I wanted to make a video for people who had agoraphobia and wanted to get Social Security or SSI. I know some people in whom agoraphobia develops overnight, just like it did for myself, and in some people it takes years to get to that point where they are full-blown agoraphobic. So maybe they’ll have a little bit of doctor records and stuff under their belt. For people like me who never got treated for anxiety or depression or anything like that, prior to developing agoraphobia, now we’re stuck in a situation where if we’re going to leave our home, we know we need a doctor. But what are people like us to do who develop agoraphobia overnight and can’t find a doctor or anybody who wants to support us, but yet we need money to support our family?

Well, I’ll share some of the things that I did. If you go to my website, there is a link on there called “Social Security and Me” that talks about my little journey with Social Security and what happened to me in 2007. Basically, I signed up for Social Security in November of 2007, I got my doctor in November 2007, she was a psychologist. Basically she came to my house, and the first mistake that I made … and make sure that if you get a doctor that she will support your claim … because I came to find out that she wouldn’t give Social Security my medical records once I asked her to. And basically she was anti-Social Security and I couldn’t get her to give up my records. So that is a major problem to say the least because the thing about it is when you tell people you got a problem they say, “Well, sign up for Social Security or SSI”. And what a lot of people don’t think about, apparently, is that you need proof; just like in a court of law you need proof to make your claim. That’s the same thing for Social Security or SSI; you need proof. I would say at least 6 months to a year.

If good solid proof of going to a psychologist, psychiatrist – whatever it is under your belt – before you should even file a claim. And make sure that this psychologist or psychiatrist or general practitioner or whoever you are going to, will give up your records. Make sure you have that conversation before you even call Social Security or go to the Social Security office.

Yes, you can call Social Security and sign up over the phone. You can do your interview over the phone where they ask you what is wrong with you and all that good stuff. Another thing that you might be worried about is: “What if I don’t have enough medical records and they want to send me to a doctor?” And the common misconception even with Social Security themselves is … because when I had my interview on December 3rd of 2007, I told the lady that did the interview “Look, I won’t be able to go to a doctor even if they send me” because she said, “You don’t have many medical record to they’re going to most likely send you to a doctor. Will that be a problem?” I said, “Yeah, it will be because I have agoraphobia”. And she said, “Well, you’re pretty much screwed”. I said, “I bet you I’m not” and come to find out in the end I was right. They sent a psychologist to my house to do my evaluation. It can be done. Don’t let anybody tell you any different. One way to make sure this happens is to call your DDS examiner. Your DDS examiner is the person who handles your claims. Social Security doesn’t handle your claims. They let somebody who’s called a DDS examiner handle your claims; that’s the “Disability Determination Service”. Those are the ones that determine whether you’re disabled or not for Social Security. So make sure that when you get the letters in the mail that says, “This person is your examiner or case worker”, you call him every now and then and ask him, “What’s going on with your case, do you need anything?”. And if you send him paperwork ask him, “Was that good enough, do you need more?” Because the only thing this will do is speed up your claim and it keeps you in contact with your DDS examiner.

99% of people apparently don’t even do this; they just sign up for Social Security and they wait for Social Security to send them a letter in the mail saying “We need this” and then they send it back. They don’t even know if Social Security got the letter or not. So, keep in contact, keep in contact, keep in contact with your DDS examiner. Call them. I cannot stress that enough.

One time, when I signed up Social Security that day and I had that lady telling me, “You will not be able to get Social Security because you won’t be able to go to a doctor for evaluation”. I called a lawyer; I got a lawyer even before I got denied for Social Security, because the lawyer knew over the phone they would deny me. So basically what happened was everything that got sent to me had to go through my lawyer to Social Security. So basically what happened was one day they needed a letter from my doctor. My doctor did an evaluation of me and I called her to give it to me telling her I need it for a medical card, when actually I was going to send it to Social Security and try to get a medical card. So she gave me this big evaluation saying, “He cannot work right now. He’s got Generalized Anxiety Disorder, GAD” and all that different stuff. Which was the truth; she didn’t lie. She gave me two copies; I sent one to my lawyer. About a week later I called my DDS examiner – which a lot of people don’t do – and I asked, “Did you get that?” and she said “No”. I called my lawyer, they said they haven’t received it. And then the lawyer said “We haven’t even received it”. So from that point on I skipped the lawyer. I sent the DDS people the paperwork myself. In the end, the lawyer might not have paper work that the DDS examiner might have that they don’t have, but they can always get it themselves. Right now I’m worried about myself. That lawyer wants just $2,500 whenever it goes to court.

But right now I’m just worried about myself. So make sure you call. That’s an example; she wouldn’t even have got that, and that was a really important part of my case, and I handled it myself. So anyway, I got turned down and the reason why I got turned down was I didn’t have any evidence, I didn’t have anything to backup my claim. And people tell you, when you get denied, even if you have evidence, file it. Yes, that’s true. File it. l file it. If you have a doctor, file it if you have somebody who will back you up and say, “He is messed up in the head, he cannot work for at least a year”. You need your doctor to be able to say “For at least a year”, not 6 months or 8 months. That is one of the conditions that in order to get Social Security disability you have to be disabled for at least a year. The doctor has to put on that letter, “I think for the next year he will be unable to work.” And so those are a few tips.

If you have any more questions be sure to write to me, check out my website www.anxiety-agraphobia.com. The link on there is called “Social Security and Me“. It tells a little bit more about documents that Social Security sent me that I have on my website. Even what the denial letter said. So if you’re curious about any of that, why not check it out. If you have anxiety or some kind of other anxiety disorder, or if you got agoraphobia in particular, be sure to check that out.

Senator Bernie Sanders: On October 15th, it is expected that social security administration will announce for the first time in 35 years that seniors will not receive a COLA. Based on the formula, that by law they are obliged to use, they came to the conclusion that there is no inflation this year for seniors, and in fact their understanding is that prices for seniors have declined.

In my view, that is a wrong formulation. And I believe that it simply does not accurately reflect the purchasing habits of seniors. Seniors right now – I know this will come as a great shock – are not rushing out to discount stores to buy laptops, computers or iPods. What seniors now are purchasing, what they need, is health care prescription drugs. And the evidence is overwhelming that seniors spend a disproportionate percentage of their limited incomes on health care and prescription drug needs. And those costs, sadly, are not declining. They are, in fact, going up.

Rep. Peter DeFazio: As Senator Sanders noted earlier, a much more accurate measurement of the poverty level for seniors would show that it’s twice what we measure it at. We don’t have a good measure of what the inflation rate is for seniors. But we do know that pharmaceutical costs continue to escalate, medical care costs continue to escalate. Their rents or mortgages haven’t gone down. Their utilities have likely gone up. You know, nothing else that they have to consume has gone down in price over the last year. So, this modest $250 one-time payment to seniors would be basically equivalent to a 2% cost of living adjustment. It would help them meet some of those bare necessity costs.

Barbara B. Kennelly: And I am here today to deliver a 120,000 petitions saying “Hey, guess what? We need a COLA! Guess what, we’ve got some problems! We are the seniors of the United States. We are the seniors that built this county to be the country it is.” And I’m so delighted that these gentlemen are right behind that.

Let me give you the facts – 43% increase in Part A since 2000, 50% increase in Part B since 2000. Part D – now listen to this – Part D has a 130% increase. Those are prescription drugs.

Senator Sheldon Whitehouse: In Rhode Island, our seniors have a bigger proportion of their income come from social security than almost any other state. And we have seen, with real impact, what the other speakers have described. Which is – seniors seeing electric utility rates go up, seniors seeing pharmaceutical costs go up, seniors seeing all the real costs of their living go up. And with no real help in sight.

Senator Bob Casey: The least that we should do in the midst of the terrible recession, for older citizens and for families all across the country, is to make sure that we can provide some measure of relief that this legislation provides. That’s why we support it, no matter when it would come up, but especially in the midst of this economic darkness that so many families, so many older citizens have had to endure.

Rep. Maurice Hinchey: A failure to provide a Social Security COLA in 2010 for seniors would be a very critical mistake and have a very negative impact on them. And also, given the economic circumstances our country has faced over the course of this past year – actually, over the course of past two years – this economic downturn has pushed a decline in the standard of living of many seniors. Many have seen their home values drop, their pension funds severely decline, and their savings, in many instances, undermined and disappearing.

Estelle Lenet: My name is Esther Lenette and I am a resident of Montgomery county, Maryland. I’m 91 years old, and blessed to still be living independently. My only source of income is Social Security and I want to say that without Social Security, I don’t know where I’d be today. I really don’t. Getting a COLA next year doesn’t mean I’m going to be able to live extravagantly, but it means that I can keep up with my financial responsibilities and pay for the basics, especially the medical care that helps me stay independent. My thanks to the members of Congress for working to pass a COLA for seniors. Thank you!

