Social Security payback option eliminated

USNews via Yahoo ^ | Dec 9, 2010 | Emily Brandon

[nascarnation]

Retirees will no longer be able to get an interest-free loan from the Social Security trust fund, the Social Security Administration announced today. Effective on December 8, retirees will not be able to pay back benefits already received in exchange for higher Social Security payments going forward. Here's a look at how the new Social Security rules could impact your checks.

[nascarnation]

This was a little known, but very handy provision of Social Security. I certainly had planned to use it if I neared age 70 and my health remained good.

The hits just keep on coming.

[Young Werther]

Let's be fair. At least LBJ made sure that the Viet Nam war IS being properly funded.

We need to ask Peeloffski how much longer this war will continue!

[jpl]

The Bismarckian/Beveridgian welfare state is approaching its final days throughout the entire western world. The warning signs are as clear as a bell.

My advice to everyone is to start preparing for the inevitable now.

[CharlesWayneCT]

What allows the executive branch to simply change people’s benefits without a vote on a bill from congress?

I think we have a real problem in this country — the congress apparently passes a LOT of bills where the entire operation of the bill is up to the executive.

How else can a president act like a king and decide whether we can drill offshore or not, or decide which companies have to have compliant health care and which ones don’t, or whether social security recipients can fix their SS benefits.

On the merits, this would make sense if they were simply going to require the SS recipient to include interest payments when returning the money. It was never really fair to give the money interest-free.

[oh8eleven]

"The processing of these withdrawal applications is also a poor use of the agency's limited administrative resources in a time of fiscal austerity ..."
Oh yeah, a manpower shortage in the SS offices at a time when gov't employment has never been higher. BS BS BS.
In fact, with the WWII generation just about gone, and the Boomers just now getting onto SS, this is even more BS.

[oh8eleven]

in a time of fiscal austerity ..."
Fiscal austerity? In the US 'gubmint? LOL ...

[justlurking]

I certainly had planned to use it if I neared age 70 and my health remained good.

Damn, so did I.

[Eepsy]

Wonder how many other rules they’re going to change before I reach retirement....

[nascarnation]

On the merits, this would make sense if they were simply going to require the SS recipient to include interest payments when returning the money.

I would agree if I was getting an interest rate return on my hundreds of thousands of dollars of CONTRIBUTIONS I've made to the program over the last 42 years.

[PGalt]

Thanks for posting. Interesting.

[Baynative]

I just went through this rule with my tax guy when we did last year's returns. We planned to do the payback next spring.

It seems that every advantage that I might be able to exercise goes away or has an exemption that excludes me.

Can't re-fi because I'm elf employed and not working. Can't get unemployment because I'm self employed and not working. Can't get government stimulus checks because I'm self employed and not working.

[nascarnation]

I really don’t have an understanding of how much of SS is governed by “administrative” decisions and how much by laws.
I (stupidly) assumed features like the restart were in the law. I wonder how much of the program can be changed instantly by executive edict?

[FromLori]

Excellent point or how even a guarantee that the full amount you were forced to pay in was returned to your estate if you didn’t live long enough to collect it.

We are going to take it early anyway screw the govt. we are unsure how long it will be around and it would take years to make up the difference of the reduced benefits vs. getting a check at 62 at least that way some of the money we had to pay in will be returned to us.

[GailA]

Not only was there no COLA in 2010, there will be none in 2011, and those on SS will have even less in their checks next year...wealth sharing.

http://www.freerepublic.com/focus/f-bloggers/2640005/posts

[Da Coyote]

I eagerly await the day when the crowds in DC do the same thing to the Obamaloon and his sorry wife in their limo that was done to Prince Charles.

[The Comedian]

The Bismarckian/Beveridgian welfare state is approaching its final days throughout the entire western world. The warning signs are as clear as a bell.

(nodding)

Yup. I thank God every day that I will live to actually see the death of the central-authority nation-state. It's like living in Jerusalem in 1 BC.

Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

[CharlesWayneCT]

The expectation would be that you could have invested the SS money you were paid out, so you could pay back that interest.

Of course, the whole reason for turning in the money and starting over is that the increased payout is like getting a much larger interest rate. At the risk that you could still die before the larger payments made up for all the money you gave back.

[Libloather]

"The tactic involves filing a claim, investing the Social Security income into something relatively safe, and then after a few years, suspending benefits and repaying," said Mary Johnson, a policy analyst for the Senior Citizens League. "The Social Security Administration only required repayment of the benefits, not any interest or any fines. Thus seniors using this tactic pocketed all interest or earnings. Later on perhaps at age 70 they could then file a new claim and receive a boosted benefit."

The risk, Johnson said, is when investments go bad and seniors can't afford to repay the benefits.

"The last thing most seniors need today is to be betting their Social Security income on iffy investments," Johnson said.

Like Sosha Security?

http://www.cbsnews.com/stories/2010/12/10/politics/main7139638.shtml