Opinion / Politics / Press Releases

The Social Security Trustees Say They Must Dip Into Its Trust Fund For The First Time Since 1982

social security administration portal benefits application disability benefits pension COLA benefitAMAC supports a long-term guarantee for future retirees

WASHINGTON, DC, June 15 – For the first time in 36 years, according to the trustees of Social Security and Medicare, they will have to dip into the Trust Fund to meet its obligations.

“Perhaps lawmakers will now take the action necessary, in a timely fashion, to ensure the viability of the retirement and health care programs American workers invest in each payday.  In fact, AMAC has been working with our representatives in Washington urging them to do just that,” says Dan Weber, president of the Association of Mature American Citizens.

Weber is hopeful that a Social Security Guarantee Act will be introduced in the House of Representatives soon.  Such a law would deal with the long-term solvency of the Social Security Trust Fund in several ways.  It would set back the retirement age for new retirees and change the level of payments for future retirees starting in 2022.

The Trustees believe that unless something is done about the issue of solvency, Social Security benefits would have to be reduced starting in 2034.  “As the population ages at a rapid pace – 10,000 of us turn 65 each and every year – retirement is likely to become a pipe dream for many of today’s workers.  We need to make sure that the funding will be there for them when they need it.  But we must do more,” says Weber.

He is strongly committed to an overhaul of the law that would also focus on Cost-of-Living Adjustments (COLA), such issues as the Windfall Elimination Provision (WEP), the Retirement Earnings Test penalty and the double taxation of benefits and what AMAC calls Social Security PLUS.

The association describes the Social Security Plus provision as a voluntary early retirement account—a way for those paying into Social Security to have some control of how their money is invested.  That would be accomplished by allowing workers to make contributions into Plus accounts.  To avoid risky investments,

half of the money deposited in their accounts would have to be invested in guaranteed interest products such as government bonds or annuity contracts.  Workers would be free to invest their balances in any other investment that meets certain suitability standards.

“The Guarantee Act needs to address the special needs of poorer Social Security beneficiaries.  We’ve proposed that beneficiaries earning a household income of $20,000 or less receive an automatic annual COLA increase of three to four percent.  Recipients with incomes ranging from $20,000 to $50,000 would receive an increase of 1.5% to 3% maximum.  And, those earning $50,001 or more would collect increases of 1% to 2%.”

Soon after President Trump was elected, Weber met with his transition team to discuss a variety of issues of concern to America’s seniors including Social Security.  “We found that the administration was in sync with our concerns and the importance of a Social Security Guarantee for this generation and for future generations.  Social Security is not an entitlement handout, as many would suggest; it’s an annuity workers pay for all their working lives, a retirement fund that is supposed to be backed by the full faith and credit of the United States.  But the government now says it may not have enough money to sustain the program and that benefits may be cut in the future and that’s unacceptable.”

 

ABOUT AMAC

The Association of Mature American Citizens [AMAC] [https://www.amac.us] is a vibrant, vital senior advocacy organization that takes its marching orders from its members.  We act and speak on their behalf, protecting their interests and offering a practical insight on how to best solve the problems they face today.  Live long and make a difference by joining us today at https://amac.us/join-amac.

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Jerry Helander
3 years ago

It’s my first venture onto the AMAC website. I read about only 10,000 turning 65 every year, and I realize that can’t be right!! That should perhaps be 10,000 each day!!!

Scottar
3 years ago

When the government says it has a program to help it’s subjects beware, most likely it’s another backdoor scam to get it’s hands in our back pockets and purses.

To fix the SS program I think 3 temporary measures should be taken. Raise the official retirement age to 67 unless the recipient has dire medical or financial problems. Erase the income barrier that can be taxed. Do a means testing. These shall remain in place until the fund is solvent. And all IOUs shall be paid off with interest.

I also would have every government official and servant placed on the fund in place of pensions.

In return the fund should be put into a hands off account unless there is a dire nationwide emergency effecting the welfare of the republic that requires a 66% vote to invade the funds such as imminent war.

