In 1983, social security, defined here ernment, but they are not Govern as Old Age, Survivors, and Disability ment (Bill to Cut, 1990, p. Insurance (OASDI), was reformed to S150). Furthermore, because OASDI's includegraduatedpayrolltaxincreases. assets are generated by regres These reforms were made to moderate sive payroll tax (in 1991, wages over large pension liabilities expected to $53,400 were exempt from this tax), accrue as people born between 1946 using these funds for current federal and 1964 (the generation) expenditures shifts financial bur retire. However, because these payroll den to lowand moderate-income tax increases were based on overly people (Langley, 1990). conservative assumptions about ecoDeliberation over how to manage nomic growth, OASDI's trust fund balsocial securi ty's large trust fund bal ances are expected to rise from $69 anees is expected to continue when billion in 1990 to a peak of $494 billion 102nd Congress convenes in fall of in 2015 (Board of Trustees, Federal 1992. Social workers must participate OASDI, 1990). in this debate because OASDI's sur Under current law, all payroll pluses have implications for increas tax revenues not needed to pay bening quality of life of lowand mod efits are invested in special-issue U.S. erate-income families. This article Treasury bonds (General Accounting continues discussion in Dattalo Office, 1990a). As a result of these (1990) by assessing two recent propos investments, OASDI's trust fund is als for managing program's large credited with a bond (that is, an IOU surpluses and recommending addi from one part of federal governtional policy directions. ment to another), and in exchange Treasury receives OASDI's cash. From Treasury's perspective, these borTwo Recent Proposals rowed funds are available to finance T , ,, 0 , ,, . ,. r ,i n j i Invest Surpluses general operations oi federal government (General Accounting OfOne proposal for managing social fice, 1990b). security's excess funds is to invest them. Because social security's surpluses Recently, Illinois Representative John are a planned response to retirePorter recommended that surplus ment needs of baby boom generabe used to create Individualized Social tion, borrowing these funds to finance Security Retirement Accounts federal government's general op(ISSRAs) (General Accounting Office, erations has raised questions about 1990a). The ISSRA approach would program's management. For exestablish a two-tier retirement sys ample, New York Senator Daniel tern. The first tier, similar to exist Moynihan charged that using ing program, would pay benefits to OASDI's assets for current federal retirees from OASDI's trust fund. These expenditures violates program's payments would be reduced to corn integrity. Accordingto Moynihan, the pensate for second-tier benefit levels, so-called Social Security tax is not a Under second tier, workers would tax. . . . These contributions are preselect financial institution (called miums paid to insurance. . . . [They] trustee) at which their ISSRA are held in trust by federal Govwould be held. Appropriate trustees include banks, insurance companies, and other money management firms. Participation in ISSRA program would be mandatory and early account withdrawal prohibited. Benefits would be paid directly out of proceeds of these accounts based on contributions plus interest. Trustees would be re quired to follow specific investment guidelines, could not release funds until worker's retirement, and would be liable for rule violations.