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Showing posts with label social secuity. medicare.MSAC.seniors. Show all posts
Showing posts with label social secuity. medicare.MSAC.seniors. Show all posts
Wednesday, August 28, 2013
Social Security Safety Blanket
Friday, December 30, 2011
chained CPI
Dear Howard,
After two years with a zero COLA, you will receive a small increase in 2012. But Members of Congress from both parties say it is way too high — and that the COLA needs to be permanently reduced.
After a little over 30 years, they suddenly want to CHANGE the way your COLA is calculated and begin using something the economists call a "chained CPI" to calculate the COLA. This will "save" the government billions of dollars in Social Security and military retirement benefits but, to you and me, it is nothing more than a cut in Social Security benefits.
If the chained CPI had been used, the 2012 COLA would be about 20% LESS than it is! And, over a typical retirement, the average beneficiary will see their benefits reduced by over $20,000! This is an example of the kind of "back door cut" to Social Security that CAN AND WILL happen as President Obama and the special House/Senate Debt Reduction "Super Committee" look for ways to cut the deficit in the coming months.
Now, finally, we have legislation before Congress that could put the promises you received in writing and protect against these kinds of cuts! If we can pass this bill, your Social Security benefits will be guaranteed, in writing, and you will receive a certificate GUARANTEEING they will be paid.
After two years with a zero COLA, you will receive a small increase in 2012. But Members of Congress from both parties say it is way too high — and that the COLA needs to be permanently reduced.
After a little over 30 years, they suddenly want to CHANGE the way your COLA is calculated and begin using something the economists call a "chained CPI" to calculate the COLA. This will "save" the government billions of dollars in Social Security and military retirement benefits but, to you and me, it is nothing more than a cut in Social Security benefits.
If the chained CPI had been used, the 2012 COLA would be about 20% LESS than it is! And, over a typical retirement, the average beneficiary will see their benefits reduced by over $20,000! This is an example of the kind of "back door cut" to Social Security that CAN AND WILL happen as President Obama and the special House/Senate Debt Reduction "Super Committee" look for ways to cut the deficit in the coming months.
Now, finally, we have legislation before Congress that could put the promises you received in writing and protect against these kinds of cuts! If we can pass this bill, your Social Security benefits will be guaranteed, in writing, and you will receive a certificate GUARANTEEING they will be paid.
Saturday, May 7, 2011
SCRAP T HE CAP
Poll after poll has shown that voters are willing to pay higher taxes to preserve and strengthen Social Security. But most of the gap can be closed without raising taxes on ordinary workers—just those with earnings above the taxable earnings cap of $106,800.
For example, gradually restoring the cap to again cover 90% of earnings for workers, and eliminating it altogether on employer side, would be enough to shrink the long-term deficit by 69%, while still preserving the link between these workers’ contributions and the benefits they receive.
Raising or eliminating the cap on taxable earnings is appropriate because almost all the earnings growth (and the growth in life expectancy) in recent years has been at the top.
For example, gradually restoring the cap to again cover 90% of earnings for workers, and eliminating it altogether on employer side, would be enough to shrink the long-term deficit by 69%, while still preserving the link between these workers’ contributions and the benefits they receive.
Raising or eliminating the cap on taxable earnings is appropriate because almost all the earnings growth (and the growth in life expectancy) in recent years has been at the top.
Sunday, April 10, 2011
Borrowed Social Security
Of the nearly $14.2 trillion in debt, roughly $5 trillion is money the government has borrowed from other accounts, mostly from Social Security revenues, according to federal figures. Several major policies from the past decade when Republicans controlled the White House and Congress — tax cuts, a Medicare prescription-drug benefit and wars in Iraq and Afghanistan — account for more than $3.2 trillion.
Saturday, April 9, 2011
What Motivated FDR to Push For the Social Security Act
CBS News.comCBS Evening NewsThe Early Show48 Hours Mystery60 MinutesSunday
Posted by Anthony Mason 2 comments .
0diggsdigg ShareE-mailPrintFont . "It was definitely controversial at the time." That's how historian Doris Kearns Goodwin describes President Franklin Roosevelt's battle to enact Social Security legislation in the 1930's.
We went to Goodwin, author of "No Ordinary Time: Franklin and Eleanor Roosevelt: The Home Front in World War II" for some perspective as Congress debates whether to raise the retirement age for the system, now 66, up to 69 or 70.
Goodwin says there were two motivating factors behind FDR's push for the Social Security Act. First, "there was an immediate need to do something about older people who were devastated by the depression." But more broadly "what he wanted to do was to establish a principal that somehow if people had worked all their lives, we the Americans owed them security."
Baby Boom to Bust: Time to Raise Retirement Age?
Another intention was to get older workers to retire, so younger workers could get jobs. "And it's ironic today that we're in the opposite direction in wanting older people to work longer, so that we can keep paying them."
But no one knew then how significantly life expectancy would grow. More than 53 million Americans now receive Social Security payments. "At that time, in 1930," Goodwin says, "only 6 percent of the people were over the age of 65."
When he signed the legislation in 1935, FDR understood the importance of the moment. "It seems to me," he said, "that if the Senate and the House of Representatives in this long and arduous session have done nothing more than pass this Social Security Act, the session will be regarded as historic for all time."
But Goodwin says even FDR could not have realized how Social Security would become some imprinted on the minds of the American people.
"These politicians have a lot of challenges on their hands to figure out how to deal with this sacred institution."
. -2009 November 27, 2010 4:12 PM EST
Social Security is the retirement system of the working class of the United States weather we like it or not. It has to be funded regardless of the financial drain on the Government. As long as we see it as an entitlement and not as a welfare program it will survive. But we need to revise the criteria on who is actually entitled to receive funds from it. If you have never paid into it then you should never be entitled to receive any funds from it. Thats simple enough. You should also have to be a US citizen.
Reply to this comment ...by cktirumalai November 24, 2010 8:59 AM EST
In introducing Social Security, Franklin Roosevelt had the demographic advantage that in 1930 life expectancy was such that only 6% of Americans were over 65. Even so I am sure that at the time a good many Americans thought Government "entitlement" programs of that kind, despite the misery of the Depression, a step entirely in the wrong direction, a position which has its supporters today.
But with people living longer now (and Medicare requiring more money), the proportion of workers to the retired keeps getting smaller, though not so alarmingly as in, say, Japan. It is a Gordian knot.
Candadai Tirumalai
.
Posted by Anthony Mason 2 comments .
0diggsdigg ShareE-mailPrintFont . "It was definitely controversial at the time." That's how historian Doris Kearns Goodwin describes President Franklin Roosevelt's battle to enact Social Security legislation in the 1930's.
We went to Goodwin, author of "No Ordinary Time: Franklin and Eleanor Roosevelt: The Home Front in World War II" for some perspective as Congress debates whether to raise the retirement age for the system, now 66, up to 69 or 70.
Goodwin says there were two motivating factors behind FDR's push for the Social Security Act. First, "there was an immediate need to do something about older people who were devastated by the depression." But more broadly "what he wanted to do was to establish a principal that somehow if people had worked all their lives, we the Americans owed them security."
Baby Boom to Bust: Time to Raise Retirement Age?
Another intention was to get older workers to retire, so younger workers could get jobs. "And it's ironic today that we're in the opposite direction in wanting older people to work longer, so that we can keep paying them."
But no one knew then how significantly life expectancy would grow. More than 53 million Americans now receive Social Security payments. "At that time, in 1930," Goodwin says, "only 6 percent of the people were over the age of 65."
When he signed the legislation in 1935, FDR understood the importance of the moment. "It seems to me," he said, "that if the Senate and the House of Representatives in this long and arduous session have done nothing more than pass this Social Security Act, the session will be regarded as historic for all time."
But Goodwin says even FDR could not have realized how Social Security would become some imprinted on the minds of the American people.
"These politicians have a lot of challenges on their hands to figure out how to deal with this sacred institution."
. -2009 November 27, 2010 4:12 PM EST
Social Security is the retirement system of the working class of the United States weather we like it or not. It has to be funded regardless of the financial drain on the Government. As long as we see it as an entitlement and not as a welfare program it will survive. But we need to revise the criteria on who is actually entitled to receive funds from it. If you have never paid into it then you should never be entitled to receive any funds from it. Thats simple enough. You should also have to be a US citizen.
Reply to this comment ...by cktirumalai November 24, 2010 8:59 AM EST
In introducing Social Security, Franklin Roosevelt had the demographic advantage that in 1930 life expectancy was such that only 6% of Americans were over 65. Even so I am sure that at the time a good many Americans thought Government "entitlement" programs of that kind, despite the misery of the Depression, a step entirely in the wrong direction, a position which has its supporters today.
But with people living longer now (and Medicare requiring more money), the proportion of workers to the retired keeps getting smaller, though not so alarmingly as in, say, Japan. It is a Gordian knot.
Candadai Tirumalai
.
Tuesday, March 29, 2011
Social Security beneficiaries may not be seeing an increase in their paid benefits for a third year in a row.
The lack of funding will impact millions of retired and disabled people in the United States.
A slight cost-of-living adjustment (COLA) is being projected by the government for Social Security benefits next year for the first time since 2009. However, rising Medicare costs will cancel out any increase in payments.
About 45 million people, or one in seven in the nation, receive both Medicare and Social Security. By law, beneficiaries have their Medicare Part B premiums, which cover doctor visits, deducted from their Social Security payments each month.
When Medicare premiums increase more than Social Security payments, millions living on fixed incomes don't get raises. However, they don�t get pay cuts either, because a provision prevents higher Part B premiums from reducing Social Security payments for most people.
David Certner of AARP estimates that as many as three-fourths of beneficiaries will have their entire Social Security increase gobbled up by rising Medicare premiums next year.
