|
Social Security
&Other
Public Pension Issues
-
Archive 2010 -
Also see our sites on Private
Pension Issues, Trade Unions and Pension Issues
and World Pension Issues
Report: Recessions, Wealth Destruction, and the Timing of Retirement (December 2010)
Recessions affect the timing of retirements due to a weak job market and losses in household wealth. A weak economy causes accelerating retirements that would otherwise have occurred later. Falling household wealth reduces the resources available to pay for retirement. This report shows the collective data on old-age labor supply as well as a time series of data on unemployment, stock and bond returns, and house appreciation. This information helps economists estimate the effect of the business cycle on Social Security benefit acceptance and exits from the labor force.
Social
Security Cuts Are Part of Deficit Plan (December 1, 2010)
The new deficit reduction plan by co-chairmen Erskine Bowles and Alan
Simpson faces resistance because of the proposed raised retirement age, cuts
to Medicare, decrease of tax breaks and doubling the federal tax on a gallon
of gasoline. The only certain votes in favor of the plan are those of Bowles
and Simpson. So far no one else has committed to the plan.
Report:
The Future of Social Security (November 2010)
House of Representative Members, John Boehner (R-OH) and Steny Hoyer (D-MD),
have introduced legislation to change US Social Security. One of the
proposed changes, raising the retirement age, will cut benefits for future
retirees and be especially detrimental to low-income adults. Many economists
oppose raising the retirement age, arguing that a better policy would
involve raising taxes for those who earn above the current cap. This action
would cause less harm and be more effective in the long-term. GAA believes,
moreover, that such a policy would be more fair to all workers.
Before
Simpson and Bowles Say: "Cut Social Security," Tell Congress to:
"Strengthen It!" (November 30, 2010)
December 1 marks a critical day for the future of social security for
Americans. The National Commission on Fiscal Responsibility and Reform
will make a pitch to address the nation’s deficit and debt challenges by
proposing a cut of health care benefits, a higher retirement age, and a
reduction of cost of living adjustments for social security.
Tax
the Rich: A Deficit Plan That Doesn't Hit We, The People (November 26, 2010)
The nation’s deficit plans include serious consideration to cutting Social
Security and other old-age policy-related programs as a solution to the
growing federal deficit. This author suggests an alternative plan that does
not delve into supports for the most vulnerable population groups, and
instead suggests taxes on the rich.
Raising
Retirement Age and 'Death Panels' (November 26, 2010)
Countering debates for raising the retirement age, the author cites evidence
by the Center for Economic and Policy Research that shows, for so many
concrete reasons, that raising the retirement age would be more harmful than
beneficial.
Social
Security Facts vs Fog, (November 24, 2010)
Weighing debates about Social Security, this article cuts through the
common propaganda to look at the reality of the benefits of social
security to so many American people. This article asks, “How much of
what we hear about Social Security are facts, and how much is just
fog?”.
Eating
the Old at Thanksgiving (November 23, 2010)
There is a surge of conflict in U.S. politics about the possibilities of
cutting Social Security. This inter-generational conflict is undeniably on
the political agenda and is sparking a huge debate about America’s
oldest social support for older Americans.
Gray
Panthers Tell Deficit Commission: "We Won’t Let You Weaken Social
Security" (November 22, 2010)
Citing that 85% of adult Americans are opposed to Social Security cuts in
order to decrease the federal deficit, this article looks at the position
of the National Gray Panthers in regards to pending Social Security cuts.
Detailing simple facts that support the position that cutting social
security benefits would be devastating to older adults who are dependant
upon these benefits, this article shows that a strengthening of social
security as opposed to a weakening is what is needed most.
Report:
Social Security: Voices and Values (November 11, 2010)
This report, conducted by AARP with Rockefeller Foundation support,
explains people’s opinions on Social Security benefits. Researchers
interviewed both English and Spanish speakers. Topics range from Social
Security adequacy to values and perceptions.
