what is the current balance of the social security trust fund
$2,801 billion
1527191
the program revenues. During 2016, the initial balance as of January 1 was $2,780 billion. An additional $710 billion in payroll tax revenue and $87 billion in interest added to the Fund during 2016, while expenses of $776 billion were removed from the Fund, for a December 31, 2016 balance of $2,801 billion (i.e., $2,780 + $710 + $87 - $776 = $2,801). On February 2, 2005, President George W. Bush made Social Security a prominent theme of his State of the Union Address. One consequence was increased public attention to the nature of the Social Security Trust Fund. Unlike
Social Security Trust Fund
1527191
the program revenues. During 2016, the initial balance as of January 1 was $2,780 billion. An additional $710 billion in payroll tax revenue and $87 billion in interest added to the Fund during 2016, while expenses of $776 billion were removed from the Fund, for a December 31, 2016 balance of $2,801 billion (i.e., $2,780 + $710 + $87 - $776 = $2,801). On February 2, 2005, President George W. Bush made Social Security a prominent theme of his State of the Union Address. One consequence was increased public attention to the nature of the Social Security Trust Fund. Unlike
Social Security Trust Fund
4706695
Social Security payroll taxes and interest received are added to the Fund, while expenses (payments to recipients) are deducted from the Fund. For example, during 2016, the initial balance as of January 1 was $2,780 billion. An additional $710 billion in payroll tax revenue and $87 billion in interest added to the Fund during 2016, while expenses of $776 billion were removed from the Fund, for a December 31, 2016 balance of $2,801 billion (i.e., $2,780 + $710 + $87 - $776 = $2,801). The accumulated surpluses are invested in special non-marketable Treasury securities (treasuries) issued by the U.S. government,
Social Security debate in the United States
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is used to cover program deficits in a given year, the Trust Fund balance is reduced. By 2034, the Trust Fund is expected to be exhausted. Thereafter, payroll taxes are projected to only cover approximately 79% of program obligations. There have been various proposals to address this shortfall, including reducing government expenditures, such as by raising the retirement age; tax increases; and borrowing. The "Social Security Trust Fund" comprises two separate funds that hold federal government debt obligations related to what are traditionally thought of as Social Security benefits. The larger of these funds is the Old-Age and Survivors Insurance
Social Security Trust Fund
592391
the "full faith and credit" of the U.S. government, which has an obligation to repay its debt. The Social Security Administration's authority to make benefit payments as granted by Congress extends only to its current revenues and existing Trust Fund balance, "i.e.", redemption of its holdings of Treasury securities. Therefore, Social Security's ability to make full payments once annual benefits exceed revenues depends in part on the federal government's ability to make good on the bonds that it has issued to the Social Security trust funds. As with any other federal obligation, the federal government's ability to repay Social Security
Social Security (United States)
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trust fund balances. The trust funds earn interest. Both Social Security and Medicare each have two component trust funds. As of FY2008, Social Security had a combined $2.4 trillion trust fund balance and Medicare's was $380 billion. If during an individual year program payouts exceed the sum of tax income and interest earned during that year (i.e., an annual program deficit), the trust fund for the program is drawn down to the extent of the shortfall. Legally, the mandatory nature of these programs compels the government to fund them to the extent of tax income plus any remaining trust fund
Political debates about the United States federal budget
1527199
the reduction in the employees' share of payroll taxes from 6.2% to 4.2% of compensation. The resulting shortfall was appropriated from the general Government funds. This increased public debt, but did not advance the year of depletion of the Trust Fund. The Trust Fund represents a legal obligation of the federal government to program beneficiaries. Under current law, when the program goes into an annual cash deficit, the government has to seek alternate funding beyond the payroll taxes dedicated to the program to cover the shortfall. This reduces the trust fund balance to the extent this occurs. The program deficits
Social Security Trust Fund
1527189
age to 67 by the year 2027. As of the end of calendar year 2010, the accumulated surplus in the Social Security Trust Fund stood at just over $2.6 trillion. Social Security benefits are paid from a combination of social security payroll taxes paid by current workers and interest income earned by the Social Security Trust Fund. According to the projections of the Social Security Administration, the Trust Fund will continue to show net growth until 2022 because the interest generated by its bonds and the revenue from payroll taxes exceeds the amount needed to pay benefits. After 2022, without
Social Security Trust Fund
592390
by ). Current year expenses are paid from current Social Security tax revenues. When revenues exceed expenditures, as they did between 1983 and 2009, the excess is invested in special series, non-marketable U.S. government bonds. Thus, the Social Security Trust Fund indirectly finances the federal government's general purpose deficit spending. In 2007, the cumulative excess of Social Security taxes and interest received over benefits paid out stood at $2.2 trillion. Some regard the Trust Fund as an accounting construct with no economic significance. Others argue that it has specific legal significance because the Treasury securities it holds are backed by
Social Security (United States)
1527187
Social Security system is primarily a pay-as-you-go system, meaning that payments to current retirees come from current payments into the system. In 1977, President Jimmy Carter and the 95th Congress increased the FICA tax to fund Social Security, phased in gradually into the 1980s. In the early 1980s, financial projections of the Social Security Administration indicated near-term revenue from payroll taxes would not be sufficient to fully fund near-term benefits (thus raising the possibility of benefit cuts). The federal government appointed the National Commission on Social Security Reform, headed by Alan Greenspan (who had not yet been named Chairman of
Social Security Trust Fund
4706688
under current law. Social Security has collected approximately $2.8 trillion more in payroll taxes and interest than have been paid out since tax collection began in 1937. This surplus is referred to as the Social Security Trust Fund. The fund contains non-marketable Treasury securities backed "by the full faith and credit of the U.S. government". The funds borrowed from the program are part of the total national debt of $18.9 trillion as of December 2015. Due to interest, the Trust Fund will continue increasing through the end of 2020, reaching a peak of approximately $2.9 trillion. Social Security has the
Social Security debate in the United States
1527180
Social Security Trust Fund The Federal Old-Age and Survivors Insurance Trust Fund and Federal Disability Insurance Trust Fund (collectively, the Social Security Trust Fund or Trust Funds) are trust funds that provide for payment of Social Security (Old-Age, Survivors, and Disability Insurance; OASDI) benefits administered by the United States Social Security Administration. The Social Security Administration collects payroll taxes and uses the money collected to pay Old-Age, Survivors, and Disability Insurance benefits by way of trust funds. When the program runs a surplus, the excess funds increase the value of the Trust Fund. At the end of 2014, the Trust
Social Security Trust Fund
592418
three occasions since 1999 appointed a Technical Advisory Panel to review the methods and assumptions used in the annual projections for the Social Security trust funds. The most recent report of the Technical Advisory Panel, released in June 2008 with a copyright date of October 2007, includes a number of recommendations for improving the Social Security projections. , under current law, the Congressional Budget Office reported that the "Disability Insurance trust fund will be exhausted in fiscal year 2017 and the Old-Age and Survivors Insurance trust fund will be exhausted in 2033". Increased spending for Social Security will occur at
