Social Security is once again under attack by conservatives who are fanning false fears of the program going broke as an excuse for cutting benefits. It is important to counter their rhetoric with facts, including the far-reaching impact of this vital program on our state as well as the nation.

A recent study by a national coalition, Strengthen Social Security, shows how Social Security, Medicare and Medicaid benefit New York State. The coalition — which is made up of 320 national organizations including the AFL-CIO’s Alliance for Retired Americans, to which all UFT retirees belong — found that in 2010, nearly 3.3 million people in New York State received $44.8 billion in Social Security payments.

More than 2.9 million people in the state received $34.1 billion in Medicare benefits, and 5.2 million New York residents received $49.4 billion in Medicaid benefits. That means New York residents received an overall $128.3 billion in federal benefits, much of which was likely spent in the state, thereby helping the New York economy.

 

Social Security in New York

Social Security serves as a financial linchpin for New Yorkers of all races, economic backgrounds and cultures — seniors, women, disabled workers, children, African-Americans, Latinos, American Indians, Alaskan natives, Asian-Americans, residents of rural communities and working families.

The nearly 3.3 million New Yorkers who received payments in 2010 represented 16.9 percent of all state residents, one out of six people. The benefits they received were equivalent to 4 percent of the state’s annual GDP (gross domestic product, which is the total value of all goods and services produced). The average benefit to New York residents in 2010 was $13,641. This single government program kept more than 1 million New Yorkers out of poverty that year.

Looked at from the perspective of one worker’s lifetime, the importance of Social Security to individuals is evident. A 30-year-old who earns about $30,000 per year and has a spouse and two young children will over his or her career receive Social Security insurance protection equivalent to a private disability policy of $465,000 and a life insurance policy of $476,000.

This program, founded in the Great Depression, is an intergenerational commitment for all Americans and has withstood the test of time. It represents the best of American values — rewarding work, honoring our parents, caring for our neighbors, and taking responsibility for ourselves and our families. It is based on a promise that if you pay into the program, you earn the right to benefits.

Social Security is an earned benefit, not — as some of its critics call it — an entitlement. More information is available on the website www.StrengthenSocialSecurity.org.

 

Americans value Social Security

Another recent study found that an overwhelming majority of Americans want not just to preserve Social Security but to increase benefit payments and would be willing to pay more taxes to do so.

This study by the National Academy of Social Insurance surveyed different generations of Americans: the so-called silent generation born before 1946; the baby boomers born from 1946 to 1964; Generation X born from 1965 to 1979; and Generation Y born in 1980 or after.

Among all those surveyed, 80 percent said they value Social Security for themselves, 78 percent for their families, and 84 percent for the security it provides the retired, the disabled, and the surviving children and spouses of deceased workers.

An overwhelming majority, 84 percent, also believe current Social Security benefits do not provide enough income for retirees, and 75 percent said we should consider increasing the size of benefits.

A similarly high number, 82 percent, are willing to put their money where their mouths are, saying it is critical to preserve Social Security even if it means increasing Social Security taxes paid by working people. A higher number, 87 percent, want to preserve Social Security for future generations even if it means increasing taxes paid by the wealthy.

 

Fears of shortfall are overblown

The recently released 2013 Social Security Trustees Report shows that the program has sufficient funds to pay full benefits until 2033. Even if Congress makes no changes, the program would still after 2033 have sufficient funds to pay 77 percent of scheduled benefits. Many respected actuaries believe that any future shortfall will be covered by a return to an expanding economy.

To ensure that Social Security can pay full benefits in the future, most people in every generation surveyed by the National Academy of Social Insurance prefer the following package of changes:

• Gradually, over 10 years, eliminate the cap on earnings taxed for Social Security so that the 5 percent of workers who earn more than the cap, currently $113,700, pay into Social Security throughout the year, as other workers do.
• Gradually, over 20 years, raise the Social Security tax rate that workers and employers each pay from 6.2 percent of earnings to 7.2 percent.
• Increase Social Security’s basic minimum payment so that a person who has paid into Social Security for 30 years can retire at age 62 or later and not be poor.
• Increase Social Security’s cost-of-living adjustment to more accurately reflect the level of inflation experienced by seniors. (This is the opposite of a proposed change to a “chained” cost-of-living measure that would grow more slowly than the current calculation.)

Large majorities of Americans from different generations, income levels and political parties support keeping and strengthening Social Security. You can be sure that the UFT and its allies will be on the front lines fighting to protect one of Americans’ favorite programs.

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VARIABLE ANNUITY
The unit value is computed during the latter part of each month. Recent values are:
	VARIABLE
	A Diversified Equity	B Bond	C International Equity	D Inflation Protection	E Socially Responsive
February	65.154	18.956	9.658	11.719	11.332
March	65.582	18.943	9.546	11.661	11.706
April	67.617	18.904	9.636	11.621	12.109
June	68.781	18.890	10.013	11.819	12.061