Capital Briefs: ABA Holds Forum on Social Security Reform

The American Bankers Association begins to tackle Social Security reform today.

At a two-day forum on the topic, a dozen bankers will hear from eight speakers, including Federal Reserve Board Governor Edward M. Gramlich and Henry J. Aaron, senior fellow at the Brookings Institution.

The group of bankers has as its core the ABA's economic advisory committee, but is augmented by a community banker, an employee benefits manager, and several members of the association's lobbying committee.

"The ABA feels it's time for the banking industry to become more involved in the Social Security debate," said Michael ter Maat, a senior economist at the group. "The meeting we're holding is the first step toward developing some principles to guide the ABA through the ensuing debate."

The ABA expects to have its position on Social Security ironed out by the end of summer.

Projections that Social Security will be insolvent by 2030 have prompted Congress and the administration to consider various plans to privatize the system.