Report:
Social Security Shortfall Warrants Action Soon (November 9, 2010)
The Economic Policy Group looks at the possible future of Social Security
and demonstrates its importance to older Americans; the authors also lay
out different policy measures that could be enacted to strengthen Social
Security policy.
Report: Social Security benefits will
be flat again in 2011. Should you adjust your financial plans? (November
2010)
Because the US decided against paying a cost of living adjustment to
Social Security recipients, the writers analyze how this decision will
impact older persons. The authors suggest seeing a financial advisor.
The
Employment Situation: Nonfarm Payroll Employment Increases, But Fewer Older
Workers Have Jobs (November 2010)
The AARP Public Policy Institute compiled a fact sheet that highlights the
employment rates for older persons as of October 2010. The number of elderly
who wanted jobs rose to numbers nearly 78 percent higher than when the
current recession began.
The
People Behind The Entitlement Debate (November 11, 2010)
In an effort to cut the growing national debt, policy programs for the
elderly are now on the chopping block and highlight current policy
debate. Draft recommendations by the National Commission on Fiscal
Responsibility and Reform have been released, with final recommendations due
before the end of the year.
Ten Reasons the Fiscal Commission Social Security Proposal Should be DOA (November 11, 2010)
The "Deficit Commission" recommends giving a large tax cut to the rich, cutting the benefits of middle class families such as
Social Security and Medicare, and from the poor, getting rid of the Earned Income Tax Credit.
Fight
the fear: Social Security panic ahead. Bloggers uniting to join the fight.
(November 9, 2010)
Debates regarding Social Security are in the current political limelight.
Detailing the current heated discussion, this article explores the
long-lived fight to preserve Social Security and current suggestions to
start cutting.
Social
Security Will Never Run Out of Money (November 9, 2010)
Despite suggestions that Social Security will soon run out of funds due to
the financial requirements of the boomers, this author details a report that
suggests otherwise.
At
102, Outliving Friends, Family and her Savings (November 6, 2010)
While it is a triumph to live to be 102, it comes with a challenge, as
savings and social support systems dwindle. That is when the support of
social programs can be vital to the well being of the oldest old persons.
The author chronicles the story of one woman living in New York who has been
cared for through various programs.
After the Economic Crisis, Americans Might Need to Work until the Age of 70 (November 2, 2010)
(Article in French)
After the rain comes the sun. Not for some Americans who envision working until the age of 70 in order to “earn enough money to live well” in their retirement.
French
Protests, British Austerity Give U.S. Glimpse of its Future (October 25, 2010)
In the wake of pension related upheaval in France, the U.S. prepares to face potential backlash that comes with social security reforms of it’s own. As expected deficits in the Social Security trust increase, questions of morals and responsibility, and the reality of fiscal woes come into question.
3
Proposals that Cut Social Security Payments (October 25, 2010)
The Social Security Administration released a report this week analyzing proposals on how to change Social Security benefits. The majority of possibilities will result in smaller checks for most seniors.
Report:
The Employment Situation, September 2010: Older Workers Have Little to Cheer
About Once Again (October 2010)
In September, 2010, the overall unemployment rate for people aged 55 and
older was 9.6 percent, or 2.2 million persons. As of September, the
unemployment rate was 7.9 percent for older men and 6.4 percent for older
women. This unemployment rate changed little since August. On the other
hand, the number of older persons who wanted to work rose in September,
nearly 68 percent higher than at the start of the recession. Are their
savings running out?
Report:
US Social Security at 75 Years: An International Perspective (2010)
Among the social security systems of industrialized countries, has the U.S.
Old Age, Survivors, and Disability Insurance program followed a unique
historical path? This article finds that the historical development of the
U.S. Social Security system follows closely in many respects the model
provided by older social insurance systems, particularly that of Germany.
