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Comments of National Academy of Social Insurance to House Ways and Means Committee on Chained CPI and Other Benefit Adjustments (PDF)

"The chained CPI would result in substantial benefit cuts for beneficiaries, especially as they grow older. Older beneficiaries rely more heavily on Social Security than do younger beneficiaries. NASI's public opinion research finds that, given a range of policy options, Americans prefer to gradually raise Social Security taxes and to improve benefits slightly for vulnerable groups."  MORE >>

American Academy of Actuaries Letter on Social Security Reform in the Context of Nation's Long-Term Fiscal Challenges (PDF)

"Whether modifications to the Social Security program are included in the [bipartisan Joint Select Committee on Deficit Reduction] proposals, or undertaken on an alternative legislative track, improving the program's financial situation would be in the best interests of the nation bystrengthening a critical element of retirement security for current and future retirees."  MORE >>

American Academy of Actuaries Comment Letter to National Conference of Insurance Legislators on LTC Reform Options (PDF)

"[These comments are] in response to the National Conference of Insurance Legislators' ... request for information on strategies to reduce costs related to LTC coverage. The task force that developed this response includes actuaries with a broad spectrum of expertise in LTC financing and Medicaid -- actuaries who understand and can explain the advantages and disadvantages of various approaches to LTC, including providing an analysis of the Community Living Assistance Services and Supports (CLASS) Act."  MORE >>

American Academy of Actuaries Comment Letter to National Association of Insurance Commissioners on Accounting for Post-Retirement Benefits Other than Pensions (PDF)

"On behalf of the Joint Committee on Retiree Health and Pension Accounting Committee of the American Academy of Actuaries', we appreciate the opportunity to provide comments to the National Association of Insurance Commissioners (NAIC) on the exposure drafts of Statements of Statutory Accounting Principles (SSAP) No. 92 and No. 102, which are intended to replace existing standards governing accounting for pension benefits and postretirement benefits other than pensions (OPEBs)."  MORE >>

American Academy of Actuaries Calls for Social Security Decisions (PDF)

1 page; press release. Excerpt: The American Academy of Actuaries today gave an actuarial analysis of the 2003 Social Security Trustees Report. Members of the Academy's Committee on Social Insurance reported that the viability of the system could be extended if decisions are soon made to reinforce the trust fund. But they warned that inaction could have severe consequences on the nation's safety net for retirees.

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Discussion on the Future of Social Security at 'Demystifying Social Security: Academy for Interns 2011'

Attendees gained a better understanding of the challenges facing the White House and Congress as they work to modify Social Security. The free, day-long event featured prominent guest speakers, expert panels, and interactive activities, plus opportunities for networking. [Links to the presentations are available on this target page.]  MORE >>

Comment Letter from Annuity Illustration Work Group of the American Academy of Actuaries to the National Association of Insurance Commissioners on Annuity Consumer Guides (PDF)

"Overall the documents need updating for new product designs, the structure can be simplified for better clarity, there are some instances of generalization that are not completely accurate, and there are instances of inconsistent terminology. The format and organization of these guides could benefit from revision. Consistency of format and presentation would enhance readability, especially if a consumer receives multiple guides or an agent is referencing multiple guides. Also, if information that is repeated in every guide is presented only in the general guide, the shorter additional guides could focus more on specifics of that product. The guides do not cover the full range of annuity products currently in the market."  MORE >>

Testimony of American Academy of Actuaries at Senate Finance Committee Hearing on Social Security: Is a Key Foundation of Economic Security Working for Women? (PDF)

"[This testimony discusses] women and Social Security in four sections: [1] Gender-related factors that can cause differences in the adequacy of retirement benefits between men and women. [2] Principles upon which Social Security was built that provide a framework for discussing changes to Social Security and how the changes impact women. [3] An example of how Social Security's spousal benefit is currently impacting women. [4] A discussion of individual changes that have been considered for Social Security reform and how those changes might impact women because of the different gender-related factors."  MORE >>

Why Did the American Academy of Actuaries Remove Important Caveats from Its Social Security Reform Menu Tool?

"While we support the Academy’s efforts to educate the public about Social Security and changes that may be required to bring the system back into actuarial balance (and we believe that the new version of this tool is an improvement over the older version), we strongly disagree with its decision to remove the caveat language from the updated version of the change menu tool.... [This post] will briefly discuss the profession’s prior communications on Social Security and their recent guidance on fixed-rate pension plans and how that guidance can be interpreted to apply to Social Security."

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Social Insurance Benefits Need Not Limit Economic Growth -- Report of a Seminar (PDF)

Excerpt: Many families face difficult choices as they adjust to the rapidly changing U.S. economy. Policymakers want to help, but they are often stymied by the assertion that any programs that buffer economic losses will harm the economy. Is this theory true? To find out, the National Academy of Social Insurance brought together several experts to examine this question.  MORE >>

Why Is the American Academy of Actuaries Painting Such a Rosy Picture of Social Security's Long-Term Financing Problems?

