SOCIAL SECURITY INFORMATION
What is Social Security? Social Security is a social insurance
program that provides old-age benefits for retirees and their
survivors, disability insurance for workers and survivor benefits
for dependents. It is called an entitlement because congress
has set eligibility criteria and if you meet the criteria, you
are entitled to the benefits. As social insurance, the system
does more than provide a base of income for the retired worker;
it consciously redistributes wealth to adjust for other inequities
in society and also provides financial relief to many who might
otherwise have to provide full support to aging or disable relatives.
How is Social Security financed? Social Security is financed
by matching contributions from employers and employees. Employees
currently pay 6.2 percent of their earnings, up to a maximum
of $57,600 into two separate trust funds - - 5.6 percent goes
into the Old Age and Survivors Insurance (OASI) fund and 0.6
percent is funneled into the Disability Insurance Fund. Employers
match this amount. Hardly a day goes by that people getting
Social Security aren't told by some so-called expert that their
benefits are gradually driving the federal deficit and pushing
America into a deep hole. The nation's crushing debt burden
will not ease, these thinkers insist, until our lawmakers confront,
and then tame, America's highly visible entitlement programs,
and by entitlements they make it clear they include Social Security.
Social Security does many things. For the poorest and most vulnerable
elderly, it is their primary source of income. For many families
facing hardship following a death, disability or unanticipated
retirement, the program lightens their burden. Social Security
also protects nine out of ten workers and their families and
provides benefits each month to more than three million children.
But there is one think Social Security doesn't do. It does not
contribute to the continued growth of the federal budget deficit.
Social Security is totally self-funded, and its growing reserves
- - another $60 billion this year - - provide a stable financial
base for current and future retirees. Based on this up-to-date
information we can put to rest any rumors about the Social Security
system going broke. Some groups, many claiming to represent
younger Americans, blame Social Security and older people for
the growing federal deficit. Not only is their argument false
and irresponsible, it is actually irrelevant to the debate.
Older Americans know that the fiscal and social deficits need
to be addressed but tinkering with Social Security is a touchy
situation and definitely not the way to ease the burden. Everyone
should be aware of the fact that information on Social Security
is readily available. Dial (800) 772-1213 to reach a representative
who can answer most questions.
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