social security ability to pay.

[rockriver]

I rec'd an email today... from an associate...
I think it is his original work and not a relay.

in a few minutes I will post the letter that supposedly he got from the soc. sec. folks.
** I had trouble downloading the soc. sec. letter. it is now the 3rd post in thread... but stats are not properly displayed... sorry about that... I hope someone can find this letter and post it properly**
-----------------------------------------------

I have attached a letter from the Social Security Administration about the status of Social Security as described by the actuaries that manage Social Security.




Basically, SSI, the Disability Insurance that people get who are disabled and can't work, becomes bankrupt in the fourth quarter of 2016. This means that people like my cousin who is my age and has cerebral palsy won't get a check anymore.




Also, the Social Security program itself will be bankrupt in 2033. This means that people born in 1963 will not get anything from the contributions they made to Social Security. This also assumes that all the government loans that Social Security has will have been redeemed from the US Treasury. Since there is no money anywhere to cover these loans that Social Security holds, taxes have to go up or benefits have to be cut. The US clearly can not borrow the money necessary to cover these benefit programs.




I haven't heard anyone in the media discuss this except that this is one of the subjects of the 2016 federal budget that President Obama submitted. His solution is to move money from Social Security Old Age pensions into SSI. This further reduces the number of years remaining on Social Security. All of the details are in the letter.




So, unless we want a disaster in Social Security, something like means testing Social Security should be taken today.




People like me, my wife, my older brother, and many of my friends who are well off financially should not be eligible for Social Security SSI and Old Age pensions. My retirement plans do not include Social Security. I don't see how anyone who plans to be retired and managing their resources should expect anything from Social Security after 2033. I'll be 77 in 2033, and I think I'll need money in 2033 to cover my expenses. I also think I'll live to be 84, the age my father died. So there is a disconnect if I think that Santa Claus, the tooth fairy, or the Easter Bunny is going to cover Social Security for me after age 77. I'm only basing my opinion on what the US government and President Obama are telling me today.




Our government is in serious trouble, and I hope that all of you can see the train wreck that is coming.




Please read the letter and internalize what it says.




Our country is broke.




In the next election, don't think about deflated footballs or news people who lie to you or police brutality in Ferguson MO.




Vote for someone who understands simple math. Vote for people who know that you can't give what you don't have.

[Benn Gleck]

I would have voted for someone like that for the last ten elections, problem is that type candidate never makes it on the ticket, and if they do they are soon corrupted.:mad:

[rockriver]

