Headlines about "Social Security - benefits, incl. coverage"
Gathered from the web by the editors at BenefitsLink.com.
Measuring Social Security Proposals by More Than Solvency: Impacts on Poverty, Progressivity, Horizontal Equity, and Work Incentives
"[The authors] apply the measures to simulation output from the Urban Institute's Dynamic Simulation of Income Model under the National Commission on Fiscal Responsibility and Reform Social Security proposal. A series of exhibits illustrates how they work and could inform policymakers about the relative merits of varied options to restore the program's long-run solvency and meet other objectives." (Center for Retirement Research at Boston College)
How Is Economic Hardship Avoided by Those Retiring before the Social Security Entitlement Age?
"[Four] out of five people who have zero earnings at pre-entitlement ages are able to find a way to lift their incomes over the poverty line. For men, pension and annuity income is important while for women, spousal income helps most to get them over the line. Reaching the early retirement entitlement age at 62 also has a significant impact on poverty avoidance." (The National Bureau of Economic Research; paid subscription or individual purchase required to retrieve full text)
How Much Do Private Industry Employers Pay for Government Employee Benefits Such as Social Security? (PDF)
"The legally required benefits covered in this issue of Program Perspectives are Social Security, Medicare, federal and state unemployment insurance, and workers' compensation. The focus here is on the employer's portion of the cost of these benefits." (Bureau of Labor Statistics)
How Social Trends in Marriage Duration Affect Women's Eligibility for Social Security Wife and Widow Benefits (PDF)
"[A]nalysis reveals substantial changes in women's marital patterns among baby boomers and generation Xers [from 1990 through 2009]. Those changes have prompted a decline in qualifying marital histories for Social Security spouse and widow benefits. The findings also reveal substantial variation by race/ethnicity." (Social Security Administration)
Freeing Boomers from Social Security Cuts Blows Up Math
"Retiring Baby Boomers are swelling the program�s rolls, with 10,000 turning 65 every day ... By 2035, there will be only two workers paying taxes to finance benefits for every retiree. While lawmakers have no solution, they generally agree they can�t make significant cuts for those in or near retirement. The longer Congress waits to act, the more people will be shielded -- and the more heavily cuts will fall on younger Americans. The result could be a two-tiered system raising questions about generational fairness[.]" (Bloomberg)
Putting Social Security's 2012 Financial Outlook in Perspective (PDF)
"The Social Security actuaries project the system's financial outlook over the next 75 years under three assumptions - high cost, low cost, and intermediate. This brief focuses on the intermediate assumptions.... The 2012 Trustees Report confirms what has been evident for two decades - namely, Social Security is facing a long-term financing shortfall which now equals 2.67 percent of taxable payroll or 0.9 percent of GDP." (Center for Retirement Research at Boston College)
Social Security Finances: Findings of the 2012 Trustees Report (PDF)
"The 2012 Trustees Report shows that Social Security is 100 percent solvent until 2033, but faces a moderate long-term shortfall. In 2011, Social Security had a surplus -- revenue plus interest income in excess of outgo -- of $69 billion. Reserves are projected to grow to $3.1 trillion by the end of 2020. Then, if Congress takes no action in the meantime, reserves would start to be drawn down to pay benefits. In the highly unlikely event that Congress does not act before 2033, the reserves would be depleted and revenue coming into the trust funds from workers' and employers' contributions would cover about 75 percent of scheduled benefits (and administrative costs, which are less than 1 percent of outgo)." (National Academy of Social Insurance)
Official Report on Social Security: Text of the 2012 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds (PDF)
"In 2011, Social Security's cost continued to exceed both the program's tax income and its non-interest income, a trend that the Trustees project to continue throughout the short-range period and beyond. The 2011 deficit of tax income relative to cost was $148 billion, and the projected 2012 deficit is $165 billion. The sizes of these deficits are largely due to a temporary reduction in the Social Security payroll tax for 2011 and 2012." (Social Security Administration)
Official Summary of the 2012 Annual Reports of the Social Security and Medicare Boards of Trustees