Robert Bruck
3 years ago

I thought Social Security was in trust and payable to those who participated at retirement. How then do so many receive Social Security benefits from infants to adults and some immigrants whom have never participated. Yes the majority need help but that should be a very separate program not destabilizing Social Security .

nancy
3 years ago

Only the relatively low wage people pay into Social Security so take the income cap off and tax ALL income even the rich have to pay into Social Security. This would increase the balanced in the SSA trust fund. And only US citizens could collect.

Gary
3 years ago

Trusting the Social Security Trustees (nice, cute, and harmless name) is like trusting the liberal democrats to tell the truth, or trusting the fox to guard the henhouse. Wasn’t it on their watch that so much money was stolen from us by our own government? Wasn’t it their decisions to give our retirement money away to illegal aliens and those who haven’t paid into the system? If the trustees want to be trusted, they need to step up to the plate and demand our money back with interest and penalties.

Joe
3 years ago

Might want to correct your error. 10,000 people per day are turning 65, not 10,000 people per year.

Diane Schilling
3 years ago

Stop using it as a “get us re-elected” fund for our elected officials, and a support bank for our illegal immigrants and refugees and we won’t have a funding problem!! I am a senior now and am very tired of being robbed blind by Washington DC. DRAIN THE SWAMP

jbc
3 years ago

Starting in 1965 Congress has raided Social Security at least five (5) times, and under Obama Medicare the tune of $700+ Billion. It is also my understanding that the separate accounts for Social Security and Medicare were closed and the funds transferred to the “General Accounting” account t help hide Congresses actions. This amounts to Congressional Malfeasance and Fiduciary Irresponsibility! In the “private sector this would garner fines/forfeiture of assists and prison time. It is my strong belief that both the Republican and Democratic Parties need to repay ALL funds confiscated since the 1960’s with interest and an minimum of 10% of the cumulative sum in fines. In addition, any member of Congress that has served three or more terms needs to be booted out, and these programs returned to their original intent so that non-participants do NOT receive benefits.

To take this a step further, the President and ALL members of Congress and their staff should participate in Social Security and Medicare. SS being their RETIREMENT INCOME. It is a travesty that they get their salaries as retirement income, particularly since they don’t earn it.

Trudi
3 years ago

Congress has its own retirement program. It should be dissolved and added to the social security that the rest of us have. That should fix it

P. Luc
3 years ago

Need to remove disabilities from social security coverage and adjust/increase age of recipients due to longer life spans. Also, added payments for minor children of recipients should be discontinued. Social Security is intended to be a supplement for retirement, not total retirement income.

Ron
3 years ago

There are several problems with SS. 1st,- The rust fund was raided by several presidents who gave the money to Illegal aliens. 2nd. – monies were “borrowed” from the SS Trust fund and never repaid with interest. 3rd.- Congress needs to remove the earnings cap entirely for SS and Medicare. Do some simple math and your’ll see just how much the fund would realize in added funding. For example, the current law limits SS taxes at $128,000. To make it easy to understand, if the SS tax is 5% than the tax is $6400. This is the maximum and the cap at present. If the cap would be eliminated, than those who earn $130,000 and up would pay into the system just like everyone else. In this example, those earning $500,000.00 per year would pay $25,000 into the system. AT $1,000,000.000 the amount would be $50,000.00 per year. Think about it, on only 2 examples the additional revenue paid into the SS System increased by $75,000.00 and that’s only 2 individuals!
If 2% of the taxpayers in the United States pay 50% of our current tax revenue into the IRS, then Congress needs to get off it’s backside and begin working for the working class people in this Country! The Social Security dilemma could be rectified in just a few short years – PROVIDED Congress does not permit monies to be paid to people who have not paid into the system!
Of course, Congress must also pay into the system. As for those persons whose income BEFORE SS is over $50,000.00, then SS should be reduced by an amount that is commensurate with a sliding scale up to $80,000.00 at which point no SS would be paid. Medicare would pay for catastrophic conditions etc.
As a conservative, this is the only way, that I can see, that can make our SS and Medicare Systems solvent again.

