Posted on 09/19/2011 5:27:08 AM PDT by Cincinatus' Wife
Nov 4, 2010: CNN - Spitzer and Parker drill Perry on Social Security (Perry brings up the Galveston plan)
Perry OpEd On SS USA Today September 11, 2011: Rick Perry: I am going to be honest with the American people
How Three Texas Counties Created Personal Social Security Accounts and Prospered Across the country, state and local governments are facing huge unfunded liabilities for their employee pension plans. And then there’s Social Security.
But three neighboring Texas counties, which opted out of Social Security 30 years ago by creating personal retirement accounts, have avoided a fiscal train wreck while providing retirees with even more retirement income.
Galveston, Matagorda and Brazoria County employees, many of them union members, have seen their retirement savings grow every year, even during the Great Recession. If state and local governments—and Congress—are really looking for a path to long-term sustainable entitlement reform, they might start with what is referred to as the “Alternate Plan.”
[snip]
More importantly, if a worker participating in Social Security dies before retirement, he loses his contribution (though part of that money might go to surviving children, if any, or a spouse who didn’t work and therefore didn’t establish his or her own benefits). But a worker in the Alternate Plan owns his account, so the entire account belongs to the estate. There is also, among other benefits, a disability benefit that pays immediately upon injury, rather than waiting six months, plus other restrictions, as under Social Security.
And those who retire under the Galveston model do much better than Social Security. For example:
A lower-middle income worker making about $26,000 at retirement would get about $1,007 a month under Social Security, but $1,826 under the Alternate Plan, according to First Financial’s calculations.
A middle-income worker making $51,200 would get about $1,540 monthly from Social Security, but $3,600 from the banking model.
And a high-income worker who maxed out on his Social Security contribution every year would receive about $2,500 a month from Social Security vs. $5,000 to $6,000 a month from the Alternate Plan……………….[more at link]
Funny thing, the folks we pay are not required to participate in the system that we are required to participate in.
Need a better name for it - like Social Security PLUS, Social Security Advantage or Social Security Part-B. You know, jazz it up a bit.
I think the key to this alternative plan is YOU MUST PUT MONEY IN to become a recipient. Aspects of the social security program were turned into a federal welfare program long ago and it is getting worse each year since.
Clinton said that social security was the third rail of politics and a club to beat up Republicans.
Thus the politics of Social Security remain.
Most of the school districts down here have a similar retirement program through the Texas Education Association.
Just as Congress will not be members of ObamaCare -- they will keep their gold-plated health care that their employers pay for.
Odd that. The employers are being told by the staff (who are exempt) that they will pay for a superior, top-of-the-line program for the staff and that they (the employers) will be dumped into an unsustainable, economy busting, inferior plan that they MUST buy.
Changing certain rules, like scrapping the cap on Social Security taxation or eliminating Bush-era tax cuts for the wealthy, would help solve the revenue shortfall, he said.
Sure it would. /S
Sorry, we don’t have a revenue problem.
Congress decided to spend what should have been in trust for the recipients. Thus we have a spending problem not a revenue problem. Unfortunately the problem is now so large that it has finally got the “peoples” attention, and that just might be too late.
Excellent point.
It changes the whole psyche re responsibility about EVERY-thing in one’s life.
Yes, and Texas teachers often take early retirement after they’ve put in the requisite number of years, then get another job that pays into the SS system so they get checks from both systems.
Double-dipping, kinda like military retirees do.
Thank you for the information.
IF you'd rather NOT be pinged FReepmail me.
IF you'd like to be added FReepmail me. Thanks.
This is what W wanted to do...but Karl Rove put the brakes on it...that’s why W never followed through.
Yowza! More income then when you are working! Of course, it can't hold a candle to SS.
VERY interesting.
This proves the point about how, socialism fails every time it’s tried.
Follow the money!
Into the government’s pocket OR
Keep it in our pocket and watch it grow.
bump.
How about the Liberty Retirement Plan?
1. The government wouldn't control your money.
2. You wouldn't be giving any of your money to people that have never even had a job, or even illegal aliens.
3.The government wouldn't control your money.
4. The liberals wouldn't be able to threaten seniors anymore.
5. And finally, the government wouldn't control your money anymore.
Obviously, if the government didn't control your money, they couldn't control you. I was a resident in Galveston County when this happened. It was a bold move back then, but it obviously paid off. after about 20 years, CBS did a story on it and showed county clerks retiring driving motor homes. Blue collar workers were retiring with new homes with pools and a vacation to Europe. Chile also copied the plan after decades of socialism and revolutions. It is telling that no one is traveling to Galveston county anymore to follow up on this story. The problem arises when a 22 year old that has never had a job and never paid into the system has a motorcycle wreck and is deemed disabled for life. He/she gets OUR SS money. A father dies and his children gets his SS for another 15 years and has never worked. A child acts up in class and gets on Ridilin and gets payments for life. SS is a different program than a savings plan for retirement. We should have the retirement savings plans for individuals and welfare for the non payers. It would do 2 things. It would show how well a person could do if they work hard and save their money, and show how a person has to go begging and depend on others if you don't work. Their disability may not be their fault, but it shouldn't be a slam dunk to watch a lawyer ad on TV and get your check. A retirement plan is just inherently different than SS. Our problem today stems from people believing they can live on SS alone.
I worked for and saved my retirement money even before a 401K was allowed. SS is an add on I will get when I ask for it. I lived on the idea that SS wouldn't be there when I needed it. To try and live on just that money would be impossible. Our town is full of those people trying to live on $1200 a month and even less. We have met a married couple that gets about $650 a month and lives entirely on that. No plumbing, no heat, no air, nothing. It's mid-evil.
On the workers side, SS started with 16 workers supporting 1 retiree. Today, its 2 workers to 1 retiree. That means if a retiree draws $2k a month, my daughter pays $1k and someone else must pay the other $1k. Just imagine when it gets to 1 worker paying the whole $2k for 1 retiree. After that point, the inevitable conclusion is 1 worker paying for multiple retiree's. The natural result there would be less money for each retiree. If a retiree has trouble living on $1800 a month, wait till he has to live on $1400 a month. Eventually $600 a month.
The lesson,....socialism doesn't work, and have your own retirement plan. My 6th grade teacher taught me socialism doesn't work, so I prepared myself. What do teachers teach today?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.