Social Security (United States)
1527202
small to modest increase in national savings and that the bulk of the trust fund has been "spent". Others suggest a more significant savings effect. Social Security Trust Fund The Federal Old-Age and Survivors Insurance Trust Fund and Federal Disability Insurance Trust Fund (collectively, the Social Security Trust Fund or Trust Funds) are trust funds that provide for payment of Social Security (Old-Age, Survivors, and Disability Insurance; OASDI) benefits administered by the United States Social Security Administration. The Social Security Administration collects payroll taxes and uses the money collected to pay Old-Age, Survivors, and Disability Insurance benefits by way of
Social Security Trust Fund
592409
At that point the system will begin drawing on its trust fund Treasury Notes, and will continue to pay benefits at the current levels until the Trust Fund is exhausted. In 2013, the OASDI retirement insurance fund collected $731.1 billion and spent $645.5 billion; the disability program (DI) collected $109.1 billion and spent $140.3 billion; Medicare (HI) collected $243.0 and spent $266.8 billion and Supplementary Medical Insurance, SMI, collected $293.9 billion and spent $307.4 billion. In 2013 all Social Security programs except the retirement trust fund (OASDI) spent more than they brought in and relied on significant withdrawals from their
Social Security (United States)
1527200
are expected to exhaust the fund by 2034. Thereafter, since Social Security is only authorized to pay beneficiaries what it collects in payroll taxes dedicated to the program, program payouts will fall by an estimated 21%. The trust fund is expected to peak in 2021 at approximately $3.0 trillion. If the parts of the budget outside of Social Security are in deficit, which the Congressional Budget Office and multiple budget expert panels assume for the foreseeable future, there are several implications: On the other hand, if other parts of the budget are in surplus and program recipients can be paid
Social Security Trust Fund
1527190
increases in Social Security taxes or cuts in benefits, the Fund is projected to decrease each year until being fully exhausted in 2034. At this point, if legislative action is not taken, the benefits would be reduced. The 2015 Trustees Report Press Release (which covered 2014 statistics) stated: Some basic equations for understanding the fund balance include: "Program revenues" has several components, including payroll tax contributions, taxation of benefits, and an accounting entry to reflect recent payroll tax cuts during 2011 and 2012, to make the fund "whole" as if these tax cuts had not occurred. These all add to
Social Security Trust Fund
1527182
intragovernmental debt was $5.1 trillion of the $18.2 trillion national debt. According to the Social Security Trustees, who oversee the program and report on its financial condition, program costs are expected to exceed non-interest income from 2010 onward. However, due to interest (earned at a 3.6% rate in 2014) the program will run an overall surplus that adds to the fund through the end of 2019. Under current law, the securities in the Trust Fund represent a legal obligation the government must honor when program revenues are no longer sufficient to fully fund benefit payments. However, when the Trust Fund
Social Security Trust Fund
4706713
Security is totally funded by the payroll tax levied on employer and employee. If you reduce the outgo of Social Security that money would not go into the general fund to reduce the deficit. It would go into the Social Security trust fund. So, Social Security has nothing to do with balancing a budget or erasing or lowering the deficit." The claims of the probability of future difficulty with the current Social Security system are largely based on the annual analysis made of the system and its prospects and reported by the governors of the Social Security system. While such
Social Security debate in the United States
4706696
which are deposited in the Social Security Trust Fund. At the end of 2009, the Trust Fund stood at $2.5 trillion. The $2.5 trillion amount owed by the federal government to the Social Security Trust Fund is also a component of the U.S. National Debt, which stood at $15.7 trillion as of May 2012. By 2017, the government had borrowed nearly $2.8 trillion against the Social Security Trust Fund. Projections were made by the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds (OASDI) in their 71st annual report dated May 13, 2011.
Social Security debate in the United States
1527185
the receipts and disbursements of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund shall not be counted as new budget authority, outlays, receipts, or deficit or surplus for purposes of - (1) the budget of the United States Government as submitted by the President, (2) the congressional budget, or (3) the Balanced Budget and Emergency Deficit Control Act of 1985. The trust funds run surpluses in that the amount paid in by current workers is more than the amount paid out to current beneficiaries. These surpluses are given to the U.S. Treasury (and
Social Security Trust Fund
4706783
current retirees, and a second time to fund their own retirement. Critics have asserted that the funding mechanism of Social Security's pay-as-you-go funding mechanism has similarities with an illegal Ponzi scheme, where early investors are paid off out of the funds collected from later investors instead of from profits from business activity. In particular, they describe a sustainability problem that they say happens when the number of new contributors declines. William G. Shipman of the Cato Institute argues: In common usage a trust fund is an estate of money and securities held in trust for its beneficiaries. The Social Security
Social Security debate in the United States
4706782
far more benefits than they paid into the system. Robert J. Shiller noted that "the initial designers of the Social Security System in 1935 had envisioned the building of a large trust fund", but "the 1939 amendments and subsequent changes prevented this from happening". As such, the gift to the first generation is necessarily borne by subsequent generations. In this pay-as-you-go system, current workers are paying the benefits of the previous generation, instead of investing for their own retirement, and therefore, attempts at privatizing Social Security could result in workers having to pay twice: once to fund the benefits of
Social Security debate in the United States
1527181
Fund contained (or alternatively, was owed) $2.79 trillion, up $25 billion from 2013. The Trust Fund is required by law to be invested in non-marketable securities issued and guaranteed by the "full faith and credit" of the federal government. These securities earn a market rate of interest. Excess funds are used by the government for non-Social Security purposes, creating the obligations to the Social Security Administration and thus program recipients. However, Congress could cut these obligations by altering the law. Trust Fund obligations are considered "intra-governmental" debt, a component of the "public" or "national" debt. As of June 2015, the
Social Security Trust Fund
4706715
is more a myth than a fact. The Social Security public trustees including Charles Blahous warned in May 2013 that the "window for effective action" to take place was "rapidly closing", with less favorable options available to rectify the problems as time passes. Proponents of the current system argue if and when the Trust Fund runs out, there will still be the choice of raising taxes or cutting benefits, or both. Advocates of the current system say that the projected deficits in Social Security are identical to the "prescription drug benefit" enacted in 2002. They say that demographic and revenue
Social Security debate in the United States
15946612
