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TITLE:
Social Security Reform
MAJOR AREAS TO BE AFFECTED:
Social Security Administration and the U.S. Treasury Department
JUSTIFICATION:
The current expenditures for the United States Social Security System accounts for 37% of the annual budget, which accounts for 7% of the GDP of the United States. The current system of Social Security is based in multiple bureaucracies and countless agencies, all of these are overseen by the Social Security Administration.
The graying of America has begun, as more and more people are reaching retirement age every year. The projected expenditures are predicted to reach a level at which the annual revenue will not supply the expenditures. The United States spent, in 2008, $614,000,000,000 dollars on the payment of benefits.
The cost for different areas of Social Security has been spread out to multiple programs and to different areas, the funds are no longer concentrated, as well as the system that supplies these funds. They are supplied through Federal Grants to States, the SSA, and directly from the United States treasury. The United States treasury directly supplies the supplemental security income, overlapping the responsibilities of the social security system.
The old age benefits, which are a main part of the system, are of enormous concern based upon their unstable revenue patterns and exponential growth in expenditures. The age of America is becoming the retired; the projections over the next 80 years have a budget shortfall for these programs reaching billions upon billions of dollars annually.
The current survivor system for social security beneficiaries causes major fall backs upon the government as depending children can dip into the system upon the need for money instead of finding family members of which to partially depend upon.
In the past decades falsified disability claims have cost the government massive amounts of revenue in the Social Security Administration. The people that go onto disability can continue onto long term disability without the verification of incapacitation in terms of work load, either mental or physical, for years.
Currently the Temporary Assistance for needy families has lose regulation upon those who can ably, it was meant for those not eligible for unemployment benefits or standard social security benefits or after all other resources had been denied. Temporary Assistance for needy families often spikes at the times of higher unemployment for people that are coming off of unemployment, not those who are truly in need of heavy government assistance.
Federal Unemployment benefits are around .8% of the first quarter earnings on a capped percentage at $106,800; which on average is $56.00. The federal benefits are paid in times of heavy unemployment, but the heavy unemployment is loosely defined.
Currently Supplemental Security Income is paid directly by the US Treasury to those approved for benefits; its regulations are for those in worsened hard ship and disability. The regulations however are sometimes overlooked in applications.
PROPOSAL FOR ACTION :
Federal Old age, survivors and disability insurance:
The age of retirement beneficiaries will be changed to 69. The cap of percentage income ($106,800) will be eliminated; therefore the percentage of all persons in covered employment will be at the standard percent. This will be regardless of income levels. The taxes that are in place in 2011 will be changed to 6.8% workers and 6.8% employers (Just for taxes in place under the Federal Insurance Contributions act and overseen by the SSA). The wages that are not subject to being taxed will remain the same.
This system that is now outlined above will be privatized into one entity that will be overseen by the SSA. The privatized sector of Federal Old Age (Retirement) benefits will be outlined as follows.
The privatized system will maintain the money that is paid by an individual currently entering the workforce. This will be determined by their first payment of social security taxes. The money will be recorded and put into a fund for all individuals. At the age needed to become beneficiaries they will withdraw on a plan set up for 30 years retirement. If a person is to outlive the 30 years then they will enter into government assistance; this will be set up by a separate tax of .5% upon each paycheck that will be matched by the employer and paid at the standard rate. They may only withdraw the amount of money accumulated through their life in the workforce set up at a rate of 5% per year of the original amount.
Remaining funds in the initial 30 year period will be split 70% to the government, and 30% to the privatized sector to be replenished into the social security system.
The government funds will be put toward other sectors of the social security system, or if needed they will be put back into the retirement sector of the social security system.
Survivors of a person receiving welfare will receive benefits up until two years after passage or the age of 18, before the period of two years ends they must find a relative or godparent to live with, and after the two years the payments will be ceased.
If they are without family or god relatives they may apply for continuing the payments all the way until the age of 18 regardless of the period between their age and there coming of age to no longer be a minor.