"You just don't have the words to say how much this impacts a person," said Joyce Trebilcock, a retired legal secretary.
Trebilcock, 65, said Social Security is her primary source of income. She receives $1,262 in Social Security payment each month, with more than $500 going to pay the mortgage.
"I've cut back on about everything I can, and I take the rest out of my savings," Trebilcock said. "Thank God I've got that. That's going to run out before long, at the rate I'm going. ... I have no idea what I'm going to do then."
Social Security recipients spend, on average, 9 percent of their benefits on Medicare Part B premiums, plus 3 percent on premiums for the Medicare prescription drug program.
"We could very well be entering a period where we're all stuck with flat benefits because of the growth in health care costs," said Mary Johnson, a policy analyst at The Senior Citizens League.
Social Security COLAs are determined each year by a government measure of inflation. When consumer prices go up, payments go up. When consumer prices fall, payments stay fixed until prices recover. There had been a COLA every year from 1975 through 2009.
Medicare Part B premiums must be set each year to cover 25 percent of program costs. They have remained at 2009 levels for about 75 percent of beneficiaries because there was no increase in Social Security. The 2009 premium levels, which are still paid by about three-fourths of beneficiaries, are $96.40 a month.
"That little raise helps us," said Estelle Jones, 66, of St. Paul, Minn. "Food, heating bills, water bill, all that stuff has gone up. ... All my medicines are very expensive, and every month I have to figure out how I am going to pay for them.
A slight cost-of-living adjustment (COLA) is being projected by the government for Social Security benefits next year for the first time since 2009. However, rising Medicare costs will cancel out any increase in payments.
About 45 million people, or one in seven in the nation, receive both Medicare and Social Security. By law, beneficiaries have their Medicare Part B premiums, which cover doctor visits, deducted from their Social Security payments each month.
When Medicare premiums increase more than Social Security payments, millions living on fixed incomes don't get raises. However, they don�t get pay cuts either, because a provision prevents higher Part B premiums from reducing Social Security payments for most people.
David Certner of AARP estimates that as many as three-fourths of beneficiaries will have their entire Social Security increase gobbled up by rising Medicare premiums next year.
"You just don't have the words to say how much this impacts a person," said Joyce Trebilcock, a retired legal secretary.
Trebilcock, 65, said Social Security is her primary source of income. She receives $1,262 in Social Security payment each month, with more than $500 going to pay the mortgage.
"I've cut back on about everything I can, and I take the rest out of my savings," Trebilcock said. "Thank God I've got that. That's going to run out before long, at the rate I'm going. ... I have no idea what I'm going to do then."
Social Security recipients spend, on average, 9 percent of their benefits on Medicare Part B premiums, plus 3 percent on premiums for the Medicare prescription drug program.
"We could very well be entering a period where we're all stuck with flat benefits because of the growth in health care costs," said Mary Johnson, a policy analyst at The Senior Citizens League.
Social Security COLAs are determined each year by a government measure of inflation. When consumer prices go up, payments go up. When consumer prices fall, payments stay fixed until prices recover. There had been a COLA every year from 1975 through 2009.
Medicare Part B premiums must be set each year to cover 25 percent of program costs. They have remained at 2009 levels for about 75 percent of beneficiaries because there was no increase in Social Security. The 2009 premium levels, which are still paid by about three-fourths of beneficiaries, are $96.40 a month.
"That little raise helps us," said Estelle Jones, 66, of St. Paul, Minn. "Food, heating bills, water bill, all that stuff has gone up. ... All my medicines are very expensive, and every month I have to figure out how I am going to pay for them.
Sunday, February 27, 2011
Questions on social security
Top 25 Social Security Questions
Confused about when to claim or whether you're eligible for benefits? We have answers
by: Stan Hinden | from: AARP Bulletin | December 1, 2010
EnlargePrintComments (359)ShareRecommend (192) En español | Here are the most frequently asked questions about Social Security that AARP has received from you.
1. I am about to turn 62 and plan to file for Social Security. How do I get started?
You should apply three months before you want to start collecting. Sign up online or call 1-800-772-1213. Here are some documents you may have to produce: your Social Security card or a record of the number; your birth certificate; proof of U.S. citizenship or lawful alien status; military discharge papers if you served before 1968; and last year's W-2 tax form or tax return if you're self-employed.
•Social Security: It's not just for the retired. Read
•Social Security benefits for a former spouse. Read
•10 things You should know about Social Security. Read
•Send your questions to the Social Security mailbox. Do
2. How is my Social Security benefit calculated?
Benefits are based on the amount of money you earned during your lifetime – with an emphasis on the 35 years in which you earned the most. Plus, lower-paid workers get a bigger percentage of their preretirement income than higher-paid workers. In 2010, the average monthly benefit for retirees is $1,172.
3. If I remarry, can I still collect Social Security benefits based on my deceased first husband's record?
You can — subject to several rules. In general, you cannot receive survivor benefits if you remarry before age 60 unless that marriage ends, too, whether by annulment, divorce or death of your new husband. If you remarry after age 60 (50 if disabled), you can still collect benefits on your former spouse's record. After you reach 62, you may get retirement benefits on the record of your new spouse if they are higher.
4. Why won't retirees get a cost-of-living adjustment for 2011? Many of us count on this for food, medicine and other bills.
COLAs are based on the consumer price index, which tracks inflation. Because inflation has been flat, according to the CPI, there will be no benefit increase — for the second year in a row. AARP is calling on Congress to provide beneficiaries with financial relief.
5. I am 56 and receive Social Security disability benefits. At what point will I switch to regular Social Security? Will the monthly amount change?
When you reach full retirement age, your disability benefits will automatically convert to retirement benefits. The amount will remain the same.
What if someone dies before they've applied for benefits?>>
6. My friend died at 66. She worked full time and had not applied for benefits. What happens to the money she contributed to Social Security? Can her children claim benefits?
The money people contribute goes into a fund from which benefits are paid to eligible workers and their families. These include a widower, a surviving divorced husband, dependent parents, disabled children, and children if they have not aged out.
7. My husband and I are getting a divorce. He wants the settlement agreement to say I will not get his Social Security benefits. Can he do that?
No, he has no control over your future benefits. You can qualify for a divorced spouse's benefits if you were married at least 10 years, are now unmarried, are 62 or older, and if any benefit from your own work record would be less than the divorced spouse's benefit.
8. Cleaning out my mother's home after her death, we found Social Security checks from the 1980s. Can we cash them?
No. The checks are negotiable for only 12 months after issue.
9. My man and I have lived together for over seven years. If he dies, can I collect his Social Security benefits?
If your state recognizes your common-law marriage, then you'll likely be eligible for survivor benefits. But you'll have to provide evidence that includes sworn statements, mortgage or rent receipts, or insurance policies.
10. Do my Social Security contributions go into a personal retirement account for me and earn interest?
Although many people think so, the answer is no. Social Security operates under a pay-as-you-go system, which means that today's workers pay for current retirees and other beneficiaries. Workers pay 6.2 percent of their wages up to a cap of $106,800; employers pay the same. The money that younger people contribute will pay for our benefits when we retire.
Will the U.S. government repay the Social Security trust fund?>>
11. How much money does the U.S. government owe to the Social Security trust fund, and will it be repaid?
To prepare for the boomers' retirement, Social Security has collected more in taxes than it pays in benefits. Surplus funds go into the trust fund and are invested in U.S.-guaranteed Treasury bonds. In 2009, the trust fund held $2.5 trillion in bonds and earned 4.9 percent in interest. These bonds are just as real as U.S. Treasury bonds held by mutual funds or foreign banks. Ultimately, it's up to the American people to ensure the government keeps its promise to retirees, just as it would to other investors.
12. I have a pension from the Army. Will that affect my Social Security benefits?
It will not. You can get both your Social Security benefits and your military pension. If you served in the military before 1957, you did not pay Social Security taxes, but you will receive special credit for some of that service. Special credits also are available to people who served from 1957 to 1967 and from 1968 to 2001.
13. I didn't work enough to qualify for Social Security. My husband gets it, but he is ill and may not live much longer. Will I be able to collect benefits?
Yes, but your benefit will depend on your age and situation: If you are at full retirement age or older, you'll get 100 percent of your deceased husband's benefit. A widow or widower between 60 and full retirement age receives a reduced benefit.
14. Is it true that some people are collecting Social Security benefits who never paid into the system?
Social Security is an earned benefit. In order to collect a retirement benefit, a worker must pay into the system for at least 10 years. In some cases, nonworking family members, such as a spouse, may be eligible for benefits based on the worker's record. Tough rules in place assure that only legal residents can collect Social Security benefits.
15. I filed for Chapter 13 bankruptcy after being laid off. Do Social Security benefits count as income in bankruptcy, or are they protected?
Your benefits are protected. Social Security is excluded from the calculation of disposable income when setting up a debtor repayment plan.
What you should know about your benefits if your spouse dies. >>
16. My husband died recently. Can I choose between my own benefit and that as a widow? Can I collect both?
Eligibility for a widow's benefit begins at age 60, or 50 if you are disabled. If you are full retirement age, your survivor benefit will be 100 percent of his benefit; if you take it early, the amount will be reduced. You can switch to your own benefit as early as 62. In any event, you can only get one benefit, whichever is higher.
17. I began drawing Social Security at age 62 in 2006, but I'm still working. Since I'm still paying Social Security taxes, will my benefits increase?
If your latest work years are among your highest-earning years, the SSA refigures your benefit and pays you any increase due. This is automatic, with new benefits starting in December of the following year.
18. My wife is 62 and collects Social Security based on her own work record. Can she receive spousal benefits based on my record when I retire in a few years?
If she is eligible for both benefits, yours and hers, Social Security will pay her own benefits first. If she is due additional benefits, she will get a combination of benefits equaling the higher spousal benefit.