The Honorable Shaun Donovan
Director, Office of Management and Budget
Washington, D.C. 20503
Dear Director Donovan:
The Board of Trustees of the Federal Old-Age and Survivors Insurance (OASI) and Federal Disability Insurance (DI) Trust Funds released the 2014 Annual Report on July 28, 2014. Under the intermediate assumptions, the Trustees project that the OASI Trust Fund reserves will become depleted and unable to pay scheduled benefits in full on a timely basis starting in 2034. However, the Trustees project that the DI Trust Fund reserves will become depleted much sooner, in the fourth quarter of 2016. The reserves of the combined OASI and DI Trust Funds are projected to become depleted in 2033 under the intermediate assumptions of the 2014 Trustees Report.
This letter presents our estimates of the effects on the OASI and DI Trust Funds of enacting the temporary reallocation of the payroll tax rate proposed in the President’s Fiscal Year 2016 Budget. We estimate this reallocation will equalize the projected years of reserve depletion for the two trust funds to 2033. We base these estimates on the intermediate assumptions of the 2014 Trustees Report.
The President’s proposal would increase the total (employee plus employer) payroll tax rate for the DI Trust Fund by 0.9 percentage points, from 1.8 to 2.7 percent, for calendar years 2016 through 2020. The payroll tax rate for the OASI Trust Fund would be reduced by an equal amount so that the total OASDI payroll tax rate for these years would be unchanged.
The table below shows Social Security payroll tax rates for years 2015 and later under present law and under the President’s proposal.
Social Security Payroll Tax Rates
Calendar Years
Employees and employers each
Self-employed
OASDI
OASI
DI
OASDI
OASI
DI
Rates scheduled under present law
2015+
6.2%
5.3%
0.9%
12.4%
10.6%
1.8%
Rates proposed in the President’s FY2016 Budget
2015
6.2%
5.3%
0.9%
12.4%
10.6%
1.8%
2016-20
6.2
4.85
1.35
12.4
9.7
2.7
2021+
6.2
5.3
0.9
12.4
10.6
1.8
Note: Rates for 2015 and years after 2020 are unchanged under the proposal.
2
Under the President’s proposed reallocation of tax rates, we project the following:
 The financial status of the combined OASI and DI Trust Funds is essentially the same as under present law. The combined asset reserves of the OASI and DI Trust Funds would become depleted in 2033. After reserve depletion in 2033, tax income would be sufficient to cover 77 percent of cost. This percent drops to 72 by 2088.
 The asset reserves of the OASI Trust Fund would become depleted in 2033. After reserve depletion in 2033, tax income would cover 75 percent of cost. This percent drops to 70 by 2088.
 The asset reserves of the DI Trust Fund would become depleted in 2033. After reserve depletion in 2033, non-interest income would cover 88 percent of cost. This percent drops to 80 by 2088.
The table below shows Trust Fund ratios (the amount of trust fund asset reserves at the beginning of the year expressed as a percent of annual program cost for the year) for the OASI and DI Trust funds under current law and under the President’s proposed reallocation schedule, as well as those of the combined OASDI Trust Fund.
Calendar Year
Trust Fund Ratios
OASI
DI
OASDI Combined
Current Law
Proposal
Current Law
Proposal
2014
373
373
62
62
320
2015
359
359
39
39
306
2016
345
345
18
18
292
2017
329
322
---
37
277
2018
313
299
---
61
262
2019
297
276
---
88
248
2020
281
254
---
117
233
2021
265
232
---
147
219
2022
249
216
---
138
203
2023
232
199
---
127
187
2024
214
182
---
115
171
2025
196
165
---
103
154
2026
178
147
---
91
137
2027
159
129
---
78
119
2028
140
110
---
66
101
2029
120
90
---
55
83
2030
100
70
---
43
64
2031
79
48
---
32
44
2032
57
26
---
21
23
2033
34
4
---
11
2
2034
11
---
---
---
---
2035
---
---
---
---
---
3
We hope these estimates will be helpful. Please let us know if we may provide

[tech]

Yup...hard to read and the numbers at this time are meaningless, since there is very little chance of the budget going through without any changes or "compromises."

I really wish the government could be charged with embezzlement, as that is exactly what has occurred to Social Security.

[kappydell]

I have always planned as if there would not be any social security for me.

[prc-104]

This always gripes my buttola! Like Irregardlesss

taxes have to go up or benefits have to be cut. The US clearly can not borrow the money necessary to cover these benefit programs.

These shnooks who say Social Security is s BENEFIT, like it's a gift from .gov.

NO SIR!

I paid my hard earned money into it and what I get back is NOT A BENEFIT FROM THE GOVERNMENT.

Same thing as the folk who say my military retirement is a benefit. Screw them.

[rice paddy daddy]

Why is there always talk about SS going broke, but never about welfare and food stamps going broke?
The reason SSDI is in such bad shape is because Obama and his minions relaxed the standards to get enrolled when millions of Americans began to run out of unemployment benefits in 2009 and 2010. So many, many people unable to find a job and having no money coming in got enrolled in SSDI. That made Obama happy because the unemployment rate shrank and made him look good.

I paid into SS begining in 1964. I started collecting in 2014. 50 years worth of money taken from me. It is only an "entitlement" in the sense that I am entitled to my own damn money. If they wish, they can give me every penny I paid in plus interest and I will go away quietly into the night.

[610Alpha]

I am not counting on me getting my money back from the gubmint nor any interest. Most people would get way more from their money if they were allowed to keep it and pay down debt and then invest. Paying off a CC/Student loan vs being spent by the drunkards in DC.

