Tim speaks during a meeting on Social Security

Forty-nine million Americans count on Social Security programs, and it is the primary source of income for two-thirds of our senior citizens.   Nearly one out of every five South Dakotans depends on Social Security to make ends meet.   Clearly we must protect the future of this program.  The changing demographics of our nation will stretch the Social Security system beyond its existing financing capacity.  The non-partisan Congressional Budget Office projects that Social Security outlays will first exceed revenues in 2019 and that the Social Security Trust Funds will be exhausted in 2049.  At that point, according to the Congressional Budget Office, revenues from the payroll tax will provide for only approximately 80 percent of benefits to be paid but a change in the law would be necessary to prevent a decline in the benefit formula.  

I welcome an opportunity to review any proposals concerning Social Security that will address the program's long-term financial viability. Ultimately, plans must not destroy the fundamental purpose of the program, which is to provide a guaranteed basic benefit level of income for retired workers in their later years.  Every American should know to the dime what his or her Social Security benefit will be. I believe it is possible to enact meaningful adjustments to the Social Security program that will ensure the long-term solvency of Social Security, and that the sooner we enact such changes, the less harsh those changes will need to be.  I look forward to working with all of my colleagues in Congress, as well as the President, to find a smart solution to ensure a level of basic security and dignity for elderly Americans who have invested a lifetime of work into the program, as well as future generations. 

I also will continue to protect the value of the Cost of Living Adjustments (COLAs) that Social Security beneficiaries receive each year. I have long supported legislation that would ensure that rising Medicare costs do not consume more than 25% of a senior's COLA each year. This legislation will provide some relief to seniors from rising Medicare premiums, helping ensure that their Social Security COLAs remain available for other necessities, such as the rising costs of energy and health care.

Congressional Budget Office | Social Security Administration | Center for Economic and Policy Research | Economic Policy Institute | Brookings Institution | National Committee to Preserve Social Security and Medicare