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Social Security official: Raid retirement fund
Posted By -NO AUTHOR- On 03/20/2013 @ 11:20 pm In Health,Money,Politics,U.S. | No Comments
(BusinessInsider) Stephan Goss, the chief actuary for Social Security (SS) provided a detailed report on the status of the SS Disability Fund (DI) to the House of Representatives. The short story is that DI is going bust in a few years. The options to fix this problem were spelled out in the report. The extremes of the required “fix” range from an immediate cut in DI benefits of 16%, or an increase in DI payroll taxes of 20%.
Nothing new there. But, there is a “Plan B” for the DI Fund. The solution is to raid the SS Retirement Fund for the deficits at DI:
A simple tax-rate reallocation between OASI and DI, as was done in 1994, could equalize the financial prospects of the trust funds avoiding reserve depletion until 2033.
Note: “Simple tax-rate reallocation” means $40+b a year….
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