have already paid into the system because "there are people in need," and "government is the only entity able to provide in some cases." But he believes in what he calls enacting "responsible entitlement reform," because the notion "that we can control spending and balance the budget without reforming Medicare, Medicaid and Social Security" is "lunacy." Johnson says Social Security is valuable and is fixable without raising taxes. He wants "Social Security to reflect today's realities without breaking trust with retirees." He supports raising the retirement age, multi-pronged means testing for Social Security recipients, and changing the escalator built into
Political positions of Gary Johnson
592341
entrusted to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, the two Social Security Trust Funds. With a few exceptions, all salaried income, up to an amount specifically determined by law (see tax rate table below), is subject to the Social Security payroll tax. All income over said amount is not taxed. In 2018, the maximum amount of taxable earnings was $128,400. With few exceptions, all legal residents working in the United States now have an individual Social Security number. Indeed, nearly all working (and many non-working) residents since Social Security's 1935 inception
Social Security (United States)
1527184
(OASI) Trust Fund, which holds in trust special interest-bearing federal government securities bought with surplus OASI payroll tax revenues. The second, smaller fund is the Disability Insurance (DI) Trust Fund, which holds in trust more of the special interest-bearing federal government securities, bought with surplus DI payroll tax revenues. The trust funds are "off-budget" and treated separately in certain ways from other federal spending, and other trust funds of the federal government. From the U.S. Code: EXCLUSION OF SOCIAL SECURITY FROM ALL BUDGETS , title XIII, Sec. 13301(a), Nov. 5, 1990, , provided that: Notwithstanding any other provision of law,
Social Security Trust Fund
592392
is based on its power to tax and borrow and the commitment of Congress to meet its obligations. In 2009 the Office of the Chief Actuary of the Social Security Administration calculated an unfunded obligation of $15.1 trillion for the Social Security program. The unfunded obligation is the difference between the future cost of Social Security (based on several demographic assumptions such as mortality, work force participation, immigration, and age expectancy) and total assets in the Trust Fund given the expected contribution rate through the current scheduled payroll tax. This unfunded obligation is expressed in present value dollars and is
Social Security (United States)
4706738
30% for those aged 50–64, but is above 60% for those 18-49. This view runs contrary to the Social Security Trustees Reports, which indicate that since payroll taxes are dedicated to the program by law, even without reform Social Security will pay about 75% of promised benefits after the Trust Fund is exhausted in the early 2030s. Critics argue that privatizing Social Security does nothing to address the long-term funding concerns. Diverting funds to private accounts would reduce available funds to pay current retirees, requiring significant borrowing. An analysis by the Center on Budget and Policy Priorities estimates that President
Social Security debate in the United States
1527196
holdings of "special" government bonds are an investment that returned 5.5% to the trust funds in 2005. The trust funds cannot resell these "special" government bonds on the secondary bond market, although the interest rate is determined based on market interest rates. Instead, the "specials" can be sold back to the government at face value, which is an advantage when interest rates are rising. The week after his State of the Union speech, Bush downplayed the importance of the Trust Fund: Some in our country think that Social Security is a trust fund – in other words, there's a pile
Social Security Trust Fund
2134305
also be classified into marketable or non-marketable securities. Most of the marketable securities are Treasury notes, bills, and bonds held by investors and governments globally. The non-marketable securities are mainly the "government account series" owed to certain government trust funds such as the Social Security Trust Fund, which represented $2.74 trillion in 2011. The non-marketable securities represent amounts owed to program beneficiaries. For example, in the case of the Social Security Trust Fund, the payroll taxes dedicated to Social Security were credited to the Trust Fund upon receipt, but spent for other purposes. If the government continues to run deficits
National debt of the United States
17367153
joke and a tribute to Prof. Barkley Rosser, Jr. of James Madison University, an economist friend of mine who pointed out a surprising result: real payable benefits after projected Trust Fund depletion and subsequent 25% cut will still be higher in actual basket of goods terms than those of current retirees,". The most important inputs to the equation are the projections from the SSA Trust Fund reports, which depend on demographic and economic assumptions. Rosser's equation In economics, Rosser's equation (named after J. Barkley Rosser, Jr.) calculates future US Social Security Administration Trust Fund balances and payments as the ratio
Rosser's equation
17686061
Trust Fund Recovery Penalty In the United States, the term trust fund recovery penalty refers to a tax penalty assessed against the directors or officers of a business entity which failed to pay a required tax on behalf of its employees. The name derives from the fact that Social Security and Medicare taxes are paid into a trust fund which is used to pay out benefits under these programs. Section 6672 of the Internal Revenue Code provides that employers (rather than the employees themselves) must pay Social Security and Medicare taxes on their employees wages, as well as withhold a
Trust Fund Recovery Penalty
16468657
of what would happen when people born during the post–World War II baby boom retired. The NCSSR made several recommendations for addressing the issue. Under the 1983 amendments to Social Security, a previously enacted increase in the payroll tax rate was accelerated, additional employees were added to the system, the full-benefit retirement age was slowly increased, and up to one-half of the value of the Social Security benefit was made potentially taxable income. The 1983 Amendments also included a provision to exclude the Social Security Trust Fund from the unified budget (to take it "off-budget.") Yet today Social Security is
History of Social Security in the United States
592410
respective trust funds to pay their bills. The retirement (OASDI) trust fund of $2,541 billion is expected to be emptied by 2033 by one estimate as new retirees become eligible to join. The disability (DI) trust fund's $153.9 billion will be exhausted by 2018; the Medicare (HI) trust fund of $244.2 billion will be exhausted by 2023 and the Supplemental Medical Insurance (SMI) trust fund will be exhausted by 2020 if the present rate of withdrawals continues—even sooner if they increase. The total "Social Security" expenditures in 2013 were $1,360 billion dollars, which was 8.4% of the $16,200 billion GNP
Social Security (United States)
15382554
will exceed payroll tax revenues, resulting in the gradual reduction of the trust funds balance as the securities are redeemed against other types of government revenues. By 2037, according to some estimates, the trust funds will be exhausted. Under current law, Social Security payouts would be reduced by 24% at that time, as only payroll taxes are authorized to cover benefits. The present value of unfunded obligations under Social Security as of January 1, 2009 has been estimated at approximately $5.3 trillion over a 75-year horizon. In other words, this amount would have to be set aside today such that
Expenditures in the United States federal budget
16468655
not keep up with the increasing benefits that were being given out. Continued high unemployment levels also lowered the amount of Social Security tax that could be collected. These two developments were decreasing the Social Security Trust Fund reserves. In 1982, projections indicated that the Social Security Trust Fund would run out of money by 1983, and there was talk of the system being unable to pay benefits. The National Commission on Social Security Reform (NCSSR), chaired by Alan Greenspan, was empaneled to investigate the long-run solvency of Social Security. The 1983 Amendments to the SSA were based on the
History of Social Security in the United States
1527192
