29
Social Security A Strong Program That Should Be Strengthened, Not Cut!

Social Security

  • Upload
    percy

  • View
    23

  • Download
    0

Embed Size (px)

DESCRIPTION

Social Security. A Strong Program That Should Be Strengthened, Not Cut!. Social Security was Created as Part of The New Deal under FDR. Social Security was Created as Part of The New Deal under FDR. - PowerPoint PPT Presentation

Citation preview

Page 1: Social Security

Social Security

A Strong Program That Should Be Strengthened, Not Cut!

Page 2: Social Security

March 2013

Social Security was Created as Part of The New Deal under FDR

Page 3: Social Security

3

• In 1935 the Social Security Act created the Social

Security retirement program (as well as

Unemployment Insurance and Aid to Dependent

Children, later AFDC, now TANF)

• Purpose was twofold:

– provide retirement security/reduce poverty

among the aged

– create incentive for older workers to leave the

labor market during the depression when so

many were unemployedMarch 2013

Social Security was Created as Part of The New Deal under FDR

Page 4: Social Security

March 2013

Originally, the program: Only covered about one half

of all workers. Excluded domestic workers,

agricultural workers and public employees - disproportionately black and women workers.

Limits of the Original Program

Page 5: Social Security

Dependent & Survivor Benefits for spouses and minor children

Coverage broadened to include agriculture, domestic workers and public employees

Disability benefits Early Retirement with reduced benefit

February 2012

Improvements Over the Years

Page 6: Social Security

The main goal is to cut the risks of poverty in old age and when living with disabilities.

Program was designed to work as an insurance program – it does not create individual accounts

Everyone gets a reasonable payment based in part on their contribution to the system.

Some people may collect more than they contributed while others may collect less.

We are greater together than we are on our own ; We have an obligation to ourselves and each other to look out for each other.

Social Security: A Promise We Make To Each Other

March 2013

Page 7: Social Security

7Source:Source: Bethell, Reno, and Tucker, 2012 ("Strengthening Social Security" What Do Americans Want?"

56.9 Million people receive Social Security each month, as: Retirement insurance Disability insurance, or Survivor insurance

1 in 6 Americans gets Social Security benefits. About 1 in 4 households receives income from Social

Security.

Who Receives Social Security?

Page 8: Social Security

36.97 Million retired workers 8.8 Million disabled workers 4.3 Million widows and widowers 2.27 Million spouses 1 Million adults disabled since childhood 3.4 Million children8

Source: Source: SSA, Monthly Statistical Snapshot, January 2013

http://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/index.html?number

Who Receives Social Security?

Page 9: Social Security

Retired Workers, Dependents, and Aged Widows,

77%

Disabled Workers and Dependents,

19%

Young Survivors, 4%

Source: Social Security Administration, June 2010 data Center on Budget and Policy Priorities - cbpp.org

Almost One-Quarter of Social Security Beneficiaries Receive Disability or Young Survivors Benefits

Who Receives Social Security?

Page 10: Social Security

90% of people 65 and older get Social Security.

Nearly 2 in 3 get half or more of their income from Social Security.

About 1 in 3 get almost all of their income from Social Security.

10Source: SSA, 2010a: Table 9.A1.

Social Security: Prevents Extreme Poverty For Seniors

Page 11: Social Security

Social Security is an important program for workers and

families of color. They are least likely to have wealth, as a

result of racial discrimination in American life and policies.

For older minorities, Social Security is the primary source of

retirement income.

Source: Plan for A New Future: The Impact of Social Security on People of Color Oct 2011

People of Color and Social Security

Page 12: Social Security

Percent of beneficiaries age 65 and older who receive half or more of their income from Social Security:

64.5% of Whites 73.6% of Blacks 64.5% of Asians 77.1% of Hispanics

12SSA: Source: SSA, Percentage distribution of beneficiary units, by race, Hispanic origin, and marital status,

2010, Table 9.3 A tp://www.ssa.gov/policy/docs/statcomps/income_pop55/2010/sect09.html#table9.a3

Percent of beneficiaries age 65 and older who receive 90% or more of their income from Social Security:

34.7% of Whites 49.4% of Blacks 41.7% of Asians 55.1% of Hispanics

Social Security BenefitsBroken Down By Race

Page 13: Social Security

Social Security

Funding Social Security

Page 14: Social Security

In exchange for modest payroll contributions, U.S. workers have been able to gain insurance that provides economic benefits for themselves and their families in the event of

retirement, disability or early death; events that in previous generations would have led to impoverishment

for workers and their families.

Source: Plan for A New Future: The Impact of Social Security on People of Color Oct 2011

Why Do We Fund Social Security?

Page 15: Social Security

Most Americans pay Social Security on all their income.

Both workers and employers pay 6.2% of wages toward Social

Security.

Exceptions for 5% of Americans.

When a worker’s salary reaches a cap of $113,700 per year, he or she

does not pay Social Security on the salary above the cap.

People do not pay Social Security on unearned income, such as

investment income.

March 2013

How Do We Fund Social Security?