Disability claims will be limited to a primary 6 month period in which original regulations and forms still apply, after this primary period the claims will be eliminated and you must apply for secondary long term government assistance. This will consist of a form identical to the primary form but must be verified by additional forms signed by a practicing physician that outlines the continued disability. This must be repeated once every year to continue disability claims
Federal Unemployment Benefits
Under the Federal Unemployment Tax Act the United States government will continue to collect taxes and help run state departments, and from this point forward they will only provide extended unemployment benefits in a time in which 12% or more of Americans are unemployed.
The rate of tax cuts for prompt payment of state unemployment taxes will be restricted from 5.4% to 5.2% of early wages. (The taxes collected by FUTA rarely exceed about $54.00)
Temporary assistance for needy families
The block funding provided by the government may only be allocated to families that meet the following criteria: They don’t have anyone on welfare or they have multiple persons over 18 with one person on welfare in a low level payment. They must also meet the current requirements already set by the federal government for states to be able to use this funding.
Medicare and Medicaid provisions are set up in the recently passed Health Care Bill of the Obama Administration and the Patient Protection and Affordable Care Act and Health Care and Education Reconciliation Act of 2010.
Supplemental Security Income
Funds that the federal government now uses in excess and puts into trust funds will be allocated for supplemental security income, currently the total revenue for this program comes from the U.S. treasury, and this will be conducive of joint operations with funds coming from the SSA and the U.S. Treasury.
The age for benefits will be moved from age 65 to 69. Disability applicants will have the same regulations as stipulated under the Disability clause.
The resources and residency stipulations for these programs will remain the same.
The stipulations for Blind persons wishing to claim supplemental security income will also remain the same
RESULTS TO BE EXPECTED :
This proposal will cut down on the United States expenditures in both the Social Security system and the bureaucracies involved. It will cut down the deficit and the use of trust funds. The system will be streamlined and efficient; allowing for the use of benefits by future generations.
The SSA will have extended regulation into parts of the system under the US treasury. The SSA will have increased revenue and decreased expenditures, allowing for funding to flow into the federal government and the percentage of the annual budget for social security to decrease.
Social Security Reform
MAJOR AREAS TO BE AFFECTED:
Social Security Administration and the U.S. Treasury Department
JUSTIFICATION:
The current expenditures for the United States Social Security System accounts for 37% of the annual budget, which accounts for 7% of the GDP of the United States. The current system of Social Security is based in multiple bureaucracies and countless agencies, all of these are overseen by the Social Security Administration.
The graying of America has begun, as more and more people are reaching retirement age every year. The projected expenditures are predicted to reach a level at which the annual revenue will not supply the expenditures. The United States spent, in 2008, $614,000,000,000 dollars on the payment of benefits.
The cost for different areas of Social Security has been spread out to multiple programs and to different areas, the funds are no longer concentrated, as well as the system that supplies these funds. They are supplied through Federal Grants to States, the SSA, and directly from the United States treasury. The United States treasury directly supplies the supplemental security income, overlapping the responsibilities of the social security system.
The old age benefits, which are a main part of the system, are of enormous concern based upon their unstable revenue patterns and exponential growth in expenditures. The age of America is becoming the retired; the projections over the next 80 years have a budget shortfall for these programs reaching billions upon billions of dollars annually.
The current survivor system for social security beneficiaries causes major fall backs upon the government as depending children can dip into the system upon the need for money instead of finding family members of which to partially depend upon.
In the past decades falsified disability claims have cost the government massive amounts of revenue in the Social Security Administration. The people that go onto disability can continue onto long term disability without the verification of incapacitation in terms of work load, either mental or physical, for years.
Currently the Temporary Assistance for needy families has lose regulation upon those who can ably, it was meant for those not eligible for unemployment benefits or standard social security benefits or after all other resources had been denied. Temporary Assistance for needy families often spikes at the times of higher unemployment for people that are coming off of unemployment, not those who are truly in need of heavy government assistance.
Federal Unemployment benefits are around .8% of the first quarter earnings on a capped percentage at $106,800; which on average is $56.00. The federal benefits are paid in times of heavy unemployment, but the heavy unemployment is loosely defined.