Timothy Geithner: “The Social Security and Medicare Boards of Trustees met this afternoon to complete their annual financial review of the programs and to transmit their Reports to Congress. I welcome my fellow Trustees. I also want to acknowledge the hard work and dedication of the chief actuaries, Stephen Goss and Richard Foster.

For generations, tens and tens of millions of Americans have been able to count on Social Security and Medicare as guarantees that they will be able to live out their senior years in economic dignity and with health security.

This year’s Trustees Reports once again reminds us that the longer we wait to address the long-term solvency of Medicare and Social Security the sooner those challenges will be upon us and the harder the options will be. The earlier we as a nation commit to working together to make the difficult but achievable changes needed to strengthen the solvency of Medicare and Social Security, the more we give the American people time to plan and adjust and the sooner we will be able to ensure that these vital programs will be as important for generations to come as they are now.

That is why even as this President has focused on pulling our nation out of economic recession, he has made clear his commitment to working in a bipartisan way to address the long-term health of Medicare and Social Security. The President deeply understands that re-establishing fiscal responsibility as well as the strength of these two vital programs is essential to the economic and health security in our nation and to our generational responsibility to invest in our children and not simply pass on our debts.

The Medicare Trustees Report makes clear today there is no more important long-term fiscal policy measure than gaining control of the growth of Medicare costs by delivering health care services more efficiently. These savings can only be achieved in the context of a larger effort to control health care costs and improve quality more generally. The most effective entitlement reform measure will be a major health reform that helps bring down the growth rate of national health care spending. The Administration is committed to working with Congress to find ways to control runaway growth in both public and private health care expenditures while helping to ensure that all Americans receive the high quality, affordable health care they deserve. The recent commitment of major health stakeholders to help lower the annual growth rate in costs by 1.5% represents a crucial step in that direction.

The Trustees Reports come to the following conclusions.

• The Medicare program’s financial challenges are larger and more imminent than those of Social Security. Medicare faces demographic challenges, rapidly growing health care costs and the short-term outlook has been hurt by the recession. Medicare’s annual costs were 3.2 percent of GDP in 2008, or nearly three-quarters of Social Security’s, but are projected to surpass Social Security expenditures in 2028 and to reach 11.4 percent of GDP in 2083, compared with 5.9 percent for Social Security.
• Medicare’s Hospital Insurance Trust Fund is projected to become insolvent in 2017, two years earlier than projected in last year’s Report.
• The cost of Medicare’s Supplementary Medical Insurance (SMI) to the federal government is projected to increase rapidly. General revenue financing for SMI is expected to increase from about 1.3 percent of GDP in 2008 to over 4.7 percent in 2083, with continued increases beyond 75 years.
• This year’s Social Security Report projects that the Trust Fund will be exhausted in 2037, four years earlier than the Trustees projected last year. This change is primarily due to the economic recession, recent data that prompted a small downward adjustment to the projected level of real GDP after the economy recovers and the fact that our citizens are on average projected to live longer lives. Nevertheless, Social Security can continue to pay full benefits for nearly 30 years, and cover approximately 75 percent of scheduled benefits thereafter.

Despite projections that Social Security can continue to pay full benefits for nearly 30 years, the sooner action is taken the more options for reform will be available and the fairer reforms will be to our children and grandchildren.

To ensure that these critical programs are there for future generations, the President and his Administration are taking the following steps.

First, we are intently focused on bringing the current economic and financial crisis to an end and getting on with recovery. The return of robust growth will help solve some–but by no means all–of the financial problems of Social Security and Medicare.

Second, we are reforming the health care system to get costs under control and improve quality, which will strengthen the Medicare program and improve the long-term fiscal position of the U.S. government. Just yesterday, the President worked with major health care providers to secure a commitment to reduce costs of care by more than $2 trillion dollars. These voluntary efforts will complement the President’s efforts to enact comprehensive reform to assure quality and affordable health care for every American. The Administration is committed to working with Congress to find ways to control runaway growth in both public and private health care expenditures while ensuring that all Americans receive the high quality, affordable health care they deserve.

Finally, after we have passed health care reform that puts our nation on a path to lower growth in health care costs and expanded affordable coverage, this President will work to build a bipartisan consensus to ensure the long-term solvency of Social Security. The President explicitly rejects the notion that Social Security is an untouchable politically and instead believes there is opportunity for a new consensus on Social Security reform.

The steps that the Administration is taking towards comprehensive health care reform, toward economy recovery and toward deficit reduction will all help preserve Social Security and Medicare for future generations. And they will help produce a more balanced and sustainable growth that improves the lives of all Americans, both working and retired.”

Social Security Representative: I was thinking a little bit about this while I was planning to give the answer. What I really wanted to add to this is that our clients need to actually ask these questions of us. You know, they’re great to talk about on our TV show, but if this is going to happen with a client, when do you think the client should come in and ask the question. You know, ten months after they got the money, or you know, when they find out that their NV will or in the state. Contact us, ask us the question, and we can help the individual to prepare better to have this money actually do have some good. You know, if you’re going to inherit $5,000 and you have to use the money for the funeral expenses, then we’re going to find a way that we don’t count this money if it’s all spent on the funeral bill.

But if you’re going to get that money and you’re going to be able to say pay off your car bill or car loan, then come in and talk to us and we’re going to advise you that the month you get the money that month you’ve got to go in there and actually pay it on this bill, so that you only lose your SSI for the one month.

But try not to ask these questions after the fact. When you’re on a benefit program like SSI, it’s best that the individual contact us. Go right into our website. We’ve got answer to some of these questions right there. You can search it out and ask, you know, income or inheritance affect benefits and the answer would be given to you right on our website, or give us a call and one of our telephone operators would be able to send you a pamphlet on Supplemental Security Income and that might explain the information a little bit better.

Social Security Representative: I like to use this question here because the answer is something that most people should just kind of understand, but sometimes people get pension systems mixed up. Social Security does not have a fixed amount for an individual when they get to be 62.

In fact, with my sister, up in Canada, they have a fixed amount that an individual gets because of being a worker in Canada and then you get something above and beyond that. Well, for workers in the United States, we look at how much you’ve earned and paid into the system to figure out how much you’re going to get.

We send out a benefit statement every year. That’s what people need to do. Pull out their benefit statement, you look to see what your benefit is at age 62, what your benefit would be at age 66, if that’s your full retirement age. Well, for that four years, if your difference is $480 and there are 48 months there, well, then you know that your benefit is going to increase $10 per every month that you wait and hold off retirement from age 62.

So do the math, do look at that benefit statement because that’s the first place that you need to start looking when you start doing some retirement planning and you don’t have to wait until, you know, a date of birth. You don’t have to work until January. Sometimes retirement plans are, you know, personal.

Senior Citizen: Right.

Social Security Representative: You know, maybe October is the right time to go out on retirement for you and you can find all that information on our website to help make those decisions.

Senior Citizen: It’s awfully hard to get along anymore without the access to the Internet, isn’t it?

Social Security Representative: Well, and that’s the thing is that if you’re paying for Internet access and you have it at home, use it.

Senior Citizen: Right.

Social Security Representative: Also, we’ve talked to a lot of individuals where the libraries have got Internet access. We have some tribal council organizations that make Internet access available to their members and so use the access where you have availability, but be, you know, safe. Be sure to come right into our website, socialsecurity.gov.

Senior Citizen: Okay, thank you, Mark.

“I’m just curious. How many people think we should delay Social Security as long as possible? A few folks. You’ve seen my talk before? How many think to take it as early as possible. A few folks. Okay.

And actually, the answer… there is not a single answer here. It is a personal decision like we heard earlier from Nick. But I just want to give you some insights into this. First of all, this is a chart which just shows the monthly benefits and this is just an example. We are looking at someone who is earning $75,000 in 2009 and had always been making this amount. This is for a single person and if you’re married, if both of you work, each of you will get a benefit that comes from these kinds of charts and then your household income is just the sum of the two.

If one of you didn’t work or works sporadically then there is a special spouse’s benefit, which I will get to in a second. But just look at this chart. Say you are born in 1950, if you retire at 62, the monthly benefit is $1,470. If you retire at 65 its $1,850. And this person their full retirement as Nick was talking earlier is 66 and so their monthly benefit would be $1,980. And finally if you wait till age 70 the monthly benefit is $2,660. So you can see that there is a pretty dramatic increase in the amount of your monthly benefit if you delay your retirement benefits.

