WASHINGTON - Any cuts to Social Security imposed by the Joint Select Committee on Deficit Reduction would be borne almost entirely by current Social Security beneficiaries and those who are very near retirement, a new analysis by Social Security Chief Actuary Stephen C. Goss makes clear. Three-quarters of all Social Security payments between 2012 and 2021 - the 10-yearperiod in which the Select Committee is required to generate deficit reduction - will go to current recipients, while an additional 21 percent will go to Americans who are very close to retirement-age and will start receiving benefits between 2012 and 2019, according to the Actuary’s analysis.
The analysis highlights that there is virtually no way for the panel to use Social Security cuts to meet its target without harming current beneficiaries. Current retirees have struggled in recent years because there was no cost-of-living adjustment (COLA) in 2010 or 2011. The Social Security Administration yesterday announced a 3.6 percent COLA for 2012.
“Social Security hasn’t contributed a cent to our deficit and any discussions about further extending its solvency should not take place in a deficit reduction context," said Ways and Means Ranking Member Sander Levin. “The Select Committee should address our deficit without harming millions of seniors who have paid into Social Security for decades and are counting on it to make ends meet."
In a response to a request from Ranking Member Levin, Social Security Actuary Stephen C. Goss laid out in a letter to Rep. Levin what proportion of Social Security’s payments between 2012 and 2021 will go toward current beneficiaries versus future retirees. His response can be found here.
