Social Security (Part 3 of 6)

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.

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