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Basic Fact Ignored in Social Security Items

September 22, 1985

Both Peter J. Ferrara and Daniel F. McGinn have axes to grind. Ferrara, a former member of President Reagan's White House Office of Policy Development for two years, is stumping to emulate what has occurred in Chile.

In 1981, after 57 years of a government administered social security system that included a national health services plan, Chile has discarded both programs and replaced them with mandatory commercial insurance plans, financed solely by employee payroll deductions.

Both employer and government contributions have been completely eliminated.

McGinn, a Fellow of the national Society of Actuaries has an obvious professional involvement with insurance companies which would profit immensely if Social Security were to be scrapped in favor of insurance plans.

Rep. Edward R. Roybal's article, which detailed the beneficial effects of our Social Security system, is a researched affirmation of the splendid article, "Healthy Future Seen for Social Security--Half-Century of Unprecedented Achievement" by Robert Rosenblatt and Jonathan Peterson (Part I, Page 1, Aug. 12).

Although none of the three viewpoints alluded to the social security systems in other industrialized countries, it is relevant to note that many of them have been increasing their benefits instead of cutting them.

As an example, in France the retirement age was lowered from 65 to 60 for both men and women with a retirement rate of 70%. Our retirement rate is 44%.


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