19. Why would changes in Social Security be considered as a way to help balance the federal budget?
Some policymakers say all spending, including Social Security, should be cut. Social Security has not contributed to the deficit. In fact, the trust fund is projected to reach $4.3 trillion by 2023. AARP believes that Social Security benefits should not be targeted to reduce the deficit.
20. If I retire to a foreign country, can I have my Social Security benefits sent there?
If you are a U.S. citizen, you may receive your benefits in most foreign countries, usually by check or direct deposit. If you are not a U.S. citizen, the answer is more complicated, with certain rules applying to certain countries. For specifics, see the Social Security publication "Your Payments While You Are Outside the United States."
Can I pay back my benefits to receive a higher payment?>>
21. I started collecting Social Security at 62. I heard that if I changed my mind, I could pay back the amount I'd collected and get a higher payment. Is that possible?
That used to be true, but the Social Security Administration just published new regulations that curtail this option. Now, if you want to suspend your benefits, you must do so within 12 months after first receiving them. According to Social Security, 85 to 90 percent of beneficiaries who withdraw their applications do so within this time frame anyway. The new rules, which became effective Dec. 8, also specify that beneficiaries are limited to one refiling in a lifetime.
22. Can I collect Social Security and unemployment compensation at the same time?
Yes. Unemployment benefits aren't counted as wages under Social Security's annual earnings test, so you'd still receive your benefit. However, the amount of your unemployment benefit could be cut if you receive a pension or other retirement income, including Social Security and railroad retirement benefits. Contact your state unemployment office for information on whether your state applies a reduction.
23. I am 63 and collecting Social Security. If I work, will my benefit be cut?
It depends on your income. Between age 62 and the start of the year when you reach full retirement age, $1 in benefits is withheld for every $2 you earn above a limit, which is $14,160 in 2010. In the year you reach full retirement age, $1 is withheld for every $3 above another limit, $37,680 in 2010. In your birthday month, the limits go away — and your benefit will be recalculated upward to compensate for the money that was withheld.
24. I'm 50. Will Social Security be there when I retire?
The Social Security trust fund, where accumulated assets are held, currently contains about $2.5 trillion. According to the system's board of trustees, that money and continuing tax contributions will allow payment of all benefits at current rates until 2037. After that, there still will be enough tax revenue coming in to pay about 78 percent of benefits. Congress is being urged to make financial fixes to Social Security to ensure it will be there for you.
25. I know I can start collecting Social Security at age 62. But should I?
That depends. If you're healthy and can afford it, you should consider waiting until you reach your full retirement age of 66, or even 70. Here's why.
By law, the age when workers can qualify for full benefits is gradually increasing, from 65 to 67. (It will be 67 for anyone born after 1960.) If you claim benefits before reaching full retirement age, they'll be reduced. That's because the goal set by Congress is to pay the same lifetime benefits to an individual regardless of when they're initially claimed.
So let's say you claim benefits at age 62 and get $1,000 a month. If you can wait until you're 66, you'll get at least 33 percent more ($1,333). And if you can wait until you're 70, you'll get at least 75 percent more ($1,750).
Social Security determines the amount of your benefits based, in part, on your highest 35 years of earnings. So you may get a larger monthly benefit if your extra years of work are your top earning years.
Stan Hinden is a retired Washington Post financial writer and author of How to Retire Happy: The 12 Most Important Decisions You Must Make Before You Retire.
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Where
AARP StandsOur Fight: Keeping Social Security StrongSocial Security didn't cause the current deficit, so it shouldn't be used to fix it. Join other AARP members in saying: “Don't target Social Security for unfair benefit cuts.” read
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Please wait while we perform your request.Reply You voted Abuse Reported Report Abuse Score: 0 Name withheld Carola5920 4:35 PM on 2/26/2011
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regarding AARPs statemnt. SS will only continue to mrecalculate a new amount each Dec up to your 70th B day. After that, there are no more increases.
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Please wait while we perform your request. Score: 0 Name withheld 7:38 AM on 2/26/2011
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Please wait while we perform your request.Reply You voted Abuse Reported Report Abuse Score: -1 Name withheld CEgg1939 10:11 PM on 2/25/2011
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Regarding AARP's statement:
17. I began drawing Social Security at age 62 in 2006, but I'm still working. Since I'm still paying Social Security taxes, will my benefits increase?
If your latest work years are among your highest-earning years, the SSA refigures your benefit and pays you any increase due. This is automatic, with new benefits starting in December of the following year.
Well, that is my case. I continue to work yearly, age 71, making more per year than I did in the 35 years previous. Still, for the last 2+ years, Social Security has not adjusted my monthly check. I called them twice -- same answer -- it will be adjusted in December, but it never is. Has anyone else had this problem??? Is there any recourse to this???
Thanks. Charles
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Confused about when to claim or whether you're eligible for benefits? We have answers
by: Stan Hinden | from: AARP Bulletin | December 1, 2010
EnlargePrintComments (359)ShareRecommend (192) En español | Here are the most frequently asked questions about Social Security that AARP has received from you.
1. I am about to turn 62 and plan to file for Social Security. How do I get started?
You should apply three months before you want to start collecting. Sign up online or call 1-800-772-1213. Here are some documents you may have to produce: your Social Security card or a record of the number; your birth certificate; proof of U.S. citizenship or lawful alien status; military discharge papers if you served before 1968; and last year's W-2 tax form or tax return if you're self-employed.
•Social Security: It's not just for the retired. Read
•Social Security benefits for a former spouse. Read
•10 things You should know about Social Security. Read
•Send your questions to the Social Security mailbox. Do
2. How is my Social Security benefit calculated?
Benefits are based on the amount of money you earned during your lifetime – with an emphasis on the 35 years in which you earned the most. Plus, lower-paid workers get a bigger percentage of their preretirement income than higher-paid workers. In 2010, the average monthly benefit for retirees is $1,172.
3. If I remarry, can I still collect Social Security benefits based on my deceased first husband's record?
You can — subject to several rules. In general, you cannot receive survivor benefits if you remarry before age 60 unless that marriage ends, too, whether by annulment, divorce or death of your new husband. If you remarry after age 60 (50 if disabled), you can still collect benefits on your former spouse's record. After you reach 62, you may get retirement benefits on the record of your new spouse if they are higher.
4. Why won't retirees get a cost-of-living adjustment for 2011? Many of us count on this for food, medicine and other bills.
COLAs are based on the consumer price index, which tracks inflation. Because inflation has been flat, according to the CPI, there will be no benefit increase — for the second year in a row. AARP is calling on Congress to provide beneficiaries with financial relief.
5. I am 56 and receive Social Security disability benefits. At what point will I switch to regular Social Security? Will the monthly amount change?
When you reach full retirement age, your disability benefits will automatically convert to retirement benefits. The amount will remain the same.
What if someone dies before they've applied for benefits?>>
6. My friend died at 66. She worked full time and had not applied for benefits. What happens to the money she contributed to Social Security? Can her children claim benefits?
The money people contribute goes into a fund from which benefits are paid to eligible workers and their families. These include a widower, a surviving divorced husband, dependent parents, disabled children, and children if they have not aged out.
7. My husband and I are getting a divorce. He wants the settlement agreement to say I will not get his Social Security benefits. Can he do that?
No, he has no control over your future benefits. You can qualify for a divorced spouse's benefits if you were married at least 10 years, are now unmarried, are 62 or older, and if any benefit from your own work record would be less than the divorced spouse's benefit.
8. Cleaning out my mother's home after her death, we found Social Security checks from the 1980s. Can we cash them?
No. The checks are negotiable for only 12 months after issue.
9. My man and I have lived together for over seven years. If he dies, can I collect his Social Security benefits?
If your state recognizes your common-law marriage, then you'll likely be eligible for survivor benefits. But you'll have to provide evidence that includes sworn statements, mortgage or rent receipts, or insurance policies.
10. Do my Social Security contributions go into a personal retirement account for me and earn interest?
Although many people think so, the answer is no. Social Security operates under a pay-as-you-go system, which means that today's workers pay for current retirees and other beneficiaries. Workers pay 6.2 percent of their wages up to a cap of $106,800; employers pay the same. The money that younger people contribute will pay for our benefits when we retire.
Will the U.S. government repay the Social Security trust fund?>>
11. How much money does the U.S. government owe to the Social Security trust fund, and will it be repaid?
To prepare for the boomers' retirement, Social Security has collected more in taxes than it pays in benefits. Surplus funds go into the trust fund and are invested in U.S.-guaranteed Treasury bonds. In 2009, the trust fund held $2.5 trillion in bonds and earned 4.9 percent in interest. These bonds are just as real as U.S. Treasury bonds held by mutual funds or foreign banks. Ultimately, it's up to the American people to ensure the government keeps its promise to retirees, just as it would to other investors.
12. I have a pension from the Army. Will that affect my Social Security benefits?
It will not. You can get both your Social Security benefits and your military pension. If you served in the military before 1957, you did not pay Social Security taxes, but you will receive special credit for some of that service. Special credits also are available to people who served from 1957 to 1967 and from 1968 to 2001.
13. I didn't work enough to qualify for Social Security. My husband gets it, but he is ill and may not live much longer. Will I be able to collect benefits?
Yes, but your benefit will depend on your age and situation: If you are at full retirement age or older, you'll get 100 percent of your deceased husband's benefit. A widow or widower between 60 and full retirement age receives a reduced benefit.
14. Is it true that some people are collecting Social Security benefits who never paid into the system?
Social Security is an earned benefit. In order to collect a retirement benefit, a worker must pay into the system for at least 10 years. In some cases, nonworking family members, such as a spouse, may be eligible for benefits based on the worker's record. Tough rules in place assure that only legal residents can collect Social Security benefits.
