(Washington, D.C.) – At a Capitol Hill news conference today, the Council for Citizens Against Government Waste (CCAGW) pledged its support for a Social Security reform measure introduced by Rep. Mark Sanford (R-S.C.).  The proposal would create Personal Retirement Accounts (PRAs) and virtually end the federal government’s role as arbiter of America’s pensions.

“The time has come for Congress to reform the Social Security system,” said CCAGW President Thomas A. Schatz.  “The current pay-as-you-go system is going broke and will pay out more than it takes in beginning in the year 2012. 

“The Social Security Administration’s own figures show that maintaining the current system would require today’s newborns to pay a 24-percent payroll tax when they enter the workforce.  This is simply unacceptable.  The U.S. must follow the lead of other countries and allow workers to put some of their Social Security taxes into private accounts.”

 Under Sanford’s plan, individuals would maintain their own PRAs through a six percent deduction from each paycheck which is matched by their employers.  Two-thirds of the money would go into the individual’s PRA and the remaining one-third would go toward fulfilling the commitments made to those retirees who remain in the current Social Security system. 

“One of the best features of this plan is that individuals own their accounts,” Schatz said.  “They may contribute any additional amount above the required minimum and, by any measure, the return on investment far outpaces the current system at all income levels.  In addition, when a retiree dies, unused benefits become part of the person’s estate and can be willed to survivors.  Try doing that under the current system.

“It’s time for Congress and the nation to pull the plug on the third rail of American politics, and allow serious debate on reforming Social Security,” Schatz added.  “It should not be stifled by the demagogues who support the status quo and use Social Security scare tactics to get re-elected.”

CCAGW is a 600,000 member lobbying organization dedicated to seeking enactment of legislation to eliminate waste, inefficiency, mismanagement and abuse in the federal government.