Social Security Plan's Impact Unclear

[Blue Diadem]

January 17, 2005, 1:15 PM EST

WASHINGTON -- Social Security disability benefits may not be safe from the across-the-board cuts that are likely in President Bush's proposal to allow personal investment accounts.

Retirement and disability benefits are calculated using the same formula, so if future promised retirement benefits are cut, then disability benefits also would be reduced -- unless the program is somehow separated.

That also raises big questions about how investment accounts would be structured for disabled people, especially if they get injured at a young age or are dependent on a parent. Disabled beneficiaries typically work less and need benefits sooner, so the accounts would not provide enough income to these people.

"The Social Security programs are insurance programs, not investment programs, designed to reduce risk from certain life events," said Marty Ford of the Consortium for Citizens With Disabilities.


http://www.newsday.com/news/politics/wire/sns-ap-social-security-disability,0,1613702.story?coll=sns-ap-politics-headlines

[Name removed]

1. Deleted message

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[Robbien]

4. No they are highlighting the fact that Bush just screams crisis without

putting out any details.

Bush wants his investment firm buddies to have our social security and to hell the the details because it is in the details Bush's plan would show what a disaster it is.

[Name removed]

5. Deleted message

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[Megahurtz]

7. What if you were disabled

and you never had the chance to invest?

I agree SS should for insurance and not investment.

Let people invest in their own bank accounts if they want to and if they can afford it.

[Zenlitened]

2. "Social Security programs are insurance programs, not investment programs"

Excellent talking point!

:)

[Name removed]

6. Deleted message

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[Megahurtz]

9. The Social Security System is broke because

this administration has stolen from it and they don't want to pay it back.

[Zenlitened]

10. "True personal story:" My father died when I was 13.

My brother was 15, my sister was 9. My mother had no college education and worked as a secretary.

Social security kept us from homelessness, and allowed my brother, my sister and me to continue getting good grades in school and go to good colleges.

The "true personal" scenario you described may be a child support issue. It may be an income tax issue. But it most certainly is not a Social Security issue.



(Edited to clarify)

[Name removed]

11. Deleted message

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[Zenlitened]

13. No, it's not the Social Security money that's being wasted...

It's child support and total income in this case that may need to be re-evaluated.

"Bought new cars with their Social Security money"?

No, they bought new cars with the OTHER money. It's all in how you choose to look at it.

Edited to add:

Dang, you mods are lightnin'-fast! Thanks for ridding us of that one. Talk about having an axe to grind!

:hi:

[Inland]

19. So good, I make it every time.

Comparing the "return on investment" on social security to stocks is like comparing the "return on investment" of your life insurance policy to stocks.

The point is to insure yourself against the catastrophic. You don't consider your premiums as a loss if you are lucky enough to live a long time, and you don't consider your payroll taxes a loss if you are lucky enough to avoid disability or be rich when you retire.

All the investment true-believers who take investments in the stock market on faith (it is just another faith based, ideologically driven political move) don't remember what EVERY investment counselor will tell you about investing:
First, have enough cash or cash equivalent to survive a job loss, like six months:
Second, insure against death and disability:
Third, take risk into account.

[Megahurtz]

3. This administration is shutting out the disabled

because they're not as fortunate enough as the corporate wealthy.

THIEVES!!!

:argh:

[Zenlitened]

8. Well, they should have thought of that...

... before they decided to become disabled! </sarcasm>

:silly: :silly: :silly: :silly: :silly: :silly: :silly:

I swear, the people running our government today are some sort of reptilian alien species, barely disguised as human beings.

(Edited to make sarcasm clear)

[CountAllVotes]

12. no one plans to become disabled

its one of those things that just happens to some in life. That is why there is Social Security.

These people are liars, thieves and really don't care about anyone but themselves. Where would a disabled person find money to invest in the holy stock market exactly?

Good god! :eyes: We MUST stop this!

:kick:

[Zenlitened]

14. Oh, I agree, I agree

I'd hoped the "silly" faces :silly: made it clear that I was being sarcastic.

:hi:

[CountAllVotes]

17. I knew that

I was just adding further commentary to your post. It is disgusting. Where will the disabled go if there is no Social Security for them to live on. Everyone I know in this awful boat (and yes, it is awful) barely get enough money to buy food with. They cut every corner possible to make ends meet. Most are heavily in debt due to medical expenses as Medicare doesn't even come close.

This really is the living end!

:kick:

[Megahurtz]

16. Yes, we must stop this!

and also not everyone who is not disabled can afford to invest in the holy stockmarket either. There are MANY people who are only able to live from paycheck to paycheck.

This "private account" idea is insane!

:kick:

[CountAllVotes]

21. yeah private accts. funding with what?

When you are living paycheck to paycheck, they is nothing left to "invest"!

And to think they want to not pay out benefits to disabled persons that may have very well paid into SS for many years only to get dx'd with some horrible affliction! This is a disgrace and so much for the compassionate conservatives out there!

It seems when a person is given a horrible diagnosis they lose their job quickly (either due to the disability itself or because of workplace discrimination) they are left hanging ALL ALONE.

A man I know comes to mind. He is about 45 years old and has MS. He was doing sort of ok for awhile but now he is paralyzed and bed ridden for life! He gets about $900 a month from SSDI as he worked for about 20+ years in a State job before he couldn't work any longer.

What will happen to this man I know? If he has no income any longer will they simply allow him to rot on the street with nothing?

God, this country is making me really begin to feel sick inside. :puke:

:kick:

[KoKo]

15. Good Grief, it took this long for the disabled to figure this one out?

sheesh.. The disabled are the main ones pushing for the "Touch Screen" machines here in NC. I'd started to wonder if the Bushies had taken hold of the whole group.

[rodeodance]

18. they said no the news that even the WH is unsure of its outcome-and

the Republicans are pushing for the change-!!

[Megahurtz]

20. That's terrible!

I wonder if they realize now that they screwed themselves? The Bushies probably had this one planned all along.