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Frederick News Post Newspaper Archives Aug 14 2015, Page 2

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Frederick News Post (Newspaper) - August 14, 2015, Frederick, MarylandBy Stephen Ohlemacher associated press Washington social Security turns 80 today and the massive retirement and disability program is showing its age. Social Security yes disability fund is projected to run dry next year. The retirement fund has enough Money to pay full benefits until 2035. But once the fund is depleted the shortfall is projected to be enormous. The stakes Are huge nearly 60 million retirees disabled workers spouses and children get monthly social Security payments and that number that is projected to grow to 90 million Over the next two decades. And the timing is bad social Security faces these problems As fewer employers Are offering traditional pensions forcing older workers to think hard about How they will afford retirement. This is a program thatus been immensely popular since it began said Nancy Leamond executive vice president of Harp. Increasingly people recognize that saving for retirement is becoming harder and harder and social Security is becoming even More important. President Franklin Delano Roosevelt signed the social Security act on aug. 14, 1935. Here Are things to know about the Federal governments largest program on its 80th birthday Why is social Security at risk social Security yes Lon term financial problems Are largely a result of demographic changes. Every Day about 10,000 people in the u. S. Turn 65. These Are the baby Boomers. Typical Boomers however did not have As Many children As their parents did. As a result relatively fewer workers Are left to pay the payroll taxes that support social Security. In 1960, there were More than five workers for every person receiving social Security. Today there Are fewer than three. In 20 years there will be about two workers for every person getting benefits. Americans Are also living longer. In 1940, someone who was 65 could be expected to live about 14 More years on average. Today they can expect to live an additional 20 years on average. Benefits last year social Security paid benefits of nearly $ 850 billion about a Quarter of All Federal spending. The average monthly payment is $ 1,221. That comes to about $ 14,700 a year. For most retirees social Security accounts for the majority of their income according to the social Security administration. What happens in 2016? the Trust fund that supports social Security yes disability program is projected to run dry in late 2016 right in the Middle of the presidential election. If Congress allows that to happen it will trigger an automatic 19 percent Cut in benefits to the 11 million people who receive social Security disability. Lawmakers could redirect tax Revenue from social Security yes much bigger retirement program As they have done in the past. If the tax Revenue were redirected the retirement fund would lose one year of solvency so both the retirement program and the disability program would have enough Money to pay full benefits until 2034. At that Point social Security would collect enough in taxes to pay 79 percent of benefits. Republicans Are Balking at the fix. They see the funding crisis As an Opportunity to improve a disability program that they believe is plagued by waste and abuse. Social Security retirement funds have been raided far too Many times for far too Many years said rep. Tom Reed r n. Y. Reed sponsored a Rule adopted by House republicans that would prevent the House from redirecting the tax Revenue without making changes to improve the Overall financial health of social Security. Democrats Are much More eager to defend the disability program noting that its modest benefits keep millions of disabled workers and their families out of poverty. The Issue is whether you re going to Cut services and benefits to americans who paid for them by saying that the social Security program does not have the Money when in fact it has nearly $ 3 trillion said rep. Xavier Becerra d Calif. It manufactures a crisis. Becerra has introduced a Bill that would merge social Security yes Trust funds. How big is the Long term problem the numbers Are beyond comprehension. Social Security uses a 75 year window to forecast its finances so the projections cover the life expectancy of every worker paying into the system. Over the next 75 years social Security is projected to pay out $ 159 trillion More in benefits than it will collect in taxes according to Agency data. Thatus not a Typo. Adjusted for inflation the shortfall comes to $ 35.3 trillion in 2015 dollars. Thatus nearly twice the National debt which took the entire Federal government 239 years to accumulate. Did Congress already spend the Trust funds yes. For much of the past three decades social Security produced big surpluses collecting More in taxes than it paid in benefits. Social Security invested those surpluses in special u. S. Treasury Bonds which Are backed by the full Faith and credit of the u. S. Government. They Are now valued at $ 2.8 trillion. But As social Security was generating surpluses the rest of the Federal government was running deficits for All but a few years around the turn of the Century. To finance deficit spending the Treasury borrowed from the Public and from other Federal programs including social Security. Did not