WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA), in honor of National Save Social Security Day, penned an op-ed in the Shreveport Times calling on Congress to join him in saving the program from insolvency by creating a Sovereign Wealth Fund—separate from the existing Social Security Trust Fund—invested in stocks, bonds, and other investments. This would keep Social Security stable, profitable, and reliable for all current and future beneficiaries.
“If we do nothing, the Social Security Trust Fund is estimated to go insolvent by 2033. This means millions of Americans, including over 900,000 Louisiana seniors, will see an estimated 24% cut to their benefits—benefits they’ve earned through a lifetime of working hard and playing by the rules. The consequences would be devastating,” wrote Dr. Cassidy.
“We know this model can work because it already has. For funded pension plans, about 63% of receipts come from investment earnings alone. What’s more, Congress created a similar investment fund for the Railroad Retirement Program. It’s remained stable, profitable, and reliable. If it can work for funded pension plans and railroad retirees, it can work for Social Security,” continued Dr. Cassidy.
Read the full op-ed here or below.
Protecting Social Security for Louisiana seniors before it’s too late
According to the most recent Social Security Trustees Report, in eight years, Louisianans who rely on Social Security will be left stranded if Washington does nothing. On the 90th anniversary of the Social Security Act, the question isn’t whether we remember, but whether we are willing to act.
The Report shows that over the next 75 years, payroll tax revenue will fall short of covering expected benefits by more than $25 trillion in today’s dollars. For scale, our current national debt is $37 trillion. Without action, benefit cuts for Louisiana seniors are inevitable.
The Social Security Trust Fund is currently bridging the gap, but is invested solely in low-return government bonds, which can have a negative real rate of return.
If we do nothing, the Social Security Trust Fund is estimated to go insolvent by 2033. This means millions of Americans, including over 900,000 Louisiana seniors, will see an estimated 24% cut to their benefits—benefits they’ve earned through a lifetime of working hard and playing by the rules. The consequences would be devastating.
Imagine a retired teacher in Shreveport who carefully planned her finances around a fixed monthly Social Security check—only to see her benefits slashed by 24% overnight. Or a grandfather in Baton Rouge, just months away from retirement, who suddenly learns that the benefits he’s counted on for decades won’t be there in full. These are not abstract numbers; and they will impact real people whose lives would be upended.
The time to act is now. I am proposing a solution that protects expected benefits for all current and future Social Security beneficiaries, saves the Social Security program by making it solvent, and can pass Congress.
My plan creates a sovereign wealth-style fund, separate from the existing Social Security Trust Fund. The new fund would be invested in stocks, bonds, and other investments that generate a higher rate of return and keep the program solvent.
It would require an initial $1.5 trillion investment that would grow over 75 years to give it scale to work and time to compound. In the meantime, the Treasury would temporarily cover benefits, with the new fund later repaying the Treasury.
We know this model can work because it already has. For funded pension plans, about 63% of receipts come from investment earnings alone. What’s more, Congress created a similar investment fund for the Railroad Retirement Program. It’s remained stable, profitable, and reliable. If it can work for funded pension plans and railroad retirees, it can work for Social Security.
Some people worry that a new fund could be misused by politicians. That’s why we would legislate strict guardrails—modeled after the Railroad Retirement Program—to ensure that the fund is independently managed, focused on maximizing returns, and protected from political interference. Annual audits and full transparency would be required.
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