I yield myself such time as I may consume. I rise today in support of H. Res. 1463, which designates Railroad Retirement Day on August 29, 2010. Railroad Retirement Day is established in this resolution to celebrate the success and…
I yield myself such time as I may consume.
I rise today in support of H. Res. 1463, which designates Railroad Retirement Day on August 29, 2010. Railroad Retirement Day is established in this resolution to celebrate the success and importance of the Railroad Retirement System, which has benefited generations of hardworking railroad workers and their families.
I am proud to support the railroad retirement system, which predates Social Security and provides comprehensive retirement, survivor, and disability benefits. More than 600,000 beneficiaries receive approximately $10 billion in benefits each year from the railroad retirement system.
For the last 7 years, a portion of retiree assets has been managed in the National Railroad Retirement Investment Trust. The NRRIT invests in U.S. and global equity markets, fixed income, and real estate and commodities, much like many private-sector retirement funds. This innovative fund has already returned $7.9 billion to retirees, and has grown 16 percent in the last 7 years, despite payouts and the volatility in the markets and the global economy.
I believe we should take a close look at the success of this system as one of the potential solutions to the looming crisis in Social Security. So I congratulate and applaud the majority for bringing this up today, as I have heard so many of my other colleagues talk about Social Security and how those on my side want to privatize Social Security. That just is not true. Nobody on our side of the aisle wants to privatize Social Security. But we have to look at innovative ways to be able to keep Social Security viable.
Just today there was a poll in USA Today that says that the overwhelming majority of Americans under 34 years old do not believe they will get anything from Social Security. So once again, looking at the railroad retirement system is a potential solution to Social Security. And again, it's not privatizing. It's taking a small portion of it and investing it in different ways. And as I said, the success of this over the last 7 years, even in these volatile times, has proven to be successful.
It has grown 16 percent over the last 7 years.
I would urge my colleagues on the other side of the aisle to stop the rhetoric, stop the scare tactics in talking about the way we want to privatize Social Security. This is a viable solution that we need to consider. This is something that we need to take a look at as we move forward in this country.
So, again, I applaud the majority for bringing this up today when, as I've said, I've heard so much talk about privatizing Social Security. And we all need to look at Social Security and figure out how to reform it, because I have two children--22 years old and soon-to-be 19--and Social Security will not be there for them. And we're not talking about the folks who are retired today. We need to make sure we are going to keep that ironclad guarantee with today's retirees and those that are soon to retire, that we are not going to affect their Social Security.
But as we move forward, as I said, let's look at the railroad retirement system as a model for how we can improve Social Security for those in America that are just moving into the job market who won't be retiring for 20
and 30 and 40 years. The freight rail industry strongly supports the railroad retirement system because these good benefits attract and retain highly skilled workers. This is a system that has worked well for generations. And I would encourage the railroads and the unions to protect the system by ensuring that benefits are distributed fairly and to remain vigilant for fraud and abuse in this system.
Madam Speaker, I reserve the balance of my time.
Madam Speaker, how much time do I have remaining?
I yield myself such time as I may consume.
Again, I want to make sure we set the record straight here. There is a lot of rhetoric, a lot of talk going on on the floor today about Social Security, and I just want to make sure that the record stands clear that in 1935, the Social Security Act, on April 19, 1935, was passed with 79 percent of the Republicans in the House voting for it in the House. There weren't many Republicans in 1935, I might add. Seventy-seven Republicans voted for it, and there were 18 that voted against; 288 Democrats voted for it and 13 voted against.
So let the record show that Republicans have supported Social Security, and we continue to support Social Security. Nobody that I know of on my side has talked about privatizing Social Security. We look to something like the railroad retirement system, how they've taken a portion of it, 7 years ago--under the Bush administration, I might add--under a Republican Congress, moved a portion of that to be able to be invested into different investment vehicles that has given a much greater return. As I've said, 17 percent growth in the last 7 years, even in these tough economic times. So it can be done.
And as I mentioned earlier, there was a poll out today that 18- to 34-year-olds in today's USA Today poll, 75 percent of them do not believe they will receive Social Security benefits. So standing up talking about railroad retirees, I'm here. I applaud the system. I want to applaud the railroad retirees and the freight system in this country, the railroads in this country.
But we've got to talk about all retirees, future retirees. That's who we owe it to, to the future generations to look at ways that we can strengthen and reform Social Security. And as I will go back to, as I've continued to state, I want to make sure that we hear this loud and clear, this is a system that we can look at as potentially a model. We have to consider this to make sure that we save Social Security for future generations.
With that, I continue to reserve the balance of my time.
I yield myself such time as I may consume.
