The Bush administration's proposals to make significant changes to the nation's Social Security system, including privatization, will do nothing to enhance the program's solvency and will simply add to the already runaway federal deficit, says the AFT. In a statement approved by the union's executive council at its Jan. 31-Feb. 2 meeting in Orlando., Fla., the AFT warned that the financial strain of creating private retirement accounts will impose "serious and long-lasting perils to the stability of this tremendously successful program." Although President Bush has not unveiled a detailed proposal, a central piece of the administration's discussion about reforming Social Security is to allow workers under age 55 to divert a portion of payroll taxes to individual private retirement accounts. This diversion of payroll taxes could result in a $2 trillion increase to the federal debt in the first decade alone, say Social Security Administration analysts. In fact, to restore solvency to a privatized Social Security program, says the AFT, younger workers' benefits would have to be cut by 26 percent to 45 percent--"a prospect that is totally unacceptable." While modest steps should be taken to maintain the integrity of the program, says the union, Social Security is "not headed for disaster." Also see The Basic Facts about Social Security Privatization and its Impact prepared by the Economic Policy Institute.