Central Louisiana News

U.S. Senator Bill Cassidy, M.D. (R-LA) has raised concerns about the financial state of Social Security in an op-ed published in The Washington Examiner. According to a new report from the Social Security Trustees, it would cost approximately $615 trillion to pay benefits and interest on the debt over time if Social Security becomes insolvent.

"[B]uried in the data was the alarming statistic that the total cost of Social Security insolvency has ballooned to $615 trillion in nominal dollars — yes, trillion. That’s a nearly $100 trillion increase in debt from three years ago," wrote Dr. Cassidy. "We cannot afford to wait and see how much higher that number will go."

Dr. Cassidy emphasized that addressing Social Security's issues is fundamentally a mathematical challenge requiring political resolve. "Fixing Social Security is a math problem that will take political will to tackle. We know the longer we wait, the less favorable the math becomes and the more painful it will be to fix," he concluded.

The latest update from May indicates that the Social Security Trust Fund will be insolvent within nine years. Current law mandates an automatic 21% benefit cut for all retirees when this occurs unless Congress opts for deficit spending as a temporary measure.

To prevent such drastic measures, Dr. Cassidy advocates for creating a sustainable strategy for Social Security without massive benefit cuts or tax hikes. He leads a Senate working group proposing a plan dubbed “Big Idea,” which involves establishing a new fund separate from the existing Social Security Trust Fund.

This proposed fund would invest $1.5 trillion in financial markets and hold both principal and dividends in escrow for nearly 75 years, covering about two-thirds of Social Security’s shortfall based on historical market returns. The remaining gap could be addressed without increasing taxes on seniors or reducing their benefits.

Additionally, Dr. Cassidy's proposal includes repealing certain provisions like the Windfall Elimination Provision and Government Pension Offset, creating work incentives, and ensuring ongoing funding for the Social Security Trust Fund.

Dr. Cassidy has actively engaged with various stakeholders about his plan through public forums with AARP, discussions with policymakers at events hosted by organizations like the Bipartisan Policy Committee, and through multiple op-eds across prominent publications.

In March, during an exchange with U.S. Treasury Secretary Janet Yellen regarding President Biden’s approach to Social Security reform, Secretary Yellen admitted that "the president doesn’t have a plan" to save Social Security.

Senator Cassidy remains committed to finding solutions aimed at preserving and protecting America's retirement system against future insolvency challenges.