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CBO - The Coming Raid on Social Security
Zerohedge ^ | 02/10/2013 | Bruce Krasting

Posted on 02/10/2013 6:06:40 PM PST by Rusty0604

The source of this information is the Congressional Budget Office (CBO); the following is how it will play out:

SS consists of two different pieces. The Old Age and Survivors Insurance (OASI) and Disability Insurance (DI). Both entities have their own Trust Funds (TF). OASI has a big TF that will, in theory, allow for SS retirement benefits to be paid for another 15+ years. On the other hand, the DI fund will run completely dry during the 1stQ of 2016. By current law, the DI benefits must be cut across-the-board by 30% on the day that the DI TF is exhausted. CBO projects that the DI trust fund will be exhausted during fiscal year 2016. Under current law, the Commissioner of Social Security may not pay benefits in excess of the available balances in a trust fund, borrow money for a trust fund, or transfer money from one trust fund to another. However, following rules in the Deficit Control Act of 1985 (section 257(b)), CBO's baseline assumes that the Commissioner will pay DI benefits in full even after the trust fund is exhausted.

(Excerpt) Read more at zerohedge.com ...


TOPICS: Business/Economy
KEYWORDS: socialsecurity
Options: raise taxes, cut benefits, confiscate retirement accounts.
1 posted on 02/10/2013 6:06:48 PM PST by Rusty0604
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To: Rusty0604

How do you raid an empty fund?


2 posted on 02/10/2013 6:07:35 PM PST by GeronL (http://asspos.blogspot.com)
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To: GeronL

Raid OISD to pay DI, or retirement to pay disability


3 posted on 02/10/2013 6:09:15 PM PST by Rusty0604
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To: Rusty0604

OISD = OASI


4 posted on 02/10/2013 6:10:46 PM PST by Rusty0604
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To: Rusty0604
So they are considering raiding a full bucket of worthless IOUs to make up for the mismanagement of the empty bucket of IOUs? It's irresponsibility stacked on irresponsibility.
5 posted on 02/10/2013 6:12:43 PM PST by KarlInOhio (Choose one: the yellow and black flag of the Tea Party or the white flag of the Republican Party.)
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To: GeronL

Exactly. Things like SS and transportation funds have been where they’ve been grabbing money all along.


6 posted on 02/10/2013 6:16:35 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Rusty0604

Did permanent disability totals balloon by 10 million over the last 10 years? I don’t think working conditions are that much worse now than 10 years ago.

AFAIK the threshold for disability qualification has been substantially lowered by the Obama regime. So a serious reform is needed. Only way that gets done is if it is allowed to go broke first.

Common House members, you hold the purse strings. Do your job.


7 posted on 02/10/2013 6:19:23 PM PST by entropy12 (The republic is doomed when people figure out they can get free stuff by voting democrats)
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To: KarlInOhio

As long as Baraq, Bernanke, and Geithner/Lew can create unlimited fake money, none of this will be a problem.

Of course eventually it’s gonna blow....


8 posted on 02/10/2013 6:19:38 PM PST by nascarnation (Baraq's economic policy: trickle up poverty)
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To: entropy12

For sure up until a few years ago, you didn’t have the tort lawyers branching out into SSDI cases.

Now their ads are on tv constantly.

Especially during daytime tv.


9 posted on 02/10/2013 6:21:53 PM PST by nascarnation (Baraq's economic policy: trickle up poverty)
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To: entropy12

nuber of people on DI has exploded under Obama. They really are breaking the system. I look to them to require individual retirement accounts to be required to buy their bonds, to make everyone fair of course.


10 posted on 02/10/2013 6:25:46 PM PST by Rusty0604
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To: entropy12

nuber of people on DI has exploded under Obama. They really are breaking the system. I look to them to require individual retirement accounts to be required to buy their bonds, to make everyone fair of course.


11 posted on 02/10/2013 6:27:13 PM PST by Rusty0604
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To: Rusty0604

It was raided back in the mid-nineties.


