1. A Strong Program That Should Be Strengthened, Not Cut!
Social Security
A Strong Program That Should Be Strengthened, Not Cut!

2. Social Security was Created as Part of The New Deal under FDR
Passed in 1935, the Social Security Act created the Social Security retirement program, the Unemployment Insurance program, and the Aid to Dependent Children program, later AFDC, now TANF.
The purpose was
Provide retirement security and reduce poverty among the aging.
Create incentives for older workers to leave the labor market to give opportunities to younger workers, who were becoming increasingly unemployed as a result of the depression.
However, there were limits to the program. Originally, the program:
Only covered about one half of all workers.
Excluded domestic workers, agricultural workers and public employees - disproportionately black and women workers.
March 2013

3. Social Security was Created as Part of The New Deal under FDR
In 1935 the Social Security Act created the Social Security retirement program (as well as Unemployment Insurance and Aid to Dependent Children, later AFDC, now TANF)
Purpose was twofold:
provide retirement security/reduce poverty among the aged
create incentive for older workers to leave the labor market during the depression when so many were unemployed
March 2013

4. Limits of the Original Program
Originally, the program:
Only covered about one half of all workers.
Excluded domestic workers, agricultural workers and public employees - disproportionately black and women workers.
March 2013

5. Improvements Over the Years
Dependent & Survivor Benefits for spouses and minor children
Coverage broadened to include agriculture, domestic workers and public employees
Disability benefits
Early Retirement with reduced benefit
1939
Dependent Benefits for spouses and minor children of retired workers
Survivor Benefits for surviving spouses and minor children of covered workers
1950’s
Coverage broadened to include agriculture, domestic workers and public employees
1956
Benefits for workers who become disabled before retirement age
1956 (more)
Early retirement for women at age 62 with reduced benefits
1961
Early retirement for men at age 62 with reduced benefits
1972
SSI program created
1975
Annual increases based on inflation
February 2012

6. Social Security: A Promise We Make To Each Other
The main goal is to cut the risks of poverty in old age and when living with disabilities.
Program was designed to work as an insurance program – it does not create individual accounts
Everyone gets a reasonable payment based in part on their contribution to the system.
Some people may collect more than they contributed while others may collect less.
We are greater together than we are on our own ; We have an obligation to ourselves and each other to look out for each other.
Workers and employers pay into, and then benefits are distributed under certain conditions.
The main goal is to cut the risks of poverty in old age and when living with disabilities so that everyone gets a reasonable payment based in part on their contribution to the system.
Some people may collect more than they contributed while others may collect less.
We are greater together then we are on our own – we have an obligation to ourselves and each other to look out for each other.
March 2013

7. Who Receives Social Security?
56.9 Million people receive Social Security each month, as:
Retirement insurance
Disability insurance, or
Survivor insurance
1 in 6 Americans gets Social Security benefits.
About 1 in 4 households receives income from Social Security.
How many Americans receive Social Security? About 54 million people – or one in six Americans – get monthly benefits from Social Security. In one in four households, someone receives Social Security.
Social Security beneficiaries fall into three categories. They receive either retirement benefits, disability benefits, or survivor benefits.
The recipients could be a retired couple, a grandmother who looks after her grandchildren while her son and daughter-in-law are at work, a 55-year-old meatpacker disabled by severe arthritis, or a 5th grader and 3rd grader who became entitled to survivor benefits after their father died in military service.
Source:Source: Bethell, Reno, and Tucker, 2012 ("Strengthening Social Security" What Do Americans Want?"

8. Who Receives Social Security?
36.97 Million retired workers
8.8 Million disabled workers
4.3 Million widows and widowers
2.27 Million spouses
1 Million adults disabled since childhood
3.4 Million children
In all, about 35 million retired workers receive Social Security benefits, as do about 8 million disabled workers, 4 million widows, 3 million spouses, and 3 million children under age 18 (or under age 19 and still in high school). About 1 million adults disabled since childhood also receive regular benefits from Social Security when a parent has died, become disabled, or retired.
(Data as of Jan. 2011)
Source: Source: SSA, Monthly Statistical Snapshot, January 2013

9. Who Receives Social Security?
Almost One-Quarter of Social Security Beneficiaries Receive Disability or Young Survivors Benefits
Source: Social Security Administration, June 2010 data Center on Budget and Policy Priorities - cbpp.org

10. Social Security: Prevents Extreme Poverty For Seniors
90% of people 65 and older get Social Security.
Nearly 2 in 3 get half or more of their income from Social Security.
About 1 in 3 get almost all of their income from Social Security.
Social Security benefits are relatively modest both in dollar amounts and in relation to retirees’ prior earnings. Yet the benefits are critically important to the families that receive them.
About 90 percent of married couples and unmarried persons age 65 and older receive Social Security. It is the major source of income for most of those beneficiaries.
Nearly two in three of these beneficiaries (64 percent) rely on Social Security for half or more of their total income from all sources.
About one in three elderly beneficiaries get almost all (90 percent or more) of their income from Social Security.
Source: SSA, 2010a: Table 9.A1.

