Sen. Kay Bailey Hutchison (R-Texas) presented her latest proposal to reform Social Security this afternoon. Her bill, the Defend and Save Social Security Act (DASSA), seeks to prolong Social Security’s longevity by increasing the retirement age to 69 by 2027 and reducing the annual Cost of Living Adjustment (COLA) by 1%.
According to projections provided by the Social Security Administration earlier this month, the Social Security Trust Fund will become insolvent by 2036. Hutchison told an audience at the Heritage Foundation this morning that raising the retirement age would prevent roughly one-third of the program’s expected shortfall. She argued that reducing COLA’s would close the remaining deficit.
Hutchison said that her legislation would not impact anyone currently 58 or older, nor will it result in a cut in social security benefits or raise taxes.
The Texas Republican announced earlier this year that she would not run for reelection in 2012.