"The long-run actuarial deficits of the Social Security and Medicare programs worsened in 2012, though in each case for different reasons. The actuarial deficit in the Medicare Hospital Insurance program increased primarily because the Trustees incorporated recommendations of the 2010-11 Medicare Technical Panel that long-run health cost growth rate assumptions be somewhat increased. The actuarial deficit in Social Security increased largely because of the incorporation of updated economic data and assumptions. Both Medicare and Social Security cannot sustain projected long-run program costs under currently scheduled financing, and legislative modifications are necessary to avoid disruptive consequences for beneficiaries and taxpayers." (Social Security Administration)
Social Security and Medicare Annual Trustee Reports Expected April 23, 2012
"Experts said they expect the trustees' conclusions to be similar to their findings last year.... [when] the trustees projected Social Security could pay promised benefits in full through 2036, after which the program could only afford to pay 77% of them." (CNN Money)
Implications of the Payroll Tax Holiday for Social Security
"This 'payroll tax holiday' is scheduled to end on December 31. This fact sheet describes an 'exit strategy' that could attract broad public support and help strengthen Social Security for the long term. The fact sheet notes that Social Security now has four dedicated sources of income, including reimbursement funds from general revenues that replace dollar-for-dollar the revenue not collected during the temporary tax reduction. Therefore, Social Security's trust funds are unaffected by the payroll tax holiday." (National Academy of Social Insurance)
Social Security by Choice: The Experience of Three Texas Counties
"Galveston County opted out of Social Security in 1981, and Matagorda and Brazoria counties followed suit in 1982. County employees have since seen their retirement savings grow every year, including during the recent recession. Today, county workers retire with more money, and have better supplemental benefits in case of disability or an early death. Moreover, the counties face no long-term unfunded pension liabilities. If state and local governments -- and Congress -- are really looking for a path to long-term sustainable entitlement reform, they might consider what is known as the 'Alternate Plan.'" (National Center for Policy Analysis)
[Opinion] The Two Worlds of Personal Finance: Implications for Promoting the Economic Well-Being of Low- and Moderate-Income Families (PDF)
"Many low- and middle-income households do not receive financial advice on when to retire, how to arrange Social Security benefits, and homeownership, despite these being their most important retirement decisions." (Urban Institute)
Boomers' Eagerness May Limit Their Retirement Security
"By collecting benefits before their normal retirement age, nearly three-quarters of all current Social Security recipients are receiving reduced benefits and limiting their retirement security.... Those collecting Social Security at age 62 will reduce their benefits by 20 to 30 percent depending on their normal retirement age, which could amount to hundreds of thousands of dollars in lifetime payouts[.]" (Insured Retirement Institute)
Defined Contribution Equals Social Security in Retirement Importance to Baby Boomers
"Defined contribution retirement plans now equal Social Security in importance when it comes to retirement security among people ages 50 to 66, according to a new survey from the Insured Retirement Institute.... Even fewer baby boomers are relying on a defined benefit plan, according to the survey, with 42% relying on employer-provided defined contribution plans, compared to 36% last year." (Pensions & Investments)
Social Security Claims Edged Down in 2011
"After peaking in the wake of the Great Recession, Social Security retirement and disability awards fell in 2011 as the economy improved. Only 27 percent of Americans age 62 and older began collecting retirement benefits that year, the lowest take-up rate since 1976. Disability applications and awards remained unusually high, however." (Urban Institute )
Majority of Boomers Lack Optimism in Their Financial Future
"With the economy still recovering from the financial crisis and recession, few Boomers are optimistic that their financial situation will improve during the next five year as 62 percent believe it will be about the same or that it will deteriorate. The study also found that confidence in retirement security is severely depressed with only 36 percent of Boomers being confident in having enough assets to live comfortably during retirement." (Insured Retirement Institute)
How Delaying Retirement Can Help You
"The major financial benefits of deferring retirement are the ability to continue earning money, adding to your retirement assets, deferring drawing down those assets, and delaying the date you begin to receive Social Security benefits. Situations differ, of course, but here's a rough look at the impact of deferring retirement for five years, from age 65 to 70." (U.S.News & World Report)
Great Recession Causes More People to Claim Social Security Early; Who Are They? How Much Do They Lose?
