PS374.Social.Security.History.Background.PartOne.October27.

Si oaa aptd and ab and misc programs are no

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ms are no longer a "welfare" program Social Security 12 PS 374 (October 29 2009) Social Security 1975 C.O.L.A.'s begin 1977 Amendments to insure "solvency" Raise contributions to account for benefits Make various technical adjustments President Carter: "from 1980 to 2030, the Social Security system will be sound." Democrats support, Republicans oppose PS 374 (October 29 2009) Social Security 13 Social Security 1978 Carter Administration proposes benefit cuts Four "Blue Ribbon" Panels were convened 1980's a new crisis Ratio of beneficiaries to workers 1940: 1 to 40 1950: 1 to 16.5 1980: 1 to 3.3 Rising unemployment reduces contributions to "trust"fund C.O.L.A.'s make benefits go up faster than actual inflation Social Security 14 PS 374 (October 29 2009) Social Security 1980's the new crisis S.S.I. Doesn't keep pace (the federal share is adjusted, but the state's share is not) ... more of them are poor ... penalties for work make their situation worse... PS 374 (October 29 2009) Social Security 15 Social Security 1981 New Proposals are advanced... David Stockman, "I'm not going to spend a lot of political capital solving some other guy's problem in 2010." 1982 "National Commission on Social Security Reform" The Greenspan Commission parties attack each other in the election campaign... 1982/3 the "gang of five" (the White House and Congressional Democrats) develops a Compromise PS 374 (October 29 2009) Social Security 16 Social Security Tax Rates Tax Rate Employee: 7.65% Employer: 7.65% Maximum Taxable Earnings 2000: $76,200 2001: $80,400 Selfemployed: 15.30% PS 374 (October 29 2009) Social Security 17 Maximum Social Security Benefit Maximum Social Security Benefit: $1,433/month, or $17,196 per year for someone turning 65 in 2000 Estimated Average Benefit in 2000: $816 PS 374 (October 29 2009) Social Security 18 PS 374 (October 29 2009) Social Security 19 Sensitivity Testing... American Academy of Actuaries, Issue Brief, An Actuarial Perspective...
View Full Document

Ask a homework question - tutors are online