a typical private pension plan, the Social Security Trust Fund does not hold any marketable assets to secure workers' paid-in contributions. Instead, it holds non-negotiable United States Treasury bonds and U.S. securities backed "by the full faith and credit of the U.S. government". The trust funds have been invested primarily in non-marketable Treasury debt, first, because the Social Security Act prohibits "prefunding" by investment in equities or corporate bonds and, second, because of a general desire to avoid large swings in the Treasuries market that would otherwise result if Social Security invested large sums of payroll tax receipts in marketable
Social Security Trust Fund
1527197
of money being accumulated. That's just simply not true. The money – payroll taxes going into the Social Security are spent. They're spent on benefits and they're spent on government programs. There is no trust. These comments were criticized as "lay[ing] the groundwork for defaulting on almost two trillion dollars' worth of US Treasury bonds". However, even right-leaning politicians have been inconsistent with the language they use when referencing Social Security. For example, Bush has referred to the system going "broke" in 2042. That date arises from the anticipated depletion of the Trust Fund, so Bush's language "seem[s] to suggest
Social Security Trust Fund
592389
W-3. Some specific wages are not part of the Social Security program (discussed below). Internal Revenue Code provisions section 3101 imposes payroll taxes on individuals and employer matching taxes. Section 3102 mandates that employers deduct these payroll taxes from workers' wages before they are paid. Generally, the payroll tax is imposed on everyone in employment earning "wages" as defined in 3121 of the Internal Revenue Code. and also taxes net earnings from self-employment. Social Security taxes are paid into the Social Security Trust Fund maintained by the U.S. Treasury (technically, the "Federal Old-Age and Survivors Insurance Trust Fund", as established
Social Security (United States)
4706723
whole into actuarial balance through 2087 with the taxable maximum set according to current law [$118,500 in 2015], the combined OASDI payroll tax rate could be permanently increased by about 3.5 percentage points...Under that option, the combined OASDI payroll tax rate would rise from 12.4 percent to 15.9 percent in 2015. Revenues credited to the Social Security trust funds in 2015 would increase by about 28 percent." This would raise taxes for a worker earning $50,000 by about $900 per year. The AARP publishes its views on Social Security reform options periodically. It summarized its views on a series of
Social Security debate in the United States
4706689
legal authority to draw amounts from other government revenue sources besides the payroll tax, to fully fund the program, while the Trust Fund exists. However, payouts greater than payroll tax revenue and interest income over time will liquidate the Trust Fund by 2035, meaning that only the ongoing payroll tax collections thereafter will be available to fund the program. There are certain key implications to understand under current law, if no reforms are implemented: President Barack Obama opposed privatization (i.e., diverting payroll taxes or equivalent savings to private accounts) or raising the retirement age, but supported raising the annual maximum
Social Security debate in the United States
592413
than is necessary to cover costs, so trust fund assets will continue to grow during that time period. Beginning in 2023, trust fund assets will diminish until they become exhausted in 2036. Non-interest income is projected to be sufficient to support expenditures at a level of 77 percent of scheduled benefits after trust fund exhaustion in 2036, and then to decline to 74 percent of scheduled benefits in 2085. In 2007, the Social Security Trustees suggested that either the payroll tax could increase to 16.41 percent in 2041 and steadily increased to 17.60 percent in 2081 or a cut in
Social Security (United States)
17806698
on the preferences of the original contributor. Donors Capital Fund is associated with Donors Trust. Donors Trust refers clients to Donors Capital Fund if the client plans to maintain a balance of 1 million or more. As of 2016, the board of directors of Donors Capital Fund includes: According to "The Guardian", Donors Trust and Donors Capital Fund distributed nearly 120 million to more than 100 groups skeptical of global warming between 2002 and 2010. According to a 2013 analysis by Drexel University environmental sociologist Robert Brulle, Donors Trust and Donors Capital Fund combined were the largest funders of what
Donors Capital Fund
1527201
from the general fund, then no additional debt need be issued. However, this scenario is highly unlikely. Some commentators believe that whether the trust fund is a fact or fiction comes down to whether the trust fund contributes to national savings or not. If $1 added to the fund increases national savings, or replaces borrowing from other lenders, by $1, the trust fund is real. If $1 added to the fund does not replace other borrowing or otherwise increase national savings, the trust fund is not "real". Some economic research argues that the trust funds have led to only a
Social Security Trust Fund
11292844
1950 are: Years of coverage Years of coverage, for purposes of the American Social Security program, are years in which a beneficiary is considered to have contributed a substantial amount into the Social Security Trust Fund. Years of coverage are used in the computations in whether and how to apply the Windfall Elimination Provision. Years of coverage are not the amounts used in similar computations, such as with Quarter Credits. Years of coverage are calculated in two different manners. Because the amount paid into the Social Security Trust Fund were not identified by year prior to 1951, Years of coverage
Years of coverage
11292842
Years of coverage Years of coverage, for purposes of the American Social Security program, are years in which a beneficiary is considered to have contributed a substantial amount into the Social Security Trust Fund. Years of coverage are used in the computations in whether and how to apply the Windfall Elimination Provision. Years of coverage are not the amounts used in similar computations, such as with Quarter Credits. Years of coverage are calculated in two different manners. Because the amount paid into the Social Security Trust Fund were not identified by year prior to 1951, Years of coverage before 1951
Years of coverage
11262815
benefits: The amount of a RIB payment is based upon several factors, including: social security payroll taxes paid into the Social Security Trust Fund, the age at which benefits are claimed, the current earned income of an individual, and military service. The primary factor in deciding the amount of a RIB payment is the PIA which may be computed in different ways; the highest PIA is used on a person's record. Where a new start method and an old start method come up with the same PIA, it is considered that the new start method is used. RIB benefits can
Retirement Insurance Benefits
4706698
general fund, which for decades has been borrowing the Trust Fund's surplus and applying it to its expenses to partially satisfy budget deficits. To finance such a projected call on the general fund, some combination of increasing taxes, cutting other government spending or programs, selling government assets, or borrowing would be required. The balances in the Trust Fund are projected to be depleted either by 2036 (OASDI Trustees' 2011 projection), or by 2038 (Congressional Budget Office's extended-baseline scenario) assuming proper and continuous repayment of the outstanding treasury notes. At that point, under current law, the system's benefits would have to
Social Security debate in the United States
16129904
of the Social Security Trust Fund during the period the Trust Fund is liquidated, which is expected to occur between 2015 and the mid-2030s. This replacement of intragovernmental debt with debt held by the public would not occur if: a) The U.S. runs on-budget surpluses sufficient to offset "off-budget" deficits in the Social Security program; or b) Social Security is reformed to maintain an off-budget surplus. Work by economists Carmen Reinhart and Kenneth Rogoff reported in 2010 was used to imply that a debt level of 90% of GDP was a dangerous threshold, a conclusion that had been particularly influential