"[This study projects] that high unemployment rates during the Great Recession led to a 5-percentage-point increase in the probability of claiming [Social Security retirement benefits] early relative to a less severe recession such as the 2001-2003 downturn, and this increase was nearly uniform across socioeconomic groups.... [E]stimates also suggest that while the Great Recession did impact the claiming decision, it did not cause a dramatic change in benefits." (Center for Retirement Research at Boston College)
Effects of Employer Health Costs on the Trend and Distribution of Wages Subject to Social Security Payroll Tax
"The increasing cost of employer contributions for employee health insurance reduces the percentage of compensation that is subject to the payroll tax. Rising insurance contributions can also have a more subtle effect on the Social Security tax base because they influence the distribution of money wages.... [T]he effect of health cost trends [in 1996-2008] exerted a disproportionate downward pressure on money wages below the taxable maximum, reducing the percentage of compensation subject to the payroll tax.... The main long-term impact of reform on the taxable wage base is likely to be through its effect on the trend in underlying health care costs." (Boston College, Center for Retirement Research)
[Guidance Overview] Change in Social Security Offset Wasn't a Cutback, 11th Circuit Rules
"A pension plan sponsor didn't impermissibly reduce benefits when it changed the plan's Social Security offset for employees attaining age 52 .... Originally, the plan applied one offset for employees who left before age 52 and a lower offset (producing a higher benefit) for employees terminating after age 51. The employer amended the plan to eliminate the lower offset, but only for employees who hadn't yet reached age 52. The amendment didn't reduce accrued benefits, the court said, because the affected employees 'had at most an expectation of a future accrual.'" (Mercer)
Do Stronger Age Discrimination Laws Make Social Security Reforms More Effective?
"The evidence indicates that, for older individuals who were 'caught' by the increase in the [Full Retirement Age], benefit claiming reductions and employment increases were sharper in states with stronger age discrimination protections." (University of Michigan Retirement Research Center)
Are You Counting on Social Security?
"Here are some things [for federal workers and the rest of us] that are important to understand about Social Security to have a realistic view of the role it will play in your retirement[.]" (Government Executive)
Explaining the Lack of Non-Public Actors in the U.S. Public Social Insurance System
"[T]he paradox of the American social insurance system is that while disclaiming any desire for socialist-type programs, most Americans today believe that only the government should be responsible for providing the social insurance safety net.... [M]ost Americans are not yet ready to place their faith in these private actors, even if more efficiency, cost-savings, and activation could be achieved by doing so." (Marquette University Law School)
Chart: Employer Costs for Legally Required Benefits in December 2011
"The average cost for legally required benefits was $2.33 per hour worked in private industry (8.1 percent of total compensation) in December 2011. Social Security comprises the largest legally required benefit cost component at $1.34 per hour or 4.7 percent of total compensation. Legally required benefits such as Social Security and Medicare are often directly linked to wages; therefore, higher paid occupations or industries will typically show higher cost estimates for this compensation component." (Bureau of Labor Statistics)
House Ways and Means Committee Third Hearing in Series on Securing the Future of the Social Security Disability Insurance Program
The hearing focused on how disability insurance eligibility decisions are made, including the definition of disability and the Federal-State relationship. Links to testimony are on the target page. (Ways and Means Committee)
Social Security: A Key Retirement Resource for Women
"Social Security is an especially important income source for olderwomen. Women are less likely to have other sources of retirement income,such as pensions and savings, making Social Security one of their few sources of retirement income. Moreover, three key features of the Social Security program -- progressivity of the benefit formula, guaranteed benefits for life, and inflation-adjusted benefits -- are particularly beneficial to women." (AARP Public Policy Institute)
Will Health Care Reform Impact Applications for Disability Benefits?