Also wouldn't it be nice to have that money to pass on to your family when you pass away vs being given to someone you wouldn't want it going to.

I fully expect my pension plan to change...then eventually go away.

Funny story, a supervisor was trying to hire an IT guy in texas. They offered the guy $95K, guy says I am making $125K, supervisor responds but we have a pension...bahahahah. Take a $30K/yr. cut for possibility of a pension that can be changed or discontinued at any time. A bird in the hand is worth 2 in the bush. Heck the guy might be a great saver/investor or he could be a spender, either it wasn't a good offer.

[rockriver]

re 610's comment about his pension plan...

Georgia has one of the nations best retirement plans for teachers... not the best payout, but secure..
the TRS (teachers retirement plan) is holding something like 60 billion $
over the years the state gov't has made various efforts to incorporate that money into normal state funds and let the state be responsible for paying the pensions... so far these efforts have been defeated.
there is another effort cranking up right now.

there is also an effort to change the retirement plan to a 401k type plan...
both line up with 610's comment..

but here's the concern... that
1... the banks/stockmarkets/bonds that are currently holding the trs funds could go belly up
that scenario is a real one that we talk about here a lot...
2... the other concern is one that will happen.. the cost of goods will go up reducing the purchasing power of each retirement dollar.

[Patriotic Sheepdog]

re 610's comment about his pension plan...

Georgia has one of the nations best retirement plans for teachers... not the best payout, but secure..
the TRS (teachers retirement plan) is holding something like 60 billion $
over the years the state gov't has made various efforts to incorporate that money into normal state funds and let the state be responsible for paying the pensions... so far these efforts have been defeated.
there is another effort cranking up right now.

there is also an effort to change the retirement plan to a 401k type plan...
both line up with 610's comment..

but here's the concern... that
1... the banks/stockmarkets/bonds that are currently holding the trs funds could go belly up
that scenario is a real one that we talk about here a lot...
2... the other concern is one that will happen.. the cost of goods will go up reducing the purchasing power of each retirement dollar.

....and rr, you just made a good point. The interest being paid on funds being held by banks and even some safer mutual funds are very low. Couple this with inflation, despite what the gov says, and what you get from retirement may not go a very long way. That's also why storing food and supplies (tangibles) are such a good idea. Not just incase TSHTF, but for retirement when funds come up short. Trust me, a bucket of rice today will be a lot cheaper then that same bucket in 10-15-25 years.


Sent from my iPad using Tapatalk HD

[610Alpha]

re 610's comment about his pension plan...

Georgia has one of the nations best retirement plans for teachers... not the best payout, but secure..
the TRS (teachers retirement plan) is holding something like 60 billion $
over the years the state gov't has made various efforts to incorporate that money into normal state funds and let the state be responsible for paying the pensions... so far these efforts have been defeated.
there is another effort cranking up right now.

there is also an effort to change the retirement plan to a 401k type plan...
both line up with 610's comment..

but here's the concern... that
1... the banks/stockmarkets/bonds that are currently holding the trs funds could go belly up
that scenario is a real one that we talk about here a lot...
2... the other concern is one that will happen.. the cost of goods will go up reducing the purchasing power of each retirement dollar.

I live in IL and the state has already done what you mentioned is trying to be done in GA. I would much rather see them go from a Pension to a 401k type of plan before the state gets their money, at least that way the gubmint can't steal from them as easily. I told some teacher friends that their unions failed them, immediately I got the "oh no they didn't" to which I responded "yes they did because as soon as the state dipped into the pensions they should have striked and requested pensions be moved to a 401k" then I get the deer in the headlight look like "oh crap you're right, we got screwed".


The point of my story was more about do you take extra base pay now vs a promise to pay you a pension in the future that can be changed at any time. Regardless of whether or not it is fully funded.

We all should be looking at creating multiple streams of income, diversification if you will.

Back to Social Security -- I tell all my family members that are retiring get all that you can for me too cause I won't see any.