Now, last year, we wisely reserved all of the surplus until we knew what it would take to save Social Security.  Again, I say, we shouldn’t spend any of it, not any of it, until after Social Security is truly saved.  First thing’s first.

Second, once we have saved Social Security, we must fulfill our obligation to save and improve Medicare.  Already we have extended the life of the Medicare trust fund by 10 years, but we should extend it for at least another decade.  Tonight, I propose that we use one out of every six dollars in the surplus for the next 15 years to guarantee the soundness of Medicare until the year 2020.

But, again—­but, again, we should aim higher.  We must be willing to work in a bipartisan way and look at new ideas, including the upcoming report of the Bipartisan Medicare Commission.  If we work together, we can secure Medicare for the next two decades and cover the greatest growing need of seniors—­affordable prescription drugs.

Third, we must help all Americans from their first day on the job to save, to invest, to create wealth.

From its beginnings, Americans have supplemented Social Security with private pensions and savings.  Yet today millions of people retire with little to live on other than Social Security.  Americans living longer than ever simply must save more than ever.

Therefore, in addition to saving Social Security and Medicare, I propose a new pension initiative for retirement security in the 21st century.  I propose that we use a little over 11 percent of the surplus to establish universal savings accounts—­USA accounts—­to give all Americans the means to save.

With these new accounts, Americans can invest as they choose and receive funds to match a portion of their savings with extra help for those least able to save.  USA accounts will help all Americans to share in our nation’s wealth and to enjoy a more secure retirement.  I ask you to support them.

Fourth, we must invest in long-term care.

I propose a tax credit of $1,000 for the aged, ailing or disabled and the families who care for them.  Long-term care will become a bigger and bigger challenge with the aging of America—­and we must do more to help our families deal with it.

I was born in 1946, the first year of the baby boom.  I can tell you that one of the greatest concerns of our generation is our absolute determination not to let our growing old place an intolerable burden on our children and their ability to raise our grandchildren.

Our economic success and our fiscal discipline now give us the opportunity to lift that burden from their shoulders, and we should take it.

Saving Social Security, Medicare, creating U.S. accounts, this is the right way to use the surplus.  If we do so, if we do so, we will still have resources to meet critical needs and education and defense.

And I want to point out that this proposal is fiscally sound.  Listen to this, if we set aside 60 percent of the surplus for Social Security and 16 percent for Medicare over the next 15 years, that savings will achieve the lowest level of publicly-held debt since right before World War I in 1917.