"The cost of maintaining health insurance coverage during a period lasting at least 24 months (the SSDI 5-month waiting period plus the 19-month Medicare waiting period) creates a disincentive to apply for SSDI benefits, generating 'job lock' -- the inability of a worker to freely leave an employer because doing so would result in loss of employer-provided benefits, like health insurance." (RAND)
Enrolled Actuaries Report, Winter 2011 (PDF)
This edition includes the following: GASB Unveils Preliminary Viewson Financial Projections; Research Projects Private Pension Funding Costs; Updated Social Security and IRS Amounts for 2012; Is 411(d)(6) Dead? Recent Developments for Hybrid Plans; and, PBGC Clarifies Instructions for Form 5500 on the reporting of premium payments. (Enrolled Actuaries Report)
Can the Actuarial Reduction for Social Security Early Retirement Still Be Right?
"The option to claim early was enacted over 50 years ago, when Congress set 62 as the program's Earliest Age of Eligibility. To make up for the extra three years of benefit payments, those claiming at 62 received 20 percent less in monthly benefits than if they had claimed at 65. Despite a significant increase in life expectancy in the intervening years, benefits claimed at 62 today are still about 20 percent less than benefits claimed at 65. This brief asks whether this actuarial reduction is still correct...." (Center for Retirement Research at Boston College)
Social Security Claiming: Trends and Business Cycle Effects
"Social Security claiming behavior matters because early claimants receive lower monthly benefits for the rest of their lives. Early claiming fell over the past decade, after increasing over the previous 10 years. However, high unemployment encourages early claiming by less-educated men." (Urban Institute)
Facts You Might Not Know About Social Security
"California-based Financial Engines provides 401(k) advice to workers, including how they can make their money last in retirement. In some cases, the company recommends that retirees accelerate 401(k) withdrawals in the early years of retirement if that's what it takes to postpone drawing on Social Security." (The Olympian)
A Decision Framework for Optimizing the Social Security Claiming Age (PDF)
"The age at which an individual chooses to start Social Security retirement benefits can be arguably the most significant factor in his or her ability to maintain financial security throughout retirement. Unfortunately, some financial advisors erroneously believe the client should maximize years of payments from Social Security, whereas others focus exclusively on a present-value break-even age, or money's worth, analysis. In contrast, the authors argue that basing the decision on onlyone way of looking at the question is insufficient and propose that practitioners use a comprehensive decision model that accounts for the net present value, longevity risk and Social Security legal strategies in properly framing the solution. Planners working with clients need to set out all the options before clients can select the factors they value the most for their unique situation." (Benefits Quarterly)
CBO Working Paper: The Earned Income Tax Credit and Expected Social Security Retirement Benefits Among Low-Income Women
"Expansions in the Earned Income Tax Credit (EITC) are associated with increases in formal employment and increases in long-term year-over-year growth in earnings for single mothers. In this study, we examine whether expansions in the EITC are likely to lead to increases in Social Security retirement benefits for less-educated women (those likely to be affected by the EITC) by increasing their employment and earnings when young." (Congressional Budget Office)
The Influence of Public Policy on Health, Wealth and Mortality
"In this project we extend an augmented lifecycle model, incorporating a Grossman-style model of health capital, to enhance understanding of factors influencing consumption, wealth and health. We develop three primary results when using the model to explore the effects of stylized versions of Medicare and Social Security on wealth and longevity." (University of Michigan Retirement Research Center)
The Impact of Claiming Age on Monthly Social Security Retirement Benefits: How Knowledgeable Are Future Beneficiaries?