Political debates about the United States federal budget
3147502
1982 Act accomplished this goal by eliminating many unintended and obsolete tax incentives, and by strengthening the individual minimum tax on high-income individuals. Social Security Amendments of 1983, Public Law. 98-21 (April 20, 1983). The 1983 Social Security Act provided solvency for the social security system which was facing bankruptcy before the enactment of this critical bill. Specifically, the 1983 Act secured the financial solvency of the Social Security Trust Fund by providing a dependable stream of revenues to the Trust Fund and by rationalizing the benefit structure including the retirement age determining benefit eligibility. Interest and Dividends Tax Compliance
Dan Rostenkowski
15382569
constant for various periods of time. President Obama proposed freezing discretionary spending representing approximately 12% of the budget in his 2011 State of the Union address. Budgeted net interest on the public debt was approximately $245 billion in FY2012 (7% of spending). During FY2012, the government also accrued a non-cash interest expense of $187 billion for intra-governmental debt, primarily the Social Security Trust Fund, for a total interest expense of $432 billion. This accrued interest is added to the Social Security Trust Fund and therefore the national debt each year and will be paid to Social Security recipients in the
Expenditures in the United States federal budget
15382553
were adopted in the early 1980s, Social Security payroll taxes have exceeded benefit payments. In FY2008, Social Security received $180 billion more in payroll taxes and accrued interest than it paid out in benefits. This annual surplus is credited to Social Security trust funds that hold special non-marketable Treasury securities. The Social Security surplus reduces the amount of U.S. Treasury borrowing from the public, as the surplus funds may be used for other government purposes. The total balance of the trust funds was $2.4 trillion in 2008 and is estimated to reach $3.7 trillion by 2016. At that point, payments
Expenditures in the United States federal budget
14042962
to the school board and school administration. In 2009, the district reported $469,469 in an unreserved-undesignated fund balance. The designated fund balance was reported as $689,407. The district is funded by a combination of: a 1% local earned income tax, a property tax, a real estate transfer tax 0.5%, coupled with substantial funding from the Commonwealth of Pennsylvania and the federal government. In Pennsylvania, pension income and social security income is exempt from state income tax and local earned income tax. In the Commonwealth of Pennsylvania, pension and Social Security income are exempted from state personal income tax and local
Keystone School District
14589039
to support future social security expenditures and other social security needs. Under relevant provisions of the Interim Management Measures on the Investments of the National Social Security Fund, the Interim Management Measures on the Overseas Investments of the National Social Security Fund, the NSSF are permitted to invest in the following products: 1. Domestic investments: bank deposits, treasury bonds, financial bonds, corporate bonds, securitized products, securities investment funds, stocks, industrial investments, industrial investment funds and trust investments. 2. Overseas investments: bank deposits, foreign treasury bonds, bonds of international financial organizations, bonds of foreign entities, foreign corporate bonds, overseas bonds issued
National Council for Social Security Fund
4706748
Social Security for lower returns than the returns available from other investments, and cite numbers based on historical performance. The Heritage Foundation, a conservative think tank, calculates that a 40-year-old male with an income just under $60,000, will contribute $284,360 in payroll taxes to the Social Security Trust Fund over his working life, and can expect to receive $2,208 per month in return under the current program. They claim that the same 40-year-old male, investing the same $284,360 equally weighted into treasuries and high-grade corporate bonds over his working life, would own a PRA at retirement worth $904,982 which would
Social Security debate in the United States
17678234
Social Security Reserve Fund (Spain) The Social Security Reserve Fund was created in 2000 with the aim of investing current social security surpluses to finance future State Pension Scheme shortfalls. It was created as one of the recommendations of the tri-partite Pacto de Toledo of 1995 between government, employers and trade unions. In 2009 the fund amounted to 60 Bn€ and in 2010 assets had increased to 64 Bn€. The establishment of the Social Security Reserve Fund was part of the 1994 Toledo Pact agreement between government, employers and unions. Under the agreement the surpluses of the social security system
Social Security Reserve Fund (Spain)
10574817
of their annual incomes into the Program, the money the participants elected to put into the Program would be deductible from their income for tax purposes each year, the money the participants put into the independent "Trust Fund" rather than into the General operating fund, and therefore, would only be used to fund the Social Security Retirement Program, and no other Government program, and, the annuity payments to the retirees would never be taxed as income. During the Lyndon B. Johnson administration Social Security moved from the trust fund to the general fund. Participants may not have an income tax
History of taxation in the United States
12354427
recurrent budget. There is no specific language in the agreement that established the Tuvalu Trust Fund as to the minimum balance of the 'B Account'. There has been a debate about how much of a buffer is sufficient. The board of the fund have settled on a target CIF balance of 16 percent of the maintained value of the fund. The Tuvalu Trust Fund was established with a management structure that was designed to avoid the mismanagement and corruption that has plagued many other Pacific trust funds. One important element of the Tuvalu Trust Fund is that it is structured
Tuvalu Trust Fund
13337375
Security system is a funded program. It is funded through a payroll tax (FICA) that is paid by employees and employers. The proceeds of this tax are paid into the Social Security Trust Funds which had a balance of $2,804,858 million as of July 2014. The funding status of US Social Security is reviewed annually by the Social Security Office of the Chief Actuary. A report on the status of US Social Security is issued annually by the Social Security Trustees, projecting funding needs out 75 years. In many countries, such as the USA, the UK and Australia, most private
Defined benefit pension plan
14915038
and means testing for Social Security recipients. Though claiming that these changes were necessary to "save and secure this vital, popular program", Ribble's letter also proposed cutting the FICA withholding rate and reducing the cap on wages that are used to fund the Social Security Trust Fund which would reduce revenues for the Fund. In June 2015, Congressman Ribble introduced the Bridge to Sustainable Infrastructure Act. Congressman Jim Renacci co-sponsored the bill with Ribble. If signed into law, the bill would provide long-term funding to the Highway Trust Fund and federal programs to rebuild roads, highways and bridges. After introducing
Reid Ribble
17678236
und EU rules. In 2014 it is expected to withdraw another 11 Bn, Having reached 66 Bn euros in 2010 it fell to 59 Bn in 2012 and will end 2013 with 53 Bn eur. Social Security Reserve Fund (Spain) The Social Security Reserve Fund was created in 2000 with the aim of investing current social security surpluses to finance future State Pension Scheme shortfalls. It was created as one of the recommendations of the tri-partite Pacto de Toledo of 1995 between government, employers and trade unions. In 2009 the fund amounted to 60 Bn€ and in 2010 assets had
Social Security Reserve Fund (Spain)
1527186