Congress fix social Security under Reagan yes. Social Security was on the Brink of insolvency in the Early 1980s when Congress and president Ronald Reagan agreed to gradually increase payroll taxes and to reduce benefits in part by gradually raising the retirement age. Those changes did not permanently fix social Security but they provided enough Revenue to pay full benefits for about 50 years. In to Days political climate another feat like that would be historic. A2 anniversary of social Security the Frederick news Post Friday August 14, 2015 established 1883 published seven Days a week by Randall family Lac 351 Ballenger Center drive Frederick my 21703 Myron w. Randall or. President Randall family Lac William b. Randall vice president chief operating officer Geordie Wilson publisher Patrick Pexton editor Edmond b. Gregory chief financial officer treasurer departments main number 301 662 1177 out of county 800 486 1177 newsroom 301 662 1178 Patrick Pexton editor advertising 301 662 1162 Brent Renken director circulation 301 662 1177 publishing 240 215 8678 Hal Koontz general manager memberships Fez pay monthly $ 15.99 billed monthly with online Access seven Day Home delivery online 13 weeks $ 59.00 26 weeks $ 119.00 52 weeks $ 209.00 prices include subscription delivery fees and tax. More membership choices 301 662 1177 circulation news Post. Com prices subject to terms & conditions to place an and classified 301 662 1162 classified fax 301 620 1590 classifieds news Post. Com display advertising 301 662 1163 display advertising fax 301 698 5206 display news Post. Com online advertising 301 662 1163 announcements and news news tips 301 662 1178 fax 301 662 8299 Cit desk news Post. Com engagements 301 662 1162 weddings 301 662 1162 obituaries 301 662 1162 obituaries news Post. Com letters letters news Post. Com photos photos news Post. Com 301 662 1178 sports sports news Post. Com 301 662 1179 uses 209 000 periodicals postage paid at Frederick my postmaster Send address changes to 351 Ballenger Center drive Frederick my 21703 the Frederick news Post wants to Correct mistakes promptly. If you believe we have made a mistake please Call Patrick Pexton at 240 215 8630, or email him at Plexton news Post. Com. Correction policy saturday religion from the Pew visits Frederick presbyterian. Sunday coverage of the tour de Frederick. Daily poll today we ask yesterday we asked heres How you responded How confident Are you that social Security will be there when you retire very confident somewhat confident not confident at All have you Ever Ridden a Penny Farthing yes 3 percent no 97 percent vote comment and View them All at Frederickse Spost. Com daily poll thursdays lottery winners Maryland thursday evening pick 3 4 9 2 pick 4 9 1 9 5 Bonus match 5 9 11 14 19 22 Bonus Ball 34 Multi match 1 14 15 16 23 41 thursday afternoon pick 3 9 9 3 pick 4 9 4 6 7 Pennsylvania thursday evening pick 2 5 3 pick 3 1 3 9 pick 4 4 5 8 3 pick 5 6 9 3 6 5 Cash 5 3 6 8 9 16 match 6 4 8 9 17 23 41 thursday afternoon pick 2 1 9 pick 3 0 5 3 pick 4 4 0 4 0 pick 5 3 9 1 2 8 treasure Hunt 1 11 25 27 30 Virginia Day drawing pick 3 0 0 2 pick 4 3 0 6 9 Cash 5 1 14 16 17 27 West Virginia daily 3 6 2 0 daily 4 6 2 1 7 Cash 25 2 4 9 12 20 22 District of Columbia thursday evening d. C. Three 5 0 6 d. C. Four 2 0 6 6 d. C. Five 7 0 2 2 7 thursday afternoon d. C. Three 7 7 9 d. C. Four 9 9 5 9 d. C. Five 4 1 6 4 8 corrections a Story published thursday on Page a1 about the Roger Brooke Taney bust contained a reporters error. The Story incorrectly attributed a statement made by Alderman Michael Oconnor to both him and Alderman Kelly Russell. An announcement published wednesday on Page b5 about Robo rangers 4 h club and e end hosting an electronics recycling Day on monday aug. 17, contained a reporters error. The disposal fee for cart monitors is $ 8 each. The event is from 10 30 a. M. To 3 p. M. At e end 7118 Geoffrey Way unite Frederick. A file photo published wednesday on Page a1 of last years Frederick clustered Spires High wheel race contained an editors error. The photo was taken by Graham Cullen. As social Security turns 80, stakes loom Large program faces $ 35.3 trillion shortfall prompting considerations of an overhaul associated press file photo president Franklin Roosevelt signs the social Security Bill on aug. 14, 1935, in Washington. Social Security turns 80 today. Source social Security administration a social Security yes declining fortunes the Federal program for the elderly and disabled faces a future with Benefit payouts far outstripping revenues. 2090 accumulated shortfall $ 35.3 trillion projected social Security shortfall Over the next 75 years adjusted for inflation to 2015 dollars 40 35 30 25 20 15 10 5 0 $ 5 trillion 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 2035 surplus exhausted source trustees of the social Security and medicare Trust funds 2008 year of projection year fund projected to run out medicare fund social Security retirement fund 2010 2020 2030 2035 2026 2024 2040 2009 2010 a tracking social Security medicare each year the Federal government projects when the giant Trust funds for social Security and medicare Are expected to run dry. 2035 2042 2024 2012 2013 2019 2029 2040 2039 2017 2011 2030 2034 2015 2030 2035 social Security disability fund 2025 2038 2020 2018 2018 2016 2016 2016 2016 2014 current projection

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