St. Louis Post-Dispatch from St. Louis, Missouri • Page 6

ST. LOUIS POST-DISPATCH Nov. 1982 6A nationworld Social Security Study Panel Reaches No Agreement On Plan After 3 Days 3 a 1 X'ifi- 1 4 iPiiVVtiiiiiiii1 1 Adrien Arpel's Makeup-B y-N umber Here's what you get: A deep cleansing facial includes brushing skin vacuuming and a nature-based plant or sea-mud masque. A private makeup lesson, including a numbered pin-up portrait for you to take home. A makeup-by-number it, including a sheer base make-up, moisturizing powder, blush for cheeks, three eye shadows, uw Sen.

Bob Dole Claude Pepper Alan Greenspan Finance Committee Committee on Aging 'Less than I had hoped" four lip colors and a yours as a bonus! Lastly, you'll be treated to a free follow-up appointment! To make an appointment, call 567-9200, and ask for Cosmetic Collections where we are all the things you are. jr" XT? iCTTtTnt XOfflTlU By Jon Sawyer Pott-Oitpatch Washington Bureau ALEXANDRIA, Va. The National Commission on Social Security Reform ended a three-day meeting here Saturday without reaching agreement on any plan to shore up Social Security's tottering 'financial base. But the bipartisan, 15-member commission did agree on the size of Social Security's money shortage $150 billion to $2(KJ billion over the next seven years and on the desirability of making the retirement an! disability system more Independent of politics. 'IWfe've achieved less than what I had hoped," said Chairman Alan Greenspan, "but -certainly far in excess of what I had realistically expected." Bob Dole, a member of the commission and chairman of the Senate Finance Committee, said that between now and the commission's next scheduled meeting, on Dec.

10, "We'll be giving an opportunity to congressional leaders and the; White House to take a look at the outstanding work this commission has done. It's an invitation to them to try and help us in our final days." But one of the leading House Democrats, Repr-Dan Rostenkowskl of Illinois, chairman of the Ways and Means Committee, circulated a letter to congressional colleagues Friday in which he -said that regardless of what the commission finally recommended its deadline is Dec. 31 he planned to begin work independently on a legislative reform package next February. Several commission members called Rostenkowski's "Dear Colleague" letter a blatant attempt at forestalling commission agreement on a financing package. "He cut us off at the knees," complained Rep.

Barber B. Conable a commission member and ranking minority member on the Ways and Means Committee, the committee with jurisiction over Social Security. On the crucial financing issue, the commission ended its lengthy session here as it began with the Democrats insisting that tax increases should be the primary means of making up Social Security's shortfall, and the Republicans just as adamant that the lion's share of savings should come from cutbacks in the future growth of benefits. we believe," said Rep. Claude, Pepper, a commission member and chairman of the House Committee on Aging, "is that there has to be a fair provision of funds.

We want to do that without cutting benefits." Robert Ball, a commission member and former Social Security administrator, told reporters after the meeting that Democrats on the commission were prepared to compromise on a package that contained the following elements: Moving up to 1984 the payroll tax increases now scheduled to take effect in 1985, 1986 and 1990. That change, worth $135 billion between now and 1990, would be offset by an equivalent reduction in income taxes. 1 Extending Social Security coverage to all federal employees who have held their 1 jobs less than five years. That change, from 70 am to 9 pm; Monday and Saturday 'til 6 pm. covering about 650,000 workers initially, would bring in an additional $32 billion by 1990.

Delaying the annual cost-of-living adjustment, now paid in July, to Oct. 1. That change would be worth $35 billion between now and 1990 under intermediate economic assumptions. According to several Democrats on the commission, House Speaker Thomas P. O'Neill reacted "positively" when that package was described to him in a telephone call Saturday morning.

But Ball stressed that the three-part plan stands or falls as a package, and he predicted that few Democrats would accept any tampering with cost-of-living adjustments unless the bulk of a reform package relied on taxes. Earlier Saturday, Greenspan released a list of eight package proposals combinations of benefit cuts and tax increases that would make up the shortfall in Social Security funds. Options listed ranged from eliminating cost-of-living adjustments for the next two years to using general tax revenues to make up the entire shortfall. Greenspan stressed that the list was meant only to be illustrative and should not be read as any indication of what the commission might ultimately recommend. The commission's three days of meetings here did make progress on a number of significant issues.

The most important single accomplishment, as Greenspan noted, is that a group of Democrats and Republicans agreed on what the problem is. After months of wrangling, the commission agreed that Social Security's trust funds would need an infusion of between $150 billion and $200 billion between now and 1990. For the longer term, covering the next 75 years, the commission set the shortfall at $1.6 trillion, or the equivalent of 1.82 percent of taxable payroll over that period. That compares to current payroll tax of 6.7 percent each for employees and employers. Democrats on the commission, and elsewhere, had previously contended that Social Security's problems were far less severe.

Commission Democrats attributed their change in position to the Republicans' acceptance of gloomy economic projections prepared for the commission last week by the Department of Commerce. Those 1 te. projections show a sluggish recovery from the current recession, continued high federal deficits peaking at $255 billion in fiscal 1987 and another recession in 1986. If that's what the Reagan administration itself says Reaganomics will do to the economy, said Sen. Daniel Patrick Moynihan, "we're going to have serious problems in Social Security, too." Republicans on the commission disputed Moynihan's reasoning, but they said they welcomed an end to the numbers dispute partisan squabbling over whether Social Security needed help or not that had dominated the issue for two years.

"The Democrats have agreed to things they flatly denied even two weeks ago," said Sen. William L. Armstrong, a commission member and chairman of the Senate Finance Committee's subcommittee on Social Security. Citing the disastrous experience Social Security has had with bad economic projections, the commission also agreed in principle to the idea of establishing mechanisms that would self-correct for economic detours. The commission' did not endorse any specific devices.

Mentioned as possibilities were tying cost-of-living adjustments to changes in wages instead of prices and Incorporating in the law a provision that would permit automatic borrowing from general revenues whenever Social Security's trust funds dipped below a specified level. What the commission has chosen not to consider is important as Greenspan said. Social Security's critics, among them President Ronald Reagfji at various times in his career, have called for making the system voluntary or scrapping it altogether in favor of private insurance. No one on the commission has proposed such changes. The commission also endorsed, in preliminary expressions of opinion, several other significant changes.

All but three members said they favored taking Social Security out of the unified federal budget, for example, and all but two favored extending coverage to newly hired federal workers. Three days of dickering over possible deals did not produce what Greenspan had originally hoped to achieve a postelection breakthrough that would resolve the long impasse over Social Security but the comission adjourned in remarkably good spirits all the same. 08 'it. 5j 1 1 r' yo wriiw; i i rrz, 6C: 1 1 'T If 7J S1500 3 PC. LIVING ROOM EARLY AMERICAN EXPOSED W000.

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