thus become part of the general federal budget) in exchange for special U.S. government securities, which are deposited into the trust funds. If the trust funds begin running deficits, meaning more in benefits are paid out than contributions paid in, the Social Security Administration is empowered to redeem the securities and use those funds to cover the deficit. The Board of Trustees of the Trust Funds is composed of 6 members: The Board of Trustees holds the trust funds. The Managing Trustee is responsible for investing the funds, which has been delegated to the Bureau of the Fiscal Service. The
Social Security Trust Fund
9018642
state, in increases in the basic education subsidy, accountability block grant and state share social security. Reserves - In 2008, the Clearfield Area School District reported an unreserved designated fund balance of zero and an unreserved-undesignated fund balance of $1,652,666.00. In 2010 the unreserved designated fund balance was $2,347,772. The unreserved-undesignated fund balance was $1,886,446. Pennsylvania school district reserve funds are divided into two categories – designated and undesignated. The undesignated funds are not committed to any planned project. Designated funds and any other funds, such as capital reserves, are allocated to specific projects. School districts are required by state
Clearfield Area School District
592412
the next 75 years. In 2005, this exhaustion of the OASDI Trust Fund was projected to occur in 2041 by the Social Security Administration or by 2052 by the Congressional Budget Office, CBO. Thereafter, however, the projection for the exhaustion date of this event was moved up slightly after the recession worsened the U.S. economy's financial picture. The 2011 OASDI Trustees Report stated: Annual cost exceeded non-interest income in 2010 and is projected to continue to be larger throughout the remainder of the 75-year valuation period. Nevertheless, from 2010 through 2022, total trust fund income, including interest income, is more
Social Security (United States)
16468658
treated like all the other trust funds of the Unified Budget. As a result of these changes, particularly the tax increases, the Social Security system began to generate a large short-term surplus of funds, intended to cover the added retirement costs of the "baby boomers." Congress invested these surpluses into special series, non-marketable U.S. Treasury securities held by the Social Security Trust Fund. Under the law, the government bonds held by Social Security are backed by the full faith and credit of the U.S. government. The Supreme Court has established that no one has any legal right to Social Security
History of Social Security in the United States
18222275
held personally liable for its non-payment. Trust-fund taxes include fuel taxes, sales taxes, excise taxes, and certain payroll taxes. Generally, any tax required to be withheld from an employee's paycheck (or required to be matched by the employer and additionally paid) for which the employee is liable for (or employer, for matching contributions), such as the employee (and employer) portion of the United States Social Security and Medicare taxes, and any tax a merchant is required to collect from a customer, can be considered trust-fund taxes. A trust-fund tax has the special characteristic that if it is owed by a
Trust-fund tax
592342
have had a Social Security number because it is requested by a wide range of businesses. In 2015, Social Security expenditures totaled $750.5 billion for OASDI and $146.6 billion for DI. Income derived from Social Security is currently estimated to have reduced the poverty rate for Americans age 65 or older from about 40% to below 10%. In 2018, the trustees of the Social Security Trust Fund reported that the program will become financially insolvent in the year 2034. Social Security Timeline A limited form of the Social Security program began, during President Franklin D. Roosevelt's first term, as a
Social Security (United States)
7160725
1969 budget. The surplus in the Social Security OASDI (Old Age Survivors and Disabilities Insurance) budget offsets the total deficit, making it appear smaller than it otherwise would. The Budget Enforcement Act of 1990, however changed this so that the two Social Security Trust Funds, and the operations of the Postal Service, are considered to be 'off-budget' and are excluded from the unified budget. This means that the Social Security Tax is not counted as revenue to the General Fund, and interest paid to the Trust Funds is counted as an expense to an external entity. Often Federal budget reports
Unified budget
4706697
Expenses exceeded tax receipts in 2010. The Trust Fund is projected to continue to grow for several years thereafter because of interest income from loans made to the US Treasury. However, the funds from loans made have been spent along with other revenues in the general funds in satisfying annual budgets. At some point, however, absent any change in the law, the Social Security Administration will finance payment of benefits through the net redemption of the assets in the Trust Fund. Because those assets consist solely of U.S. government securities, their redemption will represent a call on the federal government's
Social Security debate in the United States
16130003
the Trust Fund is reduced to the extent this occurs. Among the many alternatives CBO reported included: President Obama reduced the Social Security payroll tax portion paid by workers by two percentage points as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, a revenue reduction of about $100 billion per year. The law provided for the Social Security Trust Fund to be increased as if this tax cut did not occur, rendering the program financial whole. These cuts expired at the end of 2012. Republicans have argued for a reduction in the corporate income
Deficit reduction in the United States
16130020
a host of questions around fairness, as some professions are harder to sustain for elderly (e.g., manual labor) and the poor do not have as long a life expectancy as the rich. Budgeted net interest on the public debt was approximately $245 billion in FY2012 (7% of spending). During FY2012, the government also accrued a non-cash interest expense of $187 billion for intra-governmental debt, primarily the Social Security Trust Fund, for a total interest expense of $432 billion. This accrued interest is added to the Social Security Trust Fund and therefore the national debt each year and will be paid
Deficit reduction in the United States
8258842
at the Social Security Administration plans and directs a program of actuarial estimates and analyses relating to SSA-administered retirement, survivors and disability insurance programs and to proposed changes in those programs. It evaluates operations of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, conducts studies of program financing, performs actuarial and demographic research on social insurance and related program issues, and projects future workloads. In addition, the Office is charged with conducting cost analyses relating to the Supplemental Security Income (SSI) program, a general-revenue financed, means-tested program for low-income aged, blind and disabled
Office of the Chief Actuary
1527195
be done by executive order or by the Social Security Administration. Congress would have to pass legislation to repudiate these particular government bonds. This action by Congress could involve some political risk and, because it involves the financial security of older Americans, seems unlikely. An alternative to repudiating these bonds would be for Congress to simply cap Social Security spending at a level below that which would require the bonds to be redeemed. Again, this would be politically risky, but would not require a "default" on the bonds. From the point of view of the Social Security trust funds, the
Social Security Trust Fund
15382544
to drive both Social Security and Medicare into large deficits during the 21st century. Multiple government sources have argued these programs are fiscally unsustainable as presently structured due to the extent of future borrowing and related interest required to fund them; here is a 2009 summary from the Social Security and Medicare Trustees: Since the government borrowed and spent the trust funds' assets, there is no "lockbox" or marketable investment portfolio of $2.4 trillion for Social Security or $380 billion for Medicare. The trust funds contain non-marketable treasury securities that the government is legally obligated to pay. In the absence
Expenditures in the United States federal budget
7521620
