By Kris L. Maser
So what will it take to restore solvency to the Social Security system?
The trust fund is still growing:
• The trust fund balance on 12/31/2009 was $2,540 trillion.
• The total income for the year 2010 was $781 billion.
• The total expenditures for 2010 were $712 billion.
• The net increase in the fund was $69 billion.
• The trust fund balance on 12/31/2010 was $2,609 trillion.
So the long term projection without reform: benefits will fall to 77% in the year 2036.
The following reform proposals are currently being studied:
• Increase the maximum earning subject to the Social Security tax.
• Raise the retirement age.
• Lower the benefits for future retirees.
• Reduce the cost of living adjustments for all retirees.