MW Trump's Social Security pick is a CEO with no government experience. Can he guide a troubled program 67 million Americans rely on?
By Alessandra Malito
Experts wonder if Fiserv CEO Frank Bisignano's business background will help - or hurt - Social Security
President-elect Donald Trump has nominated Frank Bisignano, chief executive officer of financial-technology company Fiserv Inc. $(FI)$, as commissioner of the Social Security Administration in his incoming administration.
The choice makes sense, some experts said, since the commissioner's role is focused on running the agency's business.
"Running SSA isn't about deciding what the payroll-tax rate should be or whether to raise the retirement age," said Andrew Biggs, a senior fellow at the American Enterprise Institute. "It's about getting the right check to the right person at the right time, and so demands a different set of skills."
Analysts agree Bisignano could help the Social Security system, which is currently facing insolvency in the next decade. If the trust funds that support the program run out of money, beneficiaries across the board could see a 17% cut to their monthly checks, the trustees report found.
"Mr. Bisignano by now has a well-earned reputation as an operator/fixer-upper, making him uniquely the right person to handle the job of fixing a very broken Social Security system here in the U.S., in our view," senior analyst Jeff Cantwell from Seaport Research Partners said in a note.
Prior to Fiserv, which provides payment and other financial-technology services, Bisignano held positions at banking giants JPMorgan Chase & Co. $(JPM)$ and $Citigroup Inc(C-N)$. (C) He was also a senior vice president of Shearson Lehman Brothers and later Morgan Stanley $(MS)$, the New York Times reported.
Read: Fiserv's stock falls with CEO poised to decamp to Trump administration
"I am honored to have this once-in-a-lifetime opportunity to serve my country. I thank President-elect Trump and, if confirmed, look forward to applying my experience to transform our Social Security system," Bisignano said in a statement. Bisignano must be confirmed by the Senate before assuming the role as Social Security's commissioner, and will continue in his current position until that happens, Fiserv said.
The Republican National Convention was held at the Fiserv Forum in Milwaukee earlier this year.
See: Trump's plan to cut taxes on Social Security benefits may cost beneficiaries more in the long run
Critics argue the nomination could change the fabric of the Social Security Administration. Bisignano doesn't have a background in Social Security or government work, noted Nancy Altman, president of the advocacy group Social Security Works.
"That is very concerning. This is a very complicated program - a really important program. It is not a patronage job," she said. "To put someone in there with zero background is really irresponsible."
Before Trump, the Social Security Administration was always run by someone with a government background, Altman said. "And it has never missed a paycheck," she said. "Benefits were always paid in full and on time."
If confirmed, Bisignano will replace Martin O'Malley, who was confirmed last December.
"Commissioner O'Malley had made significant strides to reduce wait times on the agency's 1-800 number, keep field offices open, speed up disability-insurance decisions, and make the overpayment-recovery system less punitive," Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, said in a statement. "We hope that nominee Bisignano will build on those successes. It also will be essential for the new commissioner to advocate for adequate funding for SSA, which has been chronically underfunded for the past 15 years."
-Alessandra Malito
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December 07, 2024 11:55 ET (16:55 GMT)
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