2010 Social Security Trustees Report Talking Points

[eridani]

From the Social Security Works Coalition

The Social Security Trustees report will be released tomorrow, Thursday, August 5 at 9:00 a.m. PDT. As usual, we can expect the majority of pundits and media reports to ignore the fundamental soundness of Social Security and its importance to the economic security of all Americans. Instead, much of the focus will be the “shortfall”, reported as a certainty rather than a possibility if future economic performance and productivity growth is very weak. Words like “bankrupt” and “crisis” will be used, even though the report will show that under the worst case scenario and with no action by Congress, Social Security could still pay today’s young workers larger benefits after inflation than their grandparents get now. Even though Social Security has run a surplus for nearly 30 years, some will even hold the program responsible for the national debt and the high cost of health care in the U.S.

It would be wonderful to have members of the Social Security Works Washington coalition ready to submit letters to the editor and blog posts in response to news reports and editorials appearing around the state. Attached are some talking points for your use. Tomorrow we’ll put out a brief summary of the latest dates and data from the report, and Alex Stone of EOI will track statewide media coverage.

<<2010 Social Security Trustees Report Talking Points.doc>>

Marilyn P. Watkins, Ph. D.

Policy Director, Economic Opportunity Institute

NOTE FROM AARON KEATING: The talking points refer to a date that needs to be updated before it should be used. (See item one, second bullet point regarding the projected date through which the Social Security Trust Fund is expected to carry a positive balance; the 2009 estimate was 2037). We'll update the talking points when the information is available. Aaron Keating

1900 N. Northlake Way, Suite 237
Seattle, WA 98103
phone [phone]
cell [phone]
fax [phone]
marilyn {at} eoionline.org
www.eoionline.org


1. Social Security is in good shape financially, now and into the future. For 75 years, working Americans have paid into the system. Their contributions have both supported benefit payments and built a $2.6 trillion Trust Fund.

 Social Security has been collecting extra payroll taxes for nearly 30 years to prepare for the retirement of the baby boom generation. For example, in 2008 Social Security took in $49 billion more in payroll taxes and $131 billion more in interest and other income than it paid out in benefits and expenses.

 This year’s Trustees’ Report shows Social Security has sufficient funds to pay full benefits through 20XX. After that point, even if Congress takes no action, Social Security payroll taxes will be enough to fund 75% of scheduled benefits to retirees, disabled workers, and surviving family members – just as it has over the past 75 years. Social Security can be fully funded indefinitely by by simply basing Social Security taxes on all earnings (rather than the current cap of $106,800).

 Some fear the government is spending the trust fund instead of saving it. Actually, the trust fund is invested in U.S. Treasury bonds, which are widely considered the safest investment in the world. It’s a win-win: the bonds pay for education, research, transportation and other public structures that benefit us all and will make the future workforce more productive, while the investment return improves Social Security’s long-term bottom line.

2. Social Security is the bedrock of economic security for millions of children, as well as working and retired Americans of all income levels, protecting them against the loss of wages as the result of disability, death, or old age.

 Investment-oriented retirement plans like 401(k) accounts seesaw with the ups and downs of the stock market, and favor the highest income earners. But Social Security’s progressive benefits, cost-of-living adjustments, family benefits, survivor and disability programs, and lifetime retirement benefits guarantee that everyone will have at least a minimum monthly income in retirement, and that workers and families are protected in the event of economic catastrophe.

 Social Security provided $672 billion in benefits to 51 million people in 2009, including over 1 million in Washington State. 3.2 million American children through age 19 are direct Social Security beneficiaries; many others have an immediate family member who receives Social Security benefits. One third of beneficiaries collect survivors or disability insurance, keeping millions of families with a disabled or deceased breadwinner out of poverty.

 Thanks to Social Security, America has almost eliminated poverty among the elderly, thanks to lifetime retirement benefits, annual cost of living increases, and family benefits. What’s more, because benefits go up a little faster than inflation, benefits for future retirees will be worth more than today's seniors receive

3. Social Security did not cause the federal deficit and benefits should not be cut to reduce the deficit. Instead, Congress should act to strengthen and modernize Social Security to reflect the dignity of all work regardless of income, to better cover health and care costs, and to improve fairness. This can be accomplished by:

 Changing the benefit formula to replace a higher percentage of low earnings;

 Providing a care-giving credit for at least 5 years;

 Guaranteeing elderly survivors 75% of the couple’s benefit;

 Allowing benefits for state-recognized same-sex couples and their families.

[lib2DaBone]

1. Thanks for post.

If Social Security is SO broken.. and in such bad shape... how come the Bankers ARE DYING to get their hands on it?

[valerief]

2. Badda bing! nt

[eridani]

3. Kick for Thursday n/t

[Hannah Bell]

4. kr