Get to Know: Hi-Tech Advisersby Melanie Lekocevic / March 24, 2022Related Posts
Social Security Matters: What is the future of Social Security?
By Russell Gloor
For Capital Region Independent Media
Dear Rusty:
Is there any way that Congress will vote to pay back the Social Security funds they took and left IOUs in place of the funds? Because of the funds they took going back many years, we didn’t have any decent COLAs (Cost-of-Living Adjustment) for a few years. In fact, there were I think three to five years that we didn’t get any COLA.
Please, Rusty, can you find out if this is true or false? Help us seniors!
Signed: Resentful Senior
Dear Resentful Senior:
I can assure you that I’ve fully investigated the allegation that politicians have squandered Social Security’s money and found that charge to be, simply speaking, a myth.
I’ve gone back and looked at Social Security revenues and expenses since the government first started collecting FICA payroll taxes in 1937 and found that every dollar ever collected for Social Security has been used only for Social Security purposes.
Over the years, various claims have been made that the money has been used for other things, but I’ve researched each of these charges and found them all to be false.
Where the misconception mostly originates is that any excess money collected from working Americans for Social Security is invested in “special issue government bonds,” which pay interest, as mandated by President Roosevelt when Social Security began. As with any investment, a financial obligation instrument is given in return for dollars received.
Remember when we used to buy “U.S. Savings Bonds?” We’d use our money to buy those bonds, hold them, and later redeem them for a higher amount than we paid. That’s exactly how Social Security contributions have always worked – excess money collected from working Americans is used to purchase special issue government bonds which are held in reserve, earning interest, for future Social Security needs. These special bonds reside in a Social Security Trust Fund and, as of the end of 2022, were worth about $2.8 trillion.
Are these bonds “worthless IOUs,” as some would claim? Hardly, since they are redeemable as needed to pay Social Security benefits.
Considering that, since 2010, Social Security’s income from payroll taxes on American workers has been less than needed to cover benefits paid out, redemption of bonds held in the Trust Fund is the only reason that Social Security has been able to continue paying full benefits to every beneficiary.
The Trust Fund is a financial safety net that is now protecting all SS beneficiaries from having their benefits cut. Problem is, unless Congress acts soon to reform Social Security’s financial picture, the Trust Fund will be fully depleted in about 2033, resulting in about a 23% cut in everyone’s monthly Social Security benefit.
I’m optimistic that will not happen (it would be political suicide) and, hopefully, Congress will act soon to reform Social Security and restore it to financial solvency and avoid a future cut in everyone’s benefits.
Regarding COLA (Cost of Living Adjustment) and the lack thereof for several past years, COLA is determined by the government’s standard inflation measure – the Consumer Price Index (CPI). There were several years (2010, 2011, and 2016) in which the CPI showed no inflation so, therefore, no COLA increase was given. Last year, due to soaring inflation, everyone got an 8.7% increase in their Social Security benefit, but that doesn’t happen every year.
For your information, the average annual COLA increase over the last two decades has been about 2.6%, although COLA for each year can be wildly different depending on each year’s inflation measure.
In any case, the lack of a COLA increase in past years was not a result of any political chicanery, it was the result of low inflation during those years.
This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at ssadvisor@amacfoundation.org.
Events: RCS Community Library
- Family Storytime
Thursday, March 13, from 10-11 a.m.
Family Storytime is a fun, participatory storytime for the whole family that includes songs, fingerplays, stories and movement activities. Early literacy activities are emphasized. No registration is needed.
- Sashiko-Style Mending Workshop
Thursday, March 13, from 6:30-7:45 p.m.
This two-day workshop will introduce you to sashiko — a Japanese form of decorative stitching used to reinforce or men clothing. Session: Hand Sewing 101: This workshop focuses on learning the visible mending stitches that are used to repair an item or create a decorative piece. Covers running stick, slip stitch, backstitch, and how to secure a stitch. Supplies are provided. Registration for this two-session workshop is required at rcscommunitylibrary.org. There are no seats available but a waiting list is available. For ages 11 and up.
- HEAP Drop-In Application Assistance
Friday, March 14, from 10 a.m. to 12 p.m.
Do you need help heating your home? Come find out if you are eligible for Home Energy Assistance Program (HEAP) benefits, which can help eligible New Yorkers heat their homes. If you are eligible, you may receive one regular HEAP benefit per program year and could also be eligible for emergency HEAP benefits if you are in danger of running out of fuel or having your utility service shut off. A representative from Cornell Cooperative Extension will be present and will meet with people individually on a first come-first serve basis. Applications will be available if you would like to complete an application on site. No registration is required. For adults.
- Romp and Read
Friday, March 14, from 10-11 a.m.
Romp and Read will help get the wiggles out on Tuesdays and Fridays at 10 a.m. with interactive themes, stories and action songs with props. No need to register.
- Friends of the RCS Community Library Monthly Meeting
Monday, March 17, from 6:30-7:30 p.m.
New members are always welcome! The Friends of the RCS Community Library, which is in the development process, welcomes new members. The group is seeking eager participants with ideas about how to advocate and support the library’s outreach. Monthly meetings are at the library on the third Monday of the month. For adults and teens.
- Romp and Read
Tuesday, March 18, from 10-11 a.m.
Romp and Read will help get the wiggles out on Tuesdays and Fridays at 10 a.m. with interactive themes, stories and action songs with props. No need to register.
- Write Together at the Library
Tuesday, March 18, from 6:30-7:45 p.m.
Are you a beginning writer, or maybe working on the Great American Novel? Maybe you’re the short-story type? Prose fiction writers of all types and levels are invited to bring your notebooks, laptops or other writing implements and join in for an evening of writing together. The library will offer writing prompts, sprints and quiet time for you to get ahead on your writing project, no matter where you are in the process. Registration is required at rcscommunitylibrary.org. For adults.
- Senior Cinema: ‘Conclave’
Wednesday, March 19, from 2-3:30 p.m.
“Conclave” follows one of the world’s most secretive and ancient events — selecting a new ope. The church’s most powerful leaders have gathered from around the world, locked together in the Vatican halls. Tasked with running this covert process, Cardinal Lawrence (Ralph Fiennes) finds himself at the center of a conspiracy and discovers a secret that could shake the very foundation of The Church. Rated PG. For adults.
- Needle-Felted Easter Eggs
Wednesday, March 19, from 6-7:30 p.m.
Local needle-felting expert Donna Hamilton will teach participants how to make felted Easter eggs. Registration is required at rcscommunitylibrary.org. For adults.
- Family Storytime
Thursday, March 20, from 10-11 a.m.
Family Storytime is a fun, participatory storytime for the whole family that includes songs, fingerplays, stories and movement activities. Early literacy activities are emphasized. No registration is required.
- Lunchtime Books: ‘The Museum of Failures’
Thursday, March 20, from 12-1 p.m.
In “The Museum of Failures,” by Thirty Umrigar, Remy Wadia returns to Bombay, India, to adopt a baby, only to discover his ailing mother is harboring a shocking family secret that forces him to confront his past and complicated relationship with her, as he grapples with the idea of becoming a father himself. This program is for adults. Books are available at the library and new members are always welcome. No registration is required.
NEW FICTION
“Blood Moon” by Sandra Brown
“Galaphile: The First Druids of Shannara” by Terry Brooks
“Cold Iron Task” by James J. Butcher
“Crush” by Ada Calhoun
“High Tea and Misdemeanors” by Laura Childs