This is the same chart but for a married worker where the spouse didn’t work, and this is just a sum of the workers benefit and the special spouses benefit. But it’s the same pattern, you know, if you delay your benefits then your benefits go up. And so I like this chart. You know, when you put up charts that show percent increases it’s hard to relate to a percent, but here monthly income we can relate to a dollar amount of monthly income. It makes it easier for us to decide what’s the right thing to do.

This next chart, though, gets at the heart of the strategy that I’ve been talking about, and it’s kind of a complicated chart, but once I explain it, it’s not too bad. So, what we’re looking at is the first column here, is what would happen if you started benefits at age 62, which is the earliest possible age. And this is for someone who, again, made $75,000 per year in 2009 and who was born in 1950. So, their initial income per year would be $17,640. If they lived to age 70 and then died, they would have 8 years of getting the $17,640. Their lifetime income would be $141,120.

If they had lived till age 80 and then died then they would have 18 years of getting that amount of $17,640. Now their lifetime income is $317,520. If they lived until 90 and died it would be $493,920. If you instead waited until age 66, your full retirement age, then your annual income is that first row, $23,760. If you live until age 70 and then die, you will only have 4 years of that, $95,040, and then so on down the line.

If you decided to wait until age 70 to start your benefits, now it’s grown to $31,920. Now if you would have waited until age 70 and then you died at age 70, bad move. Okay? Because then you’re going to get nothing. But if you had waited until age 70 and lived until 80 you’d have 10 years worth of that amount, $319,000. And then if you lived to age 90 you would have $638,000.

So what you do is you think, “Well, the lifetime income that I am getting, the sum of all this money from Social Security, where is it biggest?” Well, if you died at age 70 your good move would have been to take it as early as possible. If you would have died at age 80 the best move would be to take it at age 66, and if you died at 90 you would be waiting till age 70.

So all this is showing is that the longer you live, the better off you are by delaying your retirement and your Social Security benefits. Now, remember earlier we were talking about life expectancies, and we saw that the average life expectancy got you into your early to mid 80s. If you’re taking care of your health and you’re adding those 5 or 7 years of healthy life like I talked about, you might get to your late 80s early 90s. And so these are the kinds of things you ought to consider when you are thinking about when you should start your Social Security benefits.

What I have done is tried to give you a way of thinking about this so that you can come to an informed decision rather than just hearing what your sister did or your brother did.”

Thanks to RestofLife.com

President Obama: The problem with our deficit and debt is not new. It has been building dramatically over the past eight years, largely because big tax cuts combined with increased spending on two wars and the increased costs of government health care programs. This structural gap in our budget, between the amount of money coming in and the amount going out, will only get worse as Baby Boomers age, and will in fact lead us down an unsustainable path. But let’s not kid ourselves and suggest that we can do it by trimming a few earmarks or cutting the budget for the National Endowment for the Arts. Along with defense and interest on the national debt, the biggest costs in our budget are entitlement programs like Medicare, Medicaid, and Social Security that get more and more expensive every year. So if we want to get serious about fiscal discipline – and I do – then we are going to not only have to trim waste out of our discretionary budget, a process we have already begun – but we will also have to get serious about entitlement reform.

Nothing will be more important to this goal than passing health care reform that brings down costs across the system, including in Medicare and Medicaid. Make no mistake: health care reform is entitlement reform. That’s not just my opinion – that was the conclusion of a wide range of participants at the Fiscal Responsibility Summit we held at the White House in February, and that’s one of the reasons why I firmly believe we need to get health care reform done this year.

Once we tackle rising health care costs, we must also work to put Social Security on firmer footing. It is time for both parties to come together and find a way to keep the promise of a sound retirement for future generations. And we should restore a sense of fairness and balance to our tax code by shutting down corporate loopholes and ensuring that everyone pays what they owe.

All of these efforts will require tough choices and compromises. But the difficulties can’t serve as an excuse for inaction. Not anymore.

Then, the IRS sends that information or makes that information available to us. So, we take that information and use it in calculating and verifying that a person is eligible for benefits. The IRS is the collection agency. They make sure that it’s there, they make sure that you get credit for it, and so you always have to go back to the IRS if your tax return got lost or whatever, you have to re-file it with them.

If you ever find out that you don’t have credit… well, we send a statement every year to show you how much credit you have got over your lifetime. If you find that there is a gap where your employer didn’t pay in your Social Security contribution for you and it’s not recorded, you can come to us, and we’ll help you get credit for that. But everything goes to the IRS, then it comes to us, and we use that information calculating.

Now, I would like to give the people a little caution as far as when they get that statement from us every year, if it doesn’t show their earnings are on there for last year, that’s not too worrisome, because it takes a while for the IRS to get all the W2s posted, and then that information will come to us. So, we’ll have earnings recorded, but not for the current year and one year into the past. Everything else should be on the record.

In February, the Social Security Administration (SSA) was the first federal agency to go into limited production on NHIN using CONNECT, in partnership with MedVirginia – one of the most electronically integrated communities of healthcare providers in the country. During 2009, the number of federal agencies participating in CONNECT will be expanded from 6 to as many as 14. In addition to the SSA, limited production pilots are planned by other federal agencies.

“The Social Security Administration is a federal leader leveraging healthcare information technology to accomplish their nationally important mission,” said Jim Traficant, vice president of Harris Healthcare Solutions. “CONNECT delivers secure and seamless health information exchange between federal agencies and with providers in the private sector while assuring patient privacy. CONNECT has the capacity to transform care and benefits delivery for people in need, including our wounded warriors, veterans and their families.”

CONNECT consists of 10 core NHIN gateway services and a software development kit that enables providers to customize their interface. The software was released for general availability by the U.S. Department of Health and Human Services in February. As a result, federal agencies and healthcare providers can create adapters to connect their edge systems to the NHIN and thereby maximize usefulness and productivity within their specific enterprise.

Harris – teamed with partners Agilex Technologies, Inc., Sun Microsystems, Inc., and Scenpro, Inc. – was awarded the original development and integration contract for CONNECT in March of 2008 by the Federal Health Architecture. Harris is also demonstrating CONNECT at its booth during HIMSS’09.

Harris Healthcare Solutions provides enterprise intelligence solutions and services for commercial and government customers, including systems integration, intelligent infrastructure, advanced visualization and display, enterprise digital content management, and IT services solutions. Harris products, systems, and services improve health outcomes by assuring that critical medical information is delivered with security and privacy to the right person, on the right device, at the point of care.

About Harris Corporation

Harris is an international communications and information technology company serving government and commercial markets in more than 150 countries. Headquartered in Melbourne, Florida, the company has annual revenue of $5.4 billion and 16,000 employees — including nearly 7,000 engineers and scientists. Harris is dedicated to developing best-in-class assured communications(R) products, systems, and services. Additional information about Harris Corporation is available at www.harris.com.

There is a reasonable explanation for this surprising fact, and it lies in the Trust Fund’s obligation to purchase US government paper. This has both advantages and disadvantages. On one hand, it props up the U.S. government, allowing it to spend the money elsewhere while getting itself deeper into debt. On the other hand, the Trust Fund is taking quite substantial risks with no diversification nor any visible recovery option in the immediate future, other than the “full faith and credit of the U.S. government”, which is based on the rapidly eroding belief that the U.S. government can print new money and raise taxes endlessly without losing its credibility.

It’s interesting to note that the Social Security Trust Fund is very open about its financial operations, publishing a complete log of its investment holdings and investment transactions on its website, organized in very accessible databases. A good dip into the depths of that information may certainly lift a few eyebrows. Several peculiarities caught the attention of Bruce Krasting, commentator at the Seeking Alpha blog, who reported on his findings here.

The Congressional Budget Office estimates a Social Security surplus of $16 billion this year and of $3 billion in 2010. Overall, the recession is estimated to shave more than $150 billion from Social Security surpluses over the next three years.

Darren Gersh received some positive information from Barbara Kennelly, president of the National Committee to Preserve Social Security and Medicare. Barbara Kennelly considers there’s nothing to worry about as Social Security has a $2.5 trillion trust fund. Heritage scholars David John and Brian Riedl consider this information to be illusory.

David John and Brian Riedl acknowledged the existence of a Social Security Trust Fund that exists since 1930. The trust fund was created to store money and later pay it to baby boomer retirees. But the scholars pointed that since 1939 Social Security is required by federal law to invest any extra funds in Treasury bonds. This means that the Treasury already spent the money and repaying Social Security will be impossible. And so, the taxpayers will be the ones to fund Social Security with enough cash to cover more than 40 million baby boomer retirees.

As the scholars pointed, the situation is similar to that of a family that constantly takes from its retirement fund and pays for expensive vacations. When the family members begin to retire, they will find only paper IOUs instead of retirement funds.

