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Friday, February 4, 2005

House conservatives harden backing for Social Security plan

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BALTIMORE -- House conservatives said yesterday they will fight for a Social Security plan that goes into effect immediately and includes larger private accounts than the president is calling for, and they will not accept an overall increase in Social Security entitlement spending.

"Conservatives want to see personal retirement accounts that have immediate relevance to younger Americans, that they can see the value, and that will require that they be big and that they be implemented in the final bill without delay," said Rep. Mike Pence, Indiana Republican and chairman of the 100-member Republican Study Committee (RSC).

About half of the RSC's members have been brainstorming in Baltimore the past two days at a retreat sponsored by the Heritage Foundation. Mr. Pence said the group has come to agreement on principles for fiscal discipline and Social Security, and are prepared to be the conservative balance trying to give the president the backing to pursue the boldest possible plans on both issues.

Mr. Pence has said he wanted to stake out a position early enough to avoid a repeat of the 2003 Medicare debate, when he thinks conservatives were late to object to the direction of the bill. Many conservatives were angered when President Bush signed off on a bill that lacked the reforms they had wanted.

Mr. Pence said this time around feels different.

"They're starting on conservative principles and working toward the middle instead of starting in the middle and then coming to the right," he said.

That may be out of necessity. Unlike Medicare, where Mr. Bush picked up 11 Senate Democrats, this time Democrats say they are nearly united in opposing his idea of private investment accounts.

This week, Senate Minority Leader Harry Reid, Nevada Democrat, told reporters he didn't know of any Democratic senator prepared to support the president's plan.

"They all agree that there should be no privatization of Social Security. I agree with them," he said.

The Bush plan allows workers to divert 4 percent of their wages into investment accounts, and to choose from a set of investment strategies. The plan would be voluntary, and would begin allowing the diversion in 2009.

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