as the distribution is for "supplemental and extra care over and above what the government provides" and is not for "support and maintenance" as defined by the eligibility rules of Supplemental Security Income as food and shelter. In practice, however, an SNT can fund social engagements and activities and can pay for adaptations to a home and the upkeep of those adaptations. Although SNTs are "irrevocable" that irrevocability only applies to the instructions written into the instrument itself; once the trust is executed the text cannot be altered. Special needs trusts can otherwise be revoked according to their own terms
Supplemental needs trust
592344
as well as coverage for the poor, dependent children, spouses, survivors and the disabled. By 1950, debates moved away from which occupational groups should be included to get enough taxpayers to fund Social Security to how to provide more benefits. Changes in Social Security have reflected a balance between promoting "equality" and efforts to provide "adequate" and affordable protection for low wage workers. The larger and better known programs under the Social Security Administration, SSA, are: The largest component of OASDI is the payment of retirement benefits. These retirement benefits are a form of social insurance that is heavily biased
Social Security (United States)
11271579
Windfall Elimination Provision The Windfall Elimination Provision (abbreviated WEP) is a statutory provision in United States law which affects benefits paid by the Social Security Administration under Title II of the Social Security Act. It reduces the Primary Insurance Amount (PIA) of a person's Retirement Insurance Benefits (RIB) or Disability Insurance Benefits (DIB) when that person is eligible or entitled to a pension based on a job which did not contribute to the Social Security Trust Fund. While in effect, it also affects the benefits of others claiming on the same social security record. The Social Security Amendments of 1983
Windfall Elimination Provision
9788445
Social Security benefits: both are free of Pennsylvania state income tax and local income tax which funds local public schools. In 2008, Susquehanna Township School District reported a $2,390,826.00 in an unreserved-undesignated fund balance. The designated fund balance was reported as $2,500,000. In 2010, Susquehanna Township School Administration reported an increase to $3,100,000 in the unreserved-undesignated fund balance and $5,321,527 in a designated fund. In 2013, Susquehanna Township School District reported $12,829,781 in reserves, with over $3 million in undesignated reserves. Pennsylvania school district reserve funds are divided into two categories – designated and undesignated. The undesignated funds are not
Susquehanna Township School District
1527188
the Federal Reserve), to investigate what additional changes to federal law were necessary to shore up the fiscal health of the Social Security program. The Greenspan Commission projected that the system would be solvent for the entirety of its 75-year forecast period with certain recommendations. The changes to federal law enacted in 1983 and signed by President Reagan and pursuant to the recommendations of the Greenspan Commission advanced the time frame for previously scheduled payroll tax increases (though it raised slightly the payroll tax for the self-employed to equal the employer-employee rate), changed certain benefit calculations, and raised the retirement
Social Security Trust Fund
7740213
Insurance trust fund will be exhausted in fiscal year 2017 and the Old-Age and Survivors Insurance trust fund will be exhausted in 2033". In December 2014, the SSDI program insured approximately 10.9 million beneficiaries including disabled workers and their spouses and children. The usage has been affected by the "treating physician rule" which gives "controlling weight" to determinations of the treating physicians. The rule was established in 1991 by the Social Security Administration (SSA) under the influence of federal courts and a law passed by Congress after the SSA was scrutinized in the 1980s for controversially relying largely on its
Social Security Disability Insurance
592346
the OASDI rate of 6.2% for workers and employers or 12.4% for the self-employed. Outgo of $140.3 billion while having income of only $109.1 billion means the disability trust fund is rapidly being depleted and may require either revisions on what "disabilities" are included/allowed/defined as, fraud minimization or tax increases. The Medicare hospital insurance, HI, (Part A: Hospital Insurance, inpatient care, skilled nursing facility care, home health care, and hospice care) expenditure rate of $266.8 billion in 2012—while bringing in only $243.0 billion—means that the medicare HI trust funds are being seriously depleted and increased taxes or reduced coverage will
Social Security (United States)
16261420
program. 3. The Federal Unemployment Account (FUA) provides loans to states under Title XII of the Social Security Act. All state loan repayments, either voluntary or through FUTA credit reduction, are deposited in this account, and so are loan interest payments. 4. The Federal Employees Compensation Account (FECA) finances benefit payments to former federal civilian and military employees. Unemployment Trust Fund The Unemployment Trust Fund (UTF) is composed of 59 accounts in the United States Treasury related to unemployment insurance program. Specifically, there are 53 state accounts, 4 federal accounts, and 2 accounts in connection with Railroad Retirement Board. There
Unemployment Trust Fund
7892548
balance. The designated fund balance was reported as zero. In March 2010, the Pennsylvania auditor General conducted a performance audit of the district. The findings were reported to the school board and the administration. It was concluded that the District did take appropriate corrective action to address the deficit fund balance of 2006. The district is funded by a combination of: a local income tax, a property tax, a real estate transfer tax, coupled with substantial funding from the Commonwealth of Pennsylvania and the federal government. In the Commonwealth of Pennsylvania, pension income and Social Security income are exempted from
North Star School District
661381
budgets did not actually emerge until the late 1990s when budget surpluses (not accounting for liabilities to the Social Security Trust Fund) emerged. The budgets quickly fell out of balance after 2000 and have run consistent and substantial deficits since then. Gramm–Rudman–Hollings Balanced Budget Act The Gramm–Rudman–Hollings Balanced Budget and Emergency Deficit Control Act of 1985 and the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (both often known as Gramm–Rudman) were the first binding spending constraints on the federal budget. The acts were named after U.S. Senators Phil Gramm (R-Texas), Warren Rudman (R-New Hampshire), and Fritz Hollings
Gramm–Rudman–Hollings Balanced Budget Act
592420
case of employment, the employer and employee are each responsible for one half of the Social Security tax, with the employee's half being withheld from the employee's pay check. In the case of self-employed persons (i.e., independent contractors), the self-employed person is responsible for the entire amount of Social Security tax. The portion of taxes collected from the employee for Social Security are referred to as "trust fund taxes" and the employer is required to remit them to the government. These taxes take priority over everything, and represent the only debts of a corporation or LLC that can impose personal
Social Security (United States)
4706752
who do not support privatization, point out potential pitfalls to the Trust Fund's undiversified portfolio, containing only treasuries. Many of these support the government itself investing the Trust Fund into other securities, to help boost the system's overall soundness through diversification, in a plan similar to CalPERS in the state of California. Among the proponents of this idea were some members of President Bill Clinton's 1996 Social Security commission that studied the issue; the majority of the group supported partial privatization, and other members put forth the idea that Social Security funds should themselves be invested in the private markets
Social Security debate in the United States
2134306