Vice President Joe Biden and Michael J. Astrue, Commissioner of Social Security, announced today that the federal government will send out $250 economic recovery payments to people who receive Social Security and Supplemental Security Income (SSI) benefits beginning in early May 2009 and continuing throughout the month. No action is required to get the payment, which will be sent separately from the person’s regular monthly payment.

“The Social Security Administration and Commissioner Astrue have been working closely with other federal agencies to get these payments out the door in record time and into the hands of folks who need it most,” said Vice President Biden. “These are checks that will make a big difference in the lives of older Americans and people with disabilities – many of whom have been hit especially hard by the economic crisis that has swept across the country.”

“We have been working diligently to issue the $250 one-time recovery payments as soon as possible,” Commissioner Astrue said. “The legislation requires extensive coordination with other federal agencies and I’m pleased we are on track to issue these recovery payments earlier than the statute requires. Soon more than $13 billion will be in the hands of more than 50 million Americans.”

The American Recovery and Reinvestment Act of 2009 provides for a one-time payment of $250 to adult Social Security beneficiaries, and to SSI recipients, except those receiving Medicaid in care facilities. To receive the payment the individual must be eligible for Social Security or SSI during the months of November 2008, December 2008 or January 2009.

The legislation also provides for a one-time payment to Veterans Affairs (VA) and Railroad Retirement Board (RRB) beneficiaries. The VA and RRB will be responsible for paying individuals under their respective programs. However, if someone receives Social Security and SSI, VA or RRB benefits, he or she will receive only one $250 payment. People getting Social Security or SSI should not contact the agency unless a payment is not received by June 4, 2009.

For more detailed information about the $250 one-time economic recovery payments, go to www.socialsecurity.gov/payment.

To learn more about the American Recovery and Reinvestment Act of 2009, go to www.recovery.gov.

Narrator: A day different from all other days dawned on the farms and ranches of the United States late in 1954, when Social Security was extended to cover farm operators for the first time, and to cover many more hired farm workers than before. This was an important day for more than five and a half million people who raise the food and fiber to feed and clothe the nation, who bring forth a living for themselves and their families from farm and ranch, from garden and orchard and field, for people like Jim Peterson. Jim’s been farming for 30 nyears, going it alone most of the time. He’s getting older now, and he’s beginning to admit it even to himself.

Jim was required to pay the Social Security self-employment tax along with his income tax beginning with 1955. What does this mean today for Jim Peterson?

What about Charlie Rogers, a farm worker who follows the harvest from state to state? Just as he’s starting a new job, he finds he’s lost his Social Security card. Why is this so important to him?

And how about Frank Johnson? He owns a large farm, employs a good many workers, some are short term people from nearby. But this year, he’s going to need to hire some migrant workers. Frank knows pretty well what to do about his own Social Security, but how can he be sure he’ll have the records he needs for his hired workers, who also are now covered by Social Security?

And what can Mary Clark look forward to? Her husband was killed in a farm accident a few weeks ago. She knows that she and the children can depend on her parents if she needs help. Her mother comes over to take care of the children when Mary goes to town. Mary is determined that neither she nor the children shall be a burden on anyone. What does Social Security mean for her?

We go, as anyone with questions like these should go, to the Social Security District Office for answers.

There is a Social Security District Office in most cities and larger towns. In each of these offices, there is a staff ready to answer questions about Social Security. Men and women ready to help with these problems that affect all of us at some time. Representatives from these offices like Bill Williams here, travel to smaller towns on a regular schedule, to serve people who live out in the country or who cannot come to the District Office. But before we follow Bill, let’s see what goes on here in the office. There is Jim Peterson.

Jim Peterson: Now I won’t be 65 until the next October, and telling my son that I’ll turn the farm over to him when he gets out of the army.

Staff 1: You have major reports and pages of employment tax?

Jim Peterson: Oh yes I’ve done that but we farm operators haven’t been on this very long. I was wondering if I have enough.

Staff 1: Well at your age you only need about a year and a half. I just wanted to make sure that you’d earned over four hundred dollars and filed the necessary reports with your income tax.

Jim Peterson: Four hundred dollars a year and I’ve been paying the income tax, I mean the Social Security tax. What is that? 3 percent?

Staff 1: Yes, 3 percent on the first $4,200 of your net earnings.

Jim Peterson: I see. And my benefit payments will be figured from that tax?

Staff 1: Not exactly on the tax but on the average monthly earnings which you have reported. For example, if you’ve average $200 a month, you’ll get $78.50. When your wife is 65, so two of you together will receive a $117.80. That is, the more you make, the more you get.

Narrator: And Charlie Rogers, how is he doing?

Charlie Rogers: Sometimes they ask about it, sometimes they don’t.

Staff 2: The reason for that is, if you’re doing farm work and your employer thinks he won’t pay you as much as $100 cash wages in a year, he doesn’t need your Social Security card. When he finds that you will make $100 though, he needs to get your number right away and you will get Social Security credit for your pay.

Charlie Rogers: How about the work I did on the old card? I got it a long time ago when I worked in a water plant.

Staff 2: You won’t lose credit for that work. With this information, we’ll get you another card with the same number that was on the old one. That number is the key to your Social Security record. No matter where you work, if your employer reports your earnings to us with your name and account number, those earnings go into your record.

Charlie Rogers: Guess I’ll get to be quite a record. I’ve worked over most of the country: vegetables, potatoes, fruit. Never stayed long in one place, never laid by much for myself. But I guess over the years this mounts up. What is it? 2 percent?

Staff 2: Yes, until 1960, then it goes to 2.5%. It goes up gradually until it finally gets to 4% each for you and for your employer in 1975.

Charlie Rogers: Guess I’ll look out for that card from now on.

Staff 2: You’ll get it in a few days. Remember to show it to your employer.

Charlie Rogers: I’ll remember. Thank you.

Staff 2: You’re welcome Mr. Rogers. Bye.

Narrator: Frank Johnson is losing no time.

Frank Johnson: I didn’t have any trouble when I employed regular workers, but now I’m using part time help.

Staff 3: I can see your problem Mr. Johnson, I think we can help you with it. Will each of these men be paid one hundred dollars? If you know ahead of time that the man won’t make as much as one hundred dollars this year then you don’t need to see his Social Security card.

Frank Johnson: But for those who will?

Staff 3: You should ask the man to show you his card and then copy the number directly as it appears on that card.

Frank Johnson: Well, some have their card, others have lost them.

Staff 3: We can help you to obtain those. If you will have your man fill out these cards indicating your name as the employer and stamping or writing “notify employer” here, we can send you the numbers.

Frank Johnson: Alright. By the way, this year I’m renting out 2 farms that I own. Do I have to pay Social Security on my tenants?

Staff 3: No. Renters are considered to be self-employed and they make out their own Social Security reports.

Narrator: And Mary Clark, how is she making out?

Staff 4: What can I do for you?

Mary Clark: I’d like to find out about Social Security benefits. My husband was killed on an accident on our farm last month.

Staff 4: How long had he been farming?

Mary Clark: Well, ever since he got out of the army, he done wonders with it but we’ve been putting everything back in that farm.

Staff 4: The self-employed farmers became covered in 1955.

Mary Clark: Oh, 1955?

Staff 4: And his military service we can give him credit for. When did he go in?

Mary Clark: Well, he went in in 1950.

Narrator: And now Bill Williams reaches a little town 40 miles away from the office. He comes here each week to bring Social Security nearer to people who would find it hard to get to the District Office. In this town he uses the Post Office. In other communities, he may use the court house or any public building where space is available. The Post Master, or the County Agent will know when he’ll be in town and where he’ll have a temporary office.

Bill Williams: I’ll be with you folks in just a moment.

Narrator: And the location and time will also be announced in local newspapers and on posters in the Post Office.

Bill Williams: Mr. and Mrs. Allan? Would you come over here, please? Now, your nephew Harold told his Social Security office of the death of your son. That office got in touch with my office and we wrote you asking you to come in here today and see me. Your nephew tells us that your son was your main support. Is that correct?

Mr. Allan: Right.

Bill Williams: Was he married?

Mr. Allan: No.

Bill Williams: Well then in that case, you will be eligible for monthly benefits from his Social Security account. Now first of all, there…

Narrator: This goes on every day for Bill. Every day, he answers the questions of people who want to know if they’re covered, who want Social Security cards, who want Social Security payments or [...] somewhat Social Security [...] of those who come to ask the questions. Bill Williams, like thousands of other Social Security representatives, knows how practical and how concrete the results will be in the lives of farm people, people such as those we have just seen.

