WASHINGTON, DC - First District Congressman Paul Ryan and several colleagues on the House Ways and Means' Subcommittee on Social Security today announced a new proposal to give workers under 55 the choice of having their portion of the Social Security surplus put in a personal account that they would own that would help pay their Social Security benefit when they retire. This would be the first step toward stopping Washington's decades-long raid on the Social Security surplus and building consensus for needed Social Security reform. The accounts would be both voluntary and inheritable. 

"I think we should all be able to agree that Social Security's surplus should go to Social Security. Ever since I came to Congress, I have been fighting to stop the raid on the Social Security surplus. This puts us on a path to do just that. By giving workers the choice to put their Social Security surplus dollars in a personal account for their retirement, we are making a significant step. While this isn't a comprehensive reform package, like my earlier legislation, it makes progress on fixing Social Security by protecting the surplus." 

The legislation - the GROW Accounts Act (Growing Real Ownership for Workers) - works to achieve three goals: 1) the Social Security surplus should only be used for Social Security, 2) the surplus should not be used to fund other government programs; and 3) the surplus should not be used to mask the true size of the national debt. 

According to the Social Security Trustees, Social Security will run a surplus until 2017. Currently Social Security taxes pay for retiree benefits, as well as benefits for widows, orphans and the disabled. Any funds left over, known as the Social Security surplus, are used for other government spending. 

This measure would change that by directing surplus funds into newly created GROW Accounts. People under the age of 55 will have GROW accounts, or can choose to opt out. The accounts will initially be invested in marketable Treasury bonds. This allows a safe and prudent transition period for the development of personal accounts to protect the Social Security surplus. 

Under this proposal, an independent Board, similar to the one which manages the retirement plan for Federal workers, will manage and administer GROW Accounts. In January 2009, this board will submit a plan to Congress that would allow workers to choose other prudent investment options or stay in low-risk marketable treasury bonds. When a person retires, their account balance will be used towards paying for their Social Security benefits. 

Ryan, a member of the Ways and Means Social Security Subcommittee announced this legislation at a press conference today with the subcommittee's chairman, Rep. Jim McCrery, and two other senior members of the Social Security subcommittee, Reps. Clay Shaw and Sam Johnson. Similar legislation is to be introduced in the Senate.