11. People of Color and Social Security
Social Security is an important program for workers and families of color. They are least likely to have wealth, as a result of racial discrimination in American life and policies.
For older minorities, Social Security is the primary source of retirement income.
Social Security is the primary source of retirement income for older minorities, with more than 25 percent of African Americans and Latinos depending on it for more than 90 percent of their family income.
Social Security is an important program for workers and families of color who are more vulnerable to economic instability and who are the least likely to have wealth as a direct result of past racial discrimination in American life and policies.
Source: Plan for A New Future: The Impact of Social Security on People of Color Oct 2011

12. Social Security Benefits
Broken Down By Race
Percent of beneficiaries age 65 and older who receive 90% or more of their income from Social Security:
34.7% of Whites
49.4% of Blacks
41.7% of Asians
55.1% of Hispanics
Percent of beneficiaries age 65 and older who receive half or more of their income from Social Security:
64.5% of Whites
73.6% of Blacks
64.5% of Asians
77.1% of Hispanics
Social Security is particularly important to elders in communities of color.
SSA: Source: SSA, Percentage distribution of beneficiary units, by race, Hispanic origin, and marital status,
2010, Table 9.3 A tp://

13. Funding Social Security

14. Why Do We Fund Social Security?
In exchange for modest payroll contributions, U.S. workers have been able to gain insurance that provides economic benefits for themselves and their families in the event of retirement, disability or early death; events that in previous generations would have led to impoverishment for workers and their families.
Source: Plan for A New Future: The Impact of Social Security on People of Color Oct 2011

15. How Do We Fund Social Security?
Most Americans pay Social Security on all their income.
Both workers and employers pay 6.2% of wages toward Social Security.
Exceptions for 5% of Americans.
When a worker’s salary reaches a cap of $113,700 per year, he or she does not pay Social Security on the salary above the cap.
People do not pay Social Security on unearned income, such as investment income.
Source: Bethell, Reno, and Tucker, 2012 ("Strengthening Social Security" What Do Americans Want?" )
March 2013

16. Social Security Trust Fund
Payments into Social Security by workers and employers is put into a Trust Fund – until this past year Social Security taxes were greater than benefits paid creating a surplus
Currently the Social Security Trust Fund has a balance of $2.7 Trillion.
The funds are invested in US Treasury Bonds, one of the safest investments in the world.
What workers and employers pay into Social Security is put into a Trust Fund. By law, this guaranteed pool is separate from the budget and pays its own way, which means that Social Security doesn’t and can't add to the deficit:
Taxes collected until this past year were greater than benefits paid so that a surplus of about $2.6 trillion has accumulated in the Trust Fund.
The funds are invested in US Treasury Bonds, one of the safest investments in the world.
The goal has been to make sure that a combination of current taxes and the Trust Fund will safely cover projected benefits for the next 75 years.
February 2013

17. Social Security Under Attack
Since the Reagan years there have been some serious cuts to Social Security
A decrease from 90 to 82% of wages covered by payroll tax – undermines solvency over long-term
Increases in retirement age from 65 to 67 (in 2027)
Decrease in survivor benefits (for widowers and dependent children)
Picture: Ronald Reagan gives a televised address from the Oval Office, outlining his plan for Tax Reduction Legislation in July 1981.

18. Social Security Under Attack: Out of Touch Elites
There are several groups and well known spokespeople who have proposed cuts to Social Security
The two big proposals are
Increase the Retirement Age
Lower cost of living adjustments
Unfortunately this includes leaders from both major political parties
There are many efforts to “reform Social Security” – some of the past year include:
Bowles Simpson’s, White House Fiscal Commission Co- Chairs, 2010 Proposal to Cut Social Security Benefits
Early retirement eligibility age would go from 62 to 64; and the normal retirement age would go from 67 (the already scheduled increase) to 69 by 2075, resulting in a 13% cut in benefits
Change to COLA (Cost of Living Allowance) - A reduction in the indexed yearly increases based on lower inflation rates
February 2013

