The penny has led a good life but it is time for it to retire.
The cost to create pennies is more than double the value of the currency (See Page 11 of the 2011 US Mint Annual Report- http://www.usmint.gov/downloads/about/annual_report/2011AnnualReport.pdf).
With ongoing deficit issues this there is no conscionable reason to continue producing penny.
There will be no one step to resolve our countries financial issues, but rather of collection of steps in the right direction and retiring the penny is one of them.