Source: Bethell, Reno, and Tucker, 2012 ("Strengthening Social Security" What Do Americans Want?" )

Page 16: Social Security

February 2013

Payments into Social Security by workers and employers is put into a Trust Fund – until this past year Social Security taxes were greater than benefits paid creating a surplus

Currently the Social Security Trust Fund has a balance of $2.7 Trillion.

The funds are invested in US Treasury Bonds, one of the safest investments in the world.

Social Security Trust Fund

Page 17: Social Security

Since the Reagan years there have been some serious cuts to Social Security

A decrease from 90 to 82% of wages covered by payroll tax – undermines solvency over long-term

Increases in retirement age from 65 to 67 (in 2027)

Decrease in survivor benefits (for widowers and dependent children)

Social Security Under Attack

Page 18: Social Security

February 2013

Social Security Under Attack: Out of Touch Elites

There are several groups and well known spokespeople who have proposed cuts to Social Security

The two big proposals are Increase the Retirement Age Lower cost of living adjustments

Unfortunately this includes leaders from both major political parties

Page 19: Social Security

FACT: It's not just wrong -- it's impossible!

FACT: There is a large class & race divide around life expectancy, most everyday Americans are living only a year or two more than 70 years ago

Myth 1: Social Security adds to the deficit

Myth 2: We have to raise the retirement age because people are living longer

Myth vs. Facts

March 2013

Page 20: Social Security

There is no deficit for Social Security benefits: there is currently $2.7 trillion in the Trust Fund – enough to pay all benefits through 2033!

After that, money coming in through current payroll taxes will cover about ¾ of scheduled benefits.

“Scrapping the cap” so that everyone pays their fair share on taxable earnings would more than cover the full cost of the benefits.

Taxes on unearned income – dividends, interest, or inheritances – could also be used to help pay for the program

Social Security is not in Trouble !

March 2013

Page 21: Social Security

• In 2005, President Bush proposed privatizing Social Security, and Representative Paul Ryan co-sponsored legislation in Congress to privatize Social Security.

• Although President Bush’s attempt to privatize Social Security failed, Representative Paul Ryan revived the Republican’s efforts to partially privatize Social Security in the 2010 Republican budget plan, which he authored.

• Although Representative Ryan dropped his proposal to partially privatize Social Security in his 2014 budget, he did propose to make further changes to our Social Security program through an unaccountable legislative fast track process.

Attempts to Privatize Social Security

March 2013

Page 22: Social Security

Proposals to privatize Social Security would divert $1 trillion from the financially stable Social Security Trust Fund to Wall Street.

Experience has shown us that Wall Street is not a responsible guardian of our money.

Attempts to Privatize Social Security

March 2013

Page 23: Social Security

Social Security

Not Only Can We Can Keep Social Security StrongWe Can Make It Better !

Page 24: Social Security

We stopped an increase in retirement age We stopped an increase in Medicare

eligibility age

So far we have also stopped cuts to the Cost of Living adjustments

We built momentum to increase the payroll cap – so that higher earners pay the same as most Americans

We have started to build energy for a credit for hard working caregivers

People Across The Country Organized!

Page 25: Social Security

Make FICA Fair – Wealthy Americans Should Pay Into FICA on all income

Count Hard Work At Home – Provide Credits For Caregiving

Increase Benefits & Cost of Living Adjustments

March 2013

We Can Make Social Security Better

Other important improvements:

• Restoring survivor benefits for college-age students • Raising the Special Minimum Benefit• Including benefits for same-sex couples

Page 26: Social Security

Raise the FICA cap. In 2013, workers pay into the system only on earnings under $113,700. Applying Social Security taxes to all earnings – as with Medicare – would help to protect Social Security over the long term.

This would provide all the funds we need to pay all benefits for the next 75 years!

Few Americans would be affected by this change to the Social Security payroll tax cap.

Just 1.2% of workers had earnings over $250,000 in 2009, including 0.4% of women, 0.3% of African American workers and 0.3% of Latino workers.

Make FICA Fair – Ask Wealthy Americans to Pay the Same Rate As Every Day Americans

March 2013

Page 27: Social Security

March 2013

Make Hard Work Count: Create A Care Giver Credit In Social Security

Unpaid caregivers who work in the home earn zero Social Security credits during the time they are doing this hard and labor intensive job. We Can Do Better

Our proposal is to provide at least 5 years of credit when a worker had no or reduced earnings because she/he was caring for a young child, senior or disabled family member.

Page 28: Social Security

Increase Benefits & Cost Of Living Adjustments

We should increase our social security benefits to ensure that our families can pay for their basic items they need to get by.

One proposal is to change how cost of living adjustments are calculated so that we take into greater consideration the spending patterns of older consumers – like prescription drugs, helping to address the quickly escalating cost of medical care. This change is called the CPI-E ( consumer price index for the elderly) Another proposal is to increase benefits for the lowest income earners.

March 2013

Page 29: Social Security

Income Inequality is a hot topic so we have an opening to win an increase in the FICA Cap

Paul Ryan’s unabated attacks on Social Security and Medicare have made seniors a swing group - Let’s make Congress fight for votes

Social Security will be restructured soon, so now is the time to put our ideas on the table

Now Is The Time To Act

March 2013