Tag: Social Security
Abstract The experience of the reformed Railroad Retirement program has lessons for initiatives that would invest Social Security assets in equities: To address the risk in equity investment, Congress would likely require an automatic adjustment mechanism to keep the program “on track.” The adjustment mechanism should address surpluses as well as shortfalls, and cannot b…
The brief’s key findings are: The 2013 Trustees Report shows virtually no change from last year: Social Security’s deficit still about 2.7 percent of payroll. Deficit as a percent of GDP still less than 1 percent. Trust fund exhaustion still 2033, after which payroll taxes still cover about three quarters of promised benefits. While the shortfall is…
