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How Galveston Opted Out of Social Security
Liberty Haven ^ | 2004 | Ed Myers

Posted on 11/30/2004 10:57:42 PM PST by BellStar

In south Texas, along the windswept Gulf Coast where multitudes of hurricanes have made landfall over the centuries, there are three history-filled, ahead-of-their-time counties: Galveston, Brazoria, and Matagorda.

Until the early 1980s government entities, such as cities and counties, had the right of opting out of Social Security and establishing their own retirement system. This option had been provided when the Social Security Act was passed in the thirties.

Galveston County in 1979 looked into this idea when then - County Attorney Bill Decker contacted Don Kebodeaux, highly successful Houston businessman, and asked him if he could devise a plan so that Galveston County could opt out of Social Security. At that time Social Security was on the verge of bankruptcy and no one knew what the future held. Don pondered the problem and called in his friend Rick Gornto, a leading financial expert, who was later to become his partner. These two hard-driving and foresighted businessmen, realizing the coming problems in Social Security, designed a new program for political subdivisions that would provide a retirement plan for employees that was many times better than the existing Social Security program. Satisfied with the new program, and in order to properly present and handle this program, these two Texas entrepreneurs organized several companies that became the First Financial Group.

http://www.libertyhaven.com/politicsandcurrentevents/healthcarewelfareorsocialsecurity/galveston.shtml

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


TOPICS: Business/Economy; Government; Miscellaneous
KEYWORDS: county; entrepreneurs; galveston; government; irs; optingout; program; reform; retiring; security; social; socialsecurity; taxes; texas

1 posted on 11/30/2004 10:57:43 PM PST by BellStar
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To: BellStar

http://www.libertyhaven.com/politicsandcurrentevents/healthcarewelfareorsocialsecurity/galveston.shtml


2 posted on 11/30/2004 10:58:03 PM PST by BellStar (Will you spend more on gifts this year than last year? Poll http://www.kemah.net)
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To: neverdem

Ping!


3 posted on 11/30/2004 10:59:46 PM PST by BellStar (Will you spend more on gifts this year than last year? Poll http://www.kemah.net)
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To: EGPWS

Ping!


4 posted on 11/30/2004 11:00:55 PM PST by BellStar (Will you spend more on gifts this year than last year? Poll http://www.kemah.net)
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To: BellStar
And for the highlight of the article

The plan that started in Galveston County ended the first year with a modest balance. Today, with over 5,000 employees from these three counties The Alternate Plan has grown to a very healthy and sizable portfolio. Those who retire after 20 years will receive three to four times the rate as under Social Security.

5 posted on 11/30/2004 11:02:51 PM PST by Hodar (With Rights, comes Responsibilities. Don't assume one, without assuming the other.)
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To: BellStar

Perhaps Glen Campbell had the right idea. ;~)


6 posted on 11/30/2004 11:04:50 PM PST by EGPWS
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To: BellStar
Until the early 1980s government entities, such as cities and counties, had the right of opting out of Social Security and establishing their own retirement system. This option had been provided when the Social Security Act was passed in the thirties.

I can't imagine the reason why in the early '80's that that right was revoked.

7 posted on 11/30/2004 11:06:48 PM PST by EGPWS
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To: Michael.SF.

Ping


8 posted on 11/30/2004 11:06:54 PM PST by BellStar (Will you spend more on gifts this year than last year? Poll http://www.kemah.net)
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To: BellStar

This story is not a secret in Washington, it's just something they've preferred to ignore with the help of the MSM enablers. Time to shout about it, also the success of the system in Chili.


9 posted on 11/30/2004 11:08:25 PM PST by Mister Baredog ((DO IT NOW, if you haven't put up a flag on your FR homepage yet,PLEASE))
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To: BellStar

Galveston, oh Galveston.


10 posted on 11/30/2004 11:11:45 PM PST by TheErnFormerlyKnownAsBig (You can turn your head away from the Berg video and still hear Al Queda's calls to prayer.)
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To: EGPWS
I can't imagine the reason why in the early '80's that that right was revoked.

