EBRI Publications

“Social Security Reform: How Different Options Might Affect Future Funding.” Author: Craig Copeland.

Funding Shortfall: According to the latest (2009) Social Security Trustees’ report, the program’s long-term funding shortfall currently amounts to -2.00 percent of taxable payroll, meaning that the program would need additional revenues equal to 2 percent of taxable payroll for each year over the next 75 years to match the projected future current-law costs over that time frame.

Cutting Benefits, Raising Taxes: This article analyzes a range of possible reform provisions that would either reduce benefits (by lowering the scheduled increase in future benefit levels by changes to the benefit formula, or by raising the normal retirement age) or raise taxes (by changing the amount of earnings that are taxable and used for the calculation of benefits under Social Security). All of these provisions have been part of various comprehensive reform proposals over the last two decades.

Tags:

This entry was posted by Adam V. Russo on Thursday, September 24th, 2009 at 10:09 am and is filed under Welfare Benefit Plans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.