Sen. Max Baucus, D-Mont., said incentives to boost personal savings are more appropriate than a White House proposal to overhaul and partially privatize Social Security.

President George W. Bush visits Great Falls Thursday, a day after his State of the Union speech. He'll presumably stump for Social Security changes and up the political pressure on Baucus, who is the highest-ranking Democrat on the Senate Finance Committee. That committee will be the first hurdle for the Bush plan.

While Social Security has come into focus, Congress has a lot of long-range challenges, like the growing federal deficit, Baucus said, during a phone call to IR editorial board members Monday morning.

One provision - "price indexing," which would tie benefits to inflation rates rather than a rise in wages - would immediately cut seniors' benefits, he said. Some estimates that show benefits would be trimmed 45 percent by 2075.

"Seniors would have a substantial reduction in their income," Baucus said.

And much-debated private investment accounts have pitfalls hidden in the "fine print," he said. The accounts, also referred to as personal investment accounts, would allow workers to invest a portion of their Social Security taxes in the stock market. That could cost an estimated $2 trillion over 10 years.

"It's important to recognize that private accounts do not solve the problem - they make it worse," Baucus said. "It's kind of important to realize Social Security is not an investment plan, it's insurance."

There are "infinite ways" to address the Social Security shortfall by 2052, said Baucus, referring to Congressional Budget Office figures. Other estimates show the shortfall will occur in 2042. In either case, outgoing benefits will outstrip incoming payments in the future.

But Social Security won't slide into insolvency, Baucus said, and there is no "crisis." If people kept more money in the bank, that would keep interest rates low and create more money for investment, he said.

"I believe frankly and strongly the country should find out ways to substantially increase retirement income," Baucus said.

Baucus predicted resistance from Republican lawmakers.

"This is his (Bush's) baby. It's not the goal of congressional Republicans," he said.

When asked for comment, White House staff referred to recent press briefings.

"The president has made it very clear that if you're currently retired or near retirement, nothing is going to change," White House press secretary Scott McClellan told reporters Monday. "And we need to act on this opportunity that's before us, because it only gets worse over time."

Last week, Bush told reporters he doesn't want to pass a bankrupt system on to future generations. Personal investment accounts are an important part of an ownership society, he said.

Baucus will hold his own "Listening Session to Protect Social Security" hours before Bush visits Great Falls. But the Helena native is excited the president is visiting.

"I think it's great that he's coming," Baucus said.

Reporter Jason Mohr can be reached at 447-4075 or jason.mohr@helenair.com.