Dear Rusty: When will the funds stolen from the SS Fund be replaced? They used Social Security when the government ran out of money and used it for illegals. I think the funds should be replaced except for legitimate payments to Social Security recipients. This money was never meant to be used by the federal government to pay their bills. Signed: Concerned Senior
Dear Concerned Senior: I must tell you that no funds have ever been “stolen” from the Social Security Administration (despite the persistent myth). All money received by SS (from payroll taxes, interest on investments, and income tax on SS benefits) is – and always has been – immediately converted to special issue government bonds (investments) which are held in the Social Security Trust Funds, and which pay interest (at the current federal bond rate). Those bond investments held in reserve have been, and are, used only to pay benefits to those who have earned them by contributing to Social Security via payroll taxes for at least 10 years (40 quarters). Only US citizens and legal residents can get Social Security benefits (illegal aliens cannot receive Social Security benefits).
For information, repayment of the special issue bonds held in SS reserves occurs every day, because incoming revenue has been insufficient to pay all Social Security benefit costs for several years now, which means that the bonds must be redeemed regularly so that full benefits can be paid to all SS recipients who have earned them. There were about $2.8 trillion in SS reserves as of the end of 2023, but that balance is steadily decreasing (due to being redeemed to pay full benefits). As of the last report by the Trustees of Social Security, the reserves will be depleted in about 2033, unless Congress passes reform legislation to restore SS to full solvency.
FYI, the Association of Mature American Citizens (AMAC) is working hard to prevent depletion of the Trust Fund, suggesting to Congress a way to reform the program so future generations can fully benefit from it, with AMAC’s Social Security Guarantee proposal (see this). AMAC is constantly working to prevent depletion of the SS Trust Funds, which would result in an across the board cut in everyone’s benefit by about 23%. AMAC works every day in Washington D.C. to ensure Social Security is here for many generations.
This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at [email protected].
Have a Social Security question for Rusty?
Not sure what Rusty is talking about. I think he is saying that Elon Musk Team did not find
Fraud in the Social Security. I think I will believe Elon Musk. Is Amac being bought to drive a different conclusion?
The Social Security payments that are made each month are part of the Federal budget. The misconception that there is a “Trust Fund” is very misleading. The very fact that there is not enough money being paid into Social Security to sustain it each month is evidence that there is no “Trust Fund”. Same is true for Medicare and Medicaid, which are taken out of your wages.
I don’t think that the money held already is what the concerned senior was referring to.
I think they were referring to the DOGE money paid out?
Gerry
Thank you for straightening out people’s misconceptions. Of course it all started with a Democrat, Al Gore, who made up the whole false concept of a “lock box”. I’m not surprised the Dems lie and deceive in order to push their own agenda, but it does surprise me a bit that so many conservatives have bought into that particular one.
While Rusty might not look at ut as stolen funds..for the SSA system to show that there are ppl