Congress was scared that other counties would get smart and opt out their employees of S.S. Big government doesn't like kids that take their toys and go home...
11 posted on 11/30/2004 11:16:29 PM PST by ricer1
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To: ricer1
Big government doesn't like kids that take their toys and go home...

Although rhetorical, YOU have hit the head of the nail!!

12 posted on 11/30/2004 11:23:47 PM PST by EGPWS
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To: ancient_geezer

ping


13 posted on 11/30/2004 11:25:07 PM PST by beaversmom (The greatness of a man is measured by the fatness of his wife)
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To: anymouse
When (County Judge)Ray Holbrook, a quiet, soft-spoken Texan, and County Attorney Bill Decker, a man dedicated to the betterment of his county, saw the wisdom and foresight of this concept they took charge and shepherded the plan through its various stages.

All were Democrats at the time in Texas we had a 2 party system Conservative and Liberal Democrat.

Judge Ray Holbrook now retired and now
a Republican at Victory party for Nov election

Shown here grinning like a chessier Cat!

14 posted on 11/30/2004 11:54:53 PM PST by BellStar (Will you spend more on gifts this year than last year? Poll http://www.kemah.net)
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To: EGPWS

Because Galveston actually did it.


15 posted on 11/30/2004 11:57:48 PM PST by weegee (WE FOUGHT ZOGBYISM November 2, 2004 - 60 Million Voters versus 60 Minutes - BUSH WINS!!!)
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To: 1riot1ranger; Action-America; Aggie Mama; Alkhin; Allegra; American72; antivenom; Antoninus II; ...

HOUSTON PING


16 posted on 11/30/2004 11:58:47 PM PST by weegee (WE FOUGHT ZOGBYISM November 2, 2004 - 60 Million Voters versus 60 Minutes - BUSH WINS!!!)
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To: MeekOneGOP

Galveston County Ping!


17 posted on 12/01/2004 12:00:32 AM PST by BellStar (Will you spend more on gifts this year than last year? Poll http://www.kemah.net)
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To: Cableguy

Oing!


18 posted on 12/01/2004 12:03:40 AM PST by BellStar (Will you spend more on gifts this year than last year? Poll http://www.kemah.net)
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To: Phantom Lord

Ping!


19 posted on 12/01/2004 12:04:34 AM PST by BellStar (Will you spend more on gifts this year than last year? Poll http://www.kemah.net)
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To: Jibaholic

A Ping!


20 posted on 12/01/2004 12:05:22 AM PST by BellStar (Will you spend more on gifts this year than last year? Poll http://www.kemah.net)
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To: snarks_when_bored; kidd

Ping


21 posted on 12/01/2004 12:06:49 AM PST by BellStar (Will you spend more on gifts this year than last year? Poll http://www.kemah.net)
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To: BellStar

Alief ISD also does this. My understanding is that many Texas school districts are going this route.


22 posted on 12/01/2004 4:18:08 AM PST by TheMom (Hell yeah!)
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To: EGPWS
I can't imagine the reason why in the early '80's that that right was revoked.

I was still in my hometown of Galveston back then. If you will recall, Congress was controlled by the Democrats then.

They, the democRATS, were terrified that the government would lose many dollars in taxes, thus depleting the coffers they could dip their sticky fingers into.

Judge Holbrook was considered a hero to many people then.

23 posted on 12/01/2004 5:43:09 AM PST by Budge (<><)
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To: BellStar
When (County Judge)Ray Holbrook, a quiet, soft-spoken Texan, and County Attorney Bill Decker, a man dedicated to the betterment of his county, saw the wisdom and foresight of this concept they took charge and shepherded the plan through its various stages.

Imagine that! Public servants that actually "served".

Too bad there aren't many left.