However, certain aspects of the U.S. Social Security experience stand out as
exceptional from an international perspective, including the persistent
rejection of general revenue financing attributed to long-range (75-year)
projections, and the relative generosity of dependents' benefits.
Workers
Expect Slow Recovery of Savings: Survey (October 19, 2010)
As unemployment stays high and financial markets have yet to come back
since the start of the recession, older workers are feeling less confident
about retiring. Some 82% of US workers expect that it will take a minimum
of three years to rebuild what was lost in 2007.
House
and Senate Democrats renew call for Social Security benefit adjustment
(October 18, 2010)
The Social Security Administration announced on October 15 that for the
second year in a row that no cost of living adjustment (COLA) will be
implemented. Senator B. Lincoln (D-Ark.) proposed a compensation of $250
to Social Security recipients.
No
Social Security COLA has silver lining (October 17, 2010)
While there is great disappointment that US retirees will receive no Cost
of Living Adjustment in their Social Security, this article explores the
‘silver lining’ for two groups of beneficiaries: high-income earners
and Medicare Part B participants.
Cost
of Living Freeze Could Hurt Seniors (October 12, 2010)
As officials are expected to announce the cost of living freeze with
regard to Social Security recipient benefits, it is important to acknowledge
that Social Security is a sole means of income for many retirees. The
average monthly benefit is $1,072, placing seniors at just barely above the
nation’s poverty line, and in an especially vulnerable situation as
healthcare costs rise.
Today’s
Social Security Benefits News; Feds to Report No Cost of Living Adjustments
COLA; Monthly Checks to Stay the Same, Again (October 11, 2010)
The US Federal Government has for the second year in a row declared that
there will not be a Cost of Living adjustment for 2011. This will put
great strain on the 50 million Americans that receive and rely heavily upon
social security benefits.
Schwarzenegger
Agrees Pension Reform with
Union
(October 8, 2010)
Governor Schwarzenegger of
California
has reached a pension reform agreement with the Service Employees
International Union (SEIU). The tentative contract will include an increase
in retirement age and an increase in taxes paid toward retirement.
10
Reasons Seniors Continue to Work (October 7, 2010)
Older Americans are continuing to work in retirement years more than ever.
Millions are continuing work not only due to financial stresses caused by
the recession, but also because of the satisfaction that comes from their
contributions and the social interaction of the work environment.
A Novel Idea: Social Security for All (October 6,
2010)
Would making a universal defined pension system for every citizen be a successful endeavor? Retirements are looking shaky at the moment, with only 13 percent of workers believing that they have enough savings to enjoy a secure retirement. Would a universal plan helping many seniors stay out of poverty be attainable considering the financial state of the nation today?
5 Major Money Issues for Seniors in 2011 (October 4, 2010)
Since the recession, the financial burden of older persons has been magnified. As the time approaches for announcing a cost-of-living adjustment for 2011 by the Social Security Administration, expectations are that for the second straight year the adjustment will be zero. Problems arise when medical and other costs rise yet consumer income stays the same.
Report:
5 Questions to Ask Your Mother or Grandmother (October 1, 2010)
Considering the gender gaps in old age, such as life expectancy and
retirement income, researchers at The Women’s Institute for a Secure
Retirement (WISER) suggest some critical questions to ask our mothers and/or
grandmothers as they approach retirement or organize their financial and
health plans. Asking these questions and listening to the answers can be a
key to the quality of retirement that your loved one experiences.
Social
Security: What You Need To Know When You Get Your Retirement or Survivors
Benefits (2010)
Know your rights and individual
responsibility when it comes to receiving federal benefits, such as Social
Security. Here the details about your benefit entitlements as well as what
you can do on an individual basis to ensure that the Social Security benefit
system serves you effectively.
