Social Security Warns Benefits Could Get Cut

The Wall Street Journal ^ | 8 Oct 13 | Damian Paletta@damianpaletta

[SkyPilot]

The Social Security Administration has begun warning the public it cannot guarantee full benefit payments if the debt ceiling isn’t increased.

When asked by the public, the agency is notifying beneficiaries that “Unlike a federal shutdown which has no impact on the payment of Social Security benefits, failure to raise the debt ceiling puts Social Security benefits at risk,” according to a person familiar with the agency directive.

The warning was assembled after the agency consulted with the Treasury Department, which would play a lead role in determining how the government handles payments if the borrowing limit isn’t raised soon.

“Our employees started receiving questions from the public, so the agency worked with Treasury to provide an answer they could use when asked about the debt ceiling by the public,” a Social Security Administration spokesman...

[SkyPilot]

I predicted weeks ago Obama would threaten Social Security recipients, because he did the exact same thing in July of 2011.

However, those getting SS have every reason to be concerned.

If the debt ceiling is not increased, Congress cannot enforce prioritzation payments.

Even though Sen Paul (R-KY) is saying that the Senate has passed language calling for debt interest payments, Medicare, and Social Security to paid first, the Treasury could delay or withhold (in whole or in part) entitlement checks.

The adminstration can redeem bonds in the Social Security "Trust Fund" so the Federal government can borrow more money to pay Social Security checks without increasing the debt ceiling, but there is no law that says they have to.

It may be political suicide to do so, but if the Administration thinks it could gain by poisoning the well, they could.

The courts would uphold that decision as well, since the Supreme Court ruled in the Flemming v. Nestor (1960) decision that Social Security is not a contractual right.

[JRandomFreeper]

Cry me a river. Life is tough all over.

/johnny

[RedStateGuyTrappedinCT]

The occupier in the WH , wants max pain for the most people. If he can blame it on the GOP he’ll withhold SS payments to grandma in a heartbeat.

[SECURE AMERICA]

This is just political bullshit. Just as we find out the Government has hundreds of thousands of NON ESSENTIAL employees with this bogus shutdown, we know the Government has thousands of NON ESSENTIAL programs and departments. But threatening to cancel them does not scare people into doing what the Government wants so they threaten social security.

[SkyPilot]

Life is tough all over.

It is.

Although millions of American get their monthly SS check, millions more do not.

Our nation is now incredibly polarized. Every group seems to be against another, and it is every man or woman for himself or herself.

I have never seen it so bad. On their very board, you will jackals and wolves come out salivating with fangs sharpened about some lowly and low paid FBI secretary who got furloughed, screaming that they hope she starves, rolls over, and dies.

People will also shout from the rooftops that "We are broke! Cut! CUT! CUT!!!

But when you proposed cutting their program or check (Social Security, Medicare, SS Disability, etc) then you will get an earful.

[madison10]

This is a big deal PR-wise-effects the most people, most likely. Most of those over 65 are VERY dependent on Soc. Sec., maybe not right away...

[Califreak]

sound and fury signifying nothing

[JRandomFreeper]

All of the entitlements need to be cut. Including SS.

/johnny

[txrefugee]

Because the Supreme Court ruled in Fleming vs. Nestor that the government is not contractually obligated to pay Social Security benefits, people who think they are entitled to their SS benefits because they paid into the fund may be sadly surprised. You only get benefits if Congress authorizes payment, and that can change at any time.

Who but the Leftists who have been using SS contributions as a piggy bank to fund all their give-away programs thought this was a good idea?

[sarasota]

According to ABC, 70% of Americans blame the Republicans for all this.

[Will88]

Any warnings about cuts in welfare, food stamps, Medicaid, Section 8 housing vouchers and other programs where the recipients have made no contributions to the funding of the programs?

They always use SS are the scare tactic and never threaten to cut welfare programs.

[mlizzy]

But threatening to cancel them does not scare people into doing what the Government wants so they threaten social security.

I was wondering when this threat would be re-initiated. We made our new elevated rent last month, but with SS included.

However, I recently moved our "tiny Mary" statue to right outside our back door. Now we can take just a couple of steps to "start the beads" for America.

[RightOnTheBorder]

Considering that 100% of ABC’s stories blame republicans I am shocked that only 70% of their poll responders do. Maybe they are losing their touch.

[Buckeye McFrog]

but....it’s in a SECURE TRUST FUND with MY name on it....right??

[dfwgator]

Life is a lot tougher when you depend on the government.

[RedStateGuyTrappedinCT]

According to ABC, 70% of Americans blame the Republicans for all this.

Unfortunately the majority still get their info from the water carrying alphabet networks. I think as stories of WWII vets being denied access to open air monuments and roads facing Mt Rushmore are coned off so people can't take pictures , people will realize this is 0bama's doing. As Zero shows himself to be the fascist thug dictator we all know he is , people on the fence will start waking up. The WWII monument incident was a PR disaster for the regime.

[MrB]

I think it was Bernanke that said, when questioned about the future of social security -

we can guarantee the money will continue,
but we can’t guarantee that the money will buy anything.

[SkyPilot]

There are earned and unearned entitlements - and I do make distinctions in the two. At least for earned entitlements, there was some contribution (in taxes, payroll taxes, or other) from the current crop of recipients. However, programs like SS are by their very definition a Ponzi scheme - the current collectors are living off the taxes of the dwindling few who are still contributing, or by new debt. There is no "trust fund." The money is gone.

The 3 worst actors in terms of our debt and deficits are Medicare, Social Security, and Medicaid. Of those 3, only Medicaid is unearned.

Add ObamaCare to the list very shortly.

Moreover, the average Medicare recipient reaps 3 times the benefits of what they paid in, with women reaping more than men (on the average).

Food Stamps (1 in 7 Americans now on the rolls at a cost of $135 Billion per year) is also completely out of control.

Sequestration cut discretionary spending, of which the military took a massive disproportionate share (17% of the budget yet must pay 50% of all cuts).

Sequestration did NOTHING to tackle our out of control Entitlement spending. Entitlement were exempt from cuts.

The list of unearned Entitlements is almost obscene.

[Baseballguy]

I wish SS was voluntary.

[SkyPilot]

They always use SS are the scare tactic and never threaten to cut welfare programs.

That's true.