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Originally Posted by mrhetzel
I suggest that everyone read the Social Security Law. Surprising what you'll learn. I was an administrator with the Social Security Administration for 32 years and have, at least, some knowledge of the law and the funding of the program.
Supplemental Security Income is a program funded out of General Tax Revenues and is a financial needs based program. In layman's terms, it's welfare. The income and resource limits are very low. To be considered "Disabled" you have to meet the same requirements as those for Social Security Disability. The program is administered by the Social Security Administration and ALL payments and administrative costs come from General Tax Revenues, NOT from Social Security Program income.
The Social Security Program is financed through FICA and Self-employment Taxes. It is a "pay-as-you-go" program. That is, when you were working your FICA or Self-employment tax paid for the benefits of the then retirees. Todays workers are paying for your monthly Social Security benefits. Any program income not immediately needed to pay monthly benefits and administrative costs (which are less than 3% of income) are invested in U.S. Government Securities at current interest rates, the same as you or I invest in Government securities. Is it an IOU? You could say that. But isn't your CD at the bank an IOU from the bank, or your checking or savings accounts, etc., etc? What does the bank do with your money on deposit there? It doesn't sit in a container with your name on it, but is invested by the bank in home mortgages, property, etc., so you can be paid interest on your CD, etc. Which would you rather have, an IOU for billions of $ from a bank, that could default, or the same IOU from the U.S. Government? The Social Security Law states that if the Social Security Program has insufficient funds to pay current benefits, those benefits WILL be paid from the General Treasury of the U.S.
Will the Social Security Program go broke? NO!! Despite what many politicians want you to believe, Congress will take whatever action is necessary to keep the Social Security Program solvent by increasing income to the Program. This can be done in any number of ways, too numerous to go into. Every politician and all political party's know that with over 25% of the population receiving Social Security Payments each month (retirement, survivors and disability benefits), and millions of voters knowing their parents, grand and great-grand parents are counting on the Social Security Payments each month, it would be the political kiss of death to have the program fail.  |
Thank You for your informative post. You obviously know the system after working 32 years with SSA.
Let me tell you how someone not even on SSA or SSI (myself) feels about "The System". First off you said that "SSI = welfare" and that means is a payroll tax by any other criteria. I don't know about you, but when the government taxes money out of my pocket it is a tax no matter if it is, FICA, Income, Capitol Gains. IT ALL COMES OUT OF THE SAME WORKING MAN'S POCKET.
How many taxpayers know that welfare hasn't been reformed in this country, only shifted to a program that is still payed for under the "General Tax Revenue", with a name "Social Security Insurance" that makes it appear that their tax dollars are not funding it? I and many others would feel that FICA, through payroll taxes, funds SSI. There is no question that both partys
will keep the system afloat, for the vote. That's not what concerns me.
SSA administers the SSI using the same criteria as SSI Disability. Those requirements are that one would have only worked the minimum number of quarters to earn the right to apply for SSD or SSI. Here lies the problem. A LARGE NUMBER OF PEOPLE ARE FAKING THEIR WAY INTO THE SSA SYSTEM. It cost us TAX DOLLARS. FICA Pay As You Go, General Fund or wherever, the American public are getting ripped off!
Let me give you an example of a family related to each other by marriage. You will probably need a flow chart to keep it all straight. I'm not sure I can keep it straight and I know all the players.
Start with the marriage of 1 + 2. 1's involvement ends here.
2 has 14 brothers and sisters and use to be married to 3, who has a brother.
3 faked a back injury and got on SSI. Easy to do if you determined to.
2's brother 4 married outsider 5. 5 has been on SSI since 15-16 years old because she is shy and can't get along with people. Guess what? 4, 5 and their two children 6 + 7 are now al on SSI. How nice!
Now 3's brother 8 married 2's sister 9 and they have two children, and guess what, they're all on SSI. 3's brother 8 is fond of saying and has said it in from of yours truly, "your the dumb one for working, I let the government support me and my family. ONLY IN AMERICA, I LOVE IT!"
One of 2's other brothers is on SSI and HE is the only one NOT faking it! And I feel I'm leaving someone out. Nine people related receiving SSI or SSD.
Now do you understand, that if I know of this one extended family ripping off SSI, how many others in my city are doing it. How many, extrapolated into my County, State, Country, are ripping off the system. I may have misunderstood who pays what out of what. All I know is that between all the SS systems my pockets are being picked to support deadbeats. I'd like to see SS reform, now.