No SS raises for at least 2 years...

Discussion in 'Chit Chat' started by BILLCAMO, Aug 25, 2009.

  1. BILLCAMO

    BILLCAMO New Member

    Is what I've see on the news for a couple of days. Frankly , I'm not surprised and have been expecting it.

    At least some politicians realize that there are price tags for all of the "free" programs.

    Social Security people can't afford to fight such a decision and can least weather an effective reduction in income .

    All I ask is for all to remember the next time you hear....."The price tag will only affect the 'Rich'......."

    Blessings ,

    b/c
  2. Gingareeree

    Gingareeree New Member

    I addressed this issue yesterday on the healthcare reform post. It really is a shell game,they are scrambeling to find $$$ wherever they can,robbing Peter to pay Paul. This is no suprise to me either! ~~Jeanne
  3. Pippi1313

    Pippi1313 New Member

    when did the elderly & disabled become "the rich"?

    Pip
  4. Granniluvsu

    Granniluvsu Well-Known Member

    You got it BIll and Jeanne. I really do not think I need to say much more but if people really want it and need it sure looks great (the Free) or almost free Healthcare Bill. Yes, it does need some reforming but not a complete overhall. The $ has to come from someplace and it will be on US ALL !

    Yes, I certainly don't think we will be getting a raise in SS and I will be very surprised if our payments don't go down.

    Yes, Pip I understand.

    Blessings,

    Granni
    [This Message was Edited on 08/26/2009]
  5. TwoCatDoctors

    TwoCatDoctors New Member

    [I COULD NOT FIND THIS AS AN OFFICIAL SSA DOCUMENT, BUT CNN AND HLN ARE REPORTING IT. I ALSO HOPE WE REALIZE THAT THE SOCIAL SECURITY FUNDS COME FROM THE PAYROLL TAXES AND WITH MANY WORKERS ON UNEMPLOYMENT IT MEANS LESS FUNDS INTO SOCIAL SECURITY. THERE IS A LAW THAT SOCIAL SECURITY PAYMENTS CANNOT GO DOWN, AND WE SHOULD BE VERY THANKFUL FOR THAT. WE DID RECEIVE THE HIGHEST INCREASE IN YEARS FOR MONTHLY PAYMENTS BEGINNING JANUARY 2009 AND WE RECEIVED THE STIMULUS PAYMENTS OF $250 AND FOR SOME FAMILIES RECEIVED $500. SO THE YEAR OF 2009 WAS A BETTER YEAR FOR GETTING SOCIAL SECURITY PAYMENTS. NOW YOU WON'T GET AN INCREASE SO TIGHTEN YOUR SPENDING. BECAUSE OF THE PRESCRIPTION PLAN YOU MAY HAVE YOUR SS PAYMENT REDUCED BY TWO DOLLARS DUE TO THE PRESCRIPTION PLAN, BUT I'M JUST HAPPY OUR PAYMENTS ARE NOT GOING DOWN REFLECTING THE ECONOMY. I'M DISABLED AND AT POVERTY LEVEL AND ON THE DISABLED BOARD HERE WE KNEW THIS WAS COMING MONTHS AGO, SO WE WERE ALREADY TIGHTENING OUR BELTS, FIGURING TO WATCH OUR SPENDING, ETC. SO IT'S ALSO ABOUT PAYING ATTENTION TO IMPORTANT ISSUES THAT IMPACT YOUR PAYMENTS AND PREPARING IN ADVANCE.]

    The Huffington Post
    Millions Face Shrinking Social Security Payments
    STEPHEN OHLEMACHER | 08/23/09 09:51 PM | AP

    WASHINGTON — Millions of older people face shrinking Social Security checks next year, the first time in a generation that payments would not rise. The trustees who oversee Social Security are projecting there won't be a cost of living adjustment (COLA) for the next two years. That hasn't happened since automatic increases were adopted in 1975.

    By law, Social Security benefits cannot go down. Nevertheless, monthly payments would drop for millions of people in the Medicare prescription drug program because the premiums, which often are deducted from Social Security payments, are scheduled to go up slightly.

    "I will promise you, they count on that COLA," said Barbara Kennelly, a former Democratic congresswoman from Connecticut who now heads the National Committee to Preserve Social Security and Medicare. "To some people, it might not be a big deal. But to seniors, especially with their health care costs, it is a big deal."

    Cost of living adjustments are pegged to inflation, which has been negative this year, largely because energy prices are below 2008 levels.

    Advocates say older people still face higher prices because they spend a disproportionate amount of their income on health care, where costs rise faster than inflation. Many also have suffered from declining home values and shrinking stock portfolios just as they are relying on those assets for income.

    "For many elderly, they don't feel that inflation is low because their expenses are still going up," said David Certner, legislative policy director for AARP. "Anyone who has savings and investments has seen some serious losses."

    About 50 million retired and disabled Americans receive Social Security benefits. The average monthly benefit for retirees is $1,153 this year. All beneficiaries received a 5.8 percent increase in January, the largest since 1982.

    More than 32 million people are in the Medicare prescription drug program. Average monthly premiums are set to go from $28 this year to $30 next year, though they vary by plan. About 6 million people in the program have premiums deducted from their monthly Social Security payments, according to the Social Security Administration.



    Millions of people with Medicare Part B coverage for doctors' visits also have their premiums deducted from Social Security payments. Part B premiums are expected to rise as well. But under the law, the increase cannot be larger than the increase in Social Security benefits for most recipients.

    There is no such hold-harmless provision for drug premiums.

    Kennelly's group wants Congress to increase Social Security benefits next year, even though the formula doesn't call for it. She would like to see either a 1 percent increase in monthly payments or a one-time payment of $150.

    The cost of a one-time payment, a little less than $8 billion, could be covered by increasing the amount of income subjected to Social Security taxes, Kennelly said. Workers only pay Social Security taxes on the first $106,800 of income, a limit that rises each year with the average national wage.

    But the limit only increases if monthly benefits increase.

    Critics argue that Social Security recipients shouldn't get an increase when inflation is negative. They note that recipients got a big increase in January – after energy prices had started to fall. They also note that Social Security recipients received one-time $250 payments in the spring as part of the government's economic stimulus package.

    Consumer prices are down from 2008 levels, giving Social Security recipients more purchasing power, even if their benefits stay the same, said Andrew G. Biggs, a resident scholar at the American Enterprise Institute, a Washington think tank.

    "Seniors may perceive that they are being hurt because there is no COLA, but they are in fact not getting hurt," Biggs said. "Congress has to be able to tell people they are not getting everything they want."

    Social Security is also facing long-term financial problems. The retirement program is projected to start paying out more money than it receives in 2016. Without changes, the retirement fund will be depleted in 2037, according to the Social Security trustees' annual report this year.

    President Barack Obama has said he would like tackle Social Security next year, after Congress finishes work on health care, climate change and new financial regulations.

    Lawmakers are preoccupied by health care, making it difficult to address other tough issues. Advocates for older people hope their efforts will get a boost in October, when the Social Security Administration officially announces that there will not be an increase in benefits next year.

    "I think a lot of seniors do not know what's coming down the pike, and I believe that when they hear that, they're going to be upset," said Sen. Bernie Sanders, an independent from Vermont who is working on a proposal for one-time payments for Social Security recipients.

    "It is my view that seniors are going to need help this year, and it would not be acceptable for Congress to simply turn its back," he said.

    FROM: http://www.huffingtonpost.com/2009/08/23/millions-face-shrinking-s_n_266404.html
    [This Message was Edited on 08/26/2009]