Social Security Fraud v. Public Union Pension Rip-off

[WhiskeyGirl]

Currently, the Social Security 'voluntary' "2011 tax rate is 4.2 percent for employees, 6.2 percent for employers, and 10.4 percent for self-employed people.  These rates apply to earnings up to the maximum taxable amount ($106,800 in 2011)."

- from http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/169/~/the-social-security-contribution-rate-for-2011

What does this get anyone?  Can they retire at 45?  No.

The retirement age has moved up, up, and up for years.  Where'd all that money go?  IOU's from Congress and the White House?  At some point, likely it will be age 100, and folks will still be paying into the 'fund'...

On another page, it includes the Medicare portion -

The Social Security tax rate for 2011 is 13.3 percent on self-employment income up to $106,800.  If your net earnings exceed $106,800, you continue to pay only the Medicare portion of the Social Security tax, which is 2.9 percent, on the rest of your earnings.

more here - http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/172/related/1/session/L2F2LzEvdGltZS8xMjk4NTUxMTU3L3NpZC9haWt1aXFuaw%3D%3D

For some reason, union public workers in Wisconsin are being asked to contribute half to their generous pension program -

Requires employees who pay into the Wisconsin Retirement System to contribute 50 percent of their annual pension payment. That amount is estimated to be 5.8% of salary in 2011.

What do they get?  Retirement at age 45 and iirc, at full pay.  Social Security only gives you a portion of your wages.

Why is it that at the State level, the program can continue to work, with some changes.

At the Federal level, the taxes keep going up, the retirement age keeps going up, and the IOUs in the 'fund' keep mounting?

Why can't everyone contribute to the state fund instead of Social Security?

Where is that SS money going?

Ripoff?  Fraud?  Theft by Washington politicians?

just my humble opinions and questions.

[WhiskeyGirl]

"Totalization With Mexico" another rip-off?

I've been hearing bits and pieces again about "Totalization With Mexico" again.  For some reason, this reader thinks that the Obama admin is making treaties and not telling anyone -

The current administration had already approved a preliminary treaty that will give Social Security benefits to illegal immigrants. Many members of Congress do not even know about this treaty.

The U.S./Mexico Social Security Totalization Treaty will pay benefits to illegal immigrants and their dependents.

Several different groups have tried to get more information on the specifics of this treaty through the Freedom of Information Act.

To date, their requests have been ignored...

more here - http://www.craigdailypress.com/news/2011/feb/05/lawrence-l-sober-another-grievous-abuse/

Retirement at age 80 for Americans?  Public workers retire at full pay at age 45?

What's wrong with this picture?

[WhiskeyGirl]

The Cost of Illegal Earnings Under Totalization With Mexico

By Mary Johnson, Social Security and Medicare Policy Analyst
for TREA Senior Citizens League
May 2007

(download this as a .pdf file)

Summary

     On June 29, 2004, the U.S. Social Security Administration (SSA) signed a totalization agreement with Mexico.  To date, it has not yet been signed by the president or sent to Congress for final review.  Totalization with Mexico is highly controversial because of the millions of Mexicans working in the United States without authorization.  The agreement raises concerns that millions of such workers and their dependents would become newly eligible for Social Security benefits, worsening the long-term solvency of the program.  In addition, substantial new costs could trigger benefit cuts and higher taxes for both retirees and workers.  The agreement also raises questions as to whether it would act as an incentive for more illegal immigration from Mexico in the future.

"How Illegal Immigrants Can Become Entitled To Social Security"
(lots of good stuff)

Conclusion:
     Responsible, comprehensive cost estimates of the totalization agreement with Mexico simply cannot afford to ignore the very large and significant cost of benefits based on illegal, unauthorized work.  Doing so results in highly misleading and incomplete estimates that would jeopardize the future solvency of Social Security, leading to benefit cuts and higher taxes.  Estimating the cost of a totalization agreement with Mexico is difficult because of the lack of verifiable data.  However, the Social Security Administration maintains files from which plausible assumptions about unauthorized workers may be drawn, which can then be used to construct estimates.
     To ensure the solvency of Social Security for retirees and disabled who live in the U.S. and pay into the system legally, this study makes the following recommendations:

    *
      The President should not sign or send the current totalization agreement with Mexico to Congress.  Should the President nevertheless do so, Congress should disapprove the agreement.
    *
      Congress should enact legislation that would require greater Congressional review and approval of future totalization agreements.
    *
      Congress should enact legislation that would prohibit the use of work credits based on unauthorized earnings from being used to determine entitlement for Social Security benefits.