The Petersons. They’ll let their son take over the farm soon. Jim will be getting Social Security payment of about $00 each month. And as soon as Mrs. Peterson is 65, there’ll be a $50 check each month for her too. Jim can worry less now and take things a little easier. Oh, he won’t exactly retire, probably never will. He can earn as much as $1,200 a year and still receive Social Security payments.

Charlie Rogers. He’s back on the job with his duplicate Social Security card. Now his employer has the information he needs to keep Charlie’s Social Security account straight. This time, Charlie will really hang on to that little card. He knows how important it is for his future.

Frank Johnson. He’s found out that it isn’t as complicated as he thought. Frank is a key man in his worker’s Social Security. He takes the 2% tax out of the pay of each worker who will get $100 or more in cash in the year. And at the end of the year, he makes out the tax report that shows the worker’s name, the amount of his wages, and that important Social Security number.

Mary Clark. The future looks considerably brighter for her now. She and the children will get Social Security payments of about $150 each month ’till the children reach 18. Payments made possible by her husband’s farm work and his military service. With that, and their insurance, she and her children will make out all right now.

And the Allans. A few weeks later, the postman brings in their first Social Security checks. Not a fortune, but enough to take care of their simple needs, enough to assure their independence.

And so Social Security comes into the lives of farm people. More and more people will be getting payments as time goes by. Monthly old age insurance benefits for those who are up in years, and for their dependents, and monthly survivors’ insurance benefits for the families of those who died.

In the years ahead, this law will mean as much for the security of farm families, as it already means for people in most other occupations. Something to count on when the last day’s work is done. Something earned through work on the farm, in the factory, in the office, almost anywhere. Greater security for the working people of the nation. Their families, and their homes.

Virginia Foxx: “This is Congresswoman Virginia Foxx. You know, part of my job as a member of Congress is to do everything I can to see that unscrupulous people do not take advantage of the citizens of the 5th district. And I work very hard at that along with working on legislation in Washington.

I recently received a letter which really distresses me. It’s a letter from a group called, “Council of Seniors”. It has in it a $1 check, and they ask you to send that check back to them along with $19, so they can help save your Social Security. It’s a long letter with lots of space on it. Blue things written in like they are handwritten like it’s a personal letter.

What they’re telling you is not true. They’re saying that Social Security money is going to Mexico, and that we are giving money to the Mexican government, and particularly to President Felipe Calderon. That is simply not true. No Social Security money is going to Mexico or to any other country.

These groups raise money for themselves. They don’t have the impact on us in Congress that you, an individual constituent, have. All you need to do, if you are concerned about any issue, be it Social Security, notch babies, stimulus packages, whatever is before the Federal government, is to write your representative. Call my office or write me a letter, letters are preferable. Or send me an email and say, “This is how I feel about this issue”, and I will listen to you. I am always happy to hear from you and always happy to know your feelings on different issues.

One of my main jobs is to protect Social Security benefits and other benefits that are due to you, and I want you to know that this is an unscrupulous group, and to implore you not to send money to them. If you get a letter from a group like this that asks you to send them money, don’t do it. And I am going to do my best to make sure that you are not taken advantage of by unscrupulous groups like this one.

Thank you very much.”

Unfortunately, fraud became an immediate problem for the system, as many would claim benefits on those who had already passed months ago. To help combat this problem, the Social Security Administration created the Death Master File and the Social Security Death Index (SS Death Index) in 1962. These information databases essentially hold records of every American death from its inception, to ensure only those deserving would receive benefits from the Social Security program.

Due to the Freedom of Information Act, both of these tools are required to be made available to the general public. The only real difference between the two databases is that the Social Security Death Index is provided for free to the public and updated less frequently, while the Death Master file is updated regularly and sold at a regulated price. As such, the Social Security Death Index is the mechanism more frequently used by everyday Americans.

An unforeseen benefit to the creation of these databases was the practical use both serve to genealogy. Tracing family history is something many Americans are interested in as they grow older, and the wide access to death records through the Social Security Death Index and Death Master File is valuable. The information provided by these indices, most commonly birth date, full name, place of last residence, etc., may seem basic, but to genealogists they serve as clues to unraveling the mystery of lineage. It should come as no surprise that many popular websites offering this service link to the Social Security Death Index directly.

Of course, the Social Security Death Index can also be used to cause harm. Occasionally, Americans who are still alive are, for one reason or another, thought to have passed away and marked as such in the Death Index. Unfortunately, once a person is entered into the index, it is extremely difficult to reverse the effects. Not only will the still-alive person cease to receive Social Security checks they still need, they also are susceptible to fraud, as much of their private information, such as their Social Security number, is now listed on the public record.

For the most part, however, the Social Security Death Index has served as a brilliant tool to both supplement the Social Security Program and to assist in the search for familial history. The small flaws in the program are greatly overshadowed by the widespread benefits provided annually.

The first program is the Making Work Pay Tax Credit, which will decrease the amount of taxes withheld from each paycheck over the next several months. This will be claimed on the ‘09 tax returns, so that it will not reflect on the end of year refund. Instead, you can expect between $400 (for a single worker), or $800 (for married couples) more, broken up into about a $30 – $60 increase on each paycheck until the amount is covered.

While it may not seem like much, it is a significant enough raise in income that should allow a number of small boosts to the economy each month, and will help households to have a little bit left over after bills are paid.

The second program is for anyone who is earning Social Security, or getting any kind of railroad or government retirement payments every month. Instead of a small amount more on every check, there will be a one time payout of $250, to be issued in a separate check, as part of the Economic Recovery Payment.

There will also be a majority of people laid off this year who will be eligible for a tax credit when they file in 2009. This can be determined by visiting the IRS website, or by calling your local IRS office.

Worried about this causing tax filing to become more complicated? Anyone earning less then $42,000 a year will also qualify for free tax help, through a number of tax assistance programs within your state.

Recorded at the University of West Virginia, September 24, 2008.

Student: Earlier you said you want our generation to have a chance to vote on things like Social Security, and I was wondering what you think is wrong with Social Security now and what you plan in doing to change it.

Ralph Nader: Medicare is going out of sight, because it’s required to pay for the enormous, the inflationary costs of hospital and doctor care. It’s been going on for years. That is a problem, but is not Medicare’s problem, Medicare doesn’t write the bills, Medicare pays the bills. It’s the system of waste redundant profiteering – this is a problem. Social Security doesn’t have a problem. Why did they say it has a problem, because they want to put your Social Security money in the stock market and make a lot of money for the brokers.

There is no problem with Social Security. Social Security trustees – these are the trustees of the Social Security system – say that if we do nothing, every dollar is paid out till 2043 and then it starts declining, a bit. I say: “we do nothing”. And that’s based on a 1.7% GDP annual increase. We’ve been over 3% since World War II. If we need more money, we just raise the income level that you have to pay Social Security on. Now, the first $97,000 people earn, they pay Social Security taxes. But, someone who earns a million bucks doesn’t have to pay beyond $97,000. That’s a little wiggle room there, but as long as economic growth continues, Social Security is on a firm footing.

My problem with the Social Security surplus is that Clinton, Bush, and Reagan – all these people used it to pay for daily government expenses. Which means they exchanged the surplus for a Treasury IOU. Now, the Treasury is gone be good for it, because if it isn’t – it’s all over, right? But, they took the surplus and used it for government operating expeditures, which they should never have done, and replaced it with debt, an IOU. That’s where they betrayed. Because it isn’t that they won’t get those IOUs fulfilled, it’s they may have to start printing money. That’s not Social Security’s problem. That’s these political charlatans’ who wanted to keep the deficit a little less every year by pouring the Social Security surplus into government expenditures.

Do I make this clear, what I am saying? How many of you wear seatbelts? When I was your age, I lost a lot of friends in high school and college, in law school, who were killed, because there were no seatbelts. And I got really angry. And I started studying it up and I wrote a third year paper at law school on unsafe automotive design and the law. And because I did that, I turned it into a book that you saw, Unsafe at Any Speed, and I went down to Washington, as a volunteer, and got the motor vehicle and highway safety laws through. I got key reporters reporting, I got hearings, testifying, went up to the House, Senate, got some engineers involved. And now, you all have seatbelts, you have airbags, you have padded dash panels. You don’t split your skull on a 15 mile an hour collision against the cookie cutters of the old cars. You’ve got stronger door latches – someone rams you in the side of the car; it’s much better than it was 40 years ago. You’ve got head restraints, you not gone be speared as easily by a rearward displacing steering column, because is a collapsing steering column.

