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Reply #8: My mother retired 20 years ago. [View All]

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Igel Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-22-10 10:33 PM
Response to Reply #4
8. My mother retired 20 years ago.
She'd worked for 33 years. She's collected a fair chunk of change since then, and collects about 1/3 of her former salary, adjusted for inflation.

However, at no point, including her employer's portion, did more than 15.8% of her salary go into the system.

So she's collected over 6 years' full pay, but only put in about 4 1/2 years' full pay--at most. I say "at most" because for much of her 33 years at work the FICA tax was less than 15.8%.

If you put it in dollar amounts, it's even more stunning--not because of inflation, but because you can't include inflation any more than you can include interest. What she paid in the '50s was paid out, fully, in the '50s to others. What she paid in the '60s was paid out fully, as well.

She is entitled to her $1260 per month in two ways: Because of what her salary was and the law as set by Congress, she gets her benefits set at that level; because of having paid into it for the minimum number of years as specified by Congress, she gets the benefit. She doesn't get that amount because at some point some actuary sat down and said, "Mama Igel paid in $X, her cohort is expected to live Y years, so therefore she'll get $X/12Y each month." It's not an investment account, with the monies held in trust. Congress has said she is entitled to that much money; therefore she is entitled to that much money. If there was a COLA increase for 2011, she'd be entitled to an increase in her Social Security, not because they suddenly found that she had paid in more or because there was a sudden spike in interest payments on the money held by the government, but because Congress would have said she was entitled to it.
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  -Consensus forming in among Washington politicians for cuts in "entitlements". Better Believe It  Nov-22-10 08:39 PM   #0 
  - "Just as long as we don't have to tax rich people!"  villager   Nov-22-10 08:40 PM   #1 
  - Quiet you! Tax cuts to the rich aren't an Entitlement. It's just something they're entitled to.  Bucky   Nov-23-10 05:13 AM   #21 
  - How lovely.  Zenlitened   Nov-22-10 08:44 PM   #2 
  - Transfers from workers to retirees aren't sustainable if a worker isn't making enough to support  dkf   Nov-22-10 09:25 PM   #7 
  - The government is free to fund any shortfalls.  girl gone mad   Nov-23-10 12:22 AM   #14 
  - Is that the incentive we should tout...pay social security to free up jobs for young people?  dkf   Nov-23-10 12:38 AM   #19 
     - We're giving trillions to the banks.  girl gone mad   Nov-23-10 04:40 AM   #20 
        - Keeping banks solvent keeps faith in our economic system.  dkf   Nov-23-10 02:01 PM   #23 
           - First, the banks are not currently solvent.  girl gone mad   Nov-23-10 04:12 PM   #28 
              - +1000 nt  laughingliberal   Nov-24-10 02:28 AM   #32 
  - Keep the FICA tax where it is and raise the cap. SS is 100% solvent for the next 27 years and...  laughingliberal   Nov-24-10 02:01 AM   #31 
  - The first heading and what follows misses the point.  Igel   Nov-22-10 10:51 PM   #11 
     - You should read Galbraith's entire testimony.  girl gone mad   Nov-23-10 12:25 AM   #15 
     - What GGM said. - n/t  Zenlitened   Nov-23-10 05:32 PM   #29 
  - Well, how AARP's Novelli has changed his focus, apparently:  CurtEastPoint   Nov-22-10 08:44 PM   #3 
  - I'm sick to death of the dirtying of the word "entitlement"  Raine   Nov-22-10 08:48 PM   #4 
  - My mother retired 20 years ago.  Igel   Nov-22-10 10:33 PM   #8 
  - Raise the SS wage base ceiling.....  Historic NY   Nov-22-10 08:57 PM   #5 
  - That's what Obama is on the record as supporting.  pa28   Nov-23-10 12:26 AM   #17 
  - AARP and Novelli - IIRC GINGRICH's book had its forward written by Novelli  billlll   Nov-22-10 09:19 PM   #6 
  - I'm entitled to a war. But I would give it up to help cut the deficit. nt  postulater   Nov-22-10 10:46 PM   #9 
  - Tax the rich - they got us into this mess, duh.  grahamhgreen   Nov-22-10 10:50 PM   #10 
  - Jesus effing keerist!! I thought Becerra was on our side! n/t  eridani   Nov-22-10 11:07 PM   #12 
  - Boehner's comments are especially revealing.  pa28   Nov-22-10 11:10 PM   #13 
  - Consensus forming outside of Washington for cuts in politicians  kenny blankenship   Nov-23-10 12:25 AM   #16 
  - I can't even believe what direction this country is heading in. It is disgustingly sad.  Ted_White   Nov-23-10 12:35 AM   #18 
  - It's all about class.  Better Believe It   Nov-23-10 08:15 AM   #22 
  - This article is total HORSESHIT. Montgomery reveals her bias in this paragraph:  jtown1123   Nov-23-10 02:08 PM   #24 
     - Read the article. It's not about public opposition to cuts. It's about a  Better Believe It   Nov-23-10 02:16 PM   #25 
        - I did read the article, early this morning. I've been following  jtown1123   Nov-23-10 02:33 PM   #26 
        - Of course the big corporate media support the cuts. The point of the article is that  Better Believe It   Nov-23-10 11:02 PM   #30 
        - Also, why isn't it valid to get the consensus of the people?  jtown1123   Nov-23-10 02:37 PM   #27 
 

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