Generations behind me voice concerns that there will be nothing in the Social Security Retirement Trust Fund when they retire. I hope the following clarifies the problem so their displeasure is properly directed.
First, there is no Retirement Trust Fund. The 1937 Social Security Act did create such a Trust with actual Trustees. Monies paid into it were to be used exclusively to partially ‘replace income lost’ due to ‘retirement in old age’. During the Reagan years, Congress enacted the Combined Federal Budget Act, which put all monies coming into the federal government into one pot. Congress then spend it. Fifteen plus years of wars in multiple countries plus decades of multi-billion dollar gifts of money to rich countries like Israel and Saudi Arabia has left us and our grandchildren with massive federal debt. Monies paid into the non-existent Retirement Trust are gone.
Second, by the 1960’s ‘retirement’ checks became payable to workers over the age of 72, even if their annual earnings were in the millions. Thus ended the ‘insurance’ aspect of the Federal Insurance Contributions Act (FICA). In fact, as of 2016 workers in their 60’s could continue to earn between $15,720 and $41,880 and still be paid retirement benefits.
Third, as of 2017, ‘retirement’ checks will be paid to everyone upon attaining the age of 66, including those earning millions and many members of Congress still on salary. Life expectancy is getting longer. For years, the Republican Party has controlled the Congress where budget bills originate. This massive giveaway and total collapse of any resemblance to partially ‘replacing income lost’ due to ‘old age retirement’ is the Republican Party’s doing.
Recently, I received a notice that I would be receiving a $5 per month Cost-Of-Living Adjustment. These COLA notices announced this new change to pay everyone beginning at age 66 regardless of earnings, which will add immensely to the national debt. This is part of Republican plans to destroy all social safety nets.
Wake up, Republican voters. This is your doing too.
Claire L. Kelly
Stevensville