19. Myth vs. Facts
Myth 2: We have to raise the retirement age because people are living longer
Myth 1: Social Security adds to the deficit
FACT: It's not just wrong -- it's impossible!
FACT: There is a large class & race divide around life expectancy, most everyday Americans are living only a year or two more than 70 years ago
Myth 1: Social Security adds to the deficit
Fact: It's not just wrong -- it's impossible!
By law, Social Security funds are separate from the budget, and it must pay its own way. That means that Social Security can't and doesn’t add one penny to the deficit.
Myth 2: We have to raise the retirement age because people are living longer
Fact: This is a red-herring to trick you into agreeing to benefit cuts.
Retirees are living about the same amount of time as they were in the 1930s. The reason average life expectancy is higher is mostly because fewer people die as children than did 70 years ago. What's more, whatever gains there have been are distributed very unevenly - since 1972, life expectancy increased by 6.5 years for workers in the top half of the income brackets, but by less than 2 years for those in the bottom half. But those intent on cutting Social Security love this argument because raising the retirement age is the same as an across-the-board benefit cut.
March 2013

20. Social Security is not in Trouble !
There is no deficit for Social Security benefits: there is currently $2.7 trillion in the Trust Fund – enough to pay all benefits through 2033!
After that, money coming in through current payroll taxes will cover about ¾ of scheduled benefits.
“Scrapping the cap” so that everyone pays their fair share on taxable earnings would more than cover the full cost of the benefits.
Taxes on unearned income – dividends, interest, or inheritances – could also be used to help pay for the program
March 2013

21. Attempts to Privatize Social Security
In 2005, President Bush proposed privatizing Social Security, and Representative Paul Ryan co-sponsored legislation in Congress to privatize Social Security.
Although President Bush’s attempt to privatize Social Security failed, Representative Paul Ryan revived the Republican’s efforts to partially privatize Social Security in the 2010 Republican budget plan, which he authored.
Although Representative Ryan dropped his proposal to partially privatize Social Security in his 2014 budget, he did propose to make further changes to our Social Security program through an unaccountable legislative fast track process.
Politicians including George W Bush, Paul Ryan and Mitt Romney have proposed privatizing aspects of Social Security.
These proposals vary but include ideas such as :
Allowing workers age 55 or younger to create private accounts and invest a large portion of their Social Security taxes in the stock market.
Diverting a $1 trillion from the Social Security Trust Fund, where benefits are guaranteed, to Wall Street
Raising e the normal retirement age to 68 years old by 2027, and increase it every two years so it will reach 70 later this century – which would mean a 20% benefit cut across the board.
Cut benefits by 40% for middle-income workers making about $43,000. Cut benefits by 50% for middle-income workers making about $70,000.
Reduce cost-of-living-adjustments (COLA) – instead of using the standard Consumer Price Index (CPI) to calculate COLAs, the chained CPI would be used, which would reduce COLAs by an estimated 0.3% per year.
March 2013

22. Attempts to Privatize Social Security
Proposals to privatize Social Security would divert $1 trillion from the financially stable Social Security Trust Fund to Wall Street.
Experience has shown us that Wall Street is not a responsible guardian of our money.
Politicians including George W Bush, Paul Ryan and Mitt Romney have proposed privatizing aspects of Social Security.
These proposals vary but include ideas such as :
Allowing workers age 55 or younger to create private accounts and invest a large portion of their Social Security taxes in the stock market.
Diverting a $1 trillion from the Social Security Trust Fund, where benefits are guaranteed, to Wall Street
Raising e the normal retirement age to 68 years old by 2027, and increase it every two years so it will reach 70 later this century – which would mean a 20% benefit cut across the board.
Cut benefits by 40% for middle-income workers making about $43,000. Cut benefits by 50% for middle-income workers making about $70,000.
Reduce cost-of-living-adjustments (COLA) – instead of using the standard Consumer Price Index (CPI) to calculate COLAs, the chained CPI would be used, which would reduce COLAs by an estimated 0.3% per year.
March 2013

23. Not Only Can We Can Keep Social Security Strong
We Can Make It Better !

24. People Across The Country Organized!
We stopped an increase in retirement age
We stopped an increase in Medicare eligibility age
So far we have also stopped cuts to the Cost of Living adjustments
We built momentum to increase the payroll cap – so that higher earners pay the same as most Americans
We have started to build energy for a credit for hard working caregivers
Last Year, There was an attack on Social Security
We stopped an increase in retirement age & cuts to COLA
We built momentum to increase the payroll cap – so that higher earners pay the same as most Americans
Changes to Social Security are coming after the elections
Lets make sure We Get Our Ideas For Improvements on the Table

25. We Can Make Social Security Better
Make FICA Fair – Wealthy Americans Should Pay Into FICA on all income
Count Hard Work At Home – Provide Credits For Caregiving
Increase Benefits & Cost of Living Adjustments
FICA: Federal Insurance Contributions Act tax. Social Security payroll tax paid by employers and employers, currently at 6.2%
Other important improvements:
Restoring survivor benefits for college-age students
Raising the Special Minimum Benefit
Including benefits for same-sex couples
March 2013

