Re: Finding solutions to Social Security

From: "Steve Foulks" <steve_foulks@up.bresnan.net>
Subject: Re: Finding solutions to Social Security
Date: Fri, 31 Jul 1998 01:02:51 -0400

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>Date: Sat, 25 Jul 1998 16:00:09 -0400 (EDT)
>From: BARBARA SCHUTZ <bfs8488@email.unc.edu>
>Subject: Finding solutions to Social Security

>I am really interested in the discussion re "Social Security," but I am
>primarily interested in ideas that will help us solve the current
>funding problem.

There is no current funding problem.  In fact SS (OAISD) is going to run a
$85 billion surplus this year. The problem is that politicians have
increased benefits for all recipients to get reelected over its entire
history without given any consideration to the amounts paid into the system
by these recipients.

In your pension plan, your plan administrator will pay out benefits based
upon the amount of money contributed, how much it has earned and your age.
With SS congress changes (increases) benefits willy nilly without giving any
consideration to contributions made by recipients.  This has worked fine,
but when the numbers of retirees increases in relation to workers, the s--t
will hit the fan ultimately.  Current and previous retirees have made out
like bandits, whereas you will get screwed.

The attitude of a congressman is, "The problems won't surface for 15 years
or so and I will be out of congress by then, so I will avoid discussing the
medicine needed for SS to be solvent (i.e., reduce benefits to current
recipients to reflect their contributions) because the senior citizens will
vote me out if I touch SS.


 It seems that many are at work trying to protect our
>social fabric by devising ways to keep social security solvent. I think
>our government can use good ideas to accomplish that. Is anyone else
>interested in this discussion? BFS

There is a list at: owner-ss-optout-l-digest@teleport.com  which has
excellent discussions and articles on the SS conundrum.

Steven M. Foulks, CPA, CFP, PhD
<http://www-instruct.nmu.edu/business/sfoulks/>







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