"[T]he vast majority of future beneficiaries are aware that their monthly benefits would increase if they were to wait until their full retirement age to claim benefits rather than claim at age 62. Most are also aware that delaying claiming by one year beyond their full retirement age would cause their monthly benefits to increase." (AARP)
Social Security Programs Throughout the World: The Americas, 2011
"Guide to Reading the Country Summaries, including: Table 1. Types of social security programs; Table 2. Types of mandatory systems for retirement income; Table 3. Demographic and other statistics related to social security, 2011; Table 4. Contribution rates for social security programs, 2011" (U.S. Social Security Administration)
The Decision to Delay Social Security Benefits: Theory and Evidence
"We find no evidence of a consistent relationship between claiming behavior and factors that influence the actuarial advantage of delay, including gender and marital status, interest rates, subjective discount rates, or subjective assessments of life expectancy." (The National Bureau of Economic Research; paid subscription or individual purchase required to retrieve full text)
[Official Guidance] IRS Revised Form 941, Employer's Quarterly Federal Tax Return (PDF)
The revised form reflects the extended payroll tax cut. (U.S. Internal Revenue Service)
10 Important Ages for Retirement Planning
"Eligibility for retirement benefits begins at different ages. Your age also plays a role in what you need to do to avoid retirement account penalties. Here are important ages to factor into your retirement plans[.]" (U.S. News & World Report)
[Guidance Overview] Employees Cannot Opt Out of Medicare Part A Without Also Rejecting Social Security Benefits
"Several employees, who were receiving Social Security benefits, sued on the grounds that they suffered harm due to the Medicare Part A coverage because private insurers reduce the benefits they can receive once they become covered by Medicare Part A. They said they wanted to receive the benefits they would be entitled to under their employer's group health plan." (HighRoads)
Health Insurance, Health Care and Labor Supply by Older Adults
"This paper examines the effect of elective surgery receipt on Social Security Disability Insurance application and receipt amongst older adults with common chronic conditions." (University of Michigan Retirement Research Center)
Tax Cut Extension Passes; Everyone Claims a Win
"With each party claiming that it had pocketed an election-year victory, Congress on Friday voted to extend payroll tax cuts and unemployment benefits and sent the legislation to President Obama, ending a contentious policy fight that left lawmakers with the political bruises to show for it." (The New York Times; free registration required)
Payroll Tax Cut Bill Finalized
"Congressional leaders still hoped to be able to hold floor votes on the bill ahead of the Presidents Day recess, which begins this weekend." (Bloomberg BNA)
Can Congress Ever Restore Payroll Taxes to Their Usual Levels?
"House Republicans have already signaled that they will allow an extension through the end of the year. They were badly burned at the end of 2011, when the tax cut was originally set to expire and GOP members of Congress found themselves accused of wanting to raise taxes on working Americans. That raises the question of when it's ever going to be OK to restore payroll tax rates to their usual levels -- and what that will mean for Social Security's financing over the long haul." (NPR)
House Republicans Yield on Extending Payroll Tax Cut
"Congressional Republicans backed down on Monday from a demand that a payroll tax rollback be paid for with reductions in other programs, clearing the way for an extension of the tax cut for 160 million Americans through 2012." (The New York Times; free registration required)
Social Security Claiming: Trends and Business Cycle Effects
"The recent trend toward delayed claiming is evident among all educational groups, not just college graduates. Hazard models show that high unemployment boosts Social Security claiming among men with limited education. A 1 percentage point increase in the state unemployment rate is associated with a 0.4 percentage point increase in the likelihood each month that men who never attended college will claim benefits, a relative increase of 6 percent." (Center for Retirement Research at Boston College)
Delaying Retirement Can Significantly Boost Your Nest Egg
"The age workers expect to retire has increased from an average of 60 in 1995 to 66 in 2011, according to a Gallup poll. The proportion of people aiming to retire early has plummeted from 50 percent in 1995 to 28 percent in 2011. Most Americans now expect to retire at age 65 or later." (U.S. News & World Report)
[Opinion] Still a Better Deal: Private Investment vs. Social Security
"[P]rivate capital investment remains remarkably safe over the long term. Despite recent declines in the stock market, a worker who had invested privately over the past 40 years would have still earned an average yearly return of 6.85 percent investing in the S&P 500, 3.46 percent from corporate bonds, and 2.44 percent from government bonds." (Cato Institute)
