At this event, panelists will address pension reform challenges by presenting the results of three research papers commissioned by AEI through a generous grant from the Smith Richardson Foundation.

Public sector retirement benefits have come under fire in recent years, as state and local governments struggle to deal with large funding shortfalls. A number of recent studies have concluded that public sector workers are overpaid relative to their private sector counterparts. These studies raise a number of questions. Why are public sector workers so highly compensated?

But the chained CPI really isn't being proposed as a Social Security reform, as a way to make the program more solvent or better-functioning. True Social Security reforms think about ways to better protect the poor, or to encourage longer work lives, or increase retirement saving. The chained CPI, by contrast, is about producing savings within the 10-year budget scoring window. 

While women live longer than men, elderly women incur higher out-of pocket medical spending than men at each age. In this paper, we examine whether differences in marital status and living arrangements can explain this difference. We find that out-of-pocket medical spending is approximately 24 percent higher when an individual becomes widowed, a large portion of which is spending on nursing homes.

But by eliminating the cap, a person earning $225,000 would pay roughly four times more in taxes than he'll receive in benefits. A growing resemblance to a welfare plan would be inescapable. 

A New America Foundation proposal would cost 3.7 percent of GDP and crowd out the private saving that drives our economy. 

The narrative is already forming that President Obama only proposed using the chained CPI to appease congressional Republicans. But why should Republicans take the rap for a measure that weakens Social Security for the least well-off and institutes a large and regressive tax increase? Higher taxes and a less effective Social Security program - what's not to dislike?

AEI economist Sita Slavov spoke at an AARP event on the Hill on Social Security and cost-of-living adjustments.

Andrew Biggs finds that the real value of unfunded pension liabilities for Missouri's five largest pensions is close to $54billion - far higher than the $11.1 billion officially reported. This liability, which amounts to nearly $9,000 for every man, woman, and child in the state, potentially can make all other budgetary issues facing the state look small in comparison. 

In his State of the Union speech, President Obama urged Congress to "act soon to protect future generations." He was talking about addressing environmental issues. But there's an easier, more obvious step we can take to improve the lives of our children and grandchildren. We can act now to fix Social Security.