February 27, 2002, Wednesday, BC cycle

SECTION: Business News; Washington Dateline

Armey urges GOP to change Social Security debate from fear to reform

By LEIGH STROPE, Associated Press Writer

DATELINE: WASHINGTON

House Majority Leader Dick Armey urged Republicans fearful of running on Social Security this election year to step up and change the debate "from the politics of fear to the policy of reform."

"We can choose to be the party of benign neglect, or the party of bold change," Armey said Wednesday. Democrats are eager to raise the issue. They think Republicans are vulnerable because of President Bush's plan to let workers invest some payroll taxes in the stock market. Bush's Social Security commission recommended several proposals that would require benefit cuts to future retirees.

The Enron collapse also could help bolster Democrats' arguments against changing the nation's retirement system. Also, promises to protect the Social Security trust fund have been broken.

"I am gratified at news that Majority Leader Armey wants an honest debate about Social Security," said House Minority Leader Dick Gephardt, D-Mo. "We should have this robust dialogue as soon as possible in the House and Senate."

Republicans, in an effort to shield themselves from attack, are pushing legislation that would require the mailing to every retiree of a certificate that guarantees their Social Security benefits and annual cost-ofliving increases.

"A Social Security guarantee bill would put members of Congress on record against benefit cuts. And more importantly, it transforms a mere promise into a legal obligation," Armey said.

The certificates may have no real value. A guarantee passed by this Congress is not legally binding on future sessions of Congress.

The bill will be considered Thursday in the House Ways and Means Social Security subcommittee.

On the Net: Social Security Administration: http://www.ssa.gov/

House Ways and Means Social Security subcommittee: http://waysandmeans.house.gov/socsec.htm