Contrary to 'Entitlement Society' Rhetoric, Over Nine-Tenths of Entitlement Benefits Go to Elderly, Disabled, or Working Households
"Moreover, the vast bulk of [the remaining benefit] goes for medical care, unemployment insurance benefits (which individuals must have a significant work history to receive), Social Security survivor benefits for the children and spouses of deceased workers, and Social Security benefits for retirees between ages 62 and 64. Seven out of the 9 percentage points go for one of these four purposes." (Center on Budget and Policy Priorities)
GAO Report on Federal Employees' Compensation Act: Benefits for Retirement-Age Beneficiaries
"[GAO] examined (1) the characteristics and associated compensation costs of long-term, full-time FECA beneficiaries, for USPS and non-USPS employees; (2) how wage compensation benefits for retirement-age, long-term, full-time FECA beneficiaries compare with federal retirees' annuities (not including USPS employees); and (3) the experiences of states that limit state workers' compensation benefits for workers at retirement age." (U.S. Government Accountability Office)
Annual Statistical Supplement, 2011, Published by the U.S. Social Security Administration
"The Supplement is a major resource for data on our nation's social insurance and welfare programs. The majority of the statistical tables present information about programs administered by the Social Security Administration -- the Old-Age, Survivors, and Disability Insurance program, known collectively as Social Security, and the Supplemental Security Income program. In addition, data are presented on the major health care programs -- Medicare and Medicaid -- and social insurance programs, including workers' compensation, unemployment insurance, temporary disability insurance, Black Lung benefits, and veterans' benefits. The Supplement also includes program summaries and legislative histories that help users of the data understand these programs." (U.S. Social Security Administration)
Social Security Bulletin (February 2012)
Vol. 72, No. 1. Articles include The Impact of Changes in Couples' Earnings on Married Women's Social Security Benefits, The Retirement Prospects of Divorced Women, This Is Not Your Parents' Retirement: Comparing Retirement Income Across Generations; and The Increasing Labor Force Participation of Older Workers and its Effect on the Income of the Aged. (U.S. Social Security Administration)
Government Health Spending Seen Hitting $1.8 Trillion
"[R]esearchers warned that the longer term prospects for rising healthcare spending could have dire consequences for the U.S. deficit when combined with the cost of Social Security, if current revenue levels remain unchanged." (Reuters)
Downgrades in Ratings Loom for G20 Nations on Health Costs, S&P Warns
"Ratings agency Standard & Poor's warned it may downgrade 'a number of highly rated' Group of 20 countries from 2015 if their governments fail to enact reforms to curb rising healthcare spending and other costs related to ageing populations." (Reuters)
Social Security Annual Statistical Supplement, 2011
"Data are preliminary and subject to revision until the entire 2011 edition is complete. Subsections are posted as they are completed." (U.S. Social Security Administration)
To Maximize Social Security Retirement Benefits, Know the Rules
"Social Security offers another important incentive to forestall filing until at least 66. Benefits are reduced permanently for every year that is filed before the FRA, and increased for every year that is waited to file beyond it, up till the age of 70." (Thomson Reuters via Employee Benefit News)
How to Improve Social Security Education: Retirement Plan Providers' Perspectives (PDF)
"The experts and retirement plan providers interviewed in this study indicate a significant desire for greater collaboration with the Social Security Administration to develop effective communications and deliver useful and credible information to retirement plan participants and Americans as a whole. Some have specific suggestions for how the Social Security Administration can work more closely with defined contribution plan providers to help educate plan participants about the Social Security system and how Social Security benefits may serve as a critical component of their retirement income." (Financial Literacy Center)
Beware of Strategies to Take Advantage of Lower Social Security Tax Rates
"If the 4.2% rate is not extended for the whole year and you receive compensation income (e.g. salary, bonus, stock compensation) in January and February that exceeds $18,350 (a sixth of the Social Security wage base of $110,100), you face some type of recapture for the 2% lower rate." (myStockOptions.com)
Understanding the Three Main Pillars That Create the Foundation for Retirement in the U.S.
"The Three Pillars: In our opinion, those pillars consist of Medicare, Social Security and Retirement Plans. Each of these pillars is complex in its own right." (Seeking Alpha)
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