Media Release

August 19, 1997

American Legislative Exchange Council adopts Oregon Social Security Waiver Resolution as Model Legislation

Investor's Business Daily Guest Editorial

The nation's largest bipartisan individual membership association of state legislators has adopted Oregon's Social Security Waiver Resolution as Model Legislation. Three thousand state legislators belong to the American Legislative Exchange Council. They held their annual meeting in New Orleans last week.

The ALEC Commerce and Economic Development Task Force heard testimony from a number of speakers regarding the issue of Social Security and how to improve America's retirement system. Among the speakers was Steve Buckstein, president of Cascade Policy Institute, and Oregon State Senator Gene Derfler. Sen. Derfler is chair of the Oregon ALEC delegation. Buckstein and Derfler explained how Oregon's legislature approved Senate Concurrent Resolution 2. The resolution asks Congress to enact a waiver system so states can opt out of Social Security and design their own privatized retirement plans for all workers - public and private.

Senator Derfler proposed that ALEC adopt the Oregon resolution as model ALEC legislation, which was approved by the task force. This means that all 3,000 ALEC state legislators nationwide will be encouraged to adopt similar resolutions in their respective states.

"Most younger workers worry that Social Security won't be there when they retire. Many older Americans share that concern for their children and grandchildren," stated Buckstein. "We must develop alternatives that allow current retirees to be secure, while letting their children opt for fiscally sound retirement alternatives."

The waiver process was first proposed by Cascade Policy Institute in June, 1996. Last month the institute published The New Oregon Option, a plan to give every worker the right to invest for his or her own retirement. Copies are available from the institute. According to Buckstein, "We believe many younger workers will jump at such an opportunity. Current retirees will support their choice as the best way to move away from a system destined to become insolvent early in the next century."

"It's time for all Americans to talk about alternatives to Social Security," says Buckstein. "Oregon is the first state to ask Congress to begin this discussion. We are very pleased that the American Legislative Exchange Council will now urge its members nationwide to make similar requests. Together, the states can develop plans that give all Americans the retirement choices they want and deserve."

Several national organizations are working on Social Security alternatives, including Americans for Tax Reform, Cato Institute and National Center for Policy Analysis. For links to these and other organizations, see Opting Out of Social Security.
Cascade Policy Institute is Oregon's free-market think tank. A 501(c)(3) nonprofit, independent policy organization, it seeks innovative solutions to Oregon's public policy problems. Nothing in this Media Release should be construed as implying support or opposition for any specific legislation.