AP Online

February 28, 2002 Thursday 3:49 AM Eastern Time

SECTION: WASHINGTON DATELINE

Republicans Seek Social Security Bill

by LEIGH STROPE; Associated Press Writer

DATELINE: WASHINGTON

Some Republicans fearful that Social Security might become a damaging campaign issue in this election year want to send certificates to all retirees that guarantee future benefits and annual cost-of-living 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," House Majority Leader Dick Armey said Wednesday. Such certificates would seem to have no real value. A guarantee passed by this Congress would not legally bind future sessions.

The legislation was being considered Thursday in the House Ways and Means Social Security subcommittee.

Armey, who isn't seeking re-election, has been urging Republicans to take on Social Security as an issue instead of cowering from Democrats on it.

"We can choose to be the party of benign neglect, or the party of bold change," Armey said.

Democrats are eager to raise the issue. They cling to a one-seat majority in the Senate and are a handful of seats away from controlling the House. Thirty-six governorships also are up for election in November.

Democrats think the GOP is vulnerable because of President Bush's plan to let workers invest some Social Security payroll taxes in the stock market. Also, Bush's Social Security commission recommended several proposals that would require reduced benefits to future retirees.

The Enron Corp. collapse also could help bolster Democrats' arguments against changing the nation's retirement system. The energy trading company went into the nation's largest bankruptcy in December.

Because of its rules for administration of its 401(k) retirement plans, most of which were overladen with Enron stock, most of the company's employees were left with little retirement money.

Democrats also point out that promises to protect the Social Security trust fund have been broken because of spending on the war on terror and President Bush's $1.35 trillion, 10-year tax cut.

"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."