Enjoy an Ads-Free Jets Insider - Become a Jets Insider VIP!
Results 1 to 7 of 7

Thread: The current SS surplus

  1. #1
    Hall Of Fame
    Join Date
    Jan 2005
    Posts
    15,550
    Post Thanks / Like

    The current SS surplus

    Where does it go? Thanks.

  2. #2
    Hall Of Fame
    Join Date
    Feb 2006
    Location
    Van down by the river
    Posts
    21,950
    Post Thanks / Like
    Halliburton. Iraq. Arms dealers. Peanut farms. Bridges to nowhere. Up politicians noses.

  3. #3
    All League
    Join Date
    Jan 2006
    Location
    East of the Jordan, West of the Rock of Gibraltar
    Posts
    4,697
    Post Thanks / Like
    I believe they buy T bills with the extra cash.


    From wikipedia

    [URL=http://en.wikipedia.org/wiki/Social_Security_Trust_Fund]Wikipedia[/URL]

    ...The surplus is accounted for in the Social Security Trust Fund. As of the end of calendar year 2004, the accumulated surplus stood at approximately $1.7 trillion. [1] Projections are that current receipts will continue to exceed expenditures until 2018 or 2019. Thereafter, there will be a shortfall that will be made up by withdrawals from the Trust Fund, although the Trust Fund will continue to show net growth until 2025 because of the interest generated by its bonds. [2] The Trust Fund will gradually be drawn upon to cover the difference between tax receipts and benefit payments. It will be completely depleted by 2042 (according to the Social Security Administration) or 2052 (according to the Congressional Budget Office). However, if the US economy performs better than the economic assumptions and projections used by the SSA and CBO, the trust funds may remain solvent indefinitely.

    On February 2, 2005, President George W. Bush made Social Security a prominent theme of his State of the Union Address. One consequence was increased public attention to the nature of the Social Security Trust Fund. Unlike a typical private pension plan, the Social Security Trust Fund does not hold any marketable assets to secure workers' paid-in contributions. Instead, it holds non-negotiable United States Treasury bonds and U.S. securities backed "by the full faith and credit of the government". The Office of Management and Budget has described the distinction as follows:

    These [Trust Fund] balances are available to finance future benefit payments and other Trust Fund expenditures – but only in a bookkeeping sense.... They do not consist of real economic assets that can be drawn down in the future to fund benefits. Instead, they are claims on the Treasury that, when redeemed, will have to be financed by raising taxes, borrowing from the public, or reducing benefits or other expenditures. The existence of large Trust Fund balances, therefore, does not, by itself, have any impact on the Government’s ability to pay benefits. (from FY 2000 Budget, Analytical Perspectives, p. 337)

  4. #4
    Hall Of Fame
    Join Date
    Apr 2003
    Location
    Boston
    Posts
    11,692
    Post Thanks / Like
    [QUOTE=BrooklynBound]Where does it go? Thanks.[/QUOTE]

    To which surplus are you referring?

  5. #5
    Hall Of Fame
    Join Date
    Jan 2005
    Posts
    15,550
    Post Thanks / Like
    [QUOTE=jets5ever]To which surplus are you referring?[/QUOTE]
    The surplus of receipts over disbursements in say, 2006.

  6. #6
    All League
    Join Date
    Apr 2003
    Location
    Missouri
    Posts
    4,107
    Post Thanks / Like
    [QUOTE=BrooklynBound]The surplus of receipts over disbursements in say, 2006.[/QUOTE]


    Hmmm...every year I get a financial summary/report from all my mutual funds and financial institutions detailing where my money is, and how it is performing...haven't seen one from the US Government recently.

    Maybe I need to give them a call?

    I'm sure it's an oversight.

  7. #7
    Hall Of Fame
    Join Date
    Nov 2004
    Location
    LI
    Posts
    19,650
    Post Thanks / Like
    [QUOTE=Greenwave81]Hmmm...every year I get a financial summary/report from all my mutual funds and financial institutions detailing where my money is, and how it is performing...haven't seen one from the US Government recently.

    Maybe I need to give them a call?

    I'm sure it's an oversight.[/QUOTE]


    Sarcasm + no smilies = BONUS POINTS! :cool:

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Follow Us