15. I filed for Chapter 13 bankruptcy after being laid off. Do Social Security benefits count as income in bankruptcy, or are they protected?
Your benefits are protected. Social Security is excluded from the calculation of disposable income when setting up a debtor repayment plan.
What you should know about your benefits if your spouse dies. >>
16. My husband died recently. Can I choose between my own benefit and that as a widow? Can I collect both?
Eligibility for a widow's benefit begins at age 60, or 50 if you are disabled. If you are full retirement age, your survivor benefit will be 100 percent of his benefit; if you take it early, the amount will be reduced. You can switch to your own benefit as early as 62. In any event, you can only get one benefit, whichever is higher.
17. I began drawing Social Security at age 62 in 2006, but I'm still working. Since I'm still paying Social Security taxes, will my benefits increase?
If your latest work years are among your highest-earning years, the SSA refigures your benefit and pays you any increase due. This is automatic, with new benefits starting in December of the following year.
18. My wife is 62 and collects Social Security based on her own work record. Can she receive spousal benefits based on my record when I retire in a few years?
If she is eligible for both benefits, yours and hers, Social Security will pay her own benefits first. If she is due additional benefits, she will get a combination of benefits equaling the higher spousal benefit.
19. Why would changes in Social Security be considered as a way to help balance the federal budget?
Some policymakers say all spending, including Social Security, should be cut. Social Security has not contributed to the deficit. In fact, the trust fund is projected to reach $4.3 trillion by 2023. AARP believes that Social Security benefits should not be targeted to reduce the deficit.
20. If I retire to a foreign country, can I have my Social Security benefits sent there?
If you are a U.S. citizen, you may receive your benefits in most foreign countries, usually by check or direct deposit. If you are not a U.S. citizen, the answer is more complicated, with certain rules applying to certain countries. For specifics, see the Social Security publication "Your Payments While You Are Outside the United States."
Can I pay back my benefits to receive a higher payment?>>
21. I started collecting Social Security at 62. I heard that if I changed my mind, I could pay back the amount I'd collected and get a higher payment. Is that possible?
That used to be true, but the Social Security Administration just published new regulations that curtail this option. Now, if you want to suspend your benefits, you must do so within 12 months after first receiving them. According to Social Security, 85 to 90 percent of beneficiaries who withdraw their applications do so within this time frame anyway. The new rules, which became effective Dec. 8, also specify that beneficiaries are limited to one refiling in a lifetime.
22. Can I collect Social Security and unemployment compensation at the same time?
Yes. Unemployment benefits aren't counted as wages under Social Security's annual earnings test, so you'd still receive your benefit. However, the amount of your unemployment benefit could be cut if you receive a pension or other retirement income, including Social Security and railroad retirement benefits. Contact your state unemployment office for information on whether your state applies a reduction.
23. I am 63 and collecting Social Security. If I work, will my benefit be cut?
It depends on your income. Between age 62 and the start of the year when you reach full retirement age, $1 in benefits is withheld for every $2 you earn above a limit, which is $14,160 in 2010. In the year you reach full retirement age, $1 is withheld for every $3 above another limit, $37,680 in 2010. In your birthday month, the limits go away — and your benefit will be recalculated upward to compensate for the money that was withheld.
24. I'm 50. Will Social Security be there when I retire?
The Social Security trust fund, where accumulated assets are held, currently contains about $2.5 trillion. According to the system's board of trustees, that money and continuing tax contributions will allow payment of all benefits at current rates until 2037. After that, there still will be enough tax revenue coming in to pay about 78 percent of benefits. Congress is being urged to make financial fixes to Social Security to ensure it will be there for you.
25. I know I can start collecting Social Security at age 62. But should I?
That depends. If you're healthy and can afford it, you should consider waiting until you reach your full retirement age of 66, or even 70. Here's why.
By law, the age when workers can qualify for full benefits is gradually increasing, from 65 to 67. (It will be 67 for anyone born after 1960.) If you claim benefits before reaching full retirement age, they'll be reduced. That's because the goal set by Congress is to pay the same lifetime benefits to an individual regardless of when they're initially claimed.
So let's say you claim benefits at age 62 and get $1,000 a month. If you can wait until you're 66, you'll get at least 33 percent more ($1,333). And if you can wait until you're 70, you'll get at least 75 percent more ($1,750).
Social Security determines the amount of your benefits based, in part, on your highest 35 years of earnings. So you may get a larger monthly benefit if your extra years of work are your top earning years.
Stan Hinden is a retired Washington Post financial writer and author of How to Retire Happy: The 12 Most Important Decisions You Must Make Before You Retire.
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Where
AARP StandsOur Fight: Keeping Social Security StrongSocial Security didn't cause the current deficit, so it shouldn't be used to fix it. Join other AARP members in saying: “Don't target Social Security for unfair benefit cuts.” read
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Please wait while we perform your request.Reply You voted Abuse Reported Report Abuse Score: 0 Name withheld Carola5920 4:35 PM on 2/26/2011
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regarding AARPs statemnt. SS will only continue to mrecalculate a new amount each Dec up to your 70th B day. After that, there are no more increases.
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Please wait while we perform your request. Score: 0 Name withheld 7:38 AM on 2/26/2011
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Please wait while we perform your request.Reply You voted Abuse Reported Report Abuse Score: -1 Name withheld CEgg1939 10:11 PM on 2/25/2011
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Regarding AARP's statement:
17. I began drawing Social Security at age 62 in 2006, but I'm still working. Since I'm still paying Social Security taxes, will my benefits increase?
If your latest work years are among your highest-earning years, the SSA refigures your benefit and pays you any increase due. This is automatic, with new benefits starting in December of the following year.
Well, that is my case. I continue to work yearly, age 71, making more per year than I did in the 35 years previous. Still, for the last 2+ years, Social Security has not adjusted my monthly check. I called them twice -- same answer -- it will be adjusted in December, but it never is. Has anyone else had this problem??? Is there any recourse to this???
Thanks. Charles
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today's
tax tipDon't be a 'hoarder.' Some documents can be thrown out.
• Get more tax tips.
• Download federal tax forms.
• Download state tax forms.
Services & DiscountsThe new AARP® | Financial Guidance Services provided by Charles Schwab Co, Inc. offers insight to help make decisions at every stage of life.
MedjetAssist offers AARP members discounts of up to 18% off memberships for hospital of choice medical transfer, if they are hospitalized 150 miles or more from their home.
AARP members receive 20% discount on all flower arrangements from Teleflora.
Members receive exclusive member benefits & effect social change. Join Today
See All »
Featured
GroupsThe Water CoolerExpand your job network, find new leads and share tips for getting ahead. Discuss
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See all work groups »
Money NewsletterFind budget-friendly tips, investment advice, scam alerts and more!
Subscribe
VideosExpertsBlogToolsNewsstandMobileRSSFacebookTwitterShareAbout AARPWe are a nonprofit, nonpartisan membership organization that helps people 50 and over improve the quality of their lives.
About Us
Contact Us
Our Events
Careers
En Español
AARP Foundation
AARP International
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PROGRAMSAARP Tax-Aide
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Where AARP StandsPolicy
Obama and Congress must work together to find responsible budget solutions. read
Research
Winter Heating Costs in Age 65+ Households by Income. read
Take Action
Our Fight: Keeping Social Security Strong. do
AARP in Your State See another state Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virgin Islands Virginia Washington West Virginia Wisconsin Wyoming
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News From: Massachusetts2011-01-27
New books cover the nuts and bolts and back stories of health .... Read
Sitemap | Privacy Policy | Terms of Service | Copyright Information
Copyright 1995-2011, AARP. All rights reserved. A Member of AARP Global Network
Friday, February 18, 2011
social security poll
Raise the retirement age 12.79%
Eliminate the salary cap 50.87%
Increase the payroll tax 12.1%
Reduce benefits for future retirees 1.81%
None of the above 22.43%
Return To Poll
Eliminate the salary cap 50.87%
Increase the payroll tax 12.1%
Reduce benefits for future retirees 1.81%
None of the above 22.43%
Return To Poll
Thursday, February 17, 2011
SOCIAL sECURITY CHECKS
Paper checks retired. Retirees who apply for Social Security benefits on or after May 1, 2011, will no longer have the option of receiving a paper check in the mail. Seniors can have their entitlement payments directly deposited into a bank or credit union account or loaded onto a prepaid Direct Express Debit MasterCard. "This important change will provide significant savings to American taxpayers who will no longer incur the annual $120 million price tag associated with paper checks and will save Social Security $1 billion over the next 10 years," says Richard Gregg, Treasury Fiscal Assistant Secretary. Retirees already receiving paper checks will need to switch to direct deposit or the prepaid debit card by March 1, 2013.
Wednesday, February 9, 2011
MAINTAINING SOCIAL SECURITY
“Social Security is not in that bad of shape and this has been consistent for a long time now.”
Social Security this year will pay its 52.5 million recipients some $41 billion more than it takes in via payroll taxes, which have been eroded by several years of high unemployment rates. The deficit is due in part to an accounting adjustment, but a $7 billion shortfall also is expected in 2011.
The fund that covers retiree and survivor benefits—which were paid to nearly 43 million people by the end of 2009—is running a surplus. But the disability pool, which provided benefits for 9.7 million recipients last year, is on track to exhaust its own assets by 2018. Disability payouts still can be fully covered through 2037, trustees said, if lawmakers allow the retirement and survivor trust funds to be tapped.
In 2018, when the new health care law calls for taxes on “Cadillac” insurance plans, employers are expected to reduce those high-cost health benefits in favor of paying higher wages. The anticipated payroll taxes on that extra income is expected to ease Social Security deficits.
Overall, the Social Security trust fund will continue to grow because of interest income, and payouts won’t begin whittling away at assets until 2025. Under current funding methods, 75 percent of benefits could be paid out through 2084.