26. Make FICA Fair – Ask Wealthy Americans to Pay the Same Rate As Every Day Americans
Raise the FICA cap. In 2013, workers pay into the system only on earnings under $113,700. Applying Social Security taxes to all earnings – as with Medicare – would help to protect Social Security over the long term.
This would provide all the funds we need to pay all benefits for the next 75 years!
Few Americans would be affected by this change to the Social Security payroll tax cap.
Just 1.2% of workers had earnings over $250,000 in 2009, including 0.4% of women, 0.3% of African American workers and 0.3% of Latino workers.
FICA: Federal Insurance Contributions Act tax. Social Security payroll tax paid by employers and employers, currently at 6.2%
March 2013

27. Create A Care Giver Credit In Social Security
Make Hard Work Count:
Create A Care Giver Credit In Social Security
Unpaid caregivers who work in the home earn zero Social Security credits during the time they are doing this hard and labor intensive job. We Can Do Better
Our proposal is to provide at least 5 years of credit when a worker had no or reduced earnings because she/he was caring for a young child, senior or disabled family member.
2) Caring for Those that Care for Us. All of us know someone, including sometimes ourselves, who have had to drop out of what can be called the ‘traditional workforce” to take care of a loved one who is sick, facing a disability or for a child. We need to ensure that we are taking care of each other in this country by allowing those that do so, to continue to earn credits for social security, so that they can make ends meet when they are set to retire. This would greatly impact the lives of those that we hold most dear…our mothers, sisters, and grandmothers
Provide Caregiver Credits.
People who take time out of or never enter the paid labor force to care for family members are disadvantaged by the Social Security system because they either have more years of zero earnings that end up lowering the amount of their Social Security benefits or because they do not earn the credits necessary to qualify for Social Security benefits.
Social Security benefits are based on the adjusted average of a worker’s 35 highest-earning years. While men average 44 years in the workforce, women average only 32 years and are far more likely to face poverty in their old age.
Under one proposal ( Lowey) up to five years of credit would be created for periods of time when a worker had no or reduced earnings because she/he was caring for a young child or disabled family member. The credit would be equal to one-half of the average wage for all covered workers, $21,000 in 2009 or consider basing benefits on best 25 years in workforce
March 2013

28. Increase Benefits & Cost Of Living Adjustments
We should increase our social security benefits to ensure that our families can pay for their basic items they need to get by.
One proposal is to change how cost of living adjustments are calculated so that we take into greater consideration the spending patterns of older consumers – like prescription drugs, helping to address the quickly escalating cost of medical care. This change is called the CPI-E ( consumer price index for the elderly)
Another proposal is to increase benefits for the lowest income earners.
Making Sure Our Monthly Checks are Sufficient. Everyone in the room knows how hard it is to simply pay for the basic necessities from month to month when our only income comes from social security. We need to increase our monthly social security amounts to ensure that our families can pay for the basic items they need to get by.
COLA Formula. We suggest a change in how cost of living adjustments are calculated to take into greater consideration the spending patterns of older consumers, this helps address the quickly escalating cost of medical care. Switch to CPI-E (not chained) or Deutsch’s proposal for CPI-E of $250 increment when CPI-E determined inflation is less than $250.
Increase benefits for the lowest income earners. In 2007, 43% of seniors 75 and older lived with incomes under 200% of the poverty level, about $1,702 per month. Guarantee benefit of at least 125% of federal poverty level for individuals who have worked at least 25 or 30 years.
In addition, we also want the restoration of benefits through age 22:
 4) Restore benefits through age 22 to community college, four-year college, and university students. Currently, Social Security pay benefits to children until the age 18 (or 19 if still in school) if a working parent has died, become disabled, or retired. Congress ended post-secondary student benefits in When it was in place, it was shown to be particular helpful to young adults from low-income and racial and ethnic minority families.
March 2013

29. Now Is The Time To Act
Income Inequality is a hot topic so we have an opening to win an increase in the FICA Cap
Paul Ryan’s unabated attacks on Social Security and Medicare have made seniors a swing group - Let’s make Congress fight for votes
Social Security will be restructured soon, so now is the time to put our ideas on the table
The Conversation About Income Inequality Is An Opening To Lift the Payroll Tax Cap
The Ryan Plan Has Turned Off Seniors Making Them A Swing Voting Group. This Provides An Opportunity To Get Both Political Parties To Pay Attention
Social Security Will Be Restructured In The Next Few Years – Probably After This Presidential Election, Now Is The Time To Put Our Ideas On the Table
March 2013