As Association officers began to analyze the election results, President Bush himself answered members' curiosity on Social Security reform, saying it is a priority in his second term. Given that Bush now has a comfortable Republican majority in both the Senate and House, it is likely that he will attempt to advance a Social Security bill in 2005.

The President has begun to outline the very basics of what his administration may propose as his "signature" Social Security reform measure. What is known at this time is that Bush would like to "privatize" a portion of the program, whereby workers will be allowed to invest some of their Social Security withholdings into so-called private accounts.

Critics argue that this approach is dangerous to the long-term stability of Social Security. Allowing younger workers to divert up to 4% of their Social Security contributions into a private account could take some $2 trillion away from the program over the long term, just as 77 million baby boomers will be retiring. Another potential danger is that they are subject to market fluctuations.

Bush, along with his conservative allies in the Congress, cite the need to create an "ownership society", whereby individuals are given more choices and greater responsibility in planning for their future retirements. This concept is popular with younger workers, who are fearful of Social Security's future stability.

While our Massachusetts Senators and Congressmen continue to lead the fight for a repeal of the GPO and WEP, their ability to set the terms of the debate is hindered by the fact that each is a member of the minority party in Washington. Despite the opposition they have faced from the Republican leadership, each continues to be an effective voice for public retirees.

Over the objections of congressional Democrats, the Republican leadership is expected to advance a Social Security bill in the coming months. If this prediction holds true, the Association will once again call upon our Florida members to play a key role in shaping the debate.

E. Clay Shaw, the Republican congressman who chairs the Social Security Subcommittee, easily won reelection (63-35%) in his South Florida district. Shaw, who lives in Ft. Lauderdale, represents parts of Broward and Palm Beach counties.

Regardless of the Association's misgivings about the President's proposal, the coming year may offer our best opportunity to repeal or reform the GPO/WEP laws. Congressional leaders, within both parties, are reluctant to take up bills affecting major policy areas, unless it is part of a larger restructuring or reform effort.

One area of great concern to Massachusetts officials is the potential risk of a provision that mandates Social Security coverage upon non-Social Security states. As members know, the Commonwealth is one of seven states in which public employees do not participate in the federal retirement program. Being forced into Social Security would cost the state and local governments close to a billion dollars a year, devastating our Massachusetts pension systems.

"These are dangerous times that we are about to encounter. Somehow we have to avoid being mandated to join Social Security, while at the same time reforming the GPO and WEP situation," said Association President Ralph White. "In some ways, we may have to tiptoe through the graveyard here.

"As important as it is for us to make a move to include language on the GPO and WEP in any Social Security bill that Congress acts on, we have to remain mindful of the overall impact of the Bush plan on the system. Many of us in the retirement community have serious concerns about privatization and worry about how such a system would work in the long run."

Association lobbyists will continue to closely monitor developments in Washington and will continue to work closely with our Massachusetts congressional delegation. Above all else, repeal of the egregious Windfall and Offset laws, which are devastating to so many of our members, will always be our top priority at the federal level.