Small changes would work
A variety of proposed solutions could prevent benefit cuts, from hiking the retirement age to raising payroll taxes. According to the actuarial figures released today, for example, Social Security retirement, survivor and disability payments could be stabilized for 75 years by adding another 1.92 percent to the existing 12.4 percent payroll tax
“You could easily pull it all together with a few very small changes“They may be changes people don’t like, but they aren’t dramatic and they’d prevent a 25 percent cut in benefits after 2037.”
According to a Gallup poll released in July, 67 percent of Americans surveyed preferred that payroll taxes be applied to all income, instead of just the first $106,800 as it is now
“The trustees confirm that Social Security can pay full benefits for decades, and approximately 75 percent into the future even if nothing is done
Social Security this year will pay its 52.5 million recipients some $41 billion more than it takes in via payroll taxes, which have been eroded by several years of high unemployment rates. The deficit is due in part to an accounting adjustment, but a $7 billion shortfall also is expected in 2011.
The fund that covers retiree and survivor benefits—which were paid to nearly 43 million people by the end of 2009—is running a surplus. But the disability pool, which provided benefits for 9.7 million recipients last year, is on track to exhaust its own assets by 2018. Disability payouts still can be fully covered through 2037, trustees said, if lawmakers allow the retirement and survivor trust funds to be tapped.
In 2018, when the new health care law calls for taxes on “Cadillac” insurance plans, employers are expected to reduce those high-cost health benefits in favor of paying higher wages. The anticipated payroll taxes on that extra income is expected to ease Social Security deficits.
Overall, the Social Security trust fund will continue to grow because of interest income, and payouts won’t begin whittling away at assets until 2025. Under current funding methods, 75 percent of benefits could be paid out through 2084.
Small changes would work
A variety of proposed solutions could prevent benefit cuts, from hiking the retirement age to raising payroll taxes. According to the actuarial figures released today, for example, Social Security retirement, survivor and disability payments could be stabilized for 75 years by adding another 1.92 percent to the existing 12.4 percent payroll tax
“You could easily pull it all together with a few very small changes“They may be changes people don’t like, but they aren’t dramatic and they’d prevent a 25 percent cut in benefits after 2037.”
According to a Gallup poll released in July, 67 percent of Americans surveyed preferred that payroll taxes be applied to all income, instead of just the first $106,800 as it is now
“The trustees confirm that Social Security can pay full benefits for decades, and approximately 75 percent into the future even if nothing is done
Thursday, January 13, 2011
More on no Social Security at 62
By Jennie L. Phipps · Bankrate.com
Monday, December 27
Posted: 4 pm ET
Three months ago, I blogged about a proposal from the American Enterprise Institute, a conservative think tank, to get rid of the option to take Social Security at age 62. Holy cow, the people who thought this was a lousy retirement planning proposal have continued to fill my e-mail inbox with their thoughts.
This note, from a woman who begged to be anonymous, seems to reflect the majority opinion about retirement timing most eloquently:
"I totally disagree with your premise to raise the age of full retirement benefits. I am currently 60 years old. I do not have a retirement account and have a meager pension to collect when I retire. I cannot wait to retire! I am tired, sick and need to step away from the enormous stress of my job. I cannot accomplish this until I am 63 and am terrified that reckless ideas as yours will be enacted.
I cannot work until 66. That is not an option, but I am not sick enough to qualify for disability. I have worked full time -- two and three jobs at a time -- since I was 15 years old. They have collected Social Security from every one of those paychecks, an amount I doubt I will ever fully collect.
You might wonder why I am not better prepared for my retirement. I was a single mother, I raised a wonderful son, kept a roof over our heads and never, ever relied on public assistance. There were too many weeks we had to decide if we would buy groceries or pay bills. (I am sure you have no concept of this lifestyle). I don't regret those years, just wish there had been other options.
Bottom line -- leave Social Security alone. I earned it. I need it."
--
Does anyone see this issue differently?
Related posts:
1.More on fixing Social Security
2.No Social Security until age 65?
3.Social Security cutting do-overs
4.Ex-spouses and Social Security
5.Shoring up Social Security
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320 Comments
Worked Long and HardJanuary 13, 2011 at 9:25 amAs a single parent, I lived with government housing assistance early on, then worked into an excellent position. It was good. Now at 57 I'm exhausted. I had an accident, am now getting disability, but will be honest and come off it as soon as possible, hoping it is, I can't sit all day doing nothing.
I think the government has no right to raise the age at which we can begin getting our SS benefits. Like they say, Government workers are able to retire with pension in the early 50's. Then, they can become consultants for the government.
Normal citizens, if they lose their jobs in today's world, can not find another. Corporations more willing hire the younger workers, they can pay them less. Those of us in our later 50's will not be hired unless it's Walmart who doesn't work anyone full time to avoid benefits. It's becoming the practice in more corporations and companies.
Age discrimination??? They can't ask your age, but if you send a resume, are you going to tell me the employer can not tell the difference in the 30 year old and the 55+ year old? Give me a break. Even on applications they want to know education and dates as well as past employment and dates. Isn't that asking your age.
I could go on and on. Other will pick this up. Thanks.
Lester SmithJanuary 13, 2011 at 9:05 amThe sunnier you let people retire the better, that opens up a job for some younger person with a family to raise. we need to lower the retirement age.
conwaymechJanuary 13, 2011 at 8:36 amTime to think about the country and not yourself. I have numerous family members on disablility. They are all lazy slobs milking the system and looking for any opportunity to sue someone or the governement. I am 62 in march, vn marine and have worked since I was a young child. I used up most of my body but I can still support myself and others because I had the advantage of a mother that lived the true life "Grapes of Wrath" and I promised her that I would never retire but always work as much as I could. God willing I will never have to lower myself to taking anything from a government I detest run by people I consider detestable and operated by freeloaders.Like Mom said you can always do something and no work is dishonorable.
Flyers4nJanuary 13, 2011 at 8:29 amI find it amusing that many people expect the reductions in government spending to come from everyone else-not them. I'll bet many of the "Tea Party" people never thought the cuts or changes would mean they would lose benefits or their job if their candidates were elected! The GOP is walking a tightrope. If they fulfill their desire to reduce "Big Government" as they called it during the election, they will surely cost their constituents jobs in the defense industries, eligibility for this early retirement as well as many other unforeseen consequences. If they back down they will feel the wrath of those who are true believers. I love it!
J. WilkinsJanuary 13, 2011 at 8:16 amBack in the early 90's my wife had to retire from the NC school system because of the pain she was receiving in her body after around 30 years since she was a PE teacher.
She started receiving her retirement shortly. In about one year and after taking medical test, she was told she was 100% totally disabled and was eligible for medicare benifits and monthly payments. Thats when NC school system said she couldn't receive both; it was one or the other!!
Anyone have any info on this and is this right?!
danJanuary 13, 2011 at 12:51 amCongress stole all the money paid in, replaced it with iou's, and spent it on earmarks and buying votes since Johnson...and now they want to change the system to have people pay in longer at higher percents and not collect till a later age.. Politicians at their best.....and you keep voting the SAME lying ,bloodsuckers back into office...you will finally learn when you have nothing and they have it all...the hired help has better retirement and health care then the ones who pay the freight..WHAT A COUNTRY WE HAVE CREATED....NOT THE FOUNDERS........ REPUBLIC
EdJanuary 13, 2011 at 12:18 amMost who want to "reform" or privatize social security are more well off then those who don't. Rightfully,they paid more into it, and want more from it. However, not everyone is fortunate enough to be healthy, wealthy and wise...that is what SS was meant for...I suggest people see a 1933 picture called "Plan for the future"...it explains just why SS was enacted in the most direct way and is applicable to the times we live in now. We are the richest country in the world, and supposedly the most religious, but a history judges a society on how it treats the least of its citizens. Lets get away from ideology and fix the mess so that lower-income elderly who have paid into the system, and sick can live in dignity; and those who aspire for something more and are able to work for it, can enjoy that benefit too. Its possible if lose the labels, and also consider the meaning of empathy and moral responsibility. America is better than "I want what's mine".
J William CollierJanuary 12, 2011 at 11:21 pmBecause of age discrimination in the job market a lot of people are forced retire at 62...
SteveJanuary 12, 2011 at 11:08 pmIf I can retire at 62 than I will. Yes, my full benefit is cut, but at least I can have a few good years of retirement before my health starts to decline. For those who want to work till they are 70 then go ahead! I look forward to getting out of the corporate world.
« Older CommentsAdd a comment
Monday, December 27
Posted: 4 pm ET
Three months ago, I blogged about a proposal from the American Enterprise Institute, a conservative think tank, to get rid of the option to take Social Security at age 62. Holy cow, the people who thought this was a lousy retirement planning proposal have continued to fill my e-mail inbox with their thoughts.
This note, from a woman who begged to be anonymous, seems to reflect the majority opinion about retirement timing most eloquently:
"I totally disagree with your premise to raise the age of full retirement benefits. I am currently 60 years old. I do not have a retirement account and have a meager pension to collect when I retire. I cannot wait to retire! I am tired, sick and need to step away from the enormous stress of my job. I cannot accomplish this until I am 63 and am terrified that reckless ideas as yours will be enacted.
I cannot work until 66. That is not an option, but I am not sick enough to qualify for disability. I have worked full time -- two and three jobs at a time -- since I was 15 years old. They have collected Social Security from every one of those paychecks, an amount I doubt I will ever fully collect.
You might wonder why I am not better prepared for my retirement. I was a single mother, I raised a wonderful son, kept a roof over our heads and never, ever relied on public assistance. There were too many weeks we had to decide if we would buy groceries or pay bills. (I am sure you have no concept of this lifestyle). I don't regret those years, just wish there had been other options.
