Kathleen Gehr called the meeting to order at 11:30 am.
Katherine Hegemann read the minutes from August 2010, which were approved with no corrections.
Kathleen Gehr reported the bank balance is $341.63.
Joe Mike Akard, the Democratic candidate running for state representative, gave a presentation of the major issues he feels need addressing by the TN General Assembly.
- Jobs
- School Security
- Pre-K
- School maintenance
- Technology
Katherine Hegemann lead part 1 or a two part discussion on Social Security as part of the larger discussion about the federal deficit.
1. Overview
WHAT IS SOCIAL SECURITY?
Social Security offers basic benefits that help retired workers, disabled workers, or the survivors of deceased workers to stay out of poverty.
WHO CAN GET SOCIAL SECURITY BENEFITS?
Social Security benefits are earned insurance benefits. The time necessary to reach eligibility for any of the benefits varies from benefit to benefit.
HOW ARE SOCIAL SECURITY BENEFITS CALCULATED?
Since Social Security is an earned benefit, benefit levels vary according to a worker's lifetime earnings.
WHAT KINDS OF BENEFITS DOES SOCIAL SECURITY PROVIDE?
The benefits Social Security provides are similar to those provided by insurance companies. Disability and survivorship benefits resemble life insurance. Contributions to Social Security are based on a worker's earnings.
IS SOCIAL SECURITY STILL IMPORTANT?
Social Security has increased in relative importance as retirement income adequacy has declined. In comparison, Social Security's coverage is almost universal; 97.7 percent of households nearing retirement in 1998 could expect some Social Security benefits. Social Security favors lower earners because it offers higher relative benefits to lower-lifetime earners.
WHY ARE PEOPLE TALKING ABOUT REFORMING SOCIAL SECURITY?
Social Security is not going bankrupt.
HOW DOES THE FINANCIAL FUTURE OF SOCIAL SECURITY LOOK?
When the baby boomer retirement is underway, Social Security will draw on these accounts to help pay for promised benefits.
Because income is currently exceeding expenditures, Social Security is accumulating assets in its trust funds. The Social Security trust fund assets are invested in special non-tradable government bonds.
ARE PRIVATE ACCOUNTS A VIABLE SUBSTITUTE FOR SOCIAL SECURITY?
No, private accounts cannot substitute for Social Security's guaranteed benefits. We are discussing two different systems: private accounts are individual savings accounts, whereas Social Security is a social insurance program.
WHAT ARE SOME IMPORTANT CONSIDERATIONS WITH SOCIAL SECURITY PRIVATIZATION?
Social Security privatization has become a hot button issue. With privatization, part of Social Security would be replaced with individual accounts. Since Social Security has already promised benefits to workers and retirees, this diversion of funds creates a new financial hole. To improve Social Security's financial outlook, those who favor privatization have proposed sharp benefit cuts.
2. Discussion: Ways to fix Social Security
Reduce benefits: nobody thought this was a good idea. Reason: would increase the poverty rate among seniors
Raise the retirement age: only on those who work in jobs that don’t use much physical labor (not really feasible), people who continue to work full-time should have their SS benefits lowered
The discussion will continue at the next meeting.
Kathleen Gehr adjourned the meeting at 12:30 pm, and the group shared lunch.
Submitted: Katherine Hegemann, Secretary
Date: 10/16/2010
