Social Security The Story of Its Past and a Vision for Its Future

by Biggs, Andrew G.

• ISBN13: 9780844772080
• ISBN10: 0844772089
• Format: Paperback
• Copyright: 2011-11-16
• Publisher: Aei Press

Summary

Why do we have a social security program in the United States? How does it work? Does it need reform? This concise, readable volume answers common questions about social security and introduces proposals for reform, including a dedicated social security tax, automatic pension plan enrollment, increasing the eligibility age, and a flat dollar benefit for each retiree.

Author Biography

Andrew G. Biggs is a resident scholar at the American Enterprise Institute. Prior to joining AEI, he was the principal deputy commissioner oj the Social Security Administration, where he oversaw SSA's policy research efforts and led the agency's participation in the Social Security Trustees working group. In 2005, he worked on Social Security reform at the White House National Economic Council and, in 2001, was on the staff of the President's Commission to Strengthen Social Security.

Table of Contents

List of Illustrations	p. vii
Introduction	p. 1
Why Do We Have a Social Security Program?	p. 5
Additional Criteria for Success	p. 10
How Does Social Security Work?	p. 13
The Benefit Formula	p. 14
Financing	p. 17
The Philosophy behind Social Security Financing	p. 20
The Social Security Trust Fund	p. 23
What Does it Mean to "Save the Surplus"?	p. 29
Why Does Social Security Need Reform?	p. 33
Conventional Wisdom: Demographics	p. 34
Alternate View: Legacy Debt	p. 38
The Costs of Complexity	p. 43
How Should We Fix Social Security?	p. 51
Separating Legacy Costs from Ongoing Costs	p. 52
Universal Retirement Saving Accounts	p. 54
Flat Benefit for Low Earners	p. 58
Mandatory Annuitization	p. 61
What a Reformed Social Security Program Might Look Like	p. 63
Concluding Remarks	p. 67
Endnotes	p. 69
About The Author	p. 73
List of Illustrations
Historical Employee and Employer Combined Social Security Payroll Tax Rate	p. 18
Social Security Taxable Earnings as a Percentage of Total Covered Earnings	p. 19
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