That’s what I mean by civic freedom. Civic freedom to go up and improve your country. You can’t do that now. Washington is closed down, it’s corporate occupied territory. The corporations have become our government. With tens of thousands of lobbyists, ten thousand political action committees funneling money and their own executives in the exact agencies that are regulating the companies that these executives came from. Like the Forest Service – is run by ex-timber industry guys. So, I gave you this example, because I don’t want you to think that I am some sort of freak of nature. You can do this too. You just want to do it. You got to want do it. When you want to do it, you tell us, expand and you achieve things you never thought you’d achieve – the American Dream. You know what the real American Dream is? Justice, that’s the real American Dream. Thank you very much.

What is social security?

And why is it so confusing?

Here’s the simple version:

Social security is what supports you when you can’t support yourself.

When you get hurt

when you get sick

when you get old

you have the right to be supported.

It can be money… or medicine… or whatever you need…

to get back on your own two feet.

Because sometimes

we all need a little help.

Human Right #22: Social Security

As a precautionary measure Social Security advises all those with Social Security accounts to be careful when giving out confidential data. An even better way of preventing being conned is to never impart your private information and facts either over the telephone or through the internet. However, if you were the one who initiated the call to a verified phone number, and your personal numbers are asked for verification, then it’s okay to do so.

The SSA’s Office of Inspector General is looking into the accounts of these commotions. You can call their hotline at 1-800-269-0271 to convey doubtful transactions. (If you are deaf or hard of hearing, call the OIG TTY number at 1-866-501-2101.)

Online complaints may be reported by filling out a form at http://www.socialsecurity.gov/oig/

If you suspect a fraudulent SSA agent, make sure to report it to Social Security’s toll-free number at 1-800-772-1213 to be able to confirm the legitimacy of the caller. (If you are deaf or hard of hearing, you may call Social Security’s TTY number at 1-800-325-0778.)

BARBARA B. KENNELLY: Good morning. Thank you all for coming out here this morning as we invited you to, and I want to take a few minutes to outline why we have asked you to come here this morning before I introduce our valued guests. I want to tell you a little about this organization. I’m Barbara Kennelly; I’m president of National Committee to Preserve Social Security and Medicare. We have 3 million members and supporters across these United States. Our members have various political backgrounds, but they have one passion and that is to preserve Social Security and Medicare, and not just for themselves but for their children and for their grandchildren.

I have to tell you that Social Security and Medicare have always generated controversy. They were under attack before the enacting legislation even passed in the House and the Senate. And you know, the opponents of Social Security they’ve changed their tactics, they’ve changed their retric, but they have never changed their convictions. They think that Social Security and Medicare are unwarranted expansions of government and they should not survive in their current form.

And I have to tell you this morning, the national committee and the people who are on this panel, and I think some of the people in this room, absolutely believe we must preserve Social Security. Before the Great Depression, people worked; they hoped they could save a little money, but when they stopped working the lucky ones they could go live with the younger members of their family. The ones that weren’t so lucky, they often lived in poverty. And what we hear about today, after the Great Depression, all those savings that people who even had savings they didn’t have it anymore, and this cannot happen today because we have Social Security.

But what we want to emphasize this morning is how moderate Social Security benefits are. The average benefit for Social Security is $13,000 a year; now that’s not a lot of money but it’s absolutely crucial to those that are collecting it. I constantly talk about the figure that 2/3 of those who have Social Security is half their income; one out of five people on Social Security, that’s all the income they have. We also don’t remember that Social Security is the largest disability program that we have in the United States and the largest children’s health program, and Medicare meets a similar need, and Medicare provides healthcare for seniors.

Now I was in Congress for 17 years, I represented Harvard Connecticut, the insurance capital of the world. And let me tell you something, those insurance companies they have to make a profit, they have to respond to their shareholders, and you, know they didn’t want people over 65, insure them because people over 65 have claims, there’s no doubt about it. But once Medicare was passed in 1965, all the people over 65 were put in a pool, the risk was shared, and that demographic that had the least healthcare then had the most healthcare.

And the last time I want to talk about now is the last time, some of it took place in this room. The last time Social Security was overhauled and that was in 1983. And let me tell you something, we had a real crisis then. We didn’t have the crisis where the people are talking about now, 3 decades out; we had a crisis then that we didn’t know if the checks could go out in 3 months. And at that time Ronald Reagan was president, and he put aside his political differences and represented by his Treasury Secretary Jim Baker and Speaker O’Neill was Speaker and he put his political differences aside and he was represented by Bob Ball, who’s the godfather of Social Security. And eventually with the Greenspan commission, a deal was put together to put Social Security back into fiscal balance, and guess what we did? We looked forward to the retirement. We knew those baby boomers existed; this idea that they just came when they’re retiring. When they were born we built schools for them, when they got married we built housing for them, and the 1983 overhaul took care of their retirement for many, many years. There’s no doubt about it, we have to be very clear about it.

We’ve had a financial meltdown and we’ve had situations. Retirement funds in the last 15 months have gone down 2 trillion dollars; 20% of their value. Now yes, we have an economic fall down, we have massive borrowing and we have to get our economy back on a positive path, and certainly, you know, your bosses have to take that tough vote on the stimulus. But this massive borrowing and the stimulus bailout and the TARP doesn’t mean that we can’t afford Social Security and Medicare. In fact, these people who are trying to sell this this way, or pointing at the structural deficit, say that you know it’s unsustainable to have entitlement programs, and we have to cut future benefits for Social Security beneficiaries, and we have to cut deftly the next generation of benefits.

And I’m telling you that I am here to persuade you that this is something that is not true. And don’t misunderstand me; I understand that this long term deficit is real, but it’s not caused by Social Security. Yes, there’s symptoms there, there’s problems there, but they extend far, far beyond the Federal government. And now we’re talking about an entitlement crisis, and you know if you really want to get, and I know some of you are so bright and so hard-working you understand, we don’t have an entitlement crisis; we have a healthcare crisis. The growth of healthcare cost in the public and private sector have outpaced growth of income in the United States for decades. The CBO tell us the entitlement, Social Security, Medicare, food stamps, every one of these programs, if they were repealed outright, it would not slow down the gross domestic product growth of 70% by 2082 if we do nothing about healthcare.

What are the figures of Social Security? Who are .3% of the gross domestic product who’s paid Social Security? Over time it will raise about 2%; you know that’s an awful modest growth when you’re talking about the elderly in this country will grow in the amount that they will grow in the next coming years, and also, why am I standing here and telling you this is not a problem? I’m telling you that because today, this very day, 166 million people are paying into Social Security, and 52 million people are getting benefits; it’s a pay-as-you-go program.

Unfortunately, the Neo-Conservatives have singled out for attention Social Security. You now, they say they’re concerned about the Federal budget, there’s a fiscal anomaly that’s coming. And they have swept up Social Security, Medicare and Medicaid all into the same bundle, and I have to tell you these are very different programs with very different solutions. An entitlement has become a perjorative term; you think of entitlement, you think of Wall Street fat cats who are getting these incredible incomes, you think of a program that’s on automatic pilot, you think of a program that’s draining today’s government. And you know, Social Security is anything but out of control. It’s the most fiscally conservative part of the Federal budget; it runs a surplus, it looks out, trustees look out 75 years, no other program is looked out that way and it’s important on every year. And let me tell you something, nothing has changed since we’ve had this economic downturn.

There are so many misconceptions about Social Security. You know I hear people tell me, “Well if you free up some funds from the benefits of the future for Social Security, we can do a healthcare reform.” Well that totally ignores the statutory structure of Social Security. Social Security revenues, by law, are dedicated benefits for administrative costs and benefits. Yes, Social Security can lend money to the Federal government by buying Treasury Bonds, but that – if it runs a surplus – but those funds still belong under the law to Social Security.

I know everyone of you have heard about how the trust funds’ worthless pieces of paper worth nothing. You know what; those bonds backing Social Security are no different than the bonds that represent the rest of our Federal debt. Behind them is a full faith and credit of the United States of America. It’s the safest investment. Even in these days when the people are trying to get out of the market, where do they put their money? They put it in government bonds even if they don’t get any interest.

I have to end by saying that America is still the greatest economic power, and Social Security remains a great program. And you know, even as we talk about it, it’s a much smaller part of our gross domestic product than any other advanced nation. The bottom line that I’m trying to talk about today here, that our speakers will talk about, is that we certainly can and must afford Social Security in the future. We should be focused on strengthening, not on cutting them, and let me tell you, don’t be fooled. Don’t let Social Security be a pawn in the next great budget deal, and don’t let it be a trading chip with competing legislation; that’s not the place for Social Security.

Every industrialized country has social insurance; a system that spreads risk and protects people, especially the future generations, and we can’t afford to build anything less.

