How Galveston Opted Out of Social Security

Liberty Haven ^ | 2004 | Ed Myers

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In south Texas, along the windswept Gulf Coast where multitudes of hurricanes have made landfall over the centuries, there are three history-filled, ahead-of-their-time counties: Galveston, Brazoria, and Matagorda.

Until the early 1980s government entities, such as cities and counties, had the right of opting out of Social Security and establishing their own retirement system. This option had been provided when the Social Security Act was passed in the thirties.

Galveston County in 1979 looked into this idea when then - County Attorney Bill Decker contacted Don Kebodeaux, highly successful Houston businessman, and asked him if he could devise a plan so that Galveston County could opt out of Social Security. At that time Social Security was on the verge of bankruptcy and no one knew what the future held. Don pondered the problem and called in his friend Rick Gornto, a leading financial expert, who was later to become his partner. These two hard-driving and foresighted businessmen, realizing the coming problems in Social Security, designed a new program for political subdivisions that would provide a retirement plan for employees that was many times better than the existing Social Security program. Satisfied with the new program, and in order to properly present and handle this program, these two Texas entrepreneurs organized several companies that became the First Financial Group.

http://www.libertyhaven.com/politicsandcurrentevents/healthcarewelfareorsocialsecurity/galveston.shtml

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http://www.libertyhaven.com/politicsandcurrentevents/healthcarewelfareorsocialsecurity/galveston.shtml

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[Hodar]

And for the highlight of the article

The plan that started in Galveston County ended the first year with a modest balance. Today, with over 5,000 employees from these three counties The Alternate Plan has grown to a very healthy and sizable portfolio. Those who retire after 20 years will receive three to four times the rate as under Social Security.

[EGPWS]

Perhaps Glen Campbell had the right idea. ;~)

[EGPWS]

Until the early 1980s government entities, such as cities and counties, had the right of opting out of Social Security and establishing their own retirement system. This option had been provided when the Social Security Act was passed in the thirties.

I can't imagine the reason why in the early '80's that that right was revoked.

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[Mister Baredog]

This story is not a secret in Washington, it's just something they've preferred to ignore with the help of the MSM enablers. Time to shout about it, also the success of the system in Chili.

[TheErnFormerlyKnownAsBig]

Galveston, oh Galveston.

[ricer1]

I can't imagine the reason why in the early '80's that that right was revoked.

Congress was scared that other counties would get smart and opt out their employees of S.S. Big government doesn't like kids that take their toys and go home...

[EGPWS]

Big government doesn't like kids that take their toys and go home...

Although rhetorical, YOU have hit the head of the nail!!

[beaversmom]

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[BellStar]

When (County Judge)Ray Holbrook, a quiet, soft-spoken Texan, and County Attorney Bill Decker, a man dedicated to the betterment of his county, saw the wisdom and foresight of this concept they took charge and shepherded the plan through its various stages.

All were Democrats at the time in Texas we had a 2 party system Conservative and Liberal Democrat.

Judge Ray Holbrook now retired and now
a Republican at Victory party for Nov election

Shown here grinning like a chessier Cat!

[weegee]

Because Galveston actually did it.

[weegee]

HOUSTON PING

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Galveston County Ping!

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A Ping!