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Thursday, September 01, 2005
Congressional Action on Pensions More Likely Than SS
Congress is more likely to act on pension reform than social security reform this year, according to today's BNA:
"Congress ultimately may fail to find accord on Social Security reforms and instead pass more targeted pension reform legislation when it returns from its summer recess, sources who follow the issue told BNA Aug. 31."
Michael Tanner, director of the Cato Institute's Project on Social Security Choice, told BNA Aug. 31 that Congress is likely to pass a pension bill, even if it fails to muster support for Social Security changes. "You could get a decent pension bill regardless of what happens with Social Security," Tanner said.
Jason Furman, a senior fellow with the Center on Budget and Policy Priorities, rarely agrees with Tanner, a proponent of Social Security payroll tax-financed individual investment accounts. But Furman also said he expected Congress to act on pensions. "Something on the defined benefit [pension plan] side has to happen," Furman told BNA Aug. 31.
Furman said he anticipated that Congress would feel compelled to pass provisions aimed at strengthening the funding of defined benefit pension plans and measures aimed at bolstering the federal pension insurer, the Pension Benefit Guaranty Corporation.
"On Social Security, it is extremely unlikely that anything will be enacted by Congress. What the Republicans are trying to do is retreat from this issue," Furman said.
Posted by Becky Lewis
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