For more information about Social Security and Medicare visit The National Committee to Preserve Social Security and Medicare at ncpssm.org

It was Obama’s relatively small focus on Social Security that has left Mr. Buchanan so worried, as it showed a number of specific details on the new President that are both good and bad. For instance, he feels that our Commander In Chief is a little too willing to water down his policies in order to keep a peace that is frankly non-existent in the current partisan political climate.

Neil Buchanan also feels that focus should not be centered on Social Security in the first place, and that reassurances that might compromise the effectiveness of the costly Stimulus may waste time and funds. After all, he is quick to point out, Social Security only makes up less then 15% of the overall economic health, and it may or may not be negatively effected as we work to reinstate America’s fiscal health.

In his opinion, cuts that may be needed in SS in the future could be ‘phased in’ over time, and held off until deemed necessary, making it a pointless part of the rescue plan, and one that could cost Americans.

Neil H. Buchanan joined GW Law in 2007, and has been a valuable member of the faculty ever since. He has a long career as an economics professor behind him, making him more then qualified to comment on the current crisis and the plan to pull the country out of it. He is a Harvard graduate, and currently lived in Washington D.C.

The pamphlets that are being handed out to people between the ages of 25 and 35 works to dispel some of the rumors about Social Security, and better inform workers about that benefits of saving. Some of the information speaks about the chances of SS being around for their retirement, as it has been projected that funds will run out by 2041.

It also explains the importance of adding small investments over time, as even $25 a week, with compounded interest of 5%, will come out to almost $165,000 within forty years, which would put many of the young workforce at retirement age. This would be in addition to benefits that the SSA assures us will still actually be there.

According to the Social Security Board of Trustees, in 2041, taxes will still allow for “$780 for every $1,000 in benefits scheduled”, which will be enough to supplement an already well established retirement fund. But this is fully the responsibility of the worker, and so the issue is an important one.

Young workers can start expecting to see the inserts within the coming months, which are similar to those given to workers over the age of 55, explaining all possible benefits, the way compound interest increases investments, and how to make the most out of your retirement funds. It also discusses the way that Social Security payouts work, and the chances of applying for, and receiving, disability in the case of early retirement.

“This additional income, though minimal, can help offset the rising costs for people with disabilities,” said Paul Gada, personal financial planning director at Allsup. “Recipients may want to consider using it toward healthcare costs, especially if they are still in the 24-month waiting period to become eligible for Medicare benefits.”

This additional income, though minimal, can help offset the rising costs for people with disabilities. Recipients may want to consider using it toward healthcare costs, especially if they are still in the 24-month waiting period to become eligible for Medicare benefits.

That means you’ll have an additional $500 in income available, which could be an important cushion. For example, this amount could be put toward an emergency fund.

The good news is even better for couples who receive Social Security benefits—because each recipient will receive a one-time $250 payment. “That means you’ll have an additional $500 in income available, which could be an important cushion,” said Mr. Gada. “For example, this amount could be put toward an emergency fund.”

SSDI is a federally mandated insurance program overseen by the Social Security Administration (SSA) that operates separately from the retirement and SSI programs. SSDI provides monthly benefits to individuals who are under full retirement age (age 65 or older) and who can no longer work because of a disability (injury, illness or condition) that is expected to last for at least 12 months or is terminal. Individuals must have paid FICA taxes to be eligible. More details are provided in the “SSDI Overview” on Allsup.com.

More Details On The $250 Bonus Payments

To help clarify details about the $250 bonuses to SSDI recipients, Allsup has outlined answers to common questions about the one-time payment.

Who is eligible for the $250?

Anyone who was receiving SSDI benefits anytime during the three-month time period of Nov. 1, 2008, through Jan. 31, 2009 will receive a bonus check. In addition, beneficiaries in the Social Security retirement, SSI, railroad retirement and veterans benefits programs are eligible.

What if I got my SSDI in February 2009?

Unfortunately, you will not receive the one-time $250 payment because your entitlement date was after Jan. 31, 2009.

When does the payment go out?

The Social Security Administration expects everyone who is entitled to receive their payment by late May 2009.

If I’m eligible, how do I get the payment?

You do not need to do anything. There is no paperwork required. You will receive the additional payment automatically using the same method that you receive your regular benefits (i.e. direct deposit, mailed check).

Will I get more than one $250 payment?

Recipients are only entitled to one $250 bonus. It does not matter if you are on both SSDI, SSI or other benefit programs.

My children get dependent benefits, so will they also get a $250 bonus?

No, children under age 18 (19 if still in high school) who receive Social Security benefits will not receive a bonus. However, disabled adult children will receive a payment.

If my spouse and I are both on Social Security, do we only get one $250 payment?

No, each adult receiving Social Security benefits will receive a $250 payment. This means both you and your spouse will receive payments.

Will this payment affect my taxes?

No, the one-time $250 payment will not be counted toward gross income for your federal income tax.

What if I don’t get the payment?

If you don’t receive a payment by June 4, 2009, the SSA recommends contacting your local Social Security office or calling (800) 772-1213 to report that your payment did not arrive.

ABOUT ALLSUP
Allsup, Belleville, Ill., is a leading nationwide provider of financial and healthcare related services to people with disabilities. Celebrating its 25th anniversary in 2009, Allsup has helped more than 110,000 people receive their entitled Social Security Disability Insurance and Medicare benefits. Allsup employs more than 550 professionals who deliver services directly to consumers and their families, or through their employers and long-term disability insurance carriers. For more information, visit www.Allsup.com.

Republican Senate Minority Leader Mitch McConnell while interacting with the media lashed out at Obama and his chief of staff Rahm Emanuel for back-tracking on their earlier commitment towards Social Security reforms. This purported back-tracking of Obama pointed towards a successful lobbying by Liberals who were apprehensive of Obama weakening Social Security.

Sen. Graham (R-S.C.) too did not fail to notice the pressure from the Left. He likewise advised the administration to take bold steps when it came to realistic age adjustments and benefit recalculation for high income Americans. Graham, who incidentally was also in Obama’s Social Security breakout session on Monday wished for the same kind of support for Social Security that Obama accorded to health care because it was one reform which he felt to be really achievable.

Sen. Sessions (R-Ala.), who lamented Obama for espousing health care and maintaining a studied silence on Social Security, joked that such a situation had probably arisen due to the fact that in the past, when President Bush had tried to do a similar thing, he too was stonewalled by the Democrats.

Though he found the speech to be brilliant, Sen. Ensign (R-Nev.) too wished for more talk being made about entitlement reforms.

My friend used to live here with hubby and I and he’s retired and he gets Social Security benefits. He had a letter in the mail that said, “Dear Mr. So and So, we regret to inform that we can no longer continue to send you your Social Security benefits because we do not have a correct address for you.”

And at that point I kind of wondered how the letter got to him since the letter had his address on it and got to him. Yeah, the Social Security Administration wrote him a letter addressed to him at his address which said they didn’t have an address for him.

Watch the video here.

This young gentleman disagrees:

What are your thoughts? Post them in the comments.

Boston College Center’s director for external relations Andrew Eschruth believes that a lot of retirees may not be able to continue with the lifestyle that they’re used to because according to the guideline that they’re using, for someone to be able to live at ease after retiring, they would need at least 65 to 85% of their pre-retirement income.

Back when George W. Bush was still President, he recommended the idea that a share of the Social Security be placed in a private investment of some sort. However, it became a big issue that came under so much scrutiny that his administration decided to let this suggestion go. Now that a new President has taken over, it’s up to him to come up with a solution on how to organize this “mess” concerning Social Security.

In view of the fact that this may happen, the Boston College Center proposes future retirees to consider other option to bridge the gap of their income need once they’ve stopped working. They suggest something that is fixed and binding and would ensure them a good life by receiving the proper amount they need to maintain their standard of living. One such resolution that they’ve been contemplating on is an “exploratory idea” where the obligatory involvement of an employer to pay their workers is required.

It seems that retiring nowadays is a hard thing to do especially since one might face more financial problems due to inadequate resources. It’s good to know that some people have the initiative to try and deliberate upon an answer that will greatly affect a lot of people in the coming years.

When will you get your stimulus check?

The stimulus bill instructs the Treasury to send the check “as soon as possible”. In other words, the check is probably in the mail, and if not, it will be soon. Let us know in the comments section as soon as you received anything.

P.S. What if you’re are a retired government employee and don’t receive Social Security benefits (e.g. if you live in Massachusetts)? You will still get the $250 check. Thank Sen. John F. Kerry and Rep. Richard Neal for it as they promoted this provision.

Back in 1980 the smart people over in the United States Social Security Administration decided to make good use of their resources by coming up with the Death Master File, more commonly known as the Social Security Death Index (SSDI). It is a computer database file containing records of the deaths of all Social Security Number (SSN) owners from 1962 until the present.

