Top 5 Social Security Myths
Myth #1: Social Security is going broke.
Reality: There is no Social Security crisis. By 2023, Social Security will have a $4.6 trillion surplus (yes, trillion with a 'T'). It can pay out all scheduled benefits for the next quarter-century with no changes whatsoever.1 After 2037, it'll still be able to pay out 75% of scheduled benefits—and again, that's without any changes. The program started preparing for the Baby Boomers' retirement decades ago.2 Anyone who insists Social Security is broke probably wants to break it themselves.
Myth #2: We have to raise the retirement age because people are living longer.
Reality: This is a red-herring to trick you into agreeing to benefit cuts. Retirees are living about the same amount of time as they were in the 1930s. The reason average life expectancy is higher is mostly because many fewer people die as children than they did 70 years ago.3 What's more, what gains there have been are distributed very unevenly—since 1972, life expectancy increased by 6.5 years for workers in the top half of the income brackets, but by less than 2 years for those in the bottom half.4 But those intent on cutting Social Security love this argument because raising the retirement age is the same as an across-the-board benefit cut.
Myth #3: Benefit cuts are the only way to fix Social Security.
Reality: Social Security doesn't need to be fixed. But if we want to strengthen it, here's a better way: Make the rich pay their fair share. If the very rich paid taxes on all of their income, Social Security would be sustainable for decades to come.5 Right now, high earners only pay Social Security taxes on the first $106,000 of their income.6 But conservatives insist benefit cuts are the only way because they want to protect the super-rich from paying their fair share.
Myth #4: The Social Security Trust Fund has been raided and is full of IOUs
Reality: Not even close to true. The Social Security Trust Fund isn't full of IOUs, it's full of U.S. Treasury Bonds. And those bonds are backed by the full faith and credit of the United States.7 The reason Social Security holds only treasury bonds is the same reason many Americans do: The federal government has never missed a single interest payment on its debts. President Bush wanted to put Social Security funds in the stock market—which would have been disastrous—but luckily, he failed. So the trillions of dollars in the Social Security Trust Fund, which are separate from the regular budget, are as safe as can be.
Myth #5: Social Security adds to the deficit
Reality: It's not just wrong—it's impossible! By law, Social Security's funds are separate from the budget, and it must pay its own way. That means that Social Security can't add one penny to the deficit.8
Defeating these myths is the first step to stopping Social Security cuts. Can you share this list now?
Thanks for all you do.
Friday, July 30, 2010
Saturday, May 29, 2010
All Social Security Benefits to Go Electronic
Change is Coming
All Social Security Benefits to Go Electronic
By 2013, the checks will not be in the mail.
by: Carole Fleck | from: Bulletin | April 23, 2010
Recommend (2) Comments (7)SharePrint
EnlargeMillions of Social Security recipients who get their monthly checks by mail will instead receive them electronically as of March 1, 2013, the federal government has announced. The change will not affect about 85 percent of Social Security recipients, who already receive their payments electronically.
The switch is expected to save the federal government more than $300 million in mail and paper fees in the first five years. It will also cover veterans as well as railroad and federal civil service retirees.
The change from paper checks to electronic payments will begin earlier, on March 1, 2011, for new recipients who start collecting Social Security or other benefits as of that date.
Recipients who don’t have bank accounts will be able to enroll in the government’s Direct Express Debit MasterCard program. Prepaid debit cards will allow them to access their monthly payments.
AARP Executive Vice President Nancy LeaMond lauded the Obama administration for its efforts to increase efficiency, reduce the potential for fraud and abuse and save money.
“AARP appreciates the efforts initiated by the administration to modernize Social Security and other payment systems that millions of Americans rely on each and every day for their financial and retirement security,” she said.
She said in a statement that AARP will work closely with government officials to make sure that current and future recipients, including about 4 million people who don’t have bank accounts, are able to make the transition to receive their Social Security and other federal benefits electronically.
Carole Fleck is a senior editor at the AARP Bulletin.
All Social Security Benefits to Go Electronic
By 2013, the checks will not be in the mail.
by: Carole Fleck | from: Bulletin | April 23, 2010
Recommend (2) Comments (7)SharePrint
EnlargeMillions of Social Security recipients who get their monthly checks by mail will instead receive them electronically as of March 1, 2013, the federal government has announced. The change will not affect about 85 percent of Social Security recipients, who already receive their payments electronically.