Bottom line -- leave Social Security alone. I earned it. I need it."
--
Does anyone see this issue differently?
Related posts:
1.More on fixing Social Security
2.No Social Security until age 65?
3.Social Security cutting do-overs
4.Ex-spouses and Social Security
5.Shoring up Social Security
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320 Comments
Worked Long and HardJanuary 13, 2011 at 9:25 amAs a single parent, I lived with government housing assistance early on, then worked into an excellent position. It was good. Now at 57 I'm exhausted. I had an accident, am now getting disability, but will be honest and come off it as soon as possible, hoping it is, I can't sit all day doing nothing.
I think the government has no right to raise the age at which we can begin getting our SS benefits. Like they say, Government workers are able to retire with pension in the early 50's. Then, they can become consultants for the government.
Normal citizens, if they lose their jobs in today's world, can not find another. Corporations more willing hire the younger workers, they can pay them less. Those of us in our later 50's will not be hired unless it's Walmart who doesn't work anyone full time to avoid benefits. It's becoming the practice in more corporations and companies.
Age discrimination??? They can't ask your age, but if you send a resume, are you going to tell me the employer can not tell the difference in the 30 year old and the 55+ year old? Give me a break. Even on applications they want to know education and dates as well as past employment and dates. Isn't that asking your age.
I could go on and on. Other will pick this up. Thanks.
Lester SmithJanuary 13, 2011 at 9:05 amThe sunnier you let people retire the better, that opens up a job for some younger person with a family to raise. we need to lower the retirement age.
conwaymechJanuary 13, 2011 at 8:36 amTime to think about the country and not yourself. I have numerous family members on disablility. They are all lazy slobs milking the system and looking for any opportunity to sue someone or the governement. I am 62 in march, vn marine and have worked since I was a young child. I used up most of my body but I can still support myself and others because I had the advantage of a mother that lived the true life "Grapes of Wrath" and I promised her that I would never retire but always work as much as I could. God willing I will never have to lower myself to taking anything from a government I detest run by people I consider detestable and operated by freeloaders.Like Mom said you can always do something and no work is dishonorable.
Flyers4nJanuary 13, 2011 at 8:29 amI find it amusing that many people expect the reductions in government spending to come from everyone else-not them. I'll bet many of the "Tea Party" people never thought the cuts or changes would mean they would lose benefits or their job if their candidates were elected! The GOP is walking a tightrope. If they fulfill their desire to reduce "Big Government" as they called it during the election, they will surely cost their constituents jobs in the defense industries, eligibility for this early retirement as well as many other unforeseen consequences. If they back down they will feel the wrath of those who are true believers. I love it!
J. WilkinsJanuary 13, 2011 at 8:16 amBack in the early 90's my wife had to retire from the NC school system because of the pain she was receiving in her body after around 30 years since she was a PE teacher.
She started receiving her retirement shortly. In about one year and after taking medical test, she was told she was 100% totally disabled and was eligible for medicare benifits and monthly payments. Thats when NC school system said she couldn't receive both; it was one or the other!!
Anyone have any info on this and is this right?!
danJanuary 13, 2011 at 12:51 amCongress stole all the money paid in, replaced it with iou's, and spent it on earmarks and buying votes since Johnson...and now they want to change the system to have people pay in longer at higher percents and not collect till a later age.. Politicians at their best.....and you keep voting the SAME lying ,bloodsuckers back into office...you will finally learn when you have nothing and they have it all...the hired help has better retirement and health care then the ones who pay the freight..WHAT A COUNTRY WE HAVE CREATED....NOT THE FOUNDERS........ REPUBLIC
EdJanuary 13, 2011 at 12:18 amMost who want to "reform" or privatize social security are more well off then those who don't. Rightfully,they paid more into it, and want more from it. However, not everyone is fortunate enough to be healthy, wealthy and wise...that is what SS was meant for...I suggest people see a 1933 picture called "Plan for the future"...it explains just why SS was enacted in the most direct way and is applicable to the times we live in now. We are the richest country in the world, and supposedly the most religious, but a history judges a society on how it treats the least of its citizens. Lets get away from ideology and fix the mess so that lower-income elderly who have paid into the system, and sick can live in dignity; and those who aspire for something more and are able to work for it, can enjoy that benefit too. Its possible if lose the labels, and also consider the meaning of empathy and moral responsibility. America is better than "I want what's mine".
J William CollierJanuary 12, 2011 at 11:21 pmBecause of age discrimination in the job market a lot of people are forced retire at 62...
SteveJanuary 12, 2011 at 11:08 pmIf I can retire at 62 than I will. Yes, my full benefit is cut, but at least I can have a few good years of retirement before my health starts to decline. For those who want to work till they are 70 then go ahead! I look forward to getting out of the corporate world.
« Older CommentsAdd a comment
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.
__._,_.___
Wednesday, September 9, 2009
NO COLA 2010 2011
Millions face shrinking Social Security payments (Associated Press)
By STEPHEN OHLEMACHER
August 24, 2009
WASHINGTON (AP) -- Millions of older people face shrinking Social Security checks next year, the first time in a generation that payments would not rise.
The trustees who oversee Social Security are projecting there won't be a cost of living adjustment (COLA) for the next two years. That hasn't happened since automatic increases were adopted in 1975.
By law, Social Security benefits cannot go down. Nevertheless, monthly payments would drop for millions of people in the Medicare prescription drug program because the premiums, which often are deducted from Social Security payments, are scheduled to go up slightly.
``I will promise you, they count on that COLA,'' said Barbara Kennelly, a former Democratic congresswoman from Connecticut who now heads the National Committee to Preserve Social Security and Medicare. ``To some people, it might not be a big deal. But to seniors, especially with their health care costs, it is a big deal.''
Cost of living adjustments are pegged to inflation, which has been negative this year, largely because energy prices are below 2008 levels.
Advocates say older people still face higher prices because they spend a disproportionate amount of their income on health care, where costs rise faster than inflation. Many also have suffered from declining home values and shrinking stock portfolios just as they are relying on those assets for income.
``For many elderly, they don't feel that inflation is low because their expenses are still going up,'' said David Certner, legislative policy director for AARP. ``Anyone who has savings and investments has seen some serious losses.''
About 50 million retired and disabled Americans receive Social Security benefits. The average monthly benefit for retirees is $1,153 this year. All beneficiaries received a 5.8 percent increase in January, the largest since 1982.
More than 32 million people are in the Medicare prescription drug program. Average monthly premiums are set to go from $28 this year to $30 next year, though they vary by plan. About 6 million people in the program have premiums deducted from their monthly Social Security payments, according to the Social Security Administration.
Millions of people with Medicare Part B coverage for doctors' visits also have their premiums deducted from Social Security payments. Part B premiums are expected to rise as well. But under the law, the increase cannot be larger than the increase in Social Security benefits for most recipients.
There is no such hold-harmless provision for drug premiums.
Kennelly's group wants Congress to increase Social Security benefits next year, even though the formula doesn't call for it. She would like to see either a 1 percent increase in monthly payments or a one-time payment of $150.
The cost of a one-time payment, a little less than $8 billion, could be covered by increasing the amount of income subjected to Social Security taxes, Kennelly said. Workers only pay Social Security taxes on the first $106,800 of income, a limit that rises each year with the average national wage.
But the limit only increases if monthly benefits increase.
Critics argue that Social Security recipients shouldn't get an increase when inflation is negative. They note that recipients got a big increase in January _ after energy prices had started to fall. They also note that Social Security recipients received one-time $250 payments in the spring as part of the government's economic stimulus package.
Consumer prices are down from 2008 levels, giving Social Security recipients more purchasing power, even if their benefits stay the same, said Andrew G. Biggs, a resident scholar at the American Enterprise Institute, a Washington think tank.
``Seniors may perceive that they are being hurt because there is no COLA, but they are in fact not getting hurt,'' Biggs said. ``Congress has to be able to tell people they are not getting everything they want.''
Social Security is also facing long-term financial problems. The retirement program is projected to start paying out more money than it receives in 2016. Without changes, the retirement fund will be depleted in 2037, according to the Social Security trustees' annual report this year.
President Barack Obama has said he would like to tackle Social Security next year, after Congress finishes work on health care, climate change and new financial regulations.
Lawmakers are preoccupied by health care, making it difficult to address other tough issues. Advocates for older people hope their efforts will get a boost in October, when the Social Security Administration officially announces that there will not be an increase in benefits next year.
``I think a lot of seniors do not know what's coming down the pike, and I believe that when they hear that, they're going to be upset,'' said Sen. Bernie Sanders, an independent from Vermont who is working on a proposal for one-time payments for Social Security recipients.
``It is my view that seniors are going to need help this year, and it would not be acceptable for Congress to simply turn its back,'' he said.
By STEPHEN OHLEMACHER
August 24, 2009
WASHINGTON (AP) -- Millions of older people face shrinking Social Security checks next year, the first time in a generation that payments would not rise.
The trustees who oversee Social Security are projecting there won't be a cost of living adjustment (COLA) for the next two years. That hasn't happened since automatic increases were adopted in 1975.
By law, Social Security benefits cannot go down. Nevertheless, monthly payments would drop for millions of people in the Medicare prescription drug program because the premiums, which often are deducted from Social Security payments, are scheduled to go up slightly.
``I will promise you, they count on that COLA,'' said Barbara Kennelly, a former Democratic congresswoman from Connecticut who now heads the National Committee to Preserve Social Security and Medicare. ``To some people, it might not be a big deal. But to seniors, especially with their health care costs, it is a big deal.''
Cost of living adjustments are pegged to inflation, which has been negative this year, largely because energy prices are below 2008 levels.
Advocates say older people still face higher prices because they spend a disproportionate amount of their income on health care, where costs rise faster than inflation. Many also have suffered from declining home values and shrinking stock portfolios just as they are relying on those assets for income.
