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Welch says Social Security needs study, [ Shepard offers solution, By Ross Sneyd, AP Political Writer | August 3, 2006 MONTPELIER, Vt. --Social Security needs the scrutiny of an independent, bipartisan commission that could recommend ways to guarantee its long-term future but shouldn't be turned over to private enterprise, Democratic U.S. House candidate Peter Welch said Thursday. If Republicans retain control of the Congress, the national retirement program will inevitably be modified so the billions of dollars it holds can be invested in the private market, he said. "Vermonters and Americans should make no mistake, the privatization agenda by President Bush and the Republican leaders in Congress is active, is real, and is wrong," Welch said. Welch, a candidate for the seat being vacated by Rep. Bernie Sanders, wants to follow the model of former President Reagan and former House Speaker Thomas O'Neill, appointing a panel to study long-term funding issues facing Social Security. "Preserving Social Security should be the goal, not dismantling it through privatization," Welch said. Martha Rainville, one of his GOP opponents, agrees privatization is a bad idea; the other says limited private investment should be considered. Rainville, the former head of the Vermont National Guard, believes Congress should investigate the long-term solvency of Social Security. But she believes it shouldn't be privatized, said spokesman Brendan McKenna. Neither does she believe benefits should be cut, the retirement age raised or payroll taxes increased, McKenna said. "Martha Rainville believes leaders don't wait until situations turn into a crisis," he said. "When elected, she would look to see if some small changes now could prevent drastic changes in the future." State Sen. Mark Shepard, her opponent in the Sept. 12 Republican primary, said he was persuaded by a Heritage Foundation study that giving retirees the option of taking a small portion of their Social Security savings and investing it in the private market would save the federal government money and earn a better return for beneficiaries. The study examined 40 years' worth of data, assuming people had had the opportunity to invest between 2 percent and 7 percent of their benefits in restricted, relatively safe investments, Shepard said. "The government paid out half what they do now out of the Treasury," Shepard said. "The net payout after the investment of that small amount averaged between 25 percent and 35 percent more for the recipient." Shepard was critical of both Welch and Rainville for their positions on Social Security, arguing that neither was offering a concrete plan that would shore up its finances. "Both of those are irresponsible responses in my book," Shepard said. "Peter Welch and Martha Rainville in this race have often come up with the same ideas. I don't think they have any new ideas." ... return to news page
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"... many politicians talk the talk about doing something tangible about new jobs and it doesn't go much further. Sen. Shepard walked the walk." Bennington Banner State Senator Endorsement Editorial, October 29, 2004
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