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SOCIAL SECURITY. DEDUCTED FROM PAYCHECK BY EMPLOYER EMPLOYER MATCHES EMPLOYEE PAYMENT CURRENT RATE OF 6.2% ON INCOME UP TO $117,000 ($7254 ANNUAL MAX.) ELIGIBLE FOR FULL SS BENEFITS AT AGE 66, GRADUALLY INCREASING TO AGE 67
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SOCIAL SECURITY • DEDUCTED FROM PAYCHECK BY EMPLOYER • EMPLOYER MATCHES EMPLOYEE PAYMENT • CURRENT RATE OF 6.2% ON INCOME UP TO $117,000 ($7254 ANNUAL MAX.) • ELIGIBLE FOR FULL SS BENEFITS AT AGE 66, GRADUALLY INCREASING TO AGE 67 • ELIGIBLE FOR EARLY BENEFITS AT AGE 62 (SUBJECT TO ACTUARIAL ADJUSTMENT) • IF TAKE EARLY BENEFIT, EARNINGS LIMITED • BENEFICIARIES RECEIVE ANNUAL COLA • ALSO USED TO PAY DISABILITY BENEFITS • UNLIKE BUSINESSES WHICH MUST MAINTAIN AN ADEQUATELY FUNDED TRUST FUND, SS HAS A LIMITED TRUST FUND THAT WILL COVER SHORTFALLS OF CONTRIBUTIONS ONLY THROUGH THE YEAR 2033 (AT WHICH TIME BENEFITS WOULD HAVE TO BE REDUCTED TO APPROX. 75% OF HISTORICAL LEVELS)
POSSIBLE CURES FOR SOCIAL SECURITY • RAISE SOCIAL SECURITY TAXES • CURRENTLY 6.2% (12.4% WITH EMPLOYER MATCH) • RAISE LIMIT ON WHICH SS TAXES APPLY • CURRENTLY $117,000 • CHANGE CALCULATION OF COLA • ADJUST BY A LOWER PERCENTAGE • INCREASE ELIGIBILITY AGE • DEBT COMMISSION RECOMMENDED GOING TO AGE 70 TO REFLECT INCREASING LIFE EXPECTANCIES • MEANS TESTING • REDUCE PAYMENTS BASED ON AMOUNT OF OTHER INCOME RECEIVED