``For many elderly, they don't feel that inflation is low because their expenses are still going up,'' said David Certner, legislative policy director for AARP. ``Anyone who has savings and investments has seen some serious losses.''
About 50 million retired and disabled Americans receive Social Security benefits. The average monthly benefit for retirees is $1,153 this year. All beneficiaries received a 5.8 percent increase in January, the largest since 1982.
More than 32 million people are in the Medicare prescription drug program. Average monthly premiums are set to go from $28 this year to $30 next year, though they vary by plan. About 6 million people in the program have premiums deducted from their monthly Social Security payments, according to the Social Security Administration.
Millions of people with Medicare Part B coverage for doctors' visits also have their premiums deducted from Social Security payments. Part B premiums are expected to rise as well. But under the law, the increase cannot be larger than the increase in Social Security benefits for most recipients.
There is no such hold-harmless provision for drug premiums.
Kennelly's group wants Congress to increase Social Security benefits next year, even though the formula doesn't call for it. She would like to see either a 1 percent increase in monthly payments or a one-time payment of $150.
The cost of a one-time payment, a little less than $8 billion, could be covered by increasing the amount of income subjected to Social Security taxes, Kennelly said. Workers only pay Social Security taxes on the first $106,800 of income, a limit that rises each year with the average national wage.
But the limit only increases if monthly benefits increase.
Critics argue that Social Security recipients shouldn't get an increase when inflation is negative. They note that recipients got a big increase in January _ after energy prices had started to fall. They also note that Social Security recipients received one-time $250 payments in the spring as part of the government's economic stimulus package.
Consumer prices are down from 2008 levels, giving Social Security recipients more purchasing power, even if their benefits stay the same, said Andrew G. Biggs, a resident scholar at the American Enterprise Institute, a Washington think tank.
``Seniors may perceive that they are being hurt because there is no COLA, but they are in fact not getting hurt,'' Biggs said. ``Congress has to be able to tell people they are not getting everything they want.''
Social Security is also facing long-term financial problems. The retirement program is projected to start paying out more money than it receives in 2016. Without changes, the retirement fund will be depleted in 2037, according to the Social Security trustees' annual report this year.
President Barack Obama has said he would like to tackle Social Security next year, after Congress finishes work on health care, climate change and new financial regulations.
Lawmakers are preoccupied by health care, making it difficult to address other tough issues. Advocates for older people hope their efforts will get a boost in October, when the Social Security Administration officially announces that there will not be an increase in benefits next year.
``I think a lot of seniors do not know what's coming down the pike, and I believe that when they hear that, they're going to be upset,'' said Sen. Bernie Sanders, an independent from Vermont who is working on a proposal for one-time payments for Social Security recipients.
``It is my view that seniors are going to need help this year, and it would not be acceptable for Congress to simply turn its back,'' he said.
Thursday, October 16, 2008
WASHINGTON - Social Security benefits for 50 million people will go up 5.8 percent next year, the largest increase in more than a quarter century. The increase, which will start in January, was announced Thursday by the Social Security Administration. It will mean an additional $63 per month for the average retiree.
It's the largest increase since a 7.4 percent jump in 1982 and is more than double the 2.3 percent rise that retirees got in their monthly checks starting in January of this year.
The typical retiree's monthly check will go from $1,090 currently to $1,153.
The increase would have been even higher, but after racing ahead earlier in the year, energy costs fell in both August and September, helping to moderate the overall price gain.
The 5.8 percent rise in the cost of living adjustment is a sharp departure from recent years. The COLA increases have been below 3 percent for all but three of the past 15 years as the Federal Reserve waged a successful campaign to keep inflation under control.
Even with the big increase, the COLA is well below the gains of the late 1970s and early 1980s when the country was in the grips of a decade-long bout of high inflation. The biggest cost of living benefit on record was a 14.3 percent increase in 1980. Social Security benefits have been adjusted every year since 1975.
In one break for most retirees, the cost of living increase will not be eaten up by higher monthly premiums for the part of Medicare that pays for physician services. Because of gains in the Medicare Part B trust fund, that premium will hold steady at $96.40 a month, although higher-income people including couples making more than $170,000 annually will see their premiums increase.
Next year's cost of living increase will go to more than 55 million Americans. More than 50 million receive Social Security benefits while the rest get Supplemental Security Income payments for the poor.
The average couple, both getting Social Security benefits, will see their monthly check go up by $103 a month to $1,876.
The standard Supplemental Security Income payment for a couple will go from $956 per month to $1,011. The SSI payment for an individual will go from $637 per month to $674 per month.
The average monthly check for a disabled worker will go from $1,006 to $1,064
In addition to the cost of living adjustment, the government announced Thursday that the maximum amount of earnings subject to the Social Security tax will increase next year to $106,800, up from $102,000 this year.
It's the largest increase since a 7.4 percent jump in 1982 and is more than double the 2.3 percent rise that retirees got in their monthly checks starting in January of this year.
The typical retiree's monthly check will go from $1,090 currently to $1,153.
The increase would have been even higher, but after racing ahead earlier in the year, energy costs fell in both August and September, helping to moderate the overall price gain.
The 5.8 percent rise in the cost of living adjustment is a sharp departure from recent years. The COLA increases have been below 3 percent for all but three of the past 15 years as the Federal Reserve waged a successful campaign to keep inflation under control.
Even with the big increase, the COLA is well below the gains of the late 1970s and early 1980s when the country was in the grips of a decade-long bout of high inflation. The biggest cost of living benefit on record was a 14.3 percent increase in 1980. Social Security benefits have been adjusted every year since 1975.
In one break for most retirees, the cost of living increase will not be eaten up by higher monthly premiums for the part of Medicare that pays for physician services. Because of gains in the Medicare Part B trust fund, that premium will hold steady at $96.40 a month, although higher-income people including couples making more than $170,000 annually will see their premiums increase.
Next year's cost of living increase will go to more than 55 million Americans. More than 50 million receive Social Security benefits while the rest get Supplemental Security Income payments for the poor.
The average couple, both getting Social Security benefits, will see their monthly check go up by $103 a month to $1,876.
The standard Supplemental Security Income payment for a couple will go from $956 per month to $1,011. The SSI payment for an individual will go from $637 per month to $674 per month.
The average monthly check for a disabled worker will go from $1,006 to $1,064
In addition to the cost of living adjustment, the government announced Thursday that the maximum amount of earnings subject to the Social Security tax will increase next year to $106,800, up from $102,000 this year.
Saturday, October 4, 2008
KOHL-MCCASKILL BILL SPURS GOVERNMENT TO RESOLVE ISSUE OF ILLEGAL GARNISHMENT OF SS BENEFITS
KOHL-MCCASKILL BILL SPURS GOVERNMENT TO RESOLVE ISSUE OF ILLEGAL GARNISHMENT OF SS BENEFITS
Contact: Ashley Glacel - (202) 224-5364
Monday, April 14, 2008
WASHINGTON, D.C. – Today U.S. Senators Herb Kohl (D-WI), Chairman of the Senate Special Committee on Aging, and Claire McCaskill (D-MO) introduced the Illegal Garnishment Prevention Act, a bill that would prevent the U.S. Department of Treasury from promoting the use of direct deposit for Social Security beneficiaries until they put a stop to the illegal garnishment of government benefits from the bank accounts of private citizens. With increasing frequency, financial institutions are garnishing or freezing funds on behalf of creditors from bank accounts into which Social Security, Supplemental Security Income (SSI), and Veterans benefits are electronically deposited, despite clear protections in federal law against the garnishment of such benefits.
“Millions of seniors rely on their Social Security benefits as their only source of income for basic needs like housing and food. When financial institutions and creditors illegally withhold these benefit checks, they are putting the lives of our most vulnerable segment of the population at risk. We need to know how wide-spread this practice has become and find a way to make it stop,” Kohl said.
“For many seniors and disabled Americans, social security checks keep them financially afloat from month to month. When banks garnish these funds, they are left with nothing. We need to be very careful to make sure proper safeguards are in place to protect seniors in this situation, and this bill will guarantee they are” McCaskill said.
In most cases, the protected funds are taken not only by the creditor, but also by the bank through the collection of additional fees levied for “processing” the garnishment. These can include overdraft charges or insufficient fund charges, which occur as the result of the garnishment. Some banks have also been found to dip into these protected funds to cover other debts owed to the bank, such as a car loan. Many older Americans rely on Social Security benefits to pay their rent, buy groceries, and afford prescription drugs. For twenty percent of seniors over 65 years old, Social Security is their only source of income and for two-thirds it is the major source of income.
In August 2007, Kohl, McCaskill, and Senator Max Baucus (D-MT) sent a letter to the Social Security Administration’s Inspector General asking him to investigate the increasingly frequent but prohibited method of collecting debt from senior citizens, veterans, and the disabled. The senators requested that the Social Security Administration's Inspector General report to them the degree to which large and small banks are engaged in these practices and the extent to which the resulting fees are eating up the safety net funds upon which seniors, veterans and the disabled rely. It is anticipated that the results of the SSA OIG’s investigation will be released in coming weeks.
“In recent months several newspapers have published articles describing how financial institutions have been freezing and assessing fees on accounts in which Social Security and Veterans' benefits are electronically deposited,” the letter read. “Sadly, the majority of the individuals to whom this is occurring are those who can least afford it.”
In November 2007, Senators Kohl, McCaskill, and Baucus were joined by Senators Chuck Grassley (R-IA), Gordon H. Smith (R-OR), Christopher Dodd (D-CT), Richard Shelby (R-AL), and John Kerry (D-MA) in urging the Director of the Office of Management and Budget, Jim Nussle, to play a role in resolving the matter. The letter requested that Director Nussle implore one or more of the five federal agencies with jurisdiction over America’s financial institutions to issue a necessary rule clarification.
