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Old 12-04-2018, 05:33 AM
 
12,018 posts, read 14,579,242 times
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1. Eliminate the wage cap.
2. Keep increasing benefits after age 70, but a lesser increase so it brings in more money.
3. Open up the 401k system to ALL workers, including contractors.
4. Offer to pay moving costs for those moving to cheaper areas.
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Old 12-04-2018, 05:36 AM
 
66,279 posts, read 67,496,775 times
Reputation: 44414
social security was never allowed to hold excess funds as cash .... never!!!!!!




Social Security Act of 1935

TITLE II-FEDERAL OLD-AGE BENEFITS

OLD-AGE RESERVE ACCOUNT

Section 201. (a) There is hereby created an account in the Treasury of the United States to be known as the Old-Age Reserve Account hereinafter in this title called the Account. There is hereby authorized to be appropriated to the Account for each fiscal year, beginning with the fiscal year ending June 30, 1937, an amount sufficient as an annual premium to provide for the payments required under this title, such amount to be determined on a reserve basis in accordance with accepted actuarial principles, and based upon such tables of mortality as the Secretary of the Treasury shall from time to time adopt, and upon an interest rate of 3 percentum per annum compounded annually. The Secretary of the Treasury shall submit annually to the Bureau of the Budget an estimate of the appropriations to be made to the Account.

(b) It shall be the duty of the Secretary of the Treasury to invest such portion of the amounts credited to the Account as is not, in his judgment, required to meet current withdrawals. Such investment may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. For such purpose such obligations may be acquired
(1) on original issue at par, or
(2) by purchase of outstanding obligations at the market price. The purposes for which obligations of the United States may be issued under the Second Liberty Bond Act, as amended, are hereby extended to authorize the issuance at par of special obligations exclusively to the Account. Such special obligations shall bear interest at the rate of 3 per centum per annum. Obligations other than such special obligations may be acquired for the Account only on such terms as to provide an investment yield of not less than 3 per centum per annum.

(c) Any obligations acquired by the Account (except special obligations issued exclusively to the Account) may be sold at the market price, and such special obligations may be redeemed at par plus accrued interest.

(d) The interest on, and the proceeds from the sale or redemption of, any obligations held in the Account shall be credited to and form a part of the Account.

(e) All amounts credited to the Account shall be available for making payments required under this title.

(f) The Secretary of the Treasury shall include in his annual report the actuarial status of the Account.

Source: Social Security History
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Old 12-04-2018, 05:38 AM
 
66,279 posts, read 67,496,775 times
Reputation: 44414
Quote:
Originally Posted by pvande55 View Post
1. Eliminate the wage cap.
2. Keep increasing benefits after age 70, but a lesser increase so it brings in more money.
3. Open up the 401k system to ALL workers, including contractors.
4. Offer to pay moving costs for those moving to cheaper areas.
eliminating the wage cap would not fund the gap , it is to little ..

out of each dollar

72 cents goes to a trust fund that pays monthly benefits to retirees and their families.
16 cents goes to disabled benefits.
9 cents goes to survivor benefits
Less than 1 cent goes to pay for administrative costs.

Last edited by mathjak107; 12-04-2018 at 05:47 AM..
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Old 12-04-2018, 05:59 AM
 
Location: Thailand
5,101 posts, read 2,430,450 times
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Quote:
Originally Posted by GeoffD View Post
The trust fund is fiction since the money has already been spent.
Nonsense. The trust fund is invested in government bonds, as long as US government doesn't default they the trust fund will have every penny it invested.
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Old 12-04-2018, 06:00 AM
 
66,279 posts, read 67,496,775 times
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i think his point is the fund is still short even with the money due it . .
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Old 12-04-2018, 06:21 AM
 
Location: Outside US
532 posts, read 229,942 times
Reputation: 634
Quote:
Originally Posted by nativenewenglander View Post
The fear of SS going bust is over blown. SS won't go bust nor will federal and state pensions.
SS won't go bust IMO, but they can change the rules - the age of eligibility and how much we'll get.

There is (still there?) a bill in the Ways and Means Committee to raise the age of eligibility by 2 years but it never hit the floor. Someday in the future, the circumstances (votes) may be there.

States were allowed to do false accounting by Congress a couple decades ago. Don't buy the "your pension is guaranteed" line.

As for some state pensions - Some states may send "love notes" in the future to long-term employees:


"We regret to inform you that because of insufficient funds that we will not be able to......"



It's happened in small towns; it's happened in foreign countries.

Some US states are not immune.
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Old 12-04-2018, 06:29 AM
 
2,148 posts, read 1,832,065 times
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I am thinking when social security was set up, they were wise enough to put some protections in so it wouldn't be raided. Even back then the government didn't trust the future government.
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Old 12-04-2018, 06:59 AM
 
Location: Oklahoma
2,116 posts, read 704,059 times
Reputation: 975
Quote:
Originally Posted by lieqiang View Post
It was already explained to you why this is false, repeating the same erroneous claim over and over doesn't make it true. The Social Security Trust Fund didn't grow to almost 3 trillion by the government blowing every penny it received from SS contributions.


Legitimate reason = demographics.


You should read up on and understand the system before proposing fixes.
I understand that rates have increased dramatically since inception and will continue to increase to sustain it. It has basically become most Americans pathetic retirement plan.

I understand that whenever a contributor dies before 65, his contributions are gone leaving nothing to his children. Yes, I know his spouse may get it, depending on her situation, point is that it is not like a personal 401k that both would have when both contribute.

I understand that it gives the government a big piggy bank and future Americans a big bill.

I understand as an investment product in the private sector, the manager would be sitting next to Bernie.
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Old 12-04-2018, 07:55 AM
 
Location: Boston
5,508 posts, read 1,604,610 times
Reputation: 4043
thank God I'm a retired fed that never paid into SS.
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Old 12-04-2018, 08:03 AM
 
66,279 posts, read 67,496,775 times
Reputation: 44414
eventually you will get paid with the same monopoly money ss recipients will
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