Report:
The Not-So-Golden Years: Confronting Elderly Poverty and Improving
Seniors’ Economic Security (September 27, 2010)
Older US citizens face very real economic challenges today. This 2010 report
from the Center for American Progress details these problems. Some include
increased elder poverty, especially among women, unemployment spikes, and a
shift away from defined benefit pensions in the US. This combination of
setbacks, along with many others, create a difficult environment for US
persons who are older now; unfortunately, the situation will likely grow as
75 million baby boomers reach retirement with insufficient savings.
Top Ten Reasons Not To Raise the Retirement Age (August 24, 2010)
While pressures to raise the retirement age increase due to economic strain as well as lower mortality rates, the Economic Policy Institute points out that there are numerous reasons why it is critical that it should not be raised based on these factors. Much of the reasoning stems from the very fact that increasing the retirement age will have little effect on Social Security benefits and will in many cases make the need for Social Security support even greater.
Social Security Turns 75 Under Fiscal Fire (August
14, 2010)
Social Security in the US turned 75 years old recently. What is its future? Many of the richest persons in
US society are using their financial power to persuade citizens that old people cost too much and are urging cuts in Social Security. No argument is too far-fetched for this well-heeled group that pays very low taxes, if any, and a fraction of their fair share of Social Security. One group claims that Social Security payments are reducing the US to a “second rate power, ” as though US wars are not responsible for depleting deeply needed resources for education, housing, jobs and health care for its citizens.
Report:
Allowing Retiring Employees to "Test Drive" an Annuity (2010)
If defined contribution (DC) retirement plan sponsors haven't already done so, they soon will give serious consideration to providing retiring plan participants with options to convert at least a portion of their savings into retirement income. Only time will tell whether employers will be encouraged to make those options available to participants or whether governments will require them to do so.
Deficit-cutting Ax May Fall on Social Security (July 26, 2010)
Although public opinion polls consistently show that US citizens don't want Social Security trimmed, the government may cut Social Security benefits as one means to reduce the federal budget deficit. With unemployment high and many jobless
choosing early retirement, experts worry that Social Security has seen revenues
will drop and costs rise. GAA asks why not tax the incomes of the richest in US society to undergird the welfare of Social Security of older persons?
States Shift to Hybrid Pensions (July 10, 2010)
Although state governments are among the last guarantors of pensions, they are now learning from private sector 401(k) plans, a retirement savings plan that allows savings to be invested while deferring current income taxes on the saved money and earnings until withdrawal. Some new state workers in Michigan and Utah will soon begin receiving part of their retirement benefits from a 401(k)-type plan in light of recent changes in the law. The hybrid plans, a cost-cutting measure for states, shift more
risk to employees.
Older
Population Makes New England Pension Reform Urgent: Study (June 30, 2010)
With an older population than the US average, six New England States are
demanding urgent public pension reform, according to a report from the New
England Public Policy Center. Many pension plans for public employees pay
out in full at much earlier ages than those in the private sector.
Social Security Modernization: Options to Address Solvency and Benefit Adequacy (2010)
This report focuses on some possible changes to be made to the Social Security retirement program presented by the Senate Special Committee on Aging. Various aspects of Social Security were examined by the commission in an effort to assist Congress and to strengthen this critical program for seniors. This Aging Committee report outlines challenges currently facing social security retirement program and highlights options for addressing program solvency, benefit adequacy, and retirement income security for economically-vulnerable groups. The review took place at this time because although the system is currently functional, it will become strained due to the growth of the aging population.
The
Right Reason for Saving Social Security (July 2010)
The discussions on budget deficit and increasing pension age often go hand
in hand. Despite quick solutions to fix the system, decision-makers have
to consider such factors as effectiveness, fairness, long-term domestic
and both political and financial international effects. The article
explains why it is important to save social security and also discusses
possible ways to do so.
New State Budget Plans Burdened by Recession, Pension Costs (July
1, 2010)
The US came into its 2011 fiscal year with some of the same budget problems of previous years. How to pay for retiree pensions is one of the most important budget problems. In Illinois, the State is experiencing a big pension shortfall. The
State will borrow money to meet its budget but it will also cause the State’s credit rating to slide. Economist David Greenlaw of Morgan Stanley has said: "The main driver of state and local budget pressures is a fall-off in income taxes but pension challenges are likely to lead to ongoing pressures on operating budgets in the years ahead.”