12 posted on 02/10/2013 6:35:22 PM PST by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: Rusty0604

“nuber of people on DI has exploded under Obama.”
_____________________________________________

I know a 50 year old guy here in the Philippines that is waiting on almost $50,000 of SSDI. (back injuries)
I guess they are very good at stalling on claims.
He has a lawyer working on it, but no luck so far.
He just left to go back to Pennsylvania and driving trucks, as he is now broke.


13 posted on 02/10/2013 6:44:48 PM PST by AlexW
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To: Rusty0604

There is NO TRUST FUND and there hasn’t been for a very long time.


14 posted on 02/10/2013 6:46:00 PM PST by eyeamok
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To: eyeamok

Same thing as the highway trust fund. They scoop some 30% right off the top before they even get around to blowing the money on other crap.


15 posted on 02/10/2013 6:51:31 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Rusty0604

I bet the make SS payments based on assets. Thus, many of us will lose it entirely.


16 posted on 02/10/2013 7:39:14 PM PST by SgtHooper (The last thing I want to do is hurt you. But it's still on the list.)
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To: Rusty0604

I’ve mentioned on here before that I’m a volunteer triage interviewer for a local food/clothing bank.

A good 90%+ of the people I interview do not have a job. Virtually all of them are on food stamps. Most of them are receiving at least one other type of government handout. Many are on unemployment. Many are on DI.

About the time nobama got elected, I noticed many of the people were complaining about their unemployment benefits running out. A goodly portion of them said, “My unemployment is running out and I’ll have no money. So I applied for DI.”

Now, DI has become the new welfare. It goes up just like Social Security and there’s no periodic policing to see if you still qualify.

This is a hugh, horrible ripoff of us taxpayers.


17 posted on 02/10/2013 7:47:55 PM PST by upchuck (America's at an awkward stage. Too late to work within the system, too early to shoot the bastards.)
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To: Rusty0604

Considering that they are “raiding” the taxes of my kids and their future kids anyway, why should I care about their accounting fictions?


18 posted on 02/10/2013 7:49:59 PM PST by BobL
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To: AlexW

why are good American taxpayers sending money to foreigners?.....if people want to collect from American taxpayers, they should at least be mandated to live here...either that or a substantial deduct from “their” govt money....


19 posted on 02/10/2013 7:50:48 PM PST by cherry
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To: SgtHooper

since husband and I don’t expect windfalls, I guess we’ll be okay....remember, there are people out there collecting their full pay if not over what they “earned” while working for the govt....some did 20 yrs in the service, which gave them a step up on getting more govt work on the outside....their retirements are enormous...


20 posted on 02/10/2013 7:53:09 PM PST by cherry
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To: Rusty0604
Both entities have their own Trust Funds (TF).

I call BS right there.

21 posted on 02/10/2013 7:56:20 PM PST by Hoodat ("As for God, His way is perfect" - Psalm 18:30)
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To: Hoodat

I think the trust funds consists of IOUs.


22 posted on 02/10/2013 8:14:08 PM PST by Rusty0604
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To: cherry

“why are good American taxpayers sending money to foreigners?”
________________________________________________________

What foreigners? The man is a US citizen truck driver and injured in America.
I do admit that if he is so disabled he should not be globetrotting.
I do know that he is taking many high-power pain killers.
He left yesterday on his way back to PA, where he will have to work.


23 posted on 02/10/2013 8:21:23 PM PST by AlexW
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To: Rusty0604

I now believe that the best option, and probably least-painful in the long-run, will be a bankruptcy/default by the Federal Gov’t.


24 posted on 02/10/2013 9:08:12 PM PST by PGR88
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To: Rusty0604
CBO projects that the DI trust fund will be exhausted during fiscal year 2016.

So all those discouraged unemployed that were added to the roles of the disabled will be out of luck come the next election. What will the RATs promise them.

25 posted on 02/10/2013 9:29:28 PM PST by Mike Darancette (Soylent Green is Boomers)
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To: SgtHooper

“I bet the make SS payments based on assets. Thus, many of us will lose it entirely.”

Yup. But only the “Very Fortunate” will lose it...of course, by then, “very fortunate” will be defined as those who have a roof over their heads with the thermostat set to over 62 in the winter in and under 90 in the summer.


26 posted on 02/10/2013 10:13:43 PM PST by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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