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March 07, 2005

Actuaries Support Greenspan's Call for Action on Social Security

GreenKenneth A. Kent, vice president for pensions at the American Academy of Actuaries, offered support for the comments of Federal Reserve Board Chairman Alan Greenspan's remarks on Social Security reform before the U.S. House Budget Committee yesterday.

"Chairman Greenspan was right to call upon Congress and the president to enact Social Security reform 'sooner rather than later.' Time is the most important factor in the reform equation. There is a consensus that Social Security has to be reformed, but there is confusion about the impact specific reform proposals will have on people and the economy. The goal should be to make Social Security actuarially sustainable for future generations. The sooner reforms are put in place, the more impact they will have on reducing Social Security's financial shortfall, and the more time Americans will have to prepare and plan for changes in the program. As it stands now, future generations will carry the brunt of the sacrifices that will have to be made to sustain Social Security, and that is neither fair or responsible," said Kent.

Kent noted that the Academy has published analyses of the various reforms being considered, but it does not endorse any particular reform or combination of reforms. "Our role is to provide objective, unbiased advice to policymakers and the public."

For further information on Social Security reform, including publications and an on-line Social Security reform game, go to the Academy's Website at http://www.actuary.org/.

The American Academy of Actuaries is a 15,000 member non-profit, nonpartisan public policy organization, representing the U.S. actuarial profession. The Academy provides independent analysis to elected officials and regulators, maintains professional standards for all actuaries, and communicates the value of actuarial work to the media and public.

Posted by Tom Troceen