"Under either set of assumptions, we are talking about significantly higher tax revenue shortfalls than the 23% figure claimed to 'fix' the System in the [American Academy of Actuaries'] Social Security Game. If you prefer to think in terms of necessary benefit reductions rather than required tax increases, the percentages are about 25% under the Trustees' assumptions and about 30% under the CBO assumptions.... It appears likely that those with relatively higher incomes (young and old) will be asked to bear a significant portion of the increased cost in this next round of System reform."

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American Academy of Actuaries Comment Letter to House Ways and Means Subcommittee on Social Security, on Increasing Social Security Retirement Age (PDF)

"A change to the benefit formula can provide the same amount of benefit as results from increasing the full retirement age, but it sends a far different message to the American worker.... Increasing the early eligibility age has the beneficial result of encouraging most individuals to work longer.... Changing the reduction factors so that they are not actuarially neutral would increase the cost of Social Security and undermine the beneficial aspects of increasing the full retirement age[.]"  MORE >>

Academy Testimony at June 14, 2005, Congressional Hearing on Social Security (PDF)

12 pages. Excerpt: Ron Gebhardtsbauer, the Academy's senior pension fellow, testified at a June 14, 2005 hearing on strengthening Social Security. The hearing was held by the House Ways and Means Subcommittee on Social Security.  MORE >>

Health Care Priorities from a National Academy of Medicine Initiative (PDF)

31 pages. "Health care today is marked by structural inefficiencies, unprecedented costs, and fragmented care delivery ... Locally and nationally, new models of care delivery and payment are emerging that seek to reduce waste by rewarding value over volume, are more patient-centric, and are driving better care coordination and integration.... This paper synthesizes the range of compelling opportunities ... and presents strategic priorities for the next Administration and the nation's health leaders to undertake now and in the years ahead."

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The American Academy of Actuaries Stumbles on Social Security 'Sustainable Solvency'

"The condition of 'Sustainable Solvency' developed by the SSA actuaries is based on exact realization of assumptions made today about the next 75 years.... [T]here exists no mechanism in current Social Security law to maintain actuarial balance (or Sustainable Solvency) over time. Therefore, a condition of Sustainable Solvency achieved at the time of eventual System reform will not guarantee or 'ensure' sustainable solvency for any specific period of time, and the AAA's call for implementation of a solution 'to ensure sustainable solvency of Social Security' is, in our opinion, potentially misleading to the public, Congress and other intended users of the AAA's Issue Brief."

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Social Security Disability Insurance: Action Needed to Address Finances for 8.8 Million Disabled Workers and Those to Come (PDF)

"Currently, 8.8 million disabled workers ... receive Social Security Disability Insurance (DI) benefits.... A temporary reallocation of part of Social Security's 6.2% tax rate from the Old-Age and Survivors Insurance trust fund to the DI trust fund would ensure that both funds can pay full benefits until 2033, after which scheduled taxes would cover about 75% of scheduled benefits.... Alternatively, a 0.2% increase in the tax rate for DI would make DI solvent for the next 75 years."  MORE >>

American Academy of Actuaries New Social Security Tool Is Deficient in Alerting the Public to Potential Cash Flow Issues

"[This post discusses] yet another feature of the tool that may also mislead the public about the effectiveness of these possible 'fixes.' This feature ignores the potential negative impact on system assets of overly deferring the revenue increases or benefit reductions necessary to restore system's actuarial balance. Thus, while certain changes may achieve actuarial balance ... these changes aren't expected to keep the OASDI Trust fund from running out of money during the entire 75-year projection period, and therefore, should not be considered as viable, much less as a 'fix.' "

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American Academy of Actuaries Doubles Down on Misleading Answer to Cause of Social Security Funding Deterioration

"When considering the causes of the system's funded status deterioration over time, there is no better resource than Table 1 of Actuarial Note 2023.8 and not some broad impression.... If we didn't have the significant actuarial losses from the valuation date creep and from economic data and assumptions over the past 40 years, the system would now be in good financial shape and no one would be talking about demographics at this time.... One need look no further than the CPP in Canada for an example of a country with similar demographics but a much healthier funded status."

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A Longevity Insurance Benefit for Social Security: An Innovation from the Past

"A longevity insurance benefit as part of Social Security would be particularly desirable as part of a reform package to restore solvency if the package also included a reduction of benefits, such as raising the Normal Retirement Age. The longevity insurance benefit would reduce or eliminate the adverse effects of such a cut on the most vulnerable age group. A simple form of such a benefit would be to exempt persons age 82 and older from any benefit cuts."  MORE >>

Social Security Disability Insurance: Action Needed to Address Finances

"A temporary reallocation of part of Social Security's 6.2% tax rate from the OASI trust fund to the DI trust fund would ensure that both funds can pay full benefits until 2033. After that, in the absence of further action by Congress in the meantime, scheduled taxes would cover about 75% of scheduled benefits."  MORE >>