
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, September 28, 1994                   TAG: 9409290027
SECTION: NATIONAL/INTERNATIONAL                    PAGE: B-5   EDITION: METRO 
SOURCE: The Washington Post
DATELINE: WASHINGTON                                 LENGTH: Short

HOUSE STUDIES OPTIONS TO PRESERVE SOCIAL SECURITY

Four House Democrats proposed major Social Security-benefit cuts for future retirees Tuesday as a House subcommittee began a search for ways to save the system from bankruptcy in the next generation.

Reps. Dan Rostenkowski, D-Ill.; J.J. ``Jake'' Pickle, D-Tex.; Timothy J. Penny, D-Minn.; and Marjorie Margolies-Mezvinsky, D-Pa., proposed ways to save Social Security from running out of money in 2029.

The proposed solutions differed, but all the members except Rostenkowski depended entirely on benefit cuts to make up the predicted deficits.

The proposals given to the House Ways and Means Social Security subcommittee Tuesday included:

Making people work longer (all but Rostenkowski favored age 70) before they can retire with full benefits. Those retiring earlier would have to accept lower benefits.

Reducing the basic benefit by 8 percent for average earners and 20 percent for high earners.

Reducing spouse benefits from half the benefits earned by the retired primary wage-earner to one-third.

Reducing the cost-of-living adjustment.

by CNB