Social Security Funds

[Billdit]

As a symbolic action, I'd like to see congress drop their cadillac insurance system in favor of Medicare and Obamacare-like insurance. Also a retirement plan that is more realistic ... not full pay after one to two terms in office... more like $15k a year after 30-40 years of service like the private sector... Any of this would not be "Big Bucks", but would show they are listening to us...otherwise, get rid of all of em...

[pennview]

There really is a lot of misinformation about regarding retirement and health care coverage for congressmen, as well as for federal employees.

Here's the current law on congressional retirement -- http://www.senate.gov/CRSReports/crs-pu ... 0%20%20%0A -- for anyone caring to look at how it is actually computed.

Congressmen don't get full pay after one or two terms in office and the law says that the max is 80 percent after 32 years of service. Congressmen and their staffs pay into Social Security and contribute to a retirement fund with the government also contributing but at a higher rate than the congressmen or thier staffs. This is similar to a 401k plan.

Their health plan is part of the Federal Employees Health Benefits (FEHB) plan. You can google it an read all about it. In round figures federal employees pay about 1/3 of the costs with the government picking up the other 2/3rds, and then there are coinsurance charges, deductable amounts, and copays that are additional.

[paulmcohen]

It doesn't seem to me as though they are putting anything back or even thinking about it. What they are doing, however, is threatening us that it might not be available when needed. Yeah, we know that. It was stolen.

If you did this you would go to jail, only the government can get away with this nonsense. They are doing two things wrong, they take the money current worker pay into Social Security to pay current benefits (it is not like a private retirement account), and the any extra (when there was extra) is borrowed to pay for general government programs. In exchange for the borrowed money the government puts in an IOU with no collateral backing it and they don't pay interest. The current outstanding obligation for Medicare and Social Security is 5-10 the published National Debt (around $100 trillion). There is no chance current workers under 40 will ever see Social Security or Medicare and if you live too long you won't either.

[fjimp]

Interesting discussion. A couple of years ago I raised questions during a small group discussion about how many problems the Obama health care law would introduce. One lady in the group shouted me down and informed me the law was perfect and exactly what our nation needs. This morning that lady was at a breakfast group my wife attended. She raised a discussion about how confusing harmful the Obama health care law is and that it needs to be replaced with a true single payer health care system. Those in attendance informed her this gathering already had a subject selected. All of which makes me wonder why the American people refuse to gather facts and determine what the facts really are demand and cost containment at the original source, that providing services and the wide array of products being consumed. As I understand it we are the only nation not doing so. Jim

[fjimp]

Interesting discussion. A couple of years ago I raised questions during a small group discussion about how many problems the Obama health care law would introduce. One lady in the group shouted me down and informed me the law was perfect and exactly what our nation needs. This morning that lady (same person who shouted me down before) was at a breakfast group my wife attended. She raised a discussion about how confusing and harmful the Obama health care law is and that it needs to be replaced with a true single payer health care system. Those in attendance informed her this gathering already had a subject selected. All of which makes me wonder why the American people refuse to gather facts and determine what the facts really are demand and cost containment at the original source, that providing services and the wide array of products being consumed. As I understand it we are the only nation not doing so. Jim

[heathicus]

As a benefit of their office, members of Congress should not receive retirement.

The health care should consist of a free annual checkup, and 100% coverage only for any injuries or illnesses directly attributable to the duties of their office.

And be limited to no more than 2 consecutive terms to any elected office.

[Ed in Tampa]

That reminds me of back in the 80's and Florida was discussing a lottery.
Most school teachers were for it, in fact I got in a rather heated debate with one that was campaining for it. Well it passed and every cent raised by the lottery went to the schools. However legislature decreased school funding by the amount they were getting from the Lottery. In other words the schools gained little or nothing. I happened to see this teacher now looking at retirement and reminded him of his pro lottery stance. He had nothing to say.

If any other entity did with insurance premiums what congress did with our social security insurance premiums they would be in prision for embezzlement.

[JPG]

I have been under the 'impression' for decades that the SS fund was 'covering' our deficit budgets.

I do not unnerstan anyone being 'surprised' at that today.

Too many things are predicated upon an inflationary spiral. Spend $ today, we can replace the $ with 'cheaper' $ later.

Real nice situation for fixed income folks!

End rant!

[swampgator]

http://www.healthcare.gov/news/brochures/for-you.pdf

Some other info about Social Security Trust Funds

http://www.ssa.gov/oact/progdata/investheld.html

Those federal employees on the old system established in 1920 did not pay into Social Security. CSRS was a retirement fund established by and for government workers and was not part of the general fund until the 1980's. Now, that is called an entitlement. However, in about 1982, those employees started paying FICA taxes. If the federal employee does not have 40 quarters paid, that employee still does not qualify nor can get Medicare. That employee may have paid Medicare taxes for 23 years, but still cannot get Medicare until the 40 quarters are paid. Check you local Social Security Administration office. I did and that's what I was told, and I showed all my pay stubs. It didn't matter. So.....
If I pay my Social Security taxes up to and including 40 quarters, they check to see if I get an OPM retirement. For easy figures, here's what happens. If I should qualify for $1000 per month from Social Security, that amount is deducted from my retirement check. It's call Government Offset Pension. Now, a new bill put in place in about 1995, called Windfall Elimination Program calls for a reduction of Social Security payments by 2/3's. Final tally, loose $1000 per month to gain back $330 from Social Security. Vaseline or KY jelly?

[heathicus]

I work for the state government and don't pay in to Social Security. I pay into a state run "defined benefit" retirement plan instead. I'm not sure which end of the stick I'm getting...