in other parts of the budget, the government will have to issue debt held by the public to fund the Social Security Trust Fund, in effect exchanging one type of debt for the other. Other large intragovernmental holders include the Federal Housing Administration, the Federal Savings and Loan Corporation's Resolution Fund and the Federal Hospital Insurance Trust Fund (Medicare). Only debt held by the public is reported as a liability on the consolidated financial statements of the United States government. Debt held by government accounts is an asset to those accounts but a liability to the Treasury; they offset each
National debt of the United States
4706716
projections might turn out to be too pessimistic—and that the current health of the economy exceeds the assumptions used by the Social Security Administration. These Social Security proponents argue that the correct plan is to fix Medicare, which is the largest underfunded entitlement, repeal the 2001–2004 tax cuts, and balance the budget. They believe a growth trendline will emerge from these steps, and the government can alter the Social Security mix of taxes, benefits, benefit adjustments and retirement age to avoid future deficits. The age at which one begins to receive Social Security benefits has been raised several times since
Social Security debate in the United States
18106526
three social partners in policy formulation and running of the organization. The current National Social Security Fund investment portfolio includes fixed income, real estate, and equities. This includes short term and long term bonds. As of 31 December 2010, the investment in long term bonds was KSH 24.64 Billion. The fund is owned by the Government of Kenya on behalf of the workers and employers in Kenya. Governance is overseen by a nine-member board of trustees with Dr. Anthony Omerikwa as the acting managing trustee. In formulating the fund’s policies the board of trustees acts strictly in accordance with the
National Social Security Fund (Kenya)
4079965
sum of benefit payments and administrative expenses. Revenues in excess of benefit payments are invested to provide additional trust fund income. The National Railroad Retirement Investment Trust manages and invests railroad retirement assets. Railroad retirement funds are invested in non-governmental assets, as well as in governmental securities. Additional trust fund income is derived from the financial interchange with the social security trust funds, revenues from federal income taxes on railroad retirement benefits, and appropriations from general treasury revenues provided after 1974 as part of a phase-out of certain vested dual benefits. Under the Railroad Unemployment Insurance Act, unemployment insurance benefits
Railroad Retirement Board
14589038
National Council for Social Security Fund The National Social Security Fund is a supplementary fund of the People's Republic of China which is used for social security. The fund was managed by National Council for Social Security Fund. On 1 August 2000, the Central Committee of CPC and the State Council decided to establish National Social Security Fund (NSSF), and set up the National Council for Social Security Fund (SSF) for managing and operating the NSSF’s assets. NSSF aims to be a solution to the problem of aging and serves as a strategic reserve fund accumulated by the central government
National Council for Social Security Fund
14589041
NCSSF's departments include: National Council for Social Security Fund The National Social Security Fund is a supplementary fund of the People's Republic of China which is used for social security. The fund was managed by National Council for Social Security Fund. On 1 August 2000, the Central Committee of CPC and the State Council decided to establish National Social Security Fund (NSSF), and set up the National Council for Social Security Fund (SSF) for managing and operating the NSSF’s assets. NSSF aims to be a solution to the problem of aging and serves as a strategic reserve fund accumulated by
National Council for Social Security Fund
1527194
has already been spent." At a Senate hearing in July 2001, Federal Reserve Chairman Alan Greenspan was asked whether the trust fund investments are "real" or merely an accounting device. He responded, "The crucial question: Are they ultimate claims on real resources? And the answer is yes." Like other U.S. government debt obligations, the government bonds held by the trust funds are guaranteed by the "full faith and credit" of the U.S. government. To escape paying either principal or interest on the "special" bonds held by the trust funds, the government would have to default on these obligations. This cannot
Social Security Trust Fund
1930943
of public administration whose responsibility covers only a local part of the economic territory, apart from local agencies of social security funds. "Social security fund" is a central, state or local institutional unit whose main activity is to provide social benefits. It fulfils the two following criteria: The "GFSM 2001" framework is similar to the financial accounting of businesses. For example, it recommends that governments produce a full set of financial statements including the statement of government operations (akin to the income statement), the balance sheet, and a cash flow statement. Two other similarities between the GFSM 2001 and business
Public finance
1527198
that there's "something" there that goes away in 2042." Specifically, in 2042 and for many decades thereafter, the Social Security system can continue to pay benefits, but benefit payments will be constrained by the revenue base from the 12.4% FICA (Social Security payroll) tax on wages. According to the Social Security trustees, continuing payroll tax revenues at the rate of 12.4% will enable Social Security to pay about 74% of promised benefits during the 2040s, with this ratio falling to about 70% by the end of the forecast period in 2080. In 2011 and 2012, the federal government temporarily extended
Social Security Trust Fund
592469
longer cover expenditures for Social Security, as demographic shifts burden the system. By 2035, the ratio of potential retirees to working age persons will be 37 percent—there will be less than three potential income earners for every retiree in the population. At this rate the Social Security Trust Fund would be exhausted by 2036. Social Security affects the saving behavior of the people in three different ways. The wealth substitution effect occurs when a person saving for retirement recognizes that the Social Security system will take care of him and decreases his expectations about how much he needs to personally
Social Security (United States)
15908101
Trust, as well as with respect to an individual donor's ultimate grantee. As a donor advised fund and public charity, Donors Trust accepts cash or assets from donors, and in turn creates a separate account for the donor, who may recommend disbursements from the fund to other public charities. Donors Trust requires an initial deposit of $10,000 or more. Donors Trust is associated with Donors Capital Fund. Donors Trust refers clients to Donors Capital Fund if the client plans to maintain a balance of $1 million or more. Donors Trust president Lawson Bader said the goal of the organization is
Donors Trust
9521219
it to be optimized for the annuitant. This growing market will drive improvements necessitating more research and development of instruments and increase insight into the mechanics involved on the part of the buying public. An example of increased scrutiny and discussion is that related to privatization of part of the U.S. Social Security Trust Fund. In late 2010, discussions related to cutting Federal taxes raised anew the following concern: how much would an annuity cost a retiree if he or she had to replace his or her Social Security income? Assuming that the average benefit from Social Security is $14,000
Life annuity
1709380
Active and Retired Federal Employees Associations said that the chained CPI does not account for seniors citizens' health care costs. Robert Reich, former United States Secretary of Labor under President Clinton, noted that typical seniors spend between 20 and 40 percent of their income on health care, far more than most Americans. "Besides, Social Security isn't in serious trouble. The Social Security trust fund is flush for at least two decades. If we want to ensure it's there beyond that, there's an easy fix – just lift the ceiling on income subject to Social Security taxes, which is now $113,700."
Consumer price index