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SPENDING the SOCIAL SECURITY SURPLUS
Neither Social Security nor Medicare is a “handout by the members of Congress.” The American tax worker paid into both funds with the understanding Congress would do the honorable thing guard the contributions and upon retirement the worker would receive their just benefits. The same holds true for the Medicare program.
“Under Sec. 201 (b) of the original Social Security Act enacted in 1935, all Social Security monies not immediately needed for benefit payments must be invested”…in interest-bearing obligations of the United States..” Thus, the two trust funds the Old Age and Survivors Insurance (OASI) and the Disability Insurance (DI) Trust Fund—actually hold these “special obligations”: non-marketable securities (or IOUs) issued to them by the treasury. The IOUs represent the FICA tax receipts which are deposited in the general treasury. There they become indistinguishable from other government revenues and are used to pay current federal obligations or bills” Congressional Research Service
Neither a personal account, raising the retirement age, mandatory Social Security or increasing taxes will save Social Security. BUT a law preventing Congress from using the surplus to pay current bills, pork projects, waste and fraud within the hundreds of government agencies is needed.
Spending the Surplus:
$700 BILLION from 1964 to 2001
$159 BILLION in 2002
$155.6 BILLION in 2003
$151 BILLION IN 2004 Source: Congressional Budget Office
EFFORTS TO PROTECT MEDICARE AND SOCIAL SECURITY SURPLUS FAIL
Cincinnati Enquirer 7-1-01
MILLIONS PAID TO DEAD PEOPLE AUDIT FAULTS SOCIAL SECURITY
Cincinnati Enquirer 9-1-01
FUGITIVES IMPROPERLY COLLECT SOCIAL SECURITY DOLLARS
Cincinnati Enquirer 12-27-02
A HALF DOZEN OF THE LARGEST FEDERAL AGENCIES SQUANDERED 19 BILLION IN WASTED PAYMENTS
Associated Press 9-7-02
The SSA doled out nearly $1 billion too much in disability payments in 2003 frequently sending out checks to people who had returned to work. The overpayment grew by 15 % since 1999, contributing to mounting debt of nearly $3 billion in 2003”. GAO-10-19-04
COMPUTER BLUNDERS COMMON, EXPENSIVE By Ted Bridis
Associate Press 1-30-05
Consider the other financial drain on the Social Security Administration:
A man who marries 2 or 3 times, remains married for at least 10 years (old rule 20 years) each wife is entitled to half of the husbands benefits upon reaching 62 if she has not remarried and her benefits are less than his.
A wife may receive one half of her husband’s Social Security check even if she does not have the required 40 credits or if she never paid into the fund.
A public retiree (teacher, police, firefighter, letter carrier) contributes into a state pension fund and is also entitled to receive Social Security. The Government Pension Offset law (1977) requires the retiree to report the amount of the state pension to SS where upon two-thirds of the pension is subtracted from the retirees check. When an overpayment occurs to correct the error the cost to Social Security is approximately $45.00 per hour.
Annual Statistical Supplement 2002
---Consider the millions of jobs outsourced resulting in the millions the American worker would have contributed into the Social Security fund.
---Companies go off shore, evade U.S. taxes costing millions to our economy.
---Business mergers in the “90’s” thousands lose jobs lost contributions to SS.
The U.S. has a totalization agreement with 20 countries allowing workers to accumulate enough credits to qualify for Social Security in either country. Currently about $15 million is paid each month to about 94,000 recipients under the totalization agreement. On June 29, 2004 the Commissioner of Social Security and the Director General of the Mexican Social Security Institute signed a totalization agreement. On 1-4-05 Rep. Goode introduced H. Con. Res. 50 asking the “President to immediately disapprove the totalization agreement and refrain from transmitting such an agreement to the Congress”
The SSA estimates 50,000 Mexicans would collect $78 million the first year of a U.S. Mexico agreement and by 2050 about 300,000 Mexicans would collect $650 million in benefits a year. The census figures show we have 9 million Mexicans in the US and about 5 million are reported to be here illegally. Is it time to reevaluate our agreements?
We all know if we continue to spend our savings eventually our account will be depleted. An untouchable trust fund is the only answer!!!
“Rep. Ron Paul (R-TX) 1-4-05 introduced H.R. 219 Title: To amend title 11 of the Social Security Act to ensure the integrity of the Social Security trust funds by requiring the Managing Trustee to invest the annual surplus of such trust funds in marketable interest-bearing obligations of the United States and certificates of deposit in depository institutions insured by the Federal Deposit Insurance Corporations, and to protect such funds from the public debt limit”.
Thomas Jefferson said “I think it is an object of great importance to simplify our system of finance and bring it within the comprehension of every member of Congress”.
Eileen M. Ryan
August 2005
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