Social Security Chief Assails ‘Guarantee’ Plan

A Republican proposal to issue certificates guaranteeing Social Security benefits would cost the fund millions of dollars that could be better spent, the head of the Social Security Administration said.

Because of privatization proposals and concerns over the long-term viability of the federal retirement system, House Majority Leader Dick Armey of Texas and other House Republicans want the government to issue certificates assuring recipients that benefits will not be cut.

But Commissioner Jo Anne Barnhart said that sending the 46 million notices “would increase administrative costs by millions of dollars” and boost the staff workload.