Social Security Questions and Answers
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Is social security a retirement fund?
No, Because a true retirement plan would show dollars saved and dollars invested during up years and down years all in individual accounts with your name on it. Social security offers no such thing.
Is social security a trust fund?
No, ALL trusts must have a "grantor" who sets up the trust and puts money or property into it; A "trustee", who manages the trust and makes it grow; A "beneficiary" receives the money or property in the trust though congress legislated the social security fund it is not the grantor because a grantor puts their own property into a trust fund which congress did not do. Congress cannot be the trustee it would be a conflict of interest. There is no social security trust fund it is just a system of taxation.
Do I have an ownership right to social security fund?
No you don't because the supreme court case "Flemming vs Nestor (1960)" argued that a current or prospective social security beneficiary does not acquire an interest in the trust fund that is a property right to its assets and that the belief that social security benefits are "fully accrued property rights" is wrong. The court agreed. This means that no matter how much you have paid into social security you do not have a right or ownership of any money or property. It belongs to the government not you.
Has social security money been stolen or taken for other purpose?
Yes, because in 1990 congress passed section 13301 of the Budget Enforcement Act which made it a violation of Federal law to use revenue for non-social security purposes. What happens though is that the money collected from the social security payroll tax is traded for "special issue" government bonds that only the government can own. The cash goes into the General fund mixed with all other tax money and then it can be spent on things other than social security. According in the Houseways and Means commitee Green book.
Would raising the retirement age and the social security tax fix it and give me a bigger and better monthly payments?
No, because the social security tax has been raised many times and in the 1980's the tax was raised along with a phased-in raise in the retirement age. These ideas have been tried already and failed.
Politicians and rich powerful special interests say only social security can provide a financial safety net for the elderly. Most of these groups are making money off the elderly by selling insurance, motel and air fare discounts. The social security system provides retirees a small pension but their quality of life for the most part is much lower. Retirees would have a much higher quality of life if the system paid a fair rate. Social security makes old age more uncertain since it saps us of resources when we are young and some what healthy. It leaves us largely at the mercy of the government. Our income is whatever politicians decide to give us.
Is there a better way to do social security?
Yes, there is, but right now congress controls the social security system. They decide how much goes into it, when you may retire and how much you will get in monthly payments. You do not own it and cannot pass it on to anyone of your choice when you die. In order to give future retirees a higher quality of life social security needs to be restructured into a real trust fund that gives more choices to future retirees. If social security is turned into a real trust fund it would make you owner of your own social security account. You would be able to retire at age 60 if you choose, you could leave your social security trust fund to anyone you choose when you die and you would not have to pay social security tax anymore.
