Posted on 03/20/2013 4:46:25 PM PDT by blam
Social Security Official Presents Plan B: Raid The Retirement Fund
Bruce Krasting, My Take On Financial Events
March 20, 2013
Stephan Goss, the chief actuary for Social Security (SS) provided a detailed report on the status of the SS Disability Fund (DI) to the House of Representitives. The short story is that DI is going bust in a few years. The options to fix this problem were spelled out in the report. The extremes of the required “fix” range from an immediate cut in DI benefits of 16%, or an increase in DI payroll taxes of 20%.
Nothing new there. But, there is a “Plan B” for the DI Fund. The solution is to raid the SS Retirement Fund for the deficits at DI:
A simple tax-rate reallocation between OASI and DI, as was done in 1994, could equalize the financial prospects of the trust funds avoiding reserve depletion until 2033.
Note: “Simple tax-rate reallocation” means $40+b a year….
Bingo! The raid on the retirement fund results in no cuts in benefits, and no new taxes. What’s not to like about that result? The gutless wimps in D.C. would love to kick the can down the road a decade, therefore the Raid solution is an obvious choice. (The consequence of the Raid would be to reduce the expected life of the Retirement Trust Fund by as much as five years.)
This is not the first time this has come up. The Congressional Budget Office, in its 2/5/13 report on the SS Trust Funds had these words in a footnote:
CBO’s baseline assumes that the Commissioner will pay DI benefits in full even after the trust fund is exhausted.
Note: For a discussion of the CBO report, see my article from 2/10/13 (Link).
Okay, we now have two legs of the government
(snip)
(Excerpt) Read more at businessinsider.com ...
Too late, it was raided long, long ago.
Thieves.
SS was raided by Johnson for his “War On Poverty” and “The Great Society” not counting paying for the war in Vietnam.
I know several people who are collecting SS Disability, and there is absolutely nothing wrong with them; certainly nothing that prevents them from working, other than being lazy.
And this is accelerated because SS Disability is the permanent replacement for unemployment.
Personally I believe they are panicing too soon.
Waith until Obamacare has been in effect for 5 years before making a decision,
It is already built into Obamacare to eliminate older people from Social Security earlier through rationing and refusal of meds to frequent flyer older patients.If you need an expensive medication and are not what Obamacare rationers feel worth the effort they will be cutting you off.
Resulting in dying at a younger age and saving SS millions.
Sounds like a plan.
And as long as the markets allow for the creation of an unlimited amount of Baraqqi/Bernanke/Lew minibucks....
WHAT DIFFERENCE DOES IT MAKE?
Make ALL on DI prove they are disabled and entitled to have the funds...
visit each and everyone...I know many on DI that are working under the table for CASH...only and they are not disabled...
I've been totally deaf for a long time, and have never though of getting disability...but may have to if things don't improve soon...
people pay lawyers to get them disability...that should be stopped...make the people apply, and face a one on one interview..
this is just more B. HUSSEIN OBAMA BUYING VOTES..IT MUST BE STOPPED...
I also have lots of respect for one of my ham buddies in San Diego. He's blind. He makes a good living as a purchasing agent. When we had a 6.2 earthquake near El Centro, he was up all night coordinating emergency services via ham radio.
My oldest son had 4 open heart surgeries and terrible ADD. He managed to hold a job at Sears with limited hours. He had to walk to work because he was unsafe as a driver due to the ADD. He lived at my home until he passed at age 32 last year. The local social services office determined he wasn't eligible for any kind of disability assistance of any kind. You never want to outlive your children, but he would never have been able to earn enough to live independently. Most years he earned just enough to disqualify him as my "dependent", but his income didn't even cover the cost of his medications...never mind food/clothing/shelter/utilities.
Expensive smoke and mirrors to create the illusion that Obama is creating jobs and reducing unemployment.
I’m sure you must be very proud of all your son accomplished in his short life. Please accept my sympathy on his passing.
He was studying geology at Idaho State University to augment his primary interest in paleontology. He was better read than most grad students in literature...and remembered everything he read. I miss his insight and wit.
Let’s all get in...bankrupt it.
Isn’t half the country on SS disability now? It’s turned into another scam welfare operation for Many - not all, though.
They are planning to steal people’s retirement funds to replace Social Security when it goes bust.
its not what you expect when your child is born...that they will have a lesser life...but it is what God has given...
It's pot luck when you have kids. Enjoy the time you have with them.
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