Leaving Granny Behind - Will the Fiscal Commission Vote to Impoverish Older Women? (June 29, 2010)
President Obama’s Fiscal Commission is infamous for attacking Social Security. This article points out how some members of the Commission are being harsh to seniors. Also, their proposal to increase the retirement age will definitely devastate older women since women depend on Social Security more than men. Without Social Security, nearly 60% of older women would live in poverty.
Where Does US Retirement System Rank? (June 27, 2010)
In 2009, the Melbourne Mercer Global Pension Index ranked countries based on the adequacy, sustainability and integrity of their public and private pension systems. The Netherlands topped the rankings and the United States was 6th. However, none of the top countries has a perfect pension system. This article examines the main drawbacks of the current pension system in the US and suggests possible solutions.
Payback Time: In Budget Crisis, States Take Aim at Pension Costs (June 19, 2010)
Many states are cutting benefits for their older citizens by cutting public pension funds for retired or current employees, raising the retirement age, capping pension funds and reducing pensions for future hires. According to the article, states including Illinois, New Jersey, Indiana and Connecticut may run out of pension monies in less than one decade. Experts suggest a federal bailout to help states solve the pension problem.
A Brief History of Attacks on Social Security (June 15, 2010)
Many aging advocates regard the National Commission on Fiscal Responsibility as an attack on Social Security. This article provides a reminder of the attacks on Social Security in the 1970's. According to the author, Social Security has nothing to do with the federal deficit. The size of the deficit is explained by two wars, Bush’s tax cuts, and the fiscal consequences of the economic crash of 2008-9.
California Pension Politics Heating Up (May 21, 2010)
Many US Governors know that their public pension funds are insufficient in many major cities in California. California faces a $19.1 billion budget gap in public pensions, which Governor Schwarzenegger wants to close. California's three biggest public pension funds will experience a collective shortfall of more than $500 billion over the next 16 years.
Whacking
the Old Folks (May 20, 2010)
The new
National Commission on Fiscal Responsibility and Reform consists of
conservatives and hostile right-wingers who yearn to dismantle the US Social
Security program. Many aging advocates worry that the Commission will
sacrifice Social Security under the guise of fixing the federal deficit.
Legislators Want to Get Their Part-timers Off Pension Rolls (April 14, 2010)
New Jersey Gov. Christie signed a law last month barring part-time employees from the state pension system. The new law only affects future hires: State employees would need to work 35 hours a week to qualify for a pension and local employees, for 32 years. In recent interviews, Senate officials said that practice could be changing. With the system facing a $46 billion shortfall, Christie has criticized part-timers' pension eligibility and has said he wants to take the reforms--approved by the Senate in February and the Assembly in March--a step further by kicking current part-time employees out of the system.
Analysis: Pension Funds For Teachers Are Short Billions (April 14, 2010)
According to a new analysis by a conservative think tank, the multibillion-dollar pension funds promising to pay lifetime benefits to millions of US retired teachers are more than $900 billion in the red. The study finds that all 59 funds that cover most teachers face shortfalls. Researchers say states should consider 401(k)-type retirement plans, among others, especially for new and young employees.
California State Pension Funds Going Broke, Stanford Study Finds (April 5, 2010)
According to a new report generated by five graduate students in Stanford's Graduate Public Policy Program, California public employee pension systems are worse off than anyone previously projected. The students examined public records of the past performance of three pension funds and ran computer simulations to predict the unfunded liabilities of the pension funds over the next 16 years. The results are overwhelming: California will need to invest at least $200 billion today to return the fund to a minimum responsible level of funding.
