Position on Social Security Privatization

Since its founding in 1881, the American Association of University Women has been committed to promoting equity for all women. As part of this effort, AAUW’s 2011-2013 Public Policy Program advocates for “strengthening retirement benefits and programs…and protecting Social Security from privatization.”¹ AAUW believes that Social Security is of particular importance to the economic security of women. Social Security is a national commitment through which we care for one another across generations and is one of the most successful anti-poverty programs in our nation’s history.

Due to the national debt and deficit, all government programs are currently under scrutiny for reform and savings. Social Security should not be an exception, but AAUW strongly opposes privatizing Social Security as a solution. Social Security is the sole, guaranteed source of income for many children, widows, disabled workers, and retirees. The current system contains many social insurance benefits that must be maintained, including lifetime benefits, full cost-of- living adjustments, a progressive benefit formula, spousal and widow benefits, and disability and survivor benefits.²

Privatization schemes are especially bad for women, and we have only to look at recent events to understand the problematic nature of proposals that put personal accounts at the mercy of the stock market. Although Social Security needs reform, the system is not broken. The most recent Social Security trustees’ report shows that the system can pay all scheduled benefits through 2040.³ Unlike the recommendations of the President’s National Commission on Fiscal Responsibility and Reform which erroneously blame Social Security for the deficit, AAUW supports reform that update the program while guaranteeing its solvency.

For more information, call 202/785-7793 or e-mail VoterEd@aauw.org.

¹ American Association of University Women. (June 2011). 2011-13 AAUW Public Policy Program. Retrieved June 16, 2011, from www.aauw.org/act/issue_advocacy/principles_priorities.cfm.

² Ibid.

³ Social Security and Medicare Boards of Trustees. (2010). 2010 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds. Retrieved August 16, 2011 from www.ssa.gov/OACT/TRSUM/index.html.