DAN
3 years ago

LEAVE the freaking fund alone have you not done enough damage
get the money from THE TRAITOR GEORGE SOROS AND TOM SEYER THE MULTI MILLIONARE

DAN
3 years ago

these crooks have not paid back a PENNY THAT THEY ROBBEUS OF SINCE DAY ONE ALL WE HAVE IS A BUNCH OF IOUS IN A DRAW AND THEY WANT MORE
GET IS SOMEPLACE ELSE

H.K. Latham
3 years ago

Makes one angry. What do they mean first time they have dipped into the fund! It has been nothing but I.O.U.s for years. It could have been making interest, and then maybe we wouldn’t be in such bad shape. That and the abuse of giving out to illegal immigrants. The list goes on.

John Craig
3 years ago

Trump needs to pay off all the IOU’s Clinton, Bush and Obama took out of SS funds and never paid back. All three of those presidents used the SS funds as their slush fund, not giving a rats ass about the people in the USA. Reagan put 385 billion in during his last 4 years, to pay off what the former presidents took out and now Trump could also drop, 750 billion dollars back into SS, IT WOULD BE MONEY WELL SPENT FOR THE AMERICAN PEOPLE!

Georganna Lindsey
3 years ago

They need to further investigate disability claims. Young people are clogging up the SS offices with claims of disability. These are paid from Social Security and these people have worked very little. Too young. With closer supervision of expenses, I think enough fraud could be exposed to help the shortfall

Liam
3 years ago

If truth be known, there is no such thing as a Social Security Trust Fund. Congress stole that money several years ago and replaced it with worthless government IOUs. What I would like to know is if the money that Congress stole from the Social Security Trust fund years ago is included as part of the national debt, or is that S.S.debt off the books? If the SS Trustees have to dip into that so-called trust fund money, those Treasury Bonds (IOUs) will have to be sold, and who is going to be foolish enough to buy them? In my mind, they are worthless paper. So in reality, the SS mess is much larger than is being presented. It’s a disaster, as is the entire U.S. government’s fiscal situation.

ONTIME
3 years ago

There are those in government that in the past have literally taken monies for the SS and never intending to arrange to pay it back or reinstate the fund but every excuse that I hear never wants to disclose or remind you of that fact ….exp…LBJ used some $90 billion for his prosecution of the Viet Nam conflict, never repaid, like all entitlements it was a slush fund for the gov who perpetuated the lockbox lie…I suggest the subsidy monies given to illegals and immigrants be curtailed and that the government find the means to reduce wasted foreign aid and that welfare becomes a well oversighted fund to short circuit the fraud………

BobA
3 years ago

In my opinion, both parties are guilty of bilking the SS funds. Big govt just gets bigger and the seniors keep getting left behind. I still read where the young people believe SS is a govt give away program.

Diane Jone
3 years ago

Let’s start by converting the Congressional Pension plan to Social Security. then make them follow the same rules as us. This will begin to pay back all that was Stolen since LBJ moved the SS fund into his general funds and Congress saw a pot of gold and started to use it for everything and then changed the name to Entitlement. OUR money. Then make Congress pay SS tax. Take off the FICA yearly limit and pay all year. That fund would then increase by leaps and bounds. CEOs are done by 2/1. Most of us never hit the limit. I know folks who only get 600 a month on SS. Farmers.
My Mom is a Notch baby so she gets less. Rededicate the fund. 2016 Lance stopped the House from using our SS fund. Now SS office told me that they do not issue SS cards to Illegal immigrants. No birth certificate. No proof of citizenship. If they are using a fake number; it is no longer going thru the system if that number had been deceased. I called the office. So they should NOT be receiving any money legally. We all know there are some Liberal idiots out there that will give away our entire country if they could. This should only be paid out to those who paid into it.

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