Obama's
Deficit Commission: No Friend of Social Security? (April 2, 2010)
President Obama has stacked a new 18-member National Commission on Fiscal
Responsibility and Reform with figures that have a history of undermining
Social Security. The author condemns the selection of the committee,
indicating that any proposal the Commission suggests will likely target
older persons, particularly those who can least afford to give up a part of
their meager income.
Gurus Urge Bigger Pension Cushion (March 29, 2010)
Underfunded pension systems represent a financial problem for many States, due mostly to market declines, a lack of government funding and benefit increases. According to a recent study by Wilshire Consulting, the average funding level of state public pension plans was at 65% in 2009, compared to 85% in 2008. The situation could get worse for local governments if the General Accounting Standards Board institutes changes to increase the pension liability that balance sheets indicate amounting to tens of billions of dollars.
Colorado Reviving Bill to Cut Immigrant Pensions (March 23, 2010)
Legal immigrants in Colorado are currently eligible to collect a retirement benefit of up to $699 a month even if they're being helped by the person who promised to support them financially when they emigrated, whereas citizens receiving financial support from someone else aren't eligible for a pension. Colorado lawmakers are considering reviving a bill to cut state pensions to some legal immigrants, saying they need the money to help balance the budget. Under the proposal, immigrants whose sponsors are able to support them would lose their pensions; the others would keep them.
Public Pension Deficits Are Worse Than You Think (March 22, 2010)
According to a recent report from the Pew Charitable Trusts, pension plans for state government employees are under funded by $450 billion. This vastly underestimates the true shortfall, however, because public pension accounting wrongly assumes that plans can earn high investment returns without risk. When public pension assets fall short, taxpayers are legally obligated to make up the difference. Consequently, underfunding can become the next generation's problem.
Gambling To Fix Pensions Can Lead To A Bigger Bind (March 21, 2010)
The recent collapse of the Stuyvesant Town deal, a real estate investment in Manhattan that owners abandoned to their creditors, exemplifies the tendency of public pension funds to diversify their holdings towards riskier ones. This investment was part of the real estate portfolio of Florida's public pension fund and the California Public Employee Retirement System (or CalPERS) which both lost
value during the recent mortgage meltdown. This example makes clear that funds are growing comfortable with a level of risk that might have been unthinkable a few decades ago. In
this case, comfort led to collapse.
Spouse Can Qualify for Social Security Benefits if You’re Eligible (March 16, 2010)
Persons who do not qualify for Social Security benefits as a result of their own work history may be able to claim benefits under the spouse's record. This article gives
information on retirement benefits for spouses and on a “twist” in the law allowing low-income Medicare recipients to get help with their prescription drug costs.
Social Security to Start Cashing Uncle Sam's IOUs (March 14, 2010)
Social Security's financing has attracted much attention as the nation's 78 million baby boomers approached retirement age. But this year, for the first time since the 1980s, the retirement program is projected to pay out more in benefits than it collects in taxes--nearly $29 billion more. However, the money collected by Social Security in payroll taxes during the past two decades has been spent by the federal government, which preferred to borrow from Social Security rather than foreign creditors. In return, the Treasury Department issued a stack of IOUs in the form of Treasury bonds for use by Social Security. Now it’s time to collect on the IOUs.
Biden Unveils New Rules on US Retirement Savings (February 26, 2010)
Vice President Biden announced new regulations on US retirement savings aimed at protecting employees and their 401(k) and IRA retirement savings plans from financial advisers' potential conflicts of interest. The new rules also protect the rights of workers in collective bargaining agreements and access to the details of the healthcare plans.
Pension
Tension; the Financial Menace Facing State Governments (January 3, 2010)
The current financial crisis has exposed elected officials who contracted for generous retirement benefits in order to attract good workers, to pay for
it without increasing taxes. In fact, governments used rosy investment earning projections to support their promises. However, according to an analysis by state pension experts, even if pension funds succeed in getting high rates of return over the next 15 years, it may not be enough to pay the promised benefits.
|