# # #
A link to the August 2007 letter to the SSA OIG can be found here:
http://www.aging.senate.gov/letters/ssgarnishmentssaoig.pdf
A link to the November 2007 letter to the OMB can be found here:
http://www.aging.senate.gov/letters/ssgarnishmentomb.pdf
Contact: Ashley Glacel - (202) 224-5364
Monday, April 14, 2008
WASHINGTON, D.C. – Today U.S. Senators Herb Kohl (D-WI), Chairman of the Senate Special Committee on Aging, and Claire McCaskill (D-MO) introduced the Illegal Garnishment Prevention Act, a bill that would prevent the U.S. Department of Treasury from promoting the use of direct deposit for Social Security beneficiaries until they put a stop to the illegal garnishment of government benefits from the bank accounts of private citizens. With increasing frequency, financial institutions are garnishing or freezing funds on behalf of creditors from bank accounts into which Social Security, Supplemental Security Income (SSI), and Veterans benefits are electronically deposited, despite clear protections in federal law against the garnishment of such benefits.
“Millions of seniors rely on their Social Security benefits as their only source of income for basic needs like housing and food. When financial institutions and creditors illegally withhold these benefit checks, they are putting the lives of our most vulnerable segment of the population at risk. We need to know how wide-spread this practice has become and find a way to make it stop,” Kohl said.
“For many seniors and disabled Americans, social security checks keep them financially afloat from month to month. When banks garnish these funds, they are left with nothing. We need to be very careful to make sure proper safeguards are in place to protect seniors in this situation, and this bill will guarantee they are” McCaskill said.
In most cases, the protected funds are taken not only by the creditor, but also by the bank through the collection of additional fees levied for “processing” the garnishment. These can include overdraft charges or insufficient fund charges, which occur as the result of the garnishment. Some banks have also been found to dip into these protected funds to cover other debts owed to the bank, such as a car loan. Many older Americans rely on Social Security benefits to pay their rent, buy groceries, and afford prescription drugs. For twenty percent of seniors over 65 years old, Social Security is their only source of income and for two-thirds it is the major source of income.
In August 2007, Kohl, McCaskill, and Senator Max Baucus (D-MT) sent a letter to the Social Security Administration’s Inspector General asking him to investigate the increasingly frequent but prohibited method of collecting debt from senior citizens, veterans, and the disabled. The senators requested that the Social Security Administration's Inspector General report to them the degree to which large and small banks are engaged in these practices and the extent to which the resulting fees are eating up the safety net funds upon which seniors, veterans and the disabled rely. It is anticipated that the results of the SSA OIG’s investigation will be released in coming weeks.
“In recent months several newspapers have published articles describing how financial institutions have been freezing and assessing fees on accounts in which Social Security and Veterans' benefits are electronically deposited,” the letter read. “Sadly, the majority of the individuals to whom this is occurring are those who can least afford it.”
In November 2007, Senators Kohl, McCaskill, and Baucus were joined by Senators Chuck Grassley (R-IA), Gordon H. Smith (R-OR), Christopher Dodd (D-CT), Richard Shelby (R-AL), and John Kerry (D-MA) in urging the Director of the Office of Management and Budget, Jim Nussle, to play a role in resolving the matter. The letter requested that Director Nussle implore one or more of the five federal agencies with jurisdiction over America’s financial institutions to issue a necessary rule clarification.
# # #
A link to the August 2007 letter to the SSA OIG can be found here:
http://www.aging.senate.gov/letters/ssgarnishmentssaoig.pdf
A link to the November 2007 letter to the OMB can be found here:
http://www.aging.senate.gov/letters/ssgarnishmentomb.pdf
Unbanked Americans Prepaid Debit Cards
Comerica Bank Named as Card Issuer
Washington, D.C. - (Jan. 4, 2008) - The U.S. Department of the Treasury's Financial Management Service (FMS) has designated Comerica Bank as its financial agent in a new initiative to give millions of unbanked Americans the option of using a prepaid debit card for receiving Social Security and other federal benefit payments. The "Direct Express®" card provides a safer and more convenient alternative to paper checks. Comerica Bank was selected, in part, because of its experience as a prepaid card issuer for millions of benefit recipients, particularly for state government programs.
"Direct Express represents a significant step forward in the evolution of federal benefit payments," said FMS Commissioner Judy Tillman. "The explosive growth in the prepaid card industry offers an important opportunity for Treasury to give unbanked payment recipients secure, easy access to their funds, at low or no cost to the cardholder. We ultimately would like to see an all-electronic Treasury - with all the security, efficiency and cost savings that would entail. This card takes us closer to that goal by combining the best in payment innovation with sound public policy. If every unbanked federal check recipient signed up to use the card, it would save taxpayers about $44 million per year."
The Treasury estimates that four million Social Security and Supplemental Security Income (SSI) check recipients do not have bank accounts, placing them at greater risk of check delivery delays due to poor weather, national or local emergencies, and other check related problems, such as lost or stolen checks. In fact, nine times out of 10, problems with Social Security payments are linked to paper checks, not direct deposit.
Financial Flexibility and Security
The Direct Express card will be introduced in spring 2008 and will be phased into national distribution by the end of the summer. Direct Express card holders will benefit from improved financial flexibility and security as compared to paper check recipients.
Each month, payments will be automatically deposited on the Direct Express card account on the federal beneficiary's designated payment day - which means people will have faster access to their money than they would if they had to cash a paper check. Card holders will be able to access their money at ATMs and financial institutions nationwide. They will be able to use their card to get cash back and make purchases at retail locations, as well as pay bills and make purchases online. In addition, these accounts are PIN-protected, FDIC-insured, and subject to federal consumer protection regulations (Regulation E).
"Millions of federal beneficiaries remain outside the banking system, which means they don't have access to payment methods that most Americans take for granted, such as getting cash at an ATM or paying with a card at a store," said Nora Arpin, Director of Government Electronic Solutions for Comerica Bank. "The Direct Express card provides an opportunity for people outside of the banking system, either because of personal choice or perhaps their inability to obtain a bank account, to gain a foothold in the financial mainstream."
The Treasury has already experienced significant success in increasing electronic payments with its Go Direct campaign, which is aimed at motivating banked federal benefit recipients to switch from paper checks to direct deposit. To date, Go Direct has achieved more than 1.6 million direct deposit conversions.
"Direct Express" is a registered trademark of the U.S. Department of the Treasury, Financial Management Service.
Last Updated: Thursday January 03, 2008
Washington, D.C. - (Jan. 4, 2008) - The U.S. Department of the Treasury's Financial Management Service (FMS) has designated Comerica Bank as its financial agent in a new initiative to give millions of unbanked Americans the option of using a prepaid debit card for receiving Social Security and other federal benefit payments. The "Direct Express®" card provides a safer and more convenient alternative to paper checks. Comerica Bank was selected, in part, because of its experience as a prepaid card issuer for millions of benefit recipients, particularly for state government programs.
"Direct Express represents a significant step forward in the evolution of federal benefit payments," said FMS Commissioner Judy Tillman. "The explosive growth in the prepaid card industry offers an important opportunity for Treasury to give unbanked payment recipients secure, easy access to their funds, at low or no cost to the cardholder. We ultimately would like to see an all-electronic Treasury - with all the security, efficiency and cost savings that would entail. This card takes us closer to that goal by combining the best in payment innovation with sound public policy. If every unbanked federal check recipient signed up to use the card, it would save taxpayers about $44 million per year."
The Treasury estimates that four million Social Security and Supplemental Security Income (SSI) check recipients do not have bank accounts, placing them at greater risk of check delivery delays due to poor weather, national or local emergencies, and other check related problems, such as lost or stolen checks. In fact, nine times out of 10, problems with Social Security payments are linked to paper checks, not direct deposit.
Financial Flexibility and Security
The Direct Express card will be introduced in spring 2008 and will be phased into national distribution by the end of the summer. Direct Express card holders will benefit from improved financial flexibility and security as compared to paper check recipients.
Each month, payments will be automatically deposited on the Direct Express card account on the federal beneficiary's designated payment day - which means people will have faster access to their money than they would if they had to cash a paper check. Card holders will be able to access their money at ATMs and financial institutions nationwide. They will be able to use their card to get cash back and make purchases at retail locations, as well as pay bills and make purchases online. In addition, these accounts are PIN-protected, FDIC-insured, and subject to federal consumer protection regulations (Regulation E).
"Millions of federal beneficiaries remain outside the banking system, which means they don't have access to payment methods that most Americans take for granted, such as getting cash at an ATM or paying with a card at a store," said Nora Arpin, Director of Government Electronic Solutions for Comerica Bank. "The Direct Express card provides an opportunity for people outside of the banking system, either because of personal choice or perhaps their inability to obtain a bank account, to gain a foothold in the financial mainstream."
The Treasury has already experienced significant success in increasing electronic payments with its Go Direct campaign, which is aimed at motivating banked federal benefit recipients to switch from paper checks to direct deposit. To date, Go Direct has achieved more than 1.6 million direct deposit conversions.
"Direct Express" is a registered trademark of the U.S. Department of the Treasury, Financial Management Service.
Last Updated: Thursday January 03, 2008
Monday, May 19, 2008
PROTECT SOCIAL SECURITY AND MEDICARE.
One of the top priorities you have as a citizen and voter is the protection of social security and medicare for current and future retirees.
Among top priorities I urge our elected representatives to defeat privatation and other propoaals that theaten our retirement security.
Presindent Roosevelt and Congress created Social Security in 1935 to protect retired Americans from a proverty ridden old age.
America's more than 36 million seniors have paid hard-earned money into Social Security and Medicare during their long working lives.
Social Security represent a covenant between the government and its citizens.
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