The switch is expected to save the federal government more than $300 million in mail and paper fees in the first five years. It will also cover veterans as well as railroad and federal civil service retirees.
The change from paper checks to electronic payments will begin earlier, on March 1, 2011, for new recipients who start collecting Social Security or other benefits as of that date.
Recipients who don’t have bank accounts will be able to enroll in the government’s Direct Express Debit MasterCard program. Prepaid debit cards will allow them to access their monthly payments.
AARP Executive Vice President Nancy LeaMond lauded the Obama administration for its efforts to increase efficiency, reduce the potential for fraud and abuse and save money.
“AARP appreciates the efforts initiated by the administration to modernize Social Security and other payment systems that millions of Americans rely on each and every day for their financial and retirement security,” she said.
She said in a statement that AARP will work closely with government officials to make sure that current and future recipients, including about 4 million people who don’t have bank accounts, are able to make the transition to receive their Social Security and other federal benefits electronically.
Carole Fleck is a senior editor at the AARP Bulletin.
Tuesday, May 18, 2010
Social Security faces a projected $5.3 trillion shortfall over
May 17, 2010 (AP Online delivered by Newstex) -- Social Security faces a projected $5.3 trillion shortfall over the next 75 years. Options for improving the program's finances, with the percentage of the gap that would be eliminated:
--Immediately increase payroll taxes for workers and employers by 1.1 percentage points each, to 7.3 percent: 104 percent.
--Increase payroll taxes for workers and employers by 1 percentage point starting in 2022, and an additional percentage point starting in 2052: 103 percent.
--Increase payroll taxes for workers and employers by 1/20th of 1 percentage point each year for 20 years: 69 percent.
--Tax all wages including those above the current cap of $106,800, without providing additional benefits to high earners: 116 percent.
--Tax all wages including those above the current cap of $106,800, while providing increased benefits to high earners: 95 percent.
--Impose a new 5 percent tax on couples making more than $250,000 and individuals making more than $125,000: 62 percent.
--Reduce the annual cost-of-living increase in Social Security payments by 1 percentage point each year: 78 percent.
--Gradually increase the age when retirees qualify for full benefits from 67 to 68: 23 percent.
--Gradually increase the age when retirees qualify for full benefits from 67 to 70: 31 percent.
--Reduce Social Security payments by 5 percent for new beneficiaries in 2010 and later: 30 percent.
--__
Source: Senate Special Committee on Aging
Note: Social Security is financed by a 6.2 percent payroll tax on wages below $106,800 a year. Workers and employers each pay a 6.2 percent tax on employees' wages.
--Immediately increase payroll taxes for workers and employers by 1.1 percentage points each, to 7.3 percent: 104 percent.
--Increase payroll taxes for workers and employers by 1 percentage point starting in 2022, and an additional percentage point starting in 2052: 103 percent.
--Increase payroll taxes for workers and employers by 1/20th of 1 percentage point each year for 20 years: 69 percent.
--Tax all wages including those above the current cap of $106,800, without providing additional benefits to high earners: 116 percent.
--Tax all wages including those above the current cap of $106,800, while providing increased benefits to high earners: 95 percent.
--Impose a new 5 percent tax on couples making more than $250,000 and individuals making more than $125,000: 62 percent.
--Reduce the annual cost-of-living increase in Social Security payments by 1 percentage point each year: 78 percent.
--Gradually increase the age when retirees qualify for full benefits from 67 to 68: 23 percent.
--Gradually increase the age when retirees qualify for full benefits from 67 to 70: 31 percent.
--Reduce Social Security payments by 5 percent for new beneficiaries in 2010 and later: 30 percent.
--__
Source: Senate Special Committee on Aging
Note: Social Security is financed by a 6.2 percent payroll tax on wages below $106,800 a year. Workers and employers each pay a 6.2 percent tax on employees' wages.
Sunday, April 25, 2010
Social Security and other federal benefits payments will be made by direct deposit by 2013.
The Washington Post reports that most Social Security and other federal benefits payments will be made by direct deposit by 2013.
The decision will eliminate about 136 million paper checks sent by the Social Security Administration, Department of Veterans Affairs, Railroad Retirement Board and Office of Personnel Management.
