strengthening social security for today’s working families ... · 1 in 4 families receives social...

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Strengthening Social Security for Today’s

Working Families

Presenter

Presentation Notes

My job to give basic overview of how SS works before we get into more in depth discussion.

Social Security and my family

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Before & After Social Security

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Before Social Security people worked til they died – or went to the Poorhouse. Now Seniors have the lowest rate of poverty among Americans – thanks to Social Security.

Presenter

Presentation Notes

Before SS, people literally worked until they died. If their bodies or minds just gave out and they couldn’t work, they hoped family would take them in. Otherwise, it was the poor house.

Who qualifies for benefits?

Retired workers age 62+ – with at least 10 years work (including noncitizens); full moving to 67

Disabled workers – with 18 months work (depending on age)

Dependents – children, adult disabled children, spouse, elderly parents

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Presenter

Presentation Notes

We usually think of SS as a retirement program, but it also provides insurance for people who can no longer work because of disability, and for dependent family members. About 4.5 million children also receive benefits as dependents of retired or disabled workers or the survivors of deceased workers.

1 in 4 families receives Social Security

Retired 64%

Spouses and kids 9%

Survivors 12%

Disabled workers

14%

Who receives benefits

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Presenter

Presentation Notes

1 in 4 of today’s 20 year-olds will become disabled before reaching retirement age of 67, and 1 in 8 will die – but they can count on SS to support their families

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Presenter

Presentation Notes

The full cost of SS is covered by payroll taxes. Workers and employers each contribute 6.2% - up to the cap of $117,000 in 2014.

B E N E F I T S F O R S U R V I V I N G S T U D E N T S

Students collecting survivors benefits due to the death of a parent can no longer receive benefits though age 22 if they are in college.

T R U S T F U N D Not an accident – payroll taxes raised to build up for Baby Boomer generation.

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Changes in the 1980s

Ronald Reagan and Tip O’Neill

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Since it was adopted in the 1930s, Congress has regularly made changes to SS – adding survivor benefits and previously excluded workers, raising benefit levels, instituting automatic COLAs in the 1970s. In the early 1980s, a special commission chaired by Alan Greenspan recommended changes to prepared for the babyboom generation which was just getting started in the workforce: they raised the payroll tax to build up the trust fund they gradually raised the retirement age from 65 to 67 they eliminated survivor benefits for college students

How much is in the Trust Fund?

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$25 Billion

IN 1982

$2.7 Trillion

IN 2012

$3.1 Trillion

IN 2021

Source: ssa.gov

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The Trust Fund is continuing to grow and will for the next decade – then it will get spent down just as the Greenspan Commission planned back in the 1980s.

Why do we hear it’s going broke?

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77%

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Presentation Notes

Right now we have 3 workers for every benficiary, plus we’re building up the trust fund. With people living longer, according to the projections of the SS actuaries, in about 20 years the ratio will be 2 to 1 and (after 2033) SS will only have the funds to cover 77% of benefits - if everything stays exactly the same.

FOR A LL G ENERA TIONS

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Improving Social Security

Presenter

Presentation Notes

But everything doesn’t have to stay exactly the same – we can improve SS for all generations.

Social Security is more important now than ever

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Pension plan 3%

401(k)-style plan 31%

Both pension and 401(k)

12%

No retirement plan 54%

Private Sector Workers with an Employer-Based Retirement Plan

2008 data. EBRI November 2010 Issue Brief “401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2009”

Too many now struggle to make ends meet

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13.3% 20.6% 18.4%

40.0% 44.7% 30.7%

46.7% 44.8%

64.5% 71.6%

48.1%

67% 65.6%

79.9% 85.7%

all single women

White single Black single Latina single

Poverty and near-poverty for women age 75+

below 200% below 150% below poverty

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Presentation Notes

SS benefits are based on earnings – the more you make, the more you get, and the more likely you are to have pension or 401k. People who earn lower wages or take time out of the workforce for family care have much less in retirment – especially women and people of color.

Scrap the cap

&

Raise benefits

We can make Social Security even better

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Presenter

Presentation Notes

Extra funds to increase benefits now and guarantee benefits for future generations.

Scrap the cap!

Workers earning up to $117,000 Surgeons earning $260,000 Jim McNerney, Boeing CEO cash salary & bonuses $6.4 million

% of wages to Social Security

6.2%

2.8%

0.114%

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We can make Social Security better

Raise benefits

Adopt CPI-E inflation index

Honor time caring for family

Restore student survivor benefits

Recognize all marriages

Restore office access & services

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Bills in Congress

Strengthen SS Act, Harkin - S 567, Sanchez - HR3118 Larsen, McDermott, Smith

Gradually eliminates cap Boosts benefits about $70/mo Switches to CPI-E

Sanders – S500, DeFazio – HR 1029 DelBene, Larsen

Scraps cap over $250k, gradually closes hole

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More Bills in Congress

RAISE Act, Begich – S 2455 Murray Extends benefits to divorced married <10 yrs Provides widow(er) benefits of 75% of couples if higher Restores stdent benefits >$400k contribute 2% of earnings

SAME Act, Murray – S 2305, Kind – HR 4664 DelBene, Kilmer, McDermott, Smith Survivors benefits to anyone legally married

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Take Action

ssworkswa.org

http://www.strengthensocialsecurity.org/

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strengthening social security for today’s working families ... · 1 in 4 families receives social...

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