Rep. Allen Boyd hosted “Saving Social Security” in the Leon High School auditorium Tuesday.
The event explained his new bill and addressed concerns with social security. More than 100 people sat attentively in the auditorium to hear about the fate of the program.
A slideshow revealed a prediction from the Social Security Administration stating the government would start drawing from the United States Trust Fund to pay benefits in the year 2018. By 2042, the Trust Fund will be depleted.
According to Boyd, after 2042, the only money available to pay social security benefits would be the money from that year’s payroll taxes.
“Not enough money is coming into the system to pay the benefits promised by the system,” Boyd said. “With changing demographics, social security has become a long-time solvency problem.”
The Kolbe-Boyd Bipartisan Retirement Security Act was given as the solution. This act would allow small amounts of money from payroll taxes to be deposited in personal accounts regulated by the Individual Security Fund Board. After retirement, these accounts would serve as income, in addition to the social security benefits that will be offered at that time.
Options to invest more money would be available to those who want to retire with a higher return. Kolbe-Boyd also offers opportunities for larger returns from low-incomes and assures that no retiree will live under the poverty line as long as they worked a full career. Boyd introduced many potential benefits to his bill but audience members were skeptical about his proposed plan.
“This is an interest of social insurance not personal investment,” said Richard Willis, who attended the meeting.
Audience members voiced their concerns about where their current payroll taxes designated for social security were going, since they would not be available when they retire.
Others wanted to know where the money from the Trust Fund was going and had gone in the past.
An audience member attempted to answer that question by speaking out saying, “The money is going to rebuild Iraq.”
According to Boyd, his bill may seem costly having to invest in a personal account in addition to paying social security.
However, Boyd said he thinks that ignoring the fact that the social security fund is diminishing will be more expensive over time.
“If we don’t devise a plan to deal with the social security problem, the young people will pay pretty large dimes to save it.”
Contact Moniqiue Brackett at firstname.lastname@example.org