Currently Supplemental Security Income is paid directly by the US Treasury to those approved for benefits; its regulations are for those in worsened hard ship and disability. The regulations however are sometimes overlooked in applications.
PROPOSAL FOR ACTION :
Federal Old age, survivors and disability insurance:
The age of retirement beneficiaries will be changed to 69. The cap of percentage income ($106,800) will be eliminated; therefore the percentage of all persons in covered employment will be at the standard percent. This will be regardless of income levels. The taxes that are in place in 2011 will be changed to 6.8% workers and 6.8% employers (Just for taxes in place under the Federal Insurance Contributions act and overseen by the SSA). The wages that are not subject to being taxed will remain the same.
This system that is now outlined above will be privatized into one entity that will be overseen by the SSA. The privatized sector of Federal Old Age (Retirement) benefits will be outlined as follows.
The privatized system will maintain the money that is paid by an individual currently entering the workforce. This will be determined by their first payment of social security taxes. The money will be recorded and put into a fund for all individuals. At the age needed to become beneficiaries they will withdraw on a plan set up for 30 years retirement. If a person is to outlive the 30 years then they will enter into government assistance; this will be set up by a separate tax of .5% upon each paycheck that will be matched by the employer and paid at the standard rate. They may only withdraw the amount of money accumulated through their life in the workforce set up at a rate of 5% per year of the original amount.
Remaining funds in the initial 30 year period will be split 70% to the government, and 30% to the privatized sector to be replenished into the social security system.
The government funds will be put toward other sectors of the social security system, or if needed they will be put back into the retirement sector of the social security system.
Survivors of a person receiving welfare will receive benefits up until two years after passage or the age of 18, before the period of two years ends they must find a relative or godparent to live with, and after the two years the payments will be ceased.
If they are without family or god relatives they may apply for continuing the payments all the way until the age of 18 regardless of the period between their age and there coming of age to no longer be a minor.
Disability claims will be limited to a primary 6 month period in which original regulations and forms still apply, after this primary period the claims will be eliminated and you must apply for secondary long term government assistance. This will consist of a form identical to the primary form but must be verified by additional forms signed by a practicing physician that outlines the continued disability. This must be repeated once every year to continue disability claims
Federal Unemployment Benefits
Under the Federal Unemployment Tax Act the United States government will continue to collect taxes and help run state departments, and from this point forward they will only provide extended unemployment benefits in a time in which 12% or more of Americans are unemployed.
The rate of tax cuts for prompt payment of state unemployment taxes will be restricted from 5.4% to 5.2% of early wages. (The taxes collected by FUTA rarely exceed about $54.00)
Temporary assistance for needy families
The block funding provided by the government may only be allocated to families that meet the following criteria: They don’t have anyone on welfare or they have multiple persons over 18 with one person on welfare in a low level payment. They must also meet the current requirements already set by the federal government for states to be able to use this funding.
Medicare and Medicaid provisions are set up in the recently passed Health Care Bill of the Obama Administration and the Patient Protection and Affordable Care Act and Health Care and Education Reconciliation Act of 2010.
Supplemental Security Income
Funds that the federal government now uses in excess and puts into trust funds will be allocated for supplemental security income, currently the total revenue for this program comes from the U.S. treasury, and this will be conducive of joint operations with funds coming from the SSA and the U.S. Treasury.
The age for benefits will be moved from age 65 to 69. Disability applicants will have the same regulations as stipulated under the Disability clause.
The resources and residency stipulations for these programs will remain the same.
The stipulations for Blind persons wishing to claim supplemental security income will also remain the same
RESULTS TO BE EXPECTED :
This proposal will cut down on the United States expenditures in both the Social Security system and the bureaucracies involved. It will cut down the deficit and the use of trust funds. The system will be streamlined and efficient; allowing for the use of benefits by future generations.
The SSA will have extended regulation into parts of the system under the US treasury. The SSA will have increased revenue and decreased expenditures, allowing for funding to flow into the federal government and the percentage of the annual budget for social security to decrease.
