Social Security chief hopeful on solvency

ST. LOUIS — Social Security Commissioner Michael Astrue is hopeful the Obama administration will address the solvency of the system before the 2012 elections. But in a speech on Monday in St. Louis, Astrue declined to speculate on how the administration plans to fix it.

Speaking to business leaders on the campus of Washington University, Astrue said the new administration is dealing with the economy and health care before turning its attention to Social Security.

"I do think the appetite with getting on with Social Security reform after that is very high and they will focus on trying to get something done before the next presidential election," Astrue said.

Trustees for Social Security said last year that resources for the benefit program would be depleted by 2041. Both Social Security and Medicare, the nation's other big benefit program, are facing increasing pressure as 78 million baby boomers begin retiring and drawing benefits.

But even in a worst-case scenario, Astrue said insolvency wouldn't mean Social Security would "fall off the cliff," leaving recipients without any benefits. Even if no changes are made, the program by 2041 would still be collecting enough in payroll taxes to pay 78 percent of current benefits.

While some experts believe the goal should be to get Social Security solvent for 75 years, Astrue believes that may be reaching too high. He urged reform that would guarantee solvency through 2065. He wants to see enough progress "that the young people of today have confidence in the system in the future."

As for how specifically the administration will address Social Security's shortfall, Astrue said he isn't sure.

"This administration is still too new for it to really be clear to me which way they're going to go," he said.

Despite the solvency concern, there are good things happening for Social Security recipients, Astrue said. He has pushed in recent years to modernize the system, making it easier for retirees and those seeking disability to obtain benefits. Now, about one-third of those retiring file for benefits online. "They've embraced it big-time," he said. "The response has just been fabulous."

Astrue urged the public to remain confident in Social Security, but to remain patient, too.

"It's an exciting time," he said. "A scary time in some ways. But at least with regard to our agency there are some very good things happening."