In response to the chairman of the committee and his comments--and it is always dangerous challenging the chairman on his historical notes and happenings in the House, but as I recall in 1995, although I was not here, don't recall the debate, I do recall that it was a commission set up by President Clinton that made some of these recommendations.
So, to continue, for the majority to point to Republicans as not voting for it, as trying to rip it out by the roots, as trying to privatize, just simply is not accurate, and that's some of the rhetoric we hear from the other side.
Today, as we move this resolution forward, as I have said before, this is something we should be looking at as a model, as something we should try to understand how this works, the railroad retirement works, how it has grown 16 percent in the last 7 years despite these very volatile times in our economy. We did not privatize railroads' retirement. We took a portion of it, and we know that the retirees are receiving greater benefits because of what we've done here.
So I urge my colleagues on the other side as we debate this, as we talk about--a lot of folks talk about Social Security, as the chairman and the chairman of the subcommittee has mentioned Social Security, I'm not so sure, and I guess I have to ask the question: Do you support the National Railroad Retirement Investment Trust which does something very similar to many on both sides of the aisle, the commission that was set up by President Clinton and others on my side of the aisle talked about, as one of the ways to reform the Social Security system?
So we can stand up here today and talk about in glowing terms about the Railroad Retirement Investment Trust, when it's doing something that is very positive and it's a potential to help reform, to help make sure that those 18 to 34 years old in this country, that 75 percent of them do not believe they are going to get any money out of Social Security when they retire.
It just seems to me that the majority is using a lot of rhetoric, trying to hype up retirees in this country which we have to make sure that we keep that ironclad guarantee that those who are retired, those that are soon to retire are going to get the Social Security benefits that they've earned, that they have been promised by the Government of the United States.
But we have to look to the future generation, those that are going to retire in 20 and 30 years. Social Security, as the chairman pointed out, has not bounced a check. The check comes every month; but if we don't figure out
a way, a bipartisan way, how to reform Social Security, there's going to come a day when there's not going to be any money there, or we are just going to continue what we've been doing over the past 18 months, spending money, borrowing money that we don't have, which is going to be inflationary; and then that tax on our retirees, on our Social Security beneficiaries, is going to be an even more brutal tax when you lose value because of inflation. When inflation soars to four and five and seven, and those that have been on this Earth for more than 35, 40 years, remember the days of double-digit inflation and how brutal that was to the economy and how brutal that is to our retirees.
So this is an opportunity for us to look at a system that both sides of the aisle here talking, standing up today, as I said talking about in glowing terms the Railroad Retirement Fund, and we should look at this as a potential to help reform and strengthen Social Security for future generations.
I yield to the gentleman from Minnesota.
I appreciate the gentleman's comments but, again, we can use this as an experiment, it's working.
I understand the scale is different, but the principles can be the same. Business principles, running an efficient operation, making sure of a return on investment. All those things that we use in a small business that I operated, they use those same fundamentals when they are operating large companies in this country.
My suggestion, my urging is that the majority, as we move down the road, look at this as something to consider on how we can reform Social Security and strengthen it for those future generations. As I want to continue to stress, for the folks that are retired today and those that are going to retire soon, we have got to keep that guarantee that it is going to be there. But if we don't do something, don't consider some other way to strengthen Social Security, those who are 18 to 35 that have stated in that poll, 75 percent of them do not believe there is going to be anything available for them in Social Security when they retire.
I continue to reserve the balance of my time.
I yield myself the balance of my time.
I will close by making the final note, again, the urging, the plea to my colleagues on the other side of the aisle, to stop using the rhetoric that those of us on our side want to privatize.
We do not want to privatize Social Security. We want to find reforms to make sense. We want to find reforms that are going to strengthen Social Security and not just for those today, but, most importantly, those that are going to retire in 20, 30 years from now.
Because if we in this Congress do nothing, then we are going to continue to see Social Security going in the wrong direction and nobody in this country wants to see the Social Security system continue to go down, having less money, moving towards insolvency. So we have got to do something.
I say, let's look at the railroad retirement fund that has returned $7.9 billion to its retirees and has grown 16 percent in the last 7 years, despite payouts, volatility in the markets, in the global economy. This is a system that, again, 7 years ago, we have taken a small portion of it and invested it in U.S. and global equity markets, fixed income, real estate, commodities, not the entire amount, but a portion of it. Our railroad retirees are benefiting greatly by that.
I stand here today in support of this resolution. I hope it passes overwhelmingly, and I hope that we look to future generations to try to solve our problems, solve the reform of Social Security by looking at railroad retirement, which has been a tremendous success.
I yield back the balance of my time.