed to working with my colleagues to find a solution. 

Congressional Research Service Reports:

The Congressional Research Service (CRS) is part of the legislative branch of the federal government. CRS, which is a department of the Library of Congress, works exclusively as a nonpartisan analytical, research, and reference arm for Congress.

CRS Reports are in PDF format. In order to view these files, you will need the Adobe Acrobat Reader installed on your PC. You can download the free reader from Adobe's website. These files may be rather large and may take a few minutes to download. 

Social Security Reform: Legal Analysis of Social Security Benefit Entitlement Issues

Social Security and Medicare: The Economic Implications of Current Policy 

Social Security Reform: Economic Issues