Since this is considered a public document, getting a hold on information regarding people who may be your ancestors has become a breeze. Having approximately 82 million death records, the information you are looking for is bound to be there.

Some of the data that you will find in the SSDI are the full name, date of death and birth, SSN, and the last ZIP code of the person when he/she was still alive. These data can definitely bring anyone a long way towards getting to know their relatives.

In fact, a number of people have already realized the potential that the SSDI holds for helping individuals learn more about their heritage. With the proliferation of the internet and computers it various websites – often referred to as genealogy websites – have put the SSDI to good use. The Ancestry, RootsWeb and MyHeritage websites, among others, are only a few of such resources.

But how does the SSDI become so useful? Finding a person on the database makes it possible for you to gain access to the Form SS-5. This was the deceased person’s Social Security card application. This form contains additional genealogical data that will surely give you more insight regarding that person. For example, the Form SS-5 will tell you where the dead person’s birthplace was, and who his/her parents were.

Thus finding out who your great grandfather is may not be as hard as you think it is. Heck, finding out who his great grandparents were may be easier than looking for a long lost sister with the help of the SSDI and Form SS-5. So what are you waiting for? Go ahead and visit one of those websites and start making good use of their resources.

Social Security Trust Fund Structure

The Social Security Administration is responsible for the management of the fund along with the federal government’s debt obligations related to traditional Social Security benefits. There are two funds with the larger being the Old-Age and Survivors Insurance Trust Fund. This fund keeps in trust the money that the federal government needs to pay future benefits for retirees and survivors of retirees.

The other fund is smaller and it’s for the disabled. Called the Disability Insurance Trust Fund, this money is used by the federal government to pay those people who are judged to be disabled and no longer capable of holding down a job. This fund also covers their dependents and spouses.

Social Security Trust Fund History

Up until the early 1980s, the Social Security system was primarily based upon payments made to the retiring workforce by payments into the system by current working adults. However, in the early 1980s, the projections made by the Social Security Administration found that payroll taxes were not going to be enough to cover benefits paid out opening up the possibility of benefit cuts due to a shortfall in funds.

The federal government requested the services of Alan Greenspan, before he was named Federal Reserve Chairman, to head up a national commission to study Social Security problems and come up with a reform plan to maintain payments in perpetuity. The commission found that in order to increase the fiscal health of the Social Security system, payroll taxes needed to be increased in order for funds to exceed the required funds necessary to take care of near-term payments.

In addition, other recommendations made by the Greenspan Commission caused a reserve trust fund to be created which accumulated excess capital so that funding would continue to exceed expenditures until 2017 or 2025 depending on which economist you consulted. In addition, if the American economy showed growth, it was entirely conceivable that there would be an excess amount in the fund indefinitely.

On the other hand, if there was a downturn in the economy, the trust fund would allow retirees and the disabled to receive continued and consistent payments because the federal government could withdraw funds from the Social Security Trust fund until 2042 according to the Social Security Administration, or 2052 according to the Congressional Budget office when the fund would be completed depleted.

For generations, American workers have relied on a combination of pension funds and Social Security for financial security in their retirement years. In the past decade, both systems have come under scrutiny.

Pensions consist of a combination of employer or employee contributions. Some pensions involve a combination of funds from both the employee and his company. The monies are typically invested in stocks, bonds or mutual funds. The objective is for the portfolio to accumulate investment wealth so that, after a number of years, the fund can serve as income for the worker throughout their retirement.

Types of pensions include a defined benefit plan, 401k plans, profit sharing and money purchase plans. The defined benefit plan guarantees the worker a specific monthly income upon retirement. 401k’s, which have become hugely popular, combine employer and employee contributions in a portfolio that is invested in mutual funds. Profit sharing gives the worker a stake in the ownership of their company and money purchase plans involve strictly company contributions.

Many pensions have shifted from money purchase plans to profit sharing and 401k plans. Many companies have altered their philosophy on pensions and are encouraging a combination of risk from their business and the worker through mutual contributions.

Social Security is taken from every American worker regardless of age, employment or income. The government uses the money to establish, in a sense, trust funds that cover expenses for retirement and various disability or survivor insurance. The government’s promise is that every worker will eventually benefit from the program when they retire or are disabled and prevented from working. Most working Americans begin to receive Social Security payments when they reach age 63.

In addition to money taken out of a worker’s paycheck, the worker’s employer has to make a matching contribution to the Social Security program. Therefore, what the worker sees on their paycheck as their contribution is only half the money.

Much debate in recent years has focused on whether or not Social Security can survive the retirement of the Baby Boomer generation. Americans live longer than ever before and many experts feel the retiring Boomers will drain the system of funds within 20 years. Many in the industry maintain that Social Security will not be available to workers under the age of 40.

Social Security fraud can be committed in several different ways. You can conceal your work history while receiving disability benefits. You can receive disability benefits for children not under your care. You can continue to collect Social Security benefits on someone who has died. Finally, you can conceal your marriage or assets when receiving supplemental Social Security benefits.

Not all Social Security fraud is committed by the people receiving the benefits. Sometimes Social Security employees commit fraud. Many con artists pose as Social Security employees and ask for information such as your Social Security number, mother’s maiden name, and your date of birth. Another common scam is to trick people during the Medicare enrollment period. Someone may call you on the phone asking for your Social Security number to see if they can help you find a better Medicare plan for you. If you were not expecting these calls, do not give out the information.

While Social Security fraud may seem like something that could happen to you, there are several things that you can do to prevent it:

• If you receive a phone call from someone from the Social Security Administration, ask them to send the information via mail.
• If a person who claims to be a representative from an insurance company calls and would like to assist you in changing Medicare plans, simply ask what company they work for. Then, look up the companies phone number and call them back. That way, you can be sure you are talking to a true representative of the company.
• Do not ever tell anyone your Social Security number if you do not have to. If they do not know it, you are much less likely to have Social Security fraud committed against you.
• If you ever receive any phone calls, letters or emails that look suspicious call the Social Security Administration. They will be more than happy to tell you if it is a legitimate communication or if it is someone out there trying to get your personal information from you.

The number is issued to an individual by the Social Security Administration, an agency of the federal government. Its primary purpose is to track individuals for taxation purposes. In recent years the SSN has become a de facto national identification number.

The first SSNs were issued by the Social Security Administration in November 1936 as part of the New Deal Social Security program. By the end of 1937, over 37 million numbers had been issued.

Before 1986, people often did not have a Social Security number until the age of about 14, since they were used for income tracking purposes, and those under that age seldom had substantial income.

In 1986, American taxation law was altered so that individuals over 5 years old without Social Security numbers could not be successfully claimed as dependents on tax returns.

Since then, parents have often applied for Social Security numbers for their children soon after birth.

Contrary to popular belief, there is no law requiring a natural born US Citizen to apply for a Social Security number to live or work in the United States. Although some people do not have an SSN assigned to them, it is becoming ever increasingly difficult to engage in legitimate financial activities without one.

The truth is that members of Congress do have to pay into Social Security just like everyone else. This has been in effect since 1984 when Congress Members began paying into, and receiving Social Security benefits just like everyone else. In January 1984, even the President and Vice president were required to start paying into Social Security like everyone else. This also included Federal judges and other people in politics.

Prior to 1984 most of the Federal government employees and officials participated in the Civil Service Retirement System, or CSRS which was established in 1920, about 15 years before the establishment of the Social Security System. Because of this outdated system between 1920 and 1948 Congress members were not paying into the later established Social Security system.

Now that it has been clarifies that Members of Congress do, in fact, pay into the Social Security system it is very interesting to think about how this knowledge affects their decision on the controversial topic of the Social Security System.

It is true that in 1935 a law was passed to establish Social Security and under this law Social Security was being created as a retirement plan. For the most part what the law did was provide retirement benefits to the primary worker that was retiring. In 1939, this began to change when the law was amended and adjusted to also included survivor benefits, as well as additional benefits for the spouse and children of the retiree that was initially covered under the original Social Security law. In the year l956, Social Security was further expanded, yet again. This time it was to aid and support the disabled. This was done with the addition of Social Security disability benefits. The Social Security act was originally much larger of a topic than just the program that we have today that we all know of as “Social Security.” The initial 1935 law included the first compensation program for unemployment on a national level. This law also added aid to the states for numerous health and well being programs, such as welfare. The act also attempted to help the stated by establishing the Aid to Dependant Children program under it.

It’s amazing to see how far Social Security has come over the history of the United States, but we all have to hope that Social Security continues to expand creating better programs and does not fall dormant.