24 posted on 12/01/2004 5:45:59 AM PST by Mulder (“The spirit of resistance is so valuable, that I wish it to be always kept alive" Thomas Jefferson)
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To: Flyer; humblegunner; Xenalyte; Eaker; stevie_d_64; PetroniDE; Humidston; weegee

Ping!


25 posted on 12/01/2004 6:22:11 AM PST by BellStar (Will you spend more on gifts this year than last year? Poll http://www.kemah.net)
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To: writer33

Send this to Bush some how I know he knows all about Galveston Co, TX. Ha Ha!


26 posted on 12/01/2004 6:26:03 AM PST by BellStar (Will you spend more on gifts this year than last year? Poll http://www.kemah.net)
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To: GulfBreeze

Heads up GulfBreeze!
Note Post number 14
above of Judge Ray Holbrook
Picture taken at the at Galveston Co.
Republican Party Victory party.

http://www.jarbobayoutimes.com/mark.mht


27 posted on 12/01/2004 6:34:25 AM PST by BellStar (Will you spend more on gifts this year than last year? Poll http://www.kemah.net)
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To: BellStar

Galveston. Oh, Galveston.


28 posted on 12/01/2004 6:45:17 AM PST by writer33 (The U.S. Constitution defines a conservative)
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To: BellStar
Thanks for the ping.

I am sure the success of the Galveston,Texas plan has been a major factor in President Bush's thinking on the privatization of Social insecurity.

29 posted on 12/01/2004 7:21:47 AM PST by Michael.SF. (Well, Kerry did win the exit polls)
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To: TheMom
My understanding is that many Texas school districts are going this route.

The ones in Central Texas have, for sure.

I've worked for the local school district for the last few years, and I have no SS taken from my check, it all goes into a retirement account through Teachers Retirement Association of Texas.

(Before anyone asks, I don't indoctrinate the little buggers, I just feed 'em! :)

30 posted on 12/01/2004 7:31:47 AM PST by MamaTexan (I am NOT a 'legal entity')
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To: EGPWS
I can't imagine the reason why in the early '80's that that right was revoked.

Simple, IMHO; the self-sufficient don't need Democrats.

31 posted on 12/01/2004 7:34:26 AM PST by JimRed (Investigate, overturn and prosecute vote fraud; turn more counties red!)
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To: Michael.SF.

Success seems to fall on deaf ears when it come time to let the American people know what they should know. The media could do some investigation on its own of the various retirement program successes, and there are many, but don't hold your breath, they would prefer to bash bush.


32 posted on 12/01/2004 7:40:33 AM PST by wita
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To: BellStar
bump! bump! bump! :^D

33 posted on 12/01/2004 8:12:50 AM PST by MeekOneGOP (There is only one GOOD 'RAT: one that has been voted OUT of POWER !! Straight ticket GOP! ©)
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To: wita

Media Ping!!!!!!!!!


34 posted on 12/01/2004 8:14:32 AM PST by BellStar (Will you spend more on gifts this year than last year? Poll http://www.kemah.net)
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To: EGPWS

Yeah, but then he decided he'd be better off drinking himself half to death.


35 posted on 12/01/2004 9:54:21 AM PST by Chi-townChief
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To: BellStar; Flyer; Eaker; humblegunner; dix; thackney; TheMom; Xenalyte; pax_et_bonum; PetroniDE; ...

Can you imagine if Harris County would raise an eyebrow at this???

Coolll...


36 posted on 12/01/2004 3:55:55 PM PST by stevie_d_64 (Houston Area Texans)
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To: weegee
oh ... my ... gosh!! It works!! Social Security didn't save the day and the sky is NOT falling!! :::faint:::
37 posted on 12/02/2004 7:50:35 PM PST by exhaustedmomma
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To: exhaustedmomma

You won't hear those comments from democrat congressional demagogs.


38 posted on 12/03/2004 4:55:18 AM PST by wita
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To: BellStar

Bump --- again


39 posted on 01/12/2005 6:30:15 AM PST by Budge (<><)
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