Appendix I.

Methodology and Assumptions:

Current Law
Mexicans Who Illegally Worked Using Non-work SSNs Issued Prior To 1/01/04

Non-work SSNs issued prior to 1/01/04              7,000,000

If there were over 7 million non-work SSNs issued prior to 1/01/04, how many illegal aliens are really in the U.S.?  How many of the SSNs are used by multiple folks?  How many unregistered?

read more here - http://www.tscl.org/NewContent/102917.asp

In Mexico, like other nations, the social security/retirement is determined by ACTUAL contributions plus earnings.  If you don't contribute, you don't get benefits.

How many more will get benefits?

Something is wrong with this system. There are also other articles that suggest that under this agreement, illegals would have a greater legal right to keep getting SS than citizens and those who contributed their entire working life...

just my humble opinions

[WhiskeyGirl]

2010 Earnings Suspense File

Immigration Amnesty Would Give Hundreds of Billions in
Social Security Money to Illegal Workers

Unlawful Work Leads to Tripling of “Earning Suspense File”
Over Past Decade, Says New Social Security Administration Data

July 27, 2010 (Washington, DC) – The “Earnings Suspense File” (ESF), used by the Social Security Administration (SSA) to track names and Social Security numbers that do not match government records, has tripled over the past decade. The chief cause of growth in the file is unauthorized work by non-citizens, according to SSA Inspector General Patrick P. O’Carroll.

Under an immigration amnesty plan, millions of today’s illegal workers would be eligible for hundreds of billions in Social Security dollars, as evidenced by the dramatic growth of the Earnings Suspense File.

Under current law, a non-citizen who obtains authorization to work in the United States at some later date may become eligible for Social Security benefits – even for work performed in the country illegally using a stolen Social Security number. Upon receiving a valid Social Security number, unauthorized earnings can be reinstated into the worker’s new, valid Social Security account – without penalty, and at taxpayer expense.

Hint - the fund appears to be empty, just like for citizens and those here legally...



more here - http://www.seniorsleague.org/index.php?option=com_content&task=view&id=3518&Itemid=49%29

[WhiskeyGirl]

Here is the report -

The Growing Cost of Illegal Immigration To Social Security
Unprecedented Growth in Social Security’s “Earnings Suspense File”

By Mary Johnson, Social Security and Medicare Policy Analyst
for The Senior Citizens League

June 2010

High Cost of Illegal Work for Social Security Trust Fund

By 2012, the first wave of those former illegal immigrants who came to the U.S.
in the 1970’s at age 20, and became legal permanent residents in 1986, will turn 62 and
old enough to file claims for Social Security. As immigrants draw close to retirement
age, they are more likely to check their Social Security records and request reinstatement
of any unauthorized earnings for which they have evidence. Because illegal immigrants
tend to have low earnings and because of the progressive nature of the Social Security
benefit formula, these immigrants will tend to receive a higher portion of benefits than
they paid in.

The potential cost in benefits based on illegal work could be substantial. Failure
to address this inconsistency of law that allows Social Security credit for illegal earnings
could result in newly legalized immigrants receiving benefits for earnings received while
breaking U.S. laws, at the same time U.S. workers and senior citizens who paid into the
system legally over their entire careers must accept benefit cuts and higher taxes.

Conclusion

Congress should improve Social Security solvency by ending this inconsistency
between immigration law and Social Security. Legislation should prohibit the crediting
of unauthorized earnings for the purposes of benefit entitlement and the calculation of
retirement benefits.

more here - http://www.seniorsleague.org/images/earnings_suspense_report.pdf

How many of those working illegally were also receiving the many forms of welfare benefits that are available?

Amnesty should be for the benefit of everyone, it seems like the benefits are punitive for citizens and those here legally.  The gold mine goes to the illegals.