The switch is part of a broader plan to shift away from paper-based payments and transactions, and it will require businesses using Federal Tax Deposit coupons to move to electronic tax payments. The Treasury also plans to cut the purchase of paper savings bonds through payroll sales. The plans should save taxpayers about $400 million in processing, postage and paper costs in the first five years.
Americans who enroll on or after March 1, 2011, for benefits payments will receive them by direct deposit or be enrolled in the government's Direct Express Debit MasterCard program if they do not provide bank account information. Beneficiaries now receiving payments will switch to direct deposit or the debit card by March 1, 2013, after agencies inform them of the changes, Treasury said.
Prior efforts at mandating direct payments have failed because the government had not established the debit card program for people who don't have bank accounts.
http://www.usdirectexpress.com/edcfdtclient/index.html
The Direct Express® card surcharge-free ATM network offers surcharge free ATM access at approximately 50,000 ATMs throughout the country including Comerica Bank, Charter One, Privileged Status, Alliance One, PNC Bank, MasterCard® ATM Alliance, and MoneyPass To find an ATM near you , please visit the Direct Express® card website at www.USDirectExpress.com or call the Customer Service Department toll free at 1 (888) 741-1115.
Even if you don't live near a Direct Express® card surcharge-free network ATM you can avoid fees by
Using your Direct Express® card at retail locations when you make purchases instead of getting cash at an ATM.
Getting cash back for free when you make purchases at many retail locations
Going to any bank or credit union that displays the MasterCard® acceptance mark and get cash from a teller free of charge.
It is important that you keep track of your deposits and how much you spend using your Direct Express® card. You can obtain balance information at no cost by calling the Direct Express® card Customer Service Department, 24 hours a day, 7 days a week, at 1 (888) 741-1115 (toll-free). You can view your account information at www.USDirectExpress.com or obtain balance information at any ATM that displays the MasterCard® acceptance mark, at no cost. You can also request free optional deposit notification and low balance alerts. For a monthly fee of $ .75, you may request that a monthly paper statement be mailed to you.
__._,_.___
The decision will eliminate about 136 million paper checks sent by the Social Security Administration, Department of Veterans Affairs, Railroad Retirement Board and Office of Personnel Management.
The switch is part of a broader plan to shift away from paper-based payments and transactions, and it will require businesses using Federal Tax Deposit coupons to move to electronic tax payments. The Treasury also plans to cut the purchase of paper savings bonds through payroll sales. The plans should save taxpayers about $400 million in processing, postage and paper costs in the first five years.
Americans who enroll on or after March 1, 2011, for benefits payments will receive them by direct deposit or be enrolled in the government's Direct Express Debit MasterCard program if they do not provide bank account information. Beneficiaries now receiving payments will switch to direct deposit or the debit card by March 1, 2013, after agencies inform them of the changes, Treasury said.
Prior efforts at mandating direct payments have failed because the government had not established the debit card program for people who don't have bank accounts.
http://www.usdirectexpress.com/edcfdtclient/index.html
The Direct Express® card surcharge-free ATM network offers surcharge free ATM access at approximately 50,000 ATMs throughout the country including Comerica Bank, Charter One, Privileged Status, Alliance One, PNC Bank, MasterCard® ATM Alliance, and MoneyPass To find an ATM near you , please visit the Direct Express® card website at www.USDirectExpress.com or call the Customer Service Department toll free at 1 (888) 741-1115.
Even if you don't live near a Direct Express® card surcharge-free network ATM you can avoid fees by
Using your Direct Express® card at retail locations when you make purchases instead of getting cash at an ATM.
Getting cash back for free when you make purchases at many retail locations
Going to any bank or credit union that displays the MasterCard® acceptance mark and get cash from a teller free of charge.
It is important that you keep track of your deposits and how much you spend using your Direct Express® card. You can obtain balance information at no cost by calling the Direct Express® card Customer Service Department, 24 hours a day, 7 days a week, at 1 (888) 741-1115 (toll-free). You can view your account information at www.USDirectExpress.com or obtain balance information at any ATM that displays the MasterCard® acceptance mark, at no cost. You can also request free optional deposit notification and low balance alerts. For a monthly fee of $